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M E M O R A N D U M In connection with Hr. Adamson* a letter to Hr. Reinhardt of March 224 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 Rage XIX, they assume Z% Interest bonds retired over a 20-year period and state the annual payments therefor are 5.102# of the first cost. In Table 23, of the Greeley Report, they show for 1950 an annual payment of fXG2,C00 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 f o r 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 coats 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 veil as all >C Los Angeles File: -8 H0a-r8oh 24, 1980