2nd Appeal for Florida Community College Risk Management Consortium, FEMA-1539-DR-FL

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1539-15
ApplicantFlorida Community College Risk Mmgt Consortium
Appeal TypeSecond
PA ID#001-UVHHU-00
PW ID#xxx-xxxxx
Date Signed2006-09-01T04:00:00

Citation:

FEMA-1539-DR-FL, Florida Community College Risk Management Consortium

Cross-reference:

Eligible Applicant, Insurance

Summary:

Following Hurricane Charlie, Frances, Ivan, and Jeanne, the Florida Community College Risk Management Consortium (FCCRMC) filed Requests for Public Assistance (RPA). FCCRMC was requesting reimbursement of funds expended by its member colleges on disaster-related damages associated with the deductible portion of its third party insurance policy. FEMA denied the RPAs because FCCRMC did not have legal responsibility for repairing the damages. FCCRMC filed a first appeal of FEMA’s determination on January 7, 2005, which FEMA denied in a letter dated March 3, 2005, in which FEMA said that it would review the insurance pool arrangement once damages at all the colleges had been surveyed. The Florida Department of Emergency Management did not inform FCCRMC of its first appeal denial or its rights to a second appeal until June 17, 2005. FCCRMC filed a second appeal dated August 18, 2005.

Issues:

1. Does FCCRMC have legal responsibility for repairs of the damaged facilities?

Findings:

1. No. However, the Division of Community Colleges under the State Board of Education may act as the eligible applicant on behalf of the colleges.

Rationale:

44 CFR §206.223(a)(3)

Appeal Letter

September 1, 2006

Mr. W. Craig Fugate, Director
Florida Division of Emergency Management
2555 Shumard Oak Boulevard
Tallahassee, Florida 32399-2100

Re: Second Appeal – Florida Community Colleges Risk Management Consortium; Eligible Applicant; FEMA-1539/1545/1551/1561-DR-FL

Dear Mr. Fugate:

This is in response to your letter dated December 22, 2005, transmitting the referenced second appeal on behalf of the Florida Community Colleges Risk Management Consortium (FCCRMC), which manages and administers insurance matters for 28 Florida Community Colleges. FCCRMC filed timely Requests for Public Assistance (RPA) for damages incurred as a result of Hurricanes Charley, Frances, Ivan, and Jeanne. In each case FEMA denied FCCRMC’s RPA because FCCRMC did not own or operate the damaged facilities.

FCCRMC appealed FEMA’s denial of assistance on January 7, 2005. On March 3, 2005, FEMA denied the first appeal because FCCRMC was not claiming damages but rather was requesting reimbursement of funds held in a self-insurance program by the colleges and administered by FCCRMC. FEMA’s denial letter went on to say that FEMA would review the insurance pool arrangement between FCCRMC and the community colleges once the damage surveys of the individual colleges had been completed.

The Florida Department of Emergency Management did not inform FCCRMC of FEMA’s denial of its first appeal, or of its right to submit a second appeal, until June 17, 2005. FCCRMC filed a second appeal dated August 18, 2005, in which it advised FEMA that it was not an agency or third-party representing the colleges, but rather is a consortium set up by the colleges themselves to obtain and administer third party commercial insurance coverage for the colleges. Furthermore, FCCRMC’s second appeal pointed out that it was not seeking reimbursement of self-insurance funds, but was requesting reimbursement of cash expended by the colleges to make disaster-related repairs as part of the deductible portion of its third party commercial insurance.

FEMA has determined that FCCRMC is an insurance pool arrangement, as that term is intended in 44 Code of Federal Regulations (44 CFR) §206.253(b)(2), formed by and under the full authority of the 28 community colleges in the Florida community college system. FCCRMC pools the collective risks and liabilities of the member colleges and uses their combined purchasing power to obtain insurance in the commercial marketplace at favorable rates.
FCCRMC informed FEMA that it sustained $22,774,014 in total insurable damages, and is seeking reimbursement on behalf of its member colleges of $9,451,097 of deductible costs paid by member colleges. A staff risk manager at each college is prepared to document and substantiate the disaster-related damages on a college-by-college basis.
The Florida community college system operates under the full authority of the Division of Community Colleges of the Florida State Board of Education. As such the community college system is a division of a state agency. But since FCCRMC’s consortium agreement with the member colleges does not convey legal responsibility for repair of damaged college facilities, I must deny this appeal. However, as a unit of state government, the Division of Community Colleges (DCC) may act as an eligible applicant on behalf of the member colleges individually and collectively. FCCRMC has made FEMA aware that DCC is willing to act in this capacity. Therefore, by copy of this letter I am asking the Acting Regional Director to accept DCC as the eligible applicant for FEMA assistance for the Florida community colleges.

Please inform FCCRMC of this decision. This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206.

Sincerely,
/s/
John R. D’Araujo, Jr.
Director of Recovery
Federal Emergency Management Agency

cc: Ms. Mary Lynne Miller
Acting Regional Director
FEMA, Region IV

Last updated