Force Account Straight Time Charges
Appeal Brief
Appeal Letter
Citation: Appeal Brief; Second Appeal; California Department of Water Resources; FEMA-1155-DR-CA; PA #000-92004
Cross Reference: DSRs 98686 and 98688; Force Account Labor; Straight-Time Labor Costs; Special Exception, Non-State Funded; Category B;
Summary: As a result of late winter storms of 1996, the California Department of Water Resources (DWR) performed flood fighting efforts using State Water Project (SWP) personnel. FEMA approved DSRs 98686 and 98688 for $244,443 and $174,644 to fund force account labor, equipment and materials for sandbagging, search and rescue and patrolling of levees owned and maintained by DWR. During review, it was determined that SWP personnel were State employees and the amount of their regular-time salaries totaling $23,856 had been deducted from the DSRs. With the first appeal, the DWR indicated that the straight-time salaries should be eligible because State Water Project Contractors, rather than taxpayers of the State, fund the SWP. The appeal requested $5,212 for DSR 98688 and $18,644 for DSR 98688. The Regional Director denied the appeal because the straight-time or regular-time salaries and benefits of the SWP permanently employed personnel are not eligible in calculating the cost of eligible emergency work (44 CFR 206.228 (a)(4)). The State forwarded the second appeal on May 20, 1999 requesting a total of $23,856. The basis of the appeal is that the work was completed by the specially funded personnel (SWP), which was more cost effective than "off the street" hires and it required additional cost to be incurred by the State. Additionally, the payment of their regular-time salaries should be an exception to the force account regulation. No additional documentation was submitted other than a request for an exception to the force account regulation, as was granted to Los Angeles for the Northridge Earthquake, because the use of SWP personnel is more cost effective.
Issue:
Appeal Brief
| Disaster | FEMA-1155-DR |
| Applicant | California Department of Water Resources |
| Appeal Type | Second |
| PA ID# | 000-92004 |
| PW ID# | 98686,98688 |
| Date Signed | 1999-11-08T05:00:00 |
Cross Reference: DSRs 98686 and 98688; Force Account Labor; Straight-Time Labor Costs; Special Exception, Non-State Funded; Category B;
Summary: As a result of late winter storms of 1996, the California Department of Water Resources (DWR) performed flood fighting efforts using State Water Project (SWP) personnel. FEMA approved DSRs 98686 and 98688 for $244,443 and $174,644 to fund force account labor, equipment and materials for sandbagging, search and rescue and patrolling of levees owned and maintained by DWR. During review, it was determined that SWP personnel were State employees and the amount of their regular-time salaries totaling $23,856 had been deducted from the DSRs. With the first appeal, the DWR indicated that the straight-time salaries should be eligible because State Water Project Contractors, rather than taxpayers of the State, fund the SWP. The appeal requested $5,212 for DSR 98688 and $18,644 for DSR 98688. The Regional Director denied the appeal because the straight-time or regular-time salaries and benefits of the SWP permanently employed personnel are not eligible in calculating the cost of eligible emergency work (44 CFR 206.228 (a)(4)). The State forwarded the second appeal on May 20, 1999 requesting a total of $23,856. The basis of the appeal is that the work was completed by the specially funded personnel (SWP), which was more cost effective than "off the street" hires and it required additional cost to be incurred by the State. Additionally, the payment of their regular-time salaries should be an exception to the force account regulation. No additional documentation was submitted other than a request for an exception to the force account regulation, as was granted to Los Angeles for the Northridge Earthquake, because the use of SWP personnel is more cost effective.
Issue:
- Are the SWP full time state employees?
- Should an exception to the force account regulation be provided?
- Yes. Even though the SWP are funded from special funds, they are full-time State employees and covered by the force account regulations.
- No. The exception granted to the City of Los Angeles was a one-time special exception that was based on extraordinary circumstances.
Appeal Letter
November 8, 1999
Mr. D. A. Christian
Governor's Authorized Representative
Governor's Office of Emergency Services
P.O. Box 419023
Rancho Cordova, California 95741
Re: Second Appeal - California Department of Water Resources, Force Account Straight Time Charges, FEMA-1155-DR-CA, DSRs 98686 and 98688
Dear Mr. Christian:
This is in response to your letter dated May 20, 1999, to the Federal Emergency Management Agency (FEMA). With that letter, you forwarded a second appeal of Damage Survey Reports (DSRs) 98686 and 98688 under FEMA-1155-DR-CA on behalf of the California Department of Water Resources (DWR). The DWR is requesting a total of $23,856 for force account straight time costs for eligible emergency work.
As a result of late winter storms of 1996, the DWR performed flood-fighting activities using State Water Project (SWP) personnel. FEMA approved DSRs 98686 and 98688 for $244,443 and $174,644 to fund force account labor, equipment and materials for sandbagging, search and rescue and patrolling of levees owned and maintained by DWR. During review, it was determined that SWP personnel were State employees and the amount of their regular-time salaries, totaling $23,856, was deducted from the DSRs.
With the first appeal, the DWR indicated that the straight-time salaries should be eligible because State Water Project Contractors, rather than taxpayers of the State, fund the SWP. The appeal requested $5,212 for DSR 98686 and $18,644 for DSR 98688. The Regional Director denied the appeal because the straight-time or regular-time salaries and benefits of the SWP permanently employed personnel are not eligible in calculating the cost of eligible emergency work in accordance with Title 44 of the Code of Federal Regulations section 206.228 (a)(4)).
The State forwarded the second appeal on May 20, 1999 requesting a total of $23,856. The basis of the appeal is that the work was completed by the specially funded personnel, which was more cost effective than "off the street" hires, and it required additional cost to be incurred by the State. Additionally, the payment of their regular-time salaries should be an exception to the force account regulation. No additional documentation was submitted other than a request for an exception to the force account regulation, as was granted to Los Angeles for the Northridge earthquake, because the use of SWP personnel is more cost effective.
The issue of this appeal is whether or not the SWP personnel are full-time State employees regulated under 44 CFR 206.228. Additionally, the DWR is requesting an exception to the force account regulations.
The DWR indicated in its appeal submission that the DWR employees meet the definition of force account personnel in accordance with 44 CFR 206.228 (a)(4). However, the DWR's contention is that since the Water Contractors fund the SWP, the SWP personnel are in essence employees of the State Water Project Contractors. When employed for non-Water Contractor work, their salaries become an additional cost to the State, therefore, the personnel costs should be an exception to regulation. The regulations are very clear. Regular-time salaries of an applicant's permanently employed personnel performing emergency work are not eligible costs. The funding of the City of Los Angeles's permanent employees for emergency work was a one-time special occurrence that was based on extraordinary circumstances. An exception to the regulation is not warranted in this case.
The SWP personnel are full-time State employees. Force account labor costs are governed by 44 CFR 206.228 (a)(4). Therefore, I am denying the appeal.
Please inform the applicant of my determination. 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.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
cc: Martha Whetstone
Regional Director
FEMA Region IX
Mr. D. A. Christian
Governor's Authorized Representative
Governor's Office of Emergency Services
P.O. Box 419023
Rancho Cordova, California 95741
Re: Second Appeal - California Department of Water Resources, Force Account Straight Time Charges, FEMA-1155-DR-CA, DSRs 98686 and 98688
Dear Mr. Christian:
This is in response to your letter dated May 20, 1999, to the Federal Emergency Management Agency (FEMA). With that letter, you forwarded a second appeal of Damage Survey Reports (DSRs) 98686 and 98688 under FEMA-1155-DR-CA on behalf of the California Department of Water Resources (DWR). The DWR is requesting a total of $23,856 for force account straight time costs for eligible emergency work.
As a result of late winter storms of 1996, the DWR performed flood-fighting activities using State Water Project (SWP) personnel. FEMA approved DSRs 98686 and 98688 for $244,443 and $174,644 to fund force account labor, equipment and materials for sandbagging, search and rescue and patrolling of levees owned and maintained by DWR. During review, it was determined that SWP personnel were State employees and the amount of their regular-time salaries, totaling $23,856, was deducted from the DSRs.
With the first appeal, the DWR indicated that the straight-time salaries should be eligible because State Water Project Contractors, rather than taxpayers of the State, fund the SWP. The appeal requested $5,212 for DSR 98686 and $18,644 for DSR 98688. The Regional Director denied the appeal because the straight-time or regular-time salaries and benefits of the SWP permanently employed personnel are not eligible in calculating the cost of eligible emergency work in accordance with Title 44 of the Code of Federal Regulations section 206.228 (a)(4)).
The State forwarded the second appeal on May 20, 1999 requesting a total of $23,856. The basis of the appeal is that the work was completed by the specially funded personnel, which was more cost effective than "off the street" hires, and it required additional cost to be incurred by the State. Additionally, the payment of their regular-time salaries should be an exception to the force account regulation. No additional documentation was submitted other than a request for an exception to the force account regulation, as was granted to Los Angeles for the Northridge earthquake, because the use of SWP personnel is more cost effective.
The issue of this appeal is whether or not the SWP personnel are full-time State employees regulated under 44 CFR 206.228. Additionally, the DWR is requesting an exception to the force account regulations.
The DWR indicated in its appeal submission that the DWR employees meet the definition of force account personnel in accordance with 44 CFR 206.228 (a)(4). However, the DWR's contention is that since the Water Contractors fund the SWP, the SWP personnel are in essence employees of the State Water Project Contractors. When employed for non-Water Contractor work, their salaries become an additional cost to the State, therefore, the personnel costs should be an exception to regulation. The regulations are very clear. Regular-time salaries of an applicant's permanently employed personnel performing emergency work are not eligible costs. The funding of the City of Los Angeles's permanent employees for emergency work was a one-time special occurrence that was based on extraordinary circumstances. An exception to the regulation is not warranted in this case.
The SWP personnel are full-time State employees. Force account labor costs are governed by 44 CFR 206.228 (a)(4). Therefore, I am denying the appeal.
Please inform the applicant of my determination. 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.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
cc: Martha Whetstone
Regional Director
FEMA Region IX
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