COMMENTS OF THE BUREAU OF THE BUDGET


EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
Washington 25, D.C.
May 27, 1954


The honorable the SECRETARY OF THE ARMY.

My DEAR MR. SECRETARY: This is in response to Acting Secretary Slezak's letter of February 3,1954, submitting a proposed report of the Chief of Engineers on San Lorenzo Creek, Alameda County, Calif., prepared under authority granted by a resolution adopted by the Committee on Flood Control, House of RepresentatIves, adopted May 14, 1945.

The Chief of Engineers recommends, subject to certain conditions of local cooperation, authorization for construction of channel improvements, levees, and appurtenant works along San Lorenzo Creek, on the east side of San Francisco Bay. Estimated Federal cost of construction is $3,644,000, based on price levels existing in December 1952. Local costs are estimated at $535,000 for lands, easements, rights-of-way, and replacements of bridges and utilities, and $96,000 as a cash contribution toward construction costs of the improvements. Estimated annual carrying charges are $165,700, of which $129,000 would be Federal and $36,700 would be local, including $14,500 for local operation, maintenance, and replacement costs. Average annual benefits, practically all of which are direct, are estimated at $193,200, including $179,200 in flood damage preventIon, $11,000 in higher land utilization, and $3,000 for the replacement of obsolete bridges. Benefit-cost ratio is stated to be 1.17.

I am authorized by the Director of the Bureau of the Budget to advise you that there would be no objection to the submission of the report to the Congress. No commitment, however, can be made at this time as to when any estimate of appropriation would be submitted for construction of the project, if authorized by the Congress, since this would be governed by the President's budgetary objectives, as determined by the then prevailing fiscal situation.

Sincerely yours,

CARL H. SCHWARTZ, Jr.,
Chief, Resources and Civil Works Division.