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Second Appeal Brief
PA ID# 000-00834-00; City of Chicago
PW ID# Project Worksheets 7056 and 1494; Duplication of Benefits
FEMA-3134/3161-EM-IL; City of Chicago
Duplication of Benefits
Snow emergencies FEMA-3134-EM-IL and FEMA 3161-EM-IL were declared as a result of heavy snow storms in January 1999 and December 2000. For both declarations, FEMA reimbursed the City of Chicago $7,849,565 for its snow removal costs at the OHare and Midway Airports. The Department of Homeland Securitys Office of the Inspector General (OIG) conducted an audit (DD-16-03) of the Applicants grants and determined that the $7,849,565 was a duplication of benefits based on the Airline Use Agreements between the Applicant and its two airport facilities. The audit concluded that the agreements establish that the airlines are required to pay for net operating and maintenance expenses, including costs for snow removal. FEMA agreed with the finding and notified the Illinois Emergency Management Agency of its determination to de-obligate the funds on February 8, 2005. The Applicant submitted its first appeal on June 13, 2005, appealing the OIGs audit and claiming that it did not receive payment for these snow removal costs from the airlines. The Applicant also asserted that it is FEMAs responsibility to pay for these costs. The Regional Director denied the appeal on August 2, 2006, because it was not clear that a duplication of benefits had not occurred and that the agreements did not relieve the airlines of funding snow removal work. The Applicant submitted its second appeal on October 23, 2006.
1. Are the airlines required to pay for snow removal according to the Airline Use Agreements?
2. Has the applicant provided documentation demonstrating that a duplication of benefits has not occurred?
Section 312, Duplication of Benefits, Robert T. Stafford Disaster Relief and Emergency Assistance Act.