By Collin Breaux
As Washington County continues to not be reimbursed by FEMA for contractor work after Hurricane Michael, Board of County Commissioners (BOCC) Chairman David Pettis said he was told the lack of payment is an error on FEMA’s end.
Pettis again addressed the matter during a special BOCC meeting Wednesday, May 29.
Approvals were made by FEMA, with concurrence from the Florida Division of Emergency Management (FDEM) to pave previously unpaved roads.
“On Monday, May 13, 2024, we had a phone conference with FEMA and FDEM. Included on this call was (a FEMA representative),” Pettis said. “She advised the County that paving dirt roads was not eligible mitigation work and that FEMA intended to issue a denial of this work and de-obligate or take back funds from Washington County.”
“When asked why the de-obligation occurred at this stage in the process, she said that errors were made,” Pettis continued. “I asked her what errors were made and who made those errors. Her response was that, ‘Costs were approved in error by FEMA.’ She stated that FEMA had been questioning this project since 2021.”
FDEM reportedly had no documentation of the County being notified of any concerns, he said.
“At this point in the conversation, we were notified of our appeals rights and we were also made aware of a loan in interest repayment program,” Pettis further said. “On Friday, May 17, 2024, we had a phone conversation with FEMA and FDEM. The County stated our position is that we did what we were supposed to do and followed FEA policy, as confirmed by the approvals at the beginning of the project.”
Reimbursements were stopped in September 2023, which put the County in a financial crisis. The County had to use a line of credit approximately $10.5 million.
“FDEM requested documentation regarding the use of 1.5 inches instead of two inches and the County provided that documentation,” Pettis said. “We worked with FDEM for several months, providing documentation and correspondence to FEMA. At this point, we thought the difference in asphalt thickness was the cause of the reimbursement stoppage.”
The FEMA representative reportedly said the County did not make any errors.
“During this conversation, she said FEMA is empathetic to this situation, doesn’t want to make the decision lightly, and will consider additional information,” Pettis said. “They want to help as we move forward and offer any help that they can.”
The County continues to work with FEMA and FDE and wants to resolve the matter before moving into the appeals process, he said.
“FEMA has not yet issued a denial on these projects and we are hopeful for a quick resolution,” Pettis said.
Commissioner Alan T. Bush said the answer was “good” but “not great.”
“We didn’t make an error, so that eliminates all the different speculations that have been made that the County had done something wrong,” Bush said.
Commissioner Tray Hawkins asked what the federal stance is with regional legislators.
“If something this size and magnitude affects Washington County the way it has, how do you trust that any obligations that you get in the future from FEMA is not going to be an error in the future and you risk this?” Hawkins said. “You lose so much trust in what they’re doing if you have another natural disaster in the future.”
Pettis said County Administrator Jeff Massey has been involved with Rep. Neal Dunn’s office and they are doing what they can do to help the County.
Commissioner Wesley Griffin said the state could help, which Pettis said is underway.
“I sent an email to the state, FDEM, asking their opinion and what their support would be for Washington County,” Pettis said. “The reply I received from FDEM is they support the appeals process and going into arbitration.”
The County can continue to correspond with FEMA before going into arbitration, Pettis said.
“Our hope is to get this negotiated, figured out, and resolved before we have to enter the appeals process or arbitration which could be a lengthy process,” he said.
Hawkins asked if the state could utilize a bridge loan “or something that’s coming out of government coffers.”
“Mr. Massey and I have discussed that, reaching out to see if that is available,” Pettis said.
The state has a “rainy day fund that’s larger than it’s ever been,” Hawkins said.
“We think (FEMA) should go ahead and release the funds. That conversation, I think, is narrowing down. We’re drilling down to get that answer,” Massey said. “What David said is accurate. They’re looking at it to make sure it’s eligible. I will say this.”
“All the documentation we provided, we’re eligible,” Massey continued. “If it doesn’t matter that we followed the rules, FEMA made an error, and you can throw our documents and everything that we have that shows that these funds are eligible out the window, I don’t know what to say to that. FEMA’s going to have to answer for that.”
Bush said he couldn’t imagine FEMA following through.
“I think we’re in good shape,” Bush said. “They admitted it’s their error. They should follow through and fix it.”
Massey said the phase of identifying who did what and how is over.
“I think we’re in a phase now where everybody is actually starting to work together to make this right,” Massey said. “I’m pretty optimistic this is going to be a good outcome.”
Staff Report 
Hannah Collins