REPORT TO COUNCIL
SUBJECT
Title
Action on the 2019 Annual Report Related to the Federal Emergency Management Agency's National Flood Insurance Program's Community Rating System
Report
BACKGROUND
The City has participated in the Federal Emergency Management Agency's (FEMA) National Flood Insurance Program's (NFIP) Community Rating System (CRS) program since 2002. CRS is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements.
Flood insurance premium rates for residents and businesses are discounted to reflect the reduced flood risk resulting from the community activities meeting the three goals of the CRS:
1. Reduce flood damage to insurable property;
2. Strengthen and support the insurance aspects of the NFIP; and
3. Encourage a comprehensive approach to floodplain management.
The City is currently CRS Class 8, which means the City's residents and businesses in a Special Flood Hazard Area (SFHA) are eligible for a 10 percent insurance premium discount, and others in the City that are not in a SFHA are eligible for a 5 percent insurance premium discount. The average annual flood policy premium in the City is approximately $875, and average insurance coverage is about $310,000. Due to participation in the CRS program, the estimated total flood insurance premium savings in the City is over $72,500 for 2019. Estimated premium savings is slightly up from 2018, possibly due to rising insurance premium costs.
The City works closely with the Santa Clara Valley Water District (Valley Water), whose participation in CRS dates back to 1998. Valley Water's participation in CRS allows them to document qualifying flood risk reduction activities they perform throughout the Santa Clara County. CRS credits for these Valley Water activities are then transferred to each CRS participating community, including the City of Santa Clara, and contributes to the flood insurance premiu...
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