HomeMy WebLinkAboutRESO 9330Resolution No. 9330
Resolution of the Council of the City of Palo Alto
Approving an Amendment to the Water Supply Agreement
With the City and County of San Francisco
RECITALS
A. The City and County of San Francisco, acting by and through its Public Utilities
Commission, entered into a Water Supply Agreement with Wholesale Customers in Alameda
County, San Mateo County and Santa Clara County in June 2009 (WSA); and
, B. Proposition F, the "Water Sustainability and Environmental Restoration Act"
appeared on the November, 2012 ballot and, if enacted, would have required the City of San
Francisco to evaluate how to drain Hetch Hetchy Reservoir; and
C. The San Francisco Charter acknowledges that the Hetch Hetchy Water System,
including O'Shaughnessy Dam, is an irreplaceable asset such that San Francisco could not drain
Hetch Hetchy Reservoir or abandon or decommission ·O'Shaughnessy Dam absent a Charter
amendment as well as additional regulatory and administrative approvals; and
D. The parties, at the time of entering into the WSA, contemplated that Hetch
Hetchy Reservoir and O'Shaughnessy Dam were both integral parts of the Regional Water
System and were considered Existing Assets as that term is used in the WSA, and were included
in the calculation of the Wholesale Revenue Requirement; and
E. The parties, at the time of entering into the WSA,.also contemplated that the
reliability and quality of the water to be delivered was premised on the shared assumption of
the continued use of Hetch Hetchy Reservoir and O'Shaughnessy Dam as integral components
of the Regional Water System; and
F. The parties, at the time of entering into the WSA, did not contemplate that an
alternate water delivery system created as a result of draining Hetch Hetchy Reservoir, or
abandoning or decommissioning O'Shaughnessy Dam, would be considered part of New
Regional Assets described by the WSA; and
G. The parties now desire to amend the WSA to reaffirm the water reliability and
quality requirements set forth therein, and to acknowledge that Hetch Hetchy Reservoir and
O'Shaughnessy Dam will continue to be used as integral components of the Regional Water
System, unless both San Francisco and the Wholesale Customers approve any alternate water
storage and delivery system to be used for delivery of water under the WSA; and
H. Said amendment to the WSA was approved by the San Francisco Public Utilities
Commission on January 22, 2013 and its General Manager was authorized to execute it,
provided the amendment is approved by the Wholesale Customer~; and
I. The City Manager recommends the approval of the attached amendment.
130308 dm 015004
NOW, THEREFORE, BE IT RESOLVED:
SECTION 1. The attached amendment to the Water Supply Agreement Between the
City and County of San Francisco and Wholesale Customers in Alameda CountY,San Mateo
County, and Santa Clara County (Amendment) is approved.
SECTION 2. The City Manager is authorized and directed to execute the Amendment, in
the form attached hereto, on behalf of the City.
SECTION 3. The Council find that the adoption of this resolution does not meet the
definition of a project under Public Resource Code Section 21065, thus, no environmental
assessment under the California Environmental Quality Act is required.
INTRODUCED AND PASSED: April 15, 2013
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
APPROVED AS TO FORM:
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/J~
Mayor
~YManager
.~~
Directo f u~s
Di rCJel.U~"'~'ILI
Services
ALLISON C. SCHUTTE
PARTNER
DIRECT DIAL 415 995 5823
DIRECT FAX 415 995 3490
E-MAIL aschutte@hansonbridgett.com
June 18, 2013
James Keene, City Manager
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
HansonBridgett
zun ,JUN 2;5
Re: First Amendment to Water Supply Agreement with San Francisco
Dear Mr. Keene:
As promised, I am returning to you a fully executed copy of the First Amendment to the W~ter
Supply Agreement. San Francisco has retained the other executed copy for its files.
Thank you for your assistance with this amendment process. Please let me know if you have
any questions.
Sincerely,
C~ C· ;11~vttL
Allison C. Schutte
ACS:ld
Enclosure
cc: (via electronic mail only)
Nicolas Procos, Water Management Representative
Director Larry Klein.
Hanson Bridgett LLP
425 Market Street, 26th Floor, San Francisco, CA 94105 hansonbridgett.com
5166047.16
WATER SUPPLY AGREEMENT
between
THE CITY AND COUNTY OF SAN FRANCISCO
and
WHOLESALE CUSTOMERS.
in
ALAMEDA COUNTY, SAN MATEO COUNTY AND
. SANTA CLARA COUNTY
AMENDMENT NO.1
TIllS AMENDMENT modifies the Water Supply Agreement between the City and .
County of San Francisco arid Wholesale Customers in Alameda County, San Mateo County and .
Santa Clara County ("Water Supply Agreement"),which is dated July, 2009. .
WHEREAS, the Parties desire to amend the Water Supply Agreement to assure that the
eXisting condition of Heteh Hetchy Reservoir is maintained unless the Parties agree to a further
amendment to the Water Supply Agreement that meets certain conditions; and
WHEREAS, except for those chaIiges expressly specified in this First Amendment, all
other provisions, requirements, conditions, and sections of the Water Supply Agreement shall
remain in full force and effect.
THE PARTIES AGREE to amend the Water Supply Agreement by adding a new
Section 3.18 to Article 3, Water Supply.
4918770.11
Section 3.18 Water Supplv Aareement Amendment Required
. San Francisco may not change the existfu~ ·condition of the Hetch Hetcby
Reservoir by:
(1) abandoning or decommissioning O'Shaughnessy Dam; or
(2) draining Hetch Hetchy Reservoir,e~cept for purposes of (i) repair,
rehabilitation, maintenance, improven;ient, or reconstruction of
O'Shaughnessy. Dam or appurtenances, (ii) supplying water to the Bay
Area during drought, or (iii) meeting water release requirements under the
. Raker Act, or federal or state law,
Unless the parties enter into an amendment to the Water Supply Agreement, in full .
force and effect, adopted in accordance with Section 2.03 .
. The amendment shall state, or restate, as the case may be:
A. The level of service goals for seismic reliability and delivery reliability
adopted by the Commission in conjunction with such proposed changes to
the Regional Water System, provided such goals are at least as protective
of the Wholesale Customers as the level of service goals adopted by the
Commission on October 30,2008 in conjunction with the.WSIP;
B. The level of water quality to be delivered, which is currendy provided for
in Section 3.08, and
C. The specific cost allocation procedures, written as an amendment to
Article 5~ which apply to (1) the abandonment or decommissioning of
O'Shaughnessy Dam, or (2) the draining of Hetch Hetchy Reservoir, and
(3) the development, operation and maintenance of New Regional Assets .
that may be required to replace water supplied by Hetch Hetchy Reservoir
. and delivered to the Bay Area
In the event that the parties are not able to agree upon and approve an amendment
to the Water Supply Agreemen~ as set forth above, San Francisco may not
abandon or decommission O'Shaughnessy Dam or drain Hetch Hetchy Reservoir.
February 5, 2013
IN WITNESS WHEREOF the parties have executed this Amendment by their duly
authorized officers.
CITY AND COUNTY OF SAN FRANCISCO
Acting by and through its Public Utilities
Commission .
By.~c:1!1t-'t=tarJanL. K¥yJ:
General Manager
CITY OF PALO ALTO
Date: _--.,;N~Alj----,_cr...!-· ____ , 2013
Date: __ '-1..:...,!,....Up---!:-_____ ,2013 ,
. Approved by Commission Resolution
No. 13-0022, adopted January 22, 2013
Secretary to Commission
Approved as to form:
DENNIS J. HERRERA
City Attorney
BY:~i.~
Donn W~ Furman
Deputy City Attorney
'" QeputYI\ City Attorney ~Io(' AbSi'.;t.Vi\""
Approved as to content:
Director ~f Ut~~bs
4949213.1