To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Utilities Director
Title
Ordinance: Amending Sections 18.06.010 and 18.08.020 of the Castle Rock Municipal Code to Add a New Definition for Shaded Zone X and Adopting by Reference the March 16, 2016 Flood Insurance Study and Accompanying Flood Insurance Rate Maps (Second Reading)
Body
________________________________________________________________________________
Approved on first reading with a vote of 7 to 0 with no changes.
xecutive Summary
The purpose of this memorandum is to request Town Council approval of an ordinance amending Sections 18.06.010 and 18.08.020 of the Castle Rock Municipal Code to add a new definition for Shaded Zone X and adopting by reference the March 16, 2016 Flood Insurance Study (FIS) and accompanying Flood Insurance Rate Maps (FIRM) - Second Reading (see Attachment A). The current effective FIS and FIRM were published in September, 2005 and since that time several revisions and studies have been completed that are incorporated in the 2016 FIS and FIRM. The revised FIS and FIRM were released by the Department of Homeland Security Federal Emergency Management Agency (FEMA) on September 16, 2015. The Town must adopt the new mapping prior to March 16, 2016 as a condition of continued eligibility in the National Flood Insurance Program (NFIP).
This action will ratify several studies completed and approved through the Town’s floodplain management program and will provide a more accurate representation of flood risks for our customers. In essence, the proposed changes have already been incorporated into local requirements and have been working well.
The new mapping will continue to be made available on standard FIRM Panels, as well as digital format for geospatial reference, making information more readily available and accurate.
The definition for Shaded Zone X being added to the Municipal Code is consistent with the definition included on all FEMA FIRM panels. Shaded Zone X includes the areas of 0.2-percent-annual-chance flood, areas of one-percent annual chance flood with average depths of less than one-foot or with drainage areas less than one square mile, and areas protected by levees from one-percent annual chance flood as shown on the FIRM.
Notification and Outreach Efforts
This ordinance action was posted for public comment in accordance with Municipal Code. Additionally, FEMA provided legal notice in the local newspaper on November 20, 2014 and November 27, 2014, advertising the 90-day appeal period in accordance with statutory requirements. The Town supplemented this legal notice with extensive public outreach including the following:
• Postcards mailed to individual property owners within the floodway or 100-year floodplain in December, 2014
• News release in December, 2014
• Presentations to Economic Development Council, Downtown Development Authority, Downtown Merchants Association, Home Builders Association of Metro Denver, and Contractors Luncheon in January/February, 2015
• Courtesy notices mailed to individual property owners with identified changes to flood zone delineations in January, 2015
• Meetings with individual stakeholders in January/February, 2015
• Appointments with individual property owners impacted by the changes in February, 2015
The Town received a total of twenty inquiries during the 90-day appeal period and subsequently submitted an appeal letter on behalf of stakeholders on February 24, 2015. All items have been addressed with the exception of one minor discrepancy in the mapping layers that will be addressed through a Letter of Map Revision following the effective date of the new maps.
History of Past Town Council, Boards & Commissions, or Other Discussions
The Planning Commission and Town Council were briefed on the preliminary FIS and FIRM in February, 2015 during the 90-day appeal period.
On December 9, 2015, the Utilities Commission unanimously recommended Council approve the ordinance.
Discussion
The Town enforces the local floodplain administration program through the authority established in Title 18 of the Castle Rock Municipal Code last adopted in 2013. The FIS and FIRM establish the jurisdictional floodplain boundaries and elevations enforced through the local floodplain ordinance. The 2016 FIS and FIRM reflect revised flood hazard determinations within Douglas County, Colorado and incorporated areas of the Town of Castle Rock. These flood hazard determinations may include the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway.
Over the past several years, staff has presented various watershed master plans to Council for adoption in an effort to accurately identify flood risks, manage flood risks locally and establish priorities for stormwater and flood control projects. These studies consider current ground topography, existing and approved future land-use, and known problem areas to develop new floodplain hydrology and riverine hydraulic modeling. These studies provide a more accurate and current representation of flood hazards in the Town of Castle Rock. Prior to these studies, the regulatory floodplain in many areas throughout residential neighborhoods and commercial districts was defined by an approximate boundary with no BFEs, represented as approximate Zone A on the FIRM Panels published by FEMA. As a result, several properties were faced with mandatory flood insurance requirements due to broad and approximate floodplain boundaries. FEMA has incorporated these studies, along with various other localized projects, into what will be the updated FIS and FIRM. Therefore, the updates will formally recognize the Town’s studies at the federal regulatory level but will not substantively change the way the Town manages development plan approvals.
The Town is a participant in the NFIP, which qualifies property owners within the Town for flood insurance. In order to remain an eligible participating community, the Town must adopt the revised FIS and FIRM prior to the effective date of March 16, 2016. The Town encourages property owners to take advantage of flood insurance, especially if the property is adjacent to a floodplain. In cases where the structure is located within the 100-year floodplain and there is a mortgage on the property, the owners are subject to mandatory flood insurance. Even if property is outside a flood zone, flooding is an inherent risk. Common insurance policies, including homeowner’s insurance policies, do not cover damages due to flooding. A separate flood insurance policy is needed to cover damages from flooding.
Financial Impact
Collectively, this action will result in less overall cost to customers for flood insurance coverage. Seventy properties have been removed from the floodplain as a result of the revised mapping. This reduces the total number of properties that may be subject to mandatory flood insurance in the highest premium bracket. Customers who choose to purchase voluntary flood insurance when in a low to moderate risk zone pay a lower premium, or preferred risk rate. Eight properties have been added to the 100-year floodplain as a result of the revised mapping. In not every case will these properties be faced with mandatory flood insurance; however, those who do would pay the high risk rate commensurate with the higher flood risk. Generally, this would only apply when it has been determined that the insurable structure is within the floodplain. It is important to note that flooding is a real risk that property owners need to be aware of to make informed decisions to protect their property and investments.
Staff Recommendation
Staff recommends approval of an Ordinance amending Sections 18.06.010 and 18.08.020 of the Castle Rock Municipal Code to add a new definition for Shaded Zone X, and adopting by reference the March 16, 2016 Flood Insurance Study (FIS) and accompanying Flood Insurance Rate Maps (FIRM).
Proposed Motion
I move to approve the Ordinance amending Sections 18.06.010 and 18.08.020 of the Castle Rock Municipal Code to add a new definition for Shaded Zone X and adopting by reference the March 16, 2016 Flood Insurance Study (FIS) and accompanying Flood Insurance Rate Maps (FIRM).
Attachments
Attachment A: Ordinance - Second Reading
Attachment B: Flood Insurance Study (FIS) Reports
Attachment C: Flood Insurance Rate Maps (FIRM)