SOUTH FEATHER WATER & POWER AGENCY

AGENDA Regular Meeting of the Board of Directors

South Feather Water & Power Agency Board Room, 2310 Oro-Quincy Highway, Oroville, California

Tuesday; June 22, 2010; 2:00 P.M.

A. Pledge of Allegiance

B. Roll Call

C. Approval of Minutes – Regular Meeting on May 25, 2010 (Tab 1)

D. Approval of Warrants (Tab 2)

E. Public Participation Individuals will be given an opportunity to address the Board regarding matters within the Agency’s jurisdiction that are not scheduled on the agenda, although the Board cannot take action on any matter not on the agenda. Comments will be limited to 5 minutes per speaker. An opportunity for comments on agenda items will be provided at the time they are discussed by the Board. Comments will be limited to 5 minutes per speaker per agenda item.

F. Staff Reports (Tab 3)

G. Directors’ Reports Directors may make brief announcements or reports for the purpose of providing information to the public or staff, or to schedule a matter for a future meeting. The Board cannot take action on any matter not on the agenda and will refrain from entering into discussion that would constitute action, direction or policy, until such time as the matter is placed on the agenda of a properly publicized and convened Board meeting.

H. Business – Supplemental Appropriation/Budget Modification – Phone System (Tab 4) Action to approve an amendment to the 2010 budget, increasing the capital budget by $45,000 for a total $80,000 appropriation to purchase a phone system that will meet the terms of the 2010 PG&E Power Purchase Agreement. Amendment of Policy #580 – Environmental, Health and Safety Compliance Program (Tab 5) Action to amend the Environmental, Health and Safety Compliance Program policy, and others, to exclude their application to contract employees. Closed Session. Conference with Legal Counsel – Anticipated Litigation. (Tab 6) Government Code §54956.9. One potential case.

I. Adjournment

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MINUTES of the REGULAR MEETING of the BOARD of DIRECTORS of SOUTH FEATHER WATER & POWER AGENCY

Tuesday, May 25, 2010, 2:00 P.M., Agency Board Room, 2310 Oro-Quincy Hwy. Oroville, California

DIRECTORS PRESENT: Lou Cecchi, James Edwards, Dee Hunter, and Dennis Moreland. DIRECTORS ABSENT: Lou Lodigiani. STAFF PRESENT: Steve Wong, Finance Division Manager; Kathy Zancanella, Power Division Manager; Matt Colwell, Water Division Manager; Jeffrey Meith, Legal Counsel; Michael Glaze, General Manager. OTHERS PRESENT: Hank Bailey. CALL TO ORDER President Cecchi called the meeting to order at 2:00 p.m. and led the Pledge of Allegiance. APPROVAL OF MINUTES M/S/C (Moreland/Hunter) approving the Minutes of the regular monthly meeting of April

27, 2010. APPROVAL OF WARRANTS M/S/C (Edwards/Hunter) approving the total Water Division expenditures for the month

of April 2010 in the amount of $782,351.94 – Warrants #25301 through #25324, #25378 through #25416, and #25441 through #25485; and, the total Power Division expenditures for the month of April 2010 in the amount of $734,097.53 – Warrants #66285 through #66300, #66334 through #66359, and #66378 through #66431.

PUBLIC PARTICIPATION – Hank Bailey asked why there was no water in the Lower Forbestown Ditch yet. Matt Colwell told him that it was because there was no demand for the water given the ongoing wet-weather patterns. POWER DIVISION MANAGER’S REPORT The Board reviewed a written report from Kathy Zancanella, Power Division Manager, including storage, generation and precipitation statistics through May 18. She reported that the weekly storm events throughout April and May have brought rainfall totals close to the 85-year average. The DWR Bulletin 120 now indicates that the April-July runoff forecast is 105% of average. Operations The spring rains caused Sly Creek Reservoir to start spilling May 1, resulting in spill downstream at Lost Creek, Forbestown and Ponderosa dams. Closure of the spill gates at Sly Creek and Ponderosa and installation of the flashboards at Lost Creek was delayed until the peak of the runoff passes. The Sly Creek spill gate was closed on May 18 and the flashboards at Lost Creek will be installed on May 21. Little Grass Valley has been filling steadily and will be held full this summer to accommodate the work at Sly Creek Dam. On May 18, the release from Little Grass Valley was increased to 100 cfs. The spill conditions allowed the Agency to meet its obligation to provide a “flushing flow” at Lost Creek Dam for the second year in a row. The FERC license specifies that a flow of between 390 and 740 cfs be released for 24 hours at least every four years. Maintenance Projects Forbestown Dam Safety Ladder Electrical machinist Jerry Littleton fabricated a ladder and steps to more safely access the toe of Forbestown Diversion Dam, and the crew helped him install the access system during the week

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of May 10. This eliminates the risks of slipping on loose rock while trying to walk down to the toe of the dam. Sly Creek Intake Inspection On May 11, Hibbard Inshore, an underwater inspection and construction firm, conducted an inspection of the deep water intake to Sly Creek Powerhouse with a remotely operated vehicle (ROV). Because the intake is located 200 feet below the maximum water surface of Sly Creek Reservoir, it has not been inspected since the construction of Sly Creek Powerhouse in 1982-1983. John Davis watched the ROV cameras over the shoulder of its operator and directed the inspection, which was captured on DVD. He was pleased to see that the concrete and steel of the intake and its trashrack were in good condition with very little debris accumulated on the structure. Silt has accumulated at the base of the structure and the original river outlet valves used during construction of the dam are about half covered in sediment. Sly Creek Dam Crest Modification Project The California State Division of Safety of Dams issued a permit approving the alterations to Sly Creek Dam on May 11. It is now up to FERC and the Forest Service to issue the necessary approvals to move ahead, and Forest Service staff seem to continue to come up with reasons to delay the project, all of which have to do with satisfying paperwork requirements that could and should have been made known to us months ago. Assuming things can be expedited, construction could start the week of May 24, although the following week is the more likely start date. Soper Wheeler has already harvested the timber off the borrow site. Forbestown Powerhouse Turbine Shutoff Valve Electrical machinist Henry Reeson was sent to the Adams Armaturen factory in Herne, Germany this month where he witnessed the acceptance testing of the turbine shutoff valve that has been built for Forbestown Powerhouse. Henry reported that the factory was impressive in its size, the equipment used to custom-build valves, and the efficiency with which the work was carried out. The valve passed the tests and will be shipped to the United States in the near future, probably arriving in Texas in July. An outage to install the valve will be conducted early in 2011. WATER DIVISION MANAGER’S REPORT The Board reviewed a written report from Matt Colwell, Water Division Manager. Water Distribution Operations Water Division staff have been accomplishing normal water system operation and maintenance tasks. Ongoing projects include irrigation and domestic distribution system betterments, new service installations, and leak repairs.

Crews completed the Community Line pipeline-replacement project, which eliminated approximately 500 feet of significantly decayed four-inch steel irrigation line. The line had multiple band-to-band sections that continued to leak. The ground saturation and continued operation of the Community Line created access issues. However, temporary mitigation measures for approximately two weeks facilitated project completion. A leak on Highlands Terrace, resulting from the failure of the Canyon Highlands regulator, identified a section of old galvanized water line routed through highly landscaped and developed back-yards. Six residences were served off this substandard and vulnerable two-inch line. The line is now abandoned and the water services are fed from 400 feet of 6” C900 PVC routed through Highlands Terrace right-of-way. Staff will be focusing on replacing the few remaining substandard water lines in an effort to limit our liability and maintain a high level of customer service. The new hydrography program is off to a good start. The Agency’s commitment to implementing a modern and updated water operations data collection system utilizing new sensors, satellite radios, hardware, and software, has created a steep learning curve. Eddie Paul, the new Hydrographer, has been actively pursuing the required field training wherever it can be found. Nevada Irrigation District, and specifically Jessica Erickson, NID’s hydrographer, has cooperatively provided observation and training opportunities based on their very similar program. Eddie, Brian Howerton, and Art Martinez have been instrumental in moving this program to the implementation stages.

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The Agency irrigation system current releases are: Forbestown Ditch SF 14 = 8 cfs

SFWPA = 2 cfs NYWD = 6 cfs Bangor Canal SF 25 = 8 cfs Palermo Canal = 5 cfs

Water Treatment Operations The Miners Ranch water treatment plant volumes for 2010 continue to run below average as a result of wetter-than-normal precipitation. The cumulative January-through-April volume is at 79% of the recent five-year average and is the lowest of record (since 1981). The April monthly volume is at 62% percent of the recent five-year average. Solar Plant Production The monthly MRTP power consumption was less than the solar power production by 10,200 KWH during the month of April. FINANCE DIVISION MANAGER’S REPORT The Board reviewed a written report from Mr. Wong, including a breakdown of revenue and expenses for each of the irrigation system’s components. South Feather Relicensing Consulting Services HDR Engineering, Inc. (HDR), consultant for the South Feather Project relicensing has submitted an invoice and report for the period of February 28 through March 27, 2010 in the amount of $1,992.65. The payments to HDR for their services, including this invoice, amount to $5,073,298. Property Tax The April, 2010 Property Tax payment has been received from the County by the Agency. As expected, the payment included an adjustment for the Proposition 1A Suspension, a 2009-2010 budgetary impact to South Feather in the amount of $42,851. Based on this first significant property tax payment for 2010, it appears that South Feather’s revenue from this source of income will be $35,000 to $40,000 less than was actually received in 2009 and will be less than the 2010 budget estimate by approximately the same amount as well. CALTRANS Public ROW At the Board’s March 23, 2010 meeting, it approved conveyance of Right of Way to CalTrans for improvements in the vicinity of Olive Highway (SR 162) and the Miners Ranch Reservoir for compensation in the amount of $7,200. Payment from the State was received on May 10, 2010. Springbrook Conference Mr. Wong reported on his attendance at the annual Springbrook Client Conference in Portland from May 12 through May 14. He said the Conference gave him some valuable insight on his division’s plans for upgrading the financial management software next year. Mandated Cost Reimbursement Requests for reimbursement in the total amount of $7,552.11 have been filed with the State for costs related to the preparation of agendas and other requirements of the Open Meetings Act. These mandated costs were incurred during the qualified periods beginning July 1, 2005 through June 30, 2009. LEGAL COUNSEL’S REPORT Directors reviewed an update on ACWA Legislative Committee activities prepared by Jeff Meith’s office. GENERAL MANAGER'S REPORT The Board reviewed a written report from Michael Glaze, General Manager. NYWD/Yuba City Water Transfer The draft agreement between NYWD and Yuba City for continuation of the 4,500 AF water transfer was reviewed by the Board at last month’s meeting. You directed that a letter be sent

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affirming SFWPA’s approval of the aggrement. A copy of the letter prepared by Jeff Meith for my signature is attached. Dennis Parker The April 28 edition of the Marysville Appeal-Democrat included the following article about North Yuba Water District’s erstwhile general manager, Dennis Parker.

Judge rules water district GM fired without cause Marysville Appeal-Democrat-4/28/10 By Ben van der Meer An administrative law judge in Sacramento has ruled the North Yuba Water District fired former General Manager Dennis Parker without cause in 2005, but it' s unclear if the ruling will put Parker back in his job. In an opinion to be discussed at a district board meeting today, Judge Stephen J. Smith said the district had insufficient cause to believe Parker was unfit for duty when the board voted to dismiss him in December of that year. "The district failed to prove that Mr. Parker was substantially incapacitated due to disease, defect or condition to perform the usual and customary duties of his position at that time," Smith concluded near the end of his ruling, dated April 12. In the 64-page ruling, Smith documents the history of the case, including Parker telling district officials he was dealing with anxiety and depression in 2005 and asking for an adjusted work schedule to deal with the issue. Smith notes two female members of the district board appeared to carry a grudge against Parker, who' d been general manager since 1984, and wanted to see him removed. The ruling does not mention them by name, but one appears to have been Jenny Cavaliere, who is still on the board and is running for the District 5 seat on the Yuba County Board of Supervisors. Parker was on medical leave at the time the board voted to dismiss him, but the board' s action was still hasty, according to Smith' s ruling. Nor did the district make a good-faith effort to accommodate Parker while he was dealing with mental health issues, the ruling states. The ruling suggests board counsel urged the board to fire Parker because he didn' t believe Parker would ever return to full-time status for the district, then known as the Yuba County Water District. Cavaliere said she couldn' t comment on the ruling until after today' s meeting. "There are a lot of unfounded rumors going around out there, and I' ll be happy to talk about it on Friday," she said Wednesday. Current General Manager Bill Suppa also said he couldn' t comment on the case. Parker' s attorney, Joseph E. Maloney of Auburn, said the ruling means Parker should be reinstated as the water district' s general manager, with back pay. " I don' t think Dennis can be made whole unless he' s reinstated," Maloney said, adding an appeal by the district is also possible. An attorney for the water district did not return a call Wednesday.

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The suit, filed in U.S. District Court in Sacramento, was assigned to Smith after a federal judge ruled Parker was owed an administrative hearing. A scheduling conference in the case is set for May 24. Maloney said Parker still lives in Brownsville, where the district is based, and has supported himself by gold mining since he was fired. "He loves the district and its work," Maloney said. "Dennis is prepared to work in good faith with the board in whatever form or fashion it may take."

Annual Facilities Tour Invitations for the June 29 Annual Facilities Tour were mailed on May 20. If all invitees attended, there would be 63 guests on the tour. However, typically about half to two-thirds of those invited actually attend. The BBQ lunch at Long Creek Winery is being planned and implemented by John Davis, Jola Battershell and Cheri Ruloph. DIRECTORS’ REPORTS – None. CAMPGROUND HOST EMPLOYMENT CONTRACT Mr. Glaze reported that for many years the U.S Forest Service (USFS) operated the campgrounds within both the Sly Creek and Little Grass Valley recreation areas and retained Northwest Park Management to provide on-site personnel for campground host and maintenance purposes. In 1994, OWID terminated its contract with USFS for operation of the Sly Creek Recreation Area (Sly Creek Campground and boat launching facilities, and Strawberry Campground), and contracted with Northwest Park Management for on-site host and maintenance services. The last amendment of SFWPA’s contract with Northwest Park Management expired after the 2009 recreation season. During the relicensing process, SFWPA proposed (with USFS concurrence) that it assume responsibility for the operation and maintenance of both Sly Creek and Little Grass Valley recreation areas. The reason for this was the belief that the Agency would be able to do a better job keeping the campgrounds, boat launching ramps, trails and water systems in good repair to ensure that the quality of the public’s recreation experience at Agency facilities was optimized. Once the new FERC license is issued (anticipated early in 2011), several million dollars will have to be spent by SFWPA to repair and rehabilitate the Little Grass Valley Recreation Area facilities that the Forest Service failed to properly maintain through the years. In Mr. Glaze’s opinion, taking over the maintenance of those facilities thereafter is the only way to ensure that they won’t be allowed to return to their current state of disrepair. Because Sly Creek Campground will be closed this year to accommodate the dam-crest-raise project, and because the new FERC license will not be issued until after the 2010 recreation season, Strawberry Campground is the only one for which SFWPA will be responsible this year. With only one small campground to operate, doing so with Agency staff, rather than extending Northwest Park Management’s contract another year, was the best solution. Especially since this will provide an opportunity to wade into this new obligation, rather than diving in when all of the recreation facilities will be SFWPA’s responsibility. Recreation area supervision is the responsibility of the Regulatory Compliance Manager position. Alex Brown has been working for months now to ensure that the transition from concessionaire (Northwest Park Management) to Agency staff happens smoothly. One of the first and most significant changes will be that a campground host will need to be hired. Alex, risk manager Scott Alcantara and Mr. Glaze have been working with attorney Dustin Cooper in Jeff Meith’s office to develop an employment contract for the campground host that can be used not only this year, but in subsequent years when all of the recreation area campgrounds are operational and under SFWPA’s management and as many as a dozen hosts will be needed. Directors reviewed the proposed employment contract M/S/C (Hunter/Edwards) approving the Recreation Campground Host employment

contract form..

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AMENDMENT OF ENVIRONMENTAL, HEALTH AND SAFETY COMPLIANCE PROGRAM In the previous item, the Board approved the contract employment form for the Recreation Campground Host position. That contract was written to ensure that campground hosts would be strictly at-will employees and would not be subject to the compensation, benefits, termination rights or specialized training afforded other Agency employees. Directors reviewed proposed amendments to Policy #580 that were intended to ensure that only the relevant and applicable aspects of the many health and safety programs, standards and training will be applicable to this new contract-employee position. Mr. Glaze stated that the addition of exclusionary language similar to that being proposed for Policy #580, “Environmental, Health and Safety Compliance Program,” is also needed in the following policies: Policy #535, “Employee Usage of Tools and Equipment;” Policy #560, “Sexual Harassment;” Policy #570, “Substance Abuse;” and, Policy #595, “Driver Training and Record Review.” M/S/C (Hunter/Moreland) approving the amendments to Policy #580 as reviewed, and

that the following statement be incorporated into Policies #535, #560, #570 and #595: ‘This policy shall not apply to contract employees, unless specifically directed otherwise by the General Manager.

INDEPENDENT AUDITOR’S REPORT Mr. Wong reported that the Annual Financial Report for the years ended December 31, 2009 and 2008, has been completed and copies were provided to directors for their review several days ago. The Report was independently audited by Mann, Urrutia, Nelson, CPAs & Associates (MUN). MUN states, “In our opinion, the financial statements…present fairly, in all material respects, the respective financial position of the business-type activities, of the South Feather Water & Power Agency, as of December 31, 2009 and 2008, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in conformity with accounting principles generally accepted in the United States of America.” Two additional standard documents from MUN follow the Financial Report discussing management practices and Agency communications with the auditors and MUN’s comments regarding internal control. A final document sets forth the Finance Division’s responses to MUN’s Current Year Findings and Recommendations. In prior years, the Agency’s auditors have presented the report to the Board and/or the Finance Committee. Over the years, auditing standards and MUN have changed the process and a meeting with the Finance Committee now takes place during the field work portion of the audit. M/S/C (Hunter/Edwards) accepting the Independent Auditor’s Report and Financial

Statements for the Years Ended December 31, 2009 and 2008. CONSOLIDATION WITH STATEWIDE GENERAL ELECTION As required in the past, the Agency is required to submit to the Butte County Elections Department a resolution requesting the County consolidate the Agency’s election with the Statewide General Election (November 2, 2010). This same request has been made for the general elections since 1994. M/S/C (Edwards/Hunter) adopting Resolution 10-5-1, ‘Calling for a General District

Election and Request for Consolidation. CLOSED SESSION (convened at 2:45 p.m.) Conference with Legal Counsel – Government Code §54956.9 (one potential case). OPEN SESSION (convened at 2:49 p.m.) President Cecchi announced that no action was taken by the board during the closed session.

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ADJOURNMENT President Cecchi adjourned the meeting at 2:49 p.m. Michael C. Glaze, Secretary Louis F. Cecchi, President

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Steve Wong, Finance Division Manager DATE: June 17, 2010 RE: Approval of Warrants Agenda Item for 6/22/10 Board of Directors Meeting May, 2010 Water Division expenses are summarized as follows: Warrant Numbers: 25555 to 25597 , $ 79,420.27 Voids: , Misc. Checks: 25417 to 25440 , $ 856,078.63 and 25486 25534 , Payroll Expenses: $ 210,341.29 TOTAL WATER DIVISION EXPENDITURES FOR MAY 2010: $ 1,145,840.19 May, 2010 Power Division expenses are summarized as follows: Warrant Numbers: 66479 to 66525 , $ 645,312.93_ Misc. Checks: 66360 to 66377 , $ 1,098,333.65 and 66432 to 66453 , Payroll Expenses: $ 159,379.68 TOTAL POWER DIVISION EXPENDITURES FOR MAY 2010: $ 1,903,026.26 Action to approve all expenditures:

“I move approval of the total Water Division expenditures for the month of May, 2010 in the amount of $1,145,840.19; and approval for the total Power Division expenditures in the amount of $1,903,026.26.”

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Steve Wong, Finance Division Manager DATE: June 17, 2010 RE: General Information (regarding matters not scheduled on the agenda) 6/22/10 Board of Directors Meeting South Feather Relicensing Consulting Services HDR Engineering, Inc. (HDR), consultant for the South Feather Project relicensing have submitted an invoice and report for the period of March 28 through April 24, 2010 in the amount of $3,705.98. A check was issued to HDR for these services on June 7, 2010. Total relicensing payments to HDR, including this invoice, amount to $5,077,004. ACWA Health Benefits The Agency uses the ACWA Health Benefits Authority for its dental and vision insurance coverage for employees. Because of actions that occurred almost ten years ago and the subsequent dissolution, consolidation and transfer of assets between different plans and trust funds, the Authority now has money available to disburse to its participants. The distribution of approximately $5,800 to SFWPA will be received through premium holiday credits this year (one-time reduction in annual premium). MRTP Electrical Costs Each Spring PG&E formally performs an analysis of power used by MRTP compared with power generated by the solar plant. The analysis is then used to bill the Agency for the net cost for the power used by MRTP less the solar power generated at the plant. For the past two years the net charge to the Agency has been in the amount of approximately $35,000 each year. For 2010, the cost is approximately $16,500 for the year.

Consumption Report 1 6/15/2010 3:57 PM

MINERS RANCH TREATMENT PLANT CONSUMPTION: 2000 - 2009Volume

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 6,113 6,173 6,313 6,429 6,474 6,573 6,669 6,725 6,769 6,618 6.487 6.775 6.122 7.271 7.554 7.448 8.090 8.207 8.889 7.916 113,241$ 113,477$ 133,641$ 143,027$ 145,277$ 148,137$ 153,959$ 154,692$ 159,260$ 151,996$ 2 6,120 6,176 6,339 6,420 6,471 6,587 6,679 6,734 6,769 6,614 5.431 6.936 6.628 6.796 6.691 5.292 8.699 7.481 6.365 5.962 106,726$ 115,056$ 141,679$ 140,355$ 140,867$ 135,734$ 155,627$ 152,150$ 145,022$ 141,650$ 3 6,112 6,185 6,352 6,418 6,491 6,599 6,683 6,734 6,611 6,600 5.228 6.334 6.774 4.730 6.973 7.711 7.152 7.257 5.880 5.253 105,612$ 113,010$ 139,244$ 128,788$ 143,055$ 149,585$ 148,605$ 149,953$ 141,538$ 140,719$ 4 6,123 6,195 6,351 6,431 6,504 6,601 6,692 6,730 6,617 6,615 8.803 8.342 7.575 14.813 8.602 4.902 13.375 12.141 9.000 7.957 126,323$ 123,744$ 127,524$ 186,929$ 152,140$ 134,041$ 184,144$ 178,390$ 160,660$ 153,889$ 5 6,122 6,193 6,350 6,425 6,521 6,617 6,696 6,732 6,618 6,623 13.808 16.710 8.391 20.148 9.999 12.634 14.079 22.608 18.122 9.442 152,637$ 168,473$ 149,448$ 215,567$ 161,093$ 179,334$ 187,560$ 235,151$ 210,095$ 162,323$ 6 6,138 6,185 6,362 6,430 6,523 6,629 6,729 6,739 6,614 29.002 24.116 23.040 26.978 20.752 23.382 31.806 26.294 21.423 222,846$ 203,323$ 230,840$ 250,942$ 221,634$ 239,100$ 276,121$ 254,186$ 228,845$ 7 6,146 6,212 6,372 6,447 6,523 6,622 6,704 6,723 6,613 32.707 30.445 31.117 35.443 25.326 36.390 32.093 32.619 31.394 238,548$ 232,671$ 277,024$ 292,074$ 246,343$ 300,406$ 284,092$ 286,867$ 279,461$ 8 6,148 6,222 6,403 6,451 6,536 6,653 6,711 6,744 6,616 33.005 35.448 37.053 31.434 34.428 34.406 32.652 34.451 33.753 239,424$ 251,741$ 297,688$ 273,996$ 286,438$ 295,228$ 285,480$ 296,155$ 290,613$ 9 6,152 6,251 6,396 6,463 6,536 6,652 6,715 6,742 6,618 32.518 34.240 27.494 35.193 33.775 35.822 38.006 32.202 30.758 236,950$ 247,204$ 251,588$ 291,115$ 288,492$ 302,033$ 310,005$ 285,155$ 275,714$

10 6,156 6,257 6,407 6,463 6,543 6,653 6,722 6,752 6,624 19.410 21.874 25.796 23.999 22.126 21.505 18.185 22.185 23.476 180,771$ 193,918$ 244,822$ 235,668$ 229,208$ 226,935$ 209,278$ 233,964$ 238,626$ 11 6,162 6,244 6,406 6,460 6,558 6,664 6,720 6,772 6,611 15.217 17.848 18.403 11.714 14.193 17.340 14.494 15.691 12.593 160,144$ 172,334$ 230,893$ 169,262$ 183,401$ 205,562$ 191,507$ 198,159$ 179,613$ 12 6,174 6,241 6,404 6,477 6,565 6,657 6,726 6,772 6,618 7.380 9.536 7.259 6.858 7.959 7.683 9.550 7.913 7.865 116,335$ 126,989$ 143,185$ 142,156$ 151,576$ 154,272$ 162,949$ 154,678$ 153,027$

6,139 6,211 6,371 6,443 6,704 6,626 6,704 6,742 6,642 208.996 218.603 205.651 225.378 198.380 214.517 228.180 229.048 209.518 36.530 1,999,557$ 2,061,941$ 2,367,575$ 2,469,879$ 2,349,523$ 2,470,368$ 2,549,327$ 2,579,501$ 2,462,475$ 750,577$

Customers

Averages

Revenue(x 1,000,000 cf)

Totals Totals

0.000

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

1 2 3 4 5 6 7 8 9 10 11 12

Cub

ic F

eet x

1,0

00,0

00

Month

VOLUME2001 20022003 20042005 20062007 20082009 2010

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2001 20022003 20042005 20062007 20082009 2010

Consumption Report 2 6/15/2010 3:57 PM

BANGOR TREATMENT PLANT CONSUMPTION: 2000 - 2009

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 18 19 22 22 22 24 23 23 22 23 24.6 55.0 35.7 18.9 17.0 13.9 11.8 12.7 12.6 12.7 390$ 505$ 558$ 463$ 451$ 404$ 386$ 402$ 396$ 431$ 2 18 19 22 22 22 23 23 23 22 23 28.3 49.7 32.3 16.9 23.0 10.4 18.2 10.4 8.5 9.7 410$ 501$ 538$ 450$ 489$ 384$ 427$ 387$ 370$ 412$ 3 18 19 23 22 24 23 23 23 20 23 24.7 29.0 30.7 12.3 16.6 16.0 12.9 15.5 8.9 10.0 380$ 412$ 533$ 421$ 468$ 419$ 394$ 420$ 363$ 414$ 4 18 19 23 22 23 23 23 23 20 23 45.0 29.5 25.3 25.4 21.2 9.9 35.5 17.4 12.9 14.1 472$ 415$ 489$ 505$ 483$ 380$ 503$ 432$ 388$ 441$ 5 18 19 22 22 23 23 23 23 20 23 48.4 35.8 32.4 52.0 19.9 15.0 52.2 35.1 30.1 15.8 512$ 448$ 530$ 675$ 474$ 413$ 586$ 546$ 498$ 451$ 6 18 19 21 22 23 24 23 23 22 80.1 94.2 70.9 76.2 54.3 54.6 90.6 62.7 47.5 670$ 704$ 766$ 781$ 688$ 662$ 754$ 699$ 630$ 7 18 19 21 22 24 22 23 24 23 86.1 117.3 102.3 98.4 61.3 89.3 79.9 79.0 111.9 680$ 794$ 899$ 900$ 712$ 827$ 799$ 814$ 969$ 8 18 19 21 22 24 23 23 22 23 105.1 140.5 166.1 99.4 94.5 103.7 116.7 96.4 94.2 713$ 854$ 1,086$ 895$ 858$ 878$ 948$ 855$ 905$ 9 18 21 21 22 23 23 23 22 23 119.8 109.1 80.6 109.3 99.2 95.0 105.0 99.9 91.8 740$ 785$ 818$ 962$ 867$ 868$ 913$ 876$ 893$

10 18 20 22 22 23 24 23 22 23 84.1 99.4 79.7 77.6 67.2 61.8 46.0 61.2 53.2 633$ 743$ 795$ 797$ 723$ 712$ 615$ 699$ 683$ 11 19 22 22 22 23 23 23 23 23 72.4 72.2 77.9 36.2 37.0 42.8 24.8 32.2 28.5 610$ 657$ 749$ 538$ 559$ 580$ 480$ 521$ 533$ 12 19 21 22 22 23 23 23 22 23 35.7 31.8 22.9 21.5 20.7 16.3 14.2 10.7 14.4 446$ 445$ 489$ 480$ 456$ 415$ 411$ 384$ 443$

18 20 22 22 23 23 23 23 22 754.3 863.5 756.8 644.1 531.9 528.8 607.8 533.1 514.5 62.3 6,655$ 7,261$ 8,249$ 7,866$ 7,229$ 6,941$ 7,217$ 7,034$ 7,070$ 2,150$ TotalsAverages

Customers

Totals

RevenueVolume(x 1,000 cf)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1 2 3 4 5 6 7 8 9 10 11 12

Cub

ic F

eet x

1,0

00

Month

VOLUME2001 2002 2003

2004 2005 2006

2007 2008 2009

2010

$-

$200

$400

$600

$800

$1,000

$1,200

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE 2001 2002 2003

2004 2005 2006

2007 2008 2009

2010

Consumption Report 3 6/15/2010 3:57 PM

COMMUNITY LINE WATER CONSUMPTION: 2000 - 2009

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 59 65 63 61 60 65 65 66 66 66 141.7 211.6 305.8 84.9 89.8 136.5 80.9 130.0 135.7 142.9 794$ 933$ 1,417$ 1,155$ 1,142$ 1,278$ 1,207$ 1,289$ 1,295$ 1,302$ 2 58 65 59 61 59 64 63 64 65 65 119.0 209.2 183.8 70.9 74.9 47.5 127.8 102.3 130.6 69.8 761$ 930$ 913$ 1,141$ 1,110$ 1,165$ 1,234$ 1,225$ 1,272$ 1,209$ 3 58 65 62 59 59 64 65 66 65 65 105.4 125.7 89.9 65.3 68.3 67.8 82.6 100.0 91.9 37.4 747$ 844$ 1,166$ 1,100$ 1,103$ 1,190$ 1,211$ 1,258$ 1,232$ 1,176$ 4 58 65 61 60 59 64 66 65 66 65 186.3 150.0 85.9 238.9 179.2 67.6 189.3 193.1 126.7 125.4 830$ 868$ 1,154$ 1,296$ 1,217$ 1,190$ 1,344$ 1,336$ 1,274$ 1,267$ 5 63 66 62 64 62 67 66 67 68 64 236.7 399.7 125.1 908.6 189.2 86.9 308.7 1,132.6 571.1 155.7 911$ 1,138$ 1,214$ 2,056$ 1,280$ 1,262$ 1,473$ 2,308$ 1,764$ 1,280$ 6 65 67 64 65 64 68 69 68 71 3,185.5 2,045.4 1,151.2 2,372.5 515.6 2,049.0 1,664.0 1,950.8 1,361.4 3,990$ 2,836$ 2,306$ 3,581$ 1,651$ 3,300$ 2,921$ 3,199$ 2,609$ 7 65 69 65 67 64 67 68 68 71 3,395.3 4,911.0 2,729.9 3,873.0 1,652.2 2,004.9 1,917.6 2,700.7 2,980.0 4,212$ 5,815$ 3,949$ 5,162$ 2,822$ 3,238$ 3,165$ 3,972$ 4,312$ 8 66 69 66 67 67 70 68 68 71 3,534.6 5,507.4 3,884.0 2,738.5 3,957.9 3,750.7 2,508.1 2,852.6 2,800.1 4,367$ 6,432$ 5,156$ 3,993$ 5,239$ 5,080$ 3,773$ 4,128$ 4,127$ 9 67 69 66 67 67 69 69 68 71 5,401.0 5,209.8 3,874.6 3,752.9 3,300.4 3,273.6 2,988.4 2,757.6 2,403.5 6,300$ 6,125$ 5,146$ 5,038$ 4,572$ 4,579$ 4,265$ 4,030$ 3,718$

10 69 69 67 66 68 68 69 67 70 3,729.5 4,317.6 2,996.6 3,229.3 3,283.3 1,456.6 1,403.1 2,362.4 2,473.9 4,606$ 5,206$ 4,259$ 4,479$ 4,561$ 2,690$ 2,648$ 3,606$ 3,773$ 11 68 67 64 62 68 69 69 68 68 1,448.6 1,680.5 1,531.5 625.5 923.8 1,077.1 582.2 1,003.6 553.7 2,236$ 2,468$ 2,697$ 1,729$ 2,142$ 2,317$ 1,807$ 2,224$ 1,760$ 12 66 63 62 61 66 66 68 69 67 210.8 236.1 113.2 122.1 240.7 215.3 239.5 274.6 300.8 943$ 936$ 1,202$ 1,193$ 1,403$ 1,368$ 1,423$ 1,482$ 1,482$

64 67 63 63 64 67 67 67 68 21,694.4 25,004.0 17,071.5 18,082.4 14,475.3 14,233.5 12,092.2 15,560.3 13,929.4 531.2 30,695$ 34,532$ 30,579$ 31,923$ 28,241$ 28,657$ 26,471$ 30,058$ 28,619$ 6,235$

Revenue

TotalsAverages

Customers Volume(x 1,000 cf)

Totals

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

1 2 3 4 5 6 7 8 9 10 11 12

Cub

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1,0

00

Month

VOLUME2001 20022003 20042005 20062007 20082009 2010

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE 2001 20022003 20042005 20062007 20082009 2010

Consumption Report 4 6/15/2010 3:57 PM

FORBESTOWN DITCH WATER CONSUMPTION: 2000 - 2009

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 7 5 7 10 14 11 6 7 7 7 2.4 1.7 4.3 1.7 115.5 74.2 73.7 74.6 76.5 96.9 169$ 102$ 127$ 312$ 335$ 284$ 196$ 215$ 217$ 238$ 2 5 5 8 9 12 10 6 7 7 7 2.4 1.7 3.1 0.8 99.2 34.5 66.5 66.5 67.3 67.4 168$ 102$ 278$ 293$ 290$ 222$ 196$ 214$ 214$ 215$ 3 7 5 9 9 11 10 5 8 20 7 1.9 2.1 2.7 0.4 74.8 74.3 149.4 74.4 73.9 72.9 169$ 102$ 313$ 293$ 280$ 267$ 179$ 232$ 214$ 213$ 4 9 7 9 10 10 10 7 7 7 7 4.3 14.6 2.5 26.8 72.8 71.4 123.0 101.9 88.3 72.7 244$ 151$ 295$ 338$ 268$ 266$ 267$ 245$ 231$ 215$ 5 24 27 15 37 23 26 14 13 16 10 240.6 368.8 5.5 650.7 409.5 583.1 253.4 531.3 430.5 115.2 1,040$ 1,241$ 673$ 2,292$ 222$ 1,157$ 552$ 454$ 746$ 292$ 6 45 39 38 48 36 42 30 28 34 1,291.0 1,083.5 896.5 2,164.7 1,359.0 1,873.7 896.1 1,664.7 1,597.5 2,909$ 2,503$ 2,724$ 4,210$ 2,229$ 2,862$ 1,581$ 1,532$ 2,597$ 7 47 50 50 51 47 49 36 30 36 1,350.7 1,387.3 2,898.2 1,907.3 2,157.2 2,459.6 1,583.2 1,725.4 2,038.1 3,012$ 3,162$ 5,276$ 3,907$ 3,241$ 3,667$ 1,888$ 3,393$ 3,066$ 8 48 46 47 54 53 53 37 36 35 1,530.4 2,207.7 2,829.6 2,885.7 3,009.0 2,863.3 1,810.4 2,299.0 1,590.0 3,243$ 3,299$ 5,013$ 4,597$ 4,301$ 4,205$ 2,014$ 2,178$ 2,628$ 9 46 53 48 56 54 52 37 36 35 1,226.4 1,726.4 2,705.8 2,544.3 3,150.0 2,784.4 1,772.5 2,042.9 1,878.6 2,820$ 3,700$ 4,900$ 4,780$ 4,564$ 4,116$ 2,035$ 2,131$ 2,989$

10 42 41 29 44 43 44 20 20 22 606.2 1,688.6 1,419.9 1,370.4 1,785.5 1,480.9 726.4 918.5 1,044.6 1,543$ 3,202$ 2,374$ 3,147$ 2,817$ 2,373$ 784$ 962$ 1,702$ 11 12 18 14 11 18 7 14 12 16 214.1 259.7 203.3 90.6 270.1 154.4 168.2 222.7 242.3 488$ 737$ 634$ 1,081$ 620$ 317$ 436$ 475$ 565$ 12 5 10 12 22 14 8 8 8 9 4.4 3.7 2.1 474.9 89.5 74.6 148.3 75.4 83.0 170$ 249$ 392$ 973$ 353$ 904$ 316$ 233$ 258$

42 43 38 48 43 44 29 27 30 6,474.8 8,745.8 10,973.5 12,118.3 12,592.1 12,528.4 7,771.2 9,797.4 9,210.6 425.1 15,974$ 18,548$ 23,001$ 26,221$ 19,520$ 20,641$ 10,445$ 12,264$ 15,428$ 1,172$

VolumeCustomers Revenue

Averages TotalsTotals

(x 1,000 cf)

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

1 2 3 4 5 6 7 8 9 10 11 12

Cub

ic F

eet x

1,0

00

Month

VOLUME

2001 20022003 20042005 20062007 20082009 2010

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2001 20022003 20042005 20062007 20082009 2010

Consumption Report 5 6/15/2010 3:57 PM

BANGOR DITCH WATER CONSUMPTION: 2000 - 2009

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 166 169 153 166 183 157 159 163 173 175 859.72 346.08 117.70 298.02 783.28 999.46 724.20 842.00 948.91 993.91 3,568$ 3,026$ 2,781$ 3,888$ 3,896$ 3,866$ 3,620$ 3,806$ 4,086$ 4,158$ 2 143 168 171 164 163 155 157 158 164 168 361.76 293.68 266.06 154.00 663.21 844.31 669.71 631.89 818.69 671.99 3,020$ 2,961$ 4,122$ 3,650$ 3,729$ 3,730$ 3,556$ 3,541$ 3,835$ 3,759$ 3 163 168 169 164 163 153 160 160 164 168 372.62 97.02 133.18 132.34 720.10 643.28 645.28 620.43 674.56 651.87 3,033$ 3,018$ 3,860$ 3,682$ 3,741$ 3,441$ 3,513$ 3,525$ 3,637$ 3,698$ 4 165 174 168 178 170 152 171 173 179 171 487.16 431.74 187.56 522.04 708.38 605.38 1,176.41 1,402.61 909.53 814.60 3,206$ 3,219$ 4,034$ 4,479$ 3,904$ 3,400$ 4,332$ 4,559$ 4,102$ 3,901$ 5 191 204 184 212 187 192 198 213 215 190 1,674.56 2,480.72 288.72 5,044.56 1,915.86 1,689.26 2,877.85 5,377.98 3,817.34 1,190.88 4,883$ 5,786$ 4,464$ 9,950$ 5,274$ 5,263$ 6,556$ 9,335$ 7,720$ 4,614$ 6 211 216 212 219 212 217 223 217 229 8,703.04 6,959.76 4,964.58 7,615.46 4,708.74 6,759.58 13,677.09 8,852.45 6,589.73 12,439$ 10,641$ 9,842$ 12,741$ 8,689$ 11,012$ 18,261$ 13,123$ 10,921$ 7 216 223 220 241 219 218 227 230 229 11,582.04 11,067.80 8,588.32 12,886.23 7,522.74 12,410.45 14,958.77 10,229.44 9,009.45 15,467$ 14,963$ 13,871$ 18,402$ 11,780$ 16,807$ 19,641$ 16,476$ 13,476$ 8 219 227 220 229 226 222 227 226 239 11,999.64 10,774.98 11,602.54 11,088.18 9,961.04 14,843.95 18,647.25 11,273.23 9,695.74 15,918$ 14,707$ 16,675$ 16,533$ 14,425$ 19,431$ 23,465$ 15,758$ 14,358$ 9 220 226 221 226 223 225 227 235 238 11,423.02 10,348.92 9,755.90 10,421.12 10,981.46 11,988.86 17,226.77 10,452.92 9,406.75 15,307$ 14,357$ 14,926$ 15,787$ 15,496$ 16,535$ 22,473$ 15,090$ 14,060$

10 215 219 216 216 221 218 213 223 231 7,999.32 8,768.44 9,115.18 7,235.44 7,757.52 7,617.21 8,000.91 8,021.02 8,121.09 11,707$ 13,508$ 14,196$ 12,207$ 11,990$ 11,845$ 12,099$ 12,319$ 12,572$ 11 195 199 196 182 185 196 183 204 201 3,808.04 9,929.70 4,545.10 1,943.22 4,363.88 4,658.00 3,146.31 4,399.09 3,293.95 6,995$ 13,400$ 8,930$ 5,912$ 7,743$ 8,379$ 6,562$ 8,184$ 7,041$ 12 173 178 172 176 165 174 175 180 186 537.32 718.90 548.50 1,022.73 1,286.40 1,106.82 1,342.71 978.35 1,192.89 3,261$ 3,510$ 4,298$ 2,930$ 4,314$ 4,119$ 4,500$ 4,239$ 4,563$

190 198 192 198 193 190 193 199 204 59,808.24 62,217.74 50,113.34 58,363.33 51,372.61 64,166.58 83,093.25 63,081.42 54,478.63 4,323.25 98,806$ 103,095$ 102,000$ 110,160$ 94,980$ 107,827$ 128,578$ 109,955$ 100,370$ 20,129$ Totals

Volume(x 1,000 cf)

RevenueCustomers

TotalsAverages

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

20,000.00

1 2 3 4 5 6 7 8 9 10 11 12

Cub

ic F

eet x

1,0

00

Month

VOLUME 2001 20022003 20042005 20062007 20082009 2010

$-

$5,000

$10,000

$15,000

$20,000

$25,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE 2001 2002 2003

2004 2005 2006

2007 2008 2009

2010

Consumption Report 6 6/15/2010 3:57 PM

PALERMO DITCH WATER CONSUMPTION: 2000 - 2009

Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 20101 70 78 56 75 71 71 80 80 80 79 189.36 220.22 84.60 219.66 342.90 491.02 636.15 467.73 638.54 524.34 1,380$ 1,491$ 1,067$ 1,945$ 1,548$ 1,811$ 2,124$ 1,898$ 2,100$ 1,964$ 2 70 76 73 72 68 69 79 76 78 77 187.48 230.52 148.02 208.66 519.50 426.59 586.00 466.70 474.43 518.60 1,370$ 1,435$ 1,746$ 1,881$ 1,828$ 1,728$ 2,095$ 1,860$ 1,932$ 1,960$ 3 68 76 74 72 68 70 79 76 70 70 180.76 197.06 206.80 169.64 546.35 420.94 916.98 486.41 308.81 547.86 1,296$ 1,412$ 1,825$ 1,839$ 1,824$ 1,714$ 2,043$ 1,866$ 1,539$ 1,936$ 4 73 86 76 72 68 69 89 150 79 71 354.76 417.56 275.42 444.95 549.72 422.94 973.82 4,331.96 593.43 556.76 1,600$ 1,766$ 1,976$ 2,126$ 1,838$ 1,689$ 2,636$ 7,122$ 1,991$ 1,975$ 5 157 175 86 185 88 125 159 174 163 106 5,476.48 5,682.40 323.98 6,617.18 941.42 2,695.41 4,445.04 6,901.03 5,598.44 1,612.15 7,980$ 8,465$ 2,336$ 10,754$ 2,606$ 5,056$ 7,460$ 10,203$ 8,682$ 3,584$ 6 191 205 196 199 175 188 202 205 204 8,965.98 8,406.36 8,581.26 8,260.96 6,450.06 8,099.80 9,103.04 10,264.94 8,829.84 12,111$ 11,617$ 12,902$ 12,650$ 9,832$ 11,800$ 13,087$ 14,335$ 12,817$ 7 199 204 214 198 202 200 204 219 221 9,891.16 9,241.96 8,396.05 8,020.61 8,669.57 9,433.97 9,592.59 9,783.62 10,598.90 13,104$ 11,704$ 13,069$ 12,389$ 12,637$ 13,723$ 13,612$ 14,055$ 14,945$ 8 206 215 219 206 209 263 201 207 215 9,890.66 9,912.98 11,834.39 7,764.92 10,344.43 8,680.54 9,372.64 10,238.86 10,589.77 13,227$ 13,375$ 15,693$ 13,173$ 14,545$ 12,901$ 13,326$ 14,322$ 14,832$ 9 200 212 217 196 201 190 205 219 208 9,364.84 9,801.94 9,473.72 9,199.26 9,462.04 8,377.17 9,218.87 9,706.46 9,540.67 12,663$ 13,247$ 14,330$ 13,699$ 13,495$ 12,098$ 13,235$ 13,975$ 13,634$

10 169 187 173 172 165 166 144 163 164 4,944.42 6,665.24 5,406.14 4,468.28 5,425.76 4,780.99 2,900.42 5,106.18 4,388.30 7,664$ 9,642$ 9,324$ 8,331$ 8,640$ 7,957$ 5,544$ 8,194$ 7,480$ 11 98 142 102 79 91 109 109 112 95 1,019.00 963.32 862.74 227.80 883.35 1,438.40 1,168.79 1,441.04 794.98 2,517$ 2,799$ 3,130$ 2,024$ 2,587$ 3,465$ 3,128$ 3,498$ 2,562$ 12 79 76 84 75 75 82 85 90 82 301.30 197.90 272.54 539.79 538.60 619.19 594.79 632.75 501.08 1,597$ 1,236$ 2,203$ 1,171$ 1,938$ 1,445$ 2,111$ 2,251$ 1,992$

132 144 131 133 123 134 136 148 138 50,766.20 51,937.46 45,865.66 46,141.72 44,673.70 45,886.96 49,509.13 59,827.69 52,857.20 3,759.71 76,508$ 78,188$ 79,600$ 81,984$ 73,318$ 75,386$ 80,401$ 93,579$ 84,506$ 11,420$ TotalsAverages

Volume(x 1,000 cf)

Totals

Customers Revenue

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

1 2 3 4 5 6 7 8 9 10 11 12

Cub

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1,0

00

Month

VOLUME 2001 20022003 20042005 20062007 20082009 2010

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

1 2 3 4 5 6 7 8 9 10 11 12Month

REVENUE2001 20022003 20042005 20062007 20082009 2010

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Arthur V. Martinez, Manager of Information Systems DATE: June 16, 2010 RE: General Information (regarding matters not scheduled on the agenda) 06/22/10 Board of Directors Meeting Telephone Systems Subject to Board approval of the supplemental budget appropriation item on this agenda, installation of the physical phone system will begin as soon after the approval as possible. The estimated setup timeline for the hardware is approximately one week. AT&T’s current estimate puts completion of installation of the new phone lines at July 7, 2010. Arrangements have been made to accommodate the phone recording needs (the agreement with PG&E requires this capability as of July 1, 2010) until the new phone lines are installed. Butte County Tax Rolls – Delinquency Abatement The IT Department has begun identifying the delinquent accounts that will be sent to the Butte County Tax Rolls. As of June 16, letters have been sent to all parties involved with the identified properties. The list includes accounts with balances that are over 90 days past due. The process identified 39 properties that meet these criteria which totals $7,643.49 in delinquent payments. The letters specify a July 15 deadline for payment of the delinquent balance or the balances will be submitted to the Butte County Tax Roll. The Board will be presented with the final list at the July 27 board meeting and asked to approve by resolution the assignment of the delinquencies to the tax roll. 2010 Facilities Tour All departments are preparing for this year’s tour. Approximately 40 guests are expected to attend. Because of the construction at Sly Creek, the luncheon will not be able to be held at the Sly Creek Campground as has been done in the past. Fortunately, Director Cecchi has graciously offered the reception area at his winery for the lunch event. If any Directors will not be able to attend, please inform me as soon as possible.

5 SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Kathy Zancanella, Power Division Manager DATE: June 14, 2010 RE: General Information (regarding matters not scheduled on agenda) 6/22/10 Board of Directors Meeting Operations Attached is the new Power Division Summary Report, previously known as the Storage and Generation Report. This document has not been through a format or content change since 1981. The new report provides elevation information for Little Grass Valley and Sky Creek reservoirs, streamflow release information and powerhouse-generation data in a year-to-date format to enable visualization of how things change from month to month. The streamflow releases are currently only changed twice a year. But under the new license they will change much more frequently. The generation output also varies month-to-month with the availability of water in storage and demands on the electric system. If there is any other information you would like to see in this report, please let me know and I will make further changes. The July 2009 – June 2010 precipitation chart is also attached. The rainfall totals at the Forbestown office came close to the 85-year average. Releases from Little Grass Valley were increased to 440 cfs by June 8 in order to keep up with inflows; once the heaviest runoff passed, the releases were reduced to 200 cfs. The Slate Creek tunnel gates have been closed and opened twice in the past month to regulate the Sly Creek reservoir levels, to prevent the need to open the spill gates. The flashboards were installed at Lost Creek Dam on June 8. Preparation for New PG&E Contract As of the date of this report, the final signed Interconnection Agreements, Special Facilities Agreements and ISO Agreements had not been received. I hope to have an update on the status of these agreements at the Board meeting. Steve Wong provided PG&E will the necessary banking information so that when they do begin to send payments under the new contract, the money will get to the right place.

Maintenance Projects Sly Creek Dam Crest Modification Project Permission to start work was finally obtained from FERC during the week of May 24, the Forest Service followed with its permits a week later, and on June 7, Teichert began to mobilize to Sly Creek to begin construction. Rather than fill the report with photos, I will share the progress to date with a slide show at the upcoming Board meeting. Lake Haven Way Road Maintenance Lake Haven Way (once known as Ponderosa Way) provides access to the section of Miners Ranch Canal between the two siphons that cross under Lake Oroville. In the past Power Division personnel have maintained this road by grading and brushing the native and gravel surfaced road. This road was due for grading again this year, and issues with a private property owner led to development of a road maintenance agreement that was approved by several of the property owners along the road (although not by the property owner who insisted on the agreement in the first place). Maintenance was originally planned to start May 25, but the late season rains delayed the start of work until the week of June 14. General Information PG&E Transmission Line Licenses The two sections of transmission line that serve the upper three powerhouses, the Sly Creek 115 kV transmission line and the Woodleaf-Kanaka Junction 115 kV transmission line, went through relicensing at the same time as the South Feather Power Project. Because there were no water-related issues with the transmission lines, the process was somewhat more streamlined than the process the SFPP is going through. On June 10, FERC issued the new licenses for the transmission lines to PG&E. The licenses specify a 30-year term subject to amendment once the term of the SFPP license is determined, so that in the future the transmission line and hydroelectric project licenses will again expire at the same time. The FERC discussion of the license conditions is informative in how it deals with Forest Service mandatory conditions that FERC staff disagreed with. FERC staff disagreed with three of the Forest Service mandatory conditions, but in each case, the discussion concluded with: “However, I (FERC Director of Energy Projects) have included this measure as part of the license because it is a mandatory section 4(e) condition.” Western Electricity Coordinating Council I attended the second WECC meeting of the year June 1-3 in Seattle, and came away with a new to-do list of compliance activities. One of those is documentation of the “culture of compliance” within the Agency. As you are aware, the Agency strives for complete compliance with all laws, regulations, permit requirements, directives, etc. However, WECC looks for specific language in a policy document that states this when it conducts its audits. The Agency management team is preparing such a policy document for Board approval in the near future. I will be filing a self-certification of compliance with NERC and WECC standards applicable to generator owner/operators during the first week of July.

POWER DIVISION MANAGER'S REPORT

Release to SFFR Release to SFFR Release to Release to Maximum Elevation 5,046.00 Feet 3,524.00 Feet Below LGV Below Diversions Lost Creek Slate Creek

End of Month Conditions

Restriction from 5047.00 feet for PMF

Restriction from 3,530.00 feet for construction

January 5011.75 Feet 3429.30 Feet 13.10 cfs 5.84 cfs 6.97 cfs 11.7 cfs

February 5014.21 Feet 3446.58 Feet 13.60 cfs 5.60 cfs 7.43 cfs 11.4 cfs

March 5019.28 Feet 3485.99 Feet 16.00 cfs 5.60 cfs 8.82 cfs 40 cfs

April 5029.28 Feet 3517.67 Feet 16.00 cfs 10.80 cfs 9.30 cfs 67.8 cfs

May 5041.82 Feet 3519.13 Feet 123.00 cfs 10.50 cfs 9.30 cfs 504 cfs

June Feet Feet cfs cfs cfs cfs

July Feet Feet cfs cfs cfs cfs

August Feet Feet cfs cfs cfs cfs

September Feet Feet cfs cfs cfs cfs

October Feet Feet cfs cfs cfs cfs

November Feet Feet cfs cfs cfs cfs

December Feet Feet cfs cfs cfs cfs

Forbestown

January 434700 MWH 7,279,080 MWH 4,883,790 MWH 5,194,348 MWH

February 1383900 MWH 13,169,520 MWH 8,380,670 MWH 5,460,533 MWH

March 2173400 MWH 17,356,840 MWH 12,050,750 MWH 6,573,114 MWH

April 4339200 MWH 31,802,420 MWH 21,476,150 MWH 7,247,755 MWH

May 6659700 MWH 37,059,430 MWH 26,357,780 MWH 7,641,113 MWH

June MWH MWH MWH MWH

July MWH MWH MWH MWH

August MWH MWH MWH MWH

September MWH MWH MWH MWH

October MWH MWH MWH MWH

November MWH MWH MWH MWH

December MWH MWH MWH MWH

14,990,900 MWH 106,667,290 MWH 73,149,140 MWH 32,116,863 MWH

Sly Creek Kelly Ridge

Powerhouse Operations

Woodleaf

Sly CreekRESERVOIR ELEVATIONS

Little Grass Valley

SOUTH FEATHER WATER AND POWERSOUTH FEATHER POWER PROJECT

Reservoir and Stream Operations

STREAM RELEASES

2010

0

10

20

30

40

50

60

70

80

90

100

July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

Inch

es

South Feather Power Project - Forbestown Precipitation

85 Year Avg.

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Alex C. Brown, Regulatory Compliance Manager DATE: June 16, 2010 RE: General Information (regarding matters not scheduled on agenda) 6/22/10 Board of Directors Meeting Recreation Strawberry Campground Opens

The rising waters of Sly Creek Reservoir are the yearly signal that the recreation season is upon us. This year’s recreation enthusiast can be accommodated at Strawberry Campground

and car top boat launch. Pre-operational inspections of infrastructure needs, camp cleanliness, and health and safety were conducted during the months of April and May. Inspections were performed by Alex Brown, John Davis and Scott Alcantara, with only minor concerns, such as removal of a few downed tree limbs being found. After inspections, operational needs, such as flushing and testing the water system, were met. Denny Lewis opened and flushed both wells and pumps. Water quality samples were collected for testing by treatment plant operators Jim Coffelt and John Shipman. Both wells passed inspection.

Denny Lewis finishes flushing the wells at Strawberry Jim Coffelt and John Shipman perform water quality testing Car Top Boat Lunch ready for use Sly Creek reservoir is now touching the bottom of the car top boat launch, adjacent to Strawberry Campground, making the launch ready for use. At this reservoir level recreationist can use the site to launch canoes, and other small watercraft for their leisure time enjoyment. This scenic area provides opportunities for fishing, site seeing or other adventures. Campground Upgrades A slight modification to the existing vault toilet was made to improve the living condition of the campground host. On approval from Butte County Environmental Health, with technical input from John Franklin and Charley McCauley, the new vault lid was deigned and fabricated by Charley McCauley. This slight upgrade allows the host to empty the contents of their RV wastewater tank without leaving the site. This creates a more desirable environment for the workampers that will be interested in being a SFWPA camp host in the future as well as accommodating the current host.

Memorial Day Success Strawberry campground was open the week prior to Memorial Day to allow the campground host a week to acclimate and become accustomed to his duties. The facility began to fill on Thursday at the beginning of Memorial Day weekend, and remained near capacity throughout the weekend. Campground occupancy has stayed at a steady 50% to 70% full since. Upstream View of Ponderosa Spillway Dam Safety and Security Vulnerability Analysis The security and vulnerability inspection of SFWPA critical infrastructure will be performed by the PG&E security team from June 23rd through June 25th. Time Sensitivity Analysis The Time Sensitivity Analysis for Little Grass Valley, Sly Creek, Lost Creek, and Miners Ranch Dam is Downstream face of Forbestown Diversion Dam nearing completion. Slate Creek Stability Analysis The Slate Creek Stability Analysis began this month with a meeting between project leader Nathan Rockwood of Mead and Hunt, and Alex Brown and John Davis of South Feather Water and Power Agency. Dam Safety and Security Inspections Slate Creek Dam Dam Safety and security inspections are planned for the last week of May and through the third week of June. Inspections include the entire inventory of SFWPA’s dam and associated appurtenance structures. Dams are inspected on the upstream and downstream faces to shoreline, the crests, groins and spillways. Inspections typically occur twice a year and as part of the FERC operations inspections which will take place this year on July 13th, 14th and 15th. Lost Creek Dam

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Matt Colwell, Water Division Manager DATE: June 17, 2010 RE: General Information (regarding matters not scheduled on agenda) 6/22/10 Board of Directors Meeting Water Distribution Operations Water Division staff have been accomplishing normal water system operation and maintenance tasks. Ongoing projects include irrigation and domestic distribution system betterments, new service installations, and leak repairs. Distribution crews under the supervision of John Franklin will complete the capital improvement project extending the distribution system along Highlands Boulevard and interconnecting Rockridge Drive. Approximately 500’ of eight and six-inch C-900 mainline was installed to improve the distribution system and eliminate old galvanized service laterals. At the time of this report, the service lateral to the residence at 111

Highlands Boulevard is being bypassed from the adjacent residence through a garden hose which back-feeds an outside hose bib (see picture below). The customer described to the crew that her temporary hookup has provided better water service than she has ever had. The project will improve water distribution in the area, allow for residential growth, eliminate potential costly service line failures, relocate an existing fire hydrant out of a residential driveway, and improve water service to five existing services. Progress on our new Hydrography program continues to proceed. Electronic hardware including the satellite receiving dish and computer were recently installed. Tom Veurink did a professional job with manufacturing and mounting the dish.

(See picture below)

The 2010 Irrigation season is off to a good start.

Forbestown Ditch SF 14 = 12 cfs NYWD = 2 cfs SFWPA = 10 cfs

Bangor Canal SF 25 = 8 cfs Palermo Canal = 12 cfs

Water Treatment Operations The Agency has installed a pilot filtration plant that is on loan from CDM as part of our MRTP expansion project. The picture below shows one of two modules that will provide the opportunity to test four different filter media configurations. Multiple sensors and recording instruments are installed to evaluate pilot filter performance and designed to provide data from multiple parameters that will allow the Agency and CDM to

optimize filter media configuration and chemical treatment. The Miners Ranch water treatment plant volumes for 2010 continue to run well below average as a result of, among other factors, wetter than normal spring precipitation. The May monthly volume is at 62% of the recent 5-year average and the cumulative January through May volume is at 74% of the recent 5-year average and continues to be the lowest of record (since 1981). The table below and the chart at the end of this report shows a more historical perspective.

Miners Ranch Production

May 2010

Total 116.1 Million Gallons High 5.8 MGD Low 2.5 MGD Avg. 3.8 MGD

Solar Plant Production The monthly MRTP power consumption was less than the solar power production by15,600 KWH during the month of May. The 2009 PG&E “True-Up” billing (June ‘09 through May ‘10) was at $16,500 and less than half of the prior year period costs of $34,750. The graph below provides a historical perspective of energy consumption compared to water production.

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Water Division Status Report Matt Colwell Water Division Manager

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Michael Glaze, General Manager DATE: June 17, 2010 RE: General Information (regarding matters not scheduled on the agenda) 6/22/10 Board of Directors Meeting Amendment of 2005 Agreement With NYWD At the Board’s meeting this past April it approved an amendment to the 2005 Agreement with North Yuba Water District. The amendment was needed to accommodate continuation of the long-term water sale by NYWD to Yuba City, and to relieve SFWPA of its Agreement-specified responsibility to rebuild a portion of the Hell-for-Stout Flume on the Upper Forbestown Ditch. Subsequently, at its meeting on May 20, the NYWD board of directors also approved the amendment, and a fully executed copy thereof is now on file in the Agency’s office. “Forbestown Ditch Replacement and Hydropower Project” Kathy Zancanella and I will be attending an “Agency CEQA Scoping Meeting” for the subject project in the morning before the Board’s meeting on Tuesday next. Attached is the published notice for the meeting that will explain some of the interesting assumptions being made about the project, together with a proposed-pipe-alignment map. Commencement of New Power-Purchase Contract In Kathy Zancanella’s report, she noted the fact that three agreements involving PG&E and the ISO are still not signed. She has been doing a good job prodding the responsible individuals at PG&E and I’m confident that these remaining documents will be fully executed prior to July 1, the commencement date of the new power-purchase agreement with PG&E. All other issues are well in hand and we should make the transition from the present to the new agreement relatively seamlessly. It almost seems as if a celebration is in order to commemorate this historic event. From the day I was interviewed for the general manager position nearly 18 years ago, the end of the old power contract and the beginning of a more profitable era for the Agency has been a frequent topic of conversation and anticipation. Well…it’s here. Now, let’s get back to work.

BOARD OF DIRECTORS OF THE NORTH YUBA WATER DISTRICT NOTICE OF PUBLIC WORKSHOP AND

CEQA SCOPING MEETING

FORBESTOWN DITCH REPLACEMENT AND HYDROPOWER PROJECT

Notice is hereby given that the North Yuba Water District (District), as lead agency, will hold a California Environmental Quality Act (CEQA) public workshop and scoping meeting to seek input regarding the environmental information that should be considered for the construction of the Forbestown Ditch Replacement and Hydropower (Project) proposed in Butte and Yuba Counties. The workshop and meeting will provide participants with an opportunity to comment on the appropriate scope and content of the Environmental Impact Report (EIR) to be prepared pursuant to CEQA (Public Resources Code section 21000 et seq.) and CEQA Guidelines (14 California Code of Regulations 15000 et seq.). All state and local government agencies are required to consider the environmental consequences of projects over which they have discretionary authority before acting on those projects. All interested federal, state and local agencies, Indian tribes, groups, and the public are invited to comment on the scope of the EIR.

Segments of the new pipeline will be located within the Plumas National Forest which will require U.S. Forest Service National Environmental Policy Act (NEPA) compliance with the Council on Environmental Quality regulations per 40 Code of Federal Regulations (CFR) parts 1500-1508. Comments provided at the workshop and scoping meeting will be made available to the Forest Service.

Project Description: The Project includes the replacement of approximately 52,800 linear feet (10.0 miles) of the existing Ditch with approximately 50,900 linear feet (9.7 miles) of 36 and 42-inch diameter pipe. The pipe will convey water from the South Feather Water & Power Agency penstock adjacent to the Woodleaf Surge Tank to the proposed hydroelectric generation plant and associated facilities at the existing District water treatment plant in the Forbestown Community. Approximately 49,000 linear feet (9.3 miles) of the pipe will be constructed within existing roads, 1,065 linear feet (0.2 miles) within the existing Ditch, and 780 linear feet within the existing siphon (0.15 miles).

Approximately 16,900 linear feet, (3.2) miles of the Ditch plus approximately 3,800 linear feet (0.7 miles) of the Oroleve ditch will remain to provide water to the Woodleaf area, in particular the Young Life Camp. The water will be piped from the Ditch, at a location in close proximity to the siphon, to the Woodleaf area. This water will be supplemented by water in the pipeline, as necessary. The hydropower component of the Project will generate an estimated one to two megawatts of clean electrical power by recovering energy that is otherwise lost through a terminal valve and an energy dissipation structure at the water treatment plant. The power generated will serve the treatment plant with excess power sold through connection to the power grid. Project Need: The identified needs for the proposed Project are: • To reduce most of the 35 to 40 percent of water loss due to evaporation and seepage due to the

conveyance of water in the open Ditch. • By reducing water loss, the District will provide a sufficient amount of water to current and future

agricultural users. • To improve some of the flow to the District water treatment plant which could be interrupted by

failures of the Ditch, by erosion of dirt and rocks to the system, or by chemical pollution from unlawful dumping into the Ditch or other unforeseen events.

• To improve domestic water quality by eliminating potential seepage from septic leach systems and animal waste. Recent testing has revealed high levels of E-coli bacteria that exceed state water quality standard thresholds.

• To eliminate the existing Ditch operation and maintenance costs and replace it with a more reliable water conveyance system with much lower operation and maintenance costs.

• To generate a source of clean power to operate the water treatment plant. • To provide revenue to the District from the sale of excess clean power. • To recover energy that would otherwise be lost.

Location: The pipeline component of the Project is located in Sections 3, 4, 5, 6, 7, 8 and 9, T19N, R7E, and in Section 12, T19N, R6E, of the USGS 7.5-minute Clippers Mills Quadrangle and in Sections 11 and 12, T19N, R6E of the USGS 7.5-minute Forbestown Quadrangle. The hydropower plant is located at the District treatment plant site in Butte County at 118 Buckeye Drive, Forbestown in Section 11, T19N, R6E of the USGS 7.5-minute Forbestown Quadrangle. Provided is a general location map of the proposed pipe alignment. A detailed map can be obtained by contacting the District as identified below.

Workshop and Scoping Session: An agency workshop and scoping session to review the proposed project and obtain input from various agencies and organizations is scheduled to begin at 10:00 AM on Tuesday June 22, 2010 at the North Yuba Water District Board Room, 8691 La Porte Road, Brownsville. A public workshop and scoping meeting is scheduled for 3:00 PM at the same location. Questions may be directed to Eihnard Diaz, AICP at (530) 224-0811 or email at ediaz@diazplanning.com or to William Suppa at (530) 675-2567 or e-mail at ycwdwaterman@sbcglobal.net. William Suppa, General Manager June 10, 2010

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06.08.10Feature and boundary locations depicted are approximate only.

X 0 1,600Feet Proposed Pipe Alignment and Associated Road/Ditch Segments

North Yuba Water District Forbestown Ditch Replacement and Hydropower Project

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Pipe to be within Existing DitchRoad - Asphalt SurfaceRoad - Native Surface (4WD)Road - Native Surface (Not Currently Maintained)Road - Gravel SurfaceExisting SiphonForbestown/Oroleve Ditch to Remain in Use Proposed Staging Areas (A - E)Vent Pipe Location

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Pipe Segment Land Owner Length (feet)1 Other 16,3332 Other 2,2773 Other 778

4A Other 8204B PNF 1,1385A PNF 1,6365B Other 7546A Other 5,4576B1 PNF 7236B2 PNF 2,7026C Other 8906D PNF 4,0157A PNF 2747B Other 4,1048 Other 7,967

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EExisting Water Treatment Plant and Proposed Hydropower Plant Site

Existing Woodleaf Surge Tank Site

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Steven Wong, Finance Division Manager DATE: June 14, 2010 RE: Supplemental Appropriation/Budget Modification – Phone System Agenda Item for 6/22/10 Board of Directors Meeting The 2009 Power Purchase Agreement with PG&E requires that all telephone communications with PG&E be recorded (PG&E’s request), regardless of the reason or who places the call. The Agency’s current phone system is over ten years old and does not have recording capabilities. The proposal is to replace the Agency’s entire phone system by installing a new system utilizing current technology so that each end user would have a direct line, be able to initiate a call recording, plus other enhancements. The approved 2010 budget included $35,000 for this purpose (Project Management Account 2010-823): $17,500 from Fund 6 (PG&E Power Division money approved for expenditure in the first half of 2010) and $17,500 from Fund 7 (Joint Facilities Fund). An additional $45,000 will be needed to fund the system needed to accomplish the required upgrade. The request is that the Board approve a budget amendment that would appropriate the necessary additional funds from Fund 7. Adequate funds will be available for this purpose, but approval of the supplemental appropriation will defer meeting the reserve requirements for the fund, as specified in the 2005 Agreement with North Yuba Water District. The requested action is:

“I move that the 2010 Agency Budget be amended by appropriating an additional $45,000 from the Joint Facilities Fund for expenditure in the 7/1/10-12/31/10 period for the purchase of a new phone system (Project Management Account 2010-823) to comply with the terms of the 2009 Power Purchase Agreement with PG&E..”

SOUTH FEATHER WATER & POWER AGENCY

TO: Board of Directors FROM: Michael Glaze, General Manager DATE: June 16, 2010 RE: Policy Amendment - #410, Goals of the Agency Agenda Item for 6/22/10 Board of Directors Meeting Power Division Manager Kathy Zancanella has been taking the lead on ensuring that the Agency’s South Feather Power Project is in compliance with mandatory reliability standards being promulgated by the North American Electric Reliability Corporation (NERC) and the Western Electric Coordinating Council (WECC). At the recent WECC conference that she attended she learned that when it is the Agency’s “turn” to be audited regarding its compliance with those reliability standards, it will need to be able to demonstrate a “culture of compliance.” The large utility companies do this by creating compliance divisions dedicated exclusively to managing all the NERC standards (in addition to all other regulatory compliance issues). These compliance divisions prepare their company’s “internal compliance program” and present it, along with all the other required documents, to the auditors. Smaller entities like SFWPA, that have to accomplish compliance as part of routine operations, still need to document that they have a written policy of maintaining compliance. The Agency does not presently have a policy that specifically addresses compliance. However, Policy #410 enumerates the “Goals of the Agency,” and would be an appropriate policy in which to add the necessary compliance language. The attachment shows the amendments proposed that would satisfy the NERC/WECC requirements, as well as other cleanup items that would make this policy current and relevant. The requested action is:

“I move approval of the amendments to Policy #410, as presented, and affirm the Agency’s commitment to compliance with all applicable federal, state and local laws, regulations, rules, licenses, permits and directives as specified therein.”

Policy #410 – GOALS OF THE AGENCY The Goals of the South Feather Water & Power Agency are as follows: 1. Generate adequate revenue for payment of the operation and maintenance of the Agency. 2. Manage expenses to maintain a balanced budget. 3. Use power revenue for capital improvements and for subsidizing the ditch irrigation system and the

domestic water system. 4. Comply with the terms and conditions of all outstanding financings (revenue bonds, certificates of

participation, lines of credit, loans, etc.). 5. Maintain bonding capacity to meet future needs. 6. Maintain a firm financial footing to assure continuation of future availability of irrigation and

domestic service and power generation. 7. Maintain compliance with all applicable federal, state and local laws, regulations, rules, licenses,

permits, and directives, including, but not limited to:

a. Terms and conditions of the Federal Energy Regulatory Commission license for the South Feather Power Project;

b, Reliability Standards of the North American Electric Reliability Corporation and the

Western Electric Coordinating Council; c, Terms and conditions of the State Water Resources Control Board water rights permits

and licenses; and, d. Terms and conditions of any permits issued by federal, state, regional, and or local

agencies for occupancy, maintenance and/or operations involving resources governed by said agencies.

Adopted: 7/14/87 Amended: 6/22/10