Coversheet

ITEM 48.
Utilities - Consent


AGENDA ITEM REPORT

DATE:	November 7, 2023
DEPARTMENT:	Utilities
REQUESTER:	Pamela Keyes
TITLE:	Approve Amendment to Gateway Services Community Development District Interlocal Agreements

I.	MOTION REQUESTED
	A) Approve amendments to the Wholesale Potable Water, Wholesale Wastewater, and the Purchase Agreement between Gateway Services Community Development District and Lee County Utilities. B) Authorize the Chairman to execute the amendments on behalf of the Board of County Commissioners.

II.

ITEM SUMMARY

Authorizes Gateway Services Community Development District (GSCDD) to provide potable water to Florida Government Utility Authority (FGUA) for a limited portion of Lehigh Acres. Lee County Utilities (LCU) provides bulk water services to GSCDD and must provide authorization for GSCDD to re-sell bulk water to FGUA. The amount of wholesale potable water provided to FGUA is not to exceed an average of 500,000 gallons per day for a period of two years. LCU has the capacity to provide the supplemental potable water requested by FGUA, contingent upon the County’s ability to provide uninterrupted services to its own customers and the customers of GSCDD.

III.

BACKGROUND AND IMPLICATIONS OF ACTION

	A)	Board Action and Other History
		Florida Government Utility Authority (FGUA) has requested that Lee County Utilities (LCU) supply an average daily flow of five hundred thousand gallons to a limited portion of Lehigh Acres with potable water via an interconnect with Gateway Services Community Development District (GSCDD). FGUA shall install the interconnect at their expense and make the interconnect bi-directional. LCU will charge GSCDD all of the bulk water provided, and GSCDD will, in turn, be responsible for billing FGUA for all bulk water provided to the specified portion of Lehigh Acres. This amendment to the agreement is valid for two years, with the effective date commencing with the effective date of the agreement between FGUA and GSCDD approved by the GSCDD Board on October 5, 2023. All wastewater produced by the Lehigh Acres residents will continue to be FGUA customers and their responsibility. GSCDD will not be charged for wastewater services for this amount of water provided to FGUA. The Purchase Agreement was amended to include this temporary service area as defined in Exhibit A.

	B)	Policy Issues

	C)	BoCC Goals

	D)	Analysis
		Gateway Services Community Development District (GSCDD) will be responsible for paying Lee County Utilities for all potable water entering their system, including the water being supplied to the Florida Government Utility Authority (FGUA). GSCDD will pay Lee County Utilities the current wholesale water rate ($4.14 per 1000 gallons) or the prevailing wholesale water rate for an estimated five hundred thousand gallons per day for an estimated revenue increase of $750,000 per year. GSCDD will not be charged for wastewater services for this amount of water provided to FGUA.

	E)	Options

IV.

FINANCIAL INFORMATION

A)	Current year dollar amount of item:	See Comments below.
B)	Is this item approved in the current budget?	Yes
C)	Is this a revenue or expense item?	N/A
D)	Is this Discretionary or Mandatory?	Discretionary
E)	Will this item impact future budgets? If yes, please include reasons in III(D) above.	No
F)	Fund: Program: Utilities Project: Account Strings:
G)	Fund Type?	Enterprise
H)	Comments: GSCDD will pay Lee County Utilities the current wholesale rate ($4.14 per 1000 gallons) for an estimated 500,000 gallons per day for an estimated revenue increase of $750,000 per year.

V.	RECOMMENDATION
	Approve

VI.	TIMING/IMPLEMENTATION

VII.	FOLLOW UP

ATTACHMENTS:
Description	Upload Date	Type
unsigned 1st AAcquisition Amendment GSCDD	10/24/2023	Agreement
unsigned 1st wholesale potable water amendment GSCDD	10/24/2023	Agreement
unsigned 1st wholesale wastewater amendment GSCDD	10/24/2023	Agreement
110723R-C-48-Utility Service Provision Agreement First Amendment	11/15/2023	Agreement
110723R-C-48-Gateway Wholesale Potable Water ILA First Amendment	11/15/2023	Interlocal Agreement
110723R-C-48-Gateway Wholesale Wastewater Treatment ILA First Amendment	11/15/2023	Interlocal Agreement

REVIEWERS:
Department	Reviewer	Action	Date
Utilities	Keyes, Pamela	Approved	10/25/2023 - 10:54 AM
Budget Services	Guttery, Angela	Approved	10/25/2023 - 1:39 PM
Budget Services	Winton, Peter	Approved	10/26/2023 - 8:46 AM
County Attorney	Swindle, Amanda	Approved	10/30/2023 - 10:27 AM
County Manager	Mora, Marc	Approved	10/30/2023 - 4:42 PM