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Summer Peak Demand Condition It is critical the city reduce summer peak demand to levels that are consistent with 2022's reduction in water usage. This necessary reduction is a result of the City's decision to turn off all groundwater wells due to PFAS-related health advisory level concentrations given that that City's priority is the provision of safe drinking water. At this time, staff recommends the City Council request the community's voluntary 15 percent conservation before implementing mandatory conservation. Since the need for water conservation is critical during the upcoming summer months, staff will closely monitor all water usage. If at any time water conservation levels are not adequate for the City to continue providing consistent and reliable service to customers, staff will recommend the City Council mandate at least 15 percent water conservation and impose excess use penalties. CONCLUSION Staff recommends the City Council declare a water shortage per Municipal Code sections 9.30.060 and 14.04.030.6. for infrastructure limitations per the City's WSCP which describes the City's strategic plan in response to water shortages. In this case the WSCP Stage 2 water shortage is appropriate and is described as follows: There is sufficient uncertainty concerning water supply, either based upon Annual Water Supply and Demand Assessment (AWSDA) finding or unforeseeable event, to lead to the conclusion that supply may not adequately meet normal demand in the current or upcoming years. The timing of declaring a water shortage coincides with the lifting of the State and Zone 7 drought emergencies and the lifting of the City's local drought emergency. This immediate transition provides good continuity for conservation messaging to City water customers: that despite improved water supplies the City is experiencing infrastructure limitations that reduce the amount of water available to the distribution system. Staff is developing a communications campaign to remind and reinforce for residents and businesses the needed water conservation threshold. Following City Council action, water customers will be notified of the water shortage requesting voluntary 15 percent water reduction compared to 2020 use over the equivalent time period, through publication in the newspaper(s), local electronic media and mail per Municipal Code 9.30 Water Management Plan. Page 4 of 5