Saturday, July 21, 2018

Cleaning Up: Inside the Wildfire Debris Removal Job That Cost Taxpayers $1.3 Billion

Last Oct. 23, as the wildfires that ignited two weeks earlier still smoldered across Northern California, a few hundred survivors gathered at a press conference in downtown Santa Rosa to hear an update on their next major hurdle: getting rid of the ash, toxic debris and waste left behind where their homes used to stand.

One after another, federal, state, and local officials reassured the anxious crowd. They promised that their devastated homes would be cleared safely, carefully and quickly.

“Leadership at the highest level ... are prepared to give us whatever else we need to achieve the goal of being done with this cleanup in early 2018,” Eric Lamoureux, a regional administrator from the Governor’s Office of Emergency Services, told the crowd. “Rest assured this is going to be done rapidly, efficiently and coordinated with you and your community leaders.”

Over the next seven and a half months, contractors worked across Sonoma, Mendocino, Napa and Lake counties, where they scraped 2 million tons of soil, concrete and burned-out appliances from 4,563 properties, loaded it all into dump trucks, and hauled it away.

In the end, the government-run program was the most expensive disaster cleanup in California history. The project, managed by the Army Corps of Engineers, totaled $1.3 billion, or an average of $280,000 per property. The bulk of that $1.3 billion comes from the Federal Emergency Management Agency (FEMA), but state and local governments are also responsible for about $130 million. (...)

Contractors under investigation

As the fires burned across Northern California, Gov. Jerry Brown saw that the cleanup would be a massive undertaking. He asked the federal government for help, and the Army Corps of Engineers was tasked with overseeing the job.

The Army Corps hired three prime contractors that it often relies on to respond to hurricanes, floods and wildfires -- AshBritt Inc., based in Deerfield Beach, Florida, Environmental Chemical Corp. (ECC), based in Burlingame, California, and Ceres Environmental, based in Sarasota, Florida.

The Army Corps said these “turn-key” disaster contractors are awarded multimillion-dollar contracts after a rigorous bidding process. It’s their job to hire and manage the subcontractors, truck drivers and construction workers necessary to complete the cleanup work.

But some of these contractors have also faced allegations of waste and fraud going back more than a decade.

The Government Accountability Office found that AshBritt Inc. and Ceres Environmental have overcharged taxpayers going back to the Hurricane Katrina cleanup in 2005. Florida’s attorney general is currently investigating AshBritt, Ceres and ECC for alleged price gouging during the Hurricane Irma cleanup in 2017.

ECC had never done a wildfire cleanup job before.

And yet, these prime contractors were awarded $1.3 billion and given responsibility for one of the most complex debris cleanup jobs in the country since 9/11. (...)

'Gold falling from the sky'

Critics say many of the problems with the project -- high cost, safety lapses and over-excavation -- are linked to the primary incentive structure that the Army Corps put into place: paying by the ton.

Contracts reviewed by KQED show that the Army Corps of Engineers paid upward of $350 per ton for wildfire debris. Dan’s truck could haul about 15 tons. That’s more than $5,000 per load -- a powerful financial incentive to haul as much heavy material as possible as quickly as possible.

Dan said he saw workers inflate their load weights with wet mud. Sonoma County Supervisor James Gore said he heard similar stories of subcontractors actually being directed to mix metal that should have been recycled into their loads to make them heavier.

“They [contractors] saw it as gold falling from the sky,” Dan said. “That is the biggest issue. They can’t pay tonnage on jobs like this and expect it to be done safely.”(...)

Holes where homes used to be

Stephen Krickl’s Fountaingrove property sits on a vernal creek and boasts sweeping views of Sonoma’s rolling hills. He and his wife used to talk about how they didn’t deserve the place.

“To me this is like the greatest lot,” he said. “It’s beautiful here. It's the sky. I miss the sky."

Krickl pointed to where his home used to stand. It’s a 6-foot deep depression that he affectionately called his “pond”.

That “pond” was created when contractors removed the foundation, soil and an entire concrete pad for Krickl’s garage, leaving behind a large hole.

This is another side effect of the incentive structure of Army Corps contracts. Paying contractors by the ton incentivizes them to haul away as much dirt, rocks and concrete as they can.

“It's such a needless waste of our society's resources to pay by the ton,” said Sonoma County contractor Tom Lynch, who was an early and vocal critic of the program.

So many sites were over-excavated that the Governor’s Office of Emergency Services recently launched a new program to refill the holes left behind by Army Corps contractors. That’s estimated to cost another $3.5 million.

by Sukey Lewis, KQED |  Read more:
Image: uncredited