The Board of Directors is pleased to announce that the Association and the Irvine Ranch Water District (“IRWD”) have entered into a Water Exchange Agreement providing for domestic or drinking water to fill the Woodbridge lakes and lagoons. This Agreement is for an extended period of time and will help ensure that a permanent source for water is provided for the lakes and lagoons.

As many of you may be aware, the Woodbridge Village Association has faced water supply issues for its lakes and lagoons due to interruption of well water supplies. This well water interruption is related to the underground plume that extends from the former El Toro Marine Corps Air Station and is a result of on-base activities over the past 50-plus years.

The IRWD, under an Agreement with the U.S. Navy, has begun a clean-up operation, referred to as the Desalter Project, which will remove contaminated groundwater to remedy the problems, but that will take place over the next 30- to 40-years.

Also, as many of you may recall, the IRWD at one time wanted to place a new well within Woodbridge to remove ground water during this remediation period. However, after strong opposition in this community, the Board decided to cancel the new well project and enter into negotiations with IRWD for a more acceptable alternative. After a year of negotiations, your Board and the IRWD have arrived at a new arrangement, a Water Exchange Agreement.

Under this Agreement, WVA will exchange its annual rights to underground Well 78 water, in exchange for fresh drinking quality water at favorable rates, to fill its swimming lagoons and lakes. Well 78, as you may also be aware, is located across Culver at Warner. WVA will pay for this domestic drinking water at the lowest conservation rate charged by the IRWD.

The cost for this uninterrupted, high-quality water will be less than the cost to the Association to produce and use the Well 78 and North Lake Well water.

Barry Ross, President of the Woodbridge Village Association, and Mary Aileen Matheis, Vice President of the Irvine Ranch Water District, sign the Water Exchange Agreement.

The Exchange Agreement results in considerable savings to the Association members over the 30- to 40-year remediation period. The IRWD and the Association’s consultants estimate that savings could be in excess of two million dollars. Actual cost savings will allow current and future Boards to set aside funds to install new well and pipeline facilities to serve lakes and lagoons of our community when necessary. Well water at present is more expensive to produce, but should that ever change, the WVA will pay the lower of IRWD’s conservation rate for water.

This Exchange Agreement is subject to any future overriding governmental regulation concerning use of domestic drinking water in lakes and lagoons that is now permissible. Should that ever change in the future, the Agreement provides that, IRWD will construct additional water lines, at WVA’s option and expense, connecting the South Lake and the North Lake so that both lakes and lagoons could be served by wells.

Finally, the prior Well License Agreement with IRWD for groundwater removal at North Lake has been formally terminated as part of this new Exchange Agreement. We believe this Exchange Agreement will provide a safe, long-term water supply for our lakes and lagoons for the foreseeable future.