Laserfiche WebLink
Page 7 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />4. Recognize benefits of, and avoid disincentives for, water use efficiency and development of <br />alternative water supply projects. <br />Tier 2 Plan Allocation Formula <br />The updated Tier 2 Plan establishes a sequential allocation formula to determine how the available water <br />from the RWS will be allocated among the individual Wholesale Customers. The allocation formula can <br />generally be described as follows: <br />The Minimum and Maximum Cutback establish the upper and lower bounds for each Wholesale <br />Customer’s final allocation. The Minimum Cutback is equal to 1/3 of the Overall Average Wholesale <br />Customer Reduction, but no less than 5%. The Maximum Cutback is equal to 1.5 times the Overall <br />Average Wholesale Customer Reduction. <br />Each Wholesale Customer is allocated water on a residential per capita basis based on the State Indoor <br />Water Use Efficiency Standard and the portion of each Wholesale Customer’s water demand met by <br />the RWS. <br />Each Wholesale Customer is allocated water based on its estimated non-residential indoor use by <br />applying a cutback factor equal to half of the Overall Average Wholesale Customer Reduction to each <br />Wholesale Customer’s estimated non-residential indoor demand, also known as Base Period <br />purchase, from the RWS. <br />Each Wholesale Customer is allocated water based on its estimated seasonal purchases from the RWS. <br />Remaining water is allocated to bring each Wholesale Customer’s final allocation as close to its “Target <br />Allocation” as possible, while ensuring that each Wholesale Customer’s final allocation is between the <br />Minimum and Maximum Cutback bounds. The Target Allocation is based on a weighted share of (1) <br />the Wholesale Customer’s Base Period purchases from the RWS and (2) its ISG. <br />Tier 2 Plan Term <br />The term of the updated Tier 2 Plan is coordinated with the term of the WSA to avoid simultaneous <br />renegotiation of these related agreements. <br />FISCAL IMPACT <br />Fiscal impacts from these actions are difficult to determine. However, some changes such as the addition <br />of the Tier 1 Family Plan have the potential to reduce excess use charges the City might incur during <br />drought. Conversely, changes to the minimum purchase quantities to other Wholesale Customers may <br />lead to marginal increases to the cost of purchasing water from the RWS in the future, but it should be <br />noted these costs would be shared by all Wholesale Customers and San Francisco. <br />7.N. - Page 7 of 70 <br />291