Loss Avoidance Analysis System and Strategy
Flood Mitigation – Building Modification Projects
2012
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
A-i
Florida Division of Emergency Management | October 2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Introduction
Introduction
In accordance with 44 CFR 201.5(b)(2)(iv), the State of Florida has developed a system and strategy by
which it will conduct an assessment of completed mitigation actions and include a record of the
effectiveness (actual cost avoidance) of each mitigation action. This system and strategy, called Loss
Avoidance Analysis (LA), is intended to contribute part of the requirements to maintain a FEMA
approved Enhanced State Hazard Mitigation Plan (SHMP). States with Enhanced status at the time of a
disaster declaration are eligible to receive additional mitigation funding (44 CFR 201.5(a)).
Loss avoidance analysis is incentivized by the Federal Government.
The United States Federal Government, as well as the State of Florida, contributes significant funds to
reduce the potential impact of natural disasters. These funds are used to implement mitigation projects
that must adhere to specific criteria identified by the programs that administer them, as well as OMB
Circulars and Codes of Federal Regulation (CFR) 1. A key criterion involves cost-effectiveness.
Most mitigation proposals are subjected to a benefit-cost analysis (BCA), which is expected to determine
the effectiveness of a project based on analysis of probabilistic hazard events. The BCA is completed
prior to project funding and prior to project construction, but policy makers have taken interest in
mitigation project performance during actual hazard events.
FEMA has developed methodologies using a quantitative approach to assess the performance of
mitigation projects based on actual post-construction hazard events. Policy now incentivizes states to do
the same.
Florida has developed a system and strategy to conduct loss avoidance analyses.
As a disaster-prone state, Florida desires to better understand the fiscal benefits of implementing
mitigation actions, as well as receive the additional five percent in Federal Hazard Mitigation Grant
Program (HMGP) funding that such analysis will help to obtain post-disaster.
Florida’s system and strategy is disaster and project context dependent. Analysts researched various loss
avoidance assessment methodologies, past FEMA loss avoidance studies, as well as other sources and
determined methods to streamline the process. This was done so as to identify ways to complete
comprehensive and presumably accurate analyses using existing staff and without adding significantly to
the cost of mitigation.
To this end, Florida has distilled engineer calculations and methodologies and developed Loss Avoidance
Calculators (LAC) for most project types that mitigate flood and wind hazards. The LAC can use limited or
robust data and losses avoided can be calculated for one event or multiple events and over the life of
the project.2 Thus, in addition to calculating losses avoided by a single project for a single event, Florida
1
Such programs include the Hazard Mitigation Grant Program (HMGP), Pre Disaster Mitigation (PDM), Repetitive
Flood Claims (RFC), and more.
2
The LACs for projects which mitigate flood hazards currently have the capacity to calculate the net present value
of a project over the course of multiple flood events.
ii
Florida Division of Emergency Management | December 2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Introduction
may be able to provide the net present value of a mitigation project or potentially the net present value,
in investment terms, of all mitigation projects in the State of Florida available for analysis. It is hoped
that such analyses will help guide decision-making and identify best practices, as well as those projects
which are most cost-beneficial.
This document provides the methodology for assessing building modification flood mitigation
projects. 3
This document contains the methodology for conducting loss avoidance assessments and for using
Florida’s Loss Avoidance Calculator (LAC) for building modification project types which mitigate flood
hazards. 4 These include:
•
•
•
•
Acquisition
Elevation
Floodproofing
Mitigation Reconstruction
This document contains the following sections:
A.
B.
C.
D.
E.
System and Strategy Overview
Project Record-keeping and Data Needs
Event Data Collection and Processing
Loss Avoidance Calculator Version 1.0 User Guide
Technical Details
The State of Florida has provided the following on its website, www.FloridaDisaster.org, for public use:
·
·
Copies of all documents listed above
Loss Avoidance Calculator for building modification projects which mitigate flood
3
The term “building modification” has been adopted for this guide in order to avoid confusion with conflicting
terms used by other state and federal agencies. For instance, the term “non-structural” is used by the Army Corps
of Engineers to refer to projects which do not modify the environment. Use of this term may cause confusion as
the same projects may also be referred to as “structural” depending on context.
4
Other flood mitigation project types are addressed under an alternate system and strategy for Drainage and
Special Flood Mitigation Projects. Wind retrofit projects are addressed in Florida’s Wind Retrofit Loss Avoidance
Assessment System and Strategy.
iii
Florida Division of Emergency Management | December 2011
Section A
System and Strategy Overview
This section contains an overview of the process for conducting loss avoidance studies for
flood mitigation, building modification projects in the State of Florida.
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
A-i
Florida Division of Emergency Management | October 2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
System and Strategy Overview
Loss Avoidance Assessment
FEMA defines mitigation as any action taken to reduce or eliminate long-term risks to people and their
property from hazards and their effects. 1 With significant investments being made in mitigation projects
and limited resources to invest, 2 it is crucial to substantiate the value of mitigation. Loss avoidance
assessment (LA) consists of post-event analyses used to qualify losses that would have occurred had the
mitigation action not taken place. Losses avoided are one of the benefits of mitigation that can be used
to inform future investment decisions. 3
System and Strategy Development
FEMA provides many useful resources that can be used to facilitate loss avoidance assessment. The
State of Florida has developed its system and strategy for conducting loss avoidance assessment from a
close review of FEMA and other resources. The State developed its methodologies with the motivation
to distill the best components of various approaches to achieve a streamlined and defensible process
that does not add significantly to the cost of mitigation. In other words, it was important to the State of
Florida that existing and new staff be able implement the selected system and strategy with a small
amount of training.
System and Strategy Overview
The purpose of the Loss Avoidance Calculator (LAC) for flood mitigation building modification projects is
to help substantiate the value of flood mitigation projects in Florida by viewing losses avoided as
financial returns on investment. Analysts researched various loss avoidance assessment methodologies,
past FEMA loss avoidance studies, and identified methods to streamline the process. The current LAC
(Version 1.0) for flood mitigation building modification projects operates within Microsoft Excel 2007.
This platform was chosen because it can be quickly and easily adapted, stored, and transferred to other
users. The State of Florida would like to make the calculator available to other states, as well as local and
regional entities so that they may also substantiate the value of mitigation in their communities.
Process
Loss avoidance for a flood mitigation building modification project is calculated in a three step process
(in addition to pre-LA preparations and report development) which uses a combination of information
about the storm-event and the mitigation project(s), as well as pre- and post- mitigation facts about the
structure(s) to be evaluated. Post-event building damage is assessed using flood depth determined
through on-the-ground reporting (or other reliable source – See Section C Event Data Collection and
Processing).
1
FEMA. http://www.fema.gov/about/divisions/mitigation.shtm (October 2011)
Over $800 million has been invested in the State of Florida alone since 2004.
3
For example, another benefit might include residual economic growth which can be measured through an
Economic Impact Assessment, such as that completed by DEM’s Bureau of Mitigation in mid-2011.
2
A-1
Florida Division of Emergency Management | December 2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
System and Strategy Overview
The loss avoidance calculator uses depth damage functions 4 to convert flood depths into estimated
damage. It then converts this damage into economic losses and normalizes the figures to present-day
dollar amounts to provide an approximate return on investment. Entering data for multiple flood events
will cause the calculator to provide the net present value of the mitigation project.
Preparing for Loss Avoidance Assessment
Preparations for loss avoidance assessment involve project record-keeping and should be part of regular
mitigation project management. More detail regarding the preparation process is provided in Section B
Project Record-keeping and Data Needs.
Loss Avoidance Assessment – Basic Steps
Step One: Collect Event Data
The LAC for flood mitigation building modification projects relies upon flood depths to calculate losses.
Consequently, the first step is to gather flood depths from an event using one of several methods. The
most accurate method is to collect high water marks in the area or on the structures themselves. More
detail regarding optional ways to complete this process are provided in Section C Event Data Collection
and Processing.
Step Two: Enter Event Data
Event data is then entered into the LAC. Section D LAC User Guide provides details.
Step Three: Loss Avoidance Calculations
The LAC performs necessary calculations and provides nominal costs avoided, normalized losses
avoided, and return on investment. Full details are provided in Section D LAC User Guide.
Loss Avoidance Report Development
The LA report is developed to portray the dollars saved due to mitigation during the storm event being
analyzed.
Assumptions
· Sources used in the development of this methodology are reliable.
· The data provided by sources used to develop this methodology is accurate.
4
These damage functions were extracted from FEMA’s Risk Analysis Software, Hazus MH MR5. See Section E
Technical Details for more information.
A-2
Florida Division of Emergency Management | December 2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Section B
Project Record-Keeping and Data Needs
This section contains the record-keeping and data needs for conducting loss avoidance
studies for flood mitigation building modification projects in the State of Florida.
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
B-0
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Contents
CHAPTER ONE: Florida’s Experience and Lessons Learned .......................................................................B-2
CHAPTER TWO: Record Keeping and Data Gathering................................................................................B-2
Project File Record Retention ................................................................................................................B-2
Mitigation Project Application ...........................................................................................................B-3
Benefit Cost Analysis Report ..............................................................................................................B-3
Elevation Certificate ...........................................................................................................................B-3
Final Inspection Documents ...............................................................................................................B-3
Alternate Sources for Information .........................................................................................................B-4
Property Appraiser / Tax Assessor Websites .....................................................................................B-4
Project Contact / Project Manager ....................................................................................................B-4
Flood Insurance Rate Map .................................................................................................................B-4
Aerial Imagery ....................................................................................................................................B-4
Address Conversion Websites............................................................................................................B-4
For Cases in Which Data is Unavailable .................................................................................................B-5
Project Cost Estimates .......................................................................................................................B-5
CHAPTER THREE: Storing Project Data.......................................................................................................B-5
Aggregate Projects .................................................................................................................................B-5
Project Location .................................................................................................................................B-5
Project Cost ............................................................................................................................................B-6
Maintenance Costs ................................................................................................................................B-6
Table 1: Loss Avoidance Project Data Needs Checklist (Flood Building Modification Projects) ................B-7
Structure Information ............................................................................................................................B-7
Mitigation Project Information ............................................................................................................B-10
Table 2 Average Project Cost per Project Type........................................................................................B-12
Table 3 Average Square Footage and Replacement Cost by Building Type.............................................B-12
B-1
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
This section provides recommendations for preparing for loss avoidance assessment and outlines
project record-keeping and data needed to conduct the analysis. It also includes the project data needs
checklist and accompanying data tables.
The preparatory process is the most labor intensive set of activities in loss avoidance assessment. For
this reason, the preparatory process should be completed prior to the initiation of any assessments.
Florida completed the preparatory process in 2012 for all projects complete by the date of Tropical
Storm Debby (June 24-27, 2012). In Florida, any projects completed after this time frame will need to be
entered into the system as they’re completed. Florida has developed a standard operating procedure to
accomplish this as part of the regular project management process.
Details regarding the preparatory process and Florida’s actions are provided here. The preparatory
process concerns record-keeping for loss avoidance assessments.
CHAPTER ONE: Florida’s Experience and Lessons Learned
The State of Florida intended to begin the loss avoidance assessment preparatory process in the fall of
2012. Most project files were in hard copy format split between two offices and, in order to pull
necessary data from these files quickly and efficiently, additional staff would be necessary, along with
some training in the subject. When Tropical Storm Debby struck, the State decided to move forward
with project record-keeping and event data gathering simultaneously in order to complete a Loss
Avoidance Analysis for the event (see Section C Event Data Gathering for more on that process).
Lessons learned from this process are provided in the appendices of the Loss Avoidance Report for
Tropical Storm Debby. The recommended process below is the result of findings pre- and post- that
event.
CHAPTER TWO: Record Keeping and Data Gathering
Arguably, the most important activity in loss avoidance assessment is performed even before an event
strikes – record-keeping. This is because an assessment cannot be performed without project data. It is
possible to perform record-keeping and project data gathering post-event, but this process can be
tedious and may result in certain applicable projects in the flooded area being missed. As a result,
record-keeping and project data gathering are treated as a preparatory process and should ideally be
integrated into regular project management activities.
Project File Record Retention
Hard copy project files are often managed by project managers who may each have their own
methodologies for retaining records. As a result, record retention recommendations for each project file
are provided here. These records should be perused for important project data and entered into an
electronic source. As part of regular project management, the data available in these records would be
entered into an electronic source as they were being added to the hard copy project file. A simple
B-2
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
spreadsheet will suffice (data needs are outlined in Table 1: Loss Avoidance Project Data Needs
Checklist within this section).
Four records, developed during the project development life-cycle, are of the most interest to loss
avoidance assessment:
1.
2.
3.
4.
The mitigation project application;
The Benefit Cost Analysis (BCA) report (most recent);
The elevation certificate; and
Final inspection documents.
Each of these documents contains overlapping information and some may individually provide all of the
information required to conduct a loss avoidance analysis for a particular structure. The value of
retaining all four records is that they can be cross-checked against one another to ensure that the data
recorded is current and faithful to the completed mitigation project. Furthermore, information
parameters within these documents have changed over time and may differ by project.
Mitigation Project Application
Valuable information is contained throughout the project application and the project narrative. Details
concerning the structure can often be found here that may not be available elsewhere, depending on
the year in which the BCA was conducted. The application will also provide valuable information
regarding the sub-applicant, the area, and the nature of the mitigation project itself. 1
Benefit Cost Analysis Report
The robustness of the BCA report will differ depending on the tool used and the year in which the BCA
was conducted. Analyses conducted using FEMA’s tool BCA V 4.5.5, V 4.8, and later (Years 2009+) will
have most pertinent information and will provide most of the data required for loss avoidance
assessment.
If a scope change took place during construction that affected the overall project cost, a new BCA would
have been conducted. Be sure to review the most recent report available. It is not unheard of for a
project file to contain two or even three BCA reports to accommodate such changes.
Elevation Certificate
The elevation certificate will display the final completed elevation of the structure.
Final Inspection Documents
Final inspection documents are valuable for several reasons, to include confirming in what year the
project was completed. In Florida, if a project is discovered to be incomplete for any reason at final
inspection, the final inspection report essentially becomes an interim inspection report. The reports
1
A note about historical losses: If some important data is lacking, it may be beneficial to record historic losses for a
structure that may have been provided in the project application or the BCA Report. The State of Florida is
retaining historical losses for drainage and other special projects. Detail on this is provided in the System and
Strategy for Drainage and Other Special Flood Mitigation Projects.
B-3
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
should indicate whether the project received an approved final inspection or whether the report is an
interim inspection report.
The final inspection confirms that the project was completed according to, and should indicate any
divergence from, the scope. The person who conducted the final inspection should be indicated and this
individual could prove to be a resource for missing information, if s/he is available post-disaster.
Alternate Sources for Information
Should project files be incomplete in any way, there are alternative sources that can be used to
supplement readily available information. These sources are provided for each required piece of data in
Table 1 within this Section B. It is worth noting that project data only need be collected and recorded
once if it is done correctly. The same project data may be used for assessments of an unlimited number
of events that may impact the structure’s site over the project’s life cycle. As such, it could well be worth
the investment of going to extra lengths to obtain information that may be missing from the project file.
Property Appraiser / Tax Assessor Websites
Property appraiser websites in Florida can be quite robust and may include detailed information about
the material used to construct the structure, first floor elevation (FFE), square footage, year built,
ownership, and may even provide information pertaining to the mitigation project if a record of permits
is provided. In addition, cadastral data can be easily gathered from the Florida Department of Revenue.
Other states may experience varying levels of success with property appraiser websites.
Project Contact / Project Manager
If available post-disaster, the project point of contact or project manager can fill in data gaps.
Flood Insurance Rate Map
For building modification projects other than acquisition (there is no post-mitigation FFE for acquisition
projects), the flood insurance rate map (FIRM) may provide the base flood elevation (BFE) which may be
useful in determining the post-mitigation level of protection or FFE if one is not available in the project
file. This is explained further in Table 1 of this Section.
Aerial Imagery
Aerial views (e.g., those provided by Google or Bing Maps) can be quite detailed and may provide visual
structure details such as occupancy, building type, and more if this information is not available
elsewhere.
Address Conversion Websites
There are many sources that can convert latitude and longitude to addresses and vice versa. All
coordinates will need to be confirmed for accuracy, even if the coordinates are provided in the project
file. This is due to potential differences in initial data collection processes. One study in Florida revealed
a 35-percent discrepancy rate among project coordinates. If the analyst is unfamiliar with programs such
as ArcGIS, coordinates can be visually confirmed via entry into a map search engine, such as Google.
B-4
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
For Cases in Which Data is Unavailable
The LAC can accommodate a limited data context for situations in which data needed to compute losses
is unavailable or the resources needed to gather the data are inaccessible. The user will select “NA” in
the calculator for missing pieces of information for which default options are available or will enter data
provided in a default table later in this Section. The data needs checklist provided in Table 1 of this
Section indicates those fields for which defaults are available and appropriate tables follow.
Please Note: To maintain data fidelity, all use of default values during data entry must be recorded in the
comments section of the LAC. See Section D Loss Avoidance Calculator User Guide.
Project Cost Estimates
In rare cases where the record of project cost may be unavailable, the State may want to complete
Table 2 in this Section. This table would represent the average project cost per project type in the state
or study area. Completing the table would require project research to identify average costs.
CHAPTER THREE: Storing Project Data
Once information is pulled from the project files or alternate sources, it must be stored for repeated
use. A secure web-based data storage and query system is ideal for accessibility and ease of application,
but all data needs can be stored in the LAC, as well. The calculator will store the information and use it
again and again to complete loss avoidance assessments at staff will. See Section D Loss Avoidance
Calculator User Guide for information on this process.
Aggregate Projects
It is very important that each mitigated structure be assessed independently as structures in varying
locations can be impacted differently by the same event. This means that data for each structure must
be individually stored. For projects which correlate to only one structure, this is not an issue; all project
data is simply stored together. Nevertheless, this may pose unique challenges when storing data for
certain aggregate projects (projects which resulted in the mitigation of more than one structure). Some
of these challenges and potential solutions are explored below.
Project Location
Project location is necessary in order to gather and process event data to complete the loss avoidance
assessment (See Section C Event Data Gathering of this guide). As stated above, similarly mitigated
structures in separate locations may be impacted differently by the same storm event. As such, the
locations of the structures within the project must be determined.
Older files for aggregate projects may provide only one set of coordinates despite the fact that several
structures were mitigated. Fortunately, the project file will most likely provide addresses or some other
sort of location information for each structure. Sometimes, this information may only be present in the
final inspection report. For cases in which some sort of address information is available, ArcGIS or other
mapping software or website can be used to identify the coordinates of the project sites.
B-5
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
If no location information is provided, a person familiar with the project, such as the project manager or
a local administrator, may be able to assist in identifying locations for the separate project sites. If such a
party is unavailable, the State will have to determine whether certain assumptions are acceptable. For
example, the State may assume that all mitigated structures within the project are in the same basic
area and record coordinates for known structures within that area. Alternatively, the State may
determine that using the same set of coordinates for all structures is the simplest approach. However
analysts choose to deal with the issue, the decision should be recorded and included in the report.
Project Cost
Aggregate project files may provide only a total project cost without a per structure breakdown. In this
case, cost can be allocated to the individual structures equally or by square footage.
To allocate cost equally, take the number of structures and divide this figure into the total project cost:
Per Structure Project Cost = Total Project Cost / Number of Structures
Allocating cost to structures by square footage is a two-step process. Simply add together the square
footage of all structures in the project file and divide this figure into the total project cost to achieve the
cost per square foot mitigated. Then, multiply this figure by the number of square feet in each structure.
This is the more accurate approach.
Step 1: Project Cost per Square Foot Mitigated = Total Project Cost / Sum of Square Footage All Mitigated
Structures in Project
Step 2 (for each structure): Structure Square Footage * Project Cost per Square Foot Mitigated
Maintenance Costs
If maintenance costs are recorded for an aggregate project and are provided in total, as opposed to by
structure, the State may follow the approach used to determine Project Cost described above.
To allocate annual maintenance cost equally, take the number of structures and divide this figure into
the total project cost:
Per Structure Annual Maintenance Cost = Total Annual Maintenance Cost / Number of Structures
Allocating annual maintenance cost to structures by square footage is a two-step process. Simply add
together the square footage of all structures in the project file and divide this figure into the total
project cost to achieve the cost per square foot mitigated. Then, multiply this figure by the number of
square feet in each structure. This is the more accurate approach.
Step 1: Annual Maintenance Cost per Square Foot Mitigated = Total Annual Maintenance Cost / Sum of
Square Footage All Mitigated Structures in Project
Step 2 (for each structure): Structure Square Footage * Annual Maintenance Cost per Square Foot
Mitigated
B-6
Florida Division of Emergency Management | September 2012
Table 1: Loss Avoidance Project Data Needs Checklist (Flood Building Modification Projects)
This table describes the structure and project data fields in the loss avoidance calculator, identifies which are required or optional, provides suggested locations
to find this information, and identifies default values which may be used when required information is unavailable. Please note that all use of default values
should be recorded in the comments section of the calculator, as well as provided in each loss avoidance report.
Structure Information
Data Input
Project Code
Description
Identifying number for the mitigation
project being evaluated. This should be
consistent with the State’s method for
tracking the project and may be the
contract number or the Federal sub-grant
number.
Req’d?
Yes
Project Type
The type of building modification
mitigation project being assessed:
Acquisition / Elevation / Flood-Proofing
/ Mitigation Reconstruction.
Project Descriptor 3
This should be consistent with the
State’s method for tracking the project.
In Florida, this includes the community
name and project type (ie, Madeira Beach
Elevation).
If the structure being evaluated is an
No
aggregate project, this field should also
include some factor to delineate the
structure from others in the project file.3
In Florida, structures within the same
project file are numbered sequentially.
Building Type
The primary use (Residential,
Commercial, etc.) of the structure being
assessed.
2
Yes
Yes
Project File Sources
Final Inspection
Documents
Project Application
BCA Summary
Other project
documents
Final Inspection
Documents
Project Application
BCA Summary
Other project
documents
Default 2
Alternative Sources
For Florida: Provided in
FloridaMitigation.org,
if the project was
logged.
-
Project Manager
Final Inspection
Documents
Project Application
BCA Summary
Other project
documents
-
Final Inspection
Documents
Project Application
BCA Summary
Tax Assessor / Property
Appraiser
Aerial Imagery
-
NA – selection of this
default under building
type will cause the
structure to be
Default values are included for some fields for instances in which limited data is available. Indicate use in structure comments section of LAC.
A single project may have multiple mitigated structures. Each structure must be evaluated independently. See narrative in CHAPTER THREE of this Section for explanation
regarding aggregate structures.
3
Data Input
Description
Req’d?
Building Use
This field is dependent on the selection
of building type. It is a more detailed
description of the primary use of the
structure
No
Stories
The number of stories (not including
basement) in the mitigated building
No
Basement
Yes/No. Whether or not the mitigated
structure had a basement.
No
Address
Street number, street name, city, state,
and zip code for the mitigated structure
being evaluated.
No
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Project File Sources
Alternative Sources
Default 2
evaluated as a single
family, single story
residential structure
with no basement.
NA – selection of this
default under building
Final Inspection
type will cause the
Tax Assessor / Property
Documents
structure to be
Appraiser
Project Application
evaluated as a single
Aerial Imagery
BCA Summary
family, single story
residential structure
with no basement.
NA – selection of this
default under building
Final Inspection
type will cause the
Tax Assessor / Property
Documents
structure to be
Appraiser
Project Application
evaluated as a single
Aerial Imagery
BCA Summary
family, single story
residential structure
with no basement.
NA – selection of this
default under building
Final Inspection
type will cause the
Tax Assessor / Property
Documents
structure to be
Appraiser
Project Application
evaluated as a single
Aerial Imagery
BCA Summary
family, single story
residential structure
with no basement.
Property appraiser if
Final Inspection
owner name is
Documents
available. Several
Project Application
resources will convert
BCA Summary
addresses to / from
B-8
Florida Division of Emergency Management | September 2012
Data Input
Description
Req’d?
Structure Latitude /
Longitude
Coordinates, in decimal degrees, for the
Yes
structure
Square Footage
The total enclosed square footage of
the mitigated building
Yes
Pre-Mitigation First
Floor Elevation (FFE)
The measured distance of the premitigation building's first floor above sea
level as specified on the FIRM for that
location.
Yes
4
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Project File Sources
Alternative Sources
Default 2
latitude and longitude.
E.g.,
http://stevemorse.org
/jcal/latlon.php.
Always confirm.
Property Appraiser
Several resources will
Final Inspection
convert addresses to /
This is required for
Documents
from latitude and
event data gathering,
Project Application
longitude. E.g.,
but is not a required
BCA Summary
http://stevemorse.org field in the calculator.4
/jcal/latlon.php.
Always confirm.
Final Inspection
Refer to Table 3 in this
Documents
Tax Assessor / Property
Section if none
Appraiser
Project Application
available.
BCA Report
Assume at grade or
Final Inspection
enter 0. In this case,
Documents
Property appraiser
HWM during event data
Project Application
Determine based on
gathering should be
BCA Report
topographic map
recorded as feet above
Elevation certificate
grade. 4
See Section C Event Data Gathering.
B-9
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Mitigation Project Information
Data Input
Post-Mitigation First
Floor Elevation (FFE)
(protection level)
Non-acquisitions only
Description
The measured distance of the postmitigation building's first floor above sea
level as specified on the FIRM for that
location.
Req’d?
Yes
Project Completion
Year 6
The year in which the structure’s
mitigation action was completed. This
should be the date of the approved final
inspection and not the year the project
was closed out.
Yes
Total Project Costs
(structure specific)
Capital costs ($) to mitigate the
structure. Note: A complete project file
should indicate the cost per structure if
there are multiple structures.
* Enter EITHER the Total Project Cost
OR complete match information. Do not
provide both.
*
Final Inspection
Documents
Project Application
BCA Summary
Federal Match
The portion of the cost of the
mitigation project being provided by
the Federal Government.
*
Final Inspection
Documents
Project Application
BCA Report
* EITHER Total Project Cost or Match
information is required. Do not provide
both.
5
6
Project File Sources
Final Inspection
Documents
Project Application
BCA Report
Elevation certificate
Final Inspection
Documents
Project Application
BCA Report
Alternative Sources
Property appraiser
Flood Insurance Rate
Map (FIRM)
Request from Project
Contact or Project
Manager.
Review updates in
property tax sheet on
property appraiser
website.
Project Manager /
Project Contact
Potentially, average
project cost by type
from DEM Economic
Impact Analysis (if
individual structures
are captured)
Default values are included for some fields for instances in which limited data is available. Indicate use in structure comments section of LAC.
If different completion years are provided for each structure, enter the year of the appropriate structure’s approved final inspection.
B - 10
Florida Division of Emergency Management | September 2012
Default 5
Assume 2 feet above
BFE on FIRM for all
building modification
projects except
acquisition.
If only project closeout is available, use. If
only the BCA is
available, add one year
from BCA report.
If the individual
structure project cost is
not provided, divide the
project cost by the total
square footage of the
structures to determine
project cost per SF and
multiply by the structure
SF. If SF unavailable,
divide project cost by
number of structures.
-
Data Input
State Match
Description
The portion of the cost of the
mitigation project being provided by
the State Government.
Req’d?
No
Local Match
The portion of the cost fof the
mitigation project being provided by
the Local Government.
No
Project Maintenance
Costs
(structure specific)
The annual costs ($) associated with
maintaining the mitigation project on the
structure being evaluated. This may
include loss of revenue income. 7
Any other costs associated with
implementing the mitigation project.
No
Any other costs which may occur in a
year other than annual maintenance.
No
Other Costs
Irregular Yearly Costs
No
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Project File Sources
Alternative Sources
Default 5
Final Inspection
Documents
Project Application
BCA Report
Final Inspection
Documents
Project Application
BCA Report
Final Inspection
County / City
$0
Documents
Project Application
BCA Report
Final Inspection
County / City
Documents
Project Application
BCA Report
Final Inspection
County / City
Documents
Project Application
BCA Report
7
If used, maintenance costs for the individual structure being evaluated must be provided. As with other data fields, if these are calculated in some way, provide details in the
calculator comment section.
B - 11
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Table 2 Average Project Cost per Project Type
This table may be filled out for those rare cases in which project cost may be unavailable, but the State
still wishes to complete a loss avoidance assessment for the project. This table should represent the
average project cost per project type. In order to complete the table, average recorded project costs for
each project type.
These costs should ideally be normalized to the current year before being averaged. This can be
accomplished by simply averaging project types by year and recording them as such, or, if all projects
from every year are averaged together, the LAC can be used to normalize costs. 8
Project Type
Acquisition
Elevation
Flood -Proofing
Mitigation Reconstruction
Average Cost
Table 3 Average Square Footage and Replacement Cost by Building Type
FEMA’s Hazus software provides tables with average square footages and costs per square foot by
building type. These figures are useful for cases in which the project file does not contain this
information by structure and it cannot be easily determined through alternate means. A reference table
has been provided here for those without easy access to or knowledge of Hazus. The information
contained within this table was extracted for Florida from Hazus 2.0, released in 2011, and has remained
the same for subsequent releases of Hazus through 2012 (See Hazus 2.1 Flood Technical Manual section
14 for more information).
Building Description
Average SF
Average Cost / SF 9
Single Family Dwelling
Manufactured Housing
Multi Family Dwelling – Duplex
Triplex/Quads
Multi Family Dwelling – 5-9 units
Multi-Family 10-19 units
Multi Family Dwelling – 20-49 units
Apartment 50+ units
Hotel, 4-7 st., 135,000 SF (M.350)
College Dorm, 2-3 st, 25,000 SF (M.130)
1,800
1,625
3,000
See Table Section C
$35.75
$79.48
$86.60
$154.31
$137.67
$135.39
$131.93
$132.52
$150.96
8,000
40,000
135,000
25,000
8
If help is needed, please contact the Mitigation Bureau for the Florida Division of Emergency Management as
detailed instructions for using the calculator in this way are not provided as part of this guide.
9
See Section C of this guide for use of average replacement cost.
B - 12
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Project Record-keeping and Data Needs
Nursing Home
Retail Trade
Wholesale Trade
Personal and Repair Services
Prof./ Tech./Business Services
Banks
Hospital
Medical Office/Clinic
Entertainment & Recreation
Theaters
Parking
Heavy
Light
Food/Drugs/Chemicals
Metals/Minerals Processing
High Technology
Construction
Agriculture
Church
General Services
Emergency Response
Schools/Libraries
Colleges/Universities
Source: Hazus 2.0 (2011)
25,000
110,000
30,000
10,000
80,000
4,100
55,000
7,000
5,000
12,000
145,000
30,000
30,000
45,000
45,000
45,000
30,000
30,000
17,000
11,000
11,000
130,000
50,000
$126.95
$82.63
$75.95
$102.34
$133.43
$191.53
$224.29
$164.18
$170.51
$122.05
$43.72
$88.28
$75.95
$145.07
$145.07
$145.07
$75.95
$75.95
$138.57
$107.28
$166.59
$115.31
$144.73
B - 13
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
Section C
Event Data Collection and Processing
This section contains details regarding event data collection and processing necessary to
conduct loss avoidance studies for flood mitigation projects in the State of Florida.
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
C-1
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
Contents
CHAPTER ONE: Florida’s Experience and Lessons Learned ..................................................................... C - 3
CHAPTER TWO: FEMA’s Listed Methods to Obtain Flood Elevation Data ............................................... C - 3
Figure 1 Event Data Source Preference for Flood Mitigation Projects ................................................ C - 4
CHAPTER THREE: Event Data Gathering Through Interview.................................................................... C - 5
Figure 2 Sample Local Questionnaire .................................................................................................. C - 5
CHAPTER FOUR: Loss Avoidance Assessment and Damage Assessment ................................................ C - 7
Table 1 PDA Descriptions ..................................................................................................................... C - 7
CHAPTER FIVE: Loss Avoidance Event Data Needs .................................................................................. C - 8
Table 2 Loss Avoidance Event Data Needs Checklist (Flood Building Modification Projects) ............. C - 8
Table 3 Default Values by Building Use ............................................................................................... C - 9
C-2
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
Losses avoided refers to the losses that would have occurred without mitigation. As such, calculations
are ultimately tied to the event’s impact to the structure site. For building modification projects, this is
determined by looking at the site’s post-event flood elevation. When combined with structure data, the
event’s flood elevation at the structure site is what the calculator will use to ultimately determine
savings due to mitigation.
Event data collection methods may differ among analyzed flood events. As such, the methodology
used for each assessment will be provided in the respective final loss avoidance report.
This section identifies event data needs and methods for obtaining that data, provides a
recommendation to integrate event data gathering for loss avoidance assessment into the preliminary
damage assessment process, includes a resource for obtaining data from local partners, and outlines
data needed to conduct the analysis.
Event data gathering can be accomplished with a wide variety of expertise, depending upon the method
used. It is recommended that analysts use field high water marks at mitigated structure sites. While
potentially labor intensive, this method both provides the most accurate data and can be accomplished
without advanced modeling techniques. In addition, partnerships with local and regional agencies with
incentive to pursue similar information may vastly reduce the costs of gathering this data. This guide
provides a questionnaire used to obtain information from local representatives during the loss
avoidance assessment for Tropical Storm Debby. Data gathered through these questionnaires proved
invaluable for that storm’s loss avoidance assessment.
CHAPTER ONE: Florida’s Experience and Lessons Learned
The Division of Emergency Management’s Mitigation Bureau had not yet implemented the strategy to
gather high water mark data when Tropical Storm Debby struck in late June 2012. Nevertheless, the
State decided to move forward with project record-keeping and event data gathering simultaneously in
order to complete a loss avoidance analysis for the event (see Section B Project Record Keeping and
Data Gathering for more concerning this topic). Lessons learned from this experience are provided in
that storm’s loss avoidance report.
In coordination with the Florida Chapter of the Silver Jackets and in response to the experiences of
gathering event data from Tropical Storm Debby, the Division formed a High Water Mark Strike Team.
This team plans to meet in October 2012 and has been pursuing partnerships to leverage resources and
consolidate data gathered post-event. The strategy developed by this strike team may be integrated into
or referenced by this guide once complete.
CHAPTER TWO: FEMA’s Listed Methods to Obtain Flood Elevation Data
Determining the flood elevation for an event can be done in a variety of ways using a fairly broad
spectrum of skill sets. Figure 1 of this Section provides the usual order of preference for flood event data
according to FEMA, which includes high water marks (HWMs), stream gage discharge data, stream gage
C-3
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
gate stage data, and precipitation gage data. In addition, this guide includes direct damage observations
through preliminary damage assessment and interviews with local officials.
Methodologies used to analyze stream gage discharge data, stream gage gate stage data, or
precipitation gage data may follow the FEMA methodology first outlined in Loss Avoidance Study:
Southern California Flood Control Mitigation and used in subsequent FEMA-contracted studies; they
need not be repeated here. Nevertheless, these methods require modeling and expertise that the
Division would prefer not to rely on to conduct loss avoidance assessments. In addition, flooding has
overtopped gages in recent storm events in Florida. Such occurrences have left gage owners to only
guess at flood elevations.
The Division has, therefore, explored alternate methodologies. It has assembled a High Water Mark
Strike Team to ensure that event data is collected for each event the Division would like to conduct an
assessment. The questionnaire provided in Figure 2 can additionally be used for cases in which it is not
practicable to gather high water marks (for instance, if the event is small and the Team does not
mobilize).
Figure 1 Event Data Source Preference for Flood Mitigation Projects
PREFERRED DATA SOURCE
Ø High Water Marks
Ø Stream Discharge Gage in Flooding Source
Ø Stream Stage Gage in Flooding Source
Ø Stream Discharge Gage in Same Watershed
Ø Stream Discharge Gage in Watershed with
Similar Characteristics, Affected by Same Storm
Event, and in Close Proximity
Ø Precipitation Gage in Same Watershed
Ø Precipitation Gage in Watershed with Similar
Characteristics, Affected by Same Storm Event,
and in Close Proximity
Ø None
INADEQUATE DATA
Source: Loss Avoidance Study – Wisconsin Property Acquisition and Structure Demolition. September
2009 (FEMA)
C-4
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
CHAPTER THREE: Event Data Gathering Through Interview
The State of Florida has decided to add the option to perform interviews with local officials, as possible,
to determine project performance. Interviews were conducted to complete the Tropical Storm Debby
Loss Avoidance Assessment. A sample questionnaire is provided in Figure 2.
Figure 2 Sample Local Questionnaire
Project Performance Call Sheet
Project Information
Mitigation Program / ID
Project ID
Project Type
Project Name / Description
Structure Address / Lat Long
Data Collector
Date of Interview
Point of Contact
Name:
Phone:
Email:
Secondary POC
Name:
Phone:
Email:
Event Information – Event Name and Date
Flooding in the Area
Flooding Adjacent
Upstream
Downstream
Structure: Not damaged
Distance from flood waters
C-5
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
Flood depth closest to
structure
Length of time at highest
flood stage
Length of time to recede
Pumping required
Yes
No
Duration
Yes
No
Duration
Yes
No
During business
hours
Yes
No
Businesses
Yes
No
Number
Residences
Yes
No
Number
Critical Infrastructure
Yes
No
Number
Emergency Response Access
affected?
Yes
No
Yes
No
Structure: Damaged
Flood depth
Length of time at
highest flood stage
Length of time at highest
flood stage
Length of time to recede
Pumping required
Access Affected
Adjacent structures damaged due to
effects
Number
Description of adjacent impacts
Additional Comments:
C-6
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
CHAPTER FOUR: Loss Avoidance Assessment and Damage Assessment
Post-disaster, teams go into the field to perform rapid needs assessments and preliminary damage
assessments, if adequate need is identified. Depending on the type of assessment and scope of the
disaster, these teams may be comprised of local officials, specially trained State Teams, or joint
local/Federal/State teams. Non-profits and mitigation specialists may also be part of the team.
While specialists are in the field performing these operations, there may be the opportunity to also
perform post-disaster assessments of previously mitigated structures. For a flood event, this means
obtaining the high water mark on the previously mitigated structure and potentially identifying the
damage state of the structure. Damage descriptions are provided in Table 1 of this Section and may be
beneficial in communicating post-event what level of loss has occurred. While the damage state is not
used by the loss avoidance calculator, such information can be used to enrich the loss avoidance report.
Table 1 PDA Descriptions 1
Damage State
Destroyed
Description
Definition: Structure is a total loss. Not economically feasible to rebuild.
Permanently uninhabitable.
Description: Structural component failure (roof, wall), significant foundation
damage. Shifting on foundation, wall distortion.
Major
Definition: Building has sustained structural or significant damage and is currently
uninhabitable. Extensive repairs are necessary therefore the structure cannot be
made habitable in a short period of time (less than a month).
Description: Partially collapsed walls, exterior frame damage, partial roof
collapse/breach, foundation shifting/settling, utility damage (septic, water heater,
well, furnace). Structure penetration by debris, twisted/bowed/collapsed walls,
unsound flooring, evidence of roof lift.
Minor
Definition: Structure is damaged and uninhabitable. Minor repairs are necessary to
make the structure habitable—but they can be completed in a short period of time
(less than a month). The dwelling has some damage, but can be used without
significant repair.
Description: Unsafe to dwell or unsecure – e.g. tree on top, but no penetration.
Smoke damage, broken windows, buckled door / window frames, minor damage to
utilities, minor structural damage.
Affected
Definition: Structure has received minimal damage and is habitable without
repairs.
Description: Habitable. Cosmetic damage only. Garage, carport, porch damage /
collapse. Carpet soaked, minor basement flooding. One broken window, missing
shingles, damaged exterior AC unit, siding damage.
Source: FEMA Unit 4 Post-Disaster Damage Assessment: State Disaster Management Course—IS 208.a;
FDEM IA PDA Primary Documents dated 2/1/2010; FDEM Preliminary Damage Assessment Team Pocket
Guide for Individual Assistance dated 10/28/2009
1
FEMA Unit 4 Post-Disaster Damage Assessment: State Disaster Management Course—IS 208.a; Florida Division of
Emergency Management IA PDA Primary Documents dated 2/1/2010; Florida Division of Emergency Management
Preliminary Damage Assessment Team Pocket Guide for Individual Assistance dated 10/28/2009
C-7
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
CHAPTER FIVE: Loss Avoidance Event Data Needs
This table describes the event data fields in the loss avoidance calculator, identifies which are required
or optional, provides suggested locations to find this information, and identifies default values which
may be used when required information is unavailable. Please note that all use of default values should
be recorded in the comments section of the calculator, as well as provided in each loss avoidance report
(See Section D).
Table 2 Loss Avoidance Event Data Needs Checklist (Flood Building
Modification Projects)
Data Input 2
Event Year
Event Name
Flood
Elevation
Description
The year of the flood
event being assessed.
The name or description
of the flood event being
assessed.
The elevation of surface
water at the mitigated site
(resulting from the flood
event being assessed).
Req’d
?
Yes
NA
NA
Yes
High water
marks
gathered postevent form the
structure area
Yes
County / City
The current cost per
square foot($) to build a
structure comparable to
the mitigated building
Displacement
Cost/Mo
(current)
When occupants are
Yes
displaced to temporary
quarters while mitigation
project is being performed
No
Default 3
Alternative
Sources
Yes
Building
Replacement
Cost/SF
(current)
Inventory
The value of the inventory
Value (current) for the building being
mitigated (nonresidential)
Traditional
Sources
BCA Summary
Final
Inspection
Documents
Project
Application
BCA Summary
Interviews
with local
officials, FEMA
recommended
modeling
methods
Tax Assessor /
Property
Appraiser
Average for
area
Standard BCA
Values
County / City
Potential
calculations
based on
location
Standard BCA
Values
County / City
Potential
calculations
NA
Calculator
provides
default based
on occupancy
type
Calculator
provides
default based
on occupancy
type
Calculator
provides
default based
on occupancy
type
2
Income and wage losses are not calculated for Version 1.0 of the loss avoidance calculator.
Default values are included for some fields for instances in which limited data is available. Indicate use in
structure comments section of LAC.
3
C-8
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Event Data Collection and Processing
Table 3 Default Values by Building Use
These figures are from the year 2006 and have been provided by FEMA's Hazus 2.1 released in 2012.
Income losses are not included in this LAC Version 1.0.
Building Use
Single Family Dwelling
Manuf. Housing
Duplex
Triplex / Quads
Multi-dwellings (5 to 9 units)
Multi-dwellings (10 to 19 units)
Multi-dwellings (20 to 49 units)
Multi-dwellings (50+ units)
Temporary Lodging
Institutional Dormitory
Nursing Home
Retail Trade
Wholesale Trade
Personal and Repair Services
Professional/Technical Services
Banks
Hospital
Medical Office/Clinic
Entertainment & Recreation
Theaters
Parking
Heavy
Light
Food/Drugs/Chemicals
Metals/Minerals Processing
High Technology
Construction
Agriculture
Churches and Other Non-profit Org.
General Services
Emergency Response
Grade Schools
Colleges/Universities
Replacement Rental Cost
Disruption Inventory
Cost /SF
/ SF/day
Cost / SF
value /SF
$92.84
$0.02
$0.82
$0.00
$35.75
$0.02
$0.82
$0.00
$79.48
$0.02
$0.82
$0.00
$86.60
$0.02
$0.82
$0.00
$154.31
$0.02
$0.82
$0.00
$137.67
$0.02
$0.82
$0.00
$135.39
$0.02
$0.82
$0.00
$131.93
$0.02
$0.82
$0.00
$132.52
$0.07
$0.82
$0.00
$150.96
$0.01
$0.82
$0.00
$126.95
$0.03
$0.82
$0.00
$82.63
$0.04
$1.09
$5.98
$75.95
$0.02
$0.95
$6.60
$102.34
$0.05
$0.95
$0.00
$133.43
$0.05
$0.95
$0.00
$191.53
$0.06
$0.95
$0.00
$224.29
$0.05
$1.36
$0.00
$164.18
$0.05
$1.36
$0.00
$170.51
$0.06
$0.00
$0.00
$122.05
$0.06
$0.00
$0.00
$43.72
$0.01
$0.00
$0.00
$88.28
$0.01
$0.00
$30.80
$75.95
$0.01
$0.95
$7.84
$145.07
$0.01
$0.95
$30.10
$145.07
$0.01
$0.95
$17.01
$145.07
$0.01
$0.95
$15.12
$75.95
$0.00
$0.95
$13.28
$75.95
$0.02
$0.68
$10.24
$138.57
$0.03
$0.95
$0.00
$107.28
$0.05
$0.95
$0.00
$166.59
$0.05
$0.95
$0.00
$115.31
$0.03
$0.95
$0.00
$144.73
$0.05
$0.95
$0.00
C-9
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
Section D
User Guide
This section contains user guidance for the Loss Avoidance Calculator
for Building Modification Projects Version 1.0
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
D-1
Florida Division of Emergency Management | September 2012
CONTENTS
INTRODUCTION .......................................................................... D - 1
GETTING STARTED...................................................................... D - 2
HOW TO USE THIS CALCULATOR ............................................... D - 3
STEP ONE: MITIGATION PROJECT INFORMATION ..................... D - 4
STEP TWO: EVENT INFORMATION ............................................. D - 6
RESULTS: NOMINAL EXPECTED DISASTER LOSSES ..................... D - 7
RESULTS: NOMINAL YEARLY COSTS and LOSSES AVOIDED........ D - 8
FINAL RESULTS: LOSSES AVOIDED.............................................. D - 9
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
INTRODUCTION
This section contains the user guide for the Loss Avoidance
Calculator (LAC or the calculator) version 1.0 for building
modification projects. For the purposes of this guide, building
modification projects include project types which mitigate flood
hazards by modifying the structures being mitigated. This includes
acquisitions, elevations, floodproofing, mitigation reconstruction,
and second story conversion.
Loss avoidance assessment uses a combination of information
about the storm-event and mitigation project(s), as well as preand post- mitigation facts concerning the structure being
evaluated. Post-event damage is estimated by combining high
water marks gathered post-event with depth damage functions
drawn from FEMA’s risk analysis software system, Hazus. The LAC
uses these depth damage functions to calculate percent loss to
the structure and its contents, then converts the losses to
present-day dollar amounts (see Section E Technical Details of
this guide). The calculator also provides an approximate return on
investment. The calculator can analyze multiple flood events over
time to yield a net present value of the mitigation project being
evaluated.
Technical descriptions of these processes are available in Section
E Technical Details of this guide.
D-1
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
GETTING STARTED
This user guide provides a simple step-by-step approach to using
the calculator to conduct a loss avoidance analysis for flood
mitigation building modification projects. Snapshots from the
calculator are provided next to instructions in order to facilitate
reader understanding. Before beginning this analysis, ensure all
mitigation project data requirements outlined in Section B Project
Record-keeping and Data Needs of this guide have been fulfilled.
The following files are provided on the Florida Division of
Emergency Management’s website, www.FloridaDisaster.org for
use with Loss Avoidance Assessment:
1. Loss Avoidance Calculator for Flood Building Modification
Projects (Excel File)
2. All sections of this guide, The Florida Division of Emergency
Management’s Bureau of Mitigation Loss Avoidance
Analysis System and Strategy: Flood Mitigation – Building
Modification Projects.
Before beginning, save all files from the CD to a location on the
hard-drive of the computer. If you have an electronic data
management system for project files, you may want to save the
calculator with each project file for future post-disaster
assessment.
Version 1.0 of the Flood Loss Avoidance Calculator will perform a
loss avoidance analysis for one mitigated structure for up to fifty
(50) hazard events. This figure can be expanded.
Project data can be added to the calculator before any
assessments are performed. Section C Event Data Collection and
Processing provides the methodology for gathering flood
elevations for use in the system.
D-2
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
HOW TO USE THIS CALCULATOR
(a) Fields in green are required. Fields in yellow
are optional. Fields in pink are populated
automatically
(b) Use the “Next” button to go forward to the
next sheet when all required fields have
been completed. Use the “Previous” button
to go back and make any necessary
changes.
D-3
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
STEP ONE: MITIGATION PROJECT
INFORMATION
a) Enter project information, project type, and
project costs for the mitigated structure you
are analyzing. Fields will vary based on
project type and building characteristics.
For project costs, enter either the total
project cost or the federal/state/local
match. EITHER total project cost OR match
information is required. Do not provide
both.
NOTE: A single project may contain multiple
structures (aggregate projects). Each
structure must be entered and analyzed
individually.
b) Enter any irregular yearly costs for the
mitigation project aside from normal yearly
costs (such as maintenance costs). Define
these costs in Comments.
NOTE: The analyst may choose to enter lost
tax revenue, for example, in irregular yearly
costs or as part of maintenance costs
(noting their origin).
c) Select the “Click Here to Add Comments /
Record Methodology” button to enter
any additional information regarding the
values or methodology used.
D-4
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
d)
Enter any comments / steps / or specific
methodology used to obtain values in Step
One. Once finished, select the “Return to
Step One” button.
D-5
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
STEP TWO: EVENT INFORMATION
a) Enter hazard event information. Once all
events have been recorded, enter the
current year of the analysis. Remember to
always enter events by year smallest to
largest. Once this table has been completed
select “Next.”
D-6
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
RESULTS: NOMINAL EXPECTED
DISASTER LOSSES
a) Post-mitigation nominal expected disaster
losses are displayed. Nominal losses are
displayed without normalization. A blank
field means that there are no losses for the
scenario. (See Section E Technical Details
for information about normalization)
b) Nominal disaster losses expected without
mitigation are displayed. Select “Next” to
continue. Blank cells indicate no expected
losses for this scenario.
D-7
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
RESULTS: NOMINAL YEARLY
COSTS and LOSSES AVOIDED
a) Nominal yearly costs are displayed. This
means all yearly costs since the year of
project completion. These figures are taken
from Step One information provided by the
user.
b) Nominal losses avoided (dollars saved by
implementing the project) are displayed.
Select “Next” to continue.
Note: These losses avoided do not include
any project costs. They are calculated by
subtracting losses that may have been
experienced with the mitigation project
from losses that could have been expected
without the mitigation project. See Section
E Technical Details for more information.
D-8
Florida Division of Emergency Management | September 2012
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
User Guide
FINAL RESULTS: LOSSES AVOIDED
a) This figure shows the results of the
calculator in three sets of tables, as follows:
a. Net losses avoided using GDP deflator
to normalize costs;
b. Net losses avoided using the reverse
discount rate to normalize costs; and
c. Net losses avoided using the relative
share of GDP method.
(See Section E Technical Details for
information about each method)
b) To print a loss avoidance report, select the
“Print Report” button.
Loss avoidance analysis using the LAC is
complete. The next step is to develop the
loss avoidance assessment report. While the
Division does not provide guidance in report
development, examples will be posted to
the Florida Division of Emergency
Management website and will be appended
to Florida's Enhanced State Hazard
Mitigation Plan.
D-9
Florida Division of Emergency Management | September 2012
Section E
Flood Technical Details
This section contains the technical details for conducting loss avoidance studies for flood
mitigation projects in the State of Florida.
STATE OF FLORIDA | DIVISION OF EMERGENCY MANAGEMENT
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Contents
System and Strategy Overview ................................................................................................................ E - 2
Preparing for Loss Avoidance Assessment........................................................................................... E - 3
Loss Avoidance Assessment – Basic Steps ........................................................................................... E - 3
Step One: Collect Event Data ........................................................................................................... E - 3
Step Two: Enter Event Data ............................................................................................................. E - 3
Step Three: Loss Avoidance Calculations ......................................................................................... E - 3
Loss Avoidance Report Development .................................................................................................. E - 3
Assumptions......................................................................................................................................... E - 3
CHAPTER ONE: Functions Involved in Loss Avoidance Analysis............................................................... E - 4
Cost Avoidance..................................................................................................................................... E - 4
Types of Damage Calculated in the LAC........................................................................................... E - 4
Cost Normalization .............................................................................................................................. E - 4
The GDP Deflator ............................................................................................................................. E - 5
Relative Share of GDP ...................................................................................................................... E - 6
Normalizing Dollars by Reversing the Discount Rate ....................................................................... E - 6
Comparing the methods .................................................................................................................. E - 6
Net Present Value of a Mitigation Project ........................................................................................... E - 6
Return on Investment .......................................................................................................................... E - 7
CHAPTER TWO: Calculating Loss .............................................................................................................. E - 7
The Depth Damage Function ............................................................................................................... E - 7
Building Loss..................................................................................................................................... E - 9
Contents Loss ................................................................................................................................... E - 9
Inventory Loss ................................................................................................................................ E - 11
Displacement Loss.............................................................................................................................. E - 11
SOURCES ................................................................................................................................................ E - 13
Specific Elements ............................................................................................................................... E - 13
Principal Sources Used to Develop Florida’s System and Strategy.................................................... E - 13
E-1
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
This Section provides technical details regarding the system and strategy the Florida Division of
Emergency Management (the Division) is using to conduct post-disaster loss avoidance assessments of
completed flood mitigation building modification projects. 1 2 Flood building modification projects
include:
•
•
•
•
Acquisition
Elevation
Floodproofing
Mitigation Reconstruction
This Section includes the process for conducting a flood building modification project loss avoidance
assessment, technical details regarding computation of quantitative impacts, losses avoided, return on
investment, and sources used to develop the system and strategy.
FEMA provides many useful resources that can be used to facilitate loss avoidance assessment. The
State of Florida has developed its own system and strategy for conducting loss avoidance assessment
from a close review of FEMA and other resources. The State developed its methodologies with the
motivation to distill the best components of various approaches to develop a streamlined and defensible
process that can be implemented using existing human resources and does not add significantly to the
cost of mitigation.
System and Strategy Overview
The purpose of the Loss Avoidance Calculator (LAC) for flood mitigation building modification projects is
to help substantiate the value of flood mitigation projects in Florida by viewing losses avoided as
financial returns. Analysts researched various loss avoidance assessment methodologies, past FEMA loss
avoidance studies, and identified methods to streamline the process so that existing staff could
accomplish assessments with limited training. The current LAC (Beta 0.1) operates within Microsoft
Excel 2007. This platform was chosen because it can be quickly and easily adapted, stored, and
transferred to other users.
Loss avoidance for a flood mitigation building modification project is calculated in a three step process
(in addition to pre-LA preparations and report development) which uses a combination of information
about the storm-event and the mitigation project(s), as well as pre- and post- mitigation facts about the
1
The term “building modification” has been adopted for this guide in order to avoid confusion with conflicting
terms used by other state and federal agencies. For instance, the term “non-structural” is used by the Army Corps
of Engineers to refer to projects which do not modify the environment. Use of this term may cause confusion as
the same projects may also be referred to as “structural” depending on context.
2
The other flood hazard mitigation option is environmental modification. Environmental modification involves
drainage and other flood reduction projects. Environmental modification is addressed under an alternate system
and strategy. Wind retrofit projects are addressed in Florida’s Wind Retrofit Loss Avoidance Assessment System
and Strategy.
E-2
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
structure(s) to be evaluated. Post-event building damage is assessed using flood depth determined
through on-the-ground reporting (or other reliable source – See Section C Event Data Collection and
Processing).
The loss avoidance calculator uses depth damage functions 3 to convert flood depths into estimated
damage. It then converts this damage into economic losses and normalizes the figures to present-day
dollar amounts to provide an approximate return on investment. Entering data for multiple flood events
will cause the calculator to provide the net present value of the mitigation project.
Preparing for Loss Avoidance Assessment
Preparations for loss avoidance assessment involve project record-keeping. More detail regarding the
preparation process is provided in Section B Project Record-keeping and Data Needs.
Loss Avoidance Assessment – Basic Steps
A flood loss avoidance assessment is performed in four simple steps.
Step One: Collect Event Data
The LAC for flood mitigation building modification projects relies upon flood depths to calculate losses.
Consequently, the first step is to gather flood depths from an event using one of several methods. The
most accurate method is to collect high water marks in the area or on the structures themselves. More
detail regarding optional ways to complete this process are provided in Section C Event Data Collection
and Processing.
Step Two: Enter Event Data
Event data is then entered into the LAC. Section D LAC User Guide provides details.
Step Three: Loss Avoidance Calculations
Loss avoidance is determined through use of damage functions and detailed cost calculations. The LAC
performs necessary calculations and provides nominal costs avoided, normalized losses avoided, and
return on investment. Full details are provided in Section D LAC User Guide.
Loss Avoidance Report Development
The LA report is developed to portray the dollars saved due to mitigation during the storm event being
analyzed.
Assumptions
·
·
Sources used in the development of this methodology are reliable.
The data provided by sources used to develop this methodology is accurate.
3
These damage functions were extracted from FEMA’s Risk Analysis Software, Hazus MH MR5. See Section E
Technical Details for more information.
E-3
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
CHAPTER ONE: Functions Involved in Loss Avoidance Analysis
The flood retrofit LAC performs three significant functions in order to provide outputs that can be used
in loss avoidance report development. These functions are:
1. Compute costs avoided in the hazard event;
2. Normalize project capital and maintenance costs to present day dollars; and
3. Calculate Losses Avoided (LA) and return on investment (ROI).
Cost Avoidance
Cost avoidance 4 is a function of two project scenarios and their associated expected impacts during a
hazard event: 1) the structure has been mitigated, and 2) the structure has not been mitigated. FEMA
uses the terms Mitigation Project Absent (MPA) and Mitigation Project Complete (MPC) and these terms
will be used for consistency. To determine costs avoided during a hazard event, damage MPA and
damage MPC must be estimated and calculated, respectively. The formula below was used to calculate
costs avoided. 5
(MPA-MPC) = CA
Where
·
·
·
MPA = Damage expected in Mitigation Project Absent scenario;
MPC = Damage experienced in Mitigation Project Completed scenario; and
CA = Costs Avoided.
Types of Damage Calculated in the LAC
There are many losses associated with flood hazard events that can be characterized. For instance, such
losses might be social, economic, emotional, or environmental. Florida’s Flood LAC strictly calculates
direct economic losses due to physical damage to the structure and its contents, as well as due to
structure loss of use. The LAC allows more advanced users to incorporate other losses in context, as
necessary. Future iterations of the calculator may incorporate further losses automatically, as
appropriate.
Cost Normalization
Cost avoidance is presented in nominal terms: in terms of the year in which the impacting event
occurred. In order to calculate losses avoided, the project cost and other maintenance costs must be
subtracted from costs avoided. Nevertheless, in most cases the project completion date will occur prior
4
The terms cost avoidance and loss avoidance are often used interchangeably. For the purposes of this package
and to avoid confusion, cost avoidance will refer to the difference between damages that did occur and that could
have occurred without a mitigation project in a single hazard event. Loss avoidance will refer to cost avoidance
with project cost and possibly multiple events being considered. The terms cost and loss in all other instances
(without the accompanying “avoidance”) are used interchangeably as appropriate.
5
A brief explanation of this concept is provided here. A more thorough analysis is provided in FEMA Loss
Avoidance Study A Handbook for Decision Makers, Dec. 2009
E-4
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
to the event date. This means that $1 at the time of project completion likely does not have the same
value as $1 at the date of event impact.
As a result, past and present benefits and costs must be normalized in order to measure their true value.
Normalization refers to the process of converting figures of differing origins, in this case different dollar
amounts from different years, into a value that can be recognized and interpreted consistently.
Discount rates are the generally accepted method used to calculate the present value of future costs or
benefits, but there are many possible methods to measure or normalize the worth of past dollars. 6
The LAC uses three methods to provide three different results: the GDP Deflator, the percent share of
GDP, and the reverse discount rate (calculated using the inflation rate and 5 year bond rates).
It is important to recognize that these outputs provide loss avoidance assessment results from three
different perspectives. While one or all can be chosen to represent value, they should not be averaged.
An overview of these methods and their calculations is provided below.
The GDP Deflator
The Gross Domestic Product (GDP) Deflator is a figure calculated by the Federal Bureau of Economic
Analysis (BEA) to normalize the country’s gross domestic product figures over time. Public investments
can be normalized using these figures.
GDP deflator that BEA uses in any given year is found by following this formula:
GDP Deflator = (Nominal 7 GDP/Real GDP) x 100
BEA calculates the GDP Deflator by using the base year of 2005. Using a base year of 2005 poses a
problem for each year following 2005. Since losses avoided may be for events post-2005, the following
calculations were performed to determine the multiplier in any given year to determine present dollar
value.
(GDP Deflatorn/100) / (GDP Deflatorx)/100)
Where, n refers to the year of the event being reviewed and x refers to the year prior to the present
year. 8
This ratio can then divide into costs in the appropriate year to determine the present value of past
dollars spent.
6
See http://www.measuringworth.com/uscompare/ for a comprehensive look at accepted methods.
Nominal GDP is the raw figure for gross domestic product without any normalizing adjustment
8
The year must be passed for GDP Deflator to be calculated.
7
E-5
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Relative Share of GDP
This method to normalize costs values public investment based on the size of economy at the time of
the investment. It clarifies the value of the project at the time of the investment, in today’s terms, as a
share of the total amount of money available for investment in the country at the time. In other words,
it answers the question, “What was the public investment’s value?” with the question “How much of a
share of GDP was spent on the public investment?”
Normalization through relative share of GDP can be calculated as follows:
(Costn / Nominal GDPn)(Nominal GDPx)
Where, n is the year of the cost incurred and x refers to the year prior to the present year. 9
Normalizing Dollars by Reversing the Discount Rate
This method controls for inflation and takes into account opportunity cost. The opportunity cost is that
of not having invested funds in a Government Issue five year bond. For longitudinal assessment, this
method takes into account investment dollars saved from losses avoided during past flood events. For
events prior to the present year, it assumes a return on dollars saved yields a return equivalent to that
from investing in the Government Issue 5-year bond.
Normalizing costs using this method are calculated as follows:
Real Discount Rate = (r-i) / (1+i),
Where r = Interest Rate and i = Inflation Rate
Due to the fact that all projects included in loss avoidance studies have been developed since 1992, the
average interest 10 and inflation 11 rates have been calculated from this period through April 2010.
Comparing the methods
This discount rate method scrutinizes fund expenditure much more than the Relative Share of GDP or
the GDP deflator methods. Nevertheless, the GDP methods depict the value of the funds as compared to
the overall purchasing power of the economy. All three may be used to provide a comprehensive picture
of the value of mitigation from multiple perspectives.
Net Present Value of a Mitigation Project
The net present value of a mitigation project is losses avoided minus dollars spent and, in the case of
Flood retrofit projects, any actual losses not completely mitigated over the life of the project and
multiple events.
9
The year must pass for Gross Domestic Product to be calculated.
The average interest rate was calculated for the 5 year bond rate for each day. Source:
http://www.ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield_historical_huge.shtml
11
Average inflation rate was calculated using the average for each year. Source:
http://www.usinflationcalculator.com/inflation/historical-inflation-rates/
10
E-6
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Return on Investment
The final task in the loss avoidance assessment for Flood retrofit projects is to calculate the Return on
Investment (ROI), where ROI is a factor of the dollars saved (losses avoided) due to mitigation over the
investment. Losses avoided are considered a return because they represent money that is saved, as
opposed to spent, due to the mitigation project. These funds are thus available for investment in other
endeavors, instead of disaster recovery. ROI can help guide decision-making by identifying which
investments have been cost-effective. The formula below was used in calculating the ROI.
LA / PI = ROI
Where
· LA = Losses Avoided ($) in terms of any of the above normalization methods;
· PI = Project Investment in terms of any of the above normalization methods (Mitigation Costs)
($); and
· ROI = Return on Investment (%).
The project investment (PI) includes capital investment, as well as costs incurred over the life of the
project for maintenance. The LA represents the total losses avoided for the mitigation project being
evaluated. Losses avoided can be for one event or over the lifetime of the project. The ROI for each
project is expected to increase as the project remains effective through multiple storm events. The
Flood retrofit LAC Beta currently calculates loss avoidance and ROI for one storm event at a time.
CHAPTER TWO: Calculating Loss
For each assessed structure, the Flood Retrofit LAC Beta relies on expected losses to the building, its
contents, inventory, and displacement of the occupants to calculate expected or actual total loss in both
MPA and MPC scenarios. 12 In other words, total loss from impacts to a structure in a storm event is
calculated in the following manner:
Building Damage + Contents Damage + Inventory Loss + Displacement Costs = Loss
These figures must all be calculated in dollar amounts for consistency. The methods for deriving these
figures are provided below.
The Depth Damage Function
The extent of damage to a building and its contents is estimated directly from the depth damage curve
associated with each occupancy class. Damage curves are calculations based on empirical data to
establish a relationship between various building characteristics and expected impacts from flood
hazards. In other words, damage functions are used to determine expected damage to a structure given
a certain flood event. Users enter building characteristics into the LAC, as prompted, and the calculator
12
The MPA scenario losses will always be theoretical. The MPC scenario results may be actual or theoretical
depending on the approach used. See SECTION ONE.
E-7
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
will determine the appropriate damage function code based on the input. Specific design and
construction information about the building types may be found in the Hazus 2.0 Flood Model Technical
Manual, Section 6. More detail about the qualities that contribute to damage function codes is provided
in the Flood Retrofit LAC User Guide.
Two inputs are required to estimate building damage using depth damage curves:
·
·
Occupancy class, foundation type, first floor elevation
Depth of the flooding
Depth damage functions are associated by the occupancy of a building and key fields are used such as
the number of stories and foundation. These functions are in the form of depth-damage curves, relating
depth of flooding in feet, as measured from the top of the first finished floor, to damage expressed as a
percent of replacement costs. The output from a depth-damage curve is an estimate of the damage to
the building, contents, and inventory (if applicable) at a given depth, expressed as a percentage. This
includes:
•
•
•
% of building damaged
% of contents damaged
% of inventory damaged (commercial only)
Depth-damage functions are provided separately for building and for contents. These functions were
extracted from the Hazus 2.0 Flood Model which was compiled from a variety of sources including: the
Federal Insurance and Mitigation Administration (FIMA), the US Army Corps of Engineers (USACE), and
the USACE Institute for Water Resources. Figure 1 provides an example of a depth-damage curve
extracted from Hazus.
E-8
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Figure 1 Example Structure Depth-Damage Curve
Source: FEMA Hazus Flood Technical Manual
Building Loss
Potential costs incurred due to building loss can be calculated using percent building damage and
building replacement value. 13 For instance, if 20-percent of a building that would cost $100,000 to
replace is expected to be damaged, the costs to repair or replace those damaged components are
estimated to be $20,000. Percent building damage is cacalucated using a series of flood damage
functions which have been incorporated into the LAC. As is the default value specified in FEMA’s BCA
Riverine Flood-Full Data Module, it is assumed that building damage of 50 percent or more would result
in demolition (demolition threshold)
Computation of Building Loss
To calculate building loss, the total replacement value of the building is multiplied by the percent
building damage as determined through the applicable damage function.
Contents Loss
A structure’s contents consist of furniture, decorations, and other belongings that can be removed from
the interior of the structure. Contents value is based on the building occupancy and associated contents
multiplier to determine value. To estimate contents value, the total replacement value is multiplied by
the contents multiplier associated with a building’s occupancy.
Contents loss is determined by the percent building damage as determined through the applicable
damage function as well. This percent loss is multiplied by calculated content value to determine the
total cost of content loss to a structure during the studied event.
13
Building Replacement Value (BRV) is typically calculated based on a replacement value per square foot basis.
E-9
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Contents Value
In order to determine contents losses, it is important to understand the value of the contents impacted.
The value of a structure’s contents can be estimated based on the occupancy, or use, of the building.
Hazus 2.0 provides a mechanism to accomplish this and derives contents values as an expected share of
the total building replacement value. Building occupancy types and corresponding contents multipliers
are in the table below. In order to determine contents value, the LAC factors the multiplier with the total
building replacement value.
Table 1: Building Occupancy and Contents Multiplier
# Code
Building Occupancy
Contents Multiplier
1
Single Family Dwelling
0.5
2
Manuf. Housing
0.5
3
Duplex
0.5
4
Triplex / Quads
0.5
5
Multi-dwellings (5 to 9 units)
0.5
6
Multi-dwellings (10 to 19 units)
0.5
7
Multi-dwellings (20 to 49 units)
0.5
8
Multi-dwellings (50+ units)
0.5
9
Temporary Lodging
0.5
10
Institutional Dormitory
0.5
11
Nursing Home
0.5
12
Retail Trade
1
13
Wholesale Trade
1
14
Personal and Repair Services
1
15
Professional/Technical Services
1
16
Banks
1
17
Hospital
1.5
18
Medical Office/Clinic
1.5
19
Entertainment & Recreation
1
20
Theaters
1
21
Parking
0.5
22
Heavy
1.5
23
Light
1.5
24
Food/Drugs/Chemicals
1.5
25
Metals/Minerals Processing
1.5
26
High Technology
1.5
27
Construction
1
28
Agriculture
1
29
Churches and Other Non-profit Org.
1
30
General Services (Gov)
1
31
Emergency Response
1.5
E - 10
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
# Code
Building Occupancy
Contents Multiplier
32
Grade Schools
1
33
Colleges/Universities
1.5
Source: FEMA Hazus: Flood Technical Manual
Computation of Contents Loss
To calculate building loss, the estimated contents value of the building is multiplied by the percent
contents damage as determined from the applicable damage function.
Inventory Loss
Inventory losses in the Flood LAC are determined in a manner consistent with building and contents
losses. Only commercial, industrial, and agricultural occupancies are considered in inventory loss
estimation. Inventory losses are estimated using depth damage functions, in conjunction with user
defined inventory values.
Computation of Inventory Loss
To estimate inventory losses, percent damage as determined from the depth damage function is
multiplied by the total inventory value.
Displacement Loss
The number of days occupants will be displaced is not contained within the depth damage function, but
rather through displacement figures which have been extracted using several FEMA loss avoidance
methodological studies. Displacement is measured in days and is correlated with the flood depth of a
specific event as displayed in Table 2.
Table 2 Default Depth Damage Function Table
Flood depth (ft)
Displacement (Days)
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
12.00
0
0
62
126
166
182
190
270
294
302
310
365
365
365
E - 11
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
13.00
14.00
15.00
16
17
18
365
365
365
365
365
365
Computation of Displacement Loss
To estimate a dollar value for displacement, the displacement cost per month entered by the analyst is
interpolated by the number of days of displacement which may be expected as a result of the flood
event.
E - 12
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
SOURCES
Specific Elements
Table 3: Sources Used in Developing the Flood Loss Avoidance Calculator
Information
Source
Building Types
FEMA BCA V.4.5.5 / Hazus 2.0
Building Damage Function Codes FEMA Standard Values (Hazus 2.0)
Contents Values
FEMA Standard Values (Hazus 2.0)
Principal Sources Used to Develop Florida’s System and Strategy
Bureau of Economic Analysis. (n.d.). Retrieved April 2010, from http://www.bea.gov
Durham Technologies, Inc. (unknown). Measuring Losses Avoided through Hazard Mitigation: An
Operations Manual DRAFT. Atlanta: DRAFT.
Federal Emergency Management Agency. (2006). 2006 Guidelines for Benefit-Cost Analysis Version 3.0.
Washington, D.C.: Department of Homeland Security.
Federal Emergency Management Agency. (2009). BCA Reference Guide. Washington, D.C.: Department
of Homeland Security.
Federal Emergency Management Agency. (2008). FEMA P-699 Loss Avoidance Study: Sonoma County,
California Elevated Structures . Washington, D.C.: U.S. Department of Homeland Security.
Federal Emergency Management Agency. (2010). Hazus 2.0 Earthquake Technical Manual. Department
of Homeland Security.
Federal Emergency Management Agency. (2010). Hazus 2.0 Flood Technical Manual. Department of
Homeland Security.
Federal Emergency Management Agency. (September 2009). Loss Avoidance Study – Wisconsin Property
Acquisition and Structure Demolition. Washington, D.C.: Department of Homeland Security.
Federal Emergency Management Agency. (2009). Loss Avoidance Study: A Handbook for Decision
Makers. Washington, D.C,: Department of Homeland Security.
Federal Emergency Management Agency. (2008). Loss Avoidance Study: Northern California Flood
Control Mitigation- Part One: General Methodology. Washington, D.C.: Department of Homeland
Security.
E - 13
Florida Division of Emergency Management | December2011
Loss Avoidance Analysis for Flood Mitigation Building Modification Projects
Technical Details
Federal Emergency Management Agency. (2008). Loss Avoidance Study: Northern California Flood
Control Mitigation- Part Two: Detailed Methodology. Washington, D.C.: Department of Homeland
Security.
Federal Emergency Management Agency. (2007). Loss Avoidance Study: Southern California Flood
Control Mitigation Part 1. Washington, D.C.: Department of Homeland Security.
Federal Emergency Management Agency. (2007). Loss Avoidance Study: Southern California Flood
Control Mitigation Part 2. Washington, D.C.: Department of Homeland Security.
Federal Emergency Management Agency; Housing and Redevelopment Authority of Austin, City of
Austin, MN. (March 2001). Losses Avoided due to Home Acquisitions in Austin, Minnesota: Post - Disaster
Economic Evaluation of Hazard Mitigation. Austin, MN: Minnesota Department of Public Safety Division of Emergency Management.
Federal Emergency Management Agency; US Army Corps of Engineers Mobile District, Alabama. (2000).
Losses Avoided in Birmingham, Alabama: Post - Disaster Economic Evaluation of Hazard Mitigation.
Birmingham: Department of Homeland Security.
Federal Emergency Management Agency; Washington State JFO. (February 2008). Evaluating Losses
Avoided Through Hazard Mitigation - City of Centralia, Washington. Washington, D.C.: Department of
Homeland Security.
Jain, D. V. (2010, March). Preview Mode: On Anatomy of a Damage Function: Dispelling the Myths. Air
Currents - Air Worldwide Corporation , pp. 1-6.
Officer, L. H. (2010). "Measures of Worth". Retrieved November 2010, from Measuring Worth:
www.measuringworth.com/worthmeasures.php
Williamson, S. H. (2010, April). "Seven Ways to Compute the Relative Value of a U.S. Dollar Amount,
1774
to
present"
.
Retrieved
August
2010,
from
MeasuringWorth
:
www.measuringworth.com/uscompare/
E - 14
Florida Division of Emergency Management | December2011