Briefing to City Council

Transcription

1 Briefing to City Council

2 Summary Outline Severe Repetitive Loss Primer Program Review Relationship with VDEM and FEMA Region 3 City of Virginia Beach Approach Successful Application Process Timeline of accomplishments FEMA interpretation of SRL Grant and Restrictions Basis for re-solicitation of Bids on homeowners' behalf. Recommendations going forward Organization Basis for Re-solicitation of Bids 2

3 FEMA Severe Repetitive Loss Program Review Authorized in 2004 Flood Insurance Reform Act Mitigate the effects of repetitive flooding on SRL Properties Reduce the total number of SRL properties insured by NFIP Save Federal tax dollars through demonstration of an acceptable Benefit-cost ratio and the greatest savings to the National Flood Insurance Fund 3

4 FEMA Severe Repetitive Loss Program Review Virginia Beach Goal: successfully compete for FEMA grant funding with a list of properties which are feasible elevation projects and contract under Virginia Procurement regulations, for elevation of privately owned properties. (FEMA required) What is an SRL Property? Property insured by the National Flood Insurance Program Property which has had claim payments from the NFIP which are: Severe: at least $5,000 per claim Repetitive: at least 4 separate claims within a ten year period totaling at least $20,000 SRL Properties are identified by the National Flood Insurance Program and the lists are provided to Virginia Department of Emergency Management. Properties are evaluated for the benefits of elevation above the Base Flood Elevation (BFE) 4

5 FEMA Severe Repetitive Loss FEMA SRL Grant program provides: Ninety percent federal cost share Ten percent local share borne by homeowners City responsible for ten percent of the pre and post award grant administration $20 K Program Review 5

6 Federal Grant Programs Pre-Disaster Flood Mitigation Assistance (FMA) Planning Grants to prepare Flood Mitigation Plans Project Grants to implement measures to reduce flood losses, such as elevation, acquisition, or relocation of NFIP-insured structures Management Cost Grants for the State to help administer the FMA program and activities Post-Disaster Hazard Mitigation Grant Program (HMGP) Provides grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration FEMA funds 75% 25% Non-Federal Cost Share

7 FEMA Region 3 Rules FEMA 3 Administration Criteria has proven unique and challenging in the Administration of the Grant FEMA 3 required that design be complete, reviewed and approved by both VDEM and FEMA Region 3 with all scoping issues (very detailed) resolved, prior to advertising. This is a new requirement unique to Region 3 which occurred just prior to approval of Virginia Beach application Generally: Costs attributable to house elevation, at building code minimums, are eligible. All else is ineligible 7

8 FEMA Region 3 Rules Requirement for City to Contract on behalf of Homeowners Other regions allow homeowners to engage pre-qualified contractors while the municipality awards contract, manages eligibility requirements and issues final payments for eligible costs. FEMA 3 to review bids prior to award Comparison to original cost estimate in the grant application Evaluate eligible and ineligible costs Review of other items which could affect project implementation and contribute to cost overruns City bears the burden of proving to FEMA 3 that any suspected ineligible costs are not paid from Grant funding The City of Virginia Beach is the first municipality starting this process in the Commonwealth. Eligible Costs vs. Ineligible Costs 8

9 FEMA Region 3 Rules Eligible SRL FEMA costs Basic elevation method at the lowest cost alternative Elevation of existing deck, porch or stairs Construction of new access stairs/railings at minimum code requirements Reasonable living expenses Erosion/sediment control and grading and reseeding Repair of driveways damaged by elevation process Reconnection of Utilities 9

10 FEMA Region 3 Rules Ineligible SRL FEMA costs Those costs associated with additions Repairs rehabilitation or deferred maintenance necessary to elevate the property Landscaping Exterior finish on the exposed foundation Chimneys and fireplaces to be considered on cases by case 10

11 Elevated Properties FEMA eligible (after) 11

12 Elevated Properties (before) 12

13 Elevated Properties (after) 13

14 Elevated Properties (before) 14

15 Elevated Properties (after) 15

16 Elevated Properties (before) 16

17 Elevated Properties (after) 17

18 Our Approach, Grant Approval January 2010 Beck Disaster Recovery(SAIC) was retained Evaluate VDEM listed SRL properties. Evaluate other properties for which owners came forward requesting consideration. Develop application package for submission to FEMA. Administer Grant when awarded. City included source data from: VDEM validated SRL properties listing Properties for which letters of Substantial Damage had been issued by the City City collected additional data from: Online survey that allowed homeowners to provide contact information, address and insurance claim history. Many non SRL properties were evaluated Posted press releases to City homepage and various media outlets to direct homeowners to survey and BDR staff. Resulted in a list of 80 properties to be evaluated 28 of these properties originally recognized by FEMA as SRLs 52 non SRL properties to perform due diligence on behalf of the homewoners Final approval in November 2010 for nine properties. 18

19 Current Grant 9 total Greatest Savings to the Fund Properties, eligible and interested homeowners Project totals $1,721, and saves $1,755, (1.13 GSTF) Includes costs for : Pre-Award and Application Elevation Contract Costs Elevation Engineering and Inspections Administration of the Grant documentation 19

20 Our Approach Administration of Grant Follow Virginia Procurement Law in soliciting for elevation contractors Comply with VDEM and FEMA direction to prepare designs prior to Invitation For Bid. Obtain VDEM and FEMA design approval throughout design process, revising design as required Pre Qualify Contractors Advertise Invitation for Bid with design and specifications Bidders to identify cost items for determination of eligible/ineligible costs for FEMA scrutiny. Resolve Cost effective alternatives to FEMA s satisfaction/approval Focus to protect homeowners and provide a turnkey approach to eligible and ineligible activities 20

21 Post-Grant Accomplishment Timeline SAIC was retained January 2010 Application submitted to VDEM October 10, 2010 Application submitted by VDEM to FEMA December 30, 2010 Grant Agreement VDEM/City October 11, 2011 Grant Admin Kick Off meeting November 2, % Drawings went to VDEM/FEMA* August/Sept 2012 Sandy October 2012 Inspections Completed December % Drawings went to VDEM/FEMA* February 2013 VDEM/FEMA/CITY* March- May 2013 *Back and Forth over Chimneys, Decks, Garages, Cost effective alternatives 21

22 Severe Repetitive Loss Bid Timeline Out for Bid June 2013 Bids Due August 2013 Requests for Information from bidder June-Aug 2013 Elevation Contractors unfamiliar with new design requirement Previous experience in bidding based upon site inspection and Contractor determined means and methods Bid Results August 6, 2013 One of two prequalified contractors withdraws Single bid rejected as non-responsive and above funds available. Team decides to re-solicit with revised acquisition strategy, more competition August 8,

23 Re-solicit Bids Strategy and Timeline No pre-qualification and increased competition Require 5 year limited warranty Awards will be limited to the Contractor s available bonding capacity City award elevation contract based upon FEMA eligible elevation costs only Fulfill City s role as Grant Sub-Applicant Segregate costs for FEMA 3 review Homeowners to contract separately, unconstrained by Virginia procurement regulations Develop detailed agreement between City, Homeowner and Contractor delineating incremental costs responsibilities (eligible vs ineligible). 23

24 Re-solicit Bids Strategy and Targeted Timeline Timeline Sept 13 - Simplified scope of work to accomplish FEMA eligible activities September 27 Advertise separate contracts for each property October 8 Conduct Pre-bid meeting with prospective Contractors October 17 Bid Opening 24

25 Staff Resourcing for FEMA Grant Programs To date, No dedicated Staff FTE to Flood Mitigation Assistance (FMA) grant program management Contract Support with SAIC was pre-financed from PW Stormwater fees. Other regional Cities have a full time Mitigation Planners in Emergency Management to administer FMA grants. Unable to take advantage of all FMA grants which may become available to localities. 25

26 Functional Organization for the FMA Program in Virginia Beach Fire Department Emergency Management Mark Marchbank Emergency Management Emergency Planner Erin Sutton Emergency Management Mitigation Grant Project Manager New Position Department of Finance Grant Administration Department of Purchasing Contractual Support Hazard Mitigation Administrative Support Annual Services Contractual Support Currently SAIC Department of Planning Permits and Inspections ICC, Inspections and Permitting Department of Public Works NFIP, Flood Plain Management Coordination and Technical Support

27 Severe Repetitive Loss Discussion 27

28 Increased Cost of Construction ICC funds are available in addition to any National Flood Insurance Program damage claims reimbursements ICC funds - up to $30,000 to elevate/repair structure Property is located in a Special Flood Hazard Zone Owner is a NFIP Flood Insurance Policy holder Flood Damage designated as Substantial Damage DAMAGE is > 50% of MARKET Value of Residence or qualifies as a Repetitive Loss (2 filed claims in 10 years each > 25% market value) Owner submits a written request to City along with Proof of Loss from Insurance Company or Contractor s Estimate of Repair Costs Elevation Certificate City investigates and if qualified prepares standardized letter 24 properties applied and 21 properties approved Owner responsible to submit claim to FEMA/NFIP 28