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Councilmember Narum said last year the City relaxed penalties during the winter and she asked if this would be done. Mr. Martin said currently they do not have this option because they are in the middle of a billing cycle, but they can hold discussion on an upcoming Council meeting. They are under the restriction for prohibited activities and total goal saved, but it is unlikely they would be in danger of not achieving 25%. This requirement continues through February 2016 and the Governor may immediately re-institute it for the following year. Councilmember Pentin said there is beautiful weather here, but if it does not rain here but it rains up north and snows, he asked if this is still good for Pleasanton. Mr. Martin said local rainfall affects how much water people use here directly. What happened differently this year is that it does not matter where water sources are coming from, people must conserve. Therefore, they could have a lot of rain and water in Lake Oroville but under the same mandatory restrictions. Vice-Mayor Brown referred to the potential of El Nino she has seen employees cleaning up gutters and asked if the City was preparing for heavy rain. Mr. Martin said yes and described the inspection work performed on all 5,000 drain inlets before rains come. They have also identified areas where they address first and they are on-site staying ahead of the issues before flooding occurs. Mayor Thome opened the public hearing. There were speaker cards and he closed the public hearing. MOTION: It was m/s by Narum/Brown to accept the staff presentation to continue the local emergency drought declaration and maintain Stage 3 mandatory 25% reduction. Motion carried by the following vote: Ayes: Councilmembers Brown, Olson, Narum, Pentin, Mayor Thome Noes: None Absent: None MATTERS INITIATED BY COUNCIL- None COUNCIL REPORTS Councilmember Narum reported on the Zone 7 meeting tomorrow evening wherein it is likely that Zone 7 will adopt rate water increases. She said the City has been able to forward a staff recommendation to have the drought surcharge last for one year and sunset after 12 months. They also have a recommendation that they will not change the rate structure so the City is on a fixed rate which resulted in the City paying more for water. She and Vice-Mayor Brown will be suggesting that the City will accept Year 1 of the proposed rate increases. She thanked the Director of Finance for analyzing Zone 7's financial information and concluding that the initial rate increases were warranted. They will ask that these increases then be reviewed after 12 months or at the time they review the drought surcharge. Vice-Mayor Brown added that the City acquires water from Zone 7 and resells it to its 72,000 residents. If Zone 7 raises the rate, the City passes this through to residents. She cited the importance and urged residents to speak and/or attend the meeting at 7PM at 100 North Canyons in Livermore. Mayor Thorne recognized the efforts of the liaison committee, and Councilmembers also complemented staff for their analysis ahead of the meeting and she hoped for success. Councilmember Olson asked if people from Livermore will also attend, and Councilmember Narum said no, but there is a sense that representatives from DSRSD will attend and the Dublin Mayor weighed in today through a letter submitted. City Council Minutes Page 8 of 9 October 20,2015