Three Rivers Levee Improvement Authority February 26, 2007 Presentation to the State Reclamation Board Subcommittee Proposed Feather River Setback Levee

2 Project Goals –Achieving at least a 200 year level of public safety flood protection for south Yuba County with regional, system, and environmental benefits; –Completing the remaining major public safety flood protection elements in 2007 and 2008; and –Achieving a fair and equitable State-local cost share with the local cost share generated through continued development.

3 Overview History of the Setback Levee Benefits of the Setback Levee Design, permitting, and construction schedule Interplay with existing Implementation Agreement and Funding Agreement

4 Overview History of the Setback Levee Benefits of the Setback Levee Design, permitting, and construction schedule Interplay with existing Implementation Agreement and Funding Agreement

5 History of the Setback Levee In 2003 the Yuba County Water Agency completed a Proposition 13 funded feasibility study/programmatic EIR identifying as feasible the Feather River Setback Levee. In April 2005 the prior Reclamation Board approved the approach for Phases 1-3. Phases 1-3 are now substantially complete. The public-private partnership has been essential to public safety success in Yuba County, has resulted in $130 million in flood protection improvements, and has been superior to the unacceptable public safety risk of waiting for the federal Yuba Basin Project.

6 History of the Setback Levee (continued) In May 2006 the Reclamation Board approved an approach for Phase 4 Feather River (strengthen-in- place) and Yuba River. In August 2006 the first Landowner Capital Call was made to fund construction of Phase 4 Yuba River repairs. Phase 4 Yuba River repairs are now substantially complete. In November 2006, following Propositions 84 and 1E, Three Rivers rescheduled the second Capital Call as allowed under the Second Implementation Agreement. –Second Funding Agreement required project selection prior to funding of second Capital Call. –Three Rivers’ cashflow showed no need for capital call at that time.

7 History of the Setback Levee (continued) Three Rivers sought and received conceptual support of Setback Levee from DWR. Three Rivers received written support for Setback Levee from Sutter County, Levee District 1, Friends of the River, SYRCL, Sierra Club, Yuba County Water Agency, and SAFCA. In February 2007, after extensive due diligence, Three Rivers certified the EIR and selected the Setback Levee.

8 Achieves 200 Year Protection Approx. 13 miles Segments 1 & 3 strengthen-in-place Segment 2 setback with new levee construction Phase 4 - Feather River including Setback Levee Segment 3 Segment 2 (Setback Levee) Segment 1

9 Overview History of the Setback Levee Benefits of the Setback Levee Design, permitting, and construction schedule Interplay with existing Implementation Agreement and Funding Agreement

10 Benefits of the Setback Levee 1.Provides superior flood protection for south Yuba County. 2.Provides regional flood protection benefits for Sutter County, Yuba City, Marysville, and Linda. 3.Proposed Setback is consistent with FloodSAFE California and is the most significant structural change to the system likely to be constructed in the next few years. 4.Creates up to 1550 acres of habitat for restoration and mitigation.

11 1. Superior Flood Protection Built to current engineering standards Built with suitable soils (current levee soil is too sandy) Removes river choke point and widens floodway Built away from old river channels Eliminates significant erosion sites Achieves greater than 200-year protection in certain reaches

12 2. Regional Flood Protection Benefits Channel widening creates lower water surface elevations: –Water surface reduction benefits to Marysville and Yuba City (RM 27.0) of 1.3 for 100 year and 1.5 for 200 year. –Maximum water surface reduction (RM23.5) of 2.7 for 100 year and 3.0 for 200 year. Because of the regulated nature of the Feather River and the addition of 1550 acres to the floodway, there are no downstream hydraulic impacts. Regional support letters have been received.

13 Water Surface Elevations Compared to Recent Flood Events WSE = Water Surface ElevationPLM = Project Levee Mile Sources 1/ Sacramento River Flood Control System Evaluation, Initial Appraisal Report, Marysville/Yuba City Area, January 1990, Plates 4 & 7 2/ MBK H&H Report for Alternatives Analysis Report, December 2006, Figures 3 & 15 3/ MBK H&H Report for Alternatives Analysis Report, December 2006, Table 7 Table Developed 2/21/07

14 3. Setback is consistent with FloodSAFE California Proposed project meets or exceeds all of the California FloodSAFE criteria. California FloodSAFE acknowledges that system changes must be made to reduce endless erosion and O&M battle and costs. Proposed project is regularly mentioned by DWR as the type of project that DWR wants to fund.

15 4. Creates up to 1550 acres of habitat for restoration and mitigation The 1550 acres could be used for: –Mitigation Banking –Habitat restoration and enhancement –Agricultural land with flowage easements Adds a significant increment to the existing riparian corridor along the Feather River. Three Rivers will assure that adequate agreements are in place for Three Rivers and/or DWR to perform necessary maintenance in the restoration area.

16 Overview History of the Setback Levee Benefits of the Setback Levee Design, permitting, and construction schedule Interplay with existing Implementation Agreement and Funding Agreement

17 Design, Permitting, and Construction Schedule Segments 1 and 3 are 90% designed. Segments 1 and 3 permitting is underway. Segment 2 design contract to go to Three Rivers Board within 30 days. Phase 4 Feather River strengthen-in-place and setback levee construction to start in Voluntary and eminent domain land acquisition to be handled in stages in advance of construction.

18 Design, Permitting, and Construction Schedule Description J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S Ph1 Yuba Levee Ph2 Yuba, WPIC, & Bear Ph3 Bear Setback Levee Ph4 Yuba Levee Ph1-4 Certification Alternatives Analysis Segment 1 & 3 Alternatives Analysis Segment 2 Engineering/Design Permitting Segments 1 & 3 Land Acquisition Segment 1 & 3 Construction – Bid to Complete Engineering/Design Segment 2 Permitting Segment 2 Land Acquisition Segment 2 Construction - Foundation Construction - Embankment Degrade Existing Levee in Segment Year Facilities Complete

19 Permitting Approach Similar to Bear River Setback Levee, permitting and construction will be handled in two step approach: –First, Three Rivers will obtain all permits to build new “backup” levee (including encroachment permit and 404). Three Rivers will then construct the “backup” levee. –Second, Three Rivers will obtain all permits necessary to remove old levee (including encroachment permit, 404, and 408). Three Rivers will then breach the old levee.

20 Overview History of the Setback Levee Benefits of the Setback Levee Design, permitting, and construction schedule Interplay with existing Implementation Agreement and Funding Agreement

21 Interplay with Existing Implementation Agreement and Funding Agreement As with Bear River Setback Levee, multiple funding sources are required to fund a more extensive project with regional, system, and environmental benefits. Because Three Rivers selected the Setback Levee, Three Rivers and the Landowners are meeting to discuss an amendment to the Funding Agreement to address the changed scope of the project. In addition to the Landowners, to achieve the Feather River Setback Levee, the State will need to provide timely funding to meet project milestones.

22 Three Rivers Projected Cashflow (In millions) Three Rivers Growth in Costs (in millions)

23 Interplay with Existing Agreements (continued) Three Rivers is working closely with DWR and will shortly apply for “Early Implementation Funding” from California FloodSAFE program. Three Rivers is meeting regularly with Landowners to discuss new commitment and expects to report on completed framework at next Subcommittee meeting. Three Rivers requests comments from Reclamation Board at March 16 meeting so that Three Rivers can draft Funding Agreement Amendment for Reclamation Board review at May 2007 meeting. Schedule will be maintained during this interim period so that all improvements can be completed by November 2008.

24 Final Thoughts Three Rivers and the Landowners are committed to three co-equal goals: –Achieving at least a 200 year level of public safety flood protection for south Yuba County with regional, system, and environmental benefits; –Completing the remaining major public safety flood protection elements in 2007 and 2008; and –Achieving a fair and equitable State-local cost share with the local cost share generated through continued development. Three Rivers is dedicated to providing all necessary coordination with the Reclamation Board, DWR, and other resource agencies to achieve this superior project.

Three Rivers Levee Improvement Authority February 27, 2007 Presentation to the State Reclamation Board Subcommittee Proposed Feather River Setback Levee