Equipment Rates; Construction Inspection Costs; Flood Insurance
Appeal Brief
Appeal Letter
Citation:FEMA-0997-DR-IL; Calhoun County Unit Road District; PA ID 013-92003; DSRs 90185, 90188, 99182, 99183, 99189, 99190, 99192 and 99194.
Cross Reference: Storms and floods; ineligibility of indirect construction inspection costs; Equipment costs; replacement of a maintenance shed located in a floodplain.
Summary: The Calhoun County Unit Road District requested and received federal assistance from FEMA following the 1993 disaster. Early in 1999, more than five years after the disaster when the projects were being closed out, the applicant made representations for funding additional costs. These costs involved use of the Illinois Department of Transportation (IDOT) equipment rates; addition of construction inspection costs; and the replacement of Maintenance Shed #3. Equipment Rates. FEMA responded to the applicant's request by approving a number of DSRs to increase funding based on substituting IDOT equipment rates on projects that were approved in 1993. FEMA subsequently generated DSRs to deobligate the additional funds approved because they were found on review to be ineligible. The Regional Director denied the first appeal for the same reasons and the applicant submitted this second appeal. FEMA did not approve use of IDOT equipment rates at the time of the disaster. The County claimed that it was granted approval to use these rates but a survey of documents and files failed to indicate any such approval. A survey of 10 surrounding Counties showed that nine used FEMA's rates and the tenth used local rates that were equal to or less than FEMA's. The applicant claimed Construction Inspection Costs four years after the disaster. While 3% of project costs may be added for preparing and estimating DSRs, payment is only made based on records showing actual time spent on the task. These costs were, however, not documented because records were not kept. Therefore, FEMA cannot fund them. Regarding the Maintenance Shed issue, FEMA already resolved a second appeal. The Associate Director denied a second appeal on February 29, 2000, finally closing the project.
Issue: Should FEMA fund the additional costs claimed by the applicant for substituting IDOT equipment rates in place of FEMA's rates, the inclusion of construction inspection expenses, and the replacement cost of a maintenance shed that was located in a flood plain?
Findings: No.
Rationale: 44 CFR 206.228 (a) (2) (ii).
Appeal Brief
| Disaster | FEMA-0997-DR |
| Applicant | Calhoun County Unit Road District |
| Appeal Type | Second |
| PA ID# | 013-92003 |
| PW ID# | 90185,90188,99182,99183,99189,99190 |
| Date Signed | 2001-01-12T05:00:00 |
Cross Reference: Storms and floods; ineligibility of indirect construction inspection costs; Equipment costs; replacement of a maintenance shed located in a floodplain.
Summary: The Calhoun County Unit Road District requested and received federal assistance from FEMA following the 1993 disaster. Early in 1999, more than five years after the disaster when the projects were being closed out, the applicant made representations for funding additional costs. These costs involved use of the Illinois Department of Transportation (IDOT) equipment rates; addition of construction inspection costs; and the replacement of Maintenance Shed #3. Equipment Rates. FEMA responded to the applicant's request by approving a number of DSRs to increase funding based on substituting IDOT equipment rates on projects that were approved in 1993. FEMA subsequently generated DSRs to deobligate the additional funds approved because they were found on review to be ineligible. The Regional Director denied the first appeal for the same reasons and the applicant submitted this second appeal. FEMA did not approve use of IDOT equipment rates at the time of the disaster. The County claimed that it was granted approval to use these rates but a survey of documents and files failed to indicate any such approval. A survey of 10 surrounding Counties showed that nine used FEMA's rates and the tenth used local rates that were equal to or less than FEMA's. The applicant claimed Construction Inspection Costs four years after the disaster. While 3% of project costs may be added for preparing and estimating DSRs, payment is only made based on records showing actual time spent on the task. These costs were, however, not documented because records were not kept. Therefore, FEMA cannot fund them. Regarding the Maintenance Shed issue, FEMA already resolved a second appeal. The Associate Director denied a second appeal on February 29, 2000, finally closing the project.
Issue: Should FEMA fund the additional costs claimed by the applicant for substituting IDOT equipment rates in place of FEMA's rates, the inclusion of construction inspection expenses, and the replacement cost of a maintenance shed that was located in a flood plain?
Findings: No.
Rationale: 44 CFR 206.228 (a) (2) (ii).
Appeal Letter
January 12, 2001
Mr. David L. Smith, Chief
Disaster Assistance and Preparedness
Illinois Emergency Management Agency
110 East Adams Street
Springfield, Illinois 62701
Re: Second Appeal: Calhoun County Unit Road District, P.A. ID 013-92003; Equipment Rates; Construction Inspection Costs; Flood Insurance; FEMA-0997-DR-IL; DSR 90185,90188, 99182, 99183, 99189, 99190, 99192 and 99194.
Dear Mr. Smith:
This is in response to your July 18, 2000, letter forwarding the Calhoun County Unit Road District's second appeal of the Federal Emergency Management Agency's (FEMA's) determination of eight Damage Survey Reports (DSRs). FEMA approved DSRs 90185, 90188, 99189, 99190, 99192 and 99194 in August 1999 to deobligate DSRs that had been written to increase funding on previously approved DSRs for road repair following the 1993 heavy rains and flooding disaster. The reason for the deobligations was that the applicant substituted State of Illinois Department of Transportation (IDOT) equipment rates for FEMA's rates although FEMA had not approved IDOT rates for use by the County. DSR 99182 was generated to deobligate funding that had been approved for construction inspection costs, and DSR 99183 deobligated funding that had been approved for a building that was not insured.
In each case, the original DSR for assistance was written in the year 1993. The DSRs that were written for increased costs were written in early-1999 when the applicant made requests for more funding. The deobligating DSRs were written in August 1999 after the cases were reviewed. The applicant, therefore, had been allowed to request additional costs for work that had been approved at least five years earlier and to submit first appeals when these requests were denied. In view of the fact that the region accepted these very late requests and then accepted the first appeal after the projects were deemed ineligible, FEMA will consider these second appeals.
Equipment Rates - DSRs 90185, 90188, 99189, 99190, 99192 and 99194
Regarding the use of IDOT equipment rates on these DSRs, the applicant claimed that it was granted approval to use these rates prior to the 1993 disaster. A survey of documents and correspondence in the applicant's files located in the Public Assistance Section of the Illinois Emergency Management Office, however, indicated that FEMA did not approve the applicant's use of IDOT equipment rates at the time of the disaster. FEMA also surveyed County Highway Departments in 10 surrounding counties and determined that FEMA rates were used in nine counties and the tenth used local rates that were equal to or less than FEMA rates.
Many of these applicants' files included requests to use IDOT rates that were denied. IDOT rates were approved only for applicants who had written authorizations from the State's Transportation District Engineer for that geographical district. Because the applicant did not have this authorization, FEMA did not approve use of the rates in 1993 and deobligated the DSRs that were approved early in 1999. On May 4, 2000, the Regional Director reaffirmed FEMA's position in denying the applicant's first appeal.
I have reviewed the information submitted with the second appeal, as well as the Regional Director's response to the first appeal (copy enclosed) and have determined that the Regional Director's decision is consistent with program statute and regulations. Therefore, I am denying the appeal.
Construction Inspection Costs - DSR 99182
On March 30, 1999, FEMA generated and approved DSR 91115 for $60,157 representing 3% of Category C work performed on roads, bridges and culvert repairs following the 1993 disaster. The funding was determined to be ineligible on review at the region and DSR 99182 was generated to deobligate DSR 91115. The applicant appealed the determination and the Regional Director denied the first appeal on May 4, 2000. The Regional Director found that the projects were routine road repair that did not require construction inspection.
I have reviewed the information submitted with the second appeal. While 3% of the project costs may be added for estimating the DSRs, payment is only made based on records showing the actual time spent on the task. The inspection costs the applicant claimed, however, were not documented because records were not kept. I am denying this second appeal because there is no documentation to support the work claimed.
Flood Insurance - Maintenance Shed #3 - DSR 99183
On December 14, 1993, DSR 89458 was approved for $3,845 to reimburse the County for materials it purchased to repair Maintenance Shed #3 that was inundated with water from the disaster. During closeout in 1999, the applicant submitted estimates showing that the cost to repair the shed was $87,000 while the replacement cost was $75,000. The applicant requested a re-inspection and replacement of the Maintenance Shed. FEMA and the State denied the County's request for a re-inspection. Despite this, however, in January 1999, a member of FEMA's closeout team inspected the shed and prepared DSR 19911 to replace the facility at a cost of $85,793. The shed was located in the 100-year floodplain. The Deputy Regional Director on April 23, 1999 concluded that the re-inspection was not justified and that damages from the 1993 incident should have been identified in a timely manner. DSR 19911 was processed for $0 on May 4, 1999 on review.
On June 24, 1999, the applicant appealed the region's determination asking that the appeal be sent to FEMA headquarters as a second appeal. The Executive Associate Director denied the appeal on February 29, 2000, (copy enclosed) because the maintenance shed was located in a flood plain and was not covered by flood insurance. The Associate Director also recommended that DSR 99183 for $3,845 and DSR 97687 for $29,047 be deobligated. This project has been through the full appeal process and is now considered closed. No further action will be taken in this office on DSR 99183.
Conclusion
Based on the above discussions, the second appeal of FEMA's determination of DSRs 90185, 90188, 99182, 99189, 99190, 99192 and 99194 is denied. The second appeal of the determination of DSR 99183 for the contents of Maintenance Shed #3 and for the replacement of the shed will not be considered since the Executive Associate Director has already denied a second appeal.
Please inform the applicant of this determination. My decision constitutes the final decision on this matter as set forth in 44 CFR 206.206.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
Enclosure
cc: Janet M. Odeshoo
Acting Regional Director
FEMA Region V
Mr. David L. Smith, Chief
Disaster Assistance and Preparedness
Illinois Emergency Management Agency
110 East Adams Street
Springfield, Illinois 62701
Re: Second Appeal: Calhoun County Unit Road District, P.A. ID 013-92003; Equipment Rates; Construction Inspection Costs; Flood Insurance; FEMA-0997-DR-IL; DSR 90185,90188, 99182, 99183, 99189, 99190, 99192 and 99194.
Dear Mr. Smith:
This is in response to your July 18, 2000, letter forwarding the Calhoun County Unit Road District's second appeal of the Federal Emergency Management Agency's (FEMA's) determination of eight Damage Survey Reports (DSRs). FEMA approved DSRs 90185, 90188, 99189, 99190, 99192 and 99194 in August 1999 to deobligate DSRs that had been written to increase funding on previously approved DSRs for road repair following the 1993 heavy rains and flooding disaster. The reason for the deobligations was that the applicant substituted State of Illinois Department of Transportation (IDOT) equipment rates for FEMA's rates although FEMA had not approved IDOT rates for use by the County. DSR 99182 was generated to deobligate funding that had been approved for construction inspection costs, and DSR 99183 deobligated funding that had been approved for a building that was not insured.
In each case, the original DSR for assistance was written in the year 1993. The DSRs that were written for increased costs were written in early-1999 when the applicant made requests for more funding. The deobligating DSRs were written in August 1999 after the cases were reviewed. The applicant, therefore, had been allowed to request additional costs for work that had been approved at least five years earlier and to submit first appeals when these requests were denied. In view of the fact that the region accepted these very late requests and then accepted the first appeal after the projects were deemed ineligible, FEMA will consider these second appeals.
Equipment Rates - DSRs 90185, 90188, 99189, 99190, 99192 and 99194
Regarding the use of IDOT equipment rates on these DSRs, the applicant claimed that it was granted approval to use these rates prior to the 1993 disaster. A survey of documents and correspondence in the applicant's files located in the Public Assistance Section of the Illinois Emergency Management Office, however, indicated that FEMA did not approve the applicant's use of IDOT equipment rates at the time of the disaster. FEMA also surveyed County Highway Departments in 10 surrounding counties and determined that FEMA rates were used in nine counties and the tenth used local rates that were equal to or less than FEMA rates.
Many of these applicants' files included requests to use IDOT rates that were denied. IDOT rates were approved only for applicants who had written authorizations from the State's Transportation District Engineer for that geographical district. Because the applicant did not have this authorization, FEMA did not approve use of the rates in 1993 and deobligated the DSRs that were approved early in 1999. On May 4, 2000, the Regional Director reaffirmed FEMA's position in denying the applicant's first appeal.
I have reviewed the information submitted with the second appeal, as well as the Regional Director's response to the first appeal (copy enclosed) and have determined that the Regional Director's decision is consistent with program statute and regulations. Therefore, I am denying the appeal.
Construction Inspection Costs - DSR 99182
On March 30, 1999, FEMA generated and approved DSR 91115 for $60,157 representing 3% of Category C work performed on roads, bridges and culvert repairs following the 1993 disaster. The funding was determined to be ineligible on review at the region and DSR 99182 was generated to deobligate DSR 91115. The applicant appealed the determination and the Regional Director denied the first appeal on May 4, 2000. The Regional Director found that the projects were routine road repair that did not require construction inspection.
I have reviewed the information submitted with the second appeal. While 3% of the project costs may be added for estimating the DSRs, payment is only made based on records showing the actual time spent on the task. The inspection costs the applicant claimed, however, were not documented because records were not kept. I am denying this second appeal because there is no documentation to support the work claimed.
Flood Insurance - Maintenance Shed #3 - DSR 99183
On December 14, 1993, DSR 89458 was approved for $3,845 to reimburse the County for materials it purchased to repair Maintenance Shed #3 that was inundated with water from the disaster. During closeout in 1999, the applicant submitted estimates showing that the cost to repair the shed was $87,000 while the replacement cost was $75,000. The applicant requested a re-inspection and replacement of the Maintenance Shed. FEMA and the State denied the County's request for a re-inspection. Despite this, however, in January 1999, a member of FEMA's closeout team inspected the shed and prepared DSR 19911 to replace the facility at a cost of $85,793. The shed was located in the 100-year floodplain. The Deputy Regional Director on April 23, 1999 concluded that the re-inspection was not justified and that damages from the 1993 incident should have been identified in a timely manner. DSR 19911 was processed for $0 on May 4, 1999 on review.
On June 24, 1999, the applicant appealed the region's determination asking that the appeal be sent to FEMA headquarters as a second appeal. The Executive Associate Director denied the appeal on February 29, 2000, (copy enclosed) because the maintenance shed was located in a flood plain and was not covered by flood insurance. The Associate Director also recommended that DSR 99183 for $3,845 and DSR 97687 for $29,047 be deobligated. This project has been through the full appeal process and is now considered closed. No further action will be taken in this office on DSR 99183.
Conclusion
Based on the above discussions, the second appeal of FEMA's determination of DSRs 90185, 90188, 99182, 99189, 99190, 99192 and 99194 is denied. The second appeal of the determination of DSR 99183 for the contents of Maintenance Shed #3 and for the replacement of the shed will not be considered since the Executive Associate Director has already denied a second appeal.
Please inform the applicant of this determination. My decision constitutes the final decision on this matter as set forth in 44 CFR 206.206.
Sincerely,
/S/
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
Enclosure
cc: Janet M. Odeshoo
Acting Regional Director
FEMA Region V
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