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Mr. Smith reviewed the role of the State Water Project (SWP), which has provided water to the Tri- Valley since 1960. Early allocation projections from SWP indicated the region would receive 5% of its allocation in 2014. However, this was reduced to zero as of last Friday. He discussed water storage and conveyance systems that provide for the city's annual supply, noting that any carryover supply is transferred to one of several reservoirs or groundwater basins for storage or to trade. These carryover and dry year transfer supplies are typically available for future use, but extremely dry conditions such as these threaten to shut down the California Aqueduct which would mean there is no physical way to pump those supplies back to the region. The Oroville Reservoir, which typically provides nearly 80% of the local water supply, recently indicated that nonfunctional river valves in the lake mean the last 800 acre feet of water will not be accessible for several years until the valves are repaired. Therefore local assets, including Lake Del Valle, the Chain of Lakes and its groundwater basin and wells, as well as recycled water assets could potentially be the only water source available this year. Of these resources, all are suffering from the same prolonged dry conditions and projected supplies are rapidly dwindling. As recently as two weeks ago, the city's expected water supply was 64,000 acre feet and that has since reduced 54% to just 29,000 acre feet. The Stage 1 recommendation currently proposed calls for a voluntary 20% reduction in water usage, which would still leave a 27% deficit in the water needed to endure a typical summer under current forecasts. Staff has and will continue to spend considerable time working with Zone 7 and other retailers to coordinate with regional partners and evaluate all potential supplies. Immediate plans are to redirect as much as possible from the aqueduct to Lake Del Valle before it is closed, optimize ground water pumping to protect the basin, identify the potential for any trades with other agencies, integrate the use of the Chain of Lakes with several new groundwater wells and to support local recycled water projects. Pleasanton's two projects at Valle Vista Park and CLC are scheduled to open soon and will save over 32.5 million gallons over the course of the season. Staff anticipates having a clearer picture of precipitation levels and a course of action when Zone 7 issues its annual sustainability report in April. Mr. Smith briefly discussed typical water usage in Pleasanton, both residential and commercial. He reported that following the institution of SB X7-7, which demanded a 20% reduction in water usage by 2020, Pleasanton's total consumption has decreased from a 10 year average of 244 gallons per person per day to 229 gallons per person per day in 2013. The goal of SB X7-7 is 195 gallons per person per day, which is what is now being requested as part of the current shortage. Councilmember Cook-Kallio asked staff to put 50 gallons per person per day into some sort of context. Mr. Smith explained that as little as 5 minutes of irrigation runoff wastes 400 gallons and that limiting showers to 5 minutes would save the average user 20 gallons per day. He stressed that this is a very achievable goal if given appropriate level of effort. Mr. Smith reviewed the Pleasanton Water Conservation Action Plan, which requests that the Council declare a Stage 1 water shortage and calls for a 20% voluntary reduction in consumption. Staff will activate the internal drought committee to work with Zone 7 to monitor the drought and advise the Council on any progress. As requested in the Governor's declaration, the Council will be asked to update its legal drought planning authority to institute mandatory reductions and potential rate increases. Staff will work to educate the public through outreach campaigns and the now active hotline, which can be reached by dialing 931-5504. The public is also encouraged to go to TV30.org to view last. week's forum hosted by John Laird of the National Resources Energy Agency that included presentations from Zone 7 and local retailers on local conditions. As noted earlier, the city will be accelerating its own recycled water projects, perhaps with assistance from the state in the form of streamlined environmental review processes and zero interest 30-year loans for local programs. City Council Minutes Page 3 of 15 February 4,2014