[G.1. POA NO. 22-31: Approve 1) the single source purchase of 15kV underground electric cable from Stuart C. Irby Company, of Jackson, Mississippi, in an amount not to exceed $29,625; and 2) additional funding in an amount not to exceed $200,000 annually for inventory purchases, for a total of $229,625 for the period of March 15, 2022 thru March 14, 2023]

>> I DON'T SEE ANY OLD BUSINESS.

WHICH WILL MOVE TO NEW BUSINESS.

>> THANK YOU, MR. CHAIRMAN AND MEMBERS OF THE BOARD.

GOOD AFTERNOON. THE FIRST REQUEST THIS AFTERNOON APPROVAL FOR THE PURCHASE OF 15K V.

>> GOOD AFTERNOON CHAIRMAN FEE AND MEMBERS OF THE BOARD. I'M WITH THE ELECT STRIKE AND GAS ENGINEERING AND PROVIDE FURTHER INCITE ON THIS AGENDA ITEM. ON SEPTEMBER 15TH.

2020 THE BOARD APPROVED PO CONTRACT WITH STEWART CIRBY FOR THE PURCHASE OF 15KV UNDER GROUND ELECTRIC CABLE.

THIS CABLE TO BE USED FOR UNDERGROUND CIRCUITS AND USED FOR ANY -- WHEN WE PERFORM CRITICAL MAINTENANCE, RESTORATION STORM HARDENING AND CONSTRUCTION REQUIRED TO ACCOMMODATE FOR NEW CUSTOMERS. THE BOARD APPROVED THAT CONTRACT ON SEPTEMBER 15TH, 2020.

HOWEVER ON NOVEMBER 30TH. 2021.

IRBY INFORMED THEY WOULD NO LONGER BE ABLE TO HONOR THE CONTRACT PRICES DUE TO THE SOURCE IN PRICING.

BECAUSE OF THESE INCREASING ISSUE.

THERE COMPETITIVE QUOTING. THEREFORE STAFF REQUESTING APPROVAL OF SINGLE SOURCE PURCHASE OF 15K V UNDERUNDER ELECTRIC CABLE IN THE AMOUNT NOT TO EXCEED $29,625 ALONG WITH APPROVAL FOR ADDITIONAL FUNDING AND YOU'LL FUNDING IN AMOUNT NOT TO EXCEED $200,000 FOR INVENTORY PURCHASES BETWEEN MARCH 15TH, 2022 THROUGH MARCH 14TH, 2023. ANY QUESTIONS OF THE BOARD?

>> I HAVE A QUESTION. THIS IS A -- THIS IS A MAP

WILL COVER A YEAR? >> YES, MA'AM.

IS THAT RIGHT? >> YES, MA'AM.

AND THEN IN THE YEAR THEN YOU COME BACK AND ASK FOR

APPROVAL FOR THE NEXT YEAR? >> YES, MA'AM.

>> WHICH MAY OR MAY NOT HAVE PRICE INCREASES.

PROBABLY WILL. THIS IS ENOUGH TO LAST FOR A YEAR; RIGHT. YES, MA'AM.

>> ANY OTHER QUESTIONS. MR. CHAIR?

>> THEY WEREN'T ABLE TO HONOR THE PREVIOUSLY AGREED UPON PRICES. HOW MUCH DID UNDER GROUND

CABLE GO UP. >> IF WE LOOK AT CONSIDERING THE 15K V TABLE WENT FROM $2 A FOOT BETWEEN $5 AND $6.

THESE COST ARE FLUCTUATING WEEKLY.

>> UNDER GROUND CABLE IS BY FAR THE MOST COMMON SIZE

THAT WE USE? >> YES, SIR.

>> ANY OTHER QUESTIONS? >> I GUESS I DON'T UNDERSTAND WHY THE AMOUNT REQUESTED IS 29,625 AND THEN YOU WANT ADDITIONAL $200 -- EXPLAIN THAT MOW.

>>> 29,625 FOR THE INITIAL ORDER.

WE'RE LOOKING TO ORDER THIS, UNDERSTAND THIS APPROVED.

THE ADDITIONAL FUNDING IS SUBSEQUENT ORDER AS THE YEAR

GOES ON. >> YOU THINK 29,000 WILL

COVER A YEAR. >> THAT'S RIGHT.

>> WE HAVE READ ORDER POINT. WHEN WE GET TO RE-ORDER POINT IF IT'S EARLIER IN THE YEAR, THEN WE'LL COME BACK TO THE BOARD TO ASK FOR ADDITIONAL FUNDING.

WE HAVE REORDER POINT THAT FINDS THAT TRIGGER POINT FOR

COMING BACK TO THE BOARD. >> LIKE LAST YEAR HOW MUCH

WAS THIS SAME PRODUCT. >> THE PREVIOUS YEAR.

>> THE COST PER FOOT? >> OR -- TOTAL.

>> THIS ACTUALLY COVERS TWO DIFFERENT CABLE TYPES.

I WOULD HAVE TO GO BACK. >> YOU WOULD HAVE TO GO BACK

AND FIGURE IT OUT. >> I'M ASSUMING IT'S A LOT MORE. IT WILL BE HAPPENING.

>> WHAT'S THE LEAD TIME ON THE CABLE RIGHT NOW?

>> DEPENDING ON HOW MUCH YOU WILLING TO PAY BETWEEN 20 TO 60 WEEKS. UP FROM 4 TO 8 WEEKS.

20 TO 26. IS THAT WHAT YOU SAID, YES,

MA'AM. >> I THINK THE NEXT ITEM WILL HELP US WITH SOME OF THOSE ISSUES.

THE NEXT AGENDA ITEM THAT WE'LL TALK ABOUT.

IF I'MS NO MISTAKEN TRANSFORMER ARE DOUBLED IN PRICE RIGHT NOW WITH THE LEAD TIME OF --

>> EXTENDING OVER THE YEAR. >> WITH ARE HAVING SUPPLY CHAIN ISSUES NOT JUST IN ADDITION TO CABLE.

THERE'S TWO PRIMARY CABLES THAT YOU USE.

[00:15:01]

BUT THERE'S A SUPPLY CHAIN ISSUE THAT WE NEED TO ADDRESS. YOU KNOW THE 200,000 HOPEFULLY THAT WILL COVER A GOOD PORTION OF THE INITIAL ORDER, SO IF WE DO NEED TO GO BACK TO ORDER THE LEAD TIMES WE MAY COME BACK TO THE BOARD TO ASK FOR ADDITIONAL FUNDING. WE ARE ABILITY TO GO INTO

STORM SEASON. >> MR. CHAIRMAN, I HAVE A QUESTION. WERE YOU ANTICIPATING THIS INCREASE ALREADY. SO IT WAS ALREADY IN OUR BUDGET FOR THIS YEAR? OR --

>> I THINK IN MOST OF THOSE CASES THEY WILL TAKE IT FROM ANOTHER BUDGET SO THEY WORK -- WHATEVER THE BUDGET IT AND IF THEY NEED TO PULL MONEY FROM ANOTHER PROJECT, THEY WILL TRANSFER INTO THAT ACCOUNT.

WE'RE NOT USINE ANY FUNDS O OUTSIDE WHAT IS BUDGETED.

I THINK THAT ANSWERS YOUR QUESTION; RIGHT?

>> I MOVE APPROVAL. >> SECOND.

>> PLEASE CALL THE ROLL.

[G.2. Approval of Emergency Purchasing of Goods and Services related to preparation of 2022 Hurricane Season due to ever-changing and fast-paced market of essential services and goods.]

THANK YOU, TERRY. MR. CHAIRMAN THE NEXT REQUEST THIS AFTERNOON APPROVAL FOR EMERGENCY PURCHASES OF GOODS AND SERVICES RELATED TO THE UPCOMING 2022 STORM SENATE BILL.

MR. DANIEL RUTHERFORD SUPPORT SERVICES WILL PRESENT THIS ITEM. I WISH I WOULD HAVE PUT THIS

FIRST. >> SORRY, TERRY.

>> THANK YOU MR. CISNEROS. CHAIRMAN AND MEMBERS OF THE BOARD. THE REQUEST BEFORE YOU TODAY APPROVAL EMERGENCY PURCHASE PROCESS THROUGH THE 2022 HURRICANE SEASON ENDING NOVEMBER 30TH.

DUE TO GLOBAL SUPPLY CHAIN CHALLENGES WE'RE EXPERIENCING DIFFICULTILITY MAINTAINING ESSENTIAL SUPPLY NEEDED IN STOCK TO BE PREPARED FOR THIS YEAR'S HURRICANE SEASON. OUR PROCUREMENT POLICIES WORK WELL DURING NORMAL TIMES.

HOWEVER IN TODAY'S ENVIRONMENT IT'S JUST NOT NIMBLE ENOUGH. WE'RE ASKING FOR THE ABILITY PROACTIVELY ENGAGE MANUFACTURER AND SUPPLIER TO FIND ESSENTIAL ITEM SUCH AS TRANSFORMER, CONDUIT.

TO MAINTAIN ESSENTIAL SERVICES.

ONCE IDENTIFIED WE ASK FOR THE ABILITY TO CONTRACT DIRECTLY AND SWIFTLY TO BE ABLE TO TAKE ADVANTAGE OF OPPORTUNITY BUYING. A GOOD EXAMPLE LOCAL SUPPLIER HAS TWO-WEEK WINDOW BETWEEN LARGER PRODUCTION JOBS. IF WE CAN ACT QUICKLY THAT WINDOW CAN BELONG TO US AND WE CAN GET THE THINGS WE NEED FOR THE YARD. CONSIDERING THE CURRENT SHELF STOCK WITHOUT MORE AGGRESSIVE APPROACH WE COULD BE CLOSE TO DEPLETING RESOURCES IN THE MIDDLE OF HURRICANE SEASON. WE'RE ACTING TO BE ABLE TO GO EMERGENCY PURCHASING PROCEDURES ACCORDING TO OUR PURCHASING MANUAL. IF YOU DON'T MIND I WILL READ IT TO YOU. IF EMERGENCY PURCHASES ARE EXEMPT FROM THE NORMAL POLICY IF AN EMERGENCY SITUATION EXISTS WHEN A BREAKDOWN AND OR A THREATENED TERMINATION OF ESSENTIAL SERVICES OR DANGEROUS CONDITION DEVELOPS OR WHEN SUPPLIES ARE NEEDED FOR IMMEDIATE USE AND WORK WHICH MAY VITALLY EFFECT THE PUBLIC. IN THIS CASE, I'M THE DEPARTMENT HEAD. I THINK THAT THE PURCHASES POLICY ALLOWS ME TO WORK WITHIN THE EMERGENCY PROCEDURES BUT EMERGENCY -- WHAT'S AN EMERGENCY? THAT'S KIND OF UP FOR DEBATE. I'M HERE BEFORE YOU I BELIEVE WE'RE TEETERING IN AN EMERGENCY.

WE CAN'T GET OUR HANDS ON THE THINGS WE NEED.

RIGHT NOW IF WE FORECAST WHAT WE NEED FOR THE HURRICANE SEASON, WE'RE CLOSE.

I WANT TO BE MORE AGGRESSIVE.

TAKE A PROACTIVE APPROACH. I WANT TO ENGAGE AND FIND THOSE OPEN MANUFACTURING WINDOW AND CLAIM THEM.

-- IT MAY COST MORE MONEY. RIGHT NOW THAT'S WHAT IT IS TAKING. IF WE CAN FIND LOCAL FOLKS.

WE'VE ENGAGED A COUPLE. THEY ARE INTERESTED IN WORKING WITH AND FINDING WINDOW TO GIVE THE THINGS WE NEED. THAT WILL CUT OUT COMPLETELY THE TRANSPORTATION COST WHICH IS LARGE PART OF WHAT WE SPEND RIGHT NOW ON MATERIALS.

THAT'S WHAT WE ARE HERE TODAY TO ASK.

>> ANY QUESTIONS OF THE BOARD?

>> I HAVE A QUESTION. BASICALLY IT WOULD BE ANY PURCHASES THAT WE WOULD NORMALLY SEE AND APPROVE YOU WOULD BE ABLE TO GO AHEAD AND JUST MAKE THOSE DECISIONS. CORRECT?

>> WHAT WE'RE ASKING FOR IS THOSE ONLY ON THOSE ITEMS THAT ARE ESSENTIAL TO KEEP MAINTAINING ESSENTIAL SERVICES, POWER, WATER, FOR INSTANCE, SINGLE PHASE TRANSFORMER. UNDERGROUND PIPING.

THINGS THAT WILL KEEP THE ELECTRIC SYSTEM WORKING.

SEWER OPERATING. THINGS FOR ESSENTIAL SERVICES. WE'RE NOT ASKING TO WORK AROUND THESE RULES FOR NORMAL DAY-TO-DAY THINGS.

WE JUST NEED THINGS TO KEEP OUR WAREHOUSE INTACT IF HURRICANE ARISES WE CAN REACT PROPERLY.

>> I GUESS MY FOLLOW UP QUESTION WAS GOING TO BE

[00:20:01]

WOULD IT COME TO US AFTER SO WE KNEW WHERE WE WERE? IS THERE A STATUS UPDATE WE CAN GET?

>> CAN ABSOLUTELY DO THAT. I'M OKAY AS LONG AS WE MAKE SURE WE'RE IN THE KNOW OF WHERE WE STAND TOO, YOU

KNOW. >> ANY QUESTIONS?

>> YES. I HEARD YOU SAY THAT YOU'RE LOOKING AT LOCAL BUSINESSES IN THE AREA.

HOW FAR AWAY ARE WE LOOKING? >> AS FAR AS WE WOULD NEED TO FIND THE SERVICES THAT WE NEED.

WE ENGAGED THE COUPLE LOCALLY.

HERE IN FT. PIERCE. WE'VE ENGAGED A LOCAL COMPANY THAT CAN MAKE CONCRETE POWER POLES.

WE'VE ENGAGED A LOCAL PVC COMPANY WHO CAN MAKE CONDUIT. WE'VE ALREADY DONE THAT LOCALLY. WE'VE GOTTEN GOOD INFORMATION AND FEEDBACK WE WOULD BE WILLING TO WORK WITH YOU. THAT'S A GREAT START.

THAT'S ONLY TWO PHONE CALLS AND TWO MEETING.

IF THAT'S THE CASE. HOW MUCH BETTER CAN WE DO IF EXPAND THE SEARCH NATIONWIDE AND JUST ENABLE TO BE MORE NIMBLE. RIGHT NOW WE HAVE A COUPLE OF WAYS WE PURCHASE THINGS. IF IT GOES OUT TO BID WE GO THROUGH THE DEMAND STAR. IF IT'S SOMETHING WE NEED FOR SHELF STOCK WE GO THROUGH RCASI.

IT'S A CUMBERSOME PROCESS WHEN YOU TRY TO GET THINGS DONE QUICKLY. FOR NORMAL PROCESS IT'S OKAY. FOR TIMES LIKE THESE HURRICANE SEASON COMING. JUNE 1ST AROUND THE CORNER.

AND THE SUPPLY CHAIN IS REALLY GIVING FITS.

I THINK WE NEED TO BE MORE PROACTIVE.

>> MY FOLLOW UP QUESTION ARE THE PRICES WITHIN THE BUDGET THAT WE HAVE ALREADY BUDGETED OUT FOR?

>> RIGHT NOW WE ARE NOT PLANNING TO SPEND ANY MORE MONEY THAN WE HAVE BUDGETED. ALL THE PURCHASES THAT WE'RE TALKING ABOUT THEY ARE BUDGETED PURCHASES.

THINGS WE HAD PLANNED ON. NOT TO SAY THAT WE WON'T HIT SOMETHING THAT WILL REQUIRE US TO ASK FOR MORE MONEY.

THINGS ARE GETTING MORE EXPENSIVE.

YOU CAN'T ALWAYS GET PERFECTLY A YEAR OR 1 1/2 OUT WHEN YOU PLANNING BUDGETS.

RIGHT NOW THERE'S NO PLAN TO ASK FOR ANYTHING MORE.

HOWEVER, THAT MIGHT CHANGE. >> MR. CHAIR, MR. RUTHERFORD, HAVING BEEN ON THE OTHER SIDE OF THIS, I DON'T KNOW NECESSARILY THAT I WOULD LOCK STOCK AND BARREL AGREE THAT IT WORKS FINE IN NORMAL TIMES.

I THINK EVEN THEN IT'S CUMBERSOME.

AND SOME WAYS, PREVENT STAFF FROM MAKING THE BEST DECISIONS FOR OUR CUSTOMERS BECAUSE OF THE AMOUNT OF TIME IT TAKES TO GET BOARD APPROVAL AND MAKE CERTAIN DECISIONS. THAT BEING SAID IT DOES CONCERN ME A LITTLE BIT THAT WE WENT BE ABLE TO HAVE A CHANCE TO DENY A PURCHASE LARGE PURCHASE IF WE BELIEVE IT'S NOT THIS BEST INTEREST OF THE CUSTOMERS.

TYPICALLY, I KNOW WE INCREASE OUR STORM STOCK WHEN STORM SEASON IS APPROACHING BECAUSE A LOT MORE THINGS GET DAMAGED. YOU HAVE REPLACE MORE MATERIAL IN THE FIELD. I DON'T SEE ANY WAY AROUND WHAT YOU ARE ASKING FOR. LEAD TIMES ARE LONGER THAN STORM SEASON. YOU HAVE TO BE ABLE TO JUMP ON THE PURCHASING OPPORTUNITY WHEN YOU SEE IT.

WHAT I WOULD LIKE TO SEE IS SOME KIND OF REPORT AND THIS BACKS UP WHAT OTHER BOARD MEMBERS ARE SAYING THAT AT LEAST KEEPS US THIS IS KNOW. THE RESULTS OF OUR DECISION

HERE TODAY. >> RIGHT.

>> ANYTHING WITH 150,000 IT WOULD BE ABLE TO SIGN.

ANYTHING ABOVE THAT WOULD COME TO THE BOARD.

THE IDEA IS NOT TO AVOID BRINGING IT TO THE BOARD.

THE IDEA HERE TO BE ABLE TO NEGOTIATE WITH THOSE FOLKS AND BUILD A LONG-TERM RELATIONSHIP WITH THOSE FOLKS. WE'VE NEVER ENGAGED THEM.

THIS IS US ENGAGING THEM BEING PART OF THE CONSTRUCTION ROTATION OR THAT PROCESS ROTATION SO WE CAN ADD THEM TO OUR LIST. IF IT'S WITHIN MY SIGNATURE AUTHORITY I WOULD SIGN UP WE MAKE SURE WE BRING IT TO THE BOARD. ANYBODY THAT WE'VE ADDED OUTSIDE OF OUR NORMAL PROCEDURE WE WOULD BEEN TRANSPARENT AND BRING THAT TO THE BOARD.

MR. CHAIRMAN? >> GO AHEAD.

THERE'S PRECEDENT FOR THIS TOO.

THESE EMERGENCY SITUATIONS. THERE'S I DON'T KNOW IF IT'S STATUTORY. I KNOW THAT THE DEFINITELY OF HOW WE TRY TO REMEMBER IF IT HAS A TENDENCY TO INTERRUPT A VALUABLE GOVERNMENT SERVICE, THAT CAN

[00:25:02]

BE DECLARED AN EMERGENCY. AND KNOWING WHAT I'VE SEEN WITH STAFF RECENTLY, THESE ORDERS THAT YOU MAYBE FIVE OR SIX MONTHS. 7, 8 MONTHS TO GET ONE.

WE NEED TO BE IN THE POSITION TO ORDER THEM QUICKLY. WHEN WE CAN AND TAKE ADVANTAGE OF THAT. THESE ARE REALLY GETTING OUT OF HAND. WHEN YOU GET A PRODUCT -- PROJECT WHEN YOU NEED IT.

>> MR. CHAIRMAN, I WAS GOING TO SAY IF WE DIDN'T GIVE YOU THIS APPROVAL THEN WE COULD BE FACED DURING A HURRICANE WITHOUT SOMETHING THAT WE REALLY NEED AND WE DON'T WANT TO HAVE TO TELL OUR CITIZENS WE CAN'T RESTORE YOUR SERVICE BECAUSE WE DIDN'T GET THE PART.

THAT'S WHAT YOU ARE TRYING TO MAKE SURE WE'RE ABLE TO RESTORE SERVICES QUICKLY AS POSSIBLE DURING THE

HURRICANE. >> MAYOR, EVEN IN YOU APPROVED IT TODAY THERE'S NO GUARANTEE WE FIND EVERYTHING

WE NEED. >> THIS IS SIMPLY UNTYING OUR HANDS ALLOWING US TO BE MORE NIMBLE.

ANY PURCHASE THEY WILL STILL FOLLOW THE GUIDELINES OF PURCHASING. IF I'VE GOT A PURCHASE SOMETHING, I HAVE TO ACT TODAY AND IN THE BEST INTEREST OF UA WE WILL MAKE A DECISION IF WE CAN PAY FOR IT. I WILL GET US UNDER CONTRACT. I MAY COME BACK TO YOU AFTER THE IF THAT'S THE CASE. THAT'S AS TRANSPARENT AS I CAN BE. I WILL MAKE THE GOOD DECISION. AND WE GET OUR HANDS ON WHAT WE CAN IF WE CAN. IT'S JUST GOING TO FREE US UP. WHEN HURRICANE SEASON IS OVER. HOPEFULLY THIS WHOLE THING IS OVER. WE GO RIGHT BACK TO BUSINESS. SHE ASKED FOR FORGIVENESS RATHER THAN PERMISSION IN SEVERAL OCCASIONS.

THE TIMING AND THE NEED TO GET ON THE SCHEDULE FOR PRODUCTION. YOU NEED TO BUY THE STUFF FOR WHATEVER PROJECT YOU ARE DOING.

WE'VE ASKED FOR FORGIVENESS IN THE PAST RATHER THAN PERMISSION. WHAT WE ARE ASKING FOR PERMISSION TO FORGIVE US. [LAUGHTER]

>> LET ME ASK ANOTHER QUESTION.

IF THE LINE ITEM OR PURCHASE ORDER EXCEEDS YOUR SIGNATURE AUTHORITY YOU WILL STILL BE ABLE TO ORDER THE ITEM AND THEN COME BACK TO US; CORRECT?

>> RIGHT. WE WILL STILL BRING THEM BACK TO BOARD. WE CAN'T WAIT, EITHER THE PRICE THERE'S LARGE PRICE CHANGE OR IT EXTENDS IT ANOTHER THREE OR FOUR MONTHS.

WE WOULD MAKE THAT PURCHASE. AND BRING IT BACK TO TO THE BOARD. THAT'S ABSOLUTELY RIGHT.

HOW LONG DO YOU WANT THE EMERGENCY POWERS TO BE

AUTHORIZED TO YOU? >> THROUGH THE END THIS YEAR

HURRICANE SEASON. >> NOVEMBER 30TH.

. >> OKAY.

ANY OTHER QUESTIONS? >> YES.

>> WE HAVE DECLARED EMERGENCIES IN THE PAST.

THE LAST THING THE BOARD MEMBERS TO PUT OURSELVES IN DIRE SITUATION WHEN YES DON'T HAVE SUPPLIES AFTER BEING HIT BE THE HURRICANE. I'M FOR IT.

IF ANYONE WANTS TO MAKE A MOTION, WE'RE JUST PUTTING A LOT OF TRUST IN YOU ALL. YOU WILL GIVE US REPORT DEFINITELY AS REPORTS CAN BE NEEDED.

IF YOU MAKE US AN ORDER. IT EXCEEDS THE AUTHORITIES WE WOULD HOPE OR WE WANT A REPORT PROBABLY WITHIN THE NEXT MEETING THAN WHAT HAS OCCURRED.

IT WILL COME BACK NEXT MEETING FOR APPROVAL.

IT'S A REPORT OR APPROVAL FOR EITHER WAY.

>> THAT'S PERFECT. >> I CAN MAKE SURE DURING THE DIRECTOR SECTION OF COMMENT WE PREPARE YOU FOR

WHAT'S COMING UP. >> ANYBODY CARE TO MAKE A

MOTION? >> MOVE APPROVAL.

>> SECOND. >> PLEASE CALL THE ROLL.

[G.3. IWRF Relocation Update – For Information Only]

[00:30:04]

YOU. >> THE NEXT ITEM IS INFORMATION PRESENTATION ON THE WASTEWATER RELOCATION PROJECT. WE WILL HAVE COPRESENTERS

FOR THIS ITEM. >> THANK YOU.

THANK YOU MR. CISNEROS. GOOD AFTERNOON CHAIRMAN AND MEMBERS OF THE BOARD. TODAY I AM VERY PLEASED RACHEL AND I ARE BOTH PLEASED TO BRING YOU AN UPDATE ON OUR PROGRESS ON THE IWF RELOCATION.

FIRST OFF WE THINK IT'S IMPORTANT TO -- I KNOW THE BOARD HAS SEEN THIS SLIDE AT LEAST A COUPLE OF TIME.

IT'S IMPORTANT FOR THE PUBLIC THAT REALIZE WHY WE ARE DOING THIS IN THE FIRST PLACE.

FIRST AND FOREMOST IT'S AN ENVIRONMENTAL ISSUE.

THE PLANT O OBVIOUSLY LOCATED VERY ENVIRONMENTALLY SENSITIVE PLACE AND VERY VULNERABLE.

SEA LEVEL RISE IS REAL. I WILL CERTAINLY NOT OPINE AS TO WHY THAT IS. BUT SEA LEVEL RISE IS WE'LL.

THAT'S GOING TO GET US IN TROUBLE AT SOME POINT IN THE FUTURE. HURRICANES ARE INTENSIFYING.

THE ONE THAT COMES TO MIND IS I BELIEVE HURRICANE DORIAN THAT SAT ON THE BAHAMAS CAT FIVE HURRICANE.

IF THAT STORM HAD COME TO US IT'S LIKELY WE WOULD NOT BE HAVING THIS CONVERSATION TODAY.

EVERY HURRICANE SEASON NOWADAYS WE'RE LITERALLY ROLLING THE DICE. I DON'T MEAN AS SCARE TACTIC. BUT IT'S A SIMPLE FACT.

THE DEP IS ALSO RECOGNIZED THIS FACT.

OUR PLANT IS ONE OF TEN PLANTS THAT ARE ON THEIR -- WHAT I CALL THE HIT LIST.

EVERY TIME TO SOMEONE IN THE DEP.

HOW ARE YOU COMING WITH MOVING THE PLANT OFF THE ISLAND. EVENTUALLY THEY WILL STOP ASKING AND START TELLING. WHEN THAT HAPPENS OR WE HAVE THE HURRICANE WE LOSE THE ABILITY TO PLAN, ORGANIZE AND SCHEDULE THE MOVE AND TAKE ADVANTAGE OF HISTORICALLY LOW INTEREST RATES NOW WHICH IS MAJOR.

ABSOLUTELY. ALSO THE MRA ON TO MOVE THIS PLANT TO AN INDUSTRIAL AREA FAR AWAY FROM HOMES, AND ELIMINATES THE SPILLS INTO THE ESTUARY.

THE SECOND BENEFIT THE REUTILIZATION OF THE PUBLIC RESOURCE. AND THAT PROPERTY.

NOT ONLY OUR PROPERTY BUT THE PROPERTY TO THE EAST.

THE PROPERTY ON THE NORTH SIDE OF ST. LUCIE COUNTY OWNS. OBVIOUSLY WE HAVE THIS RENDERING WE PUT UP HERE. WE ARE NOT SELLING ANYTHING.

THIS IS JUST SOMETHING TO YOU KNOW HAVE SOMETHING BETTER THAN AN AERIAL OF A WASTEWATER PLANT TO BUT THERE. THAT WILL BE UP TO SOMEONE ELSE TO FIGURE OUT. THEY ARE CONSISTENT WITH LAND USES. THAT'S THE LOW END OF UTILIZATION OF THE PROPERTY. FINANCIALLY SPEAKING.

WITH THAT STILL NETTED US 4-1 RETURN ON INVESTMENT.

THE KEY WORD HERE IS INVESTMENT.

THERE'S A COST. WE ALL KNOW THAT.

THIS IS AN INVESTMENT IN OUR FUTURE WITH GOOD RATE OF RETURN. ALSO JOB CREATION THIS PARTICULAR SCENARIO WOULD CREATE AROUND 600 JOBS WHEN YOU CREATE JOBS IT OPENS FOR GRANT OPPORTUNITIES WITH THE DEPARTMENT OF ECONOMIC OPPORTUNITY WHICH WE HAVE BEEN SUCCESSFUL WITH BEFORE. WE DON'T HAVE ANY OF THOSE EARMARKS. WE WILL TALK ABOUT GRANTS IN A FEW MINUTES. WOOR DEFINITELY KEEPING OUR EARS TO THE GROUND WHEN THOSE POP UP.

AT THE LAST UPDATE MEETING. THIS IS WHERE WE WERE.

YOU CAN SEE AFTER THE KICK OFF WE HIT THE GROUND RUNNING. AND WE HAVE NOT SLOWED DOWN SINCE. 33S ARE ALL WORKSHOPS.

AND INTERNALLY MEETING THAT WE HAD.

THIS IS SUMMARY. THERE'S MEETING IN BETWEEN THEM. I WON'T BORE YOU GOING THROUGH THEM. THERE'S A FEW THAT ARE IMPORTANT THAT I WOULD LIKE TO TOUCH ON.

FIRST OFF BACK IN DECEMBER, WE MET WITH OUR BOND COUNCIL AND OUR RATE CONSULTANTS, AND JUST TO LOOK AT OUR BOND COVENANTS. LOOK WHAT WE CAN DO.

FIRST OFF FROM THERE ROLLED INTO DEBT RESTRUCTURING MEETING. AND IT WAS VERY OBVIOUS THAT OUR BEST METHOD TO FINANCES SIMPLY TO GO OUT FOR PUBLIC

[00:35:04]

BONDS. AND IT WORKED OUT VERY WELL TIMING WISE. BECAUSE WE HAD STARTED THAT PROCESS WITH OUR DEBT RESTRUCTURING TO EXPAND OUR SYSTEM AND GROW THE CITY OF FT. PIERCE.

THAT WAS AN ADD ON ALTHOUGH IT WAS MUCH LARGER AMOUNT OF MONEY. THE PROCESS WAS MOOING.

WE'RE ARE MOVING AS FAST AS WE CAN TO LOCK IN THE LOWEST INTEREST RATE THAT WE POSSIBLY CAN.

WE ARE ALSO LOOKING EARLY ON RIGHT AFTER THAT.

WE LOOKED AT SOME RATE ANALYSIS.

WE STARTED LOOKING AT IT BACK THEN.

WE ENROLLED AND WENT THROUGH LAUNDRIE LIST OF GRANTS.

THAT WE COULD BENEFIT FROM. WE GOT THAT NARROWED DOWN QUITE A BIT. YOUR STAFF AND OUR CONSULTANT HAVE ALSO DONE TOTAL OF THREE SITE VISITS.

THE ONE WAS TO ALABAMA TO VISIT AQUA-MARIDA PROCESS.

SOME ADVANTAGES THAT. WE WENT TO GEORGIA TO LOOK AT DENSIFICATION PLANT. IT'S MUCH MORE EFFICIENT.

WE LOOKED AT THOSE AND THEN IN TALLAHASSEE.

I LOOKED AT THE TALLAHASSEE PLANT AS WELL.

THEY HAVE A GRIT REMOVAL GETS THE SAND AND KIRT OUT OF THE SYSTEM. WHILE I WAS THERE.

SOMETHING WAS INTERESTED. TALLAHASSEE IS VERY OLD CITY. JUST LIKE FT. PIERCE IS.

THEY HAVE EQUALIZATION PONDS.

THINK OF IT AS THE BIG TANK. IF THERE'S MORE FOIL COMING INTO THE PLAN IT TEMPORARILY GOES OVER INTO THOSE PONDS.

THAT'S SOMETHING WE LIKE TO DO TOO.

IT'S SO SIMPLE. BUT WHAT A GREAT SHOCK ABSORBER WHEN WE HAVE A SYSTEM LIKE OURS.

WE TALKED ABILITY AFLUNLT TREATMENT.

THE REUSED QUALITY WATER THAT WE WILL BE ABLE TO SALE THAT WILL BE MONEYMAKER IN THE FUTURE AND IN THE NEAR FUTURE, SELLING THE REUSED WATER TO THE TREASURE COAST ENERGY CENTER FOR THEIR COOLING TOWER AS WELL.

LET'S SEE WHAT ELSE IS IMPORTANT HERE.

>> WE PERFORMED A POLE. RACHEL WILL TELL US ABOUT THAT SHORTLY. LAST WEEK WE HAD A MEETING ABOUT OUR RATES. AND JUST SPOILER ALERT.

THEY ACTUALLY LOAD GOOD. AND WE HAVE OUR SECONDARY PROCESS SELECTION MEETING WHICH IS A VERY BIG ONE.

THAT'S TOMORROW. I WISHED IT WAS BEFORE THIS MEETING I COULD DO A PINK AND BLUE REVEAL.

BUT I CAN'T QUITE DO THAT YET.

WE STARTED THE PREPARATION ON THE LAND.

THE PROPERTY IS COMPLETELY COVERED IN BRAZILIAN PEPPERS. WE CLEARED THOSE.

WE ARE WORKING ON THE SOIL. THE MAYOR CAME OUT TO CHECK ON OUR PROGRESS AND HERE SHE IS DOING HER BEST VANA WHITE

IMPRESSION. >> DID SHE CLEAR ALL THAT?

WE WERE OUT OF DIESEL. >> TALKING ABOUT GRANTS.

OUR FIRST AND FOREMOST THE RESILIENT FLORIDA GRANT PROGRAM IS RIGHT UP OUR ALLEY.

DESIGNATED FOR PROJECTS SUCH AS THIS.

WE HAVE A HIGH EXPECTATIONS OF GETTING FUNDING AND IT'S FUNDING 500 MILLION THIS YEAR INSTEAD OF 100 MILLION.

CLOSES IN SEPTEMBER 30TH, WITH RECOMMENDATION GOING TO THE LEGISLATURE AND DECEMBER.

THE ONLY AS ASTERISK I HAVE TO PUT ON THIS.

CITY OF FT. PIERCE WOULD HAVE TO BE ON THAT.

I WOULDN'T EXPECT THAT TO BE A PROBLEM.

AGAIN THAT'S NOT ALL UP TO ME.

APPROPRIATION REQUEST BY LOCAL LEGISLATOR.

SENATOR HARRELL AND REPRESENTATIVE TRABULSI HAVE BEEN EXCELLENT IN HELPING US PROCURE APPROPRIATIONS FOR THE SEWER LINING PROGRAM. WE STOPPED AND SAW THEM IN TALLAHASSEE TO GIVE THEM AN UPDATE ON THIS PROJECT AND TO THANK THEM FOR SUPPORT. SENATOR HARRAH I SHOULD SHE WOULD GIVE HERSELF A HUG HOW FAST WE WERE MOVING WITH THIS. WE'RE PLANNING ON TAPPING INTO THAT RESOURCE AGAIN. THE REQUEST ARE DUE BY OCTOBER. BUT WE WILL START TALKING TO THEM IN THE SUMMER TIME. WE ARE GOOD AND PREPARED TO HAVE THIS SUBMITTED BEFORE THE FIRST DAY OF SESSION.

SOMETHING ELSE CAME UP IN OUR CONVERSATION ON GRANTS MORE THAN INDIRECT PROCESS BUT STILL SOMETHING VERY GOOD. SOUTH FLORIDA WATER MANAGEMENT HAS WATER QUALITY GRANT.

THAT'S A LITTLE BIT OFF. IT'S NOT WASTEWATER NECESSARILY. BUT BY PROVIDING TREASURE COAST ENERGY COOLING WATER IT WOULD ELIMINATE THEIR WITHDRAWAL FROM THE FLORIDA AQUIFIER, WHICH IS

[00:40:02]

DEFINITELY ON SOUTH FLORIDA HIT LIST.

MANY PEOPLE MOVING TO FLORIDA AND STARTING TO TIGHTEN UP ON THE COME CONSUMPTION USE PERMIT.

IF WE GET 2-3 MILLION GALLONS LEFT THERE MAY BE SOME MONEY AVAILABLE THERE AS WELL.

OTHER WORK IN THE PARALLEL PATH.

CONVEYANCE SYSTEM WE HAVE TO GET THE WASTEWATER TO MBRF.

EVERY PART OF THE SYSTEM IS DESIGNED TO GO IN BOTH DIRECTIONS. HOWEVER THAT'S ONLY A SMALL PARLIAMENT OF -- PART OF OUR SYSTEM.

WE ADVERTISED. AND WE HAVE INTERVIEWED SEVERAL PREQUALIFIED PROGRESSIVE BUILD FIRMS TO TAKE ON THAT ENDEAVOR. THE IDEA IS TO FORMAT IT SIMILAR TO THE PROGRESSIVE DESIGN BILL THAT WE HAVE FOR CONSTRUCTING THE ACTUAL PLANT.

THE ONE CAVEAT I WILL PUT THERE IS THAT JUST BECAUSE OF HOW BROAD THE SCOPE OF THIS WORK, EVERYTHING FROM PIPELINE WORK, SOME OF IT RIGHT-OF-WAYS.

DIRECTIONAL BOARDS. MASTER LIFT STATIONS.

LIFT STATION A KEEPS ME UP AT NIGHT.

THERE'S A STRONG POSSIBILITY THAT WE'LL 30 TO 60% BE BREAKING THAT INTO MULTIPLE DIFFERENT CONTRACTORS AND BUILD FIRM. THERE'S ONE FIRM WE'RE NEGOTIATING WITH RIGHT NOW. IF EVERYTHING GOES AS PLANNED WE'LL HAVE SOMETHING BACK IN FRONT OF YOU WITHIN THE NEXT COUPLE OF -- NEXT MAYBE TWO OR THREE MEETINGS FROM NOW. MARKETING AGAIN, THAT'S PROMISE NOT TO STEAL THUNDER.

THE WASTEWATER DEPARTMENT HAS TO BE MOVED AS WELL.

WE'VE ROLLED THAT INTO THE OVERALL FPUA FACILITY ASSESSMENT THAT MR. RUTHERFORD IS STARTING ON NOW. WE NEED TO SELECT A LOCATION FOR IT. AND PROBABLY NOT WITH THAT PARTICULAR ENDEAVOR BUT IN THE NOT TOO DISTANCE FUTURE WE NEED TO DO HIGH-LEVEL SITE PLANNING HIGH-LEVEL FACILITY DESIGN TO ATTACH A PRICE TAG TO THAT AS WELL.

BUT THAT'S A LITTLE BIT DOWN THE ROAD.

THE OTHER PART OF THE LAND PREPARATION I WOULD LIKE TO BRING THE BOARD UP TO SPEED ON DEEP INJECTION WELLS.

WE HAVE TWO DEEP INJECTION WELLS.

WE HAVE A GOOD INFORMATIONAL PRESENTATION THAT WILL COME IN THE NOT TOO DISSTANLT FUTURE TO BRING YOU UP-TO-DATE HOW THEY WORK. SIMILAR TO THE ONE WE DID.

IT'S ABOUT TWO YEARS SINCE WE'VE DONE ONE.

BUT ANYWAY THERE'S TWO DEEP INJECTION WELLS.

ONE IN USE BY THE ENERGY CENTER AND BY THE ST. LUCIE COUNTY. THAT'S ALL THAT'S GOING DOWN THAT WELL NOW. THE OTHER WELL HAS NEVER BEEN USED. IT NEEDS TO HAVE A MECHANICAL INTEGRITY TEST DONE PRIOR TO TESTING THE WELL. IT'S A STANDARD ITEM IF THE WELLS ARE IN SERVICE. WE HAVE TO DO THEM EVERY FIVE YEARS. AND THE BOARD JUST APPROVED A CONTRACT TO TEST TWO OF THOSE DO THE MECHANICAL INTEGRITY TEST ON TWO OF THOSE.

AND THAT WILL COMING FROM EARLY SUMMER.

STAFF'S PLAN TO ADD THIS THIRD WELL TO IT.

WHILE THE CONTRACTOR LET'S GO AHEAD AND GET THAT DONE.

THE OTHER SIDE OF THAT, ONCE THAT WELL IS TESTED AND AVAILABLE, IT TAKES A TREMENDOUS AMOUNT OF WATER TO TEST THESE WELLS TO THEIR MAXIMUM CAPACITY.

A LOT MORE THAN WE CAN PULL OUT OF THE PORTABLE SYSTEM.

AND TAKE FROM THE TREASURE COAST ENERGY CENTER WILLS COMBINED. WHAT WE WOULD LIKE TO DO IS AN EARLY WORK PACKAGE GO AHEAD AND CONSTRUCT THE EQUALIZATION POND THAT I MENTIONED EARLIER.

AND WE WOULD USE THAT TO STORE ENOUGH WATER TO BE ABLE PERFORM THE TEST AND IT'S NOT WASTED LABOR BECAUSE WE NEEDED TO BUILD THE POND ANYWAY.

THAT'S THE END -- THE ONLY OTHER PART I WOULD LIKE TO MENTION HERE IS RATES SUFFICIENCY.

WE WERE TALKING WITH MR. HAMILTON ON THAT.

I BELIEVE WE SHOULD HAVE THAT READY TO PRESENT AT THE

22ND -- >> WE JUST GOT THE FINAL VERSION LATE THIS AFTERNOON. IT WILL BE READY FOR THE

JOINT WORKSHOP NEXT WEEK. >> VERY GOOD.

>> ALL RIGHT. THEN I WILL TURN IT OVER TO RACHEL OUR SUSTAINABILITY PROGRAM MANAGER TO TALK TO

US ABOUT THE POLE. >> THANK YOU VERY MUCH.

>> OKAY THANK YOU. CHAIRMAN FEE, MAYOR HUDSON, THANK YOU ALL FOR HAVING ME AS WELL.

JUST SORT OF TAKE A SEP BACK AND DO A LITTLE OVERVIEW BEFORE WE DIVE IN. WHAT I WILL BE TALKING ABOUT A POLL THAT WE TOOK. WHILE WE'RE GEARING UP AND TAKING STEPS TO MOVE THE WASTEWATER PLANT, WE WANT TO DO THIS WITH AND FOR OUR COMMUNITY.

[00:45:01]

WE WANT TO MAKE SURE THAT IF SOMETHING WE'RE DOING TOGETHER. WE'RE COMMUNICATING WITH THE CUSTOMERS WITH OUR RESIDENTS.

WITH ANYONE AND GAGE WHAT LEVEL OF SUPPORT ALREADY EXISTS. WHAT ARE THE CONCERNS AND EDUCATE ON CERTAIN THINGS IF NECESSARY.

AND SO THAT'S WHAT THIS IS ALL ABOUT.

THE POLL WAS LED BY VANCORE JONES WHO WILL WORK THROUGH US THROUGHOUT THE PROCESS. ON FEBRUARY 21 THE THROUGH THE 23RD. VANCORE JONES SAMPLED THEY SPOKE TO THREE DIFFERENT CUSTOMERS.

THESE CUSTOMERS WERE BALANCED BY GENDER, AGE, REGION, WITHIN THE AREA. THE IDEA HERE IS WE WANT TO HAVE A GOOD SAMPLE OF RESPONSES.

WE WANT TO MAKE SURE THE RESPONDENTS DO THE SURVEY REPRESENT THE COMMUNITY THAT WE SERVE.

I WILL TALK A LITTLE BIT MORE ABOUT THAT IN A MOMENT.

BUT USING THAT INFORMATION BASED ON THAT BALANCE GENDER AGE REGION THE MARGIN OF ERROR FOR THE RESPONSES IS 6%. THE RESPONDENT DEMOGRAPHICS SHOWN ON THIS SLIDE GENERALLY WE'RE LOOKING 46% MALE, 54% FEMALE. 41% UNDER 50 YEARS OLD.

59% 50 AND UP. BUT ONE OF THINGS WE WERE REALLY LOOKING TO WAS THE REG REGIONS. WE WANT TO TALK TO ALL DIFFERENT REGIONS. THAT'S AN EVEN 20% EACH REGION. AND YOU CAN SEE ALSO HERE THE SPAN OF HOUSEHOLD INCOME.

17% OF RESPONDENTS HAVE A HOUSEHOLD INCOME OF LESS THAN 17,000. 28% BETWEEN 20 AND 50,000.

25% BETWEEN 50 AND 100. THE MEDIAN INCOME FOR THE CENSUS HERE IS ABOUT $35,000.

IT IS IN LINE THAT WE WOULD 28% OF RESPONDENTS BEING WITHIN THAT BRACKET. THIS IS WHO WE TALKED TO.

WHAT DID THEY SAY? IN GENERAL, WHAT WE FOUND IS THAT THE RESPONDENTS ARE VERY HAPPY WITH THE CURRENT STATE OF THINGS IN FT. PIERCE.

60% OF RESPONDENT THINK FT. PIERCE IS GOING IN THE RIGHT DIRECTION. 78% ARE HAPPY GENERALLY WITH THE STATE OF THINGS IN FT. PIERCE.

67% ARE HAPPY WITH FPUA. THIS IS REALLY GOOD PLACE TO BE. WE'RE STARTING ON A POSITIVE FOOT AND GIVES US SOMEWHERE POSITIVE TO LAUNCH FROM AS WE TALK ABOUT MOVING THE WASTEWATER PLANT AND WHAT IT MEANS FOR THE COMMUNITY. THE OTHER THING WE FOUND IS THAT THE RESPONDENTS ARE WILLING TO INVEST IN THE WEST WATER PLANT. THIS WAS IMPORTANT TOO.

I WILL GET INTO A LITTLE BIT MORE OF THAT LATER.

THE BASE QUESTION HERES GENERALLY SPEAKING, DO YOU THINK THAT MOVING THE SEWER TREATMENT PLANT IS AN COMPEL LENGTH IDEA, A GOOD IDEA OR BAD IDEA.

58% SAID THINK IT'S EXCELLENT OR GOOD IDEA.

24% SAID THEY THINK IT'S A BAD IDEA.

18% SAID THEY ARE UNSURE OR DECLINED TO RESPOND.

I THINK SOMETHING IMPORTANT HERE TO NOTE IS THAT 18% REPRESENTS OPPORTUNITIES FOR US.

THOSE ARE PEOPLE WHO AREN'T REALLY SURE.

THOSE ARE PEOPLE THAT WE CAN TALK TO AND SAY WHY AREN'T YOU SURE? AND HELP GUIDE THEM TOWARDS SUPPORTING THIS EFFORT. I THINK THE SAME APPLIES TO THE BAD IDEA. BUT THE UNSURE MIGHT BE A LITTLE BIT MORE COLLABORATIVE OF THE CONVERSATION. THIS IS GOOD RESULT IN GENERAL. THERE'S A LOT MORE DETAIL IN THE POLL RESULTS. THIS IMAGE, THOSE IT NICELY.

THE BLUE BAR TOWARD THE RIGHT IS THE BASE.

THAT BLUE REPRESENTS 58% OF PEOPLE WHO SUPPORT MOVING THE WASTEWATER PLANT. ANYTHING ON THE LEFT THAT YOU SEE GREEN, REPRESENTS AN INCREASE.

KNOWING THIS INFORMATION THEY ARE MORE LIKELY TO SUPPORT MOVING THE PLANT. AND ON THE RIGHT WHERE YOU SEE RED, KNOWING THAT INFORMATION THERE LESS LIKELY TO SUPPORT MOVING THE PLANT.

SOME OF THE IMPORTANT THINGS THAT WE FOUND HERE IS PROTECTING THE INDIAN RIVER LAGOON IS NUMBER ONE.

[00:50:02]

WHEN WE TOLD RESPONDENTS IF YOU KNEW THAT MOVING THE WASTEWATER PLANT WOULD PROTECT THE WOULD YOU BE MORE LIKELY TO SUPPORT MOVING THE WEST WATER PLANT AND INCREASE SUPPORT BY 27%. THAT'S A VERY BIG JUMP.

WE KNOW THAT, THAT'S VERY IMPORTANT TO OUR CUSTOMERS.

THE NEXT ONE WAS THAT THE NEW WASTEWATER PLANT WILL BE LOCATED IN AN INDUSTRIAL ZONED AREA.

THEY WANT TO KNOW THEY ARE PROTECTING THE INDEPENDENT INDIAN RIVER LAGOON. SOME OF THE OTHER THINGS WE FOUND WERE GOOD HIGH PAYING JOBS.

THE QUALITY WAS IMPORTANT. NOT JUST THEY ARE JOBS BUT THEY ARE GOOD AND HIGH PAYING.

ALSO PUBLIC PLACES SUCH AS PARKS AND FISHING PIER.

A TOURIST ATTRACTIONS LIKE RESTAURANTS AMPHITHEATER.

THOSE WERE FAVORED. WHAT WERE NOT FAVORED WAS THE IDEA OF NEW BEACH SIDE RESORT OR CONDOMINIUMS OR HOTEL. WHEN ASKED THAT, THE INITIATIVE ACTUALLY LEFT SUPPORT.

WE HAD 58% AS THE BASE WHEN WE SAID ARE YOU MORE OR LESS LIKELY TO SUPPORT THIS CAUSE MOVING THE WATER PLANT IF YOU KNEW WE WOULD PUT A RESORT THERE.

THEY SAID WE'RE LESS LIKELY TO SUPPORT THIS.

THIS IS JUST HELPFUL FOR US ANY SORT OF FRAMING OUR CONVERSATION WITH THE COMMUNITY.

AND I THINK ALSO PROBABLY HELPFUL FOR THE CITY AS WE MOVE FORWARD. MR. CHAIRMAN, COULD I HAVE A QUESTION. DID YOU MAKE SURE THEY KNEW WHERE THE WATE WATERVLIET -- WASTEWATER

TREATMENT PLANT IS NOW. >> YES, WE DID.

>> I'M NOT SURE THAT EVERYBODY THAT LIVES IN FT. PIERCE KNOWS WHERE THAT IS.

>> THE OPERATORS OVER THE PLANT ARE CONSIDER INK THE PLANT FAR INLAND AND OFF THE ISLAND CAUSEWAY.

THEN WE PROCEEDED TO ASK THESE QUESTIONS.

>> MR. CHAIR? JUST REAL QUICK, DID VANCORE JONES COME UP WITH THE ELEVATORS AND ANGER OR WAS THAT A COLLABORATIVE PROCESS?

>> THIS IS THERE BEAUTIFUL DIAGRAM.

IT USES ALL STANDARD MATRIX. THERE'S ALL THE CHARTS AND ALL OF THE LITTLE PIECES THAT I DON'T UNDERSTAND IN THE BACK THERE. THAT'S ALL STANDARD.

STANDARD STUFF WHAT THEY DO RUN THE POLES.

WE HAVE ALL THE DATA. WE'RE STILL WORKING WITH VANCORE JONES AS WELL. THIS IS VISUAL TO HELP

USNESS IN AN OVERVIEW. >> ONE THING THAT JUST STANDS OUT PRETTY GLARINGLY TO ME IS THROUGHOUT THIS PROCESS WE'RE GOING TO HEAR ABOUT ECONOMIC IMPACT ASSOCIATED WITH MOVING IT OFF THE ISLAND.

BUT THE STUFF THAT WOULD HAVE THE BIGGEST ECONOMIC IMPACT ARE THE THINGS THAT PEOPLE AT LEAST WANT.

>> I WAS CURIOUS ABOUT WHAT KIND OF DEMOGRAPHICS WE HAVE. THE MOST ECONOMIC IMPACT APPEARS TO BE WHAT NOBODY WANTS.

IT'S KIND OF SURPRISING. JOB CREATION IS SOMETHING WE WANT TO DO. I THINK THE CITY WANTS TO DO. YOU KNOW, THEY DON'T WANT IT IN THE FORM OF HOTEL OR A RESORT.

WHICH I GUESS I WOULD FIND SOMETHING ELSE.

>> I SUSPECT WHAT THEY ARE LOOKING FOR IS ACCESS.

THEY ARE INTERESTED IN DEVELOPMENT.

AND IN SEEING MORE BEING DONE THERE STILL BEING ABLE TO USE IT AND THEN I IMAGINE ACROSS THE BOARD AT ALL INCOME LEVELS THERE'S THIS PERCEPTION OF THE YOU PUT A NEW BEACH SIDE RESORT OR HOTEL.

YOU ONLY HAVE ACCESS THE IF YOU PAY TO BE THERE FOR THAT

[00:55:03]

PARTICULAR OVER NIGHT OR WHATEVER.

MR. CHAIRMAN, ALSO, THIS IS FOR MESSAGING.

>> WE'RE NOT MAKING A COMMITMENT.

>> WE ARE NOT. THIS IS JUST FOR MESSAGING.

THE MESSAGE IS -- LISTEN, IF YOU PAY MORE MONEY TO MOVE THE WASTEWATER TREATMENT PLANT.

WE WILL BUILD YOU A BEAUTIFUL CONDO.

WE WILL NOT USE THAT MESSAGE IS WHAT I'M GETTING FROM

THIS. >> WE'RE CURIOUS IN WHAT ARE THEY INTERESTED IN. WHAT DOES THE COMMUNITY WANT TO SEE THERE? AND REALLY WHAT WOULD MAKE THEM MORE LIKELY TO SUPPORT MOVING THE WASTEWATER PLANT.

AND WHAT CAN WE SAY ABOUT THAT?

>> NO. >> THERE'S ALSO A SIGNIFICANT AMOUNT OF PROPERTY THERE WHEN YOU LOOK AT ALL THE PROPERTIES TOGETHER.

YOU KNOW, I HAVE A LOT OF CONFIDENCE IN THE CITY PLANNING TO BE ABLE TO LAY OUT THE PLAN FOR THAT AREA.

THAT WOULD ALLOW A GOOD COMBINATION THERE, PERHAPS.

WHERE IT SOLVES THE PUBLIC NEED BUT MAKES IT BENEFICIAL, CREATES TAX DOLLARS, WE CAN REBUILD THE ROADS. YOU KNOW HELP OFF SET THE FUTURE RATE INCREASES, ALL OF THAT STUFF.

>> AND ALSO THERE'S BEEN A CHERET ABOUT THIS PIECE OF PROPERTY WITH THE UA PIECE OF PROPERTY WITH PUBLIC INPUT. DOWN THE ROAD WE WILL PROBABLY DO THAT AGAIN. IT'S BEEN A WHILE.

>> I LIKE THE TOP TWO DON'T HAVE ANYTHING TO DO WITH THE USE OF IT. IT'S THE FACT OF IT MOVING AND THE ENVIRONMENTAL IMPACT.

IT GIVES US A GOOD 85% THERE.

THAT'S A PRETTY BIG AMOUNT. >> THOSE ARE THINGS THAT WE CAN SAY. WE HAVE THE ABILITY TO CONFIDENTLY SAY, WE ARE PUTTING THIS IN AN INDUSTRIAL AREA. WE ARE.

>> I THINK THAT'S A GREAT POINT.

THE IDEA IS THAT PEOPLE CARE MORE ABOUT IT NEEDING TO MOVE THAN WHAT YOU DO WITH THE PROPERTY AFTERWARDS.

>> RIGHT. >> EXACTLY.

I HAVE A FEW MORE SLIDES. I WANT TO GET INTO THE WILLINGNESS TO INVEST. ONE OF THE QUESTIONS WE ASK.

WHICH OF THE FOLLOWING WOULD BE AN ACCEPTABLE INCREASE TO MONTHLY UTILITY BILL. IN SUPPORT OF MOVING THE WASTEWATER PLANT AND WHAT WE FOUND WAS 76% OF RESPONDENTS WERE WILLING TO INVEST AT VARYING PRICE POINT.

THERE WERE $2 PER MONTH. 8 OR 10 OR MORE.

OR NOT AT ALL. AND 29% IS THE HIGHEST AMOUNT AND THAT WAS AT $4 A MONTH WHICH WAS THE MOST SUPPORT WE GOT. FOLLOWED BY $22 -- $2 A MONTH. I REALLY THINK THE IMPORTANT THING WE'RE LOOKING AT HERE THAT 76% SAID THEY ARE.

AND I THINK THAT'S ALSO REPRESENTS AN UNDERSTANDING THAT THIS IS SOMETHING THAT WILL BENEFIT THE COMMUNITY AND THEY ARE WILLING TO INVEST A LITTLE BIT IN THAT WITH US. THE MAIN TAKE AWAYS HERE ARE MOVING THE PLANT. THIS IS BEGINNING WITH MAJORITY SUPPORT. THERE ARE -- THERE'S ALL RIGHT MAJORITY SUPPORT FOR DOING WHAT WE ARE DOING.

AND THAT'S SUPPORT GROWS WHEN CUSTOMERS KNOW THAT THE NEW PLANT WILL BE LOCATED IN AN INDUSTRIAL ZONED AREA FAR FROM RESIDENTS NOT IN THE MIDDLE OF A NEIGHBORHOOD.

IT WILL PROTECT THE INDIAN RIVER LAGOON.

WE ARE MAKING A VOICE BETTER FOR OUR ENVIRONMENT.

IT WILL BRING GOOD HIGH PAYING JOBS.

QUALITY OF JOBS WAS IMPORTANT.

AND THAT IT WILL CREATE PUBLIC SPACES, PARKS RESTAURANTS, SHOPS OR AT LEAST THE OPPORTUNITY FOR

THOSE THINGS TO COME. >> THAT'S THE END OF THE PRESENTATION. AGAIN THIS WAS FOR INFORMATION ONLY. IF -- IF THERE'S ANY OTHER QUESTIONS THAT YOU HAVE. WE WILL BE HAPPY TO ANSWER THEM. I HAVE A QUESTION.

SO THE INCREASE THE SLIDE ABOUT I'M WILLING TO PAY $2 OR $4 AND RECOGNIZING THAT WE HAVE A BILL WHERE EVERYTHING IS ON IT. ELECTRIC, WATER, WASTEWATER, GARAGE, DID -- WAS THERE SPECIFICITY -- I KNOW IT INCREASES THE BOTTOM LINE. WHERE THEY AWARE IT'S NOT

ELECTRIC BUT WASTEWATER. >> WE ASKED A COUPLE OF QUESTIONS ABOUT THE BILL IF GENERAL.

I THINK THERE'S A BROADER CONVERSATION AROUND THAT HERE. ONE OF THE QUESTIONS THAT WE ASKED TO GAGE CUSTOMER UNDERSTANDING OF THEIR BILL, AS ITS STANDS RIGHT NOW. AND WE ASKED HOW MUCH OF YOUR UTILITY BILL GOES TO WASTEWATER SERVICE.

[01:00:03]

WHAT'S YOUR BEST GUESS? AND THE MAJORITY -- 35% SAID THE SMALL PORTION WHICH IS PROMISING.

HOWEVER, 28% SAID THEY WERE UNSURE OR REFUSED TO ANSWER.

I THINK WHAT THAT CONVEYS TO US THAT THERE'S SOME ROOM FOR EDUCATION ABOUT THE BILLS HERE.

IT'S GOOD TO KNOW THERE'S A WILLINGNESS FOR THE BILL TO GO UP TO HELP PAY FOR THIS. BUT WE DO ALSO SEE, WE CAN SEE HERE THAT IT'S IMPORTANT FOR US TO MAYBE LOOK AT A LITTLE BIT OF EDUCATION AROUND WHAT ALL THAT

ENTAILS. >> I MEAN, I THINK THE BILL ITSELF IS ONE OF OUR ISSUES THAT WE NEVER BEEN ABLE TO OVERCOME, WHICH IS WE HAVE SO MANY DIFFERENT THINGS ON IT AND PEOPLE TEND TO JUST SAY MY ELECTRIC BILL IS SO HIGH, AND THEY ARE NOT REALIZING.

THEY ARE NOT TAKING INTO ACCOUNT IT HAS OTHER SERVICES ON IT. THAT'S A CONVERSATION FOR ANOTHER DAY. BUT I THINK THAT'S AN ISSUE

FOR US. >> YES, MA'AM.

>> WILL THAT BE AN ITEM ON THE BILL THAT IS SHOWING THE CUSTOMER? WILL THEY SHOW THAT? BECAUSE THAT WOULD HELP OUT ALSO.

>> I DON'T THINK WE'VE GONE SO FAR AS TO DESIGN YET HOW WE MIGHT FIT THERE INTO THE BILL.

THAT COULD BE PART OF THE BROADER CONVERSATION ABOUT THE 28%. I THINK IT'S A GOOD IDEA.

>> THERE'S NO ROOM. >> YOU SAID THE MEETING

REGARDING RATES IS TOMORROW. >> IT WILL BE A WEEK FROM

TODAY. >> A WEEK FROM TODAY.

>> YES, MA'AM. I THOUGHT YOU SAID THAT WHEN YOU WERE INITIALLY DISCUSSING YOU SAID YOU HAD

SOME INFORMATION -- >> THAT'S ON THE SECONDARY PROCESS. THAT'S BASICALLY THE CORE OPERATING PROCESS OF THE PLANT.

THAT'S THE BIG DECISION. >> RIGHT.

>> THAT'S -- WE WILL MAKE THAT TOMORROW.

>> AND WHEN YOU SAID YOU WILL MAKE THAT TOMORROW.

WHAT -- WHERE DOES THE BOARD COME INTO THAT?

. >> JUST TO GIVE YOU SOME BACKGROUND. WE STARTED OUT LOOKING AT I WANT TO SAY THERE WAS 11 DIFFERENT PROCESSES FOR WASTEWATER PLANT. SOME OF THEM ARE OUTDATED.

SOME OF THEM HAD ADVANTAGES ALL THE WAY UP TO THE LATEST AND GREATEST TECHNOLOGY. THERE'S PROS AND CONS ALONG THE BOARD. WE WERE ABLE TO ELIMINATE THREE PROCESSES RIGHT OFF THE BAT.

AND OF COURSE WE'RE EVALUATING ON COST AND THAT'S NOT JUST THE COST OF CONSTRUCTION THE CAPITAL COST THAT'S ALSO YOUR O&M COST.

ALL OF THAT. AVAILABILITY OF MATERIALS FOR THAT PARTICULAR PROCESS. JUST EVERYTHING GOES INTO THIS MASSIVE MATRIX THAT WE HAVE.

AND YOU KNOW, I'M AN ENGINEER.

I NEED A SPREADSHEET AND NUMBERS TO HELP ME MAKE A DECISION. ALL OF THAT INFORMATION WILL BE COMPILED AND PRESENTED BACK TO US TOMORROW.

FROM THE CONSULTANT. AND THEN WE WILL BE ABLE TO TAKE IT FROM THERE AND MAKE THE RECOMMENDATION -- THE TECHNICAL PART OF IT. AND ALL THAT WILL BE COMPLETELY TRANSPARENT. WE WILL BE ABLE TO SHOW YOU, HEY, THIS IS WHAT WE SELECTED AND WHY.

AND IF FOR SOME REASON THE BOARD DOESN'T LIKE IT.

YOU WILL HAVE TO SUCK IT UP AND DO SOMETHING ELSE.

>> MR. CHAIRMAN, HAVE YOU HAD MORE CONVERSATION WITH

ST. LUCIE COUNTY? >> WE HAD A COUPLE OF CONVERSATIONS. WE ARE LOOKING AT EFFECTIVELY FOR TO US BE ABLE TO FUND THIS, WE HAVE TO FUND THIS OURSELVES. WE CAN'T BE DEPENDENT ON ANY OTHER ENTITY. THERE'S AN OPPORTUNITY FOR THEM TO COME INTO THE EQUATION.

WE NEED TO LOOK AT DOING THIS AS FPUA WITH THE OPPORTUNITY FOR THE COUNTY TO STILL COME TO THE TABLE.

>> ANY OTHER QUESTIONS? >> IS THERE SUFFICIENT LAND

FOR THE RETENTION POND? >> BARELY.

>> BARELY. BARELY.

I WOULD LOVE ANOTHER 50 ACRES OR SO.

BUT WE DON'T HAVE IT. WE WILL MAKE IT WORK.

>> IN HONOR OF THAT INDUSTRIAL PARK, ABOUT ANY INTEREST IN THAT IF THERE'S ONE NEXUS I CAN'T REMEMBER EXACTLY IF THERE WAS ONE. IT MIGHT BE GOOD IDEA TO

TALK TO HIM. >> MR. KOBLEGARD, IF YOU COULD PASS THAT CONTACT ON. I WOULD APPRECIATE.

EARLY ON WHILE THE PROPERTY WAS BEING SOLD TO THE NEW OWNERS, WE MADE INQUIRIES TO THE REAL ESTATE AGENT HANDLING IT ON BOTH SIDES. THE BUYER AND THE SELLER.

WE'RE INTERESTED IN EXPANDING A LITTLE BIT MORE.

[01:05:02]

THERE'S ONE PARCEL THERE TO THE EAST.

I THINK IT WAS ONLY EIGHT ACRES.

I WILL BE HELPFUL. AND WE WOULD LOVE TO TALK TO THEM TO NEW OWNER DIRECTLY IF YOU HAVE THAT, I WOULD

APPRECIATE IT. >> I ARE TELL YOU SHORTLY.

>> ANY OTHER QUESTIONS? >> MR. CHAIRMAN, WE HAD A PUBLIC COMMENT SPEAKER FROM UQUALIA.

IS THERE AN OPPORTUNITY AT ANY TIME FOR AN OUTSIDE ENTITY TO BE A PART OF THIS PROCESS? WHERE IS -- WHERE IS THE DIVISION POINT?

>> I THINK THE DECISION POINT WILL COME FAIRLY SOON AND IT REALLY HAS TO DO WITH THE FUNDING.

BONDING THE MONEY IS CHEAPEST MONEY.

THAT'S ALL THERE IS TO IT. FOR SOME REASON IF THAT DOESN'T WORK, THEN THE NEXT ALTERNATIVE WOULD BE TO TURN TO THE PRIVATE SECTOR TO DO IT.

OF COURSE, THERE'S MORE COST DOWN THE ROAD.

THERE'S MORE COST DOWN THE ROAD.

YOU KNOW, INFLATION IS CRAZY RIGHT NOW.

IN DELAY THAT WE HAVE, WOULD IN MY MIND WOULD OVERSHADOW IN DIFFERENCE IN THE SAVING ON THE FINANCING.

THAT WOULD BE A CLOSE SECOND.

BUT I AM VERY CONFIDENT WITH THE PLAN WE PUT TOGETHER AND THE PROGRESS WE MADE AND THE RATES WILL BE SOMETHING THAT'S TOLERABLE FOR OUR CUSTOMERS AND OUR CITIZENS FOR THE LONG TERM. NOT JUST WHAT WE'RE SEEING ON TODAY'S BILL. TOMORROW'S BILL.

BUT YEARS AND YEARS DOWN THE ROAD.

WHERE YOU KNOW, THE RATE INCREASE MIGHT HAVE TO BE STEEP IN THE BEGINNING. BUT THEN AFTER THAT, IT WILL FLATTEN OUT. THEN THERE'S A GREAT OPPORTUNITY TO PARTNER WITH THE CITY AND THE COUNTY TO MAYBE TAKE A SMALL AMOUNT OF THE TAX MONEY OFF OF THAT PROPERTY IN THE FUTURE TO HELP OFF SET THE RATES AS WELL. SIMPLE FACT IS WE HAVE TO -- WE'RE GOING TO PRESENT THOSE OPTIONS TO YOU.

IF IT'S SOMETHING THE BOARD AND THE CITY COMMISSION CAN PILOT AND THINK IT'S THE RIGHT THING TO DO WE WILL MOVE FORWARD. I WOULD LOW TO CALL IT PLAN B BUT I THINK WE'RE UP TO D OR F.

WHAT OVER IT TAKES, WE WILL GET THIS DONE.

>> I THINK BEAU MAKES A GOOD POINT.

THE BOND COVENANT HAS SOME PARAMETERS IN THERE THAT WE HAVE TO FOLLOW. I THINK THE BEST OPTION RIGHT NOW IS TO GO OUT TO MUNICIPAL BOND.

BECAUSE IT DOES GIVE FPUA THE BEST OPPORTUNITY FOR LOWER INTEREST RATE AND ABILITY TO BORROW MONEY AND PAY IT BACK FOR THE RIGHT AMOUNT OF TIME FOR OUR RATE PAYERS TO BE ABLE TO AFFORD IT.

>> WHEN DO WE FIND THIS OUT? AT THE JOINT MEETING?

>> THE JOINT MEETING. >> LAST TIME THERE WAS A DISCUSSION ABOUT HOW ON THE PROPERTY OVER THERE I JUST WANT TO MAKE SURE THAT WE'RE KIND OF ALL ON THE SAME PAGE WHEN WE'RE IN THAT ROOM TOGETHER.

IS THERE ANY DISCUSSION ON THAT? IS THERE ANYTHING THAT WE NEED TO BE BROUGHT UP TO SPEED ON? ANYTHING THAT --

>> I WANT TO STAY OUT OF THAT.

>> YEAH, ME TOO. THAT'S MY POINT.

I WANT TO MAKE SURE WE'RE ALL ON THE SAME PAGE.

>> I THINK THERE'S COLLABORATIVE EFFORT TO DO THE RIGHT THING. WE WANT TO PARTNER WITH THE CITY AND COUNTY TO MAKE SURE WHATEVER WE DO THERE.

IT'S ALL THE SAME PEOPLE THAT ARE PAYING FOR IT.

>> THE PUBLIC OWNS THE PROPERTY.

>> WHATEVER THAT ENDS UP BEING.

WE WILL MAKE SURE WE WORK TOGETHER ON THAT.

BEAU MAKES A GOOD POINT USING THE TAX REVENUE OFFSET THE COST. THAT'S A VERY, VERY GOOD OPTION THAT WILL WORK FOR EVERYBODY INVOLVED.

>> MR. KOBLEGARD? >> THE SURVEY OF 300 PEOPLE BE AVAILABLE NEXT TUESDAY? IT MIGHT BE IMPORTANT FOR THE CITY COMMISSIONERS TO HEAR SOME OF THAT.

>> IT WILL BE PART OF THE PRESENTATION AS WELL.

I HAD HOPED TO ABRIDGE IT A LITTLE BIT MORE.

IF YOU THINK THAT'S IMPORTANT AND THE DIRECTION OF THE BOARD. AND IT'S ALREADY WITH YOU.

>> I THINK THE COMMISSIONERS WOULD BENEFIT FROM THIS

INFORMATION. >> I THINK THAT WOULD BE

IMPORTANT. >> WE WILL ADD TO THE

PRESENTATION FOR NEXT WEEK. >> THERE YOU GO, YOU'RE UP.

>> I THOUGHT YOU JUST DID A PERFECTLY GOOD TRIAL.

>> IS THERE ANY FURTHER POLLING DONE?

>> THERE WAS NO PLAN FOR FURTHER POLL.

UNLESS YOU THINK WE NEED IT. IT'S IN YOUR COURT.

AND VANCORE JONES WAS CLEAR THAT EVEN IN, IN AREAS WHERE THEY'VE DONE PORE POLLING OR MORE NUMBERS OF PEOPLE WHAT THEY HAVE TYPICALLY FOUND AROUND THE 300 MARK YOU ARE GETTING WHAT YOU ARE GOING TO GET.

EVEN IF WE WANT MORE WE WOULD LAND IN A VERY SIMILAR

PLACE. >> WE HAVE THE NUMBERS THAT

[01:10:02]

RELATE OUR COMMUNITIES APPETITE FOR SEWER RATE INCREASES. HOW DOES THAT COMPARE TO WHAT OUR PROJECTED RATE INCREASES WILL ACQUIRE FOR US TO MAKE THE PROJECT HAPPEN?

>> I DON'T KNOW YET. I HAVE A FEELING THAT IT WILL BE FAIRLY SIMILAR TO WHAT THEY ARE LOOKING FOR.

I CAN TELL YOU THAT IT'S GOING TO HAND HECK OF LOT LOWER THAN 14 YEARS AGO WHEN WE DID THIS BEFORE.

WHEN IT WAS GOING TO BE $30 HOUSE RANGE WHICH KILLED THE

PROJECT. >> JUST FOR SEWER CUSTOMERS.

>> JUST FOR SEWER CUSTOMERS, CORRECT.

>> IT LOOKS LIKE IT WILL BE CLOSE.

>> IT LOOKS LIKE IT WOULD BE CLOSE, YES.

>> HE'S NOT GOING TO TELL US.

>> NOT UNTIL NEXT WEEK. >> OUR RATE CONSULTANT IS HELPING US WORK THROUGH THE NUMBER.

HE GAVE US A REPORT. WE HAVEN'T HAD A CHANCE TO DIGEST THAT INFORMATION. HE'S STILL WORKING ON IT.

NEXT TUESDAY, THAT -- THAT PERCENTAGE OF THAT NUMBER WILL BE PART OF THE PRESENTATION.

I DO THINK BASED ON WHAT I REMEMBER IT'S WITHIN THE RANGE OF WHAT CUSTOMERS ARE WILLING TO PAY.

THERE MAY BE QUESTIONS IF I TOLD YOU NOW, YOU MAY HAVE QUESTIONS, THAT I COULDN'T ANSWER AND THEN IT COULD BE

MISCONSTRUED BY THE PUBLIC. >> ANY QUESTIONS?

>> ONLY THE CUSTOMERS THAT PAY SEWER WILL BE EFFECTED

BY THIS? >> NO, MA'AM.

IT WOULD BE DISTRIBUTED AMONG THE WATER AND THE SEWER BILLS. THAT ALLOW US KEEP LARGER AUDIENCE AND KEEP THE INCREASES SMALLER.

>> THE MARKETING ON THIS. I DON'T -- WHEN -- WHEN WOULD THAT KIND OF START. THERE THAT START MAYBE AFTER NEXT WEEK EQUAL IS THAT I'M KIND OF JUST CURIOUS WHERE

THE PROJECTION LIES. >> I WOULD SAY WE'VE STARTED. I WOULD SAY THIS THE PART OF IT ALREADY. WE'RE NOT OUT THERE WITH COMMERCIALS OR ANYTHING OR SIGNS YET THIS IS VERY IMPORTANT PIECE. WE HAVE BEGIN FROM HERE HERE IN XHIENCATION WITH THEM TO SEE ABOUT OUR NEXT STEPS TOGETHER AS TRIO. AND BASED ON THE INFORMATION WE RECEIVED THE BEST NEXT STEPS TO TAKE.

[G.4. Bond Summary Presentation – For Information Only]

THANK YOU VERY MUCH. >> THE NEXT ITEM INFORMATION OUTSTANDING BOND DEBT. MISS BARRA MIKA WILL PRESENT THIS ITEM. SHE WILL PRESENT THE NEXT

FOUR ITEMS. >> THANK YOU.

I AM PRI SENTING TO YOU AN OVERVIEW OF OUR OUTSTANDING DEBT. A LITTLE BIT OF HISTORY BEHIND THE DEBTED ISSUANCE AND THE COVENANTS THAT WE MAINTAIN COMPLIANCE WITH. WE CURRENTLY THREE SERIES OF BONDS OUTSTANDING. THE TOTAL PRINCIPLE REMAINING IS $49 MILLION AND INTEREST OF 8.6 MILLION.

INTEREST RATES ON OUR REMAINING DEBT RANGE FROM 2% AROUND 2% TO ALMOST 6%. THE DEBT WILL BE GONE BY 2029. WE WOULD STILL BE FACING THE NEED FOR EXPANSION REHABILITATION, RESTORATION OF OUR AGING INFRASTRUCTURE. REVENUE REFUNDING OF BONDS THAT WAS AN ORIGINAL ISSUANCE AMOUNT OF 34.8 MILLION. THIS IS THE BOND SERIES WE'RE IN THE PROCESS OF REFINANCING WITH THE PROSPECT OF GETTING THE BETTER RATE THAN 5%.

AND SAVING ON THE INTEREST EXPENSE.

[01:15:04]

THE 1999B CAPITAL APPRECIATION BONDS.

THE SERIES THEIR CAPITAL APPRECIATION BONDS ON THE PREVIOUS SCREEN THE REMAIN INTEREST IS ZERO ON THOSE.

THIS IS BECAUSE THE INTEREST PAYMENT ARE ACCRUED AND COMPOUNDED ON TOP OF PRINCIPAL AND TYPICALLY PAID AT MATURITY. WE BEGAN PAYING THE COMPOUNDED BALANCE IN 2017. WHEN THE 1999-A BONDS WERE PAID OFF. THIS WAS DONE WITH RESOLUTION UA-99/11. AND ALONG WITH 1999-A REFUNDING REVENUE BOND. 1999A BONDS.

AND THOSE START BEING PAID OFF IMMEDIATELY.

THE 99-B PROCEED WERE USED FOR CONSTRUCTION AND EXTENSION, IN TWASTEWATER. THE MONEY WAS USED TOWN CREASE OUT RESERVES AND PAY DOWN FOR BOND ISSUANCE COST.

THE ORIGINAL BARRING ON THE 99-B WAS 10.2 MILLION.

AND THE ACCRUED INTEREST IS 24.7 MILLION ON THESE BONDS.

THE 2009 UTILITIES REFUNDING BONDS.

SERIES 2009 WAS APPROVED ON RESOLUTION UA-2009-15.

AND THE PROCEEDS FROM THE 2009 WAS UTILIZED TO PAY DOWN THE -- THE OUR PORTION OF THE POOLED LOAN.

THAT 2009 -- THE REFUNDING WAS FOR.

IT WAS USED TO ADJUST RESERVES THAT WE HAD OR NEEDED TO HAVE AND PAY FOR THE BOND ISSUANCE AND COST ASSOCIATED WITH THAT. THAT ORIGINAL WAS 34.8 MILLION. FROM REFINANCING IN 2022, OUR CURRENT OUTSTANDING DEBT FROM THE 34.8 AT 28.3 LOOKING TO HAVE COST SAVING TO THE LOWER INTEREST RATES ON THIS AS WELL. THE PROCEEDS FROM THE WERE USED TO PAY OFF 2002. THIS WAS REFUNDING IN 2016 OF THE 2002 BONDS. THE ORIGINAL BORROWING ON THE 2002 THE ORIGINAL BORROWING WAS 9 AND A HALF MILLION DOLLARS. THE INTEREST OVER TIME ON THAT PRIOR TO THAT THE INTEREST ON THE 2002 BONDS FROM WE PAID 6.7 MILLION. WHEN WE REFINANCED WE HADN'T TOUCHED THE PRINCIPLE. THE INTEREST THAT WE THEN WE WERE PAYING 1.8. THE INTEREST WE SAVED THROUGH THAT WAS 3 MILLION OVER THE TEN YEARS.

WE SAVED SUBSTANTIAL AMOUNT OF MONEY WITH THAT REFINANCING. THE BOND CONANCE THAT ARE FOUND IN MASTER RESOLUTION UNDER ARTICLE V COVER A LOT OF VERY BROAD SPECTRUM OF COMPLIANCE ISSUES.

FPUA HAS INCORPORATED THE COVENANTS INTO OUR POLICIES.

MANY OF THESE SOUND FAMILIAR BECAUSE WE REPORT ON THEM TO BOARD. WE HAVE ESTABLISH AKREWE THE PRINCIPAL AND INTEREST BASED ON THE SUMMEY ANNUAL PAYMENT OF INTEREST AND ANNUAL PAYMENT OF THE PRINCIPLE.

WE ESTABLISH A SYNCING FUND. WE SET UP REQUIRED RESERVES WHICH WE HAVE IN PLACE. WE PREPARE AN ANNUAL BUDGET AND YOU WILL SEE THE NEXT ITEM THAT WE HAVE OUR ANNUAL AUDIT. WE HAVE TO MAINTAIN LIQUIDITY OF 45 DAYS. AND DEBT SERVICE RATIO AT THE MINIMUM NEEDS TO BE 1.25.

AS WELL WE HAVE CUSTOMER RELATED POLICIES THAT COMPLY, HELP US COMPLY WITH THE COVENENCE.

[01:20:04]

THAT'S TO FIX AND ESTABLISH RATES WILL PROVIDE NET REVENUES THAT WILL ECOVER THE RESERVE REQUIREMENTS WITH NEEDED. ALL OF THE RATE ACCORDING COVENENCE MUST BE EQUAL FOR ALL RATE PAYERS OF THE SAME CLASS. THERE'S NO FREE SERVICES.

OUR BOND SERVICE SAID WE CAN'T GIVE AWAY FOR FREE.

THE NEXT TWO CAME UP DURING COVID.

WE WANTED TO -- WE COULDN'T DO DISCONNECTIONS AFTER 60 DAYS. WE STOPPED THE CONNECTIONS AND STOPPED OIL FEES AND DELINQUENCY CHARGES.

WE WERE VERY CAREFUL ABOUT WHERE WE TOOK THE MONEY FROM. IT'S MONEY FROM THE WI-OP OR PLACES WHERE IT WASN'T COMING FROM THE BUDGET.

WE WERE CAREFUL ABOUT THAT. IT'S PART OF THE BOND COVENENCE. WE WILL GIVING AWAY FREE SURFACES. WE WERE CAREFUL HOW WE CHOSE THE FUNDS. WE HAVE THINGS THAT ARE OPERATIONAL. WE HAVE MAINTAIN INSURANCE ON THE BUILDINGS. THERE'S GUIDELINES ABOUT DISPOSING OF PROPERTY. WE CAN'T GET RID ANY PART OF THE SYSTEM. WE STILL OWE MONEY.

WE NEED TO RETAIN CONSULTING ENGINEER.

BECAUSE IF WE NEED TO CONSULT ON OUR PROFITABILITY AND OUR OPERATIONS WE HAVE TO HAVE DIRECTOR OF UTILITIES. AND WE HAVE TO HAVE BONDED EMPLOYEES THAT ARE IN CHARGE OR FINANCIAL MATTERS.

TIMELY COMPLETION OF PROJECT REFERS TO THE THREE-YEAR WINDOW ON WHEN YOU BORROW MONEY THAT YOU NEED TO COMPLETE THE PROJECTS WITHIN A CERTAIN TIME FRAME.

AND WE'RE ALSO NOT ALLOWED TO BORROW MONEY AND PLEDGE THE SAME REVENUES THAT WE WERE ALREADY PROMISED WOULD PAY FOR THE OTHER DEBT. WE HAVE TO IF WE BORROW MORE MONEY, WE HAVE TO SUPPLY DOCUMENTATION THAT THERE'S MORE REVENUE OR WHATEVER WE PLEDGE TO SUPPORT THAT AND ONBLIGATE THE SAME MONEY. NO COMPETING FACILITIES REFERS TO SUPPLYING SERVICES OR TO ANYBODY THAT'S GOING TO BE IN OUR SERVICE TERRITORY AND COMPETE WITH OUR BUSINESS. I'M NOT SURE HOW THAT WOULD PLAY IN. THERE'S A LOT OF NUANCES IN ALL OF THESE. THERE'S A LOT MORE IN THIS SECTION OF THE MASTER BOND RESOLUTION.

I HAVE HIGHLIGHTED THE ONES THAT CAME UP IN DISCUSSION AND OVER YOU KNOW CERTAINLY THE PAST 1 1/2 WHEN WE LOOK AT EVERYTHING. LOOKING EVERYTHING OVER.

THAT IS MYSY NOP CISSE OF OUTSTANDING DEBT.

IF YOU HAVE QUESTIONS OR COMMENTS FROM ME.

>> I HAVE A FEW QUESTIONS. >> I HAVE A QUESTION ABOUT THE 1999-B. I MIGHT JUST NOT UNDERSTAND.

IT LOOKS LIKE WE HAVE NO INTEREST LEFT TO PAY ON IT.

WHICH LEADS ME TO BELIEVE WE PREPAID IT.

AND THE PRINCIPLE BALANCE WE OWE IS MORE THAN THE ORIGINAL BALANCE. HOW DID THAT HAPPEN?

>> SURE. IT'S A TRICKY ONE.

THE CAPITAL APPRECIATION BONDS ARE DIFFERENT WHEN YOU LOAN YOU ARE PAYING INTEREST AS YOU GO ALONG.

INTEREST PRINCIPLE. WITH THE CAPITAL APPRECIATION BOND, WE HAVE OUR LEVEL OF DEBT SERVICE WE PAY OFF ONE BOND AND THEN WHEN THAT PRINCIPLE IS DONE, AND THAT MAJOR BALLOON PAYMENT IS MADE THE NEXT ONE KICKS IN. UNTIL THEN YOU HAVE TO PAY INTEREST. THAT'S THE CASE 99-B.

THAT'S OUR OBLIGATION WITH THAT MONEY.

AND THE 99-B WHEN THAT PAYMENT WAS MADE THEY STARTED PAYING THAT. ALL ALONG WE WERE AKREWING ACCRUING INTEREST. BUT NOT PAYING.

THE INTEREST WAS ACCRUING AND COMPOUNDING.

WE BORROWED 10.2 MILLION AND THAT INTEREST WENT ON.

THEN 11 THEN 12 AND 13. IT KEPT COMPOUNDING UNTIL THE POINT WHEN WE STARTED PAYING IT BACK IN 2017.

NOW WE'RE STILL ACCRUING INTEREST ON THAT BALANCE.

IT'S COMPOUNDING BUT WE'RE DRIVING DOWN THE PRINCIPLE AND INTEREST AT THE SAME TIME.

WE ACCRUE THE AND ATTACH IT ON.

>> IT'S SCHEDULED OUT. >> JUST FOR THE SAKE OF MY

[01:25:02]

CLARITY. YOUR ARE NOT COMPOUNDING THE INTEREST. IT'S JUST ON AN ACCRUING

BASIS. >> IT'S ACCRUED -- THE CALCULATION WAS NOT MY CALCULATION.

>> DO THEY CHARGE YOU INTEREST ON THE INTEREST?

>> I DON'T -- THAT'S MY UNDERSTANDING.

I WOULD HAVE TO LOOK AT THE ACTUAL CALCULATION.

WHEN WE DO A CLOSE AND OFFICIAL STATEMENT IT LAYS OUT THESE ARE THE YEARS, THIS IS YOUR PAYMENT PRINCIPLE INTEREST AND ON THOSE CAPITAL APPRECIATION MODELS WERE WE ACCRUING INTEREST.

>> I UNDERSTAND THAT THEORY OF ACCRUING INTEREST.

BUT ADDING IT TO PRINCIPLE WHERE YOU GOT 10 TO 13 MILLION THE TOTAL PAY OFF. BUT WHAT I'M WANT TO MAKE SURE THAT YOU ONLY THE PRINCIPLES ARE EARNING THE INTEREST AND NOT THE ACCRUED INTEREST THAT REMAINS

UNPAID. >> I WOULD HAVE TO LOOK INTO THE CALCULATION. IT'S A TABLE THAT'S GIVEN TO US. WE HAVE THE MONEY TO -- WE ACCRUE IT AND THEN WE MAKE THE PRINCIPLE PAYMENT.

WE ACCRUE IT EACH MONTH. IT'S TABLED OUT FOR US.

ANY OTHER QUESTIONS. WAY I WAS LOOKING AT IT YOU ARE NOT MAKING NECESSARILY PAYMENT EVERY TIME YOU ACCRUE INTEREST. AND WHEN THAT INTEREST INTEREST HITS THAT BOND, IT GOES INTO THE PRINCIPLE;

CORRECT? >> YES.

>> AND IF YOU HAVE ANOTHER ACCRUAL OF INTEREST THEN THAT INTEREST IS BASED ON WHATEVER YOU PRINCIPLE IS AT

THAT TIME. >> THAT'S MY UNDERSTANDING.

>> THEN -- IT'S COMPOUNDING. YOU GET CHARGED INTEREST ON

INTEREST. >> IN 1999ED.

I DON'T KNOW THE CALCULATION OF THAT.

I WOULD HAVE TO CONFER WITH FINANCIAL ADVISOR.

>> WE CAN GET BACK -- >> ANY OTHER BONDS?

>> LET'S LEAVE THIS ONE. >> EXACTLY.

>> THIS WHAT WE HAVE HERE. I THINK IT SAYS OVER TIME

ON -- PAY THAT ONE OFF. >> WE ARE AACCRUING INTEREST. 24.7 ON 10 MILLION BORROWING. BARBARA MENTIONED WE'RE LOOKING TO REFINANCE THE 2009 BECAUSE OTHERS WILL BE PAID OFF. WE WILL BE ABLE TO PAY THEM OFF. OBVIOUSLY WE'RE NOT PAYING INTEREST ON THE '99S AND 2016.

THE 99 CAN'T BE REFINANCED. THERE'S TWO YEARS LEFT ON

THAT ONE. >> IT'S FREE MONEY.

>> IT'S BEEN A TIME. I WASN'T HERE IN 1999.

I CAN LOOK INTO THE ACTUAL CALCULATION.

THAT'S MY UNDERSTANDING OF IT.

>> THE OUTSTANDING BALANCE OF THESE BONDS ARE DIRECTLY GOING TO IMPACT THE RATE SUFFICIENCY STUDY ON HOW WE CAN BORROW ADDITIONAL MONEY. THIS -- IF I WAS IMPORTANT FOR THE BOARD TO KNOW WHAT OUR OUTSTANDING BALANCE IS.

OUR OUTSTANDING DEBT. BECAUSE IT DOES PLAY INTO THE EQUATION FOR RATING FOR I WANT TO AVOID SAY RATE INCREASES. FOR RATE INCREASES WHEN WE TALK ABOUT RELOCATING THE WASTEWATER PLANT.

AND EXPANSION THAT WE DO. >> NEW BONDS.

>> THANK YOU. >> OLD DEBT FACTORS INTO NEW

DEBT. >> THE CONTRIBUTIONS FOR

INVESTMENT. >> CONTRIBUTION INVESTMENT FOR THE FUTURE OF FT. PIERCE.

IT'S OUR MASTER BOND. IT'S OUR MASTER BOND

RESOLUTION. >> THAT'S NOT THE CITY CHARTER. THAT'S WHAT GOES OUT TO

MARKET. >> ALL OF THE THINGS THAT BOND COVENANTS REQUIRE ARE KIND OF LIKE PRETTY MUCH GOOD SENSE -- GOOD BUSINESS SENSE.

>> THEY JUST PUT THEM IN THERE TO TELL YOU WE EXPECT YOU TO DO THIS THIS AND THIS.

>> SO YOU ARE SUPPOSED. SOME ARE DEFINED IT THE CHARTER. SOME BULLET POINTS COME FROM

THE CHARTER. >> OKAY.

>> I'M CURIOUS -- I'M JUST THINKING OUT LOUD HOW ITS IS DIFFERENT THAN THE CITY DEBT.

>> RIGHT. >> WE DON'T TALK ABOUT BOND COVENANTS. WE HAVE DEBT.

[01:30:24]

THEY ARE LOOK AT IT AGAIN. THEY'VE BEEN OUT FOR THREE

WITH COVID. >> THEY ARE WORKING FROM

HOME. >> THEY MIGHT BE.

>> BUT THEY'VE BEEN OUT SEVERAL TIMES.

WE'VE HAD CONVERSATIONS AT LEAST TWICE AND S&P.

THEY SAY THANK YOU AND THEN COME BACK.

>> ALL OF POTENTIALLY ARE INTERESTED INLETING US BORROW MONEY OR WATCH THE MEETING, THEY LOOK AT BUDGET BOOK. THEY LOOK WHAT THE UTILITY

IS DOING. >> THEY LOOK AT THE FINANCIALS AND EVERYTHING. IT'S ALL TRANSPARENT.

EVERYTHING IS GOING OUT. MR. CHAIRMAN, JUST TO COMMENT IF YOU ARE A UTILITY.

YOU HAVE A LOT OF OTHER REGULATORY OVERSIGHT ALSO FOR ALL THE WATER QUALITY. THERE'S STATE AND FEDERAL OVERSIGHT GOING ON ALL THE TIME.

IN ADDITION TO THE FINANCIAL.

>> THERE'S SOME ACRONYM GOVERNMENT AGENCY THAT WE PROBABLY DEAL WITH THEM FOR SURE?

>> >> ANY OTHER QUESTIONS?

>> ONE LAST QUESTION. WITH US GETTING READY TO ACQUIRE MORE DEBT TO MOVE THE PROJECT ALONG, IS THERE ANYTHING -- WELL, FIRST LET ME START HERE.

IF OUR RATING FROM FITCH AND S&P BECOME BETTER THAT WILL LOWER THE INTEREST RATE WHEN WE BORROW.

THAT WOULD BE TRUE. >> HIGHER RATING IMPACTS HOW MUCH INTEREST YOU COULD GET AWAY WITH CHARGING.

OR BEING CHARGED? >> IS THERE ANY PRACTICAL WAY WE CAN IMPROVE OUR CREDIT RATINGS BEFORE WE GO

OUT FOR A NEW BOND MONEY? >> THEY WERE -- THE ENGINEERING CERTIFICATE LOOKS AT PART OF THE BOND RESOLUTION REQUIRES ENGINEER AND CERTIFICATE OR ENGINEER ON STAFF. THAT'S WHAT DUBERRY IS DOING FOR US. THEY LOOK AT THE STATE OF THE SYSTEM. AND THAT HELPS REDUCE OR HELPS IDENTIFY HOW STRONG THE UTILITY IS.

AND THAT HELPS INCREASE OUR BOND RATINGS.

ALSO ANYTIME YOU KNOW WHEN THE BOARD RAISES FOLLOWS INDEX FOR INCREASING RATE TO KEEP UP WITH THE TIMES THEY LOOK AT THAT AS WELL. ALL OF THE THINGS THAT DIRECTLY EFFECT THE UTILITY, UTILITY CUSTOMER'S BUILT.

ALL OF THOSE IMPACT THE ABILITY TO GET A BETTER RATING. PAYING OFF THE DEBT.

HOW WELL WE ARE DOING. WE ARE REPLACING THE SYSTEM.

RELIABILITY NUMBERS. WHAT KIND OF OUTSTANDING VIOLATION WE HAVE WITH PERMITTING AGENCY AND ALL OF THAT IMPACTS OUR ABILITY FOR OUR RATING.

>> IT'S A GOOD QUESTION. THAT'S A VERY GOOD QUESTION.

>> THEY HAVE A FINANCIAL FEASIBILITY STUDY.

THAT'S GOING TO LAY IT OUT AS WELL AS WHAT OUR PLAN IS.

YOU KNOW, AND THAT IS GOING TO GIVE SOME SUPPORT TO THE

ISSUANCE OF THE BONDS. >> DO WE HAVE ANY ROOM TO

PAY THE 1999 OFF FASTER? >> WE WILL BE REFINANCING.

>> THAT ONE IS ALSO? >> I THOUGHT YOU SAID YOU COULDN'T. COULD YOU GO BACK TO THE

CHART. >> SURE.

>> THAT'S THE ONE DUE ON 2024.

I THINK OUR PAYMENT PLAN IS PRETTY TIGHT TO GET TO 2024.

>> IF WE PAY IT OFF FASTER WE HAVE TO OFF SET SOMETHING AS FAR AS UTILITY RATES TO BE ABLE TO DO THAT?

>> YOU ARE SAYING TWO YEAR'S INTEREST.

POST OF THE INTEREST WAS HEAVY ON THE FRONT END.

>> YES. >> I WAS LOOKING AT IT FROM A DIFFERENT ANGLE THAN SAVING MONEY ON INTEREST ON THAT PARTICULAR BOND. I WAS LOOKING AT IT FROM WE GO INTO WHATEVER AMOUNT OF CASH ON HAND THAT WE CAN UTILIZE AND PAY OFF SOME DEBT HOW LIKELY IS IT, IT GIVES BETTER INTEREST RATE AND PUTS IN A POSITION FOR

BORROWING? >> WE RAISE OUR 8-PLUS.

IS THERE A WAY TO PAY OFF SOMETHING FASTER?

>> WE'VE LOOKED AT THAT. WE DISCUSSED THAT LAST WEEK WITH RATE CONSULTANT. WE WERE AT 30 MILLION AS FAR AS CASH. OVER THE LAST 2 AND A HALF

[01:35:01]

TO THREE YEARS WE DROPPED DOWN TO 20.

BECAUSE WE DONE QUITE A BIT OF INFRASTRUCTURE IMPROVEMENTS. IT'S REALLY TOUGH TO TAP INTO THAT MONEY. YOU WILL NEED IT.

>> YOU WORK HARD TO SPEND THAT EXTRA MONEY.

>> RIGHT. WE WORKED HARD TO BUILD IT UP. BECAUSE WE KNOW WE HAVE TO INVEST IN THE SYSTEM. WHEN WE INVEST WITHIN TWO YEARS -- LESS THAN TWO YEARS OR THREE YEARS?

>> FOR GOING TO 30 MILLION TO 20 MILLION IN CASH.

>> IT WAS TWO YEARS. .

TWO YEARS WE SPENT 30 -- 10 MILLION DOLLARS.

IF WE WERE TO PAY OFF THIS DEBT WE WOULD HAVE VERY LITTLE UNRESTRICTED FUND. THAT'S EFFECTS THE DAYS OF

RESTRICTED CASH FLOW. >> THAT'S CASH ON HAND.

>> OBVIOUSLY LIKE MR. RUTHERFORD PRESENTED EARLIER NOW NOT A GOOD TIME TO GET CASH STRAPPED.

>> IT'S NOT. WE WILL TALK QUITE A BIT ABOUT THAT -- THIS SPECIFC TOPIC NEXT WEEK WITH OUR RATE CONSULTANT AND FINANCIAL ADVISOR AT THE

JOINT WORKSHOP. >> THANK YOU.

>> YOUR WELCOME. >> BARBARA WILL CONTINUE.

[Items G.5. & G.6.]

PRESENT THE 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT. THANK YOU, AGAIN, EVERYONE.

THIS IS THE BEST TIME WHEN WE'RE DONE WITH FINANCIALS FOR THE YEAR. WE CAN JUST DIVE INTO BUDGETS. I HAVE PRESENTATION FOR YOU TODAY ON THE FINANCIAL OPERATING RESULT FOR FISCAL YEAR ENDING SEPTEMBER 30TH, 201.

LIT COVER SOME OF THE SAME INFORMATION THAT THE SEPTEMBER QUARTERLY RESULTS. IT'S BEING YEAR TO DAY SE - BASIS. THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. SOME O OUR YEAR TO DAY CHANGES THAT YOU EXPERIENCE IN FISCAL YEAR '21 OVER 2 PREVIOUS YEAR ARE YEAR TO DATE OPERATING INCOME WHICH IS OPERATING REVENUE OPERATING EXPENSES WAS HIGHER IN 2021. BY 2.2 MILLION DOLLARS.

OPERATING REVENUES WERE UP FOR BOTH RESIDENTIAL AND GENERAL SERVICE SALES. REPRESENTING ALMOST 94% OF THE TOTAL OPERATING REVENUE INCREASE OVER 2020.

WHILE OPERATING EXPENSES WERE GREATER IN FISCAL YEAR -- GREATER THAN FISCAL YEAR 2020, LOWER THAN EXPECTED SAVING OCCURRED THROUGH LOWER EXPENSES FOR THE FISCAL YEAR. AND I'LL HAVE MORE DETAILS IN THE NEXT SLIDES. OUR OPERATING EXPENSES TOTAL OF 92,635,000. HIGHER THAN 2020, BROUGHT SAVING THROUGH SOME OF -- I WILL POINT OUT THE OTHER.

ONE OF THE MAJOR ONE WAS THE PENSION.

OUR CAPITAL CONTRIBUTION FOR FISCAL YEAR '21 ADDED TO THE TOTAL INCREASE IN THAT POSITION.

WITH AN INCREASE OVER THE LAST FISCAL YEAR SLIGHTLY OVER ALMOST 2.7 MILLION. CLOSING OUT THE YEAR WITH THIS LOOK AT THE YEAR OVER YEAR CHANGES IN OUR FINANCIAL PICTURE, WE HAVE ADDED 9,998,000 TO OUR NET POSITION. THIS SLIDE DEMONSTRATES GRAPHICALLY HOW OUR OPERATING EXPENSES IN 2021 COMPARED FISCAL YEAR '20. OPERATING EXPENSES WERE SLIGHTLY HIGHER WITH NATURAL GAS LEADING THE WAY WITH INCREASE OF 19%. WHILE WASTEWATER, AND FPUA NET AND ELECTRIC REVENUES WERE UP.

THE REVENUES FOR GAS AND ELECTRIC AND GAS ON QUARTERLY BASIS TYPICALLY ARE PRESENTED NET OF THE COST OF PURCHASE POWER. THOSE ARE NOT REFLECTED IN THESE GRAPHS. BUT IF WE THAT THE ELECTRIC WOULD HAD STILL HAD INCREASE OF 1.7% AND GAS INCREASE WOULD HAVE BEEN 7 POINT 9% IF WE DISCOUNTED THE COST OF THE PURCHASES FOR RESALE. OUR YEAR OVER YEAR OPERATING EXPENSES WITH AN OVERALL INCREASE AND EXPENSE FROM

[01:40:03]

LAST YEAR OF 1.4 MILLION AND THE MOSTS COMPRISED OF INCREASE IN COST OF PURCHASES FOR RESALE FOR ELECTRIC OF 840,000, AND GAS OF 605,000.

THE INCREASE IN THESE COST FOR LAST YEAR WERE DIRECTLY RELATED TO THE INCREASE IN THE SALES REVENUE NOT NECESSARILY RATE INCREASES. DEPRECIATION EXPENSE WAS HIGHER BY 880,000. AND 2021 WE CLOSED CAPITALIZED CONSTRUCTION ASSETS, WHICH REDUCED THE CONSTRUCTION WORK AND PROGRESS.

AND INCREASED ASSETS OUR ASSETS AND SERVICE BY 24 MILLION. THAT -- THAT'S WHAT HELPED US TO DEPRECIATE MORE. WE GOT ASSETS.

A LOT OF THOSE ASSETS WERE NOT LIKE NONCASH CONTRIBUTIONS OF DEVELOPER OF ALMOST 3 MILLION.

WE ADDED 24 MILLION TO OUR CAPITAL ASSETS AND OF COURSE THEN DEPRECIATION HAS GONE UP.

WHILE PLANT AND FIELD OPERATIONS EXPENSES WERE COMBINED 6.2% FOR FISCAL YEAR 'THE 21 THAT'S A RESULT OF MAINTENANCE MAINTENANCE SERVICE CONTRACTS CONSULTING AND JUST GENERAL INCREASE IN THE COST OF SUPPLIES.

THERE WERE COST SAVINGS THAT CAME AS AN OFF SET.

RETIREMENT EXPENSE WAS DOWN TOTAL OF YEAR OVER YEAR 3 MILLION. THE HEAD OF SEVERAL REASONS FOR THAT IMPACT. ONE WAS DECREASE EMPLOYER CONTRIBUTION FROM THE PREVIOUS YEAR.

FROM 2020. AND THEN AT THE END OF THE YEAR, THE ACTUARIAL ADJUSTMENT WAS REDUCTION IN OUR LIABILITY OF ALMOST 1.9 MILLION.

THAT HELPED REDUCE OUR EXPENSE.

AND AGAIN ADD TO THAT BOTTOM LINE.

THE YEAR END ADJUSTMENT HAD POSITIVE IMPACT WITH ADJUSTMENT TO VIABILITY AND REDUCING EXPENSE OF 575,000.

>> BELOW THE LINE OF OPERATING INCOME FPUA EXPERIENCED INCREASE IN CAPITAL CONTRIBUTIONS, CAPITAL IMPROVEMENT CHARGES, INCREASED FROM LAST YEAR.

DUE TO INCREASE IN DEVELOPER PROJECTS IN FISCAL YEAR '21 AND LARGER CUSTOMER EXPANSIONS.

OUR CAPITAL IMPROVEMENT CHARGES WERE 1.3 MILLION DOLLARS HIGHER THAN PREVIOUS YEAR.

AND AGAIN OUR NONCASH CONTRIBUTION WHICH DIRECTLY IMPACTED OUR CAPITAL AS SETS THEY CAME FROM DEVELOPER IN 2021. THAT CONTINUE ON THE RISE LAST YEAR AND '21 AS WELL. 2.7 MILLION DOLLARS TO OUR REVENUES. THE DISTRIBUTION TO THE CITY BASED UPON THE CALCULATION OF REVENUE SUBJECT TO THE 6% DISTRIBUTION IS 6 AND A HALF MILLION.

6,524,000. THIS IS UP $182,000.

2.9% CALCULATED FOR THE PREVIOUS YEAR.

ONCE THEY ARE PRESENTED ALTERNATE THE ECONOMY COMMISSION MEETING BEGINNING OF APRIL, WE WILL PAY THIS SUM TO THE CITY. 6,524,000.

THAT CALCULATION CAN BE FOUND IN YOUR FINANCIAL REPORT ON PAGE 55. AS YOU CAN SEE IT'S PRETTY STEADY INCREASE EVERY YEAR. WE PAY THEM MORE.

REVENUES ARE HIGHER. WE PAY MORE SUBJECT TO IT.

JUST I GUESS IN ONE YEAR, 2018.

WE HAD A LITTLE BIT OF DIP IN REVENUES.

AS DID THE DISTRIBUTION. THIS SLIDE SHOWS TREND IN OUR CALCULATION DEBT SERVICE COVERAGE.

THE CALCULATION IS RATIO OF THE ROLLING 12-MONTH AVERAGE NET AVAILABLE INCOME TO CURRENT DEBT SERVICE WHICH IS PRINCIPAL AND INTEREST COMBINED.

FOR THE 12 MONTHS ENDING SEPTEMBER 30TH, 2021 DEBT SERVICE RATIO WAS 3.54 TIMES COMPARED TO 2.16 TIMES AS OF SEPTEMBER 30TH OF LAST YEAR. OUR BOND COVENENCE REQUIRE WE MAINTAIN MINIMUM RATIO OF 1.25.

IN PARTICULAR, AS PER RESOLUTION 2012-FPUA MUST MAINTAIN 45 DAYS OF CASH ON HAND.

AND WE ARE IN COMPLIANCE WITH THIS RESOLUTION.

[01:45:01]

WE HAVE CURRENTLY 95 DAYS BUT WITH -- THAT INCLUDES NONCASH -- TAKING NONCASH ITEMS OUT.

AND IF WE INCLUDE THE CAPITAL AND CITY DISTRIBUTION OTHER DEBT SERVICE PAYMENTS WHICH AREN'T REQUIRED BY THE BOND COVENENCE, WE'RE ACTUALLY CLOSER TO 70 DAYS. WE'RE STILL WELL ABOVE -- EVEN IF WE TAKE OUT THE BIG CASHOUT.

THE DEBT SERVICE COVERAGE CAN BE FOUND IN THE STATISTICAL PORTION OF THE REPORT THAT'S ON PAGE 83.

YOU CAN SEE THE TEN-YEAR HISTORY IS CLOSE TO THIS.

WE'RE ASKING APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR SEPTEMBER 30TH, 2021. JUST AN INFORMATION ITEM.

BUT IF YOU HAVE ANY COMMENTS OR QUESTION ON OUR YEAR END.

>> ANY QUESTIONS OF THE BOARD?

>> I ALWAYS LOOK ALTERNATE THE AUDITOR NOTE SAYING THAT YOU NEED TO DO ANYTHING DIFFERENT OR BETTER; THERE'S

NO FINDING, RIGHT. >> THANK YOU.

>> YOU'RE QUITE WELCOME. >> DON'T WE NEED APPROVAL --

>> WE NEED APPROVAL AND THE MOTION AND SECOND.

>> WE HAVE TO APPROVE THE ANNUAL FINANCIAL

COMPREHENSIVE REPORT. >> MOVE APPROVAL.

>> SECOND. PLEASE CALL THE ROLL.

BARBARA PRESENTED G-5 AND G-6 TOGETHER.

>> WE NEED ANOTHER MOTION. >> WE NEED ANOTHER MOTION -- G-6 WAS INFORMATION ITEM ONLY.

[I.1. Adopt Resolution No. UA 2022-03, a resolution amending the budget of Fort Pierce Utilities Authority of the City of Fort Pierce Florida for the Fiscal Year beginning October 1, 2020 and ending September 30, 2021.]

>> MOVING ON TO RESOLUTION. WE HAVE TWO RESOLUTIONS THAT

NEED TO BE DISCUSSED. >> YES, SIR, MR. CHAIRMAN.

RESOLUTION THIS AFTERNOON REQUEST TO ADOPT RESOLUTION AMENDMENTING THE 2021FPUA BUDGET.

THIS WILL BE THE LAST ITEM PRESENTED BY MRS. BARBARA MICAH. I APPRECIATE WHAT SHE HAS DONE TODAY. THAT WILL BE THE ONLY

ACCOUNTANT JOKE OF THE DAY. >> THIS NEXT ITEM THE RESOLUTION AMENDING THE BUDGET FOR FISCAL YEAR 2021.

FOR THE OPERATION OF FT. PIERCE UTILITY AUTHORITY FROM THE BUDGET AS WAS AMENDED IN AUGUST OF 2021.

TO THE FINAL ACTUALS THAT WERE JUST REVIEWED IN THE PREVIOUS PRESENTATION. THE FINAL ADJUSTMENTS TO BUDGET ARE FINANCIAL REVENUES $113,610,753 WERE 2,241,906 LOWER THAN ANTICIPATED.

EXPENSES FOR THE FINANCIAL STATEMENTS OF $103, 612, 103,755 WERE BELOW EXPECTATIONS FOR EXPENSES BY 7,210,470. THE MAIN DRIVER THAT RESULTED IN INCREASE EXPECT CHANGE IN THE POSITION OF 9,998,998 WAS INCREASED GENERAL SERVICE SALES CONTRIBUTED CAPITAL FOR BOTH WATER AND WASTEWATER AND FAVORABLE ACTUARIAL ADJUSTMENT ON PENSION LIABILITY FOR FISCAL YEAR. THIS ROUTINE ITEM.

I WOULD LIKE TO ASK THE BOARD ADOPT RESOLUTION 2022-03. THE FINAL BUDGET AMENDMENT

FOR FISCAL YEAR 2021. >>> ANY QUESTIONS FOR BOARD?

>> THIS IS SOMETHING WE DO STANDARD EVERY YEAR AS A RESULT OF THE AUDIT; CORRECT?

>> YES. >> THESE ARE FINAL NUMBERS.

THIS BECOMES THE BUDGET. >> YES.

>> I HAVE ONE QUESTION. ANYTHING THAT WAS ROLLED OVER DUE TO DIFFERENT EXPENSES NOT ESTABLISHED IN THIS PERIOD HAS TAKEN OUT AND APPLIED TO THE NEXT?

OR NO? >> NEXT --

>> THIS IS FOR THE OPERATIONS AND MAINTENANCE BUDGET. WE DON'T CARRY THAT OVER.

[01:50:01]

WE DO HAVE THE CARRY OVER THAT WE DO FOR CAPITAL.

>> RIGHT. THAT WILL BE PRESENT AT THE

NEXT MEETING IN APRIL. >> WE NEED TO HAVE --

>> MOVE APPROVAL. >> SECOND.

>> READ THE RESOLUTION TOO. >> MISS BENNETT DID.

>> RESOLUTION UA2022-03 RESOLUTION AMENDING THE BUDGET OF FT. PIERCE UTILITY AUTHORITY OF THE CITY OF FT. PIERCE FLORIDA FOR THE FISCAL YEAR BEGINNING OCTOBER 1,220 AND THE ENDING SEPTEMBER 30TH, 2021.

>> PLEASE CALL THE ROLL.

>> THANK YOU. THE NEXT ITEM THIS AFTERNOON

[I.2. Adopt Resolution No. UA 2022-05, a resolution certifying the appointment of members to the Fort Pierce Utilities Authority Advisory Committee; establishing the terms of office; providing for an effective date.]

IS RESOLUTION CERTIFYING THE APPOINTMENT OF THE MEMBERS TO THE FPUA UTILITY ADVISORY COMMITTEE.

THIS APPOINT INCLUDING NINE MEMBER IF APPROVED FIRST MEETING WOULD BE HELD MARCH 29TH AT THE ENERGY SERVICES CENTER FOR INTRODUCTION TO FFUA.

TIME YET TO BE DETERMINED BUT IT LIKELY BE IN THE LATE AFTERNOON OR EARLY EVENING. THE INTENT FOR THE UTILITY AS VICERY COMMITTEE TO MEET HERE THAT WILL HAVE TO MAKE SURE IT FITS INTO THEIR SCHEDULE AND THEIR AVAILABILITY. THE LEADERSHIP TEAM WILL HOST THE INITIAL MEETINGS AND BASED ON FOR THE UPCOMING YEAR WITH THE RELOCATION AND WASTEWATER PLANT DEBT REFINANCING IT'S POSSIBLE WE MAY LOOK FOR INTERNAL OR EXTERNAL FACILITATOR TO HELP THE

GROUP IF NEEDED. >> ANY QUESTIONS?

>> LOOKS LIKE A GOOD GROUP. >> SURE DOES.

>> LET'S -- ANYONE CARE TO MAKE A MOTION APPROVE THE

RESOLUTION. >> MOVE APPROVAL.

RESOLUTION UA2022-05. >> SECOND.

>> PLEASE READ THE RESOLUTION.

>> RESOLUTION NUMBER UA-2022-05 A RESOLUTION CERTIFYING THE APPOINTMENT OF MEMBERS OF THE FT. PIERCE UTILITIES AUTHORITY ADVISORY COMMITTEE ESTABLISHING THE TERMS OF OFFICE:PROVIDING FOR AN EFFECTIVE DATE.

>> PLEASE CALL THE ROLL.

[J. DIRECTOR:]