WATER SUPPLY ASSESSMENT

for the Proposed Polo Estates Project

Prepared by

Coachella Valley Water District

Post Office Box 1058 Coachella, CA 92236 and

Indio Water Authority 100 Civic Center Mall

Indio, CA 92201 Prepared for

City of Indio 100 Civic Center Mall

Indio, CA 92201
May 2003

CVWD Approval
Prepared by:

Todd Jorgenson Domestic Water Engineer

Reviewed by:

Dan Farris Director of Engineering

Approved by:

Steve Robbins General Manager-Chief Engineer

Accepted by CVWD Board of Directors on Resolution 2003-

, 2003

11

Polo Estates Project Water Supply Assessment

Table of Contents
SECTION 1.0 INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Description of the Polo Estates Project Land Use Type Purpose of the Water Supply Assessment Coachella Valley Water District Coachella Valley Water Management Plan /2000 Urban Water Management Plan Reliance on the UWMP and CVWMP for Documenting Water Supply and Demand Summary of UWMP Findings and this Assessment 1 2 3 3 4 5 6 7 8 8 10 14 14 15 15 16 17 18 18 19 20 20 22 22 24 27 28

SECTION 2.0 WATER SUPPLY SOURCES 23 Existing Water Supplies 2.1.1 Groundwater Surface Water 2.1.2 Coachella Canal Water (Colorado River Water) 2.1.3 Recycled Water I Fish Farm Effluent 2.1.4 State Water Project Exchange Water 2.1.5 2.2 Projected Water Supplies 2.2.1 Groundwater 2.2.2 Surface Water Coachella Canal Water (Colorado River Water). 2.2.3 2.2.4 Recycled Water 2.2.5 State Water Project (SWP) Exchange Water 2.3 CVWD Conservation Efforts (Demand Management Measures) SECTION 3.0 PROJECTED WATER DEMAND ANALYSIS 3.1 3.2 Projected Water Demands Normal and Dry Year Demand and Supply

SECTION 4.0 CONCLUSIONS SECTION 5.0 LIST OF ACRONYMS USED IN THIS WSA

iii

SECTION 1.0 INTRODUCTION

The Coachella Valley Water District (CVWD) and the Indio Water Authority (Authority) have prepared this Water Supply Assessment (WSA) for the Polo Estates Project (Project) proposed in the City of Indio. This WSA has been drafted pursuant to the requirements of Senate Bill 610 (SB 610) and Senate Bill 221 (SB 221), legislation enacted in 2001 and effective as of January 1, 2002, that requires cities and counties to request specific information on water supplies from the operators of any Public Water System (PWS) that would serve new development as defined in SB 610 and SB 221 and to include this information into environmental review documents prepared pursuant to the California Environmental Quality Act (CEQA)t'2 A written agreements (Agreement) between the City of Indio, CVWD and the Authority, dated January 3, 2003, describes the respective domestic water service areas for CVWD and the Authority. According the Agreement, the. Polo Estates Project site lies within the service areas of both CVWD and the Authority.

A WSA is required for any residential "project" subject to CEQA3 if the project would result in the development of more than 500 dwelling units.4 The Polo Estates Project meets this definition. The City has requested a Joint WSA from CVWD and the Authority because the project meets the definition of "project" under Water Code Section 10912, and therefore requires a WSA and also because both CVWD and the Authority are "public water systems" as defined in said section, and are therefore required to provide the WSA. This WSA is prepared in response to the City's request.

The groundwater basin underlying the project area, which would be used to supply water to the Polo Estates Project is currently overdrafted. CVWD has adopted The Coachella Valley Water Management Plan (CVWMP) to eliminate this overdraft; this CVWMP is described below. Implementation of the Plan will enable CVWD to provide an adequate supply of water for its portion of the proposed project site as well as for other present and anticipated needs over the next 20 years and beyond.

2 3 4

SB 610 amended Section 21151.9 of the Public Resources Code, and amended Sections 10631, 10656, 10910, 10911, 10912, and 10915 of, repealed Section 10913 of, and added and amended Section 10657 of, the California Water Code. References to SB 610 and specific Water Code and Public Resource Code sections are made herein. SB 221 amends Section 11010 of the Business and Professions Code, adds Sections 66455.3 and 66473.7 to and amends Section 65867.5 of the Government Code. A public water system has 3,000 or more service connections and provides piped water to the public for human consumption. Public Resources Code Section 21080. Water Code Section 10912(a)(1). 1 Polo Estates Project Water Supply Assessment

As part of the overdraft elimination effort, CVWD imports water supply into the Coachella Valley to recharge the groundwater basin. CVWD holds contract entitlements to State Water Project water, which it exchanges for Colorado River water delivered by the Metropolitan Water District of Southern California (MWD); MWD delivers the water from its Colorado River Aqueduct through a turnout at the Whitewater River; the water flows down the riverbed to a series of recharge basins near Windy Point, where it is percolated into the Upper Coachella Valley Groundwater Basin. The Exchange Agreement with MWD enables CVWD to purchase additional State Water Project entitlement as well as periodic water supplies on the spot market for recharge into the Upper Valley Groundwater Basin.

CVWD also has rights to Colorado River Water, which is brought into the valley through the Coachella Branch of the All-American Canal and is accessible to much of the Lower Valley. Where possible, the Canal Water is used in lieu of groundwater to reduce pressure on the groundwater basin. In addition, CVWD is reviewing and testing locations to determine where the canal water can be placed to recharge the groundwater basin in the Lower Valley.

The Authority, by itself, does not have the ability to import water to provide domestic water service to the project or to recharge the aquifer. The Authority's ability to meet the projected water demands of the project site under the conditions listed in Water Code Section 10910 is contingent upon CVWD's ability to meet those same demands for the entire Project as well as for all other existing and projected uses in CVWD's service area over the next 20 years. CVWD, in effect, is a regional supplier as well as a local "public water system." For that reason, this WSA is undertaken from the prospective of the water supplies available to CVWD.

1.1 Description of the Polo Estates Project

The Polo Estates Project is a development plan proposal for the development of a residential community on an approximately 234 acre site in the City of Indio. The project will include 1,340 single-family housing units along with recreational, open space and commercial amenities. Table 1.0-1 summarizes the proposed land uses and their respective size in terms of acreage, units or square feet.

Polo Estates Project Water Supply Assessment

Table 1.0-1 Polo Estates Project Land Use Summary Land Use Type Residential Commercial/Mixed Use Totals: Acreage 214.4 20.0 234.4 Units 1,340 1,340 Square Feet 261,000 261,000

A portion of the project site currently is used as a sod farm, to which CVWD supplies irrigation water. This use is anticipated to phased out gradually as development gradually is phased in on the project site. Thus, the proposed uses ultimately would replace existing open space and agricultural uses. Project water demands would be partially offset by the existing demand for irrigation water. In the Coachella Valley, average water consumption for agricultural uses is similar to that of residential uses.

The project site is located on the northwest corner of Jackson Street and Avenue 52. The project is surrounded by residential uses, open space, the City of Coachella on the east side of Jackson Street, and the County of Riverside community of Vista Santa Rosa the south across Avenue 52.

Construction of the Polo Estates Project may occur in up to ten phases. The first phase of construction is anticipated to begin in 2005. Construction of the project would occur intermittently through build out of the project in 2020.

The timing of the project places it within CVWD's timeframe for calculating "planned future uses." CVWD planning documents include water demand and supply projections through 2035. Refer to Section 3.1, Projected Water Demands, for a discussion of the estimated water service demands of the Polo Estates Project. 1.2 Purpose of the Water Supply Assessment The primary purpose of this WSA is to provide an analysis of whether the CVWD water system has sufficient projected water supplies to meet the projected demands of the Polo Estates Project. Specifically, this WSA determines whether the CVWD water system's total projected water supplies available during normal, single dry and multiple dry water years during a 20-year planning period will meet the projected water demand associated with the proposed project, in addition to the CVWD water system's existing and Polo Estates Project 3
Water Supply Assessment

planned future uses, including agricultural and manufacturing uses. If the water supply is anticipated to be insufficient, the WSA must describe measures being taken to obtain an adequate supply.

Additionally, SB 610 establishes a relationship between the water supply assessment prepared for .a project and a project's CEQA documentation. Pursuant to Water Code Section 10911(b), there is now a requirement that the lead agency involved in the CEQA process include in the environmental documentation the water supply assessment and, if the water supply assessment found that current supplies were insufficient, any of the plans necessary to meet the project's water demands. The information contained in this WSA will be incorporated into any CEQA documentation prepared by the City of Indio for the Polo Estates Project.

Furthermore, SB 221 establishes a relationship between the water supply assessment prepared for a project and the project's approval under the Subdivision Map Act. Pursuant to California Government Code Section 66473.7, the Public Water System must provide written verification of sufficient water supply prior to the City of Indio's approval of the Polo Estates Project. This Water Supply Assessment also provides the information required by SB 221 to produce written verification of sufficient water supply for the Polo Estates Project.

1.3 Coachella Valley Water District

CVWD was formed in 1918 to protect the Coachella Valley's groundwater and to seek sources of imported water to supplement the Valley's water supplies. CVWD's service area encompasses roughly 637,000 acres (or 995 square miles), mostly within Riverside County, but also extending into northern Imperial and San Diego Counties. CVWD's efforts have resulted in the delivery of Colorado River water through the Coachella Branch of the All-American Canal. CVWD was also instrumental in obtaining the Valley's allotment of State Water Project (SWP) water. This water is delivered through an exchange agreement with the Metropolitan Water District of Southern California (MWD). This imported water recharges the Valley's groundwater supply, and supports the Valley's economy,

Of the Colorado River water reaching the Coachella Valley, 98.5 percent (or about 300,000 acre-feet per year) is supplied and delivered to farmers. The irrigation water delivery system for this water includes a network of about 500 miles of pipeline. CVWD provides domestic water supply for nearly 192,000 Coachella Valley residents via a distribution system that includes 63 reservoirs, over 1,600 miles of pipeline, and 92 domestic wells. 4
Polo Estates Project Water Supply Assessment

Other water-related services provided by CVWD include irrigation water and domestic water conservation efforts, wastewater reclamation and recycling, stormwater protection, agricultural drainage, water education, and groundwater recharge.

1.4 Coachella Valley Water Management Plan / 2000 Urban Water Management Plan

To meet its responsibilities for ensuring that there are adequate water supplies in the future and to address valley-wide groundwater basin overdraft, CVWD initiated a planning process in the early 1990s. The process initially addressed the Lower Valley, but was expanded to include the entire Coachella Valley in 1995. The Coachella Valley Water Management Plan (CVWMP) is the product of that process. The draft copy of the CVWMP was published and circulated for public review in November 2000. The associated environmental documents and public review period extended beyond the December 31, 2000 deadline for submittal of an Urban Water Management Plan, as required under California Water Code, Division 6, Part 2.6. Thus, the CVWD prepared an interim plan, the 2000 Urban Water Management Plan (UWMP), which relied largely on information in the draft CVWMP. Water demand and supply data in the UWMP apply to the Coachella Valley as a whole, but the demand management measures (DMM) apply only to the CVWD service area. The UWMP was adopted by the CVWD Board on February 13, 2001 and submitted to the California Department of Water Resources (DWR) on February 16, 2001. The Final CVWMP was adopted on October 8, 2002. These planning documents provide the basis for determining whether there is a sufficient water supply to serve the Polo Estates Project.

The primary difference between the UWMP and the Final CVWMP is that the UWMP provided water supply and demand projections based on the No Project Alternative evaluated in the CVWMP. The No Project Alternative includes continuation of current water management actions by the CVWD. The Preferred Alternative (Alternative 4) in the Final CVWMP incorporates measures that would reduce demand below No Project conditions by implementing elements within three basic water management categories: conservation, groundwater recharge, and source substitution. The measures identified as part of the Preferred Alternative would eliminate groundwater overdraft. The water demand and supply figures provided herein reflect the conditions under the Preferred Alternative analyzed in the Final CVWMP.

Polo Estates Project Water Supply Assessment

1.5 Reliance on the UWMP and CVWMP for Documenting Water Supply and Demand SB 610 requires that a WSA document the water demand for existing uses, planned future uses and the proposed development. Water Code Section 10910(c)(2) states that if the proposed project was accounted for in the most recently adopted urban water management plan, the water supplier may incorporate the requested information from the urban water management plan in preparing the WSA. CVWD water demand projections contained in the UWMP and CVWMP take into account the use and intensity of use proposed under the Polo Estates Project as described below.

CVWD water demand projections are based on a combination of assumptions regarding the effectiveness of CVWD' s water conservation programs, and municipal, agricultural, golf course, and fish faith and duck club growth (CVWMP, pp.4-1 4-5). Municipal growth assumptions refer specifically to population, housing and employment projections. The Southern California Association of Governments (SCAG) and the Coachella Valley Association of Governments (CVAG) provide the municipal growth assumptions used in District water demand forecasting.

SCAG/CVAG projections are based on development envisioned in planning documents prepared by local jurisdictions. For example, the City of Indio's General Plan (adopted in 1993) provides SCAG/CVAG an understanding of existing and proposed development within the City and the associated population, housing, and employment levels into the future. SCAG/CVAG use these projections to develop the regionwide projections that it later supplies to agencies, such as the CVWD, for regional planning purposes. Growth and water demands contained in the City of Indio's General Plan were therefore contemplated in the CVWMP and the UWMP.

Because development and growth assumptions under the proposed Polo Estates Project were guided by and are consistent with the City's General Plan, the demands for water under the proposed project are accounted for in the CVWMP and UWMP. That is, the density and water demands of the proposed project were contemplated in all CVWD planning documents.

SCAG/CVAG population, housing, and employment projections are updated regularly. The UWMP and water demand projections prepared by the CVWD are required to be updated every 5 years. CVWD' s future water demand projections will continue to incorporate the most recent SCAG/CVAG projections.

Polo Estates Project Water Supply Assessment

This WSA incorporates the data and findings included in the UWMP and CVWMP in its determination of whether there is sufficient water supply to serve the Polo Estates Project, because the Project's water demand is factored into the CVWD's projections as a "planned future use."

1.6 Summary of UWMP Findings and this Assessment

Based on the information and findings documented in this WSA, there is substantial evidence to support a determination that there will be sufficient water supplies to meet the demands of the Polo Estates Project, in addition to existing and planned future uses, including agricultural and manufacturing uses. This is based on the fact that CVWD has existing water entitlements, rights and contracts to meet future demand as needed over time, and has committed sufficient capital resources and planned investments in various water programs and facilities to serve all of its existing and planned customers. No shortages are anticipated within the CVWD's service area in average/normal year, single dry year and multiple dry year scenarios through 2035.

Polo Estates Project Water Supply Assessment

SECTION 2.0 WATER SUPPLY SOURCES

The first substantive requirement of a SB 610 WSA is the identification and description of the existing water supply sources in the public water system that will serve the project. Water Code Section 10910(d) requires a WSA to include an identification of any existing water supply entitlements, water rights, or water service contracts relevant to the identified water supply for the proposed project, and a description of the quantities of water received in prior years by the public water system. 2.1 Existing Water Supplies

For planning purposes, the CVWD divides the Coachella Valley into two areas: the Upper Valley and Lower Valley. The Upper Valley includes the cities of Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, and Desert Hot Springs, and the unincorporated communities of Thousand Palms, Garnet, North Palm Springs, and Whitewater. These communities include major resort destinations, major residential developments, and approximately 80 golf courses. The Lower Valley includes the cities of La Quinta, Indio, and Coachella, and the unincorporated communities of Thermal, Bermuda Dunes, and Mecca. Fanning activities are large in the Lower Valley; in 1999, there were about 72,800 irrigated acres of farmland. The Lower Valley also has fish farms and greenhouses that thrive on the warm groundwater in geothermal areas. Urban development in the Lower Valley is increasing and golf course development has expanded rapidly. In 1999, the most recent year for which detailed water demand and supply information was developed, water supplies in the Coachella Valley were about 668,900 acre-feet per year. Water in the Upper Valley is supplied by several sources including groundwater, surface water, Canal Water, and recycled water. The term "Canal Water" means Colorado River water supplied via the Coachella Branch of the AllAmerican Canal. Lower Valley sources consist primarily of Canal Water and groundwater with a very small amount of recycled fish farm effluent used for agricultural purposes. The service area for canal water delivery under the CVWD's contract with the U.S. Bureau of Reclamation is defined as Improvement District No. 1 (ID-1). Table 2.1-1 shows the CVWD's existing water supply entitlements, rights and service contracts. Each of these water supply sources is discussed below. Table 2.1-2 shows historical use in the Coachella Valley from these supply sources in 1936 and 1999. Figure 2.1-1 illustrates historical water supply in interim years by source category. In 1999, roughly 56 percent of the demand was supplied by groundwater, 41

Polo Estates Project Water Supply Assessment

percent with Canal Water, and about 3 percent by combined surface water, recycled water, and fish farm effluent water supply sources.

Supply Groundwater Canal Water Recycled Water/Fish Farm Effluent SWP Exchange Water'

Table 2.1-1 Existing CVWD Water Supply Entitlements, Water Rights, and Water Service Contracts AcreRight Entitl,Anent Feet/Year Other Contract Unspecified` 330,0002 9,6001 23,100 X X X X

Ever Utilized? Yes Yes Yes Yes

1 The CVWD shares a common groundwater source that has not been adjudicated. 2 The CVWD has an undefined share of 3.85 million acre-feet of water allocated to California agricultural agencies under Priority 3a. Long term average use is approximately 330,000 acre-feet/year. 3 Reflects 1999 recycled water supply volume (8,100 acre-feet per year) from the CVWD's three wastewater treatment plants capable of providing reclaimed water for use, and 1,500 acre-feet per year from fish farms in the Lower Valley. 4 Imported SWP Exchange Water is not used as a direct water supply source, but rather is used to recharge groundwater supplies in the Coachella Valley.

Table 2.1-2 Summary of Historical Water Supplies (acre-feet per year) 1936 lower Valley Total Canal Water Groundwater Surface Water Recycled Water Fish Farm Effluent Total Supply: 1999 Upper Valley Lower Valle;, 274,900 168,300 Total 276,300 376,100 6,900 8,100 1,500 668,900

Upper Valley

0
15,500 4,000

0
76,800

0
92,300 4,000

1,400 207,800 6,900 8,100

0 0
19,500

0 0 0
76,800

0 0
96,300

0 0
1,500 444,700

0
224,200

a Reflects Colorado River water conveyed to the area via the Coachella Branch of the All-American Canal.

SOURCE: CVWD, Coachella Valley Water Management Plan, November 2000, p. 3-7.

Polo Estates Project Water Supply Assessment

Figurer 2,1-1 Historical Supply Summary by Type

1
0 1 '1941

k'.. I lk 6. \ NI Ntp
N 15/51 1955 1951 1968 1 1 15176 19S1 196 1971 1.W.;
Fkainghtr MCC, p

2.1.1 Groundwater
Water Code Section 10910(f) requires a WSA to include specific information related to describing groundwater resources if the water supply for a proposed project includes groundwater. Specific additional information includes the following (Water Code Sections 10910(f)(1) through (5)):

A review of any information contained in the urban water management plan relevant to the identified water supply for the proposed project. A description of any groundwater basin or basins from which the proposed project will be supplied. For basins that have not been adjudicated, information as to whether DWR has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue, in the most current bulletin of the DWR that characterizes the condition of the groundwater basin, and a detailed description by the public water system. A detailed description and analysis of the amount and location of groundwater pumped by the public water system for the past five years from any groundwater basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. 10

Polo Estates Project Water Supply Assessment

A detailed description and analysis of the amount and location of groundwater that is projected to be pumped by the public water system from any basin from which the proposed project will be supplied. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records. An analysis of the sufficiency of the groundwater from the basin or basins from which the proposed project will be supplied to meet the projected water demand associated with the proposed project. A WSA shall not be required to include the information required by this paragraph if the public water system determines, as part of its review of its urban water management plan, that the sufficiency of groundwater necessary to meet the initial and projected water demand associated with the project was addressed in the description and analysis required by Water Code Section 10631 related to the contents of the urban water management plan.

Since the early part of this century, the Coachella Valley has been dependent on groundwater as a source of water supply. Groundwater is used to supply water for crop irrigation, fish farms and duck clubs, golf courses, greenhouses, industrial use, and municipalities in the Valley.

The CVWD shares a common groundwater source with the Desert Water Agency (DWA), the City of Coachella, the Authority, and the Myoma Dunes Mutual Water Company. Groundwater in the Coachella Valley's groundwater basin has not been adjudicated.

The Coachella Valley's groundwater basin can be described as a giant tilted bathtub full of sand, with the high end at the northwest edge of the valley near Whitewater and the low end at the Salton Sea. Water placed on the ground surface in the Upper Valley will percolate through the sand directly into the groundwater aquifer. In the Lower Valley, several impervious clay layers lie between the ground surface and the main groundwater aquifer. Water applied to the surface in the Lower Valley does not easily reach the lower groundwater aquifers due to these impervious clay layers. Groundwater is pumped from two underground aquifers (the Upper Aquifer in the Upper Valley and the Lower Aquifer in the Lower Valley) that are estimated to store roughly 30 million acre-feet of water, much of which originates from runoff from adjacent mountains. Table 2.1-2 shows historical groundwater use in 1936 and 1999, and Figure 2.1-1 illustrates interim years. By 1999, groundwater use in the Coachella Valley had increased by more than four times the use in 1936. Groundwater supplied about 56 percent of the total 1999 demand (93 percent in the Upper Valley and 38 percent in the Lower Valley). In 1936, groundwater supplied nearly 96 percent of the total demand. Total groundwater use in 1996 was about 350,000 acre-feet per year. Groundwater use has increased steadily to 1999 use levels of approximately 375,000 acre-feet per year (see Table 2.1-2).

11

Polo Estates Project Water Supply Assessment

Several users (CVWD, the Authority, the City of Coachella and fau iers) pump groundwater from the Lower Aquifer, which would also serve the Polo Estates Project. While CVWD continuously monitors its own groundwater pumping, it only measures total aquifer pumping in select years. The CVWD' s annual groundwater pumping from the Upper Aquifer in each of the past five years includes the following:

Year 1997 1998 1999 2000 2001

Acre-feet/year 21,300 23,200 23,700 24,100 26,000

The annual demand for groundwater in the Coachella Valley as a whole has annually exceeded the limited natural recharge of the groundwater basin. The condition of a groundwater basin in which the demands exceed the supplies to the groundwater basin is called "overdraft". In DWR Bulletin 160-93, groundwater overdraft is described as follows (CVWMP pp.7 and 8): "Where the groundwater extraction is in excess of inflow to the groundwater basin over a period of time, the difference provides an estimate of overdraft. Such a period of time must be long enough to produce a record that, when averaged, approximates the longterm average hydrologic conditions for the basin." DWR Bulletin 118-80 defines "overdraft as the condition of a groundwater basin where the amount of water extracted exceeds the amount of groundwater recharging the basin over a period of time." It also defines "critical condition of overdraft" as water management practices that "would probably result in significant adverse overdraft-related environmental, social, or economic effects." Groundwater inflows and outflows for the Coachella Valley are estimated using modeling techniques. Changes in groundwater storage are determined by comparing these estimates. Change in groundwater storage is evaluated in terms of the change in total storage and the change in freshwater storage. The change in freshwater storage is a critical concern. Water applied in reasonably efficient agricultural or landscaping operations results in return flows with elevated salinity. The addition of poor-quality return flows to the basin has the effect of occupying available storage to the exclusion of higher-quality natural inflows or artificial recharge. As a result, the net amount of freshwater storage in the groundwater basin decreases. Freshwater storage in the Coachella Valley groundwater basin is an ongoing issue. DWR Bulletin 108, adopted in 1964, is the most current bulletin published by the DWR that characterizes the condition of the Coachella Valley groundwater basin. In Bulletin 108, DWR identifies that the
12 Polo Estates Project Water Supply Assessment

amount of usable supply in the overdrafted Coachella Valley groundwater basin is decreasing (CVWMP, p. 6-2). This overdraft condition or mining" of groundwater in the Valley has caused groundwater levels to decrease more than 60 feet in portions of the Lower Valley and raised concerns about water quality degradation and land subsidence. Groundwater levels in the Upper Valley have also decreased substantially, except in areas where artificial recharge has successfully raised water levels (i.e., at the Whitewater Spreading Facility). The CVWMP defines actions the CVWD will take to prevent continuing decline of groundwater levels and degradation of groundwater quality. To address groundwater concerns, the CVWD focuses its efforts on obtaining imported Colorado River water. The Coachella Branch of the All-American Canal was completed with the first deliveries of imported Colorado River water to area growers in 1949. The impact of imported water on the Coachella Valley was almost immediate. By the early 1960s, water levels in the Lower Valley had returned to their historical highs.

Although groundwater levels in the Lower Valley had stabilized, water levels in the Upper Valley continued to decline. In 1963, the CVWD and DWA entered into contracts with the State of California for entitlements to SWP water. To avoid the estimated cost of constructing an aqueduct to bring SWP water directly to the Coachella Valley, the CVWD and the DWA entered into an agreement with the MWD to exchange Colorado River water for SWP water. Starting in 1973, the CVWD and DWA began exchanging their combined annual SWP entitlement of 61,200 acre-feet with MWD to recharge Upper Valley groundwater supplies at the Whitewater Spreading Facility, where recharge was known to be effective. As of 1999, more than 1.7 million acre-feet of Colorado River water, received in exchange for SWP, had been percolated into the Coachella Valley aquifer. Copies of the CVWD's SWP entitlement with the State and the Exchange Agreement with MWD are available for review at the CVWD administrative offices.

In 1984, CVWD and DWA entered into an advanced delivery agreement with MWD to percolate additional Colorado River supplies in the Upper Basin during periods of surplus water availability (i.e., "wet" years) in the Colorado River Basin. MWD has stored a substantial amount of water in the groundwater basin as a result of these pre-deliveries. This stored water is key to a reliable long-term water supply in the Coachella Valley. MWD will use the banked supplies during periods of future water shortage in Southern California. The recharge program has helped to balance the inflow and outflow of groundwater from the Upper Coachella Basin. A copy of the CVWD's Advanced Delivery Agreement 13
Polo Estates Project Water Supply Assessment

with MWD is available for review at the CVWD administrative offices. A discussion of future SWP water supplies is given below.

In 1996, CVWD and DWA recognized the need for additional imported water in order to eliminate groundwater overdraft. Since that time, the two districts purchased additional SWP water for recharge in the Upper Valley, but these additional supplies are not expected to be available in the future and cannot be relied upon to provide a reliable long-term source of water to the Coachella Valley.

Water levels in the Lower Valley remained relatively stable until the 1980s when they once again began to decline. Groundwater demand had once again exceeded supply, resulting in groundwater level decreases of 60 feet or more in some parts of the Lower Valley. Because groundwater recharge in the Lower Valley is complicated by the existence of relatively impervious clay layers in the Valley floor, CVWD began looking for sites sufficiently far away from the main clay layer to allow groundwater recharge. In 1995, CVWD began operating the Dike No. 4 pilot recharge facility (located on the west side of the Lower Valley), which has successfully demonstrated that Lower Valley groundwater recharge is possible. The facility was expanded in 1998 in order to deteimine the ultimate recharge capacity of a facility at this location. Assuming favorable results, it may be possible to recharge as much as 30,000 to 60,000 acre-feet per year at this location. The CVWMP contemplates the implementation of this recharge program as well as the in-lieu replacement program under which incentives will be provided to encourage present groundwater pumpers to use canal water in place of groundwater.

2.1.2 Surface Water

Surface water supplies in the Upper Valley come from several local rivers and streams, including the Whitewater River, Snow Creek, Falls Creek, and Chino Creek. Table 2.1-2 shows historical surface water use in 1936 and 1999. In 1999, surface water supplied approximately three percent of the water supply to the Upper Valley to meet municipal demand. Because surface water supply is affected by variations in annual precipitation, the annual supply is highly variable. Since 1936, the estimated historical surface water supply has ranged from roughly 4,000 to 9,000 acre-feet per year.

2.1.3 Coachella Canal Water (Colorado River Water)

The Coachella Canal is a branch of the All-American Canal that brings the Colorado River water into the Imperial and Coachella Valleys. The service area for canal water delivery under the CVWD's contract with the U.S. Bureau of Reclamation is defined as Improvement District No. 1 (ID-1). CVWD has an 14
Polo Estates Project Water Supply Assessment

undefined share of the 3.85 million acre-feet allocated to the California agricultural agencies under Priority 3a. This source of water is considered reliable although subject to cutbacks. Water from the Coachella Canal provides a significant water supply source for the Lower Valley. In 1999, Coachella Canal Water accounted for over 60 percent of the water supply to the Lower Valley, but less than one percent of the water supply to the Upper Valley (see Table 2.1-2). Most of this use is for crop irrigation in the Lower Valley. A copy of the contract with the U.S. Bureau of Reclamation is available for review at the CVWD administrative offices.

In October 1999, CVWD, ID-1, and MWD reached agreement on the "key terms" that will be necessary elements in a formal Quantification Settlement Agreement (QSA) regarding a division and quantification of their respective shares of Colorado River water. The detailed QSA document is being prepared for review and, pending completion of all required environmental reviews, formal approval by the three agencies' Boards. The intent of this agreement is to quantify the rights of each agency and allow the transfer of water between willing buyers and sellers. Details of the QSA are discussed under projected supply below.

2.1.4 Recycled Water / Fish Farm Effluent

Wastewater that has been highly treated and disinfected can be reused for landscape irrigation and other purposes. It is not suitable for use as potable water. Recycled municipal wastewater has historically been used for irrigation of golf courses and other municipal landscaping in the Upper Valley area. Table 2.1-2 shows that 8,100 acre-feet of reclaimed wastewater were used in the Upper Valley in 1999. Recycled water was not used prior to 1965. In the late 1980s the use of recycled water increased dramatically. CVWD owns and operates a total of seven wastewater treatment plants of which three generate reclaimed water for use for golf courses, large landscaped areas and groundwater recharge. In 1999, 1,500 acre-feet of fish farm effluent were reclaimed in the Lower Valley for use in agricultural irrigation, duck clubs, and fish farms. Recycled water will not be available to the Polo Estates Project or other projects in the vicinity in the foreseeable future. However, in the event that recycled water becomes available, major water consumers such as golf courses may be required to use it for irrigation purposes, thereby reducing pressure on the groundwater aquifer.

2.1.5 State Water Project Exchange Water

15

Polo Estates Project Water Supply Assessment

As described in Section 2.1.1, CVWD and DWA obtain imported water supplies from the SWP, which is managed by DWR. The imported water is used to recharge groundwater supplies in the Coachella Valley. The SWP includes 660 miles of aqueduct and conveyance facilities, from Lake Oroville in the north to Lake Perris in the south. The SWP is contracted to deliver 4.1 million acre-feet per year to 29 contracting agencies. CVWD and DWA are two of these agencies holding long-term water supply contracts for SWP water. CVWD's entitlement to SWP water is 23,100 acre-feet per year, while DWA's is 38,100 acre-feet per year. The combined entitlement for CVWD and DWA is 61,200 acre-feet per year. A copy of CVWD's SWP entitlement is available for review at the CVWD administrative offices.

CVWD and DWA do not directly receive SWP water. Their SWP water is delivered to MWD pursuant to the aforementioned exchange agreement with MWD. MWD in turn delivers an equal amount of Colorado River water to CVWD and DWA at the Whitewater River. (See discussion in Section 2.1.1).

At this time the SWP water is used for direct recharge of the Upper Valley aquifer and is not directly available to the Polo Estates Project. However, the SWP water benefits the Polo Estates Project by recharging the Upper Valley aquifer, which in turn recharges the Lower Valley aquifer on a limited basis.

2.2 Projected Water Supplies

CVWD relies on groundwater for its domestic water purposes and on its Colorado River entitlement for agricultural purposes. Surface water and recycled water from wastewater treatment plants and fish farms are additional supply sources used to meet water demands in the Coachella Valley. SWP water is used to replenish the groundwater supplies. Currently, there is sufficient groundwater storage to buffer the CVWD from water shortages.

During a typical drought, such as in the late 1980s and early 1990s, the CVWD releases its SWP entitlement for use on the Coastal Plain. This release was done in accordance with groundwater banking arrangements made with the MWD and the DWR. The stored water is reclaimed by DWA and CVWD, while MWD receives DWA's and CVWD's SWP supply.

CVWD has estimated that it has an adequate water supply through 2035, well beyond the 20-year planning period required for a WSA. The proportion of water from each of the current water supply sources will chcmg,cignifir'nntly

by 2035 relative to 1999 conditions (see Section 2.1, Existing Water

Supplies). In 2035, roughly 22 percent of the demand will be supplied by groundwater, 53 percent with 16
Polo Estates Project Water Supply Assessment

Canal Water, 6 percent by recycled water (including municipal wastewater, fish farm effluent, and irrigation drainage), 17 percent by SWP water, and 1 percent by surface water. These changes reflect CVWD's efforts to reduce groundwater use and overdraft by augmenting other existing water supply sources and reducing demands of users. The dependency on groundwater will be reduced from 56 percent of the water supply in 1999 to 22 percent in 2035. District sources that will be augmented include the Colorado River water, SWP water, Whitewater River and recycled water. Table 2.2-1 compares existing water supplies (1999) with projected water supplies in 2015 and 2035.

2.2.1 Groundwater
Groundwater has historically provided most of the water required for golf courses in the Upper and Lower Valleys. Consistent with the CVWMP, golf courses in the 1D-1 service area will rely more heavily on Canal Water and recycled water in the future. All new golf courses within the 1D-1 service area are required to use recycled water as their primary source. Agricultural uses will also shift to use of Canal Water. The groundwater basin contains over 30 million acre-feet in storage in the first 1,000 feet and is a highly reliable source of water. Groundwater will primarily be used for domestic uses in the future. As discussed above in Section 2.1.1 and below in Sections 2.2.3 and 3.1, some elements of the CVWMP call for recharge and in-lieu usage programs in the Lower Valley to help offset the overdraft.

17

Polo Estates Project Water Supply Assessment

Table 12-1 Summary of Projected Water Supplies (acre-feet per year) Source Canal Water' Crop Irrigation Golf Courses Duck Clubs Fish Farms Recharge Domestic Groundwaterb Surface Water SWP Recharge Irrigation Recycled Water Municipal Fish Farm Agricultural Drainage Total Supply: 1999 266,400 7,500 600 1,600 3,000 200 282,500 6,900 90,600 0 8,100 1,500 0 668,900 2015 268,900 34,000 600 1,500 45,800 200 201,400 5,900 81,300 39,700 31,600 4,900 8,000 723,800 2035 292,100 35,300 600 1,500 80,000 31,500 183,200 5,900 103,000 37,000 38,100 4,900 11,000 824,100

a Includes 35,000 acre-feet per year of SWP entitlement water delivered through the Coachella Canal. b Groundwater supply is total groundwater pumpage less artificial recharge.

SOURCE: CVWD, Coachella Valley Water Management Plan, November 2000, p. 5-15.

2.2.2 Surface Water The local surface water source depends on climatic conditions, but represents less than one percent of the supply. Historical data since 1936 show that the minimum production of 4,000 acre-feet per year. The expected yield is 5,900 acre-feet per year, as shown in Table 2.2-1. 2.2.3 Coachella Canal Water (Colorado River Water) As described earlier, the CVWD, ID-1, and MWD reached agreement on the "key terms" that will be necessary elements in a formal QSA regarding a division and quantification of their respective shares of Colorado River water. Under the Agreement, CVWD' s base entitlement under its share of the Priority 3a allotment is capped at 330,000 acre-feet per year. When all water transfers have been completed, CVWD will have a total diversion of 456,000 acre-feet per year at imperial Dam as shown in Table 2.2-2. After deducting conveyance losses, about 441,000 acre-feet per year will be available for use in the Valley by Polo Estates Project 18
Water Supply Assessment

2033 and remaining at that level through 2035. Of this amount, about 83,000 acre-feet per year will replace, groundwater pumping (source substitution). The remaining 80,000 acre-feet per year will be used for groundwater recharge. The QSA provides the mechanism for obtaining the additional Colorado River supply needed to implement the CVWMP. The term of the QSA is 45 years. A copy of the draft Quantification Settlement Agreement is available for review at the CVWD administrative offices.

Although the CVWMP has been designed to coincide with the terms of the QSA, CVWD intends to proceed with the Plan regardless of the outcome of quantification. If the Settlement Agreement is not executed, CVWD will seek other sources of water to eliminate overdraft and to meet the needs of the Valley. More specifically, CVWD is currently seeking additional long-term entitlements from other State Water Project contractors or the permanent transfer of water rights from other water right holders and will vigorously pursue water conservation and source substitution programs. Since CVWD would be constrained by the existing Colorado River allocations, its use of Colorado River water would be within the 3.85 million acre-feet per year allocation to the first three priorities. CVWD will attempt to obtain some or all of the water required through transfer of conserved water from IID.

2.2.4 Recycled Water

Table 2.2-1 summarizes the current and projected recycled water supplies through 2035. Recycled water is also used to recharge groundwater.

Table 2.2-2 CVWD Deliveries Under the Quantification Settlement Agreement Component Base Allotment 1988 MWD/ID-1 Approval Agreement Coachella Canal Lining (to MWD) To Miscellaneous/India PPRs ID-1/CVWD First Transfer ID-1/CVWD Second Transfer MWD SWP Transfer Total Diversion at Imperial Dam Less Conveyance Losses Total Deliveries to CVWD Acre-feet per year 330,300 20,000 -26,000 -3,000 50,000 50,000 35,000 456,000 -15,000 441,000

SOURCE: CVWD, Coachella Valley water Management Plan, November 2000, p. 7-9.

19

Polo Estates Project Water Supply Assessment

2.2.5 State Water Project (SWP) Exchange Water

Although not a direct source of supply to meet demand, SWP exchange water is accounted for in current and projected supplies of groundwater (in Tables 2.1-2 and 2.2-1) and is an important groundwater recharge supply source for the groundwater basin.

Reliability studies performed by DWR on CVWD's and DWA's combined entitlement indicate that it can provide and average supply of about 50,000 acre-ft/yr. In 1996, CVWD and DWA recognized the need for additional imported water in order to eliminate groundwater overdraft. Since then, the districts have purchased additional Pool A, Pool B and interruptible water from the SWP resulting in average purchases of 142,000 acre-ft/yr. These additional supplies are not expected to be available in the future and cannot be relied upon to provide a reliable long-term source of water to the Coachella Valley.

CVWD and DWA are currently negotiating the transfer of 100,000 acre-ft/yr of SWP entitlement from MWD. As proposed, MWD would permanently transfer 100,000 acre-ft/yr of its SWP entitlements to DWA and CVWD. In dry years when SWP or Colorado River Supplies are reduced, MWD will have the ability to buy back some or all of the transferred water. It is envisioned that within any given period, CVWD and DWA would take the water on average one third of the time resulting in a long term average of an additional 30,000 to 35,000 acre-ft/yr for the Valley. The water obtained from these proposed transfers would be exchanged with MWD for Colorado River water delivered either to the Whitewater River turnouts or to the All-American Canal at Imperial Dam. Total projected SWP exchange water supplies are summarized in Table 2.2-1.

2.3 CVWD Conservation Efforts (Demand Management Measures)

The CVWD recognizes the importance of conserving water in order to reduce pressure on the groundwater supply. For example, water efficient methods such as drip irrigation have changed the face of farming in the Coachella Valley. Conservation measures can be applied to all water uses; however, in the Coachella Valley, the primary focus of water conservation is on municipal, agricultural irrigation, golf course irrigation and fish farm uses. As part of its planning efforts, the CVWD adopted a Demand Management Program. CVWD has implemented a number of the following Demand Management Measures (DMM) listed below (UWMP, pp. 28-32).

20

Polo Estates Project Water Supply Assessment

DMM 1 Water Survey Programs for Single-Family Residential and Multi-Family Residential Customers DMM 2 Residential Plumbing Retrofit DMM 3 System Water Audits, Leak Detection and Repair DMM 4 Metering with Commodity Rates for All New Connections and Retrofit of Existing Connections DMM 5 Large Landscape Conservation Programs and Incentives DMM 6 High Efficiency Washing Machine Rebate Programs DMM 7 Public Information Programs DMM 8 School Education Programs DMM 9 Conservation Programs for Commercial, Industrial, and Institutional Accounts DMM 10 Wholesale Agency Programs DMM 11 Conservation Pricing DMM 12 Water Conservation Coordinator DMM 13 Water Waste Prohibition DMM 14 Ultra-Low Flush Toilet Replacement CVWD' s water conservation goals include reducing urban water demand by 10 percent, agricultural waste demands by 7 percent, and golf course demands by 5 percent. Implementation of the above measures enables achievement of these goals.

The CVWD has also implemented a number of infrastructure improvements (canal improvements, distribution system and pipeline improvements, reservoir construction to store Colorado River water) that eliminate seepage and evaporation losses.

The City and the Authority can participate in conservation efforts by adopting a landscape ordinance similar to the Model Landscape Ordinance and by participating in other conservation programs. These conservation efforts will reduce the demand on the aquifer.

21

Polo Estates Project Water Supply Assessment

SECTION 3.0 PROJECTED WATER DEMAND ANALYSIS

3.1 Projected Water Demands As noted earlier, Water Code Section109l 0(c)(2) provides that if the projected water demand associated with the proposed project was accounted for in the most recently adopted urban water management plan, the public water system may incorporate the requested information from the urban water management plan in preparing the elements of the WSA. Generally, demands for water in the broader Coachella Valley are divided between urban uses (municipal and domestic, industrial, and golf courses) and agricultural uses (crop irrigation, fish fanning, greenhouses, and duck clubs). The economy in the Coachella Valley is largely driven by tourism and agriculture. Municipal and domestic demands are expected to increase at a faster rate than agricultural demands primarily due to population growth. Coachella Valley's population within the study area is projected to increase from 285,000 in 2000 to 414,000 in 2020, and then to 529,000 in 2035, a growth of 31 percent and 46 percent, respectively. Growth will be more rapid in the Lower Valley, where population is projected to nearly double by 2035.

The Authority will provide domestic water service for the Polo Estates Project from groundwater that will be pumped from new on-site or nearby pumping wells. Build-out of the project will involve the development of an estimated 214 acres of residential uses and 20 acres of commercial/mixed uses. CVWD has developed consumption estimates by development type, which are used below to calculate annual consumption. Based on these consumption factors, the project will probably demand approximately 1.25 million gallons per day (mgd) or about 1,399 acre feet per year as shown on Table 3.1-1. This water demand will be partially offset by the elimination of those uses at the site (some domestic and some irrigation) currently supplied by the Authority or CVWD.

Table 3.1-1

Estimated Polo Estates Project Water Service Demands

Demand Factor Demand Demand (mgd) (aflyr) Units Quantity' (af/ac/yr)h 1.16 1,303.26 214 6.09 Acres 0.09 96.20 20 4.81 Total: 1,399.46 1.25

Land Use
Residential Commercial / Mixed Use

Note: gpd = gallons per acre per day; mgd = million gallons per day; ac = acre; of = acre feet a Based upon EIR project description and associated Addendum. b Based on CVWD water demand generation factors:

22

Polo Estates Project Water Supply Assessment

To receive water service, the applicant would be required to pay several fees to the Authority, including (1) water meter charges and (2) basic rates and charges. The City of Indio also would require the applicant to pay Capital Impact Fees, payable when building permits are pulled, of $2,200 per residential unit. The applicant would not be required to pay Capital Impact Fees for the commercial site.

CVWD is currently developing recharge sites to recharge the lower aquifer and will benefit the Polo Estates Project as well as other projects throughout the City of Indio. In order to pay for the costs to import water and recharge the aquifer, CVWD will develop a Replenishment Assessment Charge (RAC) that will be paid by all major well users within the area of benefit, including CVWD, the Authority, farmers, etc.. CVWD will review and adjust fees and charges periodically to account for changing imported water costs. It is anticipated that the Authority will pass through the RACs to the users in the Polo Estates Project. In this way, the Polo Estates Project will help for the cost of importing equal water to replenish the aquifer withdrawals.

As noted earlier, Water Code Section10910(e)(2) provides that if the projected water demand associated with the proposed project was accounted for in the most recently adopted urban water management plan, the public water system may incorporate the requested information from the urban water management plan in preparing the elements of the WSA.

The above-described water demands for the Polo Estates Project have been taken into account in CVWD water demand projections. The CVWMP water demand projections take into account land use plans prepared by the City of Indio and other Coachella Valley jurisdictions combined with an extrapolation method that also takes into account historical housing and permitting trends. The land uses and intensity of uses proposed within the Polo Estates Project are consistent with the City of Indio General Plan Land Use designations for which the CVWMP and District water demand projections rely (see Section 1.0). For these reasons, the Polo Estates Project land uses and associated population were accounted for in the CVWD' s water demand forecasting.

Projected water demands included in this WSA for the Coachella Valley are based on data provided in the CVWMP. The data provided in the CVWMP included baseline 1999 data and future data for 2015 and 2035. For the purposes of this WSA, this data was extrapolated (assuming a linear progression) to reflect current 2002 and future water demands over a 20-year period in 5-year increments, as required under SB 610. Current water demands and future projections for the whole of the Coachella Valley are shown 23
Polo Estates Project Water Supply Assessment

in Table 3.1-2 for urban and agricultural uses. Between 1999 and 2035, the total demand for water is projected to increase by about 23 percent. The domestic water demand has grown about 40 percent over the last 10 years. Domestic water demands (municipal and industrial, and golf courses) are expected to continue to grow by about 27 percent over the next 20 years (from 2002 to 2022) with implementation of the CVWMP and its measures to reduce water consumption.

Table 3.1-2 Summary of Projected Normal/Average Year Demand for the Coachella Valley By Land Use Category (acre-feet per year)a

Water Use Agriculture Municipal and Industrial Golf Courses Fish Farms and Duck Clubs

1999 333,000 204,000 106,200 25,400

2002 329,756 211,913 110,944 26,338

2007 324.350 225,100 118,850 27,900

20012 318,944 238,288 126,756 29,463

2015 315,700 246,200 131,500 30,400

2017 316,400 255,530 131,500 30,400

2022 318,150 278,855 131,500 30,400

2035 322,700 339,500 131,500 30,400

824,100 758,905 733,830 723,800 713,450 696,200 668,900 678,950 Total Demand: a Demand projections for 1999, 2015 and 2035 contained in the CVWMP serve as the basis for extrapolating water demand data in interim years. SOURCE: CVWD, Coachella Valley Waster Management Plan, November 2000, p. 5-15.

From about 1961 to 1999, the demand for agricultural irrigation has slightly decreased due to the farmers shifting to drip irrigation while the demand for golf, landscaping, fish farms and duck ponds has increased. In the Lower Valley agriculture accounts for about 95 percent of the current demand, compared to the Upper Valley where agricultural has been supplanted by urban development. Over the next 20 years, agricultural water demands are expected to continue to decrease from current conditions.

3.2 Normal and Dry Year Demand and Supply As part of its UWMP, the CVWD is required to provide an assessment Of the reliability of its water service to its customers during normal, dry and multiple dry water years. This water supply and demand assessment compares the total water supply sources available with the total projected water use through 2035 for a normal year, a single dry water year, and multiple dry water years.

As discussed previously, the supply of groundwater is sufficient to meet all demands beyond the year 2035. The purpose of the CVWD's planning efforts embodied in the CVWMP is to reduce pressure on and replenish the groundwater supplies so that it remains a long-term reliable water supply. There have never been deficiencies with this source and none are anticipated in the future. Typically, Canal water is 24
Polo Estates Project Water Supply Assessment

very reliable, but it is subject to cutbacks as mandated by the Federal Government. Deficiencies with recycled water are seasonal. Surface water supplies have varied between 4,000 to 9,000 acre-feet per year. It is anticipated that the worst-case scenario is a reduction from 6,500 acre-feet to 4,000 acre-feet of surface water over a three-year period. Also, CVWD permits the SWP water to go to MWD during drought periods. However, this water is used to recharge the groundwater basin and is not now used as a direct supply source. In the worst-case scenario, it is anticipated that this replenishment water is reduced to 0 acre-feet per year for three years and Canal water is reduced. The supply of groundwater is sufficient to offset the deficiencies of these other water supply sources, even during a three-year drought. This source of water together with reliable Canal water represent 97.5 percent of the historical water supply and are considered reliable even during drought conditions. However, if necessary, the aquifer alone could supply 100 percent of the Coachella Valley's demands for a three-year period.

Table 3.2-1 compares water supply and demand projections from Tables 2.2-1 and 3.1-1, respectively. The supply totals do not reflect the full potential capabilities of the CVWD' s identified water sources. As shown in Table 3.2-1, water supplies are sufficient to meet projected Valley-wide demands through 2035. Water supply would be sufficient to meet demands in all interim years.

Table 3.2-2 shows that water supply and demand under the three scenarios as remaining constant. This is possible due to the sufficient supply of groundwater and Canal Water in the Coachella Valley and the CVWD's ability to store a substantial amount of water in the groundwater basin during wet years. The stored water is key to a reliable long-term water supply and necessary to provide sufficient water supply during single dry, and multiple dry years.

Table 3.2-1 Projected Supply and Demand Comparison for Normal/Average Year (acre-feet per year) 1999 668,900 668,900 0 2015 723,800 723,800 0 2035 824,100 824,100 0

Supply Totals Demand Totals Difference

25

Polo Estates Project Water Suppltj Assessment

Table 3.2-2 Single Dry and Multi& Dry Water Years (acre-feet per year) Mnitiple Dry Years WaterSupply.Sonrces Supply Totals Percent Shortage Demand Totals Difference 2002 678,950 0% 678,950 0 Single Dry Water Year 678,950 0% 678,950 0 Year 1 . 678,950 0% 678,950 0 Veal 2. . 678,950 0% 678,950 0 Year .3. 678,950 0% 678,950 0

26

Polo Estates Project Water Supply Assessment

SECTION 4.0 CONCLUSIONS

The type and intensity of commercial development proposed by the Polo Estates Project are consistent with the City of Indio General Plan and, therefore, are included in water demand projections contained in CVWD planning documents.

As demonstrated in this WSA, existing and planned water sources will be sufficient to meet projected Valley-wide demands in a normal year, a single dry water year, and multiple dry water years through 2035. Again, the water demands of the Polo Estates Project were accounted for in CVWD's Valley-wide water demand projections; For these reasons, the CVWD considers its water supplies to be adequate to meet the project demands.

27

Polo Estates Project Water Supply Assessment

Written Verification of Water Supply

(Government Code Section 66473.7 and Water Code Section 10910)

Public Water System: Subdivision/Applicant:

Indio Water Authority Polo Estates, LLC

Project Information: Project Title: Polo Estates Type of Project: Combination of 214.4 residential acres and 20 commercial acres with up to new 1,250 residential units and 261,000 square feet of new commercial space (gross leasable area). Number of Existing Service Connections: 0 (not presently developed) Water Supply Assessment: On July 21, 2003, the Indio Water Authority ("IWA") Commissioners adopted the Indio Urban Water Management Plan. Thereafter, on September 15, 2003 the Commissioners adopted the Water Supply Assessment for this project. A sufficient water supply is available for the project. The total water supplies available to the project during normal, single-thy, and multipledry years with a 20-year projection will meet the projected water demand of the project in addition to the demand of existing and other planned future uses, including, but not limited to, agricultural and manufacturing uses. The water supply includes groundwater but the owner does not have the right to access such groundwater to serve the subdivision except as set out in the Water Supply Assessment and Urban Water Management Plan. Evidence for Water Supply Assessment The foregoing determination is based on the following Water Supply Assessment Information and supporting information in the records of the Indio Water Authority and the City of Indio. The Water Supply Assessment for the Proposed Polo Estates Project dated May 2003, and prepared pursuant to Water Code Section 10910 et seq. documents that the IWA has an amply water supply for the next 20 years, even through reasonably foreseeable extended periods of drought, as a result of existing entitlements, rights and contracts for water supplies to the Water Authority itself and those held in conjunction with the

Coachella Valley Water District. Such water supplies presently are available to serve the project. The Water Authority and the City currently have sufficient facilities to deliver the available water supply. The project requires only the extension of existing water lines from Jackson Street and Odlum Drive, south to and along the perimeter of the proposed subdivision, consistent with the City's adopted Water Master Plan. (Section 66473.7 (c)).

Dated: Amir Modaressi, Interim Public Works Director/City Engineer