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7.A. - Page 39 <br /> Aside from recycled water obtained from the regional wastewater treatment plant, the City <br /> purchases 100% of its water supply from the SFPUC. Pursuant to a Water Supply Agreement dated <br /> July 2009 between San Francisco and its wholesale customers, Redwood City's Individual Supply <br /> Guarantee (ISG) is 10.93 million gallons per day (MGD) of treated potable water supply, equal to <br /> approximately 5,333,000 hcf per year. While the City's potable water demand was historically in <br /> excess of its supply guarantee, putting the City at risk of substantial penalties during water <br /> shortages, the City's demands have been below the supply assurance since 2008/09. <br /> The City's wholesale water supply is subject to limitation by a Water Shortage Allocation Plan <br /> which specifies how water will be allocated among the City and the other wholesale customers <br /> during a water shortage. The Tier 1 Plan describes how water is allocated between the City of San <br /> Francisco (to be delivered to its retail customers) and the wholesale customers collectively. The <br /> Tier 2 Plan, called the Drought Implementation Plan (DRIP), details how the wholesale customers' <br /> collective allocation is divided among the wholesale customers during a water supply shortage. <br /> The plan takes into consideration each agency's three-year average winter use and their <br /> respective SFPUC supply guarantees in order to determine each agency's allotment. BAWSCA <br /> manages the DRIP and developed a model to calculate allotments for each agency in the event <br /> that SFPUC declares a water-shortage. <br /> In the latest draft calculations for a mandatory system-wide 20% reduction in demand, Redwood <br /> City's allotment was estimated at 3,279,000 hcf. If the SFPUC declares a Tier 2 shortage, the actual <br /> amount of water available to the City and the other wholesale customers would be determined at <br /> that time based upon projected demands and the total amount of water available system-wide. <br /> B Water Utility Finances& Rates 12 <br /> W Water&Sewer Financial Plans&Rate Studies <br />