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26 Susan holds a bachelor’s degree in Accounting and a master’s degree in Finance and Management. She also holds professional certifications from UC Berkeley, Harvard Business School and Pepperdine University and is a Certified Public Accountant. Sources of Water Supply Overview. Zone 7 is the City’s sole wholesale treated water supplier. Imported water from the State Water Project makes up approximately 80 percent of its supply, with the remainder coming from treated surface water blended with local groundwater and local surface water. The City purchases all potable water required for use within the City’s service area from Zone 7, with the exception that the City may extract groundwater per the “terms and conditions” of the City’s arrangement for supply from Zone 7. The treated water delivered by Zone 7 complies with the Requirements for Drinking Water of the California Department of Health Services and the US Environmental Protection Agency, or their successor regulatory agencies. Under its current agreement with Zone 7, the City is limited in developing other water supply sources. Zone 7 is also the groundwater manager of the local groundwater basin, the Livermore Valley Main Groundwater Basin (the “Main Basin”). Zone 7’s water supply has two major components: 1) incoming water supplies available through contracts and water rights each year, and 2) accumulated water supplies in storage derived from previous years. Incoming water supplies typically consist of annually allocated imported surface water supply and local surface water runoff. Accumulated or “banked” water supplies are available in local and non-local storage locations. Imported water from the SWP, which is owned and operated by the California Department of Water Resources (“DWR”), is by far Zone 7’s largest water source, providing over 80 percent of the treated water supplied to its customers on an annual average basis. Prior to 2022 Zone 7 provided approximately 80 percent of supply, with the remainder coming from groundwater pumped by the City and, to a lesser extent, recycled water produced by DSRSD and the adjacent City of Livermore. Prior 2022, the City pumped water from three of its wells, however the wells are no longer used due to lack of regulatory compliance for contaminants. See “Regulatory Requirements” below. The future reliability of Zone 7’s imported water is a concern. Drought, sea level rise, and natural disasters threaten the Sacramento-San Joaquin Delta (Delta), a critical component of the delivery system bringing water to Zone 7. As a result, Zone 7 is participating in various projects that would provide alternate water supplies or protect the existing delivery system against threats. These projects include installing a pipeline system beneath the Delta, desalinating brackish water (water with high salt content), reusing highly treated wastewater, and participating in the construction of a new reservoir to store surplus water in wet years. Based on Zone 7’s efforts and the City’s continued use of groundwater, the City’s future water supplies are expected to keep pace with its water demands. Groundwater. The City’s primary water supply source is purchased potable water from Zone 7, supplemented by groundwater pumped from the Main Basin. The City’s groundwater pumping is limited by its groundwater pumping quota (GPQ) as managed by Zone 7, the local groundwater basin manager. The City augments its potable water supply with recycled water from DSRSD and Livermore. Another limitation for the City’s groundwater pumping is contamination, effectively precluding the use of certain City wells starting in 2023. See “Regulatory Requirements” below.