This item is to hold a public hearing, then to consider and adopt a resolution to participate in the formation of the Bay Area Water Supply and Conservation Agency (BAWSCA), as identified in AB 2058 (Papan), passed and signed into law in 2002. (Attachment B)

The report for the February 11, 2003, City Council meeting described some of the background of the Bay Area Water Users Association (BAWUA), and the City’s role in working with BAWUA to get the three regional water bills passed due to failings on the part of the San Francisco Public Utilities Commission (SFPUC) to adequately maintain and provide for improvements to the regional Hetch-Hetchy water system.

The Council dealt with the Financing Authority at your meeting of February 11, 2003, by appointing Councilmember Tim Risch as the Director from the City of Sunnyvale. Their first meeting is currently scheduled for April 3, 2003.

This bill is the subject of the Hearing and Resolution at this meeting. The Bay Area Water Supply and Conservation Act allows the formation of BAWSCA, the Bay Area Water Supply and Conservation Agency. BAWSCA will be able to acquire water and water rights; develop, store and transport water; provide, deliver, and sell water at wholesale to certain entities; and acquire, construct, operate and maintain works and facilities to carry out the agency’s purposes. It will also be able to exercise the right of eminent domain and issue revenue bonds to finance the construction, reconstruction, or improvement of any works carried out by the agency.

The formation process requires that a single agency take the first step: adopt a resolution announcing its intention to form BAWSCA. The Alameda County Water District (ACWD) has taken that lead step (Attachment A). Now we are in the period when each agency in this area desiring to be a part of BAWSCA must hold a public hearing and adopt a resolution declaring its decision on whether to form, and become a member of, BAWSCA.

If BAWSCA is created as a result of actions by Sunnyvale and other local agencies, then the City Council must appoint a representative to its Board of Directors. That representative can be the same representative as Council appoints to the financing authority created by SB 1870. Such appointment would not come until BAWSCA is formally created.

The bills were designed to accomplish different things, and during the legislative process, it was unclear which, if any, of the bills might become law. The new water agency, BAWSCA, will create direct decision making participation with a broad range of authorities that permit the cities, water districts and private utilities to address their current and future needs for water reliability, water supply, and other matters of mutual interest. One of those authorities is to finance public works of many possible types for the good of the participating agencies.

After the adoption of the attached resolution, stating the desire of Sunnyvale to create and join BAWSCA, the following steps will remain.

On or before

• March 27: A certified copy of Resolution (Attachment B) forwarded to the San Mateo County Board of Supervisors within 10 days of its adoption.
• Feb. - June: All BAWUA public agencies adopt resolutions as to whether they will form and join BAWSCA and forward certified copies of their resolutions to the San Mateo County Board of Supervisors
• Up to 60 days later: The San Mateo County Board of Supervisors determines whether or not resolutions to form and join BAWSCA have been adopted by enough entities. If so, within 10 days the Clerk of the San Mateo County Board of Supervisors certifies to the Secretary of State that there are sufficient agencies to form BAWSCA.
• Up to 10 days later: The Secretary of State certifies that BAWSCA is formed.
• Up to 60 days later: The governing body of each member public entity appoints a member to the BAWSCA Board. Timing for the Council date to adopt Resolution #3 to appoint a director to BAWSCA is not known at this time. It could occur as early as April 2003 or as late as October 2003 – a reasonable guess is May or June 2003.

Participating in BAWSCA will involve payment of assessments to provide for staff and facilities as needed. Such assessments will be established by the Board of Directors of BAWSCA, of which Sunnyvale would be a member and have a direct voice. As a comparison, Sunnyvale currently pays about $77,000 annually as a member of BAWUA. BAWSCA assessments should REPLACE BAWUA assessments, though they will most likely be somewhat higher. Higher assessments would be due to having a larger Board of Directors and needing larger meeting facilities and related accommodations, as well as an entire new level of emphasis beyond what BAWUA has included.

1. Approve the resolution to participate in the creation of the Bay Area Water Supply and Conservation Agency.
2. Do not approve creation of the Bay Area Water Supply and Conservation Agency.

1. Approve the resolution to participate in the creation of the Bay Area Water Supply and Conservation Agency.

1. Resolution 03-005, Alameda County Water District Declaring Findings Regarding Formation of and Memebership in the Bay Area Water Supply and Conservation Agency  (.pdf file)
2. Resolution to Participate in the creation of the Bay Area Water Supply and Conservation Agency
3. Fact Sheet summarizing AB 2058.
4. Senate Bill 2058 "The Bay Area Water Supply and Conservation Act" as Enrolled and Signed by the Governor  (.pdf file)