AgdaPkt 2005-01-24 - Laserfiche WebLink

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$3.1 million for the costs of issuing the bonds (including $2.3 million for a debt service reserve fund). Water Supply Assurance - In its City Urban Water Management Plan (UWMP), the City Council has previously determined that the City has a relatively low level of water supply reliability. The City currently purchases all of its potable water supply from the San Francisco Public Utilities Commission (SFPUC) via the Hetch Hetchy regional water system. Demand for water has consistently exceeded assured supply of water from the SFPUC over the past six years, with excess demand ranging from a low of approximately 5% of assured supplies to a high of approximately 120/0. There are no adverse consequences to excess demand as long as Hetch Hetchy system supplies are sufficient for all SFPUC customers. However, in the event of a system-wide water shortage, water costs will increase significantly and the supply of water will be drastically reduced. Pursuant to the various agreements it has with the SFPUC, if the SFPUC declares a 100/0 water system shortage, the City will be required to reduce water use by 17.5%. This reduction would be accomplished through economic means by increasingly higher water use penalties that would be imposed on the City by the SFPUC as the City's water use exceeded its water allotment. It is expected that these penalties would be passed on to consumers in order to induce them to curb their water use. Moreover, in its UWMP the City has determined that the City's water reliability will deteriorate in future years. Total water demands on the Hetch Hetchy water system are expected to grow and water shortages are expected to increase in both frequency and magnitude. Additionally, the City's wholesale cost of water is expected to increase by approximately 1 000/0 by FY 2011/12 as the SFPUC passes future capital costs on to regional water purchasers. Confronted with a relatively low level of water supply reliability and projected increasing wholesale water costs, the City initiated planning efforts to meet its goals of providing its water customers with high quality water, at a high degree of reliability, at the lowest possible cost. In FY 2001/02, the City augmented its conservation program by implementing "active" water conservation measures and began investigating the feasibility of implementing a water recycling project for landscape irrigation and industrial uses in order to reduce the City's dependence on SFPUC water. The City Council authorized staff to proceed with the water recycling project in August 2003 and approved the Water Financing Plan on January 24, 2005. Water Recycling Project - Phase 1 of the project consists of the construction of water recycling facilities (treatment improvements, disinfection, storage and pumping facilities) to be constructed at the South Bayside System Authority (SBSA) treatment plant; a pipeline distribution system to be constructed east of US Highway 101 in Redwood Shores and in the Seaport, Bayfront, and Skyway commercial and industrial areas of the City; customer site retro-fits; and the installation of synthetic turf play fields to reduce the use of potable water for irrigation purposes. This portion of the project will be implemented through 2010, and will be capable of delivering up to 1,960 acre-feet of recycled water per year. Total Phase 1 estimated costs are approximately $71.3 2