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CALIFORNIA CODE OF REGULATIONS
TITLE 19. PUBLIC SAFETY
DIVISION 2. CALIFORNIA EMERGENCY MANAGEMENT AGENCY
CHAPTER 6. DISASTER ASSISTANCE ACT
ARTICLE 1. STATE PUBLIC ASSISTANCE PROGRAM
Date:
08/31/2009
Document:
ยง 2910. Cost Eligibility
(a) General Provisions:
(1) Local agency costs or expenditures are eligible for state financial assistance provided such expenditures relate directly to an eligible disaster event;
(2) Expenditures included in local agency applications for state financial assistance must be reasonable and in accordance with a local agency's standard cost allocation procedure, and,
(3) No state financial assistance will be provided to a local agency for damages caused by its own negligence. If negligence by another party results in damages, assistance shall be provided, but shall be conditioned on agreement by the applicant agency to cooperate fully with the state in all efforts necessary to recover the costs of such assistance from the negligent party.
(4) Local agencies are expected to first seek federal funding and to exhaust federal appeal rights before seeking state funding. No state assistance will be provided if the local agency has, through its own negligence, failed to pursue maximum federal participation in funding projects.
(b) Wages:
The following wage costs are eligible for state financial assistance:
(1) Local agency personnel costs incurred as a result of the disaster are eligible for funding or reimbursement, excluding the straight or regular time salaries and benefits of an applicant's permanently employed personnel performing emergency work.
(2) Overtime granted as compensatory time off (CTO) is reimbursable and shall be based on the standard rate (i.e., regular cash rate) for overtime pay; and,
(3) Wage additive costs, including retirement contributions, vacation, sick leave and other fringe benefit costs assessed against the regular wage rate of employees engaged in disaster related work activities.
(c) Local Share:
When local agencies are required to cost share with state and federal public assistance programs, the local share determination shall be governed by the following:
(1) Matching fund assistance for cost sharing required under federal public assistance programs is an eligible cost. Public assistance programs include supplementary federal assistance for local agencies, other than assistance for the direct benefit of individuals and families. Such assistance shall also meet the eligibility requirements of the Act.
(2) Donated resources: Donated resources used on eligible work that is essential to meeting immediate threats to life and property from a major disaster may count towards satisfying a local cost sharing or matching requirement under state and federal public assistance programs. The valuation of donated resources will be calculated as follows:
(i) Unpaid services provided to an applicant by individuals will be valued at rates consistent with those ordinarily paid for similar work in the applicant's organization. If the applicant does not have employees performing similar work, the rates will be consistent with those ordinarily paid by other employers for similar work in the same labor market. Wage additive costs described in paragraph (b)(3) of this Section may be included in the valuation.
(ii) Donated equipment or space will be valued at the fair rental rate of the equipment or space.
(iii) Donated materials will be valued at the fair market value of the materials at the time of the donation.
(d) Equipment:
The secretary shall authorize reimbursement of certain types of equipment costs as follows:
(1) Actual equipment rentals;
(2) Equipment costs for applicant-owned equipment shall be claimed based on the applicant's own rate schedules or in the absence of such a rate schedule, on current Department of Transportation (Caltrans) Labor Surcharge and Equipment Rental Rates. Equipment rates must cover normal costs of lube, repair, overhaul, depreciation, interest, insurance, storage, and taxes. For self-powered equipment, the schedule must include fuel and oil. The secretary reserves the right to audit claims for the reimbursement on applicant-owned equipment.
(3) Equipment mobilization and demobilization costs for applicant-owned equipment, including transportation costs to and from the disaster sites. Equipment operation time should be supported by use logs and operator time sheets; and,
(4) Stand-by time shall be allowed for rental equipment, if determined cost effective by the secretary. Stand-by time shall not be allowed for applicant owned-equipment.
(e) Interagency Assistance Agreements:
Costs for work performed under interagency assistance agreements, including but not limited to contracts or cooperative agreements or assistance-for-hire agreements between local governments or between local governments and state agencies, are eligible for reimbursement, but are limited to those costs of the responding entity for which an eligible applicant is legally obligated to pay. Eligible costs shall include only those reasonable costs invoiced or billed in accordance with reimbursement provisions contained in such interagency assistance agreements.
(f) Other Direct Costs:
The following local agency costs shall be considered direct costs for purposes of these programs:
(1) Salaries and benefits of first-line supervisors. No administrative salary and benefit costs above first-line supervision may be claimed as a direct cost;
(2) Actual travel and per diem costs;
(3) The costs of supplies and materials used during response activities;
(4) Costs associated with the preparation of environmental documents required by CEQA or NEPA, for obtaining federal, state, and local agency approvals or permits, or for the implementation of mitigation measures required by environmental documents, or costs associated with the implementation of the terms, conditions, or requirements of a permitting agency; and,
(5) Other direct costs which may be considered eligible by the secretary, including costs relating directly to the disaster which are not otherwise funded by federal or state disaster assistance programs, or which are not expressly prohibited by federal or state law, federal regulations, these regulations or prohibited by the federal or state constitution.
(g) Indirect and Administrative Costs:
A local agency will receive a ten percent (10%) administrative allowance, applied as a percentage against the total approved state share to cover reasonable indirect costs and the necessary costs of requesting, obtaining, auditing, and administering state disaster assistance funds.
(h) Ineligible Costs:
A local agency shall not receive state assistance for the following types of costs or expenditures:
(1) Expenditures for personal property such as books, furniture, and equipment;
(2) Income, fees, revenues, wages, or rents lost or voluntarily waived by a local agency due to the disaster event;
(3) Expenditures on normal or deferred maintenance activities;
(4) Expenditures for facility betterment beyond current codes and standards of present day construction, or approved mitigation projects. Betterment costs beyond approved project costs must be assumed by the local agency;
(5) Expenditures for legal services, fees, or penalties necessitated or caused by lawsuits or any out-of-court settlements pertaining to a disaster;
(6) Expenditures for insurance required by the Federal Emergency Management Agency's (FEMA) regulations or for damage to a portion of a facility covered by insurance;
(7) Expenditures for rights-of-way, easements, or land acquisition;
(8) Losses for which an entity has legal means of recoupment;
(9) Interest or other debt expense incurred on funds borrowed to meet disaster related expenses;
(10) Expenditures for damages caused by the local agency's own negligence;
(11) Expenditures prohibited by federal or state law, federal or state regulations, or the federal or state constitution; or,
(12) An increase in the state share which is a result of missed deadlines, penalties or which otherwise results from non-compliance with the requirements of other public assistance programs related to the disaster.
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