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City's Local Emergency Meets Compliance for Mandatory Reductions. With the drought entering its fourth year, concerns about the community's health, safety and welfare require the continuation of the City's local drought emergency. With the return of hot weather, it is recommended that the excess use penalties in the City's Water Conservation Plan (Municipal Code §9.30.100) be reinstated effective May 15, 2015. These had been suspended for 90 days from January to April 2015. With this reinstatement, the 25% reduction would be calculated as a 25% reduction from the same 60 day billing period from 2013. The comparison and reduction goals would not be between 2015 and 2014, as most customers did achieve the 25% reductions in 2014, and the expectation is not for a further 25% reduction on top off reductions already achieved. Pleasanton's Stage 3 mandatory 25% reduction (see Attachment 2) meets the broad requirements of the Governor's April 1, 2015 Executive Order. That order directs the State Water Resources Control Board (Water Board) to: (a) "...consider the relative per capita water usage of each water suppliers' service area, and require that those areas with high per capita use achieve proportionately greater reductions than those with low use."; and (b) "...direct urban water suppliers to develop rate structures and other pricing mechanisms, including but not limited to surcharges, fees and penalties, to maximize water conservation...". If the Water Board were to adopt such per capita restrictions, City staff would return to the City Council to consider appropriate modifications to mandatory water reductions, as the Tri-Valley does have higher per capita water usage than some other Bay Area communities (likely due to higher temperatures and larger landscaped lot areas). Similarly, if the Water Board adopts regulations for rate structures or pricing mechanisms that are different than the City's current excess use penalties, City staff would present such regulations and recommend any necessary City Council action. Addendum to Initial Study/Mitigated Negative Declaration for Recycled Water Project. City staff has been in consultation with the State Water Board's environmental compliance unit regarding environmental review for the City's recycled water project. After preparation of CEQA documents, in conjunction with consultant SMB Environmental, the City Council adopted the Initial Study/Mitigated Negative Declaration in September 2014. State Water Board staff subsequently requested further environmental review after pipeline alignment changes. In response, an Addendum to the Initial Study/Mitigated Negative Declaration was prepare and adopted in January 2015. A written comment on that Addendum was received from CalTrans. In addition, discussions have been occurring between City staff, SMB Environmental and the State Office of Historic Preservation (SHPO). SHPO staff are concerned that small areas of the pipeline alignment are near areas of known cultural resources / Native American sites. Therefore, an additional Addendum to the Initial Study/Mitigated Negative Declaration has been prepared for Council adoption (Attachment 3). Meanwhile, as the recycled water project involves federal funding through the State Water Board loan, City staff continues to work with State Water Board staff, SHPO staff and others to address all federal and state requirements. Currently, federal requirements (being enforced by the State Water Board) regarding historic cultural Page 4 of 7