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Agenda 03/14/2023 Item #11D (Ensure sufficient FY 2023 budget providing for uninterupted clean up and recovery post Hurrican Ian)03/14/2023 EXECUTIVE SUMMARY Recommendation to authorize FY 2023 budget amendments in the total amount of $29,859,500 to reallocate funding provided for debris removal and transfer additional reserves to support continued post Hurricane Ian recovery in FEMA Hurricane Fund (727), return funding to the Solid Waste Driveway Program Project (59001), and provide additional funding for unbudgeted storm related force account overtime; and to authorize future budget amendments for the reallocation of existing funding between cost centers within FEMA Hurricane Fund (727), Hurricane Ian Project (50280) to expedite recovery. OBJECTIVE: Ensure sufficient FY 2023 budget providing for uninterrupted clean up and recovery post Hurricane Ian. CONSIDERATIONS: Currently there is $125,150,000 budgeted for Hurricane Ian clean up and repairs as follows: • $65,000,000 to cover the debris removal mission (474) funded from various Solid Waste Funds ($24.7 million), various Water/Sewer Funds ($30.3 million) and County -wide Capital Fund (301) ($10 million). • $33,000,000 to cover County -wide cleanup and repairs in the FEMA Emergency Disaster Fund (727) funded from County -Wide Capital Fund (301) Reserves ($20 million) and General Fund (001) ($13 million). • $27,050,000 to cover beach & pass restoration/renourishment and other storm related costs (195) funded from Fund (195) Reserves. • $ 100,000 to cover necessary repairs to CATT Transit & Transportation Disadvantaged (426/427) funded from other projects within Fund (426/427). As cleanup and restoration efforts continue there is a need to realign previously approved funding. The debris mission has ended and estimated costs are lower than the established budget and while invoices are still being processed there is certainty that budgets can be realigned. Accordingly, the Solid Waste Division is recommending a reduction to the debris mission budget allowing for the reallocation of $23 million budgeted in Solid Waste Capital Fund (474), Hurricane Ian project (50280) as follows: $10,000,000 - reduce the transfer from the County -Wide Capital Fund 301 and move this to the FEMA Emergency disaster Fund (727) to continue with repairs and other storm related costs including funding for emergency berm construction on TDT ineligible beaches. $12,500,000 - reduce the transfer from Water and Wastewater User Fee Capital Funds 412/414 and move this to FEMA Emergency disaster Fund (727) to continue with the repairs to the water and wastewater infrastructure damaged by the storm. $500,000 - reestablish funding in the Solid Waste Driveway Program Project (59001) within the Solid Waste Capital Fund (474). In addition to the reallocation of funding above, a budget amendment is required to transfer an additional $5 million from County -Wide Capital Fund (301) Reserves to FEMA Emergency Disaster Fund (727) for repairs, restoration and other storm related costs. FEMA Emergency Disaster Fund (727) was created to centralize disaster expenses and documentation in order to facilitate Hurricane Ian recovery administration and reporting. Within Fund (727) there are over thirty Divisions working on numerous repairs and replacements of assets damaged by the storm. As work progresses and estimates become real costs there is a constant need to shift budget from one Division (cost center) to another. As such, because timely access to budgets is critical to quickly and efficiently completing repairs it is important that authorization to adjust budgets between various cost centers within FEMA Emergency Disaster Fund (727), Hurricane Ian Project (50280) continue. This authorization does not include budget amendments that recognize FEMA reimbursements, insurance proceeds or other revenues including transfers in from other funds. Revenue budget amendments will be brought to the Board for approval. Packet Pg. 126 03/14/2023 In the aftermath of the storm, staff worked tirelessly to clean up and repair the damage that Hurricane Ian caused. When comparing personal service costs for the first four (4) months of FY 2022 and FY 2023, many Divisions incurred additional overtime cost, none of which was budgeted in FY 2023. Included with this item is a schedule by Fund of the delta between FY 2022 and FY 2023 overtime cost plus FICA/Medicare and retirement totaling $1,859,500. Budget amendments are required to appropriate additional funding for these expenses. FISCAL IMPACT: Budget amendments are required to reallocate $23 million out of the Hurricane Ian debris mission and reallocate this funding as follows: $500,000 to Solid Waste Driveway Program 59001 within fund 474, $10,000,000 reduce the transfer from the County -Wide Capital Fund 301 and move this to the FEMA Emergency Disaster Fund 727 to continue with repairs and other storm related costs including emergency berm construction on TDT ineligible beaches. $12,500,000 reduce the transfer from the Water and Wastewater User Fee Capital Funds 412/414 and move this to the FEMA Emergency Disaster Fund 727 to continue with the repairs to the water and wastewater infrastructure damaged by the storm. In addition, budget amendments are required to transfer an additional $5 million from County -Wide Capital Reserves Fund (301) to FEMA Emergency Disaster Fund (727) and to appropriate funding for Hurricane Ian related personnel costs within Division operating budgets, in the amount of $1,859,500, as shown in the attachment. Administering Hurricane Ian budgets has and continues to require a combination of financial management steps. Reduction of Reserves in various funds and a reduction in budgeted projects with future funding requirements. Budget amendments recognizing insurance and FEMA revenues as they are realized will be brought to the Board and utilized to continue to fund recovery efforts, replace Reserves and refund project budgets. Mission critical projects primary in Water and Wastewater will be funded as required with Commercial Paper when construction contracts are awarded. The County has sufficient resources to cash flow the required clean up and restoration work given approval of the necessary management steps outlined above. The County is well positioned for FEMA and insurance reimbursement. However, if reimbursements are delayed or are not received as planned appropriate mid -year budget actions will be implemented to ensure that sufficient year ending FY 2023 cash is maintained. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues and requires majority vote for approval. -JAK RECOMMENDATION: To authorize FY 2023 budget amendments reallocating funding provided for debris removal, and transfer additional reserves to support continued post Hurricane Ian recovery in FEMA Emergency Disaster Fund (727), return funding to the Solid Waste Driveway Program Project (59001), and provide additional funding for unbudgeted storm related force account overtime; and authorize future budget amendments for the reallocation of existing funding between cost centers within FEMA Hurricane Fund (727), Hurricane Ian Project (50280). Prepared by: Christopher Johnson, Interim Director - Corporate Financial and Management Services ATTACHMENT(S) 1. Hurricane Ian OT and BA Table (PDF) Packet Pg. 127 11.D 03/14/2023 COLLIER COUNTY Board of County Commissioners Item Number: I LD Doc ID: 24823 Item Summary: Recommendation to authorize FY 2023 budget amendments in the total amount of $29,859,500 to reallocate funding provided for debris removal and transfer additional reserves to support continued post Hurricane Ian recovery in FEMA Hurricane Fund (727), return funding to the Solid Waste Driveway Program Project (59001), and provide additional funding for unbudgeted storm related force account overtime; and to authorize future budget amendments for the reallocation of existing funding between cost centers within FEMA Hurricane Fund (727), Hurricane Ian Project (50280) to expedite recovery. (Christopher Johnson, Interim Director - Corporate Financial and Management Services) Meeting Date: 03/14/2023 Prepared by: Title: — Office of Management and Budget Name: Debra Windsor 03/06/2023 9:05 AM Submitted by: Title: Accountant, Senior — Office of Management and Budget Name: Christopher Johnson 03/06/2023 9:05 AM Approved By: Review: Grants Erica Robinson Level 2 Grants Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Grants Therese Stanley Additional Reviewer County Manager's Office Ed Finn Additional Reviewer Office of Management and Budget Susan Usher Additional Reviewer Corporate Compliance and Continuous Improvement Megan Gaillard Solid and Hazardous Waste Kari Hodgson Additional Reviewer Office of Management and Budget Christopher Johnson Additional Reviewer County Manager's Office Dan Rodriguez Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 03/06/2023 9:07 AM Completed 03/06/2023 9:09 AM Completed 03/06/2023 9:53 AM Completed 03/06/2023 10:39 AM Completed 03/06/2023 8:05 PM Completed 03/07/2023 4:04 PM Additional Reviewer Completed 03/07/2023 4:33 PM Completed 03/07/2023 4:54 PM Completed 03/08/2023 12:30 PM Completed 03/08/2023 3:01 PM 03/14/2023 9:00 AM Packet Pg. 128 11.D.d Fund Fund Title Source of Funding Amount Number 001 * General Fund Decrease Reserves $368,900 101 Road & Bridge Decrease Reserves/ replenish with $232,500 General Fund Transfer 103 Stormwater Decrease Reserves/ replenish with $15,600 General Fund Transfer 109 Pelican Bay Decrease Reserves $23,400 III** Unincorp Gen Fd Decrease Reserves $168,100 113 Comm Devel Decrease Reserves $61,600 130 GG Community Ctr Decrease Reserves $5,600 131 Planning Decrease Reserves $21,500 172 Conservation Collier Land Decrease Reserves $2,700 Acquisition 174 Conservation Collier Land Decrease Reserves $1,000 Maintenance 185 jTDC Engineering Decrease Reserves $16,800 188 800 MHz Decrease Operating exp/ replenish with $3,900 General Fund Transfer 194 TDC Advertisement & Decrease Reserves $2,600 Promotions, Cat B 198 Museum Decrease Reserves/ replenish with $7,400 General Fund Transfer 408 Water —Sewer District Decrease Reserves $717,400 470 Solid Waste Decrease Reserves $20,002 473 Mandatory Solid Waste Decrease Reserves $8,100 490 EMS Decrease Reserves/ replenish with $113,000 General Fund Transfer 495 Airport Decrease Reserves $10,300 505 Information Technology Decrease Reserves $6,900 517 Group Health & Life Decrease Reserves $1,400 521 Fleet Decrease Reserves/ replenish with $45,000 General Fund Transfer 759 Sports Facility Ops IDecrease Reserves $5,800 Total 1 $l 859 500 *The total cost for the General Fund is $786,300, which includes $417,400 in transfers to other funds that are normally supported by the General Fund. W f thf n the General Fund the Divisions with the largest overtime expenditures were Facilities Management $120,230, Domestic Animal Control $57,210, and Parks $52,834. ** Within the Unincorporated General Fund, the Divisions with the largest overtime expenditures were Parks $85,485; Landscape Operations $40,327 and Code Enforcement $26,231. .. Packet Pg. 129 (fda o aH um eue3 iaa nH:EZ iVZ) mqe_L Vg pue 00 um eue3 paa nH:uewt4,m; 0 0 0 0 0 0 7 0 0 0 0� � k \ \ \ \ \ / / % i q � 0 a n � tn -Ln tn � 0 t 0 0 § o o Ln Ln v o o (7� e 00 2 C k k § \ \ E — Iq � Co tn -Ln tn -Ln tn � \ \ \ \ k rz C C C -1 � m % Ln\ \ § � / ( Q vi- ƒ 2 : 73 > / 5 \ O / c ® z 2 / % N U ■ j $ Ln 4-1 § § G \ R< J e g I 2 I co U ƒ 41 ƒ / f ± 3 0 0 0 tA § 4" o o z o o M E / 0 \ q 7 L E k � t c « § � k c @ k � § © § \ v k z / _ 2 \ LA.\ CL k 3 m 2 km . \ / e G R e k R § z 2 § ƒ 1 / / 3