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Second Appeal Brief
PA ID# 003-81180-00; City of Valley City
PW ID# 2243 & 2244; Audit Report DD-05-03
Citation: FEMA-1279-DR-ND, City of Valley City
Cross-reference: Eligible Work, Pre-disaster damage, Inundation and Ground Saturation Policy
Summary: Following the disaster declaration on June 6, 1999, FEMA staff initially determined that the repair of the sewer system and force main were eligible for repair under the Inundation and Ground Saturation Policy dated 1997. Staff subsequently determined that the policy did not apply and the repairs were not eligible. In January 2001, the former Director of FEMA determined that the repairs were eligible and directed Region VIII staff to approve the PWs. The staff approved the PWs and the City completed the repairs. The OIG conducted an audit of the Citys Public Assistance grants and recommended that FEMA deobligate $1,312,573 because the damages described in the PWs were not a direct result of the disaster. Region VIII deobligated the funds and the Regional Director sustained that determination on the first appeal. In the second appeal, the City states that the damages were caused by the disaster; the sewer system met the requirements of the Inundation and Ground Saturation Policy; and FEMA does not have the authority to retroactively deobligate funds for an eligible project. The City requests that FEMA re-obligate the funds.
Issues: (1) Was the damage to the sewer lines caused by the disaster? (2) Does the Inundation and Ground Saturation Policy apply? (3) Are the projects eligible for funding?
Findings: (1) Yes. (2) Yes. (3) Yes.
Rationale: Section 406 of the Stafford Act; 44 CFR 206.223; 44 CFR 206.226(e)