SAINT HELENA, Calif. — Public Works staff told the City Council on Jan. 13 they expect to present a draft water‑neutrality policy update for legal review in February and to return to council in May 2026 with a final policy and fee recommendations following a planned nexus (impact‑fee) study in fiscal year 2027.

Eric Janzen, assistant director of public works, said the city’s existing ordinance (enacted by Ordinance 2016‑13) and subsequent guidelines have not been updated since adoption and that residents, developers and some commissioners have asked for clarification on calculation methods and landscape use estimates. Janzen described an interim clarification that will refine calculation guidelines for applicants while a separate nexus study determines specific fee schedules.

During public forum, resident Gary Rose argued the current in‑lieu approach does not “create water.” Rose recommended changing how in‑lieu fees are calculated and used: rather than solely paying rebates or administrative costs, the fee should fund targeted distribution‑system leak detection and repairs to reduce system losses. He identified an account (56123‑300000) with a recorded balance of $13,257.41 and urged the city to dedicate collected funds to infrastructure repairs rather than treating fees as a general payment.

Janzen said the municipal code currently supports a retrofit/rebate program — historically focused on toilet replacements — but that many small retrofit opportunities in town have already been exhausted, especially for larger developments that need dozens of retrofits. That scarcity is one reason staff put forward a nexus study to produce a defensible per‑unit fee that can be applied where retrofit opportunities cannot be identified.

Council members asked whether an interim or temporary fee might be put in place sooner. Janzen said the existing muni code calculation method remains in effect until the nexus study is complete; the nexus study is intended to allow a defensible, legally defensible fee schedule rather than an ad hoc amount. The cost of the nexus study has not been set; staff will return with scope and budget options.

What’s next: Public Works will complete an internal draft, send it to the city attorney in February, present to advisory committees in March and April, and bring a final draft to council in May 2026. Staff will also present options for how in‑lieu fees could be spent, including a rebate program and other codified uses, during the update.