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  1. FEMA’S BENEFIT COST ANALYSIS Roxanne Gray, Wisconsin State Hazard Mitigation Officer and Kristen Sailer, Minnesota State Hazard Mitigation Officer 2009 MnAFPM and WAFSCM Combined Annual Conference October 8, 2009

  2. UNIFIED HAZARD MITIGATION ASSISTANCE PROGRAM • Hazard Mitigation Grant Program • Pre-Disaster Mitigation Program • Flood Mitigation Assistance Program (flood hazard only) • Repetitive Flood Claims Program (flood hazard only) • Severe Repetitive Loss Program (flood hazard only)

  3. MITIGATION PROGAMS • Project and Planning Grants • 75/25% cost share • HMGP – WI & MN both provide 12.5% of the local match • PDM – 90/10% for small, impoverished • RFC – 100% funding • SRL – 90/10% with strategy in State Plan • State, local, and tribal organizations eligible applicants • HMGP – certain eligible private, non-profits • Approved Hazard Mitigation Plan required • Exception is RFC Program

  4. FUNDING AVAILABILITY • HMGP • Post-Disaster • 15% (20% with Enhanced Plan) of the total federal funds allocated for Public and Individual Assistance Programs for each disaster

  5. FUNDING AVAILABILITY (cont.) • FMA • Annual allocation; and national competition • # of flood insurance policies and repetitive loss properties in the state • Flood Mitigation only • Mitigation to NFIP insured structures

  6. Funding Availability (cont.) • PDM • State base amount of $500,000 • Annual, national competition or is it? • Subgrants projects capped at $3 million federal share; Planning $800,000 for new plan, $400,000 plan update • $150 million – FFY10 (Earmarks once again) • Will sunset 9/2010 unless reauthorized

  7. Funding Availability (cont.) • RFC • Mitigation to NFIP insured structures • At least one paid flood insurance claim • Flood Mitigation Only • No plan requirement • Inability to manage subgrant or lack of 25% match • National Competition

  8. Funding Availability (cont.) • SRL • Mitigation to NFIP insured structures • Flood mitigation only • At least 4 NFIP claim payments over $5,000 each, and cumulative exceeds $20,000; or 2 payments exceeds the value of the structure • Allocations for target states; otherwise competition

  9. ELIGIBLE PROJECTS • Either on public or private property • Acquisition/Demolition of structures • Relocate structures • Elevation of structures • Retrofit Structures • Community Shelters • Residential Safe Rooms • Development of standards • Structural hazard control, i.e., debris basins, floodwalls • Development/updates of All Hazards Mitigation Plans

  10. Eligible Projects (cont.) • FMA, RFC, SRL • Mitigation to NFIP insured structures • Flood mitigation only

  11. REQUIREMENTS • Participating in the NFIP and in good standing • Cost-Beneficial • Environmentally Sound • Considered other alternatives • Best alternative • Solve the problem • Plan requirement (except RFC)

  12. Mitigation eGrants • HMA applications (PDM, FMA, RFC, and SRL) have to be submitted via FEMA’s eGrants system

  13. HMA 2010 Guidance/Resources

  14. BCA • All projects must be cost-effective • Benefits of the project must outweigh the cost of at least 1:1.

  15. Required for BCA • Detailed scope of work • Cost Estimate • Maintenance Cost • Past Damages and Frequency of Event

  16. Benefits of Mitigation • Avoided damages to buildings and contents • Avoided loss of function • Avoided emergency management costs • Avoided casualties

  17. Calculating Benefits • Before mitigation • After mitigation • Probabilities of the hazard • Useful life of the project • Time value of money

  18. Damages before Mitigation • The greater the frequency and depth of flooding for a given structure, the higher the annualized damages and losses. • To the extent that a mitigation project reduces or eliminates these damages, the greater the potential benefits

  19. Damages after Mitigation • Benefits are calculated as the difference between annualized damages with and without undertaking the mitigation project. • Annualized benefits are calculated as the difference in the annualized damages before and after mitigation.

  20. Software Highlights • Streamlined software to allow users to develop an inventory of structures and projects • The ability to allow structures in multiple projects or to use multiple hazards • Various defaults with the ability to override when providing justification and backup documentation • Provided wizards, drop-down menus, integrated calculations • Data sharing capability through import / export • Dynamic Help, including Job Aids, Checklists and Tool Tips • Integrated online help • An online toolkit

  21. Multiple Structures, Multiple Hazards

  22. BCA Import

  23. Structure Import

  24. BCA Export

  25. Structure Export

  26. Backup/Restore

  27. Using Integrated Calculators • Each data element that affects the BCA must be documented • Any deviation from the FEMA Standard Values MUST be justified and documented • Once documentation is uploaded into the BCA software, and the software is then loaded into eGrants, all documentation will follow to eGrants.

  28. Using the Cost Estimator

  29. Flood BCA Module – Key Inputs • Mitigation Project Type • Mitigation Project Cost • Hazard-Specific Data • Structure Information • General • Residential • Non-Residential • Damages and Losses Avoided • Depth-Damage Functions

  30. Flood BCA Documentation: General Guidance

  31. Flood BCA Documentation: Mitigation Project Cost • Mitigation Project Cost • Estimating Costs and Benefits • Pre-construction • Construction • Ancillary • Annual Maintenance Costs • Sources: • Local historical cost data • Current contractor bids • Cost estimating software

  32. Flood BCA Documentation: Hazard-Specific Data • FIS and/or Hydrology and Hydraulics (H&H) Study • Riverine: Flood Profile, Streambed Elevation, Discharges • Coastal: Stillwater Elevation (SWEL), BFE or 100-year elevation including wave action • FIRM • Panel Number, Effective Date, Community ID Number

  33. Flood BCA Documentation: Structure Information • Structure Information - General

  34. Flood BCA Documentation: Structure Information (continued) Size of Building • Measured in square feet • Sources: appraisal, tax records, survey or homeowner estimates, measured drawings with photographs Building Replacement Value • Cost per square foot to build a comparable structure • Sources: letter from local building inspector, contractor, architect or engineer; or information from standard cost estimating software. If tax records are used, source must be assessor

  35. Flood BCA Documentation: Residential Structure • Foundation/Building Type, Number of Stories • Acceptable forms of documentation: photocopies of tax records, hard copy or electronic photos, appraisals and letters from homeowners • Sources: homeowner, local building inspector, local tax assessor's office, or title documents.

  36. Flood BCA Documentation: Non-residential Structure • Primary Use of Building, Number of Stories • Sources: owner, local building inspector, local tax assessor’s office, or title documents on letterhead from a credible source • Service Types by Facility (Value of Public Service), Annual Budget • Examples of Service Name: government, library, education, hospital, emergency medical service (EMS), safe room, fire, police, or Emergency Operations Center • Documentation is available from agency providing service or published annual report

  37. Flood BCA Documentation: Displacement/Loss of Rent Displacement/Loss of Rent • Costs when occupants are displaced to temporary quarters while damage is repaired. Includes rent and other monthly costs, such as furniture rental and utilities, and one-time costs, such as moving and utility hook-up fees. • FEMA Standard Values • $1.44 square foot per month for residential • Loss of Rent are costs for rental properties only and do not include one-time costs.

  38. Flood BCA Documentation: Contents Value FEMA Standard Value: Contents • Residential and Default DDF (USACE) table: 100 percent of Building Replacement Value (BRV) • All Others: 50 percent of BRV If default is not used, sources include: • Insurance records • Appraisals • Receipts • Estimates based on current market prices for similar contents

  39. Flood BCA Documentation: Depth Damage Functions • Depth Damage Functions • Choose from three options • Default – All information provided; no justification or documentation needed • Library – Similar to default, but is a secondary preference; justification AND documentation required ONLY if user overrides values • Custom – User-entered information; justification AND documentation MUST be provided • If FEMA Standard Value is not used, sources include: historical loss records and engineering judgments

  40. Flood BCA Documentation:Other Avoided Damages • BCA Tool automatically estimates avoided losses/damages: • Building and Contents Damages • Displacement Costs • Other Avoided Damages Table allows user-entered benefit categories that may include: • Debris removal • Emergency Management Costs • Disruption of Life

  41. Damage-Frequency Assessment (DFA) Typically requires the most assumptions and engineering judgment Provides the most accurate analysis if no hazard data or specific building data are available Historical damage information is required (updated for inflation to present value) Performs an analysis based on historical hazard frequency data, damage observations, and engineering judgment

  42. Damage-Frequency Assessment (continued) DFA calculates project benefits based on two or more historical damage events and the frequencies of the events Advantage of DFA module is its flexibility: it can be used for a wide range of hazards and project types

  43. When to Use the DFA The DFA approach should be used when one or more of the following situations apply: Non-building projects (utilities, roads, infrastructure) Key structure information, such as the first floor elevation data for flood, is not available Hazard data used to determine the expected annual number of flood events is missing or out of date