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<br />8e <br />Page 38 <br /> <br />Enterprise wiH be able to continue to receive water deliveries in excess of its allocation under <br />the Master Water Sales Contract. Further, in the event that San Francisco declares a system <br />shortage, the Enterprise's water deliveries would be reduced based on its allocation under the <br />IWASP, and not on the Regional Water System's actual prior water deliveries to the Enterprise. <br />Based on the City's current water allocation and the IWSAP, a 20% water shortage in the <br />Regional Water System would reduce water deliveries to the Enterprise by 27.7%. See "RISK <br />FACTORS - Risks Relating to Water Supply." <br /> <br />Historical Wholesale Water Cost <br /> <br />The table below sets forth the history of wholesale water cost increases under the <br />Master Water Sales Contract since Fiscal Year 1998-99 and projected wholesale water cost <br />increases through Fiscal Year 2014-15. See Table 9 and Table 10 for historical and projected <br />water rate increases for the Enterprise. <br /> <br />Table 3 <br />Historical and Projected Wholesale Water Cost Change <br /> <br />Fiscal Year <br />1998-99 <br />1999-00 <br />2000-01 <br />2001-02 <br />2002-03 <br />2003-04 <br />2004-05 <br />2005-06 <br />2006-07 <br />2007 -08 <br />2008-09 <br />2009-1 0 <br />2010-11 <br />2011-12 <br />2012-13 <br />2013-14 <br />2014-15 <br /> <br />Wholesale Water <br />Rate Chanqes <br />(13.0)% <br />36.7 <br />4.9 <br />2.3 <br />0.0 <br />25.0 <br />2.7 <br />(9.7) <br />19.6 <br />3.3 <br />(2.4) <br />8.9 <br />30.6 <br />24.6 <br />28.4 <br />27.5 <br />3.4 <br /> <br />Cost Per <br />Acre Foot <br />$261 <br />357 <br />375 <br />383 <br />383 <br />479 <br />492 <br />444 <br />531 <br />549 <br />536 <br />584 <br />762 <br />950 <br />1,220 <br />1.555 <br />1.607 <br /> <br />Cost Per <br />CCF <br />$0.60 <br />0.82 <br />0.86 <br />0.88 <br />0.88 <br />1.10 <br />1.13 <br />1.02 <br />1.22 <br />1.26 <br />1.23 <br />1.34 <br />1.75 <br />2.18 <br />2.80 <br />3.57 <br />3.69 <br /> <br />Source: Bay Area Water Supply and Conservation Agency. <br /> <br />The Master Water Sales Contract contains a rate setting formula that allocates the cost <br />of operating the Regional Water System among San Francisco and the suburban water <br />purchasers based on their respective water deliveries. This formula, together with the actual <br />amount of water deliveries to the City, determines the amount that the City pays under the <br />Master Water Sales Contract. The City anticipates that its cost of acquiring water from San <br />Francisco will increase in the future as the SFPUC continues to implement its capital <br />improvement plan for the Regional Water System and the resulting costs of operating the <br />Regional Water System continue to increase. See "RISK FACTORS - Wholesale Water <br />Costs." <br /> <br />Water Conservation Program <br /> <br />In order to address the Enterprise's water supply concerns, the City has developed an <br />extensive water conservation program. This conservation program includes several of the Best <br />Management Practices developed by the California Urban Water Conservation Council <br /> <br />23 <br />