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16 THE CITY OF CITY COUNCIL AGENDA REPORT PLEASANTON April 18, 2023 Operations Services TITLE: ADOPT A RESOLUTION TO TERMINATE THE LOCAL DROUGHT EMERGENCY, STAGE 2 WATER SHORTAGE, MANDATORY 15 PERCENT REDUCTION IN WATER USAGE, AND STAGE 2 DROUGHT RATES SUMMARY On October 5, 2021, the City Council adopted Urgency Ordinance No. 2225 declaring a local drought emergency and adopted Resolution No. 21-1250 declaring a Stage 2 water shortage and mandating a 15 percent reduction in water usage. Given the uncertainty in water supply allocations plus the continued dry conditions, Zone 7 continued to maintain the mandatory 15 percent reduction from its retailers. On March 15, 2022, the City Council adopted Resolution No. 22 -1283 activating Stage 2 Drought Rates to achieve the mandatory water conservation target and to offset revenue loss to sustain the City's Water Enterprise. The heavy rain in early 2023 has significantly helped drought conditions. On March 24, 2023, Governor Newsom ended the 15 percent water conservation target and requirement for water agencies to implement level 2 of their drought contingency plans. On April 19, 2023 (the day after this City Council Meeting), the Zone 7 Board of Directors will consider ending its local drought emergency. Staff recommends the City Council terminate the local drought emergency, the Stage 2 water shortage, and the Stage 2 drought rates concurrent with the Zone 7 Board of Directors' approval to end its drought emergency and mandatory conservation. STAFF RECOMMENDATION Concurrent with approval by the Zone 7 Board of Directors to end its drought emergency and mandatory conservation (anticipated on April 19, 2023), staff recommends the City Council adopt a resolution to: • Terminate the local drought emergency declaration, and • Terminate the declaration of the Stage 2 water shortage and the mandate of 15 percent reduction in water usage, and • Terminate the activation of the Stage 2 drought rates. FINANCIAL STATEMENT There are no fiscal expenditures related to termination of the local drought emergency and the termination of the Stage 2 water shortage and Stage 2 drought rates.