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HomeMy WebLinkAbout2001-01-22 City Council (10)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: JANUARY 22, 2000 CMR:113:01 RESOLUTION OF THE COUNCIL OF PALO ALTO APPROVING THE INTERIM WATER SHORTAGE ALLOCATION PLAN PURSUANT TO SECTION 7.03(a) OF THE MASTER CONTRACT WITH SAN FRANCISCO RECOMMENDATION The Utilities Advisory Commission and staffrecommend that Council approve the attached resolution by which the Council of the City of Palo Alto adopts the Interim Water Shortage Allocation Plan pursuant to section 7.03(a) of the Master Contract with San Francisco. BACKGROUND Palo Alto is a member of the Bay Area Water Users Association (BAWUA), whose members are the twenty-nine agencies in the Bay Area which purchase some or all of their water from the City and County of San Francisco. Palo Alto receives water under the terms of a Master Water Sales Contract entered into in 1984 (Master Contract). This Master Contract. expires in 2009. The Master Contract describes how water is allocated during a water shortage. The default method of allocation is based on each agency’s proportional purchase of water from San Francisco during the year immediately preceding the onset of a shortage. This allocation method creates a disincentive to conserve in normal years, because those agencies that use more water prior to a shortage get more water during water shortages. CMR:ll3:01 Page 1 of 4 more water prior to a shortage get more water during water shortages. Section 7.03(a) of the Master Contract allows for the development of a water conservation plan that allocates water between the City and the BAWUA Members (also known as Suburban Purchasers) in times of shortage. If such a plan is adopted by the City and all of the suburban purchasers, it will supersede the default method provided for in the Master Contract. For the past two years, BAWUA has worked with the San Francisco Public Utilities Commission (SFPUC) staff to develop the Interim Water Shortage Allocation Plan (IWSAP) for the remaining years of the Master Contract. Through this process, a water conservation plan of the type enabled by Section 7.03(a) of the Master Contract has been developed. This plan consists of two components: (1) an Interim Water Shortage Allocation Plan between the SFPUC and each of the suburban purchasers (the "Tier One" Plan), and (2) an Interim Water Shortage Allocation Plan among the suburban purchasers only (the "Tier Two" Plan). The IWSAP provides advantages to all agencies that rely on the water system operated by the SFPUC. These advantages include: 1.Removing uncertainty about the regional distribution of water during droughts, thereby allowing both the SFPUC and the suburban purchasers to plan more efficiently for periods of water shortage; 2.Allocating water among individual suburban purchasers through a formula which greatly lessens the disadvantage to those agencies which reduce demand on the SFPUC system through conservation and/or development of alternative sources; and 3. Introducing equity and flexibility into the system of coping with water shortages by allowing both SFPUC and individual suburban purchasers to bank unused allo(ations and/or transfer a portion of their allocations to others. In order to be implemented, the IWSAP must be formally adopted by all 29 BAWUA agencies prior to July 1, 2001. UTILITY ADVISORY COMMISION REVIEW AND RECOMMENDATIONS The Utilities Advisory Commission reviewed the IWSAP at its November 1, 2000 meeting. The UAC, by a unanimous vote (4-0), recommended that the City Council adopt the IWSAP. The UAC had a few clarifying questions and comments regarding the IWSAP. The Commission requested clarification on the difference between the system-wide water use reductions (20 percent) and the average reductions for BAWUA members (23.6 percent). CMR:113:01 Page 2 of 4 Staff explained that the overall IWSAP applies to the "system-wide" water reduction requirement of 20 percent. The system-wide number includes San Francisco water usage. In order to achieve this system-wide reduction, the average BAWUA reduction will be slightly higher at 23.6 percent. The UAC also asked staff to clarify the meaning of an "interim agreement" in the final resolution brought before the City Council and SFPUC. In the context of this plan, the word "interim" means until 2009. The final resolution clearly states that the IWSAP is only valid through 2009 (when the Master Contract expires).. RESOURCE IMPACT There are no additional resources required to adopt the IWSAP. Adopting the IWSAP will assist Palo Alto to plan for, and react to, future water shortages during the next nine years. Approving the attached resolution will reduce the impact of future water shortages on Palo Alto. POLICY IMPLICATIONS The attached IWSAP is consistent with existing City policies. ENVIRONMENTAL REVIEW Adopting the attached resolution does not constitute a project under the California Environmental Quality Act and, therefore, is exempt from the environmental assessment requirement. ATTACHMENTS Bo Do Eo Resolution of the Council of Palo Alto Approving the Interim Water Shortage Allocation Plan Pursuant to Section 7.03(a) of the Master Contract With San Francisco Interim Water Shortage Allocation Plan ("Tier One" Plan) Interim Water Shortage Allocation Plan Among Suburban Purchasers ("Tier Two" Plan) UAC Staff Report - Approval of the BAWUA/SFPUC Interim Water Shortage Allocation Plan (IWSAP) (November 1, 2000) Minutes from the November 1, 2000 UAC meeting PREPARED BY:Kirk Miller, Resource Planner Jane Ratchye, Senior Resource Planner Girish Balachandran, Supply Resource Group Manger CMR:113:01 Page 3 of 4 APPROVED BY: of Utilities CITY MANAGER APPROVAL: AUDREY ~ Assistant to the City Manager ¯ CMR:Page 4 of 4 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF PALO ALTO APPROVING THE INTERIM WATER SHORTAGE ALLOCATION PLAN PURSUANT TO SECTION 7.03(a)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 Maste£ Contract as the ~Suburban Purchasers") which purchase water from the City and County of San Francisco ("San Francisco") pursuant to a Settlement Agreement and Master 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 ava±lable 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 Utilities Cormmission ("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 SEPUC 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 ("BAWU~’), an organization of which all Suburban Purchasers are members; and WHEREAS, these negotiations, and supporting technical analyses, have been conducted with the assistance of BAWUA 010111 syn 0071962 1 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 Interim Water Shortage Allocation Plan ("Plan") developed through this process comprises two components: ¯a ~Tier One" Plan to which the SFPUC and all Suburban Purchasers are parties, which allocates water between ~he SFPUC’s direct City water users and the Suburban Purchasers collectively; and ¯ " a "Tier Two" Plan to which only the Suburban Purchasers are parties, which allocates water among the individual Suburban Purchasers; and 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: 010111 syn 0071962 SECTION i. 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 approvlng 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 AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Utilities 010111 syn 0071962 Attachment-B INTERIM WATER SHORTAGE ALLOCATION PLAN This Interim Water Shortage Allocation Plan ("Plan") describes the method for allocating water between the San Francisco Public Utilities Commission ("SFPUC") and the Suburban Purchasers collectively during shortages caused by drought. The Plan implements a method for allocating water among the individual Suburban Purchasers which has been adopted by the Suburban Purchasers. The Plan includes provisions for transfers, banking, and excess use charges. The Plan applies only when the SFPUC determines that a system-wide water shortage due to drought exists, and all references to "shortages" and "water shortages" are to be so understood. This Plan is adopted pursuant to Section 7.03(a) of the 1984. Settlement Agreement and Master Water. Sales Contract ("Master Contract"). SECTION 1.SHORTAGE CONDITIONS 1.1. Proiected Available.SFPUC Water Suooly. The SFPUC shall make an annual determination as to whether .or not a shortage condition exists. The determination of projected available water, supply shall consider, among other things, stored water, projected runoff, water acquired by the SFPUC from non-SFPUC sources, inactive storage~ reservoir losses, allowance for carryover storage, and water bank balances, if any, described in Section 3. 1.2 Prolected SFPUC Purchases.The SFPUC will utilize purchase data, including volumes of water purchased by theSuburban Purchasers and by Direct City Water Users (as those terms are used in the Master Contract) in the year immediately prior to the drought, along with other available relevant information, as a basis for determining projected system-wide water purchases from the SFPUC for the upcoming year. ¯ 1.3. Shortage Condition~. The SFPUC will compare the available water supply (Section 1.1) with projected system-wide water purchases (Section 1.2). A shortage condition exists if the SFPUC determines that the projected available water supply is less than projected system-wide water purchases in the upcoming Supply Year (defined as the period from July 1 through June 30). When a shortage condition .exists, SFPUC will determine whether voluntary or mandatory actions will be required to reduce purchases of SFPUC water to required levels. 1.3.1 Voluntary Response. If the SFPUC determines that .voluntary actions will be sufficient to accomplish the necessary reduction in water use throughout its service area, the SFPUC and the Suburban Purchasers will make good faith efforts, to reduce their water purchases to stay within their annual shortage allocations and associated monthly wffter use budgets. The SFPUC will not impose excess use ch.arges during periods of voluntary rationing, but may suspend the prospective accumulation of water bank credits, or impose a ceiling on further accumulation of bank Credits, consistent with Section 3.2.1 of this Plan, Attachment 1 -Page I 1.3.2 Mandatory Response. If the SFPUC determines that mandatory actions will be required to accomplish the necessary reduction in water use in the SFPUC service area, the SFPUC may implement excess use charges asset forth in Section 4 of this Plan. 1.4. Period of Shortage. A shortage period commences when the SFPUC determines that a water shortage exists, as set forth in a declaration of water shortage emergency issued by the SFPUC pursuant to California Water Code Sections 350 et seq. Termination of the water shortage emergency will be declared by resolution of the SFPUC. SECTION 2. SHORTAGE ALLOCATIONS 2.1. Annual Allocations between the SFPUC and the Suburban Purchasers. The annual water supply available during shortages will be allocated between the SFPUC and the collective Suburban Purchasers as follows: Level of System Wide Reduction in Water Use Required 5% or less 6% through 10% 11% through 15% 16% through 20% Share of Available Water SFPUC Share 35.5% 36.0% 37.0% 37.5% Suburban Purchasers Share 64.5% 64.0% 63.0% 62.5% The water allocated to the SFPUC shall correspond to the total allocation for all Direct City Water Users as defined in Section 4.01 of the Master Contract. 2.2 Annual Allocations among the Suburban Purchasers. The annual water supply allocated to the Suburban Purchasers collectively during system wide shortages of 20 percent or less will be apportioned among them based on a methodology adopted by all of the Suburban Purchasers, which shall supersede the provisions of Section 7.03(b) of the Master Contract, as contemplated in Section 7.03(a) of the Master Contract. In any year for which the methodology must be applied, the Bay Area Water Users Association ("BAWUA") will calculate each Suburban Purchaser’s individual percentage share of the amount of water allocated to the Suburban Purchasers collectively pursuant to Section 2.1. Following the declaration or reconfirmation of a water shortage emergency by the SFPUC, BAWUA will deliver to the SFPUC General Manager a list, signed by the President of BAWUA’s Board of Directors and its General Manager, showing each Suburban Purchaser together with its percentage share and stating that the list has been prepared in accordance with the methodology adopted by the Suburban Purchasers. The SFPUC shall allocate water to each Suburban Purchaser, as specified in the list. The shortage allocations so established may be transferred as provided in Section 2.5 of this Plan. Attachment 1 - Page 2 The methodology adopted by the Suburban Purchasers utilizes the rolling average of each individual Suburban Purchaser’s purchases from the SFPUC during the three immediately preceding Supply Years. The SFPUC .agrees to provide BAWUA by November 1 of each year a list showing the amount of water purchased by each Suburban Purchaser during the immediately preceding Supply Year. The list will be prepared using Customer Service Bureau report MGT440 (or comparable official record in use at the time), adjusted as required for any reporting errors or omissions, and will be transmitted by the SFPUC General Manager or his designee. 2.3. Limited Applicability of Plan to System Wide Shortages Greater Than Twenty Percent. The allocations of water between the SFPUC and the Suburban Purchasers collectively, provided for in Section 2.1, apply only to shortages of 20 percent or less. The SFPUC and Suburban Purchasers recognize the possibility of a drought occurring which could create system-wide shortages greater than 20 percent despite actions taken by the SFPUC aimed at reducing the probability and severity of water shortages in the SFPUC service area. If the SFPUC determines that a system wide water shortage greater than 20 percent exists, the SFPUC and the Suburban Purchasers agree to. meet within 10 days and discuss whether a change is required to the allocation set forth in Section 2.1 in order to mitigate undue hardships that might otherwise be experienced by individual Suburban Purchasers or Direct City Water Users. Following these discussions,, the water allocation set forth in Section 2.1 of this Plan, or a modified version thereof, may be adopted by mutual written consent of the SFPUC and the Suburban. Purchasers. If the SFPUC and Suburban Purchasers meet and cannot agree on an appropriate allocation within 30 days of the SFPUC’s determination of water shortage greater than 20 percent, then (1) the provisions of Section 7.03(b) of the Master Contract will apply, unless (2) all of the Suburban Purchasers direct in writing that an allocation methodology agreed to by them be used to apportion the water to be made available to the. Suburban Purchasers collectively, in lieu of the provisions of Section 7.03(b): The provisions of this Plan relating to transfers (in Section 2.5), banking (in Section 3), and excess use charges (in Section 4) shall continue to apply during system-wide shortages greater than 20 percent. 2.4. Monthly Water Budgets. Within 10 days after adopting a declaration of water" shortage emergency, the SFPUC will determine the amount of water allocated to the Suburban Purchasers collecti~,ely pursuant to Section 2.1. The SFPUC General Manager, using the percentages shown on the list delivered by BAWUA pursuant to Section 2.2, will calculate each Suburban Purchaser’s individual annual allocationl The SFPUC General Manager, or his designee, will then provide each Suburban Purchaser with a proposed schedule of monthly water budgets based on the pattern of monthly water purchases during the Supply Year immediately preceding the declaration of shortage (the "Default Schedule"): Each Suburban Purchaser may, within two weeks of receiving its Default Schedule, provide the SFPUC with an alternative monthly water budget that reschedules its annual shortage allocation over the course of the succeeding Supply Year. Attachment 1 - Page 3 If a Suburban Purchaser does not deliver an alternative monthly water budget to the SFPUC within two weeks of its receipt of the Default Schedule, then its monthly budget for the ensuing Supply Year shall be the Default Schedule-proposed by the SFPUC. Monthly water budgets will be derived from annual allocations for purposes of accounting for excess use. Monthly water budgets shall be adjusted during the year to account for transfers of shortage allocation under Section 2.5 and transfers of banked water under Section 3.4. 2.5. Transfers of Shortage Allocations. Voluntary transfers of shortage allocations between the SFPUC and any Suburban Purchasers, and between any Suburban Purchasers, will be permitted using the same procedure as that for transfers of banked water set forth in Section 3.4. The SFPUC and the Bay Area Water Users Association (BAWUA) shall be notified of each transfer. Transfers of shortage allocations shall be deemed to be emergency transfers described in Sections 7.05 and 7.07(a) of the Master Contract and shall become effective on.the third business day after notice of the transfer has been delivered to the SFPUC. Transfers of shortage allocations shall be in compliance with Section 7.05 of the Master Contract. The transferring parties will meet with the SFPUC, if requested, to discuss any effect the transfer may have on its operations. SECTION 3. SHORTAGE WATER BANKING 3.1. Water Bank Accounts. The SFPUC shall create a water bank account for itself and each Suburban Purchaser during shortages in conjunction With its resale customer billing process. Bank accounts will account for amounts of water that are either saved or used in excess of the shortage allocation for each agency; the accounts are not used for tracking billings and payments. When a shortage period is in effect (as defined in Section 1.4), the following provisions for bank credits, debits, and transfers shall be in force. A statement of bank balance for each Suburban Purchaser will be included with the SFPUC’s monthly water bills. 3.2. Bank Account Credits. Each month, monthly purchases will be compared to the monthly budget for that month. Any unused shortage allocation by an agency will be credited to that agency’s water bank account. Credits will accumulate during the entire shortage period, subject to potential restrictions imposed pursuant to Section 3.2.1.. Credits remaining at the end of the shortage period will be zeroed out; no financial or other credit shall be granted for banked water. 3.2.1. Maximum Balances. The SFPUC may suspend the prospective accumulation of credits in all accounts. Alternatively, the SFPUC may impose a ceiling on further accumulation of credits in water bank balances based on a uniform ratio of the bank balance to the annual water allocation. In making a decision to suspend the prospectiv.e accumulation of water bank credits, the SFPUC shall consider the available water supply as set forth in Section 1.1 of this Plan and other reasonable, relevant factors. Attachment 1 - Page 4 3.3. Account Debits. Each month, monthly purchases will be compared to the budget for that month. Purchases in excess of monthly budgets will be debited against an agency’s water bank account. Bank debits remaining at the end of the fiscal year will be subject to excess use Charges (see Section 4). 3.4. Transfers of Banked Water. In addition to the transfers of shortage allocations provided for in Section 2.5, voluntary transfers of banked water.will also be permitted between the SFPUC and any Suburban Purchaser, and among the Suburban Purchasers. The volume of transferred water will be credited to the transferee’s water bank account and debited against the transferor’s water bank account. The transferring parties must notify the SFPUC and BAWUA of each transfer in writing (so that adjustments can be made to bank accounts), and will meet with the SFPUC, if requested, to discuss any affect the transfer may have on SFPUC operations. Transfers of banked water shall be deemed to be emergency transfers described in Sections 7.05 and 7.07(a) of the Master . Contract and shall become effective on the third business day after notice of the transfer has been delivered to the SFPUC. If the SFPUC incurs extraordinary costs in implementing transfers, it will give written notice to the transferring parties within ten (10) business .days after receipt of notice of the transfer. Extraordinary costs means additional costs directly attributable to. accommodating transfers and which are not incurred in non-drought years nor simply as a result of the shortage condition itself. Extraordinary costs shall be calculated in accordance with the procedures in the Master Contract and shall be subject to the disclosure and auditing requirements in the Master Contract. In the case of transfers between Suburban Purchasers, such extraordinary costs shall be considered to be expenses chargeable solely to individual Suburban Purchasers and shall be borne equally by the parties to the transfer. In the case of transfers between the SFPUC and a Suburban Purchaser, the SFPUC’s share of any extraordinary transfer costs shall not be added to the Suburban Revenue Requirement. 3.4.1. Transfer Limitations. The agency ~ransferring banked water will be allowed to transfer no more than the accumulated balance in its bank. Transfers of estimated prospective banked credits and the "overdrafting" of accounts shall not be permitted. The price of transfer water originally derived from the SFPUC system is to be determined by the transferring parties and is not specified herein. Transfers of banked water shall be in compliance with Section 7.05 of the Master Contract. SECTION 4. WHOLESALE EXCESS USE CHARGES 4.1. Amount of Excess Use Charges. Monthly excess use charges shall equal the amount charged under the SFPUC’s Schedule W-42, Water Use in Excess of Allotment, which was in effect at the conclusion of the 1986-92 drought, namely: Attachment 1 - Page 5 If Water Purchases Exceed the Shortage Allocation by: Up to 10.00% i0.01% to 20.00% 20.01% or more The Excess Use Charge Multiplier is: 2 8 10 The same excess use charge multipliers shall apply to the Suburban Purchasers and all Direct City Water Users. - The excess use charge multipliers apply only to the charges for water delivered at the rate in effect at the time the excess use occurred. The SFPUC’s agreement to impose the excess use charge multipliers set forth in this section shall not.be construed to limit the SFPUC’s discretion to set water rates for Direct City Water Users set forth in Section 4.01 of the Master Contract, nor to limit the SFPUC’s discretion to adjust the rate schedule and charges applicable to the Suburban Purchasers set forth in Section 5.04 of the Master Contract. 4.2 Monitoring Suburban Water Use. During periods of voluntary rationing, water usage greater than a customer’s allocation (as determined in Section 2) will be indicated on each SFPUC monthly water bill. During periods of mandatory rationing, monthly and cumulative water usage greater than a Suburban Purchaser’s shortage allocation and the associated excess use charges will be indicated on each SFPUC monthly water bill. 4.31 Suburban Excess Use Charge Payments. An annual reconciliation will be made of monthly excess use charges according to the calendar in Section 6. Annual excess use charges will be calculated by comparing total annual purchases for each Suburban Purchaser with its annual shortage allocation (as adjusted for transfers of shortage allocations and banked water, if any). Excess use charge payments by those Suburban Purchasers with net excess use will be paid according to the calendar in Section 6. The SFPUC and the Suburban Purchasers have discussed the possibility of dedicating excess use charges paid by Suburban Purchasers toward the purchase of water from the State Drought Water Bank or other willing sellers in order to provide additional water to the Suburban Purchasers. The parties may continue discussions of this concept in order to develop the accounting and operational details of such a.program. However, unless and until the SFPUC and the Suburban Purchasers agree in writing to an amendment of the Plan to implement such a program, excess use charges paid by the Suburban Purchasers constitute "revenues received from the Suburban Purchasers for the sale of water’" for purposes of Section 5.07 of the Master Contract. SECTION 5. GENERAL PROVISIONS GOVERNING WATER SHORTAGE ALLOCATION PLAN 5.1. Construction of Terms. This Plan is for the sole benefit of the parties and shall not be construed as granting rights to any person other than the parties or imposing Attachment 1 - Page 6 obligations on a party to any person other than another party. 5.2. Governing Law. This Plan is made under and shall be governed by the laws of the State of California. : ’-~:-.: ¯ 5.3. Effect on Master Contract. This Plan describes the method for allocating water between the SFPUC and the collective Suburban Purchasers during system-wide Water shortages of 20 percent or less. This Plan also provides for the SFPUC to allocate water among the Suburban Purchasers in accordance with directions provided by the Suburban Purchasers through BAWUA under Section 2.2, and to implement a program by which such allocations may be voluntarily transferred among the Suburban Purchasers. The provisions of this Plan are intended to implement Section 7.03(a) of the Master Contract and do not affect, change or modify any other section, term or condition of the Master Contract. 5.4. Role of Suburban AdvisoryGroup. Section 8.04 of the Master Contract identifies the Suburban Advisory Group as a forum for ensuring that the Suburban Purchasers are informed of matters affecting the SFPUC water System. Regularly scheduled meetings of the Suburban Advisory Group will be used to ensure that the important information concerning potential water shortages is provided to the Suburban Purchasers for consideration and examination. The parties agree to meet upon request up tO two times per month in order to keep the SFPUC and the Suburban Advisory Group (or a subset of that group) informed of the status of the available water supply and measures, under consideration to alleviate shortage conditions affecting the SFPUC water system. 5.5. Inapplicability of Plan to Allocation of SFPUC System Water During Non- Shortage Periods and to Water Wheeling. The SFPUC’s agreement in this Plan to a respective share of SFPUC system water during years of shortage shall not be construed to provide a basis for the allocation of water between the SFPUC and the Suburban Purchasers when no water shortage emergency, exists. Nor shall this Plan provide any precedent for the transfer, banking, determination of available capacity, or rate to be charged for water proposed to be wheeled through the SFPUC system from non-SFPUC sources by any person or entity under Water Code Section 1810 et seq. 5.6. Termination. This Plan shall expire on June 30, 2009. The SFPUC and the Suburban Purchasers can mutually agree to revise or terminate this Plan prior to that date due to changes in the water delivery capability of the SFPUC system, the acquisition of new water supplies, and other factors affecting the availability of water from the SFPUC - system during times of shortage. Attachment 1 - Page 7 SECTION 6. ALLOCATION CALENDAR 6.1. Annual Schedule. The annual schedule for the shortage allocation process is shown below. This schedule may be changed by the SFPUC to facilitate implementation. 6.1.1 In All Years 1.SFPUC delivers list of annual purchases by each Suburban Purchaser during the immediately preceding Supply Year 2.SFPUC meets with the Suburban Advisory Group and presents water supply forecast for the following Supply Year 3.. SFPUC issues initial estimate of available water supply 4.SFPUC announces potential ftrst year of drought (if applicable) 5.SFPUC and Suburban Advisory Group meet upon request to exchange information concerning water availability and projected system-wide purchases 6.SFPUC issues revised estimate of available water supply, and confirms continued potential shortage conditions, if applicable 7.SFPUC issues final estimate of available water supply 8.SFPUC determines amount of water available to Suburban Purchasers collectively Target Dates November 1 January 1-30 February 1 February 1 February 1-May 31 March 1 March 15 March 15 In Drought Years 9. SFPUC formally declares the existence of water shortage emergency (or end of water shortage emergency, if applicable) under Water Code Sections 350 et. seq. 10.SFPUC declares the need for a voluntary or mandatory response 11.BAWUA submits calculation to SFPUC of individual Suburban Purchasers’ percentage shares of water allocated to Suburban Purchasers collectively 12. SFPUC determines individual shortage allocations, based on BAWUA’ s submittal of individual agency percentage shares to SFPUC, and monthly water budgets (Default Schedule) 13. Suburban Purchasers submit alternative monthly water budgets (optional) 14. Final drought shortage allocations are issued for the Supply Year beginning July 1 through June 30 15. Monthly water budgets become effective. 16. Excess.use charges indicated on monthly Suburban bills 17. Excessuse charges paid by Suburban Purchasers for prior year Target Dates March 15-31 March 15-31 March 15- 31 March 25--April 10 April 8-April 24 May 1 July 1 July 1 (of the beginning year) through June 30 (of the succeeding year) July of the succeeding year Attachment 1 -Page 8 A~tachment-C INTERIM WATER SHORTAGE ALLOCATION PLAN AMONG SUBURBAN PURCHASERS This Interim Water Shortage Allocation Plan ("Tier Two Plan") describes the method for allocating the water made available by the San Francisco Public Utilities Commission ("SFPUC"), during shortages caused by drought, among the Suburban Purchasers. This Plan applies only when the SFPUC determines that a system-wide water shortage due to drought exists,, and all references to "shortages" and "water shortages" are to be so understood. This Plan is adopted pursbant to Section 7.03(a) of the 1984 Settlement Agreement and Master Water Sales Contract between the City and County of San Francisco and the Suburban Purchasers ("Master Contract"). SECTION 1. APPLICABILITY AND INTEGRATION Section 1.1 Applicabili.ty. This Tier Two Plan applies when, and ordy when, the SFPUC determines that a system-wide water shortage of 20 percent or less exists, as set forth in a declaration of water shortage emergency adopted by the SFPUC pursuant to ’ California Water Code Sections 350 et seq. This Tier Two Plan applies ordy to water acquired and distributed by the SFPUC to the Suburban Purchasers and has no effect on water obtained by a Suburban Purchaser from any source other than the SFPUC. Section 1.2 Integration with SFPUC Interim Water Shortage Allocation Plan (Tier One Plan). The SFPUC has adopted an Interim Water Shortage Allocation Plan (Tier One Plan) which, among other things, (a) provides for the allocation by the SFPUC of water between Direct City Water Users (e.g., retail water customers within the City and County of San Francisco) and the Suburban Purchasers collectively during system-wide water shortages of 20 percent or less, (b) contemplates the adoption by the Suburban Purchasers of this Tier Two Plan for allocation of the water made available to Suburban Purchasers collectively among the 29 individual Suburban Purchasers, (c) commits the SFPUC to implement this Tier Two Plan, and (d) provides for the transfer of both "banked" water and shortage allocations between and among the Suburban Purchasers and commits the SFPUC to implement such transfers. This Tier Two Plan is.intended to be integrated with the Tier One Plan described in this Section 1.2. Both Plans becoming operative only if both have been approved by all 29 Suburban Purchasers. Terms used in this Tier Two Plan are intended to have the same meaning as such terms have in the Tier One Plan. SECTION 2. ALLOCATION OF WATER AMONG SUBURBAN PURCHASERS Section 2.1 Annual Allocations Among the Suburban Purchasers. The annual water supply alloc~ted by the SFPUC to the Suburban Purchasers collectively during system-wide shortages of 20 percent or less shall be apportioned among them based on the methodology described in this Section 2.Methodology for Allocating Water Among Suburban Purchasers. The water made available to the Suburban Purchasers collectively will be allocated among them Attachment 2 - Page 1 in proportion to each Suburban Purchaser’s allocation factor, adjusted as described in Section 2.2.4 below. Section 2.1.1 Step One: Determination of Allocation Basis for Each Suburban Purchaser. Each Suburban Purchaser’s Allocation Basis is an amount, expressed in millions of gallons per day (mgd), which in turn is the arithmetic average of three components. Two of these Components are fixed as of the date this Tier Two Plan is adopted; the third component is variable and will be determined when a shortage has been declared by the SFPUC. The first component is (i) the greater of a Suburban Purchaser’s Supply Assurance provided for in the Master Contract or its average purchases from SFPUC during three fiscal years 19967- 987, 19987-998, and 19998-0099, or (ii) in the case of Hayward and Estero Municipal Improvement District, their projected purchases from SFPUC in FY 2010-11 as reported in the 1998-99 Annual Survey published by BAWUA, or (iii) in the case of San Jose and Santa Clara, the limits on purchases from SFPUC set forth on Exhibit M to the Master Contract. The amount of this first component for each Suburban Purchaser is shown on Attachment A-1. The second component is the average of each Suburban Purchaser’s purchases from SFPUC during the fiscal years 19976,987, 19987-998, and 19998-0099. The amount of this second component for each Suburban Purchaser is shown on Attachment A-2. The third component is the average of each Suburban Purchaser’s purchases from SFPUC during the three fiscal years immediately preceding the declaration of water shortage emergency by the SFPUC. Section2.1.2 Step Two: Determination of Allocation Factor for Each Suburban. Purchaser. Each Suburban Purchaser’s Allocation Factor is a percentage derived from .a fraction, the numerator of which is the particular Suburban Purchaser’s Allocation Basis (in mgd) as calculated in Step One and the denominator of which is the sum (in mgd) of all Suburban Purchasers’ Allocation Bases. Section 2.1.3 Step Three: Determination of Initial Shortage Allocation for Each Suburban Purchaser. The initial shortage allocation for each Suburban Purchaser is determined by multiplying the amount of water available to the Suburban Purchasers collectively (determined pursuant to Section 2.1 of the Tier One Plan) by the Suburban Purchaser’s Allocation Factor (i.e., the percentage calculated pursuant to Section 2.2.2). Section 2.1.4 Step Four: Determination of Final Shortage Allocation for Each-Suburban Purchaser. Once the initial shortage .allocations are determined, the percentage reductions from each Suburban Purchaser’s purchases from the SFPUC in the fiscal year immediately preceding the declaration of water shortage emergency will be calculated as a fraction, the numerator of which is the Suburban Purchaser’s initial shortage allocation (determined pursuant to Section 2.2.3), and the denominator of which is the amount purchased from the SFPUC during such fiscal year. The result, as a percentage carried to two places to the right of the decimal, will be subtracted from 100%; the result is the Suburban Purchaser’s percentage reduction. The .percentage reductions for San Jose and Santa Clara will be compared to the highest percentage reduction of the other Suburban Purchasers. If both San Jose’s and Santa Clara’s Attachment 2 - Page 2 percentage reduction is larger than the highest percentage reduction among other Suburban Purchasers, the initial shortage allocations established under Section 2.2.3 will become the final shortage allocations. If either San Jose’s percentage reduction or Santa Clara’s percentage ¯ reduction, or both, is smaller than the highest percentage reduction of other Suburban Purchasers, the shortage allocation (in mgd) of San Jose or Santa. Clara, or both, will be reduced so that the percentage reduction of each is no smaller than that of the otherwise highest percentage reduction. The amount of shortage allocation (in mgd) removed from San Jose and/or Santa Clara will be r~allocated among the remaining Suburban Purchasers in proportion to the initial shortage allocation of each calculated as a fraction the numerator of which is the individual initial shortage allocation and the denominator of which is the sum of the initial shortage allocation for the remaining Suburban Purchasers (not including San Jose and Santa Clara). After such reallocation, the resulting amounts will be the final shortage allocation for each Suburban Purchaser. Section 2.1.5 Example Calculation. Attachment A-3 presents a sample of the calculations involved in Steps One through Four, using the values from Attachments A-1 and A-2 and recent water use data for the other values. It is presented for illustrative purposes only and does not supersede the foregoing provisions of this Section 2.2. In the event of any inconsistency between this Section 2.2 and Attachment A-3, the text of this section will govern. Section 2.2 Calculation of Individual Suburban Purchaser’s Allocations: Directions to SFPUC. The Tier One Plan contemplates that in any year in which the methodology described above must be applied, the Bay Area Water Users Association ("BAWUAv) will calculate each Suburban Purchaser’s individual percentage share of the amount of water made available to the Suburban Purchasers collectively, following the methodology described above. The Tier One Plan requires SFPUC to allocate water to each Suburban Purchaser in accordance with calculations delivered to it by BAWUA. The Tier One Plan requires that each year, the SFPUC will provide to BAWUA by November 1 a list showing the amount of water purchased by each Suburban Purchaser during the immediately preceding Supply Year. The list will be prepared using Customer Service Bureau report MGT 440 (or comparable official record in use at the time), adjusted as required for any reporting errors or omissions, and will be signed by the SFPUC General Manager. Each Suburban Purchaser authorizes BAWUA to perform the calculations required, using water sales data furnished to it by the General Manager of the SFPUC, and to deliver a list of individual Suburban Purchasers’ percentage shares so calculated to SFPUC as contemplated by the SFPUC Plan. Neither BAWUA nor any officer or employee of BAWUA shall be liable to any Suburban Purchaser for .any such calculations made in good faith, even if incorrect. SECTION 3.GENERAL PROVISIONS Section 3.1 Construction of Terms. This Tier Two Plan is for the sole benefit of the parties and shall not be construed as granting fights to any person other than the parties or imposing obligations on a party to any person other than another party. Attachment 2 - Page 3 Section 3.2 Governing Law~ This Tier Two Plan is made under and shall be governed by the laws of the State of California. Section 3.3 Effect on Master Contract: This Tier Two Plan describes the method for allocating water from the SFPUC among the Suburban Purchasers during system-wide water shortages of 20 percent or less declared by the SFPUC. The provisions of this Tier Two Plan, and the SFPUC Tier One Plan with which it is intended to be integrated, are intended to implement Section 7.03(a) of the Master Contract. ~Both the Tier One and Tier Two Plans constitute the water conservation plan contemplated by Section 7.03(a) and supersede the pfovisions of Section 7.03(b). The Plans do not affect, change or modify any other section, term or condition of the Master Contract. Section 3.4 Amendment. This Tier Two Plan may be amended only by written agreement of all Suburban Purchasers. Section 3.5 Termination. This Tier Two Plan shall expire on June 30, 2009. It may be terminated prior to that date only by the written agreement of all Suburban Purchasers. Attachment 2 - Page 4 ATTACHMENT A-1 The amount of the first component for each Suburban Purchaser is shown below. Suburban Purchasers ACWD Belmont Brisbane Budingame Coastside Cordilleras CWS Total Daly City East Palo Alto Estero Guadalupe Hayward Hillsborough Los Trancos Menlo Park Millbrae Milpitas Mountain View North Coast Palo Alto Purissima Hills Redwood City San Bruno Skyline Stanford Sunnyvale Westborough San Jos6 Santa Clara First Fixed Component 13.76 3,89 0.46 ’ 5.23 2.18 0.01 35.39 4.49 2.18 7.23 0.52 24.00 4.09 0.11 4.24 3.15 9.23 13.46 3.84 17.07 1.85 10.93 3.25 0.18 3.03 12.58 1.32 2.68 6.57 Attachment 2 - Page 5 ATTACHMENT A-2 The amount of the second component for each Suburban Purchaser is shown below. Suburban Purchasers ACWD Belmont ¯ Brisbane Burlingame Coastside Cordilleras CWS Total Daly City East Palo Alto Estero Guadalupe Hayward Hillsborough Los Trancos Menlo Park Millbrae Milpitas Mountain View North Coast Palo Alto Purissima Hills Redwood City San Bruno Skyline Stanford. Sunnyvale Westborough San Jos6- Santa Clara Second Fixed Component (m~d) 11.95 3.26 0.30 4.68 1.35 0.01 33.42 4.49 2.10 5.45 0.27 17.56 3.60 0.10 3.43 2.64 6.80 10.36 3.29 12.96 1.85 10.92 2.01 0.16 2.58 10.73 0.98 4.10 4.72 Attachment 2 - Page 6 oooooooooooooooooooooooooo~ oooo ooooooooo oooooooooooooooo oooooooooooooooooooooooooooooooooooooo ¯ Attachment-D MEMORANDUM TO: FROM: AGENDA DATE: SUBJECT: Utilities Advisory Commission Utilities Department November 1, 2000 Approval of the BAWUA/SFPUC Interim Water Shortage Allocation Plan (IWSAP) REQUEST Staff requests the UAC recommend Council approve the attached Interim Water Shortage Allocation Plan (IWSAP) (Attachments 1 & 2) and pass a resolution similar to the draft resolution attached to this memorandum (Attachment 3). EXECUTIVE SUMMARY The San Francisco Public Utilities Commission ("SFPUC") and the Bay Area Water Users Association ("BAWUA") have developed methods for allocating available water during droughts. The recommended Interim Water Shortage Allocation Plan (1WSAP) will set in place two allocation methods to be used during system-wide droughts up to 20 percent. The first method, ("Tier One" Plan) defines how the available water will be shared between SFPUC and the collective BAWUA agencies. (Attachment 1); The second method, ("Tier Two" Plan) defines how the water made available to BAWUA will be allocated among the BAWUA agenciesl (Attachment 2). Staff has made previous presentations to the UAC regarding the IWSAP, including a presentation at the October 4 UAC meeting.. BACKGROUND The 1984 Settlement Agreement and Master Water Sales Contract ("Master Contract") allows for the City and County of San Francisco ("City") and the Suburban Purchasers (also known as BAWUA agencies) to develop a "water conservation plan" which allocates water between them during times of shortages due to drought. The water conservation plan would then supersede the Master Contract’s shortage allocation provisions. Following the last drought, BAWUA and its 1 member agencies began working with the City to develop such ashortage plan that would eliminate the existing contractual penalties to conservation and that would provide a better basis for future planning for the member agencies. In 1998, the concept for developing an Interim Water Shortage Allocation Plan was referred to the Water Resources Committee (which included a representative from Palo Alto). The committee has worked diligently and thoughtfully on the issues associated with the existing contractual mechanism for drought allocations and the development of an alternative mechanism that addresses the identified shortfalls of the existing mechanism. In November 1999, BAWUA hosted a workshop on the IWSAP. At the workshop, BAWUA members confirmed their support for::the development of the IWSAP and identified a set of objectives that would define the development of the IWSAP and the acceptability of the results. At subsequent meetings in March 2000 and June 2000, BAWUA members expressed support for the intra-BAWUA, allocation method that distributes the available water between.BAWUA members; The intra-BAWUA allocation method is incorporated into the Tier 2 portion of the IWSAP (Attachment 2). On September 21, the BAWUA Board unanimously approved the shares between the SFPUC and the Suburban Purchasers collectively included in the IWSAP. On October 20, the BAWUA Board unanimously adopted a resolution recommending adoption of the IWSAP by all BAWUA agencies. DISCUSSION ¯The recommended Interim Water Shortage Allocation Plan (1WSAP) will set in place two allocation methods to be used during system-wide droughts up to 20 percent. The first method, ("Tier One" Plan) defines how the available water will be shared between SFPUC and the collective BAWUA agencies. (Attachment 1); The second method, ("Tier Two" Plan) defines how the water made available to BAWUA will be allocated among the BAWUA agencies. (Attachment 2). The IWSAP will also allow for "banking" and transfer of water during droughts. The IWSAP has been broken into tw~ separate plans to clearly define the SFPUC role. In the Tier One Plan, SFPUC has an active role. In the Tier Two Plan (also known as the Intra-BAWUA Plan) the activities are entirely within the control of the BAWUA agencies and do not involve the SFPUC. The 1WSAP will accomplish four main things: ¯ ’ First, it will establish agreed-upon percentages to be Used during system-wide droughts up to 20 percent that will determine how the available water will be shared between SFPUC and the collective Suburban Purchasers. ¯Second, it will establish an allocation formula that will determine how the 2 available water will be allocated among the individual Suburban Purchasers themselves. Third, itwill allow for "banking" of SFPUC water during droughts by those agencies which use less than their allocation. Lastly, it will allow for the transfer of banked SFPUC water and water allocations amongst the parties, during droughts. The San Francisco Public Utilities Commission ("SFPUC") is expected to adopt the IWSAP Tier One Plan on October 24th. Once all governing bodies of the BAWUA members have also adopted the Tier One and Tier Two Plans, the 1WSAP will supersede the method for allocating shortages among the Suburban Purchasers provided for in Section 7.03(b) of the Master Contract. The remaining step for implementation of the IWSAP is for all 29 BAWUA agencies to adopt the IWSAP by passing a resolution similar to the attached resolution (Attachment 3). A final version of this resolution will be brought to the Palo Alto City Council for its consideration during December 2000. ATTACHMENTS Attachment I - IWSAP - Tier One document Attachment 2 - IWSAP - Tier Two document Attachment 3 - Palo Alto Resolution (draft) PREPARED BY: REVIEWED BY: Kirk Miller, Resource Planner Jane Ratchye, Senior Resource Planner Girish Balachandran, Manager - Supply Resources Group DEPARTMENT HEAD APPROVAL: :tor of Utilities Attachmen~-E Minutes from the November 1,2000 UAC meeting. 2. Approval of the BA WUA/SFPUC Interim Water Shortage Allocation Plan (1WSAP). Ferguson: Let me start with my own short comment on that. I went up with staff to a San Francisco meeting and there .are two items where some clarification on that. i’ll make a motion and insert those clarifying items pending some additional comments here from Kirk. Miller: Yes, I do not have a presentation. What I would like to do is briefly discuss the context and describe some of the status on which I would answer some of your questions, Mr. Ferguson. What we are presenting to you is some of the Tier 1 and Tier 2 parts of the Interim Water Shortage Allocation Plan and Tier 1 is the plan between San Francisco and BAWUA and that’s the main structure of the plan including the bank and the transfer of provisions, and the split of water between San Francisco and BAWUA. The second part is the interim BAWUA plan, It’s essentially how the BAWUA agencies would split up the water among ourselves. Utilities Advisory Comn~ission 11-01-00 Page 13 Thetwo plans go together a~id there’s also the draft resolution which we are also asking that you approve and recommend to Council and that would have-Council approving both the Tier 1. and Tier 2 plan and that would be one of the 29 .BAWUA agencies to approve it. We need all 29 to approve it in order to get the whole thing in effect. The items that would go to Council would be a CMR which will draft the two plans and the f’malized resolution of which you have a draft in your packet. The present status is as Commissioner Ferguson said he did come to the San Francisco PUC on October 24t~ and I’d like to thank him for that. It took his entire afternoon and was very helpful in getting ~pproval from the SFPUC on this item. We have been working at it for a couple of years and it was useful to have him there as a presence from Palo Alto. The SFPUC approved it on a 4 to 1 vote with some minor edits. The edited section is 4.1 which deals with the access use charges and. that is the Tier 1 plan, I believe, which is Page 6 of the handout. They didn’t want to have the actual access use charges included in the Plan. They wanted to leave themselves some flexibility. Subsequent to the vote, staff from BAWUA and San Francisco,. the attorneys have worked out wording that basically eliminates the "numbers but says that the plan would have access use charges that would be developed when they are needed and they would apply equally to the BAWUA agencies and San Francisco. That seems quite acceptable to both BAWUA and San Francisco staff. The issue that remains is what exactly did-the SFPUC approve.. Their secretary had signed off on a resolution that they approve but didn’t attach the plan so BAWUA is working with SFPUC,,staff to make sure that the amended plan gets attached to the SFPUC resolution so that we don’t have to go back to the SFPUC and so that later down theroad there’s no ambiguity so we are. working on that right now through BAWUA. Once that gets resolved, then we would bring the amended Plan, that one minor modification that I mentioned to the Council and that is the present status on that. so what we are requesting is that you recommend to the Council to approve the shortage allocation plan and pass the resolution similar to the one that is attached and that ends my comments and I’m available to answer .any questions that you may have. Ferguson: Any questions from.Commissioners here? Mr. Dawes. Dawes: I so move that the UAC recommend to Council the approval as set forth: in Attachment 3 to the package. Ferguson: Is there a Second? Rosenbaum: Yes. Ferguson: Commissioner Rosenbaum second. We’ll have a vote shortly. I want to make one comment. If staff can weave it in to the resolution. One-of the questions is what does interim mean? I think it may help if we include some definitions on what. interim means. Coming out of our official resolution, it will give it a little focus and impetus to the final negotiation and I am not asking for any change in the motion. I am simply suggesting that we include language like in the resolution on the second page, in Page 14 Utilities Advisory Commission 11-01-00 . . the bullet just above ’now therefore, be it re~olved’, let me propose that the last bullet read, it is quote "interim" close quote in that it remains in effect for less than 9 years, spans only one likely drought cycle, last or. less than half the total term of the master contract, and may be reevaluated concurrently in the December 2009 expiration of the Master Contract. That gives us 4-arguments for selling .this as an interim measure to SFPUC. I will leave that as a staff discussion. Nliller: Okay, we Will look at that. I think we understand the intent of tllis discussion and that was something that was brought up at the SFPUC meeting was the question of what is interim so we can address that in the resolution. - Ferguson: Good. If there are no other comments, Commissioner Rosenbaum, sorry. Rosenbahm: I was curious the example given us for 23.6 average suburban reduction. The agreement isn’t suppose to apply to the reduction over 20%. Miller: .The plan is intended to apply for a system, wide cutback ofno more than 20%. The difference in the water use between San Francisco and BAW-IJA and the historical water use, BAWUA takes .a larger percentage cut than San’ Francisco does and this is reflected in the 23.6% cutback in BAWUA. Rosenba~m: You are saying that this example really corresponds to the 20% system- wide? Fine. All-right, there’s some typos on Page 2 of Attachment to the.years, there’s some extra digits. Miller: Yes, we caught that one already, thank you. Rosenbaum: Good and I would like to comment that Dick Carlson and I went on a BAWUA tour last week and Art Jensen, the Executive Director of BAWUA, was quite complimentary about Rick Ferguson’s comments and appearance and did indeed feel was very helpfu! so thank you for. doing that. Ferguson: I’ll takd a four to one vote any day. Mr. Beecham. Beecham:. I’d like to offer staff the opportunity to explain what Palo Alto’s role has been in getting this agreement to us today? Miller: Our role has been fairly active. This plan has gone through the Water Resources Committee of BAWUA and also the approval through the BAWUA board. We have representatives on the BAWUA board, Jane Ratchie is.on the board and very active and I am presently the Chair of the Water Resources Committee .so a fair amount of Palo Alto’s staff time has been spent on getting this plan in place. ¯ Utilities Advisory "Commission 11-01:00: ¯Page 15 Perguson: One.of the subject at the. PUC meeting was which Commissions had faith in the diligent work that their staff had clone and I voiced faith in the hard work that our staff had done and San Francisco commissioner voted four to one to reflect faith in their own staff work so we try to spin it as a water supply team building effort so I am glad it all worked. Any other c6mments. Vote on the motion, all those in favor - 4 to 0 the motion carries. Let’s move on to, I think its Item 3, the Strategic, Item 2,~ Fm sorry, the Strategic Plan. .