1. Park Water Company Water Shortage Contingency Plan June 3, 2015

2. California Historic Drought 2 Abnormally Dry Moderate Drought Severe Drought Extreme Drought Exceptional Drought  Exceptional drought covers 47% of State  37 million people affected by drought  Statewide snowpack is 2% of average  Surface water and groundwater reservoir levels remain low

3. California Historic Drought 3 April 2015 April 2010 “ Today we are standing on dry grass where there should be five feet of snow. This historic drought demands unprecedented action … Therefore, I'm issuing an executive order mandating substantial water reductions across our state.” - Governor Brown

4. 4 Governor’s Executive Order  April 1, 2015: Governor Brown orders mandatory water reduction across California to cut water usage by 25% compared to 2013  May 5, 2015: State Water Board adopts emergency regulation requiring 25% reduction in statewide urban water use (effective June 1, 2015)  May 7, 2015: PUC orders water companies to comply with State mandate and achieve 25% water usage reduction

5. 5 Mandatory Water Use Restrictions Residential Water Use Restrictions:  No outdoor irrigation runoff  Use only hoses with shut-off nozzles to wash vehicles  No washing of hard-surfaced, non-porous areas (buildings, driveways, etc.)  No use of non-recirculating water fountains and decorative features  No outside watering 48 hours after rain event

6. 6 Mandatory Water Use Reductions  State mandate is effective June 2015 thru February 2016  Based on per capita consumption, State Water Board assigned each utility a annual reduction target ranging between 4% and 36%  Our annual reduction target is 8% (as compared to our 2013 usage)  We reduced usage in 2014 but still need additional conservation to achieve 8% target  We submitted our 4-stage plan to comply effective June 22, 2015

7. 7 Water Shortage Contingency Plan We plan to implement Stage 1 of our plan  Adhere to all mandatory water use reductions  Limit outdoor irrigation to 3 days/week o Even number addresses: Mon, Wed & Sat o Odd number addresses: Tue, Thu & Sun o 10 minutes per station per water day o No watering between 8 am and 7 pm  Repair leaks within 5 business days

8. 8 Water Shortage Contingency Plan Stages 2 - 4 (if needed)  Watering will be more limited: o Stage 2 – 2 days/week, 10 min o Stage 3 – 2 days/week, 5 min o Stage 4 – 1 day/week, 5 min  Leaks need to be repaired more quickly: o Stage 2 – Within 3 business days o Stage 3 – Within 2 business days o Stage 4 – Within 2 business days

9. 9 Water Shortage Contingency Plan Stages 2 - 4 (if needed)  Establish residential customer baseline using 2013 average usage  Implement residential allocations based on 2013 average baseline less 8% o 9 ccf per month (November thru May) o 12 ccf per month (June thru October)  Assess drought surcharges on all residential usage in excess of residential allocations o Stage 2 – ½ of Tier 1 rate o Stage 3 – Tier 1 rate o Stage 4 – 1 ½ times Tier 1 rate

10. 10 How to Read Your Bill 13ccf 2 months = 6.5 ccf/mo... Usage in 2013 Usage in 2015

11. 11 Water Shortage Contingency Plan Stages 2 - 4 (if needed)  Assess drought surcharges on all non- residential usage o Stage 2 – 10% of quantity rate o Stage 3 – 20% of quantity rate o Stage 4 – 30% of quantity rate

12. 12 Water Shortage Contingency Plan  Monthly residential allocations for water usage and drought surcharges limited to Stages 2 – 4  Customers will be notified when stages are changed  An appeals process will be available for customer seeking a variance from plan provisions  Failure to comply with provisions may result in installation of flow restrictor

13. 13 Conservation Tools  Bathroom and Kitchen Aerators  Shut-off Nozzles  Shower Timers  Moisture Sensors  Toilet Replacements  Home Water Audits For more information, visit Park’s website: www.parkwater.com/conservation/rebates- programs

14. 14 Rebate Programs  High Efficiency Clothes Washers  High Efficiency Toilets  Rotating Sprinkler Nozzles  Weather-based Controllers  Soil Moisture Sensors  Rain Barrels For more information, visit So Cal Water Smart’s website: www.socalwater.com

15. 15 Turf Removal Program  MWD approves $450M budget for conservation programs over two years  Residential customers may apply and receive $2 per square foot of turf removed  Maximum $6,000 per property BEFORE AFTER

16. 16 Turf Removal Program Application Process: Step 1: Apply online @ www.socalwatersmart.com for project approvalwww.socalwatersmart.com BEFORE Step 2: Submit rebate application, including: o 5 photos of completed project area o current water bill o synthetic turf receipts

17.  Follow all mandatory water use restrictions  Limit outdoor watering to 3 days/week for 10 mins/watering day  Repair leaks within 5 business days  Take advantage of Park’s conservation devices, rebates, and programs  Please pick up the fact sheet that sums it up 17 In Summary

18. 18 Park Water Company This presentation and other drought information are available on our website: www.parkwater.com/conservation Thank You