[Call to Order]
[00:00:07]
I WOULD LIKE TO CALL FORT PIERCE UTILITIES AUTHORITY REGULAR MEETING THIS TUESDAY NOVEMBER 16TH 2021 TO ORDER.
WOULD YOU PLEASE STAND FOR THE PRAYER AND THE PLEDGE OF
ALLEGIANCE. >> GOOD AFTERNOON.
I LIKE TO BEGIN BY READING FIRST CHRONICAL CHAPTER FOUR VERSE 10. CRIED OUT GOD OF ISRAEL YOU WOULD BLESS ME. LET YOUR HAND BE WITH ME AND KEEP ME FROM ARM AND GOD GRANTED HIS REQUEST.
LORD WE ASK THE SAME REQUEST THAT YOU WOULD BLESS FPUA IN THE CITY OF FT. PIERCE AND YOU WOULD GIVE US WISDOM AS OUR TERRITORY IS EXPANDING. GIVE THE BOARD WISDOM AND CLARITY ON THIS DECISIONS THAT THEY HAVE TO MAKE, WE ASK FOR STRATEGIC STRATEGIES THAT WOULD POSITION US TO BE A SAFE EFFICIENT AND THRIVING COMMUNITY.
MAY WE BE CITY ON THE HILL THAT BRINGS LIGHT INTO DARK
PLACES, IN JESUS NAME, AMEN. >> 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.
>> I UNDERSTAND WE HAVE TWO AWARDS TODAY.
MISS WIDM AYE AND MISS WOLFE ARE TO PRESENT.
>> GOOD AFTERNOON CHAIRMAN. MR. TOMPECK, BOARD MEMBERS, I AM HERE TO PRESENT THE BUILDING STRONG COMMUNITIES AWARD. THIS AWARD WAS GIVEN TO FPUA AT THE ANNUAL FLORIDA MUNICIPAL ELECTRIC ASSOCIATION ENERGY CONNECTIONS CONFERENCE.
ON NOVEMBER 3RD. IT RECOGNIZES FPUA FOR MAKING VALUABLE INVESTMENTS THAT ENHANCE THE QUALITY OF LIFE IN OUR COMMUNITY. INCLUDED OUR CORP PRALT INVESTMENT SUCH AS FPUA CHARITABLE DONATIONS EVENT SPONSORSHIPS. THE WE-OP PROGRAM.
PUBLIC CHARGING STATIONS AND SUPPORTING PROGRAMS THAT CONTRIBUTE TO IMPROVING THE ENVIRONMENT.
THIS AWARD ALSO RECOGNIZES EMPLOYEE DRIVEN INVESTMENT IN OUR COMMUNITY LIKE VOLUNTEERISM, MONTHLY FOOD DRIVES, QUARTERLY ON SIGHT BLOOD DRIVES.
ANNUAL NEIGHBORHOOD CLEANUP AND SUPPORTING TOYS FOR TOTS AND CHRISTMAS ANGELS. THESE ARE JUST A FEW OF THE VALUABLE WAYS FPUA INVEST BACK INTO OUR COMMUNITY TO MAKE IT STRONGER. THANK YOU.
MR. TOMPECK, CHAIRMAN FEE, MEMBERS OF THE BOARD, I'M REALLY VERY PROUD TO COME BEFORE YOU TONIGHT TO SHARE THE AWARD FOR BEST PLACES TO WORK ST. LUCIE COUNTY.
THIS PRESENTED BY THE SAT. LOUIS YOI COUNTY FOR RESOURCE MANAGEMENT IN CONJUNCTION WITH PERSONAL DYNAMICS. THIS IS SIXTH YEAR THAT FT. PIERCE UTILITIES AUTHORITY HAS RECEIVED THIS AWARD. IT WAS BE-STOWED UPON US ON OCTOBER THE 28TH. WE ARE RESPOND TO 40 QUESTIONS SURVEY EACH YEAR IN AUGUST.
IT COME PATIENTS US AGAINST ALL OF THE OTHER APPLICANTS FOR THIS AWARD ON THINGS THAT GO BEYOND EVEN JUST BENEFIT OFFERINGS, BUT COVERS A WHOLE HOST OF WORKING CONDITIONS, THE MAKEUP OF OUR WORKFORCE, TURN OVER, PROMOTIONAL OPPORTUNITIES THINGS OF THAT NATURE. THIS IS TESTIMONY TO OUR EMPLOYEES WHO REALLY TRULY ARE THE ONES THAT MAKE IT A REALLY GREAT PLACE TO WORK. THANK YOU.
[A. SET THE AGENDA]
>> THANK YOU. >> MOVING TO THE AGENDA.
ARE THERE ANY NEW ITEMS THAT NEED TO BE ADDED TO THE
AGENDA, MR. TOMPECK. >> YES, AMENTIONED TO BOARD WE WOULD LIKE ADD ITEM FOR YOUR CONSIDERATION AND APPROVAL. THAT WILL BE ITEM G-3.
>>> I BELIEVE YOU HAVE A HAND OUT IN FRONT OF YOU FOR
THAT ITEM. >> DOES EVERYBODY HAVE THE HANDOUT? ARE THERE ANY OTHER ITEM THAT NEED TO BE ADDED TO THE AGENDA?
>> I MOVE APPROVAL WITH THAT CHANGE OF THE AGENDA.
>> DO WE HAVE A SECOND. >> SECOND.
[B. APPROVAL OF MINUTES]
HAS EVERYBODY HAD AN OPPORTUNITY TO REVIEW THE MINUTES FROM THE LAST MEETING.ARE THERE ANY CHANGES? >> MOVE APPROVAL.
[00:05:01]
>> SECOND. >> PLEASE CALL THE ROLL.
THE PUBLIC? IF SO PLEASE COME UP TO THE PODIUM AND STATE YOUR NAME. YOU HAVE THREE MINUTES TO SPEAK. DOESN'T LOOK LIKE WE HAVE
[D. CONSENT AGENDA]
ANYONE THAT WISHES TO APART. WE WILL MOVE ON TO THE CONSENT AGENDA. ANYBODY HAVE CHANCE TO REVIEW THE ITEMS ANY NEED FOR DISCUSSION?>> I MOVE APPROVAL. >> IS THERE A SECOND?
>> SECOND. >> PLEASE CALL THE ROLL.
>> I DON'T BELIEVE WE HAVE ANY LETTERS OF APPRECIATION SO WE WILL MOVE ON TO OLD BUSINESS.
IS THERE I OTHER TOPICS THAT WE NEED TO DISCUSS TODAY?
>> ALL RIGHT. DOESN'T APPEAR ANY OLD
[G.1. Bill Comparison for the Month of September 2021 – For Information Only]
BUSINESS. WE WILL MOVE ON TO ITEM G NEW BUSINESS. MR. TOMPECK.>> FIRST ITEM THIS AFTERNOON BILL COMPARISON FOR SEPTEMBER 2021. MICHELLE HARRIS WILL MAKE THIS INFORMATION PRESENTATION.
>> GOOD AFTERNOON. THANK YOU MR. TOMPECK.
CHAIRMAN FEE AND BOARD MEMBERS.
I AM PRESENTING TO YOU TODAY THE MONTHLY UPDATE ON THE COME PATIENTSON OF FLORIDA MUNICIPAL PUBLISHED BY FMEA AND THE LOCAL TREASURE COAST UTILITY BILLS FOR SEPTEMBER.
>> THIS FIRST GRAPH SHOWS THE COME PATIENTSON OF RESIDENTIAL ELECTRIC RATES FOR 1,000 KILOWATT HOURS OF CONSUMPTION FOR THE' MUNICIPAL UTILITY MEMBERS OF THE REQUIREMENT PROJECT. DISPLAYED ON THE BASE BILL AMOUNT. SEPTEMBER RATE 104.84 SHOWN WITH THE YELLOW BAR RANKS FPUA WITH THE LOWEST RATE FOR THIS GROUP FOR THIRD MONTH IN A ROW.
THAT'S VERY EXCITING. THIS GRAPH DISPLAYS THE COMPARISON FOR THAT SAME LEVEL OF CONSUMPTION BUT INCLUDES ALL THE MUNICIPAL UTILITIES IN THE STATE.
OUR SEPTEMBER BILL AT $104.84 RANKS FPUA THE FOURTH LOWEST RATE IN COMPARISON TO OTHER 31 MUNICIPAL UTILITY. JULY 6TH IN AUGUST WE WERE 5TH NOW WE'VE GONE DOWN ONE MORE SPOT TO 4TH THIS MONTH.
I LIKE THE TREND. IN SEPTEMBER WHILE FPUA MAINTAINED RATE 12 OF THE 31 IMPLEMENTED RATE CHANGES.
OVERALL IMPACT OF THE RATE ADJUSTMENT RESULTED IN INCREASE OF 92 CENT FOR AVERAGE AND INCREASE OF 94 CENTS FOR THE MUNICIPAL AVERAGE.
THIS GRAPH PRESENT AS SIMILAR COMPARISON BUT FOR THE CONSUMPTION OF 2500 KILOWATT HOURS.
FPUA SEPTEMBER BILL AT $264.80 RANKS UP THE NINTH LOWEST AMONG THIS GROUP. WE HAVE BEEN IN THE LOWER THIRD OF THIS CHART SINCE JULY WHICH IS ALSO UNPRECEDENTED. FPUA RATE FOR BOTH 1,000 KILOWATT HOUR FALL BELOW ALL THREE AVERAGES THE ARP AVERAGE. MUNICIPAL AVERAGE AND IOU AVERAGE. THE TABLEDY PLAYED SEPTEMBER COMPARISON OF THE AVERAGE RESIDENTIAL UTILITY BILLS ON THE TREASURE COAST. FPUA UTILITY BILL FOR ALL THREE SERVICES PROVIDE INSIDE CITY LIMITS IS SHOWN IN THE FIRST COLUMN IN BLUE. ALL OTHER BILLS IN THIS STABLE HAVE ELECTRIC SERVICES BY FP&L AND WATER AND WASTEWATER SERVICES. THE COMPARISON INCLUDES THE BILLS FOR AVERAGE CONSUMPTION FOR ELECTRIC, WATER AND WASTEWATER SERVICES FOR RESIDENTIAL CUSTOMERS. THERE'S NO RATE CHANGES SINCE THE AUGUST COMPARISON WAS PRESENTED.
ITEM HAS BEEN PRESENTED FOR INFORMATION ONLY.
BUT I WILL BE GLAD TO ADDRESS ANY QUESTIONS YOU
MAY HAVE. >> REAL QUICK QUESTION.
YOU MENTIONED THAT THE RATE THE RATES DON'T PICK UP THE CHANGES THAT RECENTLY FP&L PUT IN EFFECT.
>> IT WAS IN EFFECT I BELIEVE PRESENTED THAT IN JULY OR JUNE. THE RATE THAT HAPPENED INCREASE FOR FP&L INCLUDED HERE.
IT HASN'T CHANGED FROM LAST MONTH.
>> I SEE. >> ANY OTHER QUESTIONS?
>> I THINK WE BETTER ENJOY THIS WHILE WE CAN.
>> I THINK SO. >> WE'RE HOPING THAT EVEN THOUGH THE RATES GO UP WE WILL STILL RELATIVE STANDPOINT WE WILL BE WHERE WE ARE.
THAT'S WHAT WE ARE HOPING FOR.
[G.2. WRF Relocation Activities – For Information Only]
>> THE NEXT ITEM INFORMATION PRESENTATION BY BO HUTCHINSON ON THE WRF RELOCATION.
YOU RECALL BACK ON SEPTEMBER THE 7TH THAT YOU APPROVED THE PROGRESSIVE DESIGN BUILD CONTRACT.
AND WE WANTED TO GIVE YOU AN UPDATE ON WHAT'S HAPPENED
[00:10:01]
SINCE. >> THANK YOU MR. TOMPECK.
GOOD AFTERNOON MR. CHAIRMAN. MEMBERS OF THE BOARD.
AS MR. TOMPECK SAID I WILL GIVE YOU AN UPDATE ON WHAT WE BEEN UP TO SINCE THIS PROGRESSIVE DESIGN BUILD WAS EXECUTED. FIRST FOR MORE THE PUBLIC'S BENEFIT WHY ARE WE TAKING ON THIS ENDEAVOR MOVING THIS PLANT. THERE'S VERY OBVIOUS ENVIRONMENTAL BENEFITS. SEA LEVEL RISE.
THERE'S DIFFERENT OPINIONS ON HOW FAST IT'S HAPPENING.
IT'S DEFINITELY HAPPENING HURRICANES ARE INTENSIFYING.
IF YOU RECALL FEW YEARS AGO, THE HURRICANE THAT SAT ON THE BAHAMAS AND COMPLETELY DEVASTATED THAT WAS SUPPOSED TO COME HERE. IF IT HAD COME HERE WE COULD HAVE BEEN HAD A DIFFERENT CONVERSATION TODAY.
OR COUPLE OF YEARS AGO TO BE HONEST WITH YOU.
THAT IS HAPPENING AS WELL. WE ARE ALSO ONE OF TEN FACILITIES THAT IS ON THE DEP'S I DON'T WANT CALL HIT LIST. THAT'S WHAT WE CALL IT.
THAT ARE ON THE INDIAN RIVER LAGOON AS FAR AS THIS GOES.
WHEN YOU PUT THE FACTORS TOGETHER IT'S ONLY A MATTER OF TIME BEFORE THE DEP STOPS ASKING AND STARTS TELLING TO RELOCATE THESE PLANTS OFF OF OUR SENSITIVE ESTUARIES.
THE OTHER SIDE OF THIS IS THE ECONOMIC BENEFITS.
TO THE RELOCATION IN THIS PLAN.
IT HAS TO DO WITH REUTILIZATION OF THE PROPERTY ITSELF. AND THERE IS NOT JUST EXCLUSIVE TO THE FPUA PROPERTY BUT ALSO THE SURROUNDING PROPERTIES. IMMEDIATELY TO THE EAST WE HAVE PRIVATE PROPERTY AND THEN ST. LUCIE COUNTY ON THE NORTH SIDE OF THE BRIDGE AS WELL AND ALL OF THOSE PROPERTIES WILL JUST GAIN VALUE TREMENDOUSLY WHEN THIS HAPPENS. THE SITE PLAN THAT YOU SEE HERE WAS CREATED A WHILE BACK RED TAIL DESIGN GROUP.
IT SHOWS MORE OF A I WILL CALL IT A MAXIMUM UTILITIZATION OF THE PROPERTY SOMETHING THAT WOULD GET US A VERY GOOD ROI ON THE INVESTMENT THAT WE PUT OVER THERE. HOWEVER, WE DON'T KNOW.
IT'S MY JOB TO DELIVER SOME CLEAN DIRT TO THE CITY AND THE PLANNERS THAT KNOW HOW TO DEVELOP PROPERTY.
SO ANY WAY DON'T GET HUNG UP ON THE PICTURE.
BUT JUST IN ORDER TO QUANTIFY THAT.
WE LOOK AT UTILIZATION OF THE PROPERTY AND CONSERVATIVE MANNER SIMILAR TO HARBOR ISLES.
EVEN WITH SOMETHING THAT CONSERVATIVE IT'S STILL GOT US A COST BENEFIT RATIO OF ABOUT 4-1.
AND CREATED ALMOST 600 DIRECT AND INDIRECT JOBS.
THAT'S VERY IMPORTANT ESPECIALLY FOR OUR COMMUNITY WHERE JOBS ARE VERY IMPORTANT.
SOMETHING WE CAN DEFINITELY USE BUT ALSO IT OPENS US UP FOR ECONOMIC OPPORTUNITY GRANTS FROM THE DEPARTMENT OF ECONOMIC OPPORTUNITY. WE HAVE A GRANT NOW PUT THE SEWER IN THERE TO CREATE JOBS THERE AS WELL.
THIS COULD FOLLOW RIGHT IN THOSE FOOTPRINTS ANYWAY.
>> OKAY. SO THIS IS THE MOST USED SLIDE AND FPUA HISTORY. THE ONLY PART I WANT TO TOUCH ON HERE IS THE TWO DEEP INJECTION WELL THAT FMPA AND FPUA2012.5 MILLION ON.
THAT WAS 15 OR 16 YEARS. THE NUMBERS ARE 16 MILLION DOLLARS APIECE. I JUST WANTED TO POINT THAT OUT JUST THE VALUE THAT WE ALREADY HAVE SITTING THERE ON THIS PROPERTY. PROGRESSION, THE CONTRACTOR EXECUTED ON SEPTEMBER 7TH. WE HAD OUR KICK OFF MEETING ON OCTOBER 14TH. ALTHOUGH WE HAD BEEN WORKING PRIOR TO THAT, THAT WAS OFFICIAL KICK OFF MEETING.
MR. TOMPECK WE SAT DOWN WITH ST. LUCIE COUNTY STAFF ON OCTOBER 20TH TO GIVE THEM AN UPDATE ON WHAT WE ARE DOING.
IT'S OUR GOAL TO KEEP THEM INFORMED.
AS WE GO FORWARD WITH THIS. TO KEEP THEM ON AS THE PARTNER. WE POTENTIALLY CAN.
WE HAD OUR FIRST WORKSHOP HAVING TO DO WITH THE RECLAIMED OR IRRIGATION WATER.
THE WATER QUALITIES WILL BE REQUIRED FOR THAT.
AND ALSO THE COOLING TOWER WATER FOR THE FMPA POWER PLANT. THOSE ARE TWO DIFFERENT WATER QUALITIES WE NEED TO PRODUCE.
WE ALSO DISCUSSED THE DEEP INJECTION WELLS THAT LED INTO A DISCUSSION ON SOME TESTING THAT NEEDED TO BE DONE. I'LL TOUCH ON THAT A LITTLE BIT LATER ON. AND THEN ON THE THIRD OF THIS MONTH WE HAD OUR FIRST REAL DISCUSSION ON FINANCING. I'LL TALK ABOUT THAT AGAIN IN A LATER SLIDE AS WELL. AND THAT QUICKLY CAME TO THE TOP AS THE CRITICAL PATH FOR THIS ENDEAVOR.
AS IT HAS BEFORE. >> THE WASTEWATER SAMPLING GOING ON FOR A COUPLE OF WEEKS NOW.
OVER AT THE IWRF. AND THIS WEEK WE ARE
[00:15:03]
SAMPLING THE BLOW DOWN COMBINED WATER.AT THE DEEP INJECTION WELL. TOMORROW WE HAVE ANOTHER WORKSHOP ON SECONDARY PROCESS.
THIS IS REALLY THE MEAT AND POTATOES OF THE PROJECT.
THIS WILL PROCESS THE WASTE. THIS WILL DICTATE THE FOOTPRINT AND MANY OTHER FACTORS WILL COME RIGHT BEHIND THIS WORKSHOP. OTHER WORK THAT'S HAPPENING ON PARALLEL PATH. CONVEYANCE SYSTEM.
WE HAVE TO GET THE WASTEWATER NWRF.
WE SELECTED A METHODOLOGY. OUR STAFF RECOMMEND WE DO ANOTHER PROGRESSIVE BUILD CONTRACT.
MR. CARNES AND I HAVE INTERVIEWED DESIGN BUILD CONTRACTORS SO FAR. WE ARE ALSO ADVERTISING IN THE NEAR FUTURE FOR ADDITIONAL PROGRESSIVE CONTRACTORS. WE WOULD LIKE TO TALK TO A FEW. SEE WE CAN MAKE THE SELECTION THERE. PUBLIC OUTREACH AND EDUCATION MANY WOULD SAY WHY WOULD WE DO THAT WHEN THIS SOMETHING WE HAVE TO DO. WELL IT'S VERY IMPORTANT TO EDUCATE THE PUBLIC ON WHAT WE ARE DOING AND WHY WE ARE DOING IT. THERE ARE GOING TO BE RATE INCREASES THAT WILL BE INVOLVED IN THIS AND THE MORE EDUCATION THAT WE HAVE ON THIS THE MORE SUPPORT WE CAN GET BEHIND IT AND WE CAN DEMONSTRATE THAT THIS INVESTMENT IN THE FUTURE AND IT'S NOT JUST A COST.
THAT'S THE MAIN MESSAGE WE WOULD LIKE TO GET OUT THERE.
TO THAT END, WE ARE NEGOTIATING A SCOPE OF SERVICES WITH CAN VOLUNTEER AND JONES THE FIRST THAT HELP ST. LUCIE COUNTY GET THE HALF CENT SALES TAX PUSHED THROUGH. WE CAN SEE THE IMPROVEMENT THAT ARE BEING MADE WITH THAT MONEY.
THEY ARE FAMILIAR WITH OUR AREA AND DEMOGRAPHIC.
THEY WILL HELP WITH OVERALL MARKETING STRATEGY.
WE ALSO HAVE RED TAIL DESIGN GROUP UNDER CONTRACT TO HELP WITH THE COMMERCIALS THEY ARE DIFFERENT APPROACH.
THE ONE MORE ON TECHNICAL SIDE AND THE OTHER ONES MORE ON THE THE EMOTIONAL PUBLIC OUTREACH SIDE.
BY PUTTING THOSE TOGETHER WE CAN BE SUCCESSFUL WITH THAT MARKETING STRATEGY. WASTEWATER COLLECTION FACILITIES. CURRENTLY, THE WASTEWATER COLLECTION DEPARTMENT THE HOUSED AT THE IWRF.
THEY WILL BE HOMELESS WHEN WE POLICE OFFICER THIS PLANT. WE'RE GOING TO HAVE FIND NEW LOCATION FOR THEM. WE WILL START WITH NEEDS ASSESSMENT TO SEE WHAT TYPE OF SQUARE FOOTAGE THEY NEED AND FOOTPRINT FOR THEIR TRUCKS AND GENERATORS AND THAT GOOD STUFF. WE OWN A PIECE OF PROPERTY ACROSS THE STREET FROM ESC. THEY ARE ON 37TH STREET.
MR. CISNEROS HAD A FEW IDEAS WHAT WE CAN DO THERE MORE OF THE CAMPUS SOME TYPE EFFECT. THAT WILL ROLE INTO SIGHT PLANNING AND GENERAL FACILITY PLANS TO STAY AHEAD OF THAT AS WELL. IT'S A PARALLEL PATH.
MWRF LAND PREPARATION. AS OF NOW THE SIGHT COMPLETELY OVERGROWN IN 30-FOOT TALL PEPPER TREES.
TOO THICK TO GET THE SOIL TRUCKS IN THERE.
IN THE VERY NEAR FUTURE, WE ARE RENTING A MASSIVE LOADER AND WE'RE GOING TO CLEAR THE SITE.
IT WILL BE GREAT. IT WILL BE A LOT OF FUN ACTUALLY. MAYOR, MAYBE YOU WANT THE
COME OUT AND HELP. >> ABSOLUTELY.
I WOULD LOVE TO. >> WE WILL TAKE YOU UP ON THAT. ALSO FOR THE TESTING THAT I MENTIONED DEEP INJECTION WELLS.
THAT'S GOING TO TAKE A TREMENDOUS VOLUME OF WATER.
AND IT'S SEEMS LIKE THE BEST WAY TO DO THAT JUST TO DIG TEMPORARY POND. WHAT WE HAVE BEEN DISCUSSING THIS WITH SOME OF THE CITY STAFF AND THEY WILL BE VERY HELP. WITH THAT I BELIEVE BEING THIS TEMPORARY POND AND IT'S NOT PART OF SITE PLAN AS OF YET. I HOPEFULLY WE CAN GET SOME KIND OF CONDITIONAL PERMIT ON THAT.
WE'RE WORKING ON THAT AS WELL.
SHORT-TERM FUNDING NEEDS. NOW THIS LIST IS NOT IT'S NOT ALL INCLUSIVE. BUT THIS IS WHERE WE ARE NOW. THESE DIFFERENT ITEMS SEEM TO POP UP WHEN WE HAVE WORKSHOPS.
THIS HAS TO DO AGGRESSIVE TIME FRAME THAT WE'RE PURSUING WITH GETTING THIS DONE.
IF YOU RECALL WHEN WE FIRST STARTED TALKING ABOUT AND WE BROUGHT A FINANCIAL PLAN TOGETHER WITH PARTNERSHIP WITH ST. LUCIE COUNTY. WE HAD STRETCHED OUT OVER FIVE YEARS. WHERE THE RATE INCREASES WOULD BE MUCH SMALLER AND MUCH INCREMENTAL.
MUCH SMALLER INCREMENTS OVER A LOT OF TIME WHERE YOU WOULDN'T FEEL AS MUCH ON THE RATES AND ALSO IT WOULD FUND ALL OF THE SHORT-TERM FUNDING NEEDS AS WE WERE MOVING IN THAT DIRECTION. WELL THIS TIME FRAME DOES NOT FACILITY THAT. WE NEED TO MOVE A LITTLE BIT MORE AGGRESSIVELY. I CAN GO THROUGH THESE IF ANYBODY HAS QUESTIONS AT THE END.
WE CAN TALK ABOUT THESE. BASICALLY WE'VE BEEN ABLE TO TOTAL UP A LITTLE BIT OVER 9 MILLION SO FAR.
AND WE'LL PROBABLY HAVE A FEW MORE MILLION ON THERE BEFORE IT'S SAID AND DONE. THIS ALL WORK THAT HAS TO BE DONE. IN THE BIG PICTURE BUT IN ORDER TO KEEP THIS MOVING THESE ARE THINGS THAT WE NEED TO BE DOING EARLY ON SOONER THAN LATER.
[00:20:06]
>> OKAY. OPTIONS, FIRST OFF IS BUDGET FLEXIBILITY. THIS HAS BEEN A TOPIC OF DISCUSSION FOR MANY YEARS THAT WE DON'T SPEND OUR ENTIRE BUDGET AND THAT IS VERY TRUE.
WE USUALLY SPEND SOMEWHERE AROUND 60% OF THE BUDGET.
AND REALLY WHAT HAPPENS IS YOU HAVE MULTIPLE PROJECTS THAT ARE ON YOUR LIST MANY OF THEM ARE DOT, CITY COUNTY PROJECTINGS YOU HAVE A LOT OF DIFFERENT MOVING PIECES THERE WITH THE CONTROL OF THOSE PROJECTS.
YOU ALLOCATE MONEY THAT SITS THERE IN YOUR BUDGET AND IF THE PROJECT DOESN'T MOVE FORWARD, IT STILL SITTING THERE IN YOUR BUDGET. WE'RE LOOKING AT A LITTLE BIT OF DIFFERENT METHODOLOGY THERE WERE WE WOULD POTENTIALLY NOT FULLY FUND ALL OF THESE PROJECTS AND PUT SOME OTHER AVENUES IN SPECULATION WITH THE BOARD WHERE THE BUDGET TRANSFER FOR ALL THE APPROVED PROJECT COULD BE HANDLED ON MORE EFFICIENT MANNER.
THIS WILL BASICALLY FREE UP MONEY IN OUR EXISTING BUDGET TO HANDLE SOME OF THESE EARLY WORK ITEMS AS WELL.
NEXT TO BARR BORROW THE MONEY.
BY OUR CHARTER WE'RE ALLOWED TO DO THAT.
THAT WOULD BE MOST LIKELY STRUCTURED WHERE WE WOULD HAVE LARGE BUILDING NEAR THE END AND MAYBE INTEREST ONLY PAYMENTS IN THE BEGINNING UNTIL WE GET UP TO THAT POINT. AT THAT POINT IT WOULD BE WRAPPED INTO THE LARGER FINANCING OF THE ENTIRE PLANT. TE NEXT ONE IS THE POTENTIAL CREATING A SUBAUTHORITY.
THIS AGAIN IS VERY SIMILAR TO THE METHODOLOGY WHERE WE WOULD TECHNICALLY BE -- WE WOULD HAVE SEPARATE ENTITY THAT WOULD BE CONTROLLED BY THE FPUA BOARD IN THAT PARTICULAR CASE BY THE ST. LUCIE COUNTY COMMISSION AS WELL. BY DOING THAT IT MAY OPEN UP OTHER AVENUES INTO SOME OTHER FUNDING FLEXIBILITY WITH THIS AS WELL. THAT COULD BE ON THE SHORT TERM AND THE LONG TERM. THE NEXT ONE WOULD BE USING THE CITY OF FT. PIERCE AS TO PARTNER WITH US AS MORE OF FUNDING CONDUIT. THAT SEEMS LIKE IT MIGHT BE A LITTLE BIT PROBLEMATIC. BECAUSE IT COULD POTENTIALLY TIE UP ALL THE BORROWING ABILITY THAT THE CITY HAS.
IT'S STILT SOMETHING TO EXPLORE.
THE NEXT OPTION TO INTEGRATE FINANCING AND PROGRESSIVE DESIGN BUILD WHERE YOU ADD THE F AT THE END FOR
FINANCE. >> THAT COULD BE DONE IN SHORT TERM WHERE THEY WOULD BORROW THE MONEY ON OUR BEHALF, THEY WOULD DO THESE EARLY WORK PACKAGES AND THEN AT THE POINT THAT WE GET TO OUR OVERALL FINANCING OR OVERALL BONDING, IT WOULD GET PAID BACK TO THE CONTRACTOR. YOU CAN EXTEND THAT FURTHER AND YOU CAN HAVE THE CONTRACTOR EFFECTIVELY FUND THE ENTIRE PROJECT THE DIFFERENT THERE AT THE END THEY COULD TECHNICALLY OWN THE PLAN AND LEASE IT BACK TO US TO OPERATE. IT'S JUST IT'S A LITTLE BIT MORE MOVEMENT OF THE MONEY. AND KEEP IN BEHIND EVERY TIME THAT THE MONEY TOUCHES A HAND, IT GETS MORE EXPENSIVE. WE WANT TO KEEP THAT IN MIND AND TRY TO GET THE VERY BEST VALUE FOR FINANCING THIS MONEY. ULTIMATELY, WE'LL HAVE TO BOND THE ENTIRE PROJECT OTHER THAN THIS, OF COURSE, AND IT WILL REQUIRE RATE INCREASE AS WE'VE BEEN TALKING ABOUT. AS WE GET CLOSER TO 30% DESIGN, WE SHOULD BE ABLE TO COME UP WITH SOME PRELIMINARY NUMBERS TO TRY TO STAY AHEAD OF THIS.
AND THE SOONER THAT WE ARE ABLE TO IMPLEMENT THE RATE INCREASES THE SMALLER THEY CAN BE.
AND WE'LL BE ABLE TO REALLY LOOK AT MORE OF RAMPING UP METHODOLOGY TO THAT AS WELL. SIMPLE FACT IT'S COMING.
WE HAVE TO RAISE RATES TO RELOCATE THIS PLANT.
YOU HAVE TO KEEP IN MIND THIS INVESTMENT IN THE FUTURE. NOT JUST A COST.
THAT'S THE END OF THE PRESENTATION.
AND I WILL BE HAPPY TO ANSWER ANY QUESTIONS.
>> ANY QUESTIONS OF THE BOARD?
>> I HAVE A QUESTION. YOU GUYS BELT MET WITH THE
WHAT WAS THE FEEDBACK. THE COUNTY THEY ARE THEY ARE KEEPING ALL THEIR OPTIONS OPEN.
TO BE HONEST WITH YOU. THEY HAVEN'T CLOSED THE DOOR ON THIS. THEY HAVE A PARALLEL PATH AS WELL. WITH BASICALLY BUILDING THEIR OWN PLANT BY THE AIRPORT AS WELL.
I BELIEVE THAT WITH THE ACCELERATED TIME LINE WE'RE ON HERE THAT WE WOULD BE A LITTLE BIT AHEAD OF THEM.
AND THAT WOULD POTENTIALLY CREATE MORE OF AN OPPORTUNITY TO BRING THEM BACK ONBOARD.
>> I DIDN'T ACTUALLY SEE LIKE ACTUAL TIME LINE.
WHAT IS THE DATE NOW THAT WE'RE LOOKING AT.
>> WE'RE STILL LOOKING AT THE VERY END OF 2024.
>> OKAY. >> AND I HAVE TO PUT AN ASTERISK ON THAT. BECAUSE ACROSS NOT EVEN JUST OUR INDUSTRY BUT ALL INDUSTRIES WE HAVE SUPPLY CHAIN ISSUES. HOPEFULLY THAT'S RESOLVED BY THE TIME THAT WE START TURNING DIRT ON THE PLANT.
BUT YOU HAVE TO KEEP IN MIND, TOO WE HAVE CONVEYANCE SYSTEM AS WELL. THAT'S A LOT OF PIPE.
THAT'S A LOT OF PUMPS AND VALVES AND A LOT OF MANPOWER THAT HAS TO COME INTO THAT TOO.
[00:25:02]
I HAVE TO BUT ASTERISK ON IT.WE WILL PUT THE HAMMER DOWN AND TRY TO MAKE THAT HAPPEN.
>> BY THE END OF 2024 DATE THAT'S WHEN WE HOPE TO BE ABLE TO START DECOMMISSIONING THESE
EXISTING PLANT? >> PROBABLY WOULDN'T BE ABLE TO START DECOMMISSIONING RIGHT THEN.
ONCE THIS NEW PLANT IS COMMISSIONED AT THE END OF 2024. ON OUR PARALLEL PATH WE WOULD HAVE BEEN DOING CONVEYANCE SYSTEM.
THE CONVEYANCE SYSTEM WE'LL HAVE WHOLE SEPARATE PRESENTATION ON THAT. BUT THAT WILL BE TAKEN OFF OF THE EXISTING PLANT AND PUT ON THE NEW PLANT AND LITTLE LOGICAL PIECES. YOU WILL PUT SOME FOIL ON THE NEW PLANT. YOU WILL TEST IT GO THROUGH A PROCESS THERE AND YOU PUT MORE ON.
WE WILL DO IT STEP-BY-STEP. THE REALITY IS THAT WE'RE GOING TO DO THAT AND GET BASICALLY EVERYTHING OFF OF THE EXISTING PLANT GOING TO THE NEW PLANT BUT WE STILL HAVE LIFT STATION A WHICH THAT WILL BE -- THAT'S THE BIG ONE. THAT'S THE FINAL SWITCH THAT WE THROW. THERE'S GOING TO BE SOME OVERLAP THERE THAT WE HAVE TO OPERATE BOTH PLANTS.
BEST CASE SCENARIO IS THAT'S A YEAR.
NOW DURING THAT YEAR, AND AGAIN THAT'S BEST CASE SCENARIO COULD TAKE LONGER. WE WOULD BE ABLE TO START DECOMMISSIONING THE OTHER PLANT.
START TO SOME OF THE DEMOLITION IF THERE'S SOIL REMEDIATION WE CAN START ON THAT EARLY AS WELL.
>> IF I ADDED UP THE TIME LINE CORRECTLY, BEST CASE SCENARIO BEGINNING OF 2026 WE WOULD HAVE IT READY TO TURN OVER TO SOMEONE TO DEVELOP?
>> AS OF RIGHT NOW. PRELIMINARILY, YES.
SHORT-TERM CASH NEEDS. DO THEY HAVE OPTION WHAT
>> KEEP GLOBAL TECH CAN HELP US WITH THAT.
>> YES. THEY CAN HELP WITH THAT.
FOLLOW UP QUESTION MR. TOMPECK.
HOW MUCH MONEY DO UV HAVE IN CASH RESERVES.
>> I LOOK YOU PROBABLY KNOW THE ANSWER BETTER THAN I.
PROBABLY ABOUT 23 MILLION. >> THAT'S REALLY SOURCE OF FUNDS THAT WE DON'T WANT TO TAP INTO.
AT THAT AMOUNT. >> THE NEXT AGENDA ITEM WE'RE TAPPING INTO IT. YOU WILL FIND OUT.
>> I KNOW. I SAW THE DOWNWARD COIN.
TIMING IS EVERYTHING OF COURSE.
>> ANY OTHER QUESTIONS >> I HAVE A QUESTION.
IN OUR BUDGETING YEAR. DO WE GO BACK AND SAY THIS PROJECT IS NEVER GOING TO HAPPEN.
I CAN'TY OF ANYWHERE OFF THE TOP OF MY HEAD THAT
DISAPPEARED. >> EXTENDED FOR GOOD OF ENTIRE SYSTEM THAT TO ALLOCATE TOWARD THE DEVELOP.
THE DEVELOPMENT DOESN'T MOVE FORWARD THE INFRASTRUCTURE DOESN'T GET BUILT. THAT WOULD BE ONE EXAMPLE.
IT'S VERY RARE. >> SO ARE WE TALKING 23 MILLION IS THAT REFERRED TO AS -- UNRESTRICTED.
>> BUT THAT'S KIND OF MISLEADING.
BECAUSE IT ISN'T -- IT IS IN THERE FOR SOMETHING.
>> THAT'S IN THE GENERAL FUND.
THAT'S UNRESTRICTED. WE CAN USE THAT AS WE DESIRE. THAT'S WHERE WE LIKE TO BE.
I THINK BY WE HAD TO HAVE AT LEAST 45 DAYS VERY MINIMUM.
THAT WHAT WE LOOK AT. THE MONEY WE CAN SPEND ANY WAY WE -- ANY WAY THE BOARD APPROVES.
>> OKAY. WE JUST -- WE TAKE THE RISK IF WE DO THAT SOMETHING COMES UP WE DON'T HAVE
[00:30:01]
ENOUGH CASH TO DO DEAL WITH DISASTER OR OR SOMETHINGTHAT WE REALLY NEED. >> WE RESTRICTED MONEY FOR HURRICANES THAT'S NOT PART OF THAT.
>> AND BACK ON THE SLIDE WHERE YOU WERE TALKING ABOUT PROGRESSIVE DESIGN BUILD AND THEN FINANCE.
THEY WOULD FINANCE IT. IS THERE -- WHAT'S THE -- COULD THERE BE AN ADVANTAGE TO THAT.
THAT TURNS TO ALMOST P-3; RIGHT EQUAL
>> IT'S VIRGIN. IT'S ON IF YOU RECALL PRESENTATION FROM MANY MONTHS AGO WHERE I SHOWED WERE AT PROGRESSIVE DESIGN BUILD AND THE NEXT ONE YOU ADD THE F WHICH IS FINANCING.
FINANCING ELEMENT. THAT REALLY AGAIN HAS TO DO WITH SPEED IN WHICH YOU CAN GET IT DONE.
THOSE ARE VERY ADVANTAGEOUS. LET'S SAY THE HURRICANE DID COME AND SIT ON US. OUR PLANT WAS DEMOLISHED AND WE HAD TO SPEND MONEY AS FAST AS WE CAN.
THEY GET THE MONEY FASTER THAN WE CAN.
THEY CAN'T ALWAYS TAP INTO THE SAME LOAN POOLS THAT WE'RE ABLE TO. THE TERROR RATES MIGHT BE A LITTLE BIT HIGHER. BUT HONESTLY UNTIL YOU REALLY PUT IT OUT ON PAPER AND LOOK AT THE REAL OPTIONS, WE REALLY DON'T KNOW.
JUST AS THE GENERAL RULE OF THUMB IT'S A LITTLE BIT MORE EXPENSIVE. I DON'T KNOW HOW TO QUANTIFY
EXACTLY HOW MUCH MORE. >> RIGHT.
>> AND BECAUSE THEN YOU SAID IF THEY -- IF WE DID THAT THEN AT THE END, THEY WOULD BE -- THEY WOULD OWN THE PLANT. ISN'T THAT WHAT YOU SAID?
>> YES, MA'AM. THERE'S TWO SCENARIOS.
ONE SCENARIO WE WOULD ONLY USE THE CONTRACTOR BORROW THE SHORT-TERM MONEY. THE 1, 12 MILLION THAT WE NEED. AND WHEN OUR BONDING MONEY COMES IN LATER ON, PAYING THEM BACK PAYING THAT LOAN OFF WOULD BE A PIECE OF THT.
>> AND THEN THE OTHER OPTION IS TO SAY, THIS IS WORKING SO GOOD. WE WILL HAVE ONE PERCENT BY OUR OWN MONEY. BY USING THEIR MONEY WE USE 1.1%. HOW MUCH DOES THAT EFFECT US. I'M JUST MAKING UP NUMBERS THERE. BUT IT MAY NOT BE THAT SIGNIFICANT WHICH CASE YOU GO HEY CONTRACTOR.
LET'S GO AND HAVE YOU FINANCE THE WHOLE THING.
AND THEN IN THAT CASE AT THE OWNED OF THE PLANT WHEN IT'S COMMISSIONED. THEY WOULD TECHNICALLY STILL OWN IT. BUT THEY WOULD LEASE IT BACK TO US TO OPERATE. THAT WAS A BIG COMPONENT THAT STAFF KIND OF HAD A PROBLEM WITH WAS HAVING INDEPENDENT ENTITY OPERATE THAT PLANT.
>> AND STEVES AT THE FLORIDA LEAGUE OF CITIES CONFERENCE AND MENTIONED THE FT. PIERCE UTILITIES AUTHORITY AND THE IMPORTANCE OF GETTING IT OFF THE ISLAND.
I'M ASSUMING THAT HE -- WHAT YOU ARE TALKING TO HIM ABOUT IS KIND OF THE MESSAGING AND HELPING US EDUCATE?
>> YES, MA'AM. >> RATE PAYERS OUT THERE WHO REALLY THIS THE NOT TOP OF THE MIND THING FOR THEM ALTERNATE ALL. I'M ASSUMING THAT'S WHAT HE WILL HELP US DO. YES,MA'AM.
IN VERY NEAR FUTURE WE'LL HAVE A SCOPE BEFORE YOU CAN TAKE A LOOK AT AND IT INCLUDES EVERYTHING FROM WEB SITE THAT WOULD HAVE ALL THE INFORMATION ON THEREMENT.
POTENTIALLY DOING A SMALL SURVEY TO FIND OUT WHAT HOUR CUSTOMER FEELS ABOUT THIS PROJECT NOW.
DO THEY CARE ABOUT IT. NOT CARE ABOUT IT? FINDING OUT WHAT'S IMPORTANT TO OUR CUSTOMER WHEN YOU TALK ABOUT UTILITY OTHER THAN KEEPING RATES LOW.
WE KNOW THAT'S PARAMOUNT. AND THERE'S QUITE A FEW OTHER FACTORS. THERE'S EVERYTHING FROM MAILOUTS. THERE'S ASSISTANCE WITH THE PRESENTATIONS, THERE'S ASSISTANCE WITH WHEN WE'RE UP IN TALLAHASSEE ASKING FOR MONEY.
OR WE'RE UP IN WASHINGTON ASKING FOR MONEY.
THEY WILL ASSIST WITH THAT. BASICALLY, THEY ARE -- THEIR CONCEPT. ALTHOUGH IT'S ITEMIZED AS TO WHAT IT IS, IS TO HELP US WITH WHATEVER THAT WE NEED.
BECAUSE IT'S A DYNAMIC PROCESS WHEN YOU START THAT MARKETING EFFORT. YOU MAY FIND OUT I THINK I KNOW WHAT OUR PEOPLE THINK ABOUT MOVING THAT PLANT.
DO I? I COULD BE COMPLETELY WRONG.
WE COULD GO OFF IN THE COMPLETERY WRONG
DESTRUCTION. >> YOU ARE DEEP INTO IT.
>> EXACTLY. >> I THINK HE HAS A LOT OF CONTACTS PARTICULARLY IN TALLAHASSEE.
I THINK THAT'S -- THAT'S A REAL GOOD FIT AND I WAS VERY PLEASED THAT HE MENTIONED IT.
BECAUSE HE WAS TALKING ABOUT FUNDING AND HOW YOU WORK WITH YOUR LEGISLATOR AND IF THEY HELP WITH YOU PROJECT WHICH HE MENTIONED REPRESENTATIVE TREBULSI.
YOU DIDN'T WANT TO GO TOO HARD AT HER ABOUT OTHER THINGS SHE'S VOTING FOR THAT YOU DON'T LIKE.
BECAUSE YOU DON'T WANT TO MESS UP YOUR FUNDING.
IT'S I WAS PLEASED THAT YOU WERE TALKING TO HIM.
[00:35:01]
I THINK HE KIND OF KNOWS HIS STUFF.THAT'S GOOD. >> VERY GOOD; VERY GOOD.
HE'S PRETTY MUCH -- HE'S PRETTY MUCH THE EXPERT ON THIS. YOU KNOW, IF YOU WILL WIN
THE GAME, STACK YOUR TEAM. >> RIGHT.
ABSOLUTELY. >> I KNOW I KEEP BRINGING UP GRANTS. BUT YOU KNOW IT'S LIKE REALLY A BIG DEAL. THREE MONTHS YOU SAID; RIGHT? MAYBE WE'LL HAVE IDEA WHAT KIND OF GRANT MONEY WE WILL AND THOSE MEETINGS OR --
>> I THINK BY DECEMBER WE'LL HAVE A PRETTY GOOD OUTLYING OF THE APPLICATION TAME FRAMES SOME LIKELIHOODS AND PROBABLY SOME WORK FOR THE INFORMATION THAT WE NEED TO PROVIDE FOR THE GRANTS. EACH GRANT HAS ITS OWN PERSONALITY. I WAS TALKING ABOUT THE ECONOMIC DEVELOPMENT GRANTS OR THE ENVIRONMENTAL GRANTS.
YOU HAVE TO MARKET THE DIFFERENT SIDE OF YOUR PROJECT COMPLETELY DIFFERENT TO THOSE.
I THINK BY DECEMBER, THE CONSULTANT HAS ALREADY IDENTIFIED A GOOD LIST OF GRANT OPPORTUNITIES.
AND WE'RE DEFINITELY GOING TO GO FISHING FOR ALL OF THEM. BUT EACH ONE WILL TAKE ITS OWN LITTLE OWN EFFORT. IN ALL REALITY TO GET THERE.
THE FASTER WE GET OUR BAIT IN THE WATER, THE BETTER.
>> FOR SURE. >> YOU WERE SPEAKING ABOUT WE WERE THINKING ABOUT BORROWING THE MONEY.
AT WHAT PERCENTAGE RATE HAVE YOU ALL LOOKED INTO THAT, THAT WE WILL BE BORROWING THIS MONEY AT?
>> ON THE PRIVATE MONEY? NO, MA'AM.
NO, MA'AM. I DON'T REALLY DON'T KNOW WHAT'S AVAILABLE. THE THING THAT WILL HURT US ON INTEREST RATE THE FACT IT'S TWO-YEAR LOAN.
I MEAN, THE LENDER HAS TO MAKE EVEN BOTTOM DOLLAR AMOUNT OF MONEY HAS TO MAKE IT BACK IN TWO YEARS.
IF THAT'S ALL WE PUT OUT THERE.
THAT BUMPS THE INTEREST RATE A LITTLE BIT MORE FOR SURE.
I CAN'T SPECULATE ON IT. BUT WE WON'T GET THAT ON A
SHORT-TERM LOAN. >> ALSO YOU SAID THAT DECEMBER WE'LL KNOW ABOUT THE GRANTS.
WILL WE KNOW THEN ABOUT WHAT THE RATE PAYERS WILL BE KIND OF LOOKING AT, THE INCREASE? I THINK -- FROM WHAT THEY
WILL BE PAYING? >> POST LIKELY WE LOOK MORE TOWARD THE APRIL RANGE WHEN WE GET TOWARDS THE END OF THIS FIRST PART OF THE PROGRESSY DESIGN BILL TO GET US TO 30%. AND THE 15% COST ESTIMATE.
15% ACCURACY ON COST ESTIMATE.
AND AT THAT POINT, MAYBE A LITTLE BIT BEFORE IF WE CAN JUMP THE GUN WE WILL. THIS IS ONE OF THE MAIN QUESTIONS THAT KEEPS COMING UP RIGHTLY SO.
AND WE'LL BE ABLE TO DO THAT IN EXTRAPOLATE WHAT WE NEED TO HAVE FOR THE LET'S SAY WORST CASE SCENARIO.
THE GRANTS WON'T BE AWARDED UP FRONT.
IF WE HAVE A WORST CASE SCENARIO THAT WE HAVE GO BORROW 110, 120 MILLION WHATEVER THAT NUMBERS HAPPENS TO BE THEN A GRANT I LIKE YOUR NUMBERS LAST TIME.
WHATEVER THOSE GRANTS HAPPEN TO BE, WE TAKE THAT RIGHT OFF THE TOP AND WE CAN EXTRAPOLATE DOWN.
IMPORTANT WHEN WE LAY OUT THE RATE INCREASES EVEN ALTERNATE THAT POINT THAT EVERYBODY UNDERSTANDS THAT ONCE QUESTION GO DOWN THIS ROAD, WE CAN'T JUST GO HEY, I HAVE TO CHANGE MY MIND. AND WE THROW 15 MILLION WORTH OF WORK AWAY. THAT'S THE POINT WHERE WE REALLY HAVE TO MAKE THAT HARD DECISION.
>> LAST QUESTION. YOU MENTIONED THAT THERE ARE 10 PLANTS THAT FDEP ARE LOOKING AT.
AS FAR AS KIND OF BEING ON THEIR RADAR FOR BEING MOVED.
DO YOU KNOW WHEN THE LAST TIME NEW NIL PALITY MOVED A WASTEWATER PLANT. I KNOW VERO BEACH IN THE PROCESS OF IT NOW. I DON'T HAVE EXAMPLE OFF THE TOP OF MY HEAD. DO YOU HAPPEN TO KNOW IF
THEY USE DESIGN BUILD. >> YES.
THEY ARE USING PROGRESSIVE DESIGN BUILD.
>> THAT'S TECHNICALLY TWO QUESTIONS.
>> MR. CHAIR. >> I THINK I SAW THIS MORNING ON THE NEWS RIVIERA BEACH IS MOVING THEIR WATER TREATMENT PLANT. MAY WANT TO LOOK AT THAT.
AND ALSO THIS IS PROBABLY MORE FOR MR. TOMPECK, WHAT WE WILL BE LOOKING TIME LANE OF REFINANCING THE DEBT? I WOULD THINK PROBABLY RIGHT AFTER THE FIRST OF THE YEAR, MAYBE A LITTLE BIT LONGER THAN THAT.
I THINK THE ENGINEERS CERTIFICATE IS WHAT WE'RE REALLY WAITING ON. AND WE'RE GOING THROUGH THAT PROCESS RIGHT NOW. I'M ANTICIPATING THAT IT WILL BE DONE THE MIDDLE OF JANUARY.
AND THEN THE BALL REALLY ROLLS FASTER.
MIGHT BE MONTH AFTER THAT OR SO.
>> OKAY. ANY FURTHER QUESTIONS?
>> YES, MR. KOBLEGARD. >> WOULDN'T STAFF RATHER OWN
[00:40:06]
THE PLANT AND OPERATE IT THEMSELVES THAN THE CITY OR>> NO PARTNERS. >> YOU KNOW, IF THE PARTNERSHIP CAN BRING SOMETHING TO TABLE, OUR PARTNERSHIP WITH SAINT LUCY COUNTY BRINGING A POTENTIAL 40 MILLION DOLLARS. AND THAT'S CAPACITY THAT IT'S NEEDED BUT NOT NECESSARILY NEEDED YET.
WHEN WE'RE ABLE TO JOIN FORCES WITH ANOTHER GOVERNMENT ENTITY LIKE THAT; WE ARE -- IT'S SIMPLE.
ECONOMIES OF SCALE. WE CAN PRODUCE WE CAN TREAT THAT AT THE LOWER RATE. IF WE DO IT TOGETHER.
THERE'S A SIMPLE ECONOMIC CASE WE MADE WITH THE PARTNERSHIP WITH ST. LUCIE COUNTY THAT DEMONSTRATED THAT. AS FAR AS OPERATING THE PLANT, THIS THE MY PERSONAL OPINION AND MY STAFF'S OPINION THAT FPUA OR MUNICIPAL ENTITY NEEDS TO OPERATE THAT PLANT. IT CAN'T BE A PRIVATE ENTITY. I DON'T KNOW RAMIFICATIONS OF HAVING PROGRESSIVE DESIGN BUILD AND THEY OWN THE PLANT AND LEASE IT BACK TO US. IN MY MIND THAT SEEMS LIKE PAPERWORK. BECAUSE IF WE'RE STILL OPERATING THE PLANT I DON'T KNOW IF THAT WOULD REALLY HURT US. I'M NOT EDUCATED ON THAT ENOUGH IF THERE'S SOME KIND OF DOWNSIDE THERE.
>> DEPENDING ON THE CONTRACT WITH THEM.
A LEASE AGREEMENT. >> FIND OUT WHAT THEY WANT.
>> SURE. >> I THINK PRIMARILY I WOULD SAY, YES. IF WE'RE ABLE TO OWN THE PLANT LIKE I SAY BEFORE. YOU KNOW EVERY TIME THE MONEY TOUCHES HAND IT GET MORE EXPENSIVE.
SO IF WE'RE ABLE TO DO IT. ON OUR OWN WITHOUT HAVING TO HAVE THAT LEASE BACK AGREEMENT.
BUT THIS THE LONG ROAD. THIS BIG PROJECT.
WE COULD HIT OBSTACLES ALONG THE WAY THAT DICTATE THAT EIT'S A LITTLE BIT MORE EXPENSIVE.
IN YOU WANT TO GET IT DONE, THIS IS WHAT WE HAVE TO DO.
I'M NOT SAYING THAT'S WHERE WE ARE AT YET.
IT'S A POSSIBILITY. WHATEVER TAKES TO GET THE JOB DONE IS WHAT WE ARE GOING TO DO.
THEORETICALLY BETTER IF WE JOIN FORCES.
>> THEORETICALLY. >> YES, MA'AM.
>> I KNOW THERE'S ALL KINDS OF OTHER -- WHEN YOU DO THINGS IN CONJUNCTION WITH ANOTHER GOVERNMENT AND YOU DON'T DUPLICATE SERVICES, ET CETERA, THEN THE TAX PAYER TORE RATE OR THE RATE PAYER BENEFITS.
THEN YOU GET PEOPLE INVOLVED AND EGOS AND ORGANIZATIONS.
EASY WITHOUT HUMANS. >> ROBOTS.
ANY FURTHER COMMENTS OR QUESTIONS FROM THE BOARD.
NICE PRESENTATION. >> THANK YOU VERY MUCH.
[I.1. Adopt Resolution NO. UA 2021-14 with an effective date of November 2, 2021. A resolution establishing the schedule of rates and charges for the services and facilities furnished by FPUAnet]
ELEPHANT IN THE ROOM. STATUS OF THE PCA AND REQUEST TO APPROVE INCREASE OF 12 PER 1,000 KILOWATT HOURS. EFFECTIVE DEGREESER FIRST AND BARBARA MICA WILL MAKE THE PRESENTATION.>> THANK YOU MR. TOMPECK. CHAIRMAN, FEE, AND BOARD MEMBERS, GOOD AFTERNOON. I WANT TO THANK YOU FOR THE OPPORTUNITY TO STEP IN AND PROVIDE YOU WITH THE UPDATED INFORMATION FOR THE STATUS OF THE SEPTEMBER POWER COST.
ADJUSTMENT ALONG WITH THE 12 MONTHS PROJECTION THROUGH SEPTEMBER OF NEXT YEAR. AS YOU KNOW FPUA RECOVER THE COST FOR PURCHASE POWER THROUGH CUSTOMER BILLINGS.
POWER COST RECOVERY THAT ARE IN EXCESS OF BASE POWER COST ACCUMULATED OVER RECOVERY, OR RATE STABILIZATION FUND.
IN ORDER TO RETAIN SUFFICIENT FUNDS, TO PAY OR POWER COST WE MAINTAIN THAT FUND BETWEEN 1 MILLION AND 4 # MILLION DOLLAR WITH EXCESS FUND GOING BACK TO CUSTOMER WHEN POSSIBLE. THE COST OF POWER PURCHASE FOR THE MONTH OF SEPTEMBER, WAS BUILT FPUA BLUNTED RATE OF $79.12. INCREASE OF $7.30 COMPARED TO THE AUGUST BILLING. FOR MONTH OF SEPTEMBER FFU
[00:45:06]
EXPERIENCED UNDER RECOVERY OF POWER COST OF 173,634.AND THIS REDUCED OUR OVER RECOVERY TO THE -- WHAT YOU SEE ON THE SCREEN OF 1 MILLION, 820,000 THAT YOU HAVE IN THAT OVERRECOVERY FUND.
TRACKS BALANCE OF OVERRECOVERY IN RELATION TO APPROVE POUNDER COST ADJUSTMENT.
THIS LOOKS BACK TWO YEARS OF ACTUALS TO SEPTEMBER 2019.
AND WITH PROJECTION FORWARD FOR 12 MONTHS THROUGH SEPTEMBER OF '22. THE AMOUNT OF THE POWER COST ADJUSTMENT IS REPRESENTATIVE BY THE DARK BLUE LINE.
WHICH FOR THE MONTH OF SEPTEMBER WAS NEGATIVE 12.
FOR 1,000 KILOWATT HOURS. THE BARS ON THE TOP OF THE SCREEN OF THE CHART. REPRESENT THE BLUE BARS REPRESENT THE ACTUALS THAT WE'VE EXPERIENCED OVER THE PAST TWO YEARS. WITH THE ORANGE BAR DEPICTING ON PROJECTED OVER RECOVERY.
IF THE FORECAST ARE CORRECT. THE PROJECTION THAT ARE SHOWN IN THIS CHART, ARE BASED UPON THE CURRENT PROPOSAL THAT STAFF HAS FOR A $12 INCREASE ON THE PCA COME FOR DECEMBER AND THEN AGAIN IN JANUARY.
THAT'S WITH THE BLUE LINE REPRESENTS.
THESE PROJECTION HAVE PREPARED BY CONSULTANT AND ARE BASED UPON THE DATA FORECAST.
SINCE THE AUGUST FORECAST, FMPA ESTIMATE OF THE COST OF PURCHASE POWER FOR THE UPCOMING 12 MONTHS HAS INCREASED 81/2 PERCENT. TREND POWER COST RECOVERY THROUGH SEPTEMBER OF 2022. WE GOT A LOT OF LINES HERE.
THE GRAY AND THE BLUE LINES REPRESENT THE TWO EXTREME SCENARIOS. THE GRAY LINE KEEPS THE LAST APPROVED PCA AT ZERO. WITH NO FURTHER CHANGES DEPLETING OUR CASH RESERVES BY LOOKING LIKE 9 MILLION BY THE END OF THE YEAR. BLEW LINE EXTREME JOLT TO PCA OF 65 PER 1,000 KILOWATT HOURS WHERE WE LOOK TO SEE WHAT IT WOULD TAKE TO GET US ABOVE THAT LINE.
AND THAT'S EXTREME JUMP BUT THAT'S WHAT WE SHOW HERE.
WITH DECREASES SHOWN IN COMING UP IN APRIL AND JUNE WHEN IT APPEARS WE COULD POTENTIALLY LOWER BECAUSE CLOSE TO 4 MILLION RECOVERY LINE.
FOR THE RATE STABILIZATION. WORKING OUR WAY DOWN.
THE ORANGE LINE HERE SHOWS A $30 INCREASE COME DECEMBER 1ST. WITH $15 DECREASE IN JUNE OF JUST BEFORE THE SUMMER MONTHS AND THAT'S KEEPING WITH OUR PRACTICE OF TRYING TO PROVIDE SOME FINANCIAL RELIEF IN THE SUMMER MONTHS BUT KEEP IN MIND THAT INCREASE AND $15 DECREASE IS STILL A POSITIVE $15PCA.
EN IN THE LONG RUN BY JUNE. THE NEXT LINE DOWN THE GREEN LINE, IS THE CURRENT PROPOSAL FOR A $12 INCREASE FOR DECEMBER 1ST. FOLLOWED BY ANOTHER $12 INCREASE ON JANUARY 1ST. THE IMPACT NOW WOULD BE JUST $12 AND WE WOULD REEVALUATE THE -- WITH THE NEXT MONTHS PROJECTION WHEN WE HAVE OCTOBER PROJECTION IN HAND.
AND WITH WE DID DISCUSS POTENTIAL ADDITIONAL INCREASES FOR JANUARY. THAT'S WHAT THAT GREEN LINE IS SHOWING. THE CHANGE IN PCA IS THE SAME FOR THE GREEN AND THE RED LINES WOULD BE TOTAL OF $24 AND CHANGE IS JUST ONE THAT'S HAPPENING QUICKER THAN THE OTHER. THE $12 WOULD HAVE A LITTLE BIT LESS IMPACT ON OUR CASH RESERVES BECAUSE IT MOVES UP A LITTLE BIT QUICKER THAN THE RED ONE.
THAN THE RED LINE. THIS CHART IS REPEAT FROM LAST MONTH PRESENTATION. JUST LEFT IT IN THERE.
I DON'T HAVE THE OCTOBER FORECAST JUST YET.
AND IT LAYS OUT THE MONTH OVER MONTH CHANGES IN THE PROJECTED AVERAGE COST PER MEGAWATT HOUR.
FOR OUR PURCHASE POWER. THE OCTOBER FORECAST WILL BECOME AVAILABLE TODAY. BUT IT'S NOT SHOWN IN HERE.
AT THIS TIME, IT IS THE RECOMMENDATION OF STAFF TO
[00:50:02]
INCREASE POWER COST ADJUSTMENT BY $12 EFFECTIVE DECEMBER 1ST WHICH WOULD BRING FROM 0 TO $12.WE WILL MONITOR THE SITUATION ON CONTINUUAL BASIS AND BRING UPDATES AND RECOMMEND CHANGES WHEN WE
NEED TO. >> THAT'S WHAT OUR -- WE'RE
ASKING FOR NOW. >> THANK YOU, MICCA.
DO YOU MIND GOING BACK ONE SLIDE? IF WE MAKE THE INCREASE AS YOU RECOMMEND.
WE WILL EAT INTO THE CASH RESERVE CUMULATIVELY OVER $3
INTO THE SPRING. >> AND SO IF WE DO SIX, IF WE DO HALF AS MUCH WE WILL EAT TO CASH RESERVES BY 4 MILLION. NATURAL I WILL IF WE DO NOTHING IT WILL BE EXTREME HIT.
>> ARE THERE ANY OTHER QUESTIONS FROM THE BOARD?
>> I HAVE A FEW QUESTIONS. >> DOES THIS INCLUDE THE 1.# MILLION WE HAVE SITTING OUT THERE?
>> YES. IF WE GO BACK ONE SLIDE HERE. IF YOU LOOK AT THE BLUE LINE HERE REPRESENTING SEPTEMBER, IS THAT 1.8.
>> IT WILL DROP COME COME THE NEXT MONTH AND THEN ULTIMATELY IT SHOWN TO GO BELOW WITH THE YELLOW BARS.
>> AS FAR AS THE I DON'T HAVE QUESTIONS ABOUT THIS.
I HAVE SOME FURTHER DISCUSSION THAT WE CAN TALK
ABOUT AFTER. >> ANY FURTHER QUESTIONS?
>> THAT GREEN LINE REPRESENTS A $12 INCREASE NOW THAT WE WOULD APPROVE FOR DECEMBER AND THE $12 INCREASE IN DECEMBER THAT WOULD BE -- THAT WE WOULD APPROVE IN DECEMBER FOR JANUARY.
>> POTENTIALLY, YES. WITH UPDATED INFORMATION.
YES. >> THE OCTOBER FORECAST YOU SAID IT'S -- IT CAME OUT TODAY BUT WASN'T ON THE
GRAPH. >> WE JUST -- IT WAS ONLY RELEASED TODAY. THIS AFTERNOON.
YOU KNOW THE RATES WERE ONLY AND PROJECTION CAME OUT TODAY. I DIDN'T HAVE IT FOR THIS
PRESENTATION. >> WHERE THE PROJECTION HIGHER THAN? .
>> DIDN'T HAVE A CHANCE TO LOOK.
>> I THINK BASED ON THE CONVERSATION I DIDN'T THINK IT WAS ANY WORSE OR BETTER THAT THE PROJECTION THAT WE HAVE HERE ARE AS GOOD AS WE WILL GET FOR RIGHT NOW ANY
WAY. >> THERE'S SOME SOME THINGS HAPPENING THAT COULD IMPACT THE PRICES HERE.
I THINK THE THEY RAMPED UP PRODUCTION IN TEXAS AND WE'RE SEEING THAT THEY WILL BE INCREASING THE PRODUCTION FROM ABOUT 90 BILLION CUBIC FEED TO 94 BILLION CUBIC FEET. THAT'S A PRETTY GOOD BUMP.
I WAS HOPING WE WOULD GET MORE HELP FROM COAL.
THAT STANDS SHORT ON COAL AND THE PRICES HAVE TRIPLE FROM 30 A TON TO 90 A TON. THEY THEY ARE HOLDING ON TO THEIR RATIONINGNARY COAL. THEY WANT TO BE PREPARED IN CASE THERE'S COLD WEATHER IN THE WINTER.
WE ALL LEARNED A PRETTY GOOD LESSON FROM WHAT HAPPENED IN TEXAS LAST YEAR. WHY I DON'T THINK IT'S AS COLD HERE AS TEXAS. IT COULD GET THAT COLD
GAINESVILLE OR ORLANDO. >> THEY WANT TO BE PREPARED FOR THAT AS WELL. BECAUSE THAT DID IMPACT GAS PRODUCTION AND TRANSPORTATION.
I DON'T THINK THERE'S ANY PARTICULARLY GOOD NEWS.
IF YOU LOOKED AT THE PRICE OF GAS TODAY IT'S $5.
WHICH COMPARED TO YOU KNOW FOUR OR FIVE WEEKS AGO ABOUT 6 AND A HALF DOLLARS. AND ONE WOULD BE VERY EXCITED ABOUT THAT IF ONE DIDN'T LOOK AT WHAT THE FUTURES ARE SELLING FOR. THE FUTURES AREN'T COMING DOWN. THE FUTURES FOR ALL OF CALENDAR YEAR 2022 WERE OVER $4 #.
YOU RECALL LAST TIME WHEN WE TALKED ABOUT THAT WE HAD A GRAPH THAT SHOWED THE DIFFERENCE BETWEEN $4 FUTURES AND $3 FUTURE WE WE THOUGHT WE WOULD GET LAST YEAR. ABOUT 130 MILLION IN TERMS OF FUEL COST TO FMPA. OBVIOUSLY THAT'S NOT ALL OUR COST. BUT FMPA FUEL COST.
AND THERE'S NO WAY TO EASILY ABSORB THAT COST.
WITHOUT RAISING THE RATES. >> WILL THIS SUBJECT FLORIDA POWER & LIGHT AND OTHER RESTAURANTS.
THIS LIKE I SAID LAST TIME. THIS IS NOT A STATE PROBLEM.
IT'S A GLOBAL PROBLEM. THERE'S STILL WILLING TO PAY
[00:55:03]
$24 FOR LNG TO CHINA AND EUROPE.WE CONTINUE TO COMPETE. EVERYBODY WILL HAVE THIS
SAME PROBLEM. >> WITH PROBABLY THE EXCEPTION OF THE STATE OF WASHINGTON WHICH HAS A LOT OF HYDROELECTRIC POWER AND SOME OF THE OTHER POWER AND STATES MORE WIND AS OPPOSED TO GAS.
WE HAVE NEITHER HYDROELECTRIC OR WIND.
>> IT SEEMS TO ME THAT EFFECTS JUST WHAT WE WERE TALKING ABOUT ABOUT MOVING THE WASTEWATER TREATMENT PLAN. ALL OF A SUDDEN RATE POWERS ARE GETTING SOCKED. STATING THAT FACT.
THAT IT WE WERE GOING TO HAVE DIFFICULTY SELLING THE RATE INCREASES ON WATER TO MOVE THE WASTEWATER TREATMENT PLANT IN MY OPINION ANYWAY, BECAUSE BECAUSE SO MANY PEOPLE ARE KIND OF CLUELESS THAT, THAT'S IN WORKS OR THAT WE NEED TO DO IT.
IT'S JUST NOT AT THE TOP OF THEIR RADAR.
AND SO NOW WE HAVE THIS PARTICULAR ISSUE AND IT JUST
KIND OF PERFECT STORM. >> I THINK YOU KNOW, PRICE OF GAS IS REALLY VOLATILE. AND I CAN'T THINK OF A SCENARIO THAT WOULD GO UP MUCH MORE.
THAT'S ONLY BECAUSE I CAN'T THINK OF THE SCENARIO.
THERE PROBABLY IS ONE OUT THERE.
I'M HOPING IT WILL COME DOWN AFTER THE FIRST OF THE YEAR.
I WOULD LIKE TO SEE FUTURE PRICES COME DOWN TO $3.50 OR $3.60. SOME OF THE PAIN HERE WILL GO AWAY. BUT WE CAN'T BASED ON THE FUTURES TODAY WE CAN'T MAKE THAT ASSUMPTION WHEN WE DO
OUR PLANNING. >> MR. CHAIR? MAYBE YOU WILL CHIME IN WITH COMMENTS HERE.
COUPLE OF THINGS. AND I'VE TALKED TO FEW OF YOU GUYS ABOUT IT. I WOULD LOVE TO THINK ABOUT THIS OPPORTUNITY THIS TIME AS MORE OF AN OPPORTUNITY TO STREAMLINE. I DON'T KNOW IF THERE ARE YOU KNOW OBVIOUSLY THERE'S ALWAYS WAYS THAT WE CAN GET BETTER FASTER EASIER MORE AUTOMATED WHATEVER IT IS THAT WE CAN CUT DOWN SOME OF OUR COSTS.
I MEAN I WOULD LOVE FOR YOU GUYS TO TRY TO GET TOGETHER AND DISCUSS SOME OF THOSE OPTIONS.
TRY TO KEEP YOU KNOW -- WE'RE GOING TO HAVE SHOW THEM TOO THAT WE TRY TO KEEP OUR COST DOWN AND WHICH IS GOING TO LEAD INTO THE ADVERTISING UPDATE.
NOT SURE WHERE WE WERE THAT. WE WANT TO MAKE SURE WE ARE -- WHEN WE'RE DOING TIDZ ADVERTISING WE'RE POSITIVE TO OFFER SUGGESTION FOR WAY TO STREAMLINE A HOME AND KEEP BILLS DOWN AND MAKE SURE THAT IT SHOWS THAT WE'RE ALSO TRYING TO DO THE SAME THING TO HELP.
AND THEN I KNOW WE SPOKE EARLIER TOO.
AND I THINK THAT I JUST WANT TO MAKE SURE THE BOARD HEARS THIS. WE NEED TO MAKE SURE WE KEEP OUR CREDIT STANDING GOOD ESPECIALLY IF WE WANT TO REFINANCE. WHICH IS GOING TO BE WHAT PIVOTS ALL OF THIS TO BE ABLE TO MOVE THE WATER TREATMENT PLANT. WE NEED TO BE THINKING ABOUT THOSE RATE INCREASES UNFORTUNATELY.
AND I DON'T WANT IT TO NEGATIVELY IMPACT OUR GROWTH AND WHAT WE'RE -- WHAT OUR VISION IS HERE.
HOPEFULLY THIS IS SHORT-TERM THING.
BUT WE NEED MAKE SURE WE'RE STABLE AND PROVE WE'RE STABLE WHEN WE WANT TO GET THE MONEY IT'S THERE.
>> WHAT IS OUR CREDIT STATUS NOW?
WHAT'S THE BEST YOU CAN BE? >> TRIPLE-A.
>> A-PLUS AND A IS NOT BAD. >> NO IT'S NOT BAD.
IT'S GOOD. >> GIVES YOU GOOD BORROWING CAPABILITY. I THINK WE HAVE TO BE VERY MINDFUL OF THAT SHOW THAT WE ARE STABLE AND HAVE TO DO WE DO WHAT WE HAVE TO DO BUT ON THE SUBJECT OF ADVERTISING SOMEONE TOLD ME THEY HEARD THE ADD ON -- I THINK NPR AND WHOEVER IT WAS SAID IT WAS A GOOD ADD.
THEY COULDN'T TELL THE SUBSTANCE.
THEY SAID IT WAS A GOOD ADD. >> ANY OTHER COMMENTS?
ANY FURTHER DISCUSSION? >> I DO.
ONE I DEFINITELY WANT TO ECHO THE COMMENT ABOUT ADVERTISING. THAT'S CRITICALLY IMPORTANT.
ANOTHER ONE IS YOU KNOW IT HAS STARTED TO COOL OFF A LITTLE BIT. IF THERE WAS A TIME I THINK TO GET A LITTLE BIT AGGRESSIVE ON TRYING TO PUT MONEY BACK IN THE RATE STABILIZATION FUND IT'S
PROBABLY NOW. >> IT'S PROBABLY NOW.
[01:00:03]
BECAUSE AT THE END OF THE DAY THE CUSTOMER WILL NOT LOOK AT HOW MUCH OF THEIR BILL IS POWER COST ADJUSTMENT THEY WILL LOOK AT THE BOTTOM LINE.AND RIGHT NOW THE BOTTOM LINE EVEN IF WE RAISE THE POWER COST ADJUSTMENT THE BOTTOM LINE HOPEFULLY WILL EVEN BE LESS THAN IT WAS FOR JUNE AND JULY AND AUGUST.
I'M IN FAVOR PERSONALLY OF EVEN GOING ABOVE AND BEYOND STAFF'S RECOMMENDATION IS IN THE HOPES THAT WHEN SUMMER ROLLS AROUND 2022, WE CAN START TO GIVE SOME OF THE
>> I AGREE AS WELL. DOES ANYONE HAVE AN IDEA OF WHAT INCREASE YOU WOULD BE COMFORTABLE WITH THE YOU WANTED TO GO OVER $12, WHAT WOULD BE THE RIGHT NUMBER? I THINK BEING AGGRESSIVE HERE WILL GET US AHEAD OF THE STORM. AND HOPE WE HOPE THAT IT IS A SHORT-TERM PROBLEM THAT YOU KNOW GAS PRICES WILL RECEIVE A LITTLE BIT AFTER THE BEGINNING OF THE YEAR.
>> MR. CHAIRMAN, I DON'T. I DON'T HAVE AN IDEA ABOUT THAT. BUT I WOULD ALMOST RATHER GO THE $12 NOW AND WHICH WOULD TAKE EFFECT IN DECEMBER.
IS THAT RIGHT? >> SO THAT YOU PAY THE BILL IN JANUARY. IS THAT RIGHT.
AM I RIGHT? DO I HAVE THAT RIGHT? AND THEN THE NEXT TIME WE RAISE IT THEN WE RAISE IT MORE THAN RAISING THE BIG RATE THIS MONTH.
THAT'S MY PREFERENCE. >> YOU WOULD PREFER $12 INCREASE AND MAYBE GO ABOVE THE NEXT MONTH WHEN IT'S COOLER. I'M IN FAVOR OF THE $12 VERSES GOING HIGHER THAN THE 12 RIGHT NOW.
AND -- >> WHEN WE HAVE TO DO THE PAINFUL THING. DO THE PAINFUL THING THE
>> MISS GIBBONS, ANY THOUGHTS?
>> WELL, I MEAN LOOKING AT THIS CHART HERE.
I DON'T KNOW IT'S GOING TO STABILIZE US LET'S SAY IF WE WERE TO DO THIS $30 INCREASE.
WHICH I DON'T KNOW THAT ANY OF US WANT TO DO $30 INCREASE. BUT IT WILL ACCORDING TO THIS STABILIZE WHERE WE ARE CURRENTLY.
FOR ONE MONTH I DON'T KNOW THAT IT'S GOING TO MATTER.
I WILL SAY I WISH I HAD STUCK WITH MY GUNS LAST MONTH AND SAID WE SHOULD GO HIGHER ONE.
BUT HERE WITH WE ARE DISCUSSING IT NOW.
I'M MORE IN FAVOR OF SOMEWHERE IN THE MIDDLE OF THOSE TWO NUMBERS. AND THAT WAY COME JANUARY, WE DON'T HAVE TO MAKE IT AS BIG OF A STRETCH.
I GUESS I WORRY THAT -- WOULD RATHER GIVE IT BACK TO THEM LATER AND BE SAFE THAN GO TOO FAR INTO DEBT HERE AND THEN NOT BE ABLE TO RECOUP.
>> I AGREE. THAT'S WHAT I'M WORRIED
I WANT TO MINIMIZE OUR CASH RESERVE LOSS.
ESPECIALLY ON THE HEALS OF THE PROJECT THAT WE'RE GOING TO NEED SOME SHORT-TERM CASH EQUITY TO PAY.
I CERTAINLY WOULD BE IN FAVOR OF ANY INCREASE UNDER $20 AND UP YOU KNOW, ABOVE $12 BUT KEEP IT UNDER $20.
I FEEL LIKE $15 IS FAIR. TO KEEP THIS HEAD.
IF WE WE DON'T RAISE AS MUCH AS WE DO THE SECOND TIME.
AT MINIMUM WE HAVE TO HAVE $12.
I THINK THAT'S A NO-BRAINER. THE QUESTION IS WHAT NUMBER CAN WE LIVE WITH IN ORDER TO MINIMIZE THE HEMORRHAGES OF
THE CASH RESERVES. >> I'M LOOKING AT THIS IS THE END OF THE YEAR. WHERE PEOPLE ARE TRYING -- CHRISTMAS IS HOLIDAYS ARE COMING AROUND.
IF WE DO $12 NOW. THEY WILL HAVE A LITTLE BIT MORE MONEY IN JANUARY, FEBRUARY, WHEN TAXES ARE COMING AROUND SO THEY WON'T BE LOOKING AT THEIR BILL AS MUCH. THEY WILL MORE ASPECT TO PAY THAT EXTRA MONEY THAN TO HIT THEM RIGHT BEFORE THE
HOLIDAYS. >> CERTAINLY VALID POINT AND THINKING ABOUT THE CUSTOMER AND THEIR NEEDS.
WE WANT TO BE COMPASSIONATE WITH THEM.
ESPECIALLY DURING THE HOLIDAY SEASON.
IT'S A BIG DECISION. UNFORTUNATELY I CAN'T MAKE A MOTION. SOMEONE HAS TO LEAD OFF AND RIP OFF THE BAND-AID AND SEE WHERE WE GO WITH IT.
>> JUST TO CLARIFY. WHATEVER WE APPROVE NOW, GETS ENACTED IN DECEMBER. AND MOST CUSTOMERS WILL SEE THE INCREASE TO THEIR BILL IN JANUARY.
[01:05:05]
WHATEVER WE APPROVE NOW THEY WON'T ACTUALLY HAVE TO PAY THE EFFECTS OF THAT INCREASE UNTIL AFTER THE HOLIDAYSEASON. >> I'M LOOKING AT THEY WILL HAVE SPENT A LOT OF MONEY OVER THE HOLIDAYS, AND THEY WON'T HAVE THAT MUCH MONEY IN JANUARY WHEREAS THEY WILL
HAVE A LOT MORE IN FEBRUARY. >> I SEE.
>> THAN THEY DO IN JANUARY. >> AND A LOT OF PEOPLE ARE I MEAN, I'M THINKING ABOUT SCHOOL BOARD EMPLOYEES.
THEY ARE OUT. THEY DON'T -- THEY DON'T GET ANY FINANCES UNTIL AFTER JANUARY 15TH.
SO AND A LOT OF PEOPLE UILITIES BILL ARE DUE BETWEEN THE 10TH AND 15TH OR YOU KNOW BETWEEN THE 10TH AND 20TH. THEY WON'T HAVE THE MONEY AND THEY ARE SCROUNGING FOR FINANCES AT THAT TIME.
AND THEY SPENT MONEY OVER THE HOLIDAYS.
I JUST FEEL THAT WE NEED TO THINK ABOUT THAT.
AND YOU KNOW, THINK ABOUT THOSE RATE PAYERS AND THE HOLIDAY SEASON. AND PEOPLE ARE SPENDING MORE NOW. WE NEED TO TAKE INTO
CONSIDERATION THAT ALSO. >> IF WE WERE TO DO $12 BRINGS US BACK TO ZERO; RIGHT?
I UNDERSTAND WHAT YOU ARE SAYING.
>> IF WE DO 12 WE'LL BE AT 12.
RIGHT YOU WE'RE AT ZERO. >> AT LEAST WE HAVE SOMETHING -- SOMETHING YOU KNOW, THAT WE CAN BUILD UPON. WE HAVE THAT $12 THAT WE CAN BUILD UPON. BUT --
>> CERTAINLY GOING TO HAVE BUILD UPON IT FROM THIS
GRAPH. >> WE'RE LOOKING TO GET REFINANCING IN JANUARY. THAT'S WHERE I'M LIKE, WE'RE RIGHT AT THE CUSP OF ALL OF THIS.
I DON'T -- PERSONALLY, I FEEL LIKE I KNOW YOU SAID $15 I'M LIKE $18 FEELS LIKE GOOD HAPPY MEDIUM NUMBER.
A ROUND NUMBER. SEEMS LIKE MOVE IN SIXES.
I DON'T KNOW WHY. IT FEELS THAT WAY.
>> WHY NOT. >> WHAT IF WE MOVE ALTERNATE $12 NOW AND THEN 18 THE SECOND TIME.
>> WHAT HAPPENS WHEN THAT -- IF IT KEEPS GOING UP
AND THERE'S A FREEZE. >> WE'RE STILL BEHIND.
WE'LL BE BEHIND AND IT WILL BE SUMMER TIME AND THEN WE'RE PAYING. WOULD RATHER GIVE THE MONEY BACK TO CUSTOMER. THAN TO NOT RECOUP IT AND THEN HAVE AN ISSUE TRYING TO MOVE FORWARD WITH OUR -- WHAT OUR PLAN IS TRYING TO GET EVERYTHING
ACCOMPLISHED. >> THAT'S A DIFFICULT PART FOR ME. I DON'T WANT -- I WOULD NEVER RAISE RATES IF IT'S A PLAUSIBLE SITUATION.
HOWEVER, I DON'T WANT FIND OURSELVES IN A POSITION WHERE WE REALLY WANT TO HELP FOR THOSE SUMMER MONTHS AND
WE'RE JUST NOT ABLE TO. >> THAT'S WHEN THE AC IS RUNNING. THAT'S WHEN PEOPLE ARE HOME.
>> THAT'S WHEN OUR LOCALS ARE HERE.
>> EXACTLY LOCALS ARE BACK. WINTER TIME PEOPLE HAVE OPENED UR THEIR WINDOWS. THEY GET CONSERVE.
THEY SAVE A DIFFERENT WAY. I'M WITH YOU MISS GIBBONS.
$18 IF YOU KEEP WITH YOUR 6'S IS FINE WITH ME.
NO ONE WANTS TO BE HERE. I THINK IT'S THE FIRST TIME IN MY TENURE THAT WE'VE GONE UP THIS MUCH.
EVER. EVEN IF WE GO UP THIS HIGH DOESN'T SEEM LIKE WE'RE OUT OF IT BY ANY MEANS.
AGAIN, SOMEONE THAT TO MAKE A MOTION.
>> WHAT IF WE GO AT $15? >> I KNOW WE'RE IN THE 6'S.
>> MR. CHAIRMAN. IF I READ THE CHART DIRECTLY, $3 INCREASE HALF MILLION DOLLARS.
>> U HUH. >> THAT'S WHAT YOU WOULD
>> I DIDN'T HAVE A CHANCE TO GO BACK.
THAT'S BEFORE WE ADJUSTED THE RATES AS WELL.
YOU ARE NOT EXACTLY TALKING APPLES AND APPLES.
SOMEWHERE AROUND $30? >> I CAN CHECK AND LET YOU
KNOW. >> IT DIDN'T GET THERE THAT
[01:10:03]
FAST. IF I REMEMBER RIGHT.>> NO, I DIDN'T. >> NOT AS FAST AS THIS
POSSIBLY COULD GET THERE. >> I GUESS I'M ALSO LIKE CONCERNED ABOUT IT. I WOULD RATHER COME BACK IN JANUARY BE LIKE NAH. WE'RE GOOD.
I DON'T WANT TO RAISE IT AGAIN.
IT'S A PEG IN THE NAIL. AT THE OWNED OF THE DAY OF THE COFFIN. THEN WE HAVE ANOTHER OPPORTUNITY TO BE LIKE HERE THEY GO RAISING RATES AGAIN.
THAT'S NOT WHAT IN OF US WANT.
WE DON'T WANT TO RAISE THE RATE.
I'M LOOKING FOR AN OPPORTUNITY TO MAKE SURE THAT WE CAN STABILIZE OUR CUSTOMERS TOO AND SO WE DON'T HAVE TO KEEP PUSHING SOMETHING OUT THERE AND -- IT'S NICE TO BE ABLE TO SET IT THEN IN THREE MONTHS FROM NOW ADJUST IT OR WHATEVER.
NOT THAT MAY OR MAY NOT HAPPEN.
IT'S SO VOLATILE. I'M LOOKING FOR SOME KIND OF A STABLE FLOW FOR THE CUSTOMERS AS WELL.
SO THEY KNOW WHAT TO EXPECT RATHER THAN KEEP MESSING
AROUND WITH THEM. >> THERE'S AN ARGUMENT TO MAKE FOR TAKING THE PAIN. TAKING THE PAIN NOW.
AND I COULD GO WITH 18 AND -- I DON'T WANT TO.
I WOULD RATHER GO 12. I UNDERSTAND WHAT YOU ARE SAYING. IF WE TAKE THAT WE TAKE KIND OF LIKE RIPPING THE BAND-AID OFF REAL QUICK.
BECAUSE WE KNOW WE HAVE TO DO SOMETHING NEXT TIME AND MAYBE SANTA CLAUS WILL BE GOOD AND WE DON'T.
YOU KNOW WHAT I MEAN? WILL IT BE 18 DECEMBER AND
18 IN JANUARY? >> NOT NECESSARILY.
>> WE'LL HAVE TO REASSESS AGAIN.
>> WE'LL HAVE TO LOOK AGAIN. >> YOU GET THE WONDERFUL CALLS FROM THE PEOPLE WHO TELL THEM THE BAD NEWS.
>> THEN WE HAVE TO LOOK AT IT.
IT WOULD BE $18 UNTIL WE CHANGE IT.
>> YES. >> IT HOPEFULY IT WOULD BE STABLE. IT WOULD BE GREAT IF WE WERE AT 18. I IDEALITY NEGATIVE WOULD BE GREAT. THEY COME BACK IN DECEMBER THIS IS WHAT WILL BE. WE'RE ALREADY SET.
WE'RE WHERE WE ARE. CUSTOMER DOESN'T HAVE ANYTHING NEW TO TRY TO DEAL WITH OR UNDERSTAND OR WHATEVER. IT'S -- IT'S ALREADY SET.
THAT WOULD BE -- >> WE'VE BEEN A COUPLE OF QUICK COMMENTS. ONE OF THE THINGS YOU MENTIONED I THINK THE IMPORTANT IS THAT THE WE ARE GOING INTO A PERIOD OF TIME WHERE YOU USE LESS ELECTRICITY. SO THE FOLKS THEIR BILL WOULD HIGHER. BUT IT WOULD PROBABLY STILL BE LESS THAN WHAT THEY NORMALLY SEE IN JUNE AND JULY AND AUGUST TIME FRAME. THE OTHER THING IF YOU LOOK A CURVE 18 IS COMPLETE PANACEA.
IT ONLY GETS YOU CLOSER. >> UH-HUH.
>> BUT I THINK -- I THINK IT'S GOOD RECOMMENDATION.
WE WOULD CERTAINLY LIKE YOU TO APPROVE THAT.
>> AS THE MATTER OF BACKGROUND.
HOW LONG NEGATIVE PCA. IT'S BEEN FIVE, SEVEN YEARS?
>> NO, I THINK IT'S BEEN ABOUT 3 AND A HALF.
OR 4 YEARS. THIS PARTICULAR SCREEN SHOT HERE. THEY ARE BACK TWO YEARS.
WE'VE BEEN NEGATIVE. >> NEGATIVE EVEN BEFORE THAT. NEGATIVE BEFORE THAT.
DURING THAT TIME WE GAVE BACK ABOUT 3 MILLION DOLLARS ARMORE TO CUSTOMER WHEN ALTERNATE NEGATIVE PCA.
HOPEFULLY, THIS NEXT -- EVERYTHING YOU KNOW HAS ITS UPS AND DOWNS. IT LOOKS LIKE WE HEAD TO UP PERIOD. AND HOPEFULLY IT'S A SHORT CLIMB. INSTEAD OF A LONG CLIMB.
EATS OUT OF CONTROL OUR. IT REALLY IS.
>> GO OUT AND DRILL A WELL. >> I WILL SAYI I WAS FULLY PREPARED IF WE LOOK AT THE GRAPH AGAIN.
I WAS FULLY PREPARED TO MAKE A MOTION FOR A $30 INCREASE SO THAT WE COULD HAVE A $15 DECREASE IN JUNE.
MISS BENNETT, THOROUGHLY TALKED ME OUT OF THAT IDEA.
BUT I WOULD AM -- I AM PREPARED TO SUPPORT AN $18
INCREASE. >> I WILL MAKE A MOTION TO ADJUST THE POWER COST ADJUSTMENT TO $18.
>> DO I HAVE A SECOND. >> I HAVE A SECOND.
>> I JUST COUPLE THAT WITH MORE ADVERTISING PLEASE.
MAYBE WE NEED INSTAGRAM ACCOUNT.
>> WE'VE BEEN WE'VE BEEN TALKING ABOUT THAT IN A LITTLE BIT MORE DETAIL TODAY.
SOME OF THE TRADITIONAL WAYS ARE NOT GETTING TO OUR CUSTOMERS. WE HAVE TO DO SOMETHING A LITTLE BIT DIFFERENT. WHERE WALE COME UP WITH THAT
[01:15:03]
ANSWER. >> AND THEN STREAMLINE TOO, IF YOU GUYS -- WOULD LOVE TO -- OF COURSE THAT'S WHERE I COME FROM. IF YOU WOULD LIKE SOME INPUT, I CAN DEFINITELY HELP OUT WITH THAT.
>> WHAT YOU ARE SAYING. WE NEED TO SHOW THAT
EVERYBODY HURTING EQUALLY. >> WE'RE ALL TRYING.
>> WE'RE ALL RESIDENTS HERE. AND CUSTOMERS.
WE DON'T LIKE IT WHEN OUR BILLS GO UP EITHER.
>> THAT'S WHY YOU HAVE TO BE RATE PAYER TO BE ON THE
BOARD. >> IS THERE ANYTHING THAT THE BOARD CAN DO TO HELP WITH THE ADVERTISEMENT? TO LET THEM -- LET THE RATE PAYERS KNOW WE'RE ONBOARD.
AND THAT WE WE FEEL THE PAIN ALSO.
AND -- >> OTHER THAN TALK WITH -- TALK WITH YOUR COCONSTITUENTS OR WHATEVER.
AND SPREAD THE WORD OF WHAT'S HAPPENING.
>> I WAS THINKING ON THE LINES OF MAYBE WE'RE OUT THERE SAYING SOMETHING OR DOING SOMETHING WITH YOU ALL WHEN YOU ADVERTISING. WE LOOK TO GET SOMETHING GOING SO WE GET MORE ADVERTISEMENT OUT THERE.
THAT THEY WILL MORE AP TO GET ONBOARD WITH THIS.
I THINK THAT'S GOOD IDEA. YOU COULD DO A VIDEO WITH DIFFERENT SCRIPTS. WE'RE THIS IS NOT SOMETHING WE TOOK LIGHTLY. WE HOPE BECAUSE YOU USE LESS ELECTRICITY IN THE WINTER THAT THIS WILL NOT FEEL A BIT -- IT'S OUT OF OUR CONTROL.
WHATEVER. SOMEONE SMARTER THAN I CAN WRITE THE SCRIPT. I THINK IF YOU HAVE REAL PEOPLE SAYING AND IF YOU ARE BOARD MEMBERS I THINK THAT WOULD BE I THINK THAT'S A GREAT IDEA.
>> NOT ALL TOGETHER. BUT INDIVIDUALLY.
BECAUSE WE CAN ALL TOGETHER. >> THAT'S RIGHT.
INDIVIDUALLY. >> I WANT TO BE CAREFUL HOW WE COMMUNICATE THAT. THIS IS GLOBAL ISSUE.
IT'S NOT LIKE WE'RE RAISING THEIR RATES.
LET US HELP YOU FIGURE OUT WAYS TO KEEP YOUR POWER LOW.
THAT SHOULD BE WHERE WE ARE COMING FROM HERE.
THAT'S THE CRITICAL PART. >> THIS IS NOT JUST US RAISING RATES. THIS IS US REACTING TO WHAT'S GOING ON. AND THIS IS WHAT WE'RE DOING TO HELP KEEP OUR RATES LOW. THIS WHAT I DO AT MY HOUSE TO KEEP MY RATES LOW. HEERSZ SOME HERE'S SOME
IDEAS WAYS YOU CAN MITIGATE. >> THAT'S WHAT I WAS THINKING ON THE LINES OF. YOU KNOW, THEY MAY THINK WE DON'T PAY FT. PIERCE UTILITIES BILLS.
THIS IS WHAT I'M DOING. THESE ARE THE THINGS I'M DOING. THESE ARE SOME THINGS THAT YOU CAN DO. YOU KNOW.
THAT'S WHAT I WAS THINKING ON THE LINE OF.
THAT WE CAN DO TO HELP OUT. WITH THE ADVERTISEMENT.
>> PAYING FOR THE FUEL TO RUN THE PLANTS.
WE DON'T KEEP A DIME OF IT. >> EXACTLY.
IT'S THE COST OF DOING BUSINESS.
>> I WANT TO BE CAREFUL HOW WE COMMUNICATE THAT.
WE HAVE TO FOLLOW THROUGH WITH THAT.
>> THE PROBLEM IS MY MIND IS NOT THE MESSAGE.
IT'S THE MEDIUM. WE HAVEN'T -- REALLY HAVEN'T COME UP WITH THE RIGHT MEDIUM.
RADIO HELP FACEBOOK HELPS. WEB SITE HELPS.
WE STILL HAVE A LARGE PERCENTAGE OF PEOPLE WHO
DON'T FOLLOW ANY OF THOSE. >> HOW ABOUT TEXTING? HAVE WE TRIED TEXTING? BECAUSE I KNOW IN POLITICAL CAMPAIGNS, THAT'S WHAT THEY ARE DOING NOW.
IS TEXTING MESSAGES? >> WE ARE LOOKING AT TEXTING AND WE'RE LOOKING ALTERNATE SOME OTHER THINGS.
VERY FEW PEOPLE READ THE NEWSPAPER.
I DON'T KNOW WHERE THEY GET THE NEWS FROM OTHER THAN THEY GET IT FROM FACEBOOK. THAT'S TRAGIC.
IF THAT'S WHERE THEY GET THE NEWS FROM.
WE NEED TO GET THE WORD OUT THERE.
WE NEED TO FIGURE OUT THE RIGHT MEDIUM TO GET THE
MESSAGE OUT. >> THERE'S A LOT OF LOCAL RADIO STATIONS ALTERNATE CERTAIN POPULATIONS LISTEN TO. WE COULD PROBABLY INVESTIGATE THAT. RADIO REACHINGS PEOPLE YOU
[01:20:01]
DON'T REACH IN ANY OTHER WAY.IN PRINT FORM OR INTERNET OR BUT EVERYBODY HAS A CELL PHONE. MANY PEOPLE HAVE A CELL PHONE AND DON'T KNOW HOW TO USE IT.
>> WE'RE ALSO TO POINT WHERENT WILL HAPPEN EVERY WEEKEND. THERE'S EVENT ALMOST EVERY WEEKEND FOR THE NEXT FIVE MONTHS.
MAYBE IT'S YOU KNOW EVEN IN-PERSON SOMETHING WITH DEMONSTRATION. OR WHATEVER.
YOU KNOW, THAT MAY BE -- >> THERE'S ALSO THE OTHER SIDE OF THAT IS RAISING THE ISSUE BRINGS ATTENTION TO THE ISSUE. RIGHT?
>> SOMETIMES, YOU KIND OF WANT TO HIT THE RIGHT MEDIUM OF -- YOU DON'T WANT TO BE HAMMERING SO MUCH THEY
GET -- THEY PAY ATTENTION. >> THEY GET IRATE.
>> THANK YOU VERY MUCH FOR YOUR PRESENTATION.
IT'S -- >> YOU DELIVER BAD NEWS WITH GRACE. [LAUGHTER] . WE DIDN'T SHOOT THE MONKEY.
>> I WISH WE HAD THIS NICE FANCY KEOSK WORKING DOWNTOWN WHERE YOU CAN USE THAT TO PUSH THE MESSAGE A LITTLE BIT. BUT I GUESS THAT'S A GOOD SEGUE TO FPUAKNELT PRESENTATION.
THE NEXT ITEM RESOLUTION 2021-14.
WHICH IS ESTABLISHES RATES FOR FPUA NET.
JASON MITTLER WILL MAKE THE PRESENTATION.
>> GOOD AFTERNOON, MR. TOMPECK AND CHAIRMAN.
MEMBERS OF THE BOARD. REALLY PLEASED TO PRESENT TO YOU RESOLUTION NUMBER UA2021-14FPUA BROADBAND RATE AND CHARGES. THIS RESOLUTION IDENTIFY THREE TYPE OF BROADBAND SERVICE THAT FPUA NET WILL BE OFFERING THROUGHOUT THE ELECTRIC TERRITORY.
THE FIRST TYPE OF SERVICE IS ENTERPRISE.
THIS SERVICE TYPE IS A POINT TO POINT ARCHITECTURE THAT USES ACTIVE TECHOLOGY. FOR SCHOOLS OR BUSINESSES WITH SERVICE LEVEL AGREEMENT.
THIS RATE BY QUOTE ONLY AN OFTEN REQUIRES CONTRIBUTION AND AIDE. ALL TIERS WILL PROVIDE GUARANTEE SYMMETRICAL SPEED AND LOW LATINSY TO THE END USER. THE RATES ARE OFFER FOR THE PAST 15 O 20 YEARS. THE SECOND TYPE OF RATE WHICH ARE THE NEWER TYPE OF SERVICES THAT I THINK THE GOING TO BE VERY HELPFUL TO THE COMMUNITY.
ARE OUR COMMERCIAL AND RESIDENTIAL SERVICE RATES.
THIS USES.TO MULTIPOINT ARCHITECTURE USING TECHNOLOGY CALLED PASSTIVE ACTIVE NETWORK OR PAN.
THEY PLACE CLOSE TO PREMISES WHICH ALLOWS SINGLE FIBER TO BE USED AS DISTRIBUTION POINT FAR OUT ON THE NETWORK. PLACES GROUP OF CUSTOMER ON SHARED PORT WITH SYMMETRICAL SPEEDS UP TO THE TIERS SUBSCRIBED TO. CONSIDERS WHAT THE CALL BEST EFFORT. DOESN'T TYPICALLY REQUIRE A SERVICE LEVEL AGREEMENT. THIS SLIDE SHOWS THE RATES FOR SHARED SERVICES FOR COMMERCIAL AND RESIDENTIAL CUSTOMERS. FPUA SPACE NET WILL OFFER ROUTERS AND STATIC IP ADDRESSES.
ALL RATES ARE AT OR BELOW MARKET BUT OFFER HIGHER SPEEDS THAT ARE SYMMETRICAL. IN ORDER TO BORROW FUNDING FOR EXPANSION, ONE OF THE BOND REQUIREMENT REQUIRES ESTABLISHING THE RATE. THIS CRITICAL STEP TOWARD BUILDING A FIBER UTILITY AND HELPING THE CITY GROW.
RESOLUTION NUMBER UA-2021-14 ALLOWS THE DIRECTOR OF UTILITY TO APPROVE PROMOTIONAL RATES ALL PROMOTIONAL RATE BASED ON ACCEPTABLE RATE OF RETURN.
THEY WILL BE OFFERED TO ANY ELIGIBLE CUSTOMER.
THAT MEETS THE DEFINED PARAMETER FOR THE ESTABLISHMENT TIME PERIOD. A RECORD OF ALL THE PROMOTIONAL RATES AND OFFERING WILL BE MAINTAINED.
AND TERMINATION OF SERVICE PRIOR TO THE END OF THE PROMOTIONAL RATE MAY BE SUBJECT TO COST RECOVERY.
WITH THAT BEING SAID STAFF REQUESTING THE APPROVAL OF RESOLUTION NUMBER UA-2021-14.
A RESOLUTION ESTABLISHING A SCHEDULE OF RATES AND CHARGES FOR THE SERVICES AND FACILITIES FURNISHED BY THE FPUA NET SYSTEM FORTED FORT PIERCE UTILITIES AUTHORITY
[01:25:04]
AND ASKED ANNIVERSARY ARTICLE 12 OF CHAPTER OF THE CITY OF FT. PIERCE FLORIDA AND PROVIDING FOR EFFECTIVE DATE HERE OF. JASON JUST TOOK JILL'S THUNDER FOR READING THE RESOLUTION.>> SHE'S PROBABLY HAPPY. >> ANY QUESTIONS.
>> I HAVE A QUESTION. ARE -- THESE ARE ESTABLISHING RATES. WE HAVEN'T HAD RATES BEFORE?
>> MADAM MAYOR WE HAVE THE ENTERPRISE RATES.
THESE POINT TO POINT RATES. THESE TYPE OF RATES THAT IT'S A DEDICATED SERVICE. AND OFTENTIMES YOU HAVE TO BUILD OUT TO THE CUSTOMER. RATES COULD BE DIFFERENT BASED ON THE RATE OF RETURN. THERE HASN'T BEEN STANDARD RATE. FOR US TO DEPLOY FIBER TO PREMISES, WHEN WE BUILD OUT THESE NEW AREAS WE'RE GOING TO BUILDING OUT FIVER TO EVERY PARCEL.
AND SO BY DOING THAT. YOU'VE INCURRED OR CALCULATED THE COST PER PARCEL.
THEN THEREFORE YOU CAN OFFER STANDARDIZED RATE.
THEY HAVE REPAIR FROM CENTRAL OFFICE.
ALL THE WAY TO THEIR BUSINESS.
AND SO THERE'S A SUBSTANTIAL COST ASSOCIATED WITH THAT.
THE DIFFERENCE IN THESE SHARED RATES ARE YOU HAVE THE CENTRAL OFFICE DATA CENTERS BUT MAYBE RIGHT AT THE CURB THERE'S A SPLITTER THAT'S PLACED WHERE ONE FIBER USED FROM A CENTRAL OFFICE TO COME OUT AND FEED 64 CUSTOMER. YOU COULD DIVIDE IT AMONGST THE CUSTOMERS. IT'S NOT DEDICATED INTERNET OR BANDWIDTH. IT'S BEST EFFORT.
AVAILABILITY AND THE UP LOAD SPEEDS WILL BE TREMENDOUS HIGHER THAN ANY OTHER PROVIDER IN THE CITY OF FT.
PIERCE. COMMERCIAL RESIDENTIAL ARE ALL NEW CUSTOMERS. BUT THAT ENTERPRISE ARE DEDICATED CUSTOMERS THAT WE ALREADY HAVE.
>> YES, MA'AM. AND WE ALSO HAVE OTHER CUSTOMERS THAT WOULD WANT THAT.
IF YOU LOOK INTO THE RESOLUTION THERE'S A CLAUSE FOR COMMERCIAL CUSTOMERS. FOR COMMERCIAL CUSTOMER TO GET THE PAR OR SHARED RATE. WE'RE TYPICALLY REQUIRED LESS THAN 20 USERS. AND BECAUSE THE REASON BEHIND THAT IS LET'S SAY YOU HAVE 100 EMPLOYEES ON COMPUTERS AND THEY SUBSCRIBE TO GIG SERVICE.
THEY WILL BE UTILIZING MORE BAND WIDTH MORE FREQUENTLY THAN A BUSINESS THAT HAS TWO USERS DAY THINCALLY RUN AND WANT A SPECIFIC SERVICE LEVEL AGREEMENT.
THEY WANT GUARANTEED SPEEDS WHEN THEY NEED THEM.
THEY ARE THE ABILITY TO PAY THOSE HIGHER PRICES.
>> I JUST TOLD YOU HOW LITTLE I KNOW ABOUT THIS.
YOU'RE EXPLAINING TO ME SO I CAN UNDERSTAND IT.
AND I GUESS WHAT I'M REALLY TRYING TO FIND OUT IS THIS NOT A RATE INCREASE. THIS WE'RE SETTING RATES.
YES, MA'AM. >> I COULD PROBABLY SHOW YOU SOMETHING REAL QUICK. THEY BASE LEVEL BUSINESS SERVICE IS 50MEGA BITS. IT'S $80 WE'RE SAYING 100ME DP S. YOU WILL NOTICE THE BUSINESSES ARE A LITTLE BIT HIGHER.
ON OUR RATES AND WHAT WE FOUND THROUGH RESEARCH IS THAT BUSINESSES ARE MORE CONCERNED ABOUT THEIR SERVICE QUALITY. WE DON'T WANT TO BE SO HIGH.
I THINK THAT BEING AT THE MARKET.
IS MUCH BETTER BECAUSE WHEN THEY ARE -- WHEN THEY THEY
[01:30:03]
JUST LOST MORE MONEY THAN THEY PAY.P SIDE AND RESIDENTIAL SIDE, OUR SERVICE IS GOING TO BE SO MUCH BETTER THAN THE OTHER COMPETITORS BUT MOST RESIDENTS ARE CONCERNED ABOUT HOW MUCH THEY PLAY.THE CURRENT SERVICES WE WILL BE OFFERING MUCH HIGHER THAN WHAT PEOPLE MAY NEED. COMCAST OFFERS A $50MEG THAT'S A $50MEG BY THREE MEGS.
>> WE SAY BASE LEVEL SERVICE IS 100MEG BY 100MEGS AND WE'RE GOING TO OFFER THAT FOR $49 WHERE COMCAST OFFERING FOR $56 NOW THAT'S THEIR RETAIL RATE.
THEY MAY RUN PROMOTIONS. 12 MONTHS THEN SWITCH OUT.
YOU GET INTO YOUTH CONTRACT. FOR US, US BEING UTILITY WE WANT THEM TO BE OUR LONG-TERM CUSTOMER.
WE DON'T WANT HAVE THEM CHANGING OUT.
WE WANT THEM TO BE CUSTOMERS FOR YEARS.
>> JUST AS THEY ARE OPERATE IN THE REST OF OUR UTILITIES. DOES THAT HELP TO EXPLAIN?
>> IT DOES. THAT'S -- WE'RE TALKING SPEED. WE TALKING SPEED OF
WE WILL -- WE BELIEVE THAT WE WILL BE BETTER AND SPEED AND RELIABILITY. ONE OF THE MAJOR POINTS IN RELIABILITY IS IT'S ALL FIBER BASED WHERE YOU HAVE AN AGE COPPER SYSTEM THAT IS SUSCEPTIBLE TO CORROSION AND THEY HAVE ISSUES, AND NOT ONLY THAT, IS THEY HAVE ACTIVE EQUIPMENT MEANING THEY HAVE DEVICES OUT IN THE FIELD. IF A POWER OUTAGE HAPPEN THEY LOSE DETECTIVE. WE WILL NOT HAVE ACTIVE EQUIPMENT IN THE FEED. IT WILL BE INSIDE OF OUR DATA CENTERS. ALL LOCATIONED IN A BACK UP GENERATORS STORM HARDENED ENVIRONMENT.
>> IF WE LOSE POWER OUR OWN POWER.
>> ESSENTIALLY SOMEONE COULD BE OUT OF POWER AND THEY COULD HAVE A LITTLE SMALL GENERATOR OR SMALL BATTERY, AND THEY PLUG IN THEIR ONT. THEIR ROUTER, AND THEY STILL GOT INTERNET. THAT'S A MAJOR DIFFERENCE BETWEEN US AND OTHER COMPETITORS.
THAT'S SIGNIFICANT VALUE FOR US.
>> THANK YOU. >> I HAVE A FEW QUESTIONS.
>> MISS BENNETT HAD A QUESTION FIRST.
>> HOW DO WE COME UP WITH THE COST PER MVPS?
HOW DID WE COME UP? >> DID TONS OF RESEARCH.
THERE WASN'T A SPECIFIC MODEL TO DO THAT.
AND SO WHAT WE DID WAS WE FOUND OUT THAT RATES ARE REALLY SET ON MARKET. PFUA NET IS COMPETITIVE LOCAL EXCHANGE CARRIER WE'RE REGISTERED TO BE A PROVIDER THROUGH FCC THE FEDERAL COMMUNITICATION COMMISSION.
WE HAVE TO BE COMPETITIVE AGAINST OTHER INCUMBENT VERSES WASTEWATER AND ESSENTIALLY GAS.
GAS HAS SOME COMPETITION. NOT LIKE US.
WHEN WE COME IN. IF WE'RE NOT LOWER OR BETTER SERVICE. WE WON'T GET ANY SUBSCRIBERS. OUR RATES ARE BASED ON MARKET. AND THEN WHAT WE DID WAS WITH WORKING WITH NETWORK COMMUNICATION AND HAVING HE REVIEWED OUR TOTAL COST MODEL.
AND LOOKED AT AS RATE SUFFICIENCY STUDY BASED ON CERTAIN SUBSCRIBER COUNTS. WE WERE ABLE TO SAY OKAY IF WE LOOK AT OUR LOANS OF THE 3 MILLION DOLLARS THAT WE'RE PROJECTING WITH THE DENT FINANCING.
WE'RE ABLE TO LOOK AT SAY, ARE THESE COST GOING TO BE COVERED BASED ON THESE TAKE RATES.
WE LOOKED AT INDUSTRY STANDARD OF 35%.
WHICH IS PRETTY COMMON. OUR MAJOR FOCUS IN THE BEGINNING IS GOING TO BE THE SMALL BUSINESS CUSTOMERS.
>> AGAIN, WHAT ARE WE DOING TO ADVERTISE THESE SERVICES.
>> SURE. UNTIL TODAY WE HAVE BEEN A
[01:35:01]
HIDDEN SECRET. MY GOAL IS NOT TO ADVERTISE.BECAUSE ONCE THE INCUMBENTS AND INDIVIDUALS WATCHING THIS THEY WILL SAY, WHOA. YOU ARE BETTER SPEED.
BETTER CUSTOMER SERVICE. MORE RELIABLE AND CHEAPER THAN ME. THEY WILL NOT BE HAPPY.
AND SO WE ARE GOING TO BE RAMPING UP MARKETING CAMPAIGN. WE WILL BE USING CREATING ONLINE MARKETPLACE WHERE WE'LL BE CREATING ZONES FOR SPECIFIC AREAS THAT WE WILL BE TARGETING.
AND THEN WE'LL TRY TO ENROLL CHAMPIONS IN THOSE NEIGHBORHOODS AND SAY, LOOK, ARE YOU WANTING TO GET THIS IN YOUR NEIGHBORHOOD? I KNOW MISS GIBBONS SHE WILL BE CHAMPION FOR DOWNTOWN. SHE WILL GO DOOR TO DOOR AND TALK TO EVERYONE ELSE. THE IDEA HARD TO GO INTO NEIGHBORHOOD. HARD TO GO INTO BUSINESS AREA THAT ONLY GOT ONE SUBSCRIBER.
IF YOU COME IN, WE GET EVERYBODY MAN THAT IS A PROFITABLE MARKET. AND HOPES ARE THAT IF WE GOT SUCH A GREAT TAKE RATE. WHO KNOWS THE POSSIBILITY IN FUTURE THAT OUR RATES COULD DECREASE.
THAT'S THE MAJOR DIFFERENCE BETWEEN MUNICIPAL BROADBAND AND OTHER PROVIDERS WHERE THEIR BOTTOM LINE IS GOING BACK TO THEIR SHAREHOLDERS, OUR BOTTOM LINE IS GOING BACK INTO THE UTILITY TO INVEST IN THE FEATURE TO EXPAND INTO OTHER AREAS THAT MAY NOT HAVE A GOOD TAKE RATE. WHICH ALLOWS US TO GO BUILD INTO A NEIGHBORHOOD THAT PROBABLY CAN'T AFFORD IT.
BUT WE COULD BUILD THESE TYPE OF TECHNOLOGIES THESE TYPE OF DEPLOYMENTS INTO THOSE NEIGHBORHOODS WHICH WOULD -- WE MAY NOT HAVE PROFITABLE TAKE RATES.
THIS COULD HELP FUND IT. >> WHAT ARE WE DOING ABOUT ANY KIND OF TELEVISION SERVICES? VOICE OVER IP? ANY OF THAT STUFF GOING TO
WE DONE A LOT OF RESEARCH. IN THE AREA OF VIDEO.
CABLE TELEVISION IS A DYING MARKET.
THERE'S A SIGNIFICANT COST CAPITAL COST FOR EQUIPMENT.
WHAT THAT MEANS YOU HAVE TO EATEN THE EQUIPMENT.
AND THEN REPUBLISH -- THOSE CHANNELS AND WORK WITH THE DIFFERENT CHANNEL OFFERINGS IT'S REALLY INTERESTING MARKET RIGHT NOW. BECAUSE EVERYBODY IS WANTING TO BREAK OFF. BECAUSE THEY WANT DISNEY PLUS AND ESPN. THEY ARE BREAKING OUT AND EVERYBODY WANT ALA- CARTE. YOU DON'T WANT 3,000 CHANNEL AND YOU WATCH FIVE. WE'RE NOT GOING TO BE OFFERING VIDEO SERVICE AT THE TIME.
WE'RE CONSTANTLY TALKING WITH PEOPLE -- COMPANIES THAT HEY, LOOK, YOU CAN DO IT OVER THE TOP.
AND WHAT THAT REFERS TO IS THEY CAN COME THROUGH OUR NETWORK AND OFFER THE VIDEO SERVICE.
WE WOULD MAYBE GET AN AFFILIATE AGREEMENT WITH THEM. WE'RE KIND OF HANDS OFF.
WE'RE NOT -- WE'RE NOT GOING TO BE MONITORING THEIR CHANNELS AND THINGS. WE COULD GET A CERTAIN AMOUNT OF REVENUE FROM IT. WE HAVEN'T FOUND ONE OF THOSE THAT REALLY EFFECTIVE FOR US.
BUT WE ARE TALKING WITH VARIOUS AFFILIATE STREAMING SERVICES. MAYBE SLING TV AND HULA TV.
IF WE CAN EDUCATE THE CUSTOMERS, WE CAN SAFE THEM MONEY. MANY 160 CABLE BILL.
BY CUTTING THE CABLE. NOW THEY ARE AT $60, $70.
YOU KNOW BECAUSE NOW THEY'VE PAID A $20 OR $10 FEE FOR DISNEY PLUS OR $30 FOR SLING TV OR SOMETHING LIKE THAT.
AND THEY GET ALL THE CHANNELS THEY WANT.
IF THEY JUST WANT NFL PACKAGE.
BUY THE ONE PACKAGE AND STREAM IT THROUGH THEIR DEVICE. WE WILL DO SIGNIFICANT EDUCATIONAL CAMPAIGN TO EDUCATE OUR CUSTOMERS ON THE VALUE OF MOVING AWAY FROM CABLE AND MOVING TOWARD
ONLINE STREAMING. >> I THINK YOU JUST CAME UP WITH YOUR MARKETING TAG LINE THERE.
>> CONCERNING VOICE OVER IP. WE ARE IN TALKS WITH PARTNERS WHO OFFER OVER THE TOP SERVICE, WHERE WE COULD BE HANDS OFF, THEY COULD COME AND SELL IT FOR US.
AND ALL WE COULD DO WE WOULDN'T PAY ANYTHING.
WE WOULD RECEIVE AN AFFILIATE PORTION AND WE DON'T HAVE TO DO ANYTHING FOR IT.
THAT VOICE OVER IP SERVICE IS CRITICAL WHEN WE START MARKETING TO SMALL BUSINESSES BECAUSE OFTENTIMES THE COMCAST AND AT&T OF THE WORLD WANT TO COUPLE. WE GOT THIS DOUBLE PLAY, TR TRIPLE PLAY.
[01:40:01]
YOU GOT INTERNET AND PHONE. WE WILL BE ABLE TO DO VERY SIMILAR THINGS. WE AREN'T FINALIZING THE CONTRACTS YET. WE UNDERSTAND THAT, THAT'S A NEED FOR BUSINESSES. BUT I DON'T ENVISION OR SEEING US MOVING INTO CABLE OR OFFERING VIDEO SERVICEBRANDED BY FPLA NET.COM. >> HOW WILL YOU BUILD THIS.
WILL IT BE ON THE ONE BILL. SEPARATE BILLING?
>> WE'RE WORKING WITH CUSTOMER SERVICE TO BEGIN TALKING ABOUT THE LOGISTICS OF HOW DO YOU DO THAT? WE'VE KIND OF GOT IT BOTH WAYS CURRENTLY.
WE HAVE SOME CUSTOMERS THAT ARE CURRENTLY OUTSIDE OF ELECTRIC TERRITORY AND WE CREATED CERTAIN INTERNET ACCOUNTS. THERE'S VALUE IN BOTH SIDES.
ONE IS SOME PEOPLE WANT ONE BILL.
WHICH IS GREAT. THE NEGATIVE ON THAT, IS IF SOMEONE CAN'T AFFORD THEIR TOTAL BILL, THEY CAN'T JUST CHOOSE TO NOT PAY THEIR INTERNET AND THEIR ELECTRIC IS CUT OFF. AND SO THAT'S SOME THINGS THAT WE NEED TO REALLY TALK ABOUT WITH STAFF.
WE HAVEN'T GOT TO THAT POINT YET.
WE HAVE TO BRING THESE TO CITY COMMISSION FOR FINAL APPROVAL. BUT WE WANTED TO GET THIS MOVING OUR GOAL IS TO START DEPLOYING IN THE FIRST QUARTER OF '22. WE'VE GOT, I KNOW.
WE'RE CLOSE TO DOING THE HIGH-LEVEL DESIGN COMPLETED FOR DOWNTOWN AREA. I KNOW YOU'RE EXCITED ABOUT IT. WE'RE EXCITED TO BRING GREAT
SERVICE TO YOU. >> TWO QUESTIONS.
ONE, WHAT IS THE MINIMUM PLAN CUSTOMERS WILL HAVE TO PURCHASE IN ORDER TO STREAM MAYBE, MAYBE THEY JUST STREAM THEIR TELEVISION CONSTANTLY.
THEY HAVE CABLE. >> OUR MINIMUM PLAN WOULD BE ENOUGH. OUR 100MEG SERVICE IS PLENTY. FOR EXAMPLE, 4K.
NO ONE IS STREAMING 44-K. YOU CAN BUY 4K SERVICE.
IF YOU HAD FOUR DEVICES YOU WOULD BE SUSTAINED WAND WIDTH OF 100 TO 115 MEGA BITS PER SECOND.
YOU TRY TO STREAM AND DOCTOR SEEING TO SEE SOMETHING.
THEY WANT TO SEE IT CLEAR. THE CURRENT PROVIDERS WITH A 3 33M MEGABIT.
THERE'S A LOT OF TALKS. THE LEGISLATION WAS JUST PASSED FEW DAYS WITH THE INFRASTRUCTURE BILL.
THEY TRY TO REDEFINE WHAT CURRENT UNDER SERVED IS.
REQUIREMENT OF 25MEGS DOWN AND THREE MEGS UP.
THEY RYE TO DEFINE THAT I BELIEVE IT'S 100 TO 20.
BECAUSE OF DEPLOYING FIBER THOSE LEVELS OF COST ARE INCREMENTAL. THE COST IS GETTING THE FIBER THERE. THAT CAPITAL.
ONCE IT'S THERE, THIS IS A 50-YEAR INFRASTRUCTURE.
IT'S OUT THERE. IT'S SET IN AND FORGET IT.
IT'S VERY IMPORTANT FOR US TO GET THIS INFRASTRUCTURE TO OUR COMMUNITY. TO PROVIDE THE GREAT
SERVICES. >> WHAT HAPPENS IF THE PERSON EXCEEDS BASELINE. WHAT IF THEY GO OVER?
>> THERE'S PORT THRESHOLDS THAT WOULD BE PLACED.
THEY WOULDN'T BE ABLE TO GO OVER THAT 100MEGS.
WE WOULD HAVE POLICIES IN PLACE FOR SOMEONE THAT'S TRYING TO LET'S SAY MIND BITCOIN.
THEY ARE OVER HERE AND NO IDEA WHAT THAT MEANT.
>> YOU CAN SEE ON THIS CUSTOMER WHAT THEY THEIR USAGE ARE. AND OUR POLICIES WE WOULD PLACE IT IN AND SAY LISTEN, YOU'RE AVERAGE SUSTAINED BANDWIDTH SHOULD BE THERE. YOUR SITTING HERE AT 900MEGABITS. IT'S HOW WE DEAL WITH THE ELECTRIC AND LOOK AT THE DEMAND POWER FACTOR.
WHEN A COMPANY HAD BAD POWER FACTOR.
WE DISCIPLINE THEM. RECENTLY MET WITH OCALA.
[01:45:11]
THEY HAVE A SIMILAR PROCESS WHERE THEY WOULD MONITOR INDIVIDUALS AND IF THERE WAS AN ABUSER OF IT.THEY WOULD THEN GO CONTROL THAT PORT SPEED.
I HOPE WE DON'T HAVE TO DO THAT.
BECAUSE OF THE INFRASTRUCTURE THAT WE'RE PUTTING IN. I HOPE THAT ANSWERS YOUR
>> SOUNDS LIKE YOU HAVE A PROCESS THERE.
WHETHER I UNDERSTAND THE PORTS AND THE TECHNICAL ASPECTS THAT GO ON COMPUTERS.
I MAY NOT. IT SOUNDS LIKE TO ME IF THEY EXCEED YOU WILL SLOW IT DOWN.
>> CORRECT. >> PERHAPS GIVE THEM A CALL YOU NEED TOWN -- TO INCREASE YOUR PLAN.
THOSE ARE OPTIONS WE COULD GO ABOUT.
>> THEY WOULDN'T BE ABLE TO. YOU MAY HAVE 50MEGABITS BUT ONLY ABLE TO GET 20. WE WOULD BE UNLEASHING 100 AND IT WOULDN'T A THROTTLE UNTIL YOU HAD 100 FOR THE ENTIRE MONTH. BASICALLY.
>> CORRECT. >> AND WE CAN SET STRUCTURALS IF WE DESIRE AGAIN THE TECHNOLOGY THAT WE'RE DEPLOYING IS TEN GIGS SYMMETRICAL.
IT'S SIMILAR TECHNOLOGY TO COMMUNITIES LIKE CEDAR FALLS, IOWA WHICHES NAMED THE FASTEST ISP IN THE NATION. BEST GAMING ISP IN THE NATION IN '21. THESE SAME TECHNOLOGY RESTLESS DEPLOYING. PLANNED DEVELOPMENT IN ORLANDO USES THE TECHNOLOGY. I DON'T THINK THAT WE WILL
HAVE THOSE ISSUES. >> ANY FURTHER QUESTIONS?
>> THERE'S A COMMENT. ALONG WITH MOVING THE WASTEWATER PLANT OFF THE ISLAND.
I THINK THAT FPUA NET IS ONE OF THE TWO THINGS THAT I BELIEVE WE HAVE AN OPPORTUNITY TO REALLY SIGNIFICANTLY IMPACT THE CULTURE AND OPPORTUNITIES IN OUR COMMUNITY. SO THE FASTER WE CAN EXPAND IT. FOR ME THE BETTER.
TWO, LET'S TAKE A NEIGHBORHOOD LIKE I DON'T KNOW LIKE PARADISE PARK. WHAT KIND OF UPTAKE WOULD WE NEED IN THAT NEIGHBORHOOD. WHAT PERCENTAGE ARE YOU LOOKING AT BEFORE YOU EXPAND THERE?
>> BASED ON MODEL YOU LOOK AT 35% IS WHAT WE WOULD DO.
YOU CAN TAKE LINCOLN PARK AS THE GOOD EXAMPLE.
LINCOLN PARK BY ITSELF WILL PROBABLY NOT GET THAT TYPE OF TAKE. BUT WITH FUNDING OF OTHER PARTNERS, THAT MAY ENCOURAGE OR HELP THAT HAPPEN.
NOW THERE'S NEW LEGISLATION THAT JUST CAME OUT WHICH IS THE EMERGENCY BROADBAND BENEFIT.
I DON'T KNOW IF YOU ARE FAMILIAR WITH THAT TERM.
THEY OFFER $50 VOUCHER FOR INDIVIDUALS THAT ARE LOW-INCOME. THEY HAVE REDUCED LUNCH.
THEY LOT THEIR JOB DURING COVID.
ESSENTIALLY BASED ON OUR RATES, INDIVIDUALS COULD ACTUALLY GET FREE SERVICE FROM US.
THAT COULD SUBSTANTIALLY INCREASE OUR OVERALL TAKE RATE IN THOSE -- IN NEIGHBORHOODS.
THE 35% IS GOING TO REALLY -- IS THAT THE INDUSTRY STANDARD. THAT'S WHAT OUR -- MODEL IS
BUILT ON. >> HOW DO YOU MEASURE TAKE RATE. WHAT DOES THAT LOOK LIKE?
>> THAT WOULD BE GOAL. TO HAVE CONFIRMED CONTRACTOR WITH THE SUBSCRIBER PRIOR TO START OF CONSTRUCTION.
>> WE COULD TARGET -- WE COULD REDUCE THOSE BASED ON SOME BILLS MAYBE LESS. BASED ON THE DISTANCES OF THE PARCELS. BECAUSE COST COULD BE LESS.
THIS KIND OF -- THERE'S SOME FINESSE IN THAT.
>> MR. CHAIRMAN, WE INTEND TO PRESENT TO THE CITY COMMISSION FOR APPROVAL. THERE'S AN ISSUE ABOUT THE BOND RESOLUTION. AND WHETHER OR NOT THIS FALLS UNDER BASIC UTILITY. DOESN'T FALL UNDER UTILITY SYSTEMS. WE NEED TO ASK THE CITY TO APPROVE THIS FOR US. WE'RE ALLOWED TO DO IT WITH
[01:50:02]
THE PERMISSION OF THE CITY COMMISSION.THE RESOLUTION THE SECOND WHEREAS SAID THE AUTHORITY RESPONSIBLE FOR THE DEVELOPMENT PRODUCTION DISTRIBUTION FOR ELECTRICITY GAS, WATER SANITARY SOURCE AND DISPOSAL. THEY ALSO SAY THIS HAS BEEN A HIDDEN SECRET. BUT NOW IT'S GOING TO GROW AS MUCH WE WANT TO GET PRESENTED THIS RESOLUTION TO THE CITY COMMISSION FOR THEIR AUTHORIZATION.
TO GO FORWARD. RESOLUTION JUST THE WAY IT'S DRIVEN. IF YOU FOLLOW WHAT I'M
>> IT'S PART OF THE MOTION IF YOU ACCEPTANCE I WOULD LIKE YOU TO DIRECT THE STAFF PRESENT IN THE CITY COMMISSION. WITH THEIR AUTHORIZATION.
>> I'VE ALREADY TALKED WITH THE CITY ABOUT THAT.
THEY ARE WAITING TO HEAR FROM US TO GO FORWARD WITH
IT. >> JUST FOR CLARIFICATION, WHOEVER MAKES THE MOTION TO APPROVE THE RESOLUTION ALSO NEEDS TO DIRECT -- PASS THAT IT BE SUBMITTED TO THE CITY.
>> AUTHORIZED STAFF TO PRESENT TO CITY COMMISSION.
>> >> I HAVE A COUPLE OF QUESTIONS. DO YOU HAVE TARGETED AREA
YOU WILL START WITH? >> YES, MA'AM.
>> WHAT ARE THEY? >> OBVIOUSLY DOWNTOWN IS A KEY AREA FOR US. WITH THE DOWNTOWN SMART CITY INITIATIVE AS WELL. WE HAVE THE INDUSTRIAL AREA UP IN -- LOCATED IN NEXT TO THE AIRPORT.
WE GOT A LOT OF FIBER IN THOSE AREAS.
AND THEN THE OTHER AREAS ARE KIND OF LOW HANGING FRUIT FOR US WHERE WE'VE GOT AREAS OF EXISTING POINTS AND ENTRY INTO THE SYSTEM AND WE'VE GOT COMMERCIAL PARCELS THAT WE CAN START GRABBING CUSTOMERS FOR JUST INSTALLING SERVICE DROPS. WHERE WE HAVE LOTS OF PEOPLE HAS BEEN CALLING US FOR TWO YEARS.
WE HAVE A LIST OF PEOPLE. PROBABLY GOT SIX CALLS IN LAST WEEK. THAT'S JUST FOR -- WHAT'S TODAY? TUESDAY? WE GOT A BUNCH OF CALLS. THOSE ARE THINGS THAT WE WILL LOOK AT. HOW MANY PEOPLE IN THE AREAS AND START TARGETING THOSE SPECIFIC ZONES.
IF I HAD ALL THE MONEY, I WANT WE WOULD JUST GO BUILD THE ENTIRE CITY. BUT YOU KNOW, THE IDEA IS IF I CAN BUILD AN AREA THAT WE WILL GET GOOD TAKE RATES.
THOSE SPECIFIC AREAS WILL HELP FUND ADDITIONAL AREAS.
>> AND ALSO YOU NEED TO KEEP IN MIND THAT THERE A LOT OF HOME-BASED BUSINESSES. YOU MAY END UP IN LIGHT OF MR. FEE'S QUESTION, IF THERE'S HEAVY USAGE OR THERE MAY -- THERE MAY BE A HOME BASED BUSINESS IN THAT MAY NEED TO BE A COMMERCIAL RATE.
OR -- >> WE DID SOME RESEARCH IN THAT. AND INSTEAD OF US PUTTING LIMITS AT THE I'M. LET'S EXPERIENCE THIS.
LET'S DO SOME TESTING INSTEAD OF PUTTING IN HARD LIMITS AT THE POINT. BECAUSE WE TALKED WITH DIFFERENT UTILITIES AND DIFFERENT CONSULTANTS, AND IT WASN'T REALLY CLEAR. IT WASN'T ALWAYS DO THIS.
AND SO I FIGURED THE BEST WAY FOR TO US DO IT IS TO TRY TO START. AND THEN WE'RE ABLE TO GET AND TAKE A LOOK AT VARIOUS PLACES.
>> I HEARD YOU SPEAKING ON THE COMMERCIAL BUSINESSES.
BUT YOU NEVER MENTIONED THE RESIDENTIAL AREAS THAT
WE HAVEN'T IDENTIFIED KEY RESIDENTIAL AREAS AT THE MOMENT. OTHER THAN THE LINCOLN PARK AREA. THAT WE HAVE THE LINCOLN
PARK PROJECT. >> BECAUSE I DON'T HAVE THE CURRENT FUNDING I ONLY HAVE SO MUCH DOLLARS AVAILABLE.
>> IF THE BOARD SAYS, WE DON'T WANT YOU TO DO COMMERCIAL, WE WANT YOU TO FOCUS ON RESIDENTIAL, I GUESS WE COULD LOOK INTO THAT.
BUT OUR FOCUS IS LOOKING AT THE MARKET THAT'S REALLY WHERE WE CAN GET HIGH TAKE RATES AND START GAINING REVENUES TO THEN GO FUND AND THEN GO REACH OUT TO THE RESIDENTIAL AREAS. BECAUSE ONE THING THAT UNIQUE ABOUT FPUA NET. IT'S NOT A SEPARATE ENTERPRISE FUND BUT IT HAS TO BE SELF-SUFFICIENT.
[01:55:03]
WE HAVE TO STAND ON OUR OWN FINANCIALLY.THAT'S IMPORTANT. >> MAYBE THE LINCOLN PARK PROJECT -- I DON'T KNOW IF MISS BENNETTS ON THE BOARD.
WHEN WE TALKED ABOUT IT. MAYBE YOU CAN 25 WORDS OR LESS EXPLAIN WHAT IT IS. THERE WAS A FEW YEARS AGO.
THERE WAS A LYNN KOJ PARK SMART NEIGHBORHOOD INITIATIVE. THAT STAND BETWEEN 7TH STREET 25TH STREET AVENUE, D AND ORANGE AVENUE.
THAT THE SCOPE HAS CHANGED A FEW SOMETIME.
ONE WAS JUST A WIRELESS SYSTEM.
WE DID A STUDY FOUND OUT THAT WASN'T VIABLE.
AS THE LONG-TERM SYSTEM. AND SO WE'VE WORKED ON DOING SOME FIBER TO THE HOME TO ALL THE PARCELS WITH COLLABORATION OF THE CITY OF FT. PIERCE, ALAGAINY FRANCIS MINISTRIES AND ST. LUCIE COUNTY.
WE BROKE IT INTO TWO ZONES. WE'RE KIND OF IN CONVERSATIONS WITH THEM OF UPDATING THE MOU AT THE
>> ANYBODY CARE TO MAKE A MOTION?
>> MOVE APPROVAL FOR RESOLUTION UA-2021-14.
>> RESOLUTION UA-2021-14. RESOLUTION ESTABLISHING THE SCHEDULE OF RATE AND CHARGES FOR THE SERVICES AND FACILITIES FURNISHED BY THE FPUA NET SYSTEM OF FT. PIERCE UTILITIES UTILITY AUTHORITY FT. PIERCE, FLORIDA IN ACCORDANCE WITH ARTICLE 12 OF THE CHARTER OF THE CITY OF FT. PIERCE, FLORIDA.
AND PROVIDING FOR EFFECTIVE DATE HERE OF.
>> MOVE APPROVAL OF RESOLUTION 20-2021-14.
IT'S INCLUDED IN WILL. DO I HAVE TO SAY IT
SEPARATE? >> PUT IT IN THE RECORD.
>> INCLUDING PRESENTING TO THE CITY COMMISSION THESE
>> PLEASE CALL THE ROLL. BRACK -- NOW WE WILL BE TAKING THIS RESOLUTION FOR APPROVAL IN FRONT OF THE APPROPRIATE CITY OFFICIALS; CORRECT?
>> MY PLEASURE. MR. DIRECTOR DO YOU HAVE ANY
ITEMS? >> I THINK WE'VE DONE ENOUGH
[K. ATTORNEY]
DAMAGE FOR THE DAY. NO FURTHER COMMENTS, THANKTHE NEW DIRECTOR I WORKED OUT THE TERMS OF THE CONTRACT AND WE'VE HAD TO PRESENT THAT TO BOARD AT THE
[L. COMMENTS FROM BOARD MEMBERS]
FIRST MEETING IN DECEMBER. FOR YOUR APPROVAL.>> THANK YOU. >> ANY COMMENTS FROM ANY
OTHER BOARD MEMBERS? >> I HAVE JUST ONE.
I WASN'T 100% CLEAR WHAT ALL THE BENEFITS OR THE MOTIVATION FROM THE CITY COMMISSION WAS FOR HAVING THE TREASURE COAST REGIONAL PLANNING COMMISSION INVOLVED WITH THE MOVING OF THE WASTEWATER PLANT.
I DO INTEND ON SETTING UP MEETINGS WITH THE COMMISSIONERS TO KIND OF GO OVER THAT AND DISCUSS WHAT THEIR HOPES ARE FOR INVOLVING A THIRD PARTY.
AND I JUST -- I JUST WANTED TO STATE THAT TO THE REST OF
THE BOARD. >> PLEASE TRY TO CIRCULATE BY E-MAIL WHAT YOUR FINDINGS ARE.
>> IS THAT A SUNSHINE VIOLATION?
>> THEY CAN CIRCULATE BY -- I THINK HE CAN CIRCULATE BY E-MAIL TO ALL DIRECTORS SO LONG AS IT'%-R
>> THE RESPONSES YOU TALK ABOUT?
>> KIND OF THE RESULTS OF THE DISCUSSIONS THAT I HAVE WITH THE COMMISSIONER IS WHAT YOU ARE ASKING FOR;
CORRECT? >> PROBABLY BETTER TO DO
THAT AT THE MEETING HERE. >> OKAY.
>> ANY OTHER DISCUSSIONS? >> I THINK THAT WOULD BE GREAT. I WOULD WELCOME IT.
I DON'T KNOW IF WE CAN TALK -- YOU AND I CAN TALK.
WE HAVE TO GET YOUR FEEDBACK THERE.
>> TALK AWAY RIGHT NOW. >> YOU CAN TALK AWAY RIGHT
>> I CAN. BUT I WON'T RIGHT NOW.
>> I MEAN, I KNOW WE'VE TALKED A LITTLE BIT ABOUT
[02:00:02]
MARKETING AND EVERYTHING. AND I NEED TO PUT JAY ON THE SPOT. I WOULD LOVE FOR HER TO GIVEN A UPDATE ON WHAT SHE'S IS DOING COMMUNICATE OUT AND WHAT OUR GENERAL FUTURE IS OF THAT.I DON'T KNOW IF THAT WOULD BE POSSIBLE TO GIVE HER AN
OPPORTUNITY. >> NEXT MEETING YOU WOULD
>> ANY OTHER
* This transcript was compiled from uncorrected Closed Captioning.