PA ID# 053-46584-00; City of Marble Falls
PW ID# 3385; Debris Removal from Private Businesses
Citation: FEMA-1709-DR-TX, City of Marble Falls PW 3385
Cross- References: Debris Removal, Documentation, Private Property and Private Roads, Work Eligibility
Summary: On June 27, 2007, flooding occurred in Marble Falls, Texas (Applicant). FEMA prepared PW 3385 to cover the Applicant’s debris removal costs. FEMA denied reimbursement of the Applicant’s expenses relating to the use of roll-off containers for the disposal of debris that was removed from private commercial property and for the payment of profit and overhead to the Applicant’s debris removal contractor. The Regional Administrator denied the first appeal because the Applicant was not eligible to remove debris from private property and because the Applicant’s unit price debris removal contract was presumed to include profit and overhead. The Applicant’s second appeal raises the same issues. There is no information in the file that indicates that the direct costs included profit. The Applicant calculated that the direct cost was $132,568. The contractor calculated a 15-percent profit margin. When applied to the cost of the eligible work ($70,073), the eligible profit is $10,511.
Issues: 1. Has the Applicant demonstrated that placement of roll-off containers on private commercial properties resulted in eligible debris removal costs?
2. Is the Applicant entitled to reimbursement of its contractor’s profit from eligible debris work?
Findings: 1. No.
Rationale: Sections 403 and 407 of the Stafford Act; 44 CFR §§206.223(a), General Work Eligibility and 206.224(a), Debris Removal; FEMA-321, Public Assistance Policy Digest