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BACKGROUND Now in the fourth year of drought in California it has become more and more apparent that diversifying our water portfolio is key to long-term sustainability. The City Council adopted exploration of IDPR as a Council Priority for 2015. This was in conjunction with our already robust water conservation program, and the new recycled water project now under construction. In addition to these locally initiated programs, it is important to demand diversity from our water wholesaler, Zone 7, so that we are not so dependent on the State Water Project for most of our water. Dependency of the State Water Project has been a challenge as evidenced by the second year of water usage cutbacks. Advanced water recycling efforts in the 1990's in the Tri-Valley were not successful mainly due to it being a novelty at the time, and a lack of education and understanding of policy makers and the public. Since that time, there has been significant technical advances in the process, and the State has now approved IDPR and has streamlined the permitting process, and there are many examples of successful IDPR projects throughout the United States and California. DISCUSSION The Water Policy Liaison Group comprised of Pleasanton, Livermore, Dublin San Ramon Services District, California Water Service, and Zone 7 Water Agency has recommended that all the local water agencies initiate the polling and education process using the Intergovernmental Services Agreement that was approved by all agencies during the Utility Integration Study. Councilmembers Brown and Narum supported this recommendation to proceed on behalf of Pleasanton. It was agreed that all agencies request their elected bodies approve this step and be equal partners in moving this effort forward. The participating agencies are scheduled to present this item for approval in August and September 2015 to their respected bodies, so that the process can begin this October. Pleasanton has volunteered to take the lead on issuing a contract to a qualified consultant that has successfully done this work for other agencies. There are a number of successful programs available for us to follow. Each agency will participate equally in the cost share to reimburse Pleasanton. Staff from the participating agencies have met with the executive managers from each agency and formed a policy level oversight group. As soon as participating agencies approve the Task Order, a Technical Advisory Committee will be formed, which will include public information staff and technical experts from each agency. This is an exciting opportunity for the Tri-Valley to move forward, to become more sustainable during this and future droughts in California. It will also greatly improve local water quality if a project does become of this effort. Page 2 of 3