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
LL
AR
DA
MA
GE
S IN
TH
OU
SA
ND
SD
OL
LA
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AM
AG
ES
IN T
HO
US
AN
DS
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
MA
GE
DA
MA
GE
DA
MA
GE
DA
MA
GE
EX
PE
CT
ED
A
NN
UA
L
FL
OO
D
LO
SS
EX
PE
CT
ED
A
NN
UA
L
FL
OO
D
LO
SS
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'[email protected]@.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
CEN
T D
AM
AG
EPE
RC
ENT
DA
MA
GE
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
NE
T E
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EF
TIS
IN
NE
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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
AG
EP
ER
CE
NT
DA
MA
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
NE
T E
XC
ES
S B
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TIS
IN
N
ET
EX
CE
SS
BE
NE
FT
IS I
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AN
DS
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
GE
S IN
D
AM
AG
ES
IN
TH
OU
SA
ND
ST
HO
US
AN
DS
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
TH
OU
SA
ND
S O
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LA
RS
TH
OU
SA
ND
S O
F D
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LA
RS
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