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For water shortages up to 20%, the Tier One water shortage plan will be applied. The Tier One plan does not apply to system-wide shortages greater than 20%. Implementing water use reduction greater than 20% requires the SFPUC to meet and discuss with Wholesale Customers a strategy for meeting incremental reductions above the Tier One plan. The SFPUC has the authority to make final allocation decision for the portion above 20%, though the Wholesale Customers have the contractual right to challenge the proposed approach. The Tier 2 Drought Response Implementation Plan, which allocates the wholesale share during dry years, applies only to system-wide shortages of 20% or less; because the projected wholesale cutbacks in this UWMP range from 31% to 48%, the Tier 2 Plan cannot be applied. The City will exercise its contractual right to challenge any proposed allocation greater than 20% that is not supported by reservoir- storage and supply-availability data at the time the allocation is contemplated, and reserves all rights and remedies available under the Water Supply Agreement, Section 3.11(c)(3). This analysis assumes the relative split of available water between SFPUC Retail and Wholesale Customers will be the same for shortages greater than 20% as shortages of 20%. Editor's note — The Tier 2 acknowledgment is staff's own (Item 4 staff report p. 6, fn. 7); putting it in the UWMP body, rather than only in the staff report, makes the limitation visible to Council and to ratepayers. The reservation-of-rights sentence does not reject SFPUC's analysis; it records that any future >20% allocation will be evaluated against then- current physical supply, consistent with the WSA contractual right that the existing paragraph already references. This is the textual change a Commissioner suggested at the March 31, 2026 UAC meeting (per staff report, p. 9). ────────────────────────────────────────────────────────────────────────────────────────── Edit 6 — New Appendix: SFPUC End-of-Year Storage Under the Design Drought Subject: add an appendix table so readers can see SFPUC system storage at the end of each Design Drought year. There is no existing UWMP text to replace; this is a proposed new appendix entry, to be referenced from p. 92 (where the UWMP describes the Design Drought as an 8.5-year sequence) and from p. 116 (where the multiple-dry-year cutbacks are presented). Proposed appendix entry (full text shown as insertion): Appendix [X]: SFPUC System Storage Under the Design Drought. The table below presents SFPUC end-of- year system storage under the SFPUC's 8.5-year Design Drought sequence, assuming the Bay Delta Plan is in effect and using SFPUC 2050 demand projections. The table is included for transparency: it shows that, even under the SFPUC's own most-severe planning scenario, system storage remains above 600 thousand acre-feet (TAF) at the end of year 5 and does not approach the RWS "dead pool" of approximately 96.8 TAF until the end of year 8. The cutback percentages presented in Table 27 (UWMP p. 117) are therefore a function of SFPUC storage-management rules under the Design Drought model, not a function of physical absence of water in the system. Proposed Appendix Table: Design Drought 86–87 87–88 88–89 89–90 90–91 91–92 92–76 76–77