Landrieu urges arbitration in Livingston Parish’s Gustav debris debacle

Sen. Mary Landrieu says a provision she authored allowing Livingston Parish to seek third-party arbitration for reimbursement of roughly $66 million in disputed debris removal work, following Hurricane Gustav, will be signed into law shortly, according to a press release issued by her office today. FEMA has steadfastly refused to reimburse the parish for the cleanup; the agency claims the costs were bloated, it was asked to pay for work that was not necessary, and that responsible parties did not obtain the necessary permits for the work, among other complaints. It’s an issue that’s as twisted and murky as the debris and floodwaters left behind by the storm that swept through on Sept. 1, 2008. In her statement today, Landrieu says, “The long delay has had a serious financial impact on the parish and local contractors,” but does not address the issue of fault that the parish and contractors have debated for years. However, Landrieu does say she believes the parish is eligible for reimbursement under the law. “A third party review gives Livingston Parish a path forward to seek a different outcome and secure reimbursement,” reads the release. Under Landrieu’s provision, which is part of a six-month federal spending bill, the Inspector General of the Department of Homeland Security would conduct a review of the situation, and if it is agreed that the costs are eligible for reimbursement, the case would be sent on for third-party arbitration. For background on the issue, read a pair of Business Report stories on the Gustav debris controversy from earlier this year, here and here.