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i ! months of additional evaporation for water regulated and transferred to Kansas. (Helton & Williamsen, June 1998). LAWMA's 1997 replacement plan projected a transfer of 10,400 acre-feet to the Offset Account in addition to the Storage Charge Water resulting in a cost of 925 acre-feet. Assuming an ann~al value of $25 per acre-foot ($577 per acre-foot capitalized at 3.0 percent for 40 years), the estimated economic cost to LA WMA in 1997 would have been $23,125. Actual costs in the spot market for water may have been less than this. Overall Economic and Financial Feasibility i I With regard to th~ overall economic and financial feasibility of LA WMA' s water rights acquisition and augmentation program, Helton & Williamsen prepared a spreadsheet of LA WMA's revenUe and expenditure projections through the year 2038 (copy attached). The expenditures .include operating, legal, and engineering expenses as well as debt service on four CWCB loans; two feasibility study loans and the two loans for water rights purchases. : The analysis indic:ates that LA WMA must generate about $462,000 annually beginning in 2008. The cost to .mainstem well owners through their annual assessments would be about $6.07 per aqre-foot pumped for augmentation water. Based on information provided to us by ,Helton & Williamsen in 1997, the total cost to mainstem irrigators to include augmentation, energy costs, and maintenance and replacement will amount to about $22 per year per acre-foot pumped. As stated in the May 1997 presentation to the Board, we believe the program is economically and financially feasible. Recommendation: We recommend that the Board approve LA WMA's request to amend Contract No. C153768 to allow the purchase of shares in the Amity Mutual Inigation Company at a price equivalent tQ about $675 per acre-foot or at a price approved by the Director of the CWCB. We further recommend that the contract be amended such that LA WMA would be allowed, with the approval of the Director of the CWCB, to purchase any number of shares in the AmitY Mutual Irrigation Company, the Fort Bent Ditch Company or the Highland Irrigatio~ Company, or any combination of shares in the three companies, up to the limit of funds ~vailable under the contract. All shares purchased would be pledged as collateral for the loan. Cc: Don Higbee, LA WMA Mely Whiting', Moses, Wittemeyer, Harrison and Woodruff Tom Williamsen, Helton & Williamsen Linda Bassi, AGO Attachments 4 , 4 j . - " - ,