Emergency Water Draining

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1008-DR
ApplicantCity of Los Angeles, Department of General Services
Appeal TypeSecond
PA ID#037-91085
PW ID#48292
Date Signed1998-02-06T05:00:00
Citation: Appeal Brief; Second Appeal; City of Los Angeles; Department of General Services; FEMA-1008-DR-CA; PA #037-91085

Cross-Reference: DSR 48292; Force Account Labor; Category B

Summary: Following the Northridge Earthquake of 1994 in the City of Los Angeles (City), California, FEMA prepared DSR 48292 for $3,249 to remove water from pools to protect the health and safety of the public. The DSR covered the costs of overtime and benefits for force account labor from the City's Department of General Services (GSD), but did not include straight-time force account labor costs. The State forwarded the City's non-concurrence with FEMA's determination not to fund straight-time force account labor costs for DSR 48292 on July 13, 1996. Since this non-concurrence was received after the approval of the DSR, FEMA considered it a first appeal. The City contended that the crew performing the work was diverted from its regular work, therefore the associated straight-time force account labor costs should be eligible for FEMA funding. FEMA denied the first appeal citing 44 CFR 206.228 (a)(4), which states that the straight-time or regular-time salaries and benefits of a subgrantee's permanently employed personnel are not eligible in calculating the cost of eligible work under sections 403 and 407 of the Stafford Act. The State forwarded the second appeal on August 20, 1997. In the second appeal the City is requesting $4,965 for 190 hours of straight-time labor costs for GSD personnel to remove water from nine pools. The basis of this appeal is that GSD acted as the City's Department of Building and Safety's contractor of choice and that it was the City's understanding that straight-time labor costs resulting from emergency activities, which divert work crews from their regular work, are eligible. The State considers the subject work ineligible and does not support the second appeal.

Issue: Are straight-time force account labor costs eligible for FEMA funding when the force account labor (permanent employees) performs emergency work?

Findings: No. The straight-time force account labor costs for employees performing emergency work are not eligible for reimbursement.

Rationale: 44 CFR 206.228 (a)(4) establishes eligibility criteria for force account labor costs.

Appeal Letter

February 6, 1998

Mr. Gilbert Najera
Governor's Authorized Representative
Governor's Office of Emergency Services
74 North Pasadena Avenue, West Annex, Third Floor
Pasadena, California 91103

Dear Mr. Najera:

This is in response to your letter dated August 20, 1997, to the Federal Emergency Management Agency (FEMA) forwarding a second appeal of damage survey report (DSR) 48292 under FEMA- 1008-DR-CA on behalf of the City of Los Angeles (City). The City is requesting $4,965 for reimbursement of straight-time force account labor costs for emergency work.

Following the Northridge Earthquake of 1994 in the City of Los Angeles, California, FEMA prepared DSR 48292 for $3,249 to remove water from nine pools to protect the health and safety of the public. The DSR covered the costs of overtime and overtime benefits for force account labor for employees of the City's Department of General Services (GSD), but did not include costs for straight-time labor. The State forwarded the City's non-concurrence with FEMA's determination not to fund straight-time force account labor costs for DSR 48292 on July 13, 1996. Since this non-concurrence was received after the approval of the DSR, FEMA considered it a first appeal. The City contended that since the crew performing the remaining work was diverted from its regular work, the associated straight-time force account labor costs should be eligible for FEMA funding. FEMA denied the appeal citing Title 44 of the Code of Federal Regulations (CFR), section 206.228 (a)(4), which states that the straight-time or regular-time salaries and benefits of a subgrantee's permanently employed personnel are not eligible in calculating the cost of eligible work under sections 403 and 407 of the Stafford Act.

The State, which does not support the second appeal, forwarded the appeal on August 20, 1997. The basis of this appeal is that GSD acted as the City's Department of Building and Safety contractor of choice. The City contends that it is its understanding that regular labor costs resulting from emergency activity, which divert work crews from their regular work, are eligible. The City further contends that the benefits gained from their force account labor include quick response time and considerable cost savings due to the large demand for small contractors. Supporting documentation includes labor records for 190 hours of labor, totaling $4,964. 44 CFR 206.228 (a)(4) is clear regarding the eligibility of straight-time of force account labor. Straight-time or regular-time salaries and benefits of a subgrantee's permanently employed personnel who perform emergency work are not eligible for reimbursement. We have reviewed the documentation submitted with the second appeal and have determined that the Federal Coordinating Officer's decision on the first appeal is consistent with program statute and regulations. Therefore, I am denying the second appeal.

Please inform the applicant of my determination. The applicant may submit a third appeal to the Director of FEMA. The appeal must be submitted through your office and the Federal Coordinating Officer within 60 days of receipt of this determination.

Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate

cc: Leland R. Wilson
Federal Coordinating Officer
FEMA-1008-DR-CA
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