WSP04816

• File Number: 8273.800.10
• Description: Colorado River Basin Salinity Control - Federal Agencies - Joint Reports
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 1/1/1992
• Title: 1991 Joint Evaluation of Salinity Control Programs in the Colorado River Basin
• Water Supply Pro - Doc Type: Report/Study

.....
w
co
w

Appendix - Repayment Analysis

The Lower Colorado River Basin repayment
spreadsheets provide a comparison of estimates
between the net revenues from the Lower
Colorado River Basin Development (LCRBD)
Fund and Lower Colorado River Basin States
(Arizona, California, and Nevada) share of
reimbursable costs for salinity control projects.
The reimbursable costs to the States are based
on capital and operation and maintenance
(O&M) costs spent as of 1990, budgeted costs
(capital and O&M) for 1991 and 1992, and
projected costs from 1993 to 2010. Projected cost
estimates from 1993 to 2010 are based on the
full implementation of the salinity program to
meet the salinity target level in 2010. The
repayment spreadsheets assist program
managers in developing an implementation plan
of salinity projects that meet the salinity
numeric criteria at the three stations on the
Colorado River (Hoover Dam, Parker Dam, and
Imperial Dam).

Projects in the implementation plan are either
completed or are in various stages of planning
and construction. Cost estimates for those
projects being planned or constructed are in
"1990" dollars. Cost estimates for the projects
were obtained from various sources and are on
record in the Bureau of Reclamation
(Reclamation) and the Soil Conservation Service
offices.

The reimbursable portion of these projects to the
Lower Colorado River Basin States is based on
two repayment fonnulas determined by Public
Law 93-320 and Public Law 98-569.

Reclamation projects authorized under Public
Law 93-320 are Grand Valley Stage One, Grand
Valley Stage Two, Las Vegas Wash, and Paradox
Valley. The repayment formula that is applied
after project construction is completed consists
of 25 percent of the total investment cost as
reimbursable by States and 85 percent of the
reimbursable portions to be paid by the Lower
Colorado River Basin States over a 50-year
period. The formula applied in the spreadsheet
is (total investment costs x 0.25 x 0.85)/50 years.
Repayment ofO&M costs applies a similar

formula (annual O&M costs x 0.25 x 0.85), and
repayment is in the next year after the costs are
incurred.

The repayment formula authorized under Public
Law 98-569 is annual projects costs (capital and
O&M) x 0.30 x 0.85. Reclamation projects
covered by this repayment fonnula are Lower
Gunnison Basin Unit (winter water), Dolores
Project (salinity control portion), Price-San
Rafael, San Juan River-Hammond portion, and
G1enwood-Dotsero Springs.

Major adjustments to the 1990 Joint Evaluation
Report (JER) repayment analysis are as follows:

1. Project costs (approximately $40.4 million)
for the Bureau of Land Management program
have been eliminated from this analysis. These
costs are not covered under Public Laws 93-320
and 98-569.

2. A transfer of approximately $11.5 million
in 1991 was made from the LCRBD fund to
Reclamation's Upper Colorado Region. This
transfer represents an advanced payment for
Hoover Dam power deficiency. From 1992 to
.1998, Hoover Dam deficiency payments are
approximately $1.5 million, and a final payment
of approximately $730,000 would be made in
1999.

3. Changes in total investment costs were
made from the 1990 JER repayment spreadsheet
for the following projects:

a. Grand Valley Stage Two - $1.22 million
decrease

b. Paradox Valley - $722,000 decrease

c. Lower Gunnison (winter water)-
$10.2 million decrease

d. Dolores (salinity control) - $10.0 million
increase

e. Moapa Valley - $820,000 increase

19