C150008 Feasibility Study

• Contract/PO #: C150008
• Contractor Name: Leroux Creek Water Users Association
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Feasibility Study

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SOCIAL, ECONOMIC, AND PHYSICAL IMPACTS

The project will have no significant social impacts as the site is generally remote and is surrounded
predominantly by private land. There is some Forrest Service land adjacent to the reservoir, but
there is no readily available public access to the reservoir.

There will be no significant physical impacts to the area as the construction will be within the
boundaries of the present reservoir.

The project will have a positive economic impact by providing approximately 15 % of the
irrigation water provided by the Leroux Creek Water Users for 10,000 acres of crop and pasture
land. If the reservoir is not retained in the system, the loss of water in the system is approximately
15 %. If the loss in revenue is nearly the same percentage as the loss in water stored in the system,
an economic loss of up to 15 % a year could be possible. In wet years this would not be the case
and therefore would not be expected each year, In a dry year however, it is possible the crop loss
may be more than the percentage of water lost or not available due to less storage in the system.
Total revenue generated on the irrigated land, as shown in Table 1, is estimated at $4,733,000 and
a loss of 15% of this could be nearly $709,950 in one dry year,

OPINION OF FEASIBILITY

The selected alternative is technically and financially feasible. There are no significant
roadblocks, other than financial, which would keep the Leroux Creek Water Users Association
from successfully completing this project.

The reservoir is important to the Leroux Creek system both for storage and as an equalizer for the
system. Its benefit can not be limited to its storage potential onIy. The Benefit to Cost Ratio is
much greater than 1.0 if the value of the water is regarded in terms of production. If the water
is compared onIy to the current rental rate or value of the water on the open market, the Benefit
to Cost ratio is less than 1. However, one can onIy guess at the value of the water throughout the
life time of the project.

The following summary provides a breakdown of the pertinent benefit to cost ratios,

Total Proiect Cost = Annual CWCB Payment + 10% Company Share Including Interest

$70,680 x 30 years + ($68,775 + 17,064 x 5) = $2,274,495

Total Average Cost Per Year

$2,274,495 ..;- 30 = $75,817

Carl Smith Dam Feasibility

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