Legislative Public Meetings

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File #: 18-0630   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 9/11/2018
Title: Adopt a Resolution Appointing the Bay Area Water Supply & Conservation Agency as the City's Authorized Representative to Negotiate Amendments to the 2009 Water Supply Agreement with San Francisco Public Utilities Commission
Attachments: 1. Resolution, 2. 2009 Water Supply Agreement, 3. Proposed WSA Amendments
REPORT TO COUNCIL

SUBJECT
Title
Adopt a Resolution Appointing the Bay Area Water Supply & Conservation Agency as the City's Authorized Representative to Negotiate Amendments to the 2009 Water Supply Agreement with San Francisco Public Utilities Commission

Report
BACKGROUND
The City of Sunnyvale purchases approximately 50% of its water supply from the San Francisco Public Utilities Commission's (SFPUC) Hetch Hetchy System under the terms of the 2009 Water Supply Agreement (WSA). The WSA was approved by the City Council on June 9, 2009 (RTC No. 09-154) and is set to expire in 2034. The WSA delineates the terms under which the City purchases water, including water supply quantity and water quality, and all aspects of the SFPUC rate-setting process.
The City is a member of the Bay Area Water Supply & Conservation Agency (BAWSCA), a special district that represents the interests of the 26 water agencies that purchase water from SFPUC. In 2006, the member agencies delegated authority to BAWSCA to negotiate the WSA. On April 9, 2013, the Council approved Amendment No. 1 to the WSA (RTC No. 13-083), which prohibited changes to the Hetch Hetchy Reservoir unless there is an amendment to the WSA. On August 12, 2014 (RTC No. 14-0728), the City Council delegated authority to BAWSCA to initiate, defend and settle arbitration related to the WSA.
Currently some sections of the WSA require an amendment to address substantive and important issues that have arisen during implementation of the Agreement; however, these amendments do not diverge from the existing policies and spirit of the WSA. BAWSCA has requested that Sunnyvale along with the other member agencies consider delegating to BAWSCA the authority to negotiate amendments to the WSA with the SFPUC. Any such amendments will return to Council for consideration and approval before being enacted. The amendments must be approved by at least 18 of the 26 member agencies, and further these agencies must have purchased a minimu...

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