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System Wide Potable Water Supply :me .20% -12% -3% dx -18% 8% 1200 0 1000 I 800a00600 i10 II II �Current Year 200 = :ent increase Reduction(-) cinths Figure 1. Water Conservation Summary for 2020 Baseline Usage The water situation for the City remains stable with adequate supply available to meet customer demands, especially with customers meeting or exceeding the water use reduction targets. Zone 7 intends to meet City water demands using a combination of local groundwater and imported water. Zone 7 has been relying more on local groundwater than in past years to meet demands while it holds stored SWP water in reserve should the drought continue into future years. Zone 7 is currently providing 64 percent surface water and 36 percent groundwater to its customers. The Livermore Valley Groundwater Basin is at approximately 91 percent capacity making it a good choice to use early in the drought. However, Zone 7 is monitoring groundwater withdrawals closely and intends to use stored SWP water to replenish the groundwater basin if needed. The City will continue to pump its full groundwater allocation through its wells as authorized by Zone 7 and take less water through its turnouts as conservation reduces demands. Stage 2 Water Drought Rates The City adopted Drought Rates as part of the 2015 water and sewer rate study, which was after the last drought in 2013 and 2104. At that time, applying Excess Use Penalties was the only mechanism imposed during the last drought and there were limitations on how the fees were spent. The purpose of the Drought Rates is to help keep the City's utility financially sustainable during a drought or water shortage emergency. Drought Rates help offset the revenue impacts of decreased consumption while also providing an additional incentive to conserve water and discourage wasteful or inefficient water use through pricing. Page 3 of 6