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Second Appeal Letter
PA ID# 111-99111-00; St. Lucie County
PW ID# 1882; Insurance Requirement
May 31, 2012
Florida Division of Emergency Management
2555 Shumard Oak Boulevard
Tallahassee, Florida 32399-2100
Re: Second Appeal-St. Lucie County, PA ID 111-99111-00, Insurance Requirement,
FEMA-1785-DR-FL, Project Worksheets (PWs) 1882
Dear Mr. Koon:
This letter is in response to a letter from your office dated December 30, 2010, which transmitted the referenced second appeal on behalf of St. Lucie County (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) de-obligation of $20,096 in funding for the repair of Tradition Field Sports Complex.
As a result of Tropical Storm Fay, windscreens that were located at the Tradition Field Sports Complex were damaged due to heavy winds and rain. Project Worksheet (PW) 1882 was prepared for repairs in the amount of $20,096. During a review of PW 1882, FEMA discovered that the Tradition Field Sports Complex had been granted funding for Hurricanes Frances and Wilma; therefore, the Applicant was required to obtain and maintain appropriate insurance on this facility. Pursuant to Federal Regulations, when the same facility is damaged by a subsequent event and had an insurance requirement placed on a PW during a previous disaster, FEMA will reduce the eligible costs up to the amount of the of the previous insurance requirement. If insurance was not obtained and maintained then FEMA will not provide any additional assistance for that facility.
In its first appeal dated November 23, 2009, the Applicant requested that FEMA reconsider the de-obligation of $20,096 because the prerequisite insurance obligations had been satisfied and the facility outlined in PW 1882 was not subject to any such pre-existing insurance requirement. On March 25, 2010, FEMA denied the first appeal stating that the Applicant did not satisfy the requirement to obtain and maintain insurance from a previously declared event. As stated in FEMA’s Disaster Assistance Fact Sheet, DAP9580.3, Insurance Considerations for Applicants, dated May 29, 2009, “FEMA will not provide assistance for [a] facility in future disasters if the requirement to purchase and maintain insurance is not met.”
On August 31, 2010, the Applicant submitted a second appeal reiterating its position from the first appeal that the prerequisite insurance obligations had been satisfied. The Applicant provided no additional information in support of its second appeal. The Applicant also claims that the facility in PW 1882 was not subject to any pre-existing insurance requirements. The Applicant also submitted an insurance coverage reasonableness certification letter from the State Insurance Commissioner. The letter relates to the facilities covered under the State of Florida’s Property Insurance Policy, and does not apply to the Applicant’s facility.
FEMA is precluded from providing funds for an insurance deductible when funding has been provided for deductible and facility in previous declared events. Section 311 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act requires applicants, as a condition of receiving assistance, to obtain and maintain such types and extent of insurance as may be reasonably available, adequate and necessary to protect against future loss. In addition, 44 CFR §206.253(f), Insurance requirements for facilities damaged by disasters other than flood, states that when the same facility is damaged by a subsequent event and had a insurance requirement from a previous disaster, FEMA will reduce the eligible costs up to the amount of the previous insurance requirement. The Applicant failed to obtain and maintain the required insurance coverage. Therefore, the facility in question is not eligible to receive assistance for the work described in PW 1882.
I have reviewed all of the information submitted with the appeal and determined that the first appeal decision was consistent with program statute and regulations. Accordingly, I am denying this appeal.
Please inform the Applicant of my decision. This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206, Appeals.
cc: Major P. May
FEMA Region IV