Oct 19, 2021 Fort Pierce Utilities Authority

[Call to Order]

[00:00:08]

ORDER THE REGULAR FU PA BOARD MEETING FOR OCTOBER 19, 2021.

AND STAND FOR THE PRAYER. >> BLESS IN THE LORD THAT IS ALL WITHIN ME. BLESS HIS HOLY NAME, LORD, WE THANK YOU FOR YOUR GRACE AND MERCY.

FOR YOUR MERCY IS NEW EVERY MORNING.

WE ASK THAT YOU BLESS THIS BOARD WITH THE WISDOM OF SOLOMON, THE COURAGE OF JOSHUA AND THE HUMILITY OF GIDEON.

BLESS THE CITY OF FORT PIERCE AND ALL THE THINGS IT LAYS ITS HAND TO AND A PROSPEROUS COMMUNITY AND A FOUNTAIN OF LIVING WATER OF ALL THAT LIVE, WORK AND PRAY HERE WILL BE BLESSED BY IN JESUS'S NAME. AMEN.

>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY

AND JUSTICE FOR ALL. >> MADAM SECRETARY, WILL YOU

PLEASE CALL THE ROLL. >>BARBARA BENNETT: PRESENT.

>>KRISTINA GIBBONS: PRESENT. >>MAYOR HUDSON: PRESENT.

>> MR. FEE? >> WE ACTUALLY HAVE A NEW MEMBER THAT NEEDS TO BE SWORN IN.

MR. LANDERS. IF HE CAN STEP UP WITH MISS

COX. >> RAISE YOUR RIGHT HAND AND REPEAT AFTER ME, I JOSEPH LARRY LAMMERS, A CITY OF THE STATE OF FLORIDA AND THE UNITED STATES OF AMERICA AND BEING EMPLOYED BY OR AN OFFICER OF THE CITY OF FORT PIERCE AND RECIPIENT OF PUBLIC FUNDS AS AN EMPLOYEE OR OFFICER.

DO HEREBY SOLEMNLY SWEAR OR AFFIRM THAT I WILL SUPPORT THE CONSTITUTION OF THE UNITED STATES AND MUCH THE STATE OF

FLORIDA. >> CONGRATULATIONS.

YOU HAVE BEEN SWORN IN. IF YOU WILL GO AHEAD AND SIGN THAT, PLEASE. SIGN THAT AS WELL.

AND THE ORIGINAL. THANK YOU VERY MUCH AND

CONGRATULATIONS. >> THANK YOU.

[APPLAUSE] >> WELCOME TO THE TEAM.

WOULD YOU LIKE TO SAY A COUPLE OF THINGS ABOUT YOURSELF?

>> WELL, SURE, SO MOVED HERE WHEN I WAS SIX YEARS OLD.

RAISED IN THE CITY OF FORT PIERCE, AND TO SAY I NEVER IMAGINED MYSELF WITH THIS LEVEL OF RESPONSIBILITY THAT I AM GOING TO TAKE SO SERIOUSLY WOULD BE AN UNDERSTATEMENT.

I AM JUST REALLY EXCITED TO BE PART OF THE TEAM AND HOPEFULLY LEAVE THE UTILITY IN BETTER SHAPE THAN WE FOUND IT.

>> GREAT. WELL, WELCOME.

MADAM SECRETARY, PLEASE CALL THE ROLE.

>>BARBARA BENNETT: YES, PRESENT.

>> MR. LAMMERS. >> YES, MA'AM.

>>MAYOR HUDSON: YES. >>KRISTINA GIBBONS: YES.

>> DO WE HAVE TO EXCUSE MR. F FEE'S ABSENCE?

>> TO EXCUSE MR. FEE FROM THE MEETING AND FULL G.8 FOR A LATER MEETING. WE SHOULD GO AHEAD AND MAKE A

MOTION. >>MAYOR HUDSON: I MOVE WE

EXCUSE MR. FEE FOR THE MEETING. >> I SECOND.

>> WE HAD A MOTION AND A PROPER SECTION SECOND.

PLEASE CALL ROLL. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMMERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

[A. SET THE AGENDA]

>>KRISTINA GIBBONS: YES, MA MA'AM.

>> DO WE NEED A MOTION TO APPROVE THE AGENDA.

>> SO MOVED. >> SECOND IT.

>> WE HAVE A RECOMMENDATION FOR APPROVAL TO SET THE AGENDA AND

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>> MR. LAMBERS. >> YES, MA'AM.

[B. APPROVAL OF MINUTES]

>>MAYOR HUDSON: YES, MA'AM. >>KRISTINA GIBBONS: YES,

MA'AM. >> I TRUST EVERYBODY HAS A MINUTE TO GO THROUGH THE MINUTES.

IF WE CAN GET A MOTION FOR MINUTES.

>> I MAKE A MOTION WE MOVE THE MINUTES.

>> SECOND. >> MADAM SECRETARY.

>>BARBARA BENNETT: YES, MA'AM. >> MR. LAMBERS: SHOULD I ABSTAIN SINCE I HAVEN'T BEEN AT THE LAST MEETING.

>> YOU PROBABLY SHOULD BUT -- IF YOU DON'T ATTEND THE MEETING, YOU STILL HAVE TO V VOTE.

I DON'T KNOW ABOUT -- WHO WASN'T ON THE BOARD AT THE LAST TIME. SO --

>> I THINK THE CITY -- IF YOU HAVEN'T BEEN AT THE MEETING YOU STILL HAVE TO VOTE ON THE MINUTES.

YOUR CALL, BUT I THINK -- >> IT WON'T HURT ANYTHING.

>> MR. LAMBERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

[C. COMMENTS FROM THE PUBLIC]

>>KRISTINA GIBBONS: YES, MA MA'AM.

>> DO WE HAVE ANY COMMENTS FROM THE PUBLIC

[D. CONSENT AGENDA]

. >> ALL RIGHT, CONSENT AGENDA.

MAKE MOTION FOR APPROVAL. >> I MOVE APPROVAL.

>> SECOND. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMBERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

>>KRISTINA GIBBONS: YES, MA'AM .

[G.1. EDC Update Presentation]

IS. >> NO LETTERS OF OLD BUSINESS.

MR. TOM PECK, IF YOU WOULD LIKE TO TAKE THE FLOOR.

>> THANK YOU VERY MUCH. FIRST I HAD A CHANCE TO SPEND A COUPLE OF HOURS WITH MR. LAMMMERS THIS AFTERNOON AND HE IS FAMILIAR WITH THE AGENDA ITEM.

HE IS NOT COMING IN COMPLETELY COLD.

HE UNDERSTANDS THAT HE HAS TO VOTE ON THEM AND GO FORWARD.

THE FIRST ITEM THIS AFTERNOON IS AN UPDATE PRESENTATION OF THE EDC FROM PETE TESH FROM THE ECONOMIC DEVELOPMENT COUNCIL.

>> GOOD AFTERNOON MADAM VICE-CHAIR, MAYOR COMMISSIONERS. MR. LAMMERS, CONGRATULATIONS ON YOUR APPOINTMENT. I CAN'T THINK OF A BETTER WAY TO KICK OFF YOUR LEADERSHIP THAN A POWERPOINT PRESENTATION FROM THE EDC. THE MAYOR HEARD IT A NUMBER OF TIMES BUT A LOT OF GOOD NEWS TO SHARE.

THANK YOU FOR ALLOWING ME TO HAVE THIS PRESENTATION AND THIS DISCUSSION. SO LET'S GET GOING.

THIS AFTERNOON I JUST WANT TO GIVE YOU A QUICK ECONOMIC AND DEMOGRAPHIC UPDATE WHAT IS HAPPENING IN FORT PIERCE AND ST. LUCIE COUNTY. TALK ABOUT SOME PROJECTS AND MOST IMPORTANT, THE WORK THAT WE DO TOGETHER WITH THE ECONOMIC DEVELOPMENT COUNCIL AND FPUA.

I AM PETE TESH THE PRESIDENT OF THE ECONOMIC DEVELOPMENT COUNCIL. EDC HOPES IT PROVIDE JOBS AND ECONOMIC PROSPERITY FOR ST. LUCIE COUNTY.

WE ARE VERY PROUD OF THE PARTNERSHIP WE HAVE WITH THE CITY OF FORT PIERCE AND FPUA. OUR MISSION TOGETHER IS TO HELP NEW AND EXPANDED BUSINESSES AND HELP CREATE HIGH- ING JOBS AND CREATE WEALTH FOR OUR CITIZENS AND RESIDENTS.

A LABOR OF LOVE THE GREAT THING OF ST. LUCIE COUNTY AND FORT PIERCE THAT WE WORK TOGETHER FOR THE BETTERMENT OF THE COMMUNITY. I AM VERY PROUD TO BE A RESIDENT OF THE CITY OF FORT PIERCE AND A UA RATE PAYER.

WE ARE ALL INVESTED TOGETHER. SO -- WELL, THAT'S ME.

[LAUGHTER] JUST IN CASE, AGAIN, I AM PRESIDENT OF THE EDC. LET'S GO A QUICK OVERVIEW OF ECONOMIC AND DEMOGRAPHIC, THE DYNAMICS THAT ARE REALLY OCCURRING HEAR -- HERE IN ST. LUCIE COUNTY.

POPULATION 344,000 FROM THE U.S. CENSUS IN 2020.

680,000 IN THE TREASURE COAST. LABOR FORCE, WHICH IS VERY CRITICAL IS ABOUT 156,000. AGE DIDISTRIBUTION IS VERY

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WE HAVE 130,000 HOUSEHOLDS IN ST. LUCIE COUNTY AND MAKES UP 68.9%. OF THE HOUSEHOLD INCOME DISTRIBUTION, 64% OF THOSE HOUSEHOLDS MAKE LESS THAN $75,000 A YEAR SO ONE OF THE MISSIONS OF THE EDC CREATING HIGHER PAYING JOBS AND ONE AREA WE WANT TO HELP OUR CITIZEN IS RAISING OUR AVERAGE EARNINGS PER WORKER.

LOOKING A LITTLE BIT AT GROWTH. POPULATION GROWTH IN ST. LUCIE COUNTY HAS BEEN QUITE ROBUST. WE ARE LOOKING AGAIN AT $ $344,000, 1875% INCREASE IN POPULATION SINCE 2016.

YOU KNOW JUST DRIVING AROUND TODAY THE CARS ARE VERY CLOSE TOGETHER DOWN US 1 AND THE MAJOR CORRIDORS.

AS YOU CAN SEE HAVING ALMOST TWO AND A HALF PERCENT YEAR-OVER-YEAR POPULATION GROWTH IS BECOMING READILY APPARENT. WORK FORCE.

ONE OF THE REASONS WE ARE SEEING SUCH STRONG ECONOMIC GROWTH IS THAT WE HAVE A COMPARATIVE ADVANTAGE IN OUR AVERAGE EARNINGS PER WORKER. THIS NUMBER IS A LITTLE BIT O OLD. IT IS 2020 NUMBER, BUT THE AVERAGE EARNINGS PER WORKER IS ABOUT 1954 DOLLARS THAT EQUATES TO $40,000 A YEAR. THIS IS CERTAINLY QUITE A DIFFERENTIAL WHEN YOU LOOK AT MIAMI, MARTIN, PALM BEACH AND BROWARD COUNTY. THE AVERAGE WAGE DIFFERENTIAL IS ABOUT $5.50 PER HOUR DIFFERENCE.

OBVIOUSLY THE COST OF LIVING IN THOSE OTHER SOUTH FLORIDA COMMUNITIES MAKE IT EVEN EVEN MORE PRONOUNCED IN TERMS OF THE WAGE DIFFERENTIAL. WELL, ONE THING THAT WE HAVE DISCUSSED BEFORE IS TO WE HAVE A FAIRLY SIGNIFICANT PORTION OF OUR WORKFORCE TRAVELING OUTSIDE OF ST. LUCIE COUNTY TO GO TO DIFFERENT AREAS. AND I WILL SHOW YOU THE HEAT MAP IN JUST A SECOND BUT MOST OF THOSE INDIVIDUALS ARE TRAVELLING TO PALM BEACH COUNTY AND MARTIN, AND EVEN AS FAR AS MIAMI AND ORLANDO. SO WE VIEW THIS AS AN ASSET IN THE SENSE THAT IF WE CAN FIND HIGH-WAGE HIGH-SKILLED JOBS FOR THE INDIVIDUALS WHO ARE COMMUTING, THEY WOULD PROBABLY LIKE TO WORK CLOSER TO HOME. MAYBE SAVE SOME MONEY, TIME, LITTLE WEAR AND TEAR ON THEIR CAR, AND HELP CONTRIBUTE TO OUR LOCAL ECONOMY. SO THIS IS JUST THE HEAT MAP THAT SHOWS THE -- THE MIGRATION PATTERNS.

AGAIN, MOST OF THAT INTO MARTIN AND PALM BEACH COUNTY, BUT, AGAIN, 2% OF THE WORK FORCE GOING TO ORLANDO AND MIAMI EVERY DAY, SO GOD BLESS THOSE INDIVIDUALS.

HOUSING DATA. OBVIOUSLY WHAT IS OCCURRING HERE IN FLORIDA, SOUTH FLORIDA, AND THEN ST. LUCIE COUNTY AND FORT PIERCE. SEEN A DRAMATIC INCREASE IN THE MEDIAN SINGLE-FAMILY HOME SA SALES.

ST. LUCIE OLD AT 305,000. I THINK THE NUMBER HAS ALREADY GONE UP TO $320,000. THAT IS VERY SUBSTANTIAL.

OBVIOUSLY FROM A PUBLIC POLICY STANDPOINT, MAKING SURE THAT WE HAVE REASONABLY PRICED, ATTAINABLE HOUSING FOR OUR WORKERS IS A KEY ISSUE FOR ECONOMIC DEVELOPMENT.

SO GLAD I LIVE HERE AS OPPOSED TO THE OTHER COMMUNITIES, MIAMI, MARTIN, PALM BEACH AND BROWARD.

AS YOU CAN SEE THEY WENT OVER HALF A MILLION DOLLARS.

THIS IS AN ISSUE THAT I KNOW IMPACTS UA, THE CITY OF FORT PIERCE AND THE ST. LUCIE CO COUNTY.

AS FAR AS PERMITTING FOR NEW SINGLE-FAMILY HOMES HAVE BEEN VERY PRONOUNCED. AS YOU CAN ANNIVERSARY 2020, WE HAD OVER 4400. THAT IS -- I THINK WE ARE GOING

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I KNOW THIS NUMBER IS ALREADY APPROACHING 4,000, EVEN THOUGH WE ARE AT 2100 AS OF JUNE OF 2021.

SO IT IS GREAT THAT WE ARE INCREASING THE SUPPLY IN THE HOUSING STOCK OF SINGLE-FAMILY RESIDENTIAL HOMES.

LOOKING A LITTLE BIT AT PROJECTS, WE HAVE A LOT OF GREAT NEW AND EXPANDING BUSINESSES.

OVER THE LAST FIVE YEARS, MEASURED EDC ASSISTED PROJECTS.

WHEN I USE THE WORLD EDC, PUBLIC-PRIVATE PARTNERSHIP AND ALL OF US WORKING TOGETHER. WE HAD 49 NEW AND EXPANDING BUSINESSES, EITHER RELOCATE OR -- OR EXPAND THEIR FOOTPRINT HERE IN ST. LUCIE COUNTY THAT EQUATED TO 3200 RETAINED JOBS.

10.2 MILLION SQUARE FEET OF NEW INDUSTRIAL AND COMMERCIAL SPACE WITH A CAPITAL INVESTMENT OF OVER $1 BILLION.

TOTAL JOBS, 1700. AND THEN THE PROJECTED NEW JOBS OF ALL THESE BUSINESSES ARE CLOSE TO 8,000.

AND WHEN I DID THIS PRESENTATION WITH CITY OF FORT PIERCE A FEW WEEKS AGO, WE JUST FINISHED OUR ECONOMIC IMPACT ANALYSIS BY A THIRD PARTY ECONOMIC RESEARCH FIRM AND THEY ESTIMATED THAT 7968 JOBS WILL TRANSLATE INTO 10,250 AS WE GO FORWARD. IT IS A LOT OF JOBS AND WE NEED THE PEOPLE TO FILL THEM. SO, TO SEE, THIS IS A HISTORICALLY SIGNIFICANT PHENOMENON THAT WE ARE SEEING DIVERSIFICATION OF THE ECONOMY AND ALSO A LOT OF HIGHER PAYING JOBS COME TOGETHER AREA. SO THOSE PROJECTS ARE QUITE DIVERSIFIED. MANUFACTURING IS REALLY MAKING A COMEBACK HERE IN ST. LUCIE COUNTY.

20 PROJECTS, BUT OTHERS -- LIFE SCIENCE, PROFESSIONAL SERVICES, AVIATION, MARINE, HEADQUARTERS AND OTHERS.

SO WHILE IT MAY BE KNOWN THAT WE ATTRACT NEW BUSINESSES, OUR BREAD AND BUTTER IS HELPING OUR COMPANIES THAT HAVE BEEN HERE A WHILE TO HELP THEM GO THROUGH THE PERMITTING AND REGULATORY PROCESS AND HELP THEM EXPAND. SO WE ARE -- WE ARE GLAD THAT WE ARE WORKING WITH EXISTING COMPANIES AS LONG AS -- AS LONG AS WITH OUR NEW COMPANIES THAT ARE RELOCATING TO THE AREA.

SO IN JUST THE LAST SIX MONTHS, WE HAD EIGHT ACTIVE PROJECTS, THREE EXPANSIONS, FIVE NEW COMPANIES, AND $184 MILLION IN CAPITAL INVESTMENT. THINGS ARE LOOKING PRETTY BRIGHT ECONOMICALLY HERE. PROBABLY THAT ONE HAS HIT THE US IN THE MOST IS THE NEW AMAZON DISTRIBUTION CENTER GOING ON I-95 AND MIDWAY ROAD. MIDWAY BUSINESS PARK, 1.1 MILLION SQUARE FEET. $100 MILLION IN CAPITAL INVESTMENT AND 500 NEW JOBS. COOL LITTLE COMPANY IS CHANDLER BATS THAT HAS SET UP OPERATION IN ST. LUCIE WEST.

THEY MANUFACTURE WOODEN BATS FOR MAJOR LEAGUE AND INTERNATIONAL BASEBALL. A NICE LITTLE ADDITION TO THE COMMUNITY. CHENEY BROTHERS PLANS TO BUILD THEIR NEWEST DISTRIBUTION CENTER IN LEGACY PARK IN TRADITION. CLOSE TO 430,000 SQUARE FEET.

$55 MILLION IN CAPITAL INVESTMENT.

AND 380 JOBS. CONTENDER BOATS.

THEY ARE TAKING THE OLD FACILITY, THE OLD RIVER INDIAN PACKER BUILDING IN THE TURNPIKE AND MIDWAY ROAD.

LOOKING TO RETROFIT THAT BUILDING AND 200 JOBS AND MANUFACTURE BOATS THERE, CONTENDERS OUT OF HOMESTEAD.

DND WELDING AND FABRICATION. LONG-TIME COMPANY IN FORT PIERCE AT THE AIRPORT EXPANDING 33,000 SQUARE FEET.

FED EX GROUND, THE SORTING FACILITY IS COMING TO LEGACY PARK. $44 MILLION IN CAPITAL INVESTMENT. SAYS 490 JOBS BUT NEED 800 PEOPLE. AND THEY ARE PLANNING TO OPEN IF THEY GET THEIR CO ON OCTOBER 28.

THINGS ARE HAPPENING RAPIDLY. ANOTHER GREAT FORT PIERCE

[00:20:01]

FOREIGN DIRECT INVESTMENT PROJECT IS IS-BASED MANUFACTURER JOHN STEELE. THEY ARE GOING AT THE MIDWAY BUSINESS PARK CONSTRUCT A 45,000-SQUARE-FOOT FACILITY AND 55 NEW JOBS. THEY HAVE BEEN DISPLAYED WITH SUPPLY CHAIN ISSUES. THEY CAN'T FIND STEEL TO BUILD THE BUILDING. A COMMON OCCURRENCE WE ARE SEEING THESE DAYS. MAVERICK BOAT GROUP IS GOING THROUGH PHASE TWO EXPANSION THAT OCCURRED IN 2018.

ANOTHER 106,000 SQUARE FEET AND 150 NEW JOBS.

AND LOOKING TO MANUFACTURE SOME MORE QUALITY BOATS.

SO A LOT GOING ON IN THE -- IN THE INDUSTRIAL AND COMMERCIAL DEVELOPMENT SIDE. WANTED TO SHARE SOME OF THE PROMINENT NATIONAL DEVELOPERS THAT HAVE COME TO ST. LUCIE COUNTY AND HOW THAT WILL IMPACT OUR FUTURE GROWTH AND HOW WE WORK TOGETHER TO HELP CREATE MORE JOBS.

SO STARTING TO THE SOUTH WITH THE S AMSONG, THE STONEMONT AND THE SILVERMAN GROUP HAVE MILLIONS OF INDUSTRIAL SPACE PLANNED FOR ST. LUCIE COUNTY AND FORT PIERCE.

IT IS UNBELIEVABLE THAT THAT NUMBER IS -- MAYOR, WHEN I CAME IN FRONT OF THE CITY OF FORT PIERCE.

I MENTIONED ABOUT SIX MILLION TO SEVEN MILLION SQUARE FEET.

THAT NUMBER IS GOING UP TO CLOSE TO NINE MILLION SQUARE FEET. INDUSTRIAL DEVELOPMENT MONUMENT ON EVERY INTERCHANGE ON I-95 ASIDE FROM INJURY AND ROAD IN ST. LUCIE WEST. IT IS GOING TO BE PRETTY PHENOMENAL A VISUAL TRAVEL DOWN THE ROAD AND ALREADY IS AS WE GO IN THE FUTURE. SO WE TALK OF CHENEY BROTHERS AND FED EX AND WHAT IS GOING. SAMSONG GROUP HAVE FIVE MILLION SQUARE FEET AND S PEC BUILDINGS GOING ON.

>>> SEIFRIED DEVELOPMENT PROPERTIES, THE DEVELOPMENT COMPANY THAT IS BUILDING AM AMAZON.

THEY ARE BUILDING 658,000 SQUARE FEET.

THIS IS SPEC AND BUILT TO SUIT. SOUTH OF LOVE'S TRUCK STOP ON KINGS HIGHWAY SOUTH OF ORANGE AVENUE.

EXCUSE ME, WE HAVE TALKED ABOUT THE INTERSTATE CROSSROADS BUSINESS CENTER, 1.5 MILLION SQUARE FEET WITH 550,000 SQUARE FEET AT THE BEGINNING ON I-95 AND OKEECHOBEE.

WE ARE NOT SURE WHAT THE USER IS GOING TO BE HERE, BUT HOPEFULLY WE WILL KNOW PRETTY SOON.

NEXT TO THE SEEFRIED, AND BUILDING ANOTHER A MILLION SQUARE FEET ON KING HIGHWAY ORANGE AVENUE.

TALK ABOUT T LAMBEAU NI TRADITION, WE TALK ABOUT THIS MORE OFFICE HEADQUARTERS FOR COMMERCIAL.

I AM GOING TO STOP RIGHT THERE, MADAM VICE-CHAIR TO SEE IF THERE ARE ANY QUESTIONS. I WOULD LIKE TO SAY THAT GOING FORWARD, THERE ARE A COUPLE OF THINGS THAT THE EDC WANTS TO WORK VERY CLOSELY WITH THE AUTHORITY.

ONE FROM A PHYSICAL ASPECT, LOOKING AT KINGS HIGHWAY AND THEN FROM OKEECHOBEE TO ORANGE AVENUE, THAT IS GOING TO BE THE AVENUE OF GROWTH FOR THE GREATER FORT PIERCE AREA FOR THE INDUSTRIAL. EVEN I MENTIONED ON KINGS HIGHWAY WERE INCLUSIVE. MANY OTHER PROJECTS ON THERE.

WE VIEW THIS AS, YOU KNOW, THE INDUSTRIAL DEVELOPMENT BOARD DERR FOR FORT PIERCE. YOU ADD IN ST. LUCIE BOULEVARD AND THE AIRPORT, WE WANT TO WORK TOGETHER TO FULLY DEVELOP

[00:25:02]

BECAUSE WE SEE THIS TO BE A LONG-TERM FUTURE GROWTH CORRIDOR. THE OTHER ITEM IS DEVELOPMENT OF DOWNTOWN FORT PIERCE. WE HAVE BEEN WORKING WE CLOSELY WITH UA, PARTICULARLY WITH KINGS LANDING ATTRACTING A H HIGH-END HOTEL PROJECT. SO WHAT IS OCCURRING WITH THE CITY OF FORT PIERCE AND THE REDEVELOPMENT EFFORT.

WE REALLY SEE THAT TO BE AN AVENUE OF OPPORTUNITY, PARTICULARLY WITH KINGS LAN LANDING, FISHERMAN'S WHARF, DIRECT YOUR SHIPYARDS. MAKE THAT AS SUCCESSFUL AS POSSIBLE. SO YOU THINK ABOUT THAT PARTICULAR GROWTH IN A CONCENTRATED AREA.

WHAT CAN WE DO TOGETHER TO MAKE SURE THAT THE INFRASTRUCTURE NEEDS ARE THERE? AND, YOU KNOW, IF THERE IS NOT ENOUGH FOR US TO DO, YOU KNOW, WE ARE TRYING TO GET THE WA WASTEWATER TREATMENT FACILITY OFF OF SOUTH HUTCHINSON ISLAND, SOMETHING WE CAN DO ON THE S SIDE.

THESE ARE THINGS THAT -- YOU KNOW, HAVE TREMENDOUS IMPACT FROM AN ECONOMIC OR COMMERCIAL ASPECT FOR THE CITY AND I WANT TO YOU KNOW THAT THE EDC STANDS SHOULDER TO SHOULDER WITH YOU ALL, THE GREAT STAFF OF FPUA AND THE CITY TO MAKE SURE WE GET THIS DONE, HELP CREATE J JOBS, AND MAKE THIS THE GREAT CITY THAT IT HAS ALWAYS BEEN. SO I WILL STOP THERE.

I WILL BE HAPPY TO ANSWER ANY QUESTIONS.

AND I DO APPRECIATE YOUR TIME. >> THANK YOU.

ANYBODY HAVE ANY QUESTIONS? >> ARE THERE ANY OTHER AREAS IN THE CITY OF FORT PIERCE THAT THE EDC IS LOOKING AT TO TRY TO DEVELOP, TO CREATE MORE JOBS, TO ATTRACT DIFFERENT BUSINESSES

TO COME? >> YES, MA'AM.

THE OVERALL DEVELOPMENT OF THE CITY OF FORT PIERCE IS REAL CRITICAL. RIGHT NOW, WE ARE REALLY FOCUSED ON THE HUMAN ASPECT IN TERMS OF THE -- TRYING TO HELP COMPANIES GET WORKERS, SEMI SKILLED WORKERS.

AND WE HAVE BEEN WORKING VERY CLOSELY WITH LINCOLN PARK MAIN STREET IN THAT WORKING WITH PAM CARUTHERS AND OTHERS, CAN WE HELP THE RESIDENTS AND THE NEIGHBORS OF THAT GREAT NEIGHBORHOOD GET GREAT JOBS. SO, I MEAN, THERE ARE A LOT OF THINGS THAT CAN BE DONE FROM A REDEVELOPMENT ASPECT BOTH ON THE PHYSICAL ASSETS AND THE TALENT SIDE.

BUT THAT IS ONE THAT WE HAVE BEEN FOCUSING ON PRIMARILY

RIGHT NOW. >>BARBARA BENNETT: ALSO, HOW MANY OF THESE BUSINESSES ARE IN FORT PIERCE? I HEARD YOU SPEAKING ABOUT PORT ST. LUCIE TRADITION.

HOW MANY OF THESE MAJOR JOBS ARE COMING TO FORT PIERCE?

>> MA'AM, PROBABLY THE MOST SIGNIFICANT ONE WILL BE THE SILVERMAN GROUP AT THE CR CROSSROADS COMMERCE PARK.

I MENTIONED THE 1 BE 1 MILLION SQUARE -- 1.1 MILLION SQUARE FEET. THAT WILL HAVE A TREMENDOUS IMPACT ON THE CITY IN THAT REGARD.

WE ALSO WORK WITH SEVERAL OTHER COMPANIES OVER THE YEARS.

ROCKLA, VOSLA AND RADICAL COSMETICS AND WITH SHIPYARDS.

>>BARBARA BENNETT: I KNOW THERE IS A DEVELOPMENT OUT OKEECHOBEE ROAD WHERE THE GOOD WILL IS LOCATED AT.

AND THAT BUILDING HAS BEEN -- IT HAS BEEN ISOLATED FOR MANY YEARS. ARE WE TRYING TO ATTRACT DIFFERENT BUSINESSES TO COME IN AND ACTUALLY ESTABLISH

SOMETHING THIS? >> I AM NOT FAMILIAR WITH THAT SPECIFIC BUILDING, MA'AM. BUT I MENTIONED THE -- THE CONTENDER PROJECT AND THAT WENT IN THE OLD INDIAN RIVER PACKER BUILDING. THAT WAS OUR VERY LAST EXISTING BUILDING. YOU REALLY ASK A GREAT QUESTION BECAUSE A LOT OF SMALL AND MEDIUM-SIZED BUSINESSES.

THEY DON'T NEED A MILLION SQUARE FEET FOR 500,000 SQUARE FEET. ATTRACTING SOME OTHER DEVE DEVELOPERS THAT ARE CREATING OPPORTUNITIES FOR -- FOR OUR

[00:30:03]

SO I APPRECIATE YOU BRINGING THAT UP.

IN FACT, A COMPANY BY THE NAME OF JBL IS GOING THROUGH THE SITE PLANNING PROCESS TO BUILD ABOUT 200,000 SQUARE FEET THERE AT THE CROSSROADS COMMERCE CENTER.

THE PROPERTY RIGHT UP IN FRONT OF THE SOUTHWEST QUADRANT OF OKEECHOBEE AND I-95, WHICH IS GOING TO PROVIDE, YOU KNOW, WAREHOUSING AND FLEX SPACE, YOU KNOW, FOR SMALLER COMPANIES.

SO THAT IS REALLY CRITICAL BECAUSE WE DON'T HAVE MORE INDUSTRIAL OR COMMERCIAL FACILITIES THAT ARE AVAILABLE

FOR THESE TYPE OF BUSINESSES. >>BARBARA BENNETT: THAT IS A

GREAT LOCATION. >> YES.

SO WE ARE TRYING TO MAKE SURE THAT HAPPENS.

AND ALSO ATTRACT BUSINESSES INTO THOSE NEW FACILITIES.

>> MADAM CHAIR, I APPRECIATE THE PRESENTATION.

VERY, VERY INFORMATIVE. I HAVE TWO QUESTIONS.

ONE IN MY MIND, IT SEEMS LIKE THERE IS A DISPROPORTIONATE AMOUNT OF THE DEVELOPMENT GOING TO PORT ST. LUCIE.

I UNDERSTAND THEY ARE MUCH BIGGER THAN US.

DO YOU AGREE WITH MY PERCEPTION ON THAT? AND THE SECOND QUESTION IS, YOU KNOW, YOU SAID THAT YOU GUYS ARE STANDING SHOULDER TO SHOULDER WITH US.

FROM AN UTILITY PERSPECTIVE, DO YOU HAVE ANY RECOMMENDATIONS ON THINGS WE CAN TO DO ENCOURAGE GROWTH WITHIN THE CITY OF FORT

PIERCE? >> SO KIND OF GO TO THE LAST PART OF YOUR QUESTION. YOU KNOW, WE HAVE DONE A LOT OF GREAT WORK WITH FPUA STAFF AND THE EDC IN OUR EXISTING COMPANIES. WHEN YOU LOOK AT FPUA, THERE ARE FACILITIES THAT MAY NOT BE IN THE PROPER CITY LIMITS OF FORT PIERCE; HOWEVER, JOBS DON'T STOP AT THE CORPORATE LIMITS OR COUNTY LINE. FOR EXAMPLE, WE HAVE BEEN INVOLVED WITH MAVERICK BOAT GROUP AND PURSUED AN A-1 TRUST.

THOSE COMPANIES MAY NOT BE IN THE CORPORATE LIMITS OF THE CITY OF FORT PIERCE, BUT -- BUT THEY -- YOU ARE PROVIDING UTILITIES TO THEM. SO OBVIOUSLY ON THE EXPANSION SIDE. THAT IS REAL CRITICAL TO MAKE SURE IF IT IS ELECTRICAL, WA WATER, SEWER, EVEN TELL COM, THAT IS IMPORTANT. -- TELECOM, THAT IS IMPORTANT.

FOR EXAMPLE, SOMETIMES WE TALK TO THE EXECUTIVE TEAMS OF THESE COMPANIES, AND THEY MAY HAVE ISSUES WHETHER IT IS CAPACITY, WHETHER IT IS ELECTRIC, WATER OR SEWER.

SO WE HAVE BEEN GOING IN THERE AND WORKING WITH THEM TO MAKE SURE WE ALLEVIATE THAT. KIND OF THE PART THINK THAT MENTIONED EARLIER ABOUT SOME OF THESE MAJOR CORRIDORS.

THOSE ARE THE AREAS FOR GROWTH. I AM OBVIOUSLY NOT A UTILITY EXPERT, BUT I WOULD THINK THAT THE MORE INDUSTRIAL AND LARGER COMMERCIAL USER ALSO HELP THE OVERALL RATEPAYERS AND PROFITABILITY OF THE UA. WORKING WITH THE BUSINESSES AND MEET THEIR NEEDS AND UTILITIES PLAY A FUTURE ROLE IN THE

DEVELOPMENT OF THE AREA. >> ARE YOU DOING ANYTHING TO -- WHAT IS THE COUNTIES -- DO YOU KNOW WHAT THE COUNTY'S

PROJECTION IS FOR THAT AREA? >> YES, MAYOR.

ST. LUCIE COUNTY HAS GONE THROUGH THE PROCESS AS WELL AS ST. LUCIE COUNTY PUBLIC SCHOOLS, THE BOARD, TO OFFER UP THE PROPERTY FOR SALE. NOT ALL THE PROPERTY, BUT ROUGHLY ABOUT 650 ACRES. SO THAT WOULD INCLUDE THE SCHOOL BOARD PROPERTY ON KINGS HIGHWAY AND THE PROPERTIES TO THE WEST. I THINK IT IS ABOUT 1600 ACRES ALL TOGETHER. SO RIGHT NOW, THERE IS A COMPANY BY THE NAME OF ASHLEY CAPITAL THAT WOULD LIKE TO SECURE THOSE 660 ACRES FROM THE SCHOOL BOARD INFORM ST. LUCIE COUNTY. RIGHT NOW THE COUNTY HAS BEEN WORKING WITH THE DEPARTMENT OF ENVIRONMENTAL PROTECTION AND DIVISION LAND MANAGEMENT AND WORKING WITH THE GOERNOR AND THE CABINET TO RELEASE THAT PROPERTY AND PUT IT UP FOR

[00:35:05]

IT. >>MAYOR HUDSON: KINGS HIGHWAY

IS VERY HOT. >> MAY BE ANNEXATION

OPPORTUNITIES. >>BARBARA BENNETT: YOU ARE SAYING THAT THE SCHOOL BOARD IS WILLING TO SELL THAT PROPERTY -- THEY WILL GIVE US THE PROPERTY ON KINGS HIGHWAY?

>> YES, MA'AM. I THINK THAT THE -- ORIGINALLY THE SCHOOL BOARD HAD THOUGHT OF DOING SOME TECHNICAL OR VO-TECH SCHOOL ON THEIR PROPERTIES AND THEY CHANGED THEIR PLANS AND THEY ARE VERY INTERESTED IN SELLING THAT PROPERTY AND MAKING IT INTO A BUSINESS CAMPUS.

>> ANY FOLLOW-UPS? I DO HAVE A COUPLE OF QUES QUESTIONS. I WILL WAIT UNTIL THE END, RIGHT. JUST TO BUILD ON BARBARA'S QUESTION A LITTLE BIT. WE WERE TALKING -- I LOVE THAT YOU ARE TALKING OF STRIVING TO TRAIN SOME OF OUR LOCALS TO BUILD AND BE ABLE TO TAKE OVER SOME OF THESE POSITIONS.

ARE YOU GUYS DOING ANYTHING IN THE WAY OF ADVERTISING FOR T THAT? OR -- WHAT ARE -- IT SOUNDS LIKE YOU HAVE SOME THINGS IN MOTION FOR TRAINING.

AND JUST I AM CURIOUS WHAT THAT LOOKS LIKE.

>> YES, MA'AM, GIVEN THE NUMBER OF JOBS THAT HAVE BEEN -- ARE IN THE PROCESS OF BEING CRE CREATED, IT WILL BE ALL HANDS ON DECK. WE HAVE TO WORK WITH EVERYONE.

OUR EDUCATION ON ACADEMIC, OUR TRAINING SERVICES, PROVIDERS, OTHER TRADE ASSOCIATIONS. REALLY -- REALLY A VERY PRONOUNCED SITUATION. SO ONE THING THAT WE ARE -- THAT WE ARE INVOLVED WITH ON A REGIONAL BASIS WITH THE RIVER STATE COLLEGE, ABOUT DOING A -- A REGIONAL WORKFORCE AWARENESS.

LIKE, HEY, WORK LOCAL. SO, YOU KNOW, BEING ABLE TO TELL INDIVIDUALS THAT WE HAVE GREAT JOBS HERE.

AND THAT, YOU KNOW, IF YOU ARE WILLING TO LOOK AT THE CAREER PATH, YOU CAN GET THE EDUCATION AND TRAINING THAT YOU NEED.

SO WE LOOK FORWARD TO LAUNCHING THIS WITH INDIAN RIVER STATE COLLEGE. ALSO WE ARE BUILDING WITHIN OUR OWN ORGANIZATION, A WORK LOCAL CAMPAIGN.

WE ARE WORKING WITH MAJOR EMPLOYERS TO MAKE SURE THAT THEY GET THE FOLKS IN THE DOOR AND ON THE SHOP FLOOR.

ALSO, WE ARE WORKING WITH PROJECT LIFT.

YOU MAY HAVE HEARD OF PROJECT LIFT WHERE THEY ARE DOING VOCATIONAL AND TECHNICAL TRAINING.

THEY ARE OUT OF PALM CITY, AND THEY HAVE OPERATIONS IN BELL GLADE AND RIVERA BEACH IN PALM BEACH COUNTY AND RENOVATING A FACILITY ON DELAWARE APPLICANT AVENUE TO DO THE SAME THING.

WE HAVE BEEN WORKING INDIVIDUALLY WITH DIRECTOR AND A 1 ROOF TRUSS AND THE BOAT MANUFACTURERS OF HOW TO HELP THESE COMPANIES WITH YOUNG PEOPLE THAT ARE LEARNING A SKILL OR A TRADE. WHAT IS VERY INTERESTING ABOUT THEIR APPROACH IS THAT THEY ALSO PROVIDE COUNSELING AND THERAPY TO MAKE SURE YOU HAVE A HOLISTIC APPROACH TO MAKING SURE THAT THESE YOUNG PEOPLE GET A GREAT START WITH A GREAT CAREER. SO, YEAH, WE ARE LOOKING AT ALL DIFFERENT WAYS BOTH FROM THE PUBLIC AND PRIVATE SECTOR, AGAIN, TO CREATE AN AWARENESS CAMPAIGN THAT THERE ARE GREAT JOBS AND HOW DO WE WORK WITH THE RIGHT PROFESSIONALS AND ASSOCIATIONS TO GET THOSE FOLKS OVER TO THE -- TO THE W

WORKPLACE. >>KRISTINA GIBBONS: RIGHT, FOR SURE. I ALSO THOUGHT IT WAS INTERESTING THAT THE POPULATION -- WE ARE EATING UP MORE THAN HALF OF THE TRI-COUNTY AREA. I MEAN -- I AM NOT LOOKING AT A MAP, BUT ARE WE TWICE THE SIZE --

>> YES. >>KRISTINA GIBBONS: OKAY.

>> YOU KNOW THE WHOLE AREA IS ABOUT 660,000.

AND WE MAKE UP 340,000. SO MORE FOLKS TO COME.

[00:40:04]

>>KRISTINA GIBBONS: RIGHT. FOR SURE.

I APPRECIATE YOU WORKING SO CLOSE WITH THE UA AS WELL.

I KNOW OFF GOOD RELATIONSHIP AND THE TEAM, SO I DEFINITELY

APPRECIATE THAT. >> THANKS FOR YOUR TIME.

I KNOW YOU HAVE A LOT OF OTHER BUSINESS, BUT I REALLY APPRECIATE THE OPPORTUNITY TO GET IN FRONT OF YOU AND, AGAIN, WE ARE VERY GRATEFUL FOR THE PARTNERSHIP AND THE INVESTMENT YOU HAVE WITH THE EDC. WE APPRECIATE MR. TOM PECK SERVING ON OUR COMMITTEE AND HE IS VERY PRODUCTIVE, CAPABLE AND HELPFUL IN HELPING US AND ADVISING US AND WE HAVE WE HAVE GREAT FOLKS IN A LEADERSHIP ROLL.

WILL MISS YOU MAN. >> WILL MISS YOU TOO, PETER.

>> THANK YOU FOR LIVING IN FORT PIERCE.

THE FIRST EDC DIRECTOR WHO DO THAT.

>> HOPEFULLY IT WON'T BE THE LAST.

>>KRISTINA GIBBONS: YOU WILL HAVE TO STAY FOR A LITTLE BIT.

[G.2. Increase the Purchased Gas Adjustment (PGA) $0.23 per ccf from -$0.03 per ccf to +$0.20 per ccf, effective November 1, 2021.]

>> THANK YOU. >>MAYOR HUDSON: THANK YOU.

>> THE NEXT ITEM REQUEST YOUR APPROVAL TO INCREASE THE PGA BY $.23 BY NOVEMBER 1 AND FRED GADDIS WILL MAKE THE PRESENTATION.

>> THANK YOU, MR. TOM PECK, MADAM VICE-CHAIR AND MEMBERS OF THE BOARD. I BRING YOU TO THE NATURAL GAS RATE STABILIZATION FUND FOR AUGUST 2021.

STAFF HAS RUN THE SENSITIVITY ANALYSIS THAT INCLUDES JULY ACTUALS AND PRELIMINARY DATA FOR AUGUST.

NATURAL GAS PRICES AT THE HENRY HUB HAVE BEEN ON THE RISE ST STARTING IN APRIL 2021. THE PRICE OVER THE LAST FEW MONTHS AVERAGE $3.72 A DECA. THE WEEK SENDING DECEMBER 3, 52 BCFS. WORK SOMETHING 16.8% BELOW Y YEAR-AGO LEVELS AND 7.4% BELOW THE FIVE-YEAR AVERAGE BRINGING TOTAL WORKING GAS INVENTORY TO 2923 PCFS.

>> INJECTION RATES AS HIGH DEMAND FOR GAS AND POWER BURN AND PIPELINE EXPERTS REMAIN NEAR RECORD LEVELS.

AUGUST CURVE REFLECTS THE INCREASE IN THE PGA WHICH WAS APPROVED BY THE BOARD ON AUGUST 17, 2021 FROM NEGATIVE $.10 A CCF TO NEGATIVE 10 CCF. SUPPLY VERSUS DEMAND, THE PRICE OF GAS IS UP $1.50 SINCE THE BEGINNING OF APRIL.

NOW BELOW THE RANGE AND PRO PROJECTED TO INCREASE THROUGHOUT 2021 AND 2022. BASED ON THE YOUR RENT STATUS, STAFF RECOMMENDS AN INCREASE IN THE PURCHASE GAS ADJUSTMENTS OF $.23 PER CCF FROM NEGATIVE $.03 TO POSITIVE $.20 PER CCF EFFECTIVE NOVEMBER 1, 2021. HAVE DONE A GREAT JOB KEEPING THE PGA AS A NEGATIVE NUMBER SINCE MARCH OF 2015.

THE CUSTOMER'S BILL OF 10, 20, 30 C CF.

THE DIFFERENCE IN THE BILL WOULD BE $2.31 MORE A MONTH.

STAFF RECOMMENDS THE INCREASE TO THE PGA.

THE PGA CAN REMAIN THE SAME IF THE BOARD DESIRES.

>>KRISTINA GIBBONS: ANY QUESTIONS?

>>MAYOR HUDSON: I HAVE A QUESTION.

HOW MANY RESIDENTIAL CUSTOMERS DO YOU HAVE?

>> WE HAVE ROUGHLY 4,000 RESIDENTIAL CUSTOMERS.MU

>>MAYOR HUDSON: THE REST ARE COMMERCIAL.

HOW MANY THAT? >> WE HAVE 900 RESIDENTIAL CUSTOMERS AND GROWING BECAUSE WE ARE GOING OUT TO AMAZON.

>>MAYOR HUDSON: THAT'S RIGHT. THAT'S RIGHT.

DO YOU SEE THIS HOLDING FOR THE FORESEEABLE FUTURE?

>> NO MA'AM. >>MAYOR HUDSON: YOU SEE IT

GETTING WORSE? >> WHEN WE GET TO THE PCA ITEM I HAVE A PRESENTATION ON NATURAL GAS PRICING.

FRED'S ANSWER IS CORRECT. THERE IS A POTENTIAL FOR IT

[00:45:02]

DOING WORSE. >>MAYOR HUDSON: IF YOU WATCH THE NEWS, IT IS NO SURPRISE. BUT I THOUGHT MAYBE YOU HAD

SOME MAGIC FORMULA. >> I WISH I DID.

>>KRISTINA GIBBONS: ANY FURTHER QUESTIONS?

>> YES. WE DO NOT APPROVE IN PURCHASE GAS ADJUSTMENT INCREASE, WHAT DOES THAT MEAN FOR THE UTILITY

INCH. >> EVENTUALLY THE -- WE WILL BE TAKING MONEY OUT OF OUR CASH RESERVES.

YOU KNOW WE TRY TO KEEP IT IN THE OPERATING RANGE AND BASED ON -- IT CAN GO BACK TO THAT CURVE, -- YOU CAN SEE WE ARE WELL OUT OF THE OPERATING RANGE AND WILL GET CONSIDERABLY WORSE. AT SOME POINT IN TIME, WE WILL BE -- WE WILL BE TAKING MONEY OUT OF OUR CASH RESERVES.

AND THE CASE OF -- THE CASE OF NATURAL GAS, THAT IS NOT TERRIBLE BECAUSE OF THE NUM NUMBERS, BUT WHEN WE TALK OF THE PCA IN A COUPLE OF MINUTES, THAT IS TERRIBLE.

BECAUSE THE NUMBERS ARE MUCH HIGHER.

>> AND THEN WE HAVE A CUSTOMER MONTHLY GAS BILL FOR 10 CCF, 20 CCF AND 30 CCF. WHAT IS OUR AVERAGE CUSTOMER?

>> 10 CCF. >> AFTER GUST HER WILL SEE

ABOUT A $2 INCREASE? >> YES.

GIBRALTAR GIBB I AM AFRAID IF WE DON'T DO IT NOW IT WILL MAKE EVERYTHING WORSE ALONG THE WAY. HERE WE ARE GETTING INTO

SEASON, IT IS TIME TO -- >>MAYOR HUDSON: WE HAVE A BUNCH OF THOSE DECISIONS TO MAKE.

THE FIRST OF MANY. >>KRISTINA GIBBONS: SHALL WE

ENTERTAIN A MOTION? >>MAYOR HUDSON: I MOVE

APPROVAL. >>BARBARA BENNETT: SECOND IT.

>>BARBARA BENNETT: YES, MA'AM. >> MR. LAMBERS: YES, MA'AM.

>>MAYOR HUDSON: YES, MA'AM. >>KRISTINA GIBBONS: YES, MA

[G.3. Status Report on Electric Power Cost Adjustment (PCA) for August 2021]

MA'AM. >> THE NEXT ITEM IS A STATUS REPORT ON THE PCA WITH A REQUEST FOR AN INCREASE.

WILL MAKE THE PRESENTATION, BUT WILL START OFF WITH A SHORT PRESENTATION TALKING ABOUT NATURAL GAS PRICES.

YOU KNOW, IT'S -- DIDN'T WANT TO JUST COME IN HERE AND SAY, WELL THE GAS PRICES ARE REAL HIGH SO GOT TO RAISE -- I WANTED TO GIVE YOU SOME BACKGROUND ON IT SO EVERYBODY UNDERSTANDS IT AS BEST THEY C CAN.

I AM NOT SURE I UNDERSTAND IT ALL THE TIME, BUT, YOU KNOW, LOOKING -- LOOKING -- AND MAJOR MENTIONED IT.

IT DOESN'T TAKE TOO MUCH FOR US ALL KNOW THAT GAS PRICES ARE GOING UP IF YOU GO TO THE GASOLINE PUMP, IT IS UP 33%.

AND SAME THING IS HAPPENING WITH NATURAL GAS AND OIL.

MOST OF THE PROBLEM IS THAT PRODUCTION IS NOT KEEPING UP WITH THE DEMAND. AND YOU CAN GO TO THE NEXT SLIDE. NATURAL GAS PRICES ARE UP $3.50 PER DECATHERM, AND THAT -- THAT IS THE INCREASE.

IF YOU RECALL A YEAR OR SO AGO, WHICH WERE PAYING THE $1780 AND $2 RANGE AND GONE UP $3.50 OF DECATHERM.

A MAJOR IMPACT ON FLORIDA'S ENERGY MIX BECAUSE MOST OF THE GENERATION IS COMING FROM NATURAL GAS BY THE INFORMATION FPA, GAS PRICES WILL IMPACT PER MEGAWATT HOUR IF YOU THINK ABOUT THAT A LITTLE BIT. IF WE ARE AT 104 FOR 1,000 K KILOWATT HOURS, THE POTENTIAL IS TO GO UP ALMOST 130.

NOW, OF COURSE, THE -- NOT THAT IT IS MUCH -- MAKING ANYBODY HAPPIER, BUT THAT IS NOT JUST A FPUA PROBLEM OR A FM PA OR A STATE -- THIS IS A GLOBAL ISSUE AND WE WILL TALK ABOUT THAT FOR A MINUTE IN A SECOND. THE LAST ONE ON THE SLIDE IS THE IMPORTANT ONE. WE ALWAYS EXPECT A SPIKE OF NATURAL CHARGES DURING THE WINTER AND IT DOESN'T WORRY US TOO MUCH BECAUSE WE USUALLY HAVE ENOUGH BUILT IN TO ABSORB THAT, BUT THE FUTURES -- THE FUTURE PRICING FOR NATURAL GAS IS NOT GOING DOWN SIGNIFICANTLY AFTER THE SEASON IS OVER.

AS A MATTER OF FACT -- AND A CURVE.

I WILL SHOW THAT -- THAT SHOWS THE -- BEING AT $4 PER DECATHERM AND THROUGH THE BALANCE OF THIS FISCAL YEAR.

[00:50:01]

AND YOU CAN SEE -- YOU KNOW, IT HAS BEEN GRADUALLY GOING UP UNTIL ABOUT SEPTEMBER 1. AND THAT IS WHEN THE MAJOR INCREASES STARTED. AND TO PUT THIS IN A LITTLE BIT OF PERSPECTIVE, ON THE NEXT SLIDE, YOU WILL SEE THE T TEN-YEAR PRICING. AND THIS IS A -- THE HIGHEST PRICE WE HAVE SEEN IN NATURAL GAS FOR THE LAST TEN YEARS AND WENT BACK FURTHER WHEN PRICES WERE $14, 16 A DECKATHERN.

HIGHLY CONCERNING SITUATION, BECAUSE WHAT BOTHERS ME THE MOST NOT A QUICK INCREASE BUT WILL BE AROUND FOR A WHILE.

NEXT SLIDE, BARBARA. THIS GIVES THE IDEA OF DEMAND IS THE DRIVER AND THIS IS NOT KEEPING UP.

WHAT YOU SEE HERE IS SOME SLIDES THAT I HAVE GONE ABLE TO GET FROM JACOB WILLIAMS AT FPUA THAT INCLUDE OTHER THINGS OTHER THAN NATURAL GAS. YOU CAN SEE THAT NATURAL GAS PRODUCTION HAS BEEN -- HAS BEEN FAIRLY FLAT OVER THE LAST SEVERAL YEARS. AND ON THE NEXT SLIDE.

INDEX TO JANUARY 2020. AND SHOW THE INCREASE OF OIL AND NATURAL GAS. YOU LOOK AT GASOLINE ABOUT 1 1.33. IF YOU THINK ABOUT IT, IT IS ABOUT 30% INCREASE YOU ARE PAYING AT THE PUMP.

NATURAL GAS AT THE 2.71 RANGE. AND THAT IS REALLY EXPENSIVE NATURAL GAS. NEXT SLIDE SHOWS ON THE RIGHT HAND SIDE THE PRODUCTION. THE PRODUCTION HAS BEEN LITERALLY FLAT SINCE 2019. 91, 92 BILLION CUBIC FEET A DAY AND THE PHENOMENON ON THE LEFT SIDE OF THE CHART WHICH IS A LOT OF THIS GAS IS BEING PUT IN LNG SHIPS AND SENT OVERSEAS.

ABOUT TEN BILLION CUBIC FEET, IT HAS ABOUT 18, 20 BILLION CUBIC FEET A DAY. WE SEE A LOT OF THE GAS GO OVERSEAS. THE REASON IS, NEXT SLIDE, ON THE LEFT-HAND SIDE YOU CAN SEE EXACTLY WHAT EUROPE AND CHINA IS WILLING TO PAY FOR A THAT. THOSE PRICES ARE $40 A DECA.

EXPECTED HERM THAT THEY ARE PAYING IN EUROPE.

A LOT OF THE LNG GASS ARE GOING OVERSEAS.

12% TO 14% OF OUR PRODUCTION. SO THAT -- THAT IS CREATING A LITTLE MORE -- LITTLE MORE PRESSURE TOLI

. >> NEXT WHAT I WANT TO PUT IN SPECIFIC RELOO LEAF FOR YOU IS WHAT HAPPENS WHEN THE GAS GETS THIS EXPENSIVE. I WENT BACK AND LOOKED AT THE FPUA BUDGETING AMOUNT. THEY PUT TOGETHER ANA BUDGET LIKE WE PUT TOGETHER A BUDGET. THEY BUDGET THE GAS AT ABOUT $3 PER DECKATHERM THAT WAS PRETTY FLAT THROUGHOUT THE FISCAL YEAR. THE BLACK LINE SHOWS YOU WHAT THE NYMEX FORECAST IS. AND YOU CAN SEE AT THE $4 LEVEL. THAT DIFFERENCE IN 1MAKES A DIFFERENCE IN THE ACTUAL COST OF GAS WHICH IS ON THE NEXT SLIDE. THIS IS, ONCE AGAIN, THE -- BUDGETING IS THE BLUE AND THE FORECAST IS THE -- IS THE RED.

AND THE DIFFERENCE BETWEEN THESE TWO CURVES IS $130 MILLION. THAT IS GOING TO LEAVE A MARK, FOLKS. NO WAY OF BEING ABLE TO ABSORB SOME KIND OF COSTS. THE LAST SLIDE IN THIS -- IT DOESN'T HAVE A WHOLE LOT OF DETAIL IN IT BECAUSE THERE IS NOT A WHOLE LOT OF MITIGATION OPTIONS THAT ARE AVAILABLE TO FMPA. BECAUSE THEY ARE OUR WHOLESALE PRODUCER. THEY ARE GOING TO BE SWITCHING SOME OF THE GENERATION FROM GAS TO COAL.

STANTON 1 AND 2 WILL BE RUNNING A LITTLE BIT MORE.

[00:55:01]

AND WHAT THEY DO IS GIVE YOU A DISCOUNT ON -- ON THE MONTH BASED ON WHAT THE COST IS THAT MONTH.

FOR INSTANCE, THEY MAY HAVE A PREPURCHASE DEAL WHERE THEY ARE GOING TO BUY SO MANY HUNDREDS OF THOUSANDS AND WE ARE TALKING MILLIONS OF DECATHERM FOR ENERGY, KING ISLAND AND OTHER UNITS. THEY WILL SAVE MAYBE $.40 OR $.50 PER DECATHERM AND THIS WILL BRING IN ABOUT AN ADDITIONAL $6 MILLION THE OTHER THING IS A RATE DETENTION ACCOUNT THAT THEY ARE STARTING TO USE BASED ON VERO BEACH AND TRYING TO REPLENISH THAT FOR EXTRA MONEY.

AND IF YOU LOOK AT THESE TH THINGS, 12 MILLION HERE, SIX MILLION HERE, IT WILL NOT MAKE THE 130 MILLION IN THE DIFFERENCE OF COST. SO THAT IS WHY -- THAT IS WHY WE WILL BE LOOKING AT RAISING THE PCA.

AND I THINK BARBARA CAN -- AND BARBARA IS GOING TO GO THROUGH HER NORMAL PRESENTATION AND I THINK THE MORE I THINK ABOUT IT A LITTLE BIT HOW WE DO IT AND THE WAY WE SET IT UP NOW AND ONE OF THE OPTIONS. I AM SORRY.

LET BARBARA GO AHEAD AND DO IT AND I DON'T WANT TO GET AHEAD

OF HER TOO MUCH. >> STEAL MY THUNDER.

>> THANK YOU FOR THAT SEGUE, MR. TOM BECK.

GOOD AFTERNOON BOARD MEMBERS. I WANT TO GIVE YOU A STATUS OF AUGUST AND THE 12-MONTH PROJECTION AS OF AUGUST NEXT YEAR. FPUA RECOVERS AS YOU KNOW THE COST OF OUR PURCHASE POWER THROUGH CUSTOMER BILLINGS.

POWER COSTS RECOVERED IN EXCESS OF OUR BASE COSTS ARE ACCUMULATED AND WHEN AVAILABLE ARE CREDITED BACK TO THE CUSTOMER THROUGH THE PCA AM AMENT.

THE COST OF POWER PURCHASE WAS BILLED AT A BLENDED RATE OF $ $71.82 FOR 1,000 KILOWATT HOURS.

AN INCREASE OF $3.52 FROM THE JULY BILLING.

FOR THE MONTH OF AUGUST, FPUA DISCOVERED A UNDERRECOVERY OF 772,577 REDUCING OUR OVERALL RECOVERY TO JUST UNDER $2 MILLION AS OF AUGUST 31. THIS CHART TRACKS THE MONTHLY CUMULATIVE BALANCE OF RECOVERY OF THE APPROVED POWER ADJUSTMENT LEVELS. LOOKING BACK WITH TWO YEARS WITH ACTUALS BACK TO AUGUST OF 2019, WITH PROJECTIONS FORWARD FOR 12 MONTHS THROUGH AUGUST OF 2022.

THE AMOUNT OF THE POWER COST ADJUSTMENTS IS REPRESENTED BY THE DARKER BLUE LINE FOR MONTH OF AUGUST WAS NEGATIVE $12 PER 1,000 KILOWATT HOURS. THE BARS ON THE TOP REPRESENT THE LEVELS OF THE OVERALL RECOVERY WITH THE BLUE BARS MEANING THE ACTUAL MONTHLY BALANCES AND THE ORANGE BAR IS PREDICTED WHAT THE OVERRECOVERY WOULD BE IF OUR FORECASTED NUMBERS ARE CORRECT. THESE PROJECTIONS HAVE BEEN REAPED BY FINANCIAL CONSULTANTS BUT BASED ON FORECASTS PREPARED BY FMPA. SINCE THE JULY'S FORECAST, FMPA'S COST OF PURCHASE POWER FOR THE UPCOMING 12 MONTHS HAVE INCREASED 16%. THIS GRAPH REPRESENTS COMPARISON OF POWER COST RECOVERY THROUGH AUGUST OF 2 2022. THE GRAPH CLEARLY SHOWS IN OUR SHORT TERM THAT OUR OCTOBER RESULTS PUT FPUA ABOVE THE ONE MILLION STATE STABILIZATION. AND WILL ERODE OUR CASH RESERVES AND WILL BE PROVIDING ELECTRIC SERVICE AT A LOSS.

[01:00:02]

THE GRAY LINE ON THE BOTTOM SHOWS NO CHANGE BEYOND OCTOBER, WITH THE PCA REMAINING AT NEGATIVE $6.

AND NO OTHER CHANGE. THE GREEN, RED AND ORANGE LINES REPRESENT OF A TRACK THAT SORT OF CHANGES -- OR INCREASE WILL BE INDICATED BY THAT P ON THE SIDE.

THE RED LINE WAS WITH THIS AGENDA WAS RECOMMENDED WITH THE BOARD PACKET OF A $6 INCREASE OF NOVEMBER AND PURSUING 12 MONTHS. AND THE GREEN LINE TAKES A BIGGER INCREMENT WITH $15 IN NOVEMBER AND NO CHANGE AFTER THAT. THE ORANGE LINE IS SIMILAR TO THE GREEN LINE, IT SKIPS IN BETWEEN.

DIFFERENT SCENARIOS, NOVEMBER, JANUARY, MARCH VERSUS THREE COSECUTIVE MONTHS. THIS GRAPH SHOWS THE MONTHLY FORECAST THAT HAS BEEN PREPARED BY FMPA FOR JULY, AUGUST AND SEPTEMBER OF THIS YEAR. EACH MONTH, FMPA UPDATES THEIR FORECAST WITH REVISED DAY THAT THAT WE, IN TURN, USE FOR OUR POWER COST PRESENTATION. YOU CAN SEE ON THE BOTTOM THAT JULY'S FORECAST, WHICH IS THE BLUE LINE, FOR OCTOBER -- BACK IN JULY THEY THOUGHT THAT THE OCTOBER COST WOULD BE $74.09 AND WHEN THEY UPDATED AUGUST WHICH THEY USE FOR THE PRESENTATION NOW $87.9 6. NOW WE HAVE AVAILABLE WHICH IS NOT INCLUDED IN THIS PRESENTATION WE HAVE THE INFORMATION SEPTEMBER'S FORECAST IS NOW $96.50.

THEY ARE SAYING FOR OCTOBER AND SEPTEMBER.

SO YOU CAN SEE THE GOING OUT TO FEBRUARY, THE STEADY INCREASE THAT THESE FORECASTS HAVE CHANGED EACH MONDAY GOING UP.

THE ANNUAL AVERAGE PROJECTED COST FOR FISCAL YEAR '22 HAVE INCREASED FROM JULY TO SEPTEMBER BY 24.6% BRINGING THE ESTIMATED COST OF OUR PURCHASE POWER FOR NEXT FISCAL YEAR TO $55 MILLION. $55.1 -- ESTIMATED BASED ON PROJECTIONS NOW. SOME OF THAT RULE HAS TO DO WITH GROWTH AND INCREASED SA SALES, BUT THE MAJORITY OF THIS IS THIS INCREASE IN COST. IT IS THE RECOMMENDATION OF STAFF TO INCREASE THE POWER COST ADJUSTMENTS CURRENTLY BY $6 EFFECTIVE NOVEMBER 1 THAT WOULD BRING THE PCA TO ZERO.

OR A BOARD'S DECISION ANOTHER AMOUNT OF THE INCREASE WITH CONSTANT EVALUATION OF THESE CHANGING -- CHANGES IN FORECAST, I WOULD LIKE TO SEEK YOUR APPROVAL FOR AN INCREASE

IN THE PCA. >> I THINK THE CRITICAL ISSUE HERE IS IF WE RAISE THE PCA BY $6 NOW, I CAN ALMOST GUARANTEE TO RAISE IT $6 IN DECEMBER AND $6 IN JANUARY.

THAT IS WHAT THE FORECAST SHOWS US.

WHEN WE DID THE GAS ONE, THE WAY THEY DID IT.

EASIER TO DO IT WITH GAS BECAUSE THE NUMBERS ARE SO MUCH SMALLER. THEY PULL THE SCAB OFF AT ONCE SO WE ONLY HURT ONE. WE CAN -- WE CAN DO PART OF THAT BY RAISING THE RATE $15 RIGHT NOW.

BUT I KNOW THAT, YOU KNOW, THAT MAY NOT BE WHAT YOU FOLKS WANT TO DO. YOU WOULD RATHER GO TO THE $6.

AND SEE WHAT HAPPENS. THERE IS ALSO A POTENTIAL BASED ON THE NUMBERS WE NOW HAVE THAT THAT $6 MAY BE $9 NEXT MONTH.

SO IT IS REALLY UP TO THE BOARD WHICH WAY YOU WOULD LIKE US TO

PROCEED. >>MAYOR HUDSON: I HAVE A QUESTION. DOES FMPA OR FPA, ARE YOU THINKING OF WAYS TO COMMUNICATE THIS TO THE CUSTOMER IN TERMS OF -- BECAUSE THIS IS -- JUST SOME WAYS TO -- TO MAKE SURE THEY UNDERSTAND THE REASON WHY AND OR KEEP THE POWER COST -- A RENEWED EFFORT. I KNOW WE ARE DOING THAT ALL THE TIME, BUT SOME KIND OF RENEWED EFFORT.

>> WE ACTUALLY HAVEN'T THOUGHT ABOUT THAT.

WE COULD MAYBE DO A BILL ST STUFFER WITH THE NEXT ROUND OF BILLS OR PUT PART OF IT IN A BILL STUFFER TO EXPLAIN THIS A LITTLE BIT. IT'S -- LIKE I SAID, IT IS NOT A FPUA ISSUE NECESSARILY, BUT THEY ARE GOING TO HURT LIKE

EVERYBODY ELSE. >> SOME KIND OF MARKETING CAP

PAIN WOULD BE GREAT. >>MAYOR HUDSON: ACKNOWLEDGING THAT EVERYBODY IS FEELING THE PAIN.

FLORIDA POWER AND LIGHT AND OTHER COMPANIES WILL BE

[01:05:03]

EXPERIENCING SAME THING? >> ABSOLUTELY.

>>MAYOR HUDSON: WE ARE NOT ALONE.

>> WE ARE NOT ALONE. >>BARBARA BENNETT: I HAVE A QUESTION. I KNOW YOU SAID YOU COULD ADVERTISE TO THE PUBLIC BY STUFFING THE NEXT BILLING.

IS THERE ANY OTHER WAY THAT WE CAN GET IT OUT, BECAUSE MANY PEOPLE WHEN THEY GET THEIR BILL, THEY PULL THE BILL OUT AND THEY DON'T LOOK AT THE EXTRA PAPERS THAT ARE IN THERE.

THEY JUST WANT TO SEE THE BOTTOM LINE.

AND WE NEED TO ADVERTISE TO LET THEM KNOW THAT THIS IS GOING TO TAKE PLACE. BECAUSE THAT WILL KEEP DOWN SOME OF THE PROBLEMS THAT WE ARE HAVING WHEN WE SEE THE RATE INCREASE IN THE BILL. THEY WILL KNOW.

SO WHAT OTHER MARKETING -- WHAT OTHER WAYS OF MARKETING YOU ARE GOING TO DO TO GET THE WORD OUT FOR THE PUBLIC?

>> WELL, I AM HURT THAT PEOPLE AREN'T READING OUR BILL STUFFERS. [LAUGHTER]

>> THERE ARE OTHER AVENUES AND MAKE POSTS ON FACEBOOK AND PUT INFORMATION ON OUR WEB SITE. I DON'T KNOW, WE CAN ALSO LOOK AT SOME OTHER ITEMS. I HAVEN'T THOUGHT OF ANYTHING OTHER THAN THAT, BUT WE CAN CERTAINLY GO BACK AND REVIEW THAT AND SEE IF THERE ARE SOME OTHER WAYS FOR THE CUSTOMER TO

UNDERSTAND WHAT WE ARE DOING. >> I THINK A TEXT BLAST MAY BE

HELPFUL. >>MAYOR HUDSON: A SHORT VIDEO OF SOMEBODY IN A REAL SIMPLE LANGUAGE SAYING -- EXPLAINING.

BECAUSE IF ANYBODY IS WATCHING THE NEWS, THAT THIS SHOULD NOT B A SURPRISE, BUT IT IS STILL A SURPRISE.

>> WE WILL TAKE A LOOK AT THOSE AND GET BACK WITH YOU TO LET

PEOPLE KNOW WHAT WE ARE DOING. >>MAYOR HUDSON: WILL ALSO FOR PEOPLE TO REDUCE THEIR USAGE AND BE CONSCIOUS OF IT.XW

>>KRISTINA GIBBONS: POWER RECEIVING TECHNIQUES, YEAH.

I THINK THAT WILL BE HELPFUL AS WELL.

GO AHEAD. >> AT THE CURRENT LEVEL THAT WE HAD SINCE JANUARY, WE HAVE HAD TWO MONTHS OF 22,000 AND.

[INAUDIBLE] -- THE OTHER MONTH FOR LOSSES.

THE TOTAL LOSS 1,736,000. YOU CAN SEE THE FEE SCHEDULE WE SET THROUGHOUT THE YEAR, WE HAVE LOST A MILLION SEVEN BEFORE WE HAVE THIS TERRIBLE ISSUE TODAY.

>> YEAH, I THINK THAT IS A GOOD POINT.

AS A MATTER OF FACT, THE PCA HAS BEEN NEGATIVE FOR -- ALMOST FOUR YEARS. AND DURING THAT TIME, WE HAVE GIVEN BACK ABOUT -- ALMOST $3 MILLION.

IT DOESN'T HELP THEIR NEXT BILL, BUT WE HAVE -- WE HAVE GIVEN BACK QUITE A BIT OF MONEY OVER THE LAST FOUR YEARS.

>>MAYOR HUDSON: MIGHT BE HELPFUL TO REMIND PEOPLE THAT

WHEN WE COULD, WE DID. >> I ABSOLUTELY AGREE.

WE NEED TO FIND A ANOTHER WAY TO COMMUNICATE THAN THE BILL STUFFER. THAT IS NOT ENOUGH WHEN YOU THINK OF ALMOST 25% INCREASE TO THE 1,000 KILOWATT-HOUR BILL.

AND THEN LETTING OUR CUSTOMERS KNOW THAT THIS IS NOT -- WE ARE NOT TAKING THIS LIGHTLY, YOU KNOW.

LIKE YOU SAID, MR. TOM PECK. THE PCA HAS BEEN NEGATIVE.

WHEN WE CAN, WE DO ANYTHING TO MAKE SURE THAT THE CUSTOMERS' BILL STAYS LOW AND RIGHT NOW NOT AN AVAILABLE OPTION FOR US.

>>KRISTINA GIBBONS: I AM A LITTLE CONCERNED TO DO THE $6, $6. I DON'T KNOW THAT $15 MAYBE ISN'T NECESSARY, BUT I PREFER IF WE COULD TO STABILIZE IT A LITTLE BIT. I AM CONCERNED WITH EVERY MONTH THERE IS ANOTHER INCREASE, ANOTHER INCREASE.

AND THEN -- WHAT THAT LOOKS LIKE TOO.

AND THEY CAN'T ACTUALLY GET COMFORTABLE WITH WHERE THE RATES ARE. NOT THAT I AM SAYING WE SHOULD PULL THE TRIGGER AND GO UP $20. BUT I THINK I WOULD LIKE TO HAVE THAT DISCUSSION WITH YOU GUYS AND SEE WHAT YOU THINK

ABOUT WHICH WAY TO GO. >>MAYOR HUDSON: WOULD YOU GO

TO $12? >>KRISTINA GIBBONS: I THINK

$12 WOULD BE GOOD. >> WELL, I WOULD GO A LITTLE BIT IN THE OPPOSITE DIRECTION TO ECHO WHERE MY PREDECESSOR USED TO SAY. I AM A BIGGER FAN OF RAISING THE PCA IN THE COOLER MONTHS WHEN THE BILLS ARE NOT AS HIGH.

SO IF WE CAN LIMIT THE AMOUNT THAT WE RAISE THE PCA NOW WHEN

[01:10:01]

>>KRISTINA GIBBONS: DO THE $6 AND SAY THE NEXT MONTH WILL BE $12, AND THEN WE ARE SET UP. I AM CONCERNED OF DIPPING TOO FAR IN THE NEGATIVE AND WE ONLY HAVE A NUMBER FOR SEPTEMBER RIGHT NO YOU AND ABOUT TO BE ROLLING UP IN NOVEMBER.

>> THAT WAS GOING TO BE ONE OF MY COMMENTS TO SEE THESE LINES.

I KNOW A LOW NUMBER AND THE LIKELIHOOD WE WOULD APPROVE IT.

ONE OF THESE LINES STAY IN BETWEEN THE -- NOSE TWO LIGHT-BLUE DOTTED LINES TO KEEP THE RATE STABILIZATION FUND.

SO JUST FOR IN THE FUTURE, REALLY SHOW US, YOU KNOW, WHICH OF THESE RECOMMENDATIONS WOULD HAVE KEPT US IN BETWEEN THOSE

TWO LIGHT BLUE LINES. >>MAYOR HUDSON: GOOD POINT.

WHAT WOULD YOU GUESS IT WOULD BE?

JUST PICK A NUMBER. >> 20.

>> THAT LOOKS ABOUT RIGHT. $15 IN NOVEMBER, YOU KNOW, JANUARY AND FEBRUARY. BELOW THAT RATE STABILIZATION THAN $20 WILL KEEP NEWS BETWEEN THOSE TWO LINES.

>>MAYOR HUDSON: WHEN IT DIPS, IT WILL DIP FAST.

THE INTEGRAL IN BETWEEN MAKING CHANGES.

IF IT IS DIPPING, IT WILL DIP SIGNIFICANTLY IN A SHORT PERIOD OF TIME. HURD H.U.D. SO THIS WILL TAKE

PLACE IN NOVEMBER? >> NOVEMBER 1.

>>MAYOR HUDSON: ANY CHANGE -- THE NEXT CHANGE WILL TAKE PLACE DECEMBER 1 IF WE APPROVE IT. IS THAT RIGHT? THAT WILL DEFINITELY BE IN THE COOLER MONTH.

>>BARBARA BENNETT: WELL, WE ARE LOOKING AT $6 NOW.

$12 IN DECEMBER. AND THEN --

>> I THINK SHE WAS TALKING OF DOING MORE THAN $6 RIGHT NOW.

DOING MORE THAN $6 RIGHT NOW. >>KRISTINA GIBBONS: KEEP IT A LITTLE BIT LOWER. WE ARE DEBATING BOTH SCENARIOS.

>> JUST TO MAKE IT CLEAR. YOU ARE ONLY APPROVING ONE MONTH. YOU ARE NOT APPROVING THIS WHOLE $6, $6 AND $6. JUST THE FIRST.

>>MAYOR HUDSON: IT WILL COME BACK TO US.

>> THIS COULD CHANGE EITHER WAY VERY QUICKLY.

>>KRISTINA GIBBONS: I FEEL LIKE WE ARE FAIRLY CONSERVATIVE IN OUR OCTOBER RAISE BECAUSE WE WANTED TO WAIT AND SEE WHAT

HAPPENED. >>MAYOR HUDSON: THEY WILL SEE

THE SEPTEMBER NUMBERS AS WELL. >> YEAH, RIGHT.

>>BARBARA BENNETT: WE WILL HAVE MORE OF THE KNORR NORTHERNERS THAT HAVE COME DOWN.

THEY MAY BE ABLE TO HELP OUT WITH THE COSTS AS WELL.

>>MAYOR HUDSON: MR. LAMMERS. WHAT ARE YOU THINKING ABOUT FOR

THIS MONTH, FOR THIS RAISE? >> THIS IS A TOUGH SITUATION MY FIRST MEETING AND ASK ME TO RAISE -- RAISE OUR MILLS.

>>MAYOR HUDSON: YOU ARE IN THE DEEP END.

>> I WOULD BE INCLINED TO GO WITH STAFF'S RECOMMENDATION THAT WE DO $6 INCREASE TO THE PCA NOW.

AND THAT WITH THE UNDERSTANDING THAT ACCORDING TO THE PROJECTIONS WE WILL HAVE TO MAKE FURTHER INCREASES IN THE FUTURE. I AM NOT A BIG FAN OF DOING ALL THE INCREASES NOW FOR TWO REASONS.

LIKE WE TALKED ABOUT, I WOULD RATHER HAVE THE PCA INCREASES IN THE COOLER MONTHS WHERE THE BILLS ARE NATURALLY LOWER ANYWAY. AND WE WILL HAVE MORE INFORMATION AS FAR AS WHAT THE GAS PRICE ALSO DO THEN.

-- PRICES WILL DO THEN. >>KRISTINA GIBBONS: WHAT DO

YOU LADIES THINK? >>MAYOR HUDSON: I AM GOOD WITH THAT. WE HAVE TO FACE SOMETHING IN DECEMBER. WE KNOW IT.

WE MAY HAVE TO FACE SOMETHING BIGGER IN DECEMBER.

WE DON'T KNOW. THAT WILL BE A COOLER MONTH.

AND RIGHT NOW WE CAN -- >>KRISTINA GIBBONS: I WOULD LIKE TO COUPLE THIS WITH A HEAVY MARKETING CAMPAIGN.

MORE IN A POSITIVE LIGHT. NOT, HEY, YOUR RATES ARE GOING TO GO UP. WE WILL HAVE TO BE VERY SAVVY WITH HOW WE WORD IT AND DESCRIBE IT AND EXPLAIN WHAT IS

GOING ON. >>BARBARA BENNETT: ALSO, I WOULD LIKE TO KNOW WHEN WE WILL START MARKETING THIS.

[01:15:01]

>>KRISTINA GIBBONS: I WOULD HOPE SOONER RATHER THAN LATE ERR TO HAPPEN IN THE NEXT WEEKS OR SO AND NOT IN NOVEMBER.

>>KRISTINA GIBBONS: SO WE HAVE A MOTION.

>> I MOVE TO APPROVE IT. >>KRISTINA GIBBONS: YOU HAVE TO MAKE A MOTION. WE MOVE TO FOLLOW STAFF RECOMMENDATION TO RAISE THE PC A TOOK $6.

>> I MOVE TO APPROVE THE STAFF'S RECOMMENDATION TO INCREASE THE POWER COST ADJUSTMENT $6 PER 1,000 KILOWATT HOURS FROM NEGATIVE $6 TO ZERO PER 1,000 KILOWATT

HOURS. >> I'LL SECOND IT.

>>BARBARA BENNETT: YES, MA'AM. >> YES, MA'AM.

>>MAYOR HUDSON: YES, MA'AM. >>KRISTINA GIBBONS: YES, MA'AM. IF IT MAKES YOU FEEL ANY BETTER I HAD TO RAISE THE PCA MY FIRST MEETING AND IT WASN'T THAT BAD AND I HAD THE EDC PRESENTATION. IT IS LIKE A MIRROR.

[G.4. August 2021 Financial Operating Results – For Information Only]

>> THE NEXT ITEM IS THE AUGUST 2021 FINANCIAL OPERATING RESULTS. BARBARA MIKE WILL MAKE THE

INFORMATION-ONLY PRESENTATION. >> OKAY.

THANK YOU. I WOULD LIKE TO PRESENT -- MOVE ON TO THE OPERATING RESULTS FOR THE MONTH OF AUGUST AND THE YEAR TO DATE ENDING AUGUST 31, 2021.

THE FINANCIAL HIGHLIGHTS FOR THE 11 MONTHS TO DATE FOR FISCAL YEAR 2021. OUR YEAR-TO-DATE OPERATING REVENUES THROUGH AUGUST WERE $94.5 MILLION.

WHICH WAS AN INCREASE OF 3.1 MILLION OVER THE SAME 11-MONTH PERIOD FROM 2020. WE EXPERIENCED INCREASES IN UNIT SALES FOR ELECTRIC, GAS AND WATER OPERATING SYSTEMS. AND INCREASES IN THE AMOUNT OF WASTEWATER UNITS BILLED FOR THE MONTH OF AUGUST WHICH PRODUCED AN ADDITIONAL $3 THE,000 TO THE -- $379,000 TO THE OPERATING RATE FOR SALES IN AUGUST.

OUR OPERATING EXPENSES INCREASED AS WELL IN COMPASSION TO THE FIRST 11 MONTHS OF FISCAL YEAR 2021 BY 3.3 MILLION. PRIMARILY DUE TO INCREASES IN PURCHASES TO SALE, DEPRECIATION EXPENSE AND MAINTENANCE CONTRACTS. OUR CAPITAL CONTRIBUTIONS FOR THE FIRST TEN MONTHS OF 2021 WERE GREATER OF THE PRIOR YEAR BY 2.6 MILLION WHICH WAS A A 50,000 INCREASE FOR THE MONTH OF AUGUST FROM THE PREVIOUS YEAR TO DATE IN JULY.

PAID IN APRIL AFTER ADJUSTING TO THE ONE-MONTH OF EXPENSE FOR DEPARTMENT ARE SHOWING OUR YEAR TO DATE INCREASE IN THAT POSITION IS 6.6 MILLION YEAR TO DATE.

OPERATING REVENUES AND POWER COST AND CONSUMPTION.

THE THREE-YEAR COMPARISON OF THE YEAR TO DATE REVENUES ADJUSTED FOR THE PURCHASE COST OF THE POWER IN RELATION TO OUR CONSUMPTION. FISCAL YEAR 2020, CONSUMPTION WAS FLAT COMPARED TO 2019 WITH THE ADJUSTED REVENUE TIPPING BY 2% IN 2020. IN THE CURRENT YEAR, THE RATE WAS GREATER COMPARED TO THE SAME PERIOD OF LAST YEAR.

ADJUSTED REVENUES WERE UP 3% AND THE CORRESPONDING CONSUMPTION BY 2% THAT WAS MOSTLY GENERAL SERVICE SALES.

WHO THE COST OF PURCHASE POWER WAS A 1.8 MILLION SAVINGS OVER FISCAL YEAR '19, THE COST OF ELECTRIC PURCHASES FOR THE CURRENT YEAR TO DATE THROUGH AUGUST WAS UP SLIGHTLY HIGHER, $347,000 COMPARED TO THE SAME 11-MONTH PERIOD LAST YEAR.

OUR OPERATING REVENUES AND CONSUMPTION FISCAL YEAR 2020 WATER SERVICES BILL AND OPERATING REVENUES WERE UP NICELY FROM FISCAL YEAR '19 WITH STEADY INCREASES IN BOTH SALES AND REVENUES. UNIT SALES WERE UP BY 5%.

REVENUE UP BY 7%. THE FISCAL YEAR 2021 YEAR TO DATE SERVICES BILLED AND OPERATING REVENUES CONTINUE TO TREND UP WITH CONSUMPTION HIGHER YET BY 4% AND OPERATING REVENUES UP AN ADDITIONAL 5% WHEN COMPARED TO FISCAL YEAR 2020. INCREASES WERE MOSTLY IN THE ARA OF GENERAL SERVICES AND SERVICE -- GENERAL SERVICE SALES. WASTEWATER -- OPERATING REV

[01:20:06]

FISCAL 2020 WASTEWATER REVENUES WERE 5% LOWER THAN THE PRIOR YEAR. AND THAT WAS DUE TO THE Y YEAR-TO-DATE CAPACITY REDU REDUCTIONS TAKEN IN 2019.

EXCLUDING THOSE IN 2019, THE OPERATING REVENUE WOULD HAVE BEEN FLAT IN 2020 COMPARED TO '19.

CURRENT YEAR WASTEWATER 6% WITH OPERATING REVENUES GREATER IN ITS COMPARISON BY 627,000 WHICH IS A 5% INCREASE OVER LAST YEAR AND MOSTLY -- MOSTLY GENERAL SERVICE SALES FOR THE REASON OF THAT INCREASE. NATURAL OPERATING REVENUES, LESS THAT COST OF GAS AND COMPARED TO OUR CONSUMPTION.

FISCAL YEAR 2020 NATURAL OPERATING REVENUES FOR THE GAS PURCHASE ALONG WITH THE CONSUMPTION WITH THE 11 MONTHS WAS FLAT IN COMPARISON FOR FISCAL YEAR '19.

BUT IN THE CURRENT YEAR, THE 2020 REVENUES AND CONSUMPTION RULES OVER THE PRIOR YEAR ADJUSTED REVENUES WERE GREATER BY 6% WITH THE YEAR-TO-DATE CONSUMPTION HIGHER BY 8%.

THE INCREASE IN GENERAL SERVICE SALES ACCOUNTS FOR 32% OF THE TOTAL YEAR-OVER-YEAR INCREASE IN OUR ASSISTANCE FOR GENERAL SERVICE SALES THE CAST OF GAS PURCHASES EXPERIENCE A 9% SAVINGS IN THE COST TO PURCHASE GAS IN 2020 OVER THE PREVIOUS YEAR IN '19. GAS COST PURCHASES FOR THE FIRST 11 MONTHS OF THIS YEAR HAVE CREPT BACK UP WITH AN INCREASE OF $522,000 OR 17% OVER LAST YEAR FOR GAS COSTS.

OUR OPERATING INCOME AND OUR DEBT SERVICE.

OUR DEBT SERVICE COVERAGE RATIO IS THE RATIO OF OUR 12-MONTH ROLLING AVERAGE OF NET AVAILABLE OPERATING INCOME IN RELATION TO OUR DEBT SERVICE. FOR THE 12 MONTHS ENDING AUGUST 2021, THE DEBT SERVICE RATIO 3.32 TIMES.

AND THE RATIO FOR THE 12 MONTHS ENDED SEPTEMBER 2020 IS 3.16.

OUR BOND CONVENANCE REQUIRED, 1725.

AND WE ARE WELL WITHIN -- 1.25. WE ARE WELL WITHIN OUR COMPLIANCE OF THE DEBT SERVICE. THIS ITEM WAS FOR YOUR INFORMATION ONLY; HOWEVER, I WILL ADDRESS ANY QUESTIONS THAT

YOU MAY HAVE. >>KRISTINA GIBBONS: ANYBODY HAVE ANY QUESTIONS? THANK YOU.

[G.5. Bill Comparisons for the Month of August 2021 – For Information Only]

>> THE NEXT ITEM ARE THE BILL COMPARISONS FOR THE MONTH OF AUGUST 2021 AND MICHELLE HARRIS WILL MAKE THIS INFORMATION

PRESENTATION. >> THANK YOU.

MADAM CHAIR, BOARD MEMBERS AND WELCOME MR. LAMMERS.

I AM SHOWING THE FLORIDA ELECTRIC RATES PUBLISHED UNDER THE TREASURE COAST BILLS FOR AUGUST.

THIS FIRST GRAPH SHOWS A COMPARISON OF RESIDENTIAL ELECTRIC WAIT FOR 1,000 KILOWATT FOR THE 13 UTILITIES AS MEMBERS OF THE REQUIREMENT PROJECT.

THEY ARE DISPLAYED AND RANKED BASED ON BILL.

OUR AUGUST OF $104.80 SHOWN WITH THE YELLOW BAR RANKS WITH THE LOWEST RATE OF THE GROUP. I THINK WE SHOULD CELEBRATE

WHILE WE CAN. >> I THINK IT'S.

I UNDERSTAND WHAT YOU ARE THINKING ABOUT RATES MAY BE DIFFERENCE, BUT EVEN THOUGH THEY MAY BE DIFFERENCE THAT WE ARE ON THE LEFT HAND SIDE OF THE GRAPHS.

>> BECAUSE THEY WILL BE FACING THE SAME THING WE ARE.

>> THE SAME LEVEL OF CONSUMPTION OF ALL UTILITIES IN THE STATE. OUR AUGUST BILL, AGAIN, $10 $104.85. THE FIFTH LOWEST IN COMPARISON OF THE 31 MUNICIPALITY UTILITIES.

JUST LIKE MR. TOM PEC K SAYS ARE HOPEFULLY EVERYBODY ELSE MOVES IN THE SAME DIRECTION.IN AUGUST WHILE WE MAINTAINED OUR RATES THE OVERALL IMPACTS OF THE RATE ADJUSTMENTS $.50 OF A AVERAGE

[01:25:01]

THIS GRAPH PRESENTS A SIMILAR COMPARISON BUT FOR CONSUMPTION OF 2500 KILOWATT HOURS. THE BILL AT $264.80 RANKS US NINTH LOWEST AMONG THE GROUPS. OUR RATES FOR 1,000 AND 2500 KILOWATT FALL BELOW THE ARPA, THE ADMINISTRATOR AVERAGE.

THE TABLE DISPLAYS THE UTILITY BILLS.

UTILITY BILL FOR ALL THREE SERVICES PROVIDED INSIDE THE CITY LIMITS IS SHOWN IN THE FIRST COLUMN IN BLUE.

ALL THE OTHER HAVE ELECTRIC SERVICES BY FPL.

AND WATER AND WASTEWATER FACILITIES.

AND THE BILLS FOR AVERAGE CONSUMPTION FOR ELECTRIC, WATER AND WASTEWATER SERVICES FOR RESIDENTIAL CUSTOMERS.

NO RATE CHANGES TO THE AUGUST BILL SINCE THE JULY ONE WAS

. >> THIS IS FOR INFORMATION ONLY AND GLAD TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

>>KRISTINA GIBBONS: ANYBODY HAVE ANY QUESTIONS? THANK YOU. THE ONLY GOOD NEWS OF THE DAY, I GUESS. WE WILL TAKE IT.

[G.6. Approve the Avenue B Utility Replacement Project and associated Post Budgeted Project/Budget Request in the amount of $534,000.]

>>MAYOR HUDSON: FOR A LONG TIME.

>> THE UTILITY PROJECT BETWEEN 8TH AND 13TH STREET.

AND LUGY DAWSON WILL MAKE THE PRESENTATION.

>> THANK YOU MR. TOMPEC K AND MEMBERS OF THE BOARD.

HERE TO PRESENT THE AVENUE B UTILITY PROJECT.

WATER, WASTEWATER AND ENGINEERING BUDGETS $600,000 TO REPLACE WATER AND SEWER MAINS THAT HAVE REACHED THE END OF THEIR USEFUL LIFE, WITHIN THE LIMITS OF THE CITY OF FORT PIERCE. FC '22 AVENUE B FROM NORTH 8 TOTS NORTH 13TH STREET. AND THE WATER AND SEWER WITHIN THESE LIMITS ARE IN NEED OF REPLACEMENT.

THE PROJECT INCLUDES 900 FEET FOR WATER SERVICES, FIRE HYDRANTS, AND THE CONNECTION TO THE SIDE STREETS ALLOWING THIS CORRIDOR. THE PROJECT ALSO INCLUDES THE REPLACEMENT OF GRAVITY SEWER MANHOLES AND INSTALLATION OF WATER -- SORRY SEWER LATERALS. THEREFORE, STAFF RECOMMENDS THE APPROVING OF THE B UTILITY REPLACEMENT PROJECT.

FUNDING IS AVAILABLE IN THE WATER, WASTEWATER, ENGINEERING FY '22 CAPITAL BUDGET UNDER CITY ROADWAY PROJECTS.

THE. FUNDING OF 250,000 FOR WATER AND $283,000 FOR WASTEWATER IS REQUIRED TO FUND THE DESIGN, PERMITTING, INSPECTION AND CONSTRUCTION OF THIS PROJECT.

FPUA'S CONTRACTOR HAS FUNDS AVAILABLE ON THE EXISTING PURCHASE ORDER WHICH CAN BE TRANSFERRED TO THIS PROJECT.

THE USE OF MASDECK NORTH AMERICA MOST EFFECTIVE FOR THE ADJUSTMENTS NEST NECESSARY FOR THE SYSTEM IN THE AREA.

WITH THAT, I WILL BE HOPE THAT ANSWER ANY QUESTIONS THAT YOU

MAY HAVE. >>KRISTINA GIBBONS: ANY

QUESTIONS OR ANYONE -- >>BARBARA BENNETT: YES.

HOW MUCH WILL THE RATEPAYERS PAY ON THIS PROJECT?

>> THIS PROJECT WOULD ALL BE FUNDED BY RATEPAYERS.

THIS IS A REHAB PROJECT. >>KRISTINA GIBBONS: THEY HAVE THE MONEY SETTING ASIDE. THEY HAVE $600,000 EVERY YEAR ANNUALLY THAT THEY ACCRUE FOR THESE TYPES OF UPDATES.

AND SO THIS IS ALREADY SET ASIDE BASED OBJECT THE RATES

THAT THEY OPENED. >> THANK YOU.

>> MR. DAWSON, THIS PROJECT IS DONE IN CONJUNCTION WITH THE

CITY OF FORT PIERCE, CORRECT? >> YES, SIR.

>> SO THEY ARE COMING IN THERE AND DOING ROADWAY IMPROVEMENTS AND THINGS LIKE THAT SO THAT WE HAVE AN OPPORTUNITY TO GO AND REPLACE THESE WATER AND SEWER FACILITIES, BUT WE WILL NOT

HAVE TO REPLACE THE ROAD? >> NO, NO, SIR.

WE MAY HAVE TO FOR SOME OF THE REPAIRS DEPENDING ON THE TI TIMING. IF WE -- FOR ARGUMENT SAKE, WE HAVE TO GET IN THERE A COUPLE OF MONTHS BEFORE THE STIR, WE MAY HAVE TO DO A TEMPORARY REPAIRS.

IN THAT CASE, WE MAY -- NOT MAY HAVE TO PAY FOR THAT, BUT WE WILL HAVE TO PAY FOR THAT. IN THE CITY THIS HAS TO COME IN RIGHT AFTER WE ARE DONE. CHANCES ARE WE MAY NOT HAVE TO, BUT THAT IS A DECISION THAT IS MADE AT A HIGHER LEVEL.

>> BUT ITIER IN CONSTRUCTION THN THEY ARE AND THE ROADWAY REPAIR

[01:30:06]

BEING INVOLVED? >> THAT IS 100% CORRECT.

YES, SIR. >>MAYOR HUDSON: REALLY IMPORTANT -- I AM GLAD YOU BROUGHT THAT UP.

TO -- I I AM SURE YOU DO TRY TO COINCIDE WITH THE CITY TO SAVE

BOTH COSTS. >> AS MUCH AS WE CAN, YES,

MA'AM. >>MAYOR HUDSON: AS MUCH AS YOU

CAN. >> YES, MA'AM.

>>MAYOR HUDSON: I WILL BE WILLING TO MOVE APPROVAL UNLESS

ANYBODY HAS ANYTHING ELSE. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMBERS: YES, MA'AM, >>MAYOR HUDSON: YES, MA'AM.

[G.7. 2022 Employee Benefit Plan, Stop Loss and Blue Medicare Master Agreements]

>>KRISTINA GIBBONS: YES, MA MA'AM.

>> THANK YOU. >> NEXT ITEM IS APPROVAL OF THE DOCUMENTS ASSOCIATED WITH THE 2022 EMPLOYEE BENEFIT PLAN.

LOW WHICH IS WOLF WILL MAKE THE PRESENTATION AND WE HAVE KATHLEEN NAOLA IS ALSO HERE TO ANSWER ANY QUESTIONS THAT YOU

MAY HAVE. >> THANK YOU, MR. TOMPE CK WITH THE BOARD. I'M HERE WITH THE SECOND PIECE OF GOOD NEWS FOR YOU REGARDING OUR MEDICAL PLAN AND I WILL START BY TELLING YOU THAT MEDICAL TREND IS ABOUT 9%.

OUR MEDICAL PLAN IS AT NEGATIVE 3.7%.

AND KUDOS TO ALL THE MEDICAL STAFF, AS WELL AS IN CONJUNCTION WITH FLORIDA BLUE WHICH HAS GIVEN US OUR FUNDS TOWARD OUR WELLNESS PLAN. ACTUALLY WE ARE GOING TO BE GETTING ANOTHER $20,000 FOR 2022.

FOLLOWED BY $15,000 FOR EACH OF THE NEXT THREE YEARS FOLLOWING THAT. AND THOSE FUNDS GO TOWARD A VERY ROBUST WELLNESS PLAN THAT OUR EMPLOYEES USE AND HAVE DONE A REMARKABLE JOB IN TAKING CARE OF THEMSELVES AND -- AND UTILIZING MEDICAL RESOURCES TO HELP KEEP OUR PLAN IN VERY GOOD SHAPE. AND I THINK THAT IS A REMARKABLE ACHIEVEMENT ESPECIALLY IN THIS LAST YEAR, YEAR AND A HALF WITH COVID SO IT IS, AGAIN, A REMARKABLE ACHIEVEMENT. WE COME HERE TONIGHT BECAUSE WE HAVE GOTTEN A GREAT RATE WITH HIGH MARKS THROUGH BLUE CROSS FOR OUR STOCK LOSS PREMIUM. THE ONE CHANGE WE MADE WAS THAT WE DID ACCEPT A HIGHER DEDUCTIBLE ON OUR STOP LOSS COVERAGE. THEY LOCKED US IN AT A GREAT PREMIUM. YOU DID ACCEPT ANOTHER $15,000 OF LIABILITY ON OUR CLAIMS AT $140,000.

AND THAT DID SAVE US APPROXIMATELY $100,000.

SO THAT IS THE CHANGE ON THAT STOP LOSS.

THEY DID LOCK US IN ON CLAIMS THROUGH AUGUST AS LONG AS WE DO GET THAT APPROVAL THIS EVENING. THAT IS THE FIRST APPROVAL ON OUR BOARD SUBMISSION -- THE SECOND ONE HERE EXCEPT THE STOP LOSS PROPOSAL AND AGREEMENT WITH FLORIDA BLUE AT A STOP LOSS COVERAGE AT A 140,000 SPECIFIC DEDUCTIBLE LEVEL AT A COST OF99,250 FOR THE PLAN YEAR.

THIS IS BASED ON CLAIMS EXPERIENCED THROUGH AUGUST 3 12021. A FIRM COMMITMENT IF IT IS SELECTED BY OCTOBER 21. AND THE OTHER PIECE TO IT IS PAYMENT OF ADMINISTRATIVE FEES TO FLORIDA BLUE AT A COST OF 6705 PER EMPLOYEE PER MONTH FOR ANNUAL ESTIMATED COST OF $2 $222,070. BASED ON 276 MEMBERS.

THERE IS NO CHANGE IN THAT COST FROM THIS YEAR.

THAT RUNS THROUGH DECEMBER 31, 2022.

ALSO TO REMOVE BLUE MEDICARE GROUP MASTER AGREEMENT, THOSE ARE PREMIUMS PAID BY OUR RETIREES FOR THE -- THE MEDICARE PREMIUMS FULLY PAID BY THOSE NUMBERS.

ALSO, THERE WILL BE A REDUCTION IN THE ADMINISTRATIVE SERVICES AGREEMENTS FOR OUR DENTAL ADMINISTRATIVE FEE.

THE RATE IS DROPPING FROM -- TO 605 PER EMPLOYEE PER MONTH FROM $6.33. DID MAKE THE CHANGE TO THE

[01:35:05]

MODIFYING THE LIFE AND COVERAGE THROUGH U.S. SABLE FROM A FLAT $20,000 TO A ONE-TIME ANNUAL SALARY.

AGAIN TO KEEP PACE ON -- WITH -- WITH THE STANDARD FOR INSURANCE COVERAGE. THAT WILL BE TO A MAXIMUM OF $100,000. THE BOARD MEMBERS WILL BE AT A FLAT $20,000 COVERAGE. WE WILL CONTINUE ALL THE OTHER BENEFITS UNDER THE PROGRAM WITH NO CHANGES THAT WOULD INCLUDE THE EAP, THE MEDICAL AND DEPENDENT CARE SPENDING ACCOUNTS, THE VISION PLAN. THERE ARE NO CHANGES TO THE EMPLOYEE PREMIUMS. SO TO RECAP WHAT WE ARE SEEKING APPROVAL FOR. AGAIN, STOP LOSS COVERAGE AT THE HIGH MARK AT 145,000 SPECIFIC DEDUQUE DUCTABLE AND SERVICES THROUGH FLORIDA BLUE FOR MEDICAL AND FLORIDA LIFE FOR THE DENTAL. AND EMPLOYER AND EMPLOYEE CONTRIBUTIONS INCREASE THE DENTAL CALENDAR MAXIMUM TO $ $1500. WHILE MAINTAINING THE CURRENT EMPLOYEE CONTRIBUTIONS. MODIFY WITH BASIC LIFE AND BENEFIT TO ONE-TIME SALARY TO $100,000 MAXIMUM FOR ALL REACTIVE EMPLOYEES AND THE BOARD MEMBERS REMAINING AT 20,000 DOLLARS. MODIFYING AND RETIRING, BASIC LIFE AND AD BENEFIT TO $5,000. RIGHT NOW WHEN YOU ARE A RETIREE BEGINS TO RECEIVE THEIR PENSION.

THEY HAVE AN OPTION TO TAKE LIFE INSURANCE AND RIGHT NOW IT IS $1,000 AT A PREMIUM OF $.28. IT HAS BEEN THAT WAY FOR A LONG TIME. ALMOST AN EMBARRASSMENT TO OFFER THEM THAT AND RIGHT FLOW GO TO $5,000 FOR A PREMIUM OF $95. ALMOST A NO BRAINER AND, AGAIN, THAT COMES RIGHT OUT OF THEIR PENSION AND WE DON'T PAY ANY THAT AND THE MEDICAL GROUP. AND KATHLEEN WILL --

>> I HAVE A QUESTION ON PAGE 3. I THINK I ASKED THIS BEFORE.

I ALWAYS HAVE TROUBLE WITH IT. SO THE BOX AT THE BOTTOM SAY PER PAY EMPLOYEE CONTRIBUTION. IS THAT PER PAY PERIOD? OR IS THAT -- THAT THE SAME FOR THE ONE ABOVE, THE FUNDING.

>> THE FUND SOMETHING MONTHLY. >> THE FUNDING IS MONTHSLY BUT THE BOX BELOW IS PER PAY PE PERIOD.

>>KRISTINA GIBBONS: ANY FURTHER QUESTIONS?

GO AHEAD. >> STILL NEED TO SIGN THAT AMENDMENT TO THE AGREEMENT. IT SAYS -- IT NEEDS ANY SIGNATURE. I THOUGHT I TOOK CARE OF THAT.

>> I THOUGHT YOU SIGNED THEM ALL, BUT WE WILL CHECK ON IT.

WE WILL CHECK ON IT FOR SURE. >> I KNOW SOME OF THEM CAME

THROUGH EARLIER. >>KRISTINA GIBBONS: I HAVEN'T RECEIVED ANYTHING ON MY END Y YET.

>>MAYOR HUDSON: WE WILL CHECK ON WHAT MAY HAVE GOTTEN SIGNED

ALREADY. >> IF IT IS APPROVED, I CAN

SIGN IT NOW. >>MAYOR HUDSON: AS LONG AS

EVERYTHING GETS APPROVED. >>BARBARA BENNETT: WE HAVE YOUR SIGNATURE ON THIS PAGE. I WILL BE HAPPY TO MOVE

APPROVAL. >> I HAVE A COUPLE OF COMMENTS, QUESTIONS. MRS. WOLF, SEEMS LIKE WE DO A PRETTY GOOD JOB COMPARED OF PREVIOUS COST DOWN.

BUT YOU MENTIONED WELLNESS PROGRAM.

DO YOU HAVE SOME THINGS THAT STAFF DOES AND WE DO AS A COMPANY THAT REALLY SIGNI SIGNIFICANTLY IMPACTS HOW -- HOW LITTLE WE RAISE OUR COST OF INSURANCE.

>> A MATTER OF COMMUNICATION ARE, EDUCATION, WE DO INCENTIVES FOR EMPLOYEES, PARTICULARLY IN PARTICIPATION IN THE WELLNESS PROGRAM. ANOTHER POINT IS THE USE OF

[01:40:04]

AND IT KEEPS INDIVIDUALS OUT OF THE EMERGENCY ROOM FOR NONURGENT SITUATIONS, WHICH IS A TREMENDOUS SAVINGS.

AND SO WE KEEP THAT OUT THERE. AND THAT MAKES A HUGE IMPACT.

ON OUR COSTS. >> THANK YOU FOR THAT.

MY LAST COMMENT WAS. IT WAS A LITTLE DIFFICULT FOR ME TO FOLLOW -- FOLLOW ALONG IN THE PACKET.

SO -- AND I AM NOT -- I DON'T SEE THE STAFF'S RECOMMENDATION SUMMARIZED IN THE PACKET SOMEWHERE.

>>KRISTINA GIBBONS: PAGE 5 AT THE VERY BOTTOM.

. >> PAGE 5.

>>MAYOR HUDSON: I THINK SHE WAS WORKING FROM THE PAGE 5 AND WE WERE TRYING FIND IT WORKING THROUGH THE DOCUMENT IS WHAT WE

WERE DOING. >>KRISTINA GIBBONS: OF

RECOMMENDATIONS. >> I SEE.

GREAT, PERFECT. THAT IS WHAT I WAS LOOKING FOR THEN. THANK YOU.

>>KRISTINA GIBBONS: DO WE HAVE A MOTION?

>>MAYOR HUDSON: I MOVE APPROVAL.

>> SECOND. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMBERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

>>KRISTINA GIBBONS: YES, MA MA'AM.

>> ALSO IF I CAN THANK LOIS AND KATHLEEN.

THEY HAVE DONE A TERRIFIC JOB NOT ONLY THIS PAST YEAR BUT OVER THE LAST YEARS. THEY DO THE GREAT JOB OF GETTING THE BEST BANG FOR THE BUCK FOR OUR PROGRAMS. AND CONSTANTLY INCREASING OUR PROGRAMS AND CONSTANTLY INCREASING OUR BENEFITS WITHOUT COSTING US EVERYTHING.

I THINK THAT IS TERRIFIC. YOU KNOW WE -- THIS YEAR YOU APPROVED A 4% INCREASE A COUPLE OF MONTHS AGO.

WELL, AT LEAST WE ARE NOT GOING TO HAVE TO PAY ALL OF OUR 4% INCREASE ON MEDICAL EXPENSES. A REAL 4% INCREASE AS OPPOSED -- GET THREE AND A HALF AND THEIR MEDICAL INSURANCE COST MORE. SO THESE TWO DESERVE A WHOLE LOT OF CREDIT FOR THAT AND I APPRECIATE IT.

>> THANK YOU FOR THAT. >> I MIGHT ADD A REAL CHALLENGE MANAGING A SELF-INSURED PRO PROGRAM.

>> THE FULLY INSURED PROGRAM WILL LEAVE IN THE HANDS OF THE UNINSURED MANAGING WITH THE TRUE UNPREDICTABILITY IS A HUGE CHALLENGE AND BIG THANKS TO KATHLEEN BECAUSE SHE GOES AFTER

THEM FOR THE BEST RATES. >> YOU JUST KEEP IT UP.

[I.1. Adopt the following resolutions with an effective date of November 1, 2021: Resolution No. UA 2021-06, which provides for a 1.17% increase in the Water customer and volume charges, Resolution No. UA 2021-07, which provides for a 1.17% increase in the Natural Gas customer and commodity charges, and Resolution No. UA 2021-08, which provides for a 1.17% increase in the Wastewater customer and usage charges.]

>> I WILL. THANKS, EVERYONE.

>> NEXT ITEMS ARE THREE RESOLUTIONS THAT INCREASE OUR WATER AND GAS RATES BY INDEX OF 1717.

BARBARA MIKE WILL MAKE THE PRESENTATION.

>> THANK YOU MR. TOMPEC K AND THANK YOU.

I AM REQUESTING FOR APPROVAL RATE ADJUSTS FOR WATER AND NATURAL GAS. YOU SEE THE RESOLUTIONS ARE BASED UPON THE FLORIDA PUBLIC SERVICE COMMISSION INDEX WHICH IS FPUA ANNUAL INDEX PROVISION. THE INDEX PROPOSED -- PUBLISHED FOR 2021 WAS 1.17%. WE ARE RECOMMENDING THIS IMPLEMENTATION NOVEMBER 1, 2 2021.

FOLLOW THE PROPER GUIDELINES SET BY FLORIDA STATUTE OF NOTIFYING CUSTOMERS OF THIS AND OF TODAY'S PUBLIC HEARING.

WE HAVE ADDRESSED OR REQUIRED ADDITIONAL MEANS OF NOTIFICATION. IN SEPTEMBER, THIS NOTICE OF PUBLIC HEARING WAS INCLUDED AS A BILL INSERT WITH EVERY BILL MAILED TO CUSTOMERS. CUSTOMERS WHO DO NOT RECEIVE A BILL AND GO ONLINE TO PAY RECEIVE THE SAME NOTICE WHEN THEY ADDRESS THEIR SEPTEMBER BILL.

THIS WAS ALSO POSTED ON THE FPUA WEB SITE.

[01:45:01]

WE ANNOUNCED NOTICE ON FACEBOOK ON THE WAY TO THIS PUBLIC HEARING. FPUA HAVE EVALUATED RATES WITH THE PURPOSE OF MAKING EACH SYSTEM SELF-SUFFICIENT.

WITH THE FY '22 BUDGET YEAR IDENTIFY THAT WATER AND NATURAL GAS SYSTEMS WERE NOT SUS SUSTAINABLY OPERATING.

REVENUE PROJECTIONS WERE BASED ON PRIOR YEAR EXPERIENCE WITH SOME GROWTH FOR THE GAS SYSTEM BUT NO SIGNIFICANT GROWTH WERE ASSUMED FOR THE OTHER SYSTEMS IN THE CURRENT BUDGET YEAR.

THE SUFFICIENCY ANALYSIS FOCUSES ON THE BASE RATE, AND ITS ABILITY TO COVER THE MAJOR ANNUAL EXPENDITURES FOR EACH SYSTEM. LAST YEAR IN FISCAL 2021, SIMILAR RESOLUTIONS WERE IMPLEMENTED FOR WATER, WA WASTEWATER AND NATURAL GAS AT AN INDEX OF 1779%.

THE BROAD PICK -- 1.79 EFFECT. THE RATES WERE ESTIMATED TO SUSTAINABLE FUND ONLY ABOUT 40% OF THE RATE FUNDED CAPITAL BUDGET FOR FISCAL YEAR '22. THE FOCUS ON THE STUDY WAS ON CUSTOMER SALES AND REVENUES THAT WERE SUFFICIENT TO COVER THE BUDGETED OPERATING EXP EXPENSES, DEBT SERVICE PAY PAYMENTS, THE DISTRIBUTION TO THE CITY AND THE CAPITAL NEEDS.

THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN WAS APPROVED FOR $110.9 MILLION WITH ABOUT 55% OR $61 MILLION EXPECTED TO BE FUNDED BY RATES OVER THE FIVE-YEAR PERIOD.

THAT AMOUNT TO AN AVERAGE OF $12.1 MILLION IN RATE FUNDED PROJECTS EACH YEAR FOR FIVE YEARS.

THE FUNDS FOR THESE PAY AS YOU GO PROJECTS COME FROM RATES OR -- OR THEY WILL REDUCE OUR UNRESTRICTED CASH IF THEY ARE CONTINUED. THE PROPOSED RATE PROJECTIONS INCLUDE FUNDING 40% OF THOSE PROJECTS.

ALSO INCLUDED IN THE CIP ARE FUTURE DEBT-FUNDED PROJECTS FOR AMI WHICH TOUCHES THE ELECTRIC, NATURAL GAS AND WATER SYSTEMS FOR ABOUT $6 MILLION. AND SOME NATURAL GAS, WATER AND WASTEWATER CUSTOMER EXPANSION PROJECTS FOR $20.9 MILLION.

THIS CHART OF THE FIVE-YEAR CAPITAL IMPROVEMENT PLAN SHOW THE PROJECTED FUNDING OF THE CAPITAL PLAN BY SYSTEM.

IT IS EXPECTED THAT OVER THE NEXT FIVE YEAR, WATER REVENUES WILL NEED TO FUND $20.1 MILLION OF CAPITAL.

ELECTRIC SYSTEM REVENUE $18.2 MILLION.

WASTEWATER TO THE TUNE OF $12.5 MILLION.

THIS IS OVER THE FULL FIVE YEARS.

NATURAL GAS AT 3.1 MILLION. AND FPUANET AT 2.2 MILLION DOLLARS. THIS IS THE PROPOSED COST RECOVERY FROM OUR RATE SUFFICIENCY ANALYSIS.

BASED UPON THE UPDATED SUFFICIENCY ANALYSIS, THE EXISTING RATES ARE NOT ADEQUATE TO MEET THE TOTAL REVENUE REQUIREMENTS OF THE SYSTEM. ANALYSIS PREPARED EVALUATE EACH SYSTEM'S ABILITY TO HAVE THE OPERATING AND CAPITAL NEEDS LIMITING THE FY '22 INCREASES FOR WATER, WASTEWATER AND NATURAL GAS TO THE 1.7% PUBLIC SERVICE COMMISSION INDEX.

IN ADDITION TO THE RATE ADJUSTMENTS DEEMED NECESSARY FOR WATER AND NATURAL GAS IS AN INDEX ADJUSTMENTS FOR WASTEWATER. TEN YEARS AGO, FPUA DID A MULTISTUDY OF THE RATE TO KEEP THE OVERALL BASS THE SAME.

BILL BALANCED AND REDUCING ELECTRIC RATES AND INCREASING WATER, WASTEWATER AND GAS. SINCE THEN OUR WASTEWATER SYSTEM HAS OPERATED -- AND HAS BEEN ABLE TO COVER THEIR COSTS.

THEIR OPERATING COSTS AND EXPENDITURES.

HOWEVER, IN LIGHT OF THE STRATEGIC PLAN FOR THE RELOCATION OF THE ISLAND WATER RECLAMATION AND THE ANTICIPATION OF THE FINANCIAL NEEDS OF THIS ENDEAVOR, MANAGEMENT HAS DECIDED AS WE DID LAST YEAR TO CONTINUE TO INCLUDE WASTEWATER SYSTEMS IN THIS ANNUAL PUBLIC SERVICE COMMISSION RATE ADJUSTMENTS. THE FUTURE IMPACT OF THE M MAINLAND WATER RECLAMATION FACILITIES AND THE INCREASED RATES THAT WILL BE REQUIRED TO CARRY THESE COSTS ASSOCIATED WITH THE RELOCATION CANNOT BE DONE IN ONE OR TWO YEARS.

IT NEEDS TO BE DONE OVER TIME. THE COST NEEDS TO BE

[01:50:02]

THIS CHART IS A COMPARISON OF THE CURRENT 2021 WATER AND WASTEWATER RATES FOR FPUA AND THE NEIGHBORING UTILITIES.

FPUA WITH THE PROPOSED INCREASES OF WATER AND WA WASTEWATER ARE IN THE MEDIAN RANGE.

THIS DATA WAS EXTRACTED FROM OUR CURRENT DATA FILES THAT WE USE TO PREPARE -- FROM OUR LOCAL UTILITY BILLS THAT WE REPORT REGULARLY THAT MICHELLE JUST PRESENTED AND ALSO -- WE DID SOME RESEARCH WITH THESE UTILITIES ONLINE WITH THEIR WEB SITES TO GATHER THE REST OF THE INFORMATION.

EVEN WITH THIS INCREASE WITH WATER AND WASTEWATER COMBINED, WE ARE STILL IN THE MID-RANGE. WHY DO WE NEED THESE RATE INCREASE? FPUA NEEDS THE HIGH QUALITY OF OF SERVICE WE PRO RIDE TO OUR CUSTOMERS THROUGH RENEWALS AND REPLACEMENTS. WE NEED KEEP UP WITH INFLATION.

THE COST OF MATERIALS ARE CONSTANTLY ON THE RISE.

IF COST GOES UP AND REVENUES DO NOT CHANGE, OUR CASH RESERVES WILL DIMINISH. WE NEED TO EXPAND OUR SERVICES WHERE WE CAN. BUILD WHERE WE CAN.

SO EXPAND OUR CUSTOMER BASE AND GENERATE NEW REVENUES.

FPUA WILL MAINTAIN ADEQUATE CASH RESERVES FOR OPERATING AND CAPITAL NEEDS AND ALSO MOST IMPORTANTLY NEED TO BE IN COMPLIANCE WITH THE CITY CHARTER AND OUR BOND RESOLUTIONS IN ORDER TO MAINTAIN A SUSTAINABLE UTILITY SYSTEM. SO HOW WILL THIS IMPACT OUR TYPICAL BILL? SO THERE IS NO -- NO IMPACT ON ELECTRIC BECAUSE WE ARE NOT PROPOSING THIS INCREASE TO THE ELECTRIC SYSTEM. BUT FOR THE -- BUT FOR THE WATER, WASTEWATER COMBINED, $1.02 FOR 6,000 GALLONS OF CONSUMPTION FOR THE WATER AND WASTEWATER USAGE AND GAS WILL BE IMPACTED BY $.29 IN THIS -- WITH THIS PROPOSAL HERE.

AND THAT IS WITH THE PGA OF THE NEGATIVE $.03 THAT WAS PROVED TO BE A CHANGE. THAT IMPACT WILL BE ANOTHER $3.

TO $3728 AND $.39 ON THE GAS BILL THAT IS THE GAS ADJUSTMENTS THAT WAS JUST APPROVED.

BUT OVERALL IT IS ONLY -- $1 $1.31.

IN CONCLUSION, FPUA RATES ARE NOT ENOUGH TO MEET THE NEEDS OF THE UTILITY SYSTEM. WE ARE ASKING THE BOARD FOR THE INDIVIDUAL ADOPTION OF THE PROPOSED RATE INCREASES WHICH ARE BASED ON THE 2021 PUBLIC SERVICE COMMISSION INDEX OF 1 1.17% WITH AN EFFECTIVE DATE OF NOVEMBER 1, 2021.

WILL CONTINUE TO BE PHYSICALLY RESPONSIBLE FOR THE UTILITY SYSTEM OF OPERATIONS AND CONDUCT A REVIEW OF OUR UTILITY RATES ANNUALLY. AND IF YOU HAVE ANY QUESTIONS OR CONCERNS BEFORE YOU DECIDE, LET ME KNOW.

>>KRISTINA GIBBONS: QUESTIONS? >> CAN I ASK A QUESTION? EXCUSE ME. IN THE PRESENTATION, THERE IS A PAGE IN THERE -- THE ADVERTISING REQUIREMENTS FOR THESE RESOLUTIONS. AND THIS IS A BIT DIFFERENT THAN WHAT WE NEED TO DO FOR THE FPUA.

AND ONE WAS TAKING OUT AN AD IN A LOCAL NEWSPAPER.

I SAY PUT IT IN THIS BIG. MAKE IT IN RED SO EVERYBODY CAN'T MISS IT. EVEN A FULL PAGE OR TWO PAGES.

AT LEAST THAT DOES OUR BEST TO GET THE WORD OUT.

I THINK ANYBODY -- THEY COULD MISS THAT.

JUST A THOUGHT. >>KRISTINA GIBBONS: ANY

QUESTIONS? >> WE CAN ADVERTISE ON LOCAL

STATIONS. >>MAYOR HUDSON: WELL, I HAVE MY BILL INSERT THIS MINUTE. I AM ONE CUSTOMER THAT DID READ IT AND I OPENED THE MAIL NOW, AND I DID READ IT.

SO I KNEW THIS WAS COMING. AND IT WAS NICE BIG PRINT.

WHOEVER DESIGNED IT I APPRECIATE THAT.

>>KRISTINA GIBBONS: ARE WE GOING TO ENTERTAIN A MOTION FOR

APPROVAL? >> READ THE TITLES OF EACH OF

[01:55:05]

THE RESOLUTION. >> EACH ONE HAS TO BE TAKEN

SEPARATELY. >>MAYOR HUDSON: THREE

DIFFERENT VOTES? >> YES, MA'AM.

>> RESCUES UA 2021-06, SUPERSEDING AND AMENDING THE RATE OF CHARGES FOR WATER SERVICES BY FORT PIERCE AUTHORITY, FOR THE PIERCE FLORIDA ARES REUSE 2020-10 OF THE CITY OF FORT PIERCE ARTICLE 12 PROVIDING FOR 1.17 INCREASE IN THE VOLUME AND CUSTOMER CHARGES PROVIDED FOR AN

EFFECTIVE DATE HEREOF. >>KRISTINA GIBBONS: MAKE A

MOTION. >>MAYOR HUDSON: MOVE APPROVAL.

>> SECOND. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMBERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

>>KRISTINA GIBBONS: YES, MA MA'AM.

>> RESOLUTION 2021-07, A RESOLUTION AMENDING SUPERSEDING AND RESCINDING THE SCHEDULE OF THE RATES AND CHARGES FOR NATURAL GAS SERVICES FURNISHED BY FORT PIERCE, FLORIDA, IN RESOLUTION 2020-12 IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ARTICLE 12, PROVIDING FOR A 1.17% INCREASE IN THE CUSTOMER AND COMMODITY CHARGES BASED ON THE 2021 FLORIDA PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR AN EFFECTIVE DATE

HERE OF. >> I MOVE FOR APPROVAL.

>> I WILL SECOND IT. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMB ERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

>>KRISTINA GIBBONS: YES, MA MA'AM.

>>MAYOR HUDSON: BEFORE WE READ THE WASTEWATER ONE, I WANT TO CLARIFY. THIS IS NOT -- WE DON'T NEED THIS BUT THIS IS IN PREPARATION OF THE MOVING OF THE WASTEWATER TREATMENT PLANT. IS THAT WHAT YOU SAID?

>> YES. >>MAYOR HUDSON: I THINK THAT IS SOMETHING IMPORTANT THAT THIS BOARD OUGHT TO REALIZE.

WE ARE ALREADY MAKING PREPARATIONS.

WE HAVE A GOOD-FAITH EFFORT TO MOVE THE WASTEWATER TREATMENT AND THE RATE PAY ER IS PARTICIPATING IN THAT.

>> RESCUES NUMBER UA 2021-08, A RESOLUTION AMENDING, SUPERSEDING AND RESCINDING THE RATES AND CHARGES FOR WA WASTEWATER SERVICES FURNISHED BY FORT PIERCE AUTHORITY RESOLUTION UA 2021-11 IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, ARTICLE 12, PROVIDING FOR A 1.17% INCREASE IN THE CUSTOMER AND USAGE CHARGES AND PROVIDING

FOR AN EFFECTIVE DATE HEREOF. >> SECOND.

>> WHO SECONDED? >>MAYOR HUDSON: I THINK WE BOTH DID. YOU CAN CHOOSE ONE.

>> CHOOSE THE NEW GUY. [LAUGHTER]

>>BARBARA BENNETT: YES, MA'AM. >> MR. LAMBERS: YES, MA'AM.

>>MAYOR HUDSON: YES, MA'AM. >>KRISTINA GIBBONS: YES, MA

[I.2. Approve Resolution 2021-11 and the FPUA Board Policies, Procedures and Rules of Order appended thereto.]

MA'AM. >> OKAY, THE LAST ITEM ON THE AGENDA TODAY IS A RESOLUTION FOR FPUA BOARD POLICIES AND PROCEDURES. THIS IS IN RESPONSE TO YOUR REQUEST TO UPDATE THE DOCUMENT FROM SEVERAL MONTHS AGO.

THE DOCUMENT HAS BEEN REVIEWED BY MR. KOBEGARD.

>> THANK YOU, MADAM MAYOR, VICE-MAYOR, MEMBERS OF THE BOARD. WELCOME.

ALL RIGHT. SO THIS IS -- AGAIN, AN UPDATE TO THE FPOA BOARD POLICIES AND PROCEDURES.

ARTICLE 12 OF THE CITY CHARTER ESTABLISHED THE UA BACK IN 1 1972. AND PROVIDES THE UA THE AUTHORITY WITH EXCLUSIVE JURISDICTION, CONTROL AND MANAGEMENT OF ALL THE UTILITIES IN THE CITY.

SECTION 178 PROVIDES THE BOARD WITH THE AUTHORITY TO ADOPT RULES FOR ITS BOARD MEETINGS. AND THE BOARD GOVERNS THE UA, DEBTS OFF DIRECTION, STRATEGIC PLANNING AND POLICYMAKING DECISIONS FOR THE UTILITY AUTHORITY.

SUBSEQUENTLY IN 1987, RESOLUTION 8701 SET THE RULES OF ORDER FOR THE MEETINGS AND WHAT YOU SEE ON THE RIGHT SIDE OF THE SCREEN IS JUST A SNAPSHOT OF THE FIRST HALF OF THAT DOCUMENT AND YOU CAN SEE IT SETS -- YOU KNOW, VERY SIMILAR TO WHAT WE DO TODAY IN THE AGENDA.

LATER ON IN 2016, THE BOARD POLICIES AND PROCEDURES WERE

[02:00:02]

THIS IS AN UPDATE TO THOSE. AND WHAT WE HAVE DONE IS COMBINED BOTH THAT RESOLUTION ABOUT THE RULES OF ORDER AND THE POLICY AND PROCEDURE DOCUMENTS.

THIS REPLACES BOTH OF THOSE. OVERVIEW, EFFECTIVELY, WE REWORDED THE ENTIRE DOCUMENT FROM THE BOARD POLICIES AND PUT THEM IN AN ORDER THAT MADE SENSE.

CLARIFIED A LITTLE LANGUAGE, TABLE OF CONTENTS, PROVIDED FOR THE CHARTER ELEMENTS AND REFERENCES AS WELL.

OPINIONED ADDED REFERENCES TO THE CERTAIN SECTIONS OF FLORIDA STATUTE THAT SUPPORT MANY OF THE THINGS THROUGHOUT THE POLICY AND PROCEDURE DOCUMENT. AND REALLY THIS DOCUMENTS IS IDENTIFIED TO GIVE GENERAL GUIDANCE FOR MEETINGS AND VARIOUS OTHER THINGS FOR THE BOARD AND ITS INTERACTIONS, EVERYTHING FROM ETHICS TO CODE OF CONDUCT TO ATTENDANCE AT MEETING, THE RULES AND THE CONDUCT OF THE MEETINGS, EXPENDITURE APPROVALS, THINGS LIKE THAT.

ONE OF THE SECTIONS WE INCLUDED WAS THE SUNSHINE LAW AND PUBLIC MEETINGS. AND OF REFERENCE THE SECTION IN THERE AND IN REFERENCE TO THE POLICIES AND PROCEDURES.

AND IT TALKS ABOUT THE TRAINING THAT IS REQUIRED OF PUBLIC OFFICIALS AND ALSO RECOMMENDED FOR BOARD MEMBERS AND EXECUTIVE STAFF OF THE UA. SO WHEN IT COMES TO BOARD MEETINGS OF A QUORUM REQUIREMENT AND REQUIRES THREE BOARD MEMBERS TO BE PRESENT, TO ACTUALLY HAVE A MEETING WHICH IS REGULAR MEETING AND SPECIAL MEETING AND ANY BOARD ACTION REQUIRES THE AFFIRMATIVE VOTE OF THREE MEMBERS PRESENT AT THAT MEETING. SO IN THE AGENDA, IN ORDER OF CONDUCT AT THE MEETINGS, WE JUST UPDATED THIS TO INCLUDE CURRENT SECTIONS AND SO, YOU KNOW, JUST FOR EVERYBODY'S CLARIFICATION AND I THINK THE BOARD KNOWS THIS, THE CONSENT AGENDA ARE COMPRISED OF ITEMS BETWEEN 50 AND 200,000 AND GENERALLY CONSIDERED BY THE DIRECTOR OF UTILITIES TO BE ROUTINE AND NONCONTROVERSIAL AND NO DISCUSSION ON THOSE ITEMS. THE BOARD MEMBER, IF THEY CHOOSE -- AFTER SEEING THE PACKET CAN PULL ONE OF THOSE ITEMS OFF OF THE CONSENT AGENDA BEFORE THEY GET A PASS, AND THAT CONSENT AGENDA IS APPROVED ALL AT ONE TIME.

THE REGULAR AGENDA ITEM OVER 200,000 NEW BUSINESS, OLD BUSINESS AND RESOLUTIONS LIKE THAT THIS ONE, AND ONCE THAT DEVELOP INDIVIDUALLY AND THE BOARD DISCUSSES THEM AND WE HAVE AN OPPORTUNITY GIVE A PRESENTATION AND YOU GET AN OPPORTUNITY TO ASK US QUES QUESTIONS.

SO WHEN IT COMES TO PUBLIC COMMENT, AND THIS SECTION 28 286.0114. FLORIDA STATUTES COVERS THIS.

PROVIDES A PUBLIC OPPORTUNITY TO ADDRESS THE BOARD, AND THE RULES THAT ARE LAID OUT IN HERE MATCH THE STATUTE EXACTLY.

AND THE REASON FOR THAT IS BY MATCHING THE STATUTE EXACTLY, PROVIDES A SAFE HARBOR FOR THE BOARD AND ACTIONS WITH REGARD TO PUBLIC COMMENT. AND PEOPLE CAN SUBMIT A REQUEST IN ADVANCE. A FORM ON FPUA.COM.

THEY DON'T HAVE TO BUT WE ASK THAT THEY DO SO WE KNOW WHAT TOPICS THAT WILL BE DISCUSSED. THEY GET THREE MINUTES EACH.

IF A LARGE NUMBER OF SPEAKERS, THE BOARD CAN ASK FOR REPRESENTATIVES TO SPEAK SO MEETINGS DON'T EXTEND ALL EVENING. SOMETIMES YOU CAN -- WELL, WHEN YOU GET TO RAISING RATES, WE MAY SEE A NUMBER OF PEOPLE SHOWING UP TO COMMENT ON THEM AND CAN HELP RECEIVE THE COMMENTS WITHOUT EXTENDING A BOARD MEETING INTO HOURS OR LONGER THAN NECESSARY. AND THERE IS A SECTION WE ADDED ON DECORUM BY THE PUBLIC WHICH IS INTENDED TO MAINTAIN A CIVIL DISCOURSE AT THESE MEETINGS. THE IDEA HERE IS COMMENTS BE DIRECTED TO THE BOARD, NOT TO AN INDIVIDUAL BOARD MEMBER OR THE DIRECTOR OF UTILITIES. AND IT IS NOT SUPPOSED TO BE ANY PERSONAL ATTACKS, NO DISRESPECTFUL OR RUDE OR DISRUPTIVE REMARKS. PER SECTION 871.01.

SOMEONE WHO INTERRUPTS A MEETING, A PUBLIC MEETING CAN BE REMOVED AND ASKED TO LEAVE THE MEETING. THEY CAN'T BE BARRED FROM FUTURE PRESENTATIONS OR FUTURE BOARD MEMBERS, BUT THEY CAN BE REMOVED AT THE TIME WHEN THEY ARE BEING DISRUPTIVE. IN A NUTSHELL THAT IS THE GIST FIREFIGHTER AND A LOT COVERED IN THERE AND I AM HAPPY TO

ANSWER ANY QUESTIONS. >> I DON'T NECESSARILY HAVE QUESTIONS. I HAVE NOT HAD ENOUGH TIME TO REVIEW OUR POLICIES AND PROCEDURES SO I WON'T BE VOTING

TO MAKE ANY CHANGES TODAY. >>MAYOR HUDSON: YOU WANT TO DELAY IT TO A FUTURE MEETING IF WE DO HAVE TIME.

>> IF YOU GUYS ARE OKAY WITH THAT.

I WOULD PREFER THAT. >>MAYOR HUDSON: NO RUSH?

>>KRISTINA GIBBONS: YEAH, WE CAN MOVE IT FOR ANOTHER DATE.

>> THANK YOU. >>MAYOR HUDSON: ON PAGE 6, THE -- THE THIRD LINE FROM THE BOTTOM, I THINK YOU NEED TO --

[02:05:01]

>> SORRY PAGE 6 AND ITEM D. >>MAYOR HUDSON: ALL THE WAY AT THE BOTTOM. ITEM F, SECOND LINE.

MAY BE DETERMINED. YOU NEED A B-E.

>> SO WOULD THE APPROPRIATE MOTION WOULD TO BE POSTPONE THIS TO A DATE CERTAIN? WOULD THAT BE RIGHT MR.

KOBEGARD. >>MAYOR HUDSON: I MAKE THE MOTION TO POSTPONE IT FOR THE NOVEMBER 2.

>> SECOND. >>BARBARA BENNETT: YES, MA'AM.

>> MR. LAMBERS: YES, MA'AM. >>MAYOR HUDSON: YES, MA'AM.

>>KRISTINA GIBBONS: YES, MA MA'AM.

>>MAYOR HUDSON: I THINK YOU GAVE THIS TO US.

LIGHT READNG BUT IMPORTANT READING.

IT IS IMPORTANT. >> YES, IT IS.

>> ALSO WORKING TO GET -- I GOT A PRESENTATION THAT WAS MADE BY A LAWYER ON -- ON THE SAME TOPIC SUNSHINE LAW.

I AM TRYING TO GET A HOLD OF IT THAT YOU CAN LOOK AT IT FROM

YOUR LEISURE. >> LIKE A TAPE OR SOMETHING?

[J. DIRECTOR:]

>> ALL RIGHT. MR. TOM PEC K, DO YOU HAVE

ANYTHING? >> I HAVE ONE ITEM.

LAST NIGHT'S CITY COMMISSION MEETING.

APPROVED THE INTERLOCAL AGREEMENT WITH THE COUNCIL FOR WORK ASSOCIATED AT DEVELOPING AN INTERLOCAL AGREEMENT BETWEEN THE CITY AND FPUA RELATED TO THE LOCATION OF THE WASTEWATER PLANT. THE TREASURE COAST REGIONAL PLANNING COUNCIL MADE A PRESENTATION TO THE CITY ON THEIR PLANS GOING FORWARD AND WONDERING IF THE FPUA BOARD WOULD LIKE TO HAVE THAT PRESENTATION MADE TO THEM.

IN OTHER WORDS, HAVE KIM DELANEY COME IN AND DISCUSS WHAT THAT IS ABOUT SO YOU UNDERSTAND.

I HAVE GOT -- I HAVE GOT A SCOPE DOCUMENT THAT I CAN SEND NEW ADVANCE OF THAT, BUT I THINK IT WILL BE WORTHWHILE FOR YOU TO SEE THAT SAME PRESENTATION.

AND IF I CAN GET A CONSENSUS FROM THE BOARD, I WILL GO AHEAD

AND SET UP THAT. >>KRISTINA GIBBONS: WOULD LOVE

TO SEE THAT. >>MAYOR HUDSON: FOR SOME REASON I THOUGHT WE ALREADY HAD.

BUT IF WE HADN'T, I THINK WE WOULD.

>> THE ONLY OTHER ITEM WAS TO WELCOME LARRY LAMMERS BACK INTO

[K. ATTORNEY]

THE FOLD. >> THANK YOU.

>>KRISTINA GIBBONS: DO YOU HAVE ANYTHING?

>> LAST MEETING OR SPECIAL MEETING, IT WAS DISCUSSED ABOUT ME GET -- DISCUSS CURRENT -- THE SALARY.

AND WE ARE IN THE PROCESS GOING THROUGH THAT PROCESS.

DON'T HAVE AN AGREEMENT AT THIS TIME.

AND ALSO TALKING ABOUT MR. T TOMPECK AND TALK ABOUT HIM TAKING OVER AS INTERIM DIR DIRECTOR.

I THINK HE IS TALKING OF -- THE DIRECTOR IN THE FIRST MEETING IN DECEMBER. AND BETWEEN NOW AND THEN -- I DON'T THINK JOHN -- I CAN'T SPEAK FOR JOHN BUT UP UNTIL HIS RETIREMENT, WE WILL HAVE TO WORK SOMETHING OUT BETWEEN HIM AND MRS. SISNEROS AND HANDLE WHO IS IN CHARGE OF WHAT DURING THAT TIME FRAME. THAT IS A LITTLE STICKIER.

BUT THE CONTRACT AS FAR AS THE SALARY AND TERMS GO, THAT WON'T BE A -- BUT WHAT I AM DOING I AM GETTING A COPY OF THE CONTRACT FROM THE CITY OR NEW CONTRACT AND FOR THE NEXT CITY ATTORNEY AND WE ARE GOING THROUGH THAT AND MAY BE ADDING SOME THINGS IN THOSE CONTRACTS TO JOHN'S CONTRACT.

JOHN'S CONTRACT. AND MAKING SOME ADJUSTMENTS IN THAT. SO WE ARE GOING TO LEAN INTO THE NEXT MEETING WHEN WE BROUGHT ALL THAT UP.

>>MAYOR HUDSON: I HAVE A QUESTION.

REMEMBER AFTER MR. LINDSTRO LEFT, SOME WORDING THAT WAS PERCEIVED TO BE PROBLEMATIC AND I AM HOPING THAT WHATEVER CONTRACTUAL LANGUAGE THAT YOU MAKE, YOU FIX WHATEVER THAT

WORDING WAS. >> THAT WAS FIXED IN JOHN'S

CONTRACT. >>MAYOR HUDSON: IT WAS? OKAY, BECAUSE I DIDN'T THINK IT WAS FIGURED OUT AT THAT TIME.

BUT MAYBE IT WAS. >> I THINK HIS CONTRACT -- THERE WAS -- IN THE FORMS IN THERE.

RESOLVED WHEN JOHN SIGNED HIS NEW CONTRACT.

>>MAYOR HUDSON: OKAY. THE OTHER THING THAT WE DIDN'T TALK ABOUT WITH THE BOARD IF WHEN WE MADE THE DECISION IS --

[02:10:05]

AND THE WAY THE MARKET IS RIGHT NOW.

AND I AM NOT SURE IF I WANT -- WHAT KIND OF TIME FRAME I WANT IT, BUT I THINK IT IS VERY IMPORTANT FOR THE DIRECTOR TO LIVE IN THE CITY OF FORT PI PIERCE.

SO IF YOU COULD WORK WITH -- WITH MR. CISNEROS WITH THE T TIMEFRAME THAT MAKES SENSE BECAUSE I DON'T WANT TO PUT A UNDUE BURDEN ON -- BECAUSE I KNOW RIGHT NOW IF YOU SELL YOUR HOUSE, YOU MAY NOT HAVE ANY PLACE TO LIVE BECAUSE YOU CAN'T BUY ANOTHER ONE. SO --

>> DISCUSSION TO WANT TO HAVE A REQUIREMENT AND RESIDE IN FORT PIERCE. AND WE EVEN TALKED ABOUT HARBOR ISLAND AND THE UNIT I AM IN AT THE TIME.

>>MAYOR HUDSON: LET'S MAKE A DEAL, RIGHT.

WHATEVER, I HAD FORGOTTEN TO MENTION IT WHEN WE TALKED BEFORE. IT IS IMPORTANT TO ME.

I DON'T KNOW WHAT ALL THE REST OF THE BOARD MEMBERS FEEL, BUT AN IMPORTANT REQUIREMENT FOR ME.

>> IT CAN BE IN THERE. >> I WILL FIRM THAT UP.

[L. COMMENTS FROM BOARD MEMBERS:]

>>KRISTINA GIBBONS: ANYTHING ELSE?

>> NO. >>KRISTINA GIBBONS: BOARD MEMBERS? DO YOU HAVE ANYTHING?

>>MAYOR HUDSON: I AM GOOD. >>KRISTINA GIBBONS: ONE THING.

I WAS THINKING AS WE ARE THINKING OF MARKETING FOR THESE EVENTS THAT ARE GOING TO BE OCCURRING, WE NEED TO MAKE SURE WE ARE MARKETING TO HELP WITH ANYBODY WHO -- WHO IS WILLING TO UPDATE THEIR HOME FOR CERTAIN THINGS, TRY TO KEEP THEIR RATES DOWN. SO MAYBE THAT WOULD BE A GOOD,

POSITIVE WAY, RIGHT TO -- >>MAYOR HUDSON: FITS RIGHT IN.

>>KRISTINA GIBBONS: YES. THAT'S ALL I HAVE.

I HAVE TO HIT THE GAVEL. >>MAYOR HUDSON: I MOVE WE ADJOURN AND LET'S

* This transcript was compiled from uncorrected Closed Captioning.