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David Miller also urged the public to vote "no on Measure BB. He reviewed key financial data points, which he said fail to yield a positive return on the citizens' investment from any perspective. He urged the community to examine the facts and push for a plan that makes real financial sense for the county. PUBLIC HEARINGS AND OTHER MATTERS 12. Update on the Stage 3 Water Shortages and Local Emergency Declaration Director of Operation Services Smith presented the required monthly update on the local drought emergency. He reported that little had changed since the last update to the Council and reminded the public that despite receiving the 5% allocation from the state in September the city is still in a Stage 3 drought and subject to a 25% mandatory cutback. He cautioned that the surface water allocation is still not sufficient to meet demand, though it is hopeful that will change in the next month, and that the valley's reservoirs are still at historically low levels. He also reminded the Council and public that the local Drought Ordinance requires a shift to irrigating only once per week starting in October. He provided an update on both statewide and local conditions, noting that the majority of the state is still experiencing exceptional drought conditions that are predicted to remain at least through November and that the outlook for next year also remains concerning. At the local level, Pleasanton's conservation efforts have saved 1.4 billion gallons of potable water in 2014, 102 million gallons of which can be attributed to city services alone. He reported that while 94.5% of residences and businesses have been successful in meeting their reduction targets, this second billing cycle has revealed a number of repeat offenders subject to a second surcharge for failing to conserve as required. He also noted that the community as a whole has reduced consumption by 29% to date, which is down from the 35% reported at the last update, and again cautioned that reduction targets will become even more difficult to achieve in the coming months. He explained that local regional plans for managing continued water shortages in the short-term are really limited to the city's recycled water infrastructure. Pleasanton and other local retailers continue to meet with Zone 7 to try to develop both short and mid-term plans to create a more sustainable water supply for the Tri valley. He strongly encouraged the public to attend the next of the water policy meetings, which would be hosted by Zone 7 on Monday, November l7t" at 5 p.m. He also reported some recent success at Zone 7's recent rate setting meeting, at which the Zone ultimately passed a much lower rate than what was originally proposed. Councilmember Cook-Kallio said she has heard the concern that surrounding cities may not be making the same effort as the Pleasanton community and, with them drawing from the same water source, perhaps taking more than what is their fair share. She noted that this also extends to southern California, where some reports suggest that people are making no efforts to conserve, and asked if there is any movement at the state level to force conservation for the common good. Mr. Smith said she characterized the situation well, though reminded her and the public that some agencies have a more developed infrastructure that is separate from the State Water Project and has allowed them to store more water for use at times like this. Nonetheless, unless those agencies adhere to the same restrictions they will be in a dire situation if the drought continues. He explained that the Governor and regional board are now becoming more and more strict, making movements in the right direction though it is coming a bit later than some would have like to see. Councilmember Brown said it was a big win for Pleasanton and other retailers that they were able to persuade Zone 7 to limit its rate increase to mirror the cost of living, rather than the 7% increase that seemed punitive in light of the community's efforts to conserve. She asked Mr. Smith to explain how residents can access free recycled water from DSRSD, which many seem to be unaware of. City Council Minutes Page 3 of 11 October 21,2014