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HomeMy WebLinkAboutReso - CC - 109-1990RESOLUTION NO. 109-90 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 YEARS 1989-90 AND 1990-91 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. In response, water use during April, May and June 1990 by wholesale customers has been considerably below use during the corresponding months of 1987; and WHEREAS, the mandatory Water Conservation Program is expected to remain in effect until at least May 1991; thus water rationing will be imposed by the SFWD on its wholesale customers for the majority of Fiscal Year 1990-91; and WHEREAS, the Contract provides a methodology by which individual wholesale customer's 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 of the mandatory Water Conservation Program by the San Francisco Public Utilities Commission and the actions by this agency and the other wholesale customers to encourage water conservation. 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) 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 FY1989-90 (i.e., July 1, 1989 - June 30, 1990) and during FY1990-91 (i.e., July 1, 1990 - June 30, 1991). Water usage during these two fiscal years 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 7.02(b) of the Contract shall remain in full force and effect and shall operate -2- without modification as to water used during all years other than FY1989-90 and FY1990-91, commencing with FY1991-92. Section 3. This Resolution shall become effective upon adoption of resolutions of like tenor by each of the 25 other wholesale customers affected by Section 7.02(b) on or before December 31, 1990. If each and all of the other 25 wholesale customers have not adopted a resolution of like tenor by December 31, 1990, then this resolution shall be of no further force or effect and the provisions of Section 7.02(b) of the Contract shall apply to water used during FY1989-90 and FY1990-91 in accordance with their terms. Section 4. If each and all of the 25 other wholesale customers adopt resolutions suspending the operation of Section 7.02(b) as to water used during FY1990-91, but all 25 do not adopt resolutions suspending operation of Section 7.02(b) as to water used during FY1989-90 as well, this resolution shall be effective to suspend operation of Section 7.02(b) as to water used during FY1990-91 only. Vice Mayor� 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 20th day of August ,1990, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BARTON, HARRISON, O-MAHONY, PAGLIARO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: LEMBI If v CITY CLERK V