Slide 1 March 7, 2006 Oakdale Irrigation District Water Resources Plan A Community Plan. A Successful Future. Discussion of Annexation/Expansion Issues Oakdale Irrigation District Water Resources Plan A Community Plan. A Successful Future. Discussion of Annexation/Expansion Issues

2 The Water Resources Plan Goals Technical Analyses Institutional Activities Public Involvement Provide long-term protection to OID’s water rights. Address federal, state, and local water challenges. Rebuild/modernize an out-of-date system to meet changing customer needs. Develop affordable ways to finance improvements. Involve the public in the planning process.

3 The Project Team will need Board Input Throughout the PEIR Preparation Technical Analyses Institutional Activities Public Involvement Numerous issues from Phase 1 need continued Board input. Some items specifically relate to PEIR activities Other items, while not strictly tied to PEIR, need continued Board discussion

4 Schedule of Board Involvement Water Supply Reliability and prelude to Transfer/Annexation issues (Informational Presentation)

5 Schedule of Board Involvement CEQA Scoping Meeting

6 Schedule of Board Involvement Expansion of Service Issues (Informational Presentation) and development of Annexation Policy Guiding Principles (Board Action)

7 Presentation Expansion of Service Issues w OID’s ability to expand water service is directly linked to “reliability” w “Water Reliability”- dependent on: – Basin Hydrology – Contractual obligations w “Customer Reliability”- dependent on water reliability plus: – Annual water management decisions – Groundwater pumping capacity – Amount of land served

Stanislaus River Reliability– Independent of Acres Irrigated

9 The WRP’s Best Apparent Alternative- Improves Level of Reliability w Developed conservative plan to meet worst case drought needs. w “Worst case” is defined as a maximum water demand (max ET) occurring simultaneous with an extreme (5% probability) Stanislaus River curtailment w Level of reliability dependent on upcoming OID policy decisions; drought response, annexation, and water transfers

10 Existing Customer Reliability w From an in-District grower perspective, assuming the following: – Max ET (299 TAF) – 30 TAF minimum transfer obligation – No annexations – 15 TAF of emergency pumping capability – Reduced rotations resulting in 10-14TAF in delivery curtailments w Customer reliability is 79% Current Customer Reliability

11 Implementing the WRP Improves Future Customer Reliability w From an in-District growers perspective in 2025, assuming the following: – Demands (233 – 265 TAF) – 50 TAF Minimum transfer obligation – Over 4,000 acres of annexations – 20 TAF of emergency pumping capability and increased drainwater reuse – Reduced rotations resulting in 10-14TAF in delivery curtailments w Customer reliability exceeds 95% Future Customer Reliability with WRP

12 WRP Can’t Improve Stanislaus River Reliability, Just Customer Reliability w Customer Reliability is also affected by board policies, facilities (gw and reuse), and land use w The WRP is structured to be implemented over time w Reliability improves steadily over the course of implementation w Additional water transfers and annexations need to be carefully phased

13 Significant Expansion Opportunities Exist in the SOI

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15 Four alternatives were developed to address what to do with conserved water Alternative 3 moderately expands service within OID’s Sphere of Influence. ALTERNATIVE 4 67,000 ac-ft Supports OID expansion into SOI, approx. 16,750 acres Transfers to willing buyers (9,000 ac-ft more than current) Variable transfers to willing buyers ALTERNATIVE 2 50,000 ac-ft 17,000 ac-ft Transfers to willing buyers (9,000 ac-ft more than current) ALTERNATIVE 3 50,000 ac-ft 17,000 ac-ft Supports OID expansion into SOI, approx. 4,250 acres

16 The WRP Recommends Expansion into the SOI w The WRP goals need to be consistent with OID policies w A review of the current OID Annexation Policy is necessary w Recommend a 2 step process – Develop “Guiding Principles” – Revise Annexation Policy as necessary w Provide long-term protection to OID’s water rights w Address federal, state and local water challenges w Rebuild/modernize an out-of-date system to meet changing customer needs w Develop affordable ways to finance improvements w Involve the public in the planning process

17 Schedule of Board Involvement Water Resources Planning Committee Discussion of Annexation Policy Guiding Principles

18 Schedule of Board Involvement Annexation Policy Guiding Principles Board (Board Action) and Drought Response Plan (Informational Presentation)

19 Policy Direction Regarding Expansion of Service - Critical Path Activity w The purpose of today is to create a list of the issues that the Guiding Principles should address w The list of issues will be consolidated and addressed by Board policy direction w For example...

20 Some Issues Can be Grouped into a “Principle” Related to Water Supply Reliability w What level of customer reliability does OID want for its existing users? w Should new lands be assured the same level of reliability? w OID water to new lands... is it a supplemental supply or a sole supply (ability to pump groundwater)? w Should water be provide to new lands with a maximum allowable usage (e.g. 4 af/ac)? w “Expansion into SOI won’t negatively impact water supply reliability to existing OID users”?

21 Other Issues that Need to be Addressed by Guiding Principles w Costs – buy-in fee?, water charge?, responsibility for cost of necessary infrastructure?, O&M costs? w Customer service/service equity? w Preservation of commitment to Cities of Oakdale and Riverbank? w Preservation of OID’s flexibility and control of its water supplies? w Establish water use efficiency criteria?

22 Issues Cont. w Service to non-developed lands (increased CEQA issues)? w ROW Issues? w Operational impacts to existing customers and delivery system? w System of prioritization (e.g. big vs. small, contiguous vs. non-contiguous, low water demand vs. high water demand, etc.)? w What else?

23 w Costs – buy-in fee?, water charge?, responsibility for cost of necessary infrastructure?, O&M costs? w Customer service/service equity? w Preservation of commitment to Cities of Oakdale and Riverbank? w Preservation of OID’s flexibility and control of its water supplies? w Establish water use efficiency criteria? w Service to non-developed lands (increased CEQA issues)? w ROW Issues? w Operational impacts to existing customers and delivery system? w System of prioritization (e.g. big vs. small, contiguous vs. non- contiguous, low water demand vs. high water demand, etc.)? w What else? Expansion of Service Issues

24 Schedule of Board Involvement Water Resources Planning Committee Discussion of Annexation Policy Guiding Principles

25 Schedule of Board Involvement Annexation Policy Guiding Principles Board (Board Action) and Drought Response Plan (Informational Presentation)

26 Schedule of Board Involvement 1)Water Transfer Discussion to include Extension of Existing Contracts, and Potential New Recipients. 2)Confirmation of “Preferred Alternative”. 3)Infrastructure Projects and Details (Informational Presentations)

Slide 27 March 7, 2006 Oakdale Irrigation District Water Resources Plan A Community Plan. A Successful Future. Discussion of Annexation/Expansion Issues Oakdale Irrigation District Water Resources Plan A Community Plan. A Successful Future. Discussion of Annexation/Expansion Issues