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tidal waters tributary to the Atlantic and Gulf Coasts, at mean lower low water in tidal waters tributary to the Pacific Coast, and the mean depth for a continuous period of 15 days of the lowest water in the navigation season of any year in rivers and non-tidal channels. A statement should be made as to whether or not overdepth dredging is proposed and provided for in the estimates of cost. The channel dimensions specified shall be understood to admit of such increase at the entrances, bends, sidings, and turning places as may be necessary to allow of the free movement of boats, (Section 5, River and Harbor Act approved March 4, 1915). Where a width of channel is specified it shall be understood to mean width of bottom at project depth.

282.10. Aids to navigation.—Channel and other navigation improvements will be laid out with due regard to the feasibility and cost of the establishment by the Coast Guard of suitable aids to navigation. District engineers are authorized and directed to confer directly with the District Commander of the Coast Guard with reference to the establishment or alteration of aids to navigation. Reports will state whether a representative of the Coast Guard has been consulted as to the location of works affecting that Service, and whether or not he concurs in the location recommended.

282.11. Analysis of economic justification of proposed improvements.-(a) Reports on proposed river and harbor projects, except preliminary examinations or reviews thereof, must present two distinct and separate estimates :

(1) The estimated appropriation of public funds necessary for the execution of the project and for its subsequent maintenance.

(2) An estimate of the entire economic cost of the project, including interest charges and amortization, set against an estimate of the benefits from the work.

(6) The “estimated cost” of the proposed work as set forth in a recommendation for the adoption of a project should be that defined in subparagraph (1) above. Special care must be taken to avoid confusing the economic cost, as defined in subparagraph (2) with the appropriation required.

(c) In the interest of uniformity, the economic cost, by which the economic justification is weighed, should be computed as an annual carrying charge and not as a capitalized sum; and the economic benefits should be computed on the same basis.

(d) The benefits from the further improvement of a going project should include only the increased return because of the further expenditures under consideration. The fact that an improvement already made is highly valuable in effecting transportation economies is not in itself a sufficient ground to justify expenditure for further improvement. Similarly, the fact that a past expenditure has not secured commensurate results is not a compelling reason against further expenditure if it can be shown that transportation savings will repay the cost of further improvement. The estimate of economic cost of further improvement will therefore not include costs already incurred by the United States.

(e) On large projects the following items should be included in the economic cost, so far as applicable : (1) Federal investment. a. Estimated expenditure by the Engineer Department for new work of

construction and for lands, easements and rights-of-way. 6. Estimated expenditure by other Federal Departments for new work

entailed by construction, such as aids to navigation.
c. Total Federal first cost.
d. Interest during construction: 3 per cent of Item c for 12 of the estimated

construction period,
e. Total Federal investment.

(2) Federal annual carrying charges.

a. Interest: 342 per cent on Item (1) e.
b. Amortization of obsolescence and depreciation.
c. Increased cost of maintenance and operation.

d. Total Federal carrying charges. (3) Non-Federal investment.

a. Funds to be contributed.

. Value of lands and rights-of-way to be furnished.
c. Reconstruction or alteration of bridges or other structures (when not

included under (1) a).
d. Cost of new terminals to be provided by public agencies.
e. Total non-Federal first cost.
f. Interest during construction on Item (3) e, at 412 per cent for 12 of

estimated construction period. g. Estimated remaining value of works owned by local interests and

scrapped on account of project.
h. Total non-Federal investment.
(4) Non-Federal carrying charges.

a. Interest at 412 per cent on Item (3) h.
6. Amortization of depreciation and obsolescence.
C. Increased cost of operation and maintenance of structures.
d. Loss of taxes on lands and property transferred to Federal ownership.
e. Gross non-Federal carrying charge.
f. Net estimated return from public terminals, etc., included in invest-

ment cost. (To be deducted.)
g. Net non-Federal carrying charge.
(5) Total carrying charge (Item (2) plus (4)).

(f) Amortization. The item for amortization should be determined from a careful analysis of the useful life of the project and its major parts. Except at well-established ports having a general trade, the usefulness of channels and other apparently permanent works cannot be expected to extend indefinitely. Many works heretofore constructed for benefit of the lumber trade, for sailing vessels, etc., have been abandoned. It appears highly probable that improvements made on oil ports will cease to be useful at some future time. With few exceptions the useful life of river and harbor improvements of a permanent nature should not be taken at more than 50 years, and in many cases should be a shorter period. The life of movable parts of works and of steel and wood construction will ordinarily not exceed 25 years and may be less. The useful life of the various major parts of the structure, or of the work as a whole, should be analyzed, and the amortization determined for Federal works as an annual charge which, compounded at 372 per cent interest as given in standard tables, will repay the cost of the project, less any amounts which may be recoverable from tangible property and structures at the end of the amortization period. Thus, for a lock and dam, the amortization charge might be:

Fixed parts, 40 years life: 1.18 per cent annually,

Movable parts, 25 years life: 2.57 per cent annually. The estimated charge for parts which would have a shorter life than that of the whole project would be required for major replacements and should be combined with the estimated cost of maintenance and operation, (e) (2) c, to obtain the estimated appropriation of public funds necessary for the subsequent mainte nance of the project, Item (a) (1). The amortization cost to be included in

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non-Federal carrying charges should be similarly analyzed, but be based on 442 per cent interest, compounded.

(9) On some projects certain of the items listed may not apply. Interest during construction need be included only when the anticipated construction period will exceed one year. On projects for the improvement of existing works, where the benefits will accrue as the work proceeds, the interest during construction should be omitted. A flat charge of 412 per cent for interest and obsolescence and depreciation may be made on minor works.

(h) If the proposed improvement involves the advance replacement of an existing structure of a going project, the total Federal investment, Item (e) (1) e, should be reduced by an amount equal to the estimated accumulated amortization charges for the existing structure, due consideration to be given to the original cost, period of service and useful life. The carrying charges for the new work will accordingly be estimated as the amount in excess of the carrying charges for the existing structure, and the benefits for comparison should include only the increased return because of the new improvement. The present value of advanced replacement, betterments, etc., should similarly be deducted from the non-Federal investment.

(i) The value of the benefits from an improvement must be based on sound judgment. Where the improvement is clearly justified in the interest of safety and convenience of established navigation, no attempt need be made to set up a theoretical money value of the benefits. For example; the benefits from the removal of a hazard to shipping should not be measured by the average damage caused by such a hazard, but on sound business judgment as to whether the work is worth the cost. On the other hand, the benefits in the savings in the cost of transportation as set up by proponents of a project must not be blindly accepted, but must be analyzed and verified in the light of benefits actually realized in the use of similar improvements already made.

(j) When the improvement proposed is the establishment of a new route of inland waterway transportation, or a major extension of existing inland waterway routes or a new port, etc., an exhaustive survey and analysis of the amounts of commerce that would use the waterway must be made, and the savings in cost of transportation as compared with the cost by present routes determined. Only those commodities which experience shows will actually move by water should be included. In determining the amount of prospective commerce, due cognizance must be taken of the fact that for small shipments, the convenience, time, and assurance of delivery may outweigh the consideration of cost. When the prospective commerce includes movements over connecting waterways the report will include a full description of such waterways and of the type of traffic they carry, and a statement as to their adequacy for the prospective commerce, If the proposed improvement will develop new waterway movements that extend to existing waterways, the estimated saving for the complete water movement will be included as a benefit, and no part of such saving should be deducted on the theory that it should be assigned to the connecting waterway. On the other hand, when a proposed improvement will result in the extension of waterway movements already developed, only the sayings which result from the extension of the movements should be included as a benefit, and no part of the saving already being realized by movement on the existing waterway shall be included as a benefit for the new improvement.

(k) In the final analysis, the probable transportation charges by water should be compared with the present transportation charges actually paid by the public. Since the present transportation charges presumably provide for a reasonable income on the total investment of present carriers, the estimated charge by water should likewise provide for a reasonable income on the total investment of the water carrier. All terminal and transfer costs and any storage charges while awaiting trans-shipment should be included. The estimated water transportation charges should be fully checked against the actual charges under parallel conditions. The adequacy of the proposed waterway for the transportation of commodities at the costs set up in determining the benefits must be carefully verified.

(1) A favorable recommendation will be warranted only when the estimated benefits show a substantial margin over the total estimated carrying charges, due regard being had to intangible and collateral benefits. This margin should be sufficient to absorb the carrying charges which may accrue during the development of commerce on the improvement and leave a net return to the public because of the improvement.

282.12. Discussion and conclusions.-Under these headings the data on the prospective benefits and costs should be summarized. This should include estimated savings in freight transportation costs, evaluation of the saving from the elimination or reduction of damages, delays, enhancement of property values, etc., and a comparison of the total benefits with the estimated cost. Where appropriate, give a full discussion of the question of local cooperation. Where local cooperation is considered warranted, definite measures shall be formulated and as far as practicable the view of local interests thereon shall be obtained and stated in the report. Any justification for the assumption by the United States of the whole or any part of the cost of necessary alterations to bridges shall be stated under this heading, and if established, definite recommendation with respect thereto shall be included in the paragraph “Recommendations."

282.13. Recommendations.—The recommendation (if favorable or partially so) should present a clear and accurate statement of the proposed improvement, or of the proposed modification of the existing project with the estimated cost of new work, and the estimated cost, or additional cost, of annual maintenance. Conditions imposed, including those of local cooperation, will be carefully stated. Where rights-of-way are to be furnished free of cost to the United States the minimum width should be stated. Since in most cases where land for right-ofway is required, deeds in fee simple are not necessary and are often difficult to secure, consideration should be given to whether title should be passed to the United States or merely that easements should be furnished. State the amount which should be provided as an initial allotment and the manner in which additional funds necessary to complete the project should be provided to secure the most economical and advantageous prosecution of the work.

282.14. Report of the Division Engineer.-The report of the Division Engineer will be in the form of an indorsement and when he concurs with the Distriet Engineer a statement to this effect will ordinarily be sufficient. When large expenditures are recommended, however, it is desirable to have in addition a short concise statement by the Division Engineer of the character of the benefits and his opinion as to how they will compare with the annual costs for the improvement. A recommendation substantially different from that of the District Engineer should be accompanied by a statement which clearly shows the basis for the recommendation, and it should be prepared only after discussion of the differences with the District Engineer. Any misstatement of fact or miscalculation found in the District Engineer's report by the Division Engineer will be brought to the attention of the District Engineer for consideration and correction. The division report will then be confined to an expression of the views of the Division Engineer and his recommendation.

SURVEYS, FLOOD CONTROL

283. Survey reports. -Survey reports for flood control will be complete in themselves without requiring reference to reports on preliminary examination. They, will include the data contained in the reports on preliminary examination amplified and modified as may be necessary to conform to the latest available information, including that obtained by the survey.,

283.1. Form and order of report.--The survey report, whether prepared by the District Engineer, Division Engineer, or a board of officers, will in subject matter, arrangement, and context follow in general that prescribed for the preliminary examination report for flood control, with the modifications and additions discussed under certain headings of the following outline. It is desirable that the general arrangement of reports be closely followed in order to facilitate studies by reviewing authorities. The main report will not be filled with statisties, descriptions of methods and procedures followed in making studies, or material not essential to a full understanding of the problems involved. Such material should be contained in appropriate appendices. Plates and exhibits will not be bound in the text of the main report but may be appended at the end of the text.

283.2. Authority.-Cite the law authorizing the survey and quote verbatim the item covering the survey. If the report covers more than one authorization, specific reference will be made to each item. If a preliminary examination report has been submitted, include a statement to show that the report thereon has been reviewed by the Board of Engineers for Rivers and Harbors. State the scope of the survey authorized.

283.3. Prior reports.
283.4. Description.
283.5. Economic development,
283.6. Precipitation.
283.7. Run-off.
283.8. Floods.
283.9. Extent and character of flooded area. -

283.10. Flood damages.--(a) The results of flood damage surveys and studies should be outlined in sufficient detail to present a clear picture of the extent and character of flood losses.

(0) Flood damages should be estimated on the basis of the flood frequencies determined from the records of past floods, when available, and of the existing state of development in the flooded area. Careful examination of appraisals of property values and probable damages in concentric zones corresponding to different flood heights should give reasonably dependable results. Industrial establishments have generally located within the flood plains for financial advantages and with knowledge of the flood hazards involved. Care must be exercised in using damage estimates submitted by local interests as they often represent the costs of replacements by a higher type of structure less susceptible to flood damage.

283.11. Existing flood control projects.
283.12. Improvements by other Federal and non-Federal agencies.

283.13. Improvement desired.Outline clearly and add any modification of the desires of local interests that may have been presented subsequent to the submission of the report on preliminary examination,

283.14. Surveys. --State the character and extent of the surveys made, including where applicable reference to aerial mapping, field topography, and under

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