HomeMy WebLinkAboutReso - CC - 025-2013RESOLUTION NO. 25-2013
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT
TO THE WATER SUPPLY AGREEMENT
WITH THE CITY AND COUNTY OF SAN FRANCISCO
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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 a New
Regional Assets described by the WSA; and
WHEREAS, 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
WHEREAS, 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 Customers; and
4948723.3
WHEREAS, the City Manager recommends the Council approve the attached amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME
RESOLVES AS FOLLOWS:
1. The City Council hereby approves the 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 in the form attached hereto as Exhibit "A".
2. The Mayor is hereby authorized and directed to execute the Amendment, in the
form attached hereto as Exhibit "A", on behalf of the Ci kLk
Ann keigl&l
Mayor
I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the
foregoing Resolution was introduced at a regular meeting of the City Council on the 18th day of
March, 2013, and was adopted thereafter by the following vote:
AYES: Councilmembers: BAYLOCR,BROWNRIGG,DEAL, KEIGHRAN, NAGEL
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
(LV4 & �
Mary Ell n Kearney, City Clerk
4948723.3
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
THIS AMENDMENT modifies 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 ("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 Hetch 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 changes 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 Supply Agreement Amendment Required
San Francisco may not change the existing condition of the Hetch Hetchy
Reservoir by:
(1) abandoning or decommissioning O'Shaughnessy Dam; or
(2) draining Hetch Hetchy Reservoir, except for purposes of (i) repair,
rehabilitation, maintenance, improvement, 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 currently 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 Agreement 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 CITY OF BURLINGAME
Acting by and through its Public Utilities A Public Corporation
Commission
By: By:
Harlan L. Kelly, Jr. Ann Keighran
General Manager Mayor
Date: .2013 Date
Approved by Commission Resolution
No. 13-0022, adopted January 22, 2013 ATTEST:
Donna Hood Mary Ellen Kearney
Secretary to Commission City Clerk
Approved as to form: Approved as to form:
DENNIS J. HERRERA
City Attorney
Donn W. Furman
Deputy City Attorney City Attorney
2013
4949213.1