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HomeMy WebLinkAbout1999-06-15 City CouncilCity of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:JUNE 15, 1999 ,CMR:271:99 SUBJECT:RELEASE OF FLOOD DAMAGE ASSESSMENT REPORT BY THE U.S. ARMY CORPS OF ENGINEERS ANDTHE SANTA CLARA VALLEY WATER DISTRICT This is an information report and no Council action is required. BACKGROUND In February 1998, the flooding of San Francisquito Creek caused extensive damage to residences, businesses, and public infrastructure in the communities of Palo Alto, Menlo Park, East Palo Alto, and Stanford University. In the aftermath of the flood, Santa Clara Valley Water District (District) representatives sought assistance from the U.S. Army Corps of Engineers (Corps) in assessing the magnitude of the economic damages inflicted on local communities by the disaster. The Corps agreed to work with the District on a comprehensive investigation to identify, document, and analyze the economic impacts of the flooding on residents, businesses, organizations, and municipalities. Information was gathered using various data collection methods, including face-to-face interviews, phone interviews, and a mail-in survey. Staff contributed to the investigation by supplying information on the City’s flood-related expenses and providing the names of key neighborhood leaders in flood-impacted areas. DISCUSSION The District and the Corps recently released the findings of their investigation, in a report entitled After the Flood Waters Receded: Assessing the Economic Impacts of San Francisquito Creek’s February 1998 Flooding. The most significant finding of the investigation is that the flood-related damages were far greater than originally estimated. The report concludes that the total economic impact of the February 1998 San Francisquito Creek flood was approximately $28.1 million. The vast majority of the economic impacts ($24.9 million) were sustained by Palo Alto residents, businesses, organizations, and the City government. The executive summary of the flood damage assessment report is attached for reference. Full copies of the report have been distributed to Council members under separate cover and are available for CMR:271:99 Page 1 of 2 public review at the Palo Alto Main Library and the Development Center. The report is also available on-line at the District’s website: www. scvwd.dst.ca.us. ATTACHMENTS Attachment A: Executive summary of flood damage assessment report PREPARED BY: DEPARTMENT HEAD: Joe Teresi, Senior Engineer GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: E~i~ILY HARRISON Assistant City Manager co:Kay Whitlock, Santa Clara Valley Water District Randy Talley, Santa Clara Valley Water District Pat Showalter, San Francisquito Creek CRMP Coordinator Carla Schneiderman, Crescent Park Neighborhood Association Kevin Fisher, Duveneck Neighborhood Association Raymond Hebert, St. Francis Neighborhood Association Warren Kallenbach, Community Center Neighbors Association Jim Newton, Downtown North Neighborhood Association Susan Frank, Palo Alto Chamber of Commerce Steve Blanton, Peninsula West Valley Realtors Association CMR:271:99 Page 2 of 2 ATTACHMENT A After the Flood Waters Receded: Assessing the Economic Impacts of San Francisquito Creek’s February 1998 Flooding Katherine Kao Cushing, Ph.D. March 1999 EXECUTIVE SUMMARY Late in the evening of February 2, 1998, in response to record rainfall, San Francisquito Creek breached its banks, inundating approximately 11,365 acres of land in the communities of Palo Alto,-East Palo Alto and Menlo Park. This flooding was the most severe on record for the creek. The purpose of this investigation was to identify and quantify the main economic impacts of the flooding on residents, businesses and organizations, and municipalities in these three cities. Data for this research was gathered by means of extensive phone and mail surveys, interviews, and document review. This study found that the total economic impact of the flooding, including both direct and indirect damages, was approximately $28 million. Residential damage, sustained primarily in Palo Alto, accounted for 91% of the total cost. Damage to municipalities and other assistance agencies accounted for 5% of the damages and businesses and organizations made up the remaining 4% of the total economic impact. Approximately 1,700 households in the three municipalities were adversely impacted by the flooding--l,155 in Palo Alto, 533 in East Palo Alto, and seven in Menlo Park. Total residential economic impact was over $25.5 million, with over $23.7 million worth of damage occurring in Palo Alto, $1.75 million in East Palo Alto, and $85,000 in Menlo Park. Most of the residential impact, 89% of the total, was direct damage, meaning damage caused by flood waters entering a residence. The remaining 11% of the cost was indirect, such as expenditures for temporary housing or loss of pay due to having to take time off work for post-flood clean up. In addition, the flooding caused over 134,000 hours of inconvenience to residents, and many residents were forced to live in temporary housing while their homes were being repaired. This investigation found that 62 active businesses and organizations were adversely affected by the flood event, with most of them concentrated in the East Palo Alto commercial district of Whiskey Gulch. Total business and organization damages were $1.1 million. East Palo Alto incurred 50% of these damages, Palo Alto 34%, and Stanford University 16%. In terms of significant non-economic impacts, the disaster caused 7,200 hours of inconvenience to business and organization staff. The costs to the cities of Palo Alto, East Palo Alto, and Menlo Park, along with other agencies involved in the flood response and recovery effort, amounted to over $1.4 million. The City of Palo Alto had the most expenditures (60% of total); Spending in both East Palo Alto and Menlo Park made up about 20% of the total each. The majority of these costs went towards emergency response- and recovery-related activities, such as debris removal and emergency protective measures. This study demonstrates that the economic impacts of flooding in a heavily populated urban area can be substantial. Even though the flood occurred in a small area of land and over a relatively short time period, the costs and inconveniences incurred by residents, businesses and municipalities were significant and will not soon be forgotten.