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12/07/2010 ORIGINAL RESOLUTION NO. 15067 RESOLUTION APPROVING TIER 2 DROUGHT IMPLEMENTATION PLAN PURSUANT TO SECTION 3.11.0 OF THE SAN FRANCISCO WATER SUPPLY AGREEMENT WHEREAS, the City of Redwood City (the "City ") is one of 26 agencies in San Mateo, Santa Clara and Alameda Counties, collectively referred to as "Wholesale Customers," which purchase water from the City and County of San Francisco ( "San Francisco ") pursuant to a Water Supply Agreement entered into in 2009 ( "Agreement "); and WHEREAS, Section 3.11 of the Agreement addresses times when insufficient water is available in the San Francisco Regional Water System to meet the full demands of all users. Section 3.11.0 provides that during periods of water shortage caused by drought, the San Francisco Public Utilities Commission ( SFPUC) will allocate available water between its retail customers and the Wholesale Customers collectively, in accordance with a schedule contained in the Water Shortage Allocation Plan set forth in Attachment H to the Agreement (Tier 1 Plan); and WHEREAS, Section 3.11.0 authorizes the Wholesale Customers to adopt a Drought Allocation Plan, including a methodology for allocating the water which is collectively available to the 26 Wholesale Customers among each individual Wholesale Customer ( "Tier 2 Plan "). It also commits the SFPUC to honor allocations of water unanimously agreed to by all Wholesale Customers or, if unanimous agreement cannot be achieved, water allocations that have been adopted by the Board of Directors of the Bay Area Water Supply and Conservation Agency ( "BAWSCA "). The Agreement also provides that the SFPUC 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; and WHEREAS, commencing in October 2009, representatives appointed by the managers of each of the Wholesale Customers have been meeting to develop a set of principles to serve as guidelines for an equitable allocation methodology, as well as formulas and procedures, to implement those principles. These discussions, and supporting technical analyses, have been conducted with the assistance of BAWSCA staff; and WHEREAS, the Tier 2 Plan, attached to this resolution as Exhibit A, has been endorsed by all of the Wholesale Customer representatives who participated in the formulation process and they have committed to recommend that it be formally adopted by the governing body of their respective agencies; and ATTY /RESO /RESO.2071 #15067 112410 1 MUFF # 802