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<br />v. COST-BENEFIT CRITERIA <br /> <br />It is estimated that the Colorado satellite~linked water resources moni- <br />toring system provides benefits to the state of Colorado amounting to between <br />$1,337,000 and $1,505,000 per year. These benefits will increase as the <br />system becomes further assimilated into the statewide administration and <br />management of water resources. Benefits will also increase dramatically <br />during periods of water shortages as compared to current periods of water <br />surpluses. Since the cost to operate the system in FY 86-87 was $280,014 <br />{$193,774 in direct costs and $86,240 in indirect costs}, the net benefit to <br />the state of Colorado is between an estimated $1,057,000 and $1,225,000. If <br />the original capital cost of the system of approximately $1,500,000 is <br />amortized simply over a 5-year period, net benefits realized are between an <br />estimated $757,000 and $925,000 per year. <br /> <br />Direct and indirect benefits are calculated as follows: <br /> <br />1. Approximately $5,290,000 per year is budgeted by the Office of the <br />State Engineer for statewide water rights administration. If the <br />operation of the satellite-linked monitoring system conservatively <br />increases effectiveness by 10%, that equates to a benefit of $529,000 <br />per year. Direct benefits are attained by water commissioners having <br />more time for water administration and reduction in over-time to <br />accomplish ever increasing workloads. Indirect benefits relate to <br />the ability to be more effective in water rights administration, <br />This leads to greater cooperation among water users and fewer legal <br />problems. <br /> <br />Despite the fact that the number of water rights increased from <br />102,028 in 1982 to 121,415 in 1987 {increase of 19%}, the number of <br />water commissioners decreased from 94 to 93. These statistics <br />indicate that based strictly on the number of water rights, the <br />number of water commissioners should have increased by twenty. We <br />must also consider the increased workload due to the growing <br />complexity being incorporated recently into water rights adminis- <br />tration. The monitoring system cannot be expected to replace the <br />need for twenty additional water commissioners, but can compliment a <br />moderate increase in water commissioners. If the system can <br />potentially eliminate the need for ten additional water commis- <br />sioners, savings may be an estimated $350,000 to $400,000 annually. <br />The responsibility of water rights administration is a statutory <br />responsibility given to the State Engineer. The necessary personnel <br />and tools to carry out this responsibility must also be provided. <br /> <br />2. It is calculated that in an average year, between 42,000 and 56,000 <br />acre-feet of water can be saved for use in Colorado through utili- <br />zation of the system. At a conservative price of $12.00 per <br />acre-foot of water, this amounts to between $504,000 and $672,000 <br /> <br />-71- <br />