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ECONOMIC ANALYSIS <br />The economic benefit of the project has a very favorable cost/benefit ratio. The <br />primary values (benefit) that will result from the project are the following, two of which <br />are monetary and the third environmental. <br />1. Dredging is now required to make releases when the water level drops below <br />elevation 4247 (seven feet above the dead pool). Dredging has been performed only <br />one year in seven in the past, although it should have been performed more <br />frequently. The continued influx and movement of sediment in the reservoir has <br />exacerbated the problem. During the last 30 years the minimum water elevation has <br />been below the elevation that now required dredging (4247) 19 times. The cost for <br />dredging in the last three years has averaged $128,000 per year. If the channel is <br />not reconstructed, the present value of future maintenance dredging for 30 years will <br />be $1.64 million. (Table IV provides the historical data and the calculation). <br />2. Even with dredging, the lowest feasible elevation that the existing system can reach <br />is 4242.0, leaving an additional two feet of dead pool and 1,400 acre -feet of water <br />that is inaccessible. The new channel will be designed to access the reservoir pool <br />down to elevation 4240.0. The value of the added, accessible storage will be at least <br />$1.4 million (based on a long -term value of $1,000 per acre - foot). <br />3. The total benefit that will result from the project is about $3.1 million. For a cost of <br />$1.5 million the benefit/cost ratio is therefore 2.07:1 <br />TABLE IV - FUTURE MAINTENANCE DREDGING WITHOUT THE PROJECT <br />The projected need for maintenance dredging is based on when the historic minimum <br />water elevation was below 4249, the level at which some level of dredging is currently <br />required to allow releases below that level. <br />STORK; FUTURE Minimum Water Maintenance Dredging Present Value at Rate of <br />YEAR YEAR Level Cost <br />4.00% <br />1973 <br />1 <br />4245.08 <br />$ <br />128,000 $ <br />1974 <br />2 <br />4242.15 <br />$ <br />128,000 $ <br />1975 <br />3 <br />4242.15 <br />$ <br />128,000 $ <br />1976 <br />4 <br />4242.15 <br />$ <br />128,000 $ <br />1977 <br />5 <br />4242.15 <br />$ <br />128,000 $ <br />1978 <br />6 <br />4242.15 <br />$ <br />128,000 $ <br />1979 <br />7 <br />4242.15 <br />$ <br />128,000 $ <br />1980 ' <br />8 <br />4242.15 <br />$ <br />128,000 $ <br />1981 <br />9 <br />4242.15 <br />$ <br />128,000 $ <br />1982 <br />10 <br />4242.15 <br />$ <br />128,000 $ <br />1983 <br />11 <br />4242.15 <br />$ <br />128,000 $ <br />1984 <br />12 <br />4252.87 <br />$ <br />- $ <br />1985 <br />13 <br />4251.71 <br />$ <br />- $ <br />1986 <br />14 <br />4252.02 <br />$ <br />- $ <br />Lake Meredith Res. Co. <br />Feasibility of Outlet Channel <br />128,000 <br />123,077 <br />118,343 <br />113,792 <br />109,415 <br />105,207 <br />101,160 <br />97,269 <br />93,528 <br />89,931 <br />86,472 <br />3/7/03 <br />Page 9 <br />