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Second Appeal Brief
PA ID# 069-45614-00; City of Malden
PW ID# 414; Increased Operating Costs
Citation: FEMA-1822-DR-MO, City of Malden; Project Worksheet (PW) 414
Reference: Increased Operating Costs
Summary: Severe winter storms in Missouri damaged power lines from falling trees and ice. The City of Malden (Applicant) lost commercial power from January 27, 2009 to February 25, 2009. FEMA prepared PW 414 force account labor, equipment use, and mutual aid agreements to power the city’s backup power substation for a total of $320,818. The PW was deemed ineligible because obtaining electric power from an alternate source is not an eligible cost and is considered an increased operating expense. In the first appeal, the Applicant stated that the project eligibility was misinterpreted and claimed that their project costs fall under Category B, Emergency Work, and are necessary to eliminate or reduce an immediate threat to life, public health, or safety. The FEMA Regional Administrator denied the first appeal because obtaining electric power from an alternate source is not authorized under the Stafford Act and considered an increased operating expense (FEMA 322). In the second appeal, the Applicant reiterates their argument for the eligibility of their project.
Issue: Is the cost of providing electrical power from an alternate source eligible for funding?
Finding: No. Obtaining electrical power from an alternate source is not authorized for funding under the Stafford Act and is considered an increased operating expense.
Rationale: FEMA Public Assistance Guide (FEMA 322), Increased Operating Expenses, pages 54-55, dated June 2007.