AZ vs. CA:12 California Exhibits, Vol. XII; Nos. 1350-1383; 1400-1446; 1501-1518; 1601-1603; 1701-1703

page 24

-24- CALIFORNIA DEFENDANTS Exhibit No. 1701-J Identification:........................... Admitted: Aug. 6, 1957 The repayment obligation includes $3,994,000 for construction costs of the water distribution system, $297,167 accrued operation and maintenance charges, and $1,350,-000 as the estimated cost of buildings and equipment to be transferred to the water users, drainage facilities that may become necessary, and installation of additional pump capacity if required. The contract provides for ultimate transfer of operation and maintenance of the water distribution system to the District. Landowners with Federal predevelopment mortgages covering costs of developing their lands for irrigation will have the balance of the costs funded as part of their construction obligation, for repayment over the 60-year period. Previously, the Government had required that the mortgages be retired in 30 years. While the total costs of the project will not be determined until completion of construction and a final audit, the Act of January 28, 1956, provides a basis for figuring nonreimbursable costs. These nonreimbursable costs were estimated as of June 30, 1954, at $6,008,466. Irrigation water for the Gila Project is diverted from the Colorado River by Imperial Dam. Other works include the Gila Canal and the Yuma Mesa Pumping Plant. XXX