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City Council "A" List Priorities for Fiscal Years 2002/03/04 <br /> FEASIBILITY ANALYSIS <br /> For City Council Discussion <br /> April 1, 2002 <br /> <br />Priority #1: Address Redwood City Water Supply Assurance <br /> <br />· Assumptions The Council will establish a policy that says that they intend to reduce <br /> Redwood City's demand on the San Francisco Public Utilities <br /> Commission (SFPUC) regional system over time, with the goal of being <br /> within the contractual supply assurance cap by the expiration of the <br /> master sales agreement in 2009/10. Such a policy would set a clear <br /> numeric target for subsequent decisions on projects and programs, and <br /> clarify the purpose of implementing the water recycling project as soon <br /> as possible. <br /> <br />· Potential obstacles Money and time: To pay for the water recycling project, more <br /> aggressive conservation programs, and/or procuring additional supply <br /> via the regional system, the Council will need to raise water rates, <br /> connection fees and facilities fees. Parallel to this, the wholesale cost of <br /> SFPUC water is expected to rise significantly as the regional system is <br /> rebuilt, which will cause average monthly water bills in Redwood City to <br /> rise an estimated 76% between now and 2012. The cost of water will <br /> become a major community issue. <br /> In order to reach a specific goal, timing is critical. Not only are we <br /> racing the clock to build a huge new infrastructure system, but the next <br /> regional drought is imminent. When. this next shortage occurs, <br /> Redwood City's cut-backs per the SFPUC/Bay Area Water Users <br /> Assoc. (BAWUA) Interim Shortage Allocation Plan will be extreme. <br /> <br />· Nexus This really is the driver for all of the planning the City is doing, including <br /> the current development of a long-term water supply master plan linked <br /> to the update of the City's General Plan. <br /> <br />· Estimated initial cost There is $300,000 budgeted in the Water Enterprise Fund CIP. This will <br /> cover current consultant work and follow-up tasks. <br /> <br />· Ongoing costs There will not be on-going costs tied directly to this activity; however <br /> thereafter rates and fees will be impacted per discussion above. <br /> <br />· Staffing/resource The current staffing level plus consultants plus BAWUA efforts will cover <br /> needs this activity. <br /> <br />· Options/alternatives The Council could do nothing and increase risks to currant and future <br /> customers - and in turn decrease reliability of the City's potable water <br /> supply. Or, a morato.rium on new connections could be enacted to <br /> protect existing cust6mers from future shortages. <br /> <br /> 1 of 10 <br /> <br /> <br />