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In response to Councilmember Balch, Managing Director Repp confirmed the Semitropic Water Storage District (Semitropic) water through Zone 7 comes from the south through the aqueduct. This water has already flowed downstream but in any given year Zone 7 can store this water in the Semitropic. Other agencies use this water as well and there can be transfers between different water agencies. City Manager Fialho explained it is real water and belongs to Zone 7. It is termed "paper water" because when the water flows at normal rates, the exchange works, but it may have to come to the City in unique ways depending on the season. In response to Councilmember Balch, Director Yurchak reported the City is no different than any other resident and obligated to comply with the 15% restriction. The City's biggest water customer base is residential followed by irrigation customers which include the City for parks and other locales. Director Yurchak reported the City's Water Supply Contingency Plan (WSCP) adopted by the City Council in June is the fundamental link to Zone 7's water supply outlook. She noted the Annual Water Supply and Demand Assessment (AWSDA) is the reason they are recommending moving to Stage 2 which calls for an up to 20% reduction because the staff has confirmed they do not have an adequate supply for the foreseeable future. It is also the impetus for requesting the declaration of a local drought emergency. The outlook is for another dry year due to a La Nina weather system. A declaration allows for flexibility to respond quickly to changing situations and expedites procurement for equipment and construction. The City Council must be updated every 60 days on the status of the declaration. Director Yurchak advised the WSCP declaration of Stage 2 requires using water in a manner that does not result in runoff onto non-irrigated areas such as sideways and roadways. Stage 2 prohibits watering outdoors either during or within 48 hours of measurable rainfall, along with banning the use of potable water to wash driveways, sidewalks, or other hard surfaces. Stage 2 also prohibits washing vehicles without a hose equipped with a functioning shut-off nozzle and all decorative fountains and water features using potable water must be recirculating. All leaks or breaks must be repaired within eight hours of discovery, while all pools and spas must be covered when not in use to prevent evaporation and equipped with recirculating pumps. Director Yurchak reported Stage 2 modifications to customer usage. She advised the City will coordinate with the other Tri-Valley municipalities to have as much consistency in its stages as possible throughout the region. She provided an overview of the community outreach plans that including notices in utility bills. collaboration with Zone 7, social media. and other outlets. The City already offers robust conservation programs with rebates for things like low-flow devices. The City is also collaborating with Tri-Valley neighbors on a joint residential recycled water fill station expected to open in May or June of 2022. Director Yurchak reported staff is not recommending enacting water drought rates or impose excess use penalties. She advised future consideration for the City Council would be enacting water drought rates or excess use penalties. In response to Councilmember Balch, Director Yurchak confirmed the joint residential recycled water fill station would be in partnership with the Dublin San Ramon Services District (DSRSD). Pleasanton makes up 8% of its potable water through recycled water so this is a savings of water compared to the last drought. There are currently no capital plans to expand the City's recycled water program, but the recycled water line down Valley Avenue was designed with continued expansion in mind. Further expansion would involve additional engineering and master planning. She reported the City has approximately 22,000 customers and needs about eight weeks to bill each group. Director Yurchak advised the City can reach out directly to high-volume water users. Staff believes 15% is an achievable conservation benchmark with outdoor irrigation being the simplest way to conserve. City Council Minutes Page 4 of 12 October 5. 2021