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5 <br />The City and the Enterprise <br />The City is located in southern San Mateo County (the “County”) and, through the <br />Enterprise, supplies water to the City, unincorporated areas of the County, and portions of the <br />City of San Carlos and the Town of Woodside. Operation and maintenance of the Enterprise is <br />financed through the Water Enterprise Fund. The City is one of 27 wholesale customers (the <br />“Wholesale Customers”) in San Mateo, Santa Clara, and Alameda Counties that are members <br />of the Bay Area Water Supply and Conservation Agency (“BAWSCA”) which purchase water from <br />the City and County of San Francisco Public Utilities Commission (the “SFPUC”) which owns and <br />operates a municipal water supply, storage and distribution system. The SFPUC water enterprise <br />consists of over 389 miles of pipeline, over 74 miles of tunnels, 11 reservoirs, 13 groundwater <br />wells, five pump stations, and three water treatment plants located outside of the City and County <br />of San Francisco (the “Regional Water System”) and over 1,235 miles of pipeline, 11 reservoirs, <br />six groundwater wells, eight storage tanks, 24 pump stations, eight hydropneumatic stations and <br />17 chlorination stations located inside the City and County of San Francisco. In 2009, the SFPUC <br />and the Wholesale Customers entered into a Water Supply Agreement (which replaced a prior <br />agreement entered into in 1984), which agreement was most recently amended and restated in <br />2021 (the “WSA”). The WSA expires on June 30, 2034, subject to provisions for two conditional <br />five-year extensions. The City currently receives all of its potable water from the Regional Water <br />System. See “THE ENTERPRISE” and APPENDIX A – GENERAL INFORMATION ABOUT THE <br />CITY OF REDWOOD CITY AND SAN MATEO COUNTY. <br />Security for the Bonds <br />The Bonds are special obligations of the Authority payable from the revenues (the <br />“Revenues”) pledged under the Indenture, consisting primarily of installment payments (the “2024 <br />Installment Payments”) to be made by the City under an Installment Purchase Contract, dated <br />as of September 1, 2024 (the “2024 Installment Purchase Contract”), by and between the <br />Authority and the City, as the purchase price for certain improvements to the City’s municipal <br />water enterprise (the “Enterprise”). The 2024 Installment Payments are secured by a pledge of <br />and lien on the Net Revenues of the Enterprise. <br />NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE THE 2024 <br />INSTALLMENT PAYMENTS CONSTITUTES A DEBT OR A LIABILITY OF THE AUTHORITY, <br />THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN <br />THE MEANING OF ANY CONSTITUTIONAL LIMITATION ON INDEBTEDNESS, OR A <br />PLEDGE OF THE FULL FAITH AND CREDIT OF THE CITY. THE BONDS ARE SECURED <br />SOLELY BY THE PLEDGE OF REVENUES AND CERTAIN FUNDS HELD UNDER THE <br />INDENTURE. THE BONDS ARE NOT SECURED BY A PLEDGE OF THE TAXING POWER <br />OF THE CITY. THE AUTHORITY HAS NO TAXING POWER. <br />Outstanding Enterprise Debt <br />The City’s pledge of Net Revenues as security for its obligation to make the 2024 <br />Installment Payments under the 2024 Installment Purchase Contract is on a parity with its pledge <br />of Net Revenues as security for (i) its obligation to make installment payments (the “2015 <br />Installment Payments”) under an Installment Purchase Contract (the “2015 Installment <br />Purchase Contract”) entered into in connection with the issuance of the Authority’s Water <br />Revenue Bonds, Series 2015 (the “2015 Bonds”), and (ii) its obligation to make installment <br />payments (the “2017 Installment Payments”) under an Installment Purchase Contract (the “2017 <br />8.A. - Page 19 of 255 <br />647