Cost of Effective Analysis of Hazard Mitigation Projects

Benjamin F. BobzienFaculty Sponsor: Dr. Robert Berry

Western Carolina UniversityResearch Project

IntroductionBenjamin F. Bobzien

Father

Husband

Fire Captain

Student

Fiscal Impact of DisastersFiscal Impact

Response and Recovery

Increase in Financial NeedAmount of DisastersPopulation IncreaseHigh Hazard Area

Development

What Can Be Done to Reduce Fiscal Impact?

Natural Hazard Mitigation

DefinedWho can perform

NHM?

Governments/Private Organizations

Individuals Homeowners Business-owners

Methodology of ResearchWhat was learned through the research of

NHM?Information was broadTwo common pieces of information

Must determine the cost/effectiveness of the project Must determine the benefits though a Benefit/Cost

AnalysisCost associated with the projects

Direct Costs Indirect Costs

Funding Opportunities

Cost-Effective Analysis Early Determination

Robert T. Stafford ActDisaster

DeclarationsHazard MitigationFederal Funding

Options

Stewards of Tax Dollars

Cost-Effective AnalysisWhich Projects are Chosen?

Benefits>Costs

Difference Between Cost-Effective Analysis and Benefit/Cost Analysis Qualitative/Quantitative

Benefit/Cost AnalysisRequired by the Stafford

Act

Will the benefits exceed the project’s cost (monetary)?

Costs and benefits in dollar amounts

Ratio>1 means benefits exceed

the costs>1 eligible for federal

funding

Benefits of MitigationReduction or elimination of effects of

disastersFewer deaths and injuriesFewer properties damaged or lostReduced personnel costs relating to disaster

responseLess impediment of commerceSaving historic structuresProtecting infrastructure

Cost of MitigationCosts are determined in the planning phaseDirect Costs

Project DevelopmentLaborConstruction materialsEquipmentSub-ContractorsDemolition/debris removal

May require the use of public or private funding

Cost of MitigationIndirect Costs

OperationMaintenanceManagementRe-evaluation

Simple/Low Cost ProjectsClearing debris/creating defensible spacesInitiating new codes and ordinancesMinor adjustments to existing structures

Federal funding options available

Federal Funding OptionsPrograms and grants to offset

the monetary burdenPrograms include:

Hazard Mitigation Grant Program

Pre-Disaster Mitigation Program

Flood Mitigation Assistance Program

Repetitive Flood Claims Program

Severe Repetitive Loss Program

Detailed view of the programs

Cost SharingCommon with all hazard mitigation programsShared between federal and non-federal

fundingShared funds must be applied to specific and

approved itemsNon-federal costs should be reasonable and

necessaryMost call for 75% federal/25% non-federal

matchFEMA reserves the right to adjust the

percentages

Failure to MitigateSetting up for higher

risks and the effects of disasters

Lives are lost

Injuries are frequent

Buildings are damaged and destroyed

Infrastructure is damaged

Failure to MitigateCommerce is delayed

Very high cost for response and recovery

Distress and psychological impacts

Loss of jobs

Outward migration of the population

Current Mitigation ProjectsCarolina Beach, NCAwarded $1,074,899.00

from FEMA 100% federally funded,

no matchingUsed to raise 7 homes in

a 100-year flood plainPrevious Grants

1996 HMGP after Hurricane Fran

2008 Severe Repetitive Loss Program

Conclusion

Works CitedFederal Emergency Management Agency. (1997). Report on Costs and Benefits of

Natural Hazard Mitigation. Washington, D.C.: FEMA. Retrieved from https://www.fema.gov/media- library/assets/documents/3459

Federal Emergency Management Agency. (2001). Telling the Tale of Disaster Resistance-A Guide to Capturing and Communicating the Story. Washington, D.C.: FEMA.

Federal Emergency Management Agency. (2009). Benefit Cost Analysis Guide. Washington, D.C.: FEMA. Retrieved from https://www.fema.gov/media-library/assets/documents/92923

Federal Emergency Management Agency. (2013). Hazard Mitigation Assistance Unified Guidance. Washington, D.C.: FEMA. Retrieved from https://www.fema.gov/media- library/assets/documents/33634

Federal Emergency Management Agency. (2014). Hazard Mitigation Grant Program. Washington, D.C.: FEMA. Retrieved from https://www.fema.gov/hazard-mitigation-grant-program

Oregon Partnership for Disaster Resilience. (2012). Appendix C: Econominc Analysis of Natural Hazard Mitigation Programs. Beaverton. Retrieved from www.beavertonoregon.gov

United States General Accounting Office. (1999). Disaster Assistance-Information of the Cost-Effectiveness of Hazard Mitigation Projects. Washington, D.C.

Weiss, D. J., & Weidman, J. (2013, April 29). Disasterous Spending: Federal Disaster Relief Expenditures Rise Amid More Extreme Weather. Retrieved from Center for Amercian Progress: https://www.americanprogress.org/issues/green/report/2013/04/29/61633/disastrous-spending-federal-disaster-relief-expenditures-rise-amid-more-extreme-weather/