REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Approving the 2018 Amendments to the Water Supply Agreement (WSA) between the City and County of San Francisco (SFPUC) and the Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County.
BACKGROUND
The City of Sunnyvale purchases approximately 50% of its water supply (9 million gallons per day) from the SFPUC's Hetch Hetchy System under the terms of the WSA. The WSA between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County 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 Bay Area Water Supply and Conservation Agency (BAWSCA), a special district that represents the interests of the 26 water agencies that purchase SFPUC water. In the course of implementing the WSA, it became clear to BAWSCA and the SFPUC, that several amendments were needed to address substantive, important, and discrete issues (Attachment 2). These amendments do not diverge from the existing policies and spirit of the WSA and do not change the basic contract structure or concede any of Sunnyvale's rights under the contract.
BAWSCA and SFPUC initially identified eight amendments of the greatest importance to each agency. On September 11, 2018 (RTC No. 18-0630), the City Council adopted a resolution authorizing BAWSCA to negotiate the eight proposed amendments to the WSA with the SFPUC. After 10 weeks of negotiations BAWSCA and SFPUC agreed on seven amendments to the WSA. The eighth amendment on Debt Coverage Ratio (DCR) which was of interest to the SFPUC was dropped.
On December 11, 2018, the SFPUC approved the amended and restated WSA, pending approval by the requisite number of BAWSCA agencies. Eighteen out of t...
Click here for full text