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Second Appeal Brief
PA ID# 023-01F68-00; Aplington-Parkersburg Schools
PW ID# 596; Temporary Facilities
Citation: FEMA-1763-DR-IA, Aplington-Parkersburg Schools, Temporary Facilities, Project Worksheet (PW) 596
Summary: On May 25, 2008, an Enhanced Fujita (EF)-5 tornado destroyed school facilities owned by the Aplington-Parkersburg schools (Applicant). FEMA prepared PW 596 to reimburse the Applicant for temporary relocation of facilities, which included the construction of a gymnasium. The Applicant stated its intentions to retain the temporary gymnasium as a permanent facility. FEMA documented the estimated construction cost of the 8,123 square foot concrete block temporary gymnasium at $1,148,512. During the review process, FEMA found that a concrete block temporary facility was not the least costly option, and revised the Scope of Work. The revised PW 596 stated that a steel building ($1,140,000) was more cost effective than the concrete block building as originally written. The original PW 596 stated “no salvage value is included” for temporary facilities. This was replaced with a statement that FEMA would require compensation in an amount equal to FEMA’s proportionate equity in the facility when the authorized temporary relocation time period had ended. FEMA obligated PW 596 on September 12, 2008, for $1,379,857, of which $1,140,000 was estimated for the construction of a steel gymnasium.
FEMA later deducted $247,500 from PW 596 for its proportionate equity. In its first appeal, dated August 12, 2010, the Applicant asserted: 1) FEMA did not advise the Applicant that the fair market value of the temporary gymnasium would be calculated and funding might have to be returned; and 2) FEMA miscalculated the fair market value of the facility. FEMA denied the appeal on October 25, 2011. In the second appeal, dated December 13, 2011, the applicant reiterates its position from the first appeal. The grantee does not support the Applicant’s appeal.
Issue: Is FEMA required to be compensated its proportionate equity in a temporary relocation facility?
Rationale: 44 CFR §13.31, Real Property, and FEMA Policy RP9523.3, Provision of Temporary Relocation Facilities.