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J. I3 BAWSCA is intended to be an effective way for San Francisco's wholesale customers to act, independently if necessary, to meet their common interests. Of course, the directors of BAWSCA will determine what the new agency will actually do once it is formed. Its statutory authority will allow them to undertake activities such as the following: • Seek out and secure new water supplies, including dry year water transfers. • Coordinate and implement strategies for water conservation and the use of recycled water among member agencies, to avoid long -term water shortages. Prepare financing plans, and associated financing agreements with San Francisco, to build the projects needed to ensure reliable water supply and delivery. • Monitor progress on the SFPUC's multi - billion dollar capital improvement program, adherence to agreements, and compliance with the various duties and deadlines established by AB 1823. • Provide a strong organization for water agencies in Alameda, San Mateo and Santa Clara Counties to negotiate effectively with San Francisco on a new supply contract and other water issues important to their customers, such as rationing during droughts. • Assist general purpose agencies, such as cities and counties, in planning to cope with the community impact of an extended water outage following an earthquake. • Represent its members' interests in the Legislature and before regulatory agencies, such as the California Department of Health Services, on regional issues not otherwise handled by the League of Cities or the Association of California Water _ Agencies. The Benefits to Individual Agencies from Becoming Members of BAWSCA The principal advantage of joining BAWSCA is that Redwood City will have a voice in the actions that BAWSCA does or does not take. As described above, these actions are potentially important both regionally and for individual agencies. Other benefits that have been identified include: If all eligible agencies participate, BAWSCA will be the largest public water agency in northern California. Membership in it will enhance each agency's influence beyond what it could accomplish acting on its own. The board of BAWSCA will have the authority to provide priority service to its members, and to consider differential pricing of services to members and non- members. If an agency does not join in the first round as a charter member, there is no guarantee that it will be admitted later. With regard to the appointment of a director to the board of BAWSCA, AB 1058 requires that appointments be made not later than 60 days after the Secretary of State has certified that BAWSCA has been formally established. Assuming current progress by BAWUA agencies, certification may occur as early as April 2003, such that appointments to the BAWSCA board could be made in May /June of 2003. 3of4