AgdaPkt 2018-09-10 Joint SA PFA - Laserfiche WebLink

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6.3.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager September 10, 2018 SUBJECT Delegation of Authority to the Bay Area Water Supply and Conservation Agency to Negotiate with San Francisco to Amend the Water Supply Agreement RECOMMENDATION Adopt a Resolution Authorizing the Bay Area Water Supply and Conservation Agency to Negotiate with the City and County of San Francisco to Amend the Water Supply Agreement with Wholesale Water Agencies BACKGROUND The City of Redwood City purchases water from the San Francisco Regional Water System (RWS) and is one of the 26 members of the Bay Area Water Supply and Conservation Agency (BAWSCA). In 2006, the BAWSCA member agencies delegated authority to BAWSCA to negotiate the Water Supply Agreement between San Francisco and the Wholesale Customers (WSA). The WSA was subsequently approved by the City of Redwood City. The City of Redwood City also approved Amendment No. 1 to the WSA in 2013 which prohibited changes to Hetch Hetchy Reservoir unless there is an amendment to the WSA. In 2014, the City of Redwood City delegated authority to BAWSCA to initiate, defend and settle arbitration related to the WSA. When the prior agreement, the 1984 Master Contract and Settlement Agreement (1984 Agreement) was negotiated, there was no durable, representative organization that could be delegated the responsibility to act as the agent for contract administration on behalf of the Wholesale Customers. BAWSCA's predecessor, the Bay Area Water Users Association (BAWUA) was, at that point, simply an unincorporated association governed entirely by city and water agency staff. For that reason, the 1984 Agreement provided for initiation of arbitration as well as a variety of administrative decisions to be made by five "Suburban Representatives": agencies to be chosen by all BAWUA members or, absent a selection, the five largest agencies. Annually, through the term of the 1984 Agreement, the Suburban Representatives were required to make such administrative decisions and, several times, to initiate arbitration.