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BACKGROUND In its 2017/2018 Priorities Work Plan, City Council identified "Adopt Water Conveyance, Conservation and Diversification Portfolio Policy" as a Priority A Goal. Staff has developed draft "Policies for Sustainable Water Supplies" (Policies) to meet this Priority. At the March 28, 2018 Committee on Energy and the Environment meeting, Committee members suggested a few edits to the policies and recommended that a Glossary of Terms be developed to define industry terms to help make the policies more understandable for the public, which was supported by members of the community at the meeting. DISCUSSION The policies establish a framework for conducting a high-level assessment of options to increase the long-term reliability of the City's safe water supply to its customers. The ten policies address the City's Urban Water Management Plan (2015), the California Water Action Plan (2016), and SB X7-7 (2009) to reduce urban per capita water use by 20% by 2020. The policies are also being proposed in anticipation of future legislative changes reflecting the Governor's Making Water Conservation a California Way of Life Plan. The Dublin San Ramon Services District (DSRSD) and the Zone 7 Water Agency have also established similar policies. Attached is a comparison of their established policies with Pleasanton's proposed policies. Our proposed policies address: • Water supply reliability; • Conservation targets; • Diversification; • Quality; • Resiliency; • Environmental impacts; and • Partnering with the Tri-Valley water agencies. The policies define qualities important to the City in an optimal water supply portfolio and are intended for use to guide the City in its evaluation of individual water supply options, and ranking of long-term water supply portfolios. Following Council's adoption of these policies, staff will pursue the development of a Long-Term Alternative Water Supply Study that will include a high-level assessment of long-term water supply options and portfolios, and help the City achieve its water management objectives. Submitted by: Approve by: Kathleen Yurchak Nelson Fialho Director of Operations and Water Utilities City Manager Page 2 of 3