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HomeMy WebLinkAboutRESO 6743ORIGINAL RESOLUTION NO. 6743 RESOLUTION OF THE COUNCIL OF T'HE""C'ITY OF PALO ALTO SUSPENDING OPP.RATION OF SECTION 7.02(b) OF SETTLEMENT AGREEMENT AND MASTER WATER SALES CONTRACT WITH TKE CIT~ AND COUNTY OF SAN FRANCISCO FOR FISCAL YEARS 1987-1988 AND 1988-1989 WHEREAS, the City of Palo Alto obtains water from the San Francisco Water Department ( •sFwn•) pursuant to the terms of a Settlement Agreement and Master Water Sales Contract with the City and County of San Francisco c•contract•) and Water Purchase Con- tract with the San Francisco Public Utilities Commission, each of which was entered into in 1984; and WHEREAS, the San Francisco Public Utilities Commission, on April 28, 1988, declared a water shortage emergency and adopted a mandatory Water Conservation Prograro, including water rationing and excess use charges. The goal of the mandatory Water Conserva- tion Program is to reduce sig~!f icantly the consumption of water r-upplied by the SFWD within its service area. In response, water use during April, May and June 1988 by wholesale customers of the SFWD has been considerably below use during the corresponding months of 1987; and WHEREAS, the raandatory Water Conservation Program is expected to remain in effect until at least April 1989; thus, water ration- ing will be imposed by the SFWD on its wholesale customers for the majority of Fiscal Year 1988-1989; and WHEREAS, the Contract provides a methodology by which indivi- dual wholesale customers• entitlements to the overall Supply Assurance made by San Francisco are determined. Unless the whole- sale customers otherwise agree, this determination is based on water usage by individual wholesale customers: and WHEREAS, the provisions of the Contract which determine per- manent entitlements to a portion of the overall Supply Assurance based on water used are not compatible with efforts by all the wholesale customers to reduce consumption of SFWD waler. They should, therefore, be suspended in response to the enactment of the mandatory Water Conservation Program by the San Francisco Public Utilities Commission and the actions by this agency and the other wholesale customers to encourage water conservation. NOW THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION I. Subject to the provisions of Section 3, the pro- visions of Section 7.02(b) of the Contract dealing with the allo- cation of that portion of the Supply Assurance designated as •suburban allocable water• shall :':>e suspended as to water used by wholesale customers during FY 1987-1988 (i.e., July 1, 1987 -June 30, 1988) and during FY 1988-1989 (i.e. July 1, 1988 -June 30, 1989). Water usage during these two fiscal years will not be used for any purpose in determining permanent entitlements of the wholesale customers to suburban allocable water. 1. .. ., SECTION 2. In all other respects, Section 7.02(b) of the Contract shall remain in full force and effec': and shall operate without modification as to water used during all years other than FY 1987-1~88 and FY 1988-1989, commencing with FY 1989-1990. SECTION 3. This Resolution shall become effective upon adop- tion of resolutions of like tenor by each of the 25 other whole- sale customers affected by Section 7.02(b), on or before December 31, 1988. If each and all of the other 25 wholesale customers have not adopted a resolution of like tenor by December 31, 1988, then this resolution shall be of no further force or effect and the provisions of Section 7.02(b) of the Contract shall apply to water used during FY 1987-1988 and FY 1988-1989 in accordance with their terms. SECTION 4. If each and all of the 25 other wholesale custo- mers adopt resolutions suspending the operation of Section 7.02(b) as to water used during FY 1988-1989, but all 25 do not adopt res- olutions suspending the operation of Section 7.02(b) as to water used during FY 1987-1988 as well, this resolution shall be effec- tive to suspend operation of Section 7.02(b) as to water used during FY 1988-1989 only. INTRODUCED AND PASSED: Sep't.eni:)er 26, 1988 AYES: o:>l:i>, Klein, LeYy, Pati'bleci, Renze!, Sutorius, 1tbolley NOES: None ABSTENTIONS: None ABSENT: Bechtel, Flet.dler Dtreftor oUtiie Attorney ':t!et~ce acb 2.