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Page 3 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />align with current water consumption trends, while protecting investment in the RWS. For the remainder <br />of 2023, the SFPUC, the Original Minimum Purchase Customers, and BAWSCA held multiple meetings to <br />identify amendments that would address challenges related to the Minimum Purchase Requirements. <br />Once the SFPUC and the Original Minimum Purchase Customers finalized their recommended <br />amendments to the Minimum Purchase Requirements, the Original Minimum Purchase Customers <br />presented the proposals to the broader Wholesale Customers’ group to secure their support. <br />Negotiations among the Wholesale Customers were concluded in Fall 2024. <br />In June 2024, the lead negotiators concluded negotiations on the updated Tier 2 Plan. The agency <br />representatives collectively agreed that they were ready to recommend the Tier 2 Plan to their governing <br />boards for adoption. <br />Tier 1 Plan Amendment <br />In Fall of 2024, all twenty-six Wholesale Customers and San Francisco negotiated an amendment to the <br />Tier 1 Plan in the WSA to incorporate a new “Tier 1 Family Plan,” whereby San Francisco may only apply <br />excess use charges to Wholesale Customers who exceed their individual shortage allocation when the <br />collective Wholesale Customer usage exceeds the Tier 1 allocation. <br />ANALYSIS <br />This report provides an overview of two important water supply reliability contract actions: <br />1. An amendment to the 2021 Amended and Restated Water Supply Agreement between the City <br />and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County <br />and Santa Clara County: This amendment addresses three key areas: <br />A. Minimum Purchase Requirements: Modifies Minimum Purchase requirements to align <br />with evolving water supply conditions. <br />B. Tier 1 Water Shortage Allocation Plan (Tier 1 Plan): Establishes a new method for <br />considering collective Wholesale Customer SFPUC purchases when determining how <br />excess use charges will be applied. <br />C. Updates: Revisions to address discrete issues that arose over the course of implementing <br />the WSA. <br />2. An updated Tier 2 Drought Response Implementation Plan (Tier 2 Plan): The Tier 2 Plan provides <br />the method for allocating water from the San Francisco Regional Water System (RWS) among the <br />Wholesale Customers during periods of shortage caused by drought. <br />1. Summary of WSA Amendments <br />A. Minimum Purchase Requirements <br />Existing Section 3.07 of the 2021 WSA provides that four Wholesale Customers (Alameda County Water <br />District and the Cities of Milpitas, Mountain View, and Sunnyvale, collectively, the “Original Minimum <br />7.N. - Page 3 of 70 <br />287