WSP04498

• File Number: 8276.120
• Description: Grand Valley Unit-Colorado River Basin Salinity Control Project
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 6/1/1983
• Title: Supplement To Definite Plan Report: Stage Two Development Grand Valley Unit
• Water Supply Pro - Doc Type: Definite Plan Report

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CHAPTER V

STAGE TWO PLAN OF DEVELOPMENT

the existing earth laterals because of increased personnel costs and

expenses resulting from lateral repair and replacement. OM&R costs for

the unit are shown in Table 8.

Tab le 8
Annual operation, maintenance, and replacement costs
(January 1983 prices)
Labor Equipment Total

Stage Two
Irrigation facilities
Wildlife facilities
Subtotal

Stage One
Irrigation facilities
wildlife facilities
Subtotal

Grand Valley total

$l2,000
28,000
40,000

$ 3,000
6,000
9,000

$15,000
34,000
49,000

2,000
6,000
8,000
48,000

1,000
1,000
2,000

11 , 000

3,000
7,000
10,000
59,000

Financial and Economic Analysis

Cost effectiveness analysis

The preliminary annual cost for each mglL of salinity reduction

in the Colorado River at Imperial Dam, or cost effectiveness, that

would result from construction on Stage Two is estimated at $6l8,000 per

mglL based on an annual equivalent cost of $8,717,000 and an annual

salinity reduction of 14.1 mg/L. Cost effectiveness is the annual cost

of reducing concentration of the Colorado River at Imperial Dam by

1 mg/L. This criterion is being used by Reclamation to determine which

salinity control units and increments of units have the greatest poten-

tial for salinity reduction for the least money expended.

The annual

equivalent cost includes the annual value of the capital investment amor-

tized over the estimated 50-year life of the development at an interest

rate of 5 5/8 percent. The 5 5/8 percent rate was used because it was

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