Agdapkt 2010-12-06 clsd and regular

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� 6.3B Page 2 • Avoiding preventable, adverse economic impacts; • Avoiding reallocation of water supply assets and investments among agencies � without mutual consent and compensation; and • Recognizing inherent differences in land use and climate. The Tier 2 Plan will establish an allocation formula that will determine how the available water from the RWS will be allocated among the individual Wholesafe Customers in system-wide shortages up to 20%. In general, the allocation formula can be described as follows: • 33.3% weight applied to individual agency's Individual Supply Guarantee (with slight variations for Hayward, San Jose, and Santa Clara who do not have an Individual Supply Guarantee) • 66.6% weight applied to a Base/Seasona( calculation using 3 year average monthly production values for all supply sources • 10% minimum cutback and maximum cutback equal to no more than the average cutback plus 20% • Guaranteed sufficient supply of water to East Palo Alto to meet health and safety needs for its community On August 25, 2010, the Appointed Water Management Representatives unanimously agreed to recommend adoption of the Tier 2 Plan to each of their respective governing bodies (Justin Ezell, Public Works Superintendent, was Redwood City's appointed representative). Agency staff of all the Wholesale Customers have committed to recommend that the Tier 2 Plan be formally adopted by the governing body of their respective agencies. This Plan, along with the Tier 1 Plan, establishes how the water I available to the Wholesale Customers will be allocated among themselves. I Each wholesale customer must adopt the Tier 2 Plan by resolution for inclusion into their respective 2010 Urban Water Management Plans (UWMP); the scheduled completion date for Redwaod City's 2010 UWMP is June 2011. If all Wholesale Customers have not adopted the Tier 2 Plan by June 30th of 2011, then all of the resolutions adopting the Tier 2 Plan will not take effect and will automatically expire. ALTERNATIVES Council can reject staff recommendation and not adopt the resolution; doing so will cause all of the Wholesale Customer resolutions adopting the Tier 2 Plan to not take effect and they will automatically expire. If all of the Wholesale Customers do not enact resolutions adopting the Tier 2 Plan, water allocations will be adopted by the Board of Directors of BAWSCA. The WSA also provides that the San Francisco Public Utilities Commission can allocate water supplies as necessary during a water shortage emergency if no agreed upon plan for water allocation has been adopted by the 26 Wholesale Customers or the BAWSCA Board of Directors.