Truck Capacity and Certification

Appeal Brief Appeal Letter

Appeal Brief

Disaster1602-DR-FL
ApplicantCity of West Miami
Appeal TypeSecond
PA ID#086-76525-00
PW ID#153
Date Signed2014-02-18T00:00:00

Citation:  FEMA-1602-DR-FL, City of West Miami, Truck Capacity Certification, PW 153

Cross-Reference:  Debris Removal, Documentation

Summary:  Hurricane Katrina deposited a large amount of vegetative debris throughout the city of West Miami.  FEMA prepared and obligated PW 153 to reimburse the City of West Miami (Applicant) $280,512 in debris removal costs.  During project closeout, FEMA reduced the eligible amount by $63,093 for debris removed by 11 of the Applicant’s contractor's trucks, for which the Applicant had not submitted certifications, and for the overbilling of loads by six (6) other trucks where the claimed load volumes exceeded the associated truck’s certified capacity.  In a first appeal, the Applicant claimed FEMA never informed it that truck certifications for its contractor’s vehicles were a requirement for funding and requested that FEMA re-obligate the $63,093 in disallowed debris removal costs.  The Regional Administrator denied the appeal noting that FEMA’s Public Assistance Debris Management Guide (FEMA 325), published April 1999, states that applicants must maintain and update notarized lists of trucks involved in debris removal operations.  In addition, the Regional Administrator stated that billing for load volumes that exceeded the certified capacities of the trucks was unreasonable and unnecessary.  Following the first appeal, the Applicant located copies of the missing truck certifications and submitted them with its second appeal which reiterates that the addition of sideboards to the trucks increased the capacities and resulted in the discrepancy between the certified capacities and the volumes recorded on the load tickets.

Issues:  1.  Has the Applicant established that the work performed by the 11 trucks is eligible for Public Assistance funding?

              2.  Has the Applicant provided documentation to support certain trucks were modified with sideboards, thus increasing the capacity?

Findings:  1.   Yes.

                  2.   No.

Rationale:  44 CFR §206.223(a)(3) General work eligibility, 44 CFR §206.224(a) Debris Removal, Public Interest

Appeal Letter

November 4, 2013

Bryan W. Koon
Director
State of Florida Division of Emergency Management
2555 Shumard Oaks Boulevard
Tallahassee, FL  32399-2100

Re:  Second Appeal–City of West Miami, FL, PA ID 086-76525-00, Truck Capacity and Certification, FEMA-1602-DR-FL, PW 153

Dear Mr. Koon:

This is in response to a letter from your office dated September 14, 2010, which transmitted the referenced second appeal on behalf of the City of West Miami (Applicant).  The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) reduction of $63,093 for debris removal based on missing truck certifications and inconsistent documentation following Hurricane Katrina in 2005.  Processing of the appeal was delayed due to administrative miscommunication with FEMA and the Florida Division of Emergency Management (Grantee).  The appeal was transmitted to FEMA Headquarters as a second appeal in January 2013.

Background

Hurricane Katrina struck South Florida on August 25, 2005, and generated debris throughout the City of West Miami.  The Applicant executed a contract for removal of the debris at $36 per cubic yard and used force account to monitor the operation.  FEMA prepared PW 153 for $280,512 to reimburse the Applicant for the estimated cost of removing 7,792 cubic yards of debris through September 26, 2005.  

During closeout of PW 153, FEMA reviewed the documentation submitted by the Applicant and noted a number of missing truck volume certifications.  The Applicant provided capacity certifications for 23 of the 47 trucks used in the debris removal operation, and later secured an additional 13 truck certifications from the contractor (for a total of 36).  However the Applicant did not provide certifications for the remaining 11 trucks.  Through a review of the load tickets, FEMA found that these 11 trucks removed a total of 1,647 cubic yards of debris in 53 loads.  As the volumes of the trucks were uncertified, FEMA determined that 1,647 cubic yards (at $36 per cubic yard or a total of $59,292 in claimed costs) could not be verified as eligible.

Further, the review at closeout also found a number of improperly record load tickets.   Namely, the volumes of transported debris for six of the trucks, as reflected on load tickets, exceeded the certified capacity of the associated vehicle.  For these vehicles, FEMA determined that the eligible debris was restricted to the certified capacities of the trucks and reduced the eligible amount of funding by $3,801.  On April 4, 2008, FEMA de-obligated a total of $63,093 in ineligible costs from PW 153.

First Appeal

The Grantee transmitted the Applicant’s first appeal dated, May 28, 2008, to FEMA on July 3, 2008.  The Applicant claimed that neither FEMA nor the Grantee had mentioned at any point prior to final inspection that the Applicant was required to obtain truck certifications from the contractor.  Furthermore, the Applicant claimed that FEMA failed to identify the regulation or policy that establishes the requirement.  The Applicant asserted that the load tickets demonstrated the total quantity of eligible debris and that FEMA’s request for documentation from the contractor 18 months after the completion of work was onerous and unreasonable.  The Grantee supported the appeal and recommended that FEMA reinstate the $63,093 in disallowed debris removal costs for missing truck certifications and improperly recorded load tickets.

The Regional Administrator denied the first appeal on June 11, 2009, stating that FEMA’s Public Assistance Debris Management Guide (FEMA 325), published in April 1999, requires applicants to maintain notarized lists of the capacities and the license plate numbers of all trucks used to move debris in debris removal operations.  The Regional Administrator noted that truck certification is an essential element in the effective monitoring of debris operations.  In addition, the Regional Administrator stated that the claimed costs for truck loads beyond those vehicles’ registered capacities were not reasonable.

Second Appeal

The Grantee forwarded the Applicant’s second appeal to FEMA on September 14, 2010.  Enclosed with the appeal letter were copies of truck certifications for the remaining 11 trucks.   The Applicant requested $59,292 that was de-obligated at closeout due to the missing certifications.  In addition, the Applicant reiterated that the overcapacity on load tickets resulted from a combination of the addition of sideboards to the trucks and mechanical compression loading of those trucks.  The Grantee supported the Applicant’s appeal.

Discussion

To be eligible, costs must be reasonable and necessary to accomplish eligible work.  The Applicant provided certifications for the remaining 11 trucks and provided an explanation of the higher debris volumes on load tickets that exceeded the certification of six trucks.  This provides additional information regarding the debris removal operation, however FEMA must complete an assessment as to the eligibility of the additional costs being claimed.

The Applicant claimed that adding sideboards to the six trucks and compacting the loads to the maximum extent allowable served to expedite the debris removal operation.  However, the Applicant did not document the increase in capacity of the trucks.  Therefore, the eligible cost for each load is limited to volume of debris documented on the load ticket or the certified capacity of the associated truck, whichever is less.

The $3,801 in costs for the added truck capacity initially denied at closeout remains ineligible.  Additionally, a review of the load tickets for the 11 previously uncertified trucks found that 23 of the load tickets exceed the certified capacities of the trucks by a total of 297 cubic yards, or $10,692 in costs.  Therefore, a total of $14,493 ($3,801 + $10,692) remains ineligible for funding.  Of the total amount of funding requested in the second appeal of PW 153, the Applicant has provided sufficient documentation to demonstrate the eligibility of $48,600 ($63,093 - $14,493) in costs for the removal of 1,350 cubic yards of debris. 

Conclusion

I have reviewed the information submitted with the second appeal and have determined that the Applicant has demonstrated the removal of an additional 1,350 cubic yards is eligible for Public Assistance funding.  Accordingly, I am partially approving this appeal for additional funding in the amount of $ 48,600.  By copy of this letter, I am requesting the Regional Administrator take the appropriate action to implement this determination.

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/

Deborah Ingram
Assistant Administrator
Recovery Directorate

cc:   Major P. May
       Regional Administrator
       FEMA Region IV

 

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