HomeMy WebLinkAboutReso - CC - 023-2022DocuSign Envelope ID: ED37606B-7DDE-4EOB-BE03-6A8D3FB8ED7B
RESOLUTION NO. 023-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING A MINIMUM PURCHASE TRANSFER FROM THE CITY OF MOUNTAIN
VIEW TO THE CITY OF EAST PALO ALTO
WHEREAS, the City and County of San Francisco ("San Francisco") Public Utilities
Commission ("SFPUC" or "Commission") operates the Regional Water System, which delivers
water to water supply agencies in Alameda, San Mateo, and Santa Clara Counties (collectively,
"the Parties"); and
WHEREAS, in April 2003, water supply agencies in Alameda, San Mateo and Santa Clara
Counties (collectively, the "Wholesale Customers") established the Bay Area Water Supply and
Conservation Agency ("BAWSCA"), as authorized by Water Code Section 81300 et seq.; and
WHEREAS, in November of 2018, San Francisco and the Wholesale Customers (the
"Parties") entered into the Amended and Restated Water Supply Agreement ("WSA"); and
WHEREAS, the Parties have identified intra-system water transfers as one potential
solution to long-term water reliability needs among the Wholesale Customers; and
WHEREAS, in 2017, the City of Mountain View ("Mountain View") and the City of East
Palo Alto ("East Palo Alto") were interested in transferring 1.0 million gallons per day ("MGD") of
Mountain View's Minimum Annual Purchase Quantity ("Minimum Purchase") to East Palo Alto;
however, at the time, there was no procedure in the WSA to effectuate such a transfer without
amending the WSA; and
WHEREAS, in 2017, Mountain View and East Palo Alto executed a water rights transfer
agreement in which East Palo Alto agreed to pay Mountain View $5 million for the permanent
transfer of all rights, title, interest to 1.0 MGD of Mountain View's Individual Supply Guarantee
(ISG) to East Palo Alto; and
WHEREAS, in August 2018, BAWSCA and San Francisco provided the Wholesale
Customers a revised Attachment C to the Water Supply Agreement reflecting the updated ISG
amounts for Mountain View and East Palo Alto, as a result of the 1.0 MGD transfer of ISG from
Mountain View to East Palo Alto; and
WHEREAS, Mountain View continues to be subject to a Minimum Purchase of 8.93 MGD
and the financial obligation of paying for imputed sales for the portion of Minimum Purchase that
it does not use; and
WHEREAS, in 2020, Mountain View and East Palo Alto began discussing a possible
future transfer of a portion of Mountain View's Minimum Purchase to East Palo Alto; and
WHEREAS, on January 26, 2021, the SFPUC adopted the 2021 Amended and Restated
Water Supply Agreement ("2021 WSA"), which includes a new procedure by which Wholesale
DocuSign Envelope ID: ED37606B-7DDE-4EOB-BE03-6A8D3FB8ED7B
Customers with ISGs may participate in permanent expedited transfers of a portion of Minimum
Purchase and ISG, without creating new or different risks to the water supply and financial
interests of Wholesale Customers not participating in such transfers; and
WHEREAS, the 2021 WSA has been or will be presented to the governing body of each
Wholesale Customer, and if approved, will permit Wholesale Customers with an ISG to transfer
and accept a portion of another Wholesale Customer's Minimum Purchase, if certain
requirements are satisfied; and
WHEREAS, on April 20, 2021, East Palo Alto approved the conversion of the 1.0 MGD of
Mountain View's ISG sold to East Palo Alto in 2017 into a transfer of up to 1.0 MGD of Mountain
View's Minimum Purchase to East Palo Alto, in increments of 0.25 MGD or other amount, subject
to the City Council's approval of an agreement for each incremental transfer and the approval of
the Wholesale Customers and San Francisco; and
WHEREAS, on June 8, 2021, Mountain View approved the conversion of the 1.0 MGD of
Mountain View's ISG sold to East Palo Alto in 2017 into a transfer of up to 1.0 MGD of Mountain
View's Minimum Purchase to East Palo Alto, in increments of 0.25 MGD, subject to the City
Council's approval of an agreement for each incremental transfer and the approval of the
Wholesale Customers and San Francisco; and
WHEREAS, East Palo Alto and Mountain View are authorized and prepared to execute a
negotiated agreement memorializing the terms and conditions of a 0.25 MGD transfer of Mountain
View's Minimum Purchase to East Palo Alto; and
WHEREAS, as noted below, one of the conditions of the negotiated agreement between
Mountain View and East Palo Alto is that, in exchange for the 0.25 MGD of Minimum Purchase
transfer, Mountain View will provide East Palo Alto with an immediate Right -of -First Refusal for
drought water transfers at the same volume as the Minimum Purchase transfer, pursuant to
Appendix H of the 2021 WSA; and
WHEREAS, in conjunction with consideration of the 2021 WSA, East Palo Alto and
Mountain View propose the Wholesale Customers and San Francisco approve, in advance, the
terms and conditions for converting up to 1.0 MGD of Mountain View's ISG purchased by East
Palo Alto in 2017 into a transfer of 1.0 MGD of Mountain View's Minimum Purchase to East Palo
Alto, in 0.25 MGD increments, if Mountain View and East Palo Alto mutually agree to such
incremental transfers in the future and provided the conditions outlined below are met; and
WHEREAS, if up to 1.0 MGD of Mountain View's ISG purchased by East Palo Alto in 2017
is converted into a transfer of up to 1.0 MGD of Mountain View's Minimum Purchase to East Palo
Alto, up to 1.0 MGD of Minimum Purchase, in 0.25 MGD increments, will be counted towards the
total Minimum Purchase that may be transferred pursuant to Section 3.04.C.1 of the 2021 WSA;
and
WHEREAS, this parallel action continues to require the calculation of a Temporary
Modified Minimum Annual Purchase Quantity, set out in Attachment E-1 in the 2021 WSA;
however, the transferor, Mountain View, is responsible for the imputed sales associated with
DocuSign Envelope ID: ED37606B-7DDE-4EOB-BE03-6A8D3FB8ED7B
transfers to East Palo Alto up to 1.0 MGD, until the terms and conditions outlined below are
satisfied; and
WHEREAS, in accordance with the water transfer provisions of the 2021 WSA, Mountain
View and East Palo Alto will coordinate with San Francisco and BAWSCA to document Temporary
Modified Minimum Annual Purchase Quantities to be included on Attachment E-1, transferred
Minimum Annual Purchase Quantities to be included on Attachment E, when timely, and
amendments to each cities' Individual Water Sales Contract with San Francisco.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council finds as follows:
1. The City Council approves, in advance, the conversion of up to 1.0 MGD of
Mountain View's ISG, sold to East Palo Alto in 2017 into a transfer of 1.0 MGD of
Mountain View's ISG plus up to 1.0 MGD of Mountain View's Minimum Purchase to
East Palo Alto, in 0.25 MGD increments, if all of the following terms and conditions are
satisfied:
a. Mountain View will transfer up to 1.0 MGD of its Minimum Purchase to East
Palo Alto, in increments of 0.25 MGD, subject to the Mountain View City
Council's and the East Palo Alto City Council's approval of an agreement for
each incremental transfer.
b. For each incremental transfer, a Temporary Modified Minimum Annual
Purchase Quantity will be calculated for East Palo Alto that is equal to the City's
five-year average water use from the SFPUC for the most recent non -drought
years prior to the 2017 ISG purchase, plus the incremental transfer amount(s).
c. For each incremental transfer, Mountain View will maintain, and be responsible
for paying any imputed sales for, its Minimum Purchase requirement in effect
at that time, as set forth in Attachment E of the WSA, including up to 1.0 MGD
ISG transfer to East Palo Alto, until East Palo Alto's water use meets the
Temporary Modified Minimum Annual Purchase Quantity for three consecutive
years.
d. East Palo Alto will not be required to pay imputed sales associated with the
Temporary Modified Minimum Annual Purchase Quantity for any incremental
transfer of the 1.0 MGD of Mountain View's Minimum Purchase requirement.
e. For each incremental transfer, once East Palo Alto has met the Temporary
Modified Minimum Annual Purchase Quantity for three consecutive years, the
incremental portion of Mountain View's Minimum Purchase transferred to East
Palo Alto will become East Palo Alto's Minimum Purchase, and Mountain
View's Minimum Purchase will be reduced by an equivalent amount. East Palo
Alto's new Minimum Purchase will be included in Attachment E and both cities'
Individual Water Sales Contracts will be updated to reflect this transfer.
DocuSign Envelope ID: ED37606B-7DDE-4EOB-BE03-6A8D3FB8ED7B
f. With exception of the incremental transfers that are the subject of this
resolution and the agreement between East Palo Alto and Mountain View
described herein, any additional transfers of Minimum Purchase, either from
another Wholesale Customer or from Mountain View in excess of the 1.0 MGD,
are subject to Section 3.04 of the 2021 WSA.
Ricardo Ortiz, Mayor
I, MEAGHAN HASSEL-SHEARER, City Clerk of the City of Burlingame, do hereby certify that the
foregoing Resolution was introduced at a regular meeting of the City Council held on the 21" day
of March, 2022, and was adopted thereafter by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, O'BRIEN KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Auaew.,,ss�/-Sc�a
Meaghan Hassel -Shearer, City Clerk