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Show THE ALL-AMERICAN CANAL. 57 the distribution of construction costs to power and to irrigation, the apportionment of the canal and power construction costs to the Yuma project and Imperial Valley, the determination of interest and depreciation charges, the apportionment of irrigation operating expenses, and the division of profits from power sales and the like. COST ESTIMATES.1 In adopting the schedule of unit prices noted in Mr. Preston's report, which is submitted as Part II of this report, consideration was given to the high level of prices of labor and materials reached during the war, and it has been assumed that the prevailing high prices will continue throughout the period of canal construction. The installation of the power plant near Pilot Knob is for use during construction, but it has been treated in the cost estimates as though it were a permanent feature of the project. Whether this is the case or not, its installation and use will make cheap power available for construction purposes, particularly on that part of the canal westward from Pilot Knob, thereby reducing the unit costs of excavation and other work below what they would otherwise be. The estimates of the cost of constructing the canal from the Laguna Dam to Imperial Valley on a location entirely within the United States and the cost of making a connection between the present head of the Imperial Canal and the Laguna Dam are presented in detail in Mr. Preston's report. According to the agreement of October 23, 1918, the apparent cost to the Imperial Irrigation District of acquiring from the United States the right to connect with the Laguna Dam is $1,600,000. The agreement provides that this sum is to be paid in installments (without interest). The last installment is to become due in 19 years. It is assumed by this board that if 400,000 acres of Imperial Valley lands not now within Imperial Valley Irrigation District are to be included in the area to be irrigated by a high line canal from Laguna Dam the amount to be paid to the United States on similar terms for the right to connect with the dam will be fixed at $1,900,000. Mr. Preston has added these sums to his cost estimates. They should not be covered by any bond issue except possibly to the extent of installments which fall due at an early date. Being payments to be made «,t a future date they do not, strictly speaking, represent cost. The present value of $1,600,000 due as named in the agreement if discounted at 5 per cent is only about $975,000 and the present value of $1,900,000 payable in similar installments would be only $1,170,000. As presented in the engineer's report, the cost estimates which include these items of $1,600,000 and $1,900,000, respectively, when a bond issue or immediate requirements of funds are under considera- » For details, see report of engineer. |
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Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : California exhibits. |