Common use of Water Availability Clause in Contracts

Water Availability. CITY and OWNER agree that the CITY’s has adequate water availability to serve: (1) existing residents and businesses that are already connected to CITY’s water system; (2) anticipated residents and businesses through build-out of the City’s existing General Plan; and (3) the Project. CITY and OWNER acknowledge and agree that reserving this capacity for the Project, such that water connections shall be available at such time as they are needed as the Project builds out, is a material element of the consideration provided by CITY to OWNER in exchange for the benefits provided to CITY under this Agreement. The Parties recognize the availability of sufficient water availability may be affected by environmental, regulatory or operational constraints that are not within the CITY’s discretion. To the extent the availability of water is within the CITY’s discretion (e.g., whether to extend water service to areas not currently within the CITY’s service area), CITY shall not approve providing such capacity to areas currently outside the CITY’s service area if this approval would prevent or delay the ability of the CITY to provide water connections to the Project as the Project requires water connections. This provision shall not affect the CITY’s ability to provide water service within its service boundaries or within the existing CITY boundaries as they exist on the effective date of this Agreement, and as to such connections, the Parties requesting water service shall be connected on a first come first served basis. OWNER shall pay the applicable connection charge in effect pursuant to City-wide ordinance at the time of building permit issuance. OWNER acknowledges that connection charges may increase substantially over time.