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BACKGROUND In May 2014, the Department of Water Resources (DWR) reduced water allocations to the Tri-Valley and the City adopted a Stage 3 Water Conservation Plan and enacted a local drought emergency by Resolution 14-678 (Attachment 2) that has remained in effect. Over the past two years, the Tri-Valley achieved significant water savings through its conservation efforts. As a result of these efforts, the Tri-Valley reported some of the highest water conservation levels in the entire State. In 2015, the City conserved 37.7% or 2.23 billion gallons as compared to 2013, and to date in 2016, the City has conserved 36.6% or 1,210,000,000 gallons of water as compared to 2013. On February 2, 2016, the State Water Resources Control Board extended emergency regulations to October 31, 2016. In March 2016, a series of storms brought much needed snow to the Sierras and northern reservoirs began to fill above the flood pool, which resulted in the DWR issuing a final State Water Project allocation of 60% in April 2016. With improved conditions, on May 9, 2016, Governor Brown issued Executive Order B- 31-16 calling on the State Board to modify emergency water conservation regulations 9 Y 9 Y 9 through the end of January 2017. The Governor also shifted focus to a new long-term water use efficiency framework to limit water waste, rather than just focusing on drought response. On May 18, 2016, the State Board adopted a new state-wide conservation approach and methodology that replaces the prior percentage reduction-based water conservation standard that the City has been following for the last two years, with a locally driven, supply-based assessment. On June 7, 2016, the City Council adopted a Stage 1 water shortage with a 10% voluntary conservation level; continued the local Drought Emergency Declaration, and adopted amendments to Municipal Code 9.30 (Water Management Plan). Subsequent to this meeting, on June 15, 2016, the Zone 7 Water Agency Board adopted a resolution ending the local drought emergency, and calling for 10% voluntary water conservation throughout the Tri-Valley. This action was taken based on Zone 7's analysis of the Tri-Valley water supply, relative to the State Board's guidelines for self-certification for conservation requirements. On June 22, 2016, City staff confirmed this analysis (Attachment 1) and submitted its self- certification to the State, concluding that over the next three years, a water shortage is not anticipated based on Zone 7's water supply to the Tri-Valley. However, staff also believes that it is prudent to remain cautious about water conditions in the coming years and that it remains necessary to encourage continued wise use of water and to eliminate water waste. DISCUSSION The State Board's current regulations include specific guidelines and transition to permanent, long-term improvements by taking the following actions: 1. Use water more wisely; 2. Eliminate water waste; 3. Strengthen local drought resilience; and 4. Improve agricultural water use efficiency and drought planning. Page 2 of 3