CityofRedwoodCity

CommunityDevelopmentDepartment
PublicWorksDivision

MEMORANDUM

DATE:

TO:

FROM:

THRU:

RE:

January15,2013
TheUtilitiesCommitteeoftheCityCouncil
RussellNarahara,SeniorManagementAnalyst
TerenceKyaw,AssistantPublicWorksDirector
RecycledWaterSystemUpdate

I.Purpose:
1 Provideadetailedsummaryoftherecycledwaterprojectfromconceptiontopresentday.
2 RespondtothequestionaskedattheJanuary11,2012UtilitiesCommitteeMeeting,Pleaseprovidealist
ofcustomerswhohavenotyetconnectedtoPhase1oftherecycledwatersystem.
3 Respond tothequestion askedat the September14,2011UtilitiesCommitteeMeeting,Iftherecycled
waterdiscountswereextended,howmuchmoneyisinvolved?

II.ExecutiveSummary:
RedwoodCity(theCity)is100%reliantononesourceofpotablewatersupply,theSanFranciscoHetch
HetchyregionalwatersystemmanagedbySFPUC.
The City has a contractual Individual Supply Guarantee (ISG) of 12,243 AFY from SFPUC. This amount
relatestoalegaldefinitionandnotanabsoluteguarantee.Intimesofshortage,theSFPUCwillprovide
lessthantheISG.
In 1999 (around the time the City started talking about building a recycled water system), the City
consistently consumed 1,000 acrefeet per year (AF/yr) over the Citys contractual potable water supply
assuranceof12,243AF/yr(fromSFPUC).
With water demand projected to increase to 13,828 AF/yr by 2030 (13% greater than the SFPUC
contractuallimitof12,243AF/yr),theCitylookedatoptionstoreducedemandinordertocomplywiththe
supplyassurancelimit.
Amongtheoptionsconsidered,theCitydecidedtoimplementwaterconservationandwaterrecyclingas
theonlyviableneartermopportunities.
Anadvantageofrecycledwateristhatthesupplyisdroughtproof.IftheSFPUCdeclaresawatershortage,
Redwood City will be required to make relatively large water use cutbacks. With ample recycled water
supplycapacityatSBSA,recycledwatercustomersarelikelytobeonlyslightlyimpacted,ifatall,byfuture
SFPUC water supply shortages (that include mandatory cutbacks to the potable water supply during
droughtconditions).

 In2004,theCitybeganplanningPhase1oftherecycledwaterprojectandin2006,deliveriesofrecycled
waterfromSBSAtotaled17acrefeet,orapproximately0.14%oftotalwatersupply.
In2005,the CityCouncil ofRedwood Cityset the pricingpolicyforrecycled water(that willlast5years
from a customers connection date). For existing irrigation customers, the Recycled Water Project pays
100%ofthecostsassociatedwithconnectingtotherecycledwatersystemandprovidesa25%discountto
thecostofrecycledwater.Industrialcustomerswhoprefertoperformretrofitsthemselveswillpay100%
ofthecosttoconnecttotherecycledwatersysteminexchangefora40%discounttothecostofrecycled
water.
In2008,RedwoodCityadoptsaRecycledWaterUseOrdinance.TheOrdinanceestablishestheRecycled
WaterServiceAreaandsetsrequirementsforrecycledwaterusewithintheservicearea.Thepurposeof
theOrdinanceistoensurethat theCityremains consistentwiththeCaliforniaWaterCodebyachieving
themaximumpublicbenefitfromtheuseoftheCitysrecycledwatersupply.TheOrdinanceidentifiesthe
requiredandvoluntaryusesofrecycledwater,includingrequirementsfordualplumbingtoaccommodate
theuseofrecycledwater.
In2010,constructionofPhase1iscomplete;however,actualdemandof520AF/yrislessthanprojected
demandgoalof922AF/yrby2010(conceivedin2004).
In FY1213, actual consumption is equal to 642 AF/yr with 74 sites (out of a possible 125 eligible sites)
connectedtoPhase1.Actualconsumptionof642AF/yrisequalto32%oftotalsupply(2,000AF/yr).
WithregardtothefutureofrecycledwaterafterPhase1,section4.6.5.2(ProjectedRecycledWaterUse)
fromthe2010UrbanWaterManagementPlanstates:
o Phase 2 of the recycled water includes the expansion of recycled water to the central area of
RedwoodCity,westof101.
o TheexistingcustomerbaseinthisareaoftheCityismoredispersedthanthePhase1areaand
wouldrequiresignificantinfrastructuretoreachthecustomersthathaverelativelylowdemand.
o (Phase 2 will) expand as development occurs, allowing the City to target specific developments
forrecycledwaterserviceandconstructpipelinesonanasneededbasistosupportdevelopment
intherecycledwaterservicearea.

III.Phase1Costs:
Phase1includes14.75milesofpipelineservicingcustomerseastofHighway101inRedwoodShores,the
GreaterBayfrontAreaandtheSeaportArea.
Phase1wassplitinto9bidpackagesthatwereprojectedtocost$72.9million.In2010,all9bidpackages
werecompletedwithinbudgetandonschedule,leavingaprojectbalanceof$562,498.
The $72.9 million in costs include $27.6 million to construct the recycled water facilities at SBSA, $36.5
million to complete the planning, design and installation of the distribution system, $6.6 million for
artificialturfinstallations,and$2.2millionforlandscapeirrigationcustomerretrofits.

IV.Phase1Funding:
Todate,RedwoodCityhasreceivedapproximately$5millioninStateandFederalgrantsthatinclude:
o $2.9 million from the State Water Resources Control Board Proposition 13 Grant. This
reimbursement grant will be used to fund 25 percent of the construction costs of distribution
pipelinesintheSeaportarea.

$972,800 from the Department of Water Resources under the Integrated Regional Water
Managementprogram.Thisgrantwillfund34percentoftheconstructioncostsoftheBayfront
areapipeline.
o $1.1millionfromtheU.S.BureauofReclamationTitleSVIprogram.Thisgrantwillfund25percent
ofbidpackages5and6forpipelinesintheSeaportarea.
TheCityissued3WaterRevenueBondsforatotalofapproximately$70.5millionthatinclude:
o $32.8millionfrom2005AWaterRevenueBondsproceedsusedtofinanceprojectcoststhathad
beenpaidusingcashreservesandprojectcostsforfacilitieslocatedatSBSA.
o $23.8millionfrom2006AWaterRevenueBondsproceedsusedtofinancethefirsttwoofthree
Phase1pipelinesservicingRedwoodShores,retrofitsforlandscapeirrigationcustomers,onehalf
of the Task Force recommended artificial turf installations and systemwide repair and
replacementofprojectfacilities.
o $13.9millionfrom2007AWaterRevenueBondsproceedsusedtofinancethelastsixdistribution
pipeline bid packages that will distribute recycled water in the Bayfront and Seaport areas,
retrofitsforlandscapeirrigationcustomersinRedwoodShoresandtheSeaportarea,finalportions
oftheartificialturfinstallations,andsystemwiderepairandreplacementofprojectfacilities.
TheCityearnedapproximately$4.1millionininterestearnings.

V.SystemCapacity:
Phase1cansupplyupto2,000AF/yr,whileprovidingtheflexibilitytocosteffectivelydeliverupto3,238
AF/yrinthefuture.
In2008,recycledwaterconsumptionwas258AF/yr.In2012,recycledwaterconsumptionwas674AF/yr.
Incomparisontothetotalsupplyof2,000AF/yr,the2012consumptionwasequalto34%oftotalsupply.
Asshownonthegraphbelow,Phase1recycledwaterconsumptionhasnotreachedtheanticipatedPhase
1deliveryof922AF/yr(projectedin2004).

VI.ResponsetotheJanuary11,2012question,Providealistofthecustomerswhohavenotyetconnectedto
therecycledwatersystem:
3

 Thereareatotalof135sitesinthePhase1area.124ofthesitesareeligibletoconnecttoPhase1.The
remaining11sitesareparksthatwillnotbeconnectedtotherecycledwatersystemperCouncilpolicynot
touserecycledwaterinareaswherechildrenplay.
SinceJanuary2013,therecycledwatersystemhasdeliveredrecycledwaterto74sites(66irrigationand8
industrial)outofapossible124sitesinthePhase1area.
Thechartbelowliststhe61sites(12commercialand49irrigation)thathavenotconnectedtoPhase1and
includesthe11parksthatthatwillnotbeconnectedperCouncildirection.Thelistalsoshows:
o TheprojectedAF/yrofpotablewaterusepersite(thatcouldbesavedifrecycledwaterisused).
o Whetheritsmandatoryforthesitetouserecycledwaterperthe2008RecycledWaterOrdinance.
o Thetype(commercial,park,HOA)anduse(industrialorirrigation)ofrecycledwater.
o ThecurrentstatuslistingwhythesitehasnotyetconnectedtoPhase1.
The 61 sites use approximately 582 AF/yr of potable water. Subtracting the 11 parks, the 50 sites (12
commercialand38irrigation)havethepotentialofusing540AF/yrofrecycledwater.

Water Savings Mandatory Under

(AF/yr)
Ordinance
No, but use is
Granite Rock - Ready Mix
18.4
encouraged
No, but use is
Pacific Shores
15.0
encouraged
No, but use is
Granite Rock - Road Materials
11.8
encouraged
No, but use is
Central Concrete
7.9
encouraged
No, but use is
Harbor Ready Mix
5.5
encouraged
No, but use is
Granite Rock
4.9
encouraged
No, but use is
SBWMA
3.6
encouraged
No, but use is
Hotel Sofitel
2.3
encouraged
No, but use is
Cargill
1.4
encouraged
No, but use is
Wharf 3
1.4
encouraged
No, but use is
Lyngso
0.7
encouraged
No, but use is
Pabco
0.6
encouraged
Name

Total

Type

Use

Status/Challenge

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

Commercial

Industrial Customer has been approached but has not provided a response. Retrofitting would be expensive.

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

Commercial

Industrial Expensive to run main across railroad.

Commercial

Industrial Pipe needs to be run from Twin Dolphin along an easement to serve water - not sure on responsible party.

Commercial

Industrial Customer unable to attain funds to bring pipe from meter to base of cooling tower.

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

Commercial
Commercial

Industrial Have not spoken to this customer - site is mixed use domestic and irrigation - major plumbing work maybe needed.
Customer currently retrofitting to connect to the recycled water system. 100% of retrofit costs paid by the
Industrial customer.

Commercial

Industrial Project on hold since customer has reservations about recycled water and a lack of funds to pay for retrofit.

73.5

Name
Pacific Shores

Water Savings Mandatory Under

Type
(AF/yr)
Ordinance
No, but use is
166.2
encouraged
Commercial

100 Marine

12.1

Malibu

7.3

Castle Golf

5.1

Office park with Restaurants

4.8

WestPoint Marina

4.4

Marriot

3.9

Childcare Center

3.3

Toyota

2.3

TSP

2.0

Port Office

1.5

Yes
No, but use is
encouraged
No, but use is
encouraged

Use

Status/Challenge

Irrigation Customer uses well water for irrigation and not interested in connecting to the City's system.

Commercial

Irrigation Customer originally declinded when retrofits were voluntary. Customer is now interested and discussing with City.

Commercial

Irrigation Customer has issues using recycled water with a ride used by the public. Site has little water going to irrigation.

Commercial

Irrigation Customer apparently stopped irrigation.

Yes
No, but use is
encouraged
No, but use is
encouraged
No, but use is
encouraged

Commercial

Irrigation Customer originaly declined when retrofits were voluntary. Customer has not been reapporached yet.

Commercial

Irrigation Customer's site is new construction and there is no main line that reaches the customer.

Commercial

Irrigation Customer's location is not near the mainline.

Commercial

Irrigation Customer's location is not near the mainline.

Yes
No, but use is
encouraged
No, but use is
encouraged

Commercial

Irrigation Have not spoken to this customer - site is mixed use domestic and irrigation - major plumbing work maybe needed.

Commercial

Irrigation Customer's location is not near the mainline.

Commercial

Irrigation Plumbing seperation needed before retrofit.

Basic Chemical

1.0

Yes

Commercial

Irrigation Customer has been approached but has not provided a response.

Bayport Marina Plaza

0.7

Yes

Commercial

Irrigation Have not spoken to this customer - site is mixed use domestic and irrigation - major plumbing work maybe needed.

Boardwalk Motor Car

0.6

Yes

Commercial

Irrigation Have not spoken to this customer - site is mixed use domestic and irrigation - major plumbing work maybe needed.

Frey Trucking and Supplies

0.5

Yes

Commercial

Irrigation Have not spoken to this customer - site is mixed use domestic and irrigation - major plumbing work maybe needed.

Total

215.7

 Persection4.6.5.2(ProjectedRecycledWaterUse)ofthe2010UrbanWaterManagementPlan:
o AdditionalHOAsintheRedwoodShoresarea(Phase1)mightrequestrecycledwaterservicein
thefuture.RecycledwaterlateralshavealreadybeeninstalledformostHOAs,soonsiteretrofit
cost would be the only capital expenditure. Use of recycled water at existing HOAs remains
voluntaryunderthe2008RecycledWaterOrdinance.

Name
Trident Park
Shorebird Park
Cringle Park
Dolphin Park
Mariner Park
Shannon Park
Portside Park
Dogs Park
Redwood Shores Library
Preserve Park
Marlin Park
Total

Gossamer
Cove HOA
Shorebird
Indian Creek
Lakeshore Townhomes
Gossamer Hollow
Regatta HOA
Gossamer Village
The Villas
Pelican Cove
Gossamer Isle
Shorebird Island
Hampton HOA
Ventana Del Mar HOA
Hasting Shores
Seabridge
Marina Point
Manor HOA
Marlin Subdivision Unit #1/#6
Teredo Island
Davit Lane Parcel
Boardwalk HOA
Island Ct

Type

use

Status/Challenge

Park

Irrigation Customer's location is not near the mainline.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Customer's location is not near the mainline.

Park

Irrigation Customer's location is not near the mainline.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Per City's agreement with the community, parks and schools will not be retrofitted to use recycled water.

Park

Irrigation Customer's location is not near the mainline.

42.0

Name

Total

Water Savings Mandatory Under

(AF/yr)
Ordinance
No, but use is
13.0
encouraged
No, but use is
6.0
encouraged
No, but use is
6.0
encouraged
No, but use is
5.0
encouraged
No, but use is
5.0
encouraged
No, but use is
3.0
encouraged
No, but use is
1.0
encouraged
No, but use is
1.0
encouraged
No, but use is
1.0
encouraged
No, but use is
1.0
encouraged
No, but use is
UNK
encouraged

Water Savings Mandatory Under

(AF/yr)
Ordinance
No, but use is
32.9
encouraged
No, but use is
22.0
encouraged
No, but use is
19.6
encouraged
No, but use is
18.3
encouraged
No, but use is
17.6
encouraged
No, but use is
16.9
encouraged
No, but use is
16.4
encouraged
No, but use is
16.4
encouraged
No, but use is
11.9
encouraged
No, but use is
11.8
encouraged
No, but use is
encouraged
10.8
No, but use is
10.3
encouraged
No, but use is
9.2
encouraged
No, but use is
8.2
encouraged
No, but use is
7.7
encouraged
No, but use is
6.9
encouraged
No, but use is
5.3
encouraged
No, but use is
5.0
encouraged
No, but use is
3.5
encouraged
No, but use is
0.1
encouraged
No, but use is
UNK
encouraged
No, but use is
UNK
encouraged
No, but use is
UNK
encouraged
250.8

Type
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA
HOA

Use

Status/Challenge

Irrigation Customer interested. Will only be able to retrofit small parts of site.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Customer orginially part of Bid package 5 - did not want to retrofit partial site. Alternative backflow approval is
Irrigation needed from DPH in order to perform a cost effective retrofit.
Customer interested but alternative backflow approval is needed from DPH in order to perform a cost effective
Irrigation retrofit.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Irrigation Have not spoken to this customer. Customer recently contacted us.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.
Irrigation Customer's location is not near the mainline.
Did not respond to 2010 retrofit advertisement. Has not shown interest so City has not pursued. May not be able to
Irrigation retrofit entire site due to backflow regulations.

HOA

Irrigation Customer's location is not near the mainline.

Customer interested but alternative backflow approval is needed from DPH in order to perform a cost effective
Irrigation retrofit.

HOA

Irrigation Customer's location is not near the mainline.

HOA

Irrigation Have not spoken to this customer. Customer recently contacted us.

HOA

HOA

Irrigation Customer's location is not near the mainline.

Did not respond to 2010 retrofit advertisement.
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement.
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement.
Irrigation retrofit entire site due to backflow regulations.
Did not respond to 2010 retrofit advertisement.
Irrigation retrofit entire site due to backflow regulations.

HOA

Irrigation Customer's location is not near the mainline.

HOA
HOA
HOA

Has not shown interest so City has not pursued. May not be able to
Has not shown interest so City has not pursued. May not be able to
Has not shown interest so City has not pursued. May not be able to
Has not shown interest so City has not pursued. May not be able to

VII.CostperUnitofRecycledWater:
Therecycledwatersystemisbecomingmorefinanciallyviableasitgrows.Whilerevenueperunit($3.85)
was only 18% of the unit cost to produce recycled water ($21.11) for FY1112, midyear projections for
FY1213showrevenueperunit($4.26)equalto23%oftheunitcosttoproducerecycledwater($18.77).
Pleasenotethattheunitcosttoproducerecycledwaterincludesbonddebt.
Revenue for recycled water sales beginning January 2005 includes a discount of 25% for all irrigation
accountsand40%forcommercialaccounts.
WaterUnitsSoldrefertorecycledwaterunitssold.1unit=748gallons.

*YTDdatathroughDecember2012(postedasofJanuary11,2013).

VIII.CustomerIncentiveProgram:
InJanuary2005,theCityCounciladoptedapolicyforthepricingofrecycledwaterthatwouldincentivize
customersinthePhase1regiontoconnectanduserecycledwater(Resolution14645).
Theprimaryincentiveofferedtocustomerswerediscountedratesthatwouldlastforfiveyearsfromthe
dateofconnectionforeachmeter/account.
o Existing irrigation meters/accounts that agreed to use recycled water would receive a 25%
discountonthemonthlycostofrecycledwater.Inaddition,theCitywouldperformandpayfor
100%ofthecustomersiteretrofitsrelatedtolandscapeirrigation.
o Existing industrial meters/accounts that agreed to use recycled water would receive a 40%
discountonthemonthlycostofrecycledwater.Unlikelandscapeirrigationcustomers,industrial
customerswererequiredtopay100%oftheretrofitcostswiththeCitypaying$0.
FromFY0506toFY1213,thefollowingstatsapplytothe74existingrecycledwatercustomers:
o The City lost $1.2 million in revenue (from the 25% and 40% discounts) for an average loss of
$16,000persite.
6

The City spent $2.2 million on landscape irrigation customer retrofits for an average landscape
irrigationcustomerretrofitcostof$30,000persite.
Insum,theCityspent$3.4milliononthe74existingcustomers;anaverageof$46,000percustomer.

IX.ResponsetotheSeptember14,2011question,Iftherecycledwaterdiscountswereextended,howmuch
moneyisinvolved:
In FY1112 (the last full fiscal year), the City lost $333,096 in revenues whereby 11% of the loss was
attributed to commercial customers (receiving a 40% discount) and 89% of the loss was attributed to
irrigationcustomers(receivinga25%discount).
Theaveragelosspercustomeris$4,500/yearbyofferingthe25%and40%discountstothemonthlyrate
forrecycledwater.Ifthe50sitesconnectedtoPhase1,thatwouldequalapotentiallossof$225,000.
Assumingthe74existingsitesaccountedforalossof$416,106inFY1314andthe50newsitesaccounted
foralossof$225,000,thetotalpotentiallossis$641,106forthatyear.
Finally, the recycled water discounts also included the provision that the City would pay 100% of the
retrofitcostsforirrigationcustomers.
The50customersthatcouldconnecttoPhase1include12commercialand38irrigationcustomers.
InsectionVIIIabove,theaverageretrofitcostforthe74customerswas$30,000persite.
With38potentialirrigationcustomers,theCitywouldhavetopay$1.1millioniftheCityalsoextendedthe
100%retrofitoffer(forirrigationcustomers).
In sum, if the City extended the discounts for the 74 customers and offered the same to the 50 new
customers,thepotentiallossis$641,106.IftheCitypaidfor100%oftheretrofitcostsforthe38irrigation
customers,thepotentiallosswouldbe$1.1millionforatotalpotentiallossof$1.7millionperyear.

FiscalYear
WithDiscount(Billed)
NoDiscount
UncollectedRevenue

0405
$7,694
$10,646
$2,951

0506
$48,098
$64,788
$16,690

0607
$58,617
$90,269
$31,652

0708
$285,161
$380,215
$95,054

0809
$402,099
$536,132
$134,033

0910
$452,757
$604,132
$151,375

1011
$825,345
$1,102,060
$276,715

1112
$990,352
$1,323,447
$333,096

1213**
$616,511
$824,564
$208,053

Total
$3,686,633
$4,936,252
$1,249,619

**YTDdatathroughDecember2012(postedasofJanuary11,2013).
7

X.OtherFacts:
In1999,theCityconsumedmorepotablewaterthanitsIndividualSupplyGuarantee(ISG)of12,243AF/yr
fromSFPUC.From2009Present,potablewaterdemandhasdecreasedandRedwoodCityhasbeenable
to stay below its ISG. A reduction in potable water demand is attributed to the Citys aggressive water
conservation programs, replacing potable water use with recycled water use, and the effects of the
nationaleconomicdownturnresultinginlesslocalbusinessactivityandgreaterrealestatevacancies.

In2008,theCityadoptedaRecycledWaterUseOrdinance.TheOrdinanceestablishestheRecycledWater
Service Area and sets requirements for recycled water use within the service area. The purpose of the
Ordinanceis toensurethattheCityremainsconsistentwiththe CaliforniaWaterCodeby achievingthe
maximum public benefit from the use of the Citys recycled water supply. The Ordinance identifies the
requiredandvoluntaryusesofrecycledwater,includingrequirementsfordualplumbingtoaccommodate
theuseofrecycledwater.
In2010,RedwoodCityadoptedaNewGeneralPlan.WaterdemandprojectionsinRedwoodCitysNew
GeneralPlanexceedtheCitysIndividualSupplyGuaranteebyanestimated1,585AF/yrby2030.Water
demandprojectionsforgrowthundertheNewGeneralPlanincorporatehighgrowthassumptionswhich
resultinanextremelyconservativewaterdemandestimate.

 TreeConcerns:In2007,oneyearafterretrofitting,poplartreesontheOraclecampusbegantoshowsigns
ofsalttipburn.HortScienceinvestigatedanditwasfoundthatthesoilconditioninRedwoodShoreswas
poorandhighinsalinity.HortScienceconcludedthatrecycledwatercanbeusedforlandscapeirrigation
inmostcases,althoughdoingsowillrequiresiteandmanagementadjustments.Recommendationshave
beencreatedandpreinspectionreportsarenowpassedalongtocustomersbeforeretrofitting.

XI.Timeline:
1997:TheRegionalWaterQualityControlBoard,concurrentwithitsapprovaloftheNPDESpermitforthe
Stage2WastewaterTreatmentFacilitiesExpansionproject,encouragesSBSAtotakealeadershiprolein
thedevelopmentofapilotwaterrecyclingproject.
1999:RedwoodCityhasexceededitsIndividualSupplyGuaranteeof12,243acrefeetby1,028acrefeet.
July2000:theCaliforniaRegionalWaterQualityControlBoard(RWQCB)providesapprovalforRedwood
CityandSBSAtoembarkonatwoyearinterimrecycledwaterdemonstrationproject.Ifoperationofthe
projectextendsbeyondtheinitialtwoyearterm,RedwoodCityandSBSAwillneedtosubmitaseparate
engineeringreportandobtainsubsequentapprovalbytheDepartmentofHealthServices(DHS).
August2000:RedwoodCitybeginsusingrecycledwaterasapilotprojectreferredtoastheFirstStep
project in partnership with SBSA. The First Step Project delivers up to 0.25 MGD of disinfected tertiary
recycledwatertolimitedsectionsofRedwoodShoreswhereitisusedforlandscapeirrigation.Inthispilot
project,SBSAproducestherecycledwater,theCitydeliversthewatertocustomersandprovidescustomer
support.Fromthispilotproject,theCityandSBSAgainvaluableexperienceinproducing,delivering,and
administeringarecycledwaterproject.
2002:TheCityCouncilofRedwoodCitybeginplanningforthedevelopmentofarecycledwatersystemto
addresstheveryrealpossibilityofseverewatershortagesincomingyears.TheCityalsoimplementsits
BMP5LargeLandscapeIrrigationEfficiencyProgram,aBestManagementProgramaimedatcommercial
campuses and homeowners associations (HOAs) to develop efficient irrigation scheduling and site
management methods while still using potable water. This program lays the groundwork for the future
conversionbycommercialcampusesandHOAstotheuseofrecycledwater(ascustomersbecomemore
awareofreducingrunoffandirrigationefficiency).
May2002:TheenvironmentalimpactofthestoragefacilitiestobelocatedatSBSAareevaluatedinthe
Citys Redwood Shores Bayfront Specific Plan Environmental Impact Report (EIR). The final EIR was
certified in May 2002. The EIR includes measures for mitigating impact that construction of storage
reservoirswillhaveontheenvironment.
June2002:AnInitialStudy(IS)wascompletedinJune2002toevaluatetheimpactthatconstructionofthe
recycled water distribution system would have on the environment. The IS includes review of offsite
recycledwaterstoragereservoirsandpumpstations;transmissionlinesegmentfromtheSBSAtreatment
planttoRadioRoad;variouspotentialboreandjackpipelinecrossinglocations;bridgecrossingoverwater
bodies;extensionoftherecycledwaterpipelinesystemfordistributiontoanextendedareaofRedwood
Shores;recycledwaterdistributionsystemtotheGreaterBayfrontandCentralRedwoodCitycustomers.
The findings of the IS conclude that with implementation of various mitigation measures, the project
wouldnothaveasignificantimpactontheenvironment.
August2002:Duetoconcernfromresidentsovertheproject,theCitypreparesadditionalinformationand
technicalreportstocreateanAddendumthatiscirculatedforpublicreviewwiththegoalofprovidinga
betterunderstandingoftheprojecttoresidents.
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 June 2003: The City Council of Redwood City conducts a public hearing on the Addendum. The session
includes four technical presentations that addresses some of the publics concerns over the project.
Summariesofthetechnicalpresentations,alongwithwrittenandoralcommentsreceivedfromthepublic
arecompiledandincludedintheCEQArecord,completingtheCEQAprocess.
August 2003: The City Council of Redwood City approve a broadly defined and flexible recycled water
project.Councilalsoformsacitizentaskforcetoprovideinputonprojectimplementation.Thegroupwas
taskedwiththegoaltoidentify1,946AF/yrofpotablewaterdemandreductionsby2010,inafinancially
feasiblemannerthatavoidsusingrecycledwateratschoolyards,parks,andplaygrounds.
March 2004: the Task Force presents their final report and unanimously recommends a new project
alternative TF that includes a recycled water project that creates 1,710 AF/yr; replaces some grass
playing fields with synthetic turf; continues the use of groundwater at Sequoia High School; and the
creation of new water conservation measures beyond those mentioned in the Citys Urban Water
ManagementPlan.
April 2004: Design and construction of the recycled water project begins. The project includes a
permanentrecycledwatertreatmentandstoragefacilitiesatSBSA,arecycledwaterdistributionsystem,
andonsitecustomerretrofitfacilities.
August1,2004:TheCityandSBSAenterintoanAgreementforProductionandDeliveryofrecycledwater.
Under the agreement, SBSA is responsible for recycled water production. The City is the purveyor, or
distributor of recycled water to customers in Redwood City. The City is responsible for all customer
connections and retrofits and customer use area inspections, including enforcing the Citys rules and
regulations for customer noncompliance. The City and SBSA also enter a Lease Agreement (Recycled
Water Treatment/Storage/Pumping Facility Site) referred to as the Lease. Under the Lease, which is
scheduled to expire December 31, 2056, the City is leasing real property from SBSA on which the
disinfectionfacilityandstorageandpumpingfacilitiesoftherecycledwaterprojectwillbeconstructed.
August2004:WhitleyBurchett&AssociatescompletestheRecycledWaterProjectEngineeringReportand
sendsacopytotheDepartmentofHealthServices(DHS)onbehalfofRedwoodCityandSBSA.
October2004:TheDepartmentofHealthServices(DHS)providesapprovalforRedwoodCityandSBSAto
proceedwiththerecycledwaterproject.
February2005:TheCityissuesWaterRevenueBonds,Series2005Afor$35,790,000($32,807,484ofwhich
willgotowardtherecycledwaterproject).
May23,2005:TheCityCouncilofRedwoodCitysetsthepricingpolicyforrecycledwater(thatwilllast5
yearsfromacustomersconnectiondate).Forexistingirrigationcustomers,theRecycledWaterProject
pays 100% of the costs associated with connecting to the recycled water system and provides a 25%
discounttothecostofrecycledwater.Industrialcustomerswhoprefertoperformretrofitsthemselves
willpay100%ofthecosttoconnecttotherecycledwatersysteminexchangefora40%discounttothe
costofrecycledwater.
February2006:TheCityissuesWaterRevenueBonds,Series2006Afor$26,000,000($23,762,000ofwhich
willgotowardtherecycledwaterproject).
May15,2007:TheCityissuesWaterRevenueBonds,Series2007Afor$15,150,000($13,850,000ofwhich
willgotowardtherecycledwaterproject).
2007: Phase 1 of the recycled water project begins. Phase 1 is divided into nine discrete projects and
includes 14.75 miles of pipeline and services customers east of Highway 101 in Redwood Shores, the
GreaterBayfrontArea,andtheSeaportArea.
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 July2008:RedwoodCityadoptsaRecycledWaterUseOrdinance.TheOrdinanceestablishestheRecycled
WaterServiceAreaandsetsrequirementsforrecycledwaterusewithintheservicearea.Thepurposeof
theOrdinanceistoensurethat theCityremains consistentwiththeCaliforniaWaterCodebyachieving
themaximumpublicbenefitfromtheuseoftheCitysrecycledwatersupply.TheOrdinanceidentifiesthe
requiredandvoluntaryusesofrecycledwater,includingrequirementsfordualplumbingtoaccommodate
theuseofrecycledwater.
November2009:SenateBillX77,theWaterConservationActof2009,isenactedwiththegoaltoachieve
a20percentreductioninurbanpercapitawateruseinCaliforniaby2020.
February 2010: The 20x2020 Water Conservation Plan sets forth a statewide road map to maximize the
states urban water efficiency and conservation opportunities between 2009 and 2020, and beyond.
RedwoodCitys2020targetforcomplianceis124GPCD,whichis95percentofthe2020UrbanWaterUse
TargetfortheSanFranciscoBayHydrologicRegion.SinceFY2008/09,RedwoodCityhasbeenmeetingits
2015target;andismeetingits2020targetasofFY2009/10.ProjectionsshowthattheCitywillcontinueto
meetthosetargetsto2030andbeyond.Asaresult,RedwoodCitywillnotimplementanyprogramsfor
the specific purpose of complying with the 2009 bill. Instead, the City will continue to reduce potable
waterdemandsaboveandbeyondtargetsdelineatedinSBX77.
August2010:ConstructionoftheninePhase1projectsiscompleted.Phase1includestwotanksthathold
4.36milliongallons
October2010:TheCitycompletesitsGeneralPlanthatstateswithinthetimeframeoftheCitysGeneral
Plan (2030), the recycled water system is expected to provide nearly 2,000 AF/yr to Redwood City
customers, more than offsetting the Citys water annual deficit of approximately 800 AF/yr from the
regionalwatersystem.
April 2011: Phase 1 delivers recycled water to 50 irrigation sites and 2 nonirrigation sites. Table 47
summarizestherecycledwateruseprojectedfor2010fromthe2005UrbanWaterManagementPlanand
actualrecycledwaterusein2010.

July 2011: The Citys Urban Water Management Plan (2010 UWMP) is adopted by the City Council of
Redwood City. The longrange water and recycled water demand projections developed for the 2010
UWMParebasedonresidentialandcommercialgrowthindicatedintheGeneralPlan.

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AppendixA:
AmapshowingtheFirstStepprojectareaajointSBSAandRedwoodCityprojectthatproducedthefirst
recycledwater.

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AppendixB:
AmapshowingPhase1andPhase2projectareas.

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AppendixC:
AmapshowingPhase1(RedwoodShoresandGreaterBayfrontArea)andPhase2(CentralRedwoodCityArea)
alongwiththeCitylimits(dottedline).

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AppendixD:
Agraphicthatillustrateshowrecycledwaterisproduced.

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