SWD SOMERVILLE RESERVOIR, TEXAS (Cont'd) Local interests are required to reimburse the Federal Government for the costs NON-FEDERAL COSTS: allocated to water supply storage over a period not to exceed 50 years after use of this storage is initiated. The reimbursement required has not been determined. STATUS OF LOCAL COOPERATION: The Brazos River Authority, a State agency, has indicated its willingness to cooperate fully in the requirements of local cooperation. The BRA, by resolution adopted 19 April 1948 has offered to assume the responsibility of disposing of water supply storage provided in any reservoir on the Brazos River to the end that the U. S. Government will receive proper compensation and return for the services rendered in storing such water. Local interests have expressed a desire to apply the provisions of Title III, Water Supply Act of 1958. Consummation of a formal contract is anticipated during the second quarter of FY 1962. COMPARISON OF FEDERAL COST ESTIMATES: The current Federal cost estimate of $16,300,000 is an increase of $400,000 over the latest estimate ($15,900,000) submitted to Congress. This increase includes $112,000 for lands and damages based on a reanalysis of requirements, $374,000 due to price level rise, $20,000 due to minor adjustments in construction features, and $7,000 for Supervision and Administration. The increase was partially offset by a decrease of $93,000 for construction of recreation facilities and $20,000 for buildings, grounds, and utilities based on current analysis of requirements. 9,105,200 OPRIATION TITLE: CONSTRUCTION GENERAL IFICATION: Reseroles (Flood Cent col) PROJECT: SOMERVILLE RESERVOIR, TEXAS SUMMARY CONSTRUCTION PROGRAM (PB-1) FISCAL YEARS 19 61 & 19 62 (5) 235,000 4,183,400 301,000 596,800 Mr. BOLAND. This is a new start, is it not? General FLEMING. Yes, sir. Mr. BOLAND. Can you explain it? What is it, and give us something for the record on it. General FLEMING. This is a reservoir for flood control and water supply on a tributary of the Brazos River in Texas. It has 326,000 acre-feet for flood control and 38,800 acre-feet of water supply. It has a benefit-cost ratio of 1.5 to 1. The estimated Federal cost is $16,300,000, which is an increase of $400,000 over the last estimate submitted to the Congress, with the increase due largely to price level rises and minor adjustments in the project. The local interests will reimburse the Government for the cost of the water supply storage supplied. That has not yet been determined. We do not have a firm contract as yet, but it will be in the order of magnitude of about $5 million. Mr. ANDERSON. Could I ask a question at that point, Mr. Chairman? Mr. BOLAND. Yes, Mr. Andersen. Mr. ANDERSEN. General, I am rather disturbed by the fact that we have a project being commenced without having firmed up the local contribution. You do not definitely know and, therefore, you cannot definitely say today just what the local people will do, can you? General FLEMING. I may have misled you in one of my statements, sir. We do not know the exact amount as of now. Mr. ANDERSEN. I see in footnote 1 and in reading the language down below, that the reimbursement required has not been determined. General FLEMING. The exact amount. We know the order of magnitude. We have an agreement with the Brazos River authority that they will take that water supply storage. Mr. ANDERSEN. Then how can you determine the benefit-cost ratio without that figure? Can you do that? General FLEMING. Yes, sir; we can. The cost we know within a close enough range so it will not have a material effect on the benefitcost ratio. Mr. ANDERSEN. Has the planning been completed on this project? General FLEMING. The preconstruction planning has been completed. Mr. ANDERSEN. You are ready to start construction? General FLEMING. Yes, sir. We are ready to start. Mr. ANDERSEN. What are the incremental flood control benefits for this project over those to be derived by existing projects, or those under construction in the Brazos River watershed? In other words, what does this add to the whole picture? What I am trying to find out is, just how are these benefits assigned? Is it 1.5 to 1, figured on the basis of the benefits as far as the entire project is concerned, General, or does it just relate to this specific interest? General FLEMING. No, sir. This project was figured as an integral unit of the plan for flood control protection on the Brazos River Basin. In computing that we took advantage of eight reservoirs which are now authorized. This is one of the projects which is now being started. Of the eight there are four that have either been completed or are under construction now. In computing the ratio of 1.5 to 1 this |