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Tracy responded to its dwindling water supplies by installing a series of pumps from San Luis Rey up to pump water that was transferred south through the State Water Project back up north, although the cost has been prohibitive enough to severely limit their use. Mr. Smith reported that Proposition 1 funds are starting to come available through state funded rebates and incentives, including a $2 per square-foot turf replacement program targeted at low income households. The California Energy Commission is offering water appliance rebates of $100 that can be combined with local rebates typically ranging from $50 to $125. In the queue at the state level are new requirements surrounding turf installations on new development. Specifically, new development of 500 square-feet or more will be subject to water efficient landscape ordinances that outline efficient design and irrigation measures. City staff will host a public workshop on September 12, 2015 at the Operations Service Center to educate the public on these new rules from the state and how to improve efficiency. DSRSD has awarded the city with a grant to cover the cost of the workshop and will also be bringing in some subject matter experts. He also reported that DSRSD's recycled water station has proven to be such a success that the program is now only accepting new applications from Tri Valley residents. Mr. Smith provided an update on the recycled water program. He acknowledged some of the difficulties in resolving loan and permit applications through the state, which he attributed largely to the rather condensed and expedited process the city pursued. He shared a copy of both the permit and loan approval and announced that construction is expected to commence mid August 2015. He reviewed the project funding, noting that the original budget and loan request of $19.9 million was lowered to $17.4 million after the project bids were received. The city also simultaneously applied for and was awarded approximately $5.2 million in Proposition 1 grant funds which effectively reduced the loan amount to $12.2 million. He explained that the grant monies actually total 35% of the project receipts, with the remaining 65% covered by loan monies. In addition, legislation currently being pushed through Congress has the potential to yield another$4 million in federal funds that would further reduce the $12.2 million loan. Locally, staff continues to meet with Zone 7 and other local retailers for the purpose of developing a more diversified and sustainable water plan. Tomorrow night is the next meeting and the group is expected to continue its efforts to move forward with a study of indirect potable water reuse. Livermore will host the meeting at 5 p.m. in the Sycamore Room at its community center and the public is welcome to attend. Mayor Thorne said he understood that if the state had been more expedient with the recycled water program permits and the system were already in place, the city would actually have conserved something closer to 60% so far this year. Mr. Smith acknowledged that the state could have been faster but also thought that staff had overestimated how quickly the project could be pushed through. Despite what additional savings may or may not have been realized, he said the most critical deadline was to ensure that the loan and all of the necessary permits were obtained this year. Vice Mayor Brown asked if staff has received any response to the Council's letters asking regional and staff officials for some relief from the current housing mandates in light of the drought. Mr. Fialho said "no." Mayor Thorne reported that Senator Glazer has verbally acknowledged the request and is committed to helping navigate the waters, though it is unlikely there will be any movement on this until January 2016. He explained that some cities from around the state are not at all interested in this kind of relief; in fact many of them are very excited to have new development coming on line. 22. Consider introduction of ordinance to amend Chapters 9.24 and 13.08 of the Municipal Code banning smoking in parks and on trails within the city, except the golf course, as proposed by the Youth Commission City Council Minutes Page 5 of 17 July 21, 2015