(1) As a condition for the extension of a City water main beyond the City limits as a primary source of City water for potable or irrigation uses within a residential subdivision or other development, any property owner or developer of such property shall assign and transfer to the City any certificate, permit or claim to a water rights for the withdrawal of ground or surface waters, or such other water rights as may be appurtenant to such property, including exempt well water rights in the quantity and manner set forth in PMC 13.15.030.

(2) In the event there are no water rights appurtenant to the real property benefited in subsection (1) of this section, the property owner or developer shall pay to the City, in lieu thereof, a water rights acquisition fee as established in the City fee summary ordinance, Chapter 3.35 PMC; or upon appropriate notice recorded with the real property subject to development, defer payment in lieu to the time of application for connection of the new water service serving real property as provided by PMC 13.15.030. This water rights acquisition fee shall be in addition to any other water rates or charges as established in the City fee summary ordinance, Chapter 3.35 PMC.

(3) Excess Water Rights. To the extent the water rights associated with the subject property exceed the anticipated water requirement for the subject property, the City, in its sole discretion, may require the owners of the subject property to transfer any amount of excess water rights to the City, and the City shall pay the owners of the excess water rights transferred to the City an amount representing the market value of the excess water as determined pursuant to PMC 13.15.030(3), subject to the right of administrative appeal as provided in PMC 1.30.030. [Ord. 4160, 2014; Ord. 3795, 2006; Ord. 3547 § 1, 2002; Code 1970 § 13.36.070.]