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BACKGROUND In preparation for water shortage activation of water conservation measures, City Council adopted extensive modifications to PMC 9.30 in March 2014. When adopting these changes, Council emphasized the necessity to ensure customers with low water consumption would not be subject to an "excess use penalty" if unable to achieve the percent of mandatory reduction corresponding to the declared water shortage stage. Additionally, during both winters commencing in 2014 and 2015, Council approved the suspension of excess use penalties due to lower water use trends over the winter and early spring months. Council last modified PMC 9.30 in May 2015 in order to incorporate emergency water conservation regulations mandated by the State Water Resources Control Board in March 2015. DISCUSSION After gaining experience from the past two years of implementation of the water management plan and Stage 3 mandatory reductions, staff proposes amendments regarding: (a) the definition of low water users; and (b) excess use penalty suspensions to clearly define the utilization of these tools in PMC 9.30. Low Water Users The proposed new definition of "low water user" in Section 9.30.040.E. would apply to single family residential individually metered customers (who are capable of being accurately tracked for usage due to individual water meter). The proposed definition does not establish a specific number of units during a billing cycle that would constitute a low water user, but leaves that to be established by Council resolution during each declared water shortage emergency. This flexibility is recommended to ensure that the community can respond appropriately during different drought situations. Suspension of Penalty Procedures So far during the drought, excess use penalty suspensions have been enacted by Council resolution. It is proposed to allow for such suspension administratively by the City Manager as provided in Section 9.30.100.B. The community's water conservation response during the activation of stage three water shortage has helped to demonstrate the amount of water savings achievable within the defined water use restrictions. Based on this experience, limitations on outdoor irrigation under the declaration of a stage 2 water shortage is recommended to be adjusted to three non-consecutive days per week, rather than the current limitation of two non- consecutive days per week, as proposed in Section 9.30.080.C.2. Furthermore, staff refined other current water use restrictions in order to properly categorize those activities as waste, for example, the prohibition of using potable water to wash driveways in Section 9.30.080.A.3., or the reinforcement of storm drain system protection to ensure the prevention of illicit discharge, for example wastewater from washing vehicles in Section 9.30.080.A.4. Page 2 of 3