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BACKGROUND Upon adoption of the City of Pleasanton RWFS in November 2013, City Council directed staff to initiate the environmental review process necessary to further the Recycled Water Project, as detailed in the adopted RWFS. In February 2014, Council approved the Agreement with SMB Environmental, Inc. for CEQA and NEPA environmental consulting services. The resulting Draft IS/MND found construction of the RWP could have a significant effect on the environment, however, there will not be a significant effect because of the subsequent mitigation measures the City has agreed to follow. These mitigated measures are documented in the Mitigated Negative Declaration. On June 26, 2014, to initiate public review of the Draft IS/MND, the City filed a Notice of Completion for the proposed project with the Governor's Office of Planning and Research (State Clearinghouse) and the County of Alameda, and released the Draft IS/MND for a 30-day public review. Copies of the Draft IS/MND were available for review on the City's website, the City of Pleasanton Library, and at the Operation Services Center Counter. Staff also held a public workshop to receive public comments on the Draft IS/MND on July 22, 2014 at 6pm. During the 30-day public review period, a total of three comments were received by letter from the following agencies: • State Water Resources Control Board, July 18, 2014 • California Department of Transportation, District 4, July 21, 2014 • Zone 7 Water Agency, July 25, 2014 Staff reviewed and considered the comments from each agency and prepared responses to each comment noted, which are detailed in the Final IS/MND. DISCUSSION Adequate water supply throughout California is of critical concern to our community and the purpose of the RWP is to construct and operate a new recycled water system to replace and augment existing irrigation supplies in the City's service area. The development of recycled water service within the City will lessen the demand for Zone 7 potable water supplies and help the City meet the State of California's Water Conservation Act of 2009, which requires a 20 percent reduction in urban per capita water use by the year 2020. Furthermore, the addition of recycled water to the City's water supply portfolio will increase the City's water system's reliability since recycled water is a local supply within the City's control and is drought-resistant. Approved by: Approve by: • V yeaheLeksik Daniel Sm' h 7C-Jonathan Lowell Nelson Fialho Operation Services City Attorney City Manager Director Page 2 of 3