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Vice-Mayor Pentin asked how best to share this information with those who might question why the city is not moving forward now. Mr. Lowell said he would work with the City Manager's office to identify the best approach. Councilmember Cook-Kallio asked and Mr. Lowell confirmed that it is quite possible the state may step in and issue its own moratorium. She asked whether there is any indication that this is likely. Mr. Smith stated that the state has recently implemented some fairly strict reporting rules and is watching the situation closely, which many believe is a preamble to that sort of action. Councilmember Cook-Kallio noted for the record that Secretary Laird of the California Resources Agency has complimented Mr. Smith on the actions taken in Pleasanton specifically. Mayor Thorne asked and Mr. Smith confirmed that Pleasanton is leading the state in water conservation. Mr. Fialho advised that the Zone 7 liaison meeting on August 27th has items agendized for discussion that relate specifically to their update to the region regarding the 2014 water supply and what they perceive to be the outlook through 2015. The retailers are pressing Zone 7 to hold monthly meetings on the issue of water supply and policy in general and will also recommend Zone 7 along with the retailers host monthly roundtable sessions whereby they can talk about some of these supply, conveyance and storage issues in a very public setting and force the discussion about the long term plans for the Tri Valley. Councilmember Brown said that to use Zone 7, which supplies 80% of the city's water, as a measuring stick for when to institute a moratorium seems unrealistic. She noted that the city's Stage 4 Emergency allows for a moratorium regardless of actions in Dublin or Livermore, and said she felt the public was simply asking that this particular action be brought from Stage 4 to Stage 3. Mr. Lowell explained that the Council adopted Water Conservation Plan has stages, the third of which the city is now and the fourth of which would allow the city to move forward with a moratorium. However, staff does not feel that conditions have reached the level that would constitute a Stage 4, in part because it is looking to Zone 7 to say that is where they are. Councilmember Brown asked and Mr. Lowell confirmed that declaring a Stage 4 Emergency would require an ordinance passed by a majority of the Council. She then asked if a Council majority could, taking into account Mr. Lowell's comments, institute a moratorium. Mr. Lowell confirmed, provided the Council also declared a Stage 4. Mr. Fialho explained that it requires a similar emergency declaration from Zone 7 stating that they cannot deliver sufficient water to meet existing demands, which they have not done. What Zone 7 has said is that after the upcoming winter months they will assess the water supplies for the remainder of 2015. At that point they may call for a higher level of conservation, or Stage 4 which is essentially an acknowledgement that Zone 7 does not have the ability to meet existing demands in the Tri Valley. If that happens, staff would bring forward its own Stage 4 declaration that allows for implementation of a moratorium. Councilmember Brown contended that Zone 7 cannot meet the demands of the Tri Valley at present. Mr. Fialho clarified that Zone 7 has said it can meet demands with a 25% rate of conservation, which is not the same as saying it cannot meet demands. He explained that are other moving parts to consider, one of which is the potential release by the state of an additional supply to Lake Del Valle in the fall. He City Council Minutes Page 8 of 11 August 19,2014