Letter to William Craig Fugate, Administrator of Federal Emergency Management Agency - Federal Reimbursement

Letter

Today, U.S. Senator Charles E. Schumer once again called for the Village of Wellsburg to get their deserved reimbursement for the replacement of their fire station, by urging FEMA to reconsider its decision to impose as much as $340,000 in excess deductions from the project costs eligible for reimbursement. Schumer explained that, while FEMA is required to deduct proceeds from insurance policies from their reimbursement, in this case FEMA made the maximum flood insurance deduction of $500,000. This was despite the fact that the Village received less than $200,000 in flood insurance proceeds after the storm. Because FEMA typically reimburses 75% of the project costs not covered by insurance, the excessive deduction of up to $340,000 would result in the Village being required to cover up to $255,000 extra. This could cost taxpayers thousands.

"I have long fought for the replacement of the Wellsburg Fire Department because it is such an essential service to the community, and we can no longer tolerate delay in rebuilding this facility out of harm's way," said Schumer. "FEMA should swiftly reverse course and reconsider its recent decision to impose as much as $340,000 in extra deductions from the project, which could ultimately mean thousands of dollars more for taxpayers to cover the difference. After almost two years since the flooding, FEMA needs to get this right - this is an issue of public safety."

"If the Village had to make up $340,000 the average taxpayer would pay $1,500 more. The tax implication of covering this gap in a small village like Wellsburg is astronomical. This, coupled with the constant delays in obligation of funding, makes it very difficult for us determine where we stand with our project," said Village of Wellsburg Mayor Malcolm Coles. "Because of the constant support and backing from the Senator, I believe we are going to get to get through this maze and reach the finish line. Without Senator Schumer, I don't know where we would be."

According to FEMA regulations regarding the National Flood Insurance Program (NFIP), FEMA may deduct up to $500,000 from a Project Worksheet (PW) if a location did not have adequate flood insurance at the time the damages occurred. FEMA deducted the full $500,000 even though the Wellsburg Fire Dept. did in fact have flood insurance at the time of the flooding. FEMA should have deducted only those proceeds Wellsburg actually received under its insurance policy. Therefore, Schumer is asking FEMA to redo the PW and return up to $340,000 to the amount for which the Village is entitled to reimbursement.

Schumer highlighted that Wellsburg has already persevered through numerous delays and setbacks as they sought to coordinate with FEMA in replacing this repeatedly-flooded fire station.

Following Tropical Storm Lee in September of 2011, a FEMA team spent three months working hand-in-glove with Chemung County and the Village of Wellsburg in order to assess damage and repair costs, which resulted in the conclusion that repairs exceeded the 50 percent replacement rule needed to build a new facility. Following the original FEMA team's damage assessment, a Building Assessment Team (BAT) was assigned and investigated the damage at the fire station for only three hours before reaching its conclusion. The BAT team reduced the damage estimates to 49.8 percent, just under the 50 percent replacement threshold. Because of the reduction made by the BAT team the fire station at Wellsburg was deemed no longer eligible for federal assistance to rebuild and relocate to a safe location . In the meeting, Schumer urged FEMA Administrator Fugate to prioritize Chemung County's project and use the original FEMA team's preliminary Project Worksheet, which was based on greater research and diligence on the part of FEMA and would allow the fire station to relocate to a safe location.

Tropical Storm Lee wreaked havoc on the Village of Wellsburg causing severe damage to the fire station. Schumer stated that FEMA should be doing more, not less, to prioritize recovery efforts in Chemung County. After the flood, the fire station lost important equipment and the fire fighter training room was destroyed.

A copy of Schumer's letter to FEMA appears below:

Dear Administrator Fugate:

I write today to call your attention to an urgent issue facing the Wellsburg Fire Department, in Chemung County, New York. The Fire Department's facilities sustained significant damage in Tropical Storm Lee, and it was ultimately determined that the fire house should be relocated to protect against the risk of future flooding that would again incapacitate the department.

On January 30th my staff and the Village were advised that the relocation project would be capped at $2.3 million for the replacement/relocation of the Wellsburg Fire Station. Yet on May 29th, the Village of Wellsburg was awarded only $1,406,433.00 in federal funding to the Village of Wellsburg, for repairs to their Fire Hall, well below what they were expecting based on a 75% federal cost-share for a $2.3 million project. It came to our attention that this was apparently due to FEMA incorrectly reducing amounts eligible for disaster assistance by $500,000, which is the maximum insurance proceeds which would have been covered by a standard flood insurance policy. This $500,000 deduction is applied when applicants do not have flood insurance, or were required to have maximum insurance coverage but failed to main proper insurance. The Village of Wellsburg had flood insurance at the time of the disaster and has provided detailed documentation regarding its coverage to FEMA representatives. Accordingly, I respectfully request that FEMA reissue the Village's Project Worksheet, reflecting deductions only for amounts actually received under insurance policies for structural damages.

This entire process has, quite frankly, taken too long. This is a very small town that has gone without an adequate fire station and primary response station since September 2011, placing my constituents in unnecessary danger. For years, they have been left with a broken fire station in a special flood hazard area. Making matters worse, the shortfall the Village will face if not adequately reimbursed for the difference between the statutory reduction and what their insurance actually covered will put it in an extremely difficult financial position. In a Village the size of Wellsburg, and represent a tremendous cost to taxpayers. In a town the size of Wellsburg, if the local government was faced with making up the shortfall the cost would amount to over $1,000 per taxpayer.

I request your assistance to ensure that there are no further delays and that this critical facility be adequately funded by clarifying this administrative error and reimbursing the Village what it is owed. This matter is extremely important to my constituents and the community as a whole for public safety. This needs to be resolved, so work may begin at the break of weather. Please feel free to contact me with any questions. Thank you for the work you do in helping those affected by natural disasters.

Sincerely,

Charles E. Schumer

U.S. Senator

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