Agdapkt 2010-12-06 clsd and regular

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6.3B Memo To: Water Management Representatives Page 6 November 5, 2010 Page 3 of 4 On August 25, 2010, the Appointed Water Management Representatives unanimously agreed to recommend adoption of the Tier 2 Plan to each of their respective governing bodies. Term of Tier 2 Drou�ht Imnlementation Plan The Tier 2 Plan term is through December 31, 2018. The Tier 2 Plan allocates the collective Wholesale Customer share among each of the 26 wholesale customers through 2018 to coincide with San Francisco's deferral of decisions about additional supply until at least 2018. At the same time, the SFPUC imposed the Interim Supply Limitation which limits the volume of water that the RWS could deliver to San Francisco and the Wholesale Custoiners to 265 MGD until at least 2018. The adoption and implementation of the Tier 1 and 2 Plans and San Francisco's unilateral imposition of the Interim Supply Limitation are independent and unrelated. The Tier 1 and Tier 2 Drought Allocation Plans apply only during times of water shortages caused by drought. San Francisco's Tnterim Supply Limitation applies in all years through at least 2018, regardless of water supply availability. ' Effect of Tier 2 Drou�ht Implementation Plan The Tier 2 Plan will establish an allocation formula that will determine how the available water from the RWS will be allocated amon� the individual Wholesale Customers in system-wide , shortages up to 20%. In general, the allocation formula can be described as follows: • 33.3% weight applied to individual agency's Individual Supply Guarantee (with slight variations for Hayward, San Jose, and Santa Clara) • 66.6% weight applied to a Base/Seasonal calculation using 3 yeaz average inonthly production values for all supply sources • 10% minimum cutback and maximum cutback equal to no more than the average cutback plus 20% • Guaranteed sufficient supply of water to East Palo Alto to meet health and safety needs for its community Sunuorting Documents and Enclosures Enclosed are several supporting documents that may be useful for your agency in developing the staff report andlor presentation for your goverrung board on this subject. These enclosures include: • Template Agency Resolution (Enclosure 1) ■ Exhibit A: Tier 2 Drought Allocation Plan and attaclunents (including an example calculation). • Tier 1 Plan as adopted as part of 2009 Water Supply Agreement (Enclosure 2)