[StBernard] Return to St. Bernard Decision Tree

[Westley Annis]

Return to St.Bernard Decision Tree

The following decision matrix is designed to highlight a few of the return
issues for many people.  While there is no one plan that will satisfy
everyone, I encourage people to identify what are the areas in their
decision making that are DEAL BREAKERS- the things that are absolutely
necessary to return; DESIRED SESRVICES- the things that are important and if
it is being worked on can be done without temporarily; EXTRAS- the services
that made our community our community and may not be present in the
immediate rebuild, but will likely return as a reflection of the population.



1)	Levees	
A)	Protection ( what category? 17’ – 25’)

Currently the decision by congress has been to authorize the rebuilding of
the levees to the category three status of 17 ½ feet (including a higher
initial height to account for settling).  Locally, there has been a request
made to build the levels for a category five storm or something 22 feet or
higher.  As recent reports have indicated, the Army Corps of Engineers
miscalculated the amount of money needed to complete its current
authorization- an additional 1 billion dollars for St. Bernard area levees;
3 billion for Plaquemines.  The completion of this work is questionable at
best by hurricane season, 2006.  Even if the height is reached, the
integrity of the levee will be less than a multi-year levee construction.

The 40 arpent levee is being raised to 10 feet, some 2.5 to 3.5 feet higher
than its previous height.  This work is nearing completion and will provide
additional protection in the 2006 hurricane season.  However, it too will
not be as strong as a levee constructed over several years and it is not
built to withstand the same surge that the MRGO levee is supposed to handle.
Additional requests have been proposed that would raise the 40 arpent levee
to equal or close to that of the MRGO levee.

B)	Degradation (will they hold in future storms without an overhaul)

We are told that the time frame of the levee repair will be in the June 06
time frame.  The current problem is that building a levee system in that
time frame potentially compromises the integrity of the levee, but it will
be reinforced in subsequent years.

Furthermore, recent reports indict the original design and construction of
the levee system, calling it substandard.

Additionally, the buffer zone of marsh lands has been decimated and
decreases the protective structure.

These factors due mean that there has been a decrease in the level of
overall protection that we have in St. Bernard as compared to the 2005
season.

2)	MRGO/marsh
A)	Close/blockade MRGO

Congress has not made any directional position that would indicate a move to
close the MRGO or to reauthorize the MRGO.  The decision to discontinue
dredging for one year is a positive step, but funding that was otherwise
allocated for the MRGO was also stripped and must be requested again to use
for MRGO related work such as coastal restoration, etc.  If there is a
reauthorization process implemented, congress would hopefully provide
mitigation for the destruction of the destroyed marsh lands and other
corrective actions before walking away from the maintenance of the channel.

As part of the mitigation process after reauthorization, there is a request
for additional surge protective measures in Lake Borgne as well as a control
structure in the channel.

Requests to fill in the channel by pumping it in has not received much
support in Washington to this point, but the battle has not ended.
Additional measures for consideration to compliment pumping the channel in
include storm surge structures in Lake Borgne and water control structures
at various points along the MRGO, an additional levee system on the North
side of the MRGO, and proper armoring of the levee system throughout.

B)	Redevelop marsh and barrier islands

While we have always fought for measures to protect against coastal erosion,
the devastation of Hurricane Katrina has accelerated the loss of coastal
barriers by over 50 years.

Currently, plans and requests have been drawn that include the restoration
of key land bridges and ridges in the marsh lands and barrier islands as a
first line of defense.



3)	Infrastructure/Utilities
A)	Roads

The review of road work repair is massive, with literally thousands of
repair requests having been identified.  The reality is that there are
street problems that have developed as a result of the storm causing
foundation support problems and the amount of truck traffic and heavy
equipment has destroyed some sections of roadway.  Repairing these streets
will be done, but not until the equipment on the streets has largely been
removed.

B)	Government services

All government related services are in place, including Fire protection,
Police protection, Lake Borgne Levee District, and virtually all essential
aspects of parish government.  The Parish Council and Administration are
operational and many of the previous 278 prefix numbers are back in service
for government offices.


C)	Water and Sewer Services

Water service is available in most areas of the parish currently and the
problem areas are being addressed on an ongoing basis.  While the water
delivery system still faces an enormous amount of repair needs, the basic
access to water for cleaning purposes and as potable consumption is
widespread. Anyone who is unsure of the condition of the water should
contact water and sewer at 271-1681.

Sewer services will be a longer term process as the 90 plus lift stations
all are in need of various degrees of repair.  The interim plan is to access
the sewer system at house clean outs and repaired plumbing and have the
sewerage vacuumed from the manholes at the wet-wells.  There are ongoing
repairs to the treatment plants that have begun and the consolidation of
sewer services to the Munster Treatment Plant is being conceptually
designed.  An estimated time frame for the consolidation will be tied to
FEMA funding issues and construction limitations.


D)	Drainage

The drainage system was clogged by the mud and vegetative debris from the
storm, but for the most part has been cleared to allow for adequate drainage
in our lateral and main canals.  The canal clean out process is an ongoing
project, limited by both funding and manpower.  As debris is cleared and
more debris surfaces or appears, the work will continue.  While some of the
drain lines have been cleaned out, there is still a significant amount of
obstruction in the lines.  Also, the assessment of the damage of the
drainage lines is ongoing.

It is believed that the current status of the drainage capacity does not put
property owners at significant risk during normal rain events, but problem
areas may experience greater risks for street flooding during heavy events.
In other words, drainage problems that existed before continue to be a
problem and will be observed closely during the rainy season.




E)	Electricity

Entergy reports availability to every part of the parish at least in a
temporary condition.  The company is having to rebuild their entire
electrical service grid.  This means that the electrical infrastructure is
limited and will be limited for some time.  Entergy has committed to getting
power either through a temporary pole or a modified house connection to
everyone who needs it.  However, the turnaround time may be as long as two
to three weeks.  Businesses may receive electrical connections after a
licensed electrician has inspected and repaired the property as needed.

Those areas of the parish that have underground service will be serviceable
but delayed because of the infrastructure repairs that must be made before
power can be turned on to those areas.

Street lights remain a hit and miss issue for Entergy and the parish as
repair work to parish poles is so massive, it is not feasible to do the work
in a piece meal fashion.  The administration has been requested to push this
issue through the FEMA funding process.  The possible use of using existing
electrical resources to place temporary lighting in habited areas has been
made.


4)	Structural Integrity of home

Despite the confusion surrounding the damage assessments and ratings given
to properties, property owners can fit into one of the categories below.
Having a structural engineering assessment is a good idea so that you can
certify the structural status of you property for future sales or activity.
Properties that are damaged above 60% are required to have a structural
assessment.  Properties damaged between 30% and 60% can bypass a structural
assessment by signing an indemnification with community development and the
clerk of court.


A)	Structurally sound

Homes that are structurally stable and meet the pre-storm base flood
elevation and wish to and can afford to begin the process of repair are more
than encouraged to do so.  Keep in mind that building resources and labor
may be difficult to find, especially as more residents begin to repair and
rebuild.

Residents wishing to have structural, electrical, plumbing, and/or heating
and air conditioning work should apply for a permit with the community
development department.  Permit fees have been waived for 2006.

There is no need for permits to do sheetrock or painting or other aesthetic
type work.  It is a good idea to record your repair date as part of the
potential grandfathering process, if it should become an issue.

B)	Structurally sound but needs remediation (mold, oil, etc.)

Homes in this category should take steps that allow for the homeowner to
become safe and secure in the property.  Follow the guidelines given by the
Department of Environmental Quality and the Centers for Disease Control and
making use of a professional hygienist is always another option.

There is no permit required for this type of repair.


C)	Not structurally sound but can be repaired

These homes will have to be required to follow specific procedures and
criteria in the rebuild process.  These homes may be demolished with the
owners consent as an option.  Houses in this condition will not be allowed
to remain in an unimproved condition and will move through the blighted
property process for appropriate action after being identified to the
council.

Property owners should evaluate the cost effectiveness of the repairing of
these properties against the cost to build from the ground – up.


D)	Tear down

These homes will be scheduled for demolition.  Proper checklist requirements
from FEMA will be followed and appropriate notification of the financial
interests in the property will be accomplished.

Demolished properties shall continue to be owned by the property owner.

In addition to the structural issue  . . . 

5)	Economically Possible

A)	Homeowner has funds
i.	Insurance proceeds
Property owners should be aware of the options available to them in the
insurance process.  If one had flood insurance, most of the St. Bernard area
has been declared a total loss for flood claims.
Homeowners’ insurance policies have been widely adjusted and more frequently
not satisfying property owners.  Property owners can appeal adjustments that
are not perceived as fair and can ask for an experienced adjuster who has
been adjusting for an adequate amount of time before the storm.  Sometimes
it is worth the expense to hire an independent adjuster to challenge the
adjustment that you believe was unfair.  Also, check to make sure that the
proper formula is being used in determining the cost of replacement or
repair issues.  Repair costs used by insurance companies often underestimate
the real costs to have the work done, properly.

Homeowners may also request a mediation of the claim.  Notify the insurance
commissioner’s office at 800-259-5300.

Be aware of the options you have relative to additional benefits from your
policy, including displacement costs, demolition costs, etc.  Ask you
insurance company if there are any parts of the policy that have not been
examined for benefits- then ask them to check again for you.


ii.	Personal funds

Those individuals who have the ability to repair or rebuild their home based
on their personal financial ability have only their personal decision to
contend with.  Individuals in this position will likely be somewhat ahead of
the repopulation curve and may wish to consider the make up of the
neighborhood in which they start their rebuilding.

iii.	Government program

Accessing FEMA funding is an easy process for some and a difficult process
for others.  As with any large agency, expect the unexpected and document
everything that you do and everything that you are told.

Remember to fill out all of the paper work from FEMA, including the SBA
packet.  If you do not, you will be dropped from the system and be
ineligible to receive any other grants or assistance.

The two questions that seem to hold people in limbo are the government
Hazard Mitigation Grant Program and the potential LRA Plan.

Hazard Mitigation is primarily intended to mitigate properties that have
been repetitive in loss claims or damage claims.  There is a part of the
program that allows for improvements of the conditions, but the property is
deed restricted and must remain green space.  Local government makes
application with priority projects and the mitigation plan must be approved
by the state hazard mitigation office and some part by the LRA to get
funding.

The LRA Plan is still in process and roughly plans to provide a cap of up to
150,000 to homeowners.  THIS DOES NOT MEAN THAT EVERYONE WILL RECEIVE A
$150,000 CASH PAYMENT.  The current LRA Plan deducts insurance from the
pre-storm value of your home and then allows up to 150,000 support to
repair, rebuild, relocate, or sell.  St. Bernard Parish has requested the
LRA to modify the plan to allow at least a portion of insurance proceeds to
not be deducted from the assistance to allow more opportunity to redevelop
our community.


B)	Ability to get flood and homeowner’s insurance

Be aware of your insurance company’s plan to continue to insure.  During the
emergency period, individuals could not be dropped from the insurance
companies rolls.  After that, there will be another question as to the
insurance company’s plan to insure in the St. Bernard area.

Currently, it is rare to find a company writing new homeowner policies.
Homeowners may get insurance through the FAIR plan and through surplus lines
of coverage, but much of the homeowners market is undecided.

Flood insurance will be available through NFIP, even if it is directly
through NFIP.

Flood insurance is directly related to a homeowner’s level of compliance for
the required base elevation of the home.  The process follows this flow: 
Regardless of the amount of damage to a home, if the home was compliant with
the required base flood elevation, the home can be rebuilt to the existing
required flood elevation.  If a flood elevation change takes place after a
rebuild or repair has been done, the property is grandfathered in.  If the
property is grandfathered in, there is no increase in the flood insurance
rate to the property owner because of the grandfathered status.  However,
once there is an occurrence of flooding to the grandfathered property,
insurance rates could be dramatically affected, if the elevation of the
property is not changed.  Currently the requirement by NFIP is that a home
that is substantially damaged (greater than 50%) must be elevated to
whatever the current compliance requirements are at the time of the
occurrence.

A way to get assistance in dealing with a flood elevation increase is to
utilize funding provided through NFIP in the increased cost of compliance
(ICC) program which allows a property owner who carried flood insurance to
apply for elevation assistance for up to 30,000 dollars to raise the
property to a compliant elevation.  An additional requirement for ICC
funding is that any house that was non-compliant and then is damaged to a
greater than 50% level must be elevated in order to maintain flood insurance
at a reasonable rate.  Additionally, to be eligible for ICC funding the
policy had to be insured at the time of the event. 

If a house is repaired or rebuilt, it can be elevated above the base
elevation and the property owner could enjoy a lower flood insurance
premium.  The NFIP will identify what elevation will be the highest
elevation above the requirement that will not bring additional premium
reductions.  This maximum additional elevation is between 2 and 5 feet.
However, the parish has building code restrictions for elevations above
certain heights depending on the subdivision and location of the property.

The decision of elevation requirements will be made over the next year by
the National Flood Insurance Program as the FIRM (Flood Insurance Rate Map)
is published.  At the end of March, 2006 it was anticipated that there would
have been an advisory to the elevation requirements for St. Bernard.  The
advisory will not affect rates as only the change in the FIRM will represent
the new elevation requirements.  HOWEVER, THE LRA HAS STATED THAT IT WILL
TIE FUNDING TO THE COMPLIANCE OF THE ADVISORY BASE FLOOD ELEVATIONS (ABFE).

Houses built after the new FIRM is issued will follow the requirements of
the parish government.  St. Bernard has followed the 1974 FIRM for building,
even though the most recent FIRM was issued in 1985.  The 1974 FIRM was more
conservative than the 1985.


The parish has asked FEMA to consider offering the ICC funding to all parish
residents and not to limit such to just the flood insured individuals, so
that all houses that may need to be raised could receive the benefit form
NFIP.



C)	Ability to get interim flood and homeowner’s insurance

Presently, there are no certainties to new insurance policies being written.
During the emergency period, insurance companies are not allowed to drop
policies.  However, once the emergency period ends, there will be many
questions left unanswered by the industry.

Residents should ask for a policy disposition from their respective agents
or the home office for their insurance company.   Get it in writing.

D)	Cost of construction/renovation to home

Building experts are estimating two major issues for the rebuilding issues.
Cost of materials and labor and availability of contractors.

Because of simple supply and demand issues, the cost of materials continues
to skyrocket.  This naturally results in higher prices for materials to the
builder.  The parish has received word from a supplier of their intent to
locate large amounts of building supplies in St. Bernard to lower the
pricing and increase the availability.  However, the builder’s labor charge
is somewhat negotiable, especially for those builders who have been
established with long standing relationships with their subcontractors.  Ask
the builder what their labor costs were six months ago and an explanation as
to the increase in the labor costs now if there are any.

Be aware of fly by night companies and the hit and run construction
companies that are only here to take advantage of the situation.  Residents
are asked to report any problematic activities to the parish permit office
at 504-278-4310.

To handle the shortage of credible contractors, residents should begin
contacting builders now.  If a group of neighbors can get together, it may
be more advantageous to lock a contractor up now for several consecutive
jobs if it can be worked out.  Good for the contractor to be in one place
and good for the neighbors to get the service.


6)	Economically Feasible
A)	Cost of balance of mortgage after insurance plus renovation cost
versus market value of the property

This decision for each individual family will be based on the amount of
mortgage left on the home or business and if the insurance company has paid
an adequate benefit.  Unfortunately, the market value of properties will be
significantly less than prior to the storm.

Homeowners would do well to check with professional builders to get an
estimate of repairing and rebuilding verses information from real estate
experts to estimate how long it will take to recover the investment made
into the property.

Clearly, the financial exposure that individuals will incur in the
rebuilding period will be significant.

The other side of this process includes the situation of people not being in
a position to forfeit their property and move away.  The most economical
decision for some may be to return and build again on the property that was
destroyed.  While we are faced with many financial decisions, it is obvious
that the financial feasibility will be weighed heavily into the return
strategy for many.

Those individuals who have employment opportunities that are conducive to
staying or returning to the St. Bernard area will certainly have a greater
financial draw to come home.


B)	Overall cost to own
i.	Existing mortgage (remaining balance after insurance if any)

Those individuals who are able to roll their existing mortgage into a new
loan will be able to extend their financial obligations over a longer period
of time.  Those individuals who are not held by a mortgage will have the
opportunity to move more freely depending on their financial disposition.
Buying in other areas in the metropolitan area and beyond will likely
continue to see escalated pricing of properties, while the cost to repair
and maintain existing properties could allow for an easier transition back
home.
 
ii.	Construction cost (new mortgage)

As previously mentioned the cost of new construction will be much higher
than pre-storm pricing.  Additionally, new purchases will have a greater
difficulty in being insured.  The cost of construction will continue to land
owners in a market that upon the purchase and construction of property will
likely not be supported at the same level in the real estate market.
 
iii.	Cost of insurance (flood and homeowner’s)

The premium of flood insurance will be adjusted according to the national
level of flood insurance coverage.  For compliant properties and properties
that have not had severe repetitive occurrences premiums are anticipated to
be fairly consistent with pre-term anticipated premium adjustments.  The
premiums are affected by such things as the levee systems, the drainage
systems, level of compliance in each zone, geographic region, and obviously,
the amount of coverage sought.

As previously stated, the homeowner’s insurance issue is likely to be a deal
breaker for many people.  Inquire early and often and get the quotes in
writing.



7)	Quality of Life

A)	Neighborhood redevelopment (percentage of neighborhood returning)

As parish government undertakes the planning process of redeveloping
neighborhoods, it is very difficult to accurately predict the percentage of
returning residents.  We have begun a program to assist in identifying
residents by both signing in on our sbpg.net website and placing a yellow
ribbon on one’s house.  The ribbon is available at the Public Information
Center behind the government building.


B)	Community services available (businesses, food, etc.)

Currently the business community is making appropriate preparations for
their return to the community.  The website is listing returning businesses
and identifying those businesses that are already operational.  Several
restaurants are now open and more are coming on line and serving dinner as
well.  Grocery services are anticipated in the next couple of months.


C)	Community amenities (parks, recreation department, senior citizen
activities, entertainment, etc.)

The availability of community amenities is virtually non-existent at
present.  Plans to include youth type activities and a modified recreational
plan are underway.  Most of the entertainment will come from amongst the
residents and businesses that return initially.  It is hoped that each of
the many civic and social organizations are actively networking within their
membership as a way to continue to strengthen the returning population.


D)	Medical Services

There is a primary care clinic currently operating and treats and transfers
serious needs.  A more semi-permanent hospital set up is being constructed
and should be ready for occupation in early April.  Pharmacy services are
available as part of the clinic and at least three private pharmacies are
open for business.


E)	Grocery/Supplies

There is no grocery at present and the push for one to open by summer 2006.

A couple of hardware stores are open and under construction, a lumber yard
is in operation, and Home Depot has reopened.

The auditorium is housing some supplies that have been donated and the
availability of other needs are accessible in surrounding areas.


8)	Education
A)	The opening of the St. Bernard Unified School has been a major step
in the rebuilding process.  The school is serving all grade levels and is
serving over 2,300 students for the Spring 06 semester.  It is located on
the grounds of Chalmette High School and is utilizing part of the building
in the spring semester.  Next school year there will be additional school
sites added.

Overriding factor to all decisions - TIMING (how long will it take)

While there is no specific way to determine the time of the rebuilding
process, similar rebuilds have taken five to ten years to return to
pre-event status and operations.  Along the way there will be some
highlights and some setbacks.

Sincerely,
Craig Taffaro, Jr.