Exh 8AAgenda #8A
October 23, 2000
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Authorization to submit application for Community Rating System
participation.
SUBMITTED BY: George Worley, Community Development Director ~ /,~~
DATE: October 17, 2000
BACKGROUND:
The Florida Department of Community Affairs, in cooperation with the Insurance Services Office
and FEMA, offers a volunteer program wherein participating communities document their flood
mitigation policies and flood losses. The ISO then rates the community and, depending upon the
rating received, FEMA may reduce the flood insurance rates charged to local residents. The
rating effects the City in very much the same way as the Fire Protection and Buflding Department
ratings which we already receive. The program has high participation in Florida and staff sees a
potential for a reduction in rates here because many of our existing procedures meet or exceed
those required by FEMA, ISO and DCA.
Staff has not attached the application form as it comprises approximately 60 pages. The
application is available in the office of the Community Development Director.
BUDGET: There are no application costs.
RECOMMENDATION:
Staff recommends the City Conunission authorize the City Manager and staff to finalize and
submit an application to participate in the Community Rating System
ATTACHMENTS:
1) Synopsis of Community Rating System
REVIEWED BY CITY
Agenda #8A
October 23, 2000
The National Flood Insurance Program's (NFIP) Community Rating
System (CRS) was implemented in 1990 as a program for recognizing
and encouraging community floodplain management activities that
exceed the m;n;r,;um NFIP standazds. The National Flood Insurance
Reform Act of 1994 codified the Community Rating System in the
NFIP. Under the CRS, flood insurance premium rates are adjusted to
reflect the reduced flood risk resulting from community activities that
meet the three goals ofthe CRS: (1) reduce flood losses; (2) facilitate
accurate insurance rating; and (3) promote the awareness of flood
insurance.
There aze ten CRS classes: class 1 requires the most credit points and
gives the lazgest premium reduction; class 10 receives no premium
reduction. The CRS recognizes 18 creditable activities, organized under
four categories numbered 300 through 600: Public Information,
Mapping and Regulations, Flood Damage Reduction, and Flood
Preparedness.
Credit points earned, classification awarded, and premium
reductions given for communities in the
National Flood Insurance Program
Community Rating System.
Premium Reduction
Credit Class SFHA* Non-SFHA**
Points
4,500+ 1 45% 5%
4,000 - 4,499 2 40% 5%
3,500 - 3,999 3 35% 5%
3,000 - 3,499 4 30% 5%
2,500 - 2,999 5 25% 5%
2,000-2,499 6 20% 5%
1,500 - 1,999 7 IS% 5%
1,000 - 1,499 8 10% 5%
500 - 999 9 5% 5%
0 - 499 10 0 0
*Special Flood I -Iazazd Area
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Community Rating System
Agenda #8A
October 23, 2000
**Preferred Risk Policies are available only in B, C, and X Zones for properties
that aze shown to have a minimal risk of flood damage. The Preferred Risk
Policy does not receive premium rate credits under the CRS because it already
has a lower premium than other policies. Although they aze in SFHAs, Zones
AR and A99 aze limited to a 5% discount. Premium reductions are subject to
change.
There are now over 900 communities receiving flood insurance
premium discounts based on their implementation of local mitigation,
outreach, and educational activities that go well beyond minimum NFIP
requirements. While premium discounts are one of the benefits of
participation in CRS, it is more important that these communities are
carrying out activities that save lives and reduce property damage. These
900 communities represent a significant portion of the Nation's flood
risk as evidenced by the fact that over 66% of the NFIP's policy base is
located in these communities. Communities receiving premium
discounts through the CRS cover a full range of sizes from small to
lazge, and a broad mixture of flood risks including coastal and riverine.