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Water, Water, Water: Water Supply Contracts

Excerpts from the GCSD March 2023 Newsletter shared by Roni Lynn Rudy









At the March 7, 2023 Board Workshop, General Manager, Pete Kampa

presented a review and orientation of Updating the Water Supply Contracts the

District has in place.


Kampa shared that there is interest for the District to begin discussions on the

update of its water supply agreements with the City and County of San

Francisco and with the Modesto and Turlock Irrigation Districts.

Included with the agenda item were copies of the agreements which he

discussed generally in the workshop. The intent of the discussion was to

publicly discuss the various agreements to ensure understanding by the Board

and public, and to discuss schedules and next steps.


View the entire Agenda Submittal with hyperlinks to contract exhibits here:


The Agreement with City and County of San Francisco (CCSF)

terminates March 23, 2034. If the current contract is not extended or

renegotiated, GCSD is assured the same amount of water received in 2020,

which totaled - 390 acre feet, under the same terms as the current agreement

and with price increases detailed in the Agreement. The Agreement states that

Water Usage Rate adjusts every 4 years based on the change in actual Hetch

Hetchy O&M cost. The current rate is $.7113 per cubic foot or $7.12 per

hundred CF. Also, the Surcharge for Power Loss rate adjusts every 4 years

based on the change in actual PG&E system O&M cost as shown on the Form

10-K submitted to the Securities and Exchange Commission (SEC), currently

$.0913 per cubic foot or $9.13 per hundred CF.


As of 2023, there have been no price increases implemented by CCSF as

required in the Contract. Prior to or upon termination of the Contact (2034), the

parties shall, in good faith, promptly negotiate an extension of this contract or a

new contract.


The Water Treatment Plant Site Agreement was executed August 20, 2007 between GCSD and PMLA, was done as a temporary agreement and the project was done in 2017. It allowed the temporary installation of the Alternative Water Supply facility on property owned by PMLA, required the removal of the AWS

annually when not in use and reinstallation when needed, allowed GCSD use of PMLA irrigation pump in the lake, required GCSD to purchase and install a new

irrigation pump and motor as consideration for the property and pump use, no

lease payments, and GCSD secured right to use PML water from CCSF, MID

and TID on July 30, 2007.


There was a WTP Site Agreement Draft Amendment considered in 2009 to allow

permanent use the PMLA Corp yard for Alternative Water Supply facility versus

installing and removing every year, Initiated a $5000 per year lease payment,

waived the payment of a sewer connection fee installed as part of the AWS

permanent installation, and all other terms remain the same with slight

modifications.

The letter Agreement with MID/TID/CCSF initially executed by the Districts on July 30, 2007 and new letter agreement issued December 21, 2016 terminates on March 1, 2027. The PMLA Water Treatment Plant Site Agreement governs under its

banking agreement with the Districts; SFPUC responsible to TID and MID for all water diverted from PML; GCSD responsible for all permits and rights to divert and use water from PML. The agreement sets no precedent or commitment for

future water.


Kampa discussed the following next steps:

1. Extend the current WTP site agreement with PMLA to coincide with the letter agreement with CCSF, TID and MID (Terminating March 2027) or until AWS relocated to GCSD property.


2. Open negotiations with the CCSF for an agreement extension or new

agreement depending on the extent of amendments needed.


3. Open discussions regarding a long term water supply agreement with MID,

TID and CCSF for PML water.


4. If a long term PML supply is determined possible, open negotiations with

PMLA for permanent pumping facilities on PML and long term use of water

as a backup or primary source of water supply.


Kampa stated he will look for direction from the Board and will be working in

closed session on these matters.


The Yosemite | Highway 120 Chamber of Commerce is sharing this information as a community service. GCSD staff is always happy to answer questions related to this, and other Water, Sewer, Fire, and/or Parks issues directly. Please contact the District by phone or email with questions, concerns and compliments.


PHONE: 209.962.7161

EMAIL: INFO@GCSD.ORG

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