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HomeMy WebLinkAboutReso - CC - 064-1991RESOLUTION NO. 64 - SUSPENDING OPERATION OF SECTION 7.02(b) OF SETTLEMENT AGREEMENT AND MASTER WATER SALES CONTRACT WITH THE CITY AND COUNTY OF SAN FRANCISCO FOR FISCAL YEAR 1991/92 WHEREAS, CITY OF BURLINGAME obtains water from the San Francisco Water Department (SFWD), pursuant to the terms of a Settlement Agreement and Master Water Sales Contract with the City and County of San Francisco (Contract) and a Water Purchase Contract with the San Francisco Public Utilities Commission, each of which was entered into in 1984; and WHEREAS, the San Francisco Public Utilities Commission, on May 8, 1990 declared a water shortage emergency and adopted a mandatory Water Conservation Program, including water rationing and excess use charges. The goal of the mandatory Water Conservation Program is to reduce significantly the consumption of water supplied by the SFWD within its service area; and WHEREAS, on February 26, 1991 and April 23, 1991 the San Francisco Public Utilities Commission concluded that a water shortage emergency condition continued, as a result of a fifth consecutive year of below -normal precipitation; and WHEREAS, the mandatory Water Conservation Program is expected to remain in effect until at least spring 1992; thus, water rationing will be imposed by the SFWD on its wholesale customers for the majority of fiscal Year 1991/92; and WHEREAS, the Contract provides a methodology by which individual wholesale customers' entitlements to the overall Supply Assurance made by San Francisco are determined. Unless the wholesale customers otherwise agree, this determination is based on water usage by individual wholesale customers; and WHEREAS, the provisions of the Contract which determine permanent entitlements to a portion of the overall Supply Assurance based on water used are not compatible with efforts by all the wholesale customers to reduce consumption of SFWD water. They should, therefore, be suspended in response to the enactment and continuation of the mandatory Water Conser- vation Program by the San Francisco Public Utilities Commis- sion and the actions by this agency and the other wholesale customers to encourage water conservation. -1- NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. Subject to the provisions of Section 3 of this Resolution, the provisions of Section 7.O2(b) of the Contract dealing with the allocation of that portion of the Supply Assurance designated as "suburban allocable water" shall be suspended as to water used by wholesale customers during Fiscal Year 1991/92 (i.e., July 1, 1991 - June 30, 1992). Water usage during this fiscal year will not be used for any purpose in determining permanent entitlements of the wholesale customers to suburban allocable water. Section 2. In all other respects, Section 7.O2(b) of the Contract shall remain in full force and effect and shall operate without modification as to water used during all years other than Fiscal Year 1991/92, commencing with Fiscal Year 1992/93. Section 3. This Resolution shall become effective upon adoption of resolutions of like tenor (or other similar action) by each of the 25 other wholesale customers affected by Section 7.O2(b) on or before December 31, 1991. If each and all of the other 25 wholesale customers have not adopted a resolution of like tenor (or taken other similar action) by December 31, 1991, then this Resolution shall be of no further force or effect and the provisions of Section 7.O2(b) of the Contract shall apply to water used during Fiscal Year 1991/92 in accordance with their terms. I, JUDITH A. MALFATTI, City Clerk of the City of Burlin- game, certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the 1st day of July 1991, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BARTON, HARRISON, LEMBI, O'MAHONY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: PAGLIARO ?e6911 City Cler -2-