REPORT TO COUNCIL
SUBJECT
Title
Adopt two Resolutions to Approve the 2025 Amendment to the Water Supply Agreement (WSA) Between the City and County of San Francisco (SFPUC) and the Wholesale Customers in Alameda, San Mateo and Santa Clara Counties and to Approve the Updated Tier 2 Drought Response Implementation Plan
Report
REPORT IN BRIEF
Staff recommends that the City Council (Council):
1. Adopt a Resolution amending the Amended and Restated Water Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa Clara County (WSA) (Attachment 1 to the report). This amendment addresses 3 key areas:
a. Minimum Purchase Requirements: Modifies minimum purchase requirements to align with evolving water supply conditions.
b. Tier 1 Water Shortage Allocation Plan (Tier 1 Plan): Establishes a new method for considering collective Wholesale Customer San Francisco Public Utility Commission (SFPUC) purchases when determining how excess use charges will be applied.
c. Updates: Revisions to address discrete issues that arose over the course of implementing the WSA.
2. Adopt a Resolution approving an updated Tier 2 Drought Response Implementation Plan (Tier 2 Plan) (Attachment 2). The Tier 2 Plan provides the method for allocating water from the San Francisco Regional Water System (RWS) among the Wholesale Customers during periods of shortage caused by drought.
The proposed amendments to the Water Supply Agreement (WSA) include changes to minimum purchase requirements, drought response plans, and administrative updates, with limited financial and operational impacts on the City of Sunnyvale, and some potential benefits in drought scenarios.
* Minimum Purchase Quantities (MPQs): Lowering the MPQs for four wholesale customers subject to MPQs (Alameda County Water District and the cities of Milpitas, Mountain View and Sunnyvale) will result in a modest increase in wholesale water rates-estimated at $0.007 to ...
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