Page 5 - Yucaipa Valley Water District

Public Water Agencies Participating in WaterFix
February 7, 2018
Page 2

Being prepared and having the option of a staged implementation of WaterFix is
prudent, fiscally responsible and meets the needs of the public water agencies funding
the project. It would allow work to begin on WaterFix, as soon as all necessary
environmental review and permits are complete, which is anticipated near the end of
2018.

The overall cost of WaterFix has not changed, at $16.3 billion in 2017 dollars
(equivalent to $14.9 billion in 2014 dollars). However, the cost of the option of
proceeding with the first stage is $10.7 billion.

The state is preparing a cost-benefit analysis that will be available soon to provide
further information about the economic benefit of protecting a critical source of reliable
water supplies for the state and safeguarding decades of public investment in the State
Water Project.

Participating public water agencies are expected to bring actions to their respective
boards this spring to finalize the necessary agreements and stand up the finance and
construction Joint Powers Authorities.

In addition, DWR will fully evaluate the potential environmental impacts of the staged
implementation option and expects to issue a draft supplemental Environmental Impact
Report in June of 2018, with a final in October 2018. The additional information
developed for CEQA will also be used to supplement the Endangered Species Act,
Section 7 and California Endangered Species Act, Section 2081 record. DWR does not
expect substantial change to the Biological Opinions or Section 2081 Incidental Take
Permit issued in 2017. Preliminary modeling indicates that there are no new water
quality or aquatic issues related to staging the implementation. DWR expects no
changes in impact determinations and no changes to mitigation. Thus, DWR will be able
to immediately implement this option, in addition to the project already analyzed under
CEQA.

Having worked hard to fix a significant infrastructure and environmental problem, DWR
is eager to move forward with you to protect the Delta and our water supplies.

Karla A. Nemeth
Director

cc: (See distribution list.)

Yucaipa Valley Water District - February 13, 2018 - Page 5 of 100