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<br />.,- <br /> <br />., <br /> <br />u02266 <br /> <br />. <br /> <br />presently small, and most of the service area contemplated by the <br /> <br />,Coal Creek project is outside the existing municipal boundaries. <br /> <br />Such a situation requires that all the proposed project service area <br /> <br />be included initially in the formation of a single entity or district <br /> <br />with authority to assess taxes, impose water-use changes, and issue <br /> <br />bonds. <br /> <br />The two types of districts most suitable for the Coal <br /> <br />Creek project are the water and sanitation districts and the water <br /> <br />conservancy districts. Each has some advantages and disadvantages, <br /> <br />and a careful analysis should be made in arriving at a final <br /> <br />decision. <br /> <br />It is expected that such a decision should be made before <br /> <br />any project is developed. <br /> <br />Recommendations <br /> <br />It is recommended that the U. S. Bureau of Reclamation <br /> <br />carry out an appraisal study of the project within the guidelines <br /> <br />indicated above. From preliminary cost estimates, it is expected <br /> <br />that such a study will cost up to $140,000 and that it may take up <br /> <br />to two years to complete. The first year's cost will be about <br /> <br />$90,000, while the cost of the second year will be the rest; i.e., <br /> <br />$50,000. <br /> <br />NCI: tam <br /> <br />-4- <br />