Feds plan tough restrictions that could halt building in Natomas and require flood insurance.
After years of post-Hurricane Katrina pressure to improve the nation's defenses against catastrophic flooding, the federal government took a drastic step Tuesday.
The Federal Emergency Management Agency said it would place Sacramento's fast-growing Natomas in a flood hazard zone, essentially halting construction of homes, offices and stores until the levees are improved.
The FEMA announcement sets a long-awaited deadline for homeowners to buy flood insurance before rates rise.
The designation was greeted with anger and shock by Sacramento city officials who have supported bold levee repair plans but oppose restrictions on building.
City leaders questioned the evaluation conducted by the U.S. Army Corps of Engineers. They said they would seek "an act of Congress" to stop the federal action. And they said the new rules could cripple Sacramento's economy.
"I am very frustrated and very angry with the Army Corps of Engineers and FEMA because Sacramento has really become the poster child of what to do right in flood protection," Mayor Heather Fargo said at a hastily called news conference.
Natomas is a major economic driver for the city, which is facing a significant budget crisis. "I'm totally outraged," City Manager Ray Kerridge said Tuesday. "I don't know how the federal government can do this to this city."
North Natomas today accounts for 47 percent of the development in the city of Sacramento.
Fargo said she wasn't sure the city would appeal, but it would seek help from U.S. Rep. Doris Matsui. "The one solution left that I'm aware of is an act of Congress," she said.
Unlike her late husband, however, it doesn't look as if Matsui will lead a charge to make FEMA back off. In the 1980s, U.S. Reps. Robert Matsui and Vic Fazio pushed through legislation that prevented FEMA from slapping building restrictions on much of Sacramento. But that was before Hurricane Katrina destroyed much of New Orleans.
"Public safety is No. 1," Matsui spokeswoman Lauren Smith said Tuesday. She said the congresswoman was "exploring avenues" that would allow critical projects, such as a planned North Natomas fire station, to proceed.
Sacramento is considered the urban area most vulnerable to catastrophic flooding in the nation.
In 1998, after an eight-year building moratorium, the corps said the Natomas levees met its minimal 1-in-100 flood protection standard, or the ability to withstand a flood with a 1 percent chance of striking in any given year.
Then, in July 2006, the corps said the levees didn't meet that standard after all, despite the $57 million in upgrades during the 1990s.
On Tuesday, the corps said Natomas levees aren't strong enough to withstand even a 30-year storm, the type of event that has a 3 percent chance of happening any given year.
Due to the limited time available for this study, the corps closely examined only two Sacramento River levee sections.
The corps found seepage and unstable slopes in both.
"That's enough information right there for us to not certify the levees," said Roger Henderson, assistant geotechnical branch chief for the corps.
In one stretch, three sites were up to 4 inches too short to hold back a 30-year flood.
FEMA proposes remapping the basin as an "AE Zone." That means all new construction or substantial remodeling must be elevated above higher flood levels now thought possible. In Natomas, that could mean buildings must be raised 20 feet – a prohibitively expensive requirement that would create a de facto building moratorium. The decision is likely to become final in December.
City and county officials cannot appeal the AE zone, but they can appeal the elevation, said FEMA spokesman Frank Mansell.
The new Natomas designation also means residents with federally backed mortgages must buy flood insurance. FEMA recommends anyone who does not already have flood insurance buy it now, or face higher rates after December. A policy covering a structure for $250,000 costs $769 per year. After December, it will cost $1,390, Mansell said.
Building in Natomas can proceed as long as a project receives permits by December, when the new maps become effective, officials said.
William Thomas, the city's development director, said the new designation could halt 8,200 housing units in North Natomas that have been approved but haven't received building permits. An additional half-billion dollars in office and retail construction may be affected.
The federal decision could delay public improvements such as a library, a high school and fire station planned for Natomas, Fargo said.
One major project that could be affected is the $1.3 billion expansion of Sacramento International Airport. That project includes a new four-story terminal replacing the Terminal B complex, as well as a hotel and multistory garage.
Sacramento County airport officials said Tuesday they have met with FEMA officials and believe they still will be able to move forward. Airports Director Hardy Acree said his agency is on a fast track to obtain building permits this spring. Construction is scheduled for summer.
Officials at the Sacramento Area Flood Control Agency said Tuesday's announcement won't change their plans for levee upgrades in Natomas. Executive Director Stein Buer said his agency has worked closely with the corps to understand its results and changing standards.
SAFCA hopes to start construction this summer on the first phase of a $400 million levee repair project in Natomas. It is designed to restore 100-year protection by 2010, and achieve 200-year protection by 2012.
But that project has yet to be approved by state and federal officials, and is subject to a lawsuit.
Tuesday's news left some Natomas property owners fuming at the slow progress in achieving flood protection for their area.
David DeLuz said he bought his North Natomas home in 2001 with the understanding that millions of dollars had been spent making the area safe.
DeLuz said homeowners should not have to pay for flood projects needed because of shifting standards and poor planning.
"We've got a situation where property values are going to be affected," DeLuz said. "What's going to happen to the demand for a house that exists in a 30-year floodplain? Homeowners are going to be left holding the bag."
Sacbee.com
January 15th, 2008
