AgdaPkt 2020-11-23 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 47 of 51 widespread temporary closings of businesses, universities and schools. In addition, financial markets in the United States and globally have been volatile, with significant price fluctuation attributed to coronavirus concerns. Potential impacts to the Participating Members associated with the COVID-19 outbreak include, but are not limited to, increasing costs and challenges to the public health system in and around the Participating Members' service areas, cancellations of public events and disruption of the regional and local economy with corresponding decreases in the Members' wastewater system revenues. Further, an economic downturn affecting the Participating Members' service area could have an adverse impact on development activities within the District's service area, which would have a corresponding adverse effect on the receipt of connection fees by the Participating Members. On April 2, 2020, Governor Newsom signed Executive Order N-42-20, which, among other things, (i) suspends the authority of water systems from suspending water service for non-payment, (ii) orders that residential service to occupied residences that has been discontinued for nonpayment since March 4, 2020 be restored and (iii) provides that the SWRCB will identify best practices, guidelines, or both to be implemented during the COVID-19 emergency (a) to address non-payment or reduced payments, (b) to promote and to ensure continuity of service by water systems and wastewater systems, and (c) to provide measures such as the sharing of supplies, equipment and staffing to relieve water systems under financial distress. Redwood City includes the charges for water and sewer services on a combined utility bill to each of its customers. As a result, in addition to water service, the Redwood City is not suspending sewer service for non-payment. San Carlos and West Bay's sewer utility fees are collected on property tax bills sent by San Mateo County. See Appendices A through C hereto for a discussion on actions that the Participating Members have taken in response to COVID-19 and the Governor's orders with respect thereto. The COVID-19 outbreak is ongoing, and the ultimate geographic spread of the virus, the duration and severity of the outbreak and the economic and other actions that may be taken by governmental authorities to contain the outbreak or to treat its impact are uncertain. The ultimate impact of COVID-19 on the operations and finances of the Participating Members is unknown and there can be no assurance that the outbreak of COVID-19 will not affect the Participating Members' ability to pay their allocated shares of debt service on the 2020 Bonds under their Financing Agreements. Natural Disasters General. The Participating Members, like all northern California communities, are subject to unpredictable seismic activity, fires, floods, or other natural disasters. A severe natural disaster, such as an earthquake, fire, or flood, could result in substantial damage to each of the Participating Members, including their wastewater systems. Such an event—which could increase the costs of operating and maintaining the Participating Members' wastewater systems and could reduce revenues as a result of widespread damage—could adversely impact the Participating Members' ability to pay their SBSA Bond Payment or Authority Payments. Seismic Activity. Each of the Participating Members could experience ground shaking, ground failure, landslides or fault creep related to major faults in the area. The San Andreas, fault, located approximately two miles west of the Participating Members, and the Hayward fault, located approximately 14 miles east of the Participating Members, are both active. Historic earthquakes have caused strong ground shaking and damage in the San Francisco Bay Area, the most recent being the magnitude 6.9 Loma Prieta earthquake on the San Andreas Fault in October 1989. The epicenter was ATTY/AGR/2020.264/PRELIMINARY OFFICIAL STATEMENT — WASTEWATER REV: 11-18-2020 EI Page 25 of 29 713