Resolution No. 4814 - Laserfiche WebLink

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4.4 The Role of Benefit-Cost Analysis in Implementing Mitigation Measures The Eugene/Springfield Metro Area recognizes that benefit-cost analysis is required for all FEMA- funded mitigation projects under both pre-disaster and post-disaster mitigation programs. Any FEMA-funded mitigation project, in addition to meeting all other eligibility requirements, must, at a minimum, have a benefit-cost ratio greater than 1.0 (i.e., benefits must exceed costs). Furthermore, especially for competitive programs such as the Pre-Disaster Mitigation Program, benefit-cost ratio is a very important factor in the overall ranking. That is, mitigation projects with high benefit-cost ratios have a higher probability of funding that do mitigation projects which barely meet the minimum criteria of a benefit-cost ratio greater than I In completing benefit-cost analyses for potential mitigation projects to be submitted for FEMA funding, the Eugene/Springfield Metro Area recognizes that detailed documentation of methods, data and assumptions are essential elements, required by FEMA. Furthermore, all benefit-cost analyses must be conducted using FEMA software or FEMA-approved software, using standardized methods and approaches as outlined in FEMA's published guidance for Benefit- Cost Analysis (e.9., Benefit-Cost Analysis Toolkit CD). Furthermore, the Eugene/Springfield Metro Area recognizes that benefit-cost analysis of prospective hazard mitigation projects is a powerful tool for evaluating and prioritizing mitigation projects, regardless of whether or not FEMA funding is sought. Therefore, City departments, other public agencies, businesses and private citizens considering undertaking hazard mitigation projects are encouraged to use benefit-cost analysis as part of their evaluation of possible projects. Pubhc Review Draft: October 12, 2004 4-16