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Agenda 04/11/2023 Item #11B (Budget to recognize revenue received from a FEMA expedited reimbursement for Hurricane Ian debris removal in the Solid Waste Capital Fund and return budgeted funds back to the source)04/ 11 /2023 EXECUTIVE SUMMARY Recommendation to authorize budget amendments to recognize $23,233,000 in revenues deposited in the Solid Waste Capital Fund (474) received from the Federal Emergency Management Agency (FEMA) related to the Hurricane Ian debris removal expedited expense reimbursement, and return budgeted funds back to the original funding sources which include Water/Sewer Operations Fund (408) ($8,913,500), Water Capital Fund (412) ($8,909,869), Solid Waste Disposal Fund (470) ($2,151,700), and capital projects within the Solid Waste Capital Fund (474) ($3,257,931). OBJECTIVE: To recognize revenue received from a Federal Emergency Management Agency (FEMA) expedited reimbursement for Hurricane Ian debris removal in the Solid Waste Capital Fund (474) and to return budgeted funds back to the original sources. CONSIDERATIONS: On October 11, 2022, Item 11.13, the Board approved budget amendments from the County Wide Capital Projects Fund (301), the Solid Waste Disposal Fund (470), the Solid Waste Collection Fund (473), the Water/Sewer Operations Fund (408), the Water Capital Fund (412), and the Sewer Capital Fund (414) to the Solid Waste Capital Fund (474) in order to increase the budgeted funding for estimated expenses for Hurricane Ian debris removal. Additionally, $8,757,931 in Solid Waste capital projects were also deferred in Fund 474, and their budgets transferred to the Hurricane Ian debris removal project. The entire balance of $9,763,800 in the Landfill Closure and Debris Mission Fund 471 as well as all $824,100 in Solid Waste Capital reserves have also been committed to the Hurricane Ian debris removal project. A detailed breakdown of the budget sources is shown in the table below. The total cost for debris removal at that time was anticipated to be $65,000,000. On November 10, 2022, Collier County submitted an expedited funding application to FEMA for anticipated debris removal expenses, allowing the County to receive half of the estimated debris removal costs in an expedited fashion to cover expenses related to the debris removal mission. At the completion of the debris removal mission actual debris quantities were lower than initially anticipated and therefore the debris removal expenditures were lower than initially estimated. As a result, on March 14, 2023, Item I LD, the Board approved budget amendments in the amount of $23,000,000 to return budgeted funds back to their original sources. A detailed breakdown of the budget amendments is shown in the table below. On March 20, 2023, the Solid Waste Capital Fund (474) received $23,233,054.44 of FEMA expedited reimbursements for debris removal expenses, which allows budgeted funds to be returned back to the original sources as follows: Source Fund Budget From Each Source for Hurricane Ian Debris Removal Budget Amendments - Board Approved March 14, 2023 Proposed Budget Amendments for Expedited FEMA Reimbursement Initial Sources Remaining in Fund 474 Project 50280 Hurricane Ian 301 $10,000,000 ($10,000,000) 50 $0 408 $8,913,500 $0 ($8,913,500) $0 412 $12,129,095 ($3,219,226) ($8,909,869) $0 414 $9,280,774 ($9,280,774) so $0 470 $2,330,900 $0 ($2,151,700) $179,200 471 $9,763,800 $0 so $9,763,800 473 $2,999,900 $0 so $2,999,900 474 Reserves $824,100 $0 so $824,100 474 Projects $8,757,931 ($500,000) ($3,257,931) $5,000,000 Total $65,000,000 ($23,000,000) ($23,233,000) $18,767,000 Additional partial reimbursements from FEMA, insurance, and interlocal agreements are expected to be recognized and used to restore deferred projects and reserves when received over the next two (2) - five (5) years. This Packet Pg. 91 04/11/2023 expedited reimbursement, as well as, the balance of the FEMA reimbursement request for debris removal expenses must still be supported with required detailed documentation and evidence, and upon FEMA / Florida Division of Emergency Management audits, actual claimed expenses must be found to be eligible for reimbursement. FISCAL IMPACT: Budget amendments are required to recognize $23,233,000 in Hurricane Ian related revenues deposited into the Solid Waste Capital Fund (474) and return budgeted funds back to the Water/Sewer Operations Fund (408) in the amount of $8,913,500, the Water Capital Fund (412) in the amount of $8,909,869, the Solid Waste Disposal Fund (470) in the amount of $2,151,700; as well as to multiple projects within Solid Waste Capital Fund (474) including the Hammerhead project (59024) in the amount of $614,179, the Resource Recovery Business Park project (59007) in the amount of $718,752, the East Naples Recycling Drop-off Center project (70169) in the amount of $1,675,000, and the Immokalee Property & Building Improvements project (70232) in the amount of $250,000. After execution of the required budget amendments the total amended budget for the Hurricane Ian project (50280) in Solid Waste Capital Fund (474) will be $42,000,000 ($23,233,000 + $18,767,000). GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. 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: Recommendation to authorize budget amendments to recognize $23,233,000 in revenues deposited in the Solid Waste Capital Fund (474) received from the Federal Emergency Management Agency (FEMA) related to the Hurricane Ian debris removal expedited expense reimbursement and return budgeted funds back to the original funding sources which include Water/Sewer Operations Fund (408) ($8,913,500), Water Capital Fund (412) ($8,909,869), Solid Waste Disposal Fund (470) ($2,151,700) and capital projects within the Solid Waste Capital Fund (474) ($3,257,931). Prepared by: Bart Zautcke, C.P.A., Manager, Solid & Hazardous Waste Management Division Kari Ann Hodgson, P.E. Director, Solid & Hazardous Waste Management Division Packet Pg. 92 11.B 04/11/2023 COLLIER COUNTY Board of County Commissioners Item Number: 11.13 Doc ID: 25062 Item Summary: Recommendation to authorize budget amendments to recognize $23,233,000 in revenues deposited in the Solid Waste Capital Fund (474) received from the Federal Emergency Management Agency (FEMA) related to the Hurricane Ian debris removal expedited expense reimbursement, and return budgeted funds back to the original funding sources which include Water/Sewer Operations Fund (408) ($8,913,500), Water Capital Fund (412) ($8,909,869), Solid Waste Disposal Fund (470) ($2,151,700), and capital projects within the Solid Waste Capital Fund (474) ($3,257,931). (Chris Johnson, Interim Director — Corporate Financial and Management Services) Meeting Date: 04/11/2023 Prepared by: Title: — Solid and Hazardous Waste Name: Bart Zautcke 03/24/2023 6:02 PM Submitted by: Title: — Solid and Hazardous Waste Name: Karl Hodgson 03/24/2023 6:02 PM Approved By: Review: Solid and Hazardous Waste Bart Zautcke Additional Reviewer Public Utilities Operations Support Katrina Lin Additional Reviewer Solid and Hazardous Waste Kari Hodgson Additional Reviewer Public Utilities Department Drew Cody Level 1 Division Reviewer Public Utilities Department George Yilmaz Level 2 Division Administrator Review Grants Erica Robinson Level 2 Grants Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Corporate Compliance and Continuous Improvement Megan Gaillard Office of Management and Budget Susan Usher Additional Reviewer Office of Management and Budget Christopher Johnson Additional Reviewer Community & Human Services Maggie Lopez Additional Reviewer County Manager's Office Amy Patterson Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 04/02/2023 10:55 AM Completed 04/02/2023 1:33 PM Completed 04/03/2023 12:35 PM Completed 04/03/2023 3:28 PM Completed 04/03/2023 5:09 PM Completed 04/04/2023 7:42 AM Completed 04/04/2023 9:20 AM Completed 04/04/2023 10:24 AM Additional Reviewer Completed 04/04/2023 11:27 AM Completed 04/04/2023 4:24 PM Completed 04/05/2023 10:36 AM Completed 04/05/2023 2:02 PM Completed 04/05/2023 4:11 PM 04/11/2023 9:00 AM Packet Pg. 93