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4 The public hearing was opened, but as there were no speakers, the public hearing was closed. Mr. Lynch said that the Plan should include the fact that the Housing Authority was designated as the CDBG target neighborhood. Mr. Caravati made a motion to approve the Action Plan and Mr. Lynch seconded the motion. Mr. Schilling said he appreciates the work on the Plan and the agencies involved, but he said he has serious outstanding questions about the use of funds and the impacts on surrounding neighborhoods. He said those homes sold at market rates are having a tremendous impact on general assessments in neighborhoods. He said his reservation are unaddressed and he cannot support the Plan. The Community Development Block Grant and Housing Opportunities Made Equal Action Plan was approved by the following vote. Ayes: Dr. Brown, Mr. Caravati, Ms. Hamilton, Mr. Lynch. Noes: Mr. Schilling. REPORT : COMMUNITY WATER SUPPLY Mr. O’Connell said that this is a report only and no action is required. He said Council will be asked for approval of the plan in June. Mr. Tom Frederick, Executive Director of Rivanna Water and Sewer Authority, said that the preferred alternative of raising the Ragged Mountain dam by 45 feet was announced at the recent public outreach meeting, and there was overwhelming public support for that alternative. He said the two key components are the new dam and a pipeline between South Fork and Ragged Mountain at an estimated cost of $130 million. He said Council, the Albemarle County Board of Supervisors, Rivanna Water and Sewer Authority and Albemarle County Service Authority will be asked to review and approve the 50 year plan in June. He said work is still being done on the mitigation plan. Mr. Frederick said that a drought management plan is being worked on that will comply with State guidelines and will include local issues. He said it is desirable for the City and County to agree on restrictions. He said Rivanna is watching the situation carefully. Responding to a question from Ms. Hamilton, Mr. Frederick said that a drought watch will likely be announced when there is a 20% probability of the water supply falling below 80%, and a warning when there is a 10% probability of falling below 70%. He said we are not quite at the watch level. Responding to a question from Mr. Caravati, Mr. Frederick said that he anticipates the mitigation plan will be finalized in mid-summer. Mr. Lynch said that after the last drought we talked about a rate increase that would maintain a constant revenue flow to Rivanna, and he asked if that is part of the plan. Mr. Frederick said that Rivanna has a reserve plan. He said City staff is talking about a number of ideas to include in a fair conservation plan. He said he has seen surcharges fairly made in drought conditions. Mr. Lynch said he thinks pricing is the way to get people to use less water. Ms. Hamilton said she would like to find out more about that, and said we need to pay attention to the fairness issue (i.e., watering lawns versus bathing five children). She said we should also talk about expanding the toilet rebate to other areas such as washing machines that use less water. Mr. Lynch said he would be in favor of that.