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EXHIBIT B 1 . Conversion to the recycled water system is determined not economical for the existing customer and/or existing development because of its distance from available or planned recycled water sources. Recycled water service that is not economical, as used herein, shall be reasonably determined by the Director of Operations and Water Utilities or designee. 2. Irrigation demands are minor compared to overall water demands. 3. Inadequate recycled water supply is available to service the demand. 4. Conversion to recycled water service at the existing customer and/or existing development's property is determined to pose a potential threat to public health, safety and welfare, and/or the protection of the environment. 5. The current or planned use(s) of water serviced through the existing potable irrigation meter is/are not among the list of allowable uses as specified under state law, and/or are not included in the permitted uses as issued within the city's recycled water distribution permit from the State Water Quality Control Board. B. Nothing in this section shall be construed to prohibit any existing customer or existing development with dedicated irrigation meters from voluntarily applying for recycled water service. The city shall have the right to deny such application if the City Engineer and/or Director of Operations and Water Utilities, or designee determines that inadequate recycled water supply is available to serve the demand. 14.20.051 Failure to comply. A. Upon the request of the city's Recycled Water Program to begin the process of water service conversion to recycled water, existing customers have 30 days to submit a Recycled Water Use Permit Application in accordance with Chapter 14.06 and the city's Recycled Water Use Guidelines, or provide an exemption request as outlined in Section 14.20.050. If additional time is required to prepare and submit the Recycled Water Use Permit Application, an existing customer may request an extension from the Recycled Water Program with a mutually acceptable end date. B. Failure to comply with the terms of this chapter may result in the following: a. A violation of the city's water waste prohibition as defined in Section 14.04.060.G.7, which is subject to an administrative citation (Chapter 1 .24) and/or discontinuance of potable water service of the irrigation meter(s) within the recycled water service area for the wasteful use of potable water to irrigate landscaping as specified in Section 14.04.130.B. b. Discontinuance of potable water service without notice to dedicated landscape meters during activated stages of water shortage as specified in Chapter 9.30, in order to protect potable water supply for public health and safety, regardless of any previously approved exemption granted in accordance with Section 14.20.050. 14.20.060 Appeals.