DeBary approves $768,721 settlement with debris contractor; remaining funds escrowed pending FEMA review

The City of DeBary approved a mediation settlement Tuesday that will send $768,721.48 to DRC Emergency Services LLC for debris removal after Hurricane Ian and place $192,180.36 into escrow while federal reimbursement is determined.

City Manager (unnamed) explained that FEMA and the U.S. Army Corps of Engineers audited the city’s debris operations and found discrepancies between on-site estimates and the volume of debris recorded. The Corps applies a standard comparing ground volume to hauled mulch — staff described the standard as roughly 4:1 (mulch-to-ground cubic yards) for some operations, though other jurisdictions had used ratios from 6:1 to 8:1 depending on debris type.

The city initially paid $430,411.00 during the response; mediation and review produced an owed amount of $960,901.84 for 57,000 cubic yards (rounded in staff remarks). City staff said the parties agreed to split the difference and settled on $768,721.48 payable now, with the $192,180.36 difference placed in escrow pending FEMA’s final determination on eligible reimbursement. The funds will be drawn from general-fund reserves until FEMA completes its review.

City staff said the settlement resolves disputes over measurement methodology and protects federal-reimbursement eligibility while the Army Corps and FEMA complete their audit. The council authorized the city manager to execute the mediation and escrow agreements.

Council members discussed improvements to internal controls and monitoring since the Ian response; staff noted the city has changed monitoring and debris contractors since that event and is aiming to avoid similar discrepancies in future disasters.