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Analysis This Site Approval application has been referred to the Planning Commission due to a requested Condition of Approval and its potential of setting precedence for future dairy permits or other similar applications. Oakdale Irrigation_ District The Oakdale Irrigation District operates and maintains the Fairbanks Lateral Pipeline, which transects the project site. The District also maintains the Angel Lateral, located along the south property line of the subject parcel. Requested Condition of Approval No. 2.d. would require the relocation of the Fairbanks Lateral Pipeline outside of the project site. At issue is Condition of Approval No. 2.b. This condition states: "The landowner agrees to defend and indemnify the District and hold the District harmless for any drainage, seepage, or discharge of dairy waste or byproducts from the landowner's property into the District's facility. The landowner shall post a pollution insurance policy naming the District as an additional insured." The proposed dairy will have a wastewater storage capacity in excess of 8,867,000 gallons in three separate lagoons. The settling pond storage capacity will be increased to 161,120 cubic feet. According to the Oakdale Irrigation District, the pollution insurance policy is necessary to protect the District from incurring the costs involved in any clean-up, environmental degradation, or damage should one or more of the lagoons fail and release wastewater into District facilities. The District maintains that such a failure can be extremely costly, due not only to physical damage to facilities but to the far-reaching effects and environmental impacts should wastewater enter the District's pipeline or drainage system. The applicant maintains that such an insurance policy is unnecessary. According to the applicant, the new design of the dairy, including improvements to the irrigation system, wastewater retention basins, and water return system, will ensure that no wastewater is released into the District's facilities. The applicant also cites the additional expense of such an insurance policy. San Joaquin County SA-99-881DaSilva Community Development Page 3