EXHIBIT 2-A

RULE 11 – DEFINITIONS

1. APPLICANT – “Applicant” shall mean the person or persons responsible for completing the requirements of an application. The “Applicant” is usually the property or business owner.
2. ARCHITECTURAL DRAWINGS – “Architectural Drawings” shall mean a graphic representation of what is being built and shall include specifications to provide details not shown on the plans. Architectural drawings shall be on paper, linen, or other accepted medium. “Architectural Drawings” shall have the same meaning as “Construction Plans.”
3. BATHROOM – “Bathroom” shall mean a room containing a toilet and usually one or more sinks and a bathtub and/or shower.
4. CISTERN – “Cistern” shall mean an artificial reservoir (e.g., an underground tank) for storing liquids and especially water (i.e. groundwater or rainwater).
5. COMMERCIAL – “Commercial” shall mean a water use that is not recognized as a residential use by the Jurisdiction.
6. CONSTRUCTION PLANS – “Construction Plans” shall mean a graphic representation of what is being built and shall include specifications to provide details not shown on the plans. Construction Plans shall be on paper, linen, or other accepted medium. “Construction Plans” shall have the same meaning as “Architectural Drawings.”
7. DUAL SYSTEM – “Dual System” shall mean a water supply that is provided from two separate sources of water.
8. GOVERNMENTAL – “Governmental” shall mean related to government, and shall include local, state and federal government.
9. HOT WATER DEMAND PUMPING SYSTEM – “Hot Water Demand Pumping System” shall mean a device or system, which is capable of supplying hot water at each hot water access point in the structure within ten (10) seconds of demand.
10. INDUSTRIAL – “Industrial” shall mean water uses associated with an industrial production, including but not limited to factories, refineries, bottling plants, nurseries, laundries and golf courses.
11. MASTER METER – “Master Meter” shall mean a single water meter that supplies water to more than one water User.
12. MIXED USE – “Mixed Use” shall mean a combination of water Users that includes Residential and Non-Residential uses.
13. NON-RESIDENTIAL – “Non-Residential” shall mean water uses not associated with Residential use.
14. ON-SITE – “On-Site” shall mean located on the same Site.
15. PERMANENT ABANDONMENT OF USE – “Permanent Abandonment of Use” shall mean the permanent removal of a use, including removal of all plumbing formerly serving the abandoned use.
16. PUBLIC – “Public” shall mean related to government, and shall include local, state and federal government.
17. SPECIAL CIRCUMSTANCES WITH SUBSTANTIAL UNCERTAINTY – “Special Circumstances with Substantial Uncertainty” shall mean projects that are so unusual that neither the application of the regional average nor use of actual undisputed quantitative documentation would provide a reliable forecast of the project’s consumption capacity. Such a project must be unique or have such an unusual location, design or clientele that none of the surveyed commercial categories enumerated in Rule 24 represents a comparable type of use, and/or there is no quantitative documentation that is available and beyond dispute.
18. UNDUE HARDSHIP – “Undue Hardship” shall mean a requirement of a rule, regulation or condition which poses significant difficulty to achieve compliance when considered in light of factors related to the application.
19. VISITOR-SERVING COMMERCIAL – “Visitor-Serving Commercial” shall mean include all hotels, motels, restaurants, convention/meeting facilities, and service stations within the Monterey Peninsula Water Management District. Other facilities may be designated as a visitor serving facility by the General Manager upon finding that such facility exists primarily for the use of tourists and the traveling public. Short term rentals of private property are not included under this definition.
20. WATER ENTITLEMENT – “Water Entitlement” shall mean a specific amount of water available to one or more specific properties.
21. 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.

RULE 20 - PERMITS REQUIRED

A. PERMIT TO CREATE/ESTABLISH A WATER DISTRIBUTION SYSTEM

Before any person creates or establishes a water distribution system, such person shall obtain a written permit from the District. Before any person creates or establishes a mobile water distribution system, such person shall obtain a written permit from the District.

Desalination, reclamation or importation facilities located within the District are not exempt because the source of supply is considered to be the water emanating from a facility within the District.

Persons who hold a valid permit for construction and operation of a water distribution system from the Monterey County Health Department, prior to March 12, 1980, or a water distribution system in existence prior to that date, shall be deemed to have been issued a permit in compliance with these Rules and Regulations. Persons who filed a completed application to the Monterey County Health Department, date-stamped by the Department on or before March 19, 2001, for construction of a well serving a single-parcel connection water distribution system shall be deemed to have been issued a permit in compliance with these Rules and Regulations provided all of the following actions are taken: (1) the applicant receives a valid well construction permit from the Monterey County Health Department, makes the well active, meters the well, has the well inspected by MPWMD and receives an approved MPWMD Water Meter Installation Inspection form issued on or before October 15, 2001; and (2) each water-gathering facility of that system was registered with the District on or before October 15, 2001.

No mobile water distribution system shall be issued a permit under the provisions of the previous paragraph. Each such system shall be required to apply for and obtain a permit in accord with Rules 21 and 22.

The expansion capacity limit and system capacity of previously existing systems shall be determined pursuant to Rule 40 (A).

No owner or operator of a water distribution system shall modify, add to or change his/her source of supply, location of uses, change annual production or connection limits, or expand the service area unless that person first files an application to do so with the District and receives an amended creation/establishment permit.

B. PERMITS TO EXPAND/EXTEND CONNECT TO OR MODIFY A WATER USE CONNECTION TO A WATER DISTRIBUTION SYSTEM

Before any person expands/extends connects to or modifies a water use connection to a water distribution system or to any mobile water distribution system, such person shall obtain a written permit from the District or the District’s delegated agent, as described in District Rules 21, 23 and 24. The addition of any connection or any water-gathering facility to a water distribution system and/or the intensification of use modification to of an existing water connection shall be deemed an expansion or extension of that system. Any change in use, size, location, or relocation of a connection or water-measuring device which may allow an intensification of use or increased water consumption, each use of an on-site credit or Water Use Credit or any permit transfer pursuant to Rule 28, any modification to residential water fixtures including landscaping changes when a landscape plan has been reviewed and approved as a component of a previous water permit, and any change in use or expansion of a non-residential use shall be deemed an expansion or extension of that system to require a water permit. Installing new water fixtures or changing use of a non-residential facility without a permit shall provide cause for the District to restrict or terminate water on that Site. It shall be the responsibility of the jurisdiction to complete any applicable environmental review on a project prior to authorizing a water permit release via a Water Release Form. Each application for a water permit shall follow the process set forth in Rule 23. A proper applicant for such an expansion/extension water permit may be either the owner or operator of the water distribution system, the prospective user of the proposed connection as the real party in interest, the property owner, or any agent thereof.

RULE 21 – PERMIT APPLICATIONS

A. APPLICATION FOR PERMIT TO CREATE/ESTABLISH A WATER DISTRIBUTION SYSTEM

The applicant for a Permit to Create/Establish a Water Distribution System shall submit the following:

1. A completed written application, signed by the system owner, in the manner and form prescribed by the Implementation Guidelines; and

2. Environmental information as required by the California Environmental Quality Act (CEQA); and

3. Zoning and land use designations for the property; identify land use approvals which may be required for the proposed project by the municipal unit in which proposed system would be located (i.e., tentative map, use permit, etc.), or by other governmental agencies, consistent with state and local regulations that require proof of available water supply; and

4. Identify type of water right claimed to exist with each water-gathering facility and each source of supply for the system (e.g., riparian, pre-1914, appropriative, overlying or other). Provide written verification of legal water rights applicable to type of right claimed. The verification shall include, but shall not be limited to the following forms of documentation: (a) Condition of Title Report, prepared by a Title Company at the applicant’s expense, and any and all supporting documentation to indicate whether legal water rights have been subordinated or severed; this documentation may include a judicial declaration of right or a full title opinion prepared by an attorney with expertise in water law; (b) information that describes the legal basis or authority for diversion and extraction of water; (c) if groundwater is being pumped from a groundwater basin that has not been adjudicated, a statement to that effect in addition to a copy of the current deed to the property is sufficient documentation to satisfy this requirement; or (d) if the source of the water is subject to permit requirements under the State Water Resources Control Board, a copy of the SWRCB water rights permit or domestic registration must be included; and

5. A copy of the application submitted to the Monterey County Environmental Health Department for Creation of a Water Distribution System for multiple-connection systems only; and

6. The name and address of each responsible party; and

7. The results of well capacity (aquifer pumping) tests for the duration specified by the Implementation Guidelines, the cost of which tests shall be borne by the applicant, and which shall be observed by a District representative or agent; and

8. The results of water quality tests as specified by the Implementation Guidelines, the cost of which tests shall be borne by the applicant; and

9. An evaluation of the hydrogeologic information in the manner and form required in the Implementation Guidelines. This evaluation shall be prepared by a qualified individual or firm as determined by District. Qualified consultants shall include a certified hydrogeologist, a registered geologist with a specialty in hydrogeology, a certified engineering geologist with a specialty in hydrogeology, or a registered civil engineer with a specialty in hydrogeology; these specialists shall be certified in or registered by the State of California. The costs of this evaluation shall be borne by the applicant; and

10. The applicable fees prescribed in Rule 60.

B. APPLICATION FOR WATER PERMIT TO EXPAND/EXTEND CONNECT TO OR MODIFY A CONNECTION TO A WATER DISTRIBUTION SYSTEM

The applicant for a Water Permit to Expand/Extend connect to or modify a water use connection a Water Distribution System shall be deemed complete when the applicant submits the following:

1. A completed written application in the manner and form prescribed by the Implementation Guidelines; and

2. For those potable system applications for which a building permit is pending, Ccomplete architectural drawings Construction Plans that reflect water use pursuant to Tables 1 or 2 of Rule 24, together with any amendment, addition, or modification of those drawings plans which may be made prior to use or occupancy of the project, and any drawings plans which may be submitted to the municipal unit for land use or building approvals, and a statement of near-term need for the proposed expansion/extension; and

3. For subpotable systems, and for exterior use for all systems an itemized estimate of water use in the form of a A landscape water budget which includes the Maximum Applied Water Allowance (MAWA) calculation and three copies of the landscape plan for new exterior use for all systems when the Site exceeds 10,000 square-feet in size or when the site is used for non-residential purposes, or other alternate water demand estimate as approved by the General Manager; and

4. Architectural drawings for each change in the project made prior to use or occupancy which may affect the project’s capacity to use water; and A copy of the District-issued documentation of a Water Use Credit or documentation of an on-site water credit when a credit is used to offset new water fixtures or uses.

5. A Water Release Form signed by the authorized official of the applicable Jurisdiction (the city, county or the airport district) pertaining to the Site on which the water use shall occur.

6. A copy of a District inspection report for the property, if required to process the permit.

5.7. Payment of tThe applicable fees prescribed in Rule 60.; and

6. The connection charge prescribed in Rule 24.

C. APPLICATION FOR AMENDMENT TO A PERMIT

The applicant shall submit the following items and documents which shall be processed in the manner described below:

1. A completed written application in the manner and form prescribed by the General Manager, under Rule 22 or Rule 23 as appropriate to the proposed amendment.

a. An amendment to a water distribution system permit under Rule 22 E shall require the signature of the system owner.

b. When the application involves the expansion or annexation to an existing water distribution system service area the application shall be processed as an amendment of the Permit to Create/Establish a Water Distribution System.

c. When the application involves expansion of the water distribution system beyond its prior authorized system capacity (annual production) limit or its prior authorized expansion capacity (connection) limit, the application shall be processed as an amendment of the Permit to Create/Establish a Water Distribution System.

2. No owner or operator of a water distribution system shall modify, add to or change his/her source of supply, location of uses, change annual production or connection limits, or expand the service area unless that person first files an application to do so with the District and receives an amended creation/establishment permit.

2. Payment of tThe fees prescribed in Rule 60.

3. The applicable connection charge prescribed in Rule 24, Connection Charges.

D. APPLICATION FOR APPEAL

1. A complete written application in the manner and form prescribed by the General Manager.

2. The fee prescribed in Rule 63.

E. APPLICATION FOR VARIANCE

1. A complete written application in the manner and form prescribed by the General Manager.

2. The fee prescribed in Rule 63.

3. Applicable fees prescribed in Rule 60.

F. D. NAME CHANGES

An applicant or permit holder’s name or identifying information may be changed without charge, and in such circumstances a revised permit may shall be issued. Processing fees and administrative charges shall apply.