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Town's debt to FEMA as deep as '03 blizzard

Georgetown owes $64,000 in wake of billing probe

Published August 16, 2007 at midnight

The snow is long gone, but the city of Georgetown is still digging itself out of debt for the blizzard of 2003, thanks to a former town official who sent a wildly inflated bill for snow removal to the federal government.

Then-Town Administrator Paul McKenna conspired with the city's snow removal contractor to fold 11 days' worth of charges into a three-day period, which he then submitted to the Federal Emergency Management Agency, according to a federal investigation.

The March 2003 storm dumped more than 30 inches of snow on the Denver area and more than 6 feet in some areas of the foothills.

Under federal law, communities hit by storms severe enough to be considered emergencies are eligible for reimbursement of 75 percent of their snow removal and other costs for a 48- to 72-hour period.

"It didn't pass the infamous sniff test," said Jerry DeFelice, spokesman for FEMA's Denver regional office. "They had high billing hours and expensive equipment-use fees. It didn't line up with neighboring communities. Let's say you go down the road, to Idaho Springs - what happened to them?"

Idaho Springs submitted expenses of a little more than $10,000, while Georgetown's bill was more than $72,000.

FEMA flagged it, paid 75 percent, $54,000, and passed the case to the U.S. inspector general.

"This is part of our standard procedure when we see things out of line," DeFelice said. "People should know that's how we're overseeing their tax dollars."

In June, the U.S. attorney's office told Georgetown its investigation revealed the city had been entitled to only about $11,000.

"We met with them in July, and they said (they) wanted $43,000 for the amount of overpayment FEMA made for the false filings, and another $21,000 for interest since then and part of their investigation costs," said Chuck Stearns, the current Georgetown town administrator.

That's a lot of money for a town with a $724,000 budget.

The city has agreed to repay the money in installments with interest in return for an agreement by the government not to file suit, which could have included triple damages and costs.

Meanwhile, city officials have been discussing what if any action to take against the contractor, who has since gone out of business, or McKenna - if they can find him.

Stearns said McKenna was fired and left the state after the investigation came to light in 2003.

Splitting the cost

Federal assistance reimburses 75 percent of eligible costs for snow removal and other public assistance for a 48- or 72-hour period after storms severe enough to be declared an emergency or major disaster. State and local governments pay the remaining 25 percent.

FEMA reimbursement for March 17-20, 2003

Denver    $1,104,734

Adams    $597,977

Arapahoe    $400,671

Boulder    $166,582

Broomfield    $57,388

Douglas    $448,411

Jefferson    $554,967

FEMA reimbursement for Dec. 18-22, 2006

Denver    $1,793,008

Adams    $902,818

Arapahoe    $741,671

Boulder    $386,226

Broomfield    $63,561

Douglas    $723,830

Jefferson    $857,623Source: Colorado Division Of Emergency Management

Georgetown

Population: 1,088

Median age: 39

Median income: $42,969

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