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Rainbow Ranche Collection

Letter from Water Rights Branch to James Goldie, March 22, 1945 Water Rights Branch, Department of Lands Mar 22, 1945

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 S>ot3.*"*.oA. o*>. ^5
all communications in reference to water
a**       matters should be addressed to
Comptroller of Water Rights,
Parliament^Buildings. Victoria. B.C.
Victoria, B.C March.22^ .1345.
DEPARTMENT OF LANDS
WATER  RIGHTS  BRANCH
James Goldie, Esq.,
Rainbow Ranch,
Okanagan Centre, B. C.
Dear Sir;
Please refer to File No. 0100587.
I received your letter of the 13th instant and the Weston
report which I have read with interest,and will return in a few days.
The report indicates that the water users at Winfield and
Okanagan Centre will be faced with relatively high irrigation charges for some
years irrespective of whether the District acquires the Company's works or
continues under the existing arrangement.
If the Company is left in control it may be assumed that it
will do no more toward renewing the works than the Public Utilities Commission
requires it to de, and, I think it may also be assumed that the Commission will
not order it to spend more than it gets from the water users. If these assumptions
are correct and if Mr. Weston's appraisal of the present condition of the twenty-
two inch pipe is also correct, the system will not be able to function satisfactorily-
very much longer, and the Oompany will have to give up control when a breakdown
occurs that it cannot finance* The replacement of the sections of the twenty-two
inch pipe that are due for immediate replacement will cost approximately #90,000.00.
If the #8.00 rate will provide only about #10,000.00 for replacements, it would
take nine years to renew this pipe alone.
If the Oompany should be obliged to give up control it would seem
reasonable that its claim to compensation for the existing works would vanish because
it has no legal title to the lands on which the works are and, consequently, could
not prevent the District from taking possession.
If the District purchases the system at #75,000.00 and borrows
$150,000.00 to replace the works that require immediate replacement, it will be
faced with an annual expenditure along the following lines.
Interest on #225,000.00
Repayment of Principal
Operating Costs
Replacement requirements from
1946 to 1959  (averaged)
#9,000. to #10,125.
#4,000 to #5,000.
#9,000.
#7,500. which would mean annual charges of from #14.50 to #15.70 per acre or
from twenty to thirty per cent more than the eight-dollars-an-acre-foot
rate will provide.
If these calculations are reasonably sound I would think
you could demonstrate to Mr. Howard that you cannot pay #75,000. for
a quit claim of the Company's interest in the works.
I would add that the foregoing does not represent the views
of anyone but the writer, and is submitted for the purpose of stimulating
a consideration of every phase of the District's problem.
If you should have occasion to write again I would be interested
to know whether the price of #75,000. includes the Beaver Lake Dam, the intake
on the Creek and the Duck Lake by-pass.
Tours very truly,
Depu
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Pack Fancies    270*s a;
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