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Second Appeal Summary
PA ID# 037-90106; Rubio Canon Land and Water Association
DSR ID# 51877; Final Funding Determination
Citation: FEMA-1008-DR-CA; Rubio Canon Land and Water Association, Final Funding Determination; Damage Survey Report (DSR) 51877
Cross-reference: Eligible Costs; Force Account
Summary: The Rubio Canon Land and Water Associations (RCLWAs) water distribution system sustained damage during the 1994 Northridge Earthquake. The Federal Emergency Management Agency (FEMA) approved DSR 51877 in the amount of $1,133,323 for pipe replacement, engineering, and inspection. RCLWA requested $662,425 in additional funding on August 14, 1995, for the replacement of earthquake-damaged pipe. FEMA determined that the levels of damage were not extensive enough to warrant pipeline replacement but subsequently approved DSR 88552 on July 16, 1996, for $20,649 and DSR 60975 on October 19, 1996 for $3,278 to make pipe clamp repairs at additional leak locations. On July 24, 1996, RCLWA requested additional funding to replace pipelines at various locations, which included locations where pipe clamp repairs covered by DSR 88552 had already been completed. RCLWA used its own funds to complete these replacements prior to the July 24, 1996, request for additional funding, which was denied by FEMA because the repair cost was less than 50% of the replacement cost. However, FEMA approved DSR 02565 on December 5, 1996, to provide $2,372 for four additional pipe clamp repairs not included in previous DSRs. OES notified RCLWA on March 21,1997, of this determination and the procedure to appeal the determination. FEMA closed out the project based on the previously approved amount of $1,159,622 and notified OES on June 21, 2000. RCLWA submitted its first appeal on August 28, 2000 requesting the difference between its claimed costs and the final funding determination, $89,564. The Acting Regional Director denied the appeal because the pipeline replacement work completed by RCLWA was not an approved scope of work and the appeal was not submitted within the regulatory timeframe. Therefore, the final funding was reduced to $826,047 and a de-obligation DSR for $333,575 was processed. OES supports RCLWAs second appeal for $88,124 to cover the of force account labor used on eligible work.
Issues: Are the force account and engineering and inspections costs eligible?
Findings: Yes. Documentation submitted with appeal supports the claim.
Rationale: 44 CFR §206.206(a)