A. As a condition for the approval of the subdivision of real property pursuant to Chapters 18.11, 18.17, and 18.26 of this code, utilizing city provided water for residential consumption, irrigation, fire suppression, or commercial application, any property owner or developer of such property shall assign and transfer to the city any perfected application, certificate, permit or right of withdrawal of ground or surface waters, or such other water rights as may be appurtenant to such property in such quantities as is sufficient to serve the real property. This assignment and transfer shall not apply to individual service wells as are exempt from certification under the laws of the State of Washington, or properties which receive sufficient irrigation water services provided under a perfected water right from a city approved irrigation water service provider.

B. In the event, there are no water rights represented either by perfected application, certificate, permit or right for withdrawal appurtenant to the real property benefitted in subsection (A) above, the property owner or developer shall pay to the city, in lieu thereof, a water rights acquisition fee as established by the city council from time to time by resolution. Such fee may be waived by implementation of a soil additive program, approved by the Director of Public Works, that provides for the retention of 30% or more of the applied irrigation water.