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<br />Before benefit-cost analysis "can be useful, flood control criteria <br /> <br /> <br />must be formulated to establish the constraints of the analysis. In <br /> <br /> <br />addition, the engineering investigation must be completed, including <br /> <br /> <br />the hydrologic and hydraulic analyses and the formulation of alternative <br /> <br /> <br />flood control measures. <br /> <br />Formulation of Flood Control Study Criteria <br /> <br /> <br />Before the flood control study is undertaken, some criteria must <br /> <br /> <br />be established. The following are among the questions that should be <br /> <br /> <br />considered: <br /> <br /> <br />1. Is the desired level of protection fixed or variable? <br /> <br /> <br />2. If the level of protection is fixed, will the recommended <br /> <br /> <br />alternative be the lowest cost, the one that maximizes the <br /> <br /> <br />net benefits for a fixed cost, or the one that maximizes <br /> <br /> <br />the net benefits with no constraint on the project cost? <br /> <br /> <br />3. Will the project financing be fixed or variable? <br /> <br /> <br />4. Will the study consider only direct benefits or will <br /> <br /> <br />secondary or indirect benefits be quantified and included? <br /> <br /> <br />5. Which secondary benefits will be quantified? Should loss <br /> <br /> <br />of life be quantified? <br /> <br /> <br />6. Which types of alternatives should be investigated? <br /> <br /> <br />Other criteria should be set where applicable. The answers to the above <br /> <br /> <br />will depend on local preferences and in fact may be specified in the con- <br /> <br /> <br />tract. This methodology has assumed that the desired level of protection <br /> <br /> <br />is fixed, the financing is variable, and the recommended alternative will <br /> <br /> <br />be the one that maximizes the net benefits, defined in terms of local <br /> <br /> <br />priorities. <br /> <br />53 <br />