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1 f f Stockton East Water District has entered into a contract with the USER for water from New Melones reservoir on an interim (but long-term) basis. SEWD has a maximum allotment of 75,000 acre-feet per year, and has reserved approximately 40,000 acre-feet per year of this water for domestic use in the Stockton area. This water would be conveyed from the New Melones Reservoir to the SEWD plant via a conveyance system, referred to as the New Melones Conveyance System, completed in January 1994. The City of Stockton has instituted a surface water supply connection fee to finance the new development portion of the New Melones Conveyance System. Also, in anticipation of the New Melones water, SEWD increased the overall capacity of their water treatment Plant to 60 MGD in March 1991. Recent actions taken by the USBR to implement provisions of the Central Valley Project Improvement Act (CVPIA), Bay-Delta Agreement, and Endangered Species Act have raised doubts about the USBR's ability to honor its contractual commitment to deliver the 75,000 acre-feet per year of water to the New Melones Project.' As a result of these actions, a long-term projection supplied to SEWD by the USER indicates that New Melones water would be available to SEWD only in the wettest years when New Hogan supplies are more than sufficient to meet SEWD's needs.' In an attempt to recover some of the contracted water from the New Melones Project, SEWD and the City of Stockton has filed suit against the USER. The outcome of the legal action regarding the New Melones Project is not known at this time. The City of Stockton is also exploring other alternatives to meet anticipated water supply requirements. These alternatives include an Application with the State Water Resoureces Control Board to perfect the City's rights to water in the Delta, the extension of the Folsom South Canal to San Joaquin County, the raising of Farmington Dam, the construction of South Gulch and Duck Creek reservoirs, participation to obtain water from the proposed Auburn Dam and Middle Bar dams, negotiation of an agreement with k Central San Joaquin Water Conservation District to obtain a portion of their "firm" contracted CVP supply from USER, negotiation of an agreement with South San Joaquin and Oakdale Irrigation Districts for the I purchase of conserved water, and participation in a joint conjunctive use project involving north San Joaquin County water agencies, the County, and the East Bay Municipal Utility District. None of these alternatives, however, have yet been implemented. f The City of Stockton will also continue to support the efforts of San Joaquin County, Stockton East Water i ' District, and other interested parties in pursuing additional surface water supplies for the City Water Utility, the City of Stockton, and those affected by the overdraft of the groundwater basin in Eastern San Joaquin County. These efforts include but are not limited to the American River Water Resources Investigation, legal and operational negotiation efforts to mitigate the effects of the CVP[A, Endangered Species Act, and the Bay Delta Agreement, securing water transfer agreements with willing sellers, and Delta water rights and diversions. In addition, the City is continuing to explore all possible uses of its reclaimed water, which is consistent with a long term goal of zero discharge of treated wastewater into the river set by the City Council. it is a goal of the City to have a major recycled water supply-program implemented in 6 to 10 years, which is consistent with the City's long-term goal of zero discharge from the wastewater treatment facility.b 5Anticipated Water e a for the Proposed P Ject (Insert project specific statements here as appropriate) �I I 4 FF4{