Water Tank Replacement

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Citation: FEMA-0979-DR-CA; Los Angeles Retarded Citizens Water Authority, DSR 47814

Cross Reference: 1993 California Winter Storms, Los Angeles Retarded Citizens Water Authority, Water Tank Relocation, Cost Overruns, Immediate Threat

Summary: The winter storms of 1993 activated a landslide which damaged the supply piping from the existing water tank on the LARC ranch. It was determined that the landslide posed an immediate threat to the tank itself. After comparison, the relocation of the tank was determined to be more cost-effective than stabilization of the landslide. DSRs were written for $422,600 to relocate the tank, $13,500 for overruns in completing the tank relocation, $435,958 for actual costs for code requirements and additional soils work and $13,500 to hydro-seed the fresh cut slopes for erosion control along the tank site and the access road. A Final Inspection Report was submitted that requested an additional $451,159 that had not been covered by the previous DSRs. FEMA determined that costs associated with code upgrades were ineligible. These costs were related to the capacity of the new tank and the access road to the new tank. DSR 16887 was approved which de-obligated $654,982. The first appeal requested that funds be re-instated because the costs were associated with eligible code requirements. FEMA determined that the code requirements were ineligible because the code appeared to give the Fire Marshall discretionary authority. However, DSR 58689 was prepared in the amount of $10,339 for costs associated with the geologic investigations. The second appeal maintains that the code requirements were not discretionary.

Issues:Are the cost overruns eligible?

Findings: Yes. Additional costs associated with the completion of eligible work are eligible.

Rationale: The Stafford Act authorizes FEMA to reimburse actual costs incurred in the performance of eligible work.