South Coast Water District September 16,2009 The Honorable Kim Dunning Presiding Judge of the Superior Court*

R1

Each Orange County municipal planning agency, in cooperation with its respective water supply agency, should prepare for adoption a dedicated Water Element This recommendation has been implemented in part and further implementation would require additional analysis as to the usefulness of the recommended effort. As noted in earlier responses, SCWD has prepared and distributed an Urban Water Management Plan (renewed every 5 years) and engaged in development and approval of a 10-Year Master Plan (addressing water supply and storage). In addition Metropolitan Water District engages in an Integrated Resources Planning effort (currently underway) to address long term supply projections and responsive planning. For new development (greater than 500 units), a water supply assessment must be completed through the planning jurisdiction under existing law. As the SCWD service area is largely built-out, it is unlikely that a large, 500+ unit development would occur any time in the foreseeable future. This may negate the need for a detailed additional local Water Element. As stated in response to findings F.4, F.4(a) and F.4(b) above, the District is engaging in the development of water supply from groundwater and potential ocean desalination and projects a future with 20% of supply coming from groundwater, 15% supplied through recycling, 30% desalination and 35% imported. It is too early in the planning stages to conclusively establish that project feasibility will be established and funding will be provided at the federal level for ocean desalination. Planning for emergency water supply may be useful on a local level, but to a great extent, through the auspices of the Water Emergency Response of Orange County (WEROC), MWDOC has integrated emergency planning to coordinate the resources and resource needs of water agencies into the County Emergency Planning process.

R2

Each Orange County retail and wholesale water agency should affirm its responsibility to develop new additional, innovative public outreach programs The recommendation has already been implemented, but more innovative types of communication will always be considered. In 2008, WEROC (and the District under its direction) participated in the Statewide "Golden Guardian" exercise along with 20 of the County's water and wastewater agencies. This exercise simulated a complete and sudden break in the imported water supplies. SCWD will continue through participation in WEROC to join in regionally planned exercises to simulate supply interruption emergencies. 4. P. No. 0991 Sep. 17. 2009 2:28PM At the local level, SCWD has prepared emergency response plans, including emergency public notification plans. All District employees have participated in emergency management training. The District has carried out table top response exercises. The District has the availability of auto-dial messaging and is working to update its phone and e-mail contact listings in the event of the need for urgent customer notification.

R3

Each MWDOC member agency should reaffirm to LAFCO that it will assign the resources necessary to expediently resolve regional governance issues The recommendation has already been implemented as referenced in the response to Finding F.3, above.

R4

Each Orange County retail and wholesale water agency should affirm its commitment to a fair-share financial responsibility in completing the emergency water supply network for the entire county This recommendation is already being implemented. The WEROC has been established to conduct emergency planning, preparedness and response to disaster events that impact the water agencies within the County. As a participant in WEROC, SCWD supports training through regional and statewide forums as well. SCWD intends to participate as necessary to complete the emergency water supply network serving Orange County. To that end, SCWD would attend all scheduled meetings set through WEROC. Sincerely, SOUTH COAST WATER DISTRICT Richard Dietmeier President, Board of Directors RD:rb enclosure James R. Perez, Foreman, 2008-2009 OC Grand Jury cc: SCWD Board of Directors . CC: Directors No. 0991 P. Sep. 17. 2009 2:28PM SOUTH COAST WATER DISTRICT August 10, 2009 Ms. Joyce Crosthwaite Executive Officer Orange County Local Agency Commission 12 Civic Center Plaza, Room 235 Santa Ana, CA 92701 RE: MWDOC Governance Study - Final Stakeholder Discussion of August 10, 2009 Dear Ms. Crosthwaite The South Coast Water District has been pleased to be a part of the continuing discussion and study surrounding the Governance of MWDOC. To date, the District has provided representatives to various LAFCO and stakeholder meetings, reviewed the Draft Technical Reports (No. 1, 2 and 3), reviewed the resulting Final Governance Study, and undertaken discussions with its own Board regarding the numerous issues presented. On July 7, 2009, the South Coast Water District Board met to consider the Governance Study and the recently circulated "White Paper" requesting support for an application to LAFCO to form a South Agency County Water Authority. At the July 7, 2009 meeting, a clear Board majority of opinion did not exist for either of the extremes: (i) a vote supporting the change to a County Water Authority (CWA) structure at this time, or (ii) a vote against forming a CWA (rejecting the "Whitepaper" in favor of the existing MWDOC structure). Rather, the South Coast Water District Board was unanimously of the opinion that additional information, discussion and negotiation of the issues facing retail agencies within the existing MWDOC structure should take place. Additionally, many questions regarding the benefits and burdens of a possible County Water Authority are, in the opinion of the South Coast Water District Board, unanswered. The South Coast Water District Board Members recognize the clear importance of neighboring water agencies to South Coast's retail supply reliability, transmission and distribution systems. South Coast Water District partners on many storage, pipeline and supply agreements with adjacent South County water agencies. Additionally, its neighbors, such as Irvine Ranch Water District have shared water in times of supply curtailment, as well as provided input and assistance with new projects such as the South Coast Water District Groundwater Recovery Facility. South Coast Water District shares reservoirs, interconnections and supply systems with Moulton Niguel Water ı Mailing Address: P.O. Box 30205, Loguna Niguel, CA 92607-0205 Street Address: 31592 West Street, Laguna Beach, CA 92651 Phone: (949) 499-4555 Pax: (949) 499-4256 No. 0991 P. Sep. 17. 2009 2:28PM District and views its friendship and support as key to the optimal operations of boundary areas between systems. The MWDOC Board and Staff are viewed positively by the South Coast Water District. The South Coast Water District Board also recognizes the many benefits of MWDOC with the District participating directly in service aspects of MWDOC (apart from MWDOC's core functions of wholesale water accounting and MET representation). South Coast Water District supports and is funding MWDOC efforts to study the feasibility of an Ocean Desalination Project. Many of the MWDOC developed educational and outreach programs for Water Conservation and Education are accessed and used for the benefit of South Coast Water District customers. The joint County emergency planning efforts conducted by WEROC are valuable to South Coast Water District customers, among other MWDOC supported programs. The South Coast Water District Board Members expressed a strong preference for continuing understanding, discussion and negotiation of some of the traditional areas of concerns among member agencies. Some of these concerns were discussed as long ago as December 2006, when MWDOC issued the staff report on the MWDOC/LAFCO stakeholder program, Changes to Improve Member Relations (