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Zone 7's 2021 Annual Sustainability Report concluded adequate supplies to meet 2021 demands. However, approximately 70 percent of Zone 7's water supply is purchased and imported through the SWP, and the historically low storage levels in Lake Oroville, (22% of capacity as of September 17, 2021), is the lowest in the reservoir's history. Because the majority of the Tri-Valley's imported water originates from the SWP, it is reasonable and appropriate to conclude that there is uncertainty in next year's water supply. Zone 7 will receive its initial SWP allocation in December of this year. Water saved this year will help protect water supplies for next year. The following graphic summarizes the City's water use reduction (approximately 8 percent) since the voluntary request for 15 percent was made in June of this year. Pleasanton Water Conservation Trend 2000 18% ,`.. - _ 3% 3% 8% • 1800 2020 1600 1400 S' 2021 b 1200 :1000 c II 11 II II II II II % 800 72:21 m s 3 600 400 200 0 Maw lune v .st Months In addition to the proposed declaration of Stage 2 water shortage, staff is also recommending that the City Council proclaim a Local Drought Emergency. Local emergencies may be declared pursuant to Municipal Code Chapter 2.44 [Emergency Organization] and California Government Code §§8630 et.seq. Due to the critically reduced water supplies and continued extreme dry weather, the protection of public health, safety, and welfare support the declaration of a Local Drought Emergency. This will provide the needed flexibility to respond quickly to changing situations involving fire safety, water availability for fire service, some flexibility to obtain needed supplies or resources, and the authorization to collaborate with other local agencies on critical drought issues. If the City Council proclaims a Local Drought Emergency, staff will return approximately every sixty (60) days to update the City Council as required by State law. At this time, staff is not recommending the activation of drought rates or excessive use penalties with this 15 percent mandatory reduction. However, the listed water conservation measures under Stage 2 will go into effect, per Pleasanton Municipal Code (PMC) Chapter 9.30. This will allow time for further customer outreach and education on the water conservation measures and behaviors that will help them achieve the 15 percent reduction. This measured response will be and is being followed by the other Retailers, and Zone 7 is currently not activating their drought rates to Page 3 of 4