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<br />VERSION 1.0 1/12/95 <br /> <br />B-C PROGRAM: Level One Analysis <br /> <br />Total Value of <br />Lost Services <br /> <br />The magnitude of the Post-Disaster Continuity Premium depends on <br />how critical the services are in the post-disaster environment. <br />Emergency response services such as medical, fire, and police are <br />particularly important post-disaster and continuity premiums for such <br />services are generally high. Services which are only moderately <br />important post-disaster should have moderate premiums. Routine <br />services that can be delayed with little or no impact should not have <br />continuity premiums. <br /> <br />Continuity premiums of 50-100% of the normal daily costs of providing <br />services may be appropriate for services which are moderately <br />important in the post-disaster environment. Continuity premiums of <br />several times normal daily costs may be appropriate for emergency <br />response services. Continuity premiums of five or ten times the normal <br />daily costs may be appropriate for services which are critical to the <br />disaster response. <br /> <br />The Post-Disaster Continuity Premium, like all other inputs for the <br />benefit-cost analysis, must be reasonable and defensible for the <br />specific public/nonprofit service being valued. If the continuity premium <br />is unreasonable, this portion of the analysis will be invalid. <br /> <br />YELLOW Block (Result). The Total Value of Lost Services ($/day) <br />is calculated by summing the daily cost of providing services under <br />normal conditions and the Post-Disaster Continuity Premium. <br /> <br />Estimates for the value of lost public/nonprofit services for each flood <br />depth are based on the -daily cost of providing services and estimates of <br />Functional Downtime. Functional Downtime is the time period for <br />which public/nonprofit services are lost due to flood damage. Default <br />estimates of Functional Downtime are based on the building depth- <br />damage function. To view the default Functional Downtime estimates <br />choose Level Two Data I Functional Downtime from the Benefit-Cost <br />Program menu; or see page 8-14. <br /> <br />6-13 <br />