Mojave Water Agency: How we are trying to avoid our own liquidity crisis Kirby Brill General Manager, Mojave Water Agency Business Development Association of the Inland Empire February 24, 2009

Overview California water issues and us Strategic response Projects in play

For the last year, water seems to be a hot topic in California

This is now pushing the water issue into corporate board rooms Laws require documentation of future water supply conditions Factors for success (or failure) –Short Term Issues Droughts (Water providers must be able to supply customers during prolonged droughts) –Long-term Issues Overdraft (Regions must be able to demonstrate long-term water supplies for new growth without mining the resource) Imported Supply (During a current period of uncertainty, regions must provide assurances of future supplies)

Most of these water supply issues are tied to the State Water Project Whats that…and what does it mean to us?

Alameda County Flood Control and Water Conservation District, Zone 7 Alameda County Water District Antelope Valley - East Kern Water Agency City of Yuba City Castaic Lake Water Agency Coachella Valley Water District County of Kings Crestline - Lake Arrowhead Water Agency Desert Water Agency Dudley Ridge Water District Empire West Side Irrigation District Kern County Water Agency Littlerock Creek Irrigation District Metropolitan Water District of Southern California Mojave Water Agency Napa County Flood Control Agency and Water Conservation District Oak Flat Water District Palmdale Water District San Bernardino Valley Municipal Water District San Gabriel Valley Municipal Water District San Gorgonio Pass Water Agency San Luis Obispo County Flood Control and Water Conservation District Santa Clara Valley Water District Santa Barbara County Flood Control and Water Conservation District (Central Coast Water Authority) Solano County Water Agency Tulare Lake Basin Water Storage District Ventura County Flood Control District * Butte County * Plumas County The State Water Project provides a safe, high quality drinking water supply for over 23 million Californians

Imported water now makes up about a quarter of the Victor Valley's supply Fortunately, water from the State Water Project can be delivered and stored underground in aquifers

What can we do to alter our destiny?

Make investments consistent with state-wide strategies

Heres the plan…..the portfolio Understand Reclaim Protect Conserve Import Store

Priority projects are being funded from a $25M State grant from Prop 50

One new project in the portfolio leverages groundwater storage and provides a regional supply of imported water Regional Recharge Recovery

The R 3 project concept is based on providing regional benefits to multiple beneficiaries

6 Phase 1 recovery wells Approximately 7,100 linear feet of well collection piping, 12 to 30 in diameter Approximately 58,800 linear feet of main conveyance piping, 30 to 42 in diameter 4 Turnout facilities and associated piping 2 Pump stations 2 Storage and control reservoirs Construction scheduled to begin mid 2009 Estimated project cost $65 to $70M

The Oro Grande Recharge Project is also underway

Development of the existing Highway 395 Turnout at the California Aqueduct Up to 18,000 linear feet of up to 36 diameter pipeline Recharge basins and/or instream recharge capacity of up to 8,000 acre- feet per year on approximately 35 acres Scheduled for construction late 2009 Estimated project cost $8 to $12M

Other major projects are in development within the region Joshua Basin Recharge –$6 to $9 M Big Horn Desert View Recharge Facility –$3 to $5 M HDWD Wastewater Treatment –Costs unknown Victor Valley Sub-regional Wastewater treatment Facilities –Costs unknown

Bottom line Theres a new game…and the rules consistently change Our region has several strategic assets –Access to the State Water Project –Abundant groundwater storage Investments in infrastructure will leverage our assets towards meeting our strategic goals Water = jobs…we all have a role to play