Joint WRAP Update Meeting III

1. Joint WRAP Update Meeting III January 26, 2009

2. WELCOME… • Thank you for joining us • Please sign in • Tonight’s topic… How we plan to meet the County’s future water needs while protecting the aquifer for generations to follow.

3. Key requirements of WRAP Part II • Descriptions of new water supply sources and strategies to meet projected water demands; • Description of infrastructure requirements for each new water supply source; • Timelines for design/construction of infrastructure projects; • A letter from a surface water or alternative source supplier indicating availability of water and willingness to meet the LVGUs’ demands, as applicable;

4. Key Requirements of WRAP Part II Continued… • Description of costs and methods of financing water supply and infrastructure; • Preliminary engineering of infrastructure necessary to meet water demands for the January 1, 2015; • Conceptual engineering of the infra-structure necessary to meet future water demands beyond the 1/1/2015 initial conversion date; • A copy of the written agreements for participants in a Joint WRAP.

5. Section 2 -- Water Demand

6. Section 2 -- Water Sources

7. Section 2 -- Conversion Strategy

8. Section 3 – Evidence of Availability and Willingness to Supply Water Memorandum of Understanding is being developed between the City of Houston and SJRA.

9. Section 4 – Infrastructure 2015 – Raw water intake structure and water treatment plant at Lake Conroe. In the first phase, begin delivering surface water to The Woodlands and City of Conroe.

10. Section 4 – Infrastructure 2015 – 2045

11. Section 5 – Program Costs • CAPITAL COSTS: • Planning, permitting, design • and special studies/services • Construction • Construction management, • testing and inspection • Environmental mitigation • Land/easements • Inflation • Legal and Financing • Contingencies

12. Section 5 – Program Costs

13. Section 5 – Program Costs • Debt Service • Operations and Maintenance • Purchased Water (Including reservation fees) • Reserve Costs

14. Section 5 – Program Costs

15. Section 6 – Financing Alternatives • Potential Financing Alternatives Include: • Open Market Bonds • TWDB WIF Deferred Low Interest Loans • TWDB WIF Construction Loans • Other State/Federal Programs

16. Section 6 – Financing Alternatives • Potential Payment Alternatives Include: • Legislated GRP fee • Long-term contract between SJRA and Customers

17. Section 7 – Program Schedule -- Traditional Project Delivery

18. Section 7 – Accelerated / Alternative Project Delivery

19. You are invited to attend an important meeting! • Water Conservation Workshop • February 12, 2009 • 9 a.m. – 4 p.m. • Hosted and co-sponsored by • SJRA,WJPA, LSGCD • Featuring…. • State and National Speakers • No Admission Charge • Additional Details, Agenda, • Speaker Information Online • Register Online… • www.WaterConservationWorkshops.com

21. The water we conserve today can serve us tomorrow…

22. Potential Source Study Potential Source Study

26. Potential Source Study SJRA Water Rights

29. Surface Water Supply Demands Trinity River Lake Livingston Lake Conroe Montgomery County 25,000 afpy– 2015 50,000 afpy – 2025 75,000 afpy– 2035 100,000 afpy- 2045 West Fork San Jacinto River Trinity River Luce Bayou Lake Houston Highlands 80,000 afpy Highlands Reservoir

30. Water Rights Trade SJRA Trinity River Rights for COH Lake Conroe Rights Trinity River Lake Livingston Lake Conroe COH Lake Conroe Rights SJRA West Fork San Jacinto River Trinity River Luce Bayou Lake Houston SJRA Trinity Rights COH Highlands Reservoir

31. Trinity River Water Rights Trade SJRA San Jacinto Rights for COH Lake Conroe Rights Lake Livingston Lake Conroe COH Lake Conroe Rights SJRA West Fork San Jacinto River Luce Bayou Trinity River Lake Houston SJRA San Jacinto Rights COH Highlands Reservoir

32. Trinity River Purchase of COH Lake Conroe Rights Lake Livingston Lake Conroe COH Lake Conroe Rights $ SJRA COH West Fork San Jacinto River Luce Bayou Trinity River Lake Houston Highlands Reservoir

33. SJRA Participation in Luce Bayou for COH Lake Conroe Water Trinity River Lake Livingston Lake Conroe COH Lake Conroe Water SJRA $ SJRA COH West Fork San Jacinto River Luce Bayou Trinity River Lake Houston Highlands Reservoir

34. Long-term Water Supply Contract With NHCRWA Trinity River Lake Livingston Lake Conroe West Fork San Jacinto River SJRA Luce Bayou Trinity River $ Lake Houston NHCRWA COH Highlands Reservoir

35. Long-term Water Supply Contract For COH Lake Conroe Water Trinity River Lake Livingston Lake Conroe COH Lake Conroe Water $ COH SJRA West Fork San Jacinto River Luce Bayou Trinity River Lake Houston Highlands Reservoir

36. Long-term Water Supply Contract For TRA Trinity River Water Trinity River TRA Water Lake Livingston Lake Conroe $ TRA SJRA West Fork San Jacinto River Luce Bayou Trinity River Lake Houston Highlands Reservoir

37. Trinity River TRA Water Lake Livingston Lake Conroe COH Lake Conroe Water TRA COH $ SJRA West Fork San Jacinto River Luce Bayou Long-term Water Supply Contract For COH Lake Conroe Water and TRA Replacement Water Trinity River Lake Houston Highlands Reservoir

38. SJRA Trinity River Rights for Montgomery County Trinity River Lake Livingston Lake Conroe Trinity River SJRA Trinity Rights Luce Bayou West Fork San Jacinto River Lake Houston Highlands Reservoir

41. Potential Source Study Capital Costs