[Call to Order]
[00:00:10]
>> PSALM CHAPTER ONE, VERSE 3.
YOU SHALL BE LIKE A TREE PLANTED BY THE RIVERS OF WATER. HIS LEAVES SHALL NOT WITHER AND WHATEVER HE DOES SHALL PROSPER.
WHENEVER OUR HANDS TOUCH, IT WILL PROSPER.
WE THANK YOU FOR YOUR GRACE AND MERCY.
WE ACKNOWLEDGE YOUR HAND AND PRESENCE IN ALL THINGS.
AND WE ASK FOR YOUR CONTINUED PROTECTION IN GUIDANCE AS LEADERS MAKE CHOICES THAT NOT ONLY IMPACT THE COMMUNITY OF TODAY BUT GENERATIONINGS THAT COME AFTER. WE CONTINUE TO PRAY FOR PEACE IN INSIDES OF WAR AND ASK FOR PROTECTION AND PROVISION FOR THE COUNTRY OF UKRAINE.
WE PRAY ALL THIS IN JESUS NAME, AMEN.
>> AMEN. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.
AND TO THE REPUBLIC, FOR WHICH IT STANDS, ONE NATION, UNDER GOD, WITH LIBERTY AND JUSTICE FOR ALL.
>> WILL YOU PLEASE CALL THE ROLL.
[A. SET THE AGENDA]
>> AND WE HAVE MOTION TO SET THE AGENDA.
[B. APPROVAL OF MINUTES:]
. DO WE NEED TO MAKE CHANGESTO THE MINUTES? >> ARE WE READY TO APPROVE.
>> MAKE A MOTION TO APPROVE. >> SECOND.
[C. COMMENTS FROM THE PUBLIC:]
>> MOVING ON TO COMMENTS FROM THE PUBLIC.
IF YOU HAVE ANY COMMENTS PLEASE STEP FORWARD TO THE PODIUM. PLEASE STATE YOUR NAME AND WHERE YOU LIVE. AND YOU HAVE THREE MINUTES
TO SPEAK. >> I THOUGHT WE WERE DOING IT AT THE END. MY NAME THE CHARLIE WILSON.
I REPRESENT PROTECT OUR WATERWAY AN ORGANIZATION CONCERNED ABOUT THE ENVIRONMENT AND OUR PARTICULARLY IN OUR LAGOON. AND OUR INLET.
WE JOINED A LOT OF OTHER ENVIRONMENTAL GROUPS THAT HAVE A KEEN INTEREST IN WHAT HAPPENS WITH THE WASTEWATER FACILITY. I WANT TO THANK THIS BOARD IN THE NEW MANAGEMENT PARTICULARLY FOR ITS THE MOMENTUM THAT WE'VE BEEN ABLE TO CAUSE WITH THE CHANGE OF ADMINISTRATION WE'VE HAD SOMEWHAT OF CHANGE OF ATTITUDE AND WE MOVED FORWARD ON WHAT'S BEEN DELAYED FOR MAYBE DECADES SO WE ALL HAVE MADE AGREEMENT WE KNOW WE NEED TO MOVE THE FACILITY.
WE HAVE FINISHED OUR CONVERSATION ABOUT DO WE NEED TO MOVE IT. NOW IN THE CONVERSATION ABOUT HOW DO WE MOVE IT. WHAT IS THE PLAN? OUR PRIORITY OF COURSE IS FOR MY ORGANIZATION IS THAT THE PLANT GET MOVED. WE DON'T CARE BY WHOM.
WE JUST WANT TO MAKE SURE IT GETS MOVED.
MY CONCERN IS, THAT IF WE DON'T HAVE A PLAN THAT'S ACCEPTABLE TO THE PUBLIC THAT WE WILL LOSE THE SUPPORT OF THE PUBLIC AND GOVERNMENTAL AUTHORITY AND LOSE THIS OPPORTUNITY. LAST NIGHT I SAT THROUGH THE CITY COMMISSION MEETING. ONE OF THE THINGS I HEARD IS THAT WE HAVE -- WE HAVE AN ALTERNATIVE BEFORE I WENT TO THE JOINT MEETING OF THIS COMMISSION AND THIS BOARD AND LISTENED TO THE PROPOSAL MADE.
AND IT -- THE PROPOSAL INCLUDED A HEFTY RATE INCREASE THAT WAS REQUIRED TO BE ABLE TO ACCOMPLISH THIS TASK. LAST NIGHT THE COMMISSION MEETING I LEARNED THERE WAS AN ALTERNATIVE TO THAT, THAT REQUIRED NO RATE INCREASES IN ORDER TO GET THIS PROCESS STARTED. I DO BELIEVE THAT WE SHOULD CONTINUE TO AT LEAST ENTERTAIN ALL OF THE ALTERNATIVES BECAUSE IF WE LOSE THE SUPPORT OR WE LOSE SUPPORT OF THE GOVERNMENT GOVERNMENTAL BODIES.
BECAUSE OF THE COST IT DOESN'T DO IT ANY GOOD TO BE ON THE SAME SIDE. I URGE YOU TO TAKE THE OPPORTUNITIES THAT ARE GIVEN US BY THE NEW MANAGEMENT AND CONTINUE TO LOOK AT OUTSIDE SOURCES AS WELL AS OUR INTERNAL SOURCES TO BE ABLE TO GET THIS JOB ACCOMPLISHED. OUR STAFF IS WONDERFUL AND THEY TRY HARD AND THEY ARE WONDERFUL.
BUT THEY AND THE UTILITY IS A MONOPOLY.
IT DOESN'T HAVE MONOPOLY ON GOOD IDEAS.
AS A RESULT WE NEED TO BE OPEN TO ALTERNATIVES THAT MAY BE BETTER. BECAUSE IF THE PUBLIC FINDS OUT THAT WE GO THROUGH A PROCESS AND THAT WE ADOPT A PLAN TO MOVE THE PLANT, AND THAT, THAT PLAN COST US CONSIDERABLY MORE THAN A PLAN THAT WAS AVAILABLE TO US, THERE'S GOING TO BE HELL TO PAY.
THANK YOU. >> ANY OTHER COMMENTS FROM
[00:05:07]
THE PUBLIC? >> HELLO, GOOD AFTERNOON.
I'M HERE TODAY TO SAY THAT THE PROPOSAL TO HELP THE CITY. IF YOU CONSIDER WITH HELPING IN ANY WAY. THE PROPOSAL WAS THE CONSTRUCTION AND MAINTENANCE.
BUT I HAD SOME VERY GOOD MAINTENANCE WITH THE STAFF, WITH MR. CISNEROS. WITH THE CITY COMMISSION I DON'T KNOW IF YOU COMMISSIONERS, AND WE ARE FLEXIBLE. IF YOU NEED FINANCE, WE ARE FINANCING. [INAUDIBLE] WE ARE HERE TO HELP. I ASK YOU FOR FOR THE CITY.
I THINK WE CAN HELP THIS TO HAPPEN.
TO HAPPEN FASTER. PROBABLY WITHOUT THIS HUGE INCREASE OF THE RATES. LONG-TIME FOR THE SOLUTION.
THANK YOU VERY MUCH. IF YOU ANY QUESTIONS I'M AVAILABLE FOR ANY COMMENT OR QUESTION YOU MAY HAVE ABOUT OUR PROPOSAL OR THE WAYS WE CAN HELP THE CITY.
[D. CONSENT AGENDA:]
>> THANK YOU SO MUCH. >> MOVING ON TO CONSENT AGENDA. HAS EVERYONE HAD A CHANCE TO REVIEW THE ITEMS. DO ANY ITEMS NEED TO BE
>> SECOND. >> PLEASE CALL THE ROLL.
[1. Approve budget transfer for 6" gas main extension on Midway Rd. for to new developments (Wave Gardens & Wylder homes) in the amount of $235,000. This will allow Gas Operation to expand its customer base.]
TO NEW BUSINESS. THANK YOU, MR. CHAIRMAN.MEMBERS OF THE BOARD, GOOD AFTERNOON.
THE FIRST ITEM THIS AFTERNOON APPROVAL FOR A BUDGET TRANSFER FOR COVER THE COST OF NEW 6 INCH GAS MAIN TO SOUTHWESTERN SERVICE CORRIDOR.
MR. FRED GADUS WILL PRESENT THIS TIME.
THANK YOU MR. SCISNEROS AND MEMBERS OF THE BOARD.
I ASK FOR PERMISSION FOR WAVE GARDEN MAIN EXTENSION.
THE MONEY IS IN THE BUDGET FOR FISCAL YEAR '22.
THIS MONEY WILL ALLOW US TO FINISH THE MAIN EXTENSION ON MIDWAY ROAD. WAVE GARDENS WHICH IS MAIN WILL BE SERVING HAS SIGNED A LETTER OF INTENT FOR USING FPUA GAS AND WE'RE IN TALKS WITH WILDER HOMES WHO IS BUILDING STRAIGHT ACROSS THE STREET FROM WAVE GARDENS.
WAVE GARDENS WILL BE PRODUCING 1,000 NEW HOMES, A NEW HOTEL AND COUPLE OF DIFFERENT RESTAURANTS.
WILDER HOMES WILL HAVE 4,000 HOMES, A NEW SCHOOL, AND GOLF COURSE. ANY QUESTIONS?
>> ANY QUESTIONS OF THE BOARD?
>> DO YOU HAVE AN ESTIMATED PAY BACK PERIOD.
>> FOUR YEARS. >> HOW SOON IS THIS PROJECT
SUPPOSED -- >> WILDER HOMES STARTED CONSTRUCTION. A WAVE GARDENS WILL BE STARTING CONSTRUCTION AT THE OF NEXT YEAR.EAR, BEGINNING- I THINK IT'S IMPORTANT TO NOTE THESE TWO DEVELOPMENTS WOULD DOUBLE OUR CURRENT CUSTOMER.
>> MORE THAN DOUBLE. >> IS THAT ASSUMING 100%
EVEN AT 50% TAKE RATE WE WOULD DOUBLE.
>> WE WOULD DOUBLE CUSTOMER BASE.
>> THE WAY THIS WOULD PROBABLY WORK YOU WOULD HAVE SOME TYPE OF AGREEMENT WITH THE DEVELOPER AND THEY
PROVIDE GAS TO EVERY HOME. >> YES.
>> AND IT'S KIND OF AN AUTOMATIC DEAL WITH THEM.
>> AND WE'RE WORKING ON. WE'VE HAD LETTER OF INTEND WITH WILDER HOMES. THEY ARE IN THE DECISION-MAKING. UNFORTUNATE THING WITH WILDER HOME THERE'S US AND THERE'S CITY GAS.
>> HOW DO OUR RATES COMPARE TO CITY GAS?
>> WE'RE A LITTLE BIT CHEAPER.
>> WE'RE ALSO VERY, VERY CLOSE.
THAT'S ONE OF THE REASONS I WOULD LIKE TO GET THERE.
>> WHERE EXACTLY IS THE NORTHWEST CORNER OF THE
TURNPIKE AND MIDWAY. >> IT'S RIGHT ON THE OTHER
[00:10:02]
SIDE OF 95 NORTHWEST CORNER WILL BE WAVE GARDENS.RIGHT NEXT TO THE FP&L POWER PLANT.
THE CUT OFF ROAD WILL BE WILDER HOMES.
PARCELS IN THE CITY? >> THE CITY OWNS THE ONE
PARCEL OF WAVE GARDENS. >> THE FIRST ONE?
>> YES. >> HOW MANY HOMES ARE CONSTRUCTED OUT THERE RIGHT NOW?
ARE THEY JUST -- >> THEY ARE JUST CLEARING AND PUTTING IN THE ROADS NOW.
>> IT WILL BE A LONG TIME BEFORE --
>> ANY OTHER QUESTIONS. >> BE 4,000 HOMES; RIGHT?
>> I THINK I WOULD ALSO LIKE TO NOTIFY THAT'S WHERE THE WAVE POOLS SUPPOSED TO BE. I THINK IT'S ALSO IMPORTANT TO MAKE SURE WE'RE OUT THERE TO HELP SUPPORT THAT GROWTH.
GIVES US QUITE A BIT OF OPPORTUNITY.
>> YES. >> THAT'S A LOT OF WATER.
>> THE HOTEL THEY ARE SUPPOSED TO BE BUILDING IS
SUPPOSED TO 900 ROOM HOTEL. >> WOW.
>> JUST FOR CLARITY THAT'S INSIDE OUR SERVICE AREA FOR
WATER AND GAS; RIGHT? >> JUST GAS.
>> FOR THE WAVE GARDEN. FOR THAT DEVELOPMENT, IT WOULD BE A MASTER METER THROUGH ST. LUCIE COUNTY.
THEY WOULD BE OUR WATER CUSTOMER.
>> IT WOULD BE THE BULK WATER.
>> YES. >> ANY OTHER QUESTIONS?
>> I MOVE APPROVAL. >> I WILL SECOND.
[2. Approve budget transfer of $217,000 for T&D’s Pole replacement project 505.]
>> THANK YOU, FRED. >> MR. CHAIRMAN THE NEXT TIRM THIS AFTERNOON APPROVAL FOR BUDGET TRANSFER TO COVER ADDITIONAL COST FOR POLE REPLACEMENT.
OUR GOAL TO AGGRESSIVELY ATTACK OUR POLE REPLACEMENT PROGRAM FOR THE NEXT FEW YEARS.
MR. BEAU CRAWFORD WILL PRESENT.
THANK YOU. SUPERINTENDENT OF ELECTRIC.
HERE TONIGHT TO ASK YOUR APPROVAL FOR BUDGET TRANSFERS OF $217,000 INTO T AND D'S POLE REPLACEMENT PROJECT. 505.
THIS PROJECT IS ONGOING PROJECT FOR REPLACING DETERIORATED POLES THAT HAVE BEEN IDENTIFIED DURING OUR POLE INSPECTION PROGRAM. WITH THE HELP OF CONTRACTORS AND THAT DEDICATION OF T AND D FINALLY INCREASED THE NUMBER TO UNDER 300 THAT NEEDS REPLACING.
I WILL TAKE QUESTIONS IF YOU HAVE ANY.
>> ANY QUESTIONS OF THE BOARD?
>> MR. CHAIR, YOU SAY THERE'S LESS THAN 300 POLES THAT NEED TO BE REPLACED NOW.
>> AT THIS TIME, YES, SIR. >> HOW MANY POLES ARE WE THINKING THAT 217,000 DOLLARS WILL REPLACE?
>> THEY'VE REPLACED WITH THIS OVER 200 OF THEM.
>> YES, MA'AM. >> AND WHERE ARE THOSE POLES
GOING TO BE REPLACED AT? >> THEY HAVE BEEN THE WHOLE SERVICE CENTER, SERVICE AREA OF ELECTRIC WE DO INSPECTION OF THE WHOLE SYSTEM A THIRD OF IT EACH YEAR.
WE REPLACED SOME NORTH OF ORANGE AVENUE.
SOME SOUTH OF ORANGE AVENUE AND SOME ON THE BEACH.
IT'S SCATTERED WHERE WE DO REPLACE THEM.
>> WE DON'T REPLACE A BUN IN A ROW.
THROUGH THE INSPECTION PROGRAM WE IDENTIFY WHICH POLES HAVE EXCEEDED THEIR LIFE EXPECTANCY OR THEY'VE DETERIORATED TO A POINT THEY DON'T HAVE THE POLE STRENGTH REQUIREMENT TO CONTINUE TO BE IN OPERATION.
THEY ARE THROUGHOUT THE ENTIRE SERVICE AREA.
>> AND WILL THOSE BE THE DECORATED POLES --
>> NO. THESE ARE JUST WOOD POLES.
I HAD THE BENEFIT OF SITTING IN ON THE BUDGET MEETING THE OTHER DAY. AND JUST TO LET YOU GUYS KNOW. I GUESS THE POLES LAST 43 YEARS; IS THAT WHAT I REMEMBER?
>> I THINK ON AVERAGE THEY FOUND IT WAS 43 YEARS I BELIEVE IS WHAT WE DISCUSSED.
I FEEL LIKE IT'S GOOD INVESTMENT LONG TERM AND WE WERE ALSO TALKING ABOUT REPLACING ALSO THESE ARE OBVIOUSLY GOING TO BE WOODEN ONES.
BUT WE WERE TALKING ABOUT THE OPPORTUNITY TO REPLACE SOME WITH CONCRETE -- I'M GUESSING THESE WERE ONE WE WERE DISCUSSING ABOUT HOPPING OVER TRAFFIC.
DOESN'T MAKE SENSE TO GO UNDER GROUND OR PUT IN
>> YOU PAID ATTENTION. >> THAT'S CORRECT.
>> WILL THESE BE -- IS THE PLAN TO GET THESE IN PLACE
[00:15:01]
BEFORE THE HEIGHT OF HURRICANE SEASON?WILL THAT HAPPEN? >> THIS AMOUNT WILL BE FOR ONES THAT HAVE BEEN REPLACED.
LIKE I SAID IT'S ONGOING. I WILL HAVE INSPECTION CREW COME BACK IN, IN THE FALL. AND TEST THEM AGAIN.
BUT WE DO HAVE MORE THAT FPUA CREWS WILL DO DURING THE TIME. THE REST OF THEM WILL NOT BE CHANGED OUT. WITH ALL THE JOBS GOING ON
IT'S HARD. >> THIS IS SOMETHING ONGOING. YOU KEEP AN EYE OUT FOR HURRICANE SEASON, I WOULD THINK.
YES, SIR. MR. CRAWFORD IS THIS THE LOWEST NUMBER WE'VE HAD GOING INTO STORM SEASON?
>> YES, THIS IS. LAST FEW YEARS WE'VE BEEN OVER 400 AT THIS TIME OF YEAR.
AND WITH THE HELP OF CONTRACT CREWS AND WE'VE
ACTUALLY GOT IT DOWN LOWER. >> ANYONE CARE TO MAKE A
>> I WILL SECOND IT. >> THANK YOU ALL.
[3. Accept proposal from and approve Raymond James Financial Services, Senior Manager with offices in St. Petersburg, FL and Winter Haven, FL, as the Underwriter for the Utility Revenue and Refunding Bonds, Series 2022, and the refinancing of the Bond Series 2009, with PNC Financial Services Group, Co-Manager with offices in Tampa, FL and Fort Meyers, FL, serving as co-managers on the project.]
>> NEXT ITEM. >> THANK YOU, MR. CHAIRMAN.
APPROVAL FOR PROPOSAL FOR UNDERWRITER FOR OUR 2022 BOND ISSUANCE FOR CLARITY AND TRANSPARENCY.
THIS IS ONLY FOR UNDERWRITER SERVICES IF WE PROCEED WITH THE 2022 BOND ISSUANCE. BARBARA MIKA WILL PRESENT
AS YOU KNOW WE'RE PREPARING FOR REFINANCING OF 2009 REVENUE REFUNDING BOND AND PROVIDING FOR ADDITIONAL DENT ISSUANCE IN 2022. THIS PROCESS REQUIRES AN UNDERWRITER. THE UNDERWRITER PROVIDES A SERVICES THROUGHOUT THE BOND ISSUANCE PROCESS.
WITH THE SENIOR MANAGING UNDERWRIGHTER LEADING THE EFFORTS ALL FEES ARE CONTINGENT UPON IS ISSUANCE.
SOME OF THE THINGS THAT THE UNDERWRITER TAKES CARE OF, THEY TAKE ON ALL THE RISK THAT'S INVOLVED WITH SELLING OUR BONDS. THEY PARTICIPATE IN DRAFTING ALL THE BOND SOME OF THE BOND DOCUMENTS AND THEY INCLUDING THE OFFICIAL STATEMENT AT THE END.
ASSIST IN PREPARATION AND DISCUSSION WITH RATING AGENCIES AND BOND INSURERS. THEY MAKE RECOMMENDATION FOR PROPOSED FINANCING INCLUDING THE TIMING OF THE SALE, THE OVERALL SALES APPROACH IF THERE'S PROVISIONS AND THEY MARKET AND DISTRIBUTE THE BONDS TO RETAIL AND INSTITUTIONAL INVESTORS THROUGHOUT THE PUBLIC SALE PROCESS. WIRING FUNDS THROUGH FPUA AND THE CLOSING DATE. THEY REMARKET BONDS TO INVEGSOR IN THE WEEKS PRIOR TO THE PRICING ALLOWING FOR INVESTORS TO PREPARE FOR THE BOND SALE AND BE READY TO PLACE THE SALE FOR THE BONDS.
FPUA ISSUED AN RFP FOR BOND UNDERWRITING SERVICES FOR AND REFUNDING BOND SERIES - 2022 TO FINANCE CAPITAL PROJECT AND REFINANCE OUR OUTSTANDING DEBT.
NOTICES FOR RFP WERE PUBLISHED IN BOND BUYER, WHICH IS NATIONAL DAILY PUBLICATION FOR MUNICIPAL FINANCE INDUSTRY. AND THE ST. LUCIE NEWS TRIBUNE ON FEBRUARY 22ND, 2022 AND MARCH 1ST, 2022 AS REQUIRED BY OUR CHARTER. FPUA RECEIVED 6 PROPOSAL FROM UNDERWRITING FOR THE BONDS.
COLLECTION WAS MADE ON THE SIZE AND CHARACTERISTICS AND PROPOSALS RECEIVED. RAYMOND JAMES RECOMMENDED AS SENIOR UNDERWRIGHTER WITH WNC AS THE COMANAGING UNDERWRITER FOR THE 2022 BOND.
THAT INVOLVES THEIR EXPERIENCE AND THEIR COMMITMENT TO FLORIDA MUNICIPAL FINANCE THE LOCAL PRESENCE AND THE ABILITY TO MARKET BONDS TO RETAIL INVESTORS, THE SIZE OF THE BOND ISSUANCE THAT NEEDS TO BE SOLD. AND THE CREDIT OFFERING AND VARIOUS MARKETS THAT THE FIRM HAS ACCESS TO FOR THE MARKETABILITY AND DISTRIBUTION OF THE BONDS.
SUMMARY OF THE UNDERWRITING PROPOSAL WERE PREPARED FOR THE FINANCIAL ADVISOR CAPITAL MARKETS AND THE RATING TABULATION OF BOTH OF THOSE DOCUMENT ARE INCLUDED IN YOUR AGENDA PACKETS. STAFF IS RECOMMENDING APPROVAL RFP SELECTION FOR UNDERWRITING SERVICES FOR THE UTILITY REVENUE REFUNDING BOND SERIES 2022
[00:20:02]
AND THE REFINANCING OF THE BOND SERIES 2009, WITH RAYMOND JAMES FINANCIAL SERVICE SERVING AS SENIOR MANAGER AND PNC FINANCIAL SERVICES GROUP AS COMANAGER.BOTH FIRMS HAVE OFFICES AND PROVIDE EXTENSIVE SERVICES IN THE STATE OF FLORIDA. IF YOU HAVE ANY QUESTIONS, I
WILL BE HAPPY TO ADDRESS. >> I HAVE A QUESTION.
HAVE WE USED EITHER ONE OF THESE FOR ANYTHING?
>> NOT TO HIGH NO ONE. THIS WAS THE FIRST TIME I'VE
BEEN INVOLVED. >> I'M LOOKING AT THE RANKING SHEET AND SO IT'S BASED ON POINTS; RIGHT?
>> RAYMOND JAMES HAD HIGHEST AT 88 AND PNC HAD THE NEXT
WITH 66. >> I BELIEF THERE'S ANOTHER AGENCY THAT CAME IN. PNC -- WE CURRENTLY WORK WITH WNCING ON OTHER ISSUES. THEY WERE SECOND.
>> FHN. YOU HAD EXPERIENCED WITH PNC THAT'S WHY YOU YOU ARE THE SUB.
THE COMANAGER, YES. >> WE CAME TO CONCLUSION AFTER DISCUSSION WITH OUR FINANCIAL CONSULTANT WITH AN AMOUNT OF THIS POTENTIAL AMOUNT FOR THIS LOAN THAT WE WOULD HAVE A SECOND COMANAGER AT THE
RECOMMENDATION SO THAT'S -- >> GIVES IT MORE MARKETABILITY. THEY CAN SPREAD OUT AND ACCOMPLISH MORE. HOPEFULLY A QUICKER PERIOD OF TIME. AS I UNDERSTAND IT FHN THE REASON YOU DIDN'T MOVE THEM UP TO INTO THE -- WAS THERE A PRESENCE IN FLORIDA THAT'S EXACTLY WHAT I WAS THINKING.
YOU RATED THEM HIGH. WHICH DEFINITELY NOTED NO PRESENT EXPERIENCE IN FLORIDA.
THEIR COST ARE DEFINITELY ATTRACTIVE WHEN YOU COMPARE TO THE TWO. BUT THAT'S PERHAPS NOT TAKING INTO ACCOUNT THEIR EXPERIENCE IN FLORIDA.
AND HOW THINGS HAVE TO BE DONE.
THE PRICING DEPENDENT ON THE SENIOR MANAGER.
BECAUSE THE COMANAGER WORKS WITH THEM AS AS SUPPORT IN THE PRICING IF THEY WERE CHOSEN SECOND THEIR PRICING WOULDN'T HAVE BEEN THE PRICING THAT WOULD PREVAIL.
>> MR. CHAIR. I HAVE A QUESTION.
ANY ADDITIONAL INFO FIELD THE MONITORING OF ACCOUNT I'M JUST CURIOUS WHAT THAT MEANS? OBVIOUSLY ACTIVE WITH FPUA AND OTHERS ARE SELF-EX-PLANTORY. BUT IS THAT --
>> I THINK IT'S ONGOING MONITORING OF THE ACCOUNT EVERYONE AFTER EVERYTHING SETTLES.
>> CAME TO A MORTGAGE SERVICE.
>> OKAY. >> ANY OTHER QUESTIONS OF
THE BOARD? >> ANYONE CARE TO MAKE A
>> LET'S NOT BE SHY. >> SECOND.
[4. Natural Gas Rate Stabilization Fund Update – March 2022]
>> THANK YOU. >> THANK YOU BARBARA.
MR. CHAIRMAN THE NEXT ITEM IS A RECOMMENDATION TO THE NATURAL GAS RATE STABILIZATION FUND.
MR. GADDUS WILL PRESENT THIS ITEM.
>> LOOKS LIKE THEY CHANGED IT.
YOU MAY HAVE TO TYPE IN CITY HALL AND THEN CHAMBERS.
>> THERE YOU GO. >> THANK YOU MR. CISNEROS.
CHAIRMAN AND MEMBERS OF THE BOARD.
I BRING BEFORE YOU THE NATURAL GAS RATE STABILIZATION FUND UPDATE FOR MARCH 2022.
STAFF HAS RERUN SENSITIVITY ANALSITION INCLUDING
[00:25:02]
FEBRUARY ACTUAL AND PLANNARY DATA FOR MARCH.NATURAL GAS PRICES HAVE BEEN TRENDING UP SINCE THE BEGINNING OF JANUARY. THE PRICING OVER THE LAST FEW MONTHS HAS AVERAGED ABOUT $4.46 A DECOTHERM.
THE MONTH OF MARCH BEGAN WITH PROMPT FUTURES TRADING AROUND $4.50 PER MMBTU. AND WILL END UP THE SAME CONTRACT CLOSING $1 HIGHER AT $5.54.
AS OF MARCH 31ST. THE EIA STORAGE REPORT SHOWS WORKING GAS INVENTORIES STAND 1.4TCF IN PLACE.
20% BELOW A YEAR-AGO LEVEL AND 15% BELOW THE FIVE-YEAR AVERAGE. THE MARCH CONCERN REFLECTS THE DECREASE WHICHES APPROVE BAD I THE BOARD JANUARY 19TH, 2022. FROM 20 CENTS TO NEGATIVE TWO CENTS A CCF. NOW THE PRICE OF GAS HAS RISEN BY $2 SINCE THE BEGINNING OF JANUARY.
RSF WILL BE BELOW THE OPERATING RANGE BY THE END OF MAY. BASED ON CURRENT STATUS OF, STAFF RECOMMENDS AN INCREASE TO THE PPA OF 30 CENTS PER CCF FROM NEGATIVE TWO CENTS TO POSITIVE 28 CENTS FOR CCF EFFECTIVE MAY 1ST. 2022.
OPTION TWO, THIS IS AN ANOTHER OPTION TO INCREASE THE PGA. 24 CENTS PER CCF FROM NEGATIVE 2 POSITIVE 22 CENT. WITH THIS ADJUSTMENT TO RSF THE FUND WILL DROP TO 60,000 BEFORE IT STARTS TO RECOVER.
THIS SHOWS THE DIFFERENCE IN RESIDENTIAL BILL AT 10, 20 AND 30CCFS PER MONTH. THE AVERAGE CUSTOMER USES BETWEEN 10 AND 20CCFS PER MONTH.
ALTHOUGH STAFF RECOMMENDS AN INCREASE THE PGA CAN REMAIN THE SAME IF THE BOARD DESIRES.
ANY QUESTIONS. >> THERE'S A COUPLE OF
QUESTIONS. >> WHO WANTS TO START FIRST?
>> THE ONE I CAN ANSWER ALREADY IS NATURAL GAS OPENED THAT $7 POINLT 82. IT'S HIGHER THAN WHAT I DID
THIS. >> LOOKING AT THE LAST GRAPH. THAT'S THE 30.
IF WE INCREASE IT 30 CENTS; IS THAT CORRECT?
>> THAT'S THE INCREASE OF 30 CENTS?
>> WE KNOW WE HAVE A STEEP VERTICAL INCREASE OUT OF THE OPERATING I GUESS ZONE. THAT YELLOW PORTION.
ANY REASON WHY WE HAVE TO GO SO STEEP AND UP.
DO WE THINK WE WILL SEE FURTHER INCREASES OR ARE WE IN A DEFICIT UNDER CORRECTION?
>> IF WE GO LOWER THAN THE 24 CENTS, WE WILL BE AT ZERO
OR BELOW ZERO. >> I THINK IT'S IMPORTANT TO NOTE THAT WHEN THEY -- THE PRICE IS THE PREVIOUS MARKET PRICE PROJECTS THAT DAY AND THEN THE NEXT 12 MONTHS.
IT MAY LOOK DIFFERENT NEXT MONTH WHEN THEY HOPEFULLY THAT 12 MONTH WINDOW LOOKS BETTER.
BUT RIGHT NOW THE GAS IS PRETTY VOLATILE.
ARE YOU SURE THE LAST SLIDE IN THE PACKET WITH 24 CENTS
>> THAT ONE. >> YOU DON'T HAVE -- DON'T
THINK. >> IN THIS PACKET, I BELIEVE I DON'T REMEMBER WHERE I WROTE IT.
IT'S IN HERE. IF WE DO NOT DO AN INCREASE WE WILL UTILIZE ALL OF THE MONEY IN THIS FUND BY THE
END OF MAY. >> NOW WITH THIS INCREASE THAT WE SAW THIS MORNING WHICH IS -- WE JUST DID.
THIS WAS 5.55 AT THE TIME; IS THAT RIGHT?
>> WHEN I DID THIS WAS ABOUT -- 7.20.
>> $7.82. THEY ARE PROJECTING THAT IT WILL GO UP INTO THE $8 RANGE.
>> SAFE TO ASSUME THAT BEFORE THE END OF MAY.
WILL BE DEPLETED. >> IF WE DO NOTHING.
>> RIGHT. >> IT'S LOOKING LIKE A 30 CENTS IS THE APPROPRIATE MOVE.
BECAUSE EVEN WITH THE 24 CENTS WE'RE NOT IN THE
OPERATING RANGE VERY LONG. >> THIS IS SLIDE IF WE DO
[00:30:02]
>> I BELIEVE THE GAS PRICES HAVE BEEN OVER $7 A DECOTHERM FOR THE LAST TEN DAYS.
>> WOW. >> ANY FURTHER DEBATE ABOUT THE TWO OPTIONS? DOES ANYONE WANT TO PROPOSE
A THIRD OPTION? >> CAN WE GO BACK TO THE SCREEN WITH THE 10 TO 20 AND 30.
SCENARIO THREE IS 30 CENTS. STAFF RECOMMENDING HOW MUCH
>> WE DID PROVIDE TWO OPTIONS FOR THE BOARD TO
CONSIDER. >> IS THERE ANY SEASONABLE
INFLUENCE FOR GAS? >> THE COLDER WEATHER UP NORTH. THEY ARE STILL GETTING SNOW.
ONE OF THE BIG THINGS THE EXPORTS TO EUROPE.
WE'VE NEVER EXPORTED THIS MUCH GAS TO EUROPE.
AND THE THIRD REASON IS FEDERAL GOVERNMENT HAVE NOT ALLOWED US TO OPEN UP SOME NATURAL GAS WELLS OR DRILL
FOR NEW ONES YET. >> THERE'S SOME RESTRICTION
ON TRANSMISSION SYSTEM. >> NOT ALLOWING NEW LINES TO
>> FROM THE LAST BOARD MEETING, WE HAVE -- WANT TOY SAY 1,000 WELLS LESS THAN A COUPLE OF YEARS THEY ARE ABLE TO PULL FROM. THAT'S PART OF THE PROBLEM.
IT'S NOT ONE FACTOR. IT'S MULTIPLE FACTORS ON THE GAS PRICES WHERE THEY NEED TO BE.
MFPA ADDRESSED THIS ISSUE WE HAVE THE RESOURCES TO HANDLE THIS. BUT CURRENTLY THEY ARE NOT BEING OPENED UP BECAUSE THERE'S SPECIFIC REGULATION IN OUR CURRENT ADMINISTRATION THAT PROHIBIT
THAT. >> THEY ARE WORKING TOWARD A SOLUTION. RIGHT NOW IT'S BEING -- WE CAN FEEL IT. WE CAN FEEL IN IT THE
UTILITY BILL. >> YOU ASKED ABOUT SEASONAL OUT YOU -- DID YOU MEAN ALSO CUSTOMERS? THE USE OF -- IS THERE DIFFERENCE IN THE SEASONED FOR OUR CUSTOMERS AND THE USE OF GAS?
>> YES, MA'AM. >> I'M LOOKING AT THIS AND IT'S SCENARIO ONE, TWO AND THREE.
THESE ARE THE THREE SCENARIOS.
CENTS. >> I GUESS I'M A LITTLE BIT HESITANT ABOUT GOING UP 30% WHEN WE'RE NOT FOR SURE THAT THESE PRICES ARE GOING TO CONTINUE.
IF WE GO UP, THEN I'M THINKING ABOUT THE CUSTOMER.
AND THE CUSTOMER WOULDN'T -- IT'S GOING TO IMPACT THEM AS WELL AS EVERYBODY ELSE.
AND SOME PEOPLE CAN'T AFFORD THAT.
30 CENTS -- I'M JUST NOT COMFORTABLE WITH THE 30
CENTS. >> WHAT ARE THEY PAYING PER
>> IF WE APPROVE THE 30 CENTS PER CCF INCREASE, THAT A 20CCF. ALL THE WILLS WILL MORE THAN
>> CAN YOU COME UP TO THE PODIUM.
>> SORRY ABOUT THAT. >> I THINK THE BLUE CALLEM
>> THAT'S WHAT THEY PAY RIGHT NOW.
>> THE -- THE GRAY COLUMN 30CCS.
THAT'S LIKE DOUBLING THEIR BILL IF WE DO THE 30.
[00:35:02]
>> THE DIFFERENCES ARE BETWEEN 45 DOLLARS AND 51 DOLLARS. NOT BETWEEN
>> 29 VERSES 32 VERSES $32.744.
FOR THAT AMOUNT OF FUEL. >> YOU COMPARE THE COLOR BARS. THANK YOU.
>> IN THE GRAND SCHEME OF THINGS WE LOOK AT $6 CHANGE FROM DOING NOTHING TO DOING A 30 CENTS INCREASE.
>> RIGHT. >> IF YOU LOOK AT THE 24 CENTS. WE CAN DO 24 CENTS.
THE 24 CENTS WOULD BRING US DOWN TO 60,000 IN OUR CUSHION BEFORE WE START TO RECOVER, WHICH WILL TAKE UNTIL JANUARY OF '23 OR SO TO START EVEN RECOVERING.
WITH DO 30 CENTS MAY BE SHORTER THAN WHAT WE EXPECT.
THAT STEEP INCLINE YOU SEE AT THE END IS THE MARKET PRICES GO FROM $8 TO $4. THAT'S WHY YOU SEE THE REALLY STEEP CURVE UPWARDS. WHICH WE WOULD CHANGE BACK OF COURSE. CAN WE GO BACK TO THE OTHER SLIDE A THAT SHOWS HOW MUCH INCREASES ARE GOING TO BE HOW MUCH THEY WILL EFFECT THE CUSTOMER.
THAT'S THE PART I'M A LITTLE BIT CONFUSED ABILITY.
I NEED TO BE CLEAR ON BEFORE I MAKE O BEFORE WE MAKE A
DECISION. >> THE BLUE COLUMN IS ACTUALLY TEN CCF OF GAS ALL THE I WAY ACROSS.
DIDN'T FORM PROPERLY. THAT'S MY MISTAKE.
I DIDN'T LOOK AT IT. >> THE GAS WOULD GO FROM 29.74 TO 32.14 AT 24 CENTS AND AT --
>> 30 CENTS WOULD GO FROM 29.74 TO 32.74.
CURRENT CUSTOMER PAYS 29.74 A MONTH.
IF WE APPROVE THE INCREASE STAFF IS RECOMMENDING THEY
WILL NOW PAY $32.74. >> CORRECT.
>> RIGHT. >> WASN'T AS BIG AS IT
LOOKED. >> I WAS LOOKING BACK THERE.
>> FOR THE 30CCF CUSTOMER THEY CURRENTLY PAY $61.02.
AND THE WE APPROVE THE FULL INCREASE, THEY WILL GO TO
>> DOESN'T LOOK AS BAD. >> 30 CENTS ISN'T AS BIG AS
YOU THINK IT IS. >> I WOULD RECOMMEND THE 30 CENTS. I WILL RECOVER QUICKER.
I WILL START RECOVERY IN JUNE INSTEAD OF JUNE ALL THE WAY I DON'T REMEMBER THE MONTH.
LIKE JULY OR AUGUST. WE START GETTING RECOVERY ON THE 24 CENTS? .
>> MR. CHAIRMAN, ALSO IF WE GO THE 30 IT DOESN'T MEAN WE HAVE TO STAY AT 30. WE LOOK AT THIS -- RIGHT NOW IT LOOKS LIKE IT WILL GO UP. BUT IF IT DOESN'T, WE CAN ALWAYS GO BACK. WE'VE BEEN ALL OVER THE MAP
>> WITH THESE PRICES. BECAUSE WE REACT TO WHATEVER -- WHATEVER THE MARKET IS DOING.
WE REACT QUICKLY. >> WE SEE IT EVERY MONTH.
>> YOU CAN REVIEW IT TWICE A MONTH.
AS SOON AS IT GOES DOWN, WE WILL AS SOON AS GAS PRICES
GO DOWN, YOU WILL GO DOWN. >> WE WILL BE RIGHT BACK IN
SOMETHING LOWER. >> WE WERE LUCKY FOR TWO YEARS. WE DIDN'T HAVE TO DO ANYTHING TO PGA. WE HAD IT NAILED DOWN.
>> JUST THE MARKET HAS GONE CRAZY.
>> IF WE GO TO 24 CENTS HOW LONG WOULD IT TAKE TO
RECOVER? >> WE WOULD -- NOT UNTIL
NEXT JANUARY. >> START RECOVERY.
>> BEFORE WE'RE UP ABOVE 100,000.
>> THAT'S HOLDING RATES AT $2K7.
>> AS LONG AS GAS DOESN'T KEEP CLIMBING.
>> YEAH. >> THEY SHOWED PRICING ALL
[00:40:01]
THE WAY OUT THROUGH NEXT YEAR.>> I HOPE THAT'S NOT TRUE. >> ANY OTHER QUESTIONS?
>> IT SOUNDS THAT ANSWERS GOING TO 30 CENTS TO RECOVER
EARLIER. >> YOU DON'T WANT TO GET
CAUGHT 30 CENTS. >> MINUS 2, PLUS 28.
>>> I DON'T HAVE ANY GAS UTILITIES UNFORTUNATELY.
I WOULD LOVE TO. ELECTRIC GAS, I DON'T KNOW
>> IS THERE -- HOW DO YOU HELP THE PUBLIC NOT USE AS MUCH GAS? HOW -- ARE THERE THINGS THEY CAN DO TO I JUST I DON'T KNOW HOW THE CONSUMPTION
WORKS OR ANYTHING LIKE THAT. >> WHENEVER THEY REPLACE THEIR STOVE OR GET NEW HOT WATER HEATER.
EVERYTHING HAVE ENERGY EFFICIENT NOW.
THEY CAN GO TO TANKLESS HOT WATER HERETO YES THE GAS COMES ON WHEN THEY CALL FOR IT.
>> WITH R WE TRY TO ROW MOST THE TANKINGS.
A LOT OF PEOPLE GO TO TANKLESS.
>> GOOD FOR HURRICANE. NOT QUITE AS ENERGY EFFICIENT BECAUSE YOU ALWAYS HEAT THE WATER.
>> IT'S A GOOD THING TO HAVE IN FLORIDA IN MY OPINION.
>> I AGREE. I HAD AN OPPORTUNITY.
IF I WOULD HAVE HAD IT. I HAVEN'T HAD AN
OPPORTUNITY. >> AND YOU ARE PROMOTING.
YOU HAVE SOME SPECIALS AND SOME INCENTIVE.
>> WE HAVE REBATES. WE'RE GIVING AWAY TANK WATER
HEATERS FOR NEW CUSTOMERS. >> THEY ARE EVEN MORE ENERGY EFFICIENT. BUT NOT TANKLESS.
>> HAVE YOU ALL PUT OUT MORE ADVERTISEMENT ON THAT?
>> YES, MA'AM. WE ALWAYS PUSH ON MARKETING NETWORK THAT WORKS FOR US. CALLED MTN.
AND THEY ARE ALWAYS POSTING ON FACEBOOK AND WE ALWAYS DO
BILL INSERTS. >> WE HAVE TWO TRUCKS
LABELED. >> BIG ROLLING BILLBOARDS.
>> TELL YOU WHAT THE REANTICIPATES ARE AND
EVERYTHING ELSE. >> THIS IS NOR ANOTHER DAY.
I WOULD LIKE TO SUGGEST. NOW THAT EXPLAINS YOUR WE HAVE A MARKETING FIRM WHO -- BECAUSE THE PEOPLE IN THE ADS AND FACEBOOK. THEY ARE STOCK.
THEY LOOK STOCK. SOMETIME IN THE FUTURE.
THIS IS NOT THE TIME FOR IT. WE COULD RELOOK AT THAT AND HAVE PEOPLE IN IT THAT LOOK MORE LIKE PEOPLE IN FT. PIERCE. YOU KNOW IT'S WE O IT'S NOT
A CRITICISM. >> WE CAN DEFINITELY WORK ON
>> I WILL BE HAPPY TO MAKE THE MOTION IF WE'RE THROUGH
TALKING? >> I MOVE THAT WE GO TO 30 CURRENTS AND REVIEW THIS EVERY MONTH.
>> DO WE HAVE A SECOND? >> I WILL SECOND.
>> WE APPRECIATE YOUR PATIENCE WITH THAT.
WE WILL MAKE SURE THE GRAPH FOR FUTURE PRESENTATION ARE MORE CLEAR. IT'S A TEAM EFFORT.
YOU CAN BLAME ALL OF US. >> YOU CAN JUST EXAMINE IT.
[5. Bill Comparison for the Month of February 2022 – For Information Only]
>> IT'S AN EXERCISE THAT WE HAVE TO GO THROUGH, I GUESS.
>> NEXT ITEM INFORMATION FOR THE BILL COMPARISON.
MICHELLE HARRIS WILL PRESENT THIS ITEM.
>> THANK YOU. I'LL PRESENTING TO YOU TODAY MONTHLY UPDATE PUBLISHED BY FMEA AND LOCAL TREASURE COAST UTILITY BILLS FOR FEBRUARY.
>> FIRST GRAPH SHOWS COMPARE SAN FOR 1,000 KILOWATT HOUR OF CONSUMPTION FOR 13 MUNICIPAL UTILITIES MEMBERS OF THE ALL REQUIREMENT PROJECT.
THEY ARE UPON BASE BILL AMOUNT.
OUR FEBRUARY RATE AT $134 RANKS FPU ON THE HIGHER END OF THIS GROUP. WE DID MOVE ONE BAR TO THE
[00:45:01]
LEFT FROM LAST MONTH. THIS GRAPH DISPLAYS THE COMPARISON FOR SAME LEVEL OF CONSUMPTION BUT INCLUDES ALL THE UTILITIES IN STATE. FEBRUARY BILL STILL AT 1 #.84 RANKS FPUA HIGHER IN COMPARISON TO MOST OF THE OTHER MUNICIPAL UTILITIES IN THE STATE.AND WITH THIS CHART COMPARING EVERYBODY WE MOVED ONE DOWN TO THE LEFT. IT'S FAVORABLE.
WHILE WE MAINTAIN RATES FOR ANOTHER MONTH 12 OF THE OTHER 31 UTILITY IMPLEMENTED INCREASES THAT OVERALL IMPACT OF THE RATE ADJUSTMENTS RESULTED IN INCREASE $4.67 AND INCREASE $2.48 TO MUNICIPAL AVERAGE.
THIS GRACH PRESENTS SIMILAR COMPARISON.
OUR FEBRUARY BILL AT $339.80 RANKS US FAR TO THE RIGHT OF THIS GROUP AS WELL. OUR RATE FOR 1,000 KILOWATT HOURS AND 2500 KILOWATT HOURS FALL BELOW THE ARP AVERAGE AND MUNICIPAL AVERAGE.
HIGHER. THAN THE ARP AND MUNICIPAL.
BUT WE ARE BELOW THE INVESTOR-OWNED UTILITY
AVERAGES. >> THIS STABLE DISPLAYED FEBRUARY COMPARISON OF THE AVERAGE RESIDENTIAL BILL ON THE TREASURE COAST. FPUA BILL FOR ALL THREE SERVICES PROVIDED INSIDE CITY LIMIT ARE SHOWN IN THE FIRST TWO COLUMNS. GRAY AND BLUE COLUMN.
ALL OTHER BILL IN THIS STABLE HAVE ELECTRIC SERVICES BY FP&L AND WATER AND WATER WASTE SERVICES.
THE BLUE COLUMN REPRESENTS THE UTILITY BILL USING STANDARD CONSUMPTION THAT WE HAVE WITH 1,000 KILOWATT HOURS FOR ELECTRIC AND 6,000 GALLENS FOR WATER.
AS REQUESTED WE ADDED ADDITIONAL COLUMN THAT'S A COLUMN IN GRAY. AND WE USE THAT TO REPRESENT THE TRUE AVERAGE FOR THE MONTH THAT WE'RE REPORTING.
DURING THE MONTHS OF FEBRUARY WE ESTIMATE THAT THE AVERAGE FOR RESIDENTIAL CUSTOMERS WAS 700 KILOWATT.
AND ABOUT 4400 GALLONS FOR WATER.
SINCE THIS WAS LAST PRESENTED THERE'S NO CHANGES TO FPUA ELECTRIC WATER OR WASTEWATER RATES.
HOWEVER, IN JANUARY WHEN FP&L HAD RATE INCREASE 7% AND FUEL ADJUSTMENT INCREASE 40%.
WENT UP ALMOST $10. THAT WAS EFFECTIVE JANUARY 1 AND ST. LUCIE COUNTY WATER AND SEWER RATE INCREASED 3% AND THAT EFFECTIVE FEBRUARY 1ST.
THIS ITEM PRESENTED FOR INFORMATION ONLY.
I WILL BE GLAD TO ANSWER ANY QUESTIONS YOU MAY HAVE.
>>FULLY QUESTIONS OF THE BOARD?
>> YOU SAID THIS WAS INCLUDING THAT?
>> YES. >> I DO HAVE A QUESTION,
TOO. >> I'M LOOKING AT THE RATE REPORT. IT LIKES BARTO WENT DOWN 8 AND A HALF DOLLARS. AND THEY ARE STILL IN THE MIDDLE OF THE PACK. WHAT IS GOING ON?
LET ME SEE WHAT THEY DID IN FEBRUARY.
A LOT OF WHAT I SEE A LOT OF FLUBBING WASTE.
THEY ARE DRASTIC. WE TRIED TO KEEP THINGS MORE STEADY. I'VE NOTICED WHEN LOOKING AT THE MONTH TO MONTH COULD GO FROM 10 UP TO 10 DOWN.
LET ME LOOK WHAT THEY DID IN JANUARY.
>> MOST OF THE CITIES FOLLOW THE PCA MONTH TO MONTH VERSES WHAT WE TRY TO DO KEEP -- SCHEDULE IT OUT THROUGHOUT THE YEAR SO THEY -- THEY CHANGE IT EVERY MONTH BASED ON WHATEVER IT IS.
>> THEY DIDN'T HAVE A CHANGE IN JANUARY.
THAT'S NOT THE CASE FOR FLUCTUATING FOR MONTH TO MONTH. I WOULD LOVE TO KNOW.
>> WHAT ARE THEY DOING? >> IT'S JUST CURIOSITY.
>> THINK FLUCTUATION THERE. >> HAVE YOU EVER BEEN TO
STARK? >> I DON'T WANT TO GO, I
DON'T THINK. >> I I THERE'S TWO SPOTLIGHTS. PCA I THINK IT'S INTERESTING TOO. BECAUSE PCA HAS BEEN OFF; RIGHT? THEY'VE BEEN -- THEIR ESTIMATES HAVE BEEN OFF. BUT THEY'VE BEEN GOING BASED OFF OF THAT. OR THEY GO OFF THE MONTH
>> THEY GO OFF THE PREVIOUS. FOR US ALMOST TWO MONTHS BEHIND. WHATEVER THE BILL WAS IN FEBRUARY, WE PAY THE BILL AND THEN WHATEVER PCA WE TRY TO RECOVER IT THE FOLLOWING MONTH.
WE ARE FOLLOWING TWO MONTHS BEHIND.
[00:50:01]
THIS BILL COMPARISON FOR FEBRUARY WE'RE IN THE MIDDLE>> BUT ALSO THIS IF THEY ARE ADJUSTING ACCORDING TO PCA THEY WOULD BE ADJUSTING AS OF DECEMBER PCA NUMBER;
FEBRUARY'S NUMBER. >> THIS WOULD BE FOR
FEBRUARY'S NUMBER. >> THEY DON'T PRE-BILL FOR
>> WHATEVER WE DID IN SEPTEMBER IS WHAT WE WOULD
PROJECT. >> SOME ADJUSTMENT MAY NOT TAKE PLACE UNTIL MARCH. BECAUSE THEY ARE REVIEW DECEMBER BILLS AND SAYING OKAY WILL THE PCA AT 10.
WE HAVE TO MAKE THE ADJUSTMENT.
WE MAY BE A MONTH BEHIND SEEING THOSE ADJUSTMENTS.
>> THEN IF YOU FOLLOW THE MODEL THAT FPUA HAS BEEN TRYING TO MAINTAIN. TRYING TO KEEP IT SO THAT WE CAN MANAGE IT LATER IN THE YEAR, IT MAKES IT HARDER FOR THE BOARD TO DECIDE WHAT THE BEST COURSE OF ACTION IS.
BECAUSE YOU TRY TO LOOK AT OLD DATA, WHAT IS HAPPENING NOW. AND WHAT YOU WANT TO DO IN THE NEXT COUPLE OF MONTHS. MAKES IT HARD FOR YOU GUYS.
>> THAT'S WHY SOME OF THE CITIES WHEN THEY FOLLOW THE PCA MONTH TO MONTH, THEY JUST DO IT WHAT EVER THE PREVIOUS MONTH. THAT'S WHAT THEIR PCA IS.
>> SOMETIMES NOT ALL THE UTILITIES LOOK AT IT MONTH TO MONTH. SOMETIMES THEY ESTABLISH IT
FOR THE WHOLE YEAR. >> NOT EVERYONE FOLLOWS AS CLOSELY AND CHANGE IT MONTH TO MONTH.
>> THEY DON'T REACT MONTH TO MONTH.
THEY FOLLOW DIFFERENT MODEL. >> OKAY.
>> ANY OTHER QUESTIONS? >> I THINK THIS CURRENT MONTH AVERAGE BILL IT'S DEFINITELY VERY USEFUL FOR ME. I DON'T KNOW.
BECAUSE WE HAVE THE STABILIZATION FUND AND BECAUSE OUR STRATEGY IS TO KIND BUILDUP A LITTLE BIT OF CONSTITUTION BEFORE WE GO INTO THE SUMMER MONTHS.
I THINK THAT GIVES US MORE FOR SEATTLE OR MAYBE HINDSIGHT TO WORK WITH. WE'VE BUILDUP THAT CONSTITUTION. WE CAN AFFORD TO NOT HIT THE NUMBER DEAD ON. BECAUSE WE'VE BUILT UP A LITTLE BIT SO WE CAN GIVE OUR CUSTOMERS A REPRIEVE DURING THE MONTHS WHERE THE BILLS ARE THE HIGHEST.
WE'LL START TO SEE THE REAL BENEFITS AS WE SEE THE BILL COMPARISONS FOR MAY, JUNE, JULY, AND YOU LOOK AT THAT CURRENT MONTH AVERAGE AND IT WILL BE HIGHER THAN WHAT WE
LOOK AT FOR FEBRUARY. >> OUR COMPARABLE BILL WILL BE LOWER HOPEFULLY COMPARED TO THE OTHER AREAS.
RIGHT? >> DURING THE SUMMER, IT WOULD BE DIFFERENT. RIGHT.
>> IN THE PAST WE USUALLY IN THE MIDDLE OF THE GRAPH.
BECAUSE OF WHAT WE DO WHERE THE PCA; YOU'RE RIGHT.
>> HOPEFULLY WE'RE ABLE TO PROVIDE OUR CUSTOMERS A REALLY GOOD BENEFIT IN THAT WAY.
>> IN THAT WAY. YOU CAN SEE THAT WHILE WE HAVE THE PCA RELATIVELY HIGH RIGHT NOW MOST CUSTOMER PAY A HI, BILL BECAUSE OF THE LOW USAGE.
STARTING AT THE END OF THIS MONTH.
>> ANY OTHER COMMENTS? >> THANK YOU.
[6. February 2022 Financial Operating Results – For Information Only]
>> THANK YOU MICHELLE. THE NEXT ITEM INFORMATION PRESENTATION FOR THE FEBRUARY 2022 FINANCIAL OPERATING RESULTS. BARBARA MIKA WILL PRESENT
THIS ITEM. >> THANK YOU MR. CISNEROS, CHAIRMAN FEE AND BOARD MEMBERS.
I WILL PRESENT TO YOU TODAY THE FINANCIAL OPERATING RESULT FOR FEBRUARY AND THE FIVE MONTHS TO DATE FOR THIS FISCAL YEAR. SOME OF THE HIGHLIGHTS FOR FIVE MONTHS FOR FISCAL YEAR 2022, OUR YEAR TO DATE OPERATING INCOME OF 3,359,000 WAS 482,000 LOWER THAN THE SAME FIVE MONTHS FOR THE FISCAL YEAR 2021.
AND THAT WAS DUE TO TOTAL INCREASE IN TOTAL OPERATING EXPENSES AND THAT WOULD INCLUDE THE PURCHASES FOR
[00:55:02]
RESALE THAT WE'VE EXPERIENCED HIGHER PURCHASE RESALE THIS YEAR. EXPENSES INCREASED MORE THAN THE REVENUES HAVE. AFTER THE ADJUSTMENT FOR DISTRIBUTION TO THE CITY OUR FEBRUARY YEAR TO DATE INCREASE IN KNELT POSITION WAS 964,000.OUR FEBRUARY OPERATING REVENUES WERE LOWER THIS YEAR THAN THEY WERE FOR THE SAME MONTH LAST YEAR BY 293,000. AT THE END OF JANUARY, OF LAST YEAR, YOU MAY RECALL WE EXPERIENCED A TIMING ISSUE IN THE BILL, BILLING AND THE BILLING FOR JANUARY TO BE PICKED UP IN FEBRUARY. YEAR TO DATE NUMBERS WILL BE LEVELIZED. IT'S NO LONGER AN ISSUE.
>> OUR ELECTRIC OPERATING REVENUE LESS THE COST OF POWER AND COMPARISON TO CONSUMPTION FOR FISCAL YEAR '22 REVENUES LESS THAT COST POWER COST, IS UP FROM LAST YEAR BY 1%. OVERALL UP 3%.
AND THE CONSUMPTION WAS GREATER BY 3% OVER THE TWO YEARS. DIPPED A LITTLE BIT THIS YEAR FROM LAST YEAR. IT'S UP SINCE 2020.
THE COST OF PURCHASE POWER AS I MENTIONED INCREASED 4.2 MILLION DOLLARS ON AVERAGE. IT'S AN 18% INCREASE COMPARED TO FIRST FIRE MONTHS OF LAST YEAR.
OUR WATER OPERATING REVENUE IN COMPARISON TO COME SUNNION FOR FISCAL YEAR 22 WATER OPERATING IS UP 2% FROM FISCAL YEAR '21 AND COMBINED 10% SINCE 2020.
CONSUMPTION SLIGHTLY AGAIN SLIGHTLY LOWER IN FISCAL YEAR '22 AS WELL AS UP 7% FROM THE PREVIOUS YEAR.
SINCE 2020. FOR WASTEWATER ORIFICECAL YEAR OPERATING REVENUES WERE ON PAR WITH 2021.
WE COMBINEDOVER ALL TWO-YEAR INCREASE OF 454,000 OR 8% OVER 2020. OUR GALLONS BILL DOWN SLIGHTLY AGAIN BUT OUR KIND OF MOVES ALONG WITH THE WATER CONSUMPTION. WE'RE UP 6% FOR CONSUMPTION.
FOR NATURAL GAS, OPERATING REVENUE ADJUSTED FOR THE COST OF GAS IN COMPARISON FISCAL YEAR 2022 OPERATING REVENUE LESS GAS COST ARE STILL ON STEADY CLIMB FOR TWO YEARS. REVENUES WERE UP 4% OVER 2021 AND COMBINED 7% FOR THE TWO TO FOR THE TWO-YEAR PERIOD. CONSUMPTION FOR THE TWO-YEAR PERIOD WAS UP OVER 11%. OUR GAS CONTRACT SALES HAVE INCREASED 18% OVER THE LAST YEAR.
AND THAT WAS DUE TO NEW CONTRACT CUSTOMER THAT CAME ON AT THE END OF LAST FISCAL YEAR.
OUR COST OF GAS FOR FIVE MONTHS HAS INCREASED 542,000 OVER LAST YEAR THIS IS 68% INCREASE OVER LAST YEAR'S COST. OUR DEBT SERVICE COVERAGE IS RATIO OF THE 12 MONTHS AVERAGE OF OUR NET AVAILABLE INCOME TO CURRENT DEBT SERVICE FOR THE 12 MONTHS ENDING FEBRUARY OF 202 DEBT SERVICE WAS 3.46 TIME AT THE END OF FEBRUARY. RAINFALL YOU FOR FISCAL YEAR ENDED SEPTEMBER OF 2021. 3.54.
THAT'S THE OPERATING RESULTS FROM FEBRUARY.
IF YOU HAVE ANY QUESTIONS, THIS IS AN INFORMATION ONLY ITEM. I WILL BE HAPPY TO ADDRESS
QUESTIONS. >> ANY QUESTIONS OF THE
BOARD MEMBERS? >> MR. CHAIRMAN.
>> YES, SIR. >> IT LOOKS LIKE WE LOST ALMOST 2000 ELECTRIC CUSTOMERS.
A HANDFUL OF GAS AND 1,000 OF WATER AND WASTEWATER.
>> IT'S NOT CUSTOMERS. IT'S CONSUMPTION.
IT'S MEGAWAT HOURS. IT'S CONSUMPTION OF GALLONS AND IT'S CONSUMPTION. NOT CUSTOMERS.
[01:00:01]
CUSTOMERS WERE THERE. IT'S -- WITH HAVE LESS CUSTOMERS. BUT THE REVENUE WAS HIGHERYEAR TO DATE. >> THEY ARE GOING DOWN.
>> CUMULATIVELY THEY ARE GOING DOWN.
FOR THIS YEAR COMPARED LAST YEAR.
COMPARED THE PREVIOUS YEAR THAT'S -- THEY ARE ALL UP.
>> IF WE GO BACK TO ELECTRIC, WE HAVE OUR CONSUMPTION FOR 2022 FOR ELECTRIC.
IN MEGAWAT HOURS WAS 218 AND A HALF MEGAWAT HOURS.
1,000 KILOWATT HOURS. IT'S THE CONSUMPTION.- NOT THE NUMBER OF CUSTOMERS. .
>> THAT'S GOOD. FOR SOME REASON I THOUGHT
THAT MEANT CUSTOMERS. >> HOW MUCH ELECTRIC AND WATER THEY USE. HOW MUCH WASTEWATER WE
PROCESS. >> ANY OTHER QUESTIONS?
[7. Disposition of Property Located near 322 North 2nd Street (Kings Landing) – For Information Only]
>> THANK YOU. >> THANK YOU BARBARA.
>> THE NEXT ITEM INFORMATION ON ONLY DISCUSSION.
IT'S FOR THE DISPOSITION OF THE PROPERTY LOCATED NEAR 322 NORTH SECOND STREET. ALSO REFERRED TO AS PARCELS WEST OF SECOND STREET FOR THE -- RELATED TO KINGS LANDING PROJECT. AS THE BOARD MAY RECALL ON MARCH 1ST. THE BOARD APPROVED RESOLUTION UA2022-04 AUTHORITYING THE CITY OF FT. PIERCE TO EXECUTE A DEED ON BEHALF OF FPUA TO TRANSFER THE 3 PARCELS TO THE CITY FOR THE KINGS LANDING PROJECT. TODAY I WANT TO CLOSE A LOOP AS IT RELATES TO THE BOND COVENANT.
THE REQUIREMENT RELATED TO THIS DISPOSITION.
FIRST THE PROPERTY MUST BE VALUED AT LESS THAN 10% OF THE VALUE OF FIXED ASSETS FROM THE LAST AUDIT.
FOR THE MOST RECENT ANNUAL AUDIT.
THE NEXT STEP FOR THE PROPERTIES TO BE APPRAISED O MARCH 13TH THE PROPERTIES WERE APPRAISED BY FULLER, ARMFIELD, WAGNER, APPRAISAL AND RESEARCH INC.
AND THE PROPERTIES WERE APPRAISED AT 290,000.
THE NEXT STEP WAS TO OBTAIN AN ENGINEERING CERTIFICATE.
WHICH WAS NEWBURY REGARDING COME PLAINS WITH THIS DISPOSITION. LAST REQUIRES CERTIFICATE TO AUTHORITY THE DISPOSITION AS THE PROPERTY THAT DID NOT HAVE ANY FUTURE. IF THE CITY RECEIVES SALE PROCEEDS THEY MUST BE DEPOSITED RENEWAL REPLACEMENT. USED FOR PURPOSE OF PAYING FOR THE COST OF EXTENSION OR REPLACEMENT OF THE CAPITAL ASSETS OF THE SYSTEM. WE WERE ABLE TO WORK OUT AND WILL REVISE THE SMART CITY DOWNTOWN INITIATIVE MEMORANDUM OF UNDERSTANDING. AND WHAT WE WILL DO IS INCLUDE THE APPRAISAL VALUE TO FACILITY THE FIBER IN DOWNTOWN WHICH WITHIN IS PROXIMITY OF THE PARCELS.
IT'S A GOOD TEAM EFFORT. >> THIS DOESN'T SET A PRESS AGAINST. THIS IS SINGLE EVENT.
ALL OF ITEM WE COMPLETED. I'M HAPPY TO ANSWER ANY
>> ANY QUESTIONS OF THE BOARD MEMBERS?
[J. DIRECTOR]
>> DOESN'T SEEM LIKE WE HAVE ANY QUESTIONS ON THAT.
DO WE HAVE ANYTHING MORE FOR THE DIRECTOR'S REPORT?
>> YES, SIR. I HAVE A COUPLE OF ITEMS. HAPPY TO REPORT FPU LOBBY AT 206 SOUTH SIXTH STREET HAS RETOPPED PUBLIC. WE'RE HAPPY TO WELCOME OUR CUSTOMERS. IT FEELS MORE NORMAL.
IF THAT MAKES SENSE. AT THE JUNE 7TH BOARD MEETING, WE WILL HAVE A PRESENTATION FROM OUR JOINT PURCHASE GAS PROVIDER FLORIDA GAS UTILITY.
TOM JEFFREY AND KATIE HALL WILL GIVEN A OVERVIEW OF THE GAS MARKET WHICH WILL BE HELPFUL.
NOT ONLY FOR STAFF BUT FOR THE BOARD.
WHAT THAT MEANS TO FPUA AND THE OTHER MEMBERS.
IT'S FOR PURCHASED GAS. FROM WHAT I CAN RECALL.
I DON'T BELIEF THE BOARD MEMBERS HAVE MET THE FGU LEADERSHIP TEAM. I DON'T KNOW MAYOR IF YOU HAVE MET THEM. IT SHOULD BE VERY, VERY INFORMATIVE AND HELPFUL. AS WE DISCUSS EARLIER TODAY THE GAS MARKET HAS BEEN EXTREMELY VOLATILE.
THE GAS OVER $7 A DECOTHERM. I WILL BE ATTENDING THE BOARD MEETING THIS WEEK ON THURSDAY.
I EXPECT TO GET MORE INFORMATION ON HOW THAT IMPACTS FPUA MOVING FORWARD. AND HOPEFULLY SOME ADDITIONAL NEWS ON WHAT THE GAS MARKET IS DOING TO HELP REMEDY SOME OF THE STORAGE THAT WE HAVE.
SOME OF THE STORAGE ISSUES AND EXPORT ISSUE THAT WE'RE
[01:05:01]
ASKING. AGAIN AS FRED MENTIONED THERE'S A LOT OF GASES BEING EXPORTED WHICH IS DRIVING THE GAS PRICES RIGHT NOW. MR. HUTCHINSON AND I WILL BE ON THE AGENDA FOR MAY 2ND MEETING TO PROVIDE UPDATE.WE WERE AT THE CITY COMMISSION LAST NIGHT.
AND I THINK IT WAS CLEAR THAT WE NEED TO PROVIDE ADDITIONAL INFORMATION. WE'LL TRY TO FOCUS ON THE PATH WE TOOK AND OPTIONS THAT WE'VE HAD AND HAVE ALONG THE WAY. OUR ATTENTION TO PROVIDE ANSWER AS MANY FOR FPUA BOARD TO MAKE SURE THAT WE'RE MAKING THE BEST POSSIBLE DICKS FOR THE RATE PAYERS. UTILITY RATES ARE IMPORTANT.
BUT NOT THE ONLY CONSIDERATION.
HOWEVER I BELIEF THE STAFF HAS PROPOSED ECONOMICAL PATH FOR THE RELOCATION OF THE WASTEWATER PLANT.
WE'LL ALSO MAKE THE PRESENTATION TO FPUA BOARD ON MAY 3RD BY THE BE B HEARING FOR THE RATE SUFFICIENCY RECOMMENDATION. WE'LL SHARE THAT WITH THE BOARD PRIOR TO THAT MEETING SO THAT IF YOU HAVE ANY QUESTIONS, WE WILL BE ABLE TO ANSWER THEM PRIOR TO THE MEETING AND ADD THAT TO THE PRESENTATION.
BY THE END OF THE WEEK. I EXPECT TO SEND THE DRAFT HOW THE RATE SUFFICIENCY RECOMMENDATION.
THOUSAND THAT WILL EFFECT OUR CUSTOMERS AND THEIR RESPECTY UTILITY BILLS. I LOOK FOR ADDITIONAL INSIGHT FROM THE BOARD HOW YOU FEEL OUT HOW -- WHAT INFORMATION COULD BE HELPFUL SO THAT IF BOARD AND THE COMMISSION AND ALSO GET FEEDBACK FROM THE COMMISSION ON HOW WE CAN COMMUNICATE THIS TO OUR COMMUNITY.
I SENT A MEMO TO COMMISSION. WE'RE TRYING TO PUT THAT INTO POWERPOINT PRESENTATION SO IT'S EASIER TO DIGEST.
THE FOCUS IS COMMUNICATE EFFECTIVELY.
>> NEXT WE WORK ON CELEBRATE EVENT FOR 50TH ANNIVERSARY.
WE LOOK AT STANDING ROOM EVENT.
THE IDEA IS PROMOTE THE SHUFFLE.
TO ROTATE ACROSS THE ROOM AND MEETING DIFFERENT FOLKS.
IT WILL INCLUDE EMPLOYEES. CURRENT AND FORMER BOARD MEMBERS. CITY COMMISSIONERS, FORMER DIRECTOR AND OTHER COMMUNITY LEADERS TO HELP US CELEBRATE THE 50TH. BECAUSE THE NEXT FEW MONTHS ARE PRETTY BOOKED, THIS EVENT WILL LIKELY HAPPEN IN THE MONTH OF AUGUST. BUT WE WILL MAKE SURE WE GET THE DETAILS TO YOU AS SOON AS WE NAIL THEM DOWN.
THE UTILITY ADVISORY COMMITTEE SCHEDULED TO MEET ON MAY 5TH. THIS WAS TRICKY.
NINE PEOPLE WERE TRYING TO COORDINATE A DATE THAT WOULD WORK. MAY 5TH SEEMS TO BE THE DATE THAT WORKS THE BEST. WE WILL START WITH LUNCH AND QUICK OVERVIEW OF INTRODUCTION TO FPUA AND REVIEW THE RESOLUTION ON THE RESPONSIBILITIES AND THEN WE'LL HEAD OFF TO TOUR OF FPUA FACILITIES AND WHICH IS THE BEST WAY FOR US SHOW CASE OUR LOCAL HOMETOWN UTILITY AND OUR EMPLOYEES. IT'S OUR FAVORITE WAY TO SHOW THE DAILY OPERATIONS IT TAKES TO PROVIDE ECONOMICAL RELIABLE AND FRIENDLY SERVICE.
I WAIT ON ONE LAST PIECE. THAT WOULD BE TO USE THE CITY TROLLEY. I'VE GOT TO CALL OUT TO NICK. SO THAT THE GROUP CAN TRAVEL TOGETHER SO WE CAN MAKE IT VERY COHESIVE AND COORDINATED VERY WELL. AND THEIR FIRST OFFICIAL MEETING WOULD LIKELY BE MAY 25TH OR SOMETIME ATTEND OF MAY. THAT WILL BE SUBJECT TO CHANGE AFTER THE BUS RITE ARRIVED.
JULY 12TH THROUGH 14TH. THEY RESERVED ROOM FOR BOARD MEMBERS. IF YOU ARE NOT ABLE TO ATTEND LET ME KNOW. WE WILL MAKE SURE TO CANCEL IT OR GIVE IT TO ONE OF THE OTHER EMPLOYEES INSIDE THE ORGANIZATION TO ONE OF THE UP-AND-COMING GUYS TO GET THEM GROOMED. THAT'S ALL I HAVE FOR YOU,
[L. COMMENTS FROM BOARD MEMBERS:]
>> ATTORNEY? >> NOTHING TO REPORT ON AT THIS TIME. I WAS WONDERING IF WE WANT AT THE CITY COMMISSION MEETING TO EXPLAIN HOW SOMEONE CAN MOVE THE PLAN. IS THAT RHETORICAL OR DO YOU
REALLY WANT AN ANSWER? >> DO YOU REALLY HAVE AN
ANSWER? >> THAT'S INTERESTING TO
HEAR. >> YOU WERE TALKING ABOUT
THE MEETING LAST NIGHT? >> I DIDN'T HEAR IT.
I THINK WHAT THEY SAID IS THAT WITH RATES WOULD BE INCREASED WITH THEIR WAY BUT IT WOULD BE LATER.
LATER TIME AS OPPOSED TO UP FRONT.
I THINK THAT'S WHAT THEY SAID.
IF MR. CISNEROS. IS THAT RIGHT?
>> YES. THAT'S WHAT I UNDERSTAND
[01:10:02]
AFTER COMPLETION OF THE CONSTRUCTION OF PROJECT.>> THEY WOULD BE RECEPTACLE TO THAT.
THEY WANT TO MAKE SURE THE COLLECTION IS COLLECTED.
>> FPUA CONTINUING THE PATH TO GET MUNICIPAL BONDS.
I'M NOT SURE WHAT YOU KNOW THE BYRD BIDS WOULD PURSUIT. WE WOULD STILL FINANCE OURSELVES. FROM THE MEMO TYPICALLY 1-3%
LESS THAN PRIVATE BONDS. >> I THINK ANYONE UNDERWRITING US WOULD DEFINITELY BE -- WOULD LOOK AT THAT SUSPECT IF WE'RE GOING TO RAISE OUR RATES AFTER EVERYTHING IS COMPLETED.
THAT'S WHAT? FOUR YEARS DOWN THE LINE.
>> RIGHT. THE EXISTING -- I THINK WHAT YOU TALK ABOUT THE EXISTING BOND AND ANY FUTURE BOND WE TAKE FOR OTHER STUFF OUTSIDE OF THE WASTEWATER TREATMENT PLANT;. RIGHT.
>> WE WOULD IF WE BORROW MONEY IN THE FUTURE FOR ANYTHING OUTSIDE OF THE WASTEWATER PLANT RELOCATION, THEY WOULD CONSIDER THEMSELVES SECOND TIER SO THAT THE RISK WOULD BE HIGHER.
ANYTHING WE DO IN THE FUTURE, WE WOULD -- WE WOULD GET A HIGHER RISK AND ULTIMATELY RESULT IN HIGHER INTEREST RATES FOR BOND -- FUTURE BONDS THAT WE
GET. >> THE FINANCERS OF THE BONDS TO REMOVE THE WASTEWATER PLANT THEY HAVE NO OBJECTIONS TO LEAVING THE RATES UNCHANGED?
>> THAT TO ME IS -- >> I SEE YOUR QUESTION.
WE WOULDN'T BE ABLE -- MOST LIKELY WE WOULD GOT ABLE TO BORROW THE MONEY WITHOUT RATE CHANGES IN THE BOND COVENANT. IF WE WANT TO BORROW MONEY WE HAVE TO SHOW RATE SUFFICIENCY.
>> I DON'T SEE HOW YOU CANNOT RAISE RATES BEFORE
YOU START THE PROJECT. >> RIGHT.
>> MR. CHAIR? >> I THINK THIS IS WELL WORTH HAVING THE CONVERSATION NOW.
WE HAVE A PRETTY AGGRESSIVE TIME LINE ON MOVING FORWARD WITH BUILDING THE WATER RECLAMATION FACILITY.
I GOT A CHANCE TO LISTEN TO CITY COMMISSION COMMENTS YESTERDAY. AND IT SEEMS LIKE YOU HAVE AT LEAST -- AND I HAD A CONVERSATION WITH COMMISSIONER C JOHNSON YESTERDAY.
FAIRLY LENGTHY. SEEMS LIKE THERE'S AT LEAST SOME EFFORT OR THOUGHTS TO KIND OF SLOWDOWN ON WHAT WE'RE DOING NOW AS FAR AS MOVING FORWARD WITH THE CURRENT DESIGN BUILD FORM THAT WE AWARDED A CONTRACT TO. AND CONSIDER AN OPTION FOR PUBLIC PRIVATE PARTNERSHIP. YOU KNOW, I MADE THE COMMENT YESTERDAY WHEN I WAS ON THE PHONE WITH COMMISSIONER JOHNSON, THAT I FEEL LIKE THAT MAY BE JUST OPENING A CAN OF WORMS. RIGHT? THEY HAD A CHANCE TO BID ON THE DESIGN BUILD RFP WHEN WE
PUT IT OUT; CORRECT? >> IT WAS OPEN TO THE PUBLIC; YES, SIR ZBROOCHLT . IF THEY WANTED TO PROVIDE JUST DESIGN BUILD SERVICES THEY HAD AN OPPORTUNITY TO PUT THEIR PROPOSAL IN ON ALL OF THAT.
AND DID WE RECEIVE ANYTHING? >> WE DIDN'T RECEIVE ANY
BIDS, NO, SIR. >> WHAT WHAT DO THEY WANT TO DO FOR US IF THEY DON'T WANT TO DESIGN AND BUILD IT?
>> THEY WOULD DESIGN, BUILD AND FINANCE AND OPERATE THE PLANT. AND THAT'S THEIR BUSINESS
>> AND IF WE GET OUR FINANCING THROUGH THEM, WILL
WE SAVE MONEY? >> IN MY OPINION BASED ON OUR DISCUSSIONS WITH THE FINANCIAL ADVISOR, WE BORROW MONEY WE WOULD GET THE LOWEST INTEREST RATE THROUGH MUNICIPAL BONDS. BECAUSE WE HAVE A VERY GOOD BOND PORTFOLIO. WE HAVE LOW DEBT.
WE HAVE VERY GOOD RATING WITH BOTH AGENCIES.
AN A AND A-PLUS. THE LOWEST INTEREST RATE WE BELIEVE THAT WE COULD GET IN THE MARKET.
AND ANSWER TO THAT, IT WOULD BE LOOKING FOR LET'S SAY THAT FOR WHATEVER REASON IT WORKED OUT BETTER WITH THEM, AND WE WENT THROUGH THEM TO GET OUR FINANCING BECAUSE THAT'S REALLY THE ONLY OFFER THEY ARE PRESENTING TO US RIGHT. WE WANT TO TAKE CARE OF EVERYTHING. THE FINANCING, THE OPERATION AND MAINTENANCE, AND THE DESIGN BILL.
>> YES. >> IF THEIR COST WAS 1% OR THEIR FINANCING WAS 1 OR 2% HIGHER THAN FINANCING WE WOULD GET, THEN IT WOULD BE INTERESTED IN TO KNOW HOW
[01:15:03]
MUCH ADDITIONAL COST IS THAT TO US.>> AND THEN THE ONLY OTHER PIECE THAT LEAVES THE IS OPERATION AND MAINTENANCE. AND YOU KNOW, I DON'T KNOW IN STAFF'S OPINION IS THERE GOING TO BE A HUGE ADVANTAGE TO USING A GLOBAL FIRM LIKE THAT FOR OPERATION AND MAINTENANCE VERSES OUR OWN STAFF?
>> FROM WHAT I UNDERSTAND THERE'S A LOWER OPERATION AND MAINTENANCE COST RELATED SPECIFICALLY TO PERSONAL.
MOST OF THOSE ARE RELATED TO THE BENEFITS THAT EMPLOYEES WOULD GET VERSES WHAT THEY WOULD PAY THEIR EMPLOYEES.
AND I DEFINITELY -- WHEN WE HAD THE WORKSHOP ON MOVING THE PLANT AND WE LOOKED AT THE RATE INCREASES, I WAS NOT EXCITED TO SEE THOSE RATE INCREASES WHATSOEVER.
AND ONE OF MY FIRST AND FOREMOST PRIORITIES AS THE BOARD MEMBER IS TO TRY TO GIVE THE BEST SERVICE TO OUR CUSTOMERS AT THE BEST RATE. UNFORTUNATELY IN THE MONTH THAT'S EYE BEEN ON THE BOARD WE'VE DONE ALMOST NOTHING BUT RAISE RATES WHICH IS NOT WHAT I WANT TO DO.
BUT GIVEN THE CIRCUMSTANCES, THAT WE'RE CURRENTLY, IN I DIDN'T SEE ANY WAY AROUND THAT.
IN THIS SITUATION, I DEFINITELY WANT TO EXPLORE ANY OTHER OPTION THAT COULD POTENTIALLY OFFER OUR CUSTOMERS THE BEST RATES. I DON'T SEE ANY ANGLE AND MAYBE JUST BECAUSE I DON'T HAVE ENOUGH INFORMATION I DON'T SEE HOW THEY COULD HELP US DO THAT.
OTHER THAN KICKING THE CAN DOWN THE ROAD AND PUTTING OFF RATE INCREASES UNTIL SOMETIME IN THE FUTURE.
>> I DID HAD A CHANCE TO SIT WITH EQUALIA AND WE DISCUSSED A FEW THINGS TOO. SOME OF THE THINGS THAT, THAT WAS DISCUSSED ABOUT NOT HAVING TO RAISE RATES OR MAKE FIRST PAYMENT FOR UNTIL THE PLANS WAS COMPLETED.
WHICH CONCERNED ME BECAUSE RATES ARE LOW RIGHT NOW.
WE DON'T KNOW WHAT THEY WILL BE IN TWO YEARS.
SHE WAS DISCUSSING A POSSIBLE AMOUNT OF LIKE 51/2 PERCENT IF THEY WERE TO HOLD THE LOAN FOR IT.
WHICH WE'RE LOOKING AT SOMEWHERE AROUND 4.
AND THAT IS CURRENT MARKET RIGHT.
I DON'T KNOW OR WHAT THAT WOULD LOOK LIKE.
SHE DID ALSO YOU KNOW DISCUSS MAYBE NOT WANTING TO JUST BE THE FINANCIER. I DON'T KNOW HOW THEY WOULD MAKE MONEY IN THAT. I HAVE REQUESTED SOME INFORMATION FROM HER REGARDING THAT.
THAT I WOULD HOPE TO SHARE WITH YOU KNOW EVERYBODY HERE. AND WE ALSO SPOKE I THINK IT'S IMPORTANT -- MY MAIN THING, TOO NOT ONLY ARE RATE PAYERS. WE OWE IT TO THE COMMUNITY, OBVIOUSLY. BUT FOR ALL OF TO US BE MAKING THIS DECISION RIGHT DECISION TOGETHER.THE- -- WE FEEL LIKE WE'RE MOVING THIS AS ONE.
I FEEL AS THOUGH IF WE HAVE A VERY COHESIVE MINDSET IT WILL BE EASY TO STAND UP FOR WHAT WAS RIGHT AND KNOW THAT WE HAD TO DO WHATEVER -- IF THE RATES WERE RIGHT OR THIS IS WHY WE HAD TO DO THAT AND WE'RE ALL KNOWLEDGEABLE ABOUT ALL OF THOSE ITEMS. THAT THERE WILL BE NO WAY FOR SOMEONE TO QUESTION WHY WE DID THAT; RIGHT? I THINK IT'S IMPORTANT; JAVIER SAID HE WAS PUTTING TOGETHER INFORMATION REGARDING THAT.
I HOPE IT WILL BE EXTREMELY CLEAR.
AND THAT WE HAVE -- WE ALL HAVE OPEN LINES OF COMMUNICATION BETWEEN -- OBVIOUSLY WHO WE CAN HAVE OPEN LINES OF COMMUNICATION WITH AND WITH OUR STAFF TO MAKE SURE THAT WE'RE DISCUSSING ANYTHING THAT COMES UP. SO WE CAN COMMUNICATE CLEARLY, NIP IT IN THE BUTT AND MAKE SURE THAT EVERYBODY KNOWS WE'RE DOING THIS FOR THE BETTERMENT OF OUR COMMUNITY AND THEM. THERE'S SOME THINGS.
SHE SAID I HAVE NO IDEA HOW THEY COULD MAKE MONEY DOING IT. BUT HOPEFULLY IF SHE HAS A WAY, SHE WILL SEND IT AND WE CAN SHARE IT.
AND -- >> SO ME IT'S OBVIOUS THEY DON'T -- THEY CAN'T MAKE THE MONEY ON DESIGN BUILD BY ITSELF. OR THEY WOULD HAVE PUT A BID IN ON IT. IT'S THE PRODUCT.
[01:20:03]
IT'S THEIR REFINED CLAIMING PROCESS WHERE THEY MAKE THEIR MONEY. THEY WILL BUILD A PLANT THAT USES THEIR SPECIFIC PRODUCT TO REFINE IT AND THEY WILL OPERATE IT FOR THE TERM OF 20 YEARS.30. THE FIRST PRESENTATION I THINK WAS 20. AT THE END OF 30 YEARS THEY STEP OFF AND HAND YOU THE PLANT.
GUESS WHAT? IT'S MADE FOR THEIR PRODUCT.
>> RIGHT. >> YOU DON'T KNOW WHAT -- THAT MIGHT BE A VERY EXPENSIVE PROCESS FOR THE CITY TO KEEP UP GOING FORWARD.
YOU MIGHT BE STUCK WITH A PLANT THAT'S NOT USEFUL TO US. NOT BASED ON THE DEMOGRAPHICS OR THE TAX BASE.
NOT BASED ON OUR CURRENT RATES.
>> I JUST WANT TO MENTION THAT WE HAVEN'T DISCUSSED THIS SPECIFICALLY WITH THE BOARD.
BUT WE DID SELECT AQUA-NORITA.
IT WAS VERY SPECIFIC PROPRIETARY.
THE TECHNOLOGY IS PROPRIETARY.
THAT'S WHO WE ENDED UP SELECTING OUT OF FOUR OR FIVE OPTIONS. WE DID PICK THEM BECAUSE OF LOWER COST AND EFFICIENCY OF OPERATING THE PLANT.
THAT MAY BE INTERCHANGEABLE IF EQUALIA CAME IN.
JUST TO COMPARE APPLES TO APPLE IS.
>> SIT NOT? >> ANYONE CAN BUILD -- CAN BUY THAT TECHNOLOGY AND GET IT.
>> I DON'T THINK IT'S SPECIFIC TO UQUALIA.
ANYONE CAN SELECT THAT TECHNOLOGY AND BUILD IT
>> THAT BEGS THE QUESTION IF THEY DON'T MAKE MONEY OFF THE DESIGN BILL. WHERE WILL THEY MAKE THE
MONEY? >> I CAN'T ANSWER THAT.
I DON'T THINK THEY CLEARLY GAVE US THAT INFORMATION THE FIRST TIME WE ASKED FOR THAT.
WE DID THE WORKSHOP. >> WE ALL SCRATCHED OUR HEADS AND SAID WAIT A MINUTE.
WHERE ARE YOU MAKING YOUR MONEY? WHERE ARE YOU GETTING A COST OF 10% ON TOP OF IT.
WHAT IS IT? >> WHAT THEY GAY US -- GAVE US AT THE PRESENTATION HAD SOME SERIOUS HOLES.
BARE. >> YOU GO TO THIRD PARTY.
YOU LOSE CONTROL. UTILITY SERVICE WILL TAKE MUCH BETTER CARE OF THE CUSTOMERS IF THEY CONTROL THAT PLANT. THE THIRD PARTY IS NOT GOING TO DO THAT. LET'S PROPOSE THEIR OVERHEAD GOES UP. THEY WILL TELL US TO RAISE RATES. WE HAVE TO RAISE RATES BECAUSE WE HAVE TO PAY EQUALIA.
WHO WILL TAKE THE FIRE? THE CITY COMMISSION.
THEY CAN'T DO ANYTHING. YOU CAN'T FIRE EQUALIA FOR 30 YEARS. WE WILL BE A PUPPET TO THEM.
IN THE GRAND SCHEME OF THINGS.
>> IF I COULD. I JUST MET WITH THEM THIS AFTERNOON. THEY DID SAY THAT THEY -- THAT WE HAD CHOSEN THE SAME PROCESS THAT THEY AND -- HER POINT WAS THAT THEY CAN -- THAT ARE EXPERIENCED WITH THAT PROCESS.
AND, YES, THEY WOULD LIKE TO DO THE DESIGN BUILD AND OPERATE AND BUT SHE TOLD ME THAT THEY WOULD BE HAPPY TO BE PART OF THE PROJECT THAT THEY DIDN'T HAVE TO BE THE WHOLE PROJECT. AND I SAID THAT WAS NOT MY UNDERSTANDING. I THOUGHT THAT EQUALIA WANTED TO DO THE WHOLE THING OR NOTHING.
THAT WAS NEWS TO ME. AND SHE WANTED TO -- I ASKED HER. I DON'T UNDERSTAND HOW YOU MAKE MONEY. IF YOU'RE -- AND SHE -- BECAUSE THEY DO THIS ALL OVER THE WORLD THEY HAVE THESE PLANTS ALL OVER THE WORLD, THEY THEY HAVE ECONOMIES OF SCALE. I ALSO THINK.
I HIT HER WITH WHAT MR. KOBLEGARD SAID.
YOU KNOW THIS IS A HOMETOWN UTILITY.
WE DON'T WANT TO LOSE CONTROL OF SOMETHING THAT'S PRECIOUS. OUR WATER AND WASTEWATER IS OUR FUTURE. WE USED TO ONLY THINK ABOUT ELECTRIC. THIS IS LIKE ONE OF OUR MOST IMPORTANT UTILITIES. AND SO WHETHER YOU BELIEF IT OR NOT AND ALL OF THAT HAVE TO BE IN CONTRACT.
WE ALL HAVE TO BE ASSURED OF A LOT OF THINGS LIKE YOU
[01:25:02]
SAID THEY CAN'T JUST TURN AROUND AND RAISE RATES.I MEAN ALL OF THAT -- WE WOULD HAVE TO BE PROTECTED.
WE DON'T KNOW ENOUGH ABOUT WE DON'T KNOW ENOUGH ABOUT -- WE ONLY KNOW WHAT THEY PROMISE AND WHAT THEY SAY THEY CAN DO. BUT WHAT THE CITY COMMISSION I THOUGHT WANTED LAST NIGHT WAS TO MAKE SURE THAT WE EXPLORED EVERY OF. BECAUSE TO BE ABLE TO SAY WHAT MISS GIBBONS SAID. WE DONE OUR RESEARCH.
WE'VE DONE DUE DILIGENCE. THIS IS WE BELIEVE THIS IS THE WAY TO GO. WE PICKED THE RIGHT AVENUE.
WHATEVER AVENUE THAT IS. WE DON'T KNOW.
WE'RE NOT IN THAT -- WE'RE NOT IN THAT PHASE WHERE YOU -- YOU ARE PUTTING REDUCING EVERYTHING TO CONTRACT. SAYING NO, NO, NO, I WILL NOT PROMISE THAT. BUT I THINK IF -- WHAT WE HAVE TO REALIZE AS THE BOARD IS IF WE'RE GOING TO RAISE RATES, TO MOVE THE WASTEWATER TREATMENT PLANT AND WE'VE ALREADY RAISED THE ELECTRIC RATES AND NOW WE RAISED THE GAS RATES. WE HAVE AN ECONOMIC CLIMATE OUT THERE THAT'S ALREADY KIND OF WORKING AGAINST US.
IF WE WILL DO THIS; THE CITY COMMISSION HAS TO BE CONVINCED THAT WE DONE OUR DUE DILIGENCE.
I DON'T KNOW HOW WE DO THAT. BUT I THINK MR. CISNEROS, WE NEED MORE INFORMATION ABOUT WHAT EQUALIA CAN DO AND WHAT FPUA CAN DO. I ALSO ASKED HER ABOUT LOSING CONTROL. WE -- THIS -- WE WANT -- WE WANT LOCAL PEOPLE WORKING AT THIS UTILITY.
THAT'S OUR SLOGAN. >> EVERYBODY KEEPS THEIR JOB. A LOT OF COMPANIES PROMISE THAT. I KNOW THAT.
WE'VE GOT TO HAVE SOMETHING MAYBE REDUCED TO WRITING.
TO SAY THESE ARE THE PLUSES AND THE MINUSES.
>> I DID HAVE THE SAME UNDERSTANDING FROM THE CITY COMMISSION MEETING LAST NIGHT.
THAT'S SOMETHING THAT MR. HUTCHINSON AND I TALKED ABOUT PREPARING FOR THE BOARD AND THE CITY COMMISSION. SO WE CAN LOOK AT ALL THE OPTIONS WE'VE PICKED. I BELIEVE WE LOOKED AT THE CHART TODAY. YOU KNOW THEY MENTION PATH A AND PATH B. WE HAD THREE PATHS.
PATH, A, B AND C. WE CAN DEFINITELY PREPARE THAT AND MAKE THAT MUCH MORE CLEAR FOR YOU, FOR THE BOARD AND THE CITY COMMISSION. SO YOU CAN SEE THE OPTIONS THAT WE LOOKED AT FOR BOTH TREATMENT, FINANCE, THE WHOLE THING. I THINK THAT WAS LOUD AND
CLEAR. >> I THINK THE REPRESENTATIVE WANTS TO MEET WITH THE BOARD.
IF YOU DIDN'T HEAR THE PRESENTATION AND YOU ARE INCLINED TO DO IT. I WOULDN'T SHUT IT OUT.
I WOULDN'T BE AFRAID OF IT. I WOULD AT LEAST LISTEN TO WHAT THEY HAVE TO SAY. KNOWING THERE'S NO GUARANTEE. BECAUSE IT'S NOT GUARANTEED AS MR. KOBLEGARD WILL TELL YOU UNTIL IT'S REDUCED TO WRITING. WE WILL DO THIS WITHIN SUCH
AND SUCH A TIME. >> I WOULD LIKE TO FOLLOW UP TO YOUR PERCENTAGES. AT THE LAST CONVERSATION I HAD WITH THE FINANCIAL ADVISOR, WE WERE LOOKING AT 3% FOR MUNICIPAL BONDS. ANY POTENTIAL -- IF WE GO BACK OUT TO PUBLIC BID. WE'RE ADDING AT LEAST EIGHT MONTHS ON THE SHORT END POTENTIALLY MORE.
BECAUSE WE HAVE TO TO OPEN IT TO ALL VENDORS, NOT JUST EQUALIA. WE HAVE TO REOPEN TO EVERYONE ELSE. THAT TIME FRAME OBVIOUSLY WOULD EFFECT THE INTEREST RATE THAT WE WOULD POTENTIALABLY GET FROM MUNICIPAL BOND AND EFFECT ANY PRIVATE LENDERS THE INTEREST RATE THEY WOULD BE ABLE TO GET. WE PUT THE RFP.
[01:30:02]
EQUALIA DIDN'T RESPOND. THAT WAS THEIR SECOND OPPORTUNITY. WE ASKED THEM.AND I THINK MR. HUTCHINSON WAS THERE.
AND WE AGREED TO EXCHANGE SOME INFORMATION ABOUT WHAT THEY ARE OFFERING. AND WHAT THEY WOULD BUILD.
AND WE NEVER GOT ANYTHING. ALL WE GET A PERSON SPEAKING. WE DON'T GET DETAILS. POINTE SEEING SOMETHING FROM EQUALIA.
I THOUGHT WE DID RECEIVE SOMETHING IN WRITING ON
EQUALIA. >> DID WE RECEIVE SOMETHING
IN WRITING TO REVIEW? >> YES, WE DID.
IT WAS VERY HIGH LEVEL. IT WAS VERY HIGH LEVEL AND VERY PRELIMINARY. NOT NEARLY AS IN DEPTH AS
WE'VE BEEN. >> THERE WAS SOME QUESTIONS ABOUT WHAT SOME OF THE PARTS MEANT.
>> AFTER THE LAST JOINT WORKSHOP.
WITH THE CITY AND OUR BOARD, WE INVITED EQUALIA SOME TIME TO COME AND TALK TO US. THEY NEEDED INFORMATION.
WE AGREED TO FURNISH THAT FOR THEM.
THIS WAS AFTER THE PUBLIC RECORDS REQUEST.
THEY DIDN'T RESPOND. I INVITED PHONE CALLS.
WE DIDN'T GET ANYTHING AT THAT POINT.
>> THAT'S WHO YOU ARE DEALING WITH.
I THINK IT'S VERY PRUDENT TO SAY THAT I THINK THE -- THE CONVERSATION NEEDS TO BE REFRAINED.
AT THE COMMISSION MEETING IT WAS KIND OF FRAMED AS FPUA VERSES EQUALIA. FPUA WE'RE UNDER CONTRACT WITH THE DESIGN BUILD FIRM. IT'S NOT OUR GUYS THAT ARE GOING OUT THERE AND DESIGNING IT.
IT'S NOT OUR GUYS GOING TO BUILDING.
THESE ARE PRIVATE COMPANIES THAT DO THIS ALL OVER THE WORLD. IT'S A DIFFERENT PARADIGM THAN WHAT EQUALIA WANTS TO DO WHICH IS FINANCE, DESIGN, BUILD, OPERATE, MAINTAIN. THAT WOULD BE A WHOLE DIFFERENT REQUEST FOR PROPOSALS THAT WE WOULD HAVE TO PUT OUT AND ENTERTAIN VERSES WHAT WE PUT OUT.
WITH THAT IN MIND, I MEAN, I DO HAVE THAT QUESTION.
DID WE EVER CONSIDER PUTTING OUT A REQUEST TO OPERATE AND
MAINTAIN? >> WE ABSOLUTELY DID.
WE PUT THE ENTIRE PROCESS TOGETHER.
WE OUTLINED THE TIME FRAME. AND AT THE TIME, THAT WE -- THAT WE LOOKED AT THE OPTIONS THAT WE HAD, THE ONE OPTION WAS TO MOVE FORWARD WITH WHAT THE STILL EFFECTIVELY A P-3 PROGRESSIVE DESIGN BUILD.
ACCEPT WE FINANCE IT AND POTENTIALLY OPERATE THE PLANT OR WE WOULD PUT IT OUT FOR SOLICITATION TO GET QUALIFIED TERMS. THEN WE WOULD NARROW IT DOWN. IS PRIVATE SECTOR.
WE WOULD NARROW DOWN TO 3 OR 4 FIRMS AND THEN START GOING THROUGH THE ACTUAL PROPOSALS.
THAT'S BROUGHT BACK TO BOARD AS AN OPTION.
THE BIGGEST THINGS WE WERE HEARING WE WANT THIS DONE AS FAST AS POSSIBLE. IN THE AMOUNT OF TIME IT WOULD HAVE TAKEN TO GO THROUGH THAT RFQ, RFP PROCESS WE'RE AT 30% DESIGN. AND KEEP IN MIND THAT PROCESS IS NOT -- THAT'S NOT JUST SOMETHING STAFF IS DOING AS THE ROADBLOCK. THESE ARE LAWS.
TREES ARE CCNA REQUIREMENTS. THE OTHER THING THAT MAKES TIME OF THE ESSENCE HERE INTEREST RATES ARE RISING.
SINCE WE STARTED ITS GONE UP HALF A PERCENT.
THAT' NOT JUST THE PLANT. WE HAVE THE WHOLE CONVEYANCE SYSTEM TO BUILD AS WELL. YOU KNOW YOU CAN DO THE MATH QUICK. THE MORE WE DELAY.
PRESSURE DENT TO PUT THE PRESSURE ON US TO GET THIS DONE. DO YOU WANT THIS PLANT MOVES
AS FAR AS POSSIBLE? >> YES, WE DO.
THAT'S WHAT WE'VE DONE. >> THEY DON'T WANT TO PAY THE RATES. WHO DOES? WHAT CITIZEN WAKES UP EVERY MORNING AND SAY I WANT TO PAY HIGHER UTILITY RATES. THERE'S A GIVE FOR A TAKE HERE. FROM THE CITY'S PERSPECTIVE, THAT PROPERTY AT SOME POINT IN TIME WILL BE VERY VALUABLE TO THE CITY IN THE WAY OF TAX DOLLARS AND THE WAY OF PROGRAMS, AND SERVICES IT CAN PROVIDE FOR ITS CITIZENS. AND I THINK 20 YEARS FROM
[01:35:03]
NOW WHEN WE PAY CITIZENS INCREASED RATES THE CITY WOULD HAVE GIVEN BACK TEN FOLD.I DON'T THINK PEOPLE SEE THAT FAR DOWN THE LINE.
WE NEED TO PLAY THE LONG GAME HERE.
NOT LOOK AT THE MONTHLY IMPACT TO ACCOUNTS.
I KNOW WE ALL LIVE MONTH TO MONTH.
WHAT'S OUR CAR PAYMENT AND UTILITY PAYMENT GOING TO BE.
IT'S GOING TO BE SOMETHING EVERYTHING WILL FEEL AT THE BEGINNING. AS THE NEW NORMAL SETS IN.
PEOPLE WILL BENEFIT FROM WHAT WE DO.
AND I KNOW THAT CITY COMMISSION DOESN'T FEEL LIKE TO FEEL THE HEAT FROM THE CITIZENS ABOUT THIS.
BUT THERE'S NO WAY AROUND. WE CAN'T GET SOMETHING FOR NOTHING. I WOULD LOVE FOR EQUALIA.
WE WILL BUILD YOU, DESIGN IT AND YOU WILL DO OPERATE IT AND GUESS WHAT? IT'S NOT GOING TO INCREASE RATE OR MAYBE YOU COULD PAY INCREASE RATES FIVE YEARS FROM NOW. IT DOESN'T SEEM IT'S WISHFUL THINKING. NEVER SEEN A BUSINESS PERSON OR FINANCER LOOK AT THAT AND SAID THAT'S A GOOD DEAL.
I SEE A CREDIT CARD TEASER M COMING IN THE MAIL.
GO US WITH FIRST YEAR WE WILL KEEP YOUR INTEREST RATE DOWN TO 1%. BUT DON'T YOU KNOW, FOUR YEARS FROM NOW IT MAY GO UP TO 8.
WE NEED TO THINK ABOUT WHAT WE'RE GETTING TEN YEARS FROM NOW. WHAT OUR PLAN IS GOING TO BE. I FEEL MORE COMFORTABLE WITH OUR PEOPLE DOING THE WORK OUR PEOPLE DOING THE ANALYSIS, THEY'VE DONE A GREAT JOB WITH THE UTILITY THUS FAR. WHY LOSE CONFIDENCE NOW AND THINK ABOUT GOING TO NON-U.S. BUILDER.
THE LAST HURDLE FOR THIS BOARD THE CITY COMMISSION HAS TO APPROVE THE RATES. THEY HAVE TO BE COMMITTED TO IT. THEY HAVE TO BE COMMITTED.
>> THEY HAVE TO KNOW WE INVESTIGATED EVERY AVENUE.
I MEAN, WE'RE ALL SAYING THE SAME THING.
UNFORTUNATELY FOR EQUALIA THEY DIDN'T TAKE THE RIGHT ACTION AT THE RIGHT TIME. I DON'T THINK WE CONSIDER THEM. ARE WEEN ALLOWED TO CONSIDER ANYBODY ELSE AT THIS STAGE IF THEY DID NOT PUT IN THE
RESPOND TO RFP. >> WE'RE UNCONTRACT WITH EXISTING VENDOR. THE ANSWER IS NO.
>> MR. CHAIRMAN. I THINK YOU'RE RIGHT.
IT'S DIFFICULT TO RAISE RATES FOR BOTH THE BOARD AND THE CITY COMMISSION. BUT WHAT I HEARD YESTERDAY FROM THE CITY COMMISSION IS THAT THEY ARE OPEN TO RATE INCREASE IF WE PROVIDE THEM ADDITIONAL INFORMATION TO PROVIDE WHAT I WOULD CONSIDER A LITTLE BIT MORE CLARITY ON THE PROCESS THAT WE WENT THROUGH.
THE VEPDORS, THE FINANCING HOW MANY OPTIONS DID WE CONSIDER AND WE'RE PREPARING THAT.
THAT'S WHAT I HEARD LAST NIGHT.
>> THEY WANT TO BE CONVINCED THAT WHATEVER WAY WE GO, WE INVESTIGATED OTHER AREAS AND WE SAID THIS IS THE BEST PATH THAT THEY WANT TO BE ASSURED OF THAT.
>> EVEN THEN WITH THE ECONOMY LIKE IT IS RIGHT NOW, WE JUST HEARD EARLIER. IT'S EASY TO SAY THEY SHOULD DO IT BECAUSE IT'S THE RIGHT THING TO DO.
BEING ELECTED OFFICIAL WITH EVERYONE SCREAMING AT YOU IS YOU NEED TO HAVE A REALLY GOOD STORY TO TELL THEM THIS
IS WHY WE'RE DOING. >> HINDSIGHT IS 50/50.
WE SHOULD HAVE DONE THIS 40 YEARS AGO.
>> I'M GLAD TO HEAR YOU WILL HAVE THREE OPTIONS.
IT'S IMPORTANT TO KNOW THIS ISN'T FPUA VERSES EQALIA.
THEY HAVE MADE THEIR NAME KNOWN NOW RIGHT.
NOW THEY WE ALL DESERVE TO KNOW WHAT THE COMPARISON WOULD BE. IF WE WEREN'T GOING TO GO WITH AQUA-NORITA. WAT WOULD WE GO WITH.
I'M GLAD YOU WILL GIVE US SEVERAL DIFFERENT AVENUES.
COUPLE OF THINGS I WANT TO CLARIFY SO WE CAN BE CLEAR ON THAT WHEN WE COMMUNICATE, THE 30% AND THE 60% DESIGN BUILDS I KNOW THAT WE HAVE DATES ACCORDING TO THOSE.
AND THEN PERCENTAGE OF ACCURACY FOR WHAT IS GOING TO ACTUALLY COST US. WHAT ARE THOSE DATES AGAIN?
>> THEY ARE 30% DESIGN REPORT THE DRAFT HAS BEEN DELIVERED TO US. WE ARE GOING OVER IT WITH THE CONSULTANT ON THIS THURSDAY, ACTUALLY.
[01:40:03]
AND WE ARE ABOUT TWO WEEKS AWAY FROM HAVING THEIR COST ESTIMATE WITHIN THE 15% ACCURACY.>> OKAY. WHEN YOU MOVE TO 60% DESIGN, AT THAT POINT, WE'LL HAVE ACTUAL MATERIAL SELECTIONS WE'LL HAVE REAL-TIME COST OF THOSE MATERIALS AND WE'LL BE ABLE TO GET THAT TO A GUARANTEED MAXIMUM PRICE AT
THAT TIME. >> WHEN IS THAT AROUND?
>> 60% DESIGN? >> THE 60% DESIGN WILL TAKE ABOUT TO GO FROM 30 TO 60, ABOUT FIVE MONTHS.
LET'S ASSUME THAT WE ARE MOVING TOWARDS THE 60% DESIGN CONTRACT. YOU KNOW, THE MIDDLE OF YEAR. PROBABLY, LET'S SEE, MAY, MAYBE JUNE IF WE ARE KEEPING UP THE PACE THAT WE'RE AT RIGHT NOW. WE OUGHT TO BE THERE BY THE
END OF THE YEAR. >> THOSE ARE REAL NUMBERS.
THAT WILL BE ALL INCLUSIVE NUMBERS.
OR JUST THE BUILDING? >> THAT'S JUST THE PLANT.
WE ARE NEGOTIATING A CONTRACT TO LOOK AT THE ENTIRE CONVEYANCE SYSTEM AS WELL.
AND IT WOULD BE MODELLED VERY SIMILAR TO THIS CONTRACT WHERE WE WILL HAVE 30-60 AND THEN BUILD.
THAT PROJECT BECAUSE IT WILL BE SO DIVERSE FROM PIPELINE WORK TO MASTER LIFT STATIONS, TO LITTLE LIFT STATIONS. THERE'S A LOT OF DIFFERENT WORK. IT'S VERY POSSIBLE WE WILL BREAK THAT UP AFTER THIS FIRST STAGE.
THERE'S A LOT OF MODELLING THAT HAS TO BE DONE.
THERE'S A LOT THAT GOES INTO IT BEFORE WE MAKE THAT DECISION. THAT WILL FOLLOW IN A
PARALLEL PATH. >> JUST A FEW FINAL COMMENT.
WHEN WE GET AN UPDATE ON FWRF.
THERE'S A FEW KEY THINGS THAT I WANT TO MAKE SURE THAT WE GET INFORMED ON. A, WHAT ARE THE POTENTIAL LEGAL RAMIFICATIONS IF WE DO BREAK OUR CONTRACT THAT WE CURRENTLY HAVE? SO THAT WE CAN GO KIND OF BACKYARDS AND GO THROUGH THE WHOLE DESIGN BUILD OPERATE AND MAINTAIN PROCESS. WHAT KIND OF EXPOSURE DO WE
HAVE THERE? >> BREAK OUT THE KRYSTAL BALL AND PROJECT WHAT KIND OF INTEREST RATE WE WILL MISS OUT ON WHAT IT COULD BE IF WE HAVE TO GO THROUGH THIS WHOLE PROCESS AGAIN. IF WE DO DECIDE WE WANT TO ENTERTAIN, DESIGN, BUILD, OPERATE AND MAINTAIN, IT'S GOING TO TAKE TIME AND IF WE DECIDE NOT TO CHOOSE OPERATE, AND MAINTAIN AND WE GO DESIGN BUILD, ANYWAY WHICH WE WOULD HAVE TO PUT OUT WHOLE NEW CONTRACT AND GO OUT AGAIN. AND THEN MAYBE FIGURE OUT IF WE WILL GET BONDS THEN; YOU KNOW IF IT'S UP A PERCENT OR TWO, WHAT DOES THAT COST TO US? AND THEN THE LAST THING IS I HAVE NO QUALMS WITH GETTING MORE INFORMATION FROM EQUALIA.
I WANT THE BEST THING FOR THE CUSTOMER.
I DO THINK, YOU KNOW IF WE BACKTRACK ON WHERE WE ARE NOW. THERE WILL BE A COST TO IT.
THERE'S NO WAY AROUND IT. >> IS THAT COST GOING TO BE SAVED BY GOING WITH THIS OTHER ROUTE?
THAT'S THE QUESTION. >> MR. KOBLEGARD?
>> WE'RE ON THE SCHEDULE RIGHT NOW.
I REMEMBERED ONE OF THE MEETING WE MENTIONED THREE IMPORTANT BOARD MEETINGS THAT YOU ALL WOULD BE HAVING ON THE -- WE'RE SCHEDULED THEM OUT ON CERTAIN DATES.
THERE'S CERTAIN OTHER THINGS ON SCHEDULE.
I DON'T KNOW IF THIS WILL CHANGE THE WHOLE SCHEDULE.
I'M NOT SURE WHAT WE ARE LOOKING AT.
IF YOU WANT TO START LOOKING AT OTHER COMPANIES OR LOOKING AT EQUALIA TO STEP IN THE PROCESS.
MAY 3RD AND MAY 16TH MEETING WE WOULD HAVE THE MEETING.
THE RATES ARE APPROVED. WE KNOW WE WILL EFFECT ACTIVE I WILL CONTINUE DOWN THE PATH WE'RE GOING.
THE IDEA FROM PROVIDE AS MUCH INFORMATION TO SHOW THE BOARD AND THE CITY COMMISSION THAT WE'VE EVALUATED ALL OF THE OPTIONS AND THAT WE PICKED THE PATH THAT WE THINK IS THE BEST FORWARD.
>> IF I COULD ADD SOMETHING TO THAT.
ALL OF OUR WORKSHOP. EVERYTHING WE'VE GONE THROUGH YOU REMEMBER FROM THE PRESENTATIONS MANY, MANY WORKSHOPS THAT WE HAD. ALL THE DOCUMENTATION IS AVAILABLE. IT'S ABOUT THREE INCHES
[01:45:02]
THICK IN THE BOOK. IT BREAKS DOWN BY SECTION.EVERYTHING TO THE INFORMATION ON THE POTENTIAL FINANCING. THAT'S AVAILABLE SOME OF IT IS IN THERE. IT'S A LITTLE BIT NOT AS DIRECT IN THERE. HOWEVER WE HAVE ALL THE DOCUMENTATION. THEY DID THE DEEP DIVE ON THE IMPLICATIONS OF OUR BONDS.
IT MATTERS HOW WE BARO THIS MONEY.
WHAT WE DO AS WELL. WE HAD TO BOUNCE IN THE BEGINNING. WHEN MR. KOBLEGARD WE HAD TO BOUNCE IT OFF TO SEE WHAT WE WERE ABLE TO DO.
I'M CONFIDENCE THAT FORUM IS CHALLENGING AT TIMES.
WE COULD BE UP HERE FOR THREE HOURS GOING THROUGH THIS GETTING EVERYBODY'S QUESTIONS BUT WE'VE BEEN SUCCESSFUL IN THE PAST HAVING THE INDIVIDUAL MEETINGS WITH A BOARD MEMBER OR COMMISSIONER WHERE WE CAN GO THROUGH AND YOUR SPECIFIC QUESTIONS WE CAN DIVE INTO THOSE AND GET THOSE ANSWERED.
I THINK THAT'S REALLY GOING TO BE A VERY VALUABLE TOOL.
TIME OF THE ESSENCE HERE. INTEREST RATES ARE GOING UP.
THAT'S SOMETHING HAS HAPPEN SOONER RATHER THAN LATER.
>> I THINK IT'S IMPORTANT TO MENTION THAT AFTER MAY 16TH, OUR PROJECTED SCHEDULE WOULD BE TO HAVE A CLOSING AND JUNE 9TH. WE WOULD LOCK IN THAT RAIN.
IF THE RATE SUFFICIENTY RECOMMENDATION ARE APPROVED
ON MAY 16TH. >>> THAT WOULD -- EXPEDITED
TIME FRAME. >> WHAT THAT MEANS YOU KNOW WHAT THE FNL NUMBER IS. DID I HEAR THAT? CORRECTLY ON MAY 16TH? THE COMMISSION WILL BE
VOTING ON RATES? >> MAY 16TH IS THE RATE SUFFICIENCY RECOMMENDATION GOING TO THE CITY COMMISSION
FOR APPROVAL. >> OURS IS MAY 2ND?
WE WILL BE ATTENDING THE CITY COMMISSION ON MAY 2ND TO PROVIDE THE INFORMATION WE'RE TALKING ABOUT HERE
PUBLIC HEARING. >> MAY 3RD WILL BE THE PUBLIC HEARING FOR FPUA BOARD.
>> THOSE DATE WE OUTLINED IN OUR JOINT WORKSHOP.
>> THIS ADVISORY BOARD THAT WE'VE GOT.
DO WE HAVE CONTACT INFORMATION FROM THEM.
I WOULD LOVE TO MAYBE CHAT WITH SOME OF THEM ABOUT HOW
THEY FEEL, TOO. >> YES, MA'AM.
I HAVE THE CONTACT INFORMATION FOR ALL BOARD MEMBERS. I CAN SEND THAT -- CAN SHARE THAT WITH GROUP. E-MAIL, PHONE NUMBERS AND
NAMES. >> THAT'S WHAT THEY ARE THERE FOR; RIGHT? SO WE CAN GET A GOOD SENSE OF COMMUNITY FROM MY APPOINTEES ARE IN THE AUDIENCE. SHE'S LISTENING.
>> ANY OTHER QUESTIONS OF MR. HUTCHINSON?
>> THANK YOU. >> ANY OTHER COMMENTS FROM
I WANT TO GO BACK TO GAS REALLY QUICK.
I WOULD LOVE TO SEE SOME GAS -- AN IDEA OUT MUCH, WHAT WE PAY COMPARED TO OTHER.
O COMPARISON A BILL COMPARISON ON THAT.
JUST IT DOESN'T HAVE TO BE MONTHLY.
I WOULD LOVE TO SEE THAT EVEN IF QUARTERLY OR
WE CAN DO THAT. >> ANY OTHER COMMENTS?
>> ALL
* This transcript was compiled from uncorrected Closed Captioning.