Memo from MMUA

July 12, 2000

Dear MMUA Member:

The Federal Emergency Management Agency (FEMA) will no longer reimburse costs arising from a city or municipal utility assisting another city/utility unless there is a prior, written agreement between the damaged party and the assisting party.

This stipulation is contained in policy update 9523.6, Mutual Aid Agreements for Public Assistance, issued on August 17, 1999. The policy publication says it "is applicable to all major disasters and emergencies declared on or after the publication date of this policy." The policy was published in the Federal Register, but not well publicized until this time. I have attached a copy of the policy here. There is no provision for reimbursement for mutual aid when there is no formal written agreement.

FEMA Region 5 Director Dan Brown said that if an association member signs a blanket association agreement, that would cover any combination of members assisting another member, as long as they had all signed the association agreement. Brown said the new policy is designed to stop the practice of an assisting city helping another with no intention of seeking payment, until a federal disaster declaration is declared, and then making a claim.

The second attachment is a model agreement drafted following discussion between the American Public Power Association, the National Rural Electric Cooperative Association and FEMA. This agreement is being used around the country. We believe that it will be honored by FEMA.

FEMA officials have led us to believe that if a city signatory to this agreement receives mutual aid from another city which is signatory to the agreement, the city receiving mutual aid will be eligible for reimbursement by FEMA for the costs of labor and equipment received from the providing city. This, we are told, applies equally to other publicly owned entities, such as co-ops, county government, etc.

We have tried to confirm that this agreement will satisfy FEMA rule requirements, but we urge you to satisfy yourself on this issue by discussing it with your city attorney as this is primarily a legal issue. Further, you should consider that as a city receiving or providing mutual aid, there might well be important considerations beyond FEMA reimbursement. For example, when mutual aid is actually requested of your city pursuant to the agreement, you may wish to confirm at that time if the requesting city will reimburse your costs whether or not FEMA aid is provided to the receiving city. That and other legal issues under Minnesota law are not addressed in the agreement. We suggest that you talk to your city attorney on those points as well.

Previously, most municipal utilities believed the traditional practice of help-your-neighbor made widespread implementation of a mutual aid agreement unnecessary. That has changed. A joint meeting of the MMUA Communications/Member Services Committee and the Mutual Aid Task Force was held June 22. The group endorsed the attached model agreement. And, the MMUA Board of Directors June 25 approved the association’s involvement with mutual aid activities.

MMUA has contacted a variety of municipal organizations in Minnesota, as well as FEMA offices in Minnesota and the regional office in Chicago. We are coordinating our efforts with APPA and other municipal associations in Minnesota. MMUA envisions a more comprehensive mutual aid package to be developed, including help with radio communications in a disaster situation.

It is important to note that the attached agreement does not obligate you or your city/utility to provide mutual aid — it merely clears the deck for receipt of FEMA reimbursement funds should you assist another city/utility, etc., and federal disaster assistance funds become available.

The final attachment is a model resolution for use by your governing body. It authorizes participation in the MMUA Mutual Aid Program, directs execution of the Mutual Aid Agreement and establishes authority for setting rates for reimbursement. We urge you to consider adoption of the resolution by your utility’s governing body. If your city is a statutory city and has a utility commission, the governing body would be the commission. If it is a statutory city without a commission, it is the city council. If your city is a charter city, you will have to review your charter to determine if the city council or a commission is the governing body or you may consider seeking approval of both.

When the resolution is approved, please sign two copies of the Mutual Aid Agreement, date them and return one signed copy to me and keep one for your files. Also, please send a copy of the resolution as adopted.

Sincerely,

Steve Downer
Associate Executive Director