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Wylla Satterness - Application No. GP-89-6/ZR-89-9 Page 2 Although development of agricultural land for urban purposes does not generally increase water demands (one acre of land uses 3+ AFA whether farmed or developed for medium density residential purposes) , substantial areas proposed for development have been using surface water not available for urban use. Some agricultural areas are and have been irrigated with delta water, or water from Woodbridge Irrigation District. Development of such areas will further impact the groundwater basin. Continued growth without supplemental surface water will increase the 70,000+ AFA overdraft by an unknown amount. It is probably safe to say that the increase will be on the order of 20,000+ AFA. SEWD has been working to obtain a supplemental supply of surface water. The District contracted with the USBR in December 1983 for 751000 AFA of New Melones water, and has been attempting since then to construct the 40+ mile conveyance system needed to bring she water to Stockton. The District adopted a plan for conveyance in late 1986, determined financial feasibility and contracted for design in mid 1987. The system, known as the Lower Farmington Canal-Littlejohns Creek project was estimated to cost $17 million. Feasibility studies showed that this cost could be met without increasing the wholesale cost of "treated water above the current $140 per AF and by increasing the irrigation water price from $9.12 to $15 per AF. Littlejohn Creek area owners' opposition to the project appeared at the time of the draft EIR in October 1987. It now appears that those owners are prepared to litigate the final EIR. Such litigation could delay the project indefinitely. In order that supplemental water may be available to correct the overdraft soon, the District has proposed alternative projects which avoid Littlejohn Creek. However, the alternatives will have a greater cost; $9 million to $17 million are presently estimated. If the project cost increases, SEWD will need outside assistance if the costs of treated and irrigation water are not to exceed $140 and $15 per acre foot, respectively. The SEWD and CSJWCD Boards favor a gravity supply system, and needs therefore financial assistance of approximately $13 million. Alternatives for funding include: 1) an advance from the state to be repaid by State Water Contract6rs if and when SEWD, CSJWCD, the State Department of Water Resources and the State Water Contractors agree on state participation in a local water storage project which would make some of SEWD and CSJWCD New Melones supply available for State Water Contractors use; 2) increase in the price of treated water; 3) participation by the County of San Joaquin, California Water Service, or City of Stockton; or 4) combinations of the above.