Agda Pkt 2024.08.26 Regular Meeting

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23 City’s usage may be limited pursuant to the Water Shortage Allocation Plan (“WSAP”), approved as part of the WSA in July 2009. Per the WSA, the individual supply guarantee may also be reduced due to emergencies or other circumstances including repair and maintenance on the Regional Water System. Additionally, the City of Hayward does not have an individual supply guarantee, but is one of the cities subject to the 184 MGD Supply Assurance. If collectively all suburban purchasers subject to the 184 MGD supply exceed 184 MGD of use for three consecutive years, SFPUC may reduce the individual supply guarantee of the cities other than Hayward on a pro rata basis so that the combined entitlement and sustained use does not exceed 184 MGD. To the City’s knowledge, the 184 MGD supply aggregate limit has not been exceeded previously and is not expected to be exceeded for at least the term of the Bonds, although no assurances can be given regarding future supply and demand. In Fiscal Year 2022-23, the Regional Water System delivered an average of 7.25 MGD to the City, or approximately 8,118 acre feet for the Fiscal Year. The five-year average (2018-19 to 2022-23) delivery was 8.1 MGD, or 9,067 AFY. SFPUC Water System Improvement Program. The WSIP is an approximately $4.8 billion-dollar, multi-year capital improvement program undertaken by the SFPUC to upgrade the Regional Water System and the City of San Francisco’s in-city water distribution system to meet water quality requirements, improve seismic and delivery reliability, and meet water supply goals. The WSIP consists of 87 projects, including 35 located within the City of San Francisco and 53 regional projects. The portion of the projects located in the City of San Francisco were completed as of October 2020. In March 2022, the SFPUC approved revisions to the program, including a schedule extension to February 2027. The Regional Program includes projects that benefit both retail customers and wholesale customers, and includes a wide variety of improvements such as upgrades to and the addition of new treatment, transmission (pipelines, tunnels, pump stations), and storage (dams and reservoirs) facilities spread over seven counties. The Wholesale Customers pay a proportionate share of the costs of these projects pursuant to the terms of the WSA. SFPUC faces various challenges in the continued supply of imported water. A description of these challenges as well as a variety of other operating information with respect to SFPUC is included in certain disclosure documents prepared by SFPUC. SFPUC periodically prepares official statements and other disclosure documents in connection with its bonds and other obligations. SFPUC has also entered into certain continuing disclosure agreements pursuant to which SFPUC is contractually obligated for the benefit of owners of certain of its outstanding obligations to file certain annual reports, including audited financial statements and notice of certain events, pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”). Such official statements, other disclosure documents, annual reports and notices (collectively, the “SFPUC Information”) are filed with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (“EMMA”) at http://emma.msrb.org. The SFPUC Information is not incorporated herein by reference thereto, and the City makes no representation as to the accuracy or completeness of such information. SFPUC HAS NOT ENTERED INTO ANY CONTRACTUAL COMMITMENT WITH THE CITY, THE TRUSTEE OR THE OWNERS OF THE BONDS TO PROVIDE SFPUC INFORMATION TO THE CITY OR THE OWNERS OF THE BONDS. SFPUC HAS NOT REVIEWED THIS OFFICIAL STATEMENT AND HAS NOT MADE REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED OR INCORPORATED HEREIN, INCLUDING INFORMATION WITH REGARD TO SFPUC. SFPUC IS NOT CONTRACTUALLY 8.A. - Page 37 of 255 665