[G.1. POA 18-40: Approve Amendment No. 3 to the Smart Grid Solutions Contract for Advanced Metering Infrastructure (AMI) with Elster Solutions, LLC, of Raleigh, North Carolina, to increase the original unit price of materials and warranties by 9%, contingent upon receipt of the required Certificate(s) of Insurance. ]

DETAILS WE WILL SHARE THEM WITH THE BOARD AND THE COMMUNITY. I WOULD LIKE TO MOVE TO FIRST ITEM OF NEW BUSINESS THIS AFTERNOON.

IT'S REQUEST TO APPROVE AMENDMENT NO. 3 WITH ELSTER

SOLUTIONS. >> THANK YOU.

DANIEL RUTHERFORD DIRECTOR OF UTILITY SERVICES.

I'M HERE TO REQUEST APPROVAL FOR AMENDMENT NO. 1.

FOR THE PURCHASE OF SMART GRID LET ME ASK YOU THIS.

THEY SENT FPUA AN E-MAIL LETTING US KNOW THEY COULDN'T FULLFILL THEIR COMMITTEDMENT DUE TO MATERIAL INCREASES AND SOMETHINGS LIKE THIS.

THEY ASKED FOR 12 PERSIAN. THAT DIDN'T SIT WITHIN THE COMPOUNDS OF THE ORIGINAL CONTRACT.

WHAT WE'VE BEEN ABLE TO DO THEM.

THIS WAS ORIGINAL CONTRACT YOU EARLY FOR A TOTAL AMOUNT. IT'S FOUR OR FIVE-YEAR

CONTRACT. >> THEN WE WILL GET 41/2 PERCENT INCREASE EVERY YEAR. BUT TO BE APPROVED ANNUALLY.

WE HAD TO REVIEW IT AND APPROVE IT.

THIS THE NOT REQUEST TO INCREASE THE ORIGINAL CONTRACT. THAT YOU'VE APPROVED.

WE'LL HAVE DECIDED TO DO RATHER THAN PURCHASE THIS WITH A 4% INCREASE OVER THE NEXT 3-484S TRYING TO

>> IF WE PURCHASE THE STUFF IT WILL WORK OUT FOR THE BETTER. WE WILL TRY TO PURCHASE EVERYTHING STARTING WITH 9% INCREASE FOR THE REMAINDER OF THIS YEAR. WE WILL COME BACK TOGETHER.

LOOK AT THE PRICES SEE WHAT HAS TO HAPPEN.

WE WILL REPURCHASE NEXT YEAR.

THIS IS FOR SIMPLE PURCHASE AMENDMENT.

>> ANY QUESTIONS OF THE BOARD.

>> IS THIS DIFFERENT? WE'RE TRYING TO DO THIS

BECAUSE OF THE SUPPLY CHAIN? >> WE J, MA'AM AT THE END OF LAST YEAR ANY HAVEN'T BEEN ABLE TO SUPPLY WHAT THEY ARE SUPPOSED TO. AND AT THE PRICES THAT WERE IN THE CONTRACT. WE WERE PLANNED THIS SUMMER FOR 4% INCREASE BY CONTRACT ALREADY.

WHAT THEY SAID WE NEED A 12%.

WE'VE BEEN NEGOTIATINGS. WE GOT THEM TO 9.

WE WILL TRY TO PURCHASE EVERYTHING WE CAN.

RATHER THAN THE NEXT 3 AND A HALF TO 4 YEARS.

WE WILL GO TO 90% INCREASE. AND TRY TO BEAT THAT.

AND TRY TO BEAT THE CLOCK. I THINK IT WILL DO GOOD IF WE ALL OF THE THINGS ORDERND AND DELIVERED.

IF KEY THE CUT PO SO WE CAN GET AIL THE DO YOU RECALL INTO THE CUE. THAT'S THE TICKET TO BUYING THINGS THESE DAY. IF YOU TELL YOU BUY SOMETHING IN 2024. S THIS IS JUST A TACTING.

I ASK TO RESPOND IT NOW. WE JUST GOT IT AND PROCEEDS FROM THE BOND. THAT WAS PART OF I'M ASKING TO SPEND IT DIFFERENTLY AND IN MY OPINION, SMARTER.

BASICALLY WE'RE ABOUT TO HAVE A 4 AND A HALF PERCENT INCREASE. NEXT YEAR WOULD BE ASSUMED ANOTHER 4 AND A HALF. NEXT YEAR WHEN WE GO TO

[00:25:01]

APPROVE THIS AGAIN THERE'S NOT GOING TO BE ANOTHER INCREASE. JANUARY WE ARE HAVE A TACK LA LOOJ TAKE A LOOK AT THE MARKET.

SEE IF THEY CAN STILL DELIVER ON THE PRICES THAT WE HAVE. AND IF NOT WE WILL RENEGOTIATE. BUT WHAT IT DOESN'T DO IS LOCK US INTO ANOTHER THREE OR FOUR YEARS.

THEY WERE TRYING TO GET US TO DO THAT WITH GUARANTEEDED INCREASES AND HIT US WITH SURCHARGES.

WE DIDN'T WANT TO OPEN A CHECKBOOK TO ANYONE.

>> IF I UNDERSTAND CORRECTLY.

THE MAIN GOAL HERE IS TO TRY TO AVOID SOME OF THE INFLATION WE'RE ALREADY EXPERIENCING.

>> AND THE WE DELAYS. BEING A CONSTRUCT INDUSTRY WE'VE SEEN INFLATION HAS GONE BANANAS.

NOTHING EVEN SHOCKS YOU ANY MORE WHEN A VENDOR SAY THEY WANT SOME DIN WE WERE ABLE NEGOTIATE AND GET IT DOWN TO 9%. ASSUMING IT WOULD BE X PERCENTAGE EVERY YEAR, HAVE YOU DONE AN ANALYSIS ON WITH THAT PERCENTAGE PROJECTION? IF WE CAN GET THIS 9% TO GO THROUGH, HOW MUCH WILL WE BE SAFE IMAGE OF THE CONTACT.

OVER HOW MANY YEAR. >> IF WE'RE ABLE TO ACTUAL GIL GET THE PRODUCT WRSZ WHICH TRYING TO PERFECT.

ON THE COMPOUNDING OF THE 4, 4 AND A HALF WE WILL NOT SEE AND THIS CONTRACT WAS END LOADED.

>> WE'RE ABLE TO PURCHASE AND DELIVER IN THE NEXT 18 MONTHS AS OPPOSED TO THE ORIGINAL WHICH WOULD CARRY

OUT OUT THROUGH 2025. >> DO YOU HAVE A QUESTION? I'VE WITHIN WITH THEM FOR A LOT OF NEGOTIATIONS.

THEY HAVE TAKEN PLACE OVER A LONG PERIOD OF TIME.

ORIGINALLY THEY WANTED 12% INCREASE PUT A QUARTERLY SURCHARGE. WE WORKED OURSELF OUT OF THAT. PLUS IF YOU LOOK AT IT IN A DIFFERENT WAY, TOO. ALTHOUGH WE AGREED TO A 9% INCREASE WE WOULD HAVE HAD 4 AND A HALF THIS YEAR ANYWAY.

THE WAY I LOOK AT IT YOU ARE ONLY INCREASING IT BY 4 AND A HALF PERCENT UNLESS I'M NOT LOOKING AT IT THE RIGHT

WAY. >>

>> REMEMBER THE 4 AND A HALF THAT WAS SCHEDULED.

THEY COULDN'T DELIVER ON THAT.

THAT WASES OVER. OUR ONLY OPTION WOULD THEN WOULD BE ILLEGAL. WE COULDN'T HAVE ORDERED ON

THAT 4 AND A HALF. >> THIS IS ALL COMING FROM

THE BOND MONEY; CORRECT? >> AS I RECALL FROM THE BOND WE HAVE TO USE IT FOR THAT SPECIFIC PURPOSE.

>> YES, SIR. >> WE HAVE TO SPEND IT WITHIN A SPECIFIC TIME. ORDERING IT NOW KEEPS US WITHIN THE TIME FRAME IF WE'RE ABLE TO SAVE SOMETHING NOW MAYBE THAT'S MONEY THAT WE CAN SAVE AND USE FOR SOME OTHER PURPOSE THAT FITS WITHIN THE BOND.

>> IS THERE A STRATEGY TOED ORDER ALL OF THEM NOW.

WITHOUT EXPECTATION THAT ALL OF THEM WILL BE DELIVERED OR

JUST A PORTION OF THEM? >> WE DON'T HAVE AN EXPECTATION. THEY WILL BE ABLE TO DELIVER EVERYTHING ON THE CONTRACT. WHAT WE WOULD LIKE TO DO GET EVERYTHING UNDER CONTRACT. ORDERED.

SO WE CAN GET INTO THE MANUFACTURING CUED AND LET THEM DELIVER EVERYTHING THEY CAN AT THESE LOCKED IN PRICES BY THE END OF THIS YEAR.

COME DECEMBER, WHATEVER NOT ABLE TO HAVE BEEN DELIVERED WE TAKE A LOOK AND SEE. ARE WE CLOSE ENOUGH IN THOSE CUES FOR THAT STUFF TO BE DELIVERED IN THAT PRICE.

IF N DOESMENT LOOK LIKE COME JANUARY.

[00:30:04]

THAT'S THE -- THAT'S WHAT WE WILL TRY THE DO.

NEXT YEAR WE'LL RENEGOTIATE A PRICE.

KEEPING IN MIND WHAT OUR ORIGINAL CONTRACT LOOKED LIKE. TRYING TO BE BETTER THAN AND TRY TO ORDER EVERYTHING WE CAN AFTER JANUARY FOR NEXT

YEAR. >> THE I SERVE ON THE FIRE BOARD. THAT'S THE STRATEGY, ARE VERY SIMILAR TO THEY RILD BEING NEW FIRE STATIONS OUT WEST. SEVERAL NEW IN THE WESTERN PART OF THE COUNTY. THEY ARE ORDERING THE MOST OF THE EQUIPMENT THAT BE NEEDED NOW BECAUSE OF AN EXPECTATIONS NOT BEING DELIVER TORE PRICE GOING WAY WAY, WAY TOO FAR UP. IT'S A STRATEGY THAT --YES WE, MA'AM. JIERTS A STRATEGY WE'RE UP AGAIN IN THIS MARKET. A LOT OF FOLKS ARE PREORDERING THINGS FOR CONTRACTS THEY DON'T HAVE.

JUST IN ANTICIPATION TO GET THE MATERIALS.

IF THEY DON'T THEY CAN'T COMPLETE THE PROJECTS THEY DO GET. IT'S A NEW STRATEGY IN THE MARKET. IF WE DON'T LEARN HOW TO PLAY THAT GAME. WE'LL NEVER GET OUR PROJECTS FINISHED. OR PAY A LOT MORE FOR -- PAY

A LOT MORE IN THE END. >> ANY OTHER QUESTIONS OF

THE BOARD? >> I SEE YOUR ALTERNATIVE HERE OTHER THAN APPROVE THIS INCREASE FOR 9%, WHICH IS LESS THAN 12% THEY WANTED. WHICH PLAN TO PURCHASE MORE SO WE CAN SAVE ON INFLATION THAT'S EXPECTED OVER THE NEXT COUPLE OF YEARS. OTHER THAN THAT DECISION ARE THERE ANY OTHER DECISIONS THAT WE COULD MAKE AS THE BOARD THAT WILL AT THE OWNED OF THE DAY BE THE BEST THING FOR RATE PAYER. OBVIOUSLY YOU GIVE US RECOMMENDATION. YOU BELIEVE THIS THE BEST FOR THE COMMUNITY. ARE THERE ANY OTHER OPTIONS THAT ARE RELATIVELY GOOD OPTION?

>> AT THIS POINT WE WOULD BE OUT OF CONTRACT IF WE DIDN'T -- IF WE DIDN'T APPROVE A NEW INCREASE TO THE PRICING WHICH IS WHAT THE DUE NOW.

IF WE DON'T IMPROVE THAT. WE'RE BACK TT DRAWING BOARD TO TRY TO RENEGOTIATE A DIFFERENT PRICE OR WE HOLD THEM TO ORIGINAL CONTRACT AND TRY TO PUSH THAT FORWARD. THAT WOULD BE A LEGAL MEASURE. THAT WOULD BE EXPENSIVE.

OR WE CANCEL THE CONTRACT. CANCELLING THE CONTRACT MEANS THE PROJECT IS DEAD OVER?

>> IT WOULD BE DEAD FOR NOW UNTIL WE CAN RESSURECT IT.

WHAT PERCENTAGE THROUGH THE PROJECT ARE WE AT THIS

POINT? >> ABOUT 33 TO 35% THROUGH.

THAT WOULD BE A LARGE SUM OF MONEY SPENT AND NOT

UTILIZED. >> SURE.

>> >> THE BOARD READY TO

ENTERTAIN A MOTION? >> I HAVE A QUESTION.

>> IF WE TRY TO HOLD THEM AT THE CONTRACT THAT THEY ORIGINALLY SIGNED WITH US. AND I KNOW YOU SAID THAT THERE WOULD BE LEGAL COST IN THAT.

HAVE YOU EVER LOOKED AT WHICH ONE OUT WEIGHS THE OTHER. WHETHER WE GO THAT ROUTE OR

JUST TRY TO SAVE THE MONEY? >> IT'S MY EXPERIENCE THAT LEGALLY PURSUING CONTRACT LIKE THAT ARE USUALLY FAR MORE EXPENSIVE THAN THE CONTRACTS THEMSELVES.

EYE NEVER REALLY BEEN ON THE GOOD END OF CHASING THOSE DOWN LEGALLY. MY OPINION WOULD BE YOU WOULD SPEND MORE MONEY TRYING TO PRESS IT LEGALLY IN THE REGULAR CONTRACT. THAT COMPANY SIMPLY CANNOT DELIVER WITH THE CHANGES IN THE MARKET.

THIS THE 3-YEAR PLUS-YEAR-OLD CONTRACT AT THIS POINT. THAT COULD NEVER HAVE ANTICIPATED WHAT THE MARKET HAS DONE OVER THE LAST FEW YEARS. THEY SIMPLY CAN'T BUY THOSE MATERIALS AND MAKE THOSE THINGS AND DELIVER FOR THAT AMOUNT. OR FOR THE PLANNED INCREASES THAT WERE INTO THE CONTRACT. IT'S JUST TOO EXPENSIVE NOW.

THIS IS NOT ABNORMAL. THIS HAPPENING IN MOST FIELDS. COMPANIES ARE CANCELLING CONTRACTS OUT RIGHT. OR THEY HAVE TO RENEGOTIATE A PRICE. I HAVE A QUICK QUESTION.

OBVIOUSLY MY BUSINESS IS SMALLER.

IT'S A LITTLE BIT DIFFERENT. >> HAVE WE GONE BACK AND TAKE AN SECOND LOOK AT SOME OF THE OTHER KRAENS THAT WOULD HAVE COMPETED AGAINST THIS ORIGINAL BID?

>> AND HAD A SECOND LOOK AT THEM.

WHAT WOULD THAT EVEN LOOK LIKE? JUST SO WE UNDERSTAND THE WHOLE CHAOS THAT COULD BE

ENSUED IF IT HAD TO? >> I GUESS WE COULD GO BACK

[00:35:02]

AND TAKE A LOOK AT MAYBE WHAT THAT MAY HAVE LOOKED LIKE. SINCE WE'RE 35% INTO THE CONTRACT. THAT'S REALLY KIND OF WATER UNDER THE BRIDGE. I DON'T KNOW WHAT BENEFIT WE WOULD ARRIVE FROM THAT. DERIVE FROM THAT NOW AT THIS

POINT. >> WE'RE TOO FAR IN WITH THE

COMPANY. >> WE'RE MARRIED TO THIS COMPANY WITH WHAT THEY PROVIDING.

ANY COMPANY WE WOULD BE LOOKING AT WOULD TRY TO SELL US MATERIAL AT THE CURRENT MARKET RATE BY THE FOLKS TRY TO GET US INTO THE CURRENT MARKET RATE.

THERE'S NO REAL SAVING TO BE HAD THERE.

>> ALL OF THE SYSTEMS ARE BY AND LARGE PROPRIETARY EQUIPMENT. NONE OF THE EQUIPMENT WE PURCHASED THUS FAR WOULD BE USABLE.

>> COMPATIBLE. >> RIGHT.

>> WE WOULD HIT TO SPLIT OUR SYSTEM.

WE LIKE THIS ONE. IT'S WORKING.

IT'S GREAT. I DON'T THINK THE REQUEST ARE UNREASONABLE. IT'S THE CONDITION OF THE MARKET. IT'S WHAT EVERYONE IS EXPERIENCING. I THINK WE'VE BEEN ABLE TO

WORK ALL GOOD DEAL. >> EVERYBODY IS PRESSED NOW.

>> HAVE WE WENT BACK TO THEM AND TRY TO RENEGOTIATE AT LOWER PRICE THAN THE 9%. I KNOW THAT -- I KNOW WE DONE IT BEFORE. WE CAN GO BACK AGAIN AND SAY, HEY, YOU KNOW, WE WERE AT 4 AND A HALF.

MEET US HALFWAY BETWEEN 9 AND 4 AND THE HALF?

>> THEY STARTED AT 12-PLUS QUARTERLY SURCHARGES.

>> AND WE WENT BACK TO LIKE FOUR OR 5%.

THEIR ANSWER WAS NO. >> IT WASN'T REALISTIC TO THEM. AFTER FOUR MONTHS OF NEGOTIATION THIS WHERE WE ARRIVED.

THE GOOD NEGOTIATIONS. >> IT WORTH TRYING AGAIN?

>> NOT IN MY OPINION. LET'S ENTERTAIN A MOTION FOR

OR AGAINST. >> MOVE APPROVAL.

>> SECOND. >> PLEASE CALL THE ROLL.

BRACK --

[G.2. POA No. 22-44: Approve Specific Authorization No. 56-WS-22-01, for the North Gas Expansion Design, with Weston & Sampson Engineers, Inc., of Reading, Massachusetts, in an amount not to exceed $338,400. The initial term of this contract will commence upon written Notice to Proceed and end upon final completion and written acceptance by FPUA, contingent on receipt of the required Certificate(s) of insurance. ]

THE NEXT SYMPTOM REQUEST SPECIFIC AUTHORIZATION FOR THE EXPANSION DESIGN SERVICES.

IT WILL INCREASE CUSTOMER PACE.

ERIC MEYER WILL PRESENT THIS ITEM.

THANK YOU, MR. CISNEROS. GOOD EVENING, CHAIRMAN FEE AND MEMBERS OF THE BOARD ON MAY 17TH, TO 2022.

ACCORDING TO THE PROJECT LISTEDED FOR FUNDING FROM DEBT SERIES 2022-A, NORTH FT. PIERCE EXPANSION OF THE GAS SYSTEM. THE FIRST STEP IN THIS PRO JIKT TO INITIATE ENGINEERING DESIGN WHICH INVOLVED SURVEYING PERMITTING AND DRAFTING OF ENGINEERED PLANS WITHIN THE PROPOSED GAS SYSTEM EXPANSION AREA.

THE PROPOSED PROJECT AREA EXTENDS EASTWARD THROUGH LAKEWOOD PARK AND EASTWARD TO NORTH U.S. HIGHWAY WAY.

PROJECT WILL CONTINUE SOUTH AND NORTH U.S. HIGHWAY ONE AND CONNECT INTO THE GAS SYSTEM ON NORTH 25TH STREET.

TOTAL MILEAGE 13.5 MILES. THE PROJECT HAS DECIDED TO USE A FIRM FOR SUPPORT ON THE PROJECT.

THE PROJECT NOTIFICATION WAS POSTED PUBLICLY ON OCTOBER 29TH, WHERE ONE FIRM REQUESTED TO APPLY FOR QUALIFICATION FOR GAS ENGINEERING VENDORS.

REQUESTED SPECIFICATION WHEN NOTIFIED THEY WOULD ACCEPT PROPOSAL ON APRIL 16TH, 2022 AND ALL FOUR FIRMS RESPONDED WITH PROPOSALS RESULTING IN 100% RESPONSE RATE.

>> STAFF REVIEWED THE PROPOSAL AND REQUESTING APPROVAL OF SPECIFIC AUTHORIZATION.

ENGINEERING DESIGN OF THE NORTH FT. PIERCE GAS EXPANSION PROJECT WITH WESTSON AND SOMESON ENGINEERING OF READING, MASSACHUSETTS.

THE PROPOSAL FROM THIS FIRM LOWEST IN THIS PRICE.

[00:40:04]

STAFF FEELS THIS FIRM WILL ADHERE TO FPUA'S SCHEDULE AND TIME LINE FOR COMPLETION.

IT WOULD BE HAPPY TO TAKE QUESTIONS YOU MAY HAVE AT

THIS TIME. >> ANY QUESTIONS OF THE

BOARD? >> I HAVE A QUESTION.

DO THEY -- THE CUSTOMERS WILL BE SERVED IN THAT AREA WITH NEW? IS THAT RIGHT?

>> I WAS TRYING TO GET IT TO DO A FULL SCREEN.

YEAH. THIS MAP SHOWS THE AREA THAT WE WILL PUT GAS MAIN. IT WILL START FROM I-95 GOING DOWN THE ROAD. WE'LL HAVE A LOOP THROUGH LAKEWOOD PARK. UP TO THE COUNTY LINE.

AND THEN THE MAIN WILL CONTINUED DOWN AND TURN AT U.S. HIGHWAY ONE AND CONNECT TO THE FPUA EXISTING GAS SYSTEM. THANK YOU.

>> MR. MYERS, IF WE APPROVE THIS; THEY GET STARTED ON THE DESIGN. THAT'S WHAT YOU ARE ASKING.

IT'S JUST FOR THE DESIGN, NOT THE CONSTRUCTION.

>> THAT'S CORRECT. >> WHAT'S THE SCHEDULE FOR THIS AFTER THE FIRST OF ALL FOR THE DESIGN TO BE COMPLETED THEN FOR THE CONSTRUCTION TO BE COMPLETED. WHAT'S THE SCHEDULE FOR

THAT? >> THE PROPOSED SCHEDULE IS AROUND JANNEDY OF 2023. THEY WILL HAVE PER MYTHEDING. SURVEYING AND THE DRAFTING PLANS. WE'RE GOING TO ASSIST WITH THE PROJECT AND ALL OF THE FIELD COMPONENTS THAT INVOLVE MOVING TO CONSTRUCTION.

AS FAR AS CONSTRUCTION WE HAVEN'T GONE TO BID FOR THAT YET. THAT WILL BE A SEPARATE ITEM AND I BELIEVE ONCE THE DESIGN IS COMPLETE.

WE'LL PROBABLY GO OUT TO BID FOR THE PROJECT.

I DON'T KNOW THE SCHEDULES ON THAT.

>> PROBABLY USING A UNIT PRICED CONTRACTOR WE ALREADY

HAVE. >> MOST LIKELY WE WILL WORK WITH CONTRACTOR THAT THEY HAVE ON CONTRACT.

OR LOOKING AT USING THEM AS RESOURCE FORBIDDING CONSTRUCTION SERVICES TO DO THIS.

>> MR. CISNEROS THIS IS A QUESTION FOR YOU.

SOME OF THE BOND MONEY WE SVED INCLUDED GAS EXPANSION, WHAT ARE THE REPERCUSSIONS OF US NOT MOVING FORWARD ON

THAT NOW. >> WE WOULD HAVE TO EXPAND OUTSIDE OF THIS GAS AREA -- IF I UNDERSTOOD YOUR QUESTION CORRECTLY. WHAT IF WE DIDN'T USE THE FUNDING NORTH GAS EXPANSION. COULD WE USE IT IN OTHER EXPANSION WITHIN THE AREA OR NOT USE IT AT ALL?

>> THAT'S WHAT I'M TRYING TO GET TO.

CAN WE NOT USE THE MONEY. THE BOND MONEY THE RESTRICTED FOR THE PURPOSE OF THE BOND ISSUANCE.

WE WOULD HAVE TO USE IT FOR SYSTEM EXPANSION.

THAT'S WHY IT CAN'T BE USED FOR ANY OTHER PURPOSE.

CAN'T BE USED TO FUND ANY PROJECTS LIKE FOR INSTANCE WE CAN'T FUND PROJECT CARE WITH IT.

CAN'T USE IT TO PURCHASE GAS.

IT HAS TO BE USED FOR UTILITY ITSELF FOR EXPANSION. WE HAVE TO USE IT WITHIN A CERTAIN AMOUNT OF TIME. I UNDERSTAND THAT.

IN MY MIND. THIS THE PROBLEM GLI A GOOD THING FOR ME TO SAY NOW. EXPENDITURES WILL PROBABLY BE HARD TO COME BY IN THE NEAR FUTURE.

>> AND IF THERE'S ANY WAY THAT WE CANNOT SPEND MONEY AND SOMEHOW HELP OUR COMMUNITY FINANCIALLY, THAT'S GOING TO BE THE DECISION THAT I'M GOING TO MAKE. THAT'S WHERE THE QUESTIONS

ARE COMING FROM. >> THE PROBLEM ON MY END A LOT OF THE EXPENDITURES. IT'S KIND OF A WEB OF COMPLICATION TO SEE HOW IT ACTUALLY IMPACTS THE CUSTOMERS. NOT AS EASY AS SAYING WE WILL NOT SPEND THE MONEY SO WE CAN REDUCE RATED.

MR. CHAIRMAN. THESE PLANS FOR EXPANSION WE MADE IN A SITUATION PRIOR TO THE NATURAL GAS PRICES

[00:45:04]

INCREASING. IT WAS PART OF THE PLAN.

WE HAD A BEAUTIFUL PLAN. WE'VE JUST HAD -- WE'VE KIND OF COME UP AGAINST. THE NATURAL GAS PRICE INCREASE AT THE NEXT TIME OF THE YEAR.

BUT -- THESE PLANS WERE MADE WITH THE CUSTOMER IN MIND FOR THE FUTURE. THIS IS GOING TO HELP THE

CUSTOMER FOR THE FUTURE. >> YES, MA'AM.

ANOTHER THING TOO, IS I WILL PROVIDE AN UPDATE LATER IN THE DIRECTOR'S SECTION. WE HAVE BEEN ABLE TO LOCK IN SOME GAS PRICES TO HELP CONTROL THE POWER COST ADJUSTMENT AND INTO NEXT YEAR SO WE CAN KEEP THE POWER COST ADJUSTMENT TRYING TO MAINTAIN IT AT THE LOWER LEVEL. WE MADE MOVED TO LOCK IN GLASS PRICES. SOME OF THOSE ACTUALLY HAPPENED YESTERDAY AND TODAY TO LOCK IN THOSE PRICES.

>> BUT THE PCA IS STILL GOING TO BE AT THE RATE THAT IT IS AT. THEREFORE IF WE LOCKED IN THOSE PRICES, HOW WOULD THAT HELP THE RATE PAYERS?

>> THAT'S A VERY GOOD I UNDERSTAND WHAT YOU ARE SAYING. WE'RE TRYING TO AVOID GOING TO THE TOP OF THE MARKET. THEY LOCKED IT IN AT 8, 7.75. LOCKED IN PRICES FOR NEXT YEAR AT THE 6.40 AND 6.20. THEY ARE ALL ABOUT THE VALUE IN THE FUTURE MARKET. WE HAVE A LOT OF RELIEF COMING. THEY ARE CONTINUING TO MONITOR THE GAS PRICES SO THEY CAN LOCK IT IN SO WE HAVE STABILITY FOR OUR CUSTOMERS.

>> WOULD IT BE SAFE TO SAY IF WE POSTPONE THIS YOU KNOW, UNTIL WE GET THOSE PRICES DOWN TRIER TO CONTINUE WITH THIS? WOULD BE SATISFACTORILY AT

THIS. >> THE BOND FUNDS ARE RESTRICTED FUNDS. THOSE HAVE TO BE USED FOR A PURPOSE. NOT APPROVING IT TODAY WOULDN'T IMPACT WHAT WE DO WITH THE GAS PRICES.

THERE'S TWO DIFFERENT FUNDINGS.

THE BOND PROCEEDS ARE RESTRICTED FUNDS.

>> THEY DON'T GO IN THE GENERAL BUDGET FUND.

THEY ARE RESTRICTED FOR WHAT WE SAID WE COULD DO IT WITH.

THE BOND MONEY WILL NOT HAVE ADVERSE IMPACT TO CUSTOMER.

>> WHAT THE TIME LINE WE HAVE TO SPEND MONEY.

THREE YEAR FOR TAX EXEMPTION.

IF THERE'S CLAUSES RELATED TO SUPPLY ISSUES, WE CAN EXTEND THE TIME FRAME. TYPICALLY THREE YEARS IS WHAT WE HAVE FOR OUR BOND, WHICH IS PRETTY REASONABLE FOR THE PROJECTS THAT WE ARE WORKING ON.

>> WE WERE SAYING THE PRICES WILL GO DOWN IN JANUARY.

CAN WE RECONSIDER THIS IN JANUARY?

>> IT'S NOT TAILORED AT ALL TO PCA OR THE NATURAL GAS PRICES. THIS THE FOR INFRASTRUCTURE.

AND WE HAVE TO USE THE MONEY FOR INFRASTRUCTURE.

EVEN IF WE DELAYED. >> THE BOND PROCEEDS ARE NOT -- WILL NOT EFFECT PCA ONE BIRTH.

WE HAVE TO SPEND IT WITHIN A CERTAIN PERIOD OF TIME.

EVEN IF WE SAY THE FLAME OF THE GAME NOW BY LOCKING IN THE GAS PRICES, IS TO PREVENT THE PCA FROM GOING UP. THAT'S THAT WE DON'T WANT.

WE DON'T WANT IT TO GO VERTICAL ON US ANYMORE.

AND RIGHT NOW WITH THE VOLATILITY THERE'S MORE RISK THAT IT WILL GO UP. THAT'S WE'RE STAYING ACTIVE TO LOCK IN PRICES LOWER. IT JUST DIPPED BELOW $#.

THAT'S THE LOWEST WE'VE HAD IN A WHILE.

>> WELL ABOVE $8.50. >> THE OTHER DAY I HAD THIS DISCUSSION ACTUALLY WITH MR. CISNEROS.

AND WHEN YOU TAKE A LOAN OUT FOR A HOME, FOR EXAMPLE, YOU -- THE PROCEEDS FROM THE LOAN HAVE TO BE USED FOR

[00:50:01]

THAT HOUSE. AND IF YOU DON'T USE THE FUNDS FROM THE BANK FOR THE HOUSE THAT'S BUILT.

THEN THEY WON'T GIVE IT TO YOU.

SO THEY FORECLOSURE ON IT. IT'S ALMOST I BELIEVE THAT WOULD BE A GOOD ANALOGY FOR THE MONEY THAT WE SECURED WITH THAT BOND. THEY HAVE TO BE USED FOR SPECIFIC PROJECT ASSOCIATED WITH THE MONEY THEY WERE

BORROWED AGAINST. >> WE ALSO GET AUDITED ON HOW THAT IS SPENT. WE I BELIEF THAT'S EVERY YEAR THAT THE FUNDS GET AUDITED.

IT'S PRETTY IMPORTANT. >> YOU HAVE TO REMEMBER, YOU SIGNED THE BOND AS WELL RIGHT NEXT TO MINE.

WE WANT THEM TO USE IT. >> RIGHT.

>> FOR THAT PURPOSE. WE DON'T WANT TO TAKE IT OUT

AND OUT FOR ANYTHING ELSE. >> I JUST WANTED TO SAY PROBABLY THE SOONER WITH DOUGH THIS THE REASONABLY PRICED THINGS WILL BE. EVERYBODY KNOW PRICE INCREASES ARE COMING ON EVERYTHING.

THE SOONER WE GET WORKING ON THIS.

THE SOONER WE CAN PROVIDE THE BENEFIT TO OUR

CUSTOMERS. >> ONE QUICK QUESTION.

WHAT WAS ROI ON IT? >> DO YOU KNOW OFF TOP OF

YOUR HEAD? >> RETURN ON INVESTMENT?

>> I DON'T HAVE SPECIFIC NUMBER.

I KNOW WE HAD INTEREST IN THE LAKEWOOD PARK AREA.

AS FAR AS THE SPECIFIC NUMBER.

I DON'T HAVE THAT FOR YOU. >> MRS. GIBBONS.

MR. CRAWFORD AND I CAN FOLLOW UP WITH YOU ON THAT.

>> OKAY, THAT WOULD BE GREAT.

>> ANY FURTHER QUESTIONS? >> ALL RIGHT.

ANYONE WANT TO ENTERTAIN A MOTION?

>> I MOVE APPROVAL. >> TO WE HAVE A SECOND?

>> I WILL SECOND. >> PLEASE CALL THE ROLL.

[G.3. POA No. 22-99: (A) Approve the Amendment No. 1 to Progressive Design-Build Agreement for the FPUA WRF Relocation with Globaltech-Haskell J.V., of Jacksonville, FL, in a not to exceed amount of $33,064,337.25. (B) Approve the adoption of Direct Owner Purchase Protocols. ]

>> THE NEXT ITEM REQUEST APPROVE AMENDMENT NO. 1 TO THE PROGRESSIVE DESIGN BUILD AGREEMENT WITH GLOBALTECH-HASKEL. THIS REQUEST INCLUDE APPROVAL FOR PREPARE THE VOTEDOCALS THAT WILL PROMOTE PROTOCOLS. GOOD AFTERNOON CHAIRMAN AND MEMBERS OF THE BOARD. UPON DIRECTION OF THE CITY COMMISSION ON SEPTEMBER 7TH OF LAST YEAR.

THIS BOARD APPROVED THE FIRST PHASE OF THE PROGRESSIVE DESIGN BUILD CONTRACT TO FINALLY REMOVE THE ISLAND WATER RECLAMATION FACILITY FROM SOUTH BEACH AND RELOCATE IT TO AN INDUSTRY AREA AT THE SOUTHWEST PORTION OF OUR SERVICE TERRITORY.

MOVING FORWARD AT THAT TIME ALLOWED TO US STAY AED OF COSTLY STATE MANDATE AND TAKE ADVANTAGE OF HISTORICALLY LOW INTEREST RATE WHILE PROTESTING THE LAGOON. TODAY WE BRING THE NEXT PHASE OF THE CONTRACT FOR APPROVAL.

DESIGN PERMIT, ENVIRONMENTAL ASSESSMENT.

OTHER SITE WORK TESTING OF EARLY INJECTION RULES AND PROCUREMENT TO STAY AHEAD OF SUPPLY CHAIN ISSUES.

YOUR PACKAGE INCLUDE DIRECTOR OWNER PURCHASE PROTOCOL LIST FOR ADOPTION THAT WILL ALLOW US TO AVOID PAYING TAXES. FUNDING IS AVAILABLE FROM OUR LOW-INTEREST BOND AND STAFF IS ALSO AGGRESSIVELY SEEKING GRANTS AND APPROPRIATIONS FOR FUTURE FUNDING. IF THERE'S ANY QUESTIONS, I WILL BE HAPPY TO ANSWER THEM.

>> DO WE HAVE ANY UPDATE ON THE STATUS OF ANY OF THE GRANTS AND WHAT POTENTIALLY WE COULD RECEIVE FOR HELPING OFF SET THE CAST OF THIS PROJECT?

>> AS FAR AS THE ACTUAL AMOUNT THAT WE'RE A LITTLE BIT PREMATURE AND PUTTING THAT TOGETHER.

OBVIOUSLY, THE OBVIOUS THING TO ASK FOR THE MOON.

THERE'S A LITTLE BIT OF A LINE THERE THAT WE WANT TO STAY ON. THE VERY BEST SOURCE THAT WE HAVE THE RESILIENT FLORIDA GRANT PROGRAM.

WE'VE BEEN IN CONTACT WITH THE DEP ON THAT MULTIPLE TIMES. THEY ABSOLUTELY LOW THE PROJECT. ALSO SOUTH FLORIDA WATER MANAGEMENT IS SUPPORTING THIS.

AND GOING THROUGH THE APPLICATION WE HAVE A VERY GOOD SCORE ON THAT. WE SCORED 100 POINTS.

WE HAVE CHECKS IN ALMOST ALL OF THE BOXES.

THAT'S GOING TO GIVE US A VERY GOOD ABILITY TO GET SOME OF THOSE GRANT FUNDS. AND THE DEP SAID THEY ARE JUST IN FOR ONE-TIME PAY. THEY WOULD POTENTIALLY HELP US OVER THREE-YEAR PERIOD TORE THAT.

THE ACTUAL ATLANTA WE DON'T KNOW THAT AS OF YET.

SOMETHING ELSE ARE TO BE COMING TO THE BOARD

[00:55:03]

ALTERNATE THE NEXT BOARD MEETING WILL BE HIGHERING LOBBYIST FEDERAL AND STATE LOBBY.

THAT WILL ALLOUR US TO GET IN THERE AND GET THE INFORMATION ON THE APPROPRIATE ACT IS FOR THOSE AS WELL. UNFORTUNATELY, I DON'T HAVE A NUMBER FOR THAT AS OF YET. THERE'S A LOT OF FUNDING OUT THERE. THERE'S A LOT OF OTHER SOURCES. WE ALSO ASK FOR AN APPROPRIATION TO SUPPORT US IN THE 16-INCH DOWNTOWN MAIN THAT WE NEED AS WELL. WE JUST DID THAT A COUPLE OF WEEKS AGO. AGAIN THAT'S VERY FAVORABLE.

WE GOT A LOT OF SUPPORT OVER THAT.

THE STATE LOBBY WILL ALLOW US TO GET INTO THE GOVERNOR'SES OF. AND WITH THE FACT THAT THERE AE 10 PLANTS TOTALS TO BE MOVED OFF THE INDIAN RIVER LAGOON, OUR IS BEING TALKED ABILITY AS THE MODEL HOW TO GET IT DONE. WE'RE VERY EXCITED ABOUT THAT PART OF IT AND REAL GETTING SOME STATE AND FEDERAL HELP TO MAKE THIS AN.

>> ISN'T OURS KIND OF SIGNALS AS THE STATE MAY BE MAKING UNLESS WE DO THIS VOLUNTARILY?

>> AS OF NOW THERE'S A COMPLIANCE ORRER.

WE WILL DEMONSTRATE WE HAVE ZERO DISCHARGE.

FOR THAT IT MEAN DEEP INJECTION WELL.

THE WELLS THEMSELVES RIGHT NOW AROUND 16 MILLION PLUS ALL THE PIPING AND ALL THE OTHER CONTROLS AND SUFFICIENT WE'RE WELL UPWARD OF 16 MILLION TO STAY WHERE WE ARE. WE ARE STILL ON ONE NATURAL DISASTER AWAY FROM HAVING TO MOVE THIS ANYWAY.

THERE'S NOTHING TO GUARANTEED DEP WILL NOT COME BACK IN FIVE YEARS AND BE LIKE THAT'S GREAT.

YOU DID THAT. WORKED GORE FOR FIVE YEARS.

YOU HAVE TO MOVE IT ANY WAY. IT'S A RISK.

TO PUT THE MONEY ON THE TABLE AND NOT SPEND ON THE

NEW PLANT. >> FOR THE BENEFIT OF THOSE THAT DON'T KNOW. WE HAVE A SITE.

THAT SITE IS WELL ALONG. WE'RE WELL ALONG.

WE'RE 30% ALONG IN THIS PROCESS.

WHEN WE GET THROUGH THIS. WE'LL BE 0%.

THAT WILL BE EARLY NEXT YEAR?

>> YES. IT LOOKS LIKE THIS FATES OF THE CONTRACT WILL ROLL INTO THE EARLY PART OF NEXT YEAR.

THAT INCLUDE DIGGING THE BONDS AND BRINGING IN THE EXTRA FILL. THE PERMITTING THROUGH THE DEP, THE CITY OF FT. PIERCE AND THE DIFFERENT AGENCIES.

THAT'S BEEN A LITTLE BIT SLOWER THAN WE HOPED SO FAR.

THAT'S KIND OF PUSHED THE TIME LINE OUT.

THIS THE HUGE RACKET. EVERYTHING TOOK A LITTLE BIT MORE TIME. I WOULD HAVE LIKED TO HAVE SEEN IT DONE BY THE FIRST OF THE YEAR.

BUT WE'RE A LITTLE BIT BEHIND THAT.

>> SO THAT ARE -- WHEN WE GET TO THIS POINT.

WHAT WILL BE THE NEXT PHASE? >> THE NEXT PHASE IS THE WHAT THEY WOULD CALL LIKE THE FINAL CONSTRUCTION WHERE YOU ACTUALLY MOVE INTO THE GUARANTEED MAXIMUM PRICE.

THIS WHAT WILL BE DONE AND CONTRACTOR BUILD IT.

>> FOR ANYBODY THAT LIVES ON THE ISLAND WHEN WILL THE

PLANT BE GONE? >> THEY ARE NOT GOING TO TEAR IT DOWN UNTIL THE OTHE. VERY SOON WE WILL HAVE THE RFP. BUT YOU KNOW IT HAS TO BE DONE SYSTEMATICALLY. THIS WHAT YOU ALLUDE.

WE HAVE TO MOVE FLOW, MORE FLOW TO NEW PLANT AND AT THAT TIME. BOTH PLANTS HAVE TO BE ONLINE AT THE SIMILAR TIME FOR SOME AMOUNT OF TIME.

I DON'T KNOW WHAT THAT WILL BE YET.

ANYTHING THAT ISN'T NEEDED. WE'LL START TO DEMO EARLY.

ANYTHING WE CAN POSSIBLY DO UNTIL IT CAN GO.

I IMAGINE THE PLANNING PROCESS AND EVERYTHING TO DO WITH THE ENTIRE CAUSEWAY WILL PROBABLY START I MEAN THIS IS A VERY CLEAR -- THIS IS VERY CLEAR DIRECTION THIS IS HAPPENING. I IMAGINE THAT PLANNING PROCESS GOING TO MOVE FORWARD CONCURRENTLY AS

WELL. >> THEY NEED TO SEE US

MOVING FORWARD? >> FOR THE GRANTS?

>> YES. >> YES.

THAT'S A BIG COMPONENT OF THE GRANTS, ACTUALLY.

EVERYBODY WANTS TO FUND SOMETHING THAT'S ACTUALLY GOING TO HAPPEN; RIGHT? IF IT'S HAPPENING, THEY ARE

[01:00:03]

MUCH MORE LIKELY TO GET ONBOARD WITH YOUR PROJECT AND WAVE THEIR FLAG. THAT'S TRUE.

>> ANY OTHER QUESTIONS OF THE BOARD?

>> I HAVE A QUESTION. WAS THIS THE PLAN THAT WE WOULD DIRECT PURCHASE THIS? I'M SORRY I DON'T REMEMBER IF THAT WAS THE PLAN INITIALLY OR NOT.

>> THIS THE ONE OF THE COST SAVING MEASURES THAT THE CONTRACTOR BROUGHT TO US. THIS WILL SAVE YOU A MILLION IN TAXES. IT HAD BEEN TALKED ABOUT.

HONESTLY IN THE BEGINNING I DIDN'T KNOW IT EXISTED.

THIS WAS A BRAND-NEW THING. >> THEY WILL BE WORKING US WITH US TO PROCURE WHAT IS NEEDED FOR THE PROJECT? THEY ARE NOT JUST HANDING IT OVER TO US AND GIVING US AN

ITEMS LIST? >> YES, MA'AM.

ALL OF THE DIFFERENT COMPONENT HAVE BEEN SELECTED. THERE MAY BE 2 TO 10 VENDORS THAT CAN PROVIDE THAT. AFTER WE HAVE THAT SPECIFICATION PUT TOGETHER. THE CONTRACTOR WILL PUT IT ON THE STREET AND BASICALLY PUT A BID TOGETHER.

THEY WILL COLLECT ALL THE BIDS AND GIVE US THEIR RECOMMENDATION. EVERYTHING IS OPEN BOOK.

WE'LL BE INVOLVED THE ENTIRE WAY.

IF WE ARE IN AGREEMENT, THEN THE CONTRACTOR WILL ACTUALLY ISSUED PO TO THAT VENDOR DIRECTLY SO THEY CAN ORDER IT AND GET IN IT THE SUPPLY CHAIN.

SOME WILL TAKE SIX MONTHS. SOME WILL TAKE A YEAR TO GET. AT THAT POINT, THEY THEN TRANSFER THAT TO FPUA TO PURCHASE DIRECTLY.

AND THEN THEY WOULD TAKE THAT AMOUNT OF MONEY IN THE CONTRACT NOW WOULD JUST GO AWAY.

THEY WOULD ISSUE CHANGEORDER.

THAT'S A REALLY GOOD PROGRAM.

IT SAVE A LOT OF MONEY. >> QUESTIONS?

>> NOW WE ARE LOOKING FOR APPROVAL TO APPROVE THE CONTRACT. LOOKS LIKE THE ADDENDUM FOR

33064-337. >> WHO WOULD CARE TO MAKE

THE MOTION? >> I MOVE TO APPROVE.

>> SECOND. >> PLEASE CALL THE ROLL.

[I.1. Adopt Resolution No. UA 2022-14, a resolution adopting budget for fiscal year beginning October 1,2022 and ending September 30,2023 and amending the budget for fiscal year beginning October 1, 2021 and September 30,2022, for Fort Pierce Utilities Authority of the City of Fort Pierce, Florida. ]

>> WE HAVE RESOLUTIONS. >> YES, SIR, MR. CHAIRMAN.

REQUEST ADOPTION RESOLUTION UA-2022-14.

FOR THE 2023 BUDGET AND THE AMENDED 2022 BUDGET.

BARBARA MICAH WILL PRESENT THIS ITEM.

THANK YOU, MR. CISNEROS, CHAIRMAN FEE AND BOARD MEMBERS. GOOD AFTERNOON.

I'M PLEASED TO PRESENT TO YOU TODAY THE ANNUAL BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30TH, 2023 AND AMENDING THE FISCAL YEAR ENDING SEPTEMBER 30, 2022 AND THE RESOLUTION TO ADOPT THIS BUDGET.

THIS BUDGET PREPARED WITH INCREDIBLE LOOK AT EACH DEPARTMENT PLANS DEPARTMENTS AND PROJECTION TO ENSURE THEY SUPPORT THE FPUA'S MISSION AND STRATEGIC GOALS OF THE ORGANIZATION. WE ARE WORKING WITH THE CITY ON SYSTEM EXPANSION, RELIABILITY PROJECTS, THAT HELP SUPPORT THE CURRENT AND FUTURE NEEDS OF OUR CUSTOMER AND IF CITY OF FORT PERIOD. OUR CONTINUING AMOUNT TO GO TO DEVELOPERS HAS AIDED IN THE EXPANSION AND RELOCATION OF BUSINESSES TO THE SERVICE TERRITORY.

EXPANSION OF THE GAS SERVICE TERRITORY TO NORTH AND WEST OF TOWN AND DEVELOPING INFRASTRUCTURE FOR A SMART CITY ARE ALL PART OF THE PLAN TO BRING NEW BUSINESSES TO FT. PIERCE. PLANNED CAPITAL PROJECT SUPPORT THE SHARED OBJECTIVES OF THE FUTURE MAINLAND WATER RECLAMATION WATER FACILITY.

THE CAPITAL IMPROVEMENT PLANS PROVIDES FOR RELIABILITY IMPROVEMENTS THAT WILL BE MADE OVER TIME.

[01:05:01]

WE CONTINUE TO WORK ON MULTIYEAR STORM HARDENING PROGRAM TO IMPROVE OUR ELECTRIC SYSTEM RELIABILITY.

STRENGTHENING OUR INFRASTRUCTURE IMPROVES RELIABILITY AND AGEING WATER WASTEWATER SYSTEM WITH THE CONTINUING WON OUT MAIN LINING.

WE SUPPORT THE CUSTOMERS THROUGH RELIABLE AND FRIENDLY SERVICE. WE LIVE, WORK IN THE COMMUNITY TO BRING POSITIVE IMAGE FOR FPUA.

FPUA HAS RENEWED OUR COMMITMENT TOWARD BECOMING PROACTIVE AND STRATEGIC WITH OUR COMMUNITY.

WE'RE BUILDING A VISION OF COMMUNITY PROUD THAT WILL INSPIRE TRUST AND CONFIDENCE IN OUR STAFF AND THE UTILITY. WE HAVE ESTABLISHED THE UTILITY ADVISORY COMMITTEE COMPRISED OF CUSTOMER THAT EVALUATE SOME CONCERNS. THE COMMITTEE WILL ENSURE THAT ALL CUSTOMERS HAVE THE FORM FOR THEIR QUESTIONS TO BE ANSWERED. THERE'S BEEN NO CHANGES TO THE BUDGET FIGURES SINCE THEY WERE PRESENTED TO YOU BACK ON JULY 19TH. THIS PRESENTATION IS TO FORMALLY AMEND THE BUDGET FOR FISCAL YEAR '22 AND ADOPT BUDGET FOR FISCAL YEAR '23.

THE CALCULATION OF THE FUNDS AVAILABLE FOR CAPITAL CAN BE FOUND IN THE OVERVIEW SECTION ON PAGE 49 OF ANNUAL BUDGET BOOK. THE AMOUNT AVAILABLE FOR 2022 IS 8 MILLION AND 12 MILLION FOR 2023.

IT'S NOT ANTICIPATED ANY SHORTFALLS IN RATE FUNDING FOR CAPITAL IMPROVEMENTS WILL COME FROM OPERATING CASH OR SPENDING WILL BE SLOWED.

THE INCREASE IN FISCAL YEAR '23 PROJECTED REVENUES IS MAINLY DUE TO ANTICIPATED INCREASES IN THE PURCHASE COST OF THE POWER COST ADJUSTMENT AND THE ANTICIPATED GROWTH IN THE CUSTOMER BASE FOR GENERAL RESIDENTIAL SERVICES THAT WILL BE BROUGHT THROUGH EXPANSION PROJECTS. CAPITAL CONTRIBUTIONS FOR REMAINED STRONG AND THE ANTICIPATION FOR WATERVLIET WILL WRAP UP THE INCREASE IN REVENUE.

THE INCREASE FOR FISCAL YEAR '2023 OPERATING AND -- OPERATIONS AND MAINTENANCE COST ATTRIBUTED TO INCREASE EXPENSE WITH THE 2022 NEW DEBT ISSUANCE.

THE 37.8 MILLION DOLLAR APPROVED BUDGET, THAT INCLUDES 7.8 MILLION CARRIED OVER FROM FISCAL YEAR '21 INTO '22 IN COMBINATION WITH THE $30 MILLION BUDGET APPROVED LAST YEAR. FISCAL YEAR 2023 BUDGET OF 63.5 MILLION. THIS GRAPH REPRESENTS THE TOTAL BUDGET. THE AMOUNTS INCLUDE ALL FUNDING SOURCES, AND SHOWS THE TREND OF THE INCREASE COST YEAR OVER YEAR. THE COST OF PURCHASE POWER FOR FISCAL YEAR 2022 IS ANTICIPATED TO BE 48.9% OF THE TOTAL OPERATIONS AND MESSAGE BUDGET.

IF THE PROJECTION PROJECTED DIRECTION ON THE COST OF NATURAL GAS, WHICH DIRECTLY IMPACTS THE COST OF OUR PURCHASE POWER IS CORRECT. THE PURCHASES FOR RESALE WILL REMAIN AND ACCOUNT FOR 46.# 8% OF THE BUDGET IN 2023. THE RED REPRESENTS PURCHASES

FOR RESALE. >> THAT'S 48% --

>> ALMOST 49%. NEXT YEAR 47% OF TOTAL

BUDGET. >> COST OF PURCHASES FOR RESALE ARE NOT CONTROLLED BY FPUA.

HOWEVER WE DO BUDGET IN A MANNER THAT ALLOWS FOR FLUCTUATION IN COST. WE AT LEAST HOPE TO COME IN UNDER BUDGET. THE REVENUES BY SYSTEM AS COMPARED TO PRIOR FOUR YEARS FROM 2018 TO 2021.

ARE STEADY INCREASE. FITSCAL YEAR 2022 AND '23 REVENUE PROJECTION SHOW INCREASES FOR ALL SYSTEMS -- OF ALL SYSTEM BASED UPON PROJECTION GROWTH IN THE CUSTOMER BASE. RATE ADJUSTMENTS AND

[01:10:03]

HISTORICAL AND STATISTICAL DATA.

THE SHARP INCREASE IN ELECTRIC REVENUES ELECTRIC BEING THE RED PORTION HERE. FOR BOTH FISCAL YEAR 2022 AND '23 ARE A RESULT OF THE ANTICIPATED COST OF POWER COST ADJUSTMENT. WATER AND WASTEWATER REVENUES FOR BOTH '22 AND '23 ARE RESULT OF INCREASE RATE I JUSTMENTS AND ANTICIPATED GROWTH IN THE CUSTOMER BASE AS DEVELOPMENT EXPANDS AND THE SEPTEMBERIC SEWER CONNECTIONS ARE MADE. THIS CHART TAKES A CLOSE LOOK AT THE 2023 REVENUES BUDGETED BY SYSTEM.

ELECTRIC REVENUES ARE PROJECTED TO BE 88 AND A HALF MILLION DOLLARS OR ABILITY 60% OF THE TOTAL REVENUE BUDGET FOR FISCAL YEAR '23.

THAT THE A 5.3% INCREASE FROM THE BUDGET FOR THIS YEAR. THE INFILL OF SERVICES INTO THE DEFINED ELECTRIC SERS TERRITORY WILL INCREASE THE CUSTOMER BASE. WATER AND WASTEWAER COMBINED OPERATING REVENUE FOR FISCAL YEAR '23 OF 40.7 MILLION, ARE 17% GREATER THAN THE AMENDED BUDGET FOR FISCAL YEAR '22. APPROVED RATE ADJUSTMENTS WILL SUPPORT -- THAT'S FOR THE GROWTH AND DEVELOPMENT OF THE UTILITY SYSTEM. AND THE RELOCATION OF THE WATER RECLAMATION FACILITY. THAT'S THE REASONING BEHIND THE INCREASES. AND THE YELLOW SECTION REPRESENTS THE GAS SECTION. GAS REVENUES ARE ALSO EXPECTED TO INCREASE FROM FISCAL YEAR '22 TO '23 WITH THE COMPLETION OF CURRENT GENERAL SERVICE PROJECTS, ANTICIPATED BRINGING ADDITIONAL MANUFACTURING CUSTOMERS TO FT. PIERCE. COMPLETION OF THE NEW STATION IN THE NEXT 2-3 YEARS, WILL GREATLY INCREASE THE NATURAL GAS CUSTOMER BASE.

THIS GRAPH COMPARES THE OPERATIONS AND MAINTENANCE ACTUALS COMPARED TO BUDGET. FROM 2018.

WE HAVE ORIGINAL. WE HAVE THE BUDGET AND THE ACTUALS AND BUDGET ACTUALS. YOU CAN SEE A TREND.

ACTUALS EXPERIENCE IS THAT OUR ACTUAL EXPENSES COME IN BELOW THE ORIGINAL BUDGET. AND THE AVERAGE FOR -- FROM 201 FORWARD IS 6.3% LOWER FROM THE BUDGET.

OUR EXPENSES COME IN LOWER TYPICALLY.

THE MAIN REASON WE COME IN BELOW THE BUDGET RELATES TO THE COST OF OUR PURCHASES FOR RESALE.

THIS THE BIGGEST LINE ITEM IN THE BUDGET AS YOU KNOW.

AND FALLING SHORT ON THIS AREA IS NOT ACCEPTABLE.

WE BUDGET TO THE BEST OF OUR KNOWLEDGE.

TO ENSURE EXPENSES ARE COVERED.

WHILE WE CAN'T CONTROL THE EXPENSES WE HAVE THEM SET THE COST LOWER THAN ANTICIPATED.

THIS IS CLOSE UP LOOK AT THE FISCAL YEAR '23.

OPERATIONS AND MAINTENANCE BUDGET.

SIT A CLEAR REPRESENTATION OF JUST HOW MUCH OUR BUDGET IS MADE UP OF THE PURCHASES TO RESALE IN RED.

67.7 MILLION DOLLARS. OF THE TOTAL BUDGET FOR FISCAL YEAR '23. THE OTHER O&M.

THE BLUE SESSION, EXPENSES MAKE UP 43% OF THE BUDGET.

THAT'S PERSONAL SERVICES, APPLIEE BENEFITS, CONTRACTUAL SERVICES. INTEREST EXPENSE, AND OTHER OPERATING EXPENSES INCLUDING THE DISTRIBUTION TO THE CITY AND CONTINGENCY. THAT ACCOUNTS FOR 11% OF THE TOTAL OF 43. THE DISTRIBUTION TO THE CITY OF FT. PIERCE CALCULATION FOR FISCAL YEAR '22 AND '23 ESTIMATES CAN BE FOUND ON PAGE 50 OF YOUR ANNUAL BUDGET. FISCAL YEAR '22 ESTIMATED DISTRIBUTION PAYABLE IN NEXT YEAR AND FISCAL YEAR '23 IS $6,519,000. AND IT'S FLAT WHEN COMPARED WITH THE CALCULATED DISTRIBUTION PAID THIS YEAR OF $6,524,000. MERELY A CALCULATE AND THE BUDGET. FORT PIERCE UTILITIES AUTHORITY ALSO COLLECTS AND REMITS 10% UTILITY TAX WHICH IN FISCAL YEAR '21 WAS 2.8 MILLION DOLLARS.

KNOWING THE SOURCES OF FUNDS, FOR OUR CAPITAL BUD BDGET IS CRITICAL.

TO MAINTAIN COMPLIANCE WITH THE CASH RESERVES.

[01:15:02]

APPROXIMATELY 171/2 PERCENT OF OUR FISCAL YEAR 2023, 63.5 MILLION IN '23, CAPITAL BUDGET IS PROJECTED TO BE FUNDED THROUGH RATES. THE FINANCIAL FEASIBILITY STUDY THAT WAS PERFORMED IN CONNECTION WITH THE 2022 DEBT ISSUANCE PROJECTED REVENUES NECESSARY TO SUSTAIN THE ANTICIPATED GROWTH INCLUDING OPERATIONS, MAINTENANCE EXPENSES. DEBT SERVICE AND CAPITAL.

THE BUDGETING PROCESS BROUGHT TO US TWO ROUNDS OF CUTS FROM THE INITIAL CIP THAT WE HAD PUT TOGETHER.

BASED ON THE FIRST REPORT THAT WE RECEIVED, THE FIRST ROUND OF ADJUSTMENTS WHERE WE CUT AND DEFERRED 2.3 MILLION. THEY WENT BACK TO UPDATE THE FINANCIAL FEASIBILITY REPORT BASED ON CURRENT CONDITIONS AND IN ORDER TO MAINTAIN ADEQUATE FINANCIAL STABILITY IN ORDER TO GET OUR BOND ISSUANCE, A SECOND ROUND OF CUTS AND DEFERRAL NEED TO BE MADE AND REDUCED BY 2.3 MILLION BEFORE WE FINALIZED IT AND PUT IT INTO THE CIP.

>> THE RATE FUNDED PROJECT THAT ARE PRESENTED IN CAPITAL BUDGET TOTAL 14.3 MILLION FOR ALL SYSTEMS. THE CAPITAL THAT CAN BE FUNDED BY RATESES CALCULATED BY SYSTEM AND WE WILL BE LIMITED TO 11.1 MILLION IN TOTAL. THE APPROVAL OF THIS BUDGET WILL AUTHORIZE STAFF TO PERFORM BUDGET TRANSFERS WITHIN THE LIMITS OF THE APPROVED PROJECTS THAT ARE LISTED IN THE CIP; ANY SITUATIONS THAT FALL OUTSIDE OF THAT APPROVED LIST WILL BE BROUGHT TO THE BOARD FOR THE APPROVAL. THE PROCEEDS FROM THE 2022 DEBT ISSUANCE WILL FUND 114.8 MILLION IN THE NEXT THREE YEARS. WITH ADDITIONAL FUNDING AS NEEDED FOR COMPLETION OF THE CONVEYANCE SYSTEM FOR THE MAINLAND WATER RECLAMATION FACILITY.

THE BOND PROCEEDS WILL FUND SYSTEMS.ITY PROJECT FOR ALL- THE COMPLETION OF THE ADVANCED METERING INFRASTRUCTURE FOR THE NATURAL GAS AND EXPANSION PROJECTS WILL ROUND OUT THE THREE-YEAR SPENDING OF THIS FUNDING SOURCE. SPENDING OF CONTRIBUTION IN AIDE AND CAPITAL IMPROVEMENT CHARGES WILL BE LIMITED TO THE FUNDS AVAILABLE FROM DEVELOPERS OR THOSE CSE THAT HAVE BEEN ACCRUED. GRANT FUNDING WILL CONTINUE THROUGH 2024. WITH FUNDING FROM GRANTS OBTAINED FROM THE DEPARTMENT OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION. IT IS EXPECTED AS IN PRIOR YEARS ONLY A PORTION OF OUR TOTAL CAPITAL BUDGET WILL BE SPENT. TRACKING AND MAINTAINING THE BUDGET VERSES ACTUAL SPENDING BY PROJECT AND SOURCE WILL BE ESSENTIAL TO THE QUARTERLY REPORTS THAT WILL BE BROUGHT TO THE BOARD AS INFORMATION ITEMS. THE LION SHARE OF THE FIVE-YEAR CIP, ABOUT 67% WILL GO TOWARD THE WASTEWATER SYSTEM.

THE RELOCATION OF THE ISLAND WATER RECLAMATION FACILITY WILL HAVE LONG-TERM BENEFITS TO FPUA AND THE CITY OF FT. PIERCE. IT WILL RESOLVE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION CONCERNS, ABOUT THE SUSTAINABILITY OF THE INDIAN RIVER LAGOON AND PROVIDE THE POTENTIAL FOR ECONOMIC GROWTH OF THE AREA.

ADDITIONALLY THE INFILL AND EXPANSION OF WASTEWATER SERVICES WILL ENHANCE REVENUE TO COVER DEBT SERVICE. THE WATER SYSTEM CAPITAL IMPROVEMENT IN BLUE THAT PLAN REQUIRES THE SECOND LARGE PORTION OF THE FIVE-YEAR PLAN WITH 15% OR $32 MILLION. PROJECT INCLUDE AMI.

CUSTOMER BASED EXPANSION PROJECTS.

ROUTINE RENEWALS AND REPLACEMENT THAT ARE NECESSARY TO KEEP OUR INFRASTRUCTURE AND PLANT OPERATIONS SOUND. ELECTRIC CAPITAL IMPROVEMENT PLAN INCLUDES RELIABILITY PROJECT FOR STORM HARDEN INCH, TRANSMISSION POLE REPLACEMENTS IN ADDITION TO COMPLETION OF THE AMI PROJECT.

EXPANSION PROJECT FOR ELECTRIC SYSTEM ARE LIMITED TO INTEL. WE CURRENTLY HAVE DEVELOPER GROWTH THAT'S PROVIDING THE OPPORTUNITY TO EXPAND OUR CUSTOMER BASE FOR ELECTRIC. IF PRO JENTH INCLUDED WILL

[01:20:15]

PROVIDE FOR EXPANSION. THEY WILL DOUBLE THE CUSTOMER BASE. WITH NO TERRITORY BOUNDARIES THE GAS SYSTEM EXPANSION PROJECT WILL BE A LARGE BOOST TO CUSTOMER GROWTH AND RUFF NEWS.

I WOULD LIKE TO RECOGNIZE THE EFFORT OF FINANCE DEPARTMENT. DIRECT O OF UTILITY.

THE DIRECTOR AND DEPARTMENT HEAD AND STAFF THAT SUPPORTED WITH MANY HOURS OF WORK DEAD DEDICATED TO COMPLETING THE BUDGET. RESOLUTION UA-2022-14.

IF YOU HAVE ANY QUESTIONS, IT WOULD BE HAPPY TO ADDRESS

THEM. >> ARE THERE ANY QUESTIONS

OF THE BOARD? >> I HAVE A COUPLE.

WHEN YOU DID THE BORROWING. WE REFINANCED SOME OF OUR MONEY. THAT SHOULD SAVE US MONEY.

>> BARBARA, DO YOU KNOW WHAT WE REFINANCED AND WHAT THE

COST SAVING IS? >> TOTAL SAVINGS WAS -- I WAS THINKING ABOUT 8 MILLION.

AND APPLIED TO PAYING OFF OF THE BONDS.

>> OKAY. >> I WANTED TO SAY.

YOU WERE TALKING ABOUT THE INCREASE IN ELECTRIC REVENUE. AND THAT IS NOT USED FOR THE CITY TRANSFER. IT'S A DIRECT PASS THROUGH.

>> POWER COST ADJUSTMENT. >> YOU WERE TALKING ABOUT -- JUST SO THAT WE UNDERSTAND THAT THE REASON THAT'S INCREASED IS BECAUSE OF THE INCREASE OF THE PRICE

OF NATURAL GAS. >> RIGHT?

>> LARGELY. >> RIGHT.

AND THAT IS A PASS THROUGH COST THAT DOESN'T -- DOESN'T HAVE ANYTHING TO DO WITH THE TRANSFER TO THE CITY.

I JUST WANT -- I WANT TO MAKE THAT REALLY CLEAR TO

PEOPLE. >> IT DOES NOT.

>> OKAY THANK YOU. >> I HAVE A QUESTION.

I WILL WAIT. >> YOU FIRST.

>> I WAS SURPRISED. I DIDN'T KNOW THERE WAS ANOTHER FEE THAT WENT TO CITY IN THE AMOUNT OF 2.8 MILLION. THE 10%.

>> UTILITY TAX IS 10%. >> AND THAT GOES DIRECTLY TO THE CITY FOR -- THEY DON'T HAVE TO TURN AROUND AND PAY

THAT TAX TO STATE? >> I BELIEVE IT'S PART OF THE CITY'S BUDGET. IT'S SOMETHING THAT FPUA COLLECTS FOR THE CITY. IT'S A CITY-IMPOSED TAX.

>> MANY CITIES HAVE THAT TAX.

>> IT'S COMMON. >> I DON'T HAVE QUESTIONS.

JUST A COUPLE OF COMMENTS. ONE THE WORD TRANSPARENCY GOT USED EARLIER. AM I CORRECT IN THAT A FULL COPY VERSION OF THE TOTAL BUDGET IS AVAILABLE ON FPUA.COM FOR ANY RESIDENTS TO DOWNLOAD AND VIEW?

>> YES. >> THIS IS ON THE FPUA WEB

SITE. >> AND HAVING GONE THROUGH IT; IT'S A VERY DETAILED DOCUMENT.

ANYBODY WHO HAS ANY CONCERNS ABOUT WHERE FUNDS ARE GOING, AROUND THE RESIDENTS ARE RIGHT.

WHEN THEY SAY THIS IS THERE UTILITY.

ANY OWNER CONCERNED ABOUT WHERE FUNDS ARE GOING, SHOULD DOWNLOAD AND TAKE A LOOK.

THE OTHER THING IS THAT I SPEAK FOR THE REST OF THE BOARD, WHEN I SAY THAT THESE HAVE BEEN REALLY TOUGH DECISIONS, YOU KNOW. WHEN WE'RE RAISING RATES; WE'RE RAISING RATES DIFFICULTLY.

AND WE'RE RAISING RATES ON OURSELVES.

EVEN BEFORE IT GETS TO US, I KNOW THAT STAFF HAS -- IT'S DIFFICULT FOR YOU TO BRING THIS TO US.

YOU TRY TO DO THE BEST THING FOR OUR COMMUNITY.

AND SO I JUST WANT TO ACKNOWLEDGE THAT YOU GUYS AND FROM MY POINT OF VIEW, ARE DOING VERY GOOD JOB AND A VERY DIFFICULT ENVIRONMENT.

[01:25:03]

>> EVERY DOCUMENT IS ONLINE AT FPUA INCLUDING THE COMPREHENSIVE ANNUAL. NOT ONLY IS THE BUDGET ON IS THERE BUT THE A-- ALL THE AUDITED FUNDS ARE ON THERE.

EARLIER WE TALKED ABOUT THE RELATIONSHIP BETWEEN THE CITY AND THE FPUA. AND THE FPUA WAS MADE A SEPARATE ENTITY IN 1972. THIS IS OUR 50TH YEAR.

ALSO THE -- IN THE AUDIT IT'S DESCRIBED AS DIS-CRETE COMPONENT UNIT. MORE THAN AN ENTERPRISE FUND AND LESS THAN THE DEPARTMENT OF THE CITY.

IT'S A ACTUALLY ONE OF THE MOST IMPORTANT THINGS THAT THE CITY DOES IS PROVIDE CLEAN WATER, ELECTRICITY AND THE UTILITIES FOR. IT'S A COMMON, IT'S A COMMON ARRANGEMENT DONE IN MANY CITIES IN FLORIDA.

IT'S DONE THIS WAY. >> YOU'RE ABSOLUTELY RIGHT.

SOME OF THE THINGS WE TALKED ABOUT WITH THE PROJECTS FOR EXPANSION WITH OUR BOND PROJECTS ONE OF THE WAY -- ONE OF THE WEST WAY THE CITY CAN GROW IS EXPANSION OF WATER AND WASTEWATER AND GAS AND FIBER. FPUA IS A COMPONENT OF HELPING THE CITY GROW. THE CITY COMMISSION HAS BEEN URGING THE FPUA TO DO THAT VERY THING.

HELP THEM GROW THE CITY. WE WERE RESPONDING TO THAT.

URGING. >> IT'S A TOP PRIORITY FOR SURE. ABSOLUTELY.

>> ONE QUESTION, AND THEN MAYBE A FEW STATEMENTS.

LOOKING AT THE BUDGET, LAST YEAR WE BUDGETED ROUGHLY AROUND 22.6 MILLION FOR GAS. AND THEN IF VOLATILE MARKET TOOK OVER AND NOW WE'RE LOOKING TO HAVE TO BUDGET FOR THE REST OF THE YEAR FOR TOTAL ROUGHLY OF -- LOOKS LIKE 67 MILLION? THAT'S CLOSE TO THREE TIMES.

>> GAS AND ELECTRIC WAS ORIGINALLY 46 MILLION.

WE HAVE IT 67.6. >> FOR 2023, ANALYZING BASED ON THIS VOLATILILITY WE'RE BUDGETING FOR 67.7 FOR NEXT YEAR. BUT COMPONENT OF THAT IS ALREADY THE PREPURCHASES OF GAS.

>> THIS BOOK WAS ASSEMBLED. THEY WERE ASSEMBLED SOME TIME AGO. SOME OF WHAT WE DO NOW WITH LOOKING IN THE PRICES THEY ARE JUST HAPPENED OVER THE LAST WEEK OR SO. I HOPE THE PRICES WE LOCKED IN FOR THE PORTION OF THE PRICES WE'VE LOCKED IN FOR REMAINEDER OF THE YEAR AND NEXT YEAR, WE WILL BE ABLE TO WORK WITHIN THE BUDGET AND COME IN LOWER.

AT LEAST KEEP THE PCA STABLE.

>> THAT'S ABSOLUTELY THE GOAL FOR NEXT YEAR, YES,

SIR. >> ALSO I THINK THAT WE ARE GOING TO DO SOME EFFORTS TO HELP OUR CUSTOMERS WITH CONSCIOUS OF THEIR CONSUMPTION AND REDUCE THEIR USAGE, ET CETERA, ET CETERA. I KNOW I'VE DONE THAT IN MY OWN HOUSEHOLD. I SWITCHED TO BUDGET BILLING. AND I'M DOING A NUMBER OF THINGS TO TRY TO REDUCE THE USAGE OF ELECTRIC AND WATER ACTUALLY. IF YOU ARE NOT HOME RAISING THE AC UP, YOU ARE NOT HAVING TO COOL THE HOME.

THAT'S A VERY, VERY IMPORTANT PART OF CONSUMPTION. OR CONSERVATION FOR ENERGY.

>> TURNING OFF LIGHTS. TURN OFF FANS.

THINGS YOU DON'T USE WHEN YOU ARE NOT HOME IS

IMPORTANT. >> ISN'T 75% OF FLORIDA CUSTOMERS THE ELECTRIC POWERED BY NATURAL GAS?

>> 75%? >> IT'S BETWEEN 75 AND 80.

FPUA SPECIFICALLY'S PORTION IS AROUND 78%.

SYSTEM OF THE INVESTOR OWNED UTILITY AROUND THE 80% RANGE. SOME CITIES HAVE LOWER AMOUNTS BUT BETWEEN 75 AND 80.

FPUA 78%. >>> THERE'S A COMMENT EARLIER ABOUT NUCLEAR. AND THAT IS OWNED BY FLORID

>> YES. >> IT'S OWNED BY FP&L.

[01:30:03]

FPUA HAS A SHARE OF THE NUCLEAR POWER PLANT.

WE GET 1.8% OF OUR POWER COMES FROM NUCLEAR AROUND 28% COMES FROM COAL. THE MAJORITY OF IT COMES FROM NATURAL GAS AND HALF A PERCENT FROM SOLAR AND OTHER ENERGY CONSERVATION TYPE PROJECT LIKE SOLAR.

SOLAR IS A VERY GOOD -- IT'S NATURAL ENERGY SOURCE.

IF THE SUN IS NOT SHINING, YOUR PRODUCTION FROM SOLAR CAN BE SIGNIFICANTLY REDUCED.

>> YOU HAVE TO HAVE BACK UP POWER.

BASE PROFILE POWER GENERATION.

THAT'S WHAT WE HAVE. THE OTHER THING ABOUT SOLAR.

IT THOSE BE SPREAD THROUGHOUT THE STATE.

IF ONE PART OF THE STATE EFFECTED BY A STORM OR WEATHER. YOU CAN STILL GENERATE POWER THROUGHOUT THE STATE FROM SOLAR.

IT'S EXPENSIVE AND VERY STRATEGIC.

YOU HAVE TO GET -- YOU HAVE TO BE NEAR POWER TRANSMISSION LINE TO SEND IT THROUGHOUT THE STATE.

SOLAR THE COMPLICATED. IT'S SOMETHING WE DEFINITELY NEED TO LOOK INTO AS WE MOVE TO THE FUTURE.

BUT BATTERY STORAGE IS A BIG PART OF SOLAR.

WE ARE NOT QUITE THERE YET WITH THE TECHNOLOGY.

FPUA HAS A SHARE OF NUCLEAR FROM THE POWER PLANT HERE.

WE BOUGHT INTO IT IN THE EARLY 80S.

>> SINCE WE'RE HAVING SUPPLY TRAIN ISSUES AND WE KNOW THINGS WILL INCREASE. HAVE WE TAKEN INTO ACCOUNT FOR THIS BUDGET FOR WHAT WE HAVE TO DO NEXT YEAR AS BEST

WE CAN? >> AS BEST WE CAN.

IT'S MOOING -- A MOVING TARGET.

SUPPLY CHAIN IS A BIG ISSUE. WE'RE TRYING TO GET AHEAD BY GETTING THE PROJECTS APPROVED AND IN THE QUEUE TO MAKE SURE WE STAY ON PROJECT.

>> A LOT OF THE BUDGET GOES TO KEEP THE SYSTEM RELIABLE.

>> YES, MA'AM IT DOES. >> THE MAJORITY IS TO MAINTAIN OUR SYSTEM, WASTEWATER, ELECTRIC AND GAS. WE DO HAVE AN OLDER CITY.

AN OLDER SYSTEM THAT WE HAVE TO MAINTAIN.

THE MAJORITY OF OUR BUDGET, OUR OWN BUDGET GOES TO

MAINTAINING THAT SYSTEM. >> THANKS.

>> I THINK WE NEEDING READING OF THE REST

SWLOOUGS. >> RESOLUTION NUMBER UA-2022-14. A RESOLUTION ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2022, AND ENDING SEPTEMBER 30TH, 2023.

AND AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1ST, 2021 AND SENDING SEPTEMBER 30TH, 2022 FOR FORT PIERCE UTILITIES AUTHORITY OF THE CITY OF

FT. PIERCE, FLORIDA. >> DO WE HAVE A MOTION TO

APPROVE? >> I APPROVE.

>> SECOND. >> PLEASE CALL THE ROLL.

[I.2. Approve Resolution UA 2022-16 to replace two Utility Advisory Committee members who have resigned with two new appointees who have been appointed by Commissioners Arnold Gaines and Commissioner Jeremiah Johnson. ]

>> THANK YOUR, BARBARA. THE NEXT ITEM I WILL TAKE MYSELF. IT'S REQUEST TO APPROVE RESOLUTION UA-2022-16 TO REPLACE TWO MEMBERS FROM THE ADVISORY COMMITTEE WITH NEW APPOINTEES.

THOSE NEW APPOINTEES COMING FROM MR. COMMISSIONERER MICA JOHNSON AND COMMISSIONER ARNOLD G GAINS .

I WAS ABLE TO KEEP THE COMMITTEE MOVING AS WE

APPOINT NEW MEMBERS. >> THIS IS MORE OF FORMALITY

TO ASSIGN THEM. >> WHEN IS THERE NEXT

MEETING? >> NEXT WEDNESDAY.

>> NEXT WEDNESDAY AT 4:30. >> I MOVE APPROVAL.

>> WANT TO READ THE RESOLUTION.

RESOLUTION UA-2022-16 A RESOLUTION AMENDING AND SUPERSEDING THE APPOINTMENT OF MEMBERS TO THE FORT PIERCE UTILITIES AUTHORITY ADVISORY COMMITTEE.

>> I MOVE APPROVAL. >> SECOND.

>> WE GOT A SECOND. PLEASE CALL THE ROLL.

[J. DIRECTOR: ]