Building Contents
Appeal Brief
| Disaster | 1909-DR-TN |
| Applicant | Nashville-Davidson County |
| Appeal Type | Second |
| PA ID# | 037-52004-00 |
| PW ID# | 5405 |
| Date Signed | 2014-09-04T00:00:00 |
.Conclusion: On second appeal, Nashville-Davidson County (Applicant) provided sufficient documentation to demonstrate that the replacement of two water heaters in the mechanical rooms of its Market House (facility) is eligible for Public Assistance funding.
Summary Paragraph
From April 30 through May 18, 2010, severe storms caused major flooding throughout Nashville-Davidson County. The Applicant’s Market House, within its Farmer’s Market, was partially submerged when the Cumberland River overflowed. FEMA prepared PW 5405 to address repairs necessary to restore the facility to pre-disaster condition. In its first appeal, the Applicant presented four issues. One of the issues raised by the Applicant involved water heaters in mechanical rooms located on the main level of the facility. The water heaters were replaced per local codes. In the first appeal, the Applicant argued that FEMA failed to include the water heaters in PW 5405, but the Applicant was not aware of this “until after the deadline…” The Region IV Regional Administrator (RA) denied the water heaters because the Applicant failed to identify the number of water heaters it replaced and the cost for replacement. However, the RA determined the water heaters may be eligible for PA funding. In its second appeal, the Applicant provides the number of water heaters (2) and the total cost ($1,000). The Applicant argues that this information was available in the original cost overrun documentation that it submitted.
Authorities and Second Appeals
- Stafford Act § 406, 42 U.S.C. § 5172
- 44 C.F.R. § 206.226(h)
Headnotes
- Pursuant to the Stafford Act § 406, FEMA funding may be available to a state or local government for the repair, restoration, and replacement of damaged or destroyed facilities under a major disaster.
- In addition, 44 C.F.R. § 206.226 states that “work to restore eligible facilities on the basis of the design of such facilities as they existed immediately prior to the disaster” may be eligible for assistance. If equipment and furnishings are damaged beyond repair, comparable items are eligible as replacement items.
- In the second appeal, the Applicant provided the number of water heaters replaced, the total cost for their replacement, and additional documentation to substantiate its claim.
- Replacement of the water heaters is eligible for PA funding.
Appeal Letter
September 4, 2014
David Purkey
Interim Director
Tennessee Emergency Management Agency
3041 Sidco Drive, P.O. Box 41502
Nashville, TN 37204-1502
Re: Second Appeal – Nashville-Davidson County, PA ID 037-52004-00, FEMA-1909-DR-TN, Project Worksheet (PW) 5405 – Building Contents
Dear Mr. Purkey:
This is in response to your letter, dated May 20, 2014, which transmitted the referenced second appeal on behalf of Nashville-Davidson County (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $1,000 in Public Assistance funding for replacement of two water heaters in the mechanical rooms of its Market House.
As explained in the enclosed analysis, I have determined that the Applicant provided sufficient documentation to demonstrate that replacement of the water heaters is eligible for Public Assistance funding. Therefore, I am approving the appeal. By copy of this letter, I am requesting the Regional Administrator take appropriate action to implement this determination.
Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.
Sincerely,
/s/
William W. Roche
Director
Public Assistance Division
Enclosure
cc: Andrew Velasquez, III
Regional Administrator
FEMA Region IV
Appeal Analysis
Background
From April 30 through May 18, 2010, severe storms caused major flooding throughout the Metropolitan Government of Nashville and Davidson County (hereinafter Nashville-Davidson County). The Nashville-Davidson County’s (Applicant) Market House (facility), within its Farmer’s Market, was partially submerged after the Cumberland River overflowed. FEMA prepared PW 5405 to address repairs necessary to restore the facility to pre-disaster condition. Repairs included cleaning and painting various rooms, replacing drywall in common areas and bathrooms, replacing the HVAC, plumbing and electrical units, and removing, disposing of, and replacing a freight elevator and all associated components.
First Appeal
In its first appeal, dated February 8, 2013, the Applicant presented four issues for appeal. The first issue involved tenant spaces. The Applicant asserted that it was legally responsible for repairing damage to the electrical unit, walls, floors, and other aspects of the tenant spaces on the main level of the facility. The second issue involved FEMA’s denial of a Hazard Mitigation Proposal (HMP) for an emergency generator. The third issue involved FEMA’s denial of $4,245 in repairs to the Employee Break Room on the main floor. Finally, the fourth issue involved water heaters in mechanical rooms located on the main level of the facility. The water heaters were replaced per local codes. The Applicant argued that FEMA failed to include the water heaters in PW 5405, but the Applicant was not aware of this “until after the deadline…”
In a letter dated February 28, 2014, the Region IV Regional Administrator (RA) denied the first appeal with respect to the first, second, and fourth issues. The RA denied the tenant spaces because the Applicant agreed the spaces were ineligible and requested that FEMA de-obligate them in an earlier Version of PW 5405. The RA denied the HMP for the generator because it was not a reasonable mitigation measure or an appropriate use of hazard mitigation discretionary funding under section 406 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 (Stafford Act).[1] The RA denied the water heaters because the Applicant failed to identify the number of water heaters that it replaced and the cost of replacement, but noted the water heaters may be eligible for PA funding. With respect to the third issue, the RA approved funding for repairs to the employee break room.
Second Appeal
In its second appeal, dated May 14, 2014, the Applicant is only appealing the fourth issue involving the water heaters. The Applicant asserts it replaced two water heaters, for a total of $1,000, in the mechanical rooms of the facility. In addition, the Applicant contends that this information was included in the original cost overrun documentation it submitted.
Discussion
Section 406(e) of the Stafford Act authorizes FEMA to provide Public Assistance (PA) funding to a state or local government for the repair, restoration, and replacement of damaged or destroyed facilities under a major disaster.[2] Title 44 of the Code of Federal Regulations (C.F.R.) § 206.226 provides that “work to restore eligible facilities on the basis of the design of such facilities as they existed immediately prior to the disaster” may be eligible for assistance.[3] In addition, if equipment and furnishings are damaged beyond repair, comparable items are eligible as replacement items.[4]
The only issue in this appeal is the eligibility of replacement of two water heaters in the Applicant’s facility. In the first appeal, the RA stated that the water heaters in the mechanical rooms may be eligible, but denied funding for them because the Applicant did not provide an exact quantity or price. Through its second appeal, the Applicant has provided this information and additional documentation to support its claim.[5] Although the Applicant did not submit invoices, receipts, or other documentation that states the cost of the two water heaters, FEMA researched the average cost of water heaters[6] and determined that the cost requested by the Applicant is reasonable.[7] Accordingly, the cost to replace the water heaters in the Applicant’s facility is eligible for PA funding.
Conclusion
The Applicant provided sufficient documentation to demonstrate that the replacement of two water heaters in the mechanical rooms of its facility are eligible for PA funding. The cost associated with such is reasonable.
[1] The Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, Pub. L. No. 93-288, § 406, 42 U.S.C. § 5172 (2007).
[2] Stafford Act § 102, 42 U.S.C. § 5172.
[3] 44 C.F.R. § 206.226 (2010).
[4] See 44 C.F.R. § 206.226(h).
[5] See Second Appeal, Nashville-Davidson County, FEMA-1909-DR-TN, (May 14, 2014) (including additional information such as floor plans, a service contract, and a Continuation Sheet (application and certificate for payment)).
[6] See Cost to Replace a Water Heater, //www.homewyse.com/services/cost_to_replace_hot_water_heater.html , (June 18, 2014, 4:22 PM).
[7] See Public Assistance Guide, FEMA 322 at 41 (June 2007) (explaining that FEMA will generally analyze cost reasonableness by use of historical documentation for similar work, average costs for similar work in the area, published unit costs from national estimating databases, and FEMA cost codes).