EXHIBIT
17-B
EXCERPT FROM MPWMD RULES AND REGULATIONS – NOVEMBER 2003
RULE 28 TRANSFER
A.
TRANSFER LIMITATION
Any permit issued pursuant to these regulations may be
transferred from one person to another, upon written notification to the
District, except as follows:
1.
Permits may not be
transferred from one location to another, except as provided by Part B of this
Rule;
2.
Permits may not be
transferred when the General Manager determines within thirty (30) days of the
written notification required by this rule that the transfer may allow or
facilitate increased water consumption of a water distribution system.
3.
Transferred permits
shall be subject to all conditions attached to the original permit. Applicants
who are not allowed to transfer a permit under this rule may apply for a new
permit or an amendment to the existing permit pursuant to Rule 23.
Determinations of the General Manager under this rule, either allowing or
refusing permit transfer, may be appealed to the Board pursuant to Rule 70.
B.
PROPERTY-TO-PROPERTY
AND PROPERTY‑TO-JURISDICTION TRANSFERS OF WATER USE CREDITS FOR
COMMERCIAL AND INDUSTRIAL USES
Water use credits for
existing water use which has been allowed by the District on or after January
1, 1985, may be transferred from one property to another for commercial and
industrial connections pursuant to this Rule and upon the approval of the Board
of Directors. Commercial and industrial
water credits may also be transferred directly into a jurisdiction’s allocation
upon the approval of the Board of Directors.
Open space and residential water use shall not be transferred. The following conditions shall apply:
1.
Due to the District’s ongoing concern about the viability of the
available water supply and the possibility that water transfers may result in
additional water usage, water transfers shall be approved by the Board of
Directors, subject to the other provisions of this Rule, if the transfer will
not have an adverse impact on the water supply. In exercising its discretion, the Board of Directors shall
consider the impacts of the application under consideration, as well as the
cumulative impacts of other transfers, on the water supply.
2.
Water
use credit transfers shall only occur within a single jurisdiction. No inter-jurisdictional transfer shall be
allowed. Property-to-property
transferred water credits shall not have any impact on a jurisdiction’s
allocation. Property-to-jurisdiction
transfers shall increase a jurisdiction’s available allocation.
3.
Water
use credit transfers shall only occur within a single water distribution
system. No inter-system transfers
shall be allowed.
4.
Water
use credit transfers shall only occur with the prior approval of the city,
county or airport district.
5.
Water
use credit transfers shall only be allowed from an existing commercial or
industrial use, and must be applied to the intensification of another existing
commercial or industrial use or added to a jurisdiction’s allocation. Other than transfers which add to a jurisdiction’s
allocation, transfer credits shall not originate from, or be transferred to,
any residential use. Transfer credits
shall not derive from any prior open space water use.
6.
Property-to-property
water use credit transfers shall only be used for intensification
purposes. New water connections shall
not be issued based upon a property-to-property transferred water use credit.
7.
Property-to-property
commercial water use credit transfers shall only enable intensification of an
existing commercial or industrial water use capacity, as proposed by a current
application for a water permit.
Transfers shall not provide water use capacity for new commercial or
industrial water meter connections.
Transferred water credits shall not be “banked” for future use at any
new or different site.
8.
The
use of credits resulting from a property-to-jurisdiction transfer shall be at
the discretion of the jurisdiction.
9.
All
water use credit transfers shall originate only from prior documented
commercial water use capacity and shall be subject to each and every limitation
on the calculation of water use credits set forth in Rule 25.5.
10.
All
transfers of water use credits shall occur only by the written (and recorded)
agreement of the owner of record for each parcel from which the transfer
originates. This agreement shall
confirm that the transfer of water credit is irrevocable, shall quantify
remaining water use capacity required by the originating parcel(s), and
acknowledge that any intensification of water use capacity on the originating
site thereafter shall result in additional connection charge fees. If all prior water use capacity is
transferred from a site (due to demolition of all structures on that site), the
recorded agreement and notice shall consent to permanent removal of the meter
connection from the originating site, and acknowledge that the placement of a
new meter shall be limited due to unavailability of water.
11.
Transfer
of water use credits shall only occur upon approval by the Board of
Directors. The Board of Directors
shall have sole and exclusive authority to determine the water use
capacity, which cannot be transferred by reason of capacity requirements for
the originating site. The Board of
Directors shall have sole and exclusive authority to determine
the water use capacity requirements for the receiving site. The Board of Directors shall
not approve any water credit transfer where money or other valuable
consideration has been given in exchange for the water credit transfer. The Board of Directors shall
not approve any capacity for expanded water use deriving from a transferred
water credit in any circumstance where money or other valuable consideration
has been given in exchange for use of the water credit. These limitations shall nonetheless allow
the recipient of a water credit transfer to reimburse the donor of that credit
for connection fees previously paid to the District for that increment of
water.
12.
Violation
of the prohibition on the transfer of water credit for money or other valuable
consideration shall result in immediate revocation of the transfer credit.
13. Violation
of the prohibition on the transfer of water credit for money or other valuable
consideration is a misdemeanor as provided in Section 256 of the Monterey
Peninsula Water Management District Law.
14.
Transfer
of water use credits shall not be approved by the Board of Directors if
the effect of the transfer shall cause the originating site to have
insufficient water credit to meet the water use capacity requirements of all
existing structures on the transferring property site. If all prior water use is transferred from a
site (due to demolition of all structures), the transfer shall be approved only
upon the removal of the meter connection from the originating site, and the
recordation of the notice specified above.
15.
The
effect of any approved water credit transfer shall be the irrevocable
extinction of any right or entitlement to the actual water use, water use
capacity, or water credit which has been transferred from the originating
(transferring) site.
16.
Before
any water use credit transfer shall occur, the transfer fee required by Rule 60
for each originating site shall be paid by the applicant.
Added by Ordinance No. 1
(2/11/80); formerly Rule 223; renumbered by Ordinance No. 6 (5/11/81); formerly
Rule 27, amended by Ordinance No. 8 (1/14/81); amended by Ordinance No. 71
(12/20/93); amended by Ordinance No. 79, (9/18/95); amended by Ordinance No. 97
(3/19/2001), amended by Ordinance No. 102 (2/28/02); amended by Ordinance No.
107 (5/19/03); amended by Ordinance No. 108 (5/19/03)
U:\staff\word\boardpacket\2004\2004boardpacket\20040129\ActionItems\17\item17_exh17b.doc