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Agenda 03/28/2023 Item #11C (CWS Bond #2 Proceeds Fund 419)03/28/2023 EXECUTIVE SUMMARY Recommendation to authorize budget amendments to reallocate $15,000,000 funding within CWS Bond #2 Proceeds Fund (419) and to reallocate $1,173,628 debt service funding between the CWS Operating Fund (408), Water Impact Fee Fund (411) and Wastewater Impact Fee Capital Fund (413). (Companion to Items 11A and 11B) OBJECTIVE: To optimize funding within the CWS Bond #2 Proceeds Fund (419). CONSIDERATIONS: The proposed scopes of work of the projects listed below are consistent with the Fiscal Year (FY) 2023 Budget approved by the Board on September 22, 2022. On June 22, 2021, the Board approved Resolution 2021-140 to authorize the issuance of the 2021 Revenue Bond (CWS Bond #2) to finance utilities infrastructure construction projects as summarized below: Project No. Project Name Amount 70167 Government Operation Business Park 15,000,000$ 70194 NE Utility Facilities 48,090,000$ 70243 GG City WWTP Expansion 70,000,000$ 70253 GGC Transmission Water Main 18,000,000$ Total Amount in the Project Account 151,090,000$ Due to the rising cost escalation, material shortages, material supply chain issues, contractor capacity and lack of labor supply, the projected costs for all these projects rose significantly. Based on priority, the Government Operation Business Park (GOBP) project was deferred to reallocate the $15,000,000 to the higher priority projects. The reallocation of funds within CWS Bond #2 Proceeds Fund (419) is summarized below: Project Amount 70243 GGC WWTP Expansion 1,519,824.98$ 70253 GGC Transmission WM 13,480,175.02$ Total 15,000,000.00$ The proposed reallocation from the GOBP project to the GGC City WWTP Expansion and the GGC Transmission Water Main Improvements was reviewed and confirmed appropriate by the CCWSD bond counsel (Nabors, Giblin & Nickerson, P.A.) and provided in the agenda item backup materials. FISCAL IMPACT: The above budget amendments in the total amounts of $15,000,000 are necessary to reallocate project funding within the CWS Bond #2 Proceeds Fund (419). Due to the above reallocation within the CWS #2 Bond Proceeds Fund (419), funding for the FY23 debt service payments needs to be adjusted. An additional set of budget amendments are needed for CWS Debt Service Fund (410). Since a portion of the funds is now considered growth (impact fee eligible), the CWS Operating Fund (408) will need to decrease its transfer to the CWS Debt Service Fund (410) by $1,173,628 which will increase the Water Impact Fee Fund (411) transfer by $466,215 and Wastewater Impact Fee Fund (413) transfer by $707,413. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. With bond counsel signing off on this transaction, there are no further legal issues. This item requires majority vote for approval. -JAK 11.C Packet Pg. 345 03/28/2023 GROWTH MANAGEMENT IMPACT: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities and to remain in compliance with all regulatory programs. RECOMMENDATION: To authorize budget amendments to reallocate $15,000,000 funding within CWS Bond #2 Proceeds Fund (419) and to reallocate debt service funding between the CWS Operating Fund (408), Water Impact Fee Fund (411) and Wastewater Impact Fee Capital Fund (413). Prepared by: Matthew McLean, P.E., Public Utilities Engineering and Project Management Director ATTACHMENT(S) 1. CCWSD Bond Counsel Confirmation on GOBP Reallocation - 2021 Series Bond Proceeds (PDF) 2. GGC Transmission Water Main PH-1A & CEI Presentation R2 (PPTX) 11.C Packet Pg. 346 03/28/2023 COLLIER COUNTY Board of County Commissioners Item Number: 11.C Doc ID: 24761 Item Summary: Recommendation to authorize budget amendments to reallocate $15,000,000 funding within CWS Bond #2 Proceeds Fund (419) and to reallocate $1,173,628 debt service funding between the CWS Operating Fund (408), Water Impact Fee Fund (411) and Wastewater Impact Fee Capital Fund (413). (Companion to Items 11A and 11B) (Matt McLean, Public Utilities Engineering Division Director) Meeting Date: 03/28/2023 Prepared by: Title: – Public Utilities Planning and Project Management Name: Benjamin Bullert 02/22/2023 11:21 AM Submitted by: Title: Director – Public Utilities Planning and Project Management Name: Matthew McLean 02/22/2023 11:21 AM Approved By: Review: Public Utilities Planning and Project Management Matthew McLean Additional Reviewer Completed 03/06/2023 8:17 AM Public Utilities Operations Support Katrina Lin Additional Reviewer Completed 03/13/2023 1:07 PM Corporate Compliance and Continuous Improvement Megan Gaillard Additional Reviewer Completed 03/16/2023 8:59 AM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 03/16/2023 11:14 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 03/16/2023 1:18 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 03/16/2023 1:43 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/16/2023 4:36 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 03/22/2023 9:53 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 03/22/2023 2:36 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 03/22/2023 3:19 PM Board of County Commissioners Geoffrey Willig Meeting Pending 03/28/2023 9:00 AM 11.C Packet Pg. 347 From:CurryAmia To:UsherSusan Cc:MoncivaizGilbert; LinKatrina Subject:FW: CWS future plans Date:Monday, August 22, 2022 1:10:57 PM Attachments:image003.png Susan, Bond counsel gave the green light. Respectfully, Amia Amia Curry Director Utilities Finance Collier County Public Utilities 3339 Tamiami Trail East, Suite 305 Naples, FL 34112 Amia.Curry@colliercountyfl.gov P - 239-252-6028 C - 239-285-7573 From: CurryAmia Sent: Monday, August 22, 2022 1:10 PM To: McLeanMatthew <Matthew.McLean@colliercountyfl.gov>; PajerCraig <Craig.Pajer@colliercountyfl.gov> Cc: YilmazGeorge <George.Yilmaz@colliercountyfl.gov> Subject: FW: CWS future plans Good afternoon, Great news! We received confirmation from bond counsel that we can use the 2021 bond funds originally intended for GOBP ($15M) on other projects specified in the bond – i.e. Golden Gate and Northeast. We will need to work together to determine how to reallocate the funds, and when the associated contracts are taken to the BCC for approval, make sure to include budget amendments to move the funds into the appropriate cost center(s) ( Water or Wastewater, User or Growth). Respectfully, Amia Amia Curry Director Utilities Finance 11.C.a Packet Pg. 348 Attachment: CCWSD Bond Counsel Confirmation on GOBP Reallocation - 2021 Series Bond Proceeds (24761 : CWS Bond #2 Reallocation) Collier County Public Utilities 3339 Tamiami Trail East, Suite 305 Naples, FL 34112 Amia.Curry@colliercountyfl.gov P - 239-252-6028 C - 239-285-7573 From: Derek M. Johnssen <Derek.Johnssen@collierclerk.com> Sent: Monday, August 22, 2022 11:12 AM To: CurryAmia <Amia.Curry@colliercountyfl.gov> Subject: FW: CWS future plans EXTERNAL EMAIL:This email is from an external source. Confirm this is a trusted sender and use extreme caution when opening attachments or clicking links. See below thread. Thanks Derek M. Johnssen Director of Finance and Accounting Office: 239-252-7863 Derek.Johnssen@CollierClerk.com Collier County Clerk of the Circuit Court & Comptroller 3299 Tamiami Trail E, Suite # 700 Naples, FL 34112-5749 CollierClerk.com From: Miller, Steve <smiller@ngn-tampa.com> Sent: Monday, August 22, 2022 8:57 AM To: Derek M. Johnssen <Derek.Johnssen@collierclerk.com> Subject: RE: CWS future plans External Message: Please use caution when opening attachments, clicking links, or replying to this message. You are correct. As long as the proceeds are used for other governmental purposes related to the utility system you should be good. So, will the CP borrowing be moved up or delayed? 11.C.a Packet Pg. 349 Attachment: CCWSD Bond Counsel Confirmation on GOBP Reallocation - 2021 Series Bond Proceeds (24761 : CWS Bond #2 Reallocation) Steven E. Miller, Esq. Nabors, Giblin & Nickerson, P.A. 2502 Rocky Point Drive, Suite 1060 Tampa, Florida 33607 Phone 813/281-2222 Fax 813/281-0129 smiller@ngn-tampa.com The information and all attachments contained in this electronic communication are legally privileged and confidential information, subject to the attorney-client privilege and intended only for the use of the intended recipients. If the reader of this message is not an intended recipient, you are hereby notified that any review, use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify me immediately of the error by return e-mail and please permanently remove any copies of this message from your system and do not retain any copies, whether in electronic or physical form or otherwise. From: Derek M. Johnssen <Derek.Johnssen@collierclerk.com> Sent: Sunday, August 21, 2022 9:23 AM To: Miller, Steve <smiller@ngn-tampa.com> Subject: CWS future plans I had a discussion on Friday with Utilities and they are backing out of the Government Operations Business Park (GOBP)…as such I will modify the CP schedule of anticipated borrowings. Am I correct in saying that there should be no problem on the Series 2021 Bonds’ project definition as long as the proceeds are only used for the other approved Projects on the list…namely the Golden Gate Utility (GGU) and the Northeast Service Area? Part of their reasoning for foregoing the GOBP is the inflation in costs related to GGU and the Northeast Service Area. Consistent with this the future use of the CWS CP program will be for utilities improvements but not GOBP. Derek M. Johnssen Director of Finance and Accounting Office: 239-252-7863 Derek.Johnssen@CollierClerk.com Collier County Clerk of the Circuit Court & Comptroller 3299 Tamiami Trail E, Suite # 700 Naples, FL 34112-5749 CollierClerk.com This electronic communication contains information intended solely for the named addressee(s). If you have received this communication in error, please forward the email in its entirety to the Clerk's Office at collierclerk@collierclerk.com and delete the email. Under Florida Law, email addresses are public. Under Florida Law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public records 11.C.a Packet Pg. 350 Attachment: CCWSD Bond Counsel Confirmation on GOBP Reallocation - 2021 Series Bond Proceeds (24761 : CWS Bond #2 Reallocation) request, do not send electronic mail to this entity. Instead, contact this office by telephone or in writing. 11.C.a Packet Pg. 351 Attachment: CCWSD Bond Counsel Confirmation on GOBP Reallocation - 2021 Series Bond Proceeds (24761 : CWS Bond #2 Reallocation) Golden Gate City Transmission Water Main Improvements Phase 1A, CEI Services Phase 1A, 1B, & 2, & CWS Bond #2 Reallocation Public Utilities Department March 28, 2023 Collier County | Florida 11.C.g Packet Pg. 352 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2 Companion Items Three companion executive summaries for the Golden Gate City Transmission Water Main Improvements Project are seeking Board approval: Construction of Phase 1A: New transmission water main, sewer force main and Irrigation Quality (IQ) main through the golf course. Construction, Engineering and Inspection (CEI) Services for the Golden Gate City Transmission Water Main Improvements projects (Phase 1A, 1B, 2) CWS Bond #2 Reallocation Budget Amendments: To optimize funding within the CWS Bond #2 Proceeds Fund (419). Public Utilities Department 2 11.C.g Packet Pg. 353 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2 Project Location Public Utilities Department Collier Blvd Santa Barbara Blvd 3 Golden Gate Parkway Green Blvd Radio Road 11.C.g Packet Pg. 354 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2 Objectives To construct new water, wastewater, and irrigation quality mains within Phase 1A to serve Golden Gate City and beyond. – Improve fire flow protection – Meet system demand – Continue compliance – Maintain reliability and sustainability To obtain professional Construction Engineering and Inspections (CEI) services for the Golden Gate City Transmission Water Main Improvement Projects. Public Utilities Department 4 11.C.g Packet Pg. 355 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2 Considerations/Results Phase 1A – New transmission water main, sewer force main and Irrigation Quality (IQ) main through the golf course. GGC potable water service: – CCWSD regional water system – Approx. 70% – Private wells – Approx. 30% New transmission water mains allow for the installation of new distribution water mains in the neighborhoods. Increase system reliability Improve water quality Improve fire protection capability Obtaining Construction Engineering and Inspection services for the Golden Gate City Transmission Water Main Improvements projects Public Utilities Department 5 11.C.g Packet Pg. 356 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2 Recommendation Recommendation to award Construction Invitation to Bid (“ITB”) No. 23- 8058, “Golden Gate City Transmission Water Main Improvements - Phase 1A - Golf Course” to Accurate Drilling Systems, Inc., in the amount of $4,008,590, and authorize the Chairman to sign the attached Agreement. (Project 70253) Recommendation to award Request for Professional Services (“RPS”) No. 22- 8042 for “CEI Services for Golden Gate City Transmission Water Main Improvements – Phase 1A, 1B, 2,” to AIM Engineering and Surveying, Inc., in the amount of $1,817,423.25, and authorize the Chairman to sign the attached agreement. (Project 70253) Recommendation to authorize all necessary budget amendments in the total amount of $16,173,628 to reallocate capital project funding and debt service payments within the various County Water-Sewer funds. Public Utilities Department 6 11.C.g Packet Pg. 357 Attachment: GGC Transmission Water Main PH-1A & CEI Presentation R2 (24761 : CWS Bond #2