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Agenda 04/08/2025 Item #16C3 (BA for the Water Division of the COllier County Water-Sewer District to cover the costs associated with increased purchase of buld water)4/8/2025 Item # 16.C.3 ID# 2025-819 Executive Summary Recommendation that the Board of County Commissioners, as ex-officio the Governing Board of the Collier County Water-Sewer District, approve a Budget Amendment for the Water Division in the amount of $254,000 to redistribute existing Division funds to cover the costs associated with the increased purchase of bulk water (Fund 4008). OBJECTIVE: To fund the purchase of bulk water provided by the Public Utilities Water Division to the Goodland service area through the end of FY25. 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 the first five months of FY25. Several factors have caused the increased demand for bulk water including additional flushing required to maintain water quality and failure of aging water services. As the water distribution system components age, they require replacement. Staff is completing the replacement of all service lines throughout Goodland. To date, 137 service replacements out of 271 requiring replacement have been completed, or approximately 50%. The anticipated completion date for all service replacements is December 2025. The District is reallocating priorities in other areas of operating expense within the existing Fund (4008) Collier County Water Division’s operating budget to offset the increase in bulk water expenses. This item is consistent with the Collier County strategic plan object to plan and build public infrastructure to effectively, efficiently, and sustainably meeting the needs of our community. FISCAL IMPACT: Funding in the amount of $254,000 is needed for the bulk water purchase. The source of funding is the Water Sewer Operating Fund (4008). A budget amendment is required to reallocate funding in the amount of $100,000 from Distribution (Cost Center 253212), $100,000 from Wellfield (Cost Center 253214) and $54,000 from SCRWTP (Cost Center 253211). GROWTH MANAGEMENT IMPACT: There are no Growth Management impacts associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues and requires majority vote for approval. -JAK RECOMMENDATIONS: That the Board of County Commissioners, as ex-officio the Governing Board of the Collier County Water-Sewer District, approve a Budget Amendment for the Water Division in the amount of $254,000 to redistribute existing Division funds to cover the costs associated with the increased purchase of bulk water (Fund 4008). PREPARED BY: Pamela Libby – Manager, Water Distribution/Wellfield ATTACHMENTS: 1. BA - Water - 210125 - Bulk Water Purchases Page 2358 of 5277