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Damage associated with Hurricane Sandy could cost between $12 million and $13 million, city manager Terence Reidy said at the Nov. 19 council meeting. The city will make an emergency appropriation to cover some costs now, and seek FEMA [Federal Emergency Management Agency] reimbursement in the long term.

The cost includes overtime costs, damage to city equipment, and damage to structures like the boardwalk and sewage treatment plant.

The city is first seeking a $7.1 million loan to “immediately go out and start the reconstruction process so we can get the boardwalk open by summer 2013 and begin repairs to the sewer plant,” Reidy said.

The special emergency bond will be funded over a five-year period, external auditor Dave Kaplan said at the meeting.

The city also plans to submit applications for FEMA reimbursement for damage, but that process can take up to nine months, Reidy said. FEMA may reimburse 100 percent or 75 percent of costs incurred due to the hurricane.

FEMA assesses costs based on when a city makes expenditures, not when the damage was incurred. Most of the money spent in Asbury Park was immediately before, during and after the storm, Reidy said. FEMA usually establishes a deadline after which 75 percent of money spent can be reimbursed. Prior to the deadline, 100 percent is reimbursed.

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