Management of Groundwater and Recycled Water: is Napa County in Good Hands?*

- There have been no discussions to date to renew the agreement between NSD and the City of Napa Water Department, expiring in 2017, requiring NSD to reimburse the city one year's revenue for every customer converted from city water to recycled water. Response - The City respectfully disagrees with these findings, and provides the following clarifications: (1) The agreement is between NSD and the City of Napa (and not the City of Napa Water Department). The Public Works Department, Water Division is responsible for administering the agreement on behalf of the City; (2) The agreement expires on August 4, 2018; (3) Reimbursement from NSD to the City for customers converting from City water is based on a formula to offset impacts on water rate revenue where infrastructure investments have already been made, and not necessarily one year's revenue; (4) the geographical scope of the existing agreement does not cover the entire City of Napa, but rather only those parcels toward the south of the City that were determined, at the time of the agreement, to be potentially served by recycled water during the term of the agreement. As noted below, staff from the City and NSD have been in discussions to expand the geographical reach of the agreement, which would also include an extended term of the agreement.