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HomeMy WebLinkAboutRESO 8032RESOLUTION NO. 8032 RESOLUTION OF THE COUNCIL OF PALO ALTO APPROVING THE INTERIM PURSUANT TO WATER SECTION SHORTAGE 7.03(a) ALLOCATION PLAN OF THE SETTLEMENT AGREEMENT AND MASTER WATER SALES CONTRACT WITH THE CITY AND COUNTY OF SAN FRANCISCO WHEREAS, the City of Palo Alto is one of 29 agencies in San Mateo, Santa Clara and Alameda Counties (collectively referred to in the Master Contract as the "Suburban Purchasers") which purchase water from the City and County of San Francisco ("San Franciscoh) pursuant to a Settlement Agreement and Mastei Water Sales Contract entered into on August 8, 1984 ("Master Contract"); and WHEREAS, Section 7.03(b) of the Master Contract provides, in general, that during times when insufficient water ·is available in the San Francisco water system to meet the demands of all users, water will be allocated among the Suburban Purchasers based on each agency's proportional purchase of water from the San Francisco Public Utili ties Commission (" SFPUC") during the year immediately preceding the onset of shortage; and WHEREAS, a problem with the Master Contract method is that it discourages the Suburban Purchasers from taking steps during periods of normal water supply to reduce their purchases from the SFPUC through development of alternative supplies such as recycled water or through demand reduction programs; and WHEREAS, Section 7.03(a) of the Master Contract also allows for the SFPUC and the Suburban Purchasers to negotiate a water conservation plan which allocates water between the SFPUC's retail customers in San Francisco and elsewhere ("direct City water users") and the Suburban Purchasers in times of shortage. If such a plan is adopted by the SFPUC and all of the Suburban Purchasers, it will supersede the method provided for in the Master Contract; and WHEREAS, since November 1998, negotiations between the SFPUC and the Suburban Purchasers and discussions among the Suburban Purchasers have been conducted under the auspices of the San Francisco Bay Area Water Users Association ("BAWUA"), an organization of which all Suburban Purchasers are members; and WHEREAS, analyses, have 010125 syn 0071962 these negotiations, been conducted with 1 and the supporting assistance technical of BAWUA staff, a consulting engineering firm engaged by BAWUA, and BAWUA's Water Resources Committee comprising technical staff of several representative BAWUA member agencies; and WHEREAS, the ("Plan") developed components: Interim through Water this Shortage process Allocation comprises Plan two • a "Tier One" Plan to which the SFPUC and all Suburban Purchasers are parties, which allocates water between the SFPUC's direct City water users and the Suburban Purchasers collectively; and • a "Tier Two" Plan to which only Purchasers are parties, which allocates the individual Suburban Purchasers; and the Suburban water among WHEREAS, the Plan offers several advantages to all agencies which rely on the SFPUC water system, including: • It provides for a pre-determined allocation of water during periods of shortage between San Francisco and the Suburban Purchasers collectively; • It allocates water among individual Suburban Purchasers through a formula which lessens any disincentive for those agencies which reduce demand on the San Francisco system through development of alternative sources or conservation; • It authorizes the "banking" of water savings by those agencies which are able to use less water than the amount allocated; • It creates flexibility by allowing the transfer of a portion of any agency's allocation, as well as of its "banked" water, to other Suburban Purchasers; and • It remains in effect until September 2009, and may be reevaluated at that time, concurrently with the expiration of the Master Contract; and WHEREAS, on October 24, 2000, the SFPUC adopted Resolution No. 00-0244 to approve the Interim Water Shortage Allocation Plan between the SFPUC and the Suburban Purchasers (the "Tier One" Plan); NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: 2 010125 syn 0071962 SECTION 1. The Council hereby approves the Interim Water Shortage Allocation Plan, consisting of both the Tier One and Tier Two Plans, copies of which are attached hereto as Exhibits A and B, respectively. SECTION 2. This approval is conditioned upon (a) the SFPUC and each of the other 29 Suburban Purchasers approving the "Tier One" Plan and (b) all of the other 29 Suburban Purchasers approving the "Tier Two" Plan, such approvals being evidenced through the adoption of similar resolutions or other equivalently binding written commitments, and all such approvals occurring on or before July 31, 2001. If such resolutions or binding commitments are not adopted by that date, this resolution will automatically expire and be of no further effect on July 31, 2001, unless it has been extended prior thereto by further action of this Council. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and no environmental assessment is required. INTRODUCED AND PASSED January 22, 2001 AYES: BEECHAM, BURCH, EAKINS, FAZZINO, KLEINBERG, LYTLE, MOSSAR, OJAKIAN NOES: ABSENT: ABSTENTIONS: AT~~-~ City Clerk APPROVED: APPROV~FORM: Senior Asst. Ci~ney 3 010125 syn 0071962