April 18, 2006

1

Oakdale Irrigation District Water Resources
Plan A Community Plan. A Successful
Future. Financial Model and Discussion of
Preferred Project

• April 18, 2006

2
The Water Resources Plan Goals

• Provide long-term protection to OIDs 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• Rebuild/modernize an out-of-date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

• 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
5
The WRP Recommends Expansion into the SOI

• The WRP goals need to be consistent with OID
  policies
• A review of the current OID Annexation Policy is
  necessary
• Recommend a 2 step process
• Develop Guiding Principles
• Revise Annexation Policy as necessary

• Provide long-term protection to OIDs 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• Rebuild/modernize an out-of-date system to meet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 inthe planning process

6
Guiding Principles are District Policy Statements

• GP 1 Expansion into SOI shall not negatively
  impact existing OID customers as it relates to
  water supply reliability, cost of service,
  availability of service, etc.
• GP 2 Transfers should achieve the greatest
  local benefit with the least amount transferred.

7
Guiding Principles are District Policy Statements

• GP 3 When surplus water becomes available over
  the next 20 years, it shall be committed to
  meeting several priorities.
• Transferred to meet the WRP Goals and economic
  needs of the District,
• To insure the future local water needs for the
  cities of Oakdale and Riverbank,
• To increase opportunities for expansion within
  the sphere of influence
• And other needs as determined by the Board

8
Guiding Principles are District Policy Statements

• GP 4 Water for SOI expansion shall be provided
  as a supplemental supply to SOI users.
• GP 5 Expansion into SOI shall only occur on
  developed agricultural land.

9

• Outside the OID service area (within SOI)
• Fruits and Nuts 6,900 acres
• Corn and Oats 3,700 acres

10
Guiding Principles are District Policy Statements

• GP 6 Agricultural water for SOI expansion shall
  be prioritized based on considering all the
  following factors
• Least water demand
• Highest efficiency of use (trees over pasture)
• Large ag parcels over small ag parcels
• Contiguous over non-contiguous
• Least long-term maintenance costs to OID
• Least cost to serve by OID
• Ability to benefit local aquifers (in-lieu
  recharge)
• Self-sufficient during a drought can pump their
  own water and can pump into OID canal for use
  downstream
• No ag water drainage leaving property

11
Schedule of Board Involvement
12
The Preferred Alternative (Proposed Program)
has Several Components

• Flow Control and Measurement
• Canal Maintenance and Rehabilitation
• CIP Pipe Replacement
• Main Canals and Tunnels Program
• District Groundwater Wells
• New Regulating Reservoir and Woodward Intertie

• Turnout Replacement Program
• Surface Water Outflow Management
• Drainwater Reclamation Program
• Drought Response Plan
• Expansion into Sphere of Influence
• Water Transfers
• Future Provision of Water for Cities

13
The Preferred Alternative (Proposed Program)
has Several Components

• Flow Control and Measurement
• Canal Maintenance and Rehabilitation
• CIP Pipe Replacement
• Main Canals and Tunnels Program
• District Groundwater Wells
• New Regulating Reservoir and Woodward Intertie

• Turnout Replacement Program
• Surface Water Outflow Management
• Drainwater Reclamation Program
• Drought Response Plan
• Expansion into Sphere of Influence
• Water Transfers
• Future Provision of Water for Cities

14
Flow Control and Measurement

• Improve DSO ability to meet customer water needs
• Enable growers to modernize on-farm operations
• Reduce operational spills
• Supports revised Service Standards
• All projects within OID Right of Way

15
Flow Control and Measurement Example Project

• New concrete structure
• Motor operated flow control gates
• Downstream measurement flumes
• SCADA
• Flows coordinated with reservoir releases

16
Main Canals and Tunnels Program

• 2-mile bar slide zone outside OID Right of Way
• Main Canals Tunnels are on separate CEQA track
  but will be discussed in PEIR
• Working with Condor to prioritize projects
  relative to other WRP needs

17
OID Groundwater Wells Program

• Improve peak supply flexibility
• Increase drought year supply reliability
• Locations TBD by OID over course of
  Implementation
• May require Right of Way acquisition

18
District Drought Response Plan

• Additional District groundwater pumping
  capabilities
• Cooperative use of private groundwater wells
• Expansion of Service into areas with groundwater
• Modifications to delivery schedules
• Pursue land idling agreements as a consideration
  for long or severe droughts

19
Regulating Reservoir Recommendations
Woodward Reservoir
New Reservoir
Van Lier Reservoir
20
North Side Reservoir

• Manage mismatches in supply and demand
• Meet increases in irrigation demand, providing
  greater flexibility and shorter response time
• Provide temporary storage of excess flows during
  unscheduled cuts in demand
• Will involve Right of Way acquisition

21
Woodward Intertie
22
Drainwater Reclamation Program

• Improve peak irrigation season supply closer to
  the point of use, which increases operating and
  scheduling flexibility
• Plan routing of excess lateral flows to the
  drainwater storage reservoirs
• Some facilities will require Right of Way
  acquisition

23
Surface Water Outflow Management Program

• Regulate outflows from the OID service area
• Provide predictable timing/quantity for managed
  re-use by downstream water users
• Potential water quality benefits
• Facilities will require Right of Way acquisition

24
These Program Components Make Up the Preferred
Alternative

• Flow Control and Measurement
• Canal Maintenance and Rehabilitation
• CIP Pipe Replacement
• Main Canals and Tunnels Program
• District Groundwater Wells
• New Regulating Reservoir and Woodward Intertie

• Turnout Replacement Program
• Surface Water Outflow Management
• Drainwater Reclamation Program
• Drought Response Plan
• Expansion into Sphere of Influence
• Water Transfers
• Future Provision of Water for Cities

25
Schedule of Board Involvement
26
Four alternatives were developed to address what
to do with conserved water
Alternative 3 moderately expands service within
OIDs Sphere of Influence.
27
Financial Model was Used to Evaluate Revenue
Options

• Rates and Charges
• 54,100 acres in-District (-1,600 acres net)
• 4,250 acres expansion (1,600 buy-in, in-District
  rate equiv to 40/ac long-term contract w/ no
  buy-in)
• 3 annual escalation
• Hydropower
• Based on current agreement
• 12.5M to 5.5M annually

28
Financial Model was Used to Evaluate Revenue
Options

• Other
• Property Tax and Miscellaneous
• Assumed that by 2007, ERAF Terminates
• Water Transfers
• Stanislaus River (Top) 30,000 to 50,000 af
  (210/af)
• Surface Water Outflow (Bottom) 0 to 30,000 af
  (20/af)

29
WRP Recommended Alt
30
No Water Transfers, Full Annex
31
Water Charge would need to Increase without Water
Transfers
32
Transfers are Necessary to Achieve WRP Goals

• Annual Costs
• OM 8M
• CIP 3M - 6M
• Main Canals and Tunnels (debt service) - 5M

• Revenue (w/o Transfers)
• Water Charge 1M
• Misc 0 - 1M
• Power - 5.5M - 12.5M

Total 16M to 19M
Total 6.5M to 14.5M
33
Schedule of Board Involvement
34
California Environmental Quality Act (CEQA)
Process

• Disclose potential impacts of a proposed
  program/project
• Programmatic document to allow for
  development/refinement of future actions (e.g.
  water transfers)
• Obtain public and agency input
• Mitigate potential significant impacts (if any)
  to extent possible

OIDs roleConsider the above when making a
decision on the program
35
Disclosure of Alternative Selection Process and
Potential Impacts

• Evaluate proposed project
• Summarize alternatives selection process
• Alternatives evaluated (in WRP) provides basis
  for elimination discussion
• No Project is basis for impact analysis
• Potential impacts to be evaluated (e.g.)
• Water quality
• Biological resources/habitat
• Groundwater levels
• Actions included as part of proposed project
• Potential for growth inducement (water transfers
  and annexations)

36
Preferred/Best Apparent Alternative Proposed
Program

• Proposed program must be defined to allow for
  environmental review
• Vast majority of individual actions or individual
  will require additional refinement (e.g. outflow
  basin locations and operations)
• PEIR will identify overall anticipated impacts
  and identify avoidance criteria and programmatic
  mitigation
• Future documents (primarily negative
  declarations) will tier from PEIR and use
  avoidance criteria and mitigation as applicable

37
CEQA Path Forward

• Programmatic review
• Those actions/projects that are essentially OM
  will be identified as such (e.g. Flow Measurement
  projects)
• Resource studies (landowner contacts for field
  reviews)
• Public draft to be released in November
  (administrative draft by end of September)

38
Implementing Proposed Program Will Benefit OIDs
Customers and the Community

• Protect OIDs water rights.
• Enhance customer service for all users.
• Rebuild, modernize, and expand system
  infrastructure.
• Protect the future water supply needs of the
  cities of Oakdale and Riverbank.
• Keep water rates affordable through a balanced
  effort of water transfers and service to new
  customers within OIDs Sphere of Influence.
• Substantially increase water supply reliability
  and meet OID service in a worst-case drought.

39
Summary

• Significant Board and public interaction
• Have fully defined and characterized the Proposed
  Program
• Ready to start impact analyses

40
Schedule of Board Involvement
41

Oakdale Irrigation District Water Resources
Plan A Community Plan. A Successful
Future. Financial Model and Discussion of
Preferred Project

• April 18, 2006