1. San Francisco Public Utilities Commission Water System Improvement Program Bay Division Pipeline Project July 14, 2009

2. Bay Division Pipeline Reliability Upgrade Proposed Commission Actions Adopt CEQA Findings MMRP Overriding Considerations Authorize General Manager Acquisition of Real Property Interests Long-Term Lease Agreements Easement Agreements MOAs PG&E Any lease, permit, license, encroachment-removal agreements Obtain permits from state and federal regulatory agencies Approve Project

3. SFPUC Hetch Hetchy Water System Bay Division Pipeline System

4. Project Objectives To provide a new seismically reliable pipeline to supply water to our customers within 24 hours following a major earthquake For transmission of water across the Bay and for replenishment of local reservoirs To contribute toward meeting the estimated average annual demand under the condition of one planned shutdown concurrent with one unplanned facility outage

5. Existing Bay Division Pipelines SF Bay

6. Proposed Project Bay Tunnel B D P L 5 B D P L 5 SF Bay BDPL5

7. Proposed Project Elements - Pipeline New BDPL No. 5, parallel to existing pipelines Nos. 1 and 2; East Bay: 7-mile pipeline, 6-foot diameter, passing through Fremont and Newark; Peninsula: 9-mile pipeline, 5-foot diameter, passing through Menlo Park, East Palo Alto, Redwood City, and unincorporated San Mateo County; and New valve & flow- metering vaults, control buildings, back-up generators, security fencing & lighting at existing locations. SF Bay BDPL5

8. Proposed Project Elements - Tunnel 5-mile tunnel, 9-foot diameter, under SF Bay between Newark and Menlo Park Constructed 70-100 feet below the Bay, bypassing environmentally sensitive near shore habitats Tunnel shaft at Menlo Park and Newark; tunnel boring machine (TBM) would be driven from west to east

9. Fiber Optic Cable Proposed Project Elements – Fiber Optic Cable Attach new cable to the tops of 45 existing transmission towers between Menlo Park and Mountain View Modify PG&E's protection system to supply power to the TBM Use short helicopter flight (several minutes at each tower) to transport equipment to towers in areas with no vehicle access Trucks and cranes will not be operated in wetland areas Cable would take approximately six weeks to install

10. Environmental EIR certified on July 9th Significant and Unavoidable Impacts aesthetics from loss of trees damage to unknown cultural resources at the shaft locations land use from construction next to residential areas noise vibration Design Enhancements Eliminated impacts to salt marsh and Bay habitat Avoided crossing through Cordilleras Creek Moved alignment to avoid tree removal Avoided wetlands and pickleweed habitat in Ravenswood Staging Area Potential beneficial reuse of Tunnel spoils

11. Bay Division Pipeline Reliability Upgrade Project (BDPL 5) One (1) – Permanent Access Road off Paseo Padre in Fremont One (1) – Underground Pipeline Easement in Bay Rd. Menlo Park Extensive Encroachment Removal

12. Bay Tunnel Three (3) - Sub-surface Tunnel Easements Two (2) - Long-term Leases (State Lands & USFWS)