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9.41 REPORT To the Honorable Mayor and City From the City I March 10, 2003 Subject Public Hearing: Formation and membership in the Bay Area Water Supply and Conservation Agency Recommendation By Resolution, declare findings regarding formation and membership in the Bay Area Water Supply and Conservation Agency pursuant to the requirements of AB 2058 Background Pursuant to AB 2058, on January 27, 2003 the City Council passed Resolution No. 14495 setting the public hearing time (March 10, 2003) and place (City Hall — Council Chamber) on whether to form, and become a member of, the Bay Area Water Supply & Conservation Agency (BAWSCA) and directed the City Clerk to arrange for publication of the resolution on or before 2/22/2003. AB 2058 went into effect January 1, 2003, and authorizes the formation of BAWSCA. The new law requires that all public agency members of the Bay Area Water Users Association (BAWUA) conduct a public hearing on the question of whether to form and become a member of the Bay Area Water Supply and Conservation Agency (BAWSCA). Also on January 27, 2003, the Council, pursuant to SB 1870, appointed Council member Ira Ruskin to the office of Director of the San Francisco Bay Area Regional Water System Financing Authority, established pursuant to California Water Code Section 81600 at seq. for the term determined as provided in Water Code Section 81631(b). SB 1870 went into effect January 1, 2003, and creates the San Francisco Bay Area Regional Water System Financing Authority. The new law requires that all affected public agencies' city councils or boards of directors appoint a duly elected member to the office of Director of the Financing Authority by March 1, 2003. The appointment of Council member Ruskin by the City Council fulfills that requirement for Redwood City. These two new entities empower the 29 wholesale customers of the San Francisco Hatch Hetchy regional water system to coordinate local water responsibilities and to provide an equitable share of the funding to help San Francisco fix the regional water system. They also provide powerful vehicles to strengthen our bargaining position with the city of San Francisco to protect the health, safety and economic interests of our residents and businesses. It is expected that BAWUA will morph into BAWSCA and that its members will continue to work together to advance their mutual interests in the regional water system operated by San Francisco. 1 of 4