EXHIBIT 19-C

Rule 11 Defined Terms Used in Ordinance No. 158

ALLOCATION – “Allocation” shall mean a discrete quantity of water which has been set aside by the District for new or Intensified Water Use that shall occur within a Jurisdiction.

CONNECTION – Connection” means the point of intersection where a User gains access to the Water Distribution System. Where a Water-Measuring Device is installed, the Water Distribution System shall include the Water-Measuring Device and the Connection shall be the nearest point of User access beyond the Water-Measuring Device. Where a Water-Measuring Device is removed for a period exceeding 36 months, or is relocated or resized, the former Connection shall cease to exist. Where any Permit is transferred in contravention of Rule 28, the Connection(s) affected by said Permit shall cease to exist. For the purpose of these Rules and Regulations, access for fire protection and/or access for short-term use through a hydrant meter installed with the consent of the Water Distribution System Operator shall not be deemed a Connection. Each new Connection, based upon projected quantity of water use, shall be categorized as either “Residential” or “Non-Residential.”

CONNECTION CHARGE – “Connection Charge” shall mean a fee retained by the District in consideration of, and as reimbursement for the costs and expenses incurred by the District in planning for, acquiring, reserving, and maintaining capacity in the water distribution facilities existing or to be constructed within the District.

JURISDICTION – “Jurisdiction” shall mean one of the following: (1) Carmel-by-the-Sea, (2) Del Rey Oaks, (3) Monterey City, (4) Monterey County, (5) Monterey Peninsula Airport District, (6) Pacific Grove, (7) Sand City, or (8) Seaside.

OPEN SPACE – “Open Space” shall mean public land area left in an un-built state as defined in the California Government Code, Section 65560. Open Space includes plazas, parks, and cemeteries.

PARCEL – “Parcel” shall mean any unit of land which qualifies as a Parcel or lot under the Subdivision Map Act, and shall include all units of land: (1) which are contiguous to any other Parcel (or are separated only by a road or easement), and (2) which have identical owners, and (3) which have an identical present use. The term “Parcel” shall be given the same meaning as the term “Site”.

RESIDENTIAL – “Residential” shall mean water used for household purposes, including water used on the premises for irrigating lawns, gardens and shrubbery, washing vehicles, and other similar and customary purposes pertaining to Single and Multi-Family Dwellings.

SITE – “Site” shall mean any unit of land which qualifies as a Parcel or lot under the Subdivision Map Act, and shall include all units of land: (1) which are contiguous to any other Parcel (or are separated only by a road or easement), and (2) which have identical owners, and (3) which have an identical present use. The term “Site” shall be given the same meaning as the term “Parcel”.

WATER CREDIT – Water Credit” shall mean a record allowing reuse of a specific quantity of water upon a specific Site. A Water Credit differs from a Water Use Credit in that it is not characterized by a Permanent Abandonment of Use, but may be the result of a temporary cessation of use.

WATER DISTRIBUTION SYSTEM – Water Distribution System” means all works within the District used for the collection, storage, transmission or distribution of water from the Source of Supply to the Connection of a system providing water service to any Connection including all Water-Gathering Facilities and Water-Measuring Devices. In systems where there is a water meter at the point of Connection, the term “Water Distribution System” shall not refer to the User’s piping; in systems where there is no water meter at the point of Connection, the term “Water Distribution System” shall refer to the User’s piping.

WATER PERMIT – “Water Permit” shall mean a document issued by the MPWMD that authorizes a specific amount and type of water use on a Site.

WATER USE CAPACITY – “Water Use Capacity” shall mean the maximum potential water Use which theoretically may occur, based on average water use data for similar structures and uses in the Monterey Peninsula region, as shown by projected water use tables set forth in Rule 24. “Water Use Capacity” shall have the same meaning as “Capacity.

WATER USE CREDIT – “Water Use Credit” shall mean a limited entitlement by a Person to use a specific quantity of water upon a specific Site. Water Use Credits shall be limited by time, and by other conditions as set forth in the District’s Rules and Regulations.

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