HomeMy WebLinkAboutRESO 9445Resolution No. 9445
Resolution of the Council of the City of Palo Alto Authorizing the Bay
Area Water Supply and Conservation Agency to Initiate, Defend and
Settle Arbitration Related to the Water Supply Agreement with the
City and County of San Francisco
RECITALS
A. In April 2003, the City of Palo Alto (City) and other water suppliers in Alameda,
San Mateo and Santa Clara counties established the Bay Area Water Supply and Conservation
Agency (BAWSCA) as authorized by Water Code Section 81300 et seq. pursuant to State
legislation enacted in 2002 (AB 2058).
B. The City is represented on the BAWSCA Board of Directors.
C. The City Council has previously approved 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 (Agreement.
D. The Agreement specifically delegates, pursuant to Section 8.04.A., Wholesale
Revenue Requirement review to BAWSCA.
E. All questions and disputes related to the Agreement are subject to judicial
determination, except for the following matters, speCified in Section 8.01.A., which are subject
to mandatory, binding arbitration: (1) the determination ofthe Wholesale Revenue
Requirement, (2) San Francisco Public Utilities Commission's (SFPUC's) adherence to accounting
practices and conduct of the Compliance Audit, and (3) the SFPUC's classification of new assets
for the purposes of determining the Wholesale Revenue Requirement.
F. The Agreement, pursuant to Section 8.04.C., provides that the Wholesale
Customers may, with the consent of BAWSCA, delegate the authority to initiate, defend and
settle arbitration of the matters provided for in Section 8.01.A. set forth above.
G. The BAWSCA Board of Directors has requested that the City delegate this
authority to initiate, defend and settle arbitration solely for those limited matters in the
Agreement that must be resolved through binding arbitration in order to protect the financial
interests of the Wholesale Customers by ensuring they pay no more than their fair share of
regional water system costs.
H. BAWSCAhas the capabilities required to serve in this capacity by virtue of the
expertise and qualifications of BAWSCA staff and consultants in relevant disciplines including
civil engineering, water supply planning, finance, economics, accounting, and law.
I. BAWSCA will also finance the costs associated with such binding arbitration.
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