HomeMy WebLinkAboutStaff Report 295-07TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: UTILITIES
JULY 16, 2007 CMR:295:07
APRIL 2007 REPORT ON PROGRESS OF NEGOTIATIONS FOR A NEW
WATER AGREEMENT BETWEEN SAN FRANCISCO AND BAWSCA
AGENCIES
This is an information report and no Council action is required.
REPORT
On September 11. 2006, Council authorized the Bay Area Water Supply and Conservation
Agency (BAWSCA) to negotiate on behalf of the City for a water services agreement with the
City and County of San Francisco[CMR:341:06]. BAWSCA promised to prepare quarterly
reports on the progress of the negotiations. The first such report, produced at the end of April
2007, is attached.
ATTACHMENT
April 2007 Report on Progress of Negotiations for a New Water Agreement between the City
and County of San Francisco and BAWSCA agencies
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
JANE tLa_TCHYE, Sr. Resource Plamaer
Director oY Utilities
"~"
EMILY t(t~RI ~; 6-N
Assistant City* Manager
CMR:295:07 Page 1 of 1
Report on Progress of Negotiations for
a New Water Agreement between the
City and County of San Francisco and BAWSCA Agencies
April 2007
This is the first progress report on the negotiation process, covering the period ending April 24, 2007.
Furore progress reports will be provided on a quarterly basis. Each report will summarize
developments during the preceding three calendar months and describe the activities expected during
the ensuing three months. You can expect the next report in early July.
Results achieved during the last quarter
In his July 31, 2006 letter to each agency Bern Beecham noted,
"BAWSCA would like to begin discussions/negotiations with San Francisco soon after the Prodam
Environmental Impact Report [PEIR] on the $4.3 billion Water Supply Implementation Plan is
released in draft. That’s expected to happen in October or November of this year."
While San Francisco postponed completion of the draft PEIR until June 2007, the BAWSCA
negotiating team has already met with Michael Carlin, the SFPUC’s Assistant General Manager for
Water and the representative appointed by Susan Leal, and the other members of the SFPUC
negotiating team. The first meeting was held on Januao* 12. Other meetings were held in Febmal3*
and April.
To date, agreements have been reached on:
1.The overall schedule for completing negotiations
2.The mechanics of the negotiating process
3.Timely exchange of materials betaveen meetings
4.The process for ongoing exchange of technical documents
5.The order in which matters of substance will be addressed
We have agreed on a completion date of June 30, 2009, by which time all agreements should be
formally adopted by all agencies. The final draft agreement should be available in late fall of 2008.
All parties will have time to review the final agreement prior to action. San Francisco would act first
in Janums’ 2009. This schedule provides sufficient time for all BAWSCA agencies to consider the
a~eement and take action prior to the deadline.
At the April meeting we discussed BAWSCA agencies’ goals and objectives for the agreement and
San Francisco’s interests, as well as the order in which specific topics will be taken up.
Progress has been disappointingly slower than anticipated, due in part to illness of key individuals.
Time has also been consumed resolving important but procedural matters. The procedural
foundation is now in place and attention can turn to matters of substance: water reliabilib~, water
quali~’ and cost.
!55 Bovet Road. Suite 302. o San Mateo, CA 94402 o ph 650 349 3000 o ~: 650349 8395 ¯w~.@w.bawsca.org
April 2007 Quarterly Report
Page 2
Prggr~,ss expected durin~ the next quarter
We’ve agreed to take up reliability objectives beginning in May. In late May we will present the
analyses of oppo~mnities to simpli~, contract administration and the data that are fundamental to the
allocation of costs between San Francisco and the BAWSCA agencies. In June we will take up
capital cost repayment methodologies.
Activities prior to the first meetin~ with San Francisco
In July 2006, BAWSCA asked each of the 27 agencies for formal authorization to represent their
interests in negotiating the new water agreement. By the end of October, eve~ai agency had named
BAWSCA as its authorized negotiator.
On October 30, 2006, I wrote to the San Francisco Public Utilities Commission General Manager,
Susan Leal, and its president, Richard Sklar to initiate negotiations. My letter stated the agencies had
authorized BAWSCA to be their negotiator, cited the agencies’ goals for the agreement, and
suggested an initial meeting be convened promptly.
At the same time, Bern Beecham, then chair of BAWSCA, wrote to Mayor Gavin Newsom inviting
his leadership to ensure that the negotiations produced a fair agreement for all of the customers of the
regional water system. In November, Senator Elaine Alquist and Assemblymembers Ira Ruskin and
Sally Lieber also wrote to the Mayor asking for his leadership and emphasizing the importance of the
new agreement to their constituents.
In his responses to Bern and the Legislators, Mayor Newsom pledged to "work to ensure that
negotiations are constructive, fair and responsive to the needs of the regional water users" and
reiterated San Francisco’s commitment to ensurm~ a safe and reliable water supply for all Hetch
Hetchy customers."
Art Jensen, BAWSCA’s lead negotiator, assembled a team including Nicole SandkuIla, Senior Water
Resources Engineer; John Ummel, Senior Adminisnative Analyst; Ben Pink, Water Resources
Planner; Ray McDevitt, Hanson Bridgett Marcus Vlahos & Rudy, LLP; Bud Wendell, Wendell
Associates; David Brodsly, Kelling, Nm~hcross, Nobriga; John Farnkopf, HF&H Consultants; John
Gust, Public Resources Advisory Group; Jeff Pearson, CPA, Burr, Pilger and Mayer, LLP; and Allan
Richards, Stetson Engineers. Members of this ~-oup reviewed relevant documents and prepared
analyses of data used for cost allocation and opportunities to simpli~; contract administration.
A~hur R. Jensen, General Manager
Bay Area Water Supply and Conservation Agency
April 26, 2007