DEPARTMENT
Water Resources Division
AGENDA NO.
6d
MEETING DATE
June 11, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Obi Nzewi
Approve Amendment No. 1 to Memorandum of Agreement with City of San Bruno
Summary of
Proposed
Commission Action:
Approve Amendment No. 1 to the Memorandum of Agreement (Agreement) with the City of San Bruno regarding reimbursement of planning, design, and engineering costs for the provision of an additional one million gallons of emergency water storage in San Bruno Pressure Zone 1/4 at the Cu nningham Tank site, as part of the operation of the Regional Groundwater Storage and Recovery Project.
This Amendment No. 1 would retroactively extend the Agreement duration by 12 months, for a new total duration of 36 months, with no change to the Agreement’s not -to-exceed amo unt for the S an Francisco Public Utilities Commission or San Bruno.
Background: The Regional Groundwater Storage and Recovery (RGSR) Project is a key water supply project included in the San Francisco Public Utilities Commission (SFPUC) Water System Improvement Program (WSIP ) that includ es as proj ect participants the City of San Bruno (San Bruno), the City of Daly City, and the California Water Service Company. The RGSR Project will allow the SFPUC to store water in the South Westside Groundwater Ba sin on the San Fra ncisco Peninsula, provid ing a n ew dry -year groundwater supply and increasing water supply reliability. The RGSR Project would also provide drinking water for emergency supply in the event of an earthquake or other major catastrophe affecting the SFPUC Regional Water System.
On August 12, 2014, by Resolution No. 14- 0127, this Commission approved the RGSR Project and authorized SFPUC staff to proceed with actions necessary to implement the Project. That approval followed the San Franc isco Planning Commis sion’s certification of the RGSR Project Environmental Impact Report on August 7, 2014, by Motion No. M-19209 (Case No. 2008.1396E).
On August 12, 2014, by R esolution No. 14- 0127, the Commission also approved an agreemen t entitled “Agreement for Groundwa ter Storage and Recovery f rom the Southern Portion of the Westside Basin by and among the San Francisco Public Utilities Commission, Agenda Title: Approve First Amendment to Memorandum of Agreement with City of San Bruno for Reimbursement of Planning, Design, and Engineering Costs for the Provision of Additional Emergency Water Storage Related to Regional Groundwater Storage and Recovery Project
Commission Meeting Date: June 11, 2024
Page: 2
the City of San Bruno, the City of Daly City, and California Water Service Company” (Oper ating Agree ment). Section 6.3.3 of the Operating Agreement r equires the SFPUC to fund a share of the design, engineering, planning, and construction costs for providing an additional one million gallons (MG) of emergency water storage, or an alternative providing equivalent benefits, in S an Bruno Pressure Zone 1/4. The additional volume of emergency water storage will enable San Bruno to continue to provide water for firefighting purposes during periods of RGSR Project groundwater storage, when pumping from San Bruno’s existing wells woul d be red uced to facilitate “ in lieu” recharge of groundwater under the terms of the Operating Agreement.
On January 11, 2022, by Resolution No. 22- 0013, the Commission approved a Memorandum of Agreement (Agreement) with San Bruno that would allow the SFP UC to reimburse San Bruno for a portion of the cost s of the planni ng, design, and engineering services that a consultant retained by San Bruno would perform to provide the additional 1 MG of storage at the site of San Bruno’s Cunningham Treated Wat er Storage Tan k ( Cunningham Tank sit e). The parties estimated the total cost of these services to be $447,000, including a 10% contingency. The SFPUC’s share o f the costs was not to e xceed $314,500, and San Bruno’s share of the costs was not to exceed $132,500, based on an agreed upon alloca tion ratio of 70.37% for the SFPUC and 29.63% for San Bruno that reflects the relative benefits of additional storage to the RGSR Project and San Bruno.
As of June 2024, San Bruno and its consultant have not completed the required planning, design, and eng
ineering services for which the
SFPUC would reimburse San Bruno under the Agreement. San Bruno anticipates that the remaining work will be completed by March 2025.
The Agreement expired in March 2024 due to an administrative oversight, and the SFPUC and S an Bruno would need to retroactively extend the Agreement duration by an additional 12 months to allow the SFPUC to reimbu rse San Bruno for the SF PUC’s share of the costs of work that is still to be done by San Bruno.
Following San Bruno’s completion of th e planning, design , and engineering work required under the Agre ement, and any necessary environmental review under the California Environmental Quality Act (CEQA), the parties will prepare a separate agreement to allow the SFPUC to fund a portion of the c onstruction cost s for the increased storage at the Cunningham Ta nk si te. SFPUC staff will present that separate agreement to the Commission for approval at a future date.
Description of
Amendment:
Parties to The City of San Bruno and the City and
Agenda Title: Approve First Amendment to Memorandum of Agreement with City of San Bruno for Reimbursement of Planning, Design, and Engineering Costs for the Provision of Additional Emergency Water Storage Related to Regional Groundwater Storage and Recovery Project
Commission Meeting Date: June 11, 2024
Page: 3
Agreement: County of San Francisco, by and through the
SFPUC.
Purpose: If approved, Amendment No. 1 would
extend the duration of the Agreement by 12
months, allowing the SFPUC to continue to
reimburse San Bruno for the SFPUC’s share
of the planning, design, and engineering
services still to be performed by San Bruno
and its consultant under the Agreement,
which will enable an additional 1 MG of
emergency water storage in San Bruno's
Pressure Zone 1/4 at the Cunningham Tank
site, for a total storage capacity of 3.5 MG,
as part of the RGSR Project and in
accordance with the terms of the RGSR
Project Operating Agreement. There is no
change to the Agreement’s not-to-exceed
amount for the SFPUC or San Bruno.
Location: Cunningham Tank site in San Bruno and
southern portion of the Westside
Groundwater Basin on the San Francisco
Peninsula.
Budget & Costs: Original Agreement Estimated Total Costs (SF PUC and San Bruno): $447,000, including a 10% contingency.
Original Agreement Not-to-Exceed Amount (SFPUC): $314,500.
First Amendment Not-to-Exceed Amount (SFPUC): No change.
Funding Source: Water Enterprise Project No. CUW30103, Regional Groundwater Storage and Recovery Project.
Schedule: Services began in March 2022 and were scheduled to be completed by March 2024 under the Agreement. San Bruno now antici pates work will be completed by March 2025. Accordingly, the First Amendment retroactively extends the Agreement duration by 12 months, for a ne w total duration of 36 months.
Environmental
Review:
Approval of this Amendment does not constitute a “project” under the CEQA Guidelines section 15378 because the action would not resul t in a physical change in the environment as the scope of the Agreement is limited to planning, design, and engineering activities.
As specified in the Agreement, the City of San Bruno, acting as lead Agenda Title: Approve First Amendment to Memorandum of Agreement with City of San Bruno for Reimbursement of Planning, Design, and Engineering Costs for the Provision of Additional Emergency Water Storage Related to Regional Groundwater Storage and Recovery Project
Commission Meeting Date: June 11, 2024
Page: 4
agency under CEQA, will undertake environmental review for the project, and this Commission, acting as a responsible agency, will review and consider the CEQA document and make nece ssary findings prior to any subsequent action by the Commission to allocate funding for construction fo r the additional water storage at the Cunningham Tank site. The Commission retains discretion to, among other things, modify the design to mitigate signi ficant environmental impacts, require t he implementation of specific measures to mitiga te any significant environmental impacts, or reject the Project following completion of environmental review.
Attachment: 1. First Amendment to Memorandum of Agreement
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The Regional Groundwater Storage and Recovery (RGSR) Project is a key water supply project included in the San Fran cisco Public Utilities Commission (SFPUC) Water System Improvement Program (WSIP) that includes as project participants the City of San Bruno (San Bruno), City of Daly City, and the California Water Service Company; and WHEREAS, The RGSR Project will al low the SFPUC to store water in the South Westside Groundwater Basin on the San Francisco Peninsul a, providing a new dry -year groundwater supply and increasing water supply rel iability. The RGSR Project would also provide dr inking water for emergency suppl y in the event of an earthquake or other major catastrophe that affects the SFPUC Regional Water System; and WHEREAS, On August 12, 2014, by Resolution No. 14-0127, the Commission approved the RGSR Project (Project No. CUW30103) and authorized SFPUC staff to proceed with actions necessary to implement t he Project, following the San Fr ancisco Planning C ommission’s certification of the RGSR Project Environ mental Impa ct Report unde r the California Environmental Quality Act (CEQA ) on August 7, 2014, by Motion No. M -19209 (Case No. 2008.1396E); and
WHEREAS, On August 12, 2014, by Resolu tion No. 14- 0127, the C ommission also approved the “Agreement for Groundwate r Storage and Recovery from the Southern Portion of the Westside Bas in by and a mong the San Francisco Public Utilities Commission, the City of San Bruno, the City of Daly City, and California Water Servi ce Company” (Operating Agreement); and
WHEREAS, Section 6.3.3 of the Operating Agreement requires the SFPUC to fund an additional one m illion gallons (MG) of emergency water storage, or an alternative pr oviding equivalent benefits, in San Bruno P ressure Zone 1/4, in order to facilita te the SFPUC’s in lieu storage of groundwater under the RGSR Project; and
WHEREAS, In 2019, the SFPUC and San Bruno agreed to establish this additional 1 MG of emergency water storage at the site of San Bruno’s Cunningham Trea ted Water Storage Tank (Cunningham Tank site) located in Pressure Zone 1/4, following an analysis performed by the SFPUC and San Bruno under a Memorandum of Agreement approved by the Commission on January 14, 2014, by Resolution No. 14-0008; and
WHEREAS, On January 11, 2022, by Resolution No. 22- 0013, the C ommission approved a Memorandum of Agreement with San Bruno (Agreement) that wou ld allow the SFPUC to reimburse San Bruno for a portion of the costs of t he planning, design, and engineering services that a consultant retained by San Bruno would perform to provide the additional 1 MG of storage at the Cunningha m Tank site, which the p arties estimated to be $447,000, including a 10% contingency for cost over runs, apportioned 29.63% to San Br uno ($132,500) and 70.37% to the SFPUC ($314,500); and
WHEREAS, The funding source for the SFPUC’s not -to-exceed amount of $314,500 under the Agreement was Water Enterp rise Project No. CUW30103, Regional Groundwater Storage and Recovery Project; and
WHEREAS, Approval of this Amendment does not constitute a “project” under the CEQA Guidelines section 15378 because the action would not result in a physical change in the environment as the scope of the Agreement is limited to planning, desi gn, and engineer ing activities; and
WHEREAS, the City of San Bruno, acting as lead agency under CEQA, will undertake environmental review for the project, and this Commission, acting as a responsible agency, will review and consider the CEQA document and make necessary findings prior t o any subsequent action by the Commission to allocate funding for construction for the additional water storage at the Cunningham Tank site and the Commission retains discretion to, among other things, modify the design to mi tigate significant environmental impacts, require the implementation of specific measures to mitigate any significant environmental impacts, or reject the Project following completion of environmental review; and
WHEREAS, The Agreement had a term of 24 months that expired on March 13, 2024, due to an administrative oversight, but San Bruno has not yet completed the required planning, design, and engineering services and anticipates that the remaining work will be completed by March 2025; and
WHEREAS, The SFPUC and San Bruno propose to amend the Agreement by extending its duration by 12 months, for a new total Agr eement duration of 36 months, to allow San Bruno and its consultant to complete the remaining tasks in the agreed upon scope of work, and the SFPUC to continue to reimburse San Bruno for the SFPUC’s share of the asso ciated costs under the terms and conditi ons of t he Agreement, with no changes to the Agreement not -to-exceed amounts for the SFPUC or San Bruno; now, therefore, be it RESOLVED, That th is Commission hereby approves Amendment No. 1 to the Memorandum of Agreement with the City of San Bruno regarding reimbursement of planning, design, and engi neering costs for the provision of addit ional emergency water sto rage in San Bruno Pressure Z one 1/4, extending the Agr eement duration by 12 months, fo r a new total Agreement duration of 36 months, with no chang e in the Agreement not -to-exceed amounts for the SFPUC or San Bruno.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of June 11, 2024.
Acting Commission Secretary, Public Utilities Commission
1 FIRST AMENDMENT TO MEMORANDUM OF AGREEMENT
between the
CITY AND COUNTY OF SAN FRANCISCO
acting by and through its
PUBLIC UTILITIES COMMISSION
and the
CITY OF SAN BRUNO
Regarding Reimbursement of Planning, Design, and Engineering Costs for the Provision of Additional Emergency Water Storage in San Bruno Pressure Zone 1/4
THIS FIRST AMENDMENT (“First A mendment”) is made as of June 11, 2024, in San Francisco, California, by and between the City and County of San Francisco, a California municipal corporatio n (“CCSF”), acting by and through its Public Utilities Commission (“SFPUC”), and the City of San Bruno, a California municipal corporation (“San Bruno”), which are herein referred to collectively as “Parties” and individually as “Party.”
RECITALS
WHEREAS, On December 16, 2014, the Parties entered into the Agreement for Groundwater Storage and Recovery from the Southern Portion of the Westside Basin (“GSR Project Operating Agreement”) with the City of Daly City and the California Water Service Company, as authorized by SFPUC Resolution No. 14-0127, dated August 12, 2014, and San Bruno City Council Resolution No. 2014- 103, dated September 23, 2014; and
WHEREAS, Section 6.3.3 of the GSR Project Operating Agreement provides, in part, that San Bruno and the SFPUC will execute an agreement that “reflects the SFPUC’s intent to provide for, or to construct at the SFPUC’s expense, facilities for the emergency storage of one million gallons of water in [San Bruno] pressure zone 1/4, or equivalent, during S torage Periods since San Bruno’s Existing Facilities would not be immediately available to supply water during an emergency”; and WHEREAS, On March 14, 2022, the Parties entered into the Memorandum of Agreement Regarding Reimbursement of Planning, Desi gn, and Engi neering Costs for the Provision of Additional Emergency Water Storage in San Bruno Pressure Zone 1/4 (“Agreement”), as authorized by SFPUC Resolution No. 22- 0013, dated January 11, 2022, and San Bruno City Council Resolution No. 2021-63, dated August 24, 2021; and WHEREAS, The Parties desire to retroactively amend the Agreement, which expired on March 13, 2024, on the terms and conditions set forth herein in order to extend the term of the Agreement by 12 months;
NOW, THEREFORE, in consid eration of the promises and conditions set forth herein, the Parties agree as follows:
Article 1 Definitions
The following definitions shall apply to this First Amendment:
1.1 Agreement. The term “Agreement” shal l mean the Memorandum of Agreement Regarding Reimburs ement of Planning, Design, and Engineering Costs for the Provision of Additional Emergency Water Storage in San Bruno Pressure Zone 1/4 dated January 11, 2022 for reference purposes only, which became e ffective on March 14, 2022.
2 1.2 Other Terms. Terms used and not defined in this First Amendment shall have the meanings assigned to such terms in the Agreement.
Article 2 Modifications to the Agreement
The Agreement is hereby modified as follows:
2.1 Term. Section 2 of the Agreeme nt, entitled “Term,” currently reads as follows:
This MOA shall become effective on the date it has been fully executed and delivered by both parties (“ Effective Date”), provided it has been authorized by CCSF and San Bruno in a manner required by law. The term of this MOA shall expire on the earlier of (1) the completion and acceptance of the 100% design for the Project by the Parties or (2) 24 (twenty-four) months after the Effective Date.
Such section is hereby amended in its entirety to read as follows:
This MOA shal l become effective on the date it has been fully executed and delivered by both parties (“ Effective Date”), provided it has been authorized by CCSF and San Bruno in a manner required by law. The t erm of this MOA shall expire on the earlier of (1) the comp letion and acceptance of the 100% design for the Project by the Parties or (2) 36 (thirty-six) months after the Effective Date.
Article 3 Effective Date
Each of the modifications set forth in Article 2 sha ll be effective on and after the date o f this First Amendme nt, subject to the approval of the San Francisco Public Utilities Commission and San Bruno City Council.
Article 4 Legal Effect
Except as expressly modified by this First Amendment, all of the terms and conditions of the Agreement shall remain unchanged and in full force and effect.
3 IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the date first referenced above.
CITY AND COUNTY OF SAN
FRANCISCO,
a California municipal corporation
By: ____________________________
Dennis Herrera
General Manager
Public Utilities Commission
Dated: _____________________________
CITY OF SAN BRUNO,
a California municipal corporation
By: __________________________
Its: _____________________________
Dated: __________________________
Authorized by San Francisco Public Utilities
Commission Resolution No. _________
Adopted ____________________, 2024
APPROVED AS TO FORM
David Chiu, City Attorney
By:
Joshua Milstein
Deputy City Attorney
APPROVED AS TO FORM
By: ___
Name: Marc Zafferano
San Bruno City Attorney