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14 <br /> 3) Existing development would be deemed conforming with respect to watershed standards; and <br /> 4) If destroyed, existing structures could be replaced in their current location provided that there is no increase <br /> in impervious surface and no increase in any existing encroachment into buffers or setbacks. <br /> 5) Setbacks and buffers for development on pre-existing lots could be reduced if all of the following criteria were <br /> met: <br /> a) The septic system is sized for no more than four bedrooms; and <br /> b) septic area and repair can be accommodated on 20,000 square feet or less; and <br /> c) encroachment into setbacks is necessary in order to build on the lot; and <br /> d) the relative location of the well, septic system and structure maximizes the degree of watershed protection <br /> which can be obtained while allowing development of the lot; and <br /> e) the amount of encroachment is the minimum that can be obtained while meeting the above criteria.; and <br /> 0 there are no existing water quality problems caused by malfunctioning septic systems within 300 feet of <br /> the reservoir. <br /> 6) The requirement that the Environmental Management Commission (EMC) approve major exemptions, as <br /> required by the State mandate, is clarified. EMC approval of a variance is required only if reduction exceeds <br /> 10% of the State minimum. <br /> 4 <br />