PA ID# 039-91010; Madera Irrigation District
DSR ID# Multiple; Force Account Equipment Rates
Citation: Appeal Brief; Second Appeal; Madera Irrigation District; FEMA-1046-DR-CA; PA # 039-91010
Cross -Reference: DSRs 16697, 27114, 27121 and 27122; Force Account Equipment Rates
Summary: The late winter storms of March 1995 caused damage to several of the water control facilities under the control of the Madera Irrigation District (District). The damage generally consisted of washed out irrigation canals, which were restored by the District utilizing their own equipment, including two different sized Gradalls. In September 1995, FEMA prepared the above DSRs for varying amounts to fund restoration of the canal banks with placement of unclassified fill. Upon review, FEMA reduced the funding of each DSR to reflect FEMA's applicable equipment rates. The State submitted the first appeal on July 12, 1996. The basis of the appeal is a disagreement with the substitution of FEMA equipment rates for the equipment rates of the District. The appeal was supported by historical acceptance of the District's equipment rates by another Federal agency, the Bureau of Reclamation. The Regional Director denied the first appeal on December 19, 1996, because a basis of equipment rates of the District was not established under state or local guidelines, and contained more than just operating costs, as required by 44 CFR 206.228 (a)(1). The State submitted a second appeal on April 1, 1997. The basis of the second appeal is the establishment of the equipment rates by approval of the rates by the District's Board of Directors, as well as independent auditors. In the second appeal, the subgrantee has provided a historical basis of the use of the equipment rates, but has not provided a basis for the establishment of equipment rates.
Issues: Has the subgrantee provided sufficient documentation to establish the justification of the use of local, hourly equipment rates in lieu of the FEMA equipment rates?
Findings: No. Details and documentation submitted were not sufficient to justify the use of the District's local equipment rate. The additional information submitted documented the use of the local rates, not the basis of the local rates.
Rationale: In accordance with 44 CFR Section 206.228 (a)(1)(ii), " If an applicant wishes to claim an equipment rate which exceeds the FEMA Schedule, it must document the basis for the rate and obtain FEMA approval of an alternate rate." No documentation was submitted to clarify the basis of the hourly operation rate.