Disaster Recovery Finance Issues: Hurricane Matthew Aftermath Norma Houston 2017 NCGFOA Summer Conference July 17, 2017

Fall 2016 Disasters

Hurricane Matthew By The Numbers Individual Assistance Total Applications Approved 28,982 Total IA Dollars Approved $97.6M Total Housing Assistance Dollars Approved $68.1M Total Other Needs Dollars Approved $29.5M Public Assistance Total PA Grants Dollars Obligated $104.8M Emergency Work Dollars Obligated $54.2M Source: https://www.fema.gov/disaster/4285 as of 7/6/17

2017 Hurricane Outlook https://www.climate.gov/news-features/understanding-climate/noaa-releases-2017-hurricane-outlook-atlantic-ocean

Major Recovery Challenges Housing Infrastructure Business Local Government Unmet Needs Hazard Mitigation

Fiscal Issues

FEMA Public Assistance Costs must be: Direct result of declared disaster Within designated disaster area Legal responsibility of applicant Source: https://emilms.fema.gov/IS634/PAsummary.htm

Categories of Reimbursable Costs Emergency Work Permanent Work Debris Removal (Category A) Emergency Protective Measures (Category B): EOC operations Search & Rescue / Security in disaster area Provisions for population (food, water, etc.) Temporary medical facilities / medical evacuation Shelters / Mass care Generators Emergency repairs / reestablishing access Roads & Bridges (Category C) Water Control Systems (Category D) Public Buildings (Category E) Pubic Utilities (Category F) Other public facilities (Category G)

Common Reimbursement Problems (44 CFR Part 13; 22 CFR Chapter II, Subpart D) Personnel – overtime compensation Contracting – competitive bidding required Debris removal (“non-system roads”) Private property exclusion “Lack of legal responsibility” exclusion Inadequate/no documentation No local state of emergency declaration

Procurement Issues Must have written local procurement policies that include conflicts of interest and gift prohibitions Must comply with both state AND federal rules, whichever is more restrictive (federal Uniform Rules, 22 CFR Chapter II, Subpart D) Uniform Rules require competitive solicitation for ALL contracts costing $3,500 or more Uniform Rules require minority outreach for ALL contracts costing $3,500 or more Most state bidding exceptions aren’t allowed under federal rules Contracts must include federal boilerplate provisions

Procurement Methods – NC Law Formal Bidding (G.S. 143-129) Formal Bidding (G.S. 143-129) Qualifications-Based Selection (G.S. 143-64.31) No Method Required $500,000 Informal Bidding (G.S. 143-131) Cost of contract $90,000 Informal Bidding (G.S. 143-131) $30,000 No Method No Method $0 Purchase* Construction Mini-Brooks Act Everything else* Type of contract * Optional: May use a request for proposals for service contracts or information technology purchases or services.

Procurement Methods – Federal Regs Competitive Proposals: Qualifications-Based Procurement Sealed Bidding Competitive Proposals Sealed Bidding* Competitive Proposals Simplified Acquisition Threshold (Currently $150,000) Cost of contract Small Purchase Small Purchase Small Purchase Micro- Purchase Threshold (Currently $3,500) Micro Purchase Micro Purchase Micro Purchase $0 Construction** Architectural/ Engineering Services Supplies or Services** Type of contract For any supply or service, may use non-competitive proposals if procurement meets one of four exceptions * FEMA Preferred method for construction ** May use competitive proposals when sealed bidding not appropriate

Debris Issues Private Property Non-System Roads

Finance Questions Cash Donations to Other Local Governments Assistance to Impacted Businesses

What Are Your Issues?

Practical Tips

EM Legal Preplanning Checklist Become NIMS compliant Preposition contracts (such as debris removal) Execute mutual aid & interlocal agreements Compile & back-up relevant documents Develop templates for declarations, contracts, etc. Check local ordinances for needed updates Be familiar with local, state, and federal laws Involve local attorney Review local plan / conduct exercises

Stay Safe! Norma Houston nhouston@sog.unc.edu