Memo-11-13-2018-Item-9j

November 13, 2018

MEMO TO:        Mayor Barber and Board of Commissioners

FROM:             Frank A. Rush, Jr., Town Manager

SUBJECT:       Capital Project Ordinance – Hurricane Florence Recovery

The Board of Commissioners is asked to approve the attached capital project ordinance to formally establish a multi-year project account for Hurricane Florence expenses.  The establishment of this account will make it easier to track emergency operations, debris collection, and repair expenses associated with Hurricane Florence, and will also aid in the FEMA reimbursement process.  The attached capital project ordinance formally appropriates a total of $3,733,000 to the new fund.

The Board should note that the budget amounts included in the attached capital project ordinance are based on preliminary estimates, and will likely need to be amended in the future. The Town expects to be reimbursed from FEMA and the NC Division of Emergency Management for nearly all Hurricane Florence expenses, and the attached capital project ordinance anticipates a total of $3,720,200 of FEMA reimbursements, along with $11,200 of insurance proceeds and $1,600 from miscellaneous sources.

The most significant expenditures included in the attached capital project ordinance are for debris removal and monitoring, and a total of $2,250,000 is estimated.  Repairs and maintenance to public infrastructure are estimated at $1,118,000, and this work will likely occur during the remainder of FY 18-19 and into FY 19-20 (thus the need for a multi-year capital project ordinance).  Other expenditures include overtime costs, equipment rental, and general supplies that have already been incurred.

The attached capital project ordinance includes all anticipated Hurricane Florence expenses except for beach nourishment.  The significant beach nourishment project costs will be included in separate capital project ordinances.

I recommend approval of the attached capital project ordinance.