Jun 07, 2022 Fort Pierce Utilities Authority

[Call to Order]

[00:00:07]

>> GOOD AFTERNOON. I WOULD LIKE TO CALL THE FORT PIERCE UTILITIES AUTHORITY REGULAR MEETING SET FOR THIS TUESDAY JUNE 7TH, 2022 TO ORDER.

PLEASE STAND FOR THE PRAYER AND THE PLEDGE OF

ALLEGIANCE. >> GOOD AFTERNOON.

IF YOU GUYS WILL -- FIRST CHRONICLE CHAPTER 12, THE LORD TOLD HIM TO CHOOSE MEN FROM DIFFERENT TRIBES.

AND FIRST CHRONICLES 12:32 SAYS FROM THE TRIBE OF ISACAR THERE WERE 200 LEADERS WITH THE RELATIVE.

ALL THESE MEN UNDERSTOOD THE SIGNS OF THE TIMES AND NEW THE BEST COURSE FOR ISRAEL TO TAKE.

LORD I THANK YOU FOR YOUR GRACE AND MERCY YOU'VE SHOWN ON THE CITY OF FT. PIERCE AND FPUA.

WHAT I COME ASKING SPECIFICALLY TORE THE SPIRIT OF THE SON TO COME AND REST ON MR. CISNEROS THE DIRECTORS OF FPUA AND THE MEMBERS OF THE BOARD.

I PRAY FOR CLEAR DIRECTION AND SUPRANATURAL STRATEGIES FROM HEAVEN TO HELP GUIDE OUR COMMUNITY DURING THE STRANGE TIMES OF UNCERTAINTY.

I PRAY FOR PEACE TO COME ON THESE LEADERS THAT ARE CONSTANTLY MAKING DIFFICULT DECISIONS TO LEAD OUR COMMUNITY IN THE RIGHT DIRECTION.

I ASK YOU BLESS THEM AND YOU BLESS THIS COMMUNITY.

IN JESUS NAME, AMEN. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

AND TO THE REPUBLIC, FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.

>> PLEASE CALL THE ROLL.

[A. SET THE AGENDA]

>> DO WE HAVE A MOTION TO SET THE AGENDA?

>> SO MOVED. >> SECOND.

>> PLEASE CALL THE ROLL.

[B. APPROVAL OF MINUTES:]

. >> DO THE BOARD MEMBERS HAVE ANY CHANGES OR AMENDMENTS TO THE MINUTES? IF NOT PLEASE MAKE A MOTION TO APPROVE.

>> MOVE APPROVAL. >> SECOND.

>> PLEASE CALL THE ROLL.

>> THIS A TIME FOR MEMBERS OF THE PUBLIC TO COME UP AND MAKE COMMENTS. IF YOU WISH TO MAKE A COMMENT YOU ARE LIMITED TO THREE MINUTES PLEASE STATE YOUR NAME AND ADDRESS FOR THE RECORD.

[D. CONSENT AGENDA:]

>> DOESN'T APPEAR ANYONE WISHES TO MAKE COMMENTS.

WE WILL NOW MOVE TO THE CONSENT AGENDA.

I WOULD LIKE TO REMOVE ITEM NO. FIVE AND VOTE ON THAT SEPARATELY. IF ALL THE OTHER MEMBERS OF THE BOARD ARE AGREEABLE AS TO ITEMS 1, 2, 3 AND 4, WE

CAN -- >> MOVE APPROVAL.

>> I WILL SECOND. >> PLEASE CALL THE ROLL FOR 1, 2, 3 AND 4.

[D.5. Adm-Annex Parking Compound Property Adjustment]

>> AS ITEM NO. FIVE MY LAW FIRM AND IS HANDLING THE CLOSING ON THIS. I NEED TO ABSTAIN VOTING.

IF ANYONE WANT TO MAKE A MOTION TO APPROVE, PLEASE DO

SO. >> I MOVE APPROVAL.

>> SECOND. >> PLEASE CALL THE ROLL.

LETTERS OF RECOGNITION OF EXCELLENCE.

DO WE HAVE ANY? I DON'T BELIEVE SO.

[G.1. FPUAnet Update – For Information Only]

NOW WE MOVE FORWARD TO NEW BUSINESS.

>> THANK YOU, MR. CHAIRMAN. GOOD AFTERNOON, MEMBERS OF THE BOARD. THE FIRST ITEM THIS AFTERNOON IS FPUANET UPDATE. JASON MITTLER AND RACHEL TENET WILL PRESENT THE ITEM. GOOD AFTERNOON, MR. CISNEROS AND MR. CHAIRMAN AND MEMBERS OF THE BOARD.

WE ARE SUPER EXCITED TO SHARE WITH YOU THE PROGRESS THAT THE FPUANET TEAM MADE TOWARD NETWORK DEPLOYMENT.

BEFORE WE START OUR PRESENTATION, I WILL BE GIVING YOU A QUICK OVERVIEW OF THE AGENDA.

THIS PRESENTATION WILL BE JOINTLY PRESENTED WITH MISS RACHEL TENET THE PUBLIC AFFAIRS SUSTAINABILITY MANAGER. THIS SLIDE SHOW HIGH-LEVEL OUTLINE OF THE AGENDA THIS AFTERNOON.

AND WE'LL BE PRESENTED HIGH-LEVEL TIME LINE AND

[00:05:02]

WE'VE BROKE THEM INTO TWO GROUPS FOR YOU SALES AND SUPPORT AND UTILITY BUILD OUT.

IF NEXT WE'LL BE GIVING YOU HIGH-LEVEL UPDATE OF A FEW PROJECTS. THEN A SNEAK SPEAK OF FPUANET BRANDING AND MARKETING AND OVERVIEW OF SOME COMMUNITY OUTREACH AND RECOGNITION AND FINALLY A QUICK LEGISLATION UPDATE. WITH THAT BEING SAID, I WILL

HAND IT OVER TO MISS RACHEL. >> EXCELLENT.

CHAIRMAN FEE, MAYOR HUDSON. THANK YOU ALL FOR HAVING US TODAY IN THE POINT OF THE NEXT TWO SLIDES IS REALLY JUST TO GIVEN A OPPORTUNITY TO TAKE A STEP BACK AND LOOK AT FPUANET AS THE WHOLE. WHAT PROGRESS HAS FPUANET MADE AS A UTILITIES SERVICE. IN ADDITION TO SOME OF THE UPDATES THAT JASON WILL GIVE YOU ABOUT THE PROJECTS THAT WE'VE GUN WORKING ON OVER THE YEARS.

WE'VE BROKEN IT OUT TO SUPPORT AND SALES AS ONE CATEGORY AND UTILITY BUILDOUT AS SECOND CATEGORY.

WHAT WE ARE TRYING TO CONVEY HERE WITH SUPPORT AND SALES THE TREMENDOUS AMOUNT OF WORK AND EFFORT GOING INTO CREATING THE FOUNDATION THE SUPPORT AND SALES FOUNDATION FOR FPUA TO BE ABLE TO OFFER FIBER INTERNET THROUGHOUT OUR CITY. SOME OF THE KEY ITEMS THAT WE'RE LOOKING AT HERE, FOR EXAMPLE, IN HOUSE STAFFING.

WE STARTED OUT A COUPLE OF YEARS AGO WITH I THINK ONE STAFF MEMBER. AND WE'VE BEEN DOING STAFF ONBOARDING PRETTY CONSISTENTLY.

WE'RE ABOUT 85% OF THE WAY THERE.

WE'RE STILL LOOKING FOR A COUPLE OF MORE INDIVIDUALS.

WE'RE LOOKING AT SOME ADJACENT SERVICE.

WHAT WE HAVE FOUND IS THAT FOR NRLT SER-- INTERNET SERE PROVIDERS MOST LOOK FOR COMBINED VOICE OVER IP SERVICE WITH THAT INTERNET SERVICE.

AND IN LIEU OF US OFFERING VOIP WE SELECTED A VIOP PARTNER SO WE CAN OFFER THE BUNDLED OPTION BUT WE DON'T HAVE TO GET INTO THE LOGISTICS FOR OURSELVES.

WE ALSO GOT WITH INTERNET SERVICE YOU HAVE A NEED FOR 24/7 CUSTOMER SERVICE AVAILABILITY.

YOU NEED SOMEONE TO CALL, AND SO IN ORDER TO BE ABLE TO OFFER THAT, WE HAVE SELECTED A THIRD PARTY HELP DESK AND MONITORINGMENT. WE'RE ABOUT 35% OF THE WAY THERE. BASICALLY WE'RE WORKING ON A CONTRACT WITH THEM TO SET UP HOW THAT WILL WORK.

WHAT IS PHONE TREE GOING TO BE.

WHAT HAPPENS WHEN OUR CUSTOMER SERVICE IS OPEN, ET CETERA. ALSO THESE INDIVIDUALS ARE MORE TECHNICALLY ABLE TO ASSIST WITH THINGS LIKE DOWNED INTERNET. THAT'S ITS OWN SORT OF EFFORT. IN ADDITION TO THAT WE OF COURSE SELECTED THE RATES AND SERVICES PACKAGES DONE JOINTLY WITH THE CITY COMMISSION LAST YEAR.

OR THE YEAR BEFORE. AS WELL AS CUSTOMER CONTRACT AND BILLING PROCESSEES. WE'RE TALKING ABOUT ADDING THE FIFTH UTILITY SERVICE TO FPUA WHEN WE TALK ABOUT FIBER INTERNET. AND SO SOME OF THE QUESTIONS THAT COME UP ARE WELL, HOW DOES A CUSTOMER CONTRACT? BECAUSE WHEN YOU THINK ABOUT INTERNET SERVICE YOU TYPICALLY HAVE A CONTRACT FOR SET PERIOD OF TIME.

THAT'S SOMETHING THAT WE'RE WORKING ON INSIDE.

ALSO BILLING PROCESSEES HOW ARE WE GOING TO BILL OUR CUSTOMERS FOR FIBER INTERNET.

AS PART PART OF THE FPUA OVERALL BILL OR WHAT.

WE'RE ABOUT 85% OF THE WAY THERE.

IT'S STILL KIND OF DOTTING SOME OF THOSE I'S CROSSING T'S. WORKING ON SOME OF THAT.

THERE'S AFFORDABLE CONNECTIVITY PROGRAM.

JASON WILL TOUCH ON THAT TOWARD THE END.

BUT THE LEGISLATIVE UPDATE THAT THIS A PROGRAM THAT IS VERY MUCH TIED TO THE UNITED STATES INTEREST IN BRIDGING THE DIGITAL DIVIDE OR REACHING DIGITAL EQUITY AND THIS IS ESSENTIALLY THE $30 VOUCHER THAT INDIVIDUALS OF LOW-INCOME HOUSEHOLDS CAN U.S. IN ORDER TO GET INTERNET TO THEIR HOME AND IN ORDER TO BE AN INTERNET SERVICE PROVIDER THAT CAN PARTICIPATE, YOU HAVE TO GO THROUGH AN ENTIRE APPLICATION PROCESS.

WE HAVE BEEN OFFICIALLY APPROVED AND ARE NOW IN A CP VOUCHER PROVIDER. WE'VE BEEN WORKING ON THAT, THEN OF COURSE THERE'S THE WEB SITE AND THE DIGITAL MARKETPLACE LAUNCH AND THE BRANDING.

AND SO AS WE LAUNCH AND AS WE BUILD OUT AND GET INTO THE GROUND, WE NEED TO HAVE SOMEWHERE FOR INDIVIDUALS TO COME TO SIGN UP, LOOK AT WHAT OUR DIFFERENT PACKAGES ARE. FIGURE OUT OUT CONTRACT AND COMPARISON THE SERVICES, ET CETERA.

WE BEEN WORKING HEAVILY ON THIS.

THIS IS SUPPORT AND SALES. THIS IS SOMETHING THAT I THINK WE HAVE SPENT QUITE A BIT OF TIME LOOKING AT THE DIFFERENT PROJECTS FPUAKNELT IS BRINGING TO THE CITY OF

[00:10:03]

WE HAVE ALSO BEEN DOING UTILITY BUILD OUT.

THE UTILITY BUILD OUT HAS BEEN FOCUSED PRETTY HEAVILY ON THESE PROJECTS THAT JASON WILL TALK ABOUT.

BUT THERE'S MORE TO IT THAN JUST THAT.

AS AN INTERNET SERVICE PROVIDER, THE STANDARD PROCESS IS TO HAVE DESIGN STANDARDS, WHICH BASICALLY FUNCTIONS AS AN ENGINEERING MANUAL FOR BUILDING OUT.

THIS IS SOMETHING THAT WE HAVE TO HAVE PUT TOGETHER FOR FPUANET. BASICALLY WHAT IT DOES IS SERVE AS BLUEPRINT OR GUIDELINE FOR US AS WE SELECT AREAS THAT WE'RE GOING TO BUILD OUT INTO THROUGHOUT THE CITY. WE NOW HAVE OUR FPUANET ENGINEERING MANUAL THAT TELLS US HOW TO DO WHAT HOW TO MAKE DIFFERENT DECISIONS AND MATERIALS, ET CETERA.

THAT'S COMPLETED. ALSO THE NETWORK DESIGN UNDERLYING INFRASTRUCTURE THAT WAS DONE PRIOR TO THAT.

WE'VE GOT FIBER DESIGN FOR DOWNTOWN FT. PIERCE.

THAT'S IN PROGRESS. THE FIBER DESIGN FOR LINCOLN PARK IS COMPLETED AND CONSTRUCTION FOR LINCOLN PARK HAS ACTUALLY BEGIN LAST WEEK.

WE'RE ALREADY DIGGING OVER THERE.

THE NETWORK DESIGN FOR PUBLIC WIFI WHICH IS CITYWIDE HAS BEEN COMPLETED. WE'VE INSTALLED FREE PUBLIC WIFI AT MEANS COURT. THE MANATEE CENTER AREA JETTY PARK AND THE FPUA PARKING LOT AREA.

>> AND ANNEX AREA. >> WE'RE ARE ALSO IN THE PROCESS OF ACQUIRING SUPPLIES.

WE NEED A LOT OF FIBER TO BUILD OUT INTO THE CITY.

WE'RE ABOUT 80% OF THE WAY THERE.

WE'RE ACQUIRING A SIGNIFICANT AMOUNT OF FIBER TO MOVE FORWARD. CONSTRUCTION FOR DOWNTOWN FT. PIERCE, THE FIBER DESIGN FOR DOWNTOWN FT. PIERCE IS IN PROGRESS. JASON WILL TALK ON THAT A LITTLE BIT. THE CONSTRUCTION ESTIMATED TO START IN JULY OF THIS YEAR.

NEXT MONTH. WE'RE ALSO LOOKING AT SMART GRID SERVICES OR WE'RE WORKING WITH GAS AND ELECTRIC DEPARTMENT TO DO SMART GRID SERVICES OVER FIBER NETWORK AND THAT IS ESTIMATED TO BEGIN CONSTRUCTION IN AUGUST OF THIS YEAR.

AND THEN, OF COURSE, THE KIOSK INSTALLATION WHICH EVERYONE IS EXCITED TO SEE TO COME TO DOWNTOWN.

JASON WILL GIVE A MORE THOROUGH OVERVIEW OF THAT PARTICULAR PROJECT PIECE WE'RE ESTIMATED TO HAVE THEM BY FEBRUARY OF 2023. AND WITH THAT, I THINK I'M

GIVING IT BACK TO JASON. >> THANK YOU, RACHEL.

>> JUST REALLY QUICK WANT TO GIVE YOU AN UPDATE ON LINCOLN PARK SMART NEIGHBORHOOD INITIATIVE AND THE DOWNTOWN SMART NEIGHBORHOOD INITIATIVE.

REVIEWING THE FIBER STRUCTURE BUILDOUTS DEPLOYMENT OF WIFI AND KIOSK IN EACH OF THE PROJECTS.

THE ORIGINAL LINCOLN PARK WAS SIGNED IN 2019 TO HELP BRING ABOUT BUSINESS REVITALIZATION IN THE COMMUNITY. THE ORIGINAL FOOTPRINT WAS FROM ORANGE AVENUE TO AVENUE D7TH STREET TO 25TH STREET.

WE FOUND THIS WOULD REQUIRE ADDITIONAL CAPITAL COST.

THAT WE DID NOT HAVE BUDGETED AS WELL AS SIGNIFICANT HIGH OPERATIONAL COST ANNUALLY.

WE'RE CURRENTLY ROUTING REVISED MOU TO THE PARTNERS THAT WILL REDUCE THE FOOTPRINT TO 14TH STREET BUT WILL BRING FIBER TO EVERY PARCEL, BUSINESS AND HOME.

AND OFFER FREE PUBLIC WIFI IN FIVE KEY AREAS.

WE'RE HOPING THAT IN THE NEXT FEW WEEKS WE'LL HAVE THIS REVISED OU APPROVED FROM ALL OF THE PARTNERS.

AND THEN WE WILL BE BRINGING THAT TO YOU TO GET APPROVED AND THEN ALSO BE BRINGING OUR CONTRACT BACK WITH OUR DESIGN BUILD CONTRACTOR TO GET THAT APPROVED AS WELL.

THE SLIDE IN FRONT OF YOU SHOWS THE FOOTPRINT OF THE AREA THAT THE FIBER TO THE PARCEL WILL BE BUILT OUT.

ALL OF THE DESIGN, ENGINEERING AND PERMITS HAVE BEEN COMPLETED. I'M EXCITED TO TELL YOU.

>> ON JUNE 1ST ON TUESDAY THE FIRST MACHINE WENT INTO THE GROUND. AND SO WE WERE EXCITED THAT WE WERE ACTUALLY CONSTRUCTING DOWN MORRIS CREEK AS WE ARE SPEAKING TODAY.

CONDUIT IS GOING IN THE GROUND FOR TO PROVIDE THE PATHWAY FOR THE FIBER OPTIC CABLE THAT WILL BEGIN MOVING INTO THE COMMUNITY. ALL THE FIBER MATERIALS ARE ON ORDER AND SHOULD BE ARRIVING BY NOVEMBER.

ONCE THESE MATERIALS HAVE ARRIVED OUR DESIGN BUILD CONTRACTOR WILL MOBILIZE AND THE INSTALLATION OF FIBER WILL BEGIN. AND SO WE ANTICIPATE THE

[00:15:02]

AGAIN MOST OF THOSE THINGS ARE FOCUSED ON MATERIAL ISSUES AS YOU GUYS HAVE HEARD MANY TIMES.

NOT ONLY DO WE BRING FIBER TO EVERY PARCEL.

WE SELECTED FIVE LOCATIONS FOR FREE PUBLIC WIFI.

IF SLIDE IN FRONT OF YOU SHOWS THESE LOCATIONS.

THE FIRST SITE MEANS COURT CENTER WHICH WAS COMPLETED IN APRIL AND WE ALREADY HAVE GREAT TESTIMONIES COMING IN OF PEOPLE CONNECTING AND ACTUALLY BRIDGING THE DIGITAL DIVIDE IN THIS COMMUNITY.

HOW IT'S IMPACTING FAMILIES. THE SECOND LOCATION IS THE PLAZA THERE ON AVENUE D AND 13TH.

AND THAT SHOULD BE COMPLETED END OF JUNE.

THE THIRD LOCATION IS TRANSIT FACILITY.

WE BELIEVE THIS PROJECT -- THIS PORTION WILL BE COMPLETED IN JULY. THE FOURTH LOCATION IS LINCOLN PARK COMMUNITY CENTER ON 13TH STREET.

IN AUGUST OF THIS YEAR. AND THEN THE FINAL LOCATION THE MORRIS CREEK LYNNIAL PARK.

THIS WILL BE A LITTLE BIT DELAYED MORE TOWARD THE END OF AUGUST OF NEXT YEAR BECAUSE WE HAVE TO BRING FIBER THERE. AND THAT'S WE HAVE TO GET THE WHOLE NETWORK BUILT AND THEN TURN UP THAT LOCATION.

THESE AREAS WE SELECTED. THESE ARE WHERE PEOPLE CONCREGATE. PEOPLE CAN ACCESS THIS FREE TECHNOLOGY. SECOND PROJECT I WILL BE GIVING UPDATE DOWNTOWN SMART CITY NITCH ACTIVE.

FPUA PORT SIGNED ON APRIL APRIL LAST YEAR.

FOU FOR $250000 FOR THE CITY OF FT. PIERCE.

WITH THE FUNDING COMING FROM THE KING PLANT TAX CREDITS.

THE INITIATIVE WAS TO BRING ABOUT THE VISION OF THE FT. PIERCE BEING A SMART CITY TALKED ABOUT IN 2019.

IT INCLUDED THE INSTALLATION OF INFRASTRUCTURE, FIBER INFRASTRUCTURE TO THE FOUR SMART KIOSKS.

AND STAFF WAS CURRENTLY ROUTING INTERNALLY A REVISED MOU FOR $540,000 THAT CONTAINS ADDITIONALLY 290,000 FROM THE TRANSFER OF THE PROPERTY OF THE CITY TO THE CITY OF FT. PIERCE FOR THIS KINGS LANDING PROJECT. THIS NEW MOU WILL INCLUDE FIBER INFRASTRUCTURE TO ALL BUILDINGS FROM EAST OF THE RAILROAD TO CITRUS AVENUE. PUBLIC WIFI IN THREE PUBLIC AREAS AND AGAIN THE INSTALLATION OF THE FOUR SMART KIOSKS. THIS SLIDE SHOWS THE LOCATION OF THE FIBER BUILD OUT.

IT'S BROKEN INTO THREE ZONES FOR TIME LINES.

THE ZONE ONE IS FROM AVENUE C TO ORANGE AFTER.

ZONE TWO FROM ORANGE AVENUE TO CITRUS.

ZONE 3 FROM AVENUE C TO SEEWAY DRIVE.

ZONE ONE ENGINEERING IS COMPLETED.

WE'RE HOPING TO START CONSTRUCTION SOMETIME IN JULY HOPEFULLY BEING ABLE TO FINISH IN NOVEMBER.

ZONE TWO WE'RE PLANNING TO HAVE IT COMPLETED IN FEBRUARY OF 2023 AND ZONE THREE STARTING OF CONSTRUCTION IS JUNE OF '23. THIS SLIDE SHOWS THE PUBLIC WIFI THAT WILL BE DEPLOYED IN THE DOWNTOWN AREA.

WHICH IS LIKE THE THREE DAY AREAS, THAT THERE'S EVENTS THAT ARE HELD. ONE IS THE MANATEE CENTER.

WE WERE ABLE TO DEPLOY THAT CURRENTLY.

IF YOU GO TO MANATEE CENTER TODAY YOU CAN CONNECT TO FPUANET PUBLIC WIFI. THAT WAS COMPLETED IN MAY.

MARINA SQUARE BY THE DESIGN JUST COMPLETED LAST WEEK AND WE SHOULD HAVE THAT DEPLOYED IN NOVEMBER.

THE RIFRER WALK, BY THE DESIGN WILL BE COMPLETED IN JULY AND SHOULD BE DEPLOYED SOMETIME IN ANY WAY OF 2023.

OR AT LEAST BY THAT TIME. IN ADDITION TO THE PUBLIC WIFI AND FIBER BUILD OUT THE SMART KIOSKS, ARE SHOWN ON THIS MAP. SO THE REVISED MOU THAT INCLUDE FOUR SMART KIOSKS THAT WHERE THERE BEFORE BUT IN DIFFERENT LOCATIONS? .

THE VENDOR WE WERE WORKING WITHES NOT ABLE TO PROVIDE THE SOLUTION THAT WE HOPED, GOOD NEWS WE HAVE A NEW VENDOR AND WE ARE CURRENTLY IN CONTRACT CONVERSATIONS WITH THEM. I TALKED WITH THEM TODAY.

WE TALKED ABOUT VISIT TO TAMPA WHERE THEY DO INSTALLS POSSIBLY NEXT WEEK. WE'RE HOPING TO BRING THAT CONTRACT TO THE BOARD HOPEFULLY NEXT MEETING.

[00:20:03]

WE HOPE TO GET THAT INSTALLED BY 2023.

WITH THAT YOU CAN GET A SNEAK PEEK OF OUR MARKETING AND BRANDING. THANK YOU, JASON.

JUST TO SORT OF REITERATE, JASON GAVE A FEW UPDATES ON LINCOLN PARK AND THE DOWNTOWN FIBER PROJECTS OR INITIATIVES THAT WE HAVE GOING ON THROUGH FPUANET.

BUT WHEN WE TALK ABOUT FPUANET WE'RE TALKING ABOUT AN ENTIRE UTILITY SERVICE. WHEN WE LOOK AT THE MARKETING AND THE BRANDING, WE REALLY HAD TO TAKE A STEP BACK AND THINK TO OURSELVES, ABOUT THE BROADER OFFERING THAT WE ARE PUTTING TOGETHER HERE.

ONE OF THE FIRST THINGS THAT WE CAME TO WAS THIS NOTION AND THIS SORT OF BRANDING PIECE THAT WE ARE OR CONSIDER OURSELVES TO BE A SMART CITY INTERNET SERVICE PROVIDER. WHAT THIS MEANS IN PRACTICE IS THAT WE ARE HERE TO BRING SMART CITY TECHNOLOGIES TO THE CITY OF FT. PIERCE; THIS IS THROUGH THINGS LIKE THE SMART INITIATIVE, SMART CITY NITCH ACTIVE IN THE DOWNTOWN AREA. SMART GRID THROUGH FPUA.

WE HAVE TO BUILD OUT THE FIBER IN ORDER TO DO THOSE THINGS ANYWAY. AND WHILE WE ARE IN THE PROCESS OF DOING THESE THINGS, OUR CUSTOMERS AND OUR RESIDENTS HAVE THE OPPORTUNITY AND OPTION TO CONNECT TO THAT FIBER SO THAT THEY WILL HAVE FIBER -- FIBER FAST INTERNET TO THEIR HOME ON BUSINESS.

THIS IS SOMETHING THAT CAN HELP DISTINGUISH US AS AN INTERNET SERVICE PROVIDER NOT ONLY ARE WE HERE BRINGING SMART CITY FIBER ANYWAY.

BUT ALSO WE ARE COMMUNITY FOCUSED.

AND SO WHAT YOU WILL SEE IN THE CAMPAIGNS AND I WILL GO THROUGH THEM RELATIVELY QUICKLY AS LITT OF SNEAK PEEK, NOT TO TAKE SEE MUCH TIME.

YOU WILL SEE EMPHASIS ON THE CITY OF FT. PIERCE.

ON OUR COMMUNITY AND ON OUR HOME AND THIS IDEA IF YOU CHOOSE FPUANET AS YOU INTERNET SERVICE PROVIDER EVERY MONTHS WHEN YOU PAY YOUR BILL, WHICH YOU WILL HAVE TO PAY ANYWAY YOU WOULD INVEST IN YOUR COMMUNITY AND THE SMART CITY TECHNOLOGIES OF THE COMMUNITY.

AND THAT'S WHAT WE WE MEAN BY SMART CITY INTERNET SERVICE PROVIDER. THE FIRST ONE WHY FPUANET.

LET ME BACK UP. WE'RE WORKING WITH DQTEL.

A COMPANY THAT DOES BRANDING AND MARKETING MATERIALS FOR MUNICIPAL INTERNET SERVICE PROVIDERS LIKE US.

THEY WORK WITH US TO DEVELOP PRODUCTS THAT ARE SPECIFIC TO OUR NEEDS AND TO OUR COMMUNITY.

THEY HAVE WORKED WITH US TO PUT THIS SERIES OF THINGS.

WHAT YOU CAN SEE HERE AND THE WHY FPUANET CAMPAIGN.

IT'S AN EMPHASIS ON THE CITY OF FT. PIERCE.

THERE'S IMAGE OF THE STATE OF FLORIDA AND SAYS YOUR LOCAL FIBER NETWORK IS COMING SOON.

THIS FUNCTIONS AS A BIT OF A COMING SOON ADVERTISEMENT, BUT CAN KEY KEEP GOING THROUGHOUT.

WE'RE ALSO SEEING BECAUSE FT. PIERCE DESERVES OPTIONS FOR FASTER INTERNET. NOT ONLY DO WE BRING INTERNET. YES, THERE ARE NINTERNET OPTIONS HERE. IF YOU HAVE OPTIONS, YOU USUALLY HAVE A LITTLE BIT MORE CONTROL WHAT YOU PAY FOR THAT INTERNET. AT THIS POINT, EVERYONE REALIZED ON INTERNET IN ONE FASHION OR ANOTHER.

THAT'S BUILT INTO HERE AS WELL.

OF COURSE, SALTIAIRE, 61Y SKIES AND SMART CITY.

>> THIS IS A YARD SIGN WE'RE HOPING AS WE MOVE FORWARD AND BUILD THE CUSTOMER BASE THEY WILL HAVE PROUD TO CHOSEN FPUANET AND SOMETHING THAT MAY WANT TO PUT ON THE YARD OUTSIDE THEIR HOME OR BUSINESS.

WE HAVE A YARD SIGN. THIS IS THE SALTY AIR SUNNY SKIES SMART CITY WE CAN USE. THESE ARE PRINT ADS WE CAN PIT IN MAGAZINES OR FACEBOOK.

WE DO HAVE DIFFERENT SETS OF POTENTIAL CUSTOMERS.

THIS IS THE MARINA OR WATERFRONT BASE FOR US.

THERE'S ALSO THE SPEED UP STAY LOCAL.

THIS IS MY PERSONAL FAVORITE.

IT'S SERT TILE. WE USED AVENUE D TO MAKE THE FIRST AND WHAT YOU CAN SEE HERE IS THIS IDEA FIBER

[00:25:02]

BUT WHAT WE CAN DO THE CHANGE THE IMAGE, THE BACKGROUND IMAGE TO IMAGES THROUGHOUT THE CITY OF FT. PIERCE. AS LONG AS WE CAN GET A RUNWAY FOCUS, AND WE CAN TAKE THIS AND GO THROUGHOUT DIFFERENT AREAS OF FT. PIERCE TO SHOW, HEY, THIS IS ALL OF FT. PIERCE. WE PUT TOGETHER SIGNAGE FOR THE FREE PUBLIC WIFI. AND WE'LL BE DONE BY THE END OF THIS WEEK.RIT TELLS YOU TO ACCESS THE FREE PUBLIC WIFI. WE HAVE THESE BANNERS THAT COULD GO UP ON THE LIGHT POLES.

WE LIKE THEM. AND WE WILL SEE WHAT WE CAN DO WITH THEM. WE ALSO PUT TOGETHER LOCAL SERVICE FOR LOCAL BUSINESSES CAMPAIGN.

AS JASON WAS SAYING THE CONSTRUCTION FOR DOWNTOWN FT. PIERCE IS SLATED TO BEGIN VERY SOON.

AND AS IS TRUE WITH ALL OF THE MARKETING THAT I'VE BEEN SHOWING YOU, WE ARE HOPING TO BE READY TO HIT THE GROUND RUNNING. AS WE BUILD OUT, WE ARE ALREADY READY TO WALK INTO THESE BUSINESSES AND THESE HOMES AND SHOW THEM WHAT IT IS THEY ARE SIGNING UP FOR.

AND TO ADVERTISE. SO THAT WE CAN BRING INDIVIDUALS ON. THIS IS -- JUST CAMMING LEGAL SERVICES. THE POSTCARDS ESPECIALLY ARE PHOTOS OF THE DOWNTOWN AREA. AND MOST IMPORTANTLY, I THINK IS THE WEB SITE. THIS IS A MARK UP OF THE FPUANET WEB SITE. THE MOST IMPORTANT THE BLUE RECTANGLE ON THE LEFT-HAND IMAGE.

THAT'S A CLOUD FIBER TOOL. IT ALLOWS YOU TO PUT IN THEIR ADDRESS AND WHETHER THEY ARE RESIDENT OR A BUSINESS. CLICK THE NEXT BUTTON AND IT WILL TELL THEM WHETHER OR NOT WE ALREADY OFFER SERVICE IN THAT AREA. IF WE DO NOT YET OFFER SERVICE IN THAT AREA, WE -- THEIR ADDRESS WILL BE ADDED TO A LIST. WE CAN USE THAT INFORMATION AS WE CAN CATEGORIZE TO SHOW THIS HOW MANY PEOPLE SHOWED US IN THE AREA THEY ARE INTERESTED IN INTERNET.

TELL EVERYONE TO GO IN AND PUT THE ADDRESS ON THIS WEB SITE. THAT'S OUR INDICATORS THAT WE NEED TO ADD YOU TO THE TOP PRIORITY LIST FOR BUILD OUT. THIS WILL BE TRUE FOR RESIDENTS AND BUSINESSES. THAT I THINK IS THE MOST IMPORTANT FUNCTION AS FAR AS BUILDING OUT THE UTILITY.

AND WHAT THIS WEB SITE WILL DO.

OF COURSE, IT WILL ALSO TALK ABOUT OUR COMMUNITY ENDEAVORS, THINGS LIKE LINCOLN PARK.

GIVES PRODUCT AND PRICING AND IF INTERNET IS AVAILABLE IN YOUR AREA YOU CAN SIGN UP FOR US FROM THE WEB SITE.

THIS IS SLATED TO BE DONE BEFORE THE END OF THIS MONTH. WE'LL GO LIVE AS SOON AS POSSIBLE. THAT'S MY REVIEW OF THE MARKETING STUCH IN ADDITION TO SUPPORT AND SALES FOUNDIZATION STUFF AND OF COURSE THE UTILITY BUILDOUT.

WE HAVE BEEN DOING MARKETING, COMMUNITY OUTREACH AND RECOGNITION. WE'VE BEEN -- JASON WENT TO TEXAS EARLIER THIS YEAR AND RECEIVED CORNERSTONE AWARD ON BEHALF OF FPUANET WHICH HE WAS ABLE TO PRESENT TO YOU EARLIER THIS YEAR. THAT'S A NATIONAL CONFERENCE AND EVEN THE CONTRACTORS THAT WE'VE BEEN WORKIN ARE BRAGGING ABOUT THIS AWARD WE RECEIVED.

IT'S EXCITING. WE'RE ON TWO BROADCAST IN THE LAST COUPLE MONTHS. COMMUNITY BROADBAND WAS JASON AND MR. CISNEROS. THE MAIN THING WITH THE PODCAST THEY INVITE US TO INTERVIEW ON THEM.

BECAUSE THEY ARE INTERESTED IN WHAT WE'RE DOING.

THEY ARE WATCHING US AS WE BUILT OUT THIS UTILITY FROM A MUNICIPAL PERSPECTIVE. AND THERE ARE OTHER MUNICIPALITIES THAT ARE IN SIMILAR PLACES OR CONSIDERING BEING IN SIMILAR PLACES AND THEY WANT US TO SHARE THIS INFORMATION BECAUSE WHAT WE ARE DOING IS IMPORTANT AND REAL AND NOW. IT'S EXCITING TO BE INVITED.

THE NATIONAL ARTICLES DONE JANUARY AND DECEMBER.

THOSE ARE COMMUNITY NETWORK AND BROADBAND COMMUNITIES.

THOSE TARGETED THIS UTILITY AS TRYING TO BRING AFFORDABLE FIBER AND WORKING WITH THE PARTNERS.

THAT'S MY VERY FAST VERSION OF ALL THE ABOVE.

THANK YOU VERY MUCH. >> THANK YOU RACHEL.

>> AS YOU CAN SEE THERE'S BEEN TONS OF WORK PUT INTO THE UTILITY UNIT. I WANT TO THANK RACHEL FOR

[00:30:03]

I'M EXCITED TO LAUNCH THIS. AS THE DAYS APPROACH FOR TWO YEARS YOU WORK TOWARD THIS AND IT'S AMAZING.

I WANT TO GIVE YOU QUICK LEGISLATION UPDATE.

65 BILLION DOLLARS ARE FOR BROAD WAND BAND.

IN 14.2 BILLION WAS EARMARKED FOR THE AFFORDABLE CONNECTIVITY BENEFIT THE ACP PROGRAM THAT RACHEL SPOKE ABOUT. THIS PROVIDES $30 PER MONTHS VOUCHER TO GO TOWARD RESIDENTS INTERNET SERVICE BILL. THERE'S MANY WAYS TO QUALIFY FOR IT. A FEW IF YOUR INCOME HAS TO BE 200% BELOW THE POVERTY GUIDELINES.

YOU COULD PARTICIPATE IN GOVERNMENT ASSISTANCES.

MEDICAID, WICK, IF A STUDENT APPROVED FOR BENEFITS OF FREE OR REDUCED LUNCH AT THE SCHOOL MAYBE YOU U.S. A FEDERAL PELL GRANT ALL INDIVIDUALS COULD SIGN UP TO BE ACP APPROVED INDIVIDUAL AND WE COULD BE ABLE TO PROVIDE SERVICE TO THEM. THIS IS SO IMPORTANT AS WE LAUNCH INTO LINCOLN PARK, BECAUSE THE DEMOGRAPHIC THERE MANY OF THEM WILL QUALIFY AND SO AS WE BRING IN THIS AFFORDABLE HIGH SPEED INTERNET.

ESSENTIALLY, THEY COULD GET INTERNET FOR FREE.

AND THAT'S SUPER EXCITING. AND WE REALLY FEEL LIKE AS WE LAUNCH INTO THE COMMUNITY IT WILL BE A MAJOR BENEFIT FOR THOSE INVOLVED. THE SECOND THING I WOULD LIKE TO MENTION THE FLORIDA OFFICE OF BROADBAND.

ON JULY 1ST 2020 THE DEPARTMENT WAS ESTABLISHED.

WHICH WAS CREATED FOR THE PURPOSES OF DEVELOPING MARKETING AND PROMOTING BROADBAND INTERNET SERVICE IN THE STATE. THIS DEPARTMENT WILL BE FUNNELING THAT 65 BILLION OF BROADBAND INFRASTRUCTURE MONEY DOWN TO THE COUNTIES. WE ARE CURRENTLY WORKING WITH THE COUNTIES TO HELP UNDERSTAND ALL OF THE REQUIREMENTS FOR THE GRANTS THAT MAY BE AVAILABLE TO US.

WE WANT TO THANK YOU SO HOW MUCH FOR YOUR TIME AND THE OPPORTUNITY TO GIVE YOU THIS UPDATE.

WE WOULD LOVE AND BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. I KNOW THERE'S A LOT OF

INFORMATION. >> ANY QUESTIONS OF THE

BOARD MEMBERS? >> YES.

THANK YOU, MR. CHAIRMAN. I HAVE SEVERAL QUESTIONS.

FIRST ONE WHEN WILL THE FIBER BE OFFERED THROUGHOUT FT. PIERCE? THROUGHOUT FT. PIERCE? WE'RE FOCUSED ON LINCOLN PARK.

DOWNTOWN AND THEN WITH THE BONDING THAT'S COMING ABOUT 2.8 MILLION IS EARMARKS THOSE ARE THE AREAS WE HAVE FUNDING TO BUILT OUT AT THE RATE WORKSHOP THEY WERE FOCUS INCH ON THE AIRPORT AND INDUSTRIAL PARK.

OUTSIDE OF THAT, YOU MAY SEE SMALL POCKETS, BECAUSE WHERE THE SMART CITY INTERNET PROVIDE.

THEY NEED SMART GRID SLOW LUKESS OR VARIOUS ELECTRICAL COMPONENTS. WE MAY SAY SEE A SMALL NEIGHBORHOOD, A SMALL STREET AND BUILD DOWN THAT AREA.

I CAN'T TELL YOU THAT THERE'S A SPECIFIC TIME THAT FIBER WILL BE ABLE THROUGH AT THETY.

I DON'T THINK WE HAVE THE FUNDING FOR IT.

I WANTED TO ADD TO THAT, AS WE BUILD TO THESE SPECIFIC AREAS THAT WE PLAN ON DEPLOYING.

WE WILL PICK UP THE PEOPLE ALONG IF WAY.

THE INDUSTRIAL AIRPORT PARK WE WILL PASS QUITE A FEW NEIGHBORHOODS. THE EFFORT WILL BE MADE TO PICK UP AS MANY PEOPLE AS WE CAN BE THE FUNDING ALLOWING

US TO BE ABLE TO DO THAT. >> I'M LOOKING AT DIFFERENT AREAS THAT ARE LOW INCOME IN DISTRICT ONE.

AND ARE WE GOING TO BE TARGETING THOSE AREAS SOUTH OF 29TH STREET? I MEAN, WEST OF 29TH, THERE'S A LOT OF LOW-INCOME AREAS THERE.

>> SURE. >> OUR PROJECT AREAS.

OUR 23RD STREET AREAS. ARE WE TARGETING THOSE AREAS

AFTER WE TARGET THESE AREAS. >> LINCOLN PARK IS GOOD OPTION TO BUILD INTO. RIGHT THERE SEE WHAT HAPPENS AS FAR AS TAKE RATE OF INDIVIDUALS.

FROM THERE WE CAN TARGET ANY MARKET.

AND THE BEAUTIFUL THING IS THE CROWD FIBER SITE THAT

[00:35:02]

AND SO ONE OF THE ZONES THAT I DID WAS YOUR SPEAKING ABOUT WHICH IS THE HOUSING PROJECT THERE.

FE WE COULD SET A MARKETING CAMPAIGN AND THEY COULD SUBMIT A SURVEY OR SUBMIT INTEREST AND THEN ALL OF A SUDDEN WE'VE GOT 1,000 PEOPLE IN THAT AREA THAT ARE INTERESTED, I WOULD COME TO THE BOARD AND SAY, HEY, I'VE GOT 1,000 OUT OF 2000 THAT'S INTERESTED IN FIBER INTERNET. HERE'S THE DESIGN.

AND IT'S GOING TO COST 1 MILLION TO BUILD IT.

WILL YOU APPROVE IT. AND AT THAT POINT WE WOULD DEPLOY. THAT'S THE POWER BEHIND THE CROWD FIBER SOLUTION, BECAUSE WE CAN THEN LOOK AT SPECIFIC AREAS THAT THERE'S INTEREST IN.

AND WE INTEND TO MARKET TO VARIOUS COMMUNITIES.

>> BUT THOSE ARE LOW INCOME AREAS ARE WE GOING TO OFFER THE WIFI FREE TO THEM, ALSO? BECAUSE THEY ARE IN THE SAME GORY AS THE LYNN CONGRESS PARK AREA.

WE HAVE HAD CONVERSATIONS WITH THE CITY OF FT. PIERCE.

ABOUT MAKING BRINGING PUBLIC WIFI TO VARIOUS PARKS.

MAYBE PIONEER PARK IN CONNECTION WITH THE CITY OF FT. PIERCE. MAYBE THAT'S A PARK THAT WE CHOOSE TO DEPLOY PUBLIC WIFI.

ONE OF THE THINGS WE DID AS WE BUILT THE NETWORK, WE LOOKED ALTERNATE EXPANDING THROUGHOUT EVERY PARK SO THE INFRASTRUCTURE IS THERE. IT'S JUST A FUNDING BECOMING

AVAILABLE. >> HAVE YOU GUYS HAPPENED TO REACHED OUT TO THOUSANDSING AUTHORITY TO SEE IF MAYBE THEY CAN PARTNER WITH US TO GET FIBER TO THOSE FUTURE

DEVELOPMENTS. >> NOT AT THE MOMENT.

THOSE CAN ALL BE TALKED ABILITY.

OUR FOCUS IS THE PROJECTS WE HAVE EARMARKED TODAY.

>> I WOULD LIKE TO ADD, ONE OF THE THINGS WE'RE TRYING TO DO IS FIND THE BALANCE BETWEEN BUILDING OUT A UTILITY THAT BRINGS IN REVENUE.

SO THAT IT CAN BE FUNDED IN A SUSTAINABLE WAY.

AND ALSO, BRING THESE SERVICES TO AREAS THAT MOST NEED THEM OR TO PUBLIC AREAS.

AT THIS TIME WHAT WE HAVE THE DOWNTOWN SMART CITY INITIATIVE. AND THE LINCOLN PARK SMART NEIGHBORHOOD INITIATIVE WHICH IS PARTNERSHIP WITH ST. LUCIE COUNTY AND THE CITY.

IN ADDITION TO THOSE THINGS WHAT WE TRY TO DO IS BUILD OUT OUR NETWORK TOWARDS INDIVIDUALS OR BUSINESSES THAT CAN SIGN UP AS REVENUE, OPPORTUNITIES FOR THE UTILITY. AS WE MOVE ALONG, AS WE FINISH THESE FOR EXAMPLE PILOT PROJECTS, WE MAY HAVE OPPORTUNITY TO DRA IN MOORPARKS AS ONE THAT IS AN EXISTING IDEA AND KIND OF AN TOLD TO BRING IN.

WE'RE TRYING TO BE CAREFUL HOW FAR DOWN THAT ROAD WE GO BEFORE WE ARE AN ESTABLISHED UTILITY SURFACE.

>> I WOULD LIKE TO AS IN DOWNTOWN.

THE REASON WE FOCUS ON THE DOWNTOWN AREA BECAUSE WE HAVE EXISTING CONDUIT AND FIBER.

WE CAN BE VERY SUCCESSFUL THERE VERY QUICKLY.

LINCOLN PARK IS A PARTNERSHIP WITH THE CITY OF FT. PIERCE AND THE COUNTY. EVERYBODY WANTS TO DO SOME WORK IN THAT THABD. I'M CAPACITY.

I WILL BE BASED ON THE FUNDING AVAILABLE, BUT I THINK YOUR POINT ABOUT DO WE HAVE WE PARTNERED WITH THE HOUSING AUTHORITY? HAVE WE LOOKED AT OTHER PARTNERS? NOT YET.

WE WILL. AND THAT'S A VERY GOOD POINT. WE'LL MAKE SURE TO FOCUS ON WORKING WITH THEM. MAYBE THE HOUSING AUTHORITY WE PARTNER WITH THEM AND MAYBE WE DON'T NEED FIBER.

BECAUSE THEY MAY BE COMMITTED TO DOING AS MANY OF THEIR FACILITIES AS POSSIBLE.

THAT'S SOMETHING WE CAN DEFINITELY LOOK AT.

>> I KNOW WHEN THE PANDEMIC FIRST HIT AND ALL THE STUDENTS WERE SCHOOLING REMOTELY.

A HOT TOPIC WAS THE SCHOOL BOARD WAS GIVING STUDENTS COMPUTERS BUT MANY OF THEM DIDN'T HAVE A WAY TO CONNECT TO THE INTERNET. THE HOUSING AUTHORITY PROJECT AREAS WOULD IN MY MIND BE A RIPE SPOT FOR THAT TYPE OF SERVICE TO BE OFFERED.

I UNDERSTAND THE WE'RE TRYING TO BE A BENOVELENT BUSINESS UNIT. WE CAN'T BE ONE ONLY.

THAT BEING SAID, I THINK THE HOUSING AUTHORITY COULD POTENTIALLY, WE SHOULD FLEISS TOUCH BASE WITH THEM TO SEE IF THEY WOULD PARTNER FINANCIALLY TO GET THE

SERVICES TO THOSE AREAS. >> AND ALSO, I THINK AS YOU WERE SAYING, YOU WOULD APPLY FOR MORE GRANTS.

[00:40:04]

WE CAN PIGGYBACK ON THAT. WE GIVE THE KIDS COMPUTERS.

BUT THEY GO HOME. THEY DON'T HAVE ANY WAY TO CONNECT TO THE INTERNET. BEING ABLE TO FURTHER THEIR EDUCATION ON THE INTERNET SAY GOING ONLINE AND WORKING FROM HOME. AND WE WOULD BE ABLE TO GAIN MORE GRANTS THAT WAY. I FEEL THAT IF WE TARGET THEM, I KNOW WE'RE TARGETING DOWNTOWN AREAS.

THOSE RAARE AREAS THAT WE A ACTUALLY GAINING REVENUE FROM. IF WE TARGET THE GRANTS AT THE SAME TIME, WE WILL BE ABLE TO REACH YOU KNOW REACH

MORE. >> I THINK THE BEAUTIFUL THING THAT WE HAVE GOING IS WITH THE LINCOLN PARK PROJECT AND THE NATIONAL RECOGNITION WE HAVE SPECIFICALLY AROUND LINCOLN PARK.

THE LINCOLN PARK COMMUNITY IS SIMILAR DEMOGRAPHIC.

WHEN WE BUILD IT, WE THEN HAVE PROOF THAT WE DONE IT.

WHEN WE GO TO APPLY FOR A GRANT, WHAT WILL YOU DO WITH IT? WHAT WE WILL REPEAT THE PROCESS. WE'VE GOT THE MODEL.

IF YOU HELP US WE WILL PUT MONEY IN.

YOU PUT MONEY IN. WE HAVE THE KEY AREAS.

AND ONE OF THE THINGS WE DID LAST YEAR WE DID DO AN ENTIRE HIGH-LEVEL DESIGN OF THE CITY OF FT. PIERCE.

WE UNDERSTAND FROM HIGH LEVEL HOW WE NEED TO FEED PEOPLE AND THEN WE CAN TARGET SMALL AREAS SUCH AS THE PROJECT AREA. FROM THE ENGINEERING MINDSET, WE MAKE SURE THAT WE'VE LOOKED AT THE WHOLE PIECE WHICH WE'VE DONE. AND NOW WE BEGIN TO SELECT CERTAIN AREAS SUCH AS YOU KNOW IF WE WANT YOU TO TARGET THAT. WE WILL LOOK FOR GRANTINGS.

ALL OF THOSE THINGS ARE POSSIBLE.

WE BELIEVE THE SUCCESS OF LINCOLN PARK IS GOING TO BE THE CATALYST OF PROPELLING AND MOVING FORWARD INTO

OTHER AREAS. >> ANY OTHER QUESTIONS? > MR. CHAIRMAN, I HAVE A QUESTION.

>> YOU WANTED TO GO FIRST. GO RIGHT AHEAD.

>> FIRST OF ALL, ON THE ARTICLES -- DID YOU SEND -- I THINK I ASKED FOR THE ARTICLES FOR -- WHERE THEY SENT? AND I MISSED THEM?

I DON'T KNOW. >> I SENT THEM TO JILL.

>> THEY WERE. >> I CAN RE-SEND THEM FOR

YOU. >> WAS THAT A PODCAST OR

BROADCAST? >> TWO PODCAST --

>> WAS THERE A LINK? I THINK WHATEVER JASON

PROVIDED ME, YES. >> I WILL RE-SEND THEM

TOMORROW. >> I MISSED THAT.

SORRY. >> YOU'RE ALL RIGHTING STARTING IN LINCOLN PARK ANYWAY.

IT'S JUST A SMALLER AREA TO START WITH.

>> AND SO WHEN THE MOU WAS ORIGINALLY BROUGHT ABOUT IT WAS MORE OF A CONCEPT. IT WASN'T COST ESTIMATES AND THE TECHNOLOGY WAS DIFFERENT.

WHEN WE BROUGHT IN AND WE DID THE EVALUATION, WE LOOKED AT WHAT COULD BE DONE.

AND THAT'S WHEN WE DECIDED TO SELECT THAT AREA THAT WOULD WORK WITHIN THAT 1.2 MILLION DOLLARS.

AND THEN WE ALSO SAID, YOU KNOW, PUBLIC WIFI IS NOT REALLY A SERVICE THAT SOLD. IT'S MORE OF A SERVICE THAT'S OFFERED FOR FREE AND AREAS THAT PEOPLE CONCREGATE SUCH AS THE SAMSY COUNTY TRANSIT FELT.

THERE'S PLENTY OF PEOPLE THAT CAN CONNECT.

THE COMMUNITY COMES OUT. THEY CAN CONNECT.

THE COMMUNITY CENTER IS GREAT AREA WHERE PEOPLE CAN CONNECT. AS THE GROUP OF PARTNERS WE FELT THAT WAS A BETTER OBJECTIVE.

A BITTER VISION FOR US TO MOVE INTO.

BUT WHAT WE DID DO AS PART OF THE FIBER INSTALLATION.

THERE'S ANOTHER OVERBUILD TOI ING OF IT. WHEN THIS PROJECT IS SUCCESSFUL. WE CAN MARKET AND TARGETING GRANTS AND SAY WE'VE DONE IT HERE.

WE'LL DO IT HERE. >> THAT WAS MY QUESTION.

I THINK I GET MIXED UP WITH ALL THE FEDERAL BILLS THAT

[00:45:03]

DO WE HAVE ANY INFORMATION ON THAT.

>> YES, THE INFRASTRUCTURE BILL IS GIANT BEAST OF A THING. FMEA, I BELIEVE ACTUALLY CAME TOGETHER WITH ALL OF THE MUNICIPALITIES THAT ARE PART OF IT. BROUGHT ON A CONTRACTOR SPECIFICALLY AND ONLY TO SORT THROUGH THE INFRASTRUCTURE BILL FOR ALL OF US AND PROVIDE US WITH A DIGESTIBLE LIST OF WHAT EXACTLY IS IN THAT BILL.

FIBER IS ONE THING IN IS THERE.

TO WHOM DOES IT APPLY. THERE'S SOME LIMITATIONS.

WE'RE NOT SURE HOW FAR THE LIMITATIONS GO.

IT OF COURSE COVERS, INFRASTRUCTURE MONEY FOR OTHER THINGS. THAT IS COMING OUT I THINK THIS MONTH OR NEXT MONTH WILL BE THE FIRST OUTPUT FROM THAT CONTRACTOR. THAT BILL PROVIDE TO ALL OF THE FMEA MEMBERS. THAT'S OUR FIRST CHANCE TO SIT DOWN AND HAVE SOMETHING DIGESTIBLE --

>> I WAS THINKING IN TERMS OF WHAT MISS BENNETTS ASKING ABOUT. THAT MAY BE A SOURCE OF HOW

TO DO IT FURTHER. >> THE INFRASTRUCTURE BILL SINCE WE DON'T. IT'S A BEAST.

WE DON'T REALLY KNOW WHAT'S IN IT AND WHO QUALIFIES.

>> RACHEL, CORRECT ME IF I'M WRONG.

I THINK WE JUST HIRED THE CONTRACTOR LAST MONTH OR MAY HAVE BEEN MID-APRIL. THE CONTRACTOR JUST BEEN PUT ON THE TASK TO BE ABLE TO DO THIS.

WE LOOK TO GET SOME GOOD INFORMATION FROM THE

CONSULTANT. >> AND IT WILL START OFF WITH AN ONGOING LIST. THERE'S THE OPTION OF US CONTRACTING WITH THEM DIRECTLY IF WE SEE A NEED TO HAVE MORE SUPPORT FOR ANY OF THE FEDERAL FUNDING.

BECAUSE A LOT OF TIME FEDERAL FUNDING CAN BE VERY, VERY CUMBERSOME. THERE'S SOME OPTIONS HERE.

>> OH, YEAH. I WENT ON THE WEB SITE FOR FMEA FOR THE PROGRAM, FOR THE CONFERENCE.

I THINK THERE'S SOMEONE TALKING ABOUT FIBER.

>> I THINK YOU'RE RIGHT. I THINK YOU'RE RIGHT.

YEP. >> I'M EXCITED A THIS PROJECT. THIS IS WHY I'M ON THE BOARD. I'M THRILLED TO HERE THE GROWTH AND IF ACTION ITEMS WE HAVE IN FRONT OF US.

THERE WERE A FEW THINGS THAT AS YOU WERE PRESENTING I MIGHT BE A LITTLE BIT DIFFERENT THAN WHAT WE HAD IN FRONT OF US. THE ZONES I JUST WANTED TO ASK ABOUT THAT. YOU'VE GOTTEN THE DOWNTOWN AREA. IT LOOKED LIKE ZONE ONE AND TWO ON OUR SCREEN ARE FLIPPED.

>> YES. THEY ARE, I APOLOGIZE.

>> WHICH ONE IS CORRECT? >> THE ONE ON THE SCREEN.

THE FIRST ZONE BEING CURRENTLY COMPLETED AND DESIGNED AND WILL MOVE INTO CONSTRUCTION.

WHICH DOESN'T INCLUDE YOUR LOCATION.

I'M SORRY. IS FROM AVENUE C TO ORANGE AVENUE. THAT'S REALLY GOING TO IMPACT THE COMMUNITY THE DOWNTOWN AREA AS FAR AS TOURISM AND THINGS. THE SECOND ZONE FROM ORANGE AVENUE TO CITRUS AND THEN THE FINAL ZONE WOULD BE FROM

AVENUE C OUT TOWARD SEEWAY. >> DID WE NOT WANT TO PUT

ONE BY THE PARKING GARAGE? >> WE HAVE LIMITED -- BECAUSE OF THE CONTRACT AND THE VENDORS, THEY OWN IT. THAT'S WHAT THEY DO.

THIS IS THERE BUSINESS. AND SO IT'S A REVENUE SHARE MODEL. THEY WALKED DOWNTOWN.

THEY ARE THE ONES THAT SAY, THIS IS WHERE WE NEED IT TO GET THE REVENUE. AND IT WORKS WITHIN THE WALKING AREAS. AND SO THIS IS WHAT THEIR SUGGESTIONS WERE THAT WORKED WITH YOU KNOW FOR EXAMPLE WE WOULD LOVE TO HAVE ONE ON THE CORNER OF SECOND STREET

[00:50:02]

MAKE SURE WE'RE CERTAIN DISTANCES AWAY FROM FIBER HYDRANTS. THIS IS THE AREA THAT SEEM TO WORK BEST BETWEEN US AND THEM.

>> WE'RE JUST TRYING I KNOW AS THE CITY WE TRY TO DRIVE PEOPLE LITERALLY DRIVE THEM INTO THE PARKING GARAGE.

BECAUSE WE ALREADY HAVE A PARKING PROBLEM.

I'M ONLY ASKING BECAUSE THAT WOULD GIVE THEM AN OPPORTUNITY RIGHT THEN AND THERE TO BE ABLE TO BE AT KIOSK TO FIND OUT WHAT IS GOING ON AS THE ENTRANCE

INTO THE DOWNTOWN AREA. >> SURE.

>> WE'VE TALKED TO THEM ABOUT WHEN WE WALKED IT ONE TIME. WE WALKED BY THAT.

THAT'S -- THIS IS THE AREA THAT THEY FEEL IS GOING TO

BRING -- >> TYPICALLY YOU HAVE MORE PEOPLE THERE CONCREGATING FOR SURE.

>> THIS SAME VENDOR IS THE INDIVIDUAL THAT HAS BEEN IN ORLANDO. MIDTOWN, MIAMI.

THEY ARE DOING TAMPA. THEY'VE DONE CORAL GABLES.

CAPE GORAL, SORRY. THEY'VE LOOKED AT THE MARKET. THIS IS WHAT THEY DO.

THEY HAVE DIVISION ANY AND COKE -- DISNEY AND COKE AND PEPSI. THE KIOSKS ARE BETWEEN 80 TO $120,000 DEPENDING ON SIZES. IT DOESN'T COST US ANYTHING.

WE JUST BRING THE INFRASTRUCTURE TO IT.

>> RIGHT. >> THE KIOSKS, ARE THEY KIN

AS WELL? >> NO.

>> I MEAN, THE FREE PUBLIC WIFI IS ON ORANGE AVENUE AND WE'RE NOT GOING TO HAVE ANY PUBLIC WIFI.

YOU MAY WANT TO RETHINK THE PICTURE THAT IS ASSOCIATED WITH IT ON THE FREE PUBLIC WIFI PAGE.

THE ADVERTISEMENT PART OF IT.

>> I SEE WHAT YOU ARE SAYING.

I GOT YOU. >> UNDERSTOOD.

SHE'S REFERRING TO THE SLIDE ITSELF.

>> OKAY. THESE ARE JUST MARKUPS THAT COULD CHANGE THE PICTURE OF IT.

AND SO I THINK THERE WILL BE WIFI THAT WILL BE SPREAD OUT TOWARD THE SOUTH OF ORANGE AVENUE WITH THE ACCESS POINTS AND COULD BE EASILY EXTENDED.

THE CHALLENGE WHEN WE LOOKED AT THE DESIGN, I COULD BE SPOTTY. I COULD COME AND GO.

WIRELESS IS ALWAYS THAT WAY. SOMETIMES IT'S THERE.

SOMETIMES IT'S NOT. THERE'S TOO MUCH SALT IN THE AIR. ALL THESE THINGS CAN CHANGE THE DYNAMICS. WE'RE TRYING TO PROVIDE A SUSTAINABLE RELIABILITY CONNECTIVITY.

IT'S OUR NAME ON IT. THAT'S WHO FPUA IS AS THE UTILITY. THAT'S WHO WE ARE AS THE INTERNET SERVICE PROVIDER. THE PRICING ON HERE IS PROBABLY NOT ACCURATE, THEN IF I HEARD YOU CORRECTLY WHEN YOU SAID THE VOUCHERS WOULD COVER THE COST.

SO THAT THERE MAY BE OTHER LEVELS THAT ARE NOT ONLY THIS. THOSE ARE THE COMMERCIAL PRICING. I WANTED TO MAKE SURE THAT WE ARE STILL GOING TO BE ABLE TO OFFER IT RESIDENTIAL FOR A LOWER RATE AND BE ABLE --

>> YOU APPROVED I THINK BACK IN DECEMBER OR JANUARY.

WE DIDN'T WENT TO CITY COMMISSION IN FEBRUARY I BELIEVE FOR THE APPROVAL. OUR CURRENT RATES FROM $49 AND WE'RE CAREFULLY LOOKING AT TRYING TO OFFER A $30 RATE AND LOOKING AT THE BUSINESS PLAN AND SEE SO THAT THOSE INDIVIDUALS THAT QUALIFY FOR THE ACP COULD

ACCESS THAT. >> RIGHT.

>> WE DO BELIEVE IN LINCOLN PARK BECAUSE OF THE CAPITAL BEING FUNDED FROM OTHER PARTNERS THAT WE'LL BE ABLE TO OFFER THOSE TYPE OF RATES.

IN THE RESOLUTION WE INCLUDED A PROMOTIONAL RATE.

THOSE ARE THINGS THAT WE'RE CAREFULLY LOOKING AT.

IN THE NEXT FEW MONTHS YOU MAY SEE US COME BACK TO DO READJUSTMENTS NOT TO INCREASE THE RATES BUT JUST TO TAKE A LOOK AT SOME THINGS ADD SOME FEES OR VARIOUS SERVICES SUCH AS WIFI EXTENDER.

THIS IS A VAST THING. WE WANTED TO GET SOME RATES OUT THERE. WE'RE LOOKING AT THE BOND APPROVAL. WE NEEDED TO HAVE SOMETHING THAT WE KNEW WOULD WORK EVERY DAY I'M LEARNING SOMETHING. EVERY DAY WE'RE GROWING.

EVERY DAY THIS THING IS LIKE YOU'RE SWIMMING IN THE

[00:55:05]

OCEAN. >> I HAVE ONE MORE QUESTION.

>> ONE MORE. >> OKAY.

>> I HAVE TWO. >> MOST OF THE KIOSKS ARE ON THE EAST SIDE. DID THE COMPANY LOOK TO SEE WHERE HE COULD PLACE THEM ON THE WEST SIDE?

>> IF NOT WILL HE LOOK AT WHERE HE CAN PUT A KIOSK ON THE WEST SIDE. AND WHO IS THE NEW VENDOR.

>> THE NEW VENDOR IS LIQUID OUTDOORS.

>> AGAIN THEY LOOKED AT THE ENTIRE DOWNTOWN.

OBVIOUSLY IT SEEMS LIKE FOR THE BOARD'S PLEASURE WOULD BE SOMETHING MAYBE A LITTLE BIT FURTHER WEST.

I HAVE A MEETING WITH THEM THURSDAY.

I WILL MENTION IT TO THEM. IS THERE A POSSIBILITY FOR US TO LOOK AT I THIS IS THERE BUSINESS MODEL.

THIS IS WHAT THEY'VE DONE AND KNOW.

THEY ARE IN DIGITAL ADVERTISING.

AND ONE OF THE BEAUTIFUL THINGS ABOUT THE REVENUE SHARE AGREEMENT. WE'RE GOING TO BE RECEIVING REVENUE FOR THIS. AND THOSE MONIES WILL BE ALLOCATED TOWARD SMART CITY INITIATIVES SUCH AS PAYING FOR PUBLIC WIF I. EVERYONE WANTS PARK CITY.

NO ONE WANT TO PAY FOR IT. WE'RE BRINGING CREATIVE SOLUTIONS TO HELP MONATIZE IT AND PAY FOR ITSELF.

>> CAN YOU BRING THE SLIDE BACK UP WITH THE PRICING FOR ME? CONCERNING THE COMMERCIAL PLANS. I CAN'T REALLY READ IT.

IT'S KIND OF SMALL. YOU HAVE LOOKS LIKE 100 BY 100 MAPS. IS THAT THE SPEED THAT YOU ARE OFFERING? THE FIBER OPTIC CABLE BROKEN DOWN INTO SPEEDS THAT YOU WANT TO GET INFORMATION ON.

IS THAT THE WAY YOU UNDERSTAND IT.

>> WE'RE OFFERING DIFFERENT SPEED TIERS.

THE MAJOR DIFFERENCE BETWEEN US AND ANY OTHER PROVIDER THAT'S NOT COMPLETELY FIBER IS IS THE SECOND NUMBER. OFTENTIMES WHEN YOU LOOK AT ANOTHER CABLE PROVIDER, THEY WILL GIVE YOU A GIG.

1,000 MEG MEGA BITS. SAME SPEED DOWN AND UP IN TODAY'S WORLD THE NEW TECHNOLOGY SUCH AS ZOOM OR ANYWHERE THAT YOU ARE SENDING INFORMATION FROM WHERE YOU ARE TO ANOTHER LOCATION, THAT'S CONSIDERED UPLOAD. OUR SPEED ALSO BE SYMMETRICAL, WHICH IS GREAT FOR BUSINESSES ESPECIALLY ENGINEERING FIRMS OR PEOPLE THAT ARE SENDING OR RECEIVING. YOU ARE A LAW FIRM THAT NEEDS TO SEND A LARGE DATA POCKET.

>> A LOT OF THAT. NO PROBLEM.

THAT'S WHAT WE SPECIALIZE IN.

THAT'S THE MAJOR DIFFERENCE IN US AND BETTER RELIABILITY BECAUSE WE DON'T HAVE ANY EQUIPMENT IN THE FIELD.

IT'S NOT IMPACTED BY POWER. IF THEY PLUG IT INTO BATTERY, THEN NOTHING ELSE WILL.

WHAT'S THE MAIN DIFFERENCE BETWEEN PREMIUM AND GATE KWEKT? PREMIUM IS 5500MEGABITS PER

SECOND. >> I CAN TELL YOU THAT ANY OTHER PROVIDER IN TODAY'S TERM WE CAN MATCH THE SPEEDS AT THE HOME. WE'RE NOT RELEASING THOSE ADDITIONAL TYPES OF TIERS. WE DON'T SEE THE NEED.

IF THE NEED ARISES, WE CAN DO IT.

WILL THE PLANS BE COMPETITIVE OR IF NOT BETTER WITH COMCAST AND AT&T. THEY ARE BETTER.

>> COMPETITIVE WITH A PROVIDER THAT'S PROVIDING FIBER TO THE BUSINESS OR HOME.

THANK YOU VERY MUCH FOR YOUR PRESENTATION.

>> THANK YOU. >> THANK YOU, JAYSON AND

[G.2. FPUA – Rising Energy Costs from FMPA – For Information Only]

TODAY WE HAVE FMPA WHO WILL COPRESENT THE ITEM.

>> IT'S A PLEASURE TO BE HERE TODAY.

WE HAD A CONFLICT. WE'RE DOING PRESENTATIONS

[01:00:02]

TAKE YOU THROUGH SOME OF THE WHY, WHY THAT'S OCCURRING AND LOOK AT SOME OPPORTUNITIES TO PROVIDE SOME PRICE CERTAINTY AROUND NATURAL GAS.

IF YOU LOOK WHERE WE ARE COMING BACK THROUGH THE POST COVID AREA, ENERGY COST ARE ONE ASPECT.

BUT THEY ARE DRIVING INFLATION.

TYPICAL FAMILY SPEND 4,000 OR MORE JUST FOR ENERGY IN 2022. ON TOP OF LIKELY A 3-4 #,000 INCREASE IN THE COST OF OTHER GOODS AND SERVICES LIKE GROCERIES, WE'RE SEEING FLORIDIAN PAYING 15 TO 30% HIGHER ENERGY ELECTRIC PRICES.

AND IN FLORIDA, 70 TO 80% OF THE ELECTRIC GENERATION IS FROM NATURAL GAS. THAT'S OUR PRIMARY FUEL SOURCE. WE'LL TALK A LITTLE BIT ABOUT HOW ACROSS THE COUNTRY HISTORICALLY WE WOULD HAVE HAD COAL RESOURCES PICK UP THE SLACK.

AS A RESULT OF INFRASTRUCTURE CHALLENES, WE DON'T HAVE THE SUBSTITUTE EFFECT ANY LONGER TO THE EXTENT THAT WE HAD IT IN PRIOR PERIODS.

THIS CHART IS A LOT TO FOLLOW.

IF YOU LOOK AT THE FAR LEFT, IF YOU WERE TO TAKE THE PRICE OF 1 MILLION UNIT OF NATURAL GAS IN 2021 DIVIDE IT BY ITSELF. YOU WOULD GET ONE.

THE IDEA TO INDEX THE RISE IN PRICES, SINCE THE BEGINNING OF LAST YEAR AND UNFORTUNATELY, EVERY SINGLE CURVE, ALL THE KEY COMMODITIES THAT DRIVE ENERGY PRODUCTION ARE UP. THE BIG ONE OF FOCUS IS NATURAL GAS. WE PUT IN THE JUNIPER PREVAILING AVERAGE. IT'S STILL EARLY IN JUNE.

THAT SAYS IT'S ABOUT 3.6 TIMES AS EXPENSIVE PER UNIT OF GAS TODAY RELATIVE TO JANUARY OF 2021.

A LOT OF THE INFRASTRUCTURE HAS YET TO PICK UP.

WE ALSO HAVE A REDUCTION IN THE NUMBER OF WELLS VERSES WHAT WE HAD PRIOR TO THE PANDEMIC.

AND IN ADDITION TO THAT, EUROPEAN DEMAND FOR NATURAL GAS HAS SKYROCKETED AS A RESULT OF THE GEOPOLITICAL ISSUES THAT WE'VE SEEN AND URRYEFIED NATIONAL GAS TERMINALS ARE AT FULL CAPACITY.

ALL OF THE GAS THAT CAN BE EXPORTED ELSEWHERE IS BEING EXPORTED. FURTHER EXACERBATES THE SITUATION FOR US. AGRICULTURE PRICES ARE ALSO UP. IF YOU LOOK WHAT'S HAPPENING IN GROCERY STORES, FERTILIZER PRICES, THERE'S A GLOBAL DEPENDANSY ON THE RAW MATERIALS.

SOME OF THESE RAW MATERIALS ARE PRODUCED EXTERNALLY TO THE UNITED STATES. THAT IMPORT/EXPORT DYNAMIC HAS US DEALING WITH HIGH AGRICULTURE AND FOOD PRICES AT THE SAME TIME WE DEAL WITH THE ENERGY PRICE INCREASES. AGAIN, UNFORTUNATELY, NO GOOD NEWS HERE. IF YOU LOOK AT WHERE NATURAL GAS PRICES ARE THE RED CURVE WAS THE MARKET PRICE OF NATURAL GAS, OVER THE PERIOD OF APRIL OF 2021, THROUGH MAY 12TH OF 2021. WHEN WE SET OUR BUDGET FOR THE FISCAL PERIOD WE TAKE AN AVERAGE OF WHAT WE THINK THE MARKET WILL TRANSACT AND WE PLAN TO PURCHASE GAS ON THE FIRST OF THE MONTH. .

THAT'S WHERE NATURAL GAS PRICES WERE WHEN WE SET THE BUDGET. UNFORTUNATELY IF YOU LOOK AT THE BLUE CURVE AT THE TOP OF SCREEN, THE CONTRACT IS ALMOST $4 ABOVE WHERE WE WERE WHEN WE SET THE BUDGET.

AND THIS IS AS OF THE END OF LAST MONTH.

AND YOU CAN SEE THAT THERE'S A CLEAR TENDENCY TO INCREASE PRICES AND THE FORWARD CURVE AS OF THIS MORNING UNFORTUNATELY IS CLOSER TO $9.

VERY SIGNIFICANT SPREAD IN NATURAL GAS PRICES, WHICH, AGAIN, IS PRIMARY DRIVER OF OUR ENERGY PRICES.

IF YOU LOOK AT WHERE THE FUTURES CURVE IS.

THIS AN INDICATION OF THE PRICES THAT BY THE MARKET IS TRANSACTING FOR THE FUTURE PERIOD AS OF TODAY.

YOU CAN SEE A PRETTY STEEP AND SUBSTANTIAL DROP AFTER WINTER OF 2023. COUPLE OF REASONS FOR THAT.

TYPICALLY, THE VOLUME OF TRANSACTION DECLINES AS YOU GO OUT IN TIME. THE MARKET IS NOT MOVING AS MUCH VOLUME OF NATURAL GAS. AND TYPICALLY, WHEN PURCHASERS ARE LOOKING AT HOW MUCH GAS THEY NEED TO PURCHASE THEY ARE LOOKING MORE TOWARDS A SEASON TO THE FUTURE. THERE'S AN OPPORTUNITY AND WE'LL TALK ABOUT IT LATER ON IN THE PRESENTATION, TO

[01:05:04]

BUT SINCE THE PANDEMIC AND YOU CAN SEE MONTHLY AVERAGE NATURAL GAS PRODUCTION IN RED LINE REALLY DECLINES SIGNIFICANTLY THROUGH THE PANDEMIC AND HAS YET TO REALLY GET TO THE LEVEL THAT WE WE NEED TO BE DESPITE THE FACT THAT WEST TEXAS IMMEDIATE CRUDE WHICH IS MARKET INDICATOR OF OIL PRICES HAS TRADITIONALLY BEEN THE IMPETUS FOR PROVIDERS TO SAY I WILL GO OUT AND GENERATE MORE SUPPLY.

I SEE PRICING IN THE MARKET. THE PANDEMIC STARTED IN EARNEST IN EARLY 2020. YOU CAN SEE THEM DRA MALTCALLY DECLINING. ACTIVITY GROUND TO A HALT.

AND OIL PRICES ALSO GREATER AS WE START TO COME OUT OF THE PANDEMIC. THAT RELATIONSHIP HAS NOT KEPT UP. THE OIL PRICES HAVE COME UP WELL BEYOND WHERE THEY WERE THREE YEARS BEFORE THE PANDEMIC. SUPPLY CHAIN HAS NOT KEPT UP. YOU CAN SEE WE'RE PROBABLY SHORT AS MANY AS 300 OR MORE WELLS IF WE WERE TO GET A PRICE EQUILIBRIUM WE WOULD LIKE TO SO WITH LOWER PRICES AS A RESULT OF SUPPLY LEAKING AT.

A LOT OF THE NATURAL GAS THAT'S USED ACROSS THE COUNTRY IN THE CONTEXT OF POWER DELIVERY IS IMMUNE TO PRICE INCREASES. NATURAL GAS USE BY SECTOR.

POWER GENERATION THAT'S WHAT'S KEEPING THE LIGHTS ON. UTILITIES LIKE YOURSELVES, ACROSS ALL OF FMPA MEMBERS WHATEVER BUSINESS MODEL YOU ARE IN YOU WILL PRICE OF FUEL TO PROVIDE RELIABLE SERVICE. THERE'S A RISK AS INFLATION CONTINUES. THE QUESTION I ALWAYS GET WHAT HAPPENS IF THERE'S A MILD RECESSION.

CERTAINLY SOMETHING WE FOCUS ON AND MONITOR.

37% OF THAT GAS USE YOU ARE NOT GOING TO SEE A DRAMATIC DECLINE BEYOND MAYBE 4 TO 5% AS A RESULT OF DEMAND.

LIKEWISE IN THE INDUSTRIAL SECTOR, WE DON'T HAVE A TON OF HEAVY INDUSTRIAL LOAD IN FLORIDA.

BUSINESSES HAVE TO CONTINUE TO USE THE FUELS AVAILABLE TO THEM. YOU MAY SEE SOME ADDITIONAL POTENTIAL FOR DEMAND ADJUSTMENT IN THE ■SMALL COMMERCIAL RESIDENTIAL SECTOR.

BUT, AGAIN, NOT A LOT YOU CAN DO ABOUT THAT IN THE SHORT-TERM. ON THE FLIP SIDE IF YOU LOOK AT OIL USE. TWO THIRDS OF THAT IS TRANSPORTATION. IT'S PEOPLE PUTTING GAS IN THEIR VEHICLES. THERE IS MORE OF AN OPPORTUNITY THERE TO TRY TO MANAGE YOUR CONSUMPTION IN THE SHORT-TERM. DRIVING LESS.

MAYBE NOT TAKING THE LONGER-TERM VACATION OR LONGER MILEAGE VACATION YOU WERE PLANNING ON.

CARPOOLING AND THINGS OF THAT NATURE.

CHALLENGING TIMES BUT I THINK OUR PERSPECTIVE IS THAT TRANSPORT USE IS UP. OIL WILL ACTUALLY DECLINE MORE SO AND HAVE THE ABILITY TO DECLINE MORE SO IN NEAR TERM THAN ELECTRIC USE. CERTAINLY CONSERVATION IS AN OPPORTUNITY OUR TEAM HAS DEVELOPED SOME COLLATERAL TO HELP CUSTOMERS. THERE'S NOT A LOT YOU CAN DO WITH THAT IN THE NEAR TERM. AS YOU WOULD EXPECT WITH SUPPLY NOT KEEPING UP WITH DEMAND.

GAS STORAGE INVENTORY IS LOW.

THE RED LINE WHERE INVENTORIES WERE IN 2021.

AND THEN PROJECTED 2022 INVENTORY AS WELL AS THE FIVE-YEAR AVERAGE WHICH IS THE BAND AROUND THE LINES.

WERE TRENDING WELL BELOW WHERE WE WOULD ORDINARILY BE. IT'S CONTINUING TO BE LOWER THAN EXPECTATIONS OVERALL FOR THE 2022 GAS INJECTION SEASON. WE'RE PROJECTED TO REMAIN LOWER THAN WE SHOULD BE. JUST PIVOTING TO AN OPPORTUNITY AS WE LOOK AT THESE PRICE CHALLENGES, ONE OF THE OPPORTUNITIES THAT POTENTIALLY IN PLACE TO LOOK AT FIXED PRICE NATURAL GAS CERTAINLY NOT OVER THE

[01:10:03]

BUT IF YOU LOOK BEYOND THAT AND WE CAN GO BACK TO THAT GAS FORWARD SLIDE HERE IN A SECOND.

IF YOU WERE TO POTENTIALLY PURSUE FIXED PRICE GAS FOR SOME PORTION OF YOUR VOLUMES WHETHER 50% OF TYPICAL GAS USE ON SEASONAL BASIS OR 25%.

THAT WOULD PROVIDE SOME PROTECTION THAT SAYS, I DON'T LIKE THE 9, 10, $11 BUT MY CUSTOMERS CAN BE COMFORTABLE BY THE $6 GAS ENVIRONMENT AND THERE'S SOME POTENTIAL VALUE THERE THAT WE COULD TRANSACTS.

WHICH IS FMBA ASPIRATIONAL TARGET TO TRY TO KEEP THE WHOLESALE POWER BILL AS $70 OR LOWER.

UNFORTUNATELY, IF IT WAS 10 TO $13 OUR EXECUTIVE TEAM WOULD AGREE WITH ETHAT WOULD NOT SURPRISE THEM AT ALL GIVEN WHAT WE ARE SEEING. THE CONCEPT IN TERMS OF FIXING A PORTION OF THAT IS AT WHAT LEVEL OF WHOLESALE COST AM I COMFORTABLE THAT I PROVIDED SOME VOLUME OF PROTECTION TO THE CUSTOMER IN THE CONTEXT OF WHAT THEY CAN EXPECT ON THEIR BILL AS OPPOSED TO SOME OF THE VOLATILITY THAT WE ARE SEEING IN THE STOCK MARKET.

THIS GIVES YOU BETTER UNDERSTANDING OF THAT CONCEPT. THE FIRST ROW IS THE SAME AS THE PRIOR SLIDE. IF GAS IS $3 BETWEEN APRIL OF THIS YEAR AND MARCH OF 2024.

WE EXPECT WHOLESALE PRICES TO BE IN LINE WITH THREE T FOUR YEARS. IF YOU THINK ABOUT 30 TO 40 IN MEGAWAT HOUR FOR TYPICAL RESTAURANT THAT USES 1,000 KILOWATT HOURS A MONTHS. THAT'S AS MUCH AS $360 PER YEAR THEY WOULD HAVE TO COVER.

THE IDEA BEHIND THE FIXED GAS AT SOME VARYING AMOUNT.

I LIKE THE PRICE FROM APRIL TO MARCH THAT I CAN SECURE TODAY OR IN THE NEAR TERM AND THAT CAN HELP MITIGATE THE AVERAGE COST OVER THE FUTURE PERIOD OF TIME.

AND IF YOU LOOK AT THE LAST TWO ROWS, IF GAS PRICES WERE TO COME BACK TO $3, AND WERE TO RETURN TO WHERE THEY ORY I WILL BE AND WHAT YOU'VE BEEN USED TO SEEING AND YOU HAD A CERTAIN AMOUNT OF FIXED GAS EMBEDDED IF YOUR PORTFOLIO, YOU WOULD NOW BE SIGNIFICANTLY WORSE OFF BECAUSE THE CURRENT FORWARD PRICES ARE SUCH IF YOU PAIR THEM WITH THE GAS UNITS, TREASURE COAST, ET CETERA.

YOU END UP WITH A FIXED PRICE THAT'S VERY SIMILAR TO OUR AVERAGE COST INCLUSIVE OF SOME AMOUNT OF COAL GENERATION THAT'S STILL EXISTS IN OUR PORTFOLIO.

IN PRICES CONTINUE TO CREEP UP.

THIS INFORMATION I WILL BE HONEST CHANGES EVERY DAY.

I LOOK AT IT EVERY DAY. IT'S NOT COMFORTABLE TO LOOK AT THIS. IF YOU LOOK AT THE RED CURVE. AS YOU MOVE FURTHER UP, YOU CAN SEE THAT THE NEAR TERM PRICES HAVE MOVED AGAIN 360 A MILLION OR AS MUCH AS $4 A MILLION BY THE TIME THIS WEEK WILL BE OVER FOR THIS SUMMER OF '22.

WE'RE NOT SUGGESTING IN SUMMER OF '22 THERE'S MUCH WE CAN DO TO FIX PRICES FOR OUR BENEFIT.

IF YOU LOOK AT THE BACK HALF OF THE CURVE IN THE SPRING OF 23 AND BEYOND YOU'RE SEEING SOME OPPORTUNITY TO LOOK AT THOSE PRICES AND SAY I MIGHT BE COMFORT FIXING A PORTION OF THOSE PRICES WHICH THEN PROVIDE CERTAINTY TO RETAIL CUSTOMER OF WHAT TERM OF FUEL PASS THROUGH THEY CAN EXPECT. IN THE CONTEXT OF INCOME; FLORIDA CUSTOMERS ARE WELL BELOW THE U.S. AND STATE

[01:15:02]

MUNICIPAL SYSTEMS SEEMING TO BE WELL BELOW THAT AVERAGE.

WE ARE VERY MUCH SENSITIVE TO ELECTRIC PRICES BECAUSE IN FLORIDA BECAUSE OF SPACE CONDITIONING NEEDS PREDOMINANTLY WE USE MORE ENERGY THAN OTHER PLACES THAT MIGHT BE HIGHER AVERAGE COST.

IF YOU LIVE IN CALIFORNIA OR NEW YORK THEIR AVERAGE ARE MULTIPLES HIRES THAN OUR BUT THEIR CONSUMPTION IS LOWER.

BECAUSE WE USE MORE, IT'S MUCH MORE IMPORTANT TO TRY TO DO EVERYTHING WE CAN TO KEEP COST AS REASONABLE AS

POSSIBLE FOR FAMILIES. >> FLORIDA MAJOR UTILITY MOVED THE RATES UP. THE POWER COST ADJUSTMENT IS A PASS THROUGH. THERE'S NO MARGIN.

THERE'S NO PROFIT BUILT IN. IT'S PASSING THROUGH COST OF FUEL. THIS CHART HERE THE RED DOTS THAT YOU SEE ON THE SCREEN ARE WHERE PRICES WERE IN MARCH OF LAST YEAR. A LITTLE BIT OVER A YEAR AGO. AND YOU CAN SEE FOR THE VAST MAJORITY OF RESIDENTIAL CONSUMERS, PRICES HAVE GONE UP MATERIALLY. AND ONE QUESTION THAT I KNOW IS ON EVERYONE'S MIND WHAT IS FLORIDA POWER & LIGHT DOING OR THINKING ABOUT DOING.

THERE'S AN ARTICLE THAT CAME OUT AS OF LAST MONTHS THEY WERE AT LEAST 10% UNDER RECOVERED ON THEIR FUEL PRICES. WE'LL KNOW MORE IN THE JULY TIME FRAME WHEN THEY REPORT BACK ON HOW FAR UNDER CORRECTED DAY ARE. WE WOULD EXPECT A 4 TO 5 PER KILOWATT RANGE OF ADJUSTMENT ON FPL'S BILLS.

EVERY UTILITY IN STATE OF FLORIDA IS EXPOSED.

FLORIDA POWER & LIGHT IS NO DIFFERENT.

THEY ARE ROUGHLY 70% GAS. NOT UNLIKE WHAT WE HAVE FMPA. WE ARE DOING SOME THINGS TO MITIGATE IMPACT ON OUR CUSTOMERS.

JUST GO OVER THESE AT HIGH LEVEL.

HIGH GENERATION AVAILABILITY.

TREASURE COAST KEENE ISLAND. WONDERFUL RESOURCES.

VERY HIGH AVAILABILITY FACTORS.

OUR AVAILABILITY OUT PERFOR TIME AND AGAIN.

WHY IS THAT IMPORTANT? BECAUSE THOSE ARE THE MOST EFFICIENT GENERATORS. THEY CONSUME THE AT LEAST AMOUNT OF FUEL. CREATE ENERGY OUTPUT.

IF THEY ARE NOT RUNNING WELL.

WE'RE REPLACING THAT WITH UNIT IN THE MARKET THAT DOESN'T HAVE NEARLY AS GOOD EFFICIENCY.

CAPACITY RELEASES. FIXED GAS PRICES.

WE ALREADY HAVE SOME AMOUNT OF PREPAID GAS TRANSACTIONS THAT SAVE US 30 TO 40 CENT VERSES THE STOCK MARKET.

WE'VE BEEN ABLE TO OFF LOAD CAPACITY FOR GAS PREMEDITATION A AND -- TRANSPORTATION.

HELPS LOWER COST. WE'VE ALSO HAD LONGER TERM STRATEGY. WHEN WE DON'T US.

IF OUR FORECAST SAID WE DON'T NEED THERE'S AN OPPORTUNITY IN THE MARKET TO SELL THAT TO THIRD PARTIES THAT REDUCES COST WE'VE BEEN REFINANCING THE DEBT TO ALLIANCE WITH THE LIFE OF FACILITIES.

THAT HELPS LOWER COST IN NEAR TERM WHILE SPREADING THAT COST OVER THE USEFUL LIFE OF THE ASSET WHICH IS MORE EQUITABLE WAY TO RECOVER THE DEBT.

THAT'S NOT ENOUGH TO OVERCOME THE FUEL ISSUES THAT WE'RE EXPERIENCING. THEY ARE LOWER THAN IN 2008.

WE ALSO DONE A LOT OF WORK TO TRY TO KEEP OUR COST AS LOW AS WE CAN. WE'VE DONE QUITE THE OPPOSITE. SOMETHING TO BE PROUD OF.

THERE'S NOT A LOT OF THINGS I GO OUT TO BUY TODAY THAT ARE LOWER COST THAN WHAT I WOULD HAVE PAID IN 2008.

[01:20:05]

>> IN CONCLUSION WE ARE CONTINUING TO PURSUE LOW COST SOLAR. WE HAVE TWO SEATTLES WE WERE 2% IN 2022. WE PROJECT THAT INCREASE TO 7% BY 2027. THERE'S 7 TO 10 COMMUNITIES OR MORE THAT COULD BE INTERESTED IN PHASE THREE SOLAR. WE'RE LOOKING AS MUCH AS 2-3 SITES OF ADDITIONAL SOLAR. WE'RE IN THE PROCESS OF INTERVIEWING THOSE VENDORS. AND THERE ARE AS YOU WOULD EXPECT SOME SUPPLY CHAIN CHALLENGES.

BUT WE'RE HOPEFUL THAT WE CAN COME TO RESOLUTION ON PHASE 3 WITHIN THE END OF THE YEAR.

BY THE END OF THE YEAR. WITH THAT, HAPPY TO STTAKE Y QUESTIONS. .

>> YOU GAVE US A LOT TO THINK ABOUT.

ANY QUESTIONS OF THE BOARD? >> CAN WE TAKE A LOOK AT SLIDE 14. MINE IS DIFFERENT SLIDE NUMBER. I'M INTERESTED IN THE SLIDE LOWER PRICES TODAY THAN IN 2008.

YOU MENTION THAT YOU'VE BEEN FMPA SINCE 2016.

>> YES, SIR. >> I DON'T HAVE THE DATES CLEAR IN MY MIND. BUT AROUND THIS TIME 2008, 2006ND WE HAD SIGNIFICANTLY HIGHER RATES THAN FP&L.

AND THE LEADERSHIP OF THAT TIME CONSISTENTLY IN THE PAPER AT MEETING LIKE THIS. ED A TRIBUTED HEDGING GAS.

AND NOW WE'RE IN A SIMILAR SITUATION AND WE'RE ASKED TO DO THE SAME THING FROM MY MEMORY I DON'T HAVE THE DATES AND I WAS IN OO VERY DIFFERENT RULE.

CAN YOU ADD MORE DETAILS? >> I DO.

IT WAS COMBINATION. ITS BILL TEEAS.

TIME FRAME YOU TALK ABOUT 2008 THROUGH 2010.

THAT'S THE TIME FRAME. AND THEY DID HEDGE GAS PRICES AT THE $10 MARK SOMEWHERE IN THAT RANGE.

AND THEY HAD TO CARRY THAT FOR ABOUT TWO YEARS.

18 TO 24 MONTHS OR SOMETHING LIKE THAT.

WE WOULD DEFINITELY -- WE'VE -- THERE 'S AN OPPORTUNITY FOR US TO TAKE THAT HISTORY AND MAKE SURE WE DON'T GO DOWN THAT ROAD.

AN OPPORTUNITY TO COME CLOSER TO BUDGET.

WE'RE GOING TO BE CLOSER TO THE BUDGETED ITEM AS OPPOSED TO 2008. IT'S A LITTLE BIT OF DIFFERENT SCENARIO. WE HAVE THE HISTORY TO SHOW US THAT'S NOT THE WAY TO GO. WE'RE NOT LOCKING IN THE PRICES FOR IS THE SUMMER. WE DON'T WANT TO LOCK IN ANYTHING AT THE HEIGHT OF THE MARKET.

>> IT LINES UP WITH THE OTHER SLIDE THAT YOU HAD THAT DESCRIBED WHAT THE POTENTIAL CONSEQUENCES OF US BUYING FIXED GAS WERE. ALTHOUGH THAT SLIDE I CAN BE BAD AT ARITHMETIC. THAT SLIDE DIDN'T MAKE SENSE TO ME. CAN YOU WALK US THROUGH THE

SCENARIOS. >> I'M HAPPY TO.

THE FIRST TWO ROWS ARE EFFECTIVE I WILL SAYING, IF YOU COULD MAGICALLY GET $3 GAS GIVEN THAT YOU ALSO HAVE FIXED COST. UTILITY HAS FIXED COST, FIX GOING. WE WOULD BE ABLE TO DELIVER APPROXIMATELY AVERAGE WHOLESALE COST.

UNFORTUNATELY $3 GAS FOR THAT PERIOD OF TIME IS EXTREMELY UNLIKELY. IF YOU WERE TO GO TO $9 AND YOU SAID, I'M NOT HEDGING ANYTHING.

I WILL LET THE STOCK MARKET DETERMINE FIRST OF MONTH PERFORMS DETERMINE WHERE I'M AT.

[01:25:01]

IT WOULD BE ABLE TO MITIGATE THE EFFECT OF THAT HIGHER GAS PRICE BY 14. I'M PROVIDING MORE.

THE REMAINING THREE ROWE ROWS ARE THE SAME.

THE FOURTH ROW SAYING I WANT TO LEAVE 75% OF MY VOLUME TO THE STOCK MARKET BUT 25% OF MY VOLUME AT THE PRICE THAT I BELIEVE CUSTOMERS WILL COMFORTABLE WITH.

AND THAT ENDS UP AT $111. THERE'S REDUCED AMOUNT OF FIXED VOLUME WHICH PUSHES YOUR PRICES CLOSER TO THE $118, WHICH IS WHERE YOU WOULD BE IF YOU RODE THE

STOCK MARKET AT $9 GAS. >> I SEE.

>> WHERE I GET STUCK. I'M GUESSING THE FIX PRICE WE'RE HOPING TO GET MUCH CLOSER TO THAT $3.

NO, SIR. THAT'S GO -- THAT'S NOT THE CASE. LET'S LOOK AT SLIDE 14.

>> THE PART WHERE I'M GETTING STUCK AT THE END WHERE WE SAY, IF MARKET IS $3 AND WE PURCHASED FIXED GAS. IT WOULD HAVE BEEN A BAD DECISION FOR US TO PURCHASE. WE'RE TRYING TO AVOID THE BAD SCENARIOS. THERE COULD BE AN EXAMPLE WE WOULD NOT RECOMMEND WHICH WOULD BE -- SORRY FOR FLIPPING AROUND HERE. LET'S LOOK AT THE JUNE STRIP. IF YOU WERE TO SAY I'M GOING TO LOCK IN 100% OF MY VOLUME OR POTENTIALLY MORE OF MY VOLUME, AT $9 OR $9.50. THEN ACTUALITY THE CURVE WERE TO MOVE DOWN 2 OR $3. WE WOULDN'T WANT TO LOCK IN THE VOLUME AT THE HIGHER PRICE.

SCENARIOS WE TRY TO DEPICT HERE.

WHAT IS THE DOWNSIDE RISK IF PRICES DO MOVE TO $3 THAT YOU'RE STILL ABLE TO REAP THE BENEFIT OF THAT $3 GAS BECAUSE YOU HAVEN'T LOCKED ALL OF YOUR CONSUMPTION IN

AT HIGHER PRICE. >> SURE.

GO AHEAD. >> WE'VE BEEN CARABLE ABOUT USING THE HEDGE WORD. WE KNOW HOW OUR MEMBERS ABSOLUTELY FEEL ABOUT IT AND RIGHTFULLY SO.

ONE THING THAT WE DID AND WE'RE TRYING TO LEARN FROM HISTORY IS WE ACTUALLY HEDGED OVER 100% OF THE NATURAL GAS THAT WE NEEDED. THAT'S A LESSON LEARNED.

WE HIJED AT THE HEIGHT. LET'S LOCK THIS IN FOR.

SO WE SELL ON THE MARKET. THE OTHER THING THAT HAPPENED BACK THEN FRACKING STARTED HEAVILY INCREASE.

THAT'S WHAT DROVE DOWN THE OIL PRICES AT THAT POINT.

WE ARE LOOKING AT THE DIFFERENT SITUATION IN THAT WE'VE GOT TO GET THE RIG COUNTS UP FOR GAS PRICES TO COME DOWN AND WE ALSO HAVE TO HAVE PIPELINE.

THERE'S -- THE PERMITTING HAS STOPPED.

IN ORDER FOR THAT ALL TO HAPPEN IT IS GOING TO TAKE A WHITE. I WON'T HAPPEN WITHIN A MATTER OF MONTHS. THE ENTIRE LEADERSHIP TEAM AT THAT TIME IS NO LONGER FMPA.

I WAS IN A DIFFERENT ROLE. I CERTAINLY UNDERSTAND YOUR CONCERN AND THOSE ARE ALL VALID QUESTIONS AND THAT'S

[01:30:01]

>> IT SEEMS LIKE THAT POINT IN MY UNDERSTANDING THAT YOU WE WOULDN'T BE RECOMMENDED TO PURCHASE FIX GAS UNTIL WE SEE THAT DROP ON THE CURVE OF POWER COST.

IF YOU LOOK AT THE CURVES THERE.

THROUGH FLORIDA GAS UTILITY. WHICH IS OUR GAS AGENT IF YOU THROUGH THE ALL REQUIREMENT PROJECT.

WE DIRECT THEM TO GO INTO THE MARKET AND SECURE FIXED GAS FOR THAT FUTURE PERIOD OF TIME AT THE PRICE NO GREATER THAN A CERTAIN AMOUNT.

IF THEY ARE ABLE TO SECURE THE VOLUMES, THEN WE WOULD HAVE THAT AMOUNT OF FIXED GAS AT THE PRICE THAT WE

DIRECT. >> I SEE.

>> IT'S NOT THAT WE'RE WAITING FOR THAT COST TO DROP. IT'S THAT RIGHT NOW, IF WE FIX THE COST IN MAY OF '23 THAT'S THE POTENTIAL PRICE

WE CAN PURCHASE SPCHLT >> THAT'S CORRECT.

>> THAT'S TO STABILIZE FOR THE CUSTOMER.

>> I WOULD LIKE TO ASK SOMETHING.

I DON'T KNOW WHAT THE TIME LINE IS EXPECTED.

BUT IT'S ANTICIPATED THAT IT WOULD BE LONGER THAN TWELVE MONTHS TO BECOME ACTIVE. WE'RE TALKING ABOUT AN OPPORTUNITY HERE THAT WE WON'T BE ABLE TO GET OUT OF THIS FOR SOME TIME FRAME. BECAUSE THEY ARE -- THEY WON'T HAVE ENOUGH TIME TO CONSTRUCT AND OPEN UP THE WELLS. IN THAT YOU KNOW, WITHIN TIME FRAME WE'RE LOOKING AT LOCKING IN THE GAS PRICES.

>> WHY WOULD SELLER OF FIXED GAS THEY OBVIOUSLY HAVE THE SAME KNOWLEDGE THAT WE HAVE AS FAR AS RIG COUNTS AND ALL THESE OTHER DYNAMICS; WHY WOULD THEY BE WILLING TO SELL FIXED GAS AT LOWER PRICE THAN WHAT THEY PROBABLY WOULD BE ABLE TO SELL FOR AT THAT TIME?

>> THEY WOULD DO ADDITIONAL HEDGES AND SOPHISTICATED FINANCIAL INSTRUMENTS WOULD BE INVOLVED.

THEY WOULD BE ABLE TO LOCK THE PRICE IN.

IF YOU ARE WILLING TO TRANSACT NOW.

THE VOLUMES ARE VERY LOW AS YOU GET FURTHER OUT IN TIME.

THAT'S PART OF THE REASON THE PRICES ARE LOWER.

BECAUSE THE VOLUME OF TRANSACTION IS LOWER AS YOU GET CLOSER TO REALITY, REAL TIME, THE REASON THE CURVE MOVES UP IS BECAUSE FOLKS ARE NOW IN THE MARKET.

AND THEY ARE SAYING I NEED GAS.

AS SUPPLY DOESN'T KEEP UP WITH DEMAND, AS MORE AND MORE GET LAYERED IN THE CLEARING PRICE INCREASES AS

WELL. >> TO USE AN EXAMPLE.

SOME OF THE CITY HAVE FORMAL HEDGING.

THEY COULD PAY $3 FOR THEIR GAS THAT THEY USE NOW BECAUSE THEY HEDGE. WE'RE FEELING A LITTLE BIT OF TEFBLTHS IN THIS INCREASE IN THE PRICE WE PAY.

THAT'S HOW THEY ARE ABLE TO DO THAT.

IF YOU HAVEN'T PURCHASED IT IN ADVANCE.

>> THERE'S ONE THING I WOULD LIKE TO MENTION.

COULD YOU GO TO THE DIFFERENT MARKET PERCENTAGES SLIDE. I THINK IT'S THE NEXT SLIDE.

JUST EMPHASIZE WHAT HE WAS TALKING ABOUT.

THE FIRST TWO ROWS ARE EFFECTIVE I WILL WHAT FPUA EXPERIENCED OVER THE LAST 10 TO 12 MONTHS.

IS THAT AN ACCURATE STATEMENT.

>> WE WEREN'T 100% MARKET. >> SOME OF YOUR CITIES HEDGE THIS IN THE PAST. THEY ARE NOT PART OF FMPA, OR ARE THEY D DOING IT ON THEIR OWN?

>> THEY DON'T PURCHASE POWER THROUGH FMPA?

>> SOME OF THEM PURCHASE POWER.

BUT THEY ARE NOT ALL REQUIREMENTS MEMBERS.

ALL REQUIREMENTS PROJECT MEMBERS.

[01:35:04]

>> OKAY. FPUA, I THINK I KNOW WHERE YOU ARE GOING WITH THIS. FPUA HAS AN OPPORTUNITY IN CONJUNCTION WITH FPUA AND FLORIDA GAS.

WE CAN DO IT INDIVIDUALLY. >> WE HAVEN'T DONE THAT IN THE LAST TEN OR 12 YEARS. THAT'S SOMETHING THAT -- WELL MR. CRAWFORD HAS DONE THAT FOR THE GAS SYSTEM. BUT NOT FOR PURCHASE POWER.

WE'VE DONE THAT FOR 20 YEARS OR SO.

>> RIGHT. >> I WILL TELL YOU WE HAVE HAD THESE CONVERSATIONS WITH A NUMBER OF MEMBERS THEY ARE CONSIDERING DO IT BY INDIVIDUAL CITY FOR SOME.

JUST MAKING THE BEST DECISION THEY CAN FOR THEIR PARTICULAR CITY. WE'RE HAVING A MEETING ON THURSDAY TO DISCUSS POSSIBLY DOING AT FMPA FOR ALL REQUIREMENTS. THIS THURSDAY AND I KNOW WE'LL TALK ABOUT IT AT THE BOARD MEETING ON THE 23RD.

>> ABSOLUTELY. >> ALSO, WHEN YOU PURCHASE GAS IT IS FOR 12 MONTHS. IS IT A BROKERING KIND OF

THING. >> THERE'S SOME FLEXIBILITY IN THE NATURE OF WHAT YOU CAN DIRECT.

MY UNDERSTANDING FROM HAVING RECENT DISCUSSIONS THE MINIMUM TERM IS ONE MONTH. YOU COULD SAY 2023.

IT'S THE SAME # MILLION BTU. IF YOU LOOK AT FROM CONSUMPTION PERSPECTIVE WE AVERAGED YOUR ESTIMATED SEASONAL GAS USE AS A PORTION OF THE RECENT LOADS YOU'VE EXPERIENCED IN THE SUMMER YOU'RE ABOUT 294,000 IN THE NONSUMMER IT'S ABOUT 221,000.

FOR EXAMPLE, IF YOU SAID 25% OF THAT, WOULD BE SOMETHING YOU WOULD BE INTERESTED IN. WHY SOME OF THE INCREASES

HAVEN'T BEEN AS DRAMATIC? >> THAT COULD BE A CONTRIBUTING FACTORS. YOU WILL SEE THE FOLKS INCREASE WE'VE BEEN PROACTIVE.

THE BOARD DECIDED IN JANUARY AND FEBRUARY NOT TO REDUCE THE PCA. YOU CAN SEE THE NUMBERS IN MARCH CAME BACK HIGHER. WE'VE BEEN FORTUNATE TO MAINTAIN THAT NUMBER. WHERE THEY'VE ADJUSTED IT

CONSISTENTLY EVERY MONTH. >> THAT'S AN EXCELLENT POINT. THERE'S A VARIETY OF METHODOLOGIES ACROSS SYSTEMS IN TERMS OF FREQUENCY.

I IMAGINE LION SHARE OF FOLK DEAL WITH UNDER RECOVERY AS.

THEY TEND TO LAG. WHAT ACTION MIGHT BE TAKEN.

IT'S TYPICALLY TAKEN. I WOULD EXPECT TO SEE MORE COMMUNITIES HAVING TO ADDRESS THAT.

>> LOCKING IN THE GAS PRICES IN THE FUTURE IS HELPFUL FOR

SOME CITIES AS WELL. >> WE'VE NEVER DONE THAT.

OTHER THAN THE GAS DISTRIBUTION SITE.

WE HAVEN'T DONE THAT FOR THE ELECTRIC GENERATION POWER

SITE. >> GOOD QUESTION.

IF WE DO IF FMPA DO THIS AND WE APPROVE OR HOWEVER WE PARTICIPATE IN IT. THE HISTORY IT'S RISK TAKING; RIGHT? THIS IS A RISK TAKING THING.

IF YOU DO IT, THE PEOPLE WHO ARE SELLING TO US ARE TAKING A RISK THEY WILL BE ABLE TO SOMEHOW MAKE MONEY ON THAT.

AND SO BUT IF WE DID IT ON OUR END, WE WOULD BE MUCH MORE AT RISK PERHAPS, BECAUSE WE WOULD HAVE TO BE

AS SMART AS THEY ARE. >> RIGHT.

>> MY FEELING WOULD WANT -- I WOULD WANT TO REALLY -- I'M NOT A RISK TAKER.

I WOULDN'T WANT TO TAKE A BIG RISK.

I WOULD WANT TO DO SOMETHING RELATIVELY SMART AND I KNOW THAT NONE OF US HAVE -- WHAT I DON'T UNDERSTAND IS FORGET

[01:40:15]

WHAT HAS TO HAPPEN. IF YOU THINK ABOUT THE COMBINATION OF THINGS THAT WOULD HAVE TO OCCUR, OBVIOUSLY WE GOT GEOPOLITICAL ISSUES IN EUROPE. THAT WOULD HAVE TO RESOLVE ITSELF. YOU WOULD HAVE TO GET SIGNIFICANT PIPELINES LIKE THE MOUNTAIN VALUE PIPELINE THAT IS ABOUT 90% COMPLETE AND IS INTENDED TO GET AS MANY AS 2 MILLION DECOTHERMS OF NATURAL GAS FROM THE SOURCE OF SUPPLY ALL THE WAY DOWN TO SOUTH ATLANTIC WOULD HAVE TO GET APPROVED SO THERE'S SUFFICIENT PIPELINE CAPACITY. AND THAT WOULD INCENT PRODUCER TO CONTINUE TO INVEST IN SUPPLY.

AND BRINGING SUPPLY TO MARKET.

YOU WOULD HAVE TO GET WELLS TO COME BACK UP.

AND THEN POTENTIALLY, AS THE COMPOUNDING FACTOR, IF YOU HAVE SOME REDUCTION IN DEMAND AS A RESULT OF OTHER INFLATIONARY PRESSURES, ALL OF THOSE THINGS WOULD HAVE TO KIND OF COMBINE TOGETHER IN A SHORT AMOUNT OF TIME TO THEN BRING BACK YOU KNOW A $3 GAS PRICE.

WHETHER THAT'S POSSIBLE I DENT HAVE THE ANSWER.

>> IT DOESN'T SOUND POSSIBLE.

BUT I APPRECIATE THAT AT LEAST.

EXPLAINING TO ME WHAT HAS TO HAPPEN IN ORDER.

THIS IS GOING TO STAY AROUND FOR A WHILE.

AND PERHAPS GET WORSE. >> WHERE WE TRIED TO POSITION. FROM APRIL THROUGH THE FOLLOWING YEAR. WHAT WOULD HAPPEN TO MARKET PRICES. IF TIME IS NOT ON OUR SIDE.

IT'S WHO CAN SECURE THE AVAILABILITY VOLUMES.

AS YOU MOVE TO SECURE AT THE CERTAIN PRICE.

THOSE VOLUMES HAVE BEEN LOCKED.

SUPPLY BECOMES MORE AND MORE RESTRICTED.

AS ANOTHER MARKET ENTRANCE SAYS OH, I MIGHT WANT TO DO THE SAME THING. THEN THEY WILL PAY THE HIGHER PRICE. YOU MENTIONED YOU BROUGHT A LOT OF DETAILS ABOUT THE SITUATION WE'RE IN.

WE'RE IN THE PRIMARY CAUSE TO THE INCREASE IN GASES ARE LACK OF RIGS. LACK OF PIPELINES.

IN THIS COUNTRY. GRANTED THERE'S SALE GOING OVERSEAS, AND SOME THINGS GOING ON.

THERE'S A WAR GOING ON THAT HAVE IMPACTS.

BUT WHAT IS GOING ON LOCALLY IN THIS COUNTRY TO INCREASE AND GET MORE RIGS OUT THERE, PIPELINES UP AND RUNNING.

MORE WELLING DRILLING. AND IF THERE'S NOTHING GOING ON WHY ISN'T THERE SOMETHING GOING ON.

IS THIS GOVERNMENTAL RESTRICTIONS RIGHT NOW? OR IS IT BECAUSE WE DON'T HAVE ENOUGH PEOPLE OUT

WORKING? >> IT'S A MULTITUDE OR FACTORS. OBVIOUSLY YOU HAVE AT THE FEDERAL LEVEL. PIPELINES HAVE NOT BEEN ABLE TO GET ENVIRONMENTAL APPROVAL.

THAT'S NOT A LOCAL ISSUE. THAT'S NOT SOMETHING THAT WE CAN CONTROL. LOCALLY.

CERTAINLY LABOR PRESSURES COMING OUT OF THE PANDEMIC HAVE CAUSED BOTH COAL AND GAS PRODUCERS TO STRUGGLE AND BUILDUP THE CAPABILITY THEY HAD TO LET GO OF WHEN DEMAND WAS DOWN. IF YOU ARE A GAS PRODUCER, YOU KNOW, THE TREND HISTORICALLY WAS YOU WERE HIGH VALUES GAS PRODUCER IF YOU WERE GROWING.

THAT WAS KIND OF THE LITMUS TEST FOR BEING AN ATTRACTIVE ASSET FOR INVESTORS. NOW IT'S MORE ABOUT MARGIN.

IT'S ABOUT PROFIT. THEY ARE SAYING I'M OKAY WITH THIS PRICE. BECAUSE NOW I'M BEING JUDGED BASED ON THAT. AND THE DIVIDENDS OFFERED AS THE PRODUCER. IT'S A COMBINATION OF

[01:45:01]

>> A LOT OF PRODUCERS OF GAS ARE COMFORTABLE WITH WHAT THE COMING IN RIGHT NOW. THEY ARE NOT INCENTIVIZED.

>> THAT'S RIGHT. >> ANY OTHER QUESTIONS.

[G.3. Letter addressed to the U.S. Senate Energy Committee for Board Signature]

THANK YOU VERY MUCH. >> THEY ARE GOING TO JOIN ME FOR THE NEXT ITEM. BECAUSE REQUEST FOR ALL THE FPUA TO SIGN ATTACHED LETTER THAT'S IN YOUR AGENDA PACKAGE. TO ADDRESS THE U.S. SENATE ENERGY COMMITTEE. THE SUMMARIZES ALL INFORMATION PRESENTED TODAY INCLUDING THE SPECIFIC DETAIL ABOUT FT. PIERCE AND OUR DEMOGRAPHICS.

MANY OF THE MEETING ARE PREPARING TO SEND THIS LETTER TO THE U.S.A. ENERGY COMMITTEE.

IT'S JUST ONE. BUT IF -- IF THEY RECEIVE LETTERS FROM ALL OF THE ELECTRIC MUNICIPAL UTILITIES IN THE STATE IT WOULD BE HARDER TO IGNORE US.

THE SPECIFIC GOAL OF THIS LETTER VOICE OUR SUPPORT FOR CONGRESSIONAL BIPARTISAN SOLUTION FOR AFFORDABLE NATURAL GAS. THE FPUA STATEMENT INCLUDE ECONOMICAL RELIABLE BUT WITHOUT SOLUTION MOVING FORWARD, LIT CONTINUE TO BE A CHALLENGE PROVIDE AFFORDABLE ELECTRICITY FOR ALL UTILITIES IN THE U.S.

75% OF ELECTRIC PRODUCTION FROM NATURAL GAS.

IT WOULD BE HAPPY TO ANSWER QUESTIONS.

>> I HAVE A QUESTION ABOUT THE LETTER.

FOURTH PARAGRAPH. IT TALKS ABOUT THE INVESTIGATION OF CHINESE SOLAR COMPANIES THAT ARE POSSIBLY CIRCUMVENTING U.S. TARIFFS.

>> I THINK I'VE HEARD JUST RECENTLY.

IN FACT, TODAY, THAT THE PROPOSAL CAME OUT OF OUR GOVERNMENT TO BUY SOLAR PANELS FROM CHINA.

>> I WILL LET SHARON ANSWER THAT.

>> YOU'RE CORRECT. WE DISCUSSED THIS YESTERDAY IN THE LEADERSHIP TOOM MEETING.

NRECA NATIONAL CO-OP ASSOCIATION IN THE PUBLIC POWER NATIONAL ASSOCIATION DID GET IN CONTACT WITH THE DEPARTMENT OF ENERGY AND SAID WOULD YOU PLEASE LIFT THOSE RESTRICTIONS. THAT TIED OUR HANDS MORE.

BECAUSE WE COULDN'T GET SOLAR PANELS.

THE NEGOTIATION WE LAD -- HAD DONE FOR THE SOLAR PLANTS WERE STOPPED. THEY AGREED TO SAY, OKAY.

WE WILL HOLD OFF ON THAT INVESTIGATION.

THE SOLAR PANELS WERE PAID IN CHINA AND REROUTED THROUGH OTHER COUNTRIES THEN SOLD TO US.

THEY STOPPED THAT INVESTIGATION.

THAT'S THE PLAN AND WE CAN ACTUALLY MOVE FORWARD WITH

OUR SOLAR PROJECTS NOW. >> OKAY.

THEN THE NEXT PARAGRAPH WE'RE TE DEEPLY CONCERNED ABOUT THE 365 MEGAWAT SITE SCHEDULED.

CAN YOU EXPLAIN THAT TO ME. >> THAT'S OUR SOLAR PROJECT

THAT WE HAD. >> THAT'S STILL TALKING

ABOUT SOLAR. >> YES.

>> I DIDN'T GET THAT CONNECTION.

WHAT ARE WE ASKING THEM TO DO WITH THIS LETTER?

>> WE'RE ASKING THEM TO WORK TOGETHER TO OPEN UP SOME PIPELINES. OPEN UP SOME WELL RIGS, SO WE CAN INCREASE OUR SUPPLY AND EFFECTIVELY REDUCE OUR PRICES. THAT'S THE SHORT VERSION.

>> WE'RE NOT SPECIFICALLY SAYING THAT.

PIPELINE IS KIND OF DIRTY WORD.

YOU DON'T WANT TO SAY THAT. >> HOWEVER YOU GET IT TO US.

>> AND THIS GOES TO PROBABLY THE CHAIRMAN OF THE ENERGY COMMITTEE AND THEN THE RANKING REPUBLICAN; IS THAT

WHY WE CHOSE THESE TWO? >> YES.

>> AND THEN WE WOULD COP OUR WHOLE DELEGATION.

>> ALL THE ENERGY COMMITTEE THE SENATORS REPORT.

RUBIO AND SCOTT DESANTIS AND CONGRESSIONAL DELEGATION.

>> THAT'S RIGHT. >> ALL RIGHT.

THANKS. >> WE WOULD NEED A MOTION APPROVE IT FOR EVERYBODY TO SIGN IT.

>> ANY DISCUSSION FROM THE BOARD?

>> I MAKE A MOTION TO APPROVE THE LETTER.

>> SECOND. >> PLEASE CALL THE ROLL.

[01:50:02]

>> IT'S GOING TO BE PREPARED FOR ALL OF SIGNATURES.

>> MAY I APPROACH. WHILE JILL GETTING

[G.4. Power Cost Adjustment (PCA) Discussion – For Information Only]

GIVEN THE PRESENTATION FROM THE STAFF THE COST OF POWER HAS RISEN SIGNIFICANTLY OVER THE LAST NINE MONTHS OR SO.

BARBARA MICAH WILL HIGHLIGHT THE COST.

IT'S IMPORTANT TO NOTE PCA ADJUSTMENT REQUIRED IN ORDER TO NOT USE UNRESTRICTED FUNDS THAT ARE PARLIAMENT OF THE 45-DAY MINIMUM CASH ON HAND REQUIREMENT AS OUTLINED IN THE BOND COVENANT. THIS IS ADJUSTMENT MUST BE MADE WHETHER OR NOT WE PROCEED WITH THE 2022 SERIES BOND. IT IS REQUIRED TO PROCEED.

WE HAVE TO DO THIS BECAUSE OF OUR BOND RECOVENANT REQUIREMENTS FOR DAYS ON CASH.

>> BARBARA MICAH WILL PRESENT THIS ITEM.

>> >> THANK YOU.

GOOD AFTERNOON. GOOD EVENING, ACTUALLY.

THANK YOU FOR THE OPPORTUNITY TO PROVIDE YOU WITH THE UPDATED INFORMATION ON THE STATUS OF THE APRIL POWER COST ADJUSTMENT ALONG WITH THE UPDATED 12-MONTHS PROJECTION THROUGH APRIL OF NEXT YEAR.

COST OF PURCHASE POWER RECOVERED IN PART AND WHOLE THROUGH CUSTOMER BILLING. POWER COST RECOVERED THAT RECOVERED IN EXCESS OF OUR 79.50 BASE POWER COST ARE ACCUMULATED AS AN OVER RECOVERY TO OUR RATE STABILIZATION FUND. IN ORDER TO RETAIN SUFFICIENT FUNDS TO PAY THE POWER COST OUR GOAL IS TO MAINTAIN THE PCA RESERVE BETWEEN 1 MILLION AND 5 MILLION DOLLARS. WITH EXCESS FUND GOING BACK TO CUSTOMER WHENEVER POSSIBLE.

THE COST OF POWER PURCHASED FOR THE MONTH OF APRIL WAS BILLED AT FPUA BLENDED RATE OF $97.97 FOR 1,000 KILOWATT. INCREASE OF $13.50 WHEN COMPARED TO MARCH BILLING FROM FMPA.

FOR THE MONTH OF APRIL, FPUA EXPERIENCED UNDERRECOVERY OF POWER COST FROM THE CUSTOMER OF ABOUT $200 THOUGH WHICH DECREASED TO 1 MILLION AND A HALF DOLLARS.

1.5 MILLION. THE CHART TRACKS THE BALANCE IN RELATION TO APPROVED POWER COST ADJUSTMENT.

THE BLUE BARS ON THE TOP ARE REPRESENT THE ACTUAL MONTHLY BALANCES IN OUROVER RECOVERY.

THE ARRANGE BARS SHOW THE PROJECTED OVER RECOVERY.

WHAT WOULD BE THE FORECASTED NUMBERS THAT WE HAVE OUR CORRECT. THE TRACKING SHOW FOR BETTER YEAR AND THE AND A HALF. MARCH OF 2020 THROUGH THE END OF LAST SUMMER JULY OF AUGUST OF '21, WE'RE ALL IN THE POSITIVE HERE. WE'RE ABLE TO HAVE CARRY A NEGATIVE PCA. AS YOU KNOW THE IMPACT OF COVID AND HISTORICALLY LOW POWER COST WE EXPERIENCE ALLOWED US TO MAINTAIN THAT FAVORABLE POSSIBLE FOR OUR CUSTOMERS. THE CHANGE BEGAN IN SEPTEMBER WITH RISING COST PROJECTION AND THE NEED TO INCREASE PCA THAT'S THIS POWER COST ADJUSTMENT.

AND IN ORDER TO MAINTAIN THAT LEVEL ABOVE IN THE STABILIZATION FUND. IT'S CURRENTLY $18.

PER 1,000 KILOWATT HOURS. CURRENT FORECAST WITH THE 26 ADJUSTMENT TO PCA WHICH IS AGAIN THIS BLUE LINE GOING UP HERE. THROUGH THE END OF THE YEAR, WILL DROP OUR RESERVES BELOW THE RATE STABILIZATION.

THESE ARE THE ORANGE BARS. THAT'S THE MINIMUM OF THE -- THAT'S BELOW ZERO. BELOW THE MINIMUM.

THIS PROJECTION YOU WILL SEED IN THE NEXT SLIDE HAVE BEEN PREPARED FOR FINANCIAL CONSULTANTS AND ARE BASED ON FMPA. SINCE THE MARCH FORECAST, FMPA'S ESTIMATE COST OF PURCHASE POWER.

[01:55:03]

THE RATE STABILIZATION FUND OUTLINED BY THE DOTTED LINES. THE BLUE LINES UP AND DOWN.

THAT'S THE FUND AREA. EACH OF THE ADJUSTMENT THAT ARE PRESENTED IN THE GRAPH INDICATE A JULY 1ST IMPLEMENTATION DATE. I WILL START WITH THE GRAY LINE. WHICH IS DOWN HERE ON THE BOTTOM. THE GRAY LINE ADJUST THE CURRENT PCA OF $18 BY 26 TO MAKE PCA $4 AND MAINTAINING THAT THROUGH APRIL OF 2023. OF APRIL -- NEXT YEAR.

WE WILL REMAIN BELOW THAT RATE STABILIZATION FUND LEVEL. SHOW IMPACT OF $35 ADJUSTMENT TO THE PCA. BRINGING THE PCA EFFECTIVE JULY 1ST TO $53 FOR 1,000 KILOWATT HOURS.

THIS BRINGS THE PCA INTO OUR RATE STABILIZATION FUND MINIMUM. ASSUMING THE CURRENT PROJECTIONS ARE STABLE ENOUGH TO MAINTAIN PROJECT RANGE. THE GREEN LINE PROVIDES FOR A $41 INCREASE TO THE PCA FROM $18 TO $59 FOR 1,000 KILOWATT HOURS. MAINTAINING THAT PA THROUGH APRIL OF 2023, THIS CHANGE WILL COST PCA TO A POSITIVE BALANCE IN SEPTEMBER EFFECTIVE I WILL 1 MONTHS SOONER THAN THE $35 ADJUSTMENT.

THIS GRAPH IS ONE THAT PRESENTED AS PART OF MONTHLY AGENDA PACKETS. I BROUGHT IT TODAY AS ILLUSTRATION OF THE TREND THAT WE HAVE EXPERIENCED OVER THE PAST 12 MONTHS. I FIRST WANT TO POINT OUT THAT THESE ARE NOT THE RATES THAT RESEE ON A MONTHLY BILL BUT ARP ALL IN RATE AVERAGE. THE TREND OF THE PROJECTION VERSES THE ACTUALS. IF YOU LOOK AT THE GRAY BARS THE GRAY BARS ARE PROJECTIONS.

IF YOU LOOK BACK TO MAY, THIS SHOWS THAT 11 MONTHS PRAYER TO MAY, IN JUNE OF 2020, IT WAS PROJECTED THAT OUR MAY COST WOULD BE $77.84.

NOW 11 MONTHS LATER WHEN WE THE MAY ACTUALS CAME IN AT LAST.

$68.24. WE TYPICALLY EXPECT WHAT THE TREND WAS WE'RE SEEING UNTIL SEPTEMBER OF '21 WE LOOK AT PROJECTION FROM 11 MONTHS PRIOR WHICH IS AUGUST OF 2020. 11 MONTHS LATER OUR COST ARE COMING IN AS 88.32. THAT'S BEEN THE TREND SINCE THEN. I JUST WANTED TO GIVE YOU THE ILLUSTRATION TO SHOW THERE WAS A POINT -- WE SAW THAT IN THE BOARD MEETING FROM THE PCA WERE PRESENTED WE WERE HAVING COST PURCHASE POWER COST.

THIS STABLE SHOWS THE IMPACT OF PCA ADJUSTMENT.

THE IMPACT ON OUR BILLS AND OUR DAYS OF CASH.

WHICH IS TO FIND IN OUR BOND COVENENCE AS THE 45 DAYS OF TOTAL CASH AND CASH EQUIVALENCE OVER EXPENSES EXCLUDEING THOSE EXPENSES THAT ARE THAT ARE NONCASH ITEMS. THE FIRST LINE REPRESENTS WHAT OUR CURRENT BILL IS WITH THE CURRENT 18PCA, JULY BILL WOULD BE THEY ARE ALL THE SAME.

136.70. THE SECOND LINE IS THE -- WHAT THE BILL OUR CUSTOMER BILL WOULD INCLUDE PCA ADJUSTMENT. I'M ADDING THE 26, 35 AND 41 TO THOSE NOW THIS WOULD BE JULY BILL EFFECTED BY THE CHANGES. THOSE RAE REVISED AMOUNT ARE -- PCA WILL BE $44 OR 54 OR 59.

JUST TO KEEP IN PERSPECTIVE. THE INCREASES IN THESE

[02:00:02]

IF WE ADJUST THE PCA BY THE 26 THAT WILL ALLOW US TO RECOUP SOME OF THE COST THAT IN EXCESS OF THE $79.52 BASE COST. BUT WILL BY SEPTEMBER LEAVE US $3 MILLION SHORT OF WHAT IS NECESSARY TO MEET OUR MINIMUM REQUIREMENTS OF DAYS OF CASH SIMPLY LEAVING US AT $36 DAYS OF CASH. IF WE MAKE THAT ADJUSTMENT.

IF RECALL ON CAM PAIRSON COST THAT'S BELOW RATE STABILIZATION LEVEL. IF WE MAKE A 35 ADJUSTMENT, WE WILL JUST SHY OF AS SEPTEMBER 30TH, WE WILL SHY OF 1 MILLION, AND WE WILL BE AT 42 DAYS OF CASH.

THIS IS A MEASUREMENT DATE. 9-30 MEASUREMENT DATE OF THE BOND COVENANT. IT'S ONLY THE 41 ADJUSTMENT THAT WILL KEEP US WHOLE UNDER THE CIRCUMSTANCES.

AND OWNED BY A SLIM MARGIN. 45 DAYS.

NOW WE HAVE HAD DISCUSSIONS WITH OUR BOND COUNCIL.

AS YOU KNOW WE'RE TALKING WITH THEM ON A REGULAR BASIS AND OUR FINANCIAL ADVISORS. AND BASED UPON OUR DISCUSSION BASED ON PROJECT DESCRIPTION AND THE WORDING IN THE UPCOMING OFFICIAL STATEMENT, WE WILL -- THAT WILL ALLOW US TO QUALIFY AND REALLOCATE A PORTION OF OUR RATE FUNDED CAPITAL FROM THIS FISCAL YEAR FROM FISCAL, 2022 TO BE FUNDED BY THE PROCEEDS OF THE BOND ISSUANCE. THAT BRINGS US TO THIS FINAL LINE DOWN HERE ON THE DAYS OF CASH THIS WILL ALLOW TO US RECOUP IF WE CONSIDER SOME OF THE RATE FUNDED PROJECTS THAT WE ARE WORKING ON CURRENTLY, WE CAN REIMBURSE OURSELVES FOR THES COOF THOSE CONSIDERING THOSE PROJECTS BASED ON THE DESCRIPTIONS IN THE STATEMENT TO BE FUNDED BY THOSE PROJECTS.

THIS WILL ALLOW A REIMBURSEMENT TO OUR UNRESTRICTED CASH BEFORE THE END OF SEPTEMBER.

WHICH IN FACT IF WE LOOKED AT IT AND WE HAVE ABOUT 7 MILLION DEPENDING ON WHAT IS SPENT WILL BRING THE CASH ABOVE THOSE LEVELS AND WILL IN WES WILL CUSHION FOR THE POWER COST WE'RE EXPERIENCING THAT WE'RE KIND OF YOU KNOW, WE KNEW THEY VERY COMING.

WE WERE NOT EXPECTING THAT MUCH OF A CHANGE.

ALL OF A SUDDEN WE WERE -- WHAT WENT INTO OUR SUFFICIENCY STUDY WAS GOING TO GET US WHERE WE NEEDED TO BE AND THEN WE HAD THIS MATERIAL CHANGE AND HOW OUR OUTLOOK. IT NEEDS TO BE ADDRESSED.

WHILE THIS WARRANTS ACTION TO BE TAKEN WE'RE HOPEFUL THAT THE SITUATION IS SHORT-TERM AND CHANGES THE COST OF OUR PURCHASE POWER, ALLOWING TO MAKE MORE FAVORABLE ADJUSTMENTS. IN THE MEAN TIME, WE WILL MONITOR THE POWER COST, ADJUSTMENT AND RECOMMEND CHANGES ONLY AS NEEDED. IF YOU HAVE ANY QUESTIONS OR

DISCUSSION >> BEFORE YOU LEAVE THAT SLIDE. THE SECOND LINE THAT SAID JULY BILLING, THAT DOES NOT INCLUDE THE JULY INCREASE THAT WE APPROVED. THAT JULY INCREASE $1.86 FOR THAT SAME CUSTOMER. THE JULY INCREASE.

EVERY PENNY COUNTS. BARBARA MAKES SURE SHE SAYS THAT OFTEN. THE 1.86 REAL NUMBER.

BUT MUCH SMALLER NUMBER THAN PCA.

>> MR. CHAIRMAN. COMPARED TO THE OUR RATE INCREASES, THE PRICE OF NATURAL GAS IS PUT US IN A

REAL EXPENSIVE TERRITORY. >> YES, MA'AM, IT HAS.

>> AND I MEAN, I JUST I MYSELF CANNOT SEE A LOT OF PEOPLE BEING ABLE TO AFFORD THIS KIND OF INCREASE.

EVEN THOUGH I KNOW WE HAVE TO DO.

WITH INCREASES IN EVERYTHING ELSE.

I JUST SEE THIS AS GOING TO BE -- THAT'S THE REASON BARBARA PROVIDED THREE OPTIONS.

26, 35 AND 41 WITH BEING ABLE TO USE THE CAPITAL REALLOCATION OF THE BONDS. SO THAT WE CAN PROVIDE SOLUTION FOR THE BOARD AND STILL CONTINUE TO MOVE

FORWARD WITH THE BONDS. >> YEAH.

[02:05:03]

>> BECAUSE THIS A PROBLEM NOW.

THE BOND IS 50 -- WE'RE TALKING ABOUT 50 YEARS.

WE'RE TALKING ABOUT SNAPSHOT IN TIME.

>> I WOULD HATE TO PROJECT MY CRYSTAL BALL.

EVERYBODY CRYSTAL BALL IS FUZZY RIGHT NOW.

>> MR. KOBLEGARD, DID YOU HAVE SOMETHING TO ADD?

>> THE 7 MILLION ON THE BOND IS THAT IN THE BANK OR IS

THAT GOING TO BE SPENT. >> THAT'S IN THE BANK.

>> TOWARD THE POWER COST. >> IT JUST SITS THERE.

>> YES. >> IT'S QUALIFYING SOME OF OUR CURRENT CAPITAL PROJECTS THAT WE DIDN'T INITIALLY DEEM TO AND INCLUDE IN OUR THE PICTURE WHAT WE WERE GOING TO GET PURCHASE BONDS FOR TO FUND.

BUT THEY DO QUALIFY BASED ON THE WORDING IN THE OFFICIAL STATEMENT. WE WOULD INCLUDE THE PROJECT. THEN IT REDUCES WHAT'S AVAILABLE TO SPEND ON THE OTHER PROJECTS THAT WERE THERE. THAT ARE OUT THERE.

THAT WILL BE ADDRESSED IN -- IN THE PICTURE WE WERE LOOKING AT ADDRESSING THE THROUGH GRANTS OR ADDITIONAL FUNDING, OR PUSHING THEM OUT.

>> OR PUSHING IT OUT. >> WHATEVER IF WE CAN'T GET GRANTS TO COMPLETE THE CONVEYANCE.

WHATEVER IS NEEDED TO BE DONE BECAUSE OF THIS 7 MILLION IF IT ISN'T 7 MILLION.

IT MIGHT BE SIX WE HAVE TO SEE WHAT'S SPENT.

WHATEVER WE TAKE REIMBUSMENT FOR NOW THEY WILL HAVE TO LOOK FOR THAT MONEY LATER. RIGHT NOW SOLVES OUR DAY OF CASH WHICH ARE CRUCIAL ITEM RIGHT NOW.

>> IT'S CRITICAL. >> THEIR TAX ATTORNEY.

>> WE TALKED TO DUANE AND JULIE AND LYNN TAX TORN LYNN. WE TALKED TO THEM YESTERDAY.

IT WAS A VERY QUICK MEETING. WE WERE TRYING TO PROVIDE A

BOARD MEETING TODAY. >> AND IT WAS ONE THAT THEY CAME UP WITH. I WOULD NEVER SURMISE WE COULD DO SOMETHING OF THIS NATURE.

IF IT PASSES MUSTER, AND THEY RECOMMEND AND THEY ARE OUR ADVISORS. IT'S A SOLUTION.

>> BARBARA, WHY ARE WE RECOMMENDING $26 IF IT KEEPS

US IN THE NEGATIVE POSITION. >> IMPACT ON THE CUSTOMER.

>> I UNDERSTAND THAT. >> THE FIRST TWO ARE GOING TO LEE US SHORT. AND ONE MORE THAN THE OTHER, BECAUSE OF THE AMOUNT WE WOULD COLLECT.

41 IS IMPORTANT BECAUSE THAT LINES UP WITH OUR CHECKPOINT. WE CHECKPOINT SEPTEMBER AND MARCH. THOSE ARE OUR TWO CHECKPOINTS FOR DAYS OF CATCH ON HAND.

THAT'S WHY THE 41 OPTION IS PRESENTED IS TO BE ABLE TO

CORRECT THAT. >> YOU DON'T GET CREDIT FOR ALL THOSE MONTHS WHEN WE HAD EXCESS CASH ON HAND.

>> NO. NO.

>> DO YOU HAVE A QUESTION? >> YES.

I GUESS I'M A LITTLE BIT CONFUSED.

WE'RE GETTING READY TO ASK THEM FOR THE INCREASE FOR JULY WITH THE WASTEWATER CHART THAT YOU SHOWED US THE LAST TIME. WE VOTED ON.

NOW WE'RE ASKING THEM FOR ANOTHER INCREASE.

>> FOR POWER COST. >> FOR POWER COST.

THAT'S INCREASE ON THE POWER COST.

FOR JULY $1.86. VERY SMALL SMALL NUMBER IN COMPARISON. IF WE DO IT AT 86.

THAT WILL BE ANOTHER $36 INCREASE.

BECAUSE IT SAYS $160. AM I READING THIS RIGHT?

>> $162.70. >> IT INCREASED TO $162.70.

[02:10:04]

DID I ANSWER YOUR QUESTION. >> THAT'S JUST THE ELECTRIC.

>> THOSE INCLUDE PER KILOWATT HOUR.

>> IT INCLUDES THE RATE INCREASE.

$1.86 THE BOARD APPROVED INCLUDED IN BARBARA NUMBER FOR 136.70. IT'S INCLUDED.

>> YES, IT IS. >> THEY ADD TO THE 18 THERE.

>> CORRECT? >> YES, MA'AM.

>> THIS PROJECTED COMPARISON OF PCA THAT CHART, WE'RE PROJECTING THAT IN JUNE WE ARE ALREADY GOING TO BE 1.5 MILLION NEGATIVE. IS THAT --

>> THAT'S WHAT IT SAYS. AT THE END OF JUNE.

IT'S AN FORTUNATE SITUATION TO BE IN.

WE'RE MAKING GOOD PROGRESS FOR THE COMMUNITY AND THE CUSTOMER. BASED ON THE INFORMATION WE HEAR TODAY WE WILL BE PROLONGED PERIOD OF INCREASED PRICES. WE'RE TALKING ABOUT HEDGING A LITTLE BIT. WHICH SUGGESTS THAT WE'RE THE COST ARE GETTING OUT OF HAND.

THE CUSTOMERS WE LOOK FOR TO PAY FOR IT.

BASED ON THE PROJECT WE HAVE ONGOING.

I DON'T WANT TO MIKE THIS SUGGESTION LIGHTLY AT ALL.

IT'S GOING TO BE DIFFICULT FOR PEOPLE IN THE SUMMER MONTHS. THE $41 INCREASE SEEMS TO BE THE MOST LOGICAL AND PRUDENT THING TO DO BECAUSE IF WE SEE YOU CAN LOOK AT THIS GRAPH THAT WE WILL PLAY CATCH-UP THROUGH UNTIL SEPTEMBER OF THIS YEAR THEY DON'T LIKE US TO PLAY CASH UP.

THEY WANT US IN NORMAL RANGE AS QUICKLY AS POSSIBLE.

OUT MUCH MONEY DO THEY ALLOW US TO PUT.

DID YOU SAY 7 MILLION. THEY ALLOW US 7 MILLION IN THERE. IF WE STAY UNDER COLLECTED.

ALL THE WAY THROUGH I PRESUME THEY ALLOW US TO TAP INTO THE 7 MILLION. AND TO RESUPPLY OUR CASH ON HAND. WE WOULD CONSIDER THE PROJECTS AS BEING FUNDED BY THE DEBT.

WE SPENT MONEY TO DATE FROM OCTOBER TO NOW AND THAT WOULD BE PART OF THE INITIAL REIMBURSTMENT WHEN WE CLOSE ON THE BOND WE WILL TAKE BASED ON THE REIMBURSEMENT RESOLUTION THAT CAME BACK IN JULY.

WE CAN REIMBURSE OURSELFINGS FOR THOSE COST THAT WE'VE INCURRED. PRIOR TO THE ACTUAL CLOSING.

>> THE PROJECTS THAT WE HAD EARMARKED FOR WILL GO ON

UNCOMPLETED; CORRECT? >> THAT'S RIGHT.

>> THEY WOULD BE POSTPONED OR DELAYED FOR FUTURE.

THOSE PROJECT COULD BE REVISITED AS WE GET BACK INTO TO RATE STABILIZATION FUND RANGE THAT THE BOARD WOULD LIKE TO SEE. WE COULD START SEEING WHAT NUMBER THAT -- WHAT NUMBER WE HAVE AND WHAT PROJECTS WE CAN TAKE FROM THAT NUMBER. LET'S SAY THERE'S 1 MILLION THAT COMES OFF THE 7 MILLION.

WE CAN LOOK AT THE MILLION AND FIND OUT WHAT PROJECT WE CAN DO INSTEAD OF POSTPONING IT OR NOT DOING IT.

>> I THINK I'M NOT SURE IF BARBARA HIT ON IT.

WE MADE BUDGET CUTS AND WE MADE ADDITIONAL ADJUSTMENTS

IF YOU CAN HIT ON THAT. >> WHILE WE WERE GOING THROUGH THIS PROCESS WE FOUND THAT OUR CAPITAL WAS TOO FAT. RATE FUNDED.

WE HAD DEFERRED AROUND $7 MILLION.

THEN WE WENT BACK AND CUT $3 MILLION OUT OF OUR 22 -- OUT

[02:15:03]

THEM THERE. >> OUT OF CURIOSITY.

DID -- WAS THERE ANY DISCUSSION ON PERHAPS TAKEN UNSECURED LOAN FOR $7 MILLION TO USE THAT TO FUND

OUR ACCOUNTS? >> I DON'T THINK WE CAN THAT. IS THAT RIGHT?

>> I'M NOT SURE. I DON'T THINK WE CAN DO THAT

FOR BOND COVENENCE. >> TWO-YEAR LIMITATIONS.

>> THAT'S A SHORT WINDOW TO HAVE TO PAY THAT BACK.

>> MY THOUGHT WAS HOPE WE DON'T HAVE TO TOUCH IT.

WE AT LEAST HAVE THE MONEY AVAILABLE TO CONTINUE WITHIN THE PROJECTS. I DOESN'T SOUND LIKE THAT GETS US WHERE WE NEED TO BE ANYWAY.

BASED ON THE TIMING. >> IT DOES HIT ON SOMETHING THAT WE CAN TALK ABOUT AT ANOTHER DATE.

MAYBE DURING A PLANNING SESSION.

THE 5 MILLION NEEDS TO BE SIGNIFICANTLY HIGHERTL SO W CAN MITIGATE IN THE FUTURE. WE DON'T HAVE THE LUXURY TO DATE. YOUR POINT IS HOW CAN WE

MITIGATE THIS IN THE FUTURE. >> EXACTLY.

RIGHT NOW, WE WERE GOOD TO BE -- THANK GOSH -- HATE TO SAY IT. WE DIDN'T LOWER THE PCA BEFORE. IT'S A ROLLER COASTER TO THE TAX PAYER. THIS IS GOING TO BE IT'S GOING TO BE FELT BY EVERYONE.

THIS IS GOING TO RAISE EYEBROWS.

I DON'T SEE HOW WE CAN AVOID IT.

REALLY THE QUESTION FOR THE BOARD, IS HOW CLOSE TO YOU WANT TO PLAY THIS? BECAUSE THERE'S NOT MUCH WIGGLE ROOM AT ALL. YOU LOOK AT 42 TO 45 DAYS.

THAT'S A DIFFERENT OF LOOKS LIKE $7.

AND ONLY CHANGES YOU 3 DAYS, DAYS AND 69 DAYS.

WE HAD SUCH A CLOSE MARGIN THERE, IT ONLY MAKES SENSE TO DO THE HIGHER AMOUNT. WE COULD ALWAYS GO BACK.

HOPEFULLY WE CAN GO BACK. IT'S THE WORST TIMING I'VE

EVER SEEN. >> YOU COULD MAKE AN ADJUSTMENT NOW. WE'LL HAVE MORE INFORMATION IN ANOTHER FEW WEEKS. AND THE FEW WEEKS AFTER THAT. ADDITIONAL ADJUSTMENT IF YOU

WANT COULD HAPPEN AS WELL. >> JUST REAL QUICK MR. CHAIRMAN, IS THAT THE CASH DOESN'T INCLUDE THE 7 MILLION. IF WE INCLUDE 7 MILLION

WE'RE DOWN TO 61, 66 AND 69. >> WE DIDN'T HAVE MUCH IN RESERVES THAT WE'RE LOOKING AT.

>> YES, SIR. >> THAT'S WHY I PREFER TO GET AHEAD OF IT WITH AN EXPECTATION WE COULD PULL THIS THING BACK AS SOON AS WE FEEL THERE'S A LITTLE

BIT -- >> CAN YOU GO TO THE SLIDE WHERE YOU SHOW 3 LINES FOR THE CHARTS.

WHAT YOU'RE TALKING ABOUT IS THAT THE GREEN LINE, YOU KNOW, IF WE GET TO OCTOBER IF WE GET SOMETIME LATER THIS YEAR OR EARLY NEXT YEAR YOU'RE ABLE TO REDUCE THAT.

THERE IS POSSIBILITY; BUT RIGHT NOW I CAN'T ANSWER

THAT. >> IT DOESN'T LOOK OPTIMISTIC BASEDEN THE -- BASED ON THE REPORT.

IF WE DO THE 41 WE GET COMPLIANT AND WE COULD REDUCE IN FUTURE. THE 26 IS AN INCREASE.

WE CAN USE THE BOND PROCEEDS TO HELP US BE COMPLIANT.

JUST WANTED TO MAKE SURE THAT THE BOARD HAD SEVERAL

OPTIONS. >> WE WERE IN THE PAST SOMEWHERE BETWEEN 75 TO 90 DAYS WITH CASH ON HAND.

CORRECT? THIS IS CUTTING THAT IN HALF. EVEN IF WE MAKE OUR ADJUSTMENTS, THEN WE'RE GOING TO STILL BE BELOW WHAT UR -- WHAT WE WERE TYPICALLY BEFORE WITH OUR NEGATIVE PCA. I AM CURIOUS, DO YOU HAVE SOME EXAMPLES OFF THE TOP OF YOUR HEAD, WHAT IS IN THE $7

MILLION BUCKET? >> THERE WAS SOME -- I DON'T REMEMBER THE LIST. WE CAN PROVIDE THE LIST TO

YOU. >> WE CAN STILL MOVE FORWARD AND FUND AND PROCEED WITH THIS PROJECTS.

[02:20:02]

>> WE HAVE A LOT OF THINGS HAPPENING AT THE SAME TIME.

>> I'M JUST THINKING ABOUT THE CUSTOMER.

AND THIS IS A VERY CRUCIAL TIME FOR THEM RIGHT NOW.

AND TO ASK THEM TO RAISE THE RATES, WE'RE GOING TO RAISE THEM ALREADY. AND TO ASK THEM TO RAISE THEM AGAIN, SOME PEOPLE CAN'T AFFORD THAT.

AND THEY JUST CANNOT AFFORD ANOTHER HIT LIKE THIS.

AND I UNDERSTAND THE SITUATION WE'RE IN.

BUT CAN WE LOOK AT SOME OTHER MEANS OF WHAT WE CAN CUT BACK ON WITH THOSE 7 MILLION THAT YOU WERE TALKING ABOUT THAT WE CAN HELP THE CUSTOMER AND THE RATE PAYER. BECAUSE THIS IS A BIG BANG FOR THEM. AND I'M THINKING ABOUT SOME OF THE PEOPLE THAT LIVES IN DISTRICT ONE.

THIS IS A REAL BIG BANG FOR THEM.

AND FOR THEM TO BARELY MAKING THE BILL AND PAYING IT AND THEN TO TURN AROUND AND ASK THEM TO COME UP WITH MORE PHENOMENON THAT THEY DON'T HAVE, AND A LOT OF PEOPLE ARE OUT OF WORK OVER THE SUMMER.

I MEAN SCHOOLS CLOSED. YOU ONLY GET TWO CHECKS FOR THE SUMMER. THAT'S IT.

THEY CAN'T AFFORD IT. I UNDERSTAND WHERE WE ARE AT. WE NEED TO THINK ABOUT THEM AND SEE WHERE WE CAN CUT WHAT EVER WE'RE TRYING TO FUND AND HELP THEM OUT. IN RESPONSE THE THAT.

I ASKED OTHER DAY ABOUT SOME OF THE COVID FUND MAYBE STILL BEING AVAILABLE HAVE WE LOOKED INTO THAT? TO SEE WHAT -- BECAUSE ULTIMATELY, THIS IS BECAUSE THE FEDERAL GOVERNMENT IS NOT ALLOWING MORE FLOW OF OUR GAS. WHETHER OR NOT THAT'S DUE TO COVID OR CHANGE OF ADMINISTRATION, SHOULD NOT BE HURTING OUR, YOU KNOW, COMMUNITY.

I DON'T KNOW IF THAT -- MAYBE THEY KNOW SOMETHING MORE THAN WE DO. I DON'T KNOW.

>> I HAVE NOT LOOKED INTO ANY KIND OF COVID FUNDING TO OFF SET THIS. WE'RE CONTINUE TO LOOK INTO THAT. I HAVEN'T HAD A CHANCE TO LOOK INTO THAT SINCE WE TALKED LAST.

>> I HEAR YOU LOUD AND CLEAR WE WILL CONTINUE TO LOOK AT OUR BUDGET AND PRESENT ANOTHER PCA ADJUSTMENT.

WE'LL MAKE SURE WE BRING IT BACK EVERY BOARD MEETING.

AT LEAST ONCE A MONTH. TO THE BOARD TO ADDRESS YOUR

QUESTIONS MRS. BENNETT. >> I THINK IS IMPORTANT TIME, TOO TO BE PUSHING OUT. I THINK WE TALKED ABOUT IT AT THE LAST MEETING TO HAVE THAT COMMUNICATED OUT,

AGAIN. >> YES.

>> I MEAN, REALLY, WE ARE GOING TO -- HOW MUCH DO WE HAVE IN THE WE-OP PROGRAM. I BELIEVE IT'S 225.

I BELIEVE IT'S 225 IN THE WE-OP PROGRAM.

WE WILL MAKE -- TO I BELIEVE AT THE NEXT BOARD MEETING WE WILL SHOW YOU WHAT'S IN THE WE-OP.

WE ALSO AS THEY MENTIONED THEY ARE PUSHING OUT HOW TO CONSERVE ENERGY THROUGH TEIR PLATFORM.

WE WILL CONTINUE TO SHARE THAT AS WELL.

YOU CAN DO QUITE A BIT FOR REDUCING SOME ENERGY WHEN -- ESPECIALLY WHEN NOT HOME OR IF YOU ARE HOME HELPING REDUCE THE ENERGY. THERE'S SOME THINGS WE CAN DO TO HELP OUR CUSTOMERS TO EDUCATE THEM.

WE WILL CONTINUE TO PUSH THAT FORWARD.

WE-OP IS IMPORTANT AND ENERGY CONSERVATION IS IMPORTANT ONE. WE WILL --

>> MR. CHAIRMAN, WHAT DO YOU CALL IT STANDARDIZED MONTHLY

[02:25:04]

AND OF COURSE WE HEAR ABOUT IT FROM TIME TO TIME.

IF WE COULD TAKE WHAT WAS PRESENTED TO US TODAY AND MAKE SOMETHING KIND OF EDUCATION PIECE; SOMETHING

THEY CAN UNDERSTAND. >> THIS THE PRETTY HIGH LEVEL. IN TERMS OF JUST SVOCABULAR.

WE WANT THEM TO UNDERSTAND WE ARE NOT DOING BECAUSE WE WANT TO DO IT. IT'S SOMETHING WE DO BECAUSE WE HAVE TO. WE DON'T HAVE A CHOICE.

OR ELSE THEY ARE NOT GOING TO HAVE POWER.

AND WE'RE NOT GOING TO HAVE POWER.

>> WE'RE NOT MAKING ANY MONEY ON IT.

THIS IS LITERALLY JUST A PASS THROUGH.

>> PCA DOESN'T HAVE INVOLVED IN THE TRANSFER.

>> IT'S SIMPLY TO PAY FOR THE PRODUCT.

I DON'T THINK A LOT OF PEOPLE UNDERSTAND THAT.

>> I KNOW RACHEL IS BRAINSTORMING HOW TO COMMUNICATE THAT. YOU ARE ABSOLUTELY RIGHT.

WE NEED TO COMMUNICATE THAT. IN A DIFFERENT WAY.

AND IN LAYMEN'S TERM. EVERYONE UNDERSTANDS GAS GOING UP. THIS IS SIMILAR.

IT'S NOT -- WE DON'T CONTROL THAT.

I MEAN, WE ARE A ESSENTIAL SERVICE UTILITIES.

IT'S A LITTLE BIT DIFFERENT COMMODITY.

YOU NEED WATER AND ELECTRIC. WE UNDERSTAND THAT COMMUNICATING WITH THE CUSTOMERS IS IMPORTANT.

>> IF YOU CAN'T AFFORD TO PAY THE INCREASE.

WE -- THESE LINES WON'T BE MET ANYWAY.

IF A LOT OF PEOPLE -- >> WE HAVE TO WE HAVE TO I KNOW WE HAVE TO PAY FOR THE COST OF THE PRODUCT.

WE HAVE THINK ABOUT THE CUSTOMER AND TRY TO HELP THE CUSTOMER AS MUCH AS WE CAN. AND STILL BE ABLE TO PAY FOR THE PRODUCT. THOSE ARE SOME OF MY IDEAS.

IN TERMS OF MONTHLY AMOUNT THAT'S STANDARD.

>> BUDGET BILL SING GREAT. WE'LL MAKE SURE WE CONTINUE TO MARKET THAT. THAT'S A BIG ONE.

>> I WOULD JOIN THE BOARD IN THE MIDDLE OF THE CHAOS OF COVID. AT THE TIME WE HAD FUNDING THAT WAS GIVEN THE COUPLE OF THE LOCAL NOT SAY WE SHOULD PAY BILL. IF THEY FELL SHORT OR SOMETHING OR IF THEY HAD BELOW A CERTAIN INCOME OR

SOMETHING. >> WE USED WE-OP MONEY.

WE USED THE WE-OP. >> IT'S SO SMART TO USE THE WE-OP. HOWEVER IT DOESN'T HELP THEM LONG-TERM. I HATE TO --

>> THAT WAS THE BUDGET FROM 2020.

FOR THIS KIND OF EVENT. I WOULD NOT WANT.

THAT MONEY IS GOING TO BETTER SERVED FOR THAT COMMUNITY OR ANY COMMUNITY THAT NEEDS TO HAVE UPDATES TO THEIR HOME. BECAUSE IT WILL PAY ITSELF OUT. INSTEAD OF JUST RIGHT NOW.

WE HAVE SOME PRETTY GOOD IDEAS WHAT WE PLAN TO DO WITH THE WE-OP AND REVAMP THAT PROGRAM.

TO MAKE IMPROVEMENTS THAT MAKE IMPACT.

MAYBE SMALLER NUMBER OF IMPROVEMENTS TO MAKE IMMEDIATE IMPACT AND GET AS MANY CUSTOMERS AS POSSIBLE.

WE'RE WORKING ON SOMETHING. WE WILL MAKE SURE THAT WE GET THAT TO THE NEXT BOARD MEETING.

BARBARA, ARE YOU FAMILIAR REAL WELL WITH WE-OP CONSIDERING YOU MAY HEAR MOST OF THIS FEEDBACK.

YOU KNOW, I WANT TO MAKE SURE THAT YOU'RE --

>> THE WEATHERIZATION PROGRAM.

>> AND HOW TO FUNNEL PEOPLE TO FILL THE PROGRAMS OUT.

>> WE WILL GET THAT TO NEXT BOARD MEETING.

[02:30:02]

>> I HAVE SOME THINGS TO ADD TO THAT.

I KNEW THIS CONVERSATION WAS COMING UP TODAY.

AND I REACHED OUT TO DOUG WITH SELF.

WE SPOKE AT LENGTH AND YOU KNOW, THAT ORGANIZATION THEY ARE WELL-KNOWN THROUGHOUT THE COUNTRY FOR WHAT THEY DO. THEY OFF LOW INTEREST FINANCE FOR THE TYPE OF THING WE TALK ABOUT NOW.

AT NO POINT MORE CRITICAL FOR US TO PUSH THAT THAN IT IS RIGHT NOW. I KNOW WITH OUR ENGINEERING FIRM THAT'S SOMETHING WE'RE GOING TO START PUSHING AND MARKETING. WE CAN OFFER THE SERVICE.

YOU CAN GET LOW INTEREST FINANCING THAT WILL REDUCE YOUR ELECTRIC BILL MORE THAN THE MONTHLY PAYMENT OF THE LOAN WILL COST YOU. ONE OF THE THINGS THAT CAME UP DURING THE COURSE OF THE CONVERSATION NOT ONLY SHOULD WE AS UTILITY BE PUSHING THAT PROGRAM, BUT THERE MAY BE SOME OPPORTUNITY TO COMBINE WE-O BE FUNDS WITH THE LOANS SO THAT WE CAN HELP A LOT MORE PEOPLE.

THAT'S SOMETHING WE NEED TO CONSIDER.

THAT BEING SAID, I KNOW WE NEED TO RAISE THE POWER COST ADJUSTMENTS. WITH EVERYTHING GOING ON RIGHT NOW, AS A BOARD. THE FPUA LEADERSHIP SHOULD HAVE SOME BREAK POINT IN MIND TO SAY, THE STARS WERE ALIGNED, EVERYTHING WORKING OUT FOR US TO GO GET NEW BOND PHENOMENON AND MOVE FORWARD ON SOME BIG PROJECTS. THAT'S NOT TRUE ANYMORE.

I MEAN, I WOULD GIVE A BIG TOE TO GROW.

MY MOTHER LAW SAID THERE'S ONLY SO MUCH BLOOD YOU CAN GIVE. AT WHAT APPOINTMENT DO WE SAY THERE'S NOTHING LEFT TO SQUEEZE OUT? I'M NOT READY TO SAY I'M AT THAT POINT TO RECOMMEND THAT WE JUST PUMP THE BRAKES AND STOP THE TRAIN FROM GOING FORWARD ON SOME BIG PROJECT. WE SHOULD BE THINKING ABOUT THAT. EVERYONE ON THE BOARD, I BELIEVE SHOULD HAVE SYSTEM BREAK POINT IN MINORITY AND SAY OKAY. WE HAVE TO STOP NOW.

WE JUST CAN'T CONTINUE TO ASK MORE FROM OUR CUSTOMERS.

>> ANYONE CARE TO MAKE A MOTION?

>> NO. >> I UNDERSTAND -- SOMEONE WILL MAKE IT WITH RESERVATION.

WE NEED TO TAKE ACTION. EVEN IF WE VOTE TO TAKE NO ACTION. IT'S NOT ADVISABLE.

I'M NOT ALLOWED TO MAKE THE MOTION.

>> ONE LAST QUESTION. THE RECOMMENDATION FOR TOTAL PCA OF $44 IS THAT THE MINIMUM WE NEED TO MEET THE BOND COVENANT BASED ON THE PROJECTIONS?

>> MINIMUM WE NEED IS $41. WE'RE TRYING TO GIVE OTHER OPTIONS SO THAT, THAT THEY WEREN'T MEETING THE TARGET.

WE LOOK FOR WHAT ELSE CAN WE FIND FOR THE BOND PROCEEDS.

IT WAS DISCUSSED AND BROUGHT UP WE COULD QUALIFY THE RATE-FUNDED PROJECTS THAT WERE NOT PREVIOUSLY DEEMED TO BE PART OF THAT. THE ISSUANCE FOR AND CONSIDER THOSE AS PART OF THE ISSUANCE.

>> THE 44 -- >> ALLOWS US CASH.

THE 26-PLUS WOULD POSTPONE SOME OTHER CAPITAL PROJECTS THAT WE HAVE ON OUR LIST. THE 41 WOULD NOT POSTPONE SOME OF THE CAPITAL PROJECTS.

>> I HEARD WHAT YOU SAID ABOUT THE $41.

IN ONE SENSE I THINK THAT IT'S -- THIS THE WHAT WE DID WITH THE PCA BEFORE WE JUST WENT OFF AND DID 18.

AND BIT THE BULLET. WE DID THAT.

WE DID THAT. BUT I DON'T FEEL SO STRONGLY ABOUT THAT NOW. I'M WONDERING IF WE COULD DO THE 26 INCREASE AND THEN SEE WHAT'S HAPPENING NEXT MONTH

[02:35:03]

DOES THAT MAKE IT MORE PALLETABLE.

THE NEXT TWO OPTIONS WILL BE HIGHER THAN WHAT'S HERE.

>> WE COULD BE IN THAT. >> WE COULD BE IN THAT BOAT.

>> KEEP IN MIND, TOO IF WE DO THE 26 NOW.

AND WE DO SOMETHING INCREMENTAL IN AUGUST OR WHATEVER. YOU'RE NOT GOING TO RECOUP AS MUCH NOW. BECAUSE YOU ARE ONLY DOING THE 26. IT MAY BE MORE OF STRETCH THAN GOING TO 35. IT MIGHT BE 40 OR SOMETHING.

I'M NOT KNOWING NUMBERS. YOU ARE NOT RECOUPING AS MUCH NOW. YOU NEED TO MAKE IT HIGHER TO RECOUP WHAT YOU THOUGHT YOU WOULD GET.

>> YOU ARE NOT GETTING AS MUCH NOW.

>> THESE LINES ARE BASED ON GETTING THEM.

>> YOU NEED A BIGGER STEP. THE OPTIONS ARE OUT THERE.

>> MY THOUGHTS IF YOU RAISE THE 41, WE CAN GET INTO THAT

ZONE QUICKER. >> LOWER DOWN THE PCA COUPLE OF MONTHS AGO. WE MIGHT BE AT THE $60 INCREASE. I STILL NEED SOMEONE TO MAKE A MOTION. LIKE IT OR NOT.

>> LET ME BE CLEAR ABOUT THE FACT.

PRICED NATURAL TO US IS 3 TIMES WHAT IT WAS A YEAR

AGO. >> AM I REMEMBERING THAT

RIGHT. >> YES, MA'AM.

>> IF WE MAKE A BUDGET THIS YEAR, ARE WE GO -- WE'RE GOING TO HAVE TO BUDGET THE HIGHER PRICE?

>> WE ARE GOING TO BUDGET THE HIGHER PRICE AND BEFORE WE FINALIZE THAT BUDGET, WE WOULD BRING A DISCUSSION ITEM TO BOARD FOR LOCKING THOSE PRICES IN THE FUTURE SO WE CAN MITIGATE THAT HIGHER BUDGET THAT WE WOULD EXPECT IF WE DIDN'T LOCK IN THOSE KIND OF PRICES.

I HOPE THAT ANSWERS YOUR QUESTIONS.

>> YEAH. OBVIOUSLY, YOU WOULD HAVE TO. WE WOULD DO EVERYTHING POSSIBLE TO MITIGATE A FUTURE -- MUCH LARGER BUDGET

INCREASE COMPARED LAST YEAR. >> YEAH.

>> MR. CHAIRMAN, I WILL MAKE MOTION TO CHANGE THE PC AND TO $41. PLUS 41.

>> WE HAVE A SECOND? >> I WILL SECOND.

>> PLEASE CALL THE ROLL.

>> MOTION CARRIES. DIRECTOR.

[J. DIRECTOR:]

>> THE UTILITY ADVISORY COMMITTEE SCHEDULED TO MEET TOMORROW IN THIS CHAMBERS FROM 4:30 TO 5:30.

WE'LL HAVE THE TEAM ON HAND TO HELP THE UTILITY ADVISORY COMMITTEE THROUGH THE PROCESS AND WE'LL MAKE SURE WE KEEP THE BOARD AND CITY COMMISSION UP TO SPEED WITH THE PROGRESS. THAT SHOULD BE EXCITING FOR TOMORROW. YESTERDAY AFTERNOON AND EVENING WE HAD A STORM EVENT THAT I WOULD COMPARE TO A SMALL BUT POWERFUL HURRICANE WITH TORNADOES AND LIGHTNING EFFECTED APPROXIMATELY WE CREW WORKING UNTIL 2:30.

ADDITIONAL CREWS CAME IN TO HELP ADDRESS SPORADIC ISSUES. I WOULD LIKE TO THANK THE CREWS FOR THEIR SAFE AND FAST RESPONSE TO RESTORING POWER. YESTERDAY WAS A CRAZY EVENT.

>>> WE HAD FIRST MEETING TODAY WITH RESILIENT FLORIDA PROGRAM. AND IT WAS A GOOD MEETING.

WE SPECIFICALLY TALKED ABOUT THE RELOCATION OF THE WASTEWATER LAND. IT SEEMS TO BE PERFECT CANDIDATE FOR SCORING MATRIX AS IT RELATES TO GRANTS.

RACHEL WILL PROVIDE AN UPDATE ON OUR INITIATIVES.

I WOULD LIKE TO CON CONGRATULATE RACHEL.

PART OF OUR TRANSITION PLAN UPCOMING RETIREMENT OF JAN WOOD MEYER IN EARLY SEPTEMBER.

STAFF FOR BEING HERE TODAY.- ONE LAST THING THAT I WILL MENTION IS THAT THURSDAY WE HAVE THE SIGNING OF THE LOAN

[02:40:02]

IT'S 8:30 IN THE MORNING. >> A LITTLE BIT MORE

FLEXIBLE NOW. >> EVERYBODY IS SHOWING UP AT 8:30. 8:30 SIT.

>> WE'LL HAVE THAT ON THURSDAY.

AND THEN THE FINAL CLOSING OF THE LOAN WILL BE JUNE 21ST. REMINDER WE DO HAVE THE NEXT BOARD MEETING AFTER OUR HOLIDAY.

WE DIDN'T CHANGE OUR TIME. WE'LL HAVE OUR MEETING AT 4:00. I BELIEVE, RIGHT, JILL? MOST LIKELY A SHORTER MEETING BUT WE'LL HAVE TO BE

OUT BY 6:00. >> THAT'S JULY.

>> THE MEETING IN JUNE WE START AT 4:30.

THAT'S ON MY CALENDAR. THIS MEETING IS AT 2:00.

>> THANK YOU MAYOR HUDSON AND JOE.

I DIDN'T LOOK AT MY CALENDAR CORRECTLY.

WE START EARLIER THAT DAY. IT'S JUNE.

OUR MEETING WILL START EARLIER AT THE NEXT BOARD MEETING. WE WILL MAKE SURE THAT WE GET THAT OUT TO THE BOARD MEMBERS.

[K. ATTORNEY:]

>> THAT'S ALL I HAVE MR. CHAIR.

ANY REPORT FROM THE ATTORNEY.

>> I WILL NOT BE HERE ON THE 12TH.

DUANE TOLD ME HE WOULD GET DOCUMENTS TO ME BY TOMORROW.

I HAVEN'T GOTTEN ANYTHING YET.

[L. COMMENTS FROM BOARD MEMBERS:]

>> OKAY. >> ANY COMMENTS FROM THE

BOARD MEMBERS? >> THIS WAS A HARD MEETING.

BUT I HOPE AND I KNOW YOU WILL, YOU WILL CONTINUE TO LOOK AT ITEMS WE CAN CUT IN ORDER TO HOPE OUR RATE PAYERS. THE ECONOMIC CYCLES ARE TOUGH. IT'S JUST THE WAY IT WORKS.

THE QUESTION IS, HOW LONG WILL IT LAST.

LIT PASS IN TIME. JUST HOPEFULLY THIS WOULD BE A SMALL TIME. BECAUSE I DID NOT LIKE HAVING TO RAISE RATES LIKE WE DID DURING THE SUMMER.

DEFEATS ALL THE HARD WORK WE DONE IN THE PAST YEARS.

UNFORTUNATELY, ECONOMICS ARE ECONOMICS.

THE NUMBERS COUNT. >> THIS BEYOND OUR CONTROL.

>> IT IS. >> IT'S TRULY BEYOND OUR CONTROL. AND I REALLY WISH THE GOVERNMENT WOULD DO SOMETHING TO HELP US AND THOSE SIMILARLY SITUATED THROUGHOUT THE COUNTRY.

BECAUSE I DON'T THINK WE'RE THE ONLY COMMUNITY FEELING

IT. >> EVERYBODY IS FEELING IT.

>> WOULD IT HELP TO GET THE COMMUNITY MEMBERS TO SIGN A PETITION OR ANYTHING? TO HELP SUPPORT --.

>> WE COULD DO SOME OUTREACH TO HELP GIVE THE PUBLIC SOME KNOWLEDGE ABOUT WHAT'S GOING ON AND HELP THEM PUSH THAT INFORMATION OR THEIR CONCERNS TO THEIR LOCAL REPRESENTATIVES SPECIFICALLY THE ENERGY COMMITTEE THAT'S PRETTY IMPORTANT FOR US TO DO THAT.

THEY ARE THE ONES THAT REALLY ARE ON THE COMMITTEE AND CAN MAKE SOME IMPACT. THAT'S A GOOD SUGGESTION.

>> OUR ADVISORY COMMITTEE, ARE YOU GOING TO BE SHARING THE LETTER WITH THEM TOMORROW?

>> WE CAN AND LETTING THEM KNOW WHAT'S GOING ON WHAT WE NEED TO COMMUNICATE -- IS THERE ANY MEMBER ON THE

SENATE COMMITTEE? >> THERE ISN'T.

>> I DON'T THINK SO. >> NO.

>> ANY MEMBER OF THE ADVISORY COMMITTEE GOING TO

ATTEND OUR MEETINGS? >> ARE THEY GOING TO ATTEND

OUR MEETINGS? >> WE HAD ONE MEMBER TODAY ATTEND OUR MEETING. UTILITY ADVISORY COMMITTEE.

>> IT WOULD BE HELPFUL IF THEY WOULD ATTEND.

>> I AGREE WITH YOU. >> I AGREE WITH YOU.

>> OR AT LEAST WATCH US ON TV.

>> WE WILL TALK ABOUT THE UTILITY ADVISORY -- FPUA BOARD AND OUR MEETING SCHEDULE.

THEY NEED TO KNOW THAT. PART OF THEIR SCOPE OF WORK IS TO PROVIDE SOME UPDATES TO THE FPUA BOARD ABOUT HOW CAN WE DO THINGS BETTER. THEY DO HAVE -- THEY WILL HAVE TO BE ENGAGED WITH THE ACTIVITY BOARD AND THE CITY

COMMISSION. >> AND THE PUBLIC.

THEY ARE GOING TO NEED TO UNDERSTAND WHAT'S BEHIND THIS, WHAT WE LEARNED TODAY AND WHAT WE HAD TO DO.

>> I WOULD LOVE FOR THEM TO BE INVOLVED IN THE WE-OP

DISCUSSION. >> YES.

>> MORE PEOPLE THAT KNOW HOW TO COMMUNICATE IT, AND WHERE TO DIRECT PEOPLE THE BETTER OFF WE WILL ALL BE.

>> MORE CHAMPIONS THE BETTER, ABSOLUTELY.

>> ALL RIGHT. I THINK WE

* This transcript was compiled from uncorrected Closed Captioning.