There is no reason except that people weren't paying attention and the govt. didn't want to evacuate. SHAME! THE BLOOD OF THE INNOCENT WHO DROWNED ARE ON THE HANDS AND HEADS OF THE LOCAL POWER STRUCTURE!
Where the gov't failed is partly on the evacuation side, and to a large extent on the side of being completely unprepared to answer "what's the worst that could happen?" It's not like this failure mode was unexpected. They just weren't able to respond when it happened.
They knew that evacuating everyone was impossible to do in that short amount of time and they didn't want to be responsible for having busloads of people sitting in traffic on freeways when the storm hit.