80A - JOINT - SAFA - WATER SYS BONDS

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Occasionally, OCWD will implement programs in cooperation with specific water agencies, including the City, to under -pump or over -pump in certain strategic locations to better address localized Basin conditions or to meet other OCWD objectives, such as refilling the Basin. For example, during Fiscal Year 2002 -03, the City participated in a program to help refill the Basin by purchasing additional quantities of MWD imported water "in- lieu" of pumping that water from the Basin, thereby decreasing the Water System's groundwater production to 68% of its total supply even though the BPP was at 75% for that Fiscal Year. As another example, during Fiscal Years 2000 -01 and 2001 -02, the City participated in the Coastal Pumping Transfer Program ( "CPTP ") at OCWD's request and pumped 78% of its total supply when the BPP was at 75 %. The CPTP minimizes seawater intrusion to the groundwater basin by encouraging agencies along the coast to pump below the BPP, while inland agencies, such as the City, pump a corresponding amount above the BPP. These programs do not increase the City's annual water supply costs, but provide regional benefits by purchasing surplus MWD water for recharging the groundwater basin or preventing seawater intrusion along the coast. Metropolitan Water District of Southern California - Imported Water The following information regarding MWD has been obtained from MWD and sources that the Authority believes to be reliable, but the Authority takes no responsibility for the accuracy or completeness hereof. Additional information about MWD may be obtained from MWD's website at www.mwdh2o.com. No information contained in such website is incorporated herein by reference. MWD is a public agency organized in 1928 by vote of the electorates of several Southern California cities, including the City, following adoption of the original Metropolitan Water District Act (the "MWD Act ") by the California Legislature. MWD is not subject to regulation by the California Public Utilities Commission, although its enabling statute is subject to amendment by the California Legislature. MWD currently has full authority to set rates and policies as necessary to provide a dependable water supply to Southern California. MWD provides nearly between 40% and 60% in any given year of the water used in its service area, which consists of approximately 5,200 square miles in portions of Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura Counties. MWD serves a population of almost 19 million people. MWD is governed by a 37- member Board of Directors consisting of at least one representative from each of the 26 member public agencies, including the City, that comprise the MWD. Each member public agency is entitled to have at least one representative on the Board, plus an additional representative for each full 5% of its assessed valuation of property in MWD's service area. Accordingly, from time to time, the Board may have more than 37 members. Representation and voting rights are based upon each agency's assessed valuation. MWD Water Supply MWD faces a number of challenges in providing a reliable and high quality water supply for southern California. These include, among others: (1) population growth within the service area; (2) increased competition for low -cost water supplies; (3) variable weather conditions; and (4) increased environmental regulations. MWD's resources and strategies for meeting these long -term challenges are set forth in its Integrated Water Resources Plan, as updated from time to time. MWD's principal sources of water are the State Water Project and the Colorado River. Court decisions have restricted deliveries from the SWP in recent years. Precipitation, in the form of snow or rain, and its resulting runoff and storage levels are key indicators for MWD's supplies from both its State Water Project and Colorado River sources. Snowpack, as presented below, is a percentage of the April 1 historical average water content. April 1 is recognized as the typical peak of the season in any given year. California hydrology is highly variable from year to year. In March 2011, following a three year drought, California Governor Jerry Brown proclaimed an end to the statewide drought emergency proclaimed in February 2009 by then - Governor Arnold Schwarzenegger. In 2011, California's snowpack peaked at 163 percent of normal. Drier conditions returned for 2012, with California statewide snowpack peaking in mid -April 2012 at 64 percent of normal. After large storms in November and December of 2012, California started 2013 with above normal snowpack conditions for th�t"62 the California 2013 snowpack peaked in March 22