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Second Appeal Brief
PA ID# 065-85446-00; City of Wildomar
PW ID# 314; Emergency Work Documentation
Citation: FEMA-1884-DR-CA, City of Wildomar, Documentation, Project Worksheet (PW) 314.
Reference: Documentation; Labor Costs; Administrative Cost
Summary: Heavy rainfall during severe winter storms in January 2010 resulted in flooding in Wildomar, California. FEMA prepared PW 314 for $170,604 in emergency protective measures and PW 323 for $113,000 for debris removal costs. FEMA determined that the City of Wildomar’s (Applicant) documentation supported only $5,281 in eligible work on PW 314 and $0 on PW 323. In the first appeal, the Applicant asserted that the denied costs were eligible emergency protective measures necessary to eliminate or reduce an immediate threat to life, public health, or safety. In the appeal response, the FEMA Regional Administrator (RA) noted that in accordance with Recovery Policy RP9525.7, Labor Costs-Emergency Work (November 16, 2006), emergency work performed during normal working hours by fixed-term employees covered under existing budgets, such as the Applicant’s contractors that served as the Applicant’s Public Works Department, is not eligible for funding. Pursuant to Title 44 Code of Federal Regulations (44 CFR) §206.202(b)(4), Submitting documents necessary for award of grants, the RA denied the appeal, stating that the Applicant’s documentation did not allow for identification of eligible overtime work. Further, the RA determined that claimed Direct Administrative Costs (DAC) were not eligible because they were not associated with a single project. In the second appeal, the Applicant concedes that some costs were ineligible and reduced the requested amount to $108,799. The Applicant maintains that since the work was performed by contractor, both straight- and overtime costs for performing eligible emergency work are eligible and should be reimbursed. The Applicant also insists that the requested DAC is associated with PW 314 and is eligible per FEMA Disaster Assistance Policy DAP9525.9, Section 324 Management Costs and Direct Administrative Costs (March 12, 2008).
Issue: 1. Are contractor labor costs for performing eligible emergency work activities during normal working hours eligible for reimbursement?
2. Does the documentation submitted with the second appeal allow for the identification of eligible costs?
3. Has the Applicant provided sufficient documentation for FEMA to determine eligible Direct Administrative Costs?
Finding: 1. Yes.
2. Yes, certain eligible emergency work activities are identifiable.
Rationale: RP9525.7, 44 CFR§207.3, DAP9525.9