EXHIBIT 8-G

MONTEREY COUNTY CONDITIONS OF APPROVAL FOR SEPTEMBER RANCH SUBDIVISION RELATED TO WATER

Submitted by Applicant, from County Resolution #10-312 dated November 9, 2010

PBDSP017 – WATER-INTENSIVE USES (NON-STANDARD CONDITION)

Prior to filing the final map, applicant shall submit CC&Rs for review and approval of the Director of Planning which prohibit water intensive uses, including but not limited to vineyards, ornamental fountains that do not recirculate water, washing of hard surfaces such as streets, gutters, sidewalks and driveways within any portion of proposed lots, open space parcels or on the Equestrian Center Parcel. (RMA - Planning Department)

PBDSP025 – CONNECTION TO CAL-AM PROHIBITED (NON-STANDARD CONDITION)

The applicant shall be prohibited from hooking up to the California-American Water Company System. The CC&Rs shall state that neither the water system nor any owner or group of owners shall request or receive a water supply from Cal-Am or actually be supplied water by Cal-Am. The CC&Rs shall be enforceable by the County and may not be changed without County approval. (RMA - Planning Department)

PBD006 - DEED RESTRICTION - USE

The applicant shall record the following deed restriction stating the use and regulations applicable to the Equestrian Center: “The Equestrian Center shall be owned by the September Ranch Homeowner's Association. The recreational uses on the 20.2-acre Equestrian Center Parcel (Assessor’s Parcel Number 015-171-010-000) shall be subject to the following:

· The property will provide recreational uses in perpetuity

· Water use of no more than 3 acre-feet per calendar year for the Equestrian Center facility

· Irrigation of pasture is prohibited

· Boarding of a maximum of 50 horses

· No more than 12 equestrian events per calendar year

· Hours of operation shall be from 6:00 AM to 8:00 PM, 7 days per week October 1^st to March 31^st and 6:00 AM to 9:00 PM, 7 days per week from April 1^st to September 30^th

· Existing home shall be used as a caretaker unit or other use for public benefit, including, but not limited to, a Sheriff’s Office Community Field Office, homeowner’s association office or historical center

The deed restrictions shall be adopted by the Board of Supervisors at the time of recordation of Phase 1 of the final map. (RMA - Planning Department)

PBDSP003 – WATER USE PLAN (NON-STANDARD CONDITION)

The total water use within the subdivision shall not exceed 57.21 acre-feet per year (AFY). This is based upon the following:

· 54.21 AFY for market-rate lots, inclusionary and workforce units, and the water treatment facility.

· 3 AFY for the Equestrian Center Facility.

· The applicant, or a public water system established by applicant, shall select a water treatment method that consumes the lowest amount of water feasible within the range of 0 to 10%.

· The applicant, or a public water system established by applicant, shall conduct at least two audits each year for leaks and other water losses and shall repair all leaks and other water losses as soon as reasonably practical under the circumstances.

· Prior to filing the final map for each phase, the applicant shall submit a Water Use Plan showing the proposed water demand estimate for each lot within that phase. Water demand estimates shall be based upon the Monterey Peninsula Water Management District (MPWMD) current water demand estimation methodology as codified in MPWMD Rules and Regulations. Before the final map for each phase will be approved, applicant must demonstrate the subdivision water use is within Pro Rata Expansion Capacity per MPWMD Rule 11. The plan shall be submitted to the Water Resources Agency and the Director of Planning for review and approval.

· Concurrent with the filing of the final map, the Applicant shall record a deed restriction on each lot in the phase that notifies future owners that in the case of a water permit exceedence, the County and MPWMD shall have access into the subdivision or onto any lot for purposes of monitoring water use and compliance and access into any home for inspection of fixtures.

· Concurrent with the sale of any lot in the phase, the Applicant shall fix the maximum permitted water use on that individual lot within the total water use allowed under the applicable approved Water Use Plan, and the Applicant shall record a notice on title fixing the maximum permitted water use for that lot. The notice shall be signed by both the buyer and the seller. The Applicant shall provide a copy of the recorded notice to the County, and no building permits shall be issued on the lot until the County has received a copy of the recorded notice.

(Water Resources Agency and RMA - Planning Department)

PBDSP012 – WATER USE REPORT (NON-STANDARD CONDITION)

A quarterly water use report shall be submitted to the Water Resources Agency and Director of the Planning. If any report demonstrates that actual water use for the entire subdivision is within 5% of the maximum entitlement, the Director of Planning shall submit the final map for any subsequent phase to the Board of Supervisors for a discretionary determination as to whether water supply is adequate for that phase. The Board shall take appropriate action to ensure that the total use over the entire subdivision does not exceed 57.21 acre-feet per year (AFY) per project Condition of Approval Number 146. Such action may include denying the final map for that phase, limiting total fixture counts for the phase or for individual building permits, and/or taking other measures as appropriate in each phase based upon their review of the Water Use Plan and quarterly reports. (Water Resources Agency and RMA - Planning Department)

EHSP001 – WATER SYSTEM PERMIT (NON-STANDARD CONDITION)

Obtain approval for a new water system permit from the Division of Environmental Health. (Environmental Health)

EHSP002 – WATER SYSTEM IMPROVEMENTS (CO. PERMITTED SYSTEM) (NON-STANDARD CONDITION)

Design the water system improvements to meet the standards as found in Chapter 15.04 of the Monterey County Code, Titles 17 and 22 of the California Code of Regulations and as found in the Residential Subdivision Water Supply Standards. Each well and all individual connections shall be metered. Submit engineered plans for the water system improvements, including plans for secondary treatment to include treatment for TDS to less than 500 mg/l, and any associated fees to the Director of Environmental Health for review and approval prior to installing (or bonding) the improvements. (Environmental Health)

EH5 – INSTALL /BOND WATER SYSTEM IMPROVEMENTS

The developer shall install the water system improvements to and within the subdivision and any appurtenances needed or shall enter into a Subdivision Improvement Agreement with the County to install the water system improvements and provide security guaranteeing the performance of the Agreement. (Environmental Health)

WR41 - NOTICE OF WATER CONSERVATION REQUIREMENTS

A notice shall be recorded on the deed for each lot stating: “All new construction shall incorporate the use of low water use plumbing fixtures and drought tolerant landscaping, in accordance with County Water Resources Agency Ordinance No. 3932 or MPWMD Regulation XIV, whichever is stricter.” Prior to recordation of the final map, a copy the completed notice shall be provided to the Water Resources Agency and to the MPWMD for approval. (Water Resources Agency)

WRSP001 - LANDSCAPING REQUIREMENTS (NON-STANDARD)

A notice shall be recorded on the deed for each lot stating: “The front yards of all homes shall be landscaped at the time of construction. The total amount of landscaping requiring an application of water shall be limited to 4,275 square feet for market-rate homes, 1,600 square feet for inclusionary homes, and 1,800 square feet for workforce homes. Low water use or drought tolerant plants shall be used together with water efficient irrigation systems.” Prior to recordation of the final map, a copy of the completed notice shall be provided to the Water Resources Agency for approval. (Water Resources Agency)

WR46 - C.C.&R. WATER CONSERVATION PROVISIONS

The applicant shall provide the Water Resources Agency with a copy of the subdivision Covenants, Conditions and Restrictions containing the following provisions from Monterey County Ordinance No. 3932: “All new construction incorporate the use of low water use plumbing fixtures including, where applicable, hot water recirculation systems; the front yards of all homes shall be landscaped at the time of construction; low water use or drought tolerant plants shall be used together with water efficient irrigation systems; leak repair is the property owner’s responsibility; vehicle and building washing shall use hoses equipped with shutoff nozzles; no potable water to be used for sidewalk washing; no water spillage into streets, curbs, and gutters; no emptying or refilling of swimming pools except for structural repairs or if required for public health regulations; no fountains unless water is recycled within the fountain.” (Water Resources Agency)

MITIGATION MEASURE 4.3-1

WATER SUPPLY AND AVAILABILITY

Water use on the property shall not exceed 57.21 AFY. (Water Resources Agency and RMA –Planning Department)

MITIGATION MEASURE 4.3-2

WATER SUPPLY AND AVAILABILITY

The location of future wells on the September Ranch project site shall be based upon the following:

· Wells will be located based on pumping tests designed and executed to yield information on the radius of influence of potential multiple pumping wells

· Project applicant will ensure that representative transmissivities for the three aquifer units are made available for informed decisions on placement of future wells to ensure new wells will not impact existing wells.

Resource Management Agency (RMA) retains discretion to require drilling of replacement wells if it is demonstrated, to the satisfaction of RMA and the Environmental Health Division that the project wells result in impacts to an existing well in use as of the date of project approval. (Environmental Health and RMA –Planning Department)

MITIGATION MEASURE 4.4-1 HYDROLOGY AND WATER QUALITY

Prior to the filing of the final map the applicant shall submit a drainage report and drainage plan for review and approval by the Director of Public Works Department (DPW) and the General Manager of the Water Resources Agency (MCWRA). The report is to include and show all tributary areas and information pertinent to the drainage in the area. Proposed detention basin capacities shall be sized to accommodate the difference between the 100-year post-development runoff and the 10-year pre-development runoff while limiting discharge to the 10-year predevelopment runoff rate. If runoff from individual lots cannot be directed to a detention basin, on-site retention or detention facilities shall be constructed in accordance with the requirements of the Water Resources Agency. (RMA – Planning and Building and Water Resources Agency)

MITIGATION MEASURE 4.4-2 HYDROLOGY AND WATER QUALITY

The project applicant shall prepare a drainage plan, which includes the proper design and placement of sediment traps to preen the discharge of sediments and pollutants into offsite drainage channels. In order to mitigate adverse water quality impacts that could be generated by the proposed project after construction, potential BMPs for storm water runoff quality control should be incorporated into project design. These could include such measures as vegetated buffer strips, use of porous pavement, “grass-phalt,” cisterns of storm water storage, street sweeping, percolation basins and grease/oil traps (with regular maintenance programs).

Good housekeeping, waste containment, minimization of disturbed areas, stabilization of disturbed areas, the protection of slopes and channels, the control of the site perimeter, and the control of internal erosion are the objectives of the BMPs. The BMPs include limiting soil exposure through scheduling and preserving existing vegetation; stabilizing soils through seeding, planting, and mulching; diverting runoff through earth diking, temporary drains, swales, and slope drainage; reducing velocity through outlet protection, checking dams, slope roughening/terracing; trapping and filtering sediment through silt fencing, straw bale barriers, sand bag barriers, brush and rock filters, storm drain inlet protection, and sediment basins. Specific and extensive BMP measures, such as those identified below, should be contained in the Final Erosion Control Report, which shall be submitted as a condition of the Final Map.

· Temporary erosion and sedimentation control features shall be maintained until revegetation is sufficient to prevent erosion of disturbed construction and restoration sites. Sufficiency of revegetation shall be determined by the project’s conservation manager and certified erosion and sedimentation control specialists.

· Periodic pre-storm, storm, and post-storm monitoring inspections of BMP measures shall be conducted from the duration of construction phases and until temporary protection features have been removed.

· Daily inspections shall be conducted during grading construction to assure condition and adequacy of erosion and sedimentation control features.

· Daily repairs of damaged erosion- and sedimentation-control features (e.g., downed silt fencing, broken straw bales, damaged sandbags) shall be completed.

(RMA – Planning and Building, Public Works and Water Resources Agency)

MITIGATION MEASURE 4.4-3 HYDROLOGY AND WATER QUALITY

The applicant shall prepare CC&Rs, which include requirements for the type and frequency of catch basin, sediment trap, and storm water inlet cleaning and maintenance. The storm drainage system shall be maintained on a regular basis to remove pollutants, reduce high pollutant concentrations during the first flush of storms, prevent clogging of the downstream conveyance system, and maintain the catch basins sediment trapping capacity. The homeowner’s association, or some other similar responsible entity, shall provide for at least an annual inspection regimen and immediately repair or clean the system, as needed. (RMA – Planning and Building and Water Resources Agency)

NEW CONDITIONS ADDED BASED UPON AUGUST 2010 FINAL REVISED WATER DEMAND ANALYSIS

PBDSP035 – LANDSCAPE WATER DEMAND (NON-STANDARD CONDITION)

Each lot shall satisfy the substantive requirements of the Department of Water Resources Model Water Efficient Landscape Ordinance, tit. 23, Cal. Code Regs., §§ 490–495, regardless of whether the lot has a total project landscape area less than the threshold 5,000 square feet as identified in Section 490.1(a)(3) of the Ordinance. Compliance with the Ordinance will require, among other things, preparation and submissions of a Landscape Documentation Package including a Water Efficient Landscape Sheet, soil management report, landscape design plan, irrigation design plan, and grading design plan. Said compliance shall be demonstrated prior to issuance of building permits subject to the approval of the Director of Planning. Notes shall be included on each site plan and final map indicating that submission and approval of the Landscape Documentation Package for any lot is required for development of that lot prior to issuance of a building permit. Building permits will also specify ongoing compliance with the Ordinance, a requirement of dedicated landscape water meters and, for lots greater than 10,000 square feet, irrigation system controllers equipped with soil moisture sensors. (RMA - Planning Department)

WRSP002 – WATER PERMIT (NON-STANDARD CONDITION)

Prior to the issuance of a building permit, the property owner shall obtain an approved water permit for that lot from MPWMD and submit a copy of the approved permit to the RMA-Planning Department and the Monterey County Water Resources Agency. The issuance of the building permit is predicated on the following restrictions:

· The building permit shall specify that no additional fixtures or a more water-intensive type of landscaping may be installed unless the property owner of the lot first obtains the necessary water permit amendment approved by MPWMD pursuant to its Rules. The property owner of the lot shall submit sufficient evidence to the Planning Department and the MPWMD demonstrating that the modifications will not result in either an increase in annual water use that exceeds the allocation of water use for such lot under the Subdivider’s Water Use Plan or an approved amendment thereto, and that the modifications comply with the Project’s conditions of approval.

· The building permit will specify that if such modifications are made without the necessary water permit amendment, a flow restrictor may be installed in the water meter or water supply providing water to the property.

· The flow restrictor shall be installed to ensure a level of water use consistent with the fixtures and landscaping used to calculate the level of water use for the water permit.

· The flow restrictor shall not be removed unless the additional fixtures or other modifications are first removed or the property owner provides evidence satisfactory to RMA-Planning Department that water use will remain within the level consistent with the fixtures and landscaping approved in the water permit.

· Individual variances from flow restrictor requirements may be made for medical needs that are certified by a doctor.

· All costs for installation and removal of flow restrictors shall be charged to the property owner of the lot subjected to the action.

(Water Resources Agency and RMA – Planning Department).

PBDSP036 – WATER SUPPLY AND AVAILABILITY (NON-STANDARD CONDITION)

All toilets installed in Project lots shall meet the requirements of the U.S. Environmental Protection Agency’s WaterSense Tank-Type High-Efficiency Toilet Specification. All clothes washing machines shall meet the requirements of the U.S. Environmental Protection Agency for ultra-low flow devices. (Water Resources Agency and RMA –Planning Department)

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