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Second Appeal Summary
PA ID# 037-90621; Kaiser Foundation Health Plan, Inc.
DSR ID# 85445; Granada Hills Medical Office Building
Citation: Replacement of Equipment and Furnishings, Granada Hills Medical Office Building; Kaiser Foundation Health Plan, Inc.; FEMA-1008-DR-CA, P.A.I.D. # 037-90621, DSR 85445
Cross-Reference: Subject: Documentation of loss, insurance recovery. Comparable replacement items. FEMA Record: DSR #85445.
Summary: The Granada Hills Medical Office Building collapsed during the earthquake, and none of its contents could be recovered before demolition. Here-to-for FEMA had rejected the Subgrantee's claim because of the Subgrantee's failure to provide documentation of the lost items. Kaiser had appealed stating that the documentation required did not exist, and there was no opportunity to create an inventory because the building was dangerous after the earthquake.
Issues: (1) What constitutes sufficient documentation of the actual items lost in order for FEMA to justify eligibility? (2) If such documentation does not exist, and a building is destroyed such that an inventory is impossible, can a substitution be made? (3) Can a determination be made of what constitutes "comparable replacement items" in the absence of specific information as to age and use of the lost items?
Findings: (1&2) In the absence of detailed documentation, FEMA can exercise its discretion to waive its documentation requirements and may accept an inventory of items in a comparable facility provided by the Subgrantee. (3) FEMA determined the cost of comparable replacement items in accordance with documentation and settlement proposals submitted by the applicant and the judgement of its reviewers. FEMA has determined that $653,983 is eligible for reimbursement
Rationale: Stafford Act, Sec. 301; 44 CFR 206.223(a)(1); 44 CFR 206.202(d); 44 CFR. 206.226(f)