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California's looming water supply crisis receives very little, if any, expressed concern from the public in comparison to the numerous other environmental issues presented during development project reviews. (a). Orange County's citizens and interest groups do not appear to grasp the seriousness of the water supply situation or the complexity and urgency of the necessary solutions. (6). Several recent, substantial water supply awareness efforts are underway (e.g. the O.C. Water Summit) that show promise but appear targeted to audiences that are already informed. YLWD agrees with this Finding While YLWD may agree that the water crisis receives little concern, it is not for lack of effort by the water community. Water is not as visible as traffic congestion because the public cannot feel the "water congestion" until cutbacks become mandatory. This is part of the difficulty and the challenge of stressing water issues that the public will recognize and understand. What are outlined below are the outreach efforts that are currently being utilized along with several questions: Is this a crisis? What should we do about it? What can we do about it? Crisis communications cannot be sustained over the long run. Some in the water community believe that we have reached a crisis, while others believe it is a problem to be resolved over time. The water community itself does not speak with one voice. What do we want the public to do about it? How can the public best be motivated? Do we want to scare the public? What course of action will maintain the best working relationship with the public and build the most trust for the long run? The public needs to trust what the water community is doing and support investments in our water future. Also, a course of action to develop and sustain long term changes in the efficiency of use by customers is critical in addition to an informed constituency for decision-making and voting (when necessary). The water community has been extremely successful, leading to complacent consumers. The crisis facirlg us is a combination of regulatory, judicialllegal, political, environmental and to a lesser degree, financial. There are considerable challenges for the public to understand the intricacies and nuances of this framework. However, the gains from having a better informed public are to motivate them towards an improved efficiency with which they use water, have them understand the need for additional investments for new supplies and to have them educated for purposes of securirlg positive votes on water related initiatives, if needed. Water is not a sexy topic unless there is a line break with a major sink hole, a sewer spill, or people forced to curtail their use. Typically, people do not see the intricacies of providing water to homes and businesses. Many take water for granted, which causes it to be undervalued. Customers turn on the tap and the water comes out - sprinklers turn on and the water comes out. The water industry typically does not have brown outs or black outs, but has a high degree of reliability and safety, probably somewhere beyond 99.99% (% of time water comes out of the tap). Many have the belief that the water supply system is something that they - and prior generations - have invested in and that artificial constraints limit the supply of water from it. The water industry has many communication and outreach avenues, but the spending by public entities is generally low compared to industries that would spend at much higher levels to brand or market new products. Still, water industry communications can be and are effective. In recent years, the water industry has collectively advertised itself as the "Family of Southern California Water Agencies" and promoted "Bewaterwise.com" to promote the water supply situation and water conservation tips and opportunities. YLWD utilizes bill stuffers, newsletters and websites to inform the public. In Orange County, a monthly Public Affairs Workgroup meeting occurs made up of the staffs from all of the retail agencies. They work to develop and implement consistent message points for the public. MET also has a Public Information Officer's workgroup that coordinates outreach and communication among the MET member agencies. Due to the expense and the limited budgets of the retail agencies, the brunt of the TV and radio media outreach has been developed via MET through an advertising campaign for the LA & San Diego markets. While YLWD is open to new methods of communication, we believe the existing communication system works. Polling conducted from time to time to track water industry messages and the understanding of the public indicates that high percentages of people understand there is a water crisis (76% in a recent survey by MWDOC). Furthermore, 78% indicated they would change their water using habits to conserve to prevent water rationing and 67% believe that their water agency does an effective job of keeping them informed about water supply. We also believe high percentages of the public are engaged because of recent actions such as the "run" on rebates for water conservation devices, which pushed spending up to a point where the available funding was exceeded several times over. Furthermore, with the formation of a YLWD Citizens Advisory Committee comprised of lo&l residents, this group serves as a conduit for communicating to the public on various issues. The following is an outline of current outreach efforts: In June of 2008, Public Affairs Workgroup began developing a regional message that incorporated three critical elements of a long term communication strategy: The message must be positive Focus on water-use efficiency and eliminating water waste Adaptable at the retail level 1 A comprehensive, strategic communication plan was developed that incorporates grassroots education, strategic,p artnerships and guerrilla marketing techniques. Research has shown that this approach has been most successful in achieving social change. This plan augments and enhances the large media campaign that Metropolitan is orchestrating Increases visibility throughout the region Integrates new technology and social marketing channels as well. Critical part of the plan is to engage strategic partners to help carry the message. Everyday new partners are signing on. Current strategic partners include: lBlM I Hurley Sportswear Volcom Sempra Energy Surfer Magazine Latino Water Coalition Transworld Media Sunset Magazine Fuel TV Other parts of the program include: Huell Howser contracted with the Association of California Water Agencies to produce 15 episodes about California Water. This series is being utilized to help inform citizens. .I Cable channels are being used to get the word out. Educational trips are provided by MET for each of its Directors to host community leaders to promote water issues MWDOC has one of the best .School Education Programs in the state for water awareness education in grades K-6; it reaches about 90,000 students per year and has reached about 3,000,000 since 1972. Water Heroes -a new program aimed at kids and families, focuses on identifying water wasting habits and eliminating them. Over the past two years 7500 kids have 'signed up on www.ocwaterhero.com . . Within the last six months, the following YLWD activities have also occurred to further communicate with the public related to water conservation: Worked with stakeholder groups (HOAs, City, Large Residential Users and Developers) to determine their needs and how they can best apply YLWD's conservation ordinance to their specific situation. Expanded the website to include detailed information and common questions 'related to the conservation ordinance and to include additional landscaping information to assist customers with their landscape. Redesigned the quarterly Customer Newsletter and monthly Bill Inserts to convey the water conservation message. Given all of this communication and work that is planned, will there still be shortages as part of the "looming water crisis"? As discussed in other locations in this response, there are many issues that need to be resolved to fix the state's water crisis. Until then, we fully expect that water shortages will occur from time to time.

a, b & c) This Recommendation will be implemented. YLWD is committed to providing resources and the assistance necessary to resolve these pending governance issues. R.4: 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. The entire County should be prepared together for any conditions of drought, natural or human-caused disaster, or any other catastrophic disruption. WEROC should commence meetings of all parties, to facilitate consensus on an equitable funding/financing agreement. (Finding F4 a b) This Recommendation is already being implemented The Water Emergency Response Organization of Orange County (WEROC) has been established to conduct emergency planning and preparedness at the regional level and response to disaster type events that impact the water and wastewater agencies within the County. WEROC participates with Regional and statewide forums as well. Each retailer also has plans and activities they conduct to be in a state of emergency preparedness. The retail agencies also work together to support one another through the network of emergency interties between agencies that allow water to be shuttled back and forth during emergency situations. WEROC's focus and the focus of emergency planning is to improve "system reliability", the ability to continue meeting demands when parts of the water system have suffered outages. This is distinguished against "supply" reliability which has to do with having supplies to deliver through the system. With respect to regional system reliability, Orange County has been successful in requesting MET to improve the reliability of the Diemer Filtration Plant in Yorba Linda. MET is in the process of making substantial investments to protect the plant from being damaged by seismic shaking. The Diemer Plant treats most all of the imported drinking water in Oraqge County. We also believe there was confusion in the Grand Jury Report between a "catastrophic" impact of a Delta Failure, which is more of a long term water "supply" issue, and therefore different than a WEROC test exercise type of "system" event. Much work is underway on resolution of the Delta issues, but not through WEROC. WEROC does conduct test exercises in Orange County of the type noted by the Grand Jury. We would also like to note that responses to drought situations are included when YLWD completes the Urban Water Management Plan. Responses must include supply analyses for normal years, single dry years and multiple dry years and must also include drought response measures for up to a 50% level of shortage. The Urban Water Management Plans address many of the issues raised by the Grand Jury. Once again, thank you for the opportunity to respond to these Findings and

Orange County is uniquely fortunate to have a vast, high-quality, well- managed groundwater basin serving its north geographical area. However, in its south reaches, it has an equally large, high-growth area with virtually no available groundwater resources. (a). The difference in groundwater availability creates a "haves versus have-nots" situation that is conducive to inherent conflicts. (b). The difference in groundwater availability provides opportunities for responsible participants to develop and construct long-term solutions which will benefit the entire County. YLWD agrees with Finding F.4(a) This recognition of water rights mirrors the manner in which Orange County was developed. Development in South County was enhanced by the south county water agencies ability to obtain imported supplies and develop extensive recycled water programs. YLWD disagree partially with Finding F.4(b) The finding is not clearly stated, but appears to include two implications that we believe require expanded information. The first implication is that local resources are not being fully developed in south Orange County. This is not correct. Critical groundwater, recycled water and ocean water supplies are all being developed in south Orange County. While the Grand Jury is correct in its supposition that there are opportunities presented in this issue as well as problems, the second implication here is that the OCWD Groundwater Basin has the capacity to serve the entire county. This is not correct. The groundwater basin is managed and utilized to provide water supplies to its overlying constituent landowners. The operable storage in the basin has been developed at substantial cost and is insufficient to meet all demands within the basin. Currently, the groundwater basin meets about 62% of the needs of the overlying agencies (historically, has ranged from 62% to 80%) and the groundwater cost is substantially less than the cost of imported water. If additional supplies can be developed, the % distribution to the overlying entities would increase. It will never reach 100% and so it can be concluded that the supplies from the basin must remain in the basin to benefit the basin constituents. This is also consistent with water rights law and the OCWD Act that formed OCWD and governs how it operates and manages the basin. Use of storage in the OCWD basin is allowed by agreement with OCWD. OCWD has entered into storage arrangements that allow MET to store up to 66,000 AF of imported water and to recall as much as 20,000 AF out of this same storage in any one year. This additional yield out of storage benefits everyone in Southern California. In addition, a February 2006 Emergency Services Program Agreement was developed with OCWD that allows emergency water supplies from the basin to be exchanged with south Orange County. This program is currently being used to allow exchange of water to south Orange County during emergency situations. Finally, development of projects by OCWD like GWRS benefit the south County area as well as all of southern California. Allowing access to the lower cost groundwater outside of the basin or allowing access to more storage by south Orange County would increase the cost to the basin agencies and put them at risk. Recommendations . . . R. 1: Each Orange County municipal planning agency, in cooperation with its respective water supply agency, should prepare for adoption by its city council, a dedicated Water Element to its General Plan in conjunction with a future update, not to exceed June 30, 2010. This document should include detailed implementation measures based on objective-based policies that match realistic projections of the County's future water supplies. These objectives, policies and implementation measures should address imported supply constraints, including catastrophic outages and incorporate the realistic availability and timing of "new" water sources such as desalination, contaminated groundwater reclamation and surface water recycling. (Findings F1 a & b, and F2 a & b) This Recommendation will not be implemented This recommendation does not directly apply to YLWD since the municipal planning agency is the City of Yorba Linda. However, it should be noted that YLWD is the respective water agency and prepares an Urban Water Management Plan and updates it every five years. In addition, MET prepares an UWMP, its IRP and updates and its Water Supply Outlook periodically. The CEQA process also provides YLWD the opportunity to provide comments on developments. Collectively, these documents provide what has been suggested. For new developments of greater than 500 units, a Water Supply Assessment must be completed - this is existing law. In addition, the water community measures performance (supplies vs. demands) as we move forward and will be able to make adjustments in the process. Should the City of Yorba Linda choose to adopt a dedicated Water Element within their General Plan, YLWD is committed in assisting the City with that endeavor by providing all necessary support.