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Agenda 05/23/2017 Item #16C 105/23/2017 EXECUTIVE SUMMARY Recommendation to authorize a budget amendment in the amount of $300,000 from utility contingency reserves to cover higher than anticipated costs for sludge hauling and other expenses to operate the Orange Tree water and wastewater facilities. OBJECTIVE: For the Board of County Commissioners, and as Ex-officio the Governing Board of the Collier County Water Sewer District, to authorize a budget amendment to provide adequate funds to maintain safe and compliant operations at the Orange Tree water and wastewater facilities. CONSIDERATIONS: Pursuant to Board approval on January 24, 2017, Agenda item 9B, the Orange Tree Utility was integrated into the Collier County Water Sewer District (CCWSD) as of March 1, 2017. In the brief time since the CCWSD took over operations, it has become apparent that the costs for sludge hauling will far exceed estimated projections due to actual sludge volumes being experienced and the need to dispose of the significant inventory of sludge existent at the wastewater treatment facility at the date of transfer. At current calculations, an estimated additional $200,000 is needed to cover the cost of sludge hauling for the remainder of the fiscal year. Numerous smaller operating and equipment needs greater than initial estimates are also anticipated for items such as utility parts, utility and electrical repair, laboratory supplies and equipment, other machinery, painting supplies, chemicals, building rental, and garbage removal for an estimated additional need of approximately $100,000. FISCAL IMPACT: Funding is available to transfer $300,000 from Reserve for Contingencies within the Collier County Water-Sewer District Operating Fund (408). GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. -SRT RECOMMENDATION: For the Board of County Commissioners, and as Ex-officio the Governing Board of the Collier County Water Sewer District, to authorize the necessary budget amendment. Prepared by: Paul Mattausch, Director, Northeast Utilities 16.C.1 Packet Pg. 585 05/23/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.1 Doc ID: 3092 Item Summary: Recommendation to authorize a budget amendment in the amount of $300,000 from utility contingency reserves to cover higher than anticipated costs for sludge hauling and other expenses to operate the Orange Tree water and wastewater facilities. Meeting Date: 05/23/2017 Prepared by: Title: – Public Utilities Department Name: Heather Bustos 04/21/2017 3:04 PM Submitted by: Title: Department Head - Public Utilities – Public Utilities Department Name: George Yilmaz 04/21/2017 3:04 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 04/21/2017 3:37 PM Public Utilities Department Margie Hapke Additional Reviewer Completed 04/21/2017 4:03 PM Water Paul Mattausch Additional Reviewer Completed 04/21/2017 4:35 PM Public Utilities Department Heather Bustos Level 1 Division Reviewer Completed 04/22/2017 8:41 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 04/25/2017 3:18 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 04/25/2017 3:32 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/26/2017 2:30 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/01/2017 8:38 AM Budget and Management Office Ed Finn Additional Reviewer Completed 05/02/2017 11:34 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/14/2017 10:40 PM Board of County Commissioners MaryJo Brock Meeting Pending 05/23/2017 9:00 AM 16.C.1 Packet Pg. 586