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THE CITY OF 9 1 -° -"" CITY COUNCIL AGENDA REPORT (9 pLEASANTONo • May 6, 2014 Operation Services TITLE: CONSIDER ADOPTING A RESOLUTION DECLARING A STAGE 3 WATER SHORTAGE AND MANDATING A 25% REDUCTION IN WATER USAGE; A RESOLUTION PROCLAIMING A LOCAL DROUGHT EMERGENCY; AND INTRODUCING AN ORDINANCE TO AMEND MUNICIPAL CODE §§9.30.080 AND 14.04.060 TO PROHIBIT OUTDOOR IRRIGATION DURING RAIN SUMMARY The Stage 1 water shortage adopted by the City Council in February 2014 implementing a voluntary 20% reduction in water usage has not been successful in meeting water reduction targets. In addition, on April 16, 2014, Zone 7 informed the City that Zone 7 will be able to provide only 75% of the treated water necessary to meet water requirements. In view of this reduction and the ineffectiveness of the Stage 1 water shortage plan, staff is recommending that the City Council declare a Stage 3 water shortage and mandate a 25% reduction in water usage immediately. Related to this action, staff is also recommending that the City Council adopt a resolution proclaiming a Local Drought Emergency arising from decreased water supplies and introduce an ordinance prohibiting outdoor irrigation when it is raining. RECOMMENDATION Staff recommends that the City Council: (1) adopt the attached resolution declaring a Stage 3 water shortage and mandating that Pleasanton water customers reduce their potable water usage by twenty-five percent (25%); (2) adopt the attached resolution proclaiming a Local Drought Emergency; and (3) introduce the attached ordinance to amend the municipal code to prohibit outdoor irrigation when it is raining. FINANCIAL STATEMENT As the drought continues, staff will be analyzing the financial impact to the water enterprise fund budget and return to Council with information. This may include: (a) increased costs to treat water as a greater percentage of water is expected to be groundwater; (b) decreased revenues from (hopefully) decreased water usage; (c) reallocation of staff resources to provide services to residents and businesses to help them reduce water usage; (d) higher energy costs due to increased groundwater pumping; (e) reallocation of multi-department staff resources to enforce mandatory reductions and minimize water waste; and (f) increased costs for water used at City facilities if Zone 7 increases its water rates. Also,the City will impose stage 3 penalties against water customers who fail to reduce their water consumption based on 2013 use by 25%. •