Formulating and Evaluating

Measures for Flood Risk Management

Econ Analysis

PROSPECT

Formulating and Evaluating

Measures for Flood Risk Management

Econ Analysis

PROSPECT

Expanding the Approach to PlanningExpanding the Approach to Planning• Corps’ Strategic Plan

• A holistic focus on water problems and opportunities.

• Attention to the watershed • A systems approach • Collaboration, partnerships, and teamwork • An emphasis on efficiencies

• 12 Actions for Change

• Integrated, comprehensive, systems-based

• Risk-based concepts, communication

• EC 1105-2-404

• Planning under the Environmental Operating Principles

• Corps’ Strategic Plan• A holistic focus on water problems and

opportunities.• Attention to the watershed • A systems approach • Collaboration, partnerships, and teamwork • An emphasis on efficiencies

• 12 Actions for Change

• Integrated, comprehensive, systems-based

• Risk-based concepts, communication

• EC 1105-2-404

• Planning under the Environmental Operating Principles

Goal:Goal:Maximize National Economic Development Benefits consistent with protecting the environment

(i.e., maximize net excess benefits, benefits minus costs)

Determines the extent of Federal investment

Maximize National Economic Development Benefits consistent with protecting the environment

(i.e., maximize net excess benefits, benefits minus costs)

Determines the extent of Federal investment

The basis for damage reduction benefits is the comparison of the Without Project Condition (existing condition) against the With Project Condition (project in place) at some point in time or over a period of time (e.g., 50 years).

The basis for damage reduction benefits is the comparison of the Without Project Condition (existing condition) against the With Project Condition (project in place) at some point in time or over a period of time (e.g., 50 years).

Justification:Justification:

GuidanceGuidance

Traditional methodology applies to both structural and nonstructural

Specific methodology for nonstructural

Traditional methodology applies to both structural and nonstructural

Specific methodology for nonstructural

For Flood Risk Management

Benefit Evaluation

For Flood Risk Management

Benefit Evaluation

ER 1105-2-100, Appendix E, 31 Mar 2005

IWR Report 88-R-2, National Economic Development Procedures Manual, Urban Flood Damage ER 1105-2-101, 1 March 1996

ER 1105-2-101, 1 March 1996 (R&U)

ER 1105-2-100, Appendix E, 31 Mar 2005

IWR Report 88-R-2, National Economic Development Procedures Manual, Urban Flood Damage ER 1105-2-101, 1 March 1996

ER 1105-2-101, 1 March 1996 (R&U)

GuidanceGuidanceFor Flood Risk Management Benefit Evaluation--traditional methodologyFor Flood Risk Management Benefit Evaluation--traditional methodology

Implementation Guidance for Section 219, Water Resources Development Act of 1999, Nonstructural Flood Control Projects

Important to the evaluation of Evacuations and Relocations

Implementation Guidance for Section 219, Water Resources Development Act of 1999, Nonstructural Flood Control Projects

Important to the evaluation of Evacuations and Relocations

For Flood Risk Management Benefit Evaluation -- specific methodology

For Flood Risk Management Benefit Evaluation -- specific methodology

GuidanceGuidance

Data Requirements

for

Economic Analysis

Data Requirements

for

Economic Analysis

With which to develop without project condition -- average annual equivalent damages under without project, base condition for a given interest rate and

price level.

With which to develop without project condition -- average annual equivalent damages under without project, base condition for a given interest rate and

price level.

Data requirements required for analysis:

• Structure Inventory

• Depth-damage Relationship

• H&H Water Surface Profiles

For near term and “most likely” future conditions

8 flood frequencies for input into HEC-FDA

Risk and Uncertainty parameters

Data requirements required for analysis:

• Structure Inventory

• Depth-damage Relationship

• H&H Water Surface Profiles

For near term and “most likely” future conditions

8 flood frequencies for input into HEC-FDA

Risk and Uncertainty parameters

Data Requirements for Economic AnalysisData Requirements for Economic Analysis

Integration tool

HEC-FDA with Risk and Uncertainty

Express uncertainty in:Depth-damage Curves

Structure Values Content Values First-floor Elevation Structure Types Flood Warning Times Flood Evacuation Effectiveness

Integration tool

HEC-FDA with Risk and Uncertainty

Express uncertainty in:Depth-damage Curves

Structure Values Content Values First-floor Elevation Structure Types Flood Warning Times Flood Evacuation Effectiveness

Data Requirements for Economic Analysis (Continued)

Data Requirements for Economic Analysis (Continued)

5 data elements for each structure

type -- match with depth-percent damage curves

value--replacement value less depreciation

location--with reference to river/stream stationing X and Y coordinates

ground elevation--derive from TIN, contour maps Z coordinate

first floor correction/threshold of flooding -- critical to damage estimation

5 data elements for each structure

type -- match with depth-percent damage curves

value--replacement value less depreciation

location--with reference to river/stream stationing X and Y coordinates

ground elevation--derive from TIN, contour maps Z coordinate

first floor correction/threshold of flooding -- critical to damage estimation

Develop Structure InventoryDevelop Structure InventoryData Requirements for Economic Analysis

Crssrefpid 7485-0006-0003-000 Nunits 0Id R154848 Easting 3232780.7Sptb A1 Northing 13766815.3Situs 30 W 5TH ST Rd_elev 6.9Situscity KEMAH, TX 77565 Zst_floor 6.9Name RIVERA, J ALFONSO & Zval_tin 6.17Str_desc ONE STORY Station 3488.6508Const_type wood frame Land_hs 5650Gen_type R Land_nhs 0Struct_crv RS1 Imp_hs 23850Invent_crv RC1 Imp_nhs 0Equip_crv 999 Struc_Val 23850Comments Total_valu 29500Firstflr 0 Contnt_val 0Highlow Low LegalFloor_num 1 ABST 12 PAGE 1 W 7.7 FT OF LOT 2 & ALL

LOT3 BLK 6 WEST KEMAH SUB

Example of Tax Appraisal District Property Record as Attribute File

Hypothetical Example--data elementsHypothetical Example--data elements

Develop Structure Inventory Without Project Damages Computation

Type One-Story Residential, No Basement

Value $75,000 replacement cost less

depreciation

Exterior Brick Veneer, Square Feet

= 2,500

Location Greens Bayou Cross Section

167017

Ground elevation 84.5 feet msl

First floor elevation 86.5 feet msl

Type One-Story Residential, No Basement

Value $75,000 replacement cost less

depreciation

Exterior Brick Veneer, Square Feet

= 2,500

Location Greens Bayou Cross Section

167017

Ground elevation 84.5 feet msl

First floor elevation 86.5 feet msl

Depth-Damage Relationship

percent damage to structure and contents based on value of structure by increment of flood stage/elevation

includes uncertainty in estimation

percent damage to structure and contents based on value of structure by increment of flood stage/elevation

includes uncertainty in estimation

EGM 01-03, Generic Depth-Damage Relationship

EGM 01-03, Generic Depth-Damage Relationship

As per EGM 01-03

Depth-percent Damage Curves with Uncertainty Residential, One-story, No Basement, $75,000 Value

$0$0

$10$10

$20$20

$30$30

$40$40

$50$50

$60$60

$70$70

$80$80

11 22 33 44 55 66 77 88 99 1010 1111 1212 1313 1414 1515 1616 1717 1818 1919

DEPTH OF FLOODING RELATIVE TO FIRST FLOOR ELEVATIONDEPTH OF FLOODING RELATIVE TO FIRST FLOOR ELEVATION

DO

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LOWER LIMIT-STRUCTURE DAMAGE UPPER LIMIT-STRUCTURE DAMAGE

LOWER LIMIT-CONTENT DAMAGE UPPER LIMIT-CONTENT DAMAGE

Without Project Depth-Percent Damages

DEPTHDEPTHOF OF

FLOODINGFLOODING-2-10123456789

10111213141516

FLOODFLOODSTAGESTAGE

84.585.586.587.588.589.590.591.592.593.594.595.596.597.598.599.5

100.5101.5102.5

DEPTHDEPTHDAMAGEDAMAGECURVECURVE0.0000.0250.1340.2330.3210.4010.4710.5320.5860.6320.6720.7050.7320.7540.7720.7850.7950.8020.807

MEANMEANSTRUCTURESTRUCTURE

DAMAGEDAMAGE$0.00$1.88

$10.05$17.48$24.08$30.08$35.33$39.90$43.95$47.40$50.40$52.88$54.90$56.55$57.90$58.88$59.63$60.15$60.53

DEPTHDEPTHDAMAGEDAMAGECURVECURVE0.0000.0240.0810.1330.1790.2200.2570.2880.3150.3380.3570.3720.3840.3920.3970.4000.4000.4000.400

MEANMEANCONTENTCONTENTDAMAGEDAMAGE

$0.00$1.80$6.08$9.98

$13.43$16.50$19.28$21.60$23.63$25.35$26.78$27.90$28.80$29.40$29.78$30.00$30.00$30.00$30.00

(One-story, No Basement Residential Valued at $75,000)

Near-Term Without Project Frequency-Damage

No uncertainty presented

FLOODFLOOD

EVENTEVENT

FLOODFLOOD

STAGESTAGE

ANNUALANNUAL

PROBABILITYPROBABILITY

OFOF

OCCURRENCEOCCURRENCE

STRUCTURESTRUCTURE

FLOODFLOOD

DAMAGESDAMAGES

CONTENTCONTENT

FLOODFLOOD

DAMAGESDAMAGES

TOTALTOTAL

FLOODFLOOD

DAMAGESDAMAGES

25

102550

100250500

0.50.20.10.040.020.010.0040.002

83.1386.3387.6488.7989.3989.7790.3090.49

$0.00$8.66

$18.40$25.82$29.42$31.49$34.28$35.27

$0.00$5.35

$10.78$14.32$16.16$17.25$18.72$19.25

$0.00$14.01$29.18$40.13$45.58$48.74$53.00$54.52

(One-story, No Basement Residential Valued at $75,000)(One-story, No Basement Residential Valued at $75,000)

Integration Technique Graphically Displayed

ELEVATIONELEVATION

ELEVATIONELEVATION

FREQUENCYFREQUENCY

FREQUENCYFREQUENCY

DIS

CH

AR

GE

DIS

CH

AR

GE

DIS

CH

AR

GE

DIS

CH

AR

GE

DA

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GE

DA

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GE

DA

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GE

DA

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EX

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L

FL

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EX

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FL

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Frequency Damages Annualized as Expected Annual Damages

FREQUENCYFREQUENCY

ANNUAL ANNUAL PROB. OFPROB. OF

OCCURRENCEOCCURRENCE DAMAGESDAMAGESDAMAGEDAMAGEINTERVALINTERVAL

OCCURRENCEOCCURRENCEINTERVALINTERVAL

ANNUALANNUALDAMAGESDAMAGES

$54.52

$53.76

$52.09

$47.16

$42.85

$34.66

$21.59

$7.00

$0.00

0.002

0.008

0.006

0.01

0.02

0.06

0.1

0.3

0.5

$0.11

$0.43

$0.31

$0.47

$0.86

$2.08

$2.16

$2.10

$0.00

SPF

SPF

250-YR

100-YR

50-YR

25-YR

10-YR

5-YR

2-YR

1-YR

500

500

250

100

50

25

10

5

2

1

0

0.002

0.004

0.01

0.02

0.04

0.1

0.2

0.5

1

$54.52

$54.52

$53.00

$48.74

$45.58

$40.13

$29.18

$14.01

$0.00

$0.00

DAMAGESDAMAGES $8.51$8.51

PWE, EAD'SPWE, EAD'S@.06375@.06375 $127.37$127.37

EXPECTED ANNUALEXPECTED ANNUAL

Now what?Now what?

Are damages of sufficient magnitude to warrant Federal action?

Are there sufficient number of properties to cover fixed cost of possible remedy? (applies to nonstructural)

Are damages of sufficient magnitude to warrant Federal action?

Are there sufficient number of properties to cover fixed cost of possible remedy? (applies to nonstructural)

Goal of NED analysis:Goal of NED analysis: Establish Federal Interest with a

positive Benefit-Cost Ratio

Optimize Plan by Maximizing Net Excess Benefits--money spent most economically efficiently

Establish Federal Interest with a positive Benefit-Cost Ratio

Optimize Plan by Maximizing Net Excess Benefits--money spent most economically efficiently

What Can We Afford to Do?What Can We Afford to Do?

March 2008 25

Structural measuresStructural measures

• Modify flood behavior, change flood profileModify flood behavior, change flood profile

• Dams and reservoirs, levees, walls, diversion Dams and reservoirs, levees, walls, diversion channels, bridge modifications, channel channels, bridge modifications, channel alterations, pumping, and land treatmentalterations, pumping, and land treatment

Nonstructural measuresNonstructural measures

• Modify damage susceptibilityModify damage susceptibility

• Flood warning and preparedness; Evacuation Flood warning and preparedness; Evacuation and relocation; Land use regulations; Flood and relocation; Land use regulations; Flood proofing; Area renewal policiesproofing; Area renewal policies

Structural measuresStructural measures

• Modify flood behavior, change flood profileModify flood behavior, change flood profile

• Dams and reservoirs, levees, walls, diversion Dams and reservoirs, levees, walls, diversion channels, bridge modifications, channel channels, bridge modifications, channel alterations, pumping, and land treatmentalterations, pumping, and land treatment

Nonstructural measuresNonstructural measures

• Modify damage susceptibilityModify damage susceptibility

• Flood warning and preparedness; Evacuation Flood warning and preparedness; Evacuation and relocation; Land use regulations; Flood and relocation; Land use regulations; Flood proofing; Area renewal policiesproofing; Area renewal policies

Flood Risk Management Measures

Primary Difference in

Implementationof

Nonstructural Measures

Primary Difference in

Implementationof

Nonstructural Measures

Affect Change to Privately-Owned Land

Affect Change to Privately-Owned Land

March 2008 27

Damage Reach

Discharge

Dis

cha

rge

Discharge

Probability

Sta

ge

StageD

am

age

Evaluation of Without Project Condition

March 2008 28

Damage Reach

Discharge

Discharge

Dis

charg

e

Probability

Sta

ge

Stage

Da

mage

May induce higher flow rates downstream if storage eliminated

Channel Modification

March 2008 29

Damage Reach

Discharge

Discharge

Dis

cha

rge

Probability

Sta

ge

StageD

am

ag

e

HEC-FDA S-$ curve

HEC-FDA truncated in EAD

Levee

Elevation: elevate structure on fill/beams/etc. Raising-in place, raising to target

Flood Proofing, Dry: seal/waterproof

Floodwalls and Berms

Flood Proofing, Wet: flood proof first floor, elevate contents

Floodwarning

Relocation/Buyout/Acquisition

Elevation: elevate structure on fill/beams/etc. Raising-in place, raising to target

Flood Proofing, Dry: seal/waterproof

Floodwalls and Berms

Flood Proofing, Wet: flood proof first floor, elevate contents

Floodwarning

Relocation/Buyout/Acquisition

Nonstructural MeasuresChange to stage-damage curve only

Which Measures Apply?Which Measures Apply?

Damage profile, distribution of damages Activities in watershed/floodplain: upstream,

downstream, existing and projected land use Environmental concerns Non-Federal sponsor’s preference?

Damage profile, distribution of damages Activities in watershed/floodplain: upstream,

downstream, existing and projected land use Environmental concerns Non-Federal sponsor’s preference?

Where are the Bennies?

Which categories are appropriate for each measure?

Where are the Bennies?

Which categories are appropriate for each measure?

Economic Benefit Calculation

Benefit Categories for Structural Measures

Benefit Categories for Structural Measures

Inundation Reduction Reduction in FIA Overhead Location

• Flood Proofing Costs Reduced Intensification

• Restoration of Land Values

Inundation Reduction Reduction in FIA Overhead Location

• Flood Proofing Costs Reduced Intensification

• Restoration of Land Values

March 2008 34

New activity moves into the protected floodplainBenefits calculated as whichever is less

of:– Increased potential damages in the

changed land use assuming without project conditions; or

– Cost of fill/flood proofing

New activity moves into the protected floodplainBenefits calculated as whichever is less

of:– Increased potential damages in the

changed land use assuming without project conditions; or

– Cost of fill/flood proofing

Location Benefits

March 2008 35

Intensification BenefitsIntensification Benefits

Existing activity is intensifiedBenefits calculated as:

– Increased income as a result of intensified activity» Increased land values» Computation of costs and revenues

Existing activity is intensifiedBenefits calculated as:

– Increased income as a result of intensified activity» Increased land values» Computation of costs and revenues

BENEFITS TO NONSTRUCTURAL MEASURES

BENEFITS TO NONSTRUCTURAL MEASURES

Inundation Reduction Reduction in FIA Overhead Value of New Use of Floodplain for

Relocations/Buyouts

Inundation Reduction Reduction in FIA Overhead Value of New Use of Floodplain for

Relocations/Buyouts

Claimable BenefitsClaimable Benefits

Reduction in primary flood damages to structures and contents

Reduction in primary flood damages to structures and contents

Dry Flood Proofing

Dry Flood Proofing

ElevationElevation

Berms and FloodwallsBerms and Floodwalls

FloodwarningFloodwarning

Claimable BenefitsClaimable Benefits Reduction in primary flood

damages to contents

Reduction in damages to vehicles

Reduction in primary flood damages to contents

Reduction in damages to vehicles

Relocation:Floodplain Evacuation/BuyoutRelocation:Floodplain Evacuation/Buyout

Claimable BenefitsClaimable Benefits Reduction in primary flood damages to

structures and contents

Reduction in FIA overhead

Value of new use of vacated land

Recreation benefits

Reduction in damage to public property, utilities, roads

Reduction in post-emergency evacuation/cleanup costs

Reduction in primary flood damages to structures and contents

Reduction in FIA overhead

Value of new use of vacated land

Recreation benefits

Reduction in damage to public property, utilities, roads

Reduction in post-emergency evacuation/cleanup costs

RelocationRelocation

Elevation:

Elevate structure on fill/beams/etc. Raising-in-Place, Raising to Target

Elevation:

Elevate structure on fill/beams/etc. Raising-in-Place, Raising to Target

ElevationElevation

Structure Flood Proofed by Abandoning First Floor and Moving Living Quarters to

Upper Levels

Raising-in-Place

(Comparison of Raising a 1-story, No Basement Residential Structure)

(Comparison of Raising a 1-story, No Basement Residential Structure)

Stage-Percent Damage CurveStage-Percent Damage Curve

WITHOUT PROJECTWITHOUT PROJECT RAISE 2 FEETRAISE 2 FEET RAISE 3 FEETRAISE 3 FEET RAISE 8 FEETRAISE 8 FEET

0%0%

10%10%

20%20%

30%30%

40%40%

50%50%

60%60%

70%70%

80%80%

90%90%

84.584.5 85.585.5 86.586.5 87.587.5 88.588.5 89.589.5 90.590.5 91.591.5 92.592.5 93.593.5 94.594.5 95.595.5 96.596.5 97.597.5 98.598.5 99.599.5 100.5100.5 101.5101.5 102.5102.5

FLOOD STAGEFLOOD STAGE

PER

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RC

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DA

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Hypothetical Example

DAMAGESDAMAGES DAMAGESDAMAGESREDUCEDREDUCED

PWEPWEBENEFITSBENEFITS

PWEPWECOSTSCOSTS

PWEPWENET EXCESSNET EXCESS

BENEFITSBENEFITS

AAEVAAEVNET EXCESSNET EXCESS

BENEFITSBENEFITS

EXISTINGEXISTING $8.51$8.51

RAISE 2 FTRAISE 2 FT $2.34$2.34 $6.17$6.17 $92.41$92.41 $79.43$79.43 $12.98$12.98 $0.87$0.87

RAISE 3 FTRAISE 3 FT $0.23$0.23 $8.28$8.28 $123.98$123.98 $82.69$82.69 $41.29$41.29 $2.76$2.76

RAISE 8 FTRAISE 8 FT $0.00$0.00 $8.51$8.51 $127.37$127.37 $96.39$96.39 $30.98$30.98 $2.07$2.07

Evaluate and Optimize Raising Residential Structure

Optimization of Raising-in-Place

$0.87

$2.76

$2.07

$0$0

$1$1

$1$1

$2$2

$2$2

$3$3

$3$3

RAISE 2 FTRAISE 2 FT RAISE 3 FTRAISE 3 FT RAISE 8 FTRAISE 8 FT

PLANS FOR RAISINGPLANS FOR RAISING

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Net Excess Average Annual Equivalent Benefits Comparison-- Raising in Place

Dry Flood Proofing:

Seal/Waterproof

Dry Flood Proofing

Dry Flood Proofing

Dry Flood Proofing :

seal/waterproof and Levees, Floodwall, and Berms

Comparison of Stage-damage for Flood Proofing a 1-story, No Basement, Residential Structure

Comparison of Stage-damage for Flood Proofing a 1-story, No Basement, Residential Structure

0%0%10%10%20%20%30%30%40%40%50%50%60%60%70%70%80%80%90%90%

84.5

84.5

85.5

85.5

86.5

86.5

87.5

87.5

88.5

88.5

89.5

89.5

90.5

90.5

91.5

91.5

92.5

92.5

93.5

93.5

94.5

94.5

95.5

95.5

96.5

96.5

97.5

97.5

98.5

98.5

99.5

99.5

101

101

102

102

103

103

FLOOD STAGEFLOOD STAGE

PE

RC

EN

T D

AM

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EP

ER

CE

NT

DA

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GE

WITHOUT PROTECTIONWITHOUT PROTECTION 2 FT PROTECTION2 FT PROTECTION 3 FT PROTECTION3 FT PROTECTION 4 FT PROTECTION4 FT PROTECTION

Optimization of Protection Height

PWEPWE AAEVAAEVDAMAGESDAMAGES DAMAGESDAMAGES PWEPWE PWEPWE NET EXCESSNET EXCESS NET EXCESSNET EXCESS

REDUCEDREDUCED BENEFITSBENEFITS COSTSCOSTS BENEFITSBENEFITS BENEFITSBENEFITS

EXISTINGEXISTING $8.51$8.51

2 FT PROTECTION2 FT PROTECTION $1.71$1.71 $6.80$6.80 $101.76$101.76 $11.20$11.20 $90.56$90.56 $6.05$6.05

3 FT PROTECTION3 FT PROTECTION $0.50$0.50 $8.00$8.00 $119.82$119.82 $16.40$16.40 $103.42$103.42 $6.91$6.91

4 FT PROTECTION4 FT PROTECTION $0.00$0.00 $8.51$8.51 $127.37$127.37 $26.70$26.70 $100.67$100.67 $6.72$6.72

Dollars X 1,000

Dry Flood Proofing :

Seal/waterproof also

Levees, Floodwalls, and Berms

Optimization of Protection HeightOptimization of Protection Height

Net Excess Average Annual Equivalent Benefit Comparison -- Floodwall HeightNet Excess Average Annual Equivalent Benefit Comparison -- Floodwall Height

$6.05$6.05

$6.91$6.91

$6.72$6.72

$5.60$5.60

$5.80$5.80

$6.00$6.00

$6.20$6.20

$6.40$6.40

$6.60$6.60

$6.80$6.80

$7.00$7.00

2 FT2 FT

PROTECTIONPROTECTION3 FT3 FT

PROTECTIONPROTECTION4 FT4 FT

PROTECTIONPROTECTION

PLANS FOR PROTECTIONPLANS FOR PROTECTION

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Wet Flood Proofing:Flood Proof first floor, Elevate contents

Wet Flood Proofing

Wet Flood Proofing

Wet Flood Proofing:Hypothetical - Change to Content Damages Only

Damage Frequency Curve For One-story, No Basement Residential Structure $75,000 Value

Damage Frequency Curve For One-story, No Basement Residential Structure $75,000 Value

$0$0$10$10$20$20$30$30$40$40$50$50$60$60

0.50.5 0.20.2 0.10.1 0.040.04 0.020.02 0.010.01 0.0040.004 0.0020.002

EXCEEDANCE PROBABILITYEXCEEDANCE PROBABILITY

DA

MA

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S IN

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WITHOUT PROJECTWITHOUT PROJECT RAISE CONTENTSRAISE CONTENTS

Flood Warning

Flood Warning ResponseWARNINGWARNING

TIME IN HRSTIME IN HRSPERCENTPERCENT

CONTENT DAMAGECONTENT DAMAGE

REDUCTIONREDUCTION

AAEVAAEV

CONTENT DAMAGESCONTENT DAMAGES

REDUCEDREDUCED

0.00 0.00 $0.00

0.25 0.63 $0.02

0.50 1.25 $0.04

0.75 1.88 $0.06

1.00 2.50 $0.08

6.00 15.00 $0.47

12.00 21.00 $0.66

18.00 26.00 $0.81

24.00 29.00 $0.91

30.00 32.00 $1.00

36.00 33.00 $1.03

42.00 34.00 $1.06

48.00 35.00 $1.10

Flood Warning

Lead Time Damages PreventedFlood Warning

Lead Time Damages Prevented

00

55

1010

1515

2020

2525

3030

3535

4040

0.000.00 10.0010.00 20.0020.00 30.0030.00 40.0040.00 50.0050.00 60.0060.00

Lead Time in HoursLead Time in Hours

Per

cen

t C

on

ten

t D

amag

e P

erce

nt

Co

nte

nt

Dam

age

Red

uce

dR

edu

ced

Day, Harold. “Flood Warning Benefit Evaluation-Susquehanna River Basin,” NOAA Tech Memo, WBTM HDRO-10, March, 1970.

Flood Warning: Damage Reduction Estimate

Average Annual Equivalent Content Damages Reduced For One-story, No Basement, Residential Structure, $75,000 Value

Average Annual Equivalent Content Damages Reduced For One-story, No Basement, Residential Structure, $75,000 Value

$0.00$0.00

$0.20$0.20

$0.40$0.40

$0.60$0.60

$0.80$0.80

$1.00$1.00

$1.20$1.20

0.000.00 10.0010.00 20.0020.00 30.0030.00 40.0040.00 50.0050.00 60.0060.00

WARNING TIME IN HOURSWARNING TIME IN HOURS

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Relocation:Floodplain Evacuation/Buyout

Claimable BenefitsClaimable Benefits Reduction in primary flood damages to

structures and contents

RE: Implementation Guidance for Section 219 of WRDA ‘99

Reduction in FIA overhead

Value of new use of vacated land

Recreation benefits

Reduction in damage to public property, utilities, roads

Reduction in post-emergency evacuation/cleanup costs

Reduction in primary flood damages to structures and contents

RE: Implementation Guidance for Section 219 of WRDA ‘99

Reduction in FIA overhead

Value of new use of vacated land

Recreation benefits

Reduction in damage to public property, utilities, roads

Reduction in post-emergency evacuation/cleanup costs

RelocationRelocation

Nonstructural Flood Control ProjectsNonstructural Flood Control Projects Directs that Corps calculate benefits for

nonstructural flood damage reduction similarly to methods for structural projects

Corps now calculates benefits for evacuation/relocation projects as total flood damages reduced, not just the externalized flood damages as previously required.

Real Estate costs used for benefit-cost calculation will use comparable flood-free lands costs in the valuation of floodplain land.

Directs that Corps calculate benefits for nonstructural flood damage reduction similarly to methods for structural projects

Corps now calculates benefits for evacuation/relocation projects as total flood damages reduced, not just the externalized flood damages as previously required.

Real Estate costs used for benefit-cost calculation will use comparable flood-free lands costs in the valuation of floodplain land.

Implementation Guidance for Section 219, WRDA ‘99

Relocation:

Floodplain Evacuation/Buyout

Other ConsiderationsOther Considerations Opportunities for Ecosystem Restoration,

however, ecosystem restoration may require a separate local sponsor, depending on situation and sponsor’s extent of authority

Need to act swiftly to execute buyouts once the public becomes aware of the impending action

Need to demolish structures and clear debris immediately to minimize vandalism and protect the surrounding neighborhood

Opportunities for Ecosystem Restoration, however, ecosystem restoration may require a separate local sponsor, depending on situation and sponsor’s extent of authority

Need to act swiftly to execute buyouts once the public becomes aware of the impending action

Need to demolish structures and clear debris immediately to minimize vandalism and protect the surrounding neighborhood

BuyoutBuyout

Recreational Benefit AnalysisRecreational Benefit Analysis

The success of a relocation/buyout solution may be contingent on the recreational opportunities created from the open space created.

The success of a relocation/buyout solution may be contingent on the recreational opportunities created from the open space created.

Recreation Benefit AnalysisRecreation Benefit Analysis

Nonstructural FRM projects allow adding recreation benefits to justify the overall project

and

there is NO LIMIT to the recreation allowed so long as primary purpose benefits cover at least 50 percent of the costs.

Nonstructural FRM projects allow adding recreation benefits to justify the overall project

and

there is NO LIMIT to the recreation allowed so long as primary purpose benefits cover at least 50 percent of the costs.

that include Nonstructural Flood Risk Management (Cost = $8M), Ecosystem Restoration (Cost = $2M), and Recreation

that include Nonstructural Flood Risk Management (Cost = $8M), Ecosystem Restoration (Cost = $2M), and Recreation

The cost of recreation may not exceed 1/2 of the total cost for flood risk management and recreation (recreation = $8M)

For recreation associated with ecosystem restoration,

the Federal cost of ecosystem restoration + the Federal cost of recreation may not exceed by more than 10% the Federal cost of the Ecosystem Restoration Project without prior approval of ASA(CW) (recreation = $200,000)

The cost of recreation may not exceed 1/2 of the total cost for flood risk management and recreation (recreation = $8M)

For recreation associated with ecosystem restoration,

the Federal cost of ecosystem restoration + the Federal cost of recreation may not exceed by more than 10% the Federal cost of the Ecosystem Restoration Project without prior approval of ASA(CW) (recreation = $200,000)

For Multipurpose ProjectsFor Multipurpose Projects

3 Evaluation Methods for Recreation Analysis

3 Evaluation Methods for Recreation Analysis

Travel Cost Method (TCM)

Travel Cost Method (TCM) Contingent

Valuation Method (CVM)

Contingent Valuation Method (CVM) Unit Day

ValueUnit Day

Value

Recreation Decision

Tree

Recreation Decision

Tree

YESYES

NONOYESYES

YESYES

YESYESYESYES

NONO

NONONONO

Is an applicable regional model

available?

Use regional model (TCM or

CVM)

Use regional model (TCM or

CVM)

Do uses affected involve specialized

recreation activities?

Develop a regional model or conduct

a site-specific study (TCM or CVM)

Do estimated annual visits affected exceed

750,000?

Do expected costs exceed 25 percent of expected total project

costs?

Do specific annual Federal recreation costs exceed $1,000,000 (FY

1982)

Use unit day values

Use Unit Day Value if…Use Unit Day Value if…

The Annual Visitation < 750,000

and

Opportunities Created Tend to Be Generalized

and

You Can Justify Not Using the CVM or the TCM

The Annual Visitation < 750,000

and

Opportunities Created Tend to Be Generalized

and

You Can Justify Not Using the CVM or the TCM

Incorporate input from the public and knowledgeable experts to assign points to recreational features for UDV

Incorporate input from the public and knowledgeable experts to assign points to recreational features for UDV

Make sure ecosystem restoration is not compromised by recreational features if pursuing both

Make sure ecosystem restoration is not compromised by recreational features if pursuing both

ReferencesReferences

EGM 09-03,

Unit Day Values for Recreation,

FY 2009

published annually

EGM 09-03,

Unit Day Values for Recreation,

FY 2009

published annually

A Moment To Say A Word About …

A Moment To Say A Word About …

COSTSCOSTS(Not now, dear, I have a headache)(Not now, dear, I have a headache)

ReferencesReferences

ER 1105-2-100, Appendix D-3, “NED Cost Evaluation Procedures” and

National Economic Development Procedures Manual--National Economic Development Costs, DACWC72-90-D-0002, Task Order 0010, June 1993

ER 1105-2-100, Appendix D-3, “NED Cost Evaluation Procedures” and

National Economic Development Procedures Manual--National Economic Development Costs, DACWC72-90-D-0002, Task Order 0010, June 1993

When Costing Relocations/Evacuations…

When Costing Relocations/Evacuations…

Use Economic Costs, not Project Costs for economic benefit-cost calculations

When establishing costs for relocations, DO NOT include betterments as an economic cost.

Ask Cost Estimating to please identify any betterments among the project costs before they give them to you for your net excess benefit calculation.

Use Economic Costs, not Project Costs for economic benefit-cost calculations

When establishing costs for relocations, DO NOT include betterments as an economic cost.

Ask Cost Estimating to please identify any betterments among the project costs before they give them to you for your net excess benefit calculation.

Use Economic Costs

(proxy land values)

in the Benefit-Cost

computations

Use Project Costs

(actual property values)

in the PCA

New guidance requires

Good communication

among

Economics,

Real Estate,

and

Cost Estimating

to develop Economic and Project Costs

Relocation Assistance and Real Property Acquisition Policies Act of 1970, P.L. 91-646

Relocation Assistance and Real Property Acquisition Policies Act of 1970, P.L. 91-646

Allowable Expenses for Displaced Property OwnersAllowable Expenses for Displaced Property Owners

Reimburses the following expenses incurred:

•Moving and related expenses

•Reasonable expenses in searching for a replacement business or farm

•Differential payments for replacement housing

•Increased interest payment for mortgage to include points paid and loan origination fees

•Closing costs, title searches, notary fees, surveys, drawings of plats, recording fees, etc.

Reimburses the following expenses incurred:

•Moving and related expenses

•Reasonable expenses in searching for a replacement business or farm

•Differential payments for replacement housing

•Increased interest payment for mortgage to include points paid and loan origination fees

•Closing costs, title searches, notary fees, surveys, drawings of plats, recording fees, etc.

Moving and related expenses

• transport within 50 miles

• packing and unpacking

• advertising for packing

• insurance premiums covering loss while in transit/storage

• removal, reinstallation, reestablishment, reconnections of utilities not acquired

• uninsured losses to property while in transit

• payment of time lost, not to exceed $100

• temporary housing in time of emergency dislocation

• other reasonable expenses as deemed necessary by District Engineer

Moving and related expenses

• transport within 50 miles

• packing and unpacking

• advertising for packing

• insurance premiums covering loss while in transit/storage

• removal, reinstallation, reestablishment, reconnections of utilities not acquired

• uninsured losses to property while in transit

• payment of time lost, not to exceed $100

• temporary housing in time of emergency dislocation

• other reasonable expenses as deemed necessary by District Engineer