Mr. RABAUT. Please explain this new construction start and tell us why it is necessary, and at this time. General MACDONNELL. This is a small craft harbor on the open coast of California 140 miles northwest of San Francisco, which involves the construction of a breakwater. It presently has entrance jetties into the harbor and channels within the harbor. The budget request is for the initiation of construction of the breakwater, which is urgently required to reduce danger of loss of life, prevent loss of fishing time and fishing vessels, to relieve the congestion in the harbor and provide an area of refuge for transient craft. The estimated Federal cost is $2,580,000, and the benefit-to-cost ratio is 1.2 to 1. Mr. RABAUT. I was going to ask you: How firm is that benefit-cost ratio, 1.2 to 1? General MACDONNELL. I think it is good, sir. Mr. TABER. What are the benefits that will be attributable to the breakwater? General MACDONNELL. They are essentially all commercial, sir. The annual benefits are $150,000 a year, and the savings are in transportation costs, increased fish catch, savings in boat operation, and reduction of boat damage. It is primarily a fishing town. There are five fish processing plants there. Mr. TABER. Why do we not limit the Federal work to the breakwater and let the local interests construct their own mooring basin? General MACDONNELL. The mooring basin is authorized, but is not included in the budget request. That was authorized in 1960, but there are no funds in the current budget request for it. Mr. TABER. It is not included in the cost, either? General MACDONNELL. No, sir. It is not in the total estimated Federal cost as shown. Mr. TABER. Will they come back for more later, or will we get a contract on that before we go ahead? General MACDONNELL. On the mooring basin, sir? Mr. TABER. Yes. General MACDONNELL. There would have to be planning funds appropriated by which the allocation of costs between the Federal and local government would be established, and on that basis we would determine if local interests could furnish the required cooperation for the mooring basin. Mr. TABER. I should think we would want to do that first, before we went ahead. General MACDONNELL. None of this money will be used for the mooring basin. This is all just for the breakwater construction. Mr. PILLION. Will the gentleman yield? Mr. TABER. Yes. Mr. PILLION. If we are building a mooring basin here, and if we are in the business of constructing that type of facility, then are we not also in a position of maybe being called upon to build piers and wharves all through the country? General MACDONNELL. No, sir. Mr. PILLION. What is the difference between a mooring basin and piers and wharves? General MACDONNELL. A mooring basin would give them an area in which they could build piers, wharves, and other public terminal facilities, which would be one of the requirements of local cooperation. Mr. PILLION. The mooring basin is just excavation of the lands under the water to give enough depth for these ships to moor? General MACDONNELL. Yes, sir. Mr. PILLION. I see. PLAYA DEL REY INLET AND BASIN, CALIF. Mr. RABAUT. Playa Del Rey, $524,000 to complete. Mr. RABAUT. Please explain this new construction start and tell us why it is necessary, and at this time. General MACDONNELL. This is a small craft harbor on the open coast of California 140 miles northwest of San Francisco, which involves the construction of a breakwater. It presently has entrance jetties into the harbor and channels within the harbor. The budget request is for the initiation of construction of the breakwater, which is urgently required to reduce danger of loss of life, prevent loss of fishing time and fishing vessels, to relieve the congestion in the harbor and provide an area of refuge for transient craft. The estimated Federal cost is $2,580,000, and the benefit-to-cost ratio is 1.2 to 1. Mr. RABAUT. I was going to ask you: How firm is that benefit-cost ratio, 1.2 to 1? General MACDONNELL. I think it is good, sir. Mr. TABER. What are the benefits that will be attributable to the breakwater? General MACDONNELL. They are essentially all commercial, sir. The annual benefits are $150,000 a year, and the savings are in transportation costs, increased fish catch, savings in boat operation, and reduction of boat damage. It is primarily a fishing town. There are five fish processing plants there. Mr. TABER. Why do we not limit the Federal work to the breakwater and let the local interests construct their own mooring basin? General MACDONNELL. The mooring basin is authorized, but is not included in the budget request. That was authorized in 1960, but there are no funds in the current budget request for it. Mr. TABER. It is not included in the cost, either? General MACDONNELL. No, sir. It is not in the total estimated Federal cost as shown. Mr. TABER. Will they come back for more later, or will we get a contract on that before we go ahead? General MACDONNELL. On the mooring basin, sir? Mr. TABER. Yes. General MACDONNELL. There would have to be planning funds appropriated by which the allocation of costs between the Federal and local government would be established, and on that basis we would determine if local interests could furnish the required cooperation for the mooring basin. Mr. TABER. I should think we would want to do that first, before we went ahead. General MACDONNELL. None of this money will be used for the mooring basin. This is all just for the breakwater construction. Mr. PILLION. Will the gentleman yield? Mr. TABER. Yes. Mr. PILLION. If we are building a mooring basin here, and if we are in the business of constructing that type of facility, then are we not also in a position of maybe being called upon to build piers and wharves all through the country? General MACDONNELL. No, sir. Mr. PILLION. What is the difference between a mooring basin and piers and wharves? General MACDONNELL. A mooring basin would give them an area in which they could build piers, wharves, and other public terminal facilities, which would be one of the requirements of local cooperation. Mr. PILLION. The mooring basin is just excavation of the lands under the water to give enough depth for these ships to moor? General MACDONNELL. Yes, sir. Mr. PILLION. I see. PLAYA DEL REY INLET AND BASIN, CALIF. Mr. RABAUT. Playa Del Rey, $524,000 to complete. |