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represents a significantly higher water supply scenario than in previous years. This allocation can be increased or decreased at any time by DWR. State Drought Regulations Through Executive Order B-37-16, the State has adopted new emergency water conservation regulations that recognize the differing water supply conditions across the state. For the Tri-Valley, the combination of water available in the Orville Reservoir, Lake Del Valle and the local groundwater basin has resulted in an opportunity to reduce conservation requirements from the prior mandatory 24%. While the short term conservation requirements may be relaxing, the declared drought emergency for the state has not been lifted. In addition, prior to current drought emergency, the City had already been working towards compliance with the mandatory water conservation goal of reducing potable water use 20% by the year 2020 as outlined in the Water Conservation Act of 2009 (SBX7-7). In accordance with the factors outlined above, Staff proposes that a Stage 1 water shortage be declared with a conservation goal of 10% relative to baseline 2013 usage. Though Stage 1 is voluntary, there are enforceable conservation measures in effect to prevent the waste of water. The voluntary classification under Stage 1 means water customers will not receive an excess use penalty(otherwise known as drought surcharge) if the customer falls short or exceeds their 10% conservation goal compared to their comparable billing period water use in 2013. This would allow sufficient savings to comply with the new regulations and also keep the City on pace to continue meeting the pre- existing goals of SBX7-7. In the event that voluntary goals were not met, the Council has the authority to elevate the conservation requirements to become mandatory if needed. PMC Chapter 9.30 Amendments 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 activation and suspension administratively by the City Manager as provided in Section 9.30.100.B. Page 3 of 5