1. STOCKTON DELTA WATER SUPPLY PROJECT (DWSP) Final Environmental Impact Report (EIR) Certification Hearing November 8, 2005 Mark J. Madison, Director Municipal Utilities Department

2. DWSP Project Objectives Replace declining surface water supplies provided through Stockton East Water District Replace declining surface water supplies provided through Stockton East Water District Protect and restore groundwater resources Protect and restore groundwater resources Provide for planned growth in the City of Stockton Metropolitan Area (COSMA) Provide for planned growth in the City of Stockton Metropolitan Area (COSMA)

3. Delta Water Rights Application Application to the State Water Resources Control Board (SWRCB) Application to the State Water Resources Control Board (SWRCB) Proposed “Place of Use” = Stockton 1990 General Plan Planning Area Boundary = COSMA Proposed “Place of Use” = Stockton 1990 General Plan Planning Area Boundary = COSMA Applies for water for long-term horizon of 2050 Applies for water for long-term horizon of 2050 Approximately 33,600 Acre-feet initially Approximately 33,600 Acre-feet initially Up to 125,900 Acre-feet in 2050 Up to 125,900 Acre-feet in 2050

4. EIR Process Milestones Notice of Preparation Issued 2003 Notice of Preparation Issued 2003 Draft EIR Issued April 30, 2005 Draft EIR Issued April 30, 2005 Public Review Period – May and June 2005 Public Review Period – May and June 2005 Draft EIR Public Meeting – June 1, 2005 Draft EIR Public Meeting – June 1, 2005 Final EIR Published – October 25, 2005 Final EIR Published – October 25, 2005 EIR Certification and Project Approval Hearing – November 8, 2005 EIR Certification and Project Approval Hearing – November 8, 2005

5. Water Right Place of Use = General Plan Planning Area Boundary

6. Cost ItemCapital Cost River Intake and Pumps $ 20,000,000 Raw Water Conveyance$ 60,000,000 Water Treatment Plant$80,000,000 Treated Surface Water Pipelines$12,000,000 Total Capital Cost$172,000,000 Cost Estimate – March 2008

7. CEQA Findings The Final EIR identifies Project changes or alterations that will avoid or substantially lessen the significant environmental effect. The Final EIR identifies Project changes or alterations that will avoid or substantially lessen the significant environmental effect.

8. Statement of Overriding Considerations Secures Reliable Supplemental Water Supply for Existing Community Secures Reliable Supplemental Water Supply for Existing Community Supports Planned Growth per Current General Plan Supports Planned Growth per Current General Plan Need for Supplemental Supply Identified in 1990 Plan Need for Supplemental Supply Identified in 1990 Plan Improves Public Health and Safety for Stockton Improves Public Health and Safety for Stockton Protects and Restores the Groundwater Basin Protects and Restores the Groundwater Basin Supports Economic Development and Social Benefits for Stockton Supports Economic Development and Social Benefits for Stockton

9. Mitigation Monitoring and Reporting Program (MMRP) When Approving a Project, City must adopt a MMRP to describe for each mitigation measure - the monitoring and reporting: When Approving a Project, City must adopt a MMRP to describe for each mitigation measure - the monitoring and reporting: Activities, Activities, Timing, and Timing, and Responsibilities Responsibilities Assures mitigation compliance Assures mitigation compliance

10. DWSP Key Impacts - Summary Most impacts short-term, construction-related; can be mitigated to less-than-significant levels Most impacts short-term, construction-related; can be mitigated to less-than-significant levels Significant Unavoidable Impacts Significant Unavoidable Impacts Loss of important farmland at WTP site Loss of important farmland at WTP site Visual impact of intake structure on Delta Visual impact of intake structure on Delta Construction-related air emissions: dust, nitrogen oxides, Reactive Organic Gases (precursors to ozone) Construction-related air emissions: dust, nitrogen oxides, Reactive Organic Gases (precursors to ozone) Secondary Effects of Growth Secondary Effects of Growth

11. Key Mitigation Commitments 1 Construction Mitigation Construction Mitigation Restrictions on construction location and timing. Construction monitoring and reporting required Restrictions on construction location and timing. Construction monitoring and reporting required Loss of Farmland Mitigation Loss of Farmland Mitigation Acquire Conservation Easement for agricultural land loss Acquire Conservation Easement for agricultural land loss Pay agricultural mitigation fee Pay agricultural mitigation fee

12. Key Mitigation Commitments 2 Operational Noise Management Operational Noise Management Good Neighbor Practices for WTP Good Neighbor Practices for WTP Terrestrial Biological Resources Mitigation Terrestrial Biological Resources Mitigation Participate in SJMSCP – Pay fees to compensate for habitat impacts or provide equivalent mitigation through land acquisition, conservation easement and funding Participate in SJMSCP – Pay fees to compensate for habitat impacts or provide equivalent mitigation through land acquisition, conservation easement and funding

13. Key Mitigation Commitments 3 Levee Protection / Flood Risk Mitigation Levee Protection / Flood Risk Mitigation Construct per state and local permits – incorporate design and construction measures Construct per state and local permits – incorporate design and construction measures Delta Water Intake Mitigation Delta Water Intake Mitigation Fish Screen design and operation Fish Screen design and operation Seasonal reductions in diversions and/or seasonal installation of filter fabric curtain Seasonal reductions in diversions and/or seasonal installation of filter fabric curtain

14. DWSP Preferred Alternative Delta Intake Delta Intake 2 sites and 2 configurations considered 2 sites and 2 configurations considered Preferred: South Bank Empire Tract with In-Bank Intake/Fish Screen Facility Preferred: South Bank Empire Tract with In-Bank Intake/Fish Screen Facility Water Treatment Plant Water Treatment Plant 5 alternative sites considered 5 alternative sites considered Preferred: Lower Sacramento Road site Preferred: Lower Sacramento Road site Pipelines Pipelines Along edge or roads and farmland; trenchless at key crossings Along edge or roads and farmland; trenchless at key crossings In local streets to tie into existing distribution system In local streets to tie into existing distribution system

16. Staffing Needs Five New Positions for the Municipal Utilities Department Five New Positions for the Municipal Utilities Department Needed Immediately (Current Fiscal Year) Needed Immediately (Current Fiscal Year) Program Manager III Program Manager III Senior Civil Engineer Senior Civil Engineer Office Specialist Office Specialist Needed for Construction (Fiscal Year 06/07) Needed for Construction (Fiscal Year 06/07) Assistant Civil Engineer Assistant Civil Engineer Construction Inspector Construction Inspector

17. Recommendations Certify Final EIR Certify Final EIR Approve the Phase 1 Project Approve the Phase 1 Project Adopt CEQA Findings Adopt CEQA Findings Adopt Statement of Overriding Considerations for Significant Unavoidable Impacts Adopt Statement of Overriding Considerations for Significant Unavoidable Impacts Adopt Mitigation Monitoring and Reporting Program Adopt Mitigation Monitoring and Reporting Program Authorize Staff to Proceed with Procurement Authorize Staff to Proceed with Procurement Obtain Financing Obtain Financing Secure Permits Secure Permits Authorize 5 New Positions for the Municipal Utilities Department Authorize 5 New Positions for the Municipal Utilities Department

18. Questions?

19. Proposed MUD Org Chart