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the retailer's service areas is a reflection of the unique characteristics and mix of water users (e.g., residential, commercial, industrial) in each service area, and therefore cannot be directly compared to one another. Furthermore, as evidenced by the per capita water use, residential water use varies by retailer based on types of residential development in each service area (including age, home square footage, lot square footage, ratio of single family to multi-family units, etc.) As shown, each retailer's 2010 overall per capita water use is already in compliance with the 2015 targets, and DSRSD's 2010 overall per capita water use is also well below its 2020 target. However, it should be noted that 2010 per capita water uses were likely significantly influenced by water conservation measures implemented in response to the recent multiple-year drought, and reductions in demand as a result of the current economic downturn. DSRSD also has improved its number with a shift of demand to its recycled water program. As a result, future per capita water uses may increase as customers revert to some of their pre-drought water use habits and economic conditions improve. Thus, successful compliance with SBx7-7 will require continued water conservation efforts into the future. City of Pleasanton Water Use Reduction Plan The City of Pleasanton's implementation plan for achieving compliance with SBx7-7 includes the development of Pleasanton's Recycled Water System and the expansion of the City's current Water Conservation Program. The development of Pleasanton's Recycled Water System will reduce potable water use by converting a portion of irrigation connections serviced currently by potable water, to recycled water. By 2020 Pleasanton's Recycled Water System is projected to service major commercial irrigation regions in Pleasanton, as well as numerous City parks. The second component, expansion of the City's Water Conservation Program, will be a collaborative effort including internal operations, program partnerships with Zone 7, City program development, and the community's continual cooperation. The commitment to working towards achieving the City's 2020 Target begins with improving water use efficiency in City operations and City landscaping. The City routinely monitors for water loss from leaks or meter failures. On a bi-monthly basis, the City's billing software monitors for abnormal consumption rates, which results in the early detection of leaks and meter failures. All leaks and meter failures are promptly repaired. The City has also recently optimized its distribution system flushing program. Within the past five years, water-sampling data is used to specifically target areas in need of flushing, rather than flushing the entire system, therefore reducing the amount of water used annually by system flushing. The City has also begun to reduce the turf-footprint on City property. Areas of turf removal are then re-landscaped with a deep level of mulch and where needed, climate- adapted plants. Approximately 159,000 square feet have already been converted to lower Page 8 of 10