Electrical Safety Inspections

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1603-DR
ApplicantCity of New Orleans
Appeal TypeSecond
PA ID#071-55000-00
PW ID#6155
Date Signed2010-06-21T04:00:00

Citation:         FEMA-1603-DR-LA; City of New Orleans (Applicant), PW 6155 v1

                             

Cross

Reference:      Emergency Protective Measures, Work Eligibility

 

Summary:      Residential, commercial and other private sector buildings throughout the City of New Orleans were damage or destroyed as a result of Hurricane Katrina and the resulting flooding due to the levee breech.  The Applicant requested reimbursement in the amount of $11,074,392 for the exterior and interior electrical safety inspections performed on these structures between January 2006 and June 2007.  FEMA determined that the exterior building inspections constituted safety inspections and were eligible for emergency work funding, but not the interior inspections because the Applicant did not have the legal responsibility to inspect the interior portion of the structures.  FEMA prepared PW 6155 under Category B, Emergency Protective Measures for $2,006,423 to reimburse the Applicant for the exterior electrical safety inspection of these structures and obligated an additional $4,890,605 under PW 6155 v1 for a cumulative total of $6,897,028.

 

In its first appeal dated April 23, 2008, the Applicant argued that it had the legal responsibility to perform safety inspections of both the exterior and interior of a residential or commercial property as the work was necessary to determine if an immediate threat to life, public health and safety existed and asked for $4,177,364 for the costs of the interior inspections.  FEMA requested additional information related to the nature of the inspections.  Based on the Applicant’s documentation and responses, the Regional Administrator concluded that the inspections were not emergency safety inspections, but building code enforcement activity related to the repairing and rebuilding of these structures and deobligated the $6,897,028 FEMA previously awarded.  The Applicant submitted its second appeal on February 10, 2009, arguing that the inspections were required to restore power safely and avoid the danger of fire to homes and businesses.

 

Issue:              Are the electrical inspections to determine if power could be restored to a home or business eligible work under Category B, Emergency Protective Measures?

 

Finding:          Yes.  Two of ten types of inspections performed are eligible emergency protective

                         measures.

                       

Rationale:       Policy 9523.2, Eligibility of Building Inspections in a Post-Disaster Environment (June 23, 1998)

Appeal Letter

 

 

 

June 21, 2010

 

 

 

Mark DeBosier

Deputy Director

Recovery Division

Governor’s Office of Homeland Security and Emergency Preparedness

7667 Independence Boulevard

Baton Rouge, LA 70806

 

Re:  Second Appeal–City of New Orleans, PA ID 071-55000-00, Electrical Safety Inspections, FEMA-1603-DR-LA, Project Worksheet (PW) 6155 v1

 

Dear Mr. DeBosier:

 

This is in response to a letter from your office dated April 6, 2009, which transmitted the referenced second appeal on behalf of the City of New Orleans (Applicant).  The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of reimbursement totaling $11,074,392 for exterior and interior electrical safety inspections. 

Background

Residential, commercial, and other private sector buildings throughout the City of New Orleans were damaged or destroyed as a result of Hurricane Katrina and the subsequent flooding due to the levee breech.  The Applicant requested reimbursement in the amount of $11,074,392 for the exterior and interior electrical safety inspections performed on these structures between January 2006 and June 2007.  FEMA determined that exterior building inspections constituted safety inspections according to Policy 9523.2, Eligibility of Building Inspections in a Post-Disaster Environment (June 23, 1998) and were eligible for emergency work funding.  FEMA also determined that the Applicant did not have the legal responsibility to inspect the interior portion of the structures.  FEMA prepared PW 6155 under Category B, Emergency Protective Measures for $2,006,423 to reimburse the Applicant for exterior electrical safety inspection of these structures.  On March 19, 2008, FEMA obligated an additional $4,890,605 under PW 6155 v1 for a cumulative total of $6,897,028.

First Appeal

On April 23, 2008, the Applicant submitted its first appeal, which was transmitted by the Grantee to FEMA on July 16, 2008.  The Applicant argued that it had the legal responsibility to perform safety inspections of both the exterior and interior of a residential or commercial property as the work was necessary to determine if an immediate threat to life, public health and safety existed and asked for $4,177,364 for the costs of the interior inspections.  FEMA requested additional information related to the nature of the inspections.  Based on the Applicant’s documentation and responses, the Regional Administrator concluded that the inspections were building code enforcement activity related to the repair and rebuilding of these structures, not safety inspections.  As a result, on November 26, 2008, FEMA deobligated the $6,897,028 it previously awarded.

Second Appeal

The Applicant submitted its second appeal on February 10, 2009, which the Grantee transmitted to FEMA on April 6, 2009.  The Applicant argued that if any inspections were recorded as code-related activities, then the activities were related to the overall task of ensuring and identifying that the buildings inspected posed an immediate threat to public health and safety.  The Applicant further stated that without these inspections, the public utility company (Entergy) could not safely work to restore electrical power to large areas without creating both a danger and potential liability.  The Applicant requested reimbursement for both exterior and interior inspection costs totaling $11,074,392 and also requested an oral presentation of its second appeal.

On December 15, 2009, the Acting Deputy Assistant Administrator for the Recovery Directorate and the Deputy Director of the Public Assistance Division discussed the appeal with the Applicant and State via conference call. 

Discussion

Pursuant to Policy 9523.2, Eligibility of Building Inspections in a Post-Disaster Environment (June 23, 1998), “FEMA can consider the increased demand for inspection services as an eligible emergency protective measure if such inspections are disaster-related and are necessary to establish if a damaged structure poses an immediate threat to life, public health or safety after a disaster.  Inspections associated with the reconstruction effort and the normal building regulation enforcement process are ineligible, since these inspections go beyond the scope of a safety inspection.”

The Applicant provided a list of the 10 types of electrical inspections and a description of each that its contractors performed on the structures. The types of electrical inspections were:

(1) Reconnect, (2) Reject, (3) Main Breaker, (4) Temporary Power, (5) Vacancy Repair Lights, (6) Temporary Pole Reconnect, (7) Increase in Service, (8) Rough In Meter, (9) FEMA Trailers and (10) New Construction.  After reviewing all information that the Applicant submitted, I have determined that only two types of electrical inspections –Reconnect and Reject– meet the definition of an emergency protective measure.  The remaining inspections were related to the reconstruction effort and normal building regulation enforcement process and are not eligible emergency protective measures.  For example, “New Construction” refers to an inspection performed on a structure that did not exist prior to the disaster and “Vacancy Repair Lights” refers to an inspection performed on a structure that was unoccupied for more than six months and was not affected by the disaster.   

Conclusion

I have reviewed the information submitted with the appeal and determined that the “Reconnect” and “Reject” inspections are eligible emergency protective measures.  Therefore, I am partially approving the appeal for $8,562,022 for the costs of those inspections.  By this letter, I am requesting the Regional Administrator take appropriate actions to implement my decision.

Please inform the Applicant of my decision.  This determination is the final decision on this matter pursuant to 44 CFR §206.206, Appeals.

Sincerely,

/s/

Elizabeth A. Zimmerman

Assistant Administrator

Recovery Directorate

cc:  Tony Russell

       Regional Administrator

       FEMA Region VI           

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