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Section II Plan of Operation A. Proposed Service Boundary LID proposes to annex 4,680 acres to its existing 234 acre territory. The annexation area is isolated from other areas of the City of Lathrop and San Joaquin County to the northeast and northwest by the San Joaquin River, Paradise Cut and Old River. There are only two access points the proposed annexation area; one at Paradise Road utilizing the existing Paradise Road bridge and at Manthey and Stewart Roads, which connects to the Mossdale Village planning area of the City to the Stewart Tract. The latter access point crosses the San Joaquin River via the Manthey Road Bridge. There are no natural barriers to the southeast of the annexation area where it adjoins the existing service area of LID. Due to the natural boundaries that form most of the boarders of the annexation area,there are no current connections with public services in adjoining areas, including public potable water, sanitary sewer or storm drainage utilities, although the 36" South County Surface Water Project water pipeline was recently constructed through the area and will eventually provide a 24" connection specifically to the serve the project area. This connection and all other new public facilities will be financed by new development that will occur as a result of the River Islands project. The proposed LID annexation area was annexed to the City of Lathrop in 1997 as part of the original WLSP. The current River Islands project that is slated for development within the area was approved in January 28, 2003 by the City, which also certified an EIR for the project entitlements. These entitlements included a general plan amendment, WLSP amendment, development agreement, the UDC and vesting tentative map for the first phase of development(about 4,300 dwelling units and 4,500,000 square feet of commercial and office space). The EIR also analyzed an extensive flood protection system that will provide a minimum 100 year level of protection from a flood event for all urbanized areas of the River Islands project. At buildout,the entire River Islands project will contain over 11,000 residential dwelling units and almost 5,000,000 square feet of commercial and office space, along with an internal lake system, golf courses and an extensive open space corridor throughout and surrounding the project area. Also part of the project is the Paradise Cut Conservation area, (PCC) which contains approximately 800 acres and will likely be placed in an agricultural and habitat preserve; no urbanization of this area will occur, however, LID will likely provide irrigation water to the PCC area. The proposed population at buildout of the service boundary is approximately 35,000 persons. As a result, LID expects 11,000 residential electrical and telecommunication customers, along with a significant number of non-residential customers who will occupy the 5 million square feet of commercial space. The total number of non-residential customers cannot be estimated at this time. The total estimated electrical load from this development is about 45 megawatts. There are about 20 existing electric customers served by PG&E with existing overhead PG&E facilities. The majority of these electrical service points will likely be removed as 5