The Gazette covers City Hall, now a flood-damaged icon on May's Island in the Cedar River

Archive for May 14th, 2009|Daily archive page

Mr. $475-an-hour — who became Mr. $225-an-hour — still a vital cog in the city’s drive to get all it can from FEMA

In City Hall, FEMA, Floods on May 14, 2009 at 9:58 am

The City Council approved a contract extension last night for John Levy.

The extension takes Levy’s contract through June 30, adds $186,400 to the cost of it and brings the total cost to $786,400. The contract began Oct. 1.

Levy showed up at City Hall even as flood water was receding last June. He came with disaster experience from Hurricane Katrina and a message: Experience makes all the difference for cities if they are to make sure they get all they deserve in flood-disaster relief from the Federal Emergency Management Agency.

Levy was then an executive with an entity called Globe Midwest, and after the city hired him, he achieved a measure of celebrity when it became noted that the city was paying the firm $475 an hour for Levy’s services.

In the first three months after the flood, the city paid Globe Midwest $691,000.

The city had a parallel contract for other flood-recovery duties with a second disaster-services firm, Adjusters International, to which the city had paid $645,000 in the first three months of recovery.
Last September, the city put the contracts up for new bids. Several firms competed, but Adjusters International won one contract, and Levy, who created his own company, Base Tactical Disaster Recovery, won the second contract. The new contract, at least at its inception, called for Levy’s new firm to get paid $225 an hour for his services.

In a memo this week to the City Council, city staff members note that Levy’s current contract extended through Jan. 9, 2009, and had been extended twice, through May 9, at no additional cost.

The city says Levy matters.

At a Veterans Memorial Commission meeting earlier this week, Levy was center stage as commission members challenged City Manager Jim Prosser about why renovations to the city’s flood-damaged Veterans Memorial Building/City Hall on May’s Island hadn’t yet begun. The city has suggested the building has had $25 million in damage.

Prosser called on Levy.

Levy explained the negotiation that cities and FEMA engage in as they come to some agreement on how much damage has occurred to a building. The city has weighed in with its “worksheet” on the damages, while FEMA is still working on its worksheet. FEMA was preparing for a fourth visit to the building, he said. Negotiations then would follow. After that, a second process takes place in which the city presents its plan on how it will mitigate against flood damage to the building in the future, Levy said.

Prosser noted that the city estimates it may have as much as $500 million in damage to its public buildings and facilities. Moving FEMA by a few percentage points on the size of damages is worth millions of dollars to the city, he noted.