SENECA — More than three-and-a-half years after an EF3 tornado ripped through Seneca in April 2020, the city of Seneca is still battling with a federal agency over millions of dollars in reimbursements for its response to the tornado.
Seneca city administrator Scott Moulder told city council the city has been approved for more than $3 million — and received a little more than $2 million in reimbursements for the tornado damage out of about $10 million to $12 million in total funds submitted to the U.S. Federal Management Agency (FEMA). The federal agency has also denied two appeals by the city in the process.
City treasurer Josh Riches told The Journal earlier on Tuesday he estimates the city has about $7.8 million in reimbursement requests that have been denied.
Rather than appeal a third and final time, Moulder recommended Tuesday night the city hire a law firm to take the case to arbitration.
Moulder told council arbitration is the city’s last hope in the process.
“We have a single choice that we can make from two different options. It’s one or the other, you can’t do one and then come back and do the other later,” he said. We have two choices. No. 1, we can submit our final and last appeal. And if they say no, again, we get no money. Or we can choose the arbitration route. FEMA has a separate arbitration board that’s been set up of independent attorneys and other specialists. You can actually hire an attorney to go in with you to argue your case to this arbitration board. Their decision is final as well. FEMA can’t override them. It’s a separate independent arbitration.”
Moulder recommended Baker Donelson, a nationwide company that started in Tennessee with offices in Columbia and Charleston, to represent the city in the arbitration process. He added the firm has experience in FEMA arbitration hearings. He said the paperwork for the process would be due to FEMA by Nov. 24.
“I don’t know when the arbitration would be but I can tell you we’re going to have to travel, probably to (Washington) D.C.— wherever the arbitration will take place — we’ll have to travel to do it in person. But we are recommending, as a staff, that we go forward with the arbitration model. We feel that’s our best chance.”
“We’re up against the wall,” Councilman Ernest “E.” Riley said. “Basically, if we don’t take any action, we’re stuck.”
