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Vice Mayor Narum closed public comments. PUBLIC HEARINGS AND OTHER MATTERS 13. Public Hearing: PUD-109, H. James Knuppe — Consider a certificate of appropriateness to demolish a 910 sq. ft. single-story commercial building, and introduction of an ordinance approving PUD Rezoning to rezone property located at 273 Spring Street from the C-C (Central Commercial), Downtown Revitalization, Core Area Overlay District to PUD-C-C (Planned Unit Development-Central Commercial), Downtown Revitalization, Core Area Overlay District, and to construct 4,074 sq. ft. two-story commercial/office building with an attached 1,225 sq. ft. second- floor apartment unit, and four 2,015 sq. ft. three-story multi-family residential units City Manager Fialho stated that the applicant in the matter of Item 13 (PUD 109) had requested a continuance of the report. Vice Mayor Narum opened public comments. Noting there were no members of the public electing to speak, she closed public comments. 14. Update on drought and water conservation A staff report was given by Utilities Superintendent Dan Martin who recommended to continue the emergency provisions listed in the agenda report as well as continue suspension of the excess use policy until March 1, 2016. A PowerPoint Presentation was displayed. Mr. Martin reported that for 2015 the final savings were 37.7%, an increase of 13.6% over what was saved in 2014. The net result was 2.23 billion gallons of drinking water saved, which is important in a dry valley with limited water supply sources. The annual average rainfall is 15 inches and 2015 was slightly below average, although the December rainfall helped. There was a good start in January 2016, just under 4 inches, and the reservoir condition is at half or a third of where they normally are. From a State perspective, Lake Oroville is a little bit behind, however it is trending upward. It is not unusual for reservoirs to lag behind as they take longer to fill. Mr. Martin further reported that overall the State is broken down into three main snowpack sections. We are at least at the average and on pace to have more snow in the next couple of months. At halfway through the winter season, the water models have proven to be accurate and the Pacific jet stream will stay on the southerly path. They would like to see the polar extreme lower so that the cold water turns into snow, and hopefully capture some rain. Mr. Martin stated 80% of the water that comes in to the dry valley comes through the Delta via the Department of Water Resources. The 10% initial allocation is set in December and utilizes conservative starting points and then the number is adjusted up or down based upon the reservoir. There is a good chance it will go up and he does not think they will have additional water restrictions in 2016. The State is attempting to find a mechanism that works across a water environment with so many different variables. They are now coming back and looking at adjustments that can be made in the regulations that are specific to certain areas and may be allowing a compensation based on dry areas. Mr. Martin confirmed that proposed changes may be finalized at the February 2, 2016 State meeting and they will come back and see how they integrate into the 2016 plan. In response to an inquiry from Councilmember Brown, Mr. Martin confirmed that the chart that showed the average rainfall only shows the rainfall in Pleasanton, whereas the drought conditions have impacted the areas where Pleasanton's water supply comes from. The chart does not reflect the snow which has been significantly affected. City Council Minutes Page 5 of 6 January 19,2016