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I • �� <br />nder SB 1870, San Mateo and Santa Clara counties once again will name members for <br />Cal Water and Stanford. San Francisco must meet several special conditions to become a <br />member. <br />These two new entities empower the 29 wholesale customers of the San Francisco Hetch <br />Hetchy regional water system to coordinate local water responsibilities and to provide an <br />equitable share of the funding to help San Francisco fix the regional water system. They <br />also provide powerful vehicles to strengthen our bargaining position with the city of San <br />Francisco to protect the health, safety and economic interests of our residents and <br />businesses. <br />It is expected that BAWUA will morph into BAWSCA and that its members will continue to <br />work together to advance their mutual interests in the regional water system operated by <br />San Francisco. <br />The attached documents provide further background information and a discussion of <br />factors to be considered when appointments are made. <br />Alternative <br />The City Council of Redwood City could decline to appoint representatives to either or both <br />new entities. This is not recommended. <br />Fiscal Impact <br />No direct fiscal impact to Redwood City will occur immediately. The Settlement Agreement <br />and Master Water Sales Contract between the City and County of San Francisco and <br />certain Suburban Purchasers effective May 25, 1984 delineates the financial terms and <br />conditions in which the SFPUC recovers approximately 2/3 of all capitalized system <br />improvements costs via the wholesale water rates paid by BAWUA agencies. As a result <br />of this existing instrument and /or use of the two new entities, future water rates for all water <br />users will increase. Staff estimates that the cost of wholesale water for Redwood City will <br />increase an estimated 250% in the next 10 -15 years, as deferred repairs are made to the <br />Hetch Hetchy regional water system. <br />Peter Ingram <br />Director, Public Works Services <br />Ed Evd ett` <br />City Manager <br />Attachments <br />1. BAWUA announcement of Alameda County Water District action, January 10, 2003 <br />2. Letter and resolution from Alameda County Water District to Mayor Claire, 1/10/2003 <br />3. BAWUA announcement of Governor's action, Sept. 24, 2002 <br />4. Fact Sheet for Assembly Bill 2058 as passed by Legislature on Aug. 30, 2002 <br />5. Fact Sheet for Senate Bill 1870 as passed by Legislature on Aug. 30, 2002 <br />