PA ID# 037-70000; City of Santa Monica
DSR ID# 99961; Police Department Building
Citation: Appeal Analysis; Second Appeal; City of Santa Monica; California;
FEMA-1008-DR-CA, PA 037-70000
Cross Reference: DSR 99961; Engineering and Design Costs; Police Department Building
Facts: Following the Northridge Earthquake, FEMA prepared DSR 99961 for $38,851 to fund earthquake-related repairs to the City of Santa Monica's Police Building. During review of the DSR, FEMA determined that the costs for engineering/design/bid preparation ($2,800) and construction inspection ($1,050) were ineligible. The eligible cost for DSR 99961 was then reduced to $35,001. 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 the City's appeal of DSR 99769, and that Mr. Krimm's January 19, 1996, letter states that engineering and design and bid preparation costs are eligible. The Disaster Recovery Manager (DRM) denied the engineering and design services on first appeal because the scope of work of DSR 99961 consisted of repair of wall cracks and miscellaneous repairs, which did not justify the need for these services. However, the DRM determined that the construction inspection services were eligible and reinstated $1,050 to cover those costs. In the second appeal, the subgrantee is requesting the reinstatement of the deleted engineering/design/bid preparation costs. The subgrantee cites FEMA's guidance materials on engineering and design services and Mr. Krimm's January 19, 1996, letter as justification.
Issue: Does the nature of the work necessary to repair the disaster-related damage identified in DSR 99961 warrant engineering and design services?
Findings: 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.