From: Mark M. Borba
Sent: Friday, March 05, 2010 10:32 AM
To: 'Thomas W. Birmingham, Esq.';'zzCardoza, Dennis'; Jim Costa'
Cc: 'Sarah Woolf'; 'Jean Sagouspe (E-mail)'; 'John Harris'; 'david e wood; 'don devine'; 'DonP'; 'j flores'; 'John Diener'; 'Stuart Woolf'; 'Jason Peltier'
Subject: THANK YOU! WWD allocation announcement impacts
Jim, Dennis & Tom:
Thought I'd share my rough calculation of the impact of the (30% + 8-10%) = 38-40% allocation announcement now anticipated (thanks to all of your tireless efforts) from the Bureau on March 15th:
It was a $140,000,000 phone call!.....adding an average of $312/ac to the "margins" of every grower's budget in the District:
- (Increase by 35%) = 420,000 AF X $300/af (ie. $465-vs-$165; Supplemental -vs- O&M)
- (Total 40%) = 480,000 AF X $30/af (ie. Est.reduced O&M/af)
- $140,000,000 over 450,000 acres = $311/acre
- Plant more acres (Cotton?)
- Substitute for Supplemental water (no acreage change; lower input costs; shift to capital spending?)
- Substitute for Well Water (no acreage change; lower input costs; add margin to financing package?)
- "blend" all water costs; farm more acres (NOTE: +35% = 0.8925 AF/acre)
Thanks to Cong. Costa and Cardoza for not only pushing for this accelerated announcement in the increased water supply, but for insisting that the allocations (both the 30% and the addn'l 8-10%) be delivered at "Contract Rates".
This is HUGE...combined = $140,000,000!