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Z,A9 FACT SHEET FOR ASSEMBLY BILL 2058 (Bay Area Water Supply and Conservation Act) Authored by Assembly Members Papan, Dutra, and Simitian (Coauthors: Assembly Members Alquist, Cohn, Corbett, Diaz and Leach, and Senators Figueroa and Sher) As Passed by Legislature on August 30, 2002 The Act adds Division 31 (commencing with Section 81300) to the Water Code. The Legislature finds and declares among other things that: Many cities, districts and public utilities distribute water in portions of the Bay Area served by the regional system operated by the City and County of San Francisco. Residents in Alameda, San Mateo, and Santa Clara counties who depend on this water and pay for two thirds of the costs for the regional infrastructure. • The regional water system is vulnerable to catastrophic damage in a severe earth- quake, which could result in San Francisco and neighboring communities being without water for up to 60 days. The system is also susceptible to severe water shortages during droughts because of insufficient storage and the absence of ar- rangements for alternative dry-year supplies. Creation of a new agency The Bay Area Water Supply and Conservation Agency en- abled by this legislation would permit local governments, responsible for distribution of wa- ter in the three counties, 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 fi- nancing of essential public works in a coordinated and cost - effective manner. Agency formation The governing body of one of the eligible 26 public entities in Alameda, San Mateo, and Santa Clara counties, as identified in the Act, may, by a majority vote of its members, declare its intention to form a new agency with all of the other public entities. Each of the other public entities shall consider whether to form the agency and whether to become a member. Upon adoption of resolutions of the public entities to forth and join the agency, the governing body of each public entity shall forward a certified copy of the resolu- tion to the Board of Supervisors of San Mateo County. If the Board of Supervisors deter- mines that at least fifteen of the eligible public entities, representing at least sixty percent of their total water purchases from San Francisco, have adopted such a resolution, the Board shall declare that the agency has been formed. The eligible 26 Public entities Alameda County Water District, City of Brisbane, City of Burlingame, Coastside County Water District, City of Daly City, City of East Palo Alto, Es- tero Municipal Improvement District, Guadalupe Valley Municipal Improvement District, City of Hayward, Town of Hillsborough, Los Trancos County Water District, City of Menlo Park, Mid - Peninsula Water District, City of Millbrae, City of Milpitas, City of Mountain View, North Coast County Water District, City of Palo Alto, Purissima Hills Water District, City of Red-