These are among the policy questions members of American Canyon's blue ribbon water committee are set to tackle over the next couple of weeks.

On Tuesday, the committee, a group that includes city officials, business representatives and residents, met to address policy matters on water.

The city relies primarily on water transported to its Jamieson Canyon water treatment plant from the Sacramento Delta via the North Bay Aqueduct, part of the State Water Project.

However, the state's water allocations have been uncertain at times, particularly during dry years.

"If they're running short on water, we're running short on water," Public Works Director Michael Throne told the committee Tuesday.

One alternative for new and expanding American Canyon businesses that need more water may be Vallejo water. The city has sold its water to American Canyon in the past. But that source is 9 percent more expensive than Jamieson Canyon water, according to a staff report to the City Council.

Another possibility is recycled water for non-residential use.

The city's recycled water program is slowly getting started thanks to a new 1 million-gallon storage tank built east of Newell Drive. But storage and other technical issues have so far limited the use of recycled water to a few city parks, streetscapes and a vineyard near Green Island Road.

Supervisor Keith Caldwell, a blue ribbon committee member, suggested the city work with Napa Sanitation District, an agency that sells recycled water.

After the meeting, Caldwell said that using more recycled water could free up potable water for residential use. "Use potable water for is what meant for — that's for human consumption," he said.

On Thursday, Michael Abramson, general manager of Napa Sanitation District, said his agency, which has invested $40 million in its recycled water program, already serves the Gateway Business Park near the Napa County Airport.

Currently, the area south of Fagan Creek, where many businesses are located, is outside the district's service area. Fagan Creek runs just north of American Canyon near the airport.

Yet Abramson is open to the idea of sending recycled water farther south.

"If (American Canyon officials) were agreeable, I'm sure we could work something out," Abramson said.

City officials want to take a new look at contracts for water between the city and customers inside and outside the city limits because their terms vary.

Special water contracts add up to 500 acre-feet of water that potentially could be sold for residential use, according to the city. An acre-foot of water is one acre filled with water one foot deep.

The committee formed two subcommittees — one to review contracts for water between the city and eight non-residential customers, including a water company city officials say receives water under no formal agreement with the city.

The other is to review the city's water policy designed to ensure that enough water remains available for existing customers. The policy, adopted in 2007, also ensures that water rates are not increased because a demand from a new or expanding customer.#

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• Water Supply & Demand Numbers