Water Resources Division Annual Report - Fiscal Year 2017-18 WaterResourcesAR-FY17_18 | Page 2

Dear Partners, Customers and Stakeholders: The SFPUC’s Water Resources Division is responsible for the implementation of a robust water conservation program, as well as the development of local water supplies, including groundwater, recycled water, and non‑potable water. Together, these programs supplement and diversify the SFPUC’s portfolio of water resources to enhance water supply reliability and resiliency. Our proactive approach gives us greater flexibility to meet the diverse needs of our customers. San Francisco Bay Area residents and businesses have enjoyed high-quality drinking water for nearly one hundred years. The Regional Water System serves 2.7 million people, supplied from a blend of water from the Hetch Hetchy Reservoir in Yosemite National Park and from five Bay Area reservoirs. While per capita water use in San Francisco is already among the lowest in the country, the SFPUC remains committed to using water efficiently. Conservation is now a way of life in California as the state moves forward with legislation to make common sense water restrictions permanent. While we face increasing risks and challenges to our water supply due to a variety of concerns such as earthquakes, droughts, regulatory changes and population growth, the SFPUC is working harder than ever to ensure a resilient water supply for the next hundred years. Decades of evaluation and planning have gone into developing the new water supply projects that are an important part of diversifying our supply today. The SFPUC showcases innovative solutions to address pressing water challenges. We have led the nation in decentralized non-potable reuse. To date, the total potable water offset resulting from our Non-potable Reuse Program is approximately 89 million gallons per year and will continue to grow. This year the agency has also advanced the science of purified water with PureWaterSF, a research program launched at our headquarters to test bringing treated wastewater to drinking water standards. These projects mirror an evolution in the organizational thinking at the SFPUC, a new framework for how we do business called OneWaterSF. The framework is a shift from considering one project at a time to planning more holistically, considering the impacts of one water source on another, and the synergies within our water system operations. Change is not always easy, and we have faced the challenges head on, because diversifying our supply through our Local Water Program projects is one of the most important steps we can take to ensure that public health and economic vitality are protected for generations to come. On behalf of the SFPUC, I am pleased to issue the Water Resources Division Annual Report for Fiscal Year 2017-18. Paula Kehoe, Director of Water Resources