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flo <br />incr <br />IRC. <br />Page 2 of 3 <br />to ensure that (he method used for inflating the reimbursable cap best reflects the <br />;s in joint construction Costs due to inflation, an alternative method for calculation i�f the <br />s developed. <br />The modified method of calculating the IRC (see attached table) is as follows: <br />7'c+ciilculatc au appropriate indexing percentage - <br />TO <br />Utilizit <br />lntcriri: <br />n�cthnr <br />lower c <br />Cost <br />If you <br />The non - Indian reimbursable baseline of $43,000,000, which was established by Section 207 of <br />P.t.. I08 -447, is reduced by the amount of the imn- Indian pre -1999 sunk costs and the <br />CWIU3DA specific costs (from the i)tcrim Cost Allocation (ICA) for- the Jammr-y 2003 CCai) to <br />establish a baseline amount to be indexed. <br />I"he non-.Indian reimbur.:ablc costs from the ICA for the Jaimary 2003 CCG w-e reduced by the <br />CWRfDA. specific costs and the pre -1999 sunk costs. <br />T7tc baseline amount to be indexed is divided by the adjusted non- Indian reimbursable costs to <br />establish an indexing perccnbige. <br />the indexing percentage to updated epsts — <br />The FY2009 Interim Cost Allocation non- Indian reimbim-,able total is reduced by the FY2009 <br />CWRPDA specific costs and the pre -1999 sunk costs. <br />"fire result is multiplied by the indexing percentage to obtain rui inflated) baseline. <br />7 -he total of the non - Indian pre -99 sunk costs and the current CWRPDA specific costs trim the <br />FY09 Interim Cost Allocation is added to tic: inflated baseline In calculate the balance to be <br />repaid. <br />g the original rnetlwdoluby, the IRC would have been $49,120,922 for the F'Y2009 <br />Cost Allocation, ae shown in upper box of the atmelted table. Utilizing the modified <br />)logy, the IR.0 is $48,070,101 for the FY2009 Interim Cost Allocation, as shown in the <br />gltt box of the attached table. This adjmsttrtent to the calculation of the IRC snore closely <br />its increases iii joint costs due to inflation. As such, this method will be used in future <br />locations, provided no significant objections are raised by you or your agency. <br />any questions, PlUa%C contact Ryan Randol at 974- 385 -0531. <br />�J <br />Sincerely, <br />Carol DeAngelis <br />Area Manager, <br />Westem Colorado Arcs Office <br />T;nclosu c <br />Identica Letter Sent To: <br />Continu d on next page. <br />