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Jose Abadia Road

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1247-DR
ApplicantMunicipality of Caguas
Appeal TypeSecond
PA ID#025-00000
PW ID#00762, 00191, 02257
Date Signed2002-09-30T04:00:00
Citation: FEMA-1247-DR-PR; Municipality of Caguas, Jose Abadia Road; PWs 00762, 00191, 02257

Cross-reference: Time Limitations for Appeal Submittal

Summary: Hurricane Georges severely impacted the Commonwealth of Puerto Rico on September 21, 1998, causing damage to Jose Abadia Road in the Municipality of Caguas (Municipality). The Municipality submitted three PWs for repairs of two road sections and contracted to repair the road for $58,760. PW 00762 was validated and approved on January 19, 1999 in the amount of $45,829. On February 29, 2000, the Municipality requested a cost overrun of $12,931 from the Governor’s Authorized Representative (GAR). The GAR informed the Municipality on April 3, 2000, that cost overruns for small projects were not considered on an individual basis. Rather, the cumulative cost overrun for all of the Municipality’s small projects would be considered. The Municipality submitted a first appeal on August 30, 2000. The Manager of FEMA’s Caribbean Area Office denied the appeal in a letter dated November 30, 2000, stating that the appeal was not submitted within the regulatory time allowed in 44 CFR §206.206. The Municipality submitted its second appeal in a letter dated August 14, 2001, again past the regulatory time allowed in 44 CFR §206.206. It stated that the actual final cost of the projects qualified as a large project because the additional work was necessary as it came up during the construction process and there was a difference between the originally approved unit costs and quantities and the ones bidded on by the contractors.

Issues: Was the appeal submitted within the regulatory timeframe? Are the additional costs eligible?

Findings: No. No.

Rationale: 44 CFR §206.206; 44 CFR §206.205; Section 422 of the Stafford Act

Appeal Letter

September 30, 2002

Ms. Melba Acosta, Esq.

Governor’s Authorized Representative
Government of Puerto Rico
Post Office Box 902-1812
San Juan, Puerto Rico 00936-1812

Re: Second Appeal: Municipality of Caguas, PAID 025-00000, Jose Abadia Road, FEMA-1247-DR-PR, Project Worksheets (PWs) 00762, 00191, 02257

Dear Ms. Acosta:

This is in response to the letter from the Commonwealth Public Assistance Officer dated February 1, 2002, which transmitted the referenced appeal on behalf of the Municipality of Caguas (Municipality). The Municipality is requesting reconsideration of the Federal Emergency Management Agency’s (FEMA’s) determination to deny additional funding for repair work on Jose Abadia Road, Beatriz Ward, Las Pinas Sector.

The Municipality wrote PWs to repair Jose Abadia Road and subsequently contracted to repair the road for $58,760 in December 1998. FEMA validated and approved PW 00762 on January 19, 1999, for $45,829. On February 29, 2000, the Governor’s Authorized Representative (GAR) received a request for a $12,931 cost overrun from the Municipality. The GAR informed the Municipality on April 3, 2000, that cost overruns for small projects were not considered on an individual basis. Rather, the cumulative cost overrun for all of the Municipality’s small projects could be considered. The Municipality did not pursue the net small project overrun option. The Municipality submitted a first appeal of the scope of work for PW 00762 to FEMA on August 30, 2000. FEMA denied the first appeal on November 20, 2000, because the appeal was not submitted within the regulatory timeframe as stipulated in 44 CFR §206.206.

On August 14, 2001, the Municipality wrote to the GAR requesting reconsideration of the first appeal determination. This was eight months after being notified of the first appeal determination. Therefore, the Municipality did not comply with Title 44 CFR §206.206. The FEMA regulation states, “…appellants must file appeals within 60 days after receipt of a notice of the action that is being appealed.” In light of the foregoing, the appeal is denied.

Title 44 CFR §206.205 states the final payment of the Federal share of small projects will be made upon approval of the project. The grantee must certify that the approved project was completed. However, the Federal payment is not reduced if the project is completed for less than the estimated cost. This process provides funds to the applicants quicker and reduces the administrative cost associated with the grant. Generally, FEMA will review appeals of small projects only if the applicant can demonstrate that there were significant omissions in the original scope of work. In this case, the original project worksheet reflected the correct items of work to repair the facility, even though the quantities of some items were larger that the amount estimated. Since there were no significant omissions in the approved scope of work, there is no basis for approving the appeal.

Please inform the Municipality of my determination. My decision constitutes the final decision on this matter as set forth in 44 CFR §206.206.

Sincerely,
/S/
John R. D’Araujo, Jr.

Assistant Director
Response and Recovery Directorate

cc: Jose A. Bravo
Manager
FEMA Caribbean Area Office