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