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03/25/2013 RUBLI� UTILiT1ES COMMI��I�N City and Coun�fy of San �ranci�co RE5(7�LUTION NO. 13-0p2� WHEREAS, in Resolution 09-OOb9 the Cornmissiou agpraved the W�ter Supply Agreement between ihe City and County of San Francisco and Whal�sale Customers in Alameda County,San Mateo Caunty and Santa Clara County("Water Supply Agreement"}; and °WI-IEREAS, on April 28, 2009, t�ie t'Vhalesale CusEomers approved die Water Suppty Agreement pursnant to Section 2A3; and WI-IEREAS, the Water Supply Agreement sets forth the terms by which the SFPUC will produce, and the VYholesale Customers will purchuse, water from the Hetch Hetchy Regional Water System for a term af 25-years beguining on July 1,200�; and WHEREAS, Hetch Hetchy Reservair is the saurce for 85�'o af the water producec� on average by fhe Regional Water System and delivered to 2.b millian water users in San Francisco, San Mateo,Santa Clara and Alameda counties; and VYHEREAS, the Water Suppty AgreemenC requires that the Regional Water System be kept in goad working order and repair consistent tivith prudent uti2ity practice and that the SFI'UC will collaborate with the Wholesale Customsrs on how best to address possible impacts to water supply; and WHEREAS, on November 6, 2012, San Frazicisco voters considereti and rejected an initiative ordinance, Progosition F, [hat would have required the City to prepare a two-phase plan evaluating how to drain the Hetch Hetchy Reservoir �nd identifying replac�ment water sources; and WHEREAS, the parties have determined that there is uncertainty as to how th� parties would address changes to the Regional Water System in the event of future abandonment r►r decammissianzng of U'Shaughnessy D�m or draining af Hetch Hetehy Reservoix; and WHEREAS. the parties have negotiate� an amendment to the Water 5upply Agreement to assure existing condition of Hetch Hetchy Reservozr is maintained unless the garties agree to a further amend�nent to the Water Supply Agreement that meets certain conditions; now,therefore, be it RESQLVED, the amendment to the Water Supply Agreement serves a substantial pubIic interest and it is in the interest of the SFPUC to amend the Water 5upply Agreement with the Wt�olesale C�zstamers; and, be it further RESOLVED, ths Commission hereby sutlaorizes the General Manager to negotiate and execute an Amendment to the Water Supply Agreement on behalf of the S�'UC in substantially the form set forth in this Resolution, provided that the ameneiinent is agproved by the Wholesale Custorners pursuant to Water SuppIy Agreement Section 2.03;and be it further RESOLVED, the Cornmission directs staff to take all steps necessary to secure the approval of the Amendment to the Agreement by the V►�holesale Custamers; and recomcuends that the Wholesaie Customers apprave the amendznent to the Agreement. I hereby eertify that the foregaing resal�tlan was adopted by the Public Utilities Commission at its meeting ofJanuary 22, 20j3. �..�'�-.�'�?��-'.� Secret�ary, Public Ut1tlties Commission RESO.#15255 MUFF#304