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<br />~/7 <br /> <br />Table A-1 <br />Redwood City Water Financing Plan <br />Policy Assumptions <br /> <br />Policy Assumptions <br /> <br />1 Redwood City is currently overdrafting its potable water supply assurance from SFPUC and <br />faces increasing reliability deficits, especially during drought years. <br /> <br />2 Redwood City has been able to purchase adequate supply from SFPUC to meet full demand, <br />including demand in excess of its supply assurance, due to the temporary availability of excess <br />SFPUC supply. This excess supply is temporarily available because other BAWSCA agencies <br />are not currently purchasing their full supply assurances. However, the excess supply is <br />projected to end as total BAWSCA water demands reach full SFPUC supply capacity of 184 <br />mgd in 2008-2010. <br /> <br />Recycling and related water conservation projects are needed to 1) resolve existing reliability <br />and supply deficiencies, 2) provide additional water supply to meet the needs of growth, 3) <br />minimize long-term financial penalties for overdrafting the City's supply assurance when excess <br />SFPUC supply is no longer available or during periods of drought. <br /> <br />Redwood City is implementing an aggressive conservation program to reduce potable water <br />demand. However, conservation measures alone will not be sufficient to solve the City's long- <br />term water supply and reliability deficits. <br /> <br />An evaluation of water supply alternatives conducted by Kennedy/Jenks Consultants, with <br />substantial City input, determined that the most reliable new source of supply that can be <br />implemented in a reasonable timeframe (by 2010) is recycled water. <br /> <br />Redwood City is implementing project Alternative 'TF' at a revised and refined estimated cost of <br />approximately $85 million over the period 2005 to 2015. The cost estimates for each <br />component of the project account for cost inflation to construction date and include contingency <br /> <br />The City is currently overdrafting its SFPUC supply assurance and has no available long-term <br />supply to meet the needs of growth. The recycled water project will reduce potable demand as <br />irrigation and industrial customers switch from potable to recycled water supply, and will free up <br />potable supply for new development. The City should adjust its Facilities Fees to ensure the <br />fees recover the cost of water supply capacity in recycled water system infrastructure. <br /> <br />Recycled water rates will be discounted and will not be subject to drought rate increases. The <br />Council considered the pricing policy for recycled water carefully, and in the context of the <br />adopted policy of no mandatory connection requirements, decided to ensure that sufficient <br />voluntary connections are achieved pursuant to approved project Alternative 'TF' (see Appendix <br />B). <br /> <br />3 <br /> <br />4 <br /> <br />5 <br /> <br />6 <br /> <br />7 <br /> <br />8 <br /> <br />9 Redwood City will implement a very proactive program to prepare sites and users for <br />successful long-term use of recycled water, in full compliance with all federal, state and city <br />safety regulations and policies. <br /> <br />10 A single family residential customer who completes a remodeling project may be required to <br />install a larger meter size due to fire service requirements, even if the customer's water <br />demand does not increase. Additional Facility Fees should be collected for actual increases in <br />water demand, but not for mandatory meter upsizing due to fire flow requirements. The City <br />anticipates adopting a policy to deal with this issue based on additional analysis. <br /> <br />BARTLE WELLS ASSOCIA TES <br />F:\Jobs\Redwood City\1921\ \Charts & Assumptions\Assumptions 1,1/17/2006,8:27 AM <br />