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of its total use. One caveat is that the use of recycled water can increase salt build up in the groundwater basin that is situated directly beneath Pleasanton. While manageable, it could increase the overall costs of the program. Kurt Aaron, Zone 7 Assistant General Manager, Engineering and Operations, said Zone 7 does a significant amount of planning to ensure an adequate supply year to year; the real concern is more long-term. In recent years, planning was based on the assumption that Zone 7 would receive only 76% of its contracted amount from the state but new long-term projections are indicating that will decrease to nearly 60%. He briefly discussed the Bay Delta Conservation Plan, which most believe to be the best chance at creating a long-term solution that balances the ecosystem, water supplies, and the needs of all users. Mayor Hosterman said it is her understanding that the state has entered into water contracts amounting to roughly 8.4 times the available supply. She asked if there is any truth to this and if so, how Zone 7 and other agencies will be able to cobble together the resources to serve the current population and that required under state housing mandates. Mr. Aaron confirmed that members of the State Water Project have contracted for certain amounts of water and that this is not always the amount provided. The focus of local agencies, however, is more on getting a reliable amount rather than the full contract. At present, they may not be getting the full amount but in the end, depending on what occurs in the Delta, they may receive more. Councilmember Sullivan referred to the Annual Water Retailers Report, which identified short-term supplies over the next five to ten years but not beyond that. At the latest Water Retailers meeting, discussion turned to the regional desalination project. Zone 7 is relying largely on this project but there are a number of unknowns that may make it unviable. Given the overall uncertainty in terms of supply and the projected population growth, at what point do state housing mandates enter the discussion? The Council generally voiced similar frustration in terms of the lack of accountability. It is clear that Association of Bay Area Governments (ABAG) is issuing growth mandates without consideration of what current supplies can support. Meanwhile, local agencies are desperately trying to get a handle on the bottom line in terms of how much water is needed to be able to maintain the level of service and quality of life that residents deserve. Local elected officials need to be much more proactive with state legislators about tackling these issues now rather than later. Mr. Fialho concurred and said this also ties into the Council's discussion on growth management. There is a clear need for dialogue at both the state and local levels about how the legislative landscapes between Regional Housing Needs Assessments (RHNA) and the available water supply conflict. In the short-term, from a current RHNA cycle perspective, there is sufficient water but a conflict could possibly present in the next round or two. BREAK Mayor Hosterman called a brief recess at 8:31 p.m. and reconvened the regular meeting at 8:37 p.m. 12. Review of framework for amended Growth Management Ordinance Assistant City Manager Bocian provided a slide presentation of the staff report. He briefly reviewed the City's existing growth management program and the subcommittee, comprised of Councilmembers McGovern and Thorne, efforts to date. As part of the 2009 settlement with Urban Habitat, the City Council requested a review of the existing Growth Management Ordinance in order to ensure consistency with state law, develop a nexus between limited infrastructure and the future rate of construction, and to retain current quality of life standards for existing residents and businesses. Both state and regional laws and regulations as well City Council Minutes Page 4 of 7 March 20,2012