Water Tank Replacement

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-0979-DR
ApplicantLos Angeles Retarded Citizens Water Authority
Appeal TypeSecond
PA ID#037-91164
PW ID#47814
Date Signed1999-07-07T04:00:00
Citation: FEMA-0979-DR-CA; Los Angeles Retarded Citizens Water Authority, DSR 47814

Cross Reference: 1993 California Winter Storms, Los Angeles Retarded Citizens Water Authority, Water Tank Relocation, Cost Overruns, Immediate Threat

Summary: The winter storms of 1993 activated a landslide which damaged the supply piping from the existing water tank on the LARC ranch. It was determined that the landslide posed an immediate threat to the tank itself. After comparison, the relocation of the tank was determined to be more cost-effective than stabilization of the landslide. DSRs were written for $422,600 to relocate the tank, $13,500 for overruns in completing the tank relocation, $435,958 for actual costs for code requirements and additional soils work and $13,500 to hydro-seed the fresh cut slopes for erosion control along the tank site and the access road. A Final Inspection Report was submitted that requested an additional $451,159 that had not been covered by the previous DSRs. FEMA determined that costs associated with code upgrades were ineligible. These costs were related to the capacity of the new tank and the access road to the new tank. DSR 16887 was approved which de-obligated $654,982. The first appeal requested that funds be re-instated because the costs were associated with eligible code requirements. FEMA determined that the code requirements were ineligible because the code appeared to give the Fire Marshall discretionary authority. However, DSR 58689 was prepared in the amount of $10,339 for costs associated with the geologic investigations. The second appeal maintains that the code requirements were not discretionary.

Issues:Are the cost overruns eligible?

Findings: Yes. Additional costs associated with the completion of eligible work are eligible.

Rationale: The Stafford Act authorizes FEMA to reimburse actual costs incurred in the performance of eligible work.

Appeal Letter

July 7, 1999

Mr. D.A. Christian
Governor's Authorized Representative
Governor's Office of Emergency Services
Post Office Box 419023
Rancho Cordova, California 95741-9023

RE: Second Appeal - Los Angeles Retarded Citizens Water Agency (LARCWA), Water Tank, FEMA-979-DR-CA, DSR 16887

Dear Mr. Christian:

This letter is in response to the referenced second appeal, transmitted by your March 3, 1999, letter. The referenced Damage Survey Report was prepared to reduce funds for the project.

The winter storms of 1993 activated a landslide which damaged the supply piping from an existing 100,000-gallon water tank. The Disaster Recovery Manager determined that the landslide posed an immediate threat to the tank itself. The relocation of the tank was determined to be more cost-effective than stabilization of the landslide. FEMA approved DSR 47814 on June 23, 1993, for $422,600 to build a 300,000-gallon tank at an alternate location. On January 20, 1994, FEMA approved DSR 85006 for $13,500 to cover cost overruns in completing the construction of the new tank. FEMA approved DSRs 83118 and 83115 on June 2, 1995, for $435,958 to cover actual costs for code requirements and additional soils work and for $13,500 to hydro-seed the fresh cut slopes for erosion control along the tank site and the access road, respectively. On July 3, 1996, the applicant submitted a Final Inspection Report (FIR) and requested an additional $451,159. The Disaster Recovery Manager determined that the costs associated with code upgrades were ineligible. These costs were related to the capacity of the new tank and the access road to the new tank.

After careful consideration, I have determined that our original determination in DSR 47814 was correct. Therefore, I have also determined that the actual costs requested in the Final Inspection Report are eligible, as they were an extension of the performance of eligible work. By copy of this letter, I am requesting the Disaster Recovery Manager prepare a DSR in the amount of $1,135,802.

The subgrantee's appeal is approved. Please inform the applicant of my determination.

Sincerely,

/S/

Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate

cc: Richard A. Buck
Disaster Recovery Manager
FEMA Region IX
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