HomeMy WebLinkAboutPR 22180: TO REPAY FUNDS TO TDEM, HURRICANE IKE P.R. No. 22180
10/01/2021 dim
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO REPAY
FUNDS TO THE TEXAS DIVISION OF EMERGENCY MANAGEMENT
(TDEM) FOR FOUR (4) FEMA PUBLIC ASSISTANCE PROJECTS
RELATED TO HURRICANE IKE IN AN AMOUNT NOT TO EXCEED
$293,344.46, 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 states and communities in
the path of the storm; and
WHEREAS, the City of Port Arthur received funding for four (4) 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 September 30, 2021, the City of Port Arthur was informed 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 October 30, 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 $293,344.46, from Account No. 001-01-005-5470-00-10-000, Project No.
MA7903-OTH-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 October, 2021 at a Meeting
of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
NOES:
Thurman "Bill" Bartle
Mayor
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM:
Valecia Trieno
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
TI is TVCA5 A&M U N Iv[R5i ry SYS r[.0
September 30, 2021
Ron Burton
City Manager
Port Arthur
444 4th Street
Port Arthur, TX, 77640
Subject: FEMA-DR-1791-TX; Recoupment of Funds Now Due
Dear Mr. Burton,
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: 74-6001885);
Catalog of Federal Domestic Assistance (CDFA) 97.036
Federal Award Identification Number (FAIN) 1791 DRTXPOOOOOOI;
Project Project Title Federal Amount Repayment Description of Issue
Share Disbursed. Amounmet_. .
Awarded
3235 Garage at Fire $0.00 $22,640.77 ($22,640.77) During the compliance review of
Station#4, contractor costs, it was determined the
Repair claimed amount of$118,547.10 was
already funded in PW 04017, resulting in
a full deobligation. Therefore,this project
has an overpayment of$22,640.77
11856 Sea Rim $0.00 $25,050.96 ($25,050.96) FEMA de-obligated the entire project cost
Ground as the applicant did not complete the
Storage Tank approved scope of work. It resulted in an
& Pumping overpayment of$25,050.96.
Station
11876 Sabine WWTP $52,046.69 $95,398.44 ($43,351.75) An amendment was written to apply
insurance received.As a result of this
Amendment,there is an overpayment of
$110,922.42.Of this amount, $67,921.21
will be applied as an offset for a payable
in PW 3728, resulting in a balance of
$43,351.75
1033 LaPosada Dr Ste 300 Austin Texas 78752
24 Flours: 512-424-2208, Fax 512-424-2444
13795 Adams Park $0.00 $202,300.98 ($202,300.98) Following a State audit, it was determined
that contract costs were ineligible,
resulting in a complete de-obligation of
this PW. Therefore,this project has an
overpayment of$202,300.98.
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
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 Brendan Sinchak at 512-
499-1495 or by email Brendan.Sinchak@CohnReznick.com.
1033 LaPosada Dr Ste 300 Austin Texas 78752
24 Hours 512-424-2208, Fax 512-424-2444
Sincerely,
/a a)a
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