Section R8-2-313. Allowable Claims Against the Fund

A.      The Director shall allow expenditures from the fund for a claim arising from an emergency only if:

1.        The amount claimed is a direct result of response or recovery operations to the emergency,

2.        The applicant is legally and financially responsible for providing response or recovery operations in the emer- gency, and

3.        The facility is other than a residential structure, and

4.        The amount claimed is authorized under the provisions of subsection (B) or (D).

5.        Once remediation is complete, projects will comply with appropriate state or federal environmental requirements, building, safety or other appropriate regulatory require- ments.

B.       The Director shall allow the following costs to be paid as claims against the fund:

1.        Overtime salaries or wages and benefits of the applicant's budgeted personnel directly engaged in eligible emer- gency work;

2.        Salaries or wages and benefits of the applicant’s budgeted personnel directly engaged in eligible permanent work;

3.        Salaries or wages and benefits of non-budgeted employ- ees directly engaged in eligible emergency or permanent work;

4.        Communication costs directly related to the emergency and directly requested by an eligible applicant;

5.        Travel and per diem costs directly related to the emer- gency for personnel requested by an eligible applicant;

6.        Materials and supplies consumed directly requested by an eligible applicant, except those listed under subsection (C)(2);

7.        Rental of privately owned equipment at documented con- tractual rates directly requested by an eligible applicant;

8.        Contributions toward the purchase of equipment if the necessary equipment is not available from federal, state, or local sources, and if the contribution does not exceed the cost of renting the item at prevailing local rates. Con- tribution will be reduced by the fair market value when the item is no longer needed for the declared disaster;

9.        Owning and operating the applicant's equipment using rates established by the applicant or FEMA, whichever is less;

10.     Work performed by private contractors. Contracts must be of reasonable cost and competitively bid and adhere to all jurisdictional procurement procedures. Jurisdictions may not enter into contracts with any private entity that has been debarred or suspended. Emergency Procure- ment, as defined in A.A.C. R2-7-E302, means “any con- dition creating an immediate and serious need for materials, services, or construction in which the state's best interests are not met through the use of other source- selection methods. The condition must seriously threaten the functioning of state government, the preservation or protection of property, or the health or safety of a per- son”. Any procurement need that does not meet this defi- nition would require following standard procurement process/procedures.

11.     Work performed under a mutual-aid agreement between local governments or between a local government and a state agency is eligible for reimbursement by the request- ing agency. The providing entity shall submit docu- mented costs to the requesting agency for reimbursement. Eligible work must be paid to the responding jurisdiction by the requesting jurisdiction, and the requesting jurisdic- tion is then eligible for a cost-share reimbursement by the State; and

12.     Prison labor including amounts paid to prisoners in accor- dance with established rates, guards (required number based on guard/prisoner ratio) and costs of transporting and feeding prisoners.

13.     Snow Removal: a political subdivision could make Application for State Assistance if they had met the fol- lowing condition: If a winter storm event pushes the juris- diction’s cumulative snowfall total for a winter season above the average of the last five season’s annual snow- fall, then the jurisdiction could be eligible for assistance providing the event that pushes the cumulative total above the threshold is above and beyond the capability of the affected jurisdiction. (see R8-2-303) (Snowfall mea- surement data source will be the National Weather Ser- vice and historical snowfall data source will be the National Climatic Data Center.)

C.      The Director shall not allow the following costs to be paid as claims against the fund:

1.        Salaries or wages and benefits of elected or appointed officials responsible for directing governmental activi- ties;

2.        Administrative Costs, office supplies and equipment;

3.        Rental of administrative office space;

4.        Depreciation, insurance, storage, and similar fixed over- head costs;

5.        Repairs and fuel for privately owned rented equipment, except where the rental agreement provides that the appli- cant will be responsible for repairs and fuel in addition to the rental fee;

6.        Work performed under agreement between a state agency or local government and a federal agency where the work is paid for by federal funds;

7.        Costs incurred under contracts based on cost plus a per- centage of costs, unless the Director determines that the performance of immediate emergency work would be unduly delayed and would likely result in an imminent hazard to health or safety, in which case the Director may authorize an exception; and

8.        Prison labor costs for lodging.

D.      To submit a claim for a cost that cannot be classified under subsection (B), an applicant shall make a written request to the Director for an exception. The Director shall grant a request for an exception if the request explains the nature of the excep- tion justifies why it is needed, and meets all other program guidelines as outlined in R8-2-301 through R8-2-320. The Director shall immediately inform the applicant in writing of the decision to grant or deny the request for an exception.

E.       When a facility damaged as a result of an emergency is repaired or replaced, the Director shall allow only the costs required to return the facility to the condition it was before the emergency, incorporating current standards and design requirements.

Historical Note

Adopted effective September 18, 1996 (Supp. 96-3). Amended by exempt rulemaking at 19 A.A.R. 4216, effective December 1, 2013 (Supp 13-4).