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Agenda 05/09/2023 Item #16C 5 (B/A for the Water Division to redistribute existing Division Funds covering increased purchase of bulk water for operations)16.C.5 05/09/2023 EXECUTIVE SUMMARY Recommendation to authorize a budget amendment for the Water Division in the amount of $279,500 to redistribute existing Division funds to cover the costs associated with the increased purchase of bulk water to fund continued operations in the Water Division Budget through the end of Fiscal Year 2023. OBJECTIVE: To fund the purchase of bulk water provided by the Public Utilities Water Division to the Goodland service area through the end of FY 2023. CONSIDERATIONS: The Collier County Water -Sewer District purchases water from Marco Island Utilities, which is then treated, and pressurized before it is pumped to customers in Goodland and Key Marco. The amount of bulk water purchased has been greater than the amount budgeted for providing service to the customers of the Goodland service area during FY 2023. Several factors have caused the increased demand for bulk water including additional flushing required to maintain water quality, and repairs to water main breaks. Year to date 82,417,000 gallons of water have been purchased and it is anticipated that an additional amount of 61,044,000 gallons will be purchased through the end of FY 2023 requiring additional funding. There is not enough funding in the budget to obtain the water necessary without this budget amendment. Funding for the additional purchase of bulk water is available within various Water Division cost centers including the South County Regional Water Treatment Plant, North County Regional Water Treatment Plant, Power Systems, and Water Distribution. FISCAL IMPACT: The current budget for bulk water is $400,000, which is not sufficient to cover the costs of the additional bulk water needed for operations. A budget amendment is required to reallocate funding, in the amount of $279,500, from savings in various cost centers within the existing Fund (408) Collier County Water Division's operating budget to offset the increase in bulk water expenses. GROWTH MANAGEMENT IMPACT: There are no Growth Management impacts associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been approved by the County Attorney, raises no legal issues and requires majority vote for approval. -JAK RECOMMENDATION: To authorize a budget amendment for the Water Division in the amount of $279,500 to redistribute existing Division funds to cover the costs associated with the increased purchase of bulk water to fund continued operations in the Water Division Budget through the end of Fiscal Year 2023. Prepared by: Howard Brogdon, Director, Water Division Packet Pg. 768 16.C.5 05/09/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.5 Doe ID: 25272 Item Summary: Recommendation to authorize a budget amendment for the Water Division in the amount of $279,500 to redistribute existing Division funds to cover the costs associated with the increased purchase of bulk water to fund continued operations in the Water Division Budget through the end of Fiscal Year 2023. Meeting Date: 05/09/2023 Prepared by: Title: Manager - Distribution — Water Name: Pamela Libby 04/18/2023 1:05 PM Submitted by: Title: Plant Manager — Water Name: Howard Brogdon 04/18/2023 1:05 PM Approved By: Review: Corporate Compliance and Continuous Improvement Megan Gaillard Water Howard Brogdon Additional Reviewer Public Utilities Operations Support Drew Cody Additional Reviewer Public Utilities Department Drew Cody Level 1 Division Reviewer Public Utilities Department Drew Cody Level 2 Division Administrator Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Office of Management and Budget Laura Zautcke Additional Reviewer Corporate Compliance and Continuous Improvement Megan Gaillard County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review County Manager's Office Dan Rodriguez Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Additional Reviewer Completed 04/24/2023 5:33 AM Completed 04/24/2023 6:14 AM Skipped 04/24/2023 1:15 PM Completed 04/25/2023 10:23 AM Skipped 04/28/2023 10:09 AM Completed 04/28/2023 11:06 AM Completed 04/28/2023 1:11 PM Additional Reviewer Completed 04/28/2023 1:27 PM Completed 04/28/2023 1:37 PM Completed 05/02/2023 9:00 AM 05/09/2023 9:00 AM Packet Pg. 769