(A) Dedication required for approval.
(1) As provided in UCA § 10-9a-508, any applicant seeking city approval of a proposed development shall dedicate to the city a water entitlement of sufficient quantity and type to satisfy the proposed development’s anticipated culinary water and secondary water needs.
(2) Compliance with this section shall be a condition precedent to approval of any application for development subject to this subchapter.
(B) Type and amount of water entitlement required for development.
(1) (a) To be acceptable for dedication to the city, a water entitlement must be:
1. Approved by the Utah State Engineer for year-round municipal use within the city’s service area; and
2. Diverted from the city’s designated points of diversion.
(b) The city may refuse dedication until the approval required in this division (B) is final and non-appealable.
(2) In determining the required amount of the water entitlement to be dedicated for a particular development, the city shall consider:
(a) The principles set forth in UCA §§ 10-9a-508 and 19-4-114;
(b) The diversion and depletion limits of the water entitlement;
(c) The city’s 40-Year Water Plan; and
(d) Any other relevant factors.
(3) Pursuant to division (B)(2) above, the initial amount of a water entitlement dedicated to the city shall be as follows:
(a) For indoor residential or domestic use, a water entitlement with a depletion of 0.30 acre-feet per ERC, after conversion to municipal use;
(b) For commercial, industrial and other uses, a water entitlement based on an engineer’s estimate, as approved by the City Engineer, of the projected water demand of the proposed development.
1. Until the City Engineer has sufficient information to approve an engineer’s estimate of the water entitlement, the applicant shall place its water shares in escrow by delivering one or more original share certificates to the City Recorder.
2. The City Recorder shall notify the issuer of the shares of the escrow and hold the certificates until the City Engineer is able to provide an engineer’s estimate.
3. The number of water shares to be placed in escrow shall be determined by the City Engineer.
(c) For outdoor secondary or irrigation use, a water entitlement consisting of a four-acre-foot diversion and a depletion of 1.87 acre-feet per irrigated acre after conversion to municipal use.
(4) The dedication amounts in division (B)(3) above may be amended from time to time by Council resolution or ordinance.
(5) The city may require the dedication of additional water rights or water shares if the city determines that the proposed development will consume more water than is required herein.
(C) City acceptance of a dedication.
(1) Subject to the provisions of this section, the city shall accept a dedication of water entitlement that meets the requirements of this subchapter.
(2) Prior to accepting a dedication, the city may require that the applicant:
(a) Reimburse the city’s costs and expenses for any administrative or judicial action undertaken to obtain final, non-appealable State Engineer approval of the water entitlement; and
(b) 1. Purchase a policy of water title insurance on behalf of the city:
a. Naming the city as the insured party;
b. In an amount consistent with the value of the water entitlement, as determined by the city; and
c. From an insurance provider acceptable to the city.
2. The city may reject a dedication if it finds that the water rights or water shares to be conveyed or transferred thereby are:
a. Defective with respect to legal title;
b. Subject to forfeiture or quantity impairment due to the lack of beneficial use;
c. Insufficient in annual quantity, priority, reliability or flow;
d. Unsuitable for municipal use;
e. Not reasonably likely to be approved by the State Engineer for municipal use within the city’s service area pursuant to division (B) above; or
f. Defective in any respect that renders the city’s delivery of the water to the proposed development impossible or impractical; or
g. For water shares that the issuing entity refuses to transfer the water shares to the city or to consent to the filing of such applications with the State Engineer as the city may deem necessary.
3. The final, non-appealable rejection of an application filed under this subchapter shall render the water rights or water shares ineligible for dedication to the city.
4. A final, non-appealable order of the State Engineer reducing the diversion or depletion amount of a water entitlement shall result in a corresponding reduction in the amount of the water dedication. However, such a reduction shall not reduce the required amount of the water entitlement.
5. Any reduction in the amount or volume of water either, represented by stock in a mutual irrigation company or a water right, moved to a city point of diversion for municipal use by the city, shall result in a corresponding reduction in the amount of the water dedication; however, such reduction shall not reduce the required amount of the water entitlement.
6. The city’s rejection of a proposed dedication shall not constitute a waiver of nor relieve an applicant from its obligation to comply with the requirements of this subchapter as a condition of development approval.
(D) Conveyance or transfer of water entitlement to the city. Upon the city’s acceptance of a dedication, an applicant shall convey to the city, without cost, the water entitlement delineated therein.
(1) (a) An applicant shall convey water rights by warranty deed and water shares by transferring ownership thereof through a certificate from by the issuing entity, or its successor, showing the city as the owner of the water shares.
(b) In lieu of either of these methods of conveyance, an applicant may convey the water entitlement by any other appropriate instrument of conveyance approved by the city.
(2) The water rights or water shares shall be conveyed free and clear of any lien, encumbrance or adverse claim, except as the city may expressly approve and accept in writing.
(3) The applicant shall pay all fees and costs associated with the conveyance or transfer.
(4) The applicant shall convey the water entitlement to the city before:
(a) A building permit may be issued; or
(b) A final plat may be signed or recorded.
(Ord. 2022-002, passed 3-8-2022)