Categorizing Losses

T IDALBAS INGROUP.COM 9 be kept in mind when dealing with Category E losses: • While it is appropriate for FEMA to replace a piece of equipment with “like, kind and quality,” including a used item, such an item may not be readily available, thus a new item may have to be purchased. • FEMA must use the Cost Estimating Format (CEF) to determine repair costs for large projects. It is important for Subrecipients to work with FEMA in determining the correct cost factors such as an extraordinary demand caused by the event and the appropriate costs for materials, overhead and profit, etc. • If a Subrecipient is claiming an upgrade based on local codes or standards, they must be prepared to demonstrate that the standard existed prior to the event and that it is enforceable. • Locate and duplicate original building drawings/plans or major repair plans for submission to FEMA. • Photographs before, during and after are extremely valuable. Category F—Utilities Electrical Restore to pre-disaster design in the most economical manner. Extra pole structures are necessary at times to restore the function when erosion has destroyed stream banks, and ground clearance must be maintained over longer distances. Sewer Visual evidence of ground subsidence indicating infiltration into the pipe must be present. • Limited TV inspection is eligible when damage is apparent. Use of TV inspection to search for problems is not eligible. • Cleaning of disaster-related debris from sewer lines is eligible only when necessary to restore adequate functioning of the system in specific reaches when the pre-existing condition cannot be established. Revenues Loss of revenue is not eligible. Added costs or charges for providing regular utility services are not eligible (often referred to as increased operating costs). When dealing with utilities, a Subrecipient generally has two sets of costs: what was done immediately to restore service (Category B) and what was done as a permanent solution (Category F). In some cases, however, the immediate fix is the permanent solution.