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8 9 AnnualbmtJft The contractual arrangements may include provision for va.riable annual repayment reflecting both economic and overall wat,er supply conditions. As provided in the Federal Waier Project Recreation Act, a non- Federal public hody would be responsible for the repayment wit,h interest of $691,300, which represents one-half of separable costs allocated to fish and wildlife enhancement 'LOd includes $24,900 interest durin~ construction, and would bear all of the separable annual operat.\On and maintena.nce costs eBt.imn.ted a.t $30,100. Re- imbursab]e costs allocated to recreation for which it would be respon- ,ible total $l,~57 ,?oOO, which include; ':;29,500 inwreo\. during cono\.ruc- tion. Separable operation and maintenance costs are estimated at $204,200, We antieipate the State of Colorado will indicate in writing its intent to agree, as required by the act, to bear these costs and to administer tbe land and water areas for recreation and fish and wildliIe enhancement. Such an agreement would be a prerequisite to commence- ment of construction or the unit, The remaining costs allocated to fish and wildlife enhancement ($6,080,800), recreation ($ 1\ ,085,700), 1I00d control ($19,150,:100), find the Federal share o[ road rdoca.f.ion costs for highwa.y improve- ment ($]39,000) tot,,] $36,455,800 and would bc nonreimbursable as provided by le.w, Nonreimbu.rsB.ble annual operation I maintenance1 and replecement costs total $32,100, which was allocated to fish and wildlife enhancement ($\2,900), recreation ($9,900), and flood control ($9,300), A table comparing the foregoing analysis of the alternative plan of development for the Narrows unit, with ihe analy,is presented in lihe regional director's report or JanullI'Y 19B7, which was summarized earlier in Lhis proposed report, is attached. Local interest in wa.ter resource development has been high ill tbe unit area from the time of settlement. The Lower South Platte Water Conservancy District was forIlled on May 61 1964, to assume the responsibility for repayment of project cOots following authoriza- tion of the unit, The conservancv district ha.s demonstrated interest in and support for the unit. That support has intensified since the June 1965 flood with many requests for early construction of the unit. Tbe glan is also strongly oupporte,d by tbe Colorado Water Conoerva- tion Board, other State agencies, and by communities and service organizations in t.he area. The proposed Narrows unit represents a desirable and urgcnUy needed wflter resource developmp-nl that would strengt.hen tbe econ- omy or the area, the State, and tbe N alion. Since eith~r the plan set eorth in the attached regional director's report and sUIDnlarized in this report or the alternative plan described herein is engineeringly feasible and economic.ally justified and would rc..'mlt in a desirable develop- ment., I recommend that lhe State of Colorado be gi,ren the oppor- tunity to submit its views and recommendatioTls concerning tue plan that offers thp. degree of development most consistent with the needs and desires of the State, I t.here(ore recommend thnt you approve nnd adopt this report as your proposed report on the Narrows Unit, Missouri River Basin project, Colorado, llud that. you I\utborize me in your bebalf to tra.ns- forgone which, in effect, would reduce the annual water slIpply avail- able to irrigation by II ,000 acre-feet annually resulting ill an osti- mated supply of 108,400 acre-reet, Our reevaluation shows that the estimated total construction cost (October t965 price levels) o[ the Narrows. Unit would increase to $62,520,000, Interest during construction would add $4,918,600, mak- ing the total inve'i'tment. COB\' $67,438,O{)() COT' the atternat.ive pla.n as compared to $66,738,600 in tbe regional director's report. Operation, maintenance, and replac.ement, costs would increase from $216,500 to $286,500 anoul1lly. Tbe annual costs of tbe unit. for economic analysis, which includes the annual equivalent of lihe net project investment !l'od annual operation, maintenance, and replacement costs, would IOcrease from $2,275 200 to $2,368,200, The economic aDd financial aspects of the alternative plan are as follows: Ft.nctiom Irrigat.ion: Direct_______ .___ ___________ ____ _____ _ .___ _______. __.____ ~~~~e:5ti~ .O:1\f.-&-R-_~~: ~ :=_ ~ == = = ~=:: === ~ ~==~ ~~ =~: ~=: _ ____ Total ___________~___.___ ___~_____.__________.___ Flood controL _ _ _. _ _ . _ _ . ~ _ _ _ ~ _ _ _ _ _ ~ _ ~ _ _ _ ~ _ _ _ _ _ _ _ _ _ _ _ . ~ _ _ _ ~ _ _ _ Fish and wildlife enhancement: NationaL _ _ ~ __. ~ _~ ___. _~h __ _ . _ __. __ _. _ __ ~ __ _ ~__ __ _. _ ~ _ __ Local_. __ _ ___ ___ _ __~ _ __~ _ ___ _ __ _ _ _ __ _. _ _. ____ _ _ __ _ __~ ~ __ Total __ _ __ Recreation (~dj~;te~f to'; ti-~~ -~nd -rate -of dev~io-pme~-L) =: ~ ~ = = = = ~ = = $1, .254, 500 1 BO, BOO 16,000 ], 4e], 400 061,000 51,000 ~i76, 700 427,700 1'75, 200 Total net, benefitB-.___ ___ h__ _ u__. _ __ A __ _ _ __ _ __ _ _ __. _. _ 3,725,300 Direct net. henetita..______________.___h________________ 31534,400 , The benefit-cost ratio for tbe modified plan, based on the foregoing, IS 1.57 to 1 for total benefits and 1.49 to 1 for direct benefits only, The cstimaied cOots of the modified plan have been allocated ao follows: Function Int.rest tQn~~:~iQn Tot!1 Construction "'... c.~i!~~l?tf,~~i~:::~:::::::::::::'..::::::::::,:::::,'::,:::: Loc!L_ ~....."'cre.tion_.: :::: ::=::::_=:::::::::::~~: :~:~:::::_:::::. ~::::::~: {, - Tot.L....____________.___._____._____._____._____._____.__ $23,970.(0) 19.150,:300 1:39,000 886.:300 5,860.900 12,513,500 62,520,000 U.9ll3,70Q 1,591,100 Il,6QO 55,100 422,200 8!l4,900 4,9lS.601J "..... ~5.953,700 20. T41, 4110 1~0.600 941,400 6.283.100 13,368,400 67,438.600 All of the conotr\lction costs a\located to irrigation ($23,970,000) would be reimbursable without interest with.in 50 years. Annual ?p~rat~on, maintenance. and replflcement expenses allocated to ungatlOD are $20,100. AJI of these c.osts would be repaid from annual ad valorem tax revenues estimated at. $17,000, annual service charges from Jnckson Lake Reservoir interests ($10,000), and a fixed annual obligation ($472,500) to return tbe irrigation costs within 50 years.