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Debris Removal

Appeal Brief Appeal Letter

Appeal Brief

DesastreFEMA-1735-DR
ApplicantCity of Stroud
Appeal TypeSecond
PA ID#081-71000-00
PW ID#851
Date Signed2010-03-05T05:00:00

Citation:            FEMA-1735-DR-OK, City of Stroud, PW 851

Cross
Reference:
        Debris Removal
 
Summary:          An ice storm from December 8, 2007, through January 3, 2008, deposited large quantities of vegetative debris in the Applicant’s maintained and owned properties.  FEMA determined that PW 851 was ineligible and approved for lack of documentation to support the time and material invoices that the Applicant first submitted for $866,377, and later revised to $723,471. The Oklahoma Department of Emergency Management (DODEM) audit concluded the Applicant documentation supported $557,843.  DODEM’s audit identified operator hours (1,533 hours) to be only 70% of the identified equipment hours (2,218). The Applicant submitted its second appeal dated May 29, 2009.  The Regional Administrator agreed with the initial determination stating that the review of the documentation such as payroll charges and equipment tally sheets, showed duplication of charges with the towns of Wellston and Davenport.  In addition, the Regional Administrator noted that daily sign in sheets had unexplained changes and invoices had been submitted repeatedly with no detail and significantly different amounts with no explanation for the changes.  The Applicant argued in the second appeal that the closeout audit identified the supporting documentation for $557,843 in contractor fees performed within the 70-hour period. 

It usually takes two people to properly operate the equipment the Applicant used to clear debris from the roads.  Therefore, the 1,533 labor hours support 767 equipment hours.

Issue:                 Is the work documented on PW 851 eligible for funding under the PA program?
 
Finding:             Yes. Only 35 percent of the requested costs are eligible.
 
Rationale:         44 Code of Federal Regulations §206.224 Debris removal

Appeal Letter

March 5, 2010

 

 

Kathleen Shingledecker

Deputy State Coordinating Officer

Department of Emergency Management

2401 N. Lincoln

Oklahoma City, Oklahoma 73105

 

Re:  Second Appeal–City of Stroud, PA ID 081-71000-00, Debris Removal,

       FEMA-1735-DR-OK, Project Worksheet (PW) 851

 

Dear Ms. Shingledecker:

 

This letter is in response to your letter dated July 31, 2009, which transmitted the referenced second appeal on behalf of the City of Stroud (Applicant).  The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $556,529 for a time and material contract to remove debris within the first 70 hours after the disaster.

Background

Large quantities of vegetative debris, including hanging limbs and leaning trees, were deposited in the Applicant’s maintained and owned properties following an ice storm from December 8, 2007, through January 3, 2008.  The Applicant contracted with IPS to perform emergency debris clearance from the roadways under a time and material contract.  IPS performed the emergency debris clearance from December 17 to December 22.  IPS submitted an invoice for $866,377 to the Applicant for the work.  The Applicant requested reimbursement from FEMA.   FEMA prepared PW 851 in March 2008 to document the Applicant’s request, but did not approve any funds because the Applicant did not provide sufficient documentation with the invoice; the invoice was for work past the emergency period; and the cost was unreasonable.  On May 13, 2008, the Oklahoma Department Emergency Management (ODEM) reviewed the Applicant’s documentation for the project as part of the closeout process for the project.  The ODEM auditors concluded that the Applicant’s documentation supported $556,529.  The auditors noted that contractor claimed more equipment hours (2,218) than operator hours (1,533) and stated that presumably the contractor will submit timesheets for the additional operator hours to match the equipment hours.  FEMA denied the Applicant’s request for $556,529.  The Applicant submitted a first appeal in a letter dated May 23, 2008.  In a letter dated April 3, 2009, the Acting Regional Administrator denied the appeal because there were duplication in labor and equipment charges with other localities using the same contractor and the applicant did not submit sufficient documentation to support the requested costs.  In addition, the Acting Regional Administrator noted that daily sign-in sheets had unexplained changes and invoices had been submitted repeatedly with no details and significantly different amounts with no explanation for the changes.  The Applicant submitted a second appeal on May 29, 2009, requesting $557,843.

Discussion

FEMA will reimburse the Applicant reasonable costs for the emergency clearance of debris from roadways immediately following the ice storm.  The ODEM auditors concluded that the documentation the Applicant submitted supported 2,218 equipment hours and 1,533 labor hours.  It is unreasonable to reimburse the Applicant for more equipment hours than there were workers to operate the equipment.  The cost of equipment that is not used in the debris removal operation is not eligible.  The contractor used bucket trucks and skidders during the debris clearance operation.  These types of equipment usually require at least two people to operate properly.  Therefore, the documented 1,533 labor hours support 767 equipment hours.  FEMA concludes that eligible equipment is 35 percent of the requested equipment hours (767/2,218).   Therefore, the reasonable cost for the emergency debris clearance is $195,245 (.35 x $557,843).

Conclusion

I have reviewed the information submitted with the second appeal and determined that the contractor cleared eligible debris.  A reasonable cost for performing the emergency debris clearance is $195,245.  Accordingly, I am partially approving the second appeal for $195,245.  By copy of this letter, I request that the Regional Administrator take 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/

Elizabeth A. Zimmerman

Assistant Administrator

Recovery Directorate

cc:   Tony Russell

       Regional Administrator

       FEMA Region VI