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Second Appeal Letter
PA ID# 047-29700-00; City of Gulfport
PW ID# Project Worksheets 3911, 7827, 9510 and 10220; Force Account Labor Overtime
January 6, 2009
Thomas M. Mike Womack
Governors Authorized Representative
Mississippi Emergency Management Agency
Post Office Box 5644
Pearl, Mississippi 39208-5644
Re: Second AppealCity of Gulfport, PA ID 047-29700-00, Force Account Labor Overtime
FEMA-1604-DR-MS, Project Worksheets (PW) 3911, 7827, 9510 and 10220
Dear Mr. Womack:
This letter is in response to your letter dated October 1, 2008, which transmitted the referenced second appeal on behalf of the City of Gulfport (Applicant). The Applicant is appealing the Department of Homeland Securitys Federal Emergency Management Agencys (FEMA) denial of funding for overtime costs at a rate of two times the normal pay for the Applicants employees.
Two days after Hurricane Katrina made landfall, the Applicant authorized overtime at the rate of two times the normal pay for its employees to perform emergency protective measures. FEMAs Response and Recovery Policy 9525.7, Labor CostsEmergency Work,
permits funding of an Applicants overtime costs in accordance with written policies that are in effect prior to the disaster. Accordingly, following the Applicants Personnel Policy and Procedures Manual dated April 20, 2004, Section 110, page 7, FEMA approved overtime for force account labor at a rate of one and one-half time the normal pay.
The Applicant submitted its first appeal to the Mississippi Emergency Management Agency (MEMA) on November 7, 2007. The Applicant stated that its city council declared a local state of emergency two days prior to Hurricane Katrinas landfall, which, among other preparedness measures, empowered the mayor, at his discretion, to pay overtime up to two times the normal pay to personnel that were required to work during times of hazard and curfew. Two days following landfall of Hurricane Katrina, the mayor exercised the authority given him by the city council and approved an overtime pay rate of two times the normal pay for employees who worked above the normal work schedule during the emergency. The Regional Administrator denied the appeal in a letter dated May 28, 2008, stating the Applicant did not provide any evidence that it paid overtime at the rate of two times the normal pay to its employees for any event except Hurricane Katrina. The Regional Administrator also stated that the mayors discretionary authority to pay two times the normal pay following a named storm is not
consistent with OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments
The Applicant submitted its second appeal on August 5, 2008. The Applicant attached supporting documentation including a resolution of the Gulfport City Council authorizing the mayor to pay overtime up to double time at his discretion, a proclamation by the mayor declaring a civil emergency, a memorandum describing the City of Gulfport payroll policy for Hurricane Katrina, and the City of Gulfport Personnel Policy and Procedures Manual. However, the information provided does not change the discretionary nature of the authority to pay overtime at the rate of two times the normal rate of pay.
I have reviewed the information submitted with the appeal and have determined that the Regional Administrators decision in the first appeal is consistent with Public Assistance regulations and policy. Accordingly, I am denying the second appeal.
Please inform the Applicant of my decision. This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206.
Carlos J. Castillo
Disaster Assistance Directorate
cc: Major P. May
FEMA Region IV