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Second Appeal Brief
PA ID# 000-00142-01; Iowa Department of Corrections
PW ID# 1717; Documentation
Citation: FEMA-1763-DR-IA, Iowa Department of Corrections, Documentation, Project Worksheet (PW) 1717
Reference: Insurance, Hazard Mitigation, Small Projects
Summary: From May 25, 2008, to August 13, 2008, severe storms and flooding impacted Lee County, Iowa. The Applicant’s grounds were inundated with floodwaters from the Mississippi River, and the flooding damaged the Applicant’s waste monitoring station, consisting of waste flow monitoring equipment and a shelter house. The Applicant entered into a contract for $24,600 to remove and replace the existing shelter house, which was documented in PW 1717, but deducted as anticipated insurance proceeds because the Applicant is self-insured. FEMA obligated PW 1717 on September 18, 2008, for $18,873 for a Hazard Mitigation Proposal to elevate the new structure. This included $978 for administrative costs. The Applicant submitted its first appeal on February 20, 2009, requesting $25,089 for waste flow monitoring equipment that it claimed was not covered by its insurance due to the equipment having been located underground. The Acting Regional Administrator denied this appeal in a letter dated September 16, 2009, stating that the Applicant did not submit its appeal within the regulatory 60-day timeframe. In its second appeal, the Applicant requested $4,625 for the difference between the obligated amount and what it claimed was the total cost of the repair work ($23,485). The second appeal referenced the equipment for which the Applicant had requested funding in its first appeal, but the second appeal does not request funding for it. The Applicant did not submit documentation justifying the increase in costs, and is appealing an individual small project. Therefore, the appeal is denied.
Issues: Is the Applicant eligible for increased costs for repair work for which it has not submitted documentation to substantiate the increased costs?
Rationale: 44 CFR §206.206(a), Format and Content; 44 CFR §206.204(e), Cost Overruns; and 44 CFR §206.206(c)(1), Time Limits.