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O The Collective Benefits from Establishing BAWSCA AB 2058 empowers the public agencies that now depend on the San Francisco regional system to create their own water agency. The fundamental purpose of the new agency is to help ensure the health, safety, and well -being of residents and businesses through delivery of safe and reliable water to its members' communities. During the legislative process, the members of BAWUA demonstrated strong support for AB 2058, the bill that enabled the formation of this new agency. This strong regional consensus was critical to the success of the legislation, and many local elected officials have expressed enthusiasm for BAWSCA being formed and getting to work. The Historical Concerns and Current Problems Redwood City has historically had no formal voice in forming the policies or deciding if, when or how to invest ratepayer's money — public funds — to ensure the best regional solutions to their water supply and reliability issues. The San Francisco Public Utilities Commission ( SFPUC) is not directly accountable to Redwood City in the same manner as are locally or regionally elected leaders, public officials and the officers of regulated utilities. Some of the consequences of this institutional arrangement are: • The Hetch Hetchy regional water system has deteriorated to the point that it is no longer reliable. Facilities broken during a major earthquake, such as the recent ones in Alaska and Mexico, could leave homes and places of employment without water for weeks to months. • The State shares these concerns. The State Division of Safety of Dams has ordered the SFPUC to drain two- thirds of the water from behind Calaveras Dam, east of Milpitas, because of concerns that it could fail in an earthquake. And the legislature overwhelmingly supported AB 1823, to ensure the system is rebuilt. • The system has not kept pace with demand. There has been no increase in water supply capability for nearly 40 years. The consequences of this inaction include exposure of the Bay Area to extreme water rationing in predictable dry year cycles, and inability to meet increases in normal years' water demand associated with the modest, but continuous, growth in population and jobs contemplated by the general plans of cities in the service area. While the new agency will not provide any BAWUA agency a direct voice in the SFPUC's decisions, it would enable the Redwood City Council, with BAWSCA colleagues, to address community and regional needs. As a governmental entity, most likely led by elected officials, BAWSCA can be expected to exert far more influence than BAWUA. How BAWSCA Can Help Section 81301(d) explains the Legislature's purpose in enabling the formation of BAWSCA: It is the intent of the Legislature to enable local governments responsible for water distribution in the three counties to establish a multi- county agency authorized to plan for and acquire supplemental water supplies, to encourage water conservation and use of recycled water on a regional basis, and to assist in the financing of essential repairs and improvements to the San Francisco regional water system, including seismic strengthening. 2of4