DEC 24 1996
Mr. William E. Whitney
Governor's Authorized Representative
State of Nebraska
State Civil Defense Agency
1300 Military Road
Lincoln, NE 68508-1090
Dear Mr. Whitney:
This letter responds to a second appeal filed on behalf of Dodge County for a grant application submitted under the Hazard Mitigation Grant Program (HMGP). The grant was requested for a river bank reconstruction and stabilization project on the west side of the Elkhorn River. The application was submitted under disaster declaration FEMA-908-DR-NE. The State of Nebraska's Project Number is #0013.
Unfortunately, I must deny the grant because it does not meet the cost-effectiveness eligibility requirement of the HMGP, found at 44 CFR 206.434(b)(5). Under this requirement, a project's future benefits must exceed its costs, as computed on a net present value basis. FEMA has assessed the cost-effectiveness of this proposed project, and found that it does not meet this criterion.
Nonetheless, funding under the HMGP still remains available. The project can proceed using Nebraska's 5% initiative funding at your discretion.
In closing, should you choose not to use the 5% initiative, FEMA Region VII is available to assist you and Dodge County in identifying suitable alternatives towards reducing flood losses to its inhabitants. We look forward to working with you in this matter.
Richard W. Krimm
Executive Associate Director