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Agenda 07/12/2022 Item #16C 6 (BA for Collier County Water-Sewer District to cover increased cost of for electricity)07/12/2022 EXECUTIVE SUMMARY Recommendation to authorize budget amendments for the Collier County Water -Sewer District to cover increased costs for electricity, emergency repairs/maintenance, chemicals, and bulk water in the total amount of $1,574,000 in Fund (408). OBJECTIVE: To meet the demand and continue compliant operations of the Collier County Water - Sewer District (CCWSD) by providing adequate funding in Water and Wastewater cost centers to cover increased costs for chemicals, electricity, and emergency repairs and maintenance through the end of FY22. CONSIDERATIONS: The CCWSD is experiencing cost increases for electricity, chemicals, and bulk water, as well as an increased incidence of emergency repairs/maintenance on the Wastewater collections systems. Cost savings and deferrals are being executed where possible, but funding reallocation is required. Electricity - $560,000 - Electricity costs per kilowatt-hour have increased by an average of 14% over those used to develop the FY22 budget. Water production and wastewater treatment volumes are not anticipated to vary significantly from budgeted expectations. Emergency repairs/maintenance - $470,000 - The Wastewater collections system is experiencing more force main breaks than anticipated resulting in higher costs for repairs as well as for associated pump station material removal and disposal costs. Chemicals $394,000 - At the February 22, 2022, Board of County Commissioners meeting, Contract 21- 7921 for Countywide Chemicals, agenda item 16CI, was approved. Chemical pricing increases ranged from 26% to 195%. Chemical unit cost increases exceeded forecasts built into the FY22 budget. Water production and wastewater treatment volumes are not anticipated to vary significantly from budgeted expectations. Bulk Water - $150,000 - Increased water distribution system flushing is required to maintain potable water quality in Goodland. FISCAL IMPACT: Funding will be reallocated from savings in other cost centers within CCWSD Operating Fund (408) in the amount of $1,574,000. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues and requires majority vote for approval. JAK GROWTH MANAGEMENT IMPACT: There are no Growth Management impacts associated with this Executive Summary. RECOMMENDATION: To authorize budget amendments for the Collier County Water -Sewer District to cover increased costs for electricity, emergency repairs/maintenance, chemicals, and bulk water in the total amount of $1,574,000 in Fund (408). Prepared by: Amia Curry, Director, Utilities Finance Division Howard Brogdon, Director, Water Division Robert VonHolle, Director, Wastewater Division I Packet Pg. 1163 07/12/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.6 Doe ID: 22674 Item Summary: Recommendation to authorize budget amendments for the Collier County Water - Sewer District to cover increased costs for electricity, emergency repairs/maintenance, chemicals, and bulk water in the total amount of $1,574,000 in Fund (408). Meeting Date: 07/12/2022 Prepared by: Title: Manager - Operations Support - PUD — Public Utilities Operations Support Name: AmiaMarie Curry 06/30/2022 1:46 PM Submitted by: Title: Manager - Operations Support - PUD — Public Utilities Operations Support Name: AmiaMarie Curry 06/30/2022 1:46 PM Approved By: Review: Wastewater Water Public Utilities Department Public Utilities Department Office of Management and Budget County Attorney's Office Facilities Management Office of Management and Budget County Manager's Office Board of County Commissioners Robert Von VanHolle Additional Reviewer Howard Brogdon Additional Reviewer Drew Cody Level 1 Division Reviewer George Yilmaz Level 2 Division Administrator Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Ed Finn Additional Reviewer Laura Zautcke Additional Reviewer Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 06/30/2022 1:49 PM Completed 06/30/2022 2:09 PM Completed 06/30/2022 4:38 PM Completed 06/30/2022 4:58 PM Completed 07/01/2022 8:16 AM Completed 07/01/2022 9:00 AM Completed 07/05/2022 2:58 PM Completed 07/05/2022 4:46 PM Completed 07/06/2022 11:26 AM 07/12/2022 9:00 AM I Packet Pg. 1164 1