This is in response to a letter from your office dated February 3, 2017, which transmitted the referenced second appeal on behalf of City of Napa (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of funding in the amount of $3,399,849.09 for permanent repairs of damaged pipe segments. As explained in the enclosed analysis, I have determined that the Applicant has not demonstrated the 15 pipe segments damaged by the earthquake were not restored to predisaster condition, or that it was not feasible to repair the pipe segments so that they could perform as they did immediately prior to the disaster. I have also determined that the Applicant has not demonstrated the 17 breaks in the City’s water lines discovered after the regulatory deadline to report disaster damages were hidden damages resulting directly from events that occurred during the incident period. Accordingly, I am denying this appeal. 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.