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Councilmember Olson noted that the Council is not scheduled to reconsider the penalty schedule until April 27th. Given the dry forecast for March he wondered whether that should be move up. Mr. Fialho explained that the discussion and recommendation will be largely influenced by the information issued by the Department of Water Resources and Zone 7 in the coming weeks. Once that information is available, the local retailers will work to create a unified conservation mandate that may be the same, more or less than the 25% required in 2014. Staff is not in position to predict what that recommendation will be at this point. Councilmember Narum asked if there are any efforts to purchase water similar to DSRSD's efforts. Mr. Fialho explained that DSRSD recently reported on the acquisition of approximately 1,000 acre feet from the Yuba County watershed to be delivered through the East Bay Municipal Utility District's (EBMUD) infrastructure which is located directly adjacent to the DSRSD system. Specifically, the supply being acquired is to be used for the Dougherty Valley which is outside of the Zone 7 service territory. While the city does not have the same benefit of being adjacent to either EBMUD or the City and County of San Francisco infrastructure, DSRSD's delivery to Dougherty Valley means a reduction in the amount of water that Zone 7 must deliver there and therefore is still a benefit. The city's strongest solution at this point remains the Recycled Water Program, which should be under construction by the summer. Vice Mayor Brown noted that the expected 2015 water supply includes 200 acre feet of recycled water. She asked whether this is realistic, given the City Manager's comments that construction will begin this summer. Mr. Martin said he actually felt it was a somewhat conservative estimate. He explained that Phase 1 of the system represents about 1,400 acre feet and that the 200 acre feet anticipated would be rather easy to achieve with just a bit of recycled water irrigation at the sports park. He noted that this offset would not be experienced until later in the calendar year. Mr. Martin concluded his presentation, calling attention to two of the city's voluntary efforts that will be made mandatory to reflect recent actions at the state level. These include restaurants providing water only by request and hotels offering guests the option to refrain from daily washing of linens. He encouraged the public to attend the next water retailers meeting at the DSRSD District Office on April 22nd at 5 p.m. Vice Mayor Brown asked whether the prohibition of decorative fountains include those with recirculated water. Mr. Martin said "no." Vice Mayor Brown invited public comment. Angelina Summers said she only recently learned of the guidelines regarding hours of irrigation and guessed that many of her neighbors were still unaware. She asked that all restrictions be published in the Pleasanton Weekly for the community's benefit. Councilmember Pentin asked and Mr. Martin confirmed that irrigation hours apply only to automated irrigation and not hand-watering. Vice Mayor Brown closed public comment. MOTION: It was m/s by Narum/Brown to accept the Update on the Stage 3 water Shortage. Motion passed by the following vote: City Council Minutes Page 4 of 9 March 17,2015