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<br />will be given to the Service's recommendations with respect to pre-
<br />venting water pollution, promoting sanitation, and obtaining the
<br />maximum degree of mosquito control. In addition, further study will
<br />be made of the feasibility of developing the potential Ironton Park
<br />Reservoir site on Red Mountain Creek as a part of the project to
<br />provide domestic water supply, water quality, fishery, and recreation
<br />benefits.
<br />
<br />We concur in the Service's conclusion that before recreational use
<br />of Ridgway Reservoir is permitted, the city of Ouray must provide
<br />secondary treatment of its raw sewage which is now discharged into
<br />the Uncompahgre River above the reservoir site.
<br />
<br />The Bureau of Mines found that neither the Ridgway nor Dallas Divide
<br />Reservoir would adversely affect present or anticipated mineral
<br />resource developments. The Bureau considered Sneva Reservoir too
<br />small to justify study.
<br />
<br />The total construction cost of the proposed Dallas Creek Project is
<br />estimated to be $37,687,000, based on January 1964 prices. This
<br />includes $678,000 of preauthorization investigation costs, of which
<br />$336,000 were financed from the Colorado River Development Fund and
<br />are not reimbursable by the project. It also includes $520,000 for
<br />nonreimbursable costs of relocating roads to current standards in
<br />excess of costs for replacement to existing conditions. Annual
<br />operation, maintenance, and replacement costs of the project are esti-
<br />mated to be $174,200.
<br />
<br />The total benefits to be derived from the project are estimated to be
<br />$2,825,300 annually (irrigation, $1,982,700; municipal and industrial
<br />water supply, $420,700; recreation, $324,200; fish and wildlife,
<br />$80,700; and flood eontrol, $17,000). An economic evaluation of this
<br />proposed development for a 100-year period of analysis, using an
<br />interest rate of 3-1/8 percent, indieates that the estimated total
<br />annual benefits of the project would exceed the average annual equiva-
<br />lent cost in the ratio of 1.89 to 1. The ratio of direct benefits to
<br />cost is evaluated to be about 1.17 to 1.
<br />
<br />Of the total projeet construction cost, $26,881,000 are allocated to
<br />irrigation, $4,620,000 to munieipal and industrial water supply,
<br />$3,840,900 to recreation, $1,260,600 to fish and wildlife enhancement,
<br />and $228,500 to flood control. These allocations exclude project costs
<br />of $336,000 nonreimbursable investigation costs funded from the
<br />Colorado River Development Fund and $520,000 of incremental costs to
<br />eonstruct relocated highways to current standards which are nonreim-
<br />bursable by law.
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<br />6
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