REPORT TO COUNCIL
SUBJECT
Title
Action on the 2022 Annual Report Related to the Federal Emergency Management Agency's National Flood Insurance Program's Community Rating System
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
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
3. Encourage a comprehensive approach to floodplain management
The City is currently CRS Class 7, which means that residents and businesses in the City's Special Flood Hazard Area (SFHA) are eligible for a 15 percent insurance premium discount, while others that are not in an SFHA are eligible for a 5 percent insurance premium discount. The average annual flood policy premium for City residents and businesses is approximately $831, and the average insurance coverage is about $310,000. Due to participation in the CRS program, the 2022 estimated total flood insurance premium savings is over $72,900 for Santa Clara residents and businesses.
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 the CRS program allows them to document qualifying flood risk reduction activities they perform throughout Santa Clara County and receive credits that are then transferred to each CRS participating community, including the City of Santa Clara. These credits contribute to the flood insu...
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