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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, SUPPORTING SENATE BILL 3411, THE DISASTER ASSISTANCE IMPROVEMENT ACT OF 2016, WHICH WILL CLARIFY FEMA’S DEOBLIGATIONS/CLAWBACKS; DIRECTING THE CITY CLERK TO TRANSMIT COPIES OF THIS RESOLUTION; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: N/A)
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(Staff Contact: Phyllis A. Korab)
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Summary Explanation/Background:
This Resolution supports Congressional efforts to amend the Stafford Act by streamlining the appeals process and changing the statute of limitations under which the Federal Emergency Management Agency (FEMA) can recover disaster assistance payments made to local governments.
Since around 2011, the Department of Homeland Security’s Office of Inspector General (OIG) has been auditing previously approved disaster recovery projects in an attempt to recapture or deobligate funds that it asserts should not have been awarded. Many of these audits are from the 2004 and 2005 storms and the moneys received have already been spent on recovery projects. These deobligations have run in the millions of dollars and have impacted the budgets of local governments across the State of Florida and elsewhere. Even though there is an appeals process, in many cases it has resulted in lengthy delays and denials. In many instances, the funds were spent as long as 10 or more years ago and neither the relevant documentation nor the appropriate local government staff remain to accurately appeal these audit findings. This situation has left local governments with no choice but to pay back moneys for recovery projects that, in some instances were previously identified, developed and determined eligible by FEMA staff.
In 2015, the City submitted a formal, detailed, nine page letter to the Florida Division of Emergency Management (FDEM) disagreeing with FEMA’s decision to de-obligate approximately $408,000.00 in Public Assistance (PA) funds related to two (2) Hurricane Wilma (2005) projects (Project #7050 - $297,000 and Project #1893 - $111,000 that were filed respectively on 12/19/15 and 2/11/16). No decision has been made as of yet on these two appeals by FEMA. Our Public Assistance (PA) grants had successful close-outs and audits with the State, FEMA and the Office of the Inspector General (OIG) so the City was shocked to learn FEMA deobligated these funds late in 2014 on the basis of 'anticipated insurance funds.' In addition to being de-obligated of these funds, the City also expended considerable amounts of staff (Finance Director, Controller, Risk Manager and Emergency Manager) time over the past several years to comply with FEMA requirements and interpretations that are very labor intensive and costly for municipalities. Our insurance companies as well as our stand-by recovery contractor were also heavily involved in assisting the City in dealing with FEMA’s requirements and interpretations. There were also direct costs involved for the creation of the dispute letter that our contractor assisted us in preparing. The City successfully appealed its Hurricane Katrina (2005) deobligation and this project storm file is closed with FEMA.
City Commission support of this Resolution is requested.
Origin of request for this action: City Manager's Office
Fiscal impact and source of funding: N/A