Additional Power and Testing Costs
Appeal Brief
Appeal Letter
B>Citation: Appeal Analysis; Second Appeal; Lake County; FEMA-1046-DR-CA; PA #033-00000
Cross-Reference: DSR 73737; Additional Pumping and Testing Costs
Summary: Following the winter storms of 1995, in Lake County (County), FEMA prepared DSR 73737 to fund repair of inundated pumps, additional testing, sand bagging, protective riprap and increased power costs to operate raw sewage pumps. Upon review, FEMA reduced the approved DSR from $24,808 to $10,757, by eliminating servicing of and repair of two motors, as well as additional power consumption, and bacteriological testing which were not considered eligible emergency protective measures. The pump repair was considered permanent in nature and additional power and bacteriological testing were not considered eligible expenses for FEMA funding. On October 7, 1996, the State forwarded the subgrantee's first appeal requesting FEMA reinstate the funding for DSR 73737 by including $5,813 for increased power costs, $2,522 for bacteriological testing, and $5,715 to repair two pumps. On December 11, 1996, the Regional Director partially denied the appeal. It was determined that the increased power consumption fluctuations and bacteriological testing were covered by a contingency fund for such circumstances and not eligible for FEMA funding. However, the pump repair was determined eligible and DSR 83833 was prepared for $5,715. On June 10, 1997, the State submitted the subgrantee's second appeal requesting $5,813 for increased power usage from continual pumping of raw sewage from flooded lift stations. In the second appeal the subgrantee contends that the increased power usage is eligible as a direct result of the flooding, and a necessary action to eliminate an immediate threat to life, public health, and safety, pursuant to 44 CFR 206.225 (3)(i).
Issues: Should FEMA fund increased utility cost incurred following a disaster?
Findings: No. Power consumption costs are an operational expense, and, therefore, do not meet any of the eligibility requirements for an emergency response.
Rationale: A requirement for all types of utilities is that increases in operating expenses, even if a result of a disaster, are not eligible.
Appeal Brief
| Disaster | FEMA-1046-DR |
| Applicant | Lake County |
| Appeal Type | Second |
| PA ID# | 033-00000 |
| PW ID# | 73737 |
| Date Signed | 1997-11-04T05:00:00 |
Cross-Reference: DSR 73737; Additional Pumping and Testing Costs
Summary: Following the winter storms of 1995, in Lake County (County), FEMA prepared DSR 73737 to fund repair of inundated pumps, additional testing, sand bagging, protective riprap and increased power costs to operate raw sewage pumps. Upon review, FEMA reduced the approved DSR from $24,808 to $10,757, by eliminating servicing of and repair of two motors, as well as additional power consumption, and bacteriological testing which were not considered eligible emergency protective measures. The pump repair was considered permanent in nature and additional power and bacteriological testing were not considered eligible expenses for FEMA funding. On October 7, 1996, the State forwarded the subgrantee's first appeal requesting FEMA reinstate the funding for DSR 73737 by including $5,813 for increased power costs, $2,522 for bacteriological testing, and $5,715 to repair two pumps. On December 11, 1996, the Regional Director partially denied the appeal. It was determined that the increased power consumption fluctuations and bacteriological testing were covered by a contingency fund for such circumstances and not eligible for FEMA funding. However, the pump repair was determined eligible and DSR 83833 was prepared for $5,715. On June 10, 1997, the State submitted the subgrantee's second appeal requesting $5,813 for increased power usage from continual pumping of raw sewage from flooded lift stations. In the second appeal the subgrantee contends that the increased power usage is eligible as a direct result of the flooding, and a necessary action to eliminate an immediate threat to life, public health, and safety, pursuant to 44 CFR 206.225 (3)(i).
Issues: Should FEMA fund increased utility cost incurred following a disaster?
Findings: No. Power consumption costs are an operational expense, and, therefore, do not meet any of the eligibility requirements for an emergency response.
Rationale: A requirement for all types of utilities is that increases in operating expenses, even if a result of a disaster, are not eligible.
Appeal Letter
November 4, 1997
Ms. Nancy Ward
Governor's Authorized Representative
Governor's Office of Emergency Services
Post Office Box 239013
Sacramento, California 95823
Dear Ms. Ward:
This is in response to your letter dated June 10, 1997, to the Federal Emergency Management Agency (FEMA). With that letter, you forwarded a second appeal of damage survey report (DSR) 73737 under FEMA-1046-DR-CA on behalf of Lake County (County), requesting FEMA to pay the costs associated with additional power usage to run sewage treatment facilities.
Following the winter storms of 1995, the County experienced flooding at various sewage treatment facilities, which created a higher electric demand for increased pumping of raw sewage. FEMA prepared DSR 73737 to cover costs to repair inundated pumps, additional testing, sand bagging, protective riprap and increased power costs. Upon review, FEMA reduced the approved DSR from $24,808 to $10,757 because additional power, bacteriological testing, and repair of damaged pumps were not considered eligible expenses for FEMA funding. On October 7, 1996, the State forwarded the subgrantee's first appeal requesting FEMA reinstate the funding in DSR 73737 associated with the $5,813 for increased power cost, $2,522 for bacteriological testing, and $5,715 for pump repairs. The Regional Director partially denied the first appeal because the increased power usage costs and bacteriological testing, which should be absorbed the County's contingency fund, were determined to be ineligible. However, the Regional Director allowed the costs of pump repairs as an eligible permanent repair.
In the second appeal, the County is requesting $5,813 for reimbursement of additional power usage cost. FEMA policy states "Another general requirement for all types of utilities is that increases in operating expenses, even if a result of the disaster, are not eligible." Even though additional wastewater pumping was required as a result of the disaster, the utility costs associated with this work is an increase in operational expense. Therefore, these costs are ineligible for FEMA assistance. Accordingly, I am denying the second appeal.
Please inform the County of my determination. The applicant may submit a third appeal to the Director of FEMA, through your office and the Regional Director, in accordance with 44 CFR 206.206. A third appeal must be submitted within 60 days after receipt of this determination.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
Ms. Nancy Ward
Governor's Authorized Representative
Governor's Office of Emergency Services
Post Office Box 239013
Sacramento, California 95823
Dear Ms. Ward:
This is in response to your letter dated June 10, 1997, to the Federal Emergency Management Agency (FEMA). With that letter, you forwarded a second appeal of damage survey report (DSR) 73737 under FEMA-1046-DR-CA on behalf of Lake County (County), requesting FEMA to pay the costs associated with additional power usage to run sewage treatment facilities.
Following the winter storms of 1995, the County experienced flooding at various sewage treatment facilities, which created a higher electric demand for increased pumping of raw sewage. FEMA prepared DSR 73737 to cover costs to repair inundated pumps, additional testing, sand bagging, protective riprap and increased power costs. Upon review, FEMA reduced the approved DSR from $24,808 to $10,757 because additional power, bacteriological testing, and repair of damaged pumps were not considered eligible expenses for FEMA funding. On October 7, 1996, the State forwarded the subgrantee's first appeal requesting FEMA reinstate the funding in DSR 73737 associated with the $5,813 for increased power cost, $2,522 for bacteriological testing, and $5,715 for pump repairs. The Regional Director partially denied the first appeal because the increased power usage costs and bacteriological testing, which should be absorbed the County's contingency fund, were determined to be ineligible. However, the Regional Director allowed the costs of pump repairs as an eligible permanent repair.
In the second appeal, the County is requesting $5,813 for reimbursement of additional power usage cost. FEMA policy states "Another general requirement for all types of utilities is that increases in operating expenses, even if a result of the disaster, are not eligible." Even though additional wastewater pumping was required as a result of the disaster, the utility costs associated with this work is an increase in operational expense. Therefore, these costs are ineligible for FEMA assistance. Accordingly, I am denying the second appeal.
Please inform the County of my determination. The applicant may submit a third appeal to the Director of FEMA, through your office and the Regional Director, in accordance with 44 CFR 206.206. A third appeal must be submitted within 60 days after receipt of this determination.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
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