Laserfiche WebLink
<br /> <br />. <br /> <br />CRAnER III <br /> <br />BASES FOR ANALYSES <br /> <br />Bene~it-cost Analyses <br /> <br />Estimates were made of average annual benefits ~rom various project <br />purposes as previouslY discussed. Consideration also was given to direct <br />and indirect bene~its that would be lost on land acquired ~or project <br />~eatures. The losses o~ direct bene~its were calculated only ~or public <br />or ~orest lands since private lands would be purchased and the cost of <br />purchases was considered equal to the direct bene~its lost. <br /> <br />. <br /> <br />Annual equivalent costs considered ~or comparison with the bene~its <br />include construction costs, annual operation, maintenance, and replace- <br />ment costs, and interest during construction on construction costs. The <br />annual equivalent value o~ the construction costs and interest during <br />construction was determined by amortization o~ these costs over a 100- <br />year period at 5t percent. The estimates o~ annual equivalent costs for <br />all the plans anaiyzed include costs ~or existing storage in the main stem <br />regulatory reservoirs o~ the Colorado River Storage Project since such <br />regulation is a prerequisite to further development in the Upper Colorado <br />River Basin. These costs are based on a rate o~ $2 ~or each acre-~oot o~ <br />annual stream depletion caused by a development. The analyses for plans <br />utilizing Ruedi Reservoir storage also include a cost ~or this storage. <br />This cost is $6. 50 ~or each acre-~oot o~ storage water used as explained <br />on page 22. <br /> <br />Consideration waS not given in the bene~it-cost anaJ.;yses to disecon- <br />omies attributable to increases in salinity of the Colorado River system <br />since no monetary value was assigned to such diseconomies when these <br />analyses were made. It is anticipated, however, that the diseconomies <br />will be considered in any further studies made o~ the project. <br /> <br />Financial Analyses <br /> <br />Cost allocations for the various plans were made by the separable <br />costs-remaining benefits method or the use-o~-faci1ities method. Inter- <br />est during construction and conversions between annual and present worth <br />costs and benefits were ~igured on the basis o~ ~ percent interest rate <br />factors. A lOO-year time period was used. <br /> <br />Applicable laws '!Tere ap:plied in analyzing payment aspects of the <br />various plans. These include the Colorado River Storage Project Act of <br />April 11, 1956 (Public Law 84-485) and the Federal Water Project Recrea- <br />tion Act of July 9, 1965 (Public Law 89-72). <br /> <br />. <br /> <br />All operation, maintenance, and replacement costs would be paid by <br />the project bene~iciaries. Construction costs allocated to water for <br />municipal and domestic and outdoor residential uses would be reimbursa- <br />ble with interest and would be paid within 50 years'~ollowing the ~irst <br />us e o~ the water. Construction costs allocated to' irrigation wculd be <br /> <br />27 <br />