PA ID# 037-70000; City of Santa Monica
DSR ID# 74085; Lincoln Park Tennis Court Building
Citation: Appeal Analysis; Second Appeal; City of Santa Monica; California;
FEMA-1008-DR-CA, PA 037-70000
Cross Reference: DSR 74085; Engineering and Design Costs; Lincoln Park Tennis Court Building
Facts:Following the Northridge Earthquake, FEMA prepared DSR 74085 for
$7,860 for the City of Santa Monica to fund earthquake-related repairs to the Lincoln Park Tennis Court Building. This amount included $566 for engineering and design services. During review, FEMA determined that the costs of engineering and design services were ineligible because the scope of eligible work does not warrant these services. Subsequently, DSR 74085 was approved for $7,294 to cover eligible repair and construction inspection costs. In the first appeal, the City claimed that the project required a formal bidding process and construction management, that FEMA reinstated similar costs as a result of a prior appeal, and that Mr. Krimm's January 19, 1996, letter states that engineering and design and bid preparation costs are eligible. The DRM denied the first appeal because the scope of work of DSR 74085 consists of minor repairs of cracks in tile and drywall and other miscellaneous repairs, which do not justify the need for any engineering and design services, with the exception of construction inspection. In the second appeal, the subgrantee repeats the same arguments of the first appeal.
Does the nature of the work necessary to repair the disaster-related damage identified in DSR 74085 warrant engineering and design services?
Is the preparation of requests for proposals and construction documents, and contractor supervision eligible for public assistance funding?
No. The costs associated with those services are subject to evaluation for their reasonableness in relation to the work. The DRM believes that the costs are not reasonable. The subgrantee has not provided any compelling information substantiating that the engineering and design fees are warranted.
Yes. These are eligible project management activities. However, the applicant did not submit an appeal for cost overruns on all small projects prior to the deadline. Furthermore, there is no evidence that the costs claimed were connected to the eligible project management activities.