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upr000153 5

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upr000153-005
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    Los Angeles - March 24, 1950 File: 80-8 M E M O R A N D U M In connection with Mr. Adamson's letter to Mr. Reinhardt of March 23d and the supplement thereto relative to analysis of the Greeley and Hansen Report of cost of the proposed water district facilities and in connection with the annual cost of operating these facilities, including the servicing of the bonds. In the Greeley and Hansen Report, on Page XIX, they assume 3$ interest bonds retired over a 30-year period and state the annual payments therefor are 5.102$ of the first cost. In Table 21 of the Greeley Report, they show for 1950 an annual payment of $102,000 which figure is presum­ably 5.1$ of |2,000,000.00. They also show an annual pay­ment of $120,500 representing 5.1$ of approximately $2,750,000 which is presumably their capital expenditure for new facilities as of 1950, or total annual payments to ser­vice the bonds of $230,500.00. They then show the mainten­ance and water costs (no power costs being included) for 1950 of $31,800 and operation and administration costs of $53,800, or a total of those two figures of $85,600.00. This presumably includes maintenance of the present facilities of the water company and the railroad company as well as all