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very important to maintain the focus on continued efforts to make it through the rest of this year, which still includes several high demand months, as well as to look at potential conditions in 2015. He also acknowledged the community demand for a more long-term solution, which ultimate lies with the state. He advised that a public meeting with all Tri Valley water retailers including Zone 7 will be held at the DSRSD Board Room on August 27th at 5 p.m. and said this is a wonderful opportunity to share concerns with Zone 7. Mr. Lowell attempted to address the issue of a moratorium on development, as has been raised by members of the public, Council and staff. He explained that a moratorium on construction is permissible, pursuant to the city's police power under the state Constitution, based upon a local water emergency. However, the city's action must be based on convincing findings that are grounded in fact. The city has currently declared a Stage 3 Water Emergency. Pursuant to its own Water Conservation Plan, the next step would be a Stage 4 Water Emergency but this does not yet appear warranted. Approximately 80% of the city's water is provided by Zone 7, who also supplies water to the cities of Dublin and Livermore. Zone 7, like the city, has declared a Stage 3 emergency but also has not proceeded to Stage 4, which makes it difficult to make a finding of emergency that would justify curtailing all new construction and uses. This is especially evident when considering that were Pleasanton to impose such a moratorium, but the cities of Dublin and Livermore did not, water would still be going to new construction and uses in those communities until Zone 7 takes action to move beyond Stage 3. Mr. Lowell stated that based on his interpretation of this information thus far, he is concerned with the city's ability to make convincing findings and feels the moratorium could be subject to a constitutional takings challenge that the city is taking private property rights without just compensation. He explained that the moratorium would have to meet the standard that it substantially advances a legitimate government interest by the least restrictive means and does not deny a property owner the economically viable use of its land. Again, this would be difficult to justify when the city's main supplier continues to provide water for new construction and uses in Dublin and Livermore. He stressed that the question of a viable moratorium is complex and likely cannot be satisfactorily answered until there is a better understanding of how Zone 7 will proceed. Despite the upcoming meeting, it is possible that Zone 7 will wait until or even after this winter before taking further action. It is also possible that should the situation become more dire, the state may promulgate emergency regulations superseding the city's and Zone 7's authority, which could allow for moratorium. At this time however, he advised that it is unlikely the Council can make legally sufficient findings to justify the imposition of a moratorium on water hookups. Vice-Mayor Pentin said it is really counterintuitive to ask the community to conserve while also continuing to issue permits. He acknowledged the City Attorney's comments but asked if it might be worth the risk to act as leaders in this regard and hope that other Zone 7 retailers will fall in line. Mr. Lowell said he doubted, based on the fact that Zone 7 is still making water available, that the findings could be made. Vice-Mayor Pentin asked what preparations the city can make now, in anticipation of the August 27th meeting or some future action by Zone 7, to be able act quickly if a moratorium becomes feasible. Mr. Lowell advised that the city could move quite quickly if a moratorium is indeed warranted. He explained that as an emergency action, the noticing requirements are less stringent and a second reading of the ordinance is not required. Additionally, the city has the ability to call a special meeting, which can be done on 24-hours notice upon approval by the Mayor. City Council Minutes Page 7 of 11 August 19,2014