AgdaPkt 2005-01-24 - Laserfiche WebLink

Browse Search

REDWOOD CITY - WATER FINANCING PLAN Background Redwood City currently faces substantial water reliability and supply deficiencies. The City relies on a single source of potable water supply: the San Francisco Public Utility Commission's (SFPUC) Retch Retchy regional water system. The City currently uses about 1,100 acre-feet of water in excess of its annual SFPU C contractual supply assurance of 12,243 acre-feet. Based on current consumption levels, a 20% SFPU C systemwide drought would result in a 30% reduction in the City's supply assurance. Without a reliable, supplemental source of supply, the City will: a. remain at high risk for not meeting its existing customers' water needs during periods of drought, b. remain vulnerable to future rate surcharges on water use in excess of the City's supply assurance when SFPUC system demands reach full capacity. c. have insufficient water supply to meet future demands of growth, and d. remain vulnerable to severe financial impacts due to drought In August 2002, Kennedy/Jenks Consultants submitted the "Water Recycling Feasibility Study for Redwood City". The study evaluated options for reducing the City's reliance on SFPUC water and concluded that the only viable, and most cost-effective way to meet the City's water reliability and supply deficiencies is via construction of a recycled water system coupled with an effective water conservation program. Since 2002, the recycled water proj ect has undergone a number of revisions. In late 2003, the City Council appointed a 20-member Community Task Force on Recycled Water (the "Task Force") to evaluate options and recommend potential solutions to the City's water supply deficit. In the spring of 2004, after five months of meetings and evaluation, the Task Force unanimously recommended implementation of a revised recycled water project coupled with an aggressive conservation program. The City is currently in the process of implementing the Task Force recommendations. Purpose & Scope Bartle Wells Associates was initially retained as a subcontractor to Kennedy/Jenks to develop a financing plan to fund the recycled water proj ect. In December 2002, Bartle Wells Associates submitted the "Redwood City Water Financing Plan" detailing findings and recommendations. The financing plan was updated in February 2003. This report presents a 2004 Water Financing Plan Update. The update accounts for changes in the recycled water project, new SFPUC wholesale rate projections, updated financial projections, and many other revised assumptions. The objectives of our analysis include: . Evaluate financing alternatives and recommend a financing strategy to fund the recycled water proj ect while maintaining the financial health of the water enterprise Develop cash flow projections to evaluate the water enterprise's financial position over the next 1 0 years . Water Financing Plan 1 December 2004