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Second Appeal Summary
PA ID# 111-65042; San Buenaventura
DSR ID# 92789; Insurance Duplication of Benefits
Citation: Appeal Brief; Second Appeal; City of San Buenaventura; FEMA-1044-DR-CA; PA#111-65042
Cross-Reference: DSR 92789; Insurance Deductible; Duplication of Benefits
Summary: Following the storms in January 1995, in the City of San Bueneventura (City), California, FEMA prepared DSR 92789 for $505,916 to fund estimated repairs of the Ventura Municipal Pier. However, the eligible funding was reduced to $100,000 (deductible) to account for insurance coverage of $405,916. The State forwarded the first appeal on February 9, 1996. The basis of the appeal was that the DSR was written for $505,916; the insurance proceeds were actually $194,540; and the eligible funding should be reinstated at $311,376. The Regional Director responded with a request for additional information to establish which items of work were covered by insurance and when the damages in question occurred. Upon receipt of additional information, the Regional Director determined that some of the damages included on DSR 92789 occurred prior to the disaster event. Based on the additional documentation, the Regional Director estimated the total eligible expenses at $263,027. The Regional Director subtracted the insurance proceeds from the eligible expenses and eligible funding remained at the $100,000 deductible, pursuant to 44 CFR 206.253(a), which states that the Regional Director shall reduce the eligible costs by the actual amount of the insurance proceeds related to the eligible costs. On June 6, 1997, the State forwarded the second appeal. In this appeal the City is requesting reimbursement of $215,078 - $200,000 for deductibles and $15,078 for engineering costs.
Issue: Is the applicant eligible for $215,078 in disaster assistance?
Findings: Yes. Based on provided documentation, $409,619 of pier repairs are eligible expenses. Insurance proceeds ($194,540) have been subtracted from the eligible expenses. Therefore, $215,078 is eligible for reimbursement from FEMA.
Rationale: Pursuant to 44 CFR 206.253 (a), the eligible costs have been reduced by the actual amount of insurance proceeds and, as such, $215,078 is eligible for funding.