EXHIBIT 11-B

Excerpt from Ordinance No. 109

AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

REVISING RULE 23.5 AND ADOPTING ADDITIONAL PROVISIONS TO FACILITATE THE FINANCING AND EXPANSION OF THE CAWD/PBCSD

RECYCLED WATER PROJECT

 

            Section Three:  Financing for the Project Expansion

 

            C.        Procedures for Separate Sale and Conveyance 

                        1.         No such conveyance shall be effective unless and until the writings comprising the Supplemental Financial Commitment (as defined herein) have been received by MPWMD; and

                        2.         Each portion of the PBC Water Entitlement thus conveyed:

            a. shall be dedicated solely to property within the Del Monte Forest that is not owned by PBC as of the date that that this ordinance is adopted;

            b. shall be put solely to Residential use (as defined in Rule 11); and

            c. shall be offered on the same terms and conditions to persons on the Monterey County waiting list for approved residential development projects within the Del Monte Forest which are awaiting water availability .

3.         As of the date that the writings comprising the Supplemental Financial Commitment as defined herein are received by MPWMD, each recipient of a portion of PBC’s Water Entitlement sold and conveyed pursuant to Subsection C shall be entitled to issuance by the General Manager of a Water Use Permit.  The Water Use Permit shall authorize uses only through a “Residential connection” (as defined in Rule 11), up to the amount of the Water Entitlement separately conveyed as is documented and authenticated in the conveyance documentation presented to the General Manager.

4.         All Water Use Permits issued pursuant to this Subsection to evidence the portions of the Water Entitlement separately conveyed by PBC pursuant to Subsection C of this Section Three shall provide that rights memorialized thereby shall be subject to modification after year 2075 as provided in this ordinance and in Ordinance No. 39, and shall further provide that such rights shall not be Revoked (as defined in Rule 11) or Terminated as defined herein with respect to the entire Water Entitlement so conveyed except as provided in Subsection D of this Section Three.

5.         Each of the restrictions of use set forth in Subsection D of Section Three shall be set forth on the face of the Water Use Permit, and shall bind each owner of the Benefited Property to which the conveyed Water Entitlement is assigned. 

6.         The General Manager shall simultaneously make a record of the quantity of the Water Entitlement thus conveyed and a commensurate reduction in the aggregate amounts of the Water Entitlement thereafter held by PBC.  The Water Use Permit shall provide that MPWMD shall have such access as may be required to enable it to account for the use of water on the Benefited Property.

D.        Restrictions on Use of Portion of Water Entitlement Separately Sold and Conveyed 

1.         Any portion of the Water Entitlement of PBC separately conveyed pursuant to Subsection C of this Section Three may be used only on the specific property to which it is first dedicated following the conveyance, and the water shall be put solely to Residential use (as defined in Rule 11). 

2.         In addition, the use of water acquired pursuant to Subsection C of this Section Three shall not exceed the quantity set forth in the Water Use Permit issued pursuant to Subsection C of this Section Three and shall be measured in accordance with the water use factors specified at the time of connection in the MPWMD Rules, as amended from time to time.  In order to facilitate enforcement of this limitation, MPWMD shall use its existing authority, including without limitation the provisions of Rule 42, MANDATORY RELEASE OF CUSTOMER INFORMATION FROM WATER DISTRIBUTION SYSTEMS, and shall adopt such additional Rules and Regulations, or execute such agreements, as are necessary to gather information concerning the quantity of potable water obtained from Cal-Am on a monthly and total annual basis to serve the Benefited Properties. 

3.         The use of water on each of the properties to which a portion of the Water Entitlement is dedicated (after conveyance by PBC pursuant to Subsection A of this Section Three) shall be measured in accordance with the water use factors specified at the time of connection in the MPWMD Rules, as amended from time to time, and shall at all times remain subject to the limitations and restrictions referenced in this ordinance and Rule 23.5. 

E.         Use of Water Entitlement by PBC  PBC may commence or continue to use the quantity of PBC’s Water Entitlement that is not sold and conveyed by PBC pursuant to Subsection A of this Section on any or all Benefited Properties owned by PBC as of the time that this ordinance is adopted, as provided in the Fiscal Sponsorship Agreement, for any lawful use as determined by the appropriate jurisdiction with land use authority thereover.    In addition, PBC may sell and convey a parcel of land that it owns together with a specified portion of PBC’s remaining Water Entitlement without being required to apply any consideration received therefor to the Project. 

 

 

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