HomeMy WebLinkAboutSS3- Balboa Island & FEMA-Flood Insurance Issues PresentationiTi i ►� :
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Balboa Island and
FEMA /Flood Insurance Issues
Presented to
City Council
April 9, 2013
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History
National Flood Insurance Act of 1968
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Flood Disaster Protection Act Of 1973
Created the National Flood Insurance Program
Flood Insurance Study - Orange County Effective:
February 1989; Establishing the Special Flood
Hazard Areas
Floodplain Management Ordinance Adopted in
1993
Rcial HOOCI Hazard Are2
Issues
Balboa Island is entirely covered by the
Special Flood Hazard Area.
Almost all the properties on Balboa Island
are below the current Base Flood
Elevation (BFE) of 9.0.
How does a property owner obtain
affordable Flood Insurance.
National Flood
Insurance Program (NFIP)
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NFIP is voluntary and Newport Beach currently
participates along with approx 550 other
communities in California;
NFIP provides federally backed affordable flood
insurance to ALL participants;
Over 1,600 residents are NFIP policy holders;
Compliance
with NFIP
requires the CNB to reduce
future
flood
risk
through
Ordinance.
Floodplamin Management
Ordinance - NBMC 15.50
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Ordinance = NBMC 15.5C
Current Ordinance:
Floodplain Management Chapter 15.50
The purpose of the ordinance is:
To minimize losses (bodily and property) due to
flood conditions.
To minimize expenditure of public money.
To minimize prolonged business interruptions
(Reviewed and Approved by FEMA in November 2009)
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The Floodplain Management Ordinance
includes:
Compliance Factors
Definitions -.Substantial Improvement &
Current Value
Procedures of Implementation
Variance and Appeal Rights
Substantial Improvement
Determination d
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If the project is Determined to be a Substantial
Improvement, Then the entire dwelling unit will need to be
raised up to the Base Flood Elevation of 9.0
Detern
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.
Cost of IM
elm
rovement M
Current Value($)
> 50%
*Cost of Improvement = Cost of Proposed Work
*Current Value "Sticks and Bricks'
= Dwelling Size X Average Cost per Sq.Ft.
(Depreciated Due to Age of Structure)
*NOTE: The value of the land and site improvements
and the value of business income are not included in
Current Value calculation. Program only insures
buildings not land.
Current Value: Average Construction Cost
per Square Foot Multiplied by the Size of
the Structure.
Early 2011:
March 2013:
Average Construction
Cost $ / sq.ft.
$160 / sq .ft.
$300 / sq.ft.
Denreciatic
New Depreciation Schedule established
March 2013.
Based on information provided by FEMA
Example: 25
years
old =
20% depreciation
50
years
old
= 20%
Pro Forma Examples
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•
OLD ANALYSIS
Value "Sticks and Bricks" = 2,OOOsgft x $160 /sqft = $320,000
Depreciation of 50 years old = 60%
Adjusted Value = $320,000 — ($320,000 x .60) _ $128,640
49.9% _ $64,191 Maximum Improvement w/o qualifying as a
Substantial Improvement
NEW ANALYSIS
Value "Sticks and Bricks" = 2,OOOsgft x $300 /sqft = $600,000
Depreciation of 50 years old = 20%
Adjusted Value = $600,000 — ($600,000 x.20) _ $480,000
49.9% _ $239,520 Maximum Improvement w/o qualifying as a
Substantial Improvement
15500 $485000 $1805000
2, 500 $807000
3, 500 $112)000
4,500 $144,000
$300,000
$420)000
$540,000
Private Flood Insurance
Private Hoot
oot
Arnold Mello from WNC First Insurance Inc.
Next Steps
UOMMIFILIF. Wir
Perform a study of the Still Water Level.
Approximate Cost: $50k; Time: 4 -6 M
Perform additional tide /storm surge studies if
the results of #1 above are questionable.
Approximate Cost: $150k- $200k; Time: 6 -8 M
Based on the studies, determine whether or not
to continue to participate in the NFIP.
Questions?