Posted on: Thursday, February 3, 2005
Disaster declared in Manoa flood
By Beverly Creamer
Advertiser Education Writer
President Bush has declared the state a federal disaster area, opening the way for millions of dollars in federal aid to help the University of Hawai'i and areas of Manoa, Nu'uanu and other parts of O'ahu recover from the devastating effects of the Oct. 30 storm and resulting flood.
Aid also will be available for measures to prevent future floods.
The worst losses were suffered by the University of Hawai'i-Manoa, which saw $76 million in damage to 32 buildings. That includes about $10 million in cleanup and reconstruction costs, but doesn't include the loss of business or intellectual property. UH administrators estimate those categories of loss could push total flood losses to around $100 million.
"We appreciate President Bush's ongoing assistance for our state and his recognition of the severity and magnitude of the damage caused by the rain and flooding last fall," Gov. Linda Lingle said in a written statement.
Whether the university will accept the aid, however, is not a certainty.
UH administrators and state risk managers are analyzing whether accepting the federal help would be beneficial because of the mandatory increase in liability insurance and premiums that accompany such financing.
Once federal aid has been accepted for infrastructure repairs, buildings must be insured in perpetuity at higher levels, with higher premiums. The state currently pays about $5 million annually in insurance premiums.
"The state would ultimately have to make that decision," said UH spokeswoman Carolyn Tanaka, associate vice president for external affairs and university relations.
Under the Federal Emergency Management Agency's cost-sharing ratio for federal disaster aid, the federal government would pay three-quarters of the eligible losses and the state one-quarter after insurance settlements. That could open UH for as much as $38.2 million in grants after the state's $25 million flood insurance policy is exhausted.
Hawai'i's senior Sen. Daniel K. Inouye wrote to Bush a week ago encouraging the president to declare the county of Honolulu a disaster area. "The president's declaration was swift," said a statement from Inouye.
However, the senator said his office was told no set amount had been established as additional damage assessments may still come in.
Lingle and state civil defense officials filed a formal state request to FEMA Dec. 30 under two categories: public assistance and hazard mitigation. Hawai'i isn't eligible for aid under a third program, individual assistance, because FEMA already has determined the damage to about 200 homes is under the threshold.
Money for public assistance can be designated for uses including restoring public infrastructure. Hazard mitigation includes an additional 15 percent of the total amount of a FEMA grant for measures to prevent future disasters.
Currently, state, county, civil defense and other involved agencies are looking at approximately $1 million worth of short-term measures. A long-term study is also under way.
Federal official Michael Karl is scheduled to arrive on O'ahu today to oversee relief efforts.
Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.
