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Council OKs shared-services agreement with Wayne for four buyout properties after assurances of FEMA funding
Summary
Pompton Lakes approved a shared-services agreement with the Township of Wayne to acquire four Blue Acres/FMA properties, following staff assurances that FEMA funding is committed and that homeowners have agreed to sales; the borough will reimburse Wayne if federal reimbursement fails.
Pompton Lakes Borough Council voted to authorize a shared-services agreement with the Township of Wayne for the acquisition of four flood-prone homes under the FMA/Blue Acres program, a measure council members approved following questions about who would carry financial risk if state or federal reimbursements did not arrive.
The agreement (agenda item 25-1-41) directs Pompton Lakes to reimburse Wayne for costs Wayne advances to complete the buyouts, and then seek recoupment directly from the New Jersey Office of Emergency Management or FEMA if reimbursement is delayed or withheld. Borough Administrator Michael Coley told council members he had spoken with Wayne’s administrator and was satisfied the township has “a full commitment from FEMA” for the funding.
Council members pressed for clarity on the contingency language in the contract, which states that in the event the New Jersey Office of Emergency Management fails to reimburse Wayne, Pompton Lakes would be responsible for reimbursing Wayne and then pursuing the state or federal agency. Borough Attorney Dave Wigner advised that the arrangement is consistent with prior buyout contracts the borough has entered into.
Supporters of the agreement said homeowners have already agreed to sell and that Wayne has started the buyout process. One council member expressed concern about lost tax revenue if properties are demolished rather than elevated; staff replied that buyouts are homeowner choices within the program and that elevations may be used in other cases. Council members and staff noted the borough had been told additional Blue Acres buyouts beyond the four in this agreement could be delayed by changes in federal funding timing.
On a roll call vote the council approved the agreement. Several council members voted yes; one council member recorded a no vote during roll call (transcript indicates a “No” on the roll call for Councilman Kennedy) and at least one member declined to vote (recusal/abstention noted in related items elsewhere on the agenda). Borough staff said the borough has received assurances from Wayne that funding is in place and that the buyouts are ready to proceed.
The council’s action authorizes the borough to enter the shared-services contract and positions Pompton Lakes to reimburse Wayne up front if needed, with borough staff reporting they will follow up with Wayne and monitor FEMA and NJOEM reimbursement activity.
Provisions and next steps in the contract include administrative coordination with Wayne and an agreed procedure for the borough to seek reimbursement from state or federal sources after making any interim payments to Wayne. No dollar amount for the buyouts was included in the council discussion at length; staff said the funds for the specific four properties are already committed by the state/federal program.
The council vote did not change policy on whether buyouts or elevations are preferred; officials said that determination remains with Blue Acres/FEMA and the property owners.“We do have assurances from Wayne and prior experience with this program that reimbursements occur,” Borough Administrator Michael Coley said during the discussion, according to the transcript.
The agreement was approved (outcome: approved).
