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HomeMy WebLinkAbout1998-08-03 City Council (20)City of Palo Alto C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE: SUBJECT: AUGUST 3, 1998 CMR: 331:98 STATUS REPORT ON COSTS INCURRED AS A RESULT OF THE WINTER 1998 STORMS AND STATUS OF CLAIM FOR REIMBURSEMENT OF COSTS REPORT IN BRIEF This is an information report and no Council action is required. On February 2-3, 1998, a major storm hit Palo Alto, resulting in an unprecedented level of flooding. To date, the City has incurred $2.1 million in flood-related expenditures, including emergency response, damage to public property, storm-related assistance provided to the community, and emergency protective measures. The severity of the storm prompted a Presidential Declaration of Emergency. This allowed the City to file a claim with the Federal Emergency Management Agency to seek reimbursement for the costs incurred and damages sustained:~ The City filed its claim in February 1998, and staff estimates that 58 percent, or $1.2 million of the flood-related expenditures, are eligible for reimbursement. This report outlines the overall costs incurred by the City as a result of the February 1998 and provides information regarding the status of the City’s claim for Federal disaster assistance. CMR:331:98 Page 1 of 5 BACKGROUND The City devoted significant resources towards responding to the flooding emergency that occurred on February 2 and 3, 1998, to the subsequent clean-up, and to the protective measures undertaken during and after the emergency. The February 1998 winter storms resulted in damage to City facilities and property, including public buildings, parks, open space, recreational facilities, roads, bridges, trails and City vehicles. In late February 1998, the City filed a claim with the State Office of Emergency Operations (OES) and the Federal Emergency Management Agency (FEMA) to seek reimbursement for the damages sustained and for the costs incurred responding to the storms. This claim is currently being processed by OES and FEMA. DISCUSSION The costs related to the 1998 storm fall into five distinct categories: emergency response costs; costs to repair damage to City facilities and property; costs for storm-related services provided to the community; costs to .implement emergency protective measures, and, emergency-related administrative costs. Within most of these categories, there are certain costs that are eligible for reimbursement from OES and FEMA. Based on feedback from FEMA, staff has developed an estimate of the costs eligible for reimbursement. A table summarizing this information is provided below: Emergency Response Damage to City Facilities and Property’ Actual Costs OES/FEMA Reimbursable Costs $410,0000 $410,000 100.0 Percent Eligible for Reimbursement $1,015,000 $650,000 64.0 Storm-Related Services $260,000 $163,000 62.7 Emergency Protective Measures $438,000 0 0 Administrative Costs $25,000 23,000 92.0 Total $2,148,000 $1,246,000 58.0 CMR:331:98 Page 2 of 5 As discussed in CMR:232:98, "February 2-3, 1998 Flood Post-Incident Critique," the emergency response costs included: responding to emergency calls; patrolling neighbor- hoods and providing evacuation notification and assistance; establishing shelter; maintaining road safety; coordinating with other jurisdictions; and providing public information. In addition, in the days, weeks and months following the flood, the City provided a range of assistance to Palo Alto residents and the community-at-large. Public Works sent clean-up. crews into neighborhoods to clear roadways and sidewalks, haul away mud and debris from flooded areas, and remove observable obstructions in creeks. The Public Works Department also assessed road conditions and identified areas needing emergency repairs. The City’s Building Inspection Division assessed homes for flood damage. It is important to note that the emergency response category only includes costs for employees on overtime duty, as regular duty costs are not eligible for reimbursement under FEMA guidelines. The storm was responsible for significant damage to City facilities and property. The damage included creek embankments, washed out trails, damaged drainage culverts, bridges, and extensive erosion to two City roadways. In addition, there was damage to police patrol vehicles, basements of several community facilities and to the materials stored in the basements; and equipment at the Golf Course that was destroyed. While some of these problems, were repaired immediately, repairs to open space areas and City basement facilities are still underway and actual costs are yet to be determined. During and after the storms, the City provided a number of storm-related services to the community. As described in CMR:232:98, these services included the provision of debris boxes; reimbursement for rental of debris boxes, the pumping of basements and crawl spaces of 203 homes; the provision of sand and sandbags; temporary suspension of landfill fees, temporary suspension of building permit fees for storm-related repairs, and credits on utility bills to residents who had increased use of electricity, gas, and water due to flood-related cleanup and repair. The City also hired a consultant to assist residents with the Federal disaster assistance claim process. In the emergency protective measures category, there are a number of initiatives that have already been undertaken to assist the City in future emergencies. The installation of creek monitoring devices at San Francisquito, Madadero and Adobe Creeks was completed in April 1998. A weather monitoring system was installed at Foothills Park in May 1998. In June 1998, Council approved the provision of an emergency notification system, as well as upgrades to the City’s Emergency Operations Center. This category does not include costs for improvements to the San Francisquito Creek, which may be accomplished through a potential joint effort with affected jurisdictions, as they are not known at this time. The administrative cost category primarily relates to a contract for a consultant to assist the City with preparing its FEMA claim. CMR:331:98 Page 3 of 5 While the majority of the costs incurred were attributed to the General Fund, the City also incurred costs in the Utility Funds. There was damage to facilities such as an access road maintained by the Water Fund which cost $60,000 to repair, and problems with the Regional Water Quality Control Plant, due to the excessive amount of material in the sewer system during the height of the emergency, costing $50,000. The actual costs detailed above include both Utility and General Fund costs. Overall, the actual costs incurred as a result of the storm are approximately $2.1 million (includes actual costs and contractual commitments). In addition to the costs incurred, there are costs related to damage that remains to be addressed that cannot be fully estimated at this time. This includes the damage to the basements at Lucie Stem, the Children’s Theatre, Main Library and Cultural Center, with repair costs that could reach $500,000 (it is likely that a large portion of the costs to repair the basement damage will not be eligible for reimbursement from FEMA because some of the damage was preexisting). In Foothills Park, there has been significant erosion to the creek banks. A rough estimate of the cost for these repairs is $185,000. In addition, it is possible that there is damage to roadways that, while not immediately evident, may appear in the future or may result in a shorter useful life for certain roads. Finally, as Palo Alto works with Menlo Park and other associated jurisdictions to develop a long-term plan for San Francisquito Creek, there could be a substantial.outlay of resources. As needed repairs are further defined and cost information is available, staff will return to Council for direction regarding how to proceed with the remaining repairs. As part of the 1997-98 Midyear Financial Report, the Council approved an allocation of $1.3 million from the Reserve for Emergencies to support these storm-related costs. In June 1998,. Council approved $.4 million from the Reserve for Emergencies to fund the emergency notification system.and upgrades to the City’s Emergency Operations Center (EOC). City departments absorbed the remaining $.4 million in emergency-related costs during 1997-98. Additional appropriations from the Reserve for Emergencies will likely be needed during 1998-99 to allow staff to address the remaining storm-related repairs. RESOURCE IMPACT Of the $2.1 million in costs resulting from the 1998 winter storms, staff anticipates that approximately 58 percent or $1.2 million will be eligible for reimbursement from FEMA and OES. At this point in time, the majority of the City’s claim is in stage two of a three-stage FEMA review process. After completing all three stages of review, the City will be able to submit requests for reimbursement to FEMA. Staff anticipates this will occur in the first half of 1998-99. As reimbursement is received, it will be utilized to replenish the Reserve for Emergencies. CMR:331:98 Page 4 of 5 PREPARED BY:Gigi Harrington, Budget Manager Robin Spencer, Staff Accountant APPROVED BY: CARL YEATS ~ Director, Administrative Services CITY MANAGER APPROVAL: cc:n/a HARRISON Assistant City Manager CMR:331:98 Page 5 of 5