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Any application for a new water service connection to serve real property located outside the City limits of the City of Pasco, except for those properties for which water rights, or payment in lieu of water rights, have been received by the City pursuant to PMC 13.45.060, shall be conditioned upon the transfer to the City of water rights associated with the property; or, if such water rights are not available or are inadequate to meet the water needs of the property to be served, upon payment to the City of a water rights acquisition fee in lieu of transfer, determined as follows:

(1) Amount of Water Rights or Payment in Lieu. The amount of transferred water rights or the fee in lieu of transfer pursuant to this section and PMC 13.45.060 shall be sufficient to serve the number of residential units supplied by the connection for in-house domestic water service and irrigation water service sufficient to cover 50 percent of the lot or parcel of real property to be served by the water connection.

(a) Irrigation Water Service Available. If the property to be served by the City is located within and served by the Franklin County Irrigation District, or other public or private irrigation provider acceptable to the City for landscaping irrigation purposes, the property shall continue to be served by the District or other irrigation provider and the applicant for water service shall only be required to transfer three-tenths acre-foot of water rights per residential unit or its equivalent, or provide a payment in lieu for said quantity as directed by subsection (3) of this section.

(b) Irrigation Water Service Unavailable. If the property to be served by the City is not included within or served by the Franklin County Irrigation District or other public or private irrigation water provider acceptable to the City for landscaping irrigation purposes, the applicant for water service shall be required to transfer three-tenths acre-foot of water rights per residential unit or its equivalent and in addition, three and one-half acre-feet per year per acre of irrigable land or fraction thereof, or provide a payment in lieu for said quantity as provided in PMC 3.35.160. The requirement relating to irrigable land cannot be waived on the basis that the current owner or developer does not plan to irrigate said land.

(2) Excess Water Rights. To the extent the water rights associated with the subject property exceed the anticipated water requirement for the subject property as determined pursuant to subsection (1) of this section, the City in its sole discretion may require the owner(s) of the subject property to transfer any amount of the excess water rights to the City and the City shall pay the owner(s) of the excess water rights transferred to the City an amount representing the market value of the excess water rights as determined by subsection (3) of this section, subject to the right of administrative appeal as provided in Chapter 1.30 PMC.

(3) Determination of Market Value for Payment in Lieu. The market value of water rights shall be determined periodically by the City Engineer, but not less frequently than every five years, based upon a water rights market study or similar investigation of the fair market value of perfected water rights that can be transferred to the City.

(4) Security for Water Rights Transfers. Because the process for transferring water rights to the City may involve applications to the Department of Ecology or a water conservancy board and are subject to various legal standards and factual investigations over which the City has no control, the City shall require security in the form of a performance bond, deposit, or assignment of account in an amount equal to the payment-in-lieu transfer as provided in subsection (1) of this section, in the event that the water rights transfer is not successful. In the event the water rights transfer is not approved, the security will be forfeited in satisfaction of the obligation as provided in this section.

(5) Process, Costs and Forms Required for Transfer of Water Rights. If there are water rights appurtenant to the subject property, they shall be assigned and transferred to the City using forms approved by the City Attorney together with the water rights transfer fee required by PMC 3.35.160 for that purpose, including but not limited to the following: water rights transfer agreement, assignment of water rights permit, conveyance of water rights claim or certificate (deed), application to change water rights, and bond, deposit, or assignment of account to secure payment in lieu of water rights if transfer of the water rights is not approved. The applicant shall pay the water rights transfer fee as provided in PMC 3.35.160, and shall provide the City with documentation of the validity of the water rights as requested by the City Engineer. If there are no water rights appurtenant to the subject property, the applicant shall pay only the water rights acquisition fee in lieu of water rights. [Ord. 4160, 2014; Code 1970 § 13.16.012.]