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7A Page 1 REPC)RT To fih� Honorable Mayor and City Council From the �i Mana er June 22, 2009 SUBJECT Water Suppfy Agreement tINSA) and Individual Vl/ater Saies Contrac#with the City and County of San Francisco. REC4MMENDATION 1. Adopt, by resolution, a reference to San Franc�sco's Cali#ornia Environmen#al Quality Act analysis, appra�al and findings relevant to the process far approval of Water Supply Agreement and lndividuai Water Contrac#s. 2. Approve, by resolution, the Vl/ater Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County and Santa C{ara Counfiy, and authorize the City Manager to execute same. 3. Approve, by resolution, the Indi�idua� Water Sales Contract between the City of Redwood City and the City and County of San Francisco, and authorize the City Manager to execute same. BACKGROUND Vllater purchased fram the San Francisco Regiana! Water System supplies ail of the potable wa#er #or Redwood City. Water is #ransported from #he Hetch-Hetchy Valiey, near Yosemite, through a network of reservoirs, pipelines and pumping stations fio the Bay Area. Water from this saurce remains one of the purest urban water supp[ies in the United Sta#es. This system is operated and managed by the San Francisco Public Utilities Commission {SFPUC}. Entitlements for this regional wafier system, referred to as the "Hetch-He#chy" system, were granted to San Francisco by federal iegis�ation known as the Raker Act of 1913. Aufihared by U.S. Representative John E. Raker of Manteca, and controversial at fihe time, fihe Raker Act a(lowed federal lands in the Sierra iVevada to be used for water supply purposes. Redwood City, as well as many o#her Peninsula and East Bay jurisdictions, has long relied on the Hetch-Hetchy system to meet all, most, or part of their water needs. Redwood City is a member agency of the Bay Area Water Supply and Conservation Agency �BAVIISCA} which was created by the state legislature in 2403 to represent the col�ecti�e interests of #he 27 agencies tha# purchase water from the San Francisco Regional Vllater System operated by the SFPUC. Prior to the formation of BAWSCA, agencies and Wholesale Customers were represen�ed by an organization called Bay Area Water Users Association (BAWUA}. fn '�984, agencies that were Whaiesale Customers collectiveiy negotiated a "Settlement Agreement and Master Water Sales Contract" with the City and Coun#y of San Francisco fvr the delivery of water from the Hetch-Metchy system. Since that time, BAWUA, then fa#er BAWSCA, has functioned as the contract administrator for the water supply provided by the San Francisco Regional 1Nater System to member agencies.