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Page 3 of 19 <br />21418818.2 <br />•Base Period SFPUC Reliance: Each Wholesale Customer’s Base Period SFPUC <br />Purchases divided by Base Period Total Potable Water Production, expressed as a <br />percentage. <br />•Base Period Percent Indoor Demand: The single lowest month’s total potable demand <br />(a proxy for indoor use) divided by the average monthly total potable demand, expressed <br />as a percentage. The resulting percentages are averaged for the two selected Base <br />Period years. <br />•Base Period Percent Non-Residential Demand: Each Wholesale Customer’s potable <br />water consumption from the Base Period from all customer categories except residential, <br />divided by the Wholesale Customer’s Base Period Total Potable Water Production, <br />expressed as a percentage. The resulting percentages are averaged for the two <br />selected Base Period years. <br />•Individual Supply Guarantee (ISG): Each Wholesale Customer’s share of the Supply <br />Assurance, as shown on Attachment C to the WSA, with proxies for Hayward, San Jose, <br />and Santa Clara in order to provide inputs for the Tier 2 Allocation Formula <br />There are three exceptions to the Base Period Calculations: (1) Coastside County Water District <br />(“Coastside CWD”) Base Period SFPUC Purchases and Base Period SFPUC Reliance, (2) <br />Stanford Base Period Percent Indoor Demand, and (3) Stanford Population Calculation. <br />(1)Coastside CWD Base Period SFPUC Purchases will be calculated as 94% of its Base <br />Period Total Potable Water Production. Base Period SFPUC Reliance will be fixed at <br />94%. More information is provided in Attachment B. <br />(2)Stanford’s Base Period Percent Indoor Demand calculation will exclude demand from <br />the month of December and/or January when the campus is closed and demand is <br />abnormally low. <br />(3)Stanford’s population is calculated as described in Attachment B. <br />Furthermore, three Wholesale Customers do not have an ISG and a proxy is used in the Tier 2 <br />Plan: (1) Hayward, (2) San Jose, and (3) Santa Clara. Background on ISG and each ISG proxy <br />is described in Attachment B. <br />Data sources, methodologies, and equations used to calculate each input are described further <br />in Attachment B. <br />Step 0: Establish SFPUC Minimum and Maximum Cutback <br />The Minimum and Maximum Cutback establish the upper and lower bounds for each Wholesale <br />Customer’s final allocation. <br />No water is allocated in this step. Instead, allocations in subsequent steps are limited such that <br />no Wholesale Customer’s final allocation is outside the upper and lower bounds (i.e., above the <br />Minimum Cutback or below the Maximum Cutback) established in this step. <br />Minimum Cutback: Each Wholesale Customer will contribute to meeting the Overall Average <br />Wholesale Customer Reduction by taking a Minimum Cutback from its Base Period SFPUC <br />ATTY/RESO.0092/CC RESO APPROVING TIER 2 DROUGHT RESPONSE IMPLEMENTATION PLAN (WATER SUPPLY AGREEMENT) - EXHIBIT A <br />REV: 08-18-25 MI <br /> <br />Page 5 of 21