Summary: The Tapo Canyon Water Treatment Plant was damaged during the 1994 Northridge Earthquake. DSR 13685 was obligated for $901,241 to repair the facility to provide treated, filtered potable water. Subsequent to this approval, the Applicant accepted a Grant Acceleration Program offer for $2,678,265 and applied for an Improved Project, which was approved by the Grantee. In June 2000, the Office of Inspector General questioned the pre-disaster use of the facility. FEMA then determined that the plant provided only non-potable water during its normal operation and emergency backup potable water, chlorinated only, during limited emergency situations. FEMA deobligated the previously approved funding and approved DSR 15379 for $346,705. The Applicant submitted a first appeal to reinstate the originally approved scope of work that included filtration in addition to chlorination for potable water at a cost of $872,577. The appeal was partially denied because the Applicant did not establish that the filtration was necessary for emergency potable water provided for limited periods of time and because the cost estimate was not sufficiently documented for certain costs. Certain costs were approved under the first appeal: $24,257 for eligible site work and $16,000 for an engineering study. The Applicants second appeal again requests inclusion of potable water filtration, approval of an updated cost estimate of $882,049 as well as actual construction costs and an 18-month time extension.
Issues: 1. Is filtration an eligible cost? 2. Are the Applicants costs associated with the additional work reasonable?3. Is the Applicant eligible for actual costs for replacement?4. Is the requested time extension (18 months) approved for the Applicant?
Findings: 1. No. The plant was capable of providing only non-potable water and disinfected (chlorinated) water at the time of the disaster.2. 3. No. The Applicants cost estimate includes ineligible components. The eligible cost has been determined to be $509,087.4. 5. No. There is an Improved Project approved for this facility.6. 7. Not at this time. There is a current time extension to January 1, 2004, for this project. The time extension will be addressed under a separate transmittal.
Rationale: 44 CFR §206.226, Restoration is only eligible to restore a facility to its pre-disaster use. 44 CFR §206.203, Work beyond restoration to pre-disaster condition may be eligible as an Improved Project