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Councilmember Cook-Kallio asked and Mr. Smith confirmed that circumstances under which someone could request a waiver and the tools used by staff to determine their eligibility for such would still be available in this next billing cycle. Councilmember Narum asked staff's plan for communicating these changes to residents. Mr. Smith said their efforts will include the Drought Action Center, bill notices, a press release and some advertizing in the local papers. Councilmember Brown asked and Mr. Smith confirmed that if approved tonight, the changes would be effective immediately and in time for the start of the next billing cycle which begins tomorrow. Mr. Smith concluded his presentation, reporting that the local liaison group comprised of other water retailers and Zone 7 had its first meeting last month. The next meeting, which will focus on local water policy, is scheduled for September 27, 2014 at 9 a.m. at Beeb's Sports Bar & Grill in Livermore. Mayor Thome opened the item for public comment. Mike McDermott addressed the Council on behalf of an elderly family friend who found herself hit with a rather large fine as the result of a crack and leak in her swimming pool. He explained that her current dilemma is one of repairing the pool, which will require draining and filling the pool and surely result in fines, versus allowing the leak to continue and also incurring fines. He asked if there is any one time exception to be had for those who correct chronic waste issues and whether the drought has caused any land subsidence which might be leading to problems with pools cracking in town. Mr. Smith said he was not aware of any significant subsidence and also assured Mr. McDermott that he would do everything he could to work with his friend if she contacted him directly. Mayor Thome closed public comment. Councilmember Cook-Kallio commended staff on their herculean efforts to educate the public and reiterated that the penalties are in place not because the city wants to rob people of their roses but because there is a concern for public safety. Councilmember Brown commended the citizens on their incredible efforts as well. MOTION: It was m/s by Cook-Kallio/Narum to accept the drought water update and authorize administrative reduction of excess use penalties based on water supply and climatic conditions. Motion carried by the following vote: AYES: Councilmembers Brown, Cook-Kallio, Narum, Pentin, Mayor Thorne NOES: None ABSENT: None 10. Consider selection of Below Market Rate Affordable Housing Units or a cash payment in the amount of $4.5 million for the recently approved E&S Ring 345 unit multi-family housing development (PUD-87) located at 3150 Bemal Avenue Assistant City Manager Bocian presented the staff report, stating that the Council is being asked to provide direction regarding the provision of either 52 rent-restricted Below Market Rate housing units or payment of a one time in lieu fee of $4.5 million as allowed by the Affordable Housing Agreement approved as part of the E&S Ring development. City Council Minutes Page 6 of 12 September 16, 2014