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

What’s 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 AgencyNapa 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 The State Water Project provides a Project provides a safe, high quality safe, high quality drinking water drinking water supply for over 23 supply for over 23 million million CaliforniansCalifornians

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

Here’s 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

RegionalRegional

RechargeRecharge

Recovery

Recovery

The R3 project concept is based on providing regional benefits to multiple beneficiaries

The R3 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

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 There’s 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