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Agenda 02/13/2018 Item #16F402/13/2018 EXECUTIVE SUMMARY Recommendation to authorize one additional FY 2018 budget amendment covering post Hurricane Irma clean up and recovery providing an additional $750,000 appropriation to the County’s claim processing consultant CDR Maguire consistent with Board approved contractual provisions. OBJECTIVE: Establish sufficient FY 2018 budget providing for uninterrupted clean up and recovery post Hurricane Irma. CONSIDERATIONS: Funding cleanup and restoration of the community in the aftermath of Hurricane Irma continues and to that end, this executive summary requests approval for one (1) additional FY 2018 budget amendments as follows; 1. $750,000 to cover additional Hurricane Irma claim processing consulting services provided by the County’s contractor CDR Maguire. Attached to this report is a complete summary of all FY 2017 and current to date FY 2018 budget amendments processed because of Hurricane Irma including the one (1) budget amendment covered in this executive summary. Cumulatively, all non - payroll FY 2017 and FY 2018 budget amendments to date total $169,839,600. Including payroll expenses associated with the event (9/2/17 to 10/13/17) of $4,384,600, total event expenses and outstanding appropriations total $174,224,200. The amount spent to date during FY 2017 and FY 2018 totals $76,271,800. Reimbursement revenue from insurance proceeds booked to the wastewater system totals $100,163. Establishing sufficient budget for clean up and restoration from this event is not indicative of what will be spent simply a barometer of anticipated expenses. FISCAL IMPACT: Establishing budget in the amount of $174.2 million has required a combination of financial management steps not the least of which is the deferral/postponement of capital projects particularly in the public utility, storm-water and transportation road network area and a reduction of FY 2017 and FY 2018 General Fund reserves totaling $22.0 million. These reserve reductions were primarily necessary to minimize the deferral of capital projects. Where necessary and appropriate in funds with sufficient cash, FEMA revenue has been budgeted anticipating some level of reimbursement later in FY 2018 and in FY 2019. The following summary table for FY 2017 and FY 2018 shows the extent of budget deferrals necessary to fund Hurricane Irma recovery. Fund Category FEMA Revenue Budgeted Capital Project Deferral Reserves (Reduced) Total Budget Deferrals General Governmental $15,537,800 $18,089,000 $16,855,100 $50,481,900 Enterprise $48,500,000 $41,557,700 $22,300,000 $112,357,700 Constitutional - Sheriff $7,000,000 $7,000,000 Total $64,037,800 $59,646,700 $46,155,100 $169,839,600 Eventually, FEMA revenue and other reimbursement revenue will be received into the accounting system. This reimbursement revenue will be booked initially to the fund where the expense was incurred and subsequent budget adjustments will be processed to make whole various donating funds with a priority to re-establish depleted reserves and re-appropriate capital budgets which were reduced. 16.F.4 Packet Pg. 1439 02/13/2018 The County has sufficient resources to cash flow the required clean up and restoration work given the necessary financial management steps outlined above and we are well positioned to submit for reimbursement for work performed to the appropriate agencies in a timely fashion. However, OMB will be monitoring the reimbursement stream closely and if necessary take appropriate mid -year budget management steps to always insure that sufficient year ending FY 2018 cash is maintained in all affected funds. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: Authorize one (1) FY 2018 budget amendment covering post Hurricane Irma clean up and recovery providing an additional $750,000 appropriation to the County’s claim processing consultant CDR Maguire consistent with Board approved contractual provisions. Prepared by: Mark Isackson, Director of Corporate Finance and Management Services, Office of Management and Budget ATTACHMENT(S) 1. Hurricane IRMA Recap 2-13-18 meeting (PDF) 2. Hurricane IRMA Budget Amendments 2-13-18 meeting (PDF) 16.F.4 Packet Pg. 1440 02/13/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.4 Doc ID: 4750 Item Summary: Recommendation to authorize one additional FY 2018 budget amendment covering post Hurricane Irma clean up and recovery providing an additional $750,000 appropriation to the County’s claim processing consultant CDR Maguire consistent with Board approved contractual provisions. Meeting Date: 02/13/2018 Prepared by: Title: Operations Coordinator – Office of Management and Budget Name: Valerie Fleming 02/05/2018 2:43 PM Submitted by: Title: Operations Coordinator – Office of Management and Budget Name: Valerie Fleming 02/05/2018 2:43 PM Approved By: Review: Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/05/2018 2:44 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/05/2018 3:33 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 02/06/2018 10:13 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 02/06/2018 10:54 AM Board of County Commissioners MaryJo Brock Meeting Pending 02/13/2018 9:00 AM 16.F.4 Packet Pg. 1441 16.F.4.a Packet Pg. 1442 Attachment: Hurricane IRMA Recap 2-13-18 meeting (4750 : Recommendation to authorize one additional 16.F.4.b Packet Pg. 1443 Attachment: Hurricane IRMA Budget Amendments 2-13-18 meeting (4750 : Recommendation to authorize one additional FY 2018 budget 16.F.4.b Packet Pg. 1444 Attachment: Hurricane IRMA Budget Amendments 2-13-18 meeting (4750 : Recommendation to authorize one additional FY 2018 budget 16.F.4.b Packet Pg. 1445 Attachment: Hurricane IRMA Budget Amendments 2-13-18 meeting (4750 : Recommendation to authorize one additional FY 2018 budget