NSPO
Appeal Brief
Appeal Letter
Citation: FEMA-1046-DR-CA, P.A. 041-23168, Town of Fairfax, Net Small Projects Overrun
Cross-reference: Cost Overrun, Small Project, Time Extension
Summary: As a result of winter storms in 1995, the Town of Fairfax (Town) initiated 11 small projects. The small projects were obligated for a total of $122,320, though the final cost was $155,675. (The Project Completion and Certification Report signed July 27, 1998, incorrectly calculated this figure as $154,004.) The net small project overrun was $33,355. The final small project was completed by December 1, 1995. According to 44 CFR 206.204(e), the Town had 60 days from the date of the final small project completion to appeal for reimbursement of its net small project cost overrun. FEMA extended this deadline to August 31, 1997. The Town's application was closed out on August 31, 1998, without an adjustment to the small project funding because a net small project overrun request was not received before the deadline. The Town submitted its first appeal directly to FEMA on September 10, 1998. FEMA received the appeal from the Governor's Office of Emergency Services (OES) on November 16, 1998. The Town claimed that it had complied with 44 CFR 206.204(e) by submitting an overrun request dated June 4, 1997. This document was not received by OES and not forwarded to FEMA. A copy of the cover letter was provided with the appeal. FEMA denied the appeal on December 17, 1998, based on the fact that FEMA did not receive the net small project overrun request prior to the deadline. The Town submitted its second appeal on January 8, 1998. It listed a chronology of events related to its request and claimed that FEMA did not receive the net small project overrun request prior to the August 31, 1997, deadline because of "a breakdown in the system." The Town provided no new information to support its appeal.
Issues: 1) Is the Town's appeal for a net small project overrun eligible according to 44 CFR 206.204(e)?
Findings: 1) No.
Rationale: 44 CFR 206.204(e)
Appeal Brief
| Disaster | FEMA-1046-DR |
| Applicant | Town of Fairfax |
| Appeal Type | Second |
| PA ID# | 041-23168 |
| PW ID# | N/A |
| Date Signed | 1999-06-07T04:00:00 |
Cross-reference: Cost Overrun, Small Project, Time Extension
Summary: As a result of winter storms in 1995, the Town of Fairfax (Town) initiated 11 small projects. The small projects were obligated for a total of $122,320, though the final cost was $155,675. (The Project Completion and Certification Report signed July 27, 1998, incorrectly calculated this figure as $154,004.) The net small project overrun was $33,355. The final small project was completed by December 1, 1995. According to 44 CFR 206.204(e), the Town had 60 days from the date of the final small project completion to appeal for reimbursement of its net small project cost overrun. FEMA extended this deadline to August 31, 1997. The Town's application was closed out on August 31, 1998, without an adjustment to the small project funding because a net small project overrun request was not received before the deadline. The Town submitted its first appeal directly to FEMA on September 10, 1998. FEMA received the appeal from the Governor's Office of Emergency Services (OES) on November 16, 1998. The Town claimed that it had complied with 44 CFR 206.204(e) by submitting an overrun request dated June 4, 1997. This document was not received by OES and not forwarded to FEMA. A copy of the cover letter was provided with the appeal. FEMA denied the appeal on December 17, 1998, based on the fact that FEMA did not receive the net small project overrun request prior to the deadline. The Town submitted its second appeal on January 8, 1998. It listed a chronology of events related to its request and claimed that FEMA did not receive the net small project overrun request prior to the August 31, 1997, deadline because of "a breakdown in the system." The Town provided no new information to support its appeal.
Issues: 1) Is the Town's appeal for a net small project overrun eligible according to 44 CFR 206.204(e)?
Findings: 1) No.
Rationale: 44 CFR 206.204(e)
Appeal Letter
June 7, 1999
D.A. Christian
Governor's Authorized Representative
Governor's Office of Emergency Services
Post Office Box 419023
Rancho Cordova, California 95741-9023
Re: Second Appeal - Town of Fairfax, Net Small Project Overrun, FEMA-1046-DR-CA
Dear Mr. Christian:
This is in response to the referenced second appeal forwarded on March 11, 1999. Following winter storms in 1995, the Town of Fairfax (Town) initiated 11 small projects. The Town is asking for reimbursement of $33,355, the net small project overrun.
Damage Survey Report (DSR) 74902 cost $639 more than the amount obligated. The majority of the overrun resulted from DSR 98989, which was originally obligated for $21,593, but cost $54,309. On November 27, 1995, the Town informed the Governor's Office of Emergency Services (OES) of the additional cost for DSR 98989. OES requested a supplemental DSR on February 21, 1996. FEMA formally responded on April 25, 1997, stating that FEMA does not consider cost overruns for individual small projects; therefore, the supplement request could not be approved. FEMA advised that a net small project overrun request must be submitted.
According to 44 CFR 206.204(e), requests for net small project cost overruns must be submitted within 60 days following the completion of all small projects. The Town completed its final small project on December 1, 1995. FEMA extended the deadline for submission of net small project overrun requests to August 31, 1997. When FEMA closed the Town's application on August 31, 1998, no adjustment was made to the small project funding because FEMA did not receive a net small project overrun request before the deadline, one year prior.
The Town submitted its first appeal directly to FEMA on September 10, 1998. FEMA received the appeal from OES on November 16, 1998. The Town claimed that it complied with the
August 31, 1997, deadline by submitting a net small project overrun request dated June 4, 1997. In its transmittal letter, OES stated that it had not received this document and therefore did not forward it to FEMA. In its response dated December 17, 1998, FEMA denied the appeal based on the fact that a net small project overrun was not received by the regulatory deadline.
The Town forwarded its second appeal to OES on January 8, 1998. It provided a chronology of related events, but submitted no new information. It claimed that "a breakdown in the system" was responsible for the missing net small project overrun request, and that this breakdown was not a result of its actions.
The basis of the Town's claim is FEMA's knowledge of the net small project overrun prior to the August 31, 1997, deadline. For example, the Town refers to a request made by a FEMA Region IX employee for information pertaining to DSR 98989. In fact, FEMA records show that this request was made in reference to DSR 98986, a large project. The Town suggests, "the information is there whether or not it has a title page of net small project overrun. FEMA should also have information on all the other small projects." However, it is not FEMA's responsibility to reconcile net small project cost overruns without a request.
The procedure for small project cost overruns is clearly stated in 44 CFR 206.204(e):
"FEMA will not normally review an overrun for an individual small project. The normal procedure for small projects will be that when a subgrantee discovers a significant overrun related to the total final cost for all small projects, the subgrantee may submit an appeal for additional funding . within 60 days following the completion of all its small projects."
FEMA informed OES of this requirement when the supplemental DSR request was denied on April 23, 1997. In addition, the 60-day deadline was extended to August 31, 1997. The Town stated in its first appeal that it was aware of the deadline on May 23, 1997. OES did not receive the letter dated June 4, 1997, and therefore did not forward a net small project overrun request. When the Town's application was closed one year later, FEMA had not received the request. Because FEMA did not receive a net small project overrun request by the August 31, 1997, deadline, this appeal is denied.
Please inform the applicant of my decision. In accordance with the appeal procedure governing appeal decisions made on or after May 8, 1998, my decision constitutes the final decision on this matter. The current appeal procedure was published as a final rule in the Federal Register on April 8, 1998. It amends 44 CFR 206.206, which constitutes the final level of appeal in accordance with 44 CFR 206.206(e).
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
cc: Martha Whetstone
Regional Director
FEMA Region IX
D.A. Christian
Governor's Authorized Representative
Governor's Office of Emergency Services
Post Office Box 419023
Rancho Cordova, California 95741-9023
Re: Second Appeal - Town of Fairfax, Net Small Project Overrun, FEMA-1046-DR-CA
Dear Mr. Christian:
This is in response to the referenced second appeal forwarded on March 11, 1999. Following winter storms in 1995, the Town of Fairfax (Town) initiated 11 small projects. The Town is asking for reimbursement of $33,355, the net small project overrun.
Damage Survey Report (DSR) 74902 cost $639 more than the amount obligated. The majority of the overrun resulted from DSR 98989, which was originally obligated for $21,593, but cost $54,309. On November 27, 1995, the Town informed the Governor's Office of Emergency Services (OES) of the additional cost for DSR 98989. OES requested a supplemental DSR on February 21, 1996. FEMA formally responded on April 25, 1997, stating that FEMA does not consider cost overruns for individual small projects; therefore, the supplement request could not be approved. FEMA advised that a net small project overrun request must be submitted.
According to 44 CFR 206.204(e), requests for net small project cost overruns must be submitted within 60 days following the completion of all small projects. The Town completed its final small project on December 1, 1995. FEMA extended the deadline for submission of net small project overrun requests to August 31, 1997. When FEMA closed the Town's application on August 31, 1998, no adjustment was made to the small project funding because FEMA did not receive a net small project overrun request before the deadline, one year prior.
The Town submitted its first appeal directly to FEMA on September 10, 1998. FEMA received the appeal from OES on November 16, 1998. The Town claimed that it complied with the
August 31, 1997, deadline by submitting a net small project overrun request dated June 4, 1997. In its transmittal letter, OES stated that it had not received this document and therefore did not forward it to FEMA. In its response dated December 17, 1998, FEMA denied the appeal based on the fact that a net small project overrun was not received by the regulatory deadline.
The Town forwarded its second appeal to OES on January 8, 1998. It provided a chronology of related events, but submitted no new information. It claimed that "a breakdown in the system" was responsible for the missing net small project overrun request, and that this breakdown was not a result of its actions.
The basis of the Town's claim is FEMA's knowledge of the net small project overrun prior to the August 31, 1997, deadline. For example, the Town refers to a request made by a FEMA Region IX employee for information pertaining to DSR 98989. In fact, FEMA records show that this request was made in reference to DSR 98986, a large project. The Town suggests, "the information is there whether or not it has a title page of net small project overrun. FEMA should also have information on all the other small projects." However, it is not FEMA's responsibility to reconcile net small project cost overruns without a request.
The procedure for small project cost overruns is clearly stated in 44 CFR 206.204(e):
FEMA informed OES of this requirement when the supplemental DSR request was denied on April 23, 1997. In addition, the 60-day deadline was extended to August 31, 1997. The Town stated in its first appeal that it was aware of the deadline on May 23, 1997. OES did not receive the letter dated June 4, 1997, and therefore did not forward a net small project overrun request. When the Town's application was closed one year later, FEMA had not received the request. Because FEMA did not receive a net small project overrun request by the August 31, 1997, deadline, this appeal is denied.
Please inform the applicant of my decision. In accordance with the appeal procedure governing appeal decisions made on or after May 8, 1998, my decision constitutes the final decision on this matter. The current appeal procedure was published as a final rule in the Federal Register on April 8, 1998. It amends 44 CFR 206.206, which constitutes the final level of appeal in accordance with 44 CFR 206.206(e).
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
cc: Martha Whetstone
Regional Director
FEMA Region IX
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