George M. Verity Tow Boat Museum

March 29, 2010

Patrick J. Hall

Alternate Governor’s Authorized Representative

Iowa Homeland Security and Emergency Management Division

7105 NW 70^th Avenue

Camp Dodge, Building W-4

Johnston, Iowa 50131-1824

Re:  Second Appeal–City of Keokuk, PA ID 111-92311-00, George M. Verity Tow Boat Museum, FEMA-1763-DR-IA, Project Worksheets (PW) 1324 and 1372

Dear Mr. Hall:

This letter is in response to your letter dated September 15, 2009, which transmitted the referenced second appeal on behalf of the City of Keokuk (Applicant).  The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) mandatory National Flood Insurance Program (NFIP) deductions of $214,963 from PWs 1324 and 1372.

Background

FEMA prepared PW 1324 for $208,480 for asbestos abatement and PW 1372 for $17,118 to repair flood damage to the George M. Verity Tow Boat Museum (Museum) and its contents following a series of severe storms and flooding beginning May 25, 2008.  FEMA reduced the eligible amount of each PW by $202,980 and $11,983 respectively, because the damaged facilities were located in a Special Flood Hazard Area (SFHA).  FEMA regulations at 44 CFR §206.252, Insurance requirements for facilities damaged by flood, require FEMA to reduce the amount of assistance it provides for facilities that are located in SFHAs by the amount of insurance which would have been received had the building and its contents been insured by the National Flood Insurance Program policy.

On December 9, 2008, the Applicant submitted its first appeal requesting a waiver of mandatory NFIP deductions on PWs 1324 and 1372 stating it had unsuccessfully made multiple attempts over the past 30 years to obtain flood insurance on the facility.  The Applicant provided a letter from its insurance carrier stating that the facility was uninsurable under NFIP.  The Iowa Homeland Security and Emergency Management Division forwarded the appeal to FEMA on January 8, 2009.  The State supported the request for a waiver of the mandatory deductions.  On April 29, 2009, the Acting Regional Administrator determined that the Museum was insurable under NFIP and denied the first appeal for these PWs.  The Applicant submitted a second appeal, on June 26, 2009, to remove the mandatory NFIP deductions from PWs 1324 and 1372.  The

Applicant did not provide any additional documentation with the second appeal.  The State does not support the Applicant’s appeal.

Discussion

The Museum was originally a boat; however, it has been dry docked since 1961.  Cables attached to concrete pylons buried in the ground permanently anchor the facility.  Additionally, it is hard wired for electricity and has plumbing running to it.  The NFIP defines a building as “a structure with two or more outside rigid walls and a fully secured roof affixed to a permanent site that should be able to resist flotation, collapse, and lateral movement caused by flood waters including wind forces in the coastal areas.”  FEMA has determined that the Museum meets the definition of a building, and therefore, flood insurance under the NFIP is available.  Based on this determination of insurability, the mandatory NFIP deductions apply to the George M. Verity Tow Boat Museum.

Conclusion

I have reviewed the information submitted with the appeal and have determined that the Acting Regional Administrator’s decision in the first appeal is consistent with Public Assistance regulations and policy.  Accordingly, I am denying this appeal.

Please inform the Applicant of my decision.  This determination is the final decision on this matter pursuant to 44 CFR §206.206, Appeals.

Sincerely,

/s/

Elizabeth A. Zimmerman

Assistant Administrator

Disaster Assistance Directorate

cc:  Beth Freeman

       Regional Administrator

       FEMA Region VII