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Citation:           FEMA-1766-DR-IN, Johnson Memorial Hospital, PW 2002

Cross
Reference:       Hazard Mitigation
                 
Summary:        Severe storms and flooding caused damage to approximately 51,173 square feet of Johnson Memorial Hospital on June 8, 2008.  FEMA determined that PW 2002 was eligible for funding but denied the HMP because the Benefit Cost Analysis (BCA) gave a result of 0.22 that determined the HMP was not cost effective.  In its first appeal, the Applicant stated that it adjusted the cost of the HMP to $387,840 that consisted of a lift station and associated sanitary sewer improvements as well as storm water rerouting measures.  The Applicant also argued that the adjusted project cost would adjust the BCA to over 1.0 and make the HMP cost effective.  The Acting Regional Administrator denied the first appeal because the HMP did not directly relate to the damaged elements of the facility.  The Applicant submitted its second appeal dated October 23, 2009.  The Applicant argued that its drainage improvements mitigated against the floodwaters that damaged the eligible facility and that FEMA funded HMPs that did not relate to damaged facilities on other disasters. 

Issues:         1.  Does the HMP directly reduce future, similar    damage?   

                      2.  Is the HMP cost effective?

                                   

Findings:       1.  Yes.

                       2.  No. The benefit/cost ratio is 0.8.

 

Rationale:      44 CFR §206.226(e), Hazard Mitigation, Response and Recovery Policy 9526.1, Hazard Mitigation funding under Section 406, dated July 30, 2007.