To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Phil Brun, Utilities Director
TITLE:
Title
Water Supply Contract with Congress Valley Water District
LABEL
RECOMMENDED ACTION:
Recommendation
Consider options for continuing water service to the Congress Valley Water District area, and direct staff to negotiate an amendment to the Water Supply Contract with the Congress Valley Water District (City Agreement No. 5387).
Body
DISCUSSION:
The City has supplied wholesale water to the Congress Valley Water District (the "District") since 1951 (see maps of the District area on Attachments 2 and 4). The current terms of supply are documented in the "Contract" (City Agreement No. 5387) which includes the comprehensive update that was approved in 1987, as well as the First Amendment (approved in May 2017) and the Second Amendment (approved in May 2018) (see Attachment 1).
The Contract expires on July 1, 2022, and it requires the District to initiate discussions with the City (and other relevant parties, including the Local Agency Formation Commission ["LAFCO"] and Napa County) by July 2020 to establish a transition plan for the ongoing provision of water to properties in the District. On July 14, 2020, the District notified the City of its interest in negotiating terms of an extension of the Contract. This report summarizes options available to the City in response to the District's request, with a recommendation that the Council direct staff to negotiate terms of an amended Contract to extend the term of water supply to the District. Upon receiving direction from Council, City staff plans to engage in initial discussions with the District, and return to Council for further direction and approval for the terms of an extended Contract.
Under the current Contract, the City provides no more than 100 acre-feet of wholesale water to the District at the City's "Outside City" water rates, which the District is author...
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