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HomeMy WebLinkAboutStaff Report 341-07City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: SEPTEMBER 10, 2007 CMR:341:07 APRIL-JUNE 2007 REPORT ON PROGRESS OF NEGOTIATIONS FOR A NEW WATER AGREEMENT BETWEEN SAN FRANCISCO AND BAWSCA AGENCIES This is an informational report and no Council action is required. BACKGROUND 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 prolnised to prepare quarterly reports on the progress of the negotiations. The second such report, produced on August 1, 2007, is attached. ATTACHMENT April-June 2007 Report on Progress of Negotiations for a New Water Agreement between the City and County of San Francisco and BAWSCA agencies PREPARED BY:JANE RATCHYE Assistant Director, Resource Management, Utilities DEPARTMENT HEAD: CITY MANAGER APPROVAL: VALERIE p. F.O~G Director of Utilities EMILY~ HARRISON Assistant City Manager CMR:341:07 Page 1 of 1 Fixed entitlements (individual agencies’ supply assurances) and fiee transferability among BAWSCA members -- San Francisco was more comfortable discussing the objective of fixed entitlements and creating a contractual basis I"or trading portions of entitlements. This objective is supported by environmental interests. More work has been conducted on this item, and it wilt be advanced this ~11. Water measurement -- In late May we presented an updated section on water measurement, a key subject related to the allocation of costs and the setting of water rates. Several items have been resolved, although final agreement will not be reached until other issues have been addressed. Capital cost recovery -- In June we began discussing capital cost repayment methodologies. San Francisco is to present its findings in August, and the topic is scheduled to be discussed through the end of this calendar year. Progress expected during next quarter (July - September) We have put a specific proposal for water quality commitments from San Francisco on the table and expect discussions to continue, probably in a smaller "working group" setting. We also submitted a specific proposal on SFPUC maintenance responsibilities and expect that it will be the subject of continuing discussions in a working group. Finally, 1 expect detailed discussions to begin on: o Calibration and repair oFSFPUC regional water system meters o Post-earthquake distribution of water o O&M and capital cost allocation A~-tbm" R..lensen, Genelal Mana,,e~. ’ g - Bay Area Water Supply & Conservation Agency August 1. 2007