(Out of my admin account) My interpretation of the rule is that if Rule 2 doesn’t pass, then the current rules regarding moderator terms would apply. As far as I know, this is the current status:
So in a world where Rule 1 passes, but Rule 2 doesn’t, each moderator would be listed in the log, with a specified end date that is 6 months from their most recent election. And in that world, I would say that the 6 month clock should start on 8/1 (basically the end of this polling period). Am open to other views - this is just my own non-Admin opinion. (I think the world where Rule 1 and Rule 2 both pass is fairly clear.)