13.10.010 Legislative findings.

The city council of the city finds and declares the following:

(A) Under state law, the city may provide water and sewer connections and service to residences and businesses within its corporate boundaries before committing to provide water and sewer connections and services to developments outside city limits;

(B) The city has approved and may have applications in the future for new developments for residential, commercial and industrial uses that will require water and sewer connections and service;

(C) Applications for the annexation of various properties to the city and the American Canyon fire protection district, a subsidiary district of the city (district) are currently pending before the Napa County local agency formation commission (LAFCO), and other applications may be submitted in the future from time to time;

(D) Applications for new developments that will require large amounts of water which will be located in unincorporated county territory are pending before the county of Napa (county) and to date, applications for the annexation of these developments into the city have not been filed with LAFCO;

(E) The city's primary obligation as a local government is to provide water and sewer connections and service within its boundaries or to those developments where applications for annexation to the city are pending before LAFCO, rather than to developments in unincorporated county territory;

(F) The city is committed to the prudent management of its resources and to its economic growth and development;

(G) Notwithstanding the foregoing, consistent with the City-County Agreement, the city will provide water service to all outside customers and other outside customers upon request under all of the same terms and conditions under which the city provides water service to city customers, and the city will not impose any term or condition on any water service to any outside customer and other outside customers that is different from the terms and conditions that the city imposes on city customers, except that the city may continue to impose higher water rates on outside customers and other outside customers consistent with Hansen v. City of San Buenaventura (1986) 42 Cal.3d 1172;

(H) The city shall continue to provide water service to existing outside customers and other outside customers and, upon request, the city shall provide new or increased water service to all outside customers and other outside customers under the same terms and conditions under which the city provides water service to city customers, as provided in subsection G of this section. The city shall provide all new city customers, all new outside customers and other outside customers with water service under the conditions set forth in subsection I of this section;

(I) Water Conditions to be Imposed on all Parcels (City Customers, Outside Customers and Other Outside Customers) for which New Water Service is Requested.

The city may impose the conditions listed below on new water services for outside customers and other outside customers by including these conditions in the "will-serve" letters that the city provides to such customers, but only if the city also imposes the same conditions on all new water services for parcels with similar uses within the city's limits. Napa County shall include these same conditions in all new land use development permits for parcels within the Airport Industrial Area Specific Plan area.

(1) City Capacity Fees and Conditions of Approval for Water Service. Capacity fees charged for parcels within the city's water service area shall be established by the city and will be periodically reviewed and updated. Capacity fees (also known as connection fees) will be uniform throughout the water service area, regardless of whether the parcel to which the fee applies is inside or outside the city's limits. The capacity fee and any conditions on new water service will be determined based on the Water Supply Report, which shall contain the analysis described in the City-County Agreement Part II.C. of Exhibit F, and which will be consistent with the city's Zero Water Footprint Policy, adopted by the city on October 23, 2007, or as may be subsequently amended.

(2) Cost of Water Service. The cost of new water service shall be imposed through the capacity fees in the city's Ordinance 2007-09 or through new capacity fees approved by Napa County and enacted in a new city ordinance. However, if the Water Supply Report finds, consistent with the city's Zero Water Footprint Policy or as may be subsequently amended (see City-County Agreement Exhibit F), that the city will have to obtain additional water supplies to meet "dry year" shortfalls, then the cost of water to meet such "dry year" shortfalls will be the sole responsibility of the applicant. In determining whether or not such "dry year" shortfalls will occur, the city shall include in the base supplies available to the city during "dry years" the new water supplies that have been or will be included in the calculations used to set the city's capacity fees and water rates. The city will conclude that "dry year" shortfalls will occur only if such base supplies will not be adequate to meet anticipated "dry year" demands. The city may not impose any costs on the applicant under this section to reimburse the city for any capital or operating costs that have been or will be included in the calculations used to set the city's capacity fees or water rates. The city may impose the additional costs described in the preceding sentence on outside customers and other outside customers only if the city also imposes such additional costs uniformly on city customers.

(3) Maximum Allowable Water Use. Water received from the city for use on parcels within the Airport Industrial Area Specific Plan area and on parcels with similar uses within the city's limits and other outside customers with similar uses shall be limited to an average of six hundred fifty gallons of water per day per acre (measured monthly), and applicants for new or increased city water service for all such parcels shall be required to demonstrate to the city while the city is preparing the Water Supply Report for the applicant the maximum extent to which the applicant can further reduce its water consumption by applying the following best management practices:

(a) No Flow or Low Flow Fixtures. These applicants shall be required to install no flow or low flow water fixtures, and to implement other reasonable water conservation measures that are described in the city's Water Conservation Guidelines adopted in the city's Resolution No. 2008-08 or in new city water conservation guidelines approved by Napa County and adopted in a new city ordinance or resolution.

(b) Drought Tolerant Landscape and Irrigation with Recycled Water. These applicants shall be required to use only drought tolerant landscaping, and they may only irrigate landscaped areas with recycled water, when it is available.

(c) Purple Pipe. These applicants shall be required to dual plumb their buildings and install "purple pipe" in all landscape areas in anticipation of the availability of recycled water and shall use the recycled water when available.

(d) These applicants shall follow the water conservation methods that are described in the Water Conservation Guidelines adopted in the city's Resolution No. 2008-08 or in new city water conservation guidelines approved by Napa County and adopted in a new city ordinance or resolution.

The city may apply the provisions of this paragraph to applicants for new or increased city water service for parcels within the Airport Industrial Area Specific Plan area only if the city also uniformly applies these provisions to all applicants for new or increased city water service for parcels with similar uses within the city's limits and other outside customers.

(4) Water Offsets. Applicants for city water service for parcels within the Airport Industrial Area Specific Plan area and for parcels with similar uses within the city's limits and other outside customers with parcels with similar uses that wish to use more than an average of six hundred fifty gallons of water per day per acre (measured monthly) shall offset the proposed water use over six hundred fifty gallons per day per acre (measured monthly) through the use of one or more options that are made available by the city to the applicants. These options include, but are not limited to, retrofitting of existing residences with low flow fixtures, purchase of otherwise developable land as permanent open space, or acquisition of other water supply resources as provided for by a water supply analysis that follows the Zero Water Footprint Methodology, or as may be subsequently amended, described in Exhibit F to the City-County Agreement. The city shall make all such options available uniformly to applicant for city water service for parcels within the Airport Industrial Area Specific Plan area and for parcels with similar uses within the city's limits and other outside customers with parcels with similar uses, and that seek such offsets.

(5) Drought Restrictions. To the extent permitted by law, the city may curtail or ration the use of water provided by the city below the limit of six hundred fifty gallons per day per acre (measured monthly) in dry years through the imposition of drought restrictions that are uniformly applied throughout the city's water service area.

(J) For purposes of this Chapter 13, "city customers" shall mean all persons and entities presently receiving water service from the city, and all persons and entities that are requesting or in the future request new or increased water service from the city, for parcels that are located within city's incorporated limits.

(K) For purposes of this Chapter 13, "outside customers" shall mean all persons and entities presently receiving water service from the city, and all persons and entities that are requesting or in the future request new or increased water service from the city for parcels that are located outside the city's limits but within the Airport Industrial Area Specific Plan boundaries.

(L) For purposes of this Chapter 13, "other outside customers" shall mean all persons and entities presently receiving water service from the city, and all persons and entities that are requesting or in the future request new or increased water service from the city for parcels that are located outside the city's limits but not within the Airport Industrial Area Specific Plan boundaries.