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benefit of working with the Sustainability Circle and encouraged other businesses and organizations to do the same. Mr. Smith reminded the Council and public that Governor Brown recently announced an Executive Order mandating a 25% reduction of water consumption throughout the state, though cautioned that actual reduction targets are determined using a sliding scale based on gallons per capital per day. The Executive Order contained several other minor changes that must be incorporated into the local drought ordinance. These include requiring that restaurants serve water only upon request, requiring that hotels offer guests the option to refrain from receiving freshly laundered bedding towels each day, prohibiting the irrigation of public medians containing only grass turf, and mandating that golf courses, cemeteries and certain educational institutions not be exempt from these regulations. The Executive Order is also expected to include a mandate that irrigation of new development be limited to drip or micro-spray systems. He reported that water levels at Lake Oroville are lower than in 2014, although the State Water Project is still projecting delivery of 20% of the normal demand. Including water trades and purchases, Zone 7 continues to anticipate being able to deliver a total of 60% of normal demand. He noted that Zone 7 has advertized the ability to meet the full demand but has not been clear in that it would require groundwater pumping to fill the remaining gap. Councilmember Pentin said it has been reported that this is the earliest the California Delta has been in balance, which means that no additional water can be run through the system, and asked how the city will be able to access the water obtained through purchase. Mr. Smith explained that while the Delta being in balance does jeopardize the ability to put through any additional water transfers, the 20% allocated by the State Water Project is already available. He did note the somewhat remote possibility that the federal courts may shut down the aqueduct due to low water levels in order to protect the fish residing there. Vice Mayor Brown asked and Mr. Smith confirmed that the mandated reduction refers to 25% over 2013 consumption and not in addition to those savings achieved in 2014. Mayor Thorne asked Mr. Smith to discuss some of what is occurring at Shadow Cliffs. Mr. Smith explained that Shadow Cliffs is really a window to the condition of the local groundwater basin. Zone 7 has stopped releasing water into the area and residents are now finding that one of their water sources has dried up. He noted that one resident out on Old Vineyard called him yesterday to report that his neighbor's well had just run dry. Councilmember Olson asked if the conversion from pop-up to drip or micro spray irrigation systems is relatively simply. Mr. Smith explained that some systems can be retrofitted whereas others cannot. He advised that there are rebates available through both the city and Zone 7 for irrigation retrofits, noting that system retrofits are limited to commercial users whereas residents are eligible for irrigation controller rebates. Nonetheless, the increasing cost of water means that even residential retrofits will realize a fairly rapid return on investment. He also advised that city staff would be happy to walk residents through the retrofit and rebate process. Mr. Smith continued to review the Governor's Executive Order, which requires a statewide reduction in water consumption through February 2016 with compliance monitoring to begin June 2015. In addition the requirements described earlier, the city is now required to report monthly to the State Water Resources Control Board on a number of new measures regarding commercial, industrial and recreation activities as well as any citations issued. He also reported that this last Saturday the City Council Minutes Page 4 of 11 April 21,2015