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BACKGROUND The City of Pleasanton recognizes the critical role of recycled water in providing a reliable water supply to its customers and in meeting water conservation goals as requested by the Governor and the State Water Board Dublin San Ramon Services District (DSRSD) and East Bay Municipal Utility District (EBMUD) Recycled Water Association (DERWA) and the City of Pleasanton entered into an agreement to provide recycled water treatment and delivery services dated January 7, 2014 The first phase of DERWA facilities expansion construction included the Pleasanton owned Sixth Filter project which was completed April 2016 The first phase sixth filter project provides the City with a recycled water supply of up to 1 9 million gallons per day (mgd) of supply which is delivered to irrigation customers along the recently completed Purple Pipe project DERWA will commence construction on the second phase of facilities expansion December 2016, and the project is expected to be completed February 2018 With completion of the second phase, Pleasanton will have the rights to a recycled water supply of up to 4 2 mgd which should be adequate to meet max-day irrigation demands for all existing and future Purple Pipe customers Although the DERWA second phase construction project will be managed in a way to reduce the risk of recycled water service interruptions, this agreement will cover intermittent temporary recycled water outages if they occur by supplementing the recycled water supply with potable water purchased from the City DISCUSSION Because prolonged outages in the recycled water supply may cause significant harm to public amenities such as parks and school yards, as well as private landscaping, it is prudent to have a backup plan to mitigate those possibilities Supplementing the recycled water supply with potable water is the most feasible temporary solution, and because neither DSRSD nor EBMUD have potential potable service connections in the area of the DERWA treatment plant, it makes sense that Pleasanton, who is an active partner in the recycled water project, provides the necessary connection and temporary water supply as may be required Both the City Attorney's office and DERWA counsel have reviewed and approved the agreement DERWA will be presenting the agreement to their Board for approval at their next scheduled meeting to be held on December 20, 2016 Submitted by Approved by 40 111, R Ttsar-/ OlitZ Kathleen Yurchak Nelson Fialho Director of Operations City Manager and Water Utilities Attachments 1 Agreement to Provide Temporary Water Supply by and between DERWA and the City of Pleasanton Page 2 of 2