Point Beach Gets No FEMA Funds So Far

So far, FEMA has paid nothing in reimbursement to Point Pleasant Beach for the millions it's paid to clean up and rebuild after Sandy.

And the town is getting no explanation.

"Only that it takes time," said Point Beach Business Administrator Chris Riehl wearily, after Tuesday night's council meeting. "It's frustrating because we have to keep borrowing money to pay for Sandy expenses."

Point Beach council voted unanimously at its meeting at Borough Hall on Tuesday night to borrow about $8 million in bond anticipation notes to cover Sandy-related expenses because they have not been reimbursed by FEMA (Federal Emergency Management Agency).

Council member Bill Mayer, chairman of the finance committee, noted that the double whammy of getting nothing from FEMA and having to borrow money is not good news for the municipal budget that needs to be finalized soon.

"My number one concern is cash flow," Mayer said on Tuesday night.

"When will we start getting FEMA money in on a cash flow basis?" asked resident Ben DiSpoto.

"They had said about eight to ten weeks," replied Riehl. "They said we're in the same boat as about 20 other towns."   

On Thursday, Christopher McKniff a FEMA spokesperson, was asked when FEMA might start reimbursing the town and he replied in an email:

"It would be very difficult to say. Keep in mind, once FEMA obligates the funds they go to the state, and I am not sure what their process is for then reimbursing the municipalities. It is also important to note that FEMA is very cognizant of the financial stress that the storm has put these municipalities under and we are attempting to turn around funds...as quick as possible."

McKniff also included in the email that, according to FEMA's records so far, Point Beach, on March 14, requested reimbursement for nearly $2.9 million for the cost to rebuild long stretches of Sandy-torn boardwalk and, on April 5, requested reimbursement for nearly $4 million in debris removal.

Both requests are pending as "eligibility review in progress," the email says.

"...FEMA continues to work with the applicant and the state to identify additional eligible costs to be reimbursed through FEMA’s Public Assistance Program," McKniff wrote.

"There are many factors that affect the duration of the review process required prior to the final award of funds to the grantee. Each PW (project worksheet) is unique and contains project-specific considerations that impact the obligation timeline," the emails says.

"Examples of project-specific considerations are as follows: PWs may require environmental/historic preservation consultation with other federal/state permitting agencies; PWs containing mitigation proposals must be reviewed for technical feasibility and cost effectiveness; and PWs with insurance considerations require review for insurance settlements and obtain and maintain requirements."

Mayor Vincent Barrella said the town, which has more recently also submitted a "project worksheet" to be reimbursed for sand sifting, has been expecting partial reimbursement for all requests made so far.

"We're eligible for 75 percent reimbursement of the cost of debris removal, for example," he said. "It was my understanding that as soon as we make the request for the reimbursement, we would get 50 percent of the 75 percent, but that hasn't happened.

"I don't understand why it's taking so long," he said, adding he intends to call Congressman Chris Smith's office today to get support and hopefully get answers.

The lag in payments is despite that FEMA officials have been in frequent contact with Riehl, Barrella and other local officials, in face-to-face meetings, on the phone and via email.

Patch sent an email on Wednesday to Amy Lynn, a consultant with The Louis Berger Group, Inc., a global consulting firm, who is contracted to help the town prepare FEMA worksheets and applications to receive reimbursement. Shortly after Sandy, council voted unanimously to hire Louis Berger, which boasts FEMA as one of its largest clients. Lynn did not respond to the email.

Requests for reimbursement from Point Beach are just a small piece of reimbursement requests from towns across the state. The total federal share obligated for public assistance projects to date in the state is $276 million, McKniff said.

Ready for Summer, But Feeling the FEMA Pinch

The town is feeling the lack of funds from FEMA since it's been racking up bills for everything from cleaning up the streets in Sandy's immediate aftermath, to renovating the boardwalk, which is mostly done, to cleaning up and repaving the Silver Lake parking lot, which will be striped by the weekend, and many other tasks throughout the town. Then there are all the employee hours spent on Sandy work that should be reimbursed.

Point Beach has been scrambling to get ready for summer and have tourist attractions up and running by Memorial Day, if not earlier.

By today, about 4,000 feet of the estimated 5,280 foot (or one mile) boardwalk will be open, with only the north and south end still to be rebuilt and re-opened as part of the overall project to be finished by Memorial Day weekend, Barrella said. (A separate section of the middle of the boardwalk will be done after the summer.)

The downtown businesses opened within four to six weeks after Sandy struck. With the possible exception of a few restaurants on Broadway and the Manasquan Inlet, all restaurants are open, including Farrell's Stout and Steak, on Broadway, and Red's Lobster Pot, Inlet Drive, which opened on April 17.

Bait and tackle shops, including Alex's Inlet Bait and Tackle, fronting on the inlet, and Fishermen's Supply, 69 Channel Dr., are open.

One of the few popular spots for locals and tourists alike that will not be open is Surf Taco, which had leased town-owned space at the former Risden's bathhouse building on New Jersey Avenue and the Boardwalk last summer. The damage wrought by Sandy was too much for the clean-up and rebuilding process to be ready by summer's start, although discussions and planning are in the works.