New Bern officials frustrated with FEMA reimbursement delays

Sun Journal (New Bern, NC)

Sep. 20--City of New Bern officials have expressed frustration with delays in the Federal Emergency Management Agency (FEMA) reimbursement process for damages incurred during Hurricane Florence, due partly to what they contend is the failure of some FEMA employees to properly interpret the agency's own rules.

More than a year after the storm flooded large parts of New Bern's downtown and riverfront neighborhoods, the City is still struggling to obtain proper reimbursement from FEMA, according to information provided during the New Bern Board of Aldermen's September 17 work session.

According to Joseph "J.R." Sabatelli, director of finance, to date the City of New Bern has incurred approximately $12.6 million in Hurricane Florence-related costs that have yet to be reimbursed. He said the costs cover items such as police and fire emergency services and supplies as well as contract labor for electric and water resources and debris removal.

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Sabatelli said additional costs going forward will include repairs to City Hall and the Stanley White Rec Center, the cleaning out of drainage ditches, and docks that need to be repaired.

"These are just an example of the costs that will still be incurred and will be potentially reimbursed through FEMA and other grant programs," he commented.

City Manager Mark Stephens estimated the additional costs would range from $24-$25 million.

Sabatelli said the City has received $1.9 million from multiple flood insurance policies, and is expecting to see approximately $3 million from insurance proceeds overall.

Corey Spaulding, project manager with Disaster Recovery Services, said two of the "highest-end" projects yet to be funded are the clearing of city ditches and a plan for the repair or replacement of Stanley White Rec Center.

According to Spaulding, FEMA officials have inspected 20 percent of the 80 miles of city drainage ditches and have estimated the entire project would cost $6 million to $7 million. Spaulding said he believed the true cost would run closer to $12 million. However, the project is currently in limbo due to FEMA's demand that the City inspect all of the 80 miles of ditches prior to funding approval, said Spaulding.

The City has the option to comply with FEMA's request and inspect all the ditches, which would take six months and require the City to pay for an engineering firm, Spaulding told the Board, which would offer no guarantee that FEMA would approve the funding.

Instead, he recommended setting up a meeting with a FEMA official "who has the ability to make the decision" and propose that the agency obligate $1.75 to start the project based on the ditches already viewed by FEMA inspectors. The funds could be used for startup costs to remove sediment and trees throughout the entire ditch system, he commented.

"If they agree to do that, that means they are agreeing in essence to the City's maintenance plan for the ditches...that would be one step forward versus going out and incurring millions of dollars in maintenance costs just to have them turn around and arbitrarily say 'You haven't demonstrated this was storm-related,'" said Spaulding.

Mayor Dana Outlaw said he agreed with Spaulding's assessment.

"All of this is for future resiliency and to make sure that the ditches that have flooded don't flood again," he remarked.

"It's crucial for our city and I think we ought to fight for it," said Stephens.

Turning to the Stanley White Rec Center project, Sabatelli said the building suffered damages that exceeded 50 percent of its value, which makes it eligible for FEMA reimbursement. He said the cost to repair the building up to current code standards would be $10.6 million.

In order to remain in compliance with the National Flood Insurance Program, the Stanley White Rec Center cannot simply be repaired at its current elevation, Sabatelli explained. To bring the building into compliance with flood insurance codes, the City can either tear it down and replace it with a new building, repair and elevate the existing building, or flood-proof the existing building by adding walls and flood gates around it.

Spaulding said the City's inspection of the building and other FEMA required steps had been submitted to the agency. Despite the City's efforts, he said there has been no answer from FEMA on the progress of the request.

According to Spaulding, he was told by a FEMA official that the agency's new plan for the rec center was to develop a scope of work and estimate of the flood damages that would then be turned in and processed.

Spaulding said any final plan for the rec center will have to address a number of floodplain regulations.He said he had "no idea" how to get FEMA to address the code compliance issues.

"This has been discussed exhaustively with the state; the only thing the city is asking FEMA to do is follow your own regulations...this is a level of frustration that is beyond belief," said Spaulding.

The Board of Aldermen authorized Stephens to set up a meeting with a FEMA Federal Coordinating Officer in conjunction with state and federal representatives about moving both the ditch cleaning and Stanley White Rec Center projects forward.

"I'm game to do anything, I just think we need to move and do something," said Alderman Bobby Aster.

"What we need is somebody who has authority to make a decision and has the know-how to read their own regulations and actually give us some direction so we can get some finality to these projects, because we don't feel like we're getting that now," said Stephens.

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