(a) 
This section provides definitions for terms or phrases used in this chapter that are technical or specialized, or that may not reflect common usage. If any of the definitions in this chapter conflict with definitions in other provisions of the Pacific Grove Municipal Code, the definitions set forth in this section shall control for the purposes of this chapter. If a word is not defined in this chapter, or in other provisions of this title, the most common dictionary definition shall be presumed to be correct.
(b) 
The following are defined terms for use in this chapter:
"Allocation"
means a discrete quantity of water held by the city from the Monterey Peninsula Water Management District for new or intensified water use within the city.
"City water distribution regulations"
means this chapter.
"Entitlement"
(also "water entitlement") means a discrete quantity of potable water developed through use of city funds, available for sale to end users to enable new or intensified use of water from the California American Water Distribution System. Entitlements are evidenced by a vested contractual right granted by the city.
"Intensified water use"
means any change in water use on a parcel which, in a residential use, is evidenced by an increase in the number of fixture units serving that parcel; or, in any nonresidential use, evidenced by the incremental change in the project's capacity for annual water use based upon factors set by the Monterey Peninsula Water Management District.
"Mixed use"
means where one or more water meters or connections supply both residential and nonresidential water uses, often within the same building.
"Notice of available water"
means a notice provided by the city manager, or agent, to advise an applicant that water from a water entitlement or water allocation is ready for immediate use for a project, which may trigger time limits for wait-listed properties within which applicants must claim and purchase water or be removed from the water wait list.
"Pacific Grove local water project (PGLWP)"
means a reclamation plant intercepting and treating sewer water to deliver nonpotable water to the Pacific Grove Golf Links and El Carmelo Cemetery, and providing water for other public uses.
"Water credits"
means a record created by the Monterey Peninsula Water Management District that allows reuse of a specific quantity of water upon a specific location, based upon documented permanent abandonment of prior water use on that site.
"Water subscription"
means a document through which a property owner acquires a contract interest for a discrete quantity of water from the legal owner of a water entitlement.
"Water use capacity"
means 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 developed by the Monterey Peninsula Water Management District. Anticipated maximum annual water demand is expressed in acre-feet for a specific real property.
"Water wait list"
means a chronological list that quantifies unmet potable water requests for unserved end use water users. Prerequisite qualifying criteria must have been met before a project was placed on the water wait list.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019)
(a) 
All water available for distribution and use within the city shall be distributed by resolution passed and adopted by the council.
(b) 
Water shall be distributed based solely on the date/time of each request, provided the request is accompanied by payment of all city fees or other city charges for water, and further provided the requestor can demonstrate an ability to make timely use of the water.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019)
Project applications placed on any water wait list will be eligible for water on priority date basis provided the project is then able to use the water; if not, the available water will be passed to the next buildable project and the delayed project shall remain on the water wait list; the project shall retain its original priority date water wait list until it acquires water available for use. No additions to the water wait list shall be allowed after April 20, 2022.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019; Ord. 22-005 § 2, 2022)
(a) 
Applications for projects for which there is no available water shall not be accepted or processed. However, there shall be established a prioritized waiting list according to order of receipt of proof of readiness to apply for a building permit.
(b) 
For projects requiring only a building permit, proof of readiness to apply for a building permit shall include submittal of all materials normally required to be filed with building permit applications.
(c) 
For projects requiring discretionary land use entitlements (including, without limitation, variances, use permits, historical preservation permits, architectural approvals), proof of readiness to apply for a building permit shall include the final discretionary approval and submittal of all materials or plans normally required to be filed with a discretionary permit application. Final discretionary approval shall occur upon the granting of all required project approvals by the boards and commissions having jurisdiction to first hear the project applications. In the event of a successful appeal, i.e., denial of the project application, from such approval, the project shall be removed from the water wait list.
(d) 
A request for inclusion on a prioritized waiting list shall include a written acknowledgment that there is, at the time of such request, no water available for the requested project. Fees may apply to remain current on this waiting list.
(e) 
Proofs of readiness shall be placed on prioritized waiting lists according to order received. Once water is available to service a project covered by proofs of readiness, those affected shall be notified and may apply for building permits. Once a building permit is determined to be complete and ready for issuance, the applicant shall be granted authorization to seek a water permit.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019)
(a) 
When water is available for project use, or by purchase via entitlement, time limits set forth below shall apply to wait-listed properties within which those that can take immediate advantage of the water must claim and purchase water, or be bypassed on the water wait list. Projects prevented by regulation or operation of law from immediate use of water shall remain on the water wait list and retain their priority date.
(b) 
The city will send a notice of available water to applicants on the water wait list. Applicants shall have 30 calendar days from the date of the notice to notify the city, in writing, of their intent to use available water or to remain on the water wait list ("passing"). Wait-listed properties shall be required to reapply for permit amendments or renewal, if needed, within 30 days of the date notice of available water by the property is sent. In the alternative, applicants shall be required to state their intent to "pass" on purchasing entitlement water during this same time period. Building permits shall be obtained 120 days thereafter. Full payment shall be tendered for any water entitlement within 180 days of the date water is available for use by the property. Extensions to these time limits may be granted for good cause by the city manager, or designee, in accord with this chapter.
(c) 
Full use of water, including purchased entitlement water or water from an allocation (quantified by water use capacity), shall be required by the first date of occupancy. Any unused entitlement shall be subject to revocation to enable reassignment or sale for other uses. The city may consider rebate of the pro rata purchase price of any unused water entitlement to the then-current property owner (less a reasonable processing fee) upon revocation of an increment of unused water entitlement, but payment of the rebate amount shall not be made by the city until sale of that water increment has been completed and paid in full by another water user.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019)
(a) 
Sale of PGLWP entitlement water shall be set at the rate determined by council resolution. Fees paid to the city by the applicant to remain on a water wait list shall be applied as a credit toward the purchase of the water entitlement; no refund shall be granted.
(b) 
If warranted by circumstances related to the sale of 2.0 acre-feet of water or more for a specific project, the city in its sole discretion may elect to enter into a promissory agreement with the property owner(s) to effect sale of entitlement water. The maximum amount payable pursuant to the promissory agreement shall not exceed 90 percent of the water entitlement purchase price; the purchaser shall pay to the city as a deposit the remaining purchase cost as a condition precedent to execution of the promissory agreement.
(1) 
Any water entitlement that is subject to a promissory agreement shall be subject to revocation, shall not vest and shall not run with the land until the promissory obligation has been paid in full to the city.
(2) 
If consideration required pursuant to a promissory agreement is not paid to the city in full when due, including but not limited to principal, interest, costs and fees, the owner(s) shall be in default of the promissory agreement. Unconditional transfer of an entitlement shall occur only following receipt of full payment by the city.
(3) 
If full and complete payment is not timely received by the city, the city shall retain authority to revoke the water entitlement, in part or in full.
(4) 
Transfer or assignment of any promissory agreement or any interest in a water entitlement subject to a promissory agreement shall not be made without the advance written consent of the city.
(5) 
The city shall also withhold all final occupancy permits for any project for which a promissory agreement is in default, until such time as the default has been cured by full payment of all amounts owed.
(c) 
City council approval shall be required for the city to enter into any promissory note related to payment for entitlement water.
(d) 
After purchase of entitlement water, the city may rebate the pro rata purchase price to the then-current property owner (less a reasonable processing fee) upon city revocation of any increment of unused water entitlement, but payment of the rebate amount shall not be made by the city until sale of that water increment has been completed and paid in full to the city by another water user.
(Ord. 18-015 § 3, 2018; Ord. 19-006 § 2, 2019; Ord. 21-023 § 2, 2021)