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Second Appeal Brief
PA ID# 019-41155-00; City of Lake Charles
PW ID# 4399; Force Account Equipment Costs
FEMA-1607-DR-LA, City of Lake Charles, Force Account Equipment Costs, PW 4399
Eligible Costs, Emergency Protective Measures
As a result of Hurricane Rita, thousands of residents were displaced and sought shelter at the Lake Charles Civic Center, a facility owned by the City of Lake Charles (Applicant). The Civic Center was converted into a shelter during the period September 24, 2005, to November 13, 2005. On
October 28, 2006, FEMA prepared PW 4399 to reimburse force account kitchen equipment usage in food preparation for evacuees for $28,897. The Regional Administrator determined that the scope of work was ineligible. The Regional Administrator cited that “the applicant owned the facility and did not incur any actual lease expenditures, nor any out of pocket expenses in the sheltering operation.” Additionally, when shelters are operated in government-owned facilities but managed by a volunteer agency, FEMA regulations allows, in such cases, only actual expenses incurred by the eligible applicant, such as supplies or cleanup labor. The state argues that considerable cost to the facility’s kitchen equipment during the sheltering operation was incurred in the form of accelerated usage and depreciation. Since the Civic Center is owned by the Applicant, there were no actual expenses incurred because the shelter facility was managed by the American Red Cross. Additionally, any expenses incurred in facility operation costs, such as power, water and telephone, could be eligible; this was brought to the Applicant’s attention however, none of these types of costs are included in the Applicant’s request.
Is the cost for the use of the kitchen equipment (as force account equipment) eligible under FEMA guidelines?
No. FEMA’s guidance clearly states that the costs are eligible only when an Applicant-owned facility is used for the provision of mass care and actual expenses are incurred.
Public Assistance Guide (FEMA 322, October 1999) page 48.
Disaster Specific Guidance (DSG) 2, “Eligible Costs for Emergency Sheltering Declarations Hurricane Katrina & Rita
,” dated September 9, 2005