HomeMy WebLinkAboutPR 22089: TO REPAY FUNDS TO THE TEXAS DIVISION OF EMERGENCY MANAGEMENT ,))
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: August 10, 2021
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Scott Moore, Asst. City Manager& Kandy Daniel, Interim Dir. of Finance
RE: P. R. No. 22089
Introduction:
The intent of this Council Agenda Item is to seek the City Council's approval authorizing the
City Manager to repay funds to the Texas Division of Emergency Management (TDEM) for
seven (7) FEMA Public Assistance Projects related to Hurricane Ike.
Background:
On September 13, 2008, Hurricane Ike hit southeast Texas. The Category 4 storm event caused
$38 billion in damages for several states and communities in the path of the storm. Through the
different disaster assistance declarations issued after the storm event, the City of Port Arthur
received funding for seven (7) areas that were severely impacted by Hurricane Ike. In 2016,
TDEM officials had requested additional background information to justify the payments the
city had received and were given until 2019 to provide the information. No additional
information was provided during the timeframe when TDEM was conducting it comprehensive
reconciliation of federal funds that were disbursed. An exhibit is included with this
communication to highlight the funds received and the justification TDEM is seeking the
overpayment of funds.
Budget Impact:
The repayment of$1,116,160.72 federal funds will require a budget transfer amendment. The
repayment transaction deadline requested by TDEM is August 28th deadline. Due to significant
budget savings from position vacancies from the General Fund departments, a budget transfer
to the City Manager's Special Purpose Project M97903 account will be prepared and presented
at a future City Council Meeting that will cover the repayment expenditure. This budget
amendment request will not impact the General Fund's reserve fund balance.
Recommendation:
It is recommended that the City Council approve P.R.No.22089 and authorize the City Manager
to direct the repayment of FEMA Public Assistance Project funds to TDEM in an amount not to
exceed $1,116,160.72.
ism
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R. No. 22089
08/19/2021 dlm/gft
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO REPAY
FUNDS TO THE TEXAS DIVISION OF EMERGENCY MANAGEMENT
(TDEM) FOR SEVEN (7) FEMA PUBLIC ASSISTANCE PROJECTS
RELATED TO HURRICANE IKE IN AN AMOUNT NOT TO EXCEED
$1,116,160.72, ACCOUNT NO. 001-01-005-5470-00-10-000,
PROJECT NO. MA7903-OTH-OCS
WHEREAS, on September 13, 2008, Hurricane Ike hit Southeast Texas as a
Category 4 storm causing $38 billion in damages for several stated and communities in the
path of the storm; and
WHEREAS, the City of Port Arthur received funding for seven (7) areas that were
severely impacted by Hurricane Ike; and
WHEREAS, in 2016, Texas Division of Emergency Management (TDEM) officials
requested additional background information to justify the payments that the City received
and were given until 2019 to provide the information. No additional information was
provided during the timeframe that TDEM was conducting their comprehensive
reconciliation of federal funds that were disbursed; and
WHEREAS, on July 28, 2021, the City of Port Arthur was informer by TDEM that it
completed its comprehensive reconciliation of funds disbursed to date to Port Arthur for
FEMA Public Assistance Projects related to Hurricane Ike. It determined the Port Arthur
has received fund in excess of the approved federal share and is seeking repayment by
August 28, 2021; and
WHEREAS, the correspondence from TDEM is attached hereto as Exhibit "A"
highlighting the funds received and the justification TDEM is seeking regarding the
overpayment of funds.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Manager of the City of Port Arthur is hereby authorized to
direct the repayment of FEMA Public Assistance Project funds to TDEM in an amount not to
exceed $1,116,160.72, from Account No. 001-01-005-5470-00-10-000, Project No.
MA7903-0TH-OCS.
Section 3. That a copy of the caption of this Resolution shall be spread upon the
Minutes of the Meeting of the City Council.
READ, ADOPTED, AND APPROVED this day of August, 2021 at a Special
Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
NOES:
DONALD FRANK, SR.
MAYOR PRO TEM
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM:
Valecia Tizeno
City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton
City Manager
APPROVED AS TO THE AVAILABILITY
OF FUNDS:
Kandy Daniel
Interim Director of Finance
EXHIBIT "A"
( TDEM
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cvmo%'!! G�p THE TEXASA&M UNIVERSITY SYSTEM
July 28, 2021
Alberto Elefano
Director of Public Works
Port Arthur
444 4th Street
Port Arthur, TX 77640
Subject: FEMA-DR-1791-TX; Recoupment of Funds Now Due
Dear Mr. Elefano,
The Texas Division of Emergency Management (TDEM) has performed a
comprehensive reconciliation of funds disbursed to date to Port Arthur for FEMA Public
Assistance Projects related to Hurricane Ike. The results of this reconciliation indicate
that Port Arthur has received funds in excess of the approved federal share. Please
reference the table below for a summary of the project's funding and a brief description
of the corresponding overpayment issue.
FEMA-DR-1791-TX; Port Arthur; (ID: 245-58820-00);
Catalog of Federal Domestic Assistance (CDFA) 97.036
Federal Award Identification Number (FAIN) 1791 DRTXP0000001;
I PW# I Project Title 1 Federal Share I Amount 1 Recoupment Description of Recoupment Issue
Awarded Disbursed Amount
13795 Adams Park $0.00 $202,300.98 ($202,300.98) On March 23, 2016 an amendment was
written to de-obligate all excess funds
from this project and reduce eligible
funding to$0.00 due to a cost underrun
in contract and direct administrative
costs.As a result of this amendment,
the project has an overpayment of
$202,300.98.
13049 Emergency $497,172.00 $512,266.59 ($15,094.59) On June 16,2016 an amendment was
Protective written to de-obligate$167,583.84 from
Measures- this project due to the lack of supporting
Generators documentation for contract and direct
administrative costs. After 6 offsets,the
current balance of this receivable is
$15,094.59.
13503 Debris $2,958,295.88 $3,701,834.63 ($743,538.75) On June 15, 2016 an amendment was
Removal written to de-obligate$743,538.75 from
this project due to the lack of supporting
documentation for contract and direct
administrative costs as well as
1033 LaPosada Dr Ste 300 Austin Texas 78752
24 Hours: 512-424-2208, Fax 512-424-2444
•
calculation errors. It results to an
overpayment of$743,538.75.
11200 Leger Field $415.15 $18,145.26 ($17,730.11) This project was amended to deduct
funding for anticipated insurance
proceeds and to de-obligate labor and
DAC per the state audit.As a result of
this amendment,the project has a
revised overpayment of$23,493.39.
After an offset applying to Receivable
#35, this receivable has a current
balance of$17,730.11.
11876 Sabine $52,046.69 $162,969.11 ($110,922.42) An amendment was written to apply
WWTP insurance received.As a result of this
amendment there is an overpayment of
$110,922.42
11932 Port Arthur $0.00 $24,185.41 ($24,185.41) An amendment was written to apply
Fire Station insurance received.As a result of this
#2 amendment there is an overpayment of
$24,185.41.
11934 Street Signs $22,500.14 $24,888.60 ($2,388.46) Per the state audit, an amendment was
and Signals- written to de-obligate Direct
City Wide Administrative Costs and obligate
Material Costs. As a result of this
amendment, this project has an
overpayment of$2,388.46.
Federal laws (44 CFR § 206.116(b), 2 CFR § 400.410) require that TDEM act to identify
and recover these funds for the reasons listed in the table above. Port Arthur is required
to repay TDEM within 30 days after receipt of this notice. This recoupment of funds
request is not a FEMA determination and therefore not an appealable action.
To offset the receivables of the project(s), please immediately submit payment in
accordance with the remittance instructions below.
• Please make your check payable to the Texas Division of Emergency
Management
• In the memo field of the check, please include: Disaster Number and
Project Numbers or include a copy of this letter
• Mail the check to:
Texas Division of Emergency Management
Finance Division
1033 La Posada Suite 300
Austin, TX 78752
1033 LaPosada Dr Ste 300 Austin Texas 78752
24 Hours: 512-424-2208, Fax 512-424-2444
Any future payments for other projects under the purview of your organization within this
disaster may be offset until the total overpaid balance is reduced to zero if the amount
due is not repaid within 30 days. Per 2 CFR § 206.346, additional penalties can be
applied if funds are not returned timely.
If you have any questions, please do not hesitate to contact Logan Hurley at (512) 822-
7936 or by email at logan.hurley@cohnreznick.com.
Sincerely,
Patricia Wells
Recovery Coordinator
Texas Division of Emergency Management
1033 LaPosada Dr Ste 300 Austin Texas 78752
24 Hours: 512-424-2208, Fax 512-424-2444
FEMA-DR-1791-TX— Recoupment of Funds Exhibit
FEMA-DR-1791-TX; Port Arthur; (ID: 245-58820-00);
Catalog of Federal Domestic Assistance (CDFA) 97.036 Federal Award ldent No. (FAIN) 1791 DRTXP0000001;
Amount Recoupment
PW# Project Title Federal Share Awarded Disbursed Amount Description of Recoupment Issue
On March 23, 2016 an amendment
was written to de-obligate all excess
13795 Adams Park $0.00 $202,300.98 ($202,300.98) funds from this project and reduce
eligible funding to$0.00 due to a cost
underrun in contract and direct
administrative costs. As a result of
this amendment, the project has an
overpayment of$202,300.98.
On June 16, 2016 an amendment
was written to de-obligate
Emergency Protective $167,583.84 from this project due to
13049 Measures-Generators $497,172.00 $512,266.59 ($15,094.59) the lack of supporting documentation
for contract and direct administrative
costs. After 6 offsets, the current
balance of this receivable is
$15,094.59.
On June 15, 2016 an amendment
was written to de-obligate
$743,538.75 from this project due to
13503 Debris Removal $2,958,295.88 $3,701,834.63 ($743,538.75) the lack of supporting documentation
for contract and direct administrative
costs as well as calculation errors. It
results to an overpayment of
$743,538.75.
This project was amended to deduct
funding for anticipated insurance
proceeds and to de-obligate labor
and DAC per the state audit. As a
11200 Leger Field $415.15 $18,145.26 ($17,730.11) result of this amendment, the project
has a revised overpayment of
$23,493.39. After an offset applying
to Receivable #35, this receivable
has a current balance of$17,730.11.
An amendment was written to apply
11876 Sabine WVVfP $52,046.69 $162,969.11 ($110,922.42) insurance received.As a result of this
amendment there is an overpayment
of$110,922.42
Port Arthur Fire Station An amendment was written to apply
11932 #2 $0.00 $24,185.41 ($24,185.41) insurance received.As a result of this
amendment there is an overpayment
of$24,185.41.
Street Signs and Per the state audit, an amendment
11934 Signals-City Wide $22,500.14 $24,888.60 ($2,388.46) was written to de- obligate Direct
Administrative Costs and obligate
Material Costs. As a result of this
amendment, this project has an
overpayment of$2,388.46.
Total Payments $3,530,429.86 $4,646,590.58
Total Repayment Amt ($1,116,160.72)
Federal laws (44 CFR § 206.116(b), 2 CFR § 400.410) require that TDEM act to identify and recover these funds
for the reasons listed in the table above. Port Arthur is required to repay TDEM within 30 days after receipt of this
notice. The notice was issued on July 28, 2021. This recoupment of funds request is not a FEMA determination
and therefore not an appealable action.
1
FEMA-DR-1791-TX — Recoupment of Funds Exhibit
To offset the receivables of the project(s), please immediately submit payment in accordance with the
remittance instructions below.
• Please make your check payable to the Texas Division of Emergency Management
• In the memo field of the check, please include: Disaster Number and Project Numbers or include a
copy of this letter
• Mail the check to:
Texas Division of Emergency Management
Finance Division
1033 La Posada Suite 300
Austin, TX 78752
2