AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Water Enterprise
AGENDA NO.
7 MEETING DATE
March 26, 2024
Approve the Third Amendment to the California Water Service Company Individual Water Sales Contract Regular Calendar
Project Manager: Steven Ritchie
Approve the Third Amendment to the California Water Service Company Individual Water Sales Contract
Summary of
Proposed
Commission
Action:
Approve the expansion of California Water Service Company’s (Cal Water) Bear Gulch District service area due to the acquisition of Kings Mountain Park Mutual Water Company (Kings Mountain); and approve the Third Amendment of the Individual Water Sales Contract between the City and County of San Francisco (San Francisco) and Cal Water, in accordance with section 3.03.B of the 2021 Amended and Restated Water Supply Agreement.
Background: Water Supply Agreement
On April 28, 2009, by Resolution No. 09- 0069, this Commission approved the Water Supply Agreement between San Francisco, by and through its San Francisco Public Utilities Commission (SFPUC), and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County, pursuant to which San Francisco sells potable water to 26 wholesale customers, including Cal Water. On January 26, 2021, by Resolution No. 21- 0009, the Commission approved the 2021 Amended and Restated Water Supply Agreement, which was subsequently approved by the governing bodies of each wholesale customer and executed by all parties to the Water Supply Agreement as of January 2023.
Individual Water Sales Contracts
Section 9.01 of the Water Supply Agreement requires each wholesale customer to enter into a new individual w
ater sales contract with San Francisco. The
individual water sales contracts describe the service area of each wholesale customer, identify the location and size of connections between the Regional Water System and the wholesale customer, as well as interc onnections with neighboring water systems and provisions unique to the particular wholesale customer. An individual water sales contract may be amended with the written concurrence of San Francisco and the wholesale customer that is party to it under Section 2.03.D of the Water Supply Agreement.
On July 1, 2009, San Francisco and Cal Water entered into an individual water sales Contract (Cal Water Contract), as authorized by SFPUC Commission Resolution No. 09- 0069, dated April 28, 2009, and the Cal Water B oard of Directors on May 27, 2009.
Agenda Title: Approve the Third Amendment to the California Water Service Company Individual Water Sales Contract
Commission Meeting Date: March 26, 2024
Wholesale Customer Service Areas
Section 3.03.B of the Water Supply Agreement requires each wholesale customer to request San Francisco’s consent to an expansion of its service area. Section
3.03.D provides that San Francisco and a wholesale customer may agree to limit the size of a wholesale customer’s service area.
Due to Cal Water’s status as an investor -owned utility and the requirement that Hetch Hetchy water be sold only to publicly owned utilities in section 6 of the 1913 Raker Act (38 Stat. 242), section 9.02.A of the Water Supply Agreement provides that the total quantity of water delivered by San Francisco to Cal Water cannot exceed 47,400 acre feet per year, which is the estimated average annual production of water from the SFPUC’s Peninsula and Alameda Creek Watershed sources. Average annual supply of water from local system reservoirs exceeds Cal Water’s current “Individual Supply Guarantee” of 35.68 million gallons per day. The available supply of water from SFPUC local watersheds is sufficient to supply Cal Water. The small additional demand of the service area of the Kings Mountain Park Mutual Water Company (Kings Mountain) system that Cal Water is acquiring as described below (approximately 1.16 million gallons of average annual demand) will not exceed Cal Water’s Individual Supply Guarantee.
Kings Mountain Park Mutual Water Company (Kings Mountain) Kings Mountain is a small mutual water system that serves approximately 24 connections in unincorporated S an Mateo County. Kings Mountain, founded in 1953, is a rural residential system. It is adjacent to Cal Water’s Bear Gulch system and is located off Skyline Boulevard (Highway 35), east of the Purisima Creek Redwoods Open Space Preserve, with customers along Tunitas Creek Road and Swett Road.
Kings Mountain has raw surface water intakes in two locations on an unnamed tributary to Purisima Creek. Adjudication grants Kings Mountain the right to divert 8,300 gallons per day for domestic use from two springs that feed Purisima Creek, which have historically provided more than enough water for this water system, even during times of drought.
Since 2019, Kings Mountain has received SFPUC water through a Cal Water interconnection due to cost prohibitive improvem ents required on its treatment plant, and it lacks the financial means to comply with drinking water regulations and maintain its water system. Kings Mountain has agreed to sell its system to Cal Water, which has obtained California Public Utilities Commis sion approval for the acquisition. Cal Water will merge the Kings Mountain system into its Bear Gulch District and acknowledges that this integration will require improvements to the Kings Mountain intakes and treatment plant. Cal Water is fully prepared to complete these improvements in order to keep King Mountain’s existing supply operable and in use for its service area and Cal Water’s surrounding Bear Gulch customers.
Cal Water intends to rehabilitate and operate Kings Mountain’s local sources of supply in order to preserve its existing local SFPUC sources of supply under section 9.02 of the Water Supply Agreement. Cal Water’s acquisition of Kings Agenda Title: Approve the Third Amendment to the California Water Service Company Individual Water Sales Contract
Commission Meeting Date: March 26, 2024
Mountain is consistent with California Public Utilities Commission Resolution W-5080, which encourages mergers of water systems where small or disadvantaged communities cannot “provide the economies of scale necessary to build and maintain adequate water and wastewater systems.”
Description of
Amendments:
First Amendment to the Cal Water Contract
On June 27, 2023, by Resolution No. 23- 0140, this Commission approved the First Amendment to the Cal Water Contract. The First Amendment authorized Cal Water to take over seven residential water customers within Redwood City’s service area, with corresponding adjustments to the Cal Water and Redwood City service area maps appended to their Individual Water Sales Contracts. The First Amendment also revised Cal Water’s Bear Gulch district service area map to include the service area of the former Skyline County Water District as required by Water Supply Agreement section 9.02.D and authorized on April 28, 2009 by Commission Resolution No. 09-0070.
Second Amendment to the Cal Water Contract
On October 10, 2023, by Resolution No. 23-0191, this Commission approved the Second Amendment to the Cal Water Contract. The Second Amendment: (1) adjusted Cal Water’s Bear Gulch District service area map to reflect Cal Water’s acquisition of the former Skylonda Mutual Water Company (Skylonda) service area; (2) restricted any further expansion of the Skylonda service area; and (3) required Cal Water to rehabilitate, maintain, and operate Skylonda’s local sources of supply, with water from the Regional Water System delivered only as a supplement to local supplies formerly used by Skylonda when not available due to drought or emergency conditions.
Proposed Third Amendment to the Cal Water Contract
The Third Amendment would (1) adjust Cal Water’s Bear Gulch District service area map to reflect Cal Water’s acquisition of the former Kings Mountain service area; (2) restrict any further expansion of the Kings Mountain service area; and (3) require Cal Water to rehabilitate, maintain , and operate Kings Mountain’s local sources of supply, if financially feasible, with water from the Regional Water System delivered only as a supplement to local supplies formerly used by Kings Mountain when not available due to drought or emergency conditions.
Budget &
Costs:
The proposed Third Amendment will have no financial impact to SFPUC funds or Budget.
Schedule: The proposed Third Amendment will take effect following approval by this Commission and Cal Water.
Environmental
Review:
Approval of the expansion of Cal Water’s Bear Gulch District service area does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378(a) because there would be no physical change in the environment, and because the action is an organizational or administrative activity under CEQA Guidelines section 15378(b)(5).
Agenda Title: Approve the Third Amendment to the California Water Service Company Individual Water Sales Contract
Commission Meeting Date: March 26, 2024
Approval of the Third Amendment to the Cal Water Individual Wate r Sales Contract contemplates that Cal Water will rehabilitate Kings Mountain’s existing water supply sources at some future time (the Rehabilitation Project), as proposed in Cal Water’s November 2, 2022 Advice Letter No. 2463 filed with the California Public Utilities Commission . The Rehabilitation Project may require environmental review in accordance with the CEQA as a prerequisite to Cal Water’s implementation of the Rehabilitation Project. Notwithstanding any provision of this Third Amendment to the contrary, nothing in this Third Amendment commits Cal Water to approve or carry out the Rehabilitation Project prior to the completion of any necessary review under CEQA.
Attachment: 1. Third Amendment to the Individual Water Sale Contract between the City and County of San Francisco and California Water Service Company (with attachments).
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, For many years, the City and County of San Francisco (San Francisco), by and through its San Francisco Public Utilities Commission (SFPUC), has sold wholesale water to water supply agencies in Alameda, San Mateo, and Santa Clara Counties (Wholesale Customers), in addition to the retail water customers it serves in San Francisco; and
WHEREAS, On April 28, 2009, by Resolution No. 09- 0069, this Commission approved the Water Supply Agreement between San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County, with subsequent approval by the Wholesale Customers, which has been amended and restated, as authorized by Commission Resolution No. 21- 0009, dated January 26, 2021, with subsequent approval by the Wholesale Customers; and
WHEREAS, Section 9.01 Water Supply Agreement contemplated that the Wholesale Customers would enter into new Individual Water Sales Contracts with San Francisco that included maps depicting the service area of each Wholesale Customer; and
WHEREAS, On July 1, 2009, San Francisco and California Water Service Company (Cal Water) entered into an Individual and Water Sales Contract (Cal Water Contract), as authorized by Commission Resolution No. 09- 0069, dated April 28, 2009, and the Cal Water Board of Directors on May 27, 2009; and
WHEREAS, On June 27, 2023, by Resolution No. 23- 0140, this Commission approved the First Amendment to the Cal Water Contract to adjust Cal Water’s service area boundary and revise the list of its interties with other water systems; and
WHEREAS, On October 10, 2023, by Resolution No. 23-0191, this Commission approved the Second Amendment to the Cal Water Contract to further adjust Cal Water’s service area boundary to reflect Cal Water’s acquisition of the Skylonda Mutual Water Company, on certain terms and conditions; and
WHEREAS, Pursuant to the 2022 Asset and Real Property Purchase and Sale Agreement between Cal Water and Kings Mountain Park Mutual Water Company (Kings Mountain), Cal Water is to acquire all of Kings Mountain's water system assets, in exchange for Cal Water assuming the obligation to provide retail water service to 24 service connections within the former Kings Mountain service area; and
WHEREAS, Cal Water has requested that the SFPUC consent to the expansion of Cal Water’s Bear Gulch district service area to include the former Kings Mountain service area under section 3.03.B of the Water Supply Agreement; and
WHEREAS, The assignment of K ings Mountain to Cal Water will not affect the Supply Assurance, enlarge Cal Water’s Individual Supply Guarantee, or the allocation of water to other Wholesale Customers; and
WHEREAS, The purpose of the requested expansion of Cal Water’s Bear Gulch district service area is to facilitate the sale of Kings Mountain to Cal Water and to continue the provision of potable water service to customers formerly served by Kings Mountain , which due to its small rate base lacks the wherewithal to maintain and operate i ts existing water supply and distribution facilities in accordance with drinking water standards; and WHEREAS, Cal Water has obtained the approval of the California Public Utilities commission to acquire the Kings Mountain system, consistent with California Public Utilities Commission Resolution W-5080 that encourages mergers of water systems where small or disadvantaged communities cannot “provide the economies of scale necessary to build and maintain adequate water and wastewater systems;” and WHEREAS, Section 2.03.D of the Water Supply Agreement provides that an Individual Water Sales Contract may be amended with the written concurrence of San Francisco and the Wholesale Customer that is a party to that Individual Water Sales Contract; and
WHEREAS, San Francisco and Cal Water desire to amend the Cal Water Contract, pursuant to Section 2.03.D of the Water Supply Agreement, in order to adjust Cal Water’s service area boundary as shown on the new map designated as Exhibit A-1-3, to reflect Cal Water’s acquisition of the Kings Mountain system, on certain terms and conditions; and
WHEREAS, Approval of the expansion of Cal Water’s Bear Gulch District service area does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines s ection 15378(a) because there would be no physical change in the environment, and because the action is an organizational or administrative activity under CEQA Guidelines section 15378(b)(5); and
WHEREAS, Approval of the proposed Third Amendment to the Cal Water Contract contemplates that Cal Water will rehabilitate Kings Mountain’s existing water supply sources at some future time (the Rehabilitation Project), as proposed in Cal Water’s November 2, 2022 Advice Letter No. 2463 filed with the California Public Utilities Commission; and the Rehabilitation Project may require environmental review in accordance with the CEQA as a prerequisite to Cal Water’s implementation of the Rehabilitation Project; and notwithstanding any provision of the Third Amendment to the contrary, nothing in the Third Amendment commits Cal Water to approve or carry out the Rehabilitation Project prior to the completion of any necessary review under CEQA; now, therefore, be it
RESOLVED, That the Commission authorizes the General Manager to execute the Third Amendment to the Individual Water Supply Contract between the San Francisco Public Utilities Commission and the California Water Service Company to adjust Cal Water’s service area boundary for its Bear Gulch District to reflect Cal Water’s acquisition of the Kings Mountain Park Mutual Water Company system , with terms and conditions that (1) restrict any further expansion of the Kings Mountain service area , and (2) require Cal Water to rehabilitate, maintain, and operate Kings Mountain’s local sources of supply, if financially feasible, with water from the SFPUC Regional Water System delivered only as a supplement to local supplies formerly used by Kings Mountain when not available due to drought or emergency conditions.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 26, 2024.
Secretary, Public Utilities Commission
Third Amendment to Individual Water Sales Contract between City and County of San Francisco and California Water Service Company
THIS THIRD AMENDMENT (Third Amendment) is made as of ______________, 2024, in San Francisco, California, by and between the City and County of San Francisco, a municipal corporation (San Francisco), acting by and through its Public Utilities Commission (SFPUC), and the California Water Service Company, a California corporation (Cal Water or Customer). San Francisco and Cal Water are referred to herein individually as “Party” and collectively as “Parties.”
Recitals
WHEREAS, On July 1, 2009, San Francisco and its wholesale water customers in Alameda, San Mateo, and Santa Clara Counties (Wholesale Customers), including Cal Water, among others, entered into a Water Supply Agreement (WSA), as authorized by SFPUC Commission Resolution No. 09-0069, dated April 28, 2009, with subsequent approval by the Wholesale Customers, which has been amended and restated, as authorized by SFPUC Commission Resolution No. 21-0009, dated January 26, 2021, with subsequent approval by the Wholesale Customers; and
WHEREAS, Section 9.01 of the WSA contemplates that, except as provided, each of the Wholesale Customers will also enter into a new Individual Water Sales Contract with San Francisco concurrently with its approval of the WSA, which contract may be amended with the written concurrence of San Francisco and the Wholesale Customer that is party to it pursuant to Section 2.03.D of the WSA; and
WHEREAS, On July 1, 2009, San Francisco and Cal Water entered into an Individual Water Sales Contract (Contract), as authorized by SFPUC Commission Resolution No. 09-0069, dated April 28, 2009, and the Cal Water Board of Directors on May 27, 2009; and
WHEREAS, San Francisco and Cal Water entered into the First Amendment to the Contract (First Amendment), as authorized by SFPUC Commission Resolution No. 23-0140, dated June 27, 2023, and the Cal Water Board of Directors on June 29, 2023, in order to (1) adjust Cal Water’s service area boundary for the Bear Gulch District as shown on the new map designated as Exhibit A-1-1 to reflect Cal Water’s agreement with the City of Redwood City to transfer water service for seven customers located on Godetia Drive in Woodside, California from Redwood City to Cal Water, as well as Cal Water’s acquisition of the Skyline County Water District, and (2) revise the list of Cal Water’s interties with other water systems as shown on the new Exhibit C-1-1 (Bear Gulch) and Exhibit C-2-1 (Bayshore); and
WHEREAS, San Francisco and Cal Water entered into the Second Amendment to the Contract (Second Amendment), as authorized by SFPUC Commission Resolution No. 23-0191, dated October 10, 2023, in order to (1) adjust Cal Water’s service area boundary for the Bear Gulch District as shown on the new map designated as Exhibit A-1-2 to reflect Cal Water’s acquisition of the Skylonda Mutual Water Company in accordance with Cal Water’s Advice Letter No. 2444, dated March 10, 2022, filed with the California Public Utilities Commission (CPUC); and
WHEREAS, Section 3 of the Contract, as amended, provides that water delivered by San Francisco to Cal Water may be used or sold within the service area shown on the maps designated Exhibit A-1-2 (Bear Gulch) and Exhibit A-2 (Bayshore) attached thereto; and
WHEREAS, in Advice Letter No. 2463, dated November 2, 2022, that was approved by the CPUC on December 14, 2022, Cal Water sought permission to acquire the Kings Mountain Park Mutual Water Company (Kings Mountain), consistent with CPUC Resolution W-5080 that encourages mergers of water systems where small or disadvantaged communities cannot “provide the economies of scale necessary to build and maintain adequate water and wastewater systems;” and
WHEREAS, Cal Water represented in its Advice Letter No. 2463 that it could bring Kings Mountain’s existing water resources, consisting of two raw water surface intakes on an unnamed tributary of Purisima Creek coupled with an adjudicated right to divert 8,300 gallons per day and a water treatment plant, back online both to meet annual demand within Kings Mountain and to provide local emergency water supplies, if financially feasible, allowing cessation of the current temporary supply of SFPUC water supplied to Kings Mountain through Cal Water’s Bear Gulch District, and easing Cal Water’s reliance on water supplied by the SFPUC; and
WHEREAS, Section 3.03.B of the WSA provides that if a Wholesale Customer wishes to expand its service area, it shall request San Francisco’s consent to the expansion and provide information reasonably requested by San Francisco about the amount of water projected to be purchased from San Francisco to meet demand within the area proposed to be added; and
WHEREAS, Section 3.03.D of the WSA provides that San Francisco and a Wholesale Customer may agree in an amendment to an Individual Water Sales Contract that the Wholesale Customer will not expand its service area beyond its present limits without San Francisco approval and may waive the provisions of Section 3.03 with respect to any additional expansion; and
WHEREAS, Section 9.02.B of the WSA provides that the total quantity of water delivered by San Francisco to Cal Water shall not in any calendar year exceed 47,400 acre feet, which is the estimated average annual production of Local System Water, as defined in the WSA; and
WHEREAS, Cal Water has requested San Francisco’s consent to a further expansion of its Bear Gulch service area under WSA Section 3.03.B to include the former service area of Kings Mountain, which Cal Water has acquired, and San Francisco consents to the expansion under the terms and conditions of this Third Amendment; and
WHEREAS, San Francisco and Cal Water desire to further amend the Contract, pursuant to Section 2.03.D of the WSA, on the terms and conditions set forth herein, in order to (1) adjust Cal Water’s service area boundary for the Bear Gulch District as shown on the new map designated as Exhibit A-1-3, which is attached to this Amendment as Attachment 1, to reflect Cal Water’s acquisition of the Kings Mountain system; and (2) modify the terms of Section 3 of the Contract to (a) restrict any further expansion of the Kings Mountain service area and (b)
require Cal Water to rehabilitate and operate the raw water surface intakes and associated water treatment plant of the former Kings Mountain system, if financially feasible, to assist in maintaining supplies of Local System Water available to Cal Water under WSA Section 9.02.
NOW, THEREFORE, San Francisco and Cal Water agree as follows:
Article 1 Definitions
The following definitions shall apply to this Amendment:
1.1 Contract. The term “Contract” shall mean the Individual Water Sales Contract dated July 1, 2009 between San Francisco and Cal Water, as amended by the Second Amendment, dated October 10, 2023.
1.2 Other Terms. Terms used and not defined in this Third Amendment shall have the meanings assigned to such terms in the Contract.
Article 2 Modifications to the Contract
The Contract is hereby modified as follows:
2.1 Service Area. Section 3 of the Contract, entitled “Service Area,” currently reads as follows:
Water delivered by San Francisco to the Customer may be used or sold within the service area shown on the maps designated Exhibit A-1-2 (Bear Gulch District) and Exhibit A-2 (Bayshore District) attached hereto, subject to the following conditions with respect to the service area shown on the map designated Exhibit A-1-2:
1. In accordance with Section 3.03.D of the WSA, Customer and San Francisco agree that Customer shall not expand the portion of its Bear Gulch District service area that is identified on Exhibit A-1-2 as the former Skylonda Mutual Water Company’s (Skylonda) service area beyond the former Skylonda service area boundaries as shown on Exhibit A-1-2. This agreement constitutes Cal Water’s waiver of any reserved claim in WSA Section 8.07.B.5 that it is legally entitled to expand the Skylonda service area under WSA Section 3.03.C.
Notwithstanding this limitation on any additional expansion of these service area boundaries, Customer may accept applications for service from Skylonda’s existing customers and new customers within the former Skylonda service area.
2. Customer agrees to rehabilitate and operate the surface and groundwater supplies of the former Skylonda system that it acquired on August 5, 2023, as stated by Customer in its Advice Letter No. 2444, dated March 10, 2022, to the California Public Utilities Commission (CPUC), requesting CPUC approval for its acquisition of Skylonda. SFPUC water deliveries to Cal Water’s Bear Gulch District that are supplied to Skylonda shall be considered supplemental supplies to be used when the Skylonda supply sources are not available due to drought or emergency conditions. Customer shall, throughout the term of this Contract, as amended, and any extension thereof, diligently apply its best efforts to produce an average annual volume of water of 34 acre-feet from the former Skylonda system and utilize this average annual volume of
water within the former Skylonda service area of its Bear Gulch District, subject to reduction due to emergencies or drought conditions.
This Second Amendment contemplates that Cal Water will rehabilitate Skylonda’s existing water supply sources at some future time (the Rehabilitation Project), as proposed in Cal Water’s March 10, 2022 Advice Letter number 2444 filed with the CPUC. The Rehabilitation Project may require environmental review in accordance with the California Environmental Quality Act (CEQA) as a prerequisite to Cal Water’s implementation of the Rehabilitation Project. Notwithstanding any provision of this Second Amendment to the contrary, nothing in this Second Amendment commits Cal Water to approve or carry out the Rehabilitation Project prior to the completion of any necessary review under CEQA.
Except as provided in Section 3.03 of the WSA, and subject to the conditions set forth in this section, Customer shall not deliver or sell any water provided by San Francisco outside of the service area shown on the maps designated Exhibit A-1-2 (Bear Gulch District) and Exhibit A-2 (Bayshore District) without the prior written consent of the General Manager of the SFPUC.
San Francisco consents to deliveries to the customers listed on Exhibits D-1 and D.2.
Such section 3 is hereby amended in its entirety to read as follows:
Water delivered by San Francisco to the Customer may be used or sold within the service area shown on the maps designated Exhibit A-1-3 (Bear Gulch District) and Exhibit A-2 (Bayshore District) attached hereto, subject to the following conditions with respect to the service area shown on the map designated Exhibit A-1-3:
3.1. In accordance with Section 3.03.D of the WSA, Customer and San Francisco agree that Customer shall not expand the portion of its Bear Gulch District service area that is identified on Exhibit A-1-3 as (1) the former Skylonda Mutual Water Company’s (Skylonda) service area; and (2) the former Kings Mountain Park Mutual Water Company’s (Kings Mountain) service area, beyond the former Skylonda and Kings Mountain service area boundaries shown on Exhibit A-1-3. This agreement constitutes Cal Water’s waiver of any reserved claim in WSA Section 8.07.B.5 that it is legally entitled to expand the Skylonda or Kings Mountain service areas under WSA Section 3.03.C. Notwithstanding this limitation on any additional expansion of these service area boundaries, Customer may accept applications for service from existing customers within Skylonda and Kings Mountain, as well as new customers within the former Skylonda and Kings Mountain service areas.
3.2. Customer agrees to rehabilitate and operate the surface and groundwater supplies of the former Skylonda system that it acquired on August 5, 2023, as stated by Customer in its Advice Letter No. 2444, dated March 10, 2022, to the California Public Utilities Commission (CPUC), requesting CPUC approval for its acquisition of Skylonda. SFPUC water deliveries to Cal Water’s Bear Gulch District that are supplied to Skylonda shall be considered supplemental supplies to be used when the Skylonda supply sources are not available due to drought or emergency conditions. Customer shall, throughout the term of this Contract, as amended, and any extension thereof, diligently apply its best efforts to produce an average annual volume of water of 34 acre-feet from the former Skylonda system and utilize this average annual volume of water within the former Skylonda service area of its Bear Gulch District, subject to reduction due to emergencies or drought conditions.
3.3. Customer agrees to rehabilitate and operate the two existing raw water surface intakes and associated water treatment plant of the former Kings Mountain system that it acquires from Kings Mountain, if financially feasible, as stated by Customer in its Advice Letter No. 2463, dated November 2, 2022, to the CPUC, requesting CPUC approval for its acquisition of Kings Mountain. SFPUC water deliveries to Cal Water’s Bear Gulch District that are supplied to former Kings Mountain customers shall be considered supplemental supplies to be used when the existing Kings Mountain supply sources are not available due to drought or emergency conditions. Customer shall, throughout the term of this Contract, as amended, and any extension thereof, diligently apply its best efforts to utilize King’s Mountain’s full adjudicated water right to an unnamed tributary of Purisima Creek to divert 8,300 gallons per day if demand for that volume exists, and to rehabilitate Kings Mountain’s existing surface water treatment plant, subject to reduction due to emergencies or drought conditions.
3.4. This Third Amendment contemplates that Cal Water will rehabilitate the Skylonda existing water supply sources, and may rehabilitate the Kings Mountain existing water supply sources depending on financial feasibility, at some future time (the Rehabilitation Projects), as proposed in Cal Water Advice Letter Nos. 2444 and 2463 filed with the CPUC on March 10, 2022 and November 2, 2022, respectively. The Rehabilitation Projects may require environmental review in accordance with the California Environmental Quality Act (CEQA) as a prerequisite to Cal Water’s implementation of either or both of the Rehabilitation Projects.
Notwithstanding any provision of this Third Amendment to the contrary, nothing in this Third Amendment commits Cal Water to approve or carry out the Rehabilitation Projects prior to the completion of any necessary review under CEQA.
3.5. Except as provided in Section 3.03 of the WSA, and subject to the conditions set forth in this section, Customer shall not deliver or sell any water provided by San Francisco outside of the service area shown on the maps designated Exhibit A-1-3 (Bear Gulch District) and Exhibit A-2 (Bayshore District) without the prior written consent of the General Manager of the SFPUC. San Francisco consents to deliveries to the customers listed on Exhibits D-1 and D.2.
2.2 Exhibit A-1-1. Exhibit A-1-2, “Service Area Map, Bear Gulch,” is hereby replaced in its entirety by Exhibit A-1-3, attached to this Third Amendment and fully incorporated within the Contract. To the extent the Contract refers to Exhibit A-1-2 in any place, the true meaning shall be Exhibit A-1-3, which is a correct and updated version.
Article 3 Effective Date
Each of the modifications set forth in Article 2 shall be effective on and after the date of this Third Amendment.
Article 4 Legal Effect
Except as expressly modified by this Third Amendment, all of the terms and conditions of the Contract shall remain unchanged and in full force and effect.
[Remainder of page intentionally left blank. Signatures on the following page(s).]
IN WITNESS WHEREOF, the Parties have executed this Amendment by their duly authorized officers.
CITY AND COUNTY OF SAN
FRANCISCO
Acting by and through its Public Utilities
Commission
By:
Dennis J. Herrera
General Manager
Date: , 2024
Approved by Commission Resolution
No. 24-______, adopted ____________, 2024
By:
Donna Hood
Secretary to Commission
Approved as to form:
DAVID CHIU
City Attorney
By:
Catherine Malina
Deputy City Attorney
CALIFORNIA WATER SERVICE
COMPANY,
a California Corporation
By:
Martin Kropelnicki
Chairman, President and CEO
Date: , 2024
By:
Michelle Mortensen
VP, Corporate Secretary
Date: , 2024
Attachment 1
End of Attachment 1
Exhibit A-1-3
Service Area Map
Bear Gulch
Santa
Cruz
Ave
Hudson St
Canada Rd
Chestnut St
University Ave
Junipero
Serra Blvd
Skyline Blvd
El Monte Rd
Middlefield Rd
Foothill Expy
SkylineBlvd
El Camino Real
Whipple
Ave
Bay Rd
Marsh Rd
Edgewood
Rd
Alma St
San
Antonio Rd
Crestview Dr
La Honda Rd
Middlefield Rd
Pescadero
Creek Rd
Skyline Blvd
Fair
Oaks Ln
Foothill Expy
W Bayshore Rd
Alpine Rd
S Shoreline
Blvd
Alpine Rd
Sand
Hill Rd
Page
Mill Rd
Portola Rd
La Honda Rd
CentralExpy
Club Dr
Skyline Blvd
Atherton
Ave
Tunitas Creek Rd
Alpine Rd
Woodside Rd
Page M
ill Rd
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¬«35
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Star Hill Rd
Bear Gulch Rd
Bear Gulch Rd
Skyline
Blvd
Alston Rd
CALIFORNIA WATER SERVICE
1720 North First Street, San Jose, CA 95112
(408) 367 - 8200
Approved by CPUC - Effective 10/31/16
Advice Letter No. :
Decision No. :
(To be inserted by Utility)
Date Filed :
Effective :
Resolution No. :
(To be inserted by Cal. P.U.C.)Issued By
NAME
TITLE
Greg Milleman
Vice President of Rates
NOTE :
This map may not be considered by the Public Utilities Commission establishment of the dedicated area of service or any other portion thereof. of the State of California as a final conclusive determination or 0 1.5 30.75 Miles
LEGEND:
Service Area
Roads
Other Purveyors
COUNTY SERVICE AREA 7, CA4100509
CUESTA LA HONDA GUILD INC, CA4110012
LA HONDA CENTER, CA4100559
OPTIMISTS VOLUNTEERS FOR YOUTH, CA4100552
REDWOOD TERRACE MUTUAL, CA4100510
SAN GREGORIO COMPANY, CA4100566
Low Pressure Zone
Minimum Normal Operating Pressure 25-40 P.S.I.
BEAR GULCH
DISTRICT
SERVICE AREA MAP
FOR
Updated: January 2024
µ
Cancelling
Cal. P.U.C. Sheet No.
Cal. P.U.C. Sheet No.
Revised