Mountain Regional Water Rules & Regulations Overview

Summary Key Section Changes Outlined Below 3.0 New Development Culinary Water Service Annexation Water Service Agreement Irrigation Water Services & Water System Title, Maintenance and Warranty Development Related (Impact) Fees Other 5.0 Wholesale Water Sales Sales to Non-District Entities (Weber Basin Regionalization, Olympic Park, High Valley) Transportation (Wheeling) of Entities Water (Park City) Emergency Service 7.0 Conservation Water conservation plans Irrigation schedules & restrictions Rainwater Harvesting Waste Water Reuse 2

3.1 New Development Culinary Water Service Steps for Development to Receive Water Service from MRW 1.Project Review Meeting Determine feasibility, impact, scope and water availability, and timing 2.Determine Preliminary Water Demand 3.MRW Issue “Willing-to-Serve Letter” Non-binding No impact or connection fees collected at that time 4.Annexation Requirements Conference to determine area and water demand Annexation Agreement Payment of annexation fees Administrative Fee Infrastructure Fee Annexation Vote Majority of all lot owners with % approval in agreement that meets or exceeds statutory % Approval Process District Management recommends to Control Board Control Board recommends to County Council Public hearings and review County Council adopt Resolution Value to District – In any instance the District acquires an existing water system, it shall consider the value of the assets to the District, and not the market value or system cost. Systems with deficiencies or in need of significant repairs, upgrades, and/or replacement are typically deemed to have a value of zero or less. 3

3.1 New Development Culinary Water Service Water Service Agreement Not a binding commitment for development approval by Summit County Inspection fee 3.0% of water infrastructure cost MRW must sign all plats and approve all Construction Standards, Specifications & Drawings Bond/Security required Easements provided at no cost Developer transfer system assets to the District at no cost District Warranties to operate and maintain system prudently to best of its ability at its cost Lot owner pay impact fee and/or provide prepayment letter prior to issuance of a binding “Commitment-of-Service Letter” to obtain building permit from Summit County Standby fee assessed on lots that can be serviced by District but not connected to the system; or as outlined in agreements Lot owner agrees to pay all other customer rates and fees as legally adopted and amended 4

3.2 Irrigation Water Service & 3.3 Water System Title, Maintenance and Warranty Additional Requirements for Irrigation Water Services 1.Residential un-metered secondary irrigation systems not allowed 2.Rate methodology now included in irrigation contracts Further Defined District vs Customer Maintenance and Repair District owns and provides OM&R for the entire water system at District cost Meter located near street or property line – District responsible up to and including meter Meter located in structure or next to structure – District responsible up to property line Customer responsible for leaks and to provide OM&R for service laterals Meter located near street or property line – Customer responsible after the meter Meter located in structure or next to structure – Customer responsible within property line District repairs when customer liable District may make emergency repairs to where customer is liable, at customers cost: Mitigate damage/prevent waste of water/prevent contamination of District water system Developer Warranty One (1) year from final acceptance by District 5

3.4 Development Related Fees Impact Fees Pursuant to Utah Impact Fees Act, UCA Title 11, Chapter 36a Approved by Control Board Imposed on new development utilizing District infrastructure and water supply Based upon project needs Includes only capital costs and related interest on debt payments Can only assess proportional share of cost for infrastructure serving new development Paid prior to issuance of binding Commitment-of-Service (Concurrency) Letter to obtain building permit Impact Fee has multiple components Water Rights Source Storage Distribution Developers / Owners may tender prepaid connections certificates in lieu of paying impact fees 6

3.5 through Ponds, Swimming Pools and other Water Features Designed and constructed to minimize water loss (lining required) Owner responsible to pay for water loss Backflow required and must be tested annually 3.6- Plans and Connection Approvals District must approve Comply with District and Utah Division of Drinking Water Standards 3.7- Standards, Specifications and Drawings Applies to new development and expanded water systems General Manager authorized to make changes in consultation with District Engineer 3.8- De-annexations UCA Title 17D prohibits if the District has outstanding debt or contractual obligation Alternate Water Service Provider Fee – a developer or lot owner who enters into a contractual commitment with the District must pay proportionate share of District debt if they choose to use another water provider 3.9- Line Extension Agreement Allows or requires future developer that extends an existing water line paid for by an earlier developer to reimburse earlier developer for capacity used by future development Applies only to first extension Maximum 5 year period Approved by Control Board 7

5.0 Wholesale Water and Operation Services to Entities Not In District Boundaries Wholesale Water Sales to Non-District Entities Weber Basin Regionalization, High Valley, Olympic Park, Snowmaking By Contract Approved by Control Board Rates typically lower Limited to surplus water and excess system capacity Bulk Take-or-Pay contracts Limited time period until water needed for District customers Fixed costs don’t increase due to sales Don’t use District distribution systems Don’t read meters Transportation of Entity’s Own Water (Includes Wheeling) Park City Fees and charges vary based upon unique factors outlined for each agreement Emergency Services District may assist other water companies within Summit County if the District has resources available 8

7.0 Water Conservation District Takes Water Conservation Seriously Wholesale Customers may be required to develop / implement water conservation plans Enhanced Irrigation for Major Developments New Non-residential Building or Structure “Water Conservation Report” Irrigation Schedules & Restrictions Customers should water no more than every other day if restrictions not in effect District may curtail outside watering or irrigation in case of drought or failure of sources Restrictions can be Voluntary Mandatory Violations Violation of submitted water conservation plan or other District regulations may result in penalties and surcharges Rainwater Harvesting Allowed if done in compliance with state law / Division of Water Rights requirements Waste Water Reuse District reserves right to reuse domestic waste water and defined in State Law 9