6/4/2013

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CityLinks: Building

Urban Adaptation to

Climate Change

U.S. Case Studies

June 4, 2013

What is CityLinks?

• USAID-funded program that offers city-to-city

exchanges addressing climate change, food

security, and water and sanitation challenges.

• Visit our site to learn more: icma.org/citylinks

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Susanne Torriente

Assistant City Manager,

Fort Lauderdale, Florida

Today’s

Highlights of South Florida’s Sustainability Timeline (2009-2013)

Implementation Examples AAA Pilot Grant

Hurricane Sandy +Seasonal High Tides = A1A Destruction

Outreach: Listening & Learning restoreA1A.com

2035 Vision Plan: Fast Forward Fort Lauderdale

Resident Survey

Homeowners Association Meetings

South Florida Climate Action Partners

Summary Observations

Highlights of South Florida’s Sustainability

Timeline

2009

2010

2011

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Highlights of South Florida’s

Sustainability Timeline

2011

2012

2013

Implementation Opportunity Plan recommendation

SP-6 Incorporate Adaptation Action Area designation into local comprehensive plans and regional planning documents to identify those natural areas deemed most vulnerable to climate change impacts including changes in sea level and rainfall patterns.

Project of Special Merit

o Implementing “Adaptation Action Area” Policies in Florida

o Partnership with City of Ft. Lauderdale, Broward County, South Florida Regional Planning Council and Southeast Florida Regional Climate Compact.

o Address AAA in City of Ft. Lauderdale Local Comprehensive Plan.

o Create guidance for statewide dissemination

o Research Adaptation Action Areas policy options

o Present menu of options to local government

o Draft policy language for inclusion in comprehensive plan

o Adopt policy language

o Draft case study

o Draft guidebook for other local governments

Next steps after the pilot: link to infrastructure capital planning and budgeting

Partners:

Project of Special Merit Highlights

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Disaster Recovery Fort Lauderdale Beach

October 2012

November 2012

Post Disaster Opportunity

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Outreach

Listening &

Learning

Our

Vision

Resident Survey

Partners HOA’s

A1A www.restorea1a.com

Fort Lauderdale Resident Satisfaction

Survey

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Ou

r C

ity

, O

ur

Vis

ion

O

ur

City

, O

ur

Vis

ion

Phase I

Dec. 2009 – April 2012

Phase I

Dec. 2009 – April 2012

Stakeholder Interviews

Stakeholder Interviews

Open Houses Open Houses

Phase II

June 2012 – Dec. 2012

Phase II

June 2012 – Dec. 2012

10 Working Categories & Trends

10 Working Categories & Trends

OurVisionFTL.com OurVisionFTL.com

Telephone Town Hall Meetings

Telephone Town Hall Meetings

Meetings-in-a-Box Meetings-in-a-Box

Email, Facebook, Twitter

Email, Facebook, Twitter

BIG IDEAS Fort Lauderdale

BIG IDEAS Fort Lauderdale

3 Overarching Categories

3 Overarching Categories

Neighbor Summit Neighbor Summit 9 Sub-Category

Titles 9 Sub-Category

Titles

Phase III

Dec. 2012 – March 2013

Phase III

Dec. 2012 – March 2013

2035 Vision Statement 2035 Vision Statement

Vision Plan Vision Plan

VISIONING

INTERACTION MECHANISM

CATEGORIES FOR THE SEGMENTATION

AND SUMMATION OF IDEAS

http://www.fortlauderdale.gov/vision

Lessons from

Miami-Dade & Fort Lauderdale

1. Create the structure

2. Elevate the issue

3. Communicate – over and over

4. Connect the dots

5. Reinvent local government

6. Find opportunities

7. Inform the decision making process

8. Perpetual evolution

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Join us!

November 7 & 8, 2013

in the beautiful

City of Fort Lauderdale,

Broward County, Florida

for the

5th Annual Climate Leadership Summit

Thank you!

storriente@fortlauderdale.gov

http://www.southeastfloridaclimatecompact.org/

Douglas Meffert

Vice President and Executive

Director of the National Audubon

Society in Louisiana

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Mississippi River Composite Recent Deltas

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Gradual Change

• Decreased sediment (in river/from river - 70% reduction primarily because of hydroelectric dams upstream)

• Relative sea level rise (incl. compaction and sea level rise) from 3 to 10mm/year

• Decreased contiguity (oil & gas, waterborne commerce, roads, levees, etc.)

• Increased hurricane frequency/intensity

• Decreased social connection to urban/natural environments.

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Bonnet Carre Spillway

Source: Campanella, Time and Place in New Orleans

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Source:

Campanella, Time and Place in New Orleans

Storm Surge Entering New Orleans

Photo Source: Associated Press

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Coastal Louisiana Land Water Interface - Today

Coastal Louisiana Land Water Interface – 1 Foot Sea

Level Rise

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Coastal Louisiana Land Water Interface – 2 Foot Sea

Level Rise

Coastal Louisiana Land Water Interface – 3 Foot Sea

Level Rise

Waggonner & Ball Architects

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Multiple Lines of Defense: New Concept for Integrated

Levee Protection and Coastal Louisiana

Cross-Section of Urban, Rural, and Natural Land Forms

Proposed Morganza to Gulf Regional Levee

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Louisiana Levee Repair/Construction Costs

New Orleans

Metro Area

Southeast

Louisiana

Repair/Construction

Cost

$3.5-9.5 billion

($7.2billion?)

$4-5 billion

Area Protected 115,616 acres 550,990 acres

Population

Protected

1-1.3 million 120,000

Cost/resident (not

incl. maintenance)

$2,692-$9,500 $33,333-$41,667

United Houma Nation, Louisiana

Living With Water

Source: United Houma Nation

United Houma Nation, Louisiana Elders Gathering

Source: United Houma Nation

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United Houma Nation, Louisiana Relief Supplies following Hurricane Katrina

Source: United Houma Nation

United Houma Nation, Louisiana Dulac Community Center following Hurricane Gustav

Source: Douglas Meffert

1. Evacuation: How do you implement frequent

evacuations in an economically-sustainable and

psychologically-sound method?

2. Hazard Mitigation: What are structural standards

for residential and other use now and in the future?

3. Stabilization: How and where can the UHN adapt

and relocate in the future to sustain their culture?

(e.g. public or community land trusts?)

United Houma Nation, Louisiana

Three-part Plan for Adaptation

Contact douglas@meffertetheridge.com for report.

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Raised housing options

Make it Right — KieranTimberlake Associates Louisiana Lift House – MIT (Reinhard Goethert)

Louisiana Future Adaptation

• More investments in non-structural measures are critical.

– 20-30,000 likely to be relocated in the next 10-15 years.

– 120,000 possibly to be relocated in the next 50 years.

– re-examine “permanent” vs. temporary buildings in vulnerable coastal areas.

Bayou Bienvenue, circa 1900 Louisiana Division Photograph Collection, New Orleans Public Library

Bayou Bienvenue, circa 1900 Louisiana Division Photograph Collection, New Orleans Public Library

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Bayou Bienvenue, circa 1900 Louisiana Division Photograph Collection, New Orleans Public Library

Bayou Bienvenue, circa 1900 Louisiana Division Photograph Collection, New Orleans Public Library

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Holy Cross/Lower 9th: An Model Urban Ecosystem for

Sustainability

• Climate Neutrality/Energy

Efficiency

• Sustainable Architecture

• Bayou Bienvenue Restoration

• Neighborhood Landscaping

• New land uses

The “Dutch Dialogues”

Coastal Louisiana

(looking North)

Netherlands

(looking South)

Dutch Embassy, American Planning Association, et al.

Waggonner & Ball Architects

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Waggonner & Ball Architects

Waggonner & Ball Architects

Waggonner & Ball Architects

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Waggonner & Ball Architects

Waggonner & Ball Architects

Waggonner & Ball Architects

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Relevance of New Orleans as a Case Study for

Other Cities

– New Orleans offers is an urban/major delta subject to both climate change and disaster.

– New Orleans is data rich case study as both a historical and predictive model.

– New Orleans is a potential example of natural wetland and water systems as an urban strategy for adaptation and mitigation.

www.lincolninst.edu

Waggonner & Ball Architects

A City Reinventing its Relationship with Water

Eron Bloomgarden, Partner EKO Asset Management Partners

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Creating Clean Water Cash Flows Developing Private Markets for Green Stormwater Infrastructure

EKO Asset Management Partners

Mission: link private capital to

environment

Advisory and investment

management

Specialized in markets for ecosystem

services and natural infrastructure

Advisory: working with leading

investors, corporations, NGOs,

governments, and landowners

Asset Management: Green Carbon

Fund (GCF) focused on US carbon

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Capital Markets

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• Growing demand for sustainable

yield

• Dislocation between Capital and

Environment

• Layers of Capital (Impact,

Commercial, etc)

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70

Relevant Trends

Accelerating infrastructure investment requirements Investments in new infrastructure

i.e. annual spend on water infrastructure by developing countries needs to more than double, from $75 billion currently to $180 billion (Source: UN)

Re-investment and “hardening” of aging infrastructure

Cost of modernizing water infrastructure in US, $91 billion ( EPA, 2010)

Financing challenges Strained public balance sheets

Limited access to debt capital

Requirement for off-balance-sheet solutions

Environmental challenges and liabilities New compliance obligations and enforcement

Can infrastructure be made more environmental?

Natural Infrastructure: Transitioning

From Grey to Green

• Resilient

• Cost Effective

• Co- Benefits

• Invest & Maintain

• Business

“Ecosystem”

• Generate Jobs

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Natural Infrastructure Case Studies

Case #1: Water Supply NYC watershed protection

Water funds supporting upstream ecosystems

EKO partnering with TNC and Rare

Case #2: Fisheries Marine protected areas (MPA’s) as fish “factories”

Supporting healthy fishery functioning

EKO partnering with Oceana and Rare

Case #3: Carbon Sequestration Forests instead of CCS

EKO partnering with UK investors on REDD+

Louisiana coastal carbon

EKO partnering with CH2MHILL

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“NATLAB”: Natural Infrastructure Financing Laboratory

• “Clean Water Cash Flows” (Feb 2013)

Details private parcel project economics and additional policies and programs

to facilitate private sector investment in Philadelphia.

Funded by: Rockefeller Foundation

• “Financing Stormwater Retrofits in Philadelphia and Beyond” (Jan 2012)

Identified ~$370M in private investment opportunity in Philadelphia created by

city’s parcel-based stormwater fee and credit system for GI.

Funded by: William Penn Foundation

• NatLab, a partnership of The Nature Conservancy, NRDC and EKO dedicated to

advancing innovative financing mechanisms to encourage private investment in

natural infrastructure.

• NatLab is working to develop innovative multi-stakeholder partnerships between

public and private entities to advance municipal green infrastructure development

plans.

NatLab’s Work-to-Date

NatLab’s Mission

Green Path Partners – EKO & CH2MHILL

• Utilize natural infrastructure or offer an opportunity to integrate natural

infrastructure into a traditional infrastructure approach;

• Provide a positive ecological impact with significant and demonstrable

social and economic outcomes; and

• Afford an opportunity to use innovative financial structures, non-

traditional impact investment capital, or both.

• Harness the power of innovative finance, natural systems and creative

design to deliver more adaptive and resilient infrastructure with a variety

of long-term benefits to communities and the environment.

Project Focus

GPP’s Mission

Case Study: Philadelphia Stormwater • Stormwater runoff generates 10 trillion gallons of untreated,

polluted water each year

• Federal “Clean Water Needs Survey” has identified over $100

billion of infrastructure investment needed over the next twenty

years to address stormwater and sewage overflows

• Decline in traditional funding sources for municipal stormwater

improvements (municipal budgets and federal funds)

• Traditional “gray” infrastructure has proven environmentally and

economically costly, integration of green infrastructure (GI) can

help:

• Reduce the costs of clean water compliance

• Improve urban quality of life

• Create green job growth

• Encourage economic revitalization

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Green versus Gray Infrastructure

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• Traditional “gray” stormwater infrastructure –

tunnels and sewage systems – has proven

environmentally and economically costly.

• “Green” infrastructure (GI) helps stop runoff

pollution by capturing rainwater and either storing

it for use or letting it filter back into the ground,

replenishing vegetation and groundwater supplies.

• GI mimics the way nature collects and cleanses

water.

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Benefits of Green Infrastructure

• Reducing costs of Clean Water Act compliance

$0

$1

$2

$3

$4

$5

$6

$7

Gray Infrastructure Green Infrastructure

Bill

ion

s

Estimated Cost of Philadelphia CWA Compliance

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Philadelphia Stormwater: Challenges and GI

Opportunity • To comply with the Clean Water Act, Philadelphia will need

to install approximately 10,000 “greened acres” over the

next 25 years.

• By greening the public right-of-way only, the city’s estimated

cost is $250,000/acre, or $5.74/ft2.

• Philadelphia can achieve its greened acre goal more

cheaply through a combination of policy measures to prime

the private GI market than through greening in the public

right-of-way alone.

Philadelphia’s Green City Clean Water Initiative (Before)

Philadelphia’s Green City Clean Water Initiative (After)

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Examples of Green Infrastructure

• Downspout disconnections

• Vegetated swales

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• Street trees

• Green roofs

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• Green space

• Rain barrels

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• Rain gardens

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• Permeable pavement

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Non-Water-Quality Benefits of Green

Infrastructure

• Recharge groundwater supplies / improve water conservation

• Cooling and cleansing the air

• Reducing asthma and heat-related illnesses

• Lowering heating and cooling energy costs

• Beautifying neighborhoods

• Increased property values

• Spurring economic revitalization

• Creating green jobs

• Improving urban quality of life

Stormwater Retrofit Cost Curve

Three possible approaches to financing*

Third party financing w/on-

bill repayment

Pay for Performance PPP

Concept Private capital funds

commercial property owners to

implement GI retrofit

Use of private-public-

partnership approach: City

contracts with ‘Utility’ to deliver

storm-water mitigation

projects; ‘Utility’ provides

construction, maintenance,

compliance management, and

financing

Source of

repayments

Municipality reduces fees to

commercial property owners for

every acre greened, avoided

cost to parcel owner as basis

for investor repayment.

The City pays the utility

through a long term pay-for-

performance services contract

effectively leasing the storm-

water mitigation service for the

duration of the contract

*These approaches can be utilized independently or can be bundled together

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Private GI Investment Return Based on Avoided

Stormwater Fees Practice type Retrofit cost /ft2

25-75% quartiles

Downspout disconnections

$0.33-0.38

Vegetated Swales

$0.64-2.13

Infiltration Trenches

$1.38-1.58

Rainwater Harvest/Reuse

$1.28-5.33

Rain gardens $3.88-4.43

Porous Pavement $4.88-5.58

Green Roof $30.70-63.97

Cost ranges can vary greatly on a case-by

case basis. These ranges are most useful

as points of comparison across types.

• Avoiding fees is key incentive for

an owner to retrofit

• For a commercial property owner

utilizing own capital and an

assumed payback of four years

Project must cost less than

approximately $0.40/ft2

• For a third-party investor and an

assumed ten year repayment at

8%

Project must cost less than

approximately $0.82/ft2

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Private GI Investment Return Based on Avoided

Stormwater Fees

Most private property

owners will seek third-

party financing for

green infrastructure

retrofits

Challenges and Potential Solutions in Private GI Project

Financing

Challenges to financing

• Lack of collateral

• Existing mortgages on

property

• Unproven track record of

project performance

• Policy uncertainty

Promising solutions

• Utilization of existing revenue

collection streams - property

taxes and utility bills

• Loan loss reserve (or other

use of public funds for credit

enhancement) to insulate

investors from potential

losses

• Specify long-term stormwater

fee structure

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Policy Measures Can Help Catalyze GI Investment in

Philadelphia

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Pay-for-Performance Strategies Present

Opportunities for GI

• Pay-for-Performance contracts are Public-Private partnerships

in which the contract is based on outcomes

• Evaluations of the early Pay-for-Performance models identify

clear success factors including:

• Support from state and local agencies that view the dual goal of

achieving environmental outcomes and better utilizing fiscal resources

as a priority

• Interventions that have demonstrated the ability to achieve measurable

environmental outcomes; and

• Cost-effective access to credible data

• NatLab believes environmental problems present special

opportunities for Pay-for-Performance partnerships

Pay-for-Performance Mechanisms and Philadelphia

• Pay-for-Performance could capture most cost-effective GI

investment opportunities city-wide across full range of land

types while facilitating project aggregation

• Potential benefits to municipality of Pay-for-Performance

structure:

• Lower the costs of construction and maintenance

• Accelerate project implementation

• Access new sources of investment capital

• Preserve municipal balance sheet capacity

• Incentivize optimal performance by shifting performance risk to

private partners where payments are tied directly to performance

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Next Steps for NatLab

• Working with Philadelphia Water Department (PWD) to

design first of its kind pay-for-performance mechanism

for delivery of greened acres

• Structure will borrow from both traditional PPP structure and

more innovative concepts such as Social Improvement Bonds

• NatLab raising grant funding to execute the pilot

• Identifying additional cities where innovative structures

can bring private capital to natural infrastructure finance

Thank You

FULL REPORT: http://www.ekoamp.com/media/StormWater_Report_11.pdf

Eron Bloomgarden, eron@ekoamp.com

CityLinks Questions?

• Contact Laura Hagg at lhagg@icma.org or visit the CityLinks website: icma.org/citylinks.

• Access our climate resources at Knowledge Network – Climate Preparedness, Adapatation and Resilience Group - located here http://icma.org/en/icma/knowledge_network/groups/kn/Group/1331/Climate_Preparedness_Adaptation__Resilience