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<br />7A - ATTACHMENT NO.3 <br />Saltworks Proposal- Water Group Summary Report (22 January 2010) Page 55 <br /> <br />3.8.3 Required Agreements and Approvals <br /> <br />OMB's proposal would require approval from multiple public agencies. Such approvals <br />would involve the "exercise of discretion," and would therefore trigger CEQA. The <br />environmental analysis performed by KCWA in 2000-2001 cannot be challenged <br />because the statute of limitations expired long ago. The analysis performed by KCWA in <br />2000-2001 is limited in scope, and does not contemplate the use of the Nickel water for <br />a specific development proposal. For these reasons, KCWA's 2000-2001 analysis <br />cannot be relied upon for purposes of analyzing the impacts of the current proposal. <br />The water team therefore recommends that, in the event the City decides to proceed, <br />the Saltworks EIR should include a robust analysis of OMB's proposed water transfer, <br />particularly because the Saltworks EIR will have to include a Water Supply Assessment <br />(WSA) in any event. <br /> <br />OMB's proposal would require approval from the following public agencies: <br /> <br />. City of Redwood City, <br /> <br />. OWR, <br /> <br />. KCWA, <br /> <br />. Water wholesaler serving as intermediary between SFPUC and OWR, and <br /> <br />. SFPUC <br /> <br />Following is a description of the anticipated approvals by agency. <br /> <br />SFPUC <br />In July 2009, SFPUC entered into a comprehensive water supply agreement with its <br />water wholesalers (Water Supply Agreement). As described in Section 3.3, the City of <br />Redwood City is a party to that agreement, along with numerous other retailers that <br />obtain water from the Hetch Hetchy regional water system. The agreement provides two <br />mechanisms for transferring supplies from one wholesale customer to another: (1) a <br />transfer, and (2) a sale. <br /> <br />Transfers are governed by Section 3.04 of the agreement. Such transfers must be <br />permanent. (SFPUC Water Supply Agreement, 4.03(B).) Sales are governed by <br />Section 3.05 of the agreement. Section 3.05 provides: <br /> <br />"Each Wholesale Customer. . . agrees that it will not sell water purchased <br />from San Francisco to another Wholesale Customer without prior written <br />approval of the SFPUC, except on a temporary and emergency basis as <br />permitted in Section 3.07.B.2. The SFPUC agrees that it will not <br />unreasonably withhold its consent to a request by a Wholesale Customer <br />to deliver water to another Wholesale Customer for resale." <br /> <br />The Water Supply Agreement also states that transfers or sales between wholesalers <br />must be consistent with the "Act." The "Act" is the Raker Act of 1913, 63 Public Law 41. <br />The water team has reviewed the Raker Act to determine whether it would restrict an <br />agreement involving the Nickel water. Section 6 of the Act states that the City and <br /> <br />48 <br />