REPORT TO COUNCIL
SUBJECT
Title
Action on Proposed Amendments to Water Supply Agreement with the City and County of San Francisco
Report
BACKGROUND
The San Francisco Public Utilities Commission (the SFPUC) provides wholesale water to the City of Santa Clara via the Hetch Hetchy system. The water supplied is governed by a 2009 Water Supply Agreement (WSA) between the SFPUC, the City of Santa Clara, and 25 other public agencies located in Alameda, San Mateo, and Santa Clara Counties. (A separate, prior agreement was in place between 1984 and 2009.) The Bay Area Water Supply and Conservation Agency (BAWSCA) was formed in 2003 to represent the interests of the retailers served by the SFPUC. These agreements were the result of negotiations between the SFPUC and BAWSCA, as representative of its 26 member agencies, of which Santa Clara is one. Santa Clara also has a seat on the BAWSCA Board of Directors.
As implementation of the 2009 WSA progressed, BAWSCA, representing its member agencies, identified the need for amendments to the Agreement. In September 2018, the Santa Clara City Council granted BAWSCA the authority by resolution (Resolution No. 18-8603) to be its representative in negotiating these amendments. During the negotiating process, BAWSCA gave regular updates to City Attorney's Office and Water & Sewer Utilities' staff regarding the progress of the negotiations. The parties agreed to seven (7) substantive amendments, as well as several non-substantive updates and revisions, mostly to incorporate previously agreed upon modifications. The SFPUC approved these amendments at their regular meeting on December 11, 2018.
DISCUSSION
Staff seeks Council approval of the attached resolution approving the amendments to the 2009 WSA. The amendments approved by the SFPUC after negotiations with BAWSCA include:
(1) Require the SFPUC to adhere to a formal program to engage with BAWSCA on its 10-year CIP development;
(2) Adjust the provisions of the Water Short...
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