HomeMy WebLinkAboutReso - CC - 001-1994RESOLUTION No. 1-94
SUSPENDING OPERATION OF SECTION 7.02(b)(3)
OF THE SETTLEMENT AGREEMENT AND MASTER WATER SALES CONTRACT
WITH THE CITY AND COUNTY OF SAN FRANCISCO
FOR FISCAL YEAR 1993-94
AND
ALLOCATING RESIDUAL UNALLOCATED WATER UNDER SECTION 7.0m) (1)
FOR FISCAL YEARS 1994-95 AND THEREAFTER
WHEREAS, the CITY OF_HURLINOpm ("Agency") obtains
water from the San Francisco Water Department ("SFWD"), pursuant
to the terms of a Settlement Agreement and Master Water Sales
Contract ("Settlement Agreement") and a Water Purchase Contract
("Purchase Contract"), each of which was entered into with the
City and County of San Francisco ("San Francisco") in 1984; and
WHEREAS, the Settlement Agreement commits San Francisco to
deliver to Agency, and to other agencies in San Mateo, Santa
Clara and Alameda Counties (collectively referred to as the
"Suburban Purchasers") 184 million gallons per day on a
collective, aggregate basis; and
WHEREAS, the quantity so committed is referred to in the
Settlement Agreement as the "Supply Assurance;" and
WHEREAS, the 1984 Settlement Agreement did not fully
allocate the Supply Assurance.. among the Suburban Purchasers.
Instead, the Settlement Agreement provides that the amount of the
Supply Assurance not already allocated on the basis of historical
usage as of 1984, may, after taking into account water used by
the City of Hayward ("Hayward") and the Estero Municipal
Improvement District ("Estero"), be allocated by agreement among
the Suburban Purchasers themselves. In the absence of such an
overall agreement, Section 7.02(b)(3) of the Settlement Agreement
provides for a periodic allocation based on current usage over
successive three-year periods; and
WHEREAS, the first such triennial allocation occurred in
1988, based on usage during Fiscal Year 1984-85 through Fiscal
Year 1986-87. Thereafter, the Suburban Purchasers have suspended
the operation of the triennial vesting process in order to
support the San Francisco Public Utilities Commission's ("SFPUC")
130615.1 N..bcr 29, 1993
mandatory water rationing program which had been initiated in
response to the drought; and
WHEREAS, even though the drought and mandatory rationing
have ended, the need for conservation continues. The triennial
vesting formula in the Settlement Agreement will continue to act
`as a disincentive to Suburban Purchasers to limit use of SFWD
water since long-term entitlements to such water would be based
on each agency's current, continuing use of it; and
WHEREAS, the San Francisco Bay Area Water Users Association
("Association"), of which Agency is a member, has through a
committee with representatives from differently situated
agencies, studied how this disincentive can be overcome. The
committee has recommended that the Suburban Purchasers agree now
on the final allocation of the remaining portion of the Supply
Assurance. Doing so will remove the disincentive to conservation
of SFWD water and to the development of alternative water sources
inherent in the triennial vesting process; and
WHEREAS, the San Francisco Board of Supervisors has adopted
a policy encouraging the SFPUC to pursue conservation efforts in
cooperation with wholesale water customers (Resolution.No. 740-
89), and the SFPUC has adopted a policy committing itself to work
with the Suburban Purchasers to eliminate aspects of the
Settlement Agreement which serve as disincentives to water
conservation or development of alternative sources of water
(SFPUC Resolution No. 93-0085); and
WHEREAS, Agency endorses these goals and believes the
allocations set forth on Exhibit A reflect equitable principles,
while also allowing for growth in usage by Hayward and Estero
and, to the extent feasible, recognizing specialized
circumstances of particular Suburban Purchasers.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. Subject to the provisions of Section 3 of this
Resolution, the provisions of Section 7.02(b)(3) of the
Settlement Agreement dealing with the allocation of that portion
of the Supply Assurance designated a's "Residual Water" shall be
130615.1 —2— Navombe, 29, 1993
suspended as to water used by Suburban Purchasers during FY 1993-
94 (i.e., July 1, 1993 through June 30, 1994). Water usage
during this period will not be used for any purpose in
determining permanent entitlements of the Suburban Purchasers to
Residual Water.
Section 2. Commencing with FY 1994-95 (i.e., July 1, 1994
through June 30, 1995), pursuant to Section 7.0Z(b)(1) of the
Settlement Agreement, the portion of the Supply Assurance
designated as "Residual Water" shall be allocated as shown an the
table attached to this resolution marked Exhibit A. These
allocations shall remain fixed for the remainder of the Term,
except (a) as prorata reductions may be required pursuant to
Section 7.02(b)(4) as a result of growth in usage by Hayward and
Estero, or (b) if future action by the Suburban Purchasers and
San Francisco allow for the partial transfer of such allocations
among the Suburban Purchasers.
Section 3. This resolution shall become effective if, but
only if, both of the following conditions are met:
(a) Similar resolutions are adopted, or action of
equivalently formal and binding nature is taken, on or before
June 30, 1994, by each of the other 25 agencies listed on
Exhibit A; and
(b) Amendments to the individual Water Purchase
Contracts between San Francisco and both Alameda County Water
District and the City of Mountain view are executed, on or before
December 31, 1994, increasing the limitations on water purchases
in those Water Purchase Contracts from 12.0 MGD on an annual
average basis to 13.76 MGD in the case of Alameda County Water
District and 13.46 MGD in the case of Mountain View, so as to be
consistent with the allocations approved by this resolution.
If both of the foregoing conditions are not met air or before
the applicable dates set forth in Subsections (a) and (b), then
this resolution shall not be effective for any purpose and the
provisions of Section 7.02(b)(3) of the Settlement Agreement
shall apply to water used during FY 1993-94, in accordance with
its terms.
130615.1 —3— D* -.ba 1, 1993
Section 4. The procedure for prorata reduction in vested
individual supply guarantees set forth in Section 2 of
Exhibit K-3 to the Settlement Agreement shall be utilized in the
event that combined water use by the City of Hayward and the
Estero Municipal Improvement District exceeds 28.029 MGD for any
period of three consecutive years. In so doing, the guarantees
shown on Exhibit A shall be deemed to be each Suburban
Purchaser's individual supply guarantee at the end of "vesting
period N-1." The guarantees vested as of June 30, 1987 shall be
deemed to be the individual supply guarantees at the end of '
"vesting period N-2." The guarantees shown on (or provided for
in) Exhibit K-1 to the Settlement Agreement shall be deemed to be
the individual supply guarantees at the end of "vesting period
N-3."
Nothing in this resolution shall constitute an
acknowledgement by Agency that San Francisco is obligated or
entitled to reduce Agency's supply guarantee in the circumstances
described in this section and the provisions of Section
7.02(b)(4) of the Settlement Agreement to that effect are
expressly reaffirmed.
Section 5. Nothing in this resolution is intended to be in
derogation of the reservation of claims by the Suburban
Purchasers to water in excess of the Supply Assurance, which
reservations are contained in Section 7.04 of the Settlement
Agreement.
In addition, this resolution is not intended to alter; amend
or modify Section 9.10 of the Settlement Agreement.
ty, . O `/72
Mayor
0
I, JUDITH A. MALFATTI, 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
19th day of JANUARY ,1994, and was adopted thereafter
by the following vote:
AYES: COUNCILMEMBERS: KNIGHT, O'MAHONY, PAGLIARO, SPINELLI
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: HARRISON
9 Aclty4ci-f
SUBURBAN PURCHASERS' GUARANTEED
QUANTITIES PURSUANT TO SECTION 7.02
(Annual Metered Deliveries)
12/20/93
(1)
(2)
100 Cubic Feet*
M.G.D."•
Alameda County Water District
6,714,065
13.760
Belmont County Water District
1,898,707
3.891
Brisbane, City of
224,435
0.460
Burlingame, City of
2,553,753
5.234
California Water Service Company
17,222,547
35.297
Coastside County Water District
1,061,453
2.175
Cordilleras Mutual Water Association
3,007
0.006
Daly City, City of
2,094,386
4.292
East Palo Alto Water District
1,065,018
2.183
Guadalupe Valley Municipal Improvement District
254,436
0.521
Hillsborough, Town of
1,995,644
4.090
Los Trancos County Water District
52,617
0.108
Menlo Park, City of
2,066,781
4.236
Millbrae, City of
1,538,120
3.152
Milpitas, City of
4,504,533
9.232
Mountain View, City of
6,567,648
13.460
North Coast County. Water District
1,872,928
3.838
Palo Alto, City of
8,331,697
17.075
Palomar Park Water District
45,643
0.094
Purissima Hills Water District
792,832
1.625
Redwood City, City of
5,333,115
10.930
San Bruno, City of
1,583,899
3.246
Skyline County Water District
88,537
0.181
Stanford University
1,479,764
3.033
Sunnyvale, City of
6,138,122
12.580
Westborough County Water District
644,172
1.320
76,127,859
156.021
100 cubic feet equals M.G.D. divided by 0.00000204946
Figures in this column are calculated using unrounded M.G.D. values and are more precise than the
figures listed in column (2).
Total does not equal sum of M.G.D. figures due to rounding.
EXHIBIT A