 We computed expected annual damage (EAD) in the area protected by the levees. Reductions in EAD represent the direct economic benefit of the levee modifications.
We considered the following levee configurations: (1) the 1990 levee configuration, prior to the construction of recent modifications; (2) the SAFCA project, which includes the Natomas East Main Drainage Canal (NEMDC) east and west levees and, a pump station; the Dry Creek north levee; (3) the SAFCA project described above, with additional improvements to Arcade Creek north and south levees and to the Dry/Robla south levee.
For any of the configurations, the damage incurred varies, depending on the location of the levee breach. However the location of such a breach (if any) is uncertain. To account for this, we computed EAD for four possible breach locations that were identified by SAFCA's geotechnical consultant. We then developed and applied a procedure to estimate the probability-weighted average of these, thus yielding an expected benefit for the levee raising.
As a consequence of our analysis, SAFCA was able to recover a significant portion of the cost of the local-sponsor's contribution to construction of this project.
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