Update to Proposition 1E –Early Implementation Project (EIP)

Application and Local Share

Reclamation Board

Sub-Committee Meeting

September 11, 2007

Segment 3

Segment 1Site 7 (Segment 1)

Segment 2

Feather River Early Implementation Project

EIP Status

• Submitted Application on April 30, 2007• Received DWR EIP preliminary notification letter

late August 30, 2007• Met with DWR officials to discuss requirements of

letter on September 4th • Anticipated EIP project cost $188.8 million

– Proposed state share: $138.5 million– Proposed local share: $50.3 million

• EIP elements:– Segment 2 and 3 funded, included in total cost– Segment 1 and site 7 not funded, included in total cost– Ecological Restoration not funded and not included in total

cost

EIP Agreement Schedule

• Anticipated schedule:– TRLIA, Yuba County Board of Supervisors, and

RD784 approve financial plan required by EIP: September 25th

– TRLIA submit financial plan & supporting documentation to DWR: September 27th or 28th

– DWR to complete review: mid October– Agreement finalized and signed: early November– Initial funding from DWR: early/mid December

Local Share Status

• Financial plan is being prepared jointly by: Yuba County, TRLIA, and landowners

• Key components of Plan:– Funding strategy: Combination of many options

are being considered such as: Capital Calls (2nd funding agreement), Benefit Assessment District, and other government funds

– Three year audit of TRLIA financial records is being completed by CPA

– Information on current and projected O&M costs

Additional Local Documentation

• Items to be submitted by end of September: – Provide additional information on strategy to 200

year flood protection– Further define flood risk in affected area and

provide Acknowledgement of flood risk via a resolution by Yuba County

– Permits and environmental compliance documentation

• Future items (prior to actually funding):– Emergency response plan– Hydraulic modeling and design information

EIP Concerns

• Lateness of funding and potential impact on TRLIA 2008 Completion Goal

• Cost overruns beyond built-in contingency are the responsibility of TRLIA

• Reimbursable funding vs. upfront funding by State

• Expenses incurred before Agreement is in place are not guaranteed to be covered – subject to negotiation

• Ecological restoration funding from other sources

Summary

• Thankful for opportunity to obtain State funding

• Preparing to submit Financial Plan and other documentation by end of September

• Anxious to receive state funding and make major progress towards:– 200 year flood protection for South Yuba County– Achieve all the benefits obtained by building the

Feather River setback levee