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-18- <br />City has covenanted to take all actions that are reasonably necessary to continue the Authority’s <br />existence until the Bonds have been paid in full. <br /> <br /> <br />THE ENTERPRISE <br /> <br />General Background <br /> <br />The City is located in the southern portion of the County and, through the Enterprise, <br />supplies water to the City, unincorporated areas of the County and portions of the City of San <br />Carlos and the Town of Woodside. Operation and maintenance of the Enterprise is financed <br />through the City’s Water Enterprise Fund. The City is one of 27 Wholesale Customers in San <br />Mateo, Santa Clara, and Alameda Counties which purchase water from the SFPUC. In 2009, the <br />SFPUC and the Wholesale Customers entered into the WSA which replaced a prior agreement <br />entered into in 1984. The WSA has a 25-year term (with provisions for two conditional five-year <br />extensions). The City currently receives all of its potable water from the Regional Water System. <br /> <br />Management <br /> <br />The maintenance and operation of the Enterprise is the responsibility of the City’s Public <br />Works Services Department (“Public Works”). The Public Works Director has responsibility for <br />the Department and one of the three superintendents reporting to him has the responsibility of <br />maintaining and operating the Enterprise. The Water Utilities Section is staffed by a Public <br />Works Utility Superintendent along with two field supervisors, who manage the operations and <br />maintenance of the water system including transmission, storage, distribution, meter reading, <br />regulatory compliance sampling and analyses, cross-connection control, long-range planning <br />and asset management/mapping. The Section has 31.54 full time equivalent (FTE) employees <br />involved in the Enterprise. The Engineering and Construction Division of the Community <br />Development Department is responsible for the design and construction of water system <br />projects, primarily system replacement, and regulatory compliance improvements. The <br />Revenue Services Division of the Administrative Services Department is responsible for all City <br />utility billing and collections, as well as processing connection and facilities fees. <br /> <br />Service Area <br /> <br />The Enterprise serves most of the corporate area of the City and portions outside the <br />corporate limits, including Cañada College, portions of the City of San Carlos and the Town of <br />Woodside, and the unincorporated Emerald Hills area of the County. The Enterprise’s service <br />area presently covers approximately 14 square miles. Service is provided to areas between <br />Highways 280 and 101, and between Whipple Avenue and Marsh Road in the area east of <br />Highway 101, and in the Redwood Shores development. <br /> <br />As of June 30, 2016, the Enterprise served domestic water to approximately 87,023 <br />people through 23,717 active service connections. Residential connections account for 89 percent <br />of the total service connections. Commercial connections account for 8 percent. The remaining <br />three percent are mostly fire connections, and some municipal and institutional connections. <br />The Enterprise’s service area is substantially built out, with a relatively stable customer base. <br />See “Customer Base” below. <br /> <br />Water Supply and Demand <br /> <br />Background. The water supply delivered to the 27 Wholesale Customers (including the <br />City) by the SFPUC originates from two primary sources (i) the Tuolumne River through the <br />Hetch Hetchy Reservoir and (ii) local runoff into Bay Area reservoirs in the Alameda and <br />8.C. - Page 43