Members of the Globe City Council: Mayor Al Gameros, Vice Mayor Mike Stapleton (District 4), and Council members Freddy Rios (District 1), Mike Pastor (District 2), Jesse Leetham (District 3), Mariano Gonzalez (District 5), and Fernando Shipley (District 6). All members were in attendance at this meeting except Councilman Shipley and Councilman Leetham.
In a detailed discussion, City leaders explained how flood recovery will be funded and what help is available to residents and businesses. The discussion clarified that most government assistance will come as reimbursement for public costs. However, funds from local donors are already directly supporting households and small businesses.
Dani Beathard, the City’s Finance Manager, started with an explanation of the alphabet soup.
DEMA, the Department of Emergency and Military Affairs, provides emergency funding from the state of Arizona. The threshold for Globe to receive public assistance from the state is $7 million in documented damages. If that number is met, the state will reimburse 75% of eligible public costs, and the City will cover 25%. DEMA decides what will be reimbursable, and not everything will be, Beathard said. DEMA funding pays only for public infrastructure, and it only pays when no other source of funding is available. Beathard said the state does not offer any assistance at all to private individuals or businesses.
FEMA, the Federal Emergency Management Agency, provides federal emergency funds. A federal declaration will become possible if region-wide damages reach $13 million. In that case, the cost share could potentially shift to 90% reimbursed (75% federal + 15% state), with the City responsible for 10%. These funds would also apply only to public infrastructure, and only to bring infrastructure back to pre-disaster condition.
Beathard emphasized that even after Globe qualifies for reimbursement, actually receiving the money will probably take several years. According to Councilman Gonzalez, the average time to receive reimbursement is two years. In the meantime, the City will have to front the costs.
“We have been very stubborn about ensuring that we have a reserve in the budget for this literally rainy day fund, because it helps us to continue operations, to continue growth.” —Councilman Gonzalez
Chief Robinson added that if a federal declaration is granted, it will have two separate tracks: Public Assistance (PA) for governmental infrastructure and Individual Assistance (IA) for residents. Individual Assistance is not guaranteed in every disaster. According to City Manager Paul Jepson, if Individual Assistance is offered, it will likely be capped at $50,000, and the application process is very complicated. According to Chief Robinson, Individual Assistance probably will not cover business losses.
Jepson pointed out that for FEMA, the City has to keep detailed records of flood recovery activities, including the time and date, locations, who did what, and details of debris pickup and disposal, in order to show that work met required standards. The City also has to provide comprehensive maintenance records for roads, bridges, the sewer system, and the vehicle fleet, because reimbursement hinges on evidence that assets were in good condition prior to the disaster.
On the household side, Assistant City Manager Linda Oddonetto explained that the Residential Relief Grant Program is being administered by the Salvation Army. It was kick-started by $50,000 in matching funds from the United Fund. Thanks to a $250,000 contribution from APS, the maximum per household was raised from $4,500 to $7,500.
To apply, people must visit the Salvation Army office on Cedar Street in person for an intake interview. Funds can reimburse residents for materials and labor, such as drywall and installation, with receipts or a quote from a licensed contractor. Where allowed by code, work by a handyman might also qualify, as long as the handyman is licensed, bonded, and insured.
“We’re four and a half weeks past the event, and we’re seeing people come into the Salvation Army office and say ‘What is there?’ because they they were busy helping neighbors. They were busy helping other people, and now it’s time to help themselves.” —Linda Oddonetto
Oddonetto emphasized that flood damage is different from storm damage, and to be covered, damage has to be caused by the flood. However, people who had storm damage can go through their homeowners insurance, as their policy should cover it.
Homeowners who don’t have insurance coverage or are facing larger repairs can consider appying for an SBA disaster loan. These loans have low rates and 30-year terms.
Local First Arizona is managing a Business Relief Grant Program, which received another $50,000 from United Fund in matching funds as well as $200,000 that the City of Globe contributed early in the disaster response.
Intake for the program is being managed by Local First Arizona, and United Fund will be making disbursements. Applications can be made online and need to be in by Friday, October 31. Applicants will receive case-management calls within two days.
Applications will be reviewed by a local-based committee made up of representatives from the United Fund and Local First Arizona, the mayors of Globe and Miami, and a representative of the SBA who has been in the community working with applicants.
A surge of private and corporate philanthropy, including donations from Resolution Copper, Freeport, BHP, APS, and others, has increased the fund. Donors can earmark funds for residents or businesses, for Globe or Miami, or can split their contributions. The United Fund is tracking these earmarks.
“Why hasn’t the funding gone out quickly? Well, because the window needs to close. We need to give everybody a chance to apply and have a chance at the funding that’s been raised.” —Linda Oddonetto
Oddonetto said 100% of donated dollars are being passed through to affected residents and businesses. Administrative costs are being covered separately and are not being paid for out of donations. She also noted that some pledged funds have not yet arrived, so disbursements will occur after the application window closes and pledged donations have been received.
Jepson explained that the City of Globe’s $200,000 is going to businesses and not individuals because of Arizona’s constitutional “gift clause” (Article 9, Section 7), which prohibits using public funds to benefit private individuals. To spend City funds, there must a direct, material public benefit. Business qualify under the gift clause because reopening businesses restores local sales tax revenue, creating the required public benefit. City dollars can’t be granted directly to homeowners because there is no material public benefit.
To receive these funds, businesses have to hold a current City business license and must attest to being in good standing with the state revenue department.
For home or business owners who have to demolish, Oddonetto said City staff will be meeting soon to discuss a federal program that might buy out these properties and then demolish the structure.
Mayor Gameros pointed out that if people rebuild, they may have to rebuild under FEMA standards and build to flood plain regulations. If they are rebuilding with federally backed funds, they might not have the option of building in a flood zone, according to Oddonetto.
“Usually FEMA standards is a 100-year flood zone, but this was over a 100-year flood.” —Paul Jepson
Captain Kendall Cormack pointed out that the City could apply to a USDA Natural Resources Conservation Service (NRCS) program that would help with bridges, erosion, and getting sediment out of creeks, and it would include re-engineering creek areas to improve water flow. The NRCS program is a 75/25 match, and Cormack said the NRCS is generally less stringent about documentation than FEMA. However, as with FEMA, Globe would have to spend the money first and then get reimbursed.
For owners of red- or yellow-tagged structures that may need structural engineering assessments before they can be made habitable again, Oddonetto said the Arizona Commerce Authority is working on recruiting volunteer structural engineers to provide assessments.
Oddonetto also said that for businesses or residents that haven’t applied to programs because their financials aren’t in order, the Arizona Commerce Authority has technical assistance grants that might be able to help. The City’s Economic Development department can put people in touch with the ACA.
“In the beginning, we thought that there was a pot of gold out there, that somebody in a white horse was going to drive in with a bunch of money and save everybody. And it isn’t out there.” —Mayor Gameros
Oddonetto also pointed out that utility bill relief has already been issued for properties in the flood path that used significant water for cleanup. For these properties, their October bill has been waived.
Public Works Director John Angulo reported there has been good progress on sewer line blockages. Contractors have been “chasing the flow” downstream with two to three jetter trucks, and crews will continue all the way to the treatment plant to ensure the system is clear.
On water, one of the two 12-inch transmission lines from the Cutter field failed, but a bypass line kept service stable. The contractor has begun potholing and utility locating and is preparing to excavate and restore both 12-inch lines to full operation.
Angulo said people should expect to see street sweeping, pothole repairs, curb/gutter fixes, handrail and sidewalk replacements, and replacement of damaged downtown trash cans.
“Right now we’re starting to attack the everyday things as we would normally have seen after storm cleanup after a monsoon.” —John Angulo
Angulo said his staff are re-evaluating drainage design for downtown and key corridors based on what was observed during the storm. The design of the sidewalk project will also be modified based on what was observed during the flooding.
The Yuma and Haskins bridges are still closed, and inspections have been completed. Preliminary repair estimates are $413,000 for Yuma and $276,000 for Haskins. These repairs would restore the bridges to their pre-flood condition, with existing weight limitations. Full replacement would likely cost between $3.5 million and $4 million for each bridge. The City is weighing whether to invest in fixes while pursuing funds to replace the bridges.
Meanwhile, Councilman Gonzalez has asked APS to install additional street lighting on the back route behind DeMarco’s, which is now carrying more traffic due to the closures.
Angulo pointed out that sandbags don’t last long outdoors and can’t be reused. Residents are welcome to reuse the sand, such as for landscaping or gardening. The City will coordinate pickups to clear sandbags that are currently piled up on sidewalks and downtown.
Council also approved motions for the following:
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