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reduction targets and is hopeful for additional precipitation beginning later this fall and through winter. On December 1st, 2014 the State Water Project released its initial allocation for 2015 supplies at 10%. Zone 7 has requested 80,619 acre/ft for the Tri-Valley. The allocation now stands at 10% of that or 8,062 acre/ft for 2015. This allocation will be revised as the season progresses and we find out how much precipitation we get this winter will go up or down. The allocation last year did the same and we ended up at 0% allocation which was revised to 5% on September 1, 2014. The efforts that the retailers and Zone 7 have been engaged in to diversify our water portfolio have begun to lead to some alternatives for 2015. Zone 7 has a tentative agreement to purchase an additional 300 acre/ft from Yuba County Water for a five year period at a fixed rate of approximately $470 ac/ft, this is an important option if the drought continues even though the cost is a little high. Zone 7 also has approved a one year purchase of 2,500 ac/ft of water with Contra Costa Water at a cost of $200 an ac/ft which is a very reasonable price during drought and will make a big difference next year if the State allotment does not improve significantly. This purchase will still need to be approved by the State. These diversification efforts are a direct result of the water liaison committees from the various agencies pushing to improve our water supply options and it will be important to keep up this effort with Zone 7. The next public water policy meeting will be held on Thursday February 4, 2015 in Pleasanton at 5PM at the City Operations Service Center, 3333 Busch Rd. Subvst t b : Approv by: ++►;4 • Daniel S ith Nelson Fialho Director of Operations City Manager Services Attachments: 1. Mandatory reduction chart progress through November 2014 2. State Water Project Allocation Notice Page 3 of 3