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<br />.. <br /> <br />9. In summary, the funds presented above as due the Board for <br /> <br /> <br />damages and losses to its facilities because of the Chatfield Project <br /> <br /> <br />are considered reasonable and afford a sound basis for negotiations with <br /> <br /> <br />the Corps to reach a rapid and mutually satisfactory agreement. It should <br /> <br /> <br />be pointed out that certain items have been excluded which could be <br /> <br /> <br />included in determining the damages and losses of the Board. Projecting <br /> <br /> <br />costs and operating procedures long di8tances into the future is hazardous <br /> <br /> <br />at best. In the interest of achiev1ilg an agreement between the Board <br /> <br /> <br />and Corps at an early date, the items listed below have not been used <br /> <br /> <br />in determining fUnds due the Board: <br /> <br /> <br />a. Inflation of annual operation and maintenance costs. <br /> <br /> <br />Present day costs were capitalized with no allowance for <br /> <br /> <br />inflation. <br /> <br /> <br />b. Future costs of a water supply, transmission, and <br />treatment project as a ba8is for estimating cost of re- <br />placement water. Actual costs of the Blue River Project <br />were used in determining replacement water cost. <br /> <br />- 12 - <br />