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Page 2 of 5 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Pipelines. The Bay Division Pipelines deliver high volumes of water to the Wholesale Customers, as well <br />as to San Francisco. These large regional transmission pipelines are not intended for small retail customer <br />connections for water service. The SFPUC, however, agreed to provide direct retail water service from the <br />Bay Division Pipelines to a number of residential properties in the decades following the pipelines’ <br />construction when the nearby retail water systems of the SFPUC’s Wholesale Customers (such as <br />Redwood City and Cal Water) were not yet developed or accessible to those properties. <br />Continuing to serve these residential customers directly creates operational challenges for the SFPUC, as <br />the customers rely exclusively on the Bay Division Pipelines for domestic and fire water service. Should <br />the SFPUC need to shut down the Bay Division Pipelines for standard maintenance and repair, or in <br />emergency situations, these customers have no backup water connection to serve their properties. <br />The WSA also includes a Water Shortage Allocation Plan that in times of drought or other shortage <br />emergencies outlines procedures to allocate water supply between San Francisco and the Wholesale <br />Customers. The plan provides an allocation or water budget for San Francisco and each Wholesale <br />Customer to follow during the shortage. Depending on the severity of the shortage San Francisco <br />determines if reductions in water use are voluntary or mandatory. In the event the shortage requires <br />mandatory reductions Wholesale Customers that exceed their allocation may receive excess water use <br />charges. <br />ANALYSIS <br />For several decades, the SFPUC has sought solutions to the operational challenges of serving its retail <br />customers in unincorporated San Mateo County. Since 2022, Redwood City, the SFPUC, and Cal Water <br />have had focused discussions and collaborated on a study to determine how to transfer the SFPUC’s 85 <br />customers to one of the more appropriate retail water systems in the area. <br />Twelve of the 85 customers are located in the Redwood City sphere of influence in and around Emerald <br />Hills, California, and are relatively easy to connect to Redwood City’s existing water distribution system. <br />Amongst those 12 customers 10 are located within Redwood City’s existing service area boundary as <br />revised in the First Amendment to the IWSC with San Francisco shown in Figure 1 below. <br />If approved the Second Amendment to the IWSC will include a small expansion to the City’s water service <br />area boundary to include 1945 Edgewood Road and 558 Canyon Road. The locations of these two <br />properties are circled in red in Figure 2 below which if approved will replace Exhibit A-1 with Exhibit A-2 <br />in the IWSC. <br />6.K. - Page 2 of 11 <br />369