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device that adds air and pressure to the kitchen faucet and reduces the amount of water. For a low flow toilet and washer /dryer rebate, she confirmed the rebate could only be used when the appliance were purchased. When people buy washers and dryers, the paperwork provided directs purchasers to a website where people can apply online and automatically receive a check. There is also a form people could turn in if they cannot complete the form on -line. For high efficiency toilet rebate, the form is obtained at the Utility billing counter. Councilmember McGovern said another concern is that people conserve, Zone 7 will raise their bill and she questioned if this was so. Mr. Smith said rates are a concern; the City has not imposed a rate increase since 2001, but the City cannot control what Zone 7 charges. He was not sure; however, it would occur strictly because of water conservation, but more so about how big that water conservation block got. Mayor Hosterman confirmed that it also depends on how long that fund can be managed and subsidize the rates, and there is a break even point that if they sold very little water, they would not be able to maintain the utility; however, they were not at that point yet. Councilmember McGovern confirmed water rates have not increased for residents, but the City has received rate increases totaling 24% just in the last two years which have not been passed onto customers. Mr. Fialho said the City has been drawing on fund balance to make payments to Zone 7. Conservation alone will not result in a rate increase; there are other factors that affect the rate increase and they will be having discussions with the subcommittee of Councilmembers Thorne and McGovern to apprise them of what is occurring with Zone 7, rates, and impacts on cash flows. He did not believe any increase would occur until about January of 2010. Councilmember Sullivan confirmed that this would be done in a full public hearing process, and he felt a tiered rate structure might be beneficial if we cannot get conservation. Mr. Smith said in addition, there would be a water conservation tier that the Council would be able to institute if things got a lot worse. Mayor Hosterman noted that there were no speakers. Councilmember Thorne believed the City should be cautious and not look at rate increases in the current economic environment. MOTION: It was M/S by Thorne /Sullivan to adopt Resolution No. 09 requesting Pleasanton Water Customers voluntarily reduce their water demand by 20% during the calendar year 2009. Motion passed by the following vote: Ayes: Councilmembers Cook- Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None 16. Consideration and introduction of a resolution amending compensation and other benefits for the City Attorney Mayor Hosterman noted the Council hires the City Manager and City Attorney. Mr. Roush was appointed in 1988, she thanked him for his service over the many years, and the Council has determined that the annual salary for the City Attorney is adjusted to $191,380, effective September 1, 2008. All other terms and conditions of employment shall remain in full force and effect and the City Clerk will certify to the passage of the resolution and enter it into the book of Resolutions. She shared that Mr. Roush, as was reported out by the Pleasanton Weekly, is going to be retiring and moving on in a few months. The City is currently searching for a replacement which will not be easy and she thanked him for his service. City Council Minutes Page 16 of 17 May 5, 2009