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BACKGROUND In preparation of a water shortage declaration in early 2014, City Council approved significant modifications to Pleasanton Municipal Code (PMC) Chapter 9.30 [at that time named the Water Conservation Plan]. A Stage 3 water shortage was declared by the City Council in May 2014, and the City implemented a mandatory 25% reduction in water usage. In April 2015, the State of California also adopted a mandatory 25% statewide reduction requirement, along with additional water conservation measures. Council approved additional amendments to PMC Chapter 9.30 to reflect these new requirements in May 2015. The State of California has been experiencing drought conditions since 2012, and over that last several years, the City of Pleasanton has engaged in ongoing efforts to provide educational outreach to its residents and business community on water conservation efforts, including home and office visits for the Controller Assistance Program (program irrigation systems & detect leaks), providing free water-efficient sink aerators and shower heads, conducting workshops, and providing enhanced rebates for water-saving efforts such as lawn conversions. When Council approved the 25% mandatory water reduction in May 2014 in response to the severely limited water supply conditions in the Tri-Valley, 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. The incorporation of both low-water user designation and mechanism for excess use penalty suspension are incorporated in the current PMC Chapter 9.30 proposed amendments. DISCUSSION Drought Update Attachment 1 is a chart summarizing a comparison between 2013 and 2016 water usage. Compared to potable water consumption in 2013, the City achieved a 27.8% savings for 2014, 37.7% savings for 2015 and 40.8% savings for thus far in 2016. The effective drinking water savings impact was 1.65 billion gallons in 2014, 2.23 billion gallons in 2015 and 0.700 billion gallons so far in 2016 for a total of 4.58 billion gallons. State Snowpack Conditions As of May 23, 2016, the state is currently at 13% of the April 1 peak snowpack level. The average snowpack for this time of year is normally 29% of the April 1 peak level. State Reservoir Conditions Statewide water reservoirs are currently at 53% of their available capacity and are at 72% of their historical average for this time of year. Lake Oroville in Butte County, the State Water Project's (SWP) principal reservoir, now holds 3.352 million acre feet (MAF), 95% of its 3.538 million acre-foot capacity and 113% of its historical average as of May 23. DWR Water Allocation for 2016 The water delivery allocation from the Department of Water Resources (DWR) to the Tri- Valley through Zone 7 was recently increased from 30% to 60%. This allocation level Page 2 of 5