[Call to Order]
[00:00:15]
PRAYER AND PLEDGE OF ALLEGIANCE.
>> WE THANK YOU FOR YOUR PROVISION AND ACKNOWLEDGE YOUR FAITHFULNESS AND PROVIDING THE RESOURCES WE NEED. WE ASK FOR WISDOM AND CLARITY. WE PRAY FOR THE CURRENT STAFF AND FUTURE STAFF THAT WILL LEAD FPUA INTO THIS NEXT SEASON. WE PRAY FOR THE MIND OF CHRIST TO GIVE US STRATEGIC STRATEGIES, CREATIVE BUSINESS IDEAS AND HEAVENLY WISDOM.
WE PRAY THAT FPUA WILL HAVE FAVOR IN IT'S NEGOTIATIONS AND CONTRACTSES WITH VENDORS FOR LOWER PRICES AND QUICKER LEAD TIME IN WE PRAY FOR THE ABILITY TO SECURE FUTURE NATURAL GAS PRICES HISTORIC LOW PRICES AT THE DIPS WITHIN THE VOLATILE MARKET. WE PRAY THIS, 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.
[A. SET THE AGENDA]
DO WE HAVE A MOTION TO SET THE AGENDA?[B. APPROVAL OF MINUTES:]
>> AND HAVE THE BOARD MEMBERS HAD A CHANCE TO REVIEW THE MINUTES? DO WE NEED TO MAKE ANY CHANGES? IF NOT CAN I HAVE A MOTION
>> SECOND. >> PLEASE CALL THE ROLL.
[C. COMMENTS FROM THE PUBLIC:]
TO ITEM C WHICH IS COMMENTS FROM THE PUBLIC.PLEASE WHEN I CALL YOU NAME COME TO PODIUM.
YOU HAVE THREE MINUTES TO SPEAK.
WHEN THE RED LIGHT FLASHES, THAT SIGNIFIES THE END OF YOUR FINE. THE FIRST SPEAKER IS ANNA SANTA CRUZ. ARE YOU PRESENT?
>> I'M HERE BUT DECLINE TO SPEAK.
>> THE NEXT PERSON IS AMY SMITH.
GOOD AFTERNOON. DO YOU NEED ME TO STATE NAME
5708 RAINTREE TRAIL. FT. PIERCE, FLORIDA.
I'M JUST GOING BE DIRECT AND TO POINT.
PEOPLE WANT CHANGE NOT JUST IN TERMS OF LOWERING RATES.
I'M NOT SURE WHERE THE BREAKDOWN LACK OF ACTION.
LIES, YOUR PERCEPTION OF THE LACK OF ATTENDANCE AT 4:00 P.M. MEETING ON TUESDAY WITHIN THE WALLS OF CITY HALL SHOULD BE PERCEIVED AS SILENCE.
BUT I CAN ASSURE YOU THAT'S NOT THE CASE.
YOU MUST BE AWARE OF THE MULTIPLE ONLINE PETITIONS, THE REAL-LIFE AND IN-PERSON CONVERSATIONS HAPPENING WITHIN COMMUNITY MEETING AND SOCIAL MEDIA CAMPAIGNS THAT SAY WE WANT CHANGE. MAYBE IT'S BECAUSE YOU DON'T HAVE SOCIAL MEDIA ACCOUNTS. OR IS BECAUSE YOU DON'T HAVE BOOTS TOWN GROUND IN THE COMMUNITIES OR JUST BECAUSE YOU ARE NOT LISTENING. WITH NATURAL GAS PRICES EXPECTED TO REMAIN HIGHLY VOLATILE AS WE MOVE SAY Q-OF 2023. IN EUROPE, ON THE VERGE OF ENERGY CRISIS AND U.S. BEING THE LEAD EXPORTER OF LIQUID NATURAL GAS. THERE WILL BE TRICKLE DOWN EFFECT AND ITS WILL BE PAINFUL.
THE CURRENT MODEL NOT SUSTAINABLE FOR CURRENT TIMES. NOT FOR OUR COMMUNITY.
GENERATIONAL WEALTH WAS L WITHIN OUR COMMUNITY REMAINS UNCHALLENGED THE GENERATIONAL POVERTY IS INCREASING ALSO UNCHALLENGED.
THIS ISN'T MAY OF 1972 ANYMORE.
MANY OF US WERE BORN INTO THIS AND THIS IS NOT WORKING FOR US ANYMORE. AND SO I WILL BE VERY DIRECT WITH MY REQUEST. ON BEHALF OF THE RATE PAYERS PUT A MOTION ON THE AGENDA TO SEE WHAT A FOR SALE PACKET LOOKS LIKE. YOU WILL OR YOU WON'T.
EITHER WAY, IT SPEAKS VOLUMES AND WE WILL BE
[00:05:01]
LISTENING. .>> THANK YOU FOR YOUR COMMENTS.
>> IS THERE ANYONE ELSE THAT WISHES TO SPEAK? GOOD AFTERNOON. MARIO VICTOR WILCOX.
522 # EL CAMINO LAKE CIRCLE. FORT PIERCE UTILITIES AUTHORITY, FLORIDA. I'M A MINISTER.
THE LAST TIME I WAS HERE ACTUALLY, LAST COUPLE OF TIMES, I ADDRESSED THE ISSUE AND THE PERIL THAT OUR COMMUNITY IS IN. I ADVOCATE ON BEHALF OF THE LOW INCOME AND POVERTY STRICKEN COMMUNITIES.
WITHOUT REGARD TO RACE, OR EVEN GENDER OR EVEN CREED.
IT DID REFERENCE TO EACH OF YOU ABOUT THE FUNDS THAT YOU RECEIVED FROM AGRICULTURE PROGRAM.
I'M A FORMER ADVISORY BOARD MEMBER.
TODAY I COME WITH MY FACTS. FROM START FROM MAY OF 2019 TO ALL THE WAY THROUGH AUGUST THE 11TH OF 2022, YOU RECEIVED 3,346,565.42. PAYMENT FOR AGRICULTURE LABOR PROGRAM INCORPORATED ON BEHALF OF THE LOW-INCOME POVERTY STRICKEN AND DISABLED COMMUNITY.
THE TOTAL UNITS THAT YOU RECEIVED THAT PAYMENT FOR WAS 7,395. I DIDN'T COME HERE WITH MY -- WITH THE DISCONNECT LIST.
I HAVE THE DISCONNECT LIST FOR THIS WHOLE TIME FRAME.
IT'S APPALLING YOU DID DISCUSS CONNECT ON ANYONE GIVEN THAT MONEY. I TOO SERVE ON VARIOUS BOARDS. AS A BOARD MEMBER YOU HAVE A FIDUCIARY RESPONSIBILITY TO THE ORGANIZATION AND THE PEOPLE. NOW I'M NOT HERE TO CRITICIZE OR IMPLY THERE'S MISMANAGEMENT.
THERE'S STING ABOUT THIS THAT'S NOT RIGHT.
IF YOU ARE U.S.ING THIS MONEY FROM THE AGRICULTURE LABOR PROGRAM INCORPORATED, NO CITIZEN SHOULD BE COMING INTO THIS CHAMBER BEGGING FOR YOU NOT TO DISCONNECT THEIR SERVICE. AND THEY ARE NOT AWARE THAT YOU'RE RECEIVING THIS FUNDS. WE NEED TO BE TRANSPARENT ABOUT THIS. AND NEITHER HAVE YOU EVEN EVER MENTIONED THE AMOUNT OF MONEY YOU RECEIVED FROM THEM OR ANY OTHER ORGANIZATION. I SAY AGAIN, WE PAY YOU.
YOU REPRESENT US. YOU WORK FOR US.
WE DON'T WORK FOR YOU. AND THAT'S TRUE.
IT'S NOT CRITICISM. IT'S FACTS.
AND I'M PRETTY SURE YOUR CHAIRMAN, YOU KNOW, YOU ARE A SMART GUY. YOU REPRESENT US.
AND SO YOU SHOULD REPRESENT THE BEST INTEREST.
>> THANK YOU, SIR. >> 2625 SOUTH U.S. ONE.
I NOTE THE ATTORNEY IS NOT HERE.
120,000 A YEAR. I NOTICE HE'S NOT HERE AGAIN. DIDN'T WORK OUT FOR HIM LAST TIME AS WELL. MR. WILCOX JUST TALKED ABOUT RECEIVING 3.3 MILLION DOLLARS IN CHARITY TO HELP THE LEAST AMONG US. AND WHEN YOU VOTED A MONTH AGO TO CUT OFF OUR -- TO RAISE OUR UTILITY RATES ASTRONOMICAL AMOUNT. WHAT AMAZED ME AFTER THE FACT WAS YOU ALL HAD YOUR SORRY BEHINDS LAID UP ON THE BREAKERS HOTEL AT OUR NICKEL.
THEN YOU ARE IRGANT ENOUGH TO PUT IT ON SOCIAL MEDIA WHILE WE'RE ALL STRUGGLING TO PAY OUR BILLS AND FT.
PIERCE, FLORIDA, THIS SERVICE IS TRULY UNPERILED.
OPULENT, EVERY SITE IS EXTRAORDINARY.
I'VE STAYED AT THE BREAKERS PLENTY OF TIME ON MY OWN NICKEL. HOW DARE YOU GO TO BREAKERS WHILE WE'RE STARVING. THIS COMMUNITY.
LET 30% BELOW THE -- UNDER POVERTY.
[00:10:01]
3.3 MILLION AND YOU ALL TAKE YOUR SORRY ASSES DOWN TO THE BREAKERS. IN THE PAST I'VE COME.HERE'S OUR CITY COMMISSION LIAISON.
HIS WIFE REPORTS MANY VACATION AT THE BREAKERS ON OUR NICKEL. FEELING RELAXED AT THE BREAKERS. MOST PEOPLE HERE CAN'T AFFORD THE DAYS INN OR SUNSET INN LAID UP IN A FLOP HOUSE. YOU ARE ALL DOWN THERE.
WINE AND DRINKS IN THE PAST. YOU ALL SHOULD BE ASHAMED OF YOURSELVES. ASHAMED.
THE OPTICS OF THIS THING; THE OPTIC OF IT WHILE YOU RAISE THE UTILITY RATES YOU ARE AT THE BREAKERS.
THE "TITANIC" KEEPS SINKING. THIS HAS GOT TO STOP.
IMMORAL, ILLOGICAL AND DOWN RIGHT STUPID.
I HOPE YOU ALL PAID ATTENTION WHILE YOU WERE DOWN THERE AND YOU LEARNED SOMETHING.
THANK YOU, SIR. >> ANYBODY ELSE WHICH TO ADDRESS THE BOARD? SEEING NO MOVEMENT.
[D. CONSENT AGENDA:]
WE WILL CLOSE THE COMMENTS FROM THE PUBLIC.AND MOVE ON TO THE CONSENT AGENDA.
>> HAS THE BOARD HAD A CHANCE TO REVIEW THE CONSENT AGENDA? ANY ITEM THAT NEEDS TO BE REMOVED AND DISCUSSED? IF NOT CAN WE HAVE A MOTION
TO APPROVE -- >> I APPROVE THE MINUTES.
>> MAKE A MOTION TO APPROVE. >> DO I HAVE A SECOND.
>> SECOND. >> PLEASE CALL THE ROLL.
[G.1. POA No. 22-45: POA No. 22-45: Approve 1) Single source purchase of 15kV Circuit Breakers from ABB DE Inc., of Cary, North Carolina, in an amount not to exceed $201,642; and 2) additional funding in an amount not to exceed $200,000 annually for inventory purchases, for a total of $401,642 for the period of August 17, 2022 thru August 16, 2023.]
G WHICH IS NEW BUSINESS. >> YES, SIR MR. CHAIRMAN.
GOOD AFTERNOON. BOARD MEMBERS THE FIRST ITEM THIS AFTERNOON A REQUEST TO APPROVE THE PURCHASE OF 15K V BREAKERS FOR THE ELECTRIC SYSTEM.
ERIC MEYER ELECTRIC AND GAS SUPERVISOR WILL PRESENT THIS
ITEM. >> THANK YOU MR. CISNEROS,
CHAIRMAN OF THE BOARD. >> THIS PROVIDES PROTECTION SO REPAIRS CAN BE MADE IF NECESSARY.
IT'S SIMILAR TO HOUSE COLD CIRCUIT BREAKER.
MANY GETTING THE POSSIBILITY OF FIRE OR OTHER SUCH DAMAGE. ADDITIONALLY, UNLIKE THE HOUSEHOLD CIRCUIT BREAKER THE CIRCUIT BREAKER ARE CAPABLE OF MOMENTARILY INTERRUPTION BEFORE BEING PLACED BACK IN SERVICE. FPUA STAFF ARE CONTINUING TO SCHOOL FOR REPLACEMENT OF THE EXISTING 15K V CIRCUIT BREAKER. WHEN A NEW BREAKER IS DESIGNED THE UNIT IS ORDERED AND INSTALLED WITHIN WEEKS OF ARRIVAL. DUE TO CURRENT CERTAINTY OF THE SUPPLY CHAIN AND MATERIALS NEEDED TO MANUFACTURER THE UNIT. FPUA STAFF RECOMMENDS THE STAFF BECOME WHERE HOUSE INSTOCK ITEMS THAT BE TAKEN WHEN NEEDED. THE BENEFIT TO HAVING THEM INSTOCK. WE CAN REORDER THEM IF NEEDED IF THE QUANTITY BECOMES LOW.
IN THE NEED OF REPLACEMENT PARTS MAY NOT BE AVAILABLE AND IMMEDIATE REPLACEMENT WILL BE MANDATORY.
THESE UNITS ARE USED WHY SPREAD ON FPUA'S SYSTEM AND RAE CHOIR LITTLE TO NO MAINTENANCE.
ADDITIONALLY THE UNITS ARE PART OF THE EMERGENCY PURCHASE OF GOODS AND SERVICES DUE TO THEIR IMPORTANCE AND CRITICALITY OF NEED TO MAINTAIN SERVICE FOR CUSTOMERS. STAFF IS REQUESTING APPROVAL OF POA1212-45. THE SINGLE SOURCE PURCHASE OF 15K V CIRCUIT BREAKERS FROM ABB DE INK OF CAREY, NORTH CAROLINA IN THE AMOUNT NOT TO EXCEED $201,642 ADDITIONAL FUNDING FOR AN AMOUNT NOT TO EXCEED $200 ANNUAL FOR INVEN TOIR PURCHASES FOR TOTAL OF $401,642. INITIAL PURCHASE FOR 6 CIRCUIT BREAKERS TO BE USED IN STOCK.
USED AS PART OF REGULARLY SCHEDULED REPLACEMENT OR EMERGENCY REPLACEMENT. THE PEAKERS WILL BE USED AS IN-STOCK ITEM TO BE USED AS SPARES.
WE CAN TAKE ANY QUESTIONS YOU MAY HAVE AT THIS TIME.
>> ANY QUESTIONS OF THE WORD MEMBERS?
>> I HAVE A QUESTION. WE'RE GOING TO HAVE SIX ON
[00:15:01]
HAND. AND THEN 15 ALLOW REORDER FOR THE NEXT YEAR. IS THAT CORRECT?>> OUR GOAL TO ACTUALLY ORDER SIX FIRST AND THEN ADDITIONAL FUNDING WILL BE USED IF WE NEED TO ORDER ADDITIONAL. IF THERE'S EMERGENCY REPLACEMENT THAT OCCURS. IF WE HAVE TO DO ANY KIND OF REPAIRS THAT WE CAN GOT MAKE WITH PARTS THAT WE HAVE ON HAND. IT WILL BE BENEFICIAL TO HAVE IT FOR JUST AN EMERGENCY REPLACEMENT.
>> DO WE GET BULK DISCOUNT FOR PURCHASING MULTIPLES AT THE TIME OR ANYTHING LIKE THAT?
>> NOT TO MY KNOWLEDGE, NO. I THINK WHAT THE SUPPLY CHAIN, THE VENDORS AREN'T OFFERING ANYTHING LIKE THAT
AT THE MOMENT. >> AND THEN TYPICALLY LIKE ANNUALLY, HOW MANY DO WE TYPICALLY REPLACE?
>> FOR SCHEDULED MAINTENANCE WHAT WE HAVE FOR NEXT YEAR, WE HAVE TWO AND THEN WE HAVE TWO THE FOLLOWING YEAR.
THE REASON WE'RE ORDERING SIXBECAUSE 15K V BREAKER THAT WE DO HAVE ARE AGING AND IN OLDER CONDITIONS.
THE POSSIBLE OF EMERGENCY REPLACEMENT MAY BECOME MORE PERTINENT AS WE GO ON. WE HAVE SOME BREAKERS THAT ARE ALREADY SHOWING SIGNS OF FAILURE.
AND OUR SUBSTATIONS GROUP IS RECOMMENDING REPLACEMENT OF THOSE UNITS. IT'S DIFFICULT TO DETERMINE CAN ABSOLUTE CERTAINLY IF WE WILL BE REPLACING EXACTLY TWO NEXT YEAR. COULD BE THREE IF WE HAVE ONE THAT FAILS. WE WANT TO MAKE SURE THAT BASED ON SOME OF MY DISCUSSIONS WITH THE SUBSTATION GROUP WE FEEL SIX IS APPROPRIATE NUMBER.
THAT WAY WE HAVE THE SPARES IN EVENT SOMETHING HAPPENS.
>> IS THIS STANDARD LIFE EXPECTANCY?
>> STANDARD LIFE EXPECTANCY IS PROBABLY AROUND 25 YEARS.
AS AN INDUSTRY STANDARD. I KNOW WE CAN USE IT LONGER IF WE NEED TO IT. THAT'S A VENDOR STANDARD THERE. I THINK IT REALLY JUST DEPENDS ON HOW WELL WE MAINTAIN IT.
HOPEFULLY THAT WILL EXTEND THEIR LIFE.
>> ERIC, CAN YOU REMIND ME; MOST OF THE BREAKER AT THE 30-YEAR MARK OR GOOD PORTION ARE AT THE 30-YEAR LIFE CYCLE. THEY ARE BEYOND THEIR END OF
LIFE AS IT STANDS NOW. >> YEAH.
A LOT OF THEM ARE APPROACHING THE END OF LIFE
ARE -- IS THIS A DIFFERENT PROCESS THAN WE USUALLY DO.
>> ORDER SIX AND THEN ORDERING THE BACKUPS.
IS THAT BECAUSE OF SUPPLY CHAIN?
>> TYPICALLY WHAT WE HAVE DONE IN ORDER TO MAINTAIN THE CONSISTENCY WHAT WE'VE DONE EVERY TIME WE NEED ONE FOR SCHEDULED REPLACEMENT. IT'S ALWAYS BEEN AVAILABLE TO ORDER RELATIVELY QUICKLY. LEAD TIME ARE USUAL I8 TO 16 WEEKS. WHAT WE SEE NOW IS OUR SUPPLIER FOR THESE BREAKERS, HAS SEEN THAT SOME MATERIALS CAN'T BE ACQUIRED IN TIME. THE WREAKER THAT WE ORDERED FOR THIS FISCAL YEAR ORDERED BACK IN SEPTEMBER AND DIDN'T GET UNTIL JUNE. IT'S A LONG LEAD TIME.
WE'RE CURRENTLY WORKING ON DOING REPLACEMENT FOR THAT NOW. IT COULD BE AN ISSUE IF WE DON'T GET THE BREAKERS IN. IF WE HAVE TO DO EMERGENCY REPLACEMENT, WE MAY NOT HAVE THE UNIT TO DO SO.
>> RIGHT. IF THAT HAPPENS, FOR THE BENEFIT OF ANYBODY WHO IS LISTENING.
WE DON'T DO THIS AND WE CAN'T REPLACE IT, WHAT
HAPPENS? >> WE CAN -- WE HAVE SYSTEM CONTINGENCIES WE CAN DO. THE PROBLEM IS THEY ARE ONLY MEANT TO BE TESTIMONIARIY. NOT A PERMANENT SOLUTION.
WE WOULD HAVE -- >> IT'S FOR RELIABILITY.
TO MAKE SURE WE ALWAYS HAVE THAT.
>> THAT'S RIGHT. >> WE CAN ALWAYS HAVE A BACK UP AND STORE AND REPLACE THE BACKER WITHIN A MATTER OF
>> MISS BENNETT. >> I WOULD LIKE TO KNOW WHEN THE BREAKERS ARE DAMAGED BY ANY MISHAPS FROM LIKE COMMUNITY WHEN SOMEONE RUN INTO A POLE OR KNOCKS THE BREAKERS OUT AND DAMAGES THEM AND THEY ARE NO LONGER USABLE AT THAT PARTICULAR PLACE.
WHAT DO WE DO TO RECEIVE REIMBURSEMENT FOR THOSE
BREAKERS. >> THE BREAKERS ARE IN OUR SUBSTATIONS. WHAT THEY DO IS THEY PROTECT THE POWER LINES GOING OUT. WHO DOERNLT PHYSICALLY OWN THE POLES. THE CAR HITS A POLE OR WE GET LIGHTNING STRIKE BREAKERS AT THE SUBSTATION WILL OPERATE AND CLOSE BACK IN.
REALLY THE ONLY DAMAGE WE HAVE TO REPAIR IF THE POLES GOT HIT. IF THE LINE GOT DOWNED.
ANYTHING LIKE THAT. IF THE LINE WORKERS GO OUT.
REPAIR THE DAMAGE AND TURN THE BREAKER BACK ON.
THE BREAKER DOESN'T EXPERIENCE PHYSICAL DAMAGE.
IF WE GOT DAMAGE TO THE BREAKER, I BELIEF WE HAVE A
[00:20:03]
WARRANTY ON IT. I DON'T KNOW WHAT THE WARRANTY IS OFF THE TOP OF MY HEAD.I WANT TO SAY -- I DON'T KNOW WHAT IT IS.
BUT I KNOW WE GET A WARRANTY ON IT A CERTAIN AMOUNT OF TIME BEFORE ENERGIZING IT. IF THERE'S ANY TYPE OF DAMAGE. IF AN ANIMAL GETS INSIDE THE SUBSTATION, WE WOULD BE ABLE TO TALK TO OUR SUPPLIER IN THIS CASE AND SEE ABOUT WHAT WE CAN DO TO GET REPLACEMENT FOR THAT IF IT'S COVERED UNDER WARRANTY.
>> MR. CHAIRMAN? >> YOU MENTIONED THE LEAD TIME HAS GONE FROM TYPICAL 8 TO 16 WEEKS TO NINE MONTHS.
WHICH IS A VERY LONG TIME TO GET BREAKERS.
WITH THAT IN MIND, I HAVE A FEW QUESTIONS.
YOU MENTIONED HAVING BREAKERS ON HAND FOR EMERGENCY PUMPS. WHAT WOULD YOU SAY THE AVERAGE NUMBER OF EMERGENCY BREAKER REPLACEMENT WE
EXPERIENCE PER YEAR? >> WE HAVEN'T HAD EMERGENCY REPLACEMENTS IN THE PAST FEW YEARS.
WHAT IS HAPPENING NOW WITHIN THE PAST FEW YEARS WE'RE NOTICING SIGNS OF FAILURE IN THOSE BREAKER.
WHAT'S HAPPENING RECENT CASE IS ONE ON THE SUBSTATIONS, ONE OF THE VACUUM BOTTLES HAD BURST.
WE'RE ON CONTINGENCY OF ONE OF THE BREAKERS NOW IN ORDER TO GET THE UNIT THAT WE CAN. TYPICALLY GETTING THE REPLACEMENT PARTS SHOULD BE A MATTER OF DARES.
BUT DUE TO SUPPLY CHAIN CONSTRAINTS WE SEE IT HAPPEN FOR WEEKS. WHAT WE WOULD LIKE THE DO IN THAT CASE WITH THIS PARTICULAR BREAKER IS REPLACE IT. IT'S OLD AND AGEING.
IF WE DID HAVE A BREAKER, THIS WOULD BE A PERFECT OPPORTUNITY FOR US TO REPLACE IT.
GET THE NEW ONE IN AND GO. >> HOW OLDS THE BREAKER WITH THE VACUUM BOOT THALL BURST? .
>> DON'T HAVE THE INFORMATION OFF THE TOP OF
MID HEAD. >> I WANT TO SAY IN THE 80S
OR 90S. >> AS PART OF THIS ORDER, ARE WE ORDERING REPLACEMENT PARTS AS WELL? OR IS IT OBVIOUSLY FULLY ASSEMBLED BREAKERS THAT WE
WE ARE ORDERING THE BREAKERS AND ALSO WHAT THEY CALL THE ED-2.0 CONTROL SPARE BOARD. THIS IS UNIT THAT MAKES THE BREAKER FUNCTION WITH ITS XUSHIZED ELIGIBLIC.
WE'LL HAVE SOME OF THOSE ON HAND.
IF ONE OF THOSE DOES FAIL IN THE EQUIPMENT THAT WE GET SOMETHING WEIRD HAPPENING. THEY WANT WE WON'T HAVE TO DO A DIRECT BREAKER REPLACEMENT.
>> LAST QUESTION, DO WE HAVE ANY SPARE BREAKERS ON HAND
CURRENTLY? >> WE ONLY HAVE ONE SPARE BREAKER. IT'S ONE OF THE OLDER MODELS THAT WE'VE HAD FOR A WHILE. IT'S USABLE.
BUT IT'S ONE OF THOSE ONES WE'VE HAD FOR ABOUT TEN-PLUS
>> HOW MANY BREAKERS DO WE HAVE THAT ARE IN GOOD WORKING ORDER. SUBSTATION ACCEPT FOR H - CAUSEWAY; CAUSEWAY ONLY HALF FOUR WORKING BREAKERS.
OH IN THE 34 ARE BEGINNING TO AGE OUT?
>> 50% OF THEM? >> PROBABLY LESS THAN 50%.
WE'RE APPROACHING THE TIME WHERE IT'S BECOMING -- IT COULD BE COMING A I THROUGHABILITY.
WE DON'T KNOW WHEN THEY WILL FAIL.
WE HAVE A SCHEDULED REPLACEMENT BASED ON WHAT THE SUBSTATION GUYS HAVE SEEN.
THEY DON'T HAVE GUARANTEE THAT ALL OF THEM WILL BE -- THIS COULD BE WORKING NEXT YEAR OR COULD NOT BE.
HAVING THE SPARE JUST HELPS US GET THROUGH THAT MOMENT.
>> ANY OTHER QUESTIONS? >> I MOVE APPROVAL.
>> SECOND. >> PLEASE CALL THE ROLL.
[G.2. Power Cost Adjustment July 2022 – For Information Only]
MR. CHAIRMAN THE NEXT ITEM AN UPDATE ON THE POWER COST ADJUSTMENT. STAFF BRINGING A RECOMMENDATION TO LOWER THE POWER COST ADJUSTMENT.BARBARA MIKA WILL PRESENT THIS ITEM.
[00:25:03]
>> I WOULD LIKE TO THANK YOU FOR THIS ITEM TODAY.
THE INFORMATION UPDATE WERE NOT MADE AVAILABLE UNTIL THURSDAY OF LAST WEEK. THE UPDATED INFORMATION FOR THE JULY POWER COST AND THE FORECAST FOR THE 12 MONTH PROJECTION THROUGH JULY OF NEXT YEAR ARE TRENDING A BIT MORE FAVORABLE. FPUA'S COST OF PURCHASE POWER IS RECOVERED THROUGH OUR CUSTOMER BILLINGS.
THE POWER COST RECOVERY IN EXCESS OF OUR BASE POWER COST ARE ACCUMULATED AS OVER RECOVERY.
OR RATE STABILIZATION FUND. IN ORDER TO RETAIN SUFFICIENT FUNDS TO PAY THE POWER COST WE START TO MAINTAIN RESERVE BETWEEN 1 AND 5 MILLION DWLARS WITH EXCESS FUND GOING BACK TO THE CUSTOMER WHENEVER POSSIBLE. THE COST OF POWER PURCHASE FROM FPUA FOR THE MONTH OF JULYS BILLED TO FPUA ALTERNATE BLENDED RATE OF $98.01.
FOR 1,000 KILOWATT HOURS. THIS WAS A DECREASE OF $9.35 COMPARED OUR JUNE BILLINGS. FOR THE MONTH OF JULY, FPUA OVERRECOVERED POWER COST FROM CUSTOMER 2.4 MILLION.
RESULT OF THE COMBINATION OF THE $59PCA AND THE LOWER POWER COST THAT WERE PASSED ON FROM FMPA.
FMPA INFUSION OF CASH RESERVE HAD DRAMATIC IMPACT ON THE COST WE'RE EXPERIENCING.
OF COURSE, BACK IN JUNE WE HAD NO IDEA OF THE ACTIONS THAT FMPA WOULD COME TO TAKE TO AIDE THE ARP MEMBERS.
THIS ORRECOVERY IN JULY BROUGHT OUR UNDERRECOVERY JUNE 30TH OF 1 MILLION UNDERRECOVERY TO OVERRECOVERY OF 1.4 MILLION AS OF JULY 31ST.
THE CHART TRACKS CUMULATIVE MONTHLY BALANCE OF THE POWER COST ADJUSTMENT OVER RECOVERY.
THE AMOUNT OF THE POWER COST ADJUSTMENT IS REPRESENTED BY THE DARKER BLUE LINE WHICH FOR THE MONTH OF JULY WE CAN SEE SPIKING UP TO $59 LEVEL. PER 1,000 KILOWATT HOURS.
THE BARS ON THE TOP OF THE CHART REPRESENT THE OVERCOLLECTION OR OVER, UNDER RECOVERY.
THE BLUE BARS ARE THE EXPERIENCE WE'VE HAD ON THE MONTHLY BALANCES. THE ORANGE BARS ARE WHAT THE PROJECTED OVER RECOVERY WITH THE CURRENT FORECAST NUMBER BEING PRESENTED WITH THE PROPOSED $19PCA WOULD BE.
YU SEE THE PCA THE BLUE LINE GOING DOWN TO $19 AND THEN OVERRECOVERY PROJECTIONS ARE THE ORANGE BARS. FEW CHER ADJUSTMENT TO PCA WILL BE NECESSARY TO ELEVATE FCA FURTHER INTO THE RATE STABILIZATION FUND. SAFEGUARDING OUR RESTRICTED CASH, UNRESTRICTED CASH AND PROVIDING A CUSHION FOR FUTURE ANOMALIES LIKE THE ONE WE ARE EXPERIENCING.
THIS PROJECTION AND THE OTHERS THAT YOU WILL SEE IN THE NEXT SLIDE HAVE BEEN PREPARED BY FINANCIAL CALL AS A RESULTANT AND BASE ON THE DATA FROM FMPA, FLORIDA MUNICIPAL POWER AGENCY. SINCE THE LAST INFRASTRUCTURE FMPA FORECAST OF THE 12-MONTH COST TO PURCHASE POWER FOR THE UPCOMING 12 MONTHS DECREASED BY 736,000 OR ABOUT 1.3%. FROM LAST MONTH.
FROM JUNE. THIS GRAPH REPRESENTS A COMPARISON OF THE UPDATED PROJECTIONS WE HAVE FROM TODAY. TRENDING THE POWER COST RECOVERY FROM JULY OF NEXT YEAR.
THE RATE ZABLDATION FUND IS MAINTAIN THE 1 MILLION DOLLARS AND THE FIVE MILL DOLLAR DOLLAR.
EAST -- EACH OF # ADJUSTMENT POINT TO SEPTEMBER 1ST IMPLEMENTATION DATE.
MAINTAINING THAT PCA LEVEL STRAIGHT UNTIL JULY OF 2023.
SO NO CHANGES. JUST IMPLEMENTING A CHANGE.
THE RED LINE ON TOP MAINTAINS THE CURRENT PCA OF 29 PER PCA. WE CAN SEE IT EXCEEDING THAT FIVE MILLION DOLLAR LINE SOMEWHERE AROUND JANUARY THE BLUE LINE SHOWS THE IMPACT OF $5 ADJUSTMENT.
THAT WOULD BRING THE PCA EFFECTIVE FEBRUARY 21ST DOWN TO $2 FOR 1,000 KILOWATT HOURS.
THAT WOULD BE BLUE LINE WHICH KEEPS US WITHIN THE RATE STABILIZATION RANGE. THE GREEN LINE PROVIDES FOR $10 DECREASE. ALL THREE OF REDUCTION WILL
[00:30:02]
MAINTAIN OR SURPASS THE PCA RATE DESTABILIZATION FUND.FPUA HAS TAKEN STEPS TO ALLEVIATE THE IMPACT OF HIGHER COST TO THE ARP MEMBERS.
THE SAVINGS ARE SHORT TERM BUT WILL PROVIDE FPUA ON THE POWER COST BILL OVER THE NEXT FEW MONTHS WE ARE ABLE TO PASS ON TO CUSTOMERS NOW. IT WILL HELP LOWER COST DOWN THE ROAD. IT'S THE HOPE THAT THE MARKET ADJUSTMENTS WILL EVENTUALLY CHANGE AND WE'LL HELP. THE MEAN TIME WE TRIED TO WORK TOGETHER THROUGH THIS TIME.
OUR STAFF MONITORS THE POWER COST ADJUSTMENT AND THE IMPACT ON THE COST FROM THE MARKET PRICES AND OTHER OPERATIONAL DECISIONS SO THAT WE CAN REPORT TO YOU MONTHLY AND RECOMMENDATION CHANGES.
STAFF IS RECOMMENDING A RE-ZEBBINGION TO PC OF $10 BRINGING PAV FROM $29 TO $19 FOR 1,000 KILOWATT HOURS.
IF YOU HAVE ANY QUESTIONS IT WOULD BE HAPPY.
>> ANY BOARD MEMBER DOUBT THAT IT'S NOT THE RIGHT THING TO DO TO LOWER THIS BY $10?
>> I DON'T HAVE ANY DOUBT. >> I KNOW MISS BENNETT IS
DIEING TO MAKE A MOTION. >> I WILL MAKE A MOTION THAT
WITH LOWER THE PCA TO $19. >> DO WE HAVE A SECOND.
>> SECOND. >> PLEASE CALL THE ROLL.
>> I JUST WANT TO MAKE SURE MR. CHAIRMAN, THAT WHAT YOU SAID WAS THE MARKET HASN'T CHANGED.
THE MARKET HASN'T CHANGED. THIS IS OUR STEPS THAT FMPA ARE TAKING TO HELP US AND THAT WE ARE TAKING TO HELP
OURSELVES. >> IS THAT CORRECT?
>> YES, MA'AM IT IS. >> I WILL TALK A LITTLE BIT ABOUT DURING THE DIRECTOR'S SECTION.
PUTS US BACK TO PRE-JULY. WE'RE BACK TO BRING WE WERE BEFORE. THAT'S A GOOD THING.
>> JUST FOR EVERYBODY WHO IS LISTENING, WE CAN CHANGE THIS ANYTIME. THE PROJECTION IS INTO DECEMBER. THIS IS ONLY FOR RIGHT NOW.
>> WE LOOK AT IT AGAIN NEXT MONTH.
WE LOOK AT IT EVERY SINGLE MONTH.
>> THANK YOU. >> AT LEAST IT'S SHORT-TERM
>> I THINK WE WERE GETTING EVERY MEETING THERE WAS A QUICK UPDATE. CAN WE MAINTAIN THAT? I JUST WANT TO MAKE SURE IT'S OPEN DIALOGUE.
>> THE TOUGH THING ABOUT THE FIRST BOARD MEETING OF THE MONTH IT'S BEFORE WE RECEIVE THE INFORMATION.
WHAT I CAN DO IS MAKE SURE I CONTINUE TO PROVIDE THE ACTION THAT THE FMPA BOARD HAS BEEN TAKING.
THE EXECUTIVE COMMITTEE. TYPICALLY WHEN I GET VALUABLE INFORMATION I SHARE WITH THE BOARD VIA E-MAIL SO YOU ARE INFORMED THE ACTION TAKEN AT THAT LEVEL WHICH IS VERY IMPORTANT. THEY ARE DOING -- OBVIOUSLY THIS IS THERE TOP PRIORITY TO PROVIDE POWER BUT SPECIFICALLY MANAGING THE POWER COST ADJUSTMENT AS IT RELATES TO THE FUEL COST. THEY DEAL WITH THAT EVERY DAY. BECAUSE THEY OBVIOUSLY PROVIDE UTILITY SERVICES FOR CITIES AND THEN 2023 CITIES AND OVERALL WITHIN THEIR FLEET OF CITIES THEY SERVE.
IT'S REALLY, REALLY IMPORTANT FOR THEM.
I WILL MAKE SURE TO CONTINUE TO PROVIDE THE BOARD
[D. DIRECTOR:]
>> YES, SIR. >> I WOULD LIKE TO FOLLOW UP ON INDIVIDUAL CONVERSATIONS THAT I HAD WITH EACH OF THE BOARD MEMBERS. FPUA DID SUSPEND DISCONNECTS. EFFECTIVE AUGUST 4TH.
ANY CUSTOMER DISCONNECTED BETWEEN THE 1ST AND IF 4TH WAS RECONNECTED IMMEDIATELY. ADDITIONALLY WE ARE WAIVING ALL LATE FEES AND PENALTY FEES FROM AUGUST 1ST UNTIL FURTHER NOTICE. I WOULD LIKE TO GET FEEDBACK FROM THE BOARD TODAY. THE ACTION TO SUSPEND DISCONNECTS NOT AN ACTION THAT CAN BE TAKEN LIGHTLY.
WE HAVE RULINGS IN PLACE AT THE BOARD LEVEL AND WITHIN OUR BOND COVENANT. I WOULD LIKE TO HIT TOWN REASON WE SUGS SUSPENDED DISCONNECTS FOR THE MONTH OF AUGUST. I GOT TWO SPECIFIC ITEMS I WOULD LIKE TO DISCUSS RELATED TO THAT.
NUMBER ONE FOR THE MONTH OF AUGUST IT WAS IMPORTANT TO PROVIDE MORE TIME FOR OUR CUSTOMERS TO GET FINANCIAL ASSISTANCE BECAUSE OF THE HIGHER POWER COST ADJUSTMENT. FOR THE QUALIFIED CUSTOMER A TIME WAS ESSENTIAL TO GET THE ASSISTANCE FOR $50,000 ADMINISTERED BY MUSTARD SEED.
[00:35:03]
PART OF THAT IS WORKING WITH US FIRST SPECIAL ARRANGEMENT AND BUDGET BILLING STUFF. ALL THIS WAS DRIVEN BY KEY PERFORMANCE THAT OUR CUSTOMERS NEEDED MORE TIME.NUMBER TWO AT THE STATE COMMISSION LAST NIGHT THE CITY DID APPROVE 100,000 FOR THE ALL-AMERICAN RESCUE PLAN FOR UTILITY BILL SYSTEMS FOR THE COMMUNITY.
APPEARS THE FUNDS WILL BE EARLY SEPTEMBER.
I BELIEF IT WILL BE APPROPRIATE TO PROVIDE THE TIME FOR OUR CUSTOMERS TO REACH THAT FUNDING.
WAT I'M PROPOSING TO THE BOARD AND WILL NEED SOME DIRECTION IS THAT BASED ON THAT INFORMATION IS MY RECOMMENDATION THAT WE WOULD SUSPEND THROUGH SEPTEMBER 30TH. THIS IS VERY SIMILAR TO HOW WE NAVIGATED THE COVID PANDEMIC.
WE WOULD RESUME NORMAL OPERATION ON OCTOBER 1ST.
I DO NOT YOUR APPROVAL TO RESUME OPERATION OCTOBER 1ST. I WOULD LIKE OPEN THAT UP
FOR DISCUSSION. >> ANY COMMENTS FROM THE
BOARD? >> MR. CHAIRMAN, IT WAS
>> AND THE ASK WAS 100 BUT WE UPPED TO 125.
>> THAT'S RIGHT. >> IT'S GOING TO BE ADMINISTERED BY THE COUNTY. THE COUNTY COMMUNITY SERVICES DEPARTMENT. AND WE HAVE TO HAVE -- GET AN AGREEMENT IN PLACE WITH THE COUNTY FOE DO THAT.
THEY WON'T BE READY UNTIL SEPTEMBER.
>> RIGHT. >> THAT INFORMS SEPTEMBER 30TH, IS SOMETHING THAT THINK IS A GOOD THING.
IT'S A GOOD RECOMMENDATION. >> IF I GET A GENERAL
CONSENSUS? >> ANY OTHER COMMENTS?
>> I THINK IT GIVES ENOUGH TIME FOR PEOPLE COME BACK FROM HAVING THE ISSUES IN JULY AND BEING ABLE TO PAY OFF IF THEY HAVE YOU KNOW I CAN'T REMEMBER ALL THE VERBING A. WE'RE NOT SHUTTING OFF.
WE ALSO THEN HAVE TO GET THAT MONEY FROM THEM.
SO IT GIVES THEM ENOUGH TIME TO PAY BACK IN SLOWER AMOUNT OF TIME FRAME. THAT WAY IT'S NOT TOO MUCH.
>> IT ALSO GIVES AN OPPORTUNITY TO IMPLEMENT THE $10 REDUCTION APPROVED TODAY.
HOPEFULLY THEY WILL FEEL THE RELIEF AND BE ABLE TO
>> THE DISCONNECTS, WHEN WILL WE START DISKENTHING?
>> WE WOULD START DISCONNECTS OCTOBER 1ST.
GO BACK TO NORMAL OPERATION OCTOBER 1ST.
OCTOBER 3RD WHICH IS THE MONDAY.
WE'RE WALKING ON A LITTLE BIT OF A THIN LINE HERE WITH THE WAY THE RULES ARE WRITTEN.
>> EXACTLY. WE NEED TO START COMMUNICATING TO THEM NOW THAT ARRANGEMENTS ARE MADE IN PLACE BEFORE OCTOBER 1ST. IF THEY DON'T THEY ARE AT RISK OF DISCONNECTING. THAT MESSAGE NEEDS TO COME
QUICKLY AND CLEARLY. >> YES, SIR.
>> WE DON'T WANT TO DO THAT. YOU DON'T WANT TO.
>> YOU DON'T WANT TO. ABSOLUTELY NO.
NOT RIGHT NOW. THEY NEED TO BE AWARE.
YOU DON'T WANT SOMEONE TO WAKE UP OCTOBER 1ST, COME HOME AND THE POWER IS OUT. WE NEED TO HAVE ENOUGH NOTICE SO THEY CAN MAKE ARRANGEMENTS.
WE ARE DOING A BILL STUFFER. RACHEL IS TAKING NOTES NOW.
WE WILL SEND OUT A BILL STUFFER.
WE WILL PUT THAT ON SOCIAL MEDIA.
DO AS MUCH AS WE CAN. >> GET IN THE LOCAL PAPER AS
>> DO MAILING SO THE LOCAL CHURCHES.
>> YESES SIR. >> CAN WE PUT IT ON 104.5.
AT THE LAST BOARD MEETING WE TALKED ABOUT.
I INTERVIEWED WITH MR. LARRY LEE OF 104.3.
THE FLAME. WE'LL MAKE SURE WE DO A SESSION WITH HIM TO MAKE SURE WE GET THAT OUT TO THE COMMUNITY. WE'LL DO SOME OTHER RADIO
STATIONS AS WELL. >> ALSO NOW WITH BUDGET BILLINGS. WITH BUDGET BILLING, I KNOW THEY HAVE TO THE BILL ALTERNATE THE ZERO BALANCE BEFORE THEY CAN SIGN OFF A BUDGET BILLING.
IS THAT STILL INSIDE OR DO WE SET THAT UP BEFORE THEY
COME TO A ZERO BALANCE? >> THEY HAVE TO HAVE CURRENT BALANCE MEANING THEY CAN'T HAVE PAST DUE BALANCE.
THEY CAN SET UP A BUDGET BILL.
IF THEY HAVE A BALANCE THAT'S NOT CURRENT.
[00:40:02]
THEY DO HAVE TO GET CURRENT. WE HAVE WORK WITH THEM TO GET TO THE POINT WHERE THEY CAN HAVE ZERO BALANCE AND TRY TO GET THEM ON A BUDGET BILLING PROGRAM.THE BUDGET BILLING PROGRAM IS PRETTY EFFECTIVE.
>>> YOU'RE SAYING THEY JUST CAN'T HAVE A PAST DUE BALANCE. CAN'T HAVE PAST DUE BALANCE.
THEY CAN HAVE A CURRENT BALANCE.
>> ANY OTHER QUESTIONS OF THE BOARD.
>> I DO MR. CHAIRMAN. >> YOU JUST GAVE A BRIEF RUNDOWN OF THE PRO ACTIVE WAY WE'RE COMMUNICATING WITH OUR CUSTOMERS. I THINK IT'S IMPORTANT ENOUGH ESPECIALLY WITH WHAT WE BEEN HEARING OVER THE LAST FEW MEETINGS THAT YOU GIVE US THAT SAME TYPE OF RUNDOWN EVERY MEETING. WHAT HAVE WE DONE SINCE THE LAST MEETING TO PROACTIVELY COMMUNICATE TO OUR CUSTOMERS AND WHAT EXACTLY HAVE WE BEEN COMMUNICATING? IF I COULD -- IF WE COULD HEAR THAT EVERY MEETING, THAT'S PRETTY IMPORTANT FOR ME.
AND THAT'S CONSISTENT MESSAGE THAT WE CONTINUE TO HEAR FROM OUR COMMUNITY OVER AND OVER AGAIN.
>> YES, SIR. WE WILL MAKE SURE TO PREPARE
FOR EVERY BOARD MEETINGS. >> YES, SIR.
>> WE NEED A MOTION. >> LAST NIGHT AT THE COMMISSION MEETING, THAT WAS STRESSED AGAIN THE COMMUNICATION. PRO ACTIVE COMMUNICATION, LETTING PEOPLE KNOW AND ALSO I THINK ANOTHER IMPORTANT THING IS THAT IF THEY ARE IN TROUBLE, THEY NEED TO REACH OUT TO US. YOU FOUND THAT OUT DURING THE PANDEMIC. IS THAT YOU HAD A HARD TIME SOMETIMES GETTING AHOLD OF PEOPLE.
AND SO SOMETIMES THEY WERE RELUCTANT TO GET AHOLD OF US. YOU FOUND THAT OUT TOO.
THAT'S ONE OF THE MOST IMPORTANT THINGS THEY CAN DO BECAUSE WE WILL WORK WITH PEOPLE.
BECAUSE THE LAST THING WE WANT TO DO CUT ANYBODY OFF.
>> I DON'T THINK WE NEED A VOTE.
I THINK I NEED GENERAL -- AND IT SOUNDS LIKE WE'RE A CONSENSUS. I CAN TAKE IT FROM THERE.
>>> COUPLE OF OTHER THINGS. ON FRIDAY MUSTARD SEED STAFF NOTIFIED US THEY RECEIVED APPLICATION FOR THE ENTIRE $50,000. THEY'VE BEEN ABLE TO PROCESS THAT. THEY HAVE BEEN GREAT TO WORK WITH. THEY UNDERSTAND THE URGENCY.
THANK YOU TO THOSE FOLKS. I MENTIONED THIS BEFORE BUT IMPORTANT TO KEEP YOU -- CONTINUE TO KEEP YOU IN THE LOOP. FMPAS ABLE TO LOCK IN ADDITIONAL FUEL PRICES AND THAT'S PART OF THE REASON WE'RE ABLE TO LOWER THE PCA. AS WE MOVE INTO LOCKING MORE FUEL PRICES IN SHORE-TERM AND LONG TERM WHERE YOU MANAGE THE POWER COST ADJUSTMENT.
THE FMPA PURCHASED 20% OF FUEL FOR THE SHORT-TERM.
WHAT THAT MEANS FROM NOW THROUGH NOVEMBER, AND THEY -- WE'RE LOOKING TO CONTINUE TO SEE IF WE CAN LOCK IN SOME PRICES AS YOU MAY HAVE SEEN TODAY THE GAS MARKETS OVER $9.30. YESTERDAY HEADING 40 OR SO.
PRETTY SIGNIFICANT JUMP TODAY.
IT'S JUST ONE DAY. BUT, AGAIN, SOME OF WHAT WE'VE DONE. WE'VE BEEN ABLE TO MITIGATE SOME OF THOSE SPIKES. SECOND FOR NEXT YEAR FMPA WAS ABLE TO PURCHASE 50% OF THE FUEL AT $5.92 FROM MARCH 2023 THROUGH APRIL 2024. PRETTY IMPORTANT ACCOMPLISHMENT BECAUSE THAT WILL BRING SOME MUCH NEEDED STABILITY FOR CUSTOMERS FOR NEXT YEAR.
WE'LL CONTINUE TO WORK WITH FMPA.
>> PRICE WE PURCHASED. >> $5.92.
>> WILL THAT PERMIT US TO LOWER AGAIN WHEN WE GET OVER
THERE? >> WE'RE SUBJECT TO THE OTHER 50%. IF WE CONTINUE NAVIGATE THE THRESHOLDS THAT WERE DEFINED TO LOCK IN MORE PRICES, THE GOAL LOCK IN PRICES BELOW THE $5.92.
OUR AVERAGE COST IS LOWER. BUT AS YOU CAN SEE THE MARKET HAS BEEN PRETTY VOLATILE.
I'M GOING TO THE BOARD MEETING THURSDAY AT FMPA.
I THINK WE WILL BE DISCUSSING CHANGING THAT THRESHOLD SO WE CAN LOCK IN SOME MORE PRICES.
THERE'S 13 CITIES THAT ARE INVOLVED IN THIS.
THEY ALL HAVE TO AGREE TO DO THIS BECAUSE IT'S -- THERE'S STILL RISK ASSOCIATED WITH THAT.
WE'LL CONTINUE TO NAVIGATE THAT.
5.92 IS RIGHT NOW IS A GOOD NUMBER.
ESPECIALLY WITH THE VOLATILITY THAT WE ARE SEEING. I NEVER THOUGHT WE WOULD SAY $5.92 WAS A GOOD NUMBER. PRETTY REMARKABLE.
MORE INFORMATION TO COME FROM THAT.
[00:45:01]
I WON'T BE AT THE BOARD MEETING THURSDAY.>> AUGUST 29TH FMPA WILL MEET WITH CONGRESSMAN TO TAKE A TOUR OF THE EXISTING WASTEWATER PLANT.
IF WE HAVE ENOUGH TIME WE WILL TAKE A TOUR OF THE NEW SITEMENT. OUR GOAL TO CONTINUE TO REACH TO OUR STATE AND FEDERAL LEGISLATIVE REPRESENTATIVES TO KEEP OUR COMMUNITY AND THIS PROJECT ON THE TOP OF THEIR LIST. WE CONTINUE TO BE VERY ENGAGED WITH THAT. TWO MORE ITEMS. SEPTEMBER 6TH IS OUR NEXT SCHEDULED BOARD MEETING.
CURRENTLY AS OF TODAY WE DON'T HAVE MANY ITEMS FOR THAT BOARD MEETING. IN ADDITION TO THAT MONDAY IS A HOLIDAY. THE CITY MOVES THEIR MEETING TO THE FOLLOWING DAY AT THE SAME TIME FRAME.
I THINK IT'S OKAY FOR US TO SCHEDULE THAT MEETING IF WE DON'T HAVE ENOUGH AGENDA ITEMS. WE'LL MOST LIKELY GO THROUGH NEXT WEDNESDAY BEFORE WE DETERMINE THAT. AND I THINK IT WON'T EFFECT THE WAY WE HANDLE THE POWER COST ADJUSTMENT.
WE DON'T GET THE INFORMATION UNTIL THE 10TH.
WE WOULD BE PREPARED FOR SEPTEMBER 20TH IN THE EVENT THAT WE HAD TO DO ANY ACTION ITEM FOR THE POWER COST ADJUSTMENT. I WILL KEEP YOU POSTED IN CASE THAT DOES GET CANCELLED.
>> LAST NIGHT AT THE CITY COMMISSION MEETING THE COMMISSION DID APPROVE THE FY-2023 PROPOSED BUDGET AND THE AMENDED FY-2022 BUDGET. BARBARA DID A GREAT JOB.
SHE DID A GREAT JOB. WE HAD A GREAT DIALOGUE WITH THE CITY COMMISSION. THE BIG TAKE AWAY FROM THE MEETING WAS MANAGING THE POWER COST ADJUSTMENT AND SYSTEM EXPANSION. COMMUNICATION IS IMPORTANT.
THE MAYOR MENTIONED THAT. I THINK THAT'S SOMETHING WE WILL FOCUS ON AND I THINK IT TAKES SOME GOOD STEPS TO PUT THE TEAM TOGETHER TO MOVE FORWARD.
ONE OF THE THINGS THAT WE REALLY CAN'T LOSE SIGHT OF IS SYSTEM GROWTH. THE COMMISSION TALKED ABOUT THAT AT LENGTH. SYSTEM GROWTH IS IMPORTANT FOR US TO INCREASE OUR CUSTOMER CONNECTIONS.
IT WILL HELP REDUCE THE UNIT COST OF OUR CUSTOMERS.
WE STILL HAVE OUR FOCUS TO CONTINUE TO EXPAND THE CITY.
AS WE EXPAND THE UTILITY THAT EXPANDS THE CITY LIMITS. IT'S A ONE FOR BOTH THE CITY AND UTILITY. I WOULD LIKE TO JUST THANK THE COMMISSION FOR THEIR FEEDBACK AND THEIR CONTINUED SUPPORT. THAT'S ALL I HAVE FOR YOU,
>> ANY QUESTIONS OF THE DIRECTOR?
>> I WOULD LIKE TO ADD THAT WE MET WITH CONGRESSMAN MASS ABOUT NATURAL GAS. AND WHAT HAPPENING.
WE'VE REACHED OUT TO STATE LEGISLATORS TO LET THEM KNOW TOO. THIS THE SOMETHING THAT I DON'T THINK STATE LEGISLATURE CAN DO ANYTHING ABOUT. WE'RE TRYING TO KEEP THEM INFORMED SO THEY KNOW WHAT'S HAPPENING WITH US.
WHY OUR RATES ARE WHAT THEY ARE RIGHT NOW AND WHAT WE TRY TO DO TO DEAL WITH IT. .
>> THAT'S A GOOD POINT. IF YOU'VE BEEN FOLLOWING THE FEDERAL LEVEL, JOE MANSION TRIED TO MAKE SURE THEY PUT FEDERAL LAND AS PART OF THEIR BILL TO OPEN THE LANDS UP INSTALL GAS LINES INSTALL SOME ADDITIONAL WELLS.
THAT'S PRETTY GOOD DEAL. IT STILL CONTINUES.
IT WAS SUCCESSFUL. >> THAT WAS PRETTY IMPORTANT. HE'S FROM A STATE THAT PRODUCES A LOT OF COAL. THIS WAS IMPORTANT FOR US TO GET FOR THE NATURAL GAS MARKET BECAUSE DIRECTLY EFFECTS US AS UTILITY IN THE STATE OF FLORIDA BECAUSE 75% OF FLORIDA IS PRODUCES POWER FROM NATURAL GAS.
[F. COMMENTS FROM BOARD MEMBERS:]
>> ANY COMMENTS FROM THE BOARD MEMBERS.
>> MR. CHAIRMAN. THERE'S A KIDS BUILD AT JC PARK SPONSORED BY THE CITY OF FT. PIERCE.
AND THIS BUILD WILL BE OCTOBER 11TH THROUGH THE 16TH. AND THEY ARE SEEKING VOLUNTEERS TO HELP WITH THE BUILD TO VOLUNTEER.
THERE'S THREE SHIFTS A DAY. THIS PLAYGROUND WILL BE ACCESSIBLE FOR ALL CHILDREN SPECIAL NEEDS, CHILDREN WITH CHALLENGES. IT WILL BE THE ONE OF A KIND IN THIS AREA. AND IF YOU GO ON LINE, ANYBODY WANTS TO VOLUNTEER TO HELP BUILD THIS AT JC PARK, IT WILL BE -- THEY WILL NEED A LOT OF VOLUNTEERS. I'VE ALREADY GONE ON THE WEB SITE AND SIGNED UP. IT'S EASY TASK TO DO.
I'M ENCOURAGING PEOPLE TO VOLUNTEER FOR THAT.
>> HOW OLD DO YOU HAVE TO BE TO VOLUNTEER?
>> YOU HAVE TO BE -- TO WORK ON YOUR OWN YOU HAVE TO BE A TEENAGER LIKE 16 I THINK AND ABOVE.
BUT THEN YOU CAN WORK WITH YOUR PARENT IF YOU ARE DOWN
[00:50:01]
TO SOMETHING LIKE 8 AND THEN UNDER 8.THEY DON'T WANT CHILDREN THAT SMALL.
PROBABLY SOMETHING TO LOCAL HIGH SCHOOLS WOULD BE GOOD.
THEY NEED SERVICE HOURS. WE TALKED ABOUT THAT LAST
NIGHT AT THE COMMISSION. >> ANY OTHER COMMENTS?
>> JUST A FEW THOUGHTS ABOUT 2024 AND THE BUDGET.
I KNOW WE JUST GOT 2023 PRETTY MUCH LINED UP.
FOR GAS PURCHASES, I DON'T THINK IT'S PRUDENT, REALLY TO BUDGET WHAT THE CURRENT MARKET IS.
I THINK WE NEED TO BUDGET A LITTLE BIT HIGHER AND GIVE THE CREDIT BACK TO THE CUSTOMER.
IF WE GUESS WRONG. BECAUSE IF WE GUESS RIGHT WE DON'T HAVE TO GO VOLATILE SWITCHES ON THE PCA ALL THE TIME. I DON'T KNOW IF WE NEED TO HAVE AN INDEPENDENT ANALYST TO COME IN.
I KNOW WE GET A LOT OF REPORTS.
MAYBE WE NEED SOMEONE TO CHECK THEIR NUMBERS BECAUSE I KNOW THIS YEAR WAS AN ODDITY.
NO ONE COULD HAVE EXPECTED THE GAS POLICIES.
BUT STILL MIGHT BE NICE TO HAVE SOMEONE SECOND GUESS.
THIS IS WHAT WE THINK. BECAUSE IF WE HAVE TWO DIFFERENT NUMBERS, WE MIGHT NEED TO TAKE THE HIGHER NUMBERS TO LOWER NUMBER. THAT MIGHT BE BETTER FOR OUR
WE CAN DEFINITELY LOOK INTO THAT.
WHAT I CAN SAY IS WE'VE BEEN ABLE TO LOCK IN PRICES FOR 2023, 50%; AND I BELIEVE AROUND 25% FOR 2024.
THE CLOSER WE GET TO LOCKING IN THE PRICES THE MUCH MORE STABLE PROJECTIONS WILL COME FOR STAFF AND FOR THE BOARD.
BUT WE CAN DEFINITELY LOOK INTO A PEER REVIEW OF OUR
THE WAY WE DO IT. >> BETWEEN 24 ARE $5.92.
>> A LITTLE BIT DIFFERENT. I CAN FOLLOW UP.
I DON'T REMEMBER FOR 2024. A SMALLER PERCENTAGE.
BECAUSE THEY WERE SOME RESERVATIONS ABOUT LOCKING IN TOO MUCH PAST NOVEMBER. EACH ELECTION CYCLE IS THERE
WAS CONCERN ABOUT -- >> EXACTLY.
I DON'T WANT TO LOCK IN A PRICE RANGE IF WE THIS ELE ELECTION CYCLE WILL HAVE FAVORABLE IMPACT ON THE MARKET.
>> PART OF THAT INCLUDES BRINGING STABILITY.
BECAUSE THE NEXT TWO YEARS THERE'S STATION THAT COMES ONLINE AT THE END OF THE YEAR.
WE'LL CONTINUE TO EXPORT OUT OF OUR COUNTRY.
IN 2024 THERE'S ALSO ANOTHER LMG STATION.
EXPORT STATION THAT COMES ONLINE.
THAT WILL CONTINUE TO INCREASE THE AMOUNT OF GAS WE EXPORT WHILE OUR SUPPLY IS LOW.
EVEN THOUGH WE GO THROUGH ELECTION ISSUE.
WE HAVE SOME SUPPLY AND DEMAND CONCERNS.
I DON'T HAVE AS MANY RESERVATIONS LOCKING IN SOME OF THOSE PRICES BECAUSE I THINK THE STABILITY IS REALLY IMPORTANT FOR OUR COMMUNITY.
THERE'S THE RISK ASSOCIATION WITH LOCKING IN THE PRICES.
WE ALSO HAVE THE RISK THAT WE'LL CONTINUE TO EXPORT SO MUCH GAS THAT IT WILL DRIVE DOWN THE SUPPLY.
AND INCREASE THE PRICE. WE TRY TO MANAGE IT AS CAREFULLY AS WE CAN. FPA THERE'S O FOR THE MOST PART THEY HAVE SOME NEW -- THERE'S A NEW LEADERSHIP THERE FOR THE LAST 3-4 YEARS.
JACOB IS INVOLVED WITH THAT. HE HAS EXPERIENCE WITH THAT ON THE NATIONAL LEVEL. I HAVE A LOT OF CONFIDENCE IN THE WAY HE HANDLES THAT. ALSO I TALK THAT HIM PROBABLY ONCE A DAY. I'M COMING UP TO SPEED WITH THE BIG PICTURE AS FAR AS OUTSIDE OF FLORIDA AND HOW WE MANAGE GAS OR PROCURE GAS.
THERE ARE SOME INDICATORS TELLING US WE WILL CONTINUE TO EXPORT GAS OUT OF THE COUNTRY WHICH IS GOING TO HURT US HERE AT THE NATIONAL LEVEL.
>> MR. CHAIRMAN, ALSO MR. CISNEROS, WHEN THE COLD WEATHER COMES UP NORTH, THAT'S GOING TO EFFECT EVERYTHING. THEY USE NATURAL GAS FOR HEATING. RIGHTS NOW THEY ARE NOT FEELING WHAT WE'RE FEELING HERE IN FLORIDA.
BUT THIS FALL YOU KNOW -- NOVEMBER WILL BE -- EVERYBODY WILL BE HAVING THIS PROBLEM.
>> YOU'RE ABSOLUTELY RIGHT. THE STORAGE NUMBERS ARE REALLY LOW RIGHT NOW. THEY ARE TYPICALLY IN THE 50 NUMBER AS FAR AS STORAGE BUILDING CUBIC FEET.
THEY ARE IN THE 22 RANGE. THEY ARE WELL BELOW THE INDICATORS. WHAT THAT MEANS UP NORTH WILL BE REALLY -- THEY WILL HAVE SOME REALLY HIGH COST WHEN IT COMES TO HEATING. IT'S A LITTLE BIT SCARY.
WE'RE FEELING IT NOW DURING THE SUMMER.
THEY WILL FEEL IT BIG TIME IN THE NORTHEAST AND THE
[00:55:02]
MIDWEST AND THE NORTHERN STATES.IT'S GOING TO BE ROUGH FOR THEM.
>> YOU'RE ABSOLUTELY RIGHT. >> THEY ARE FEELING IT BECAUSE THEY HAVE COAL AND IT HAS GONE UP SIX TIMES.
IT'S WAY WORSE THAN WE'RE EXPERIENCING HERE.
BUT I WANTED TO JUST -- WHEN YOU BROUGHT THAT UP ABOUT SOME OF THESE PLANS AND EVERYTHING, WE DISCUSSED THE STRATEGIC MEETING AND I WANT TO MAKE SURE THAT STILL KIND
OF OUR RADAR. >> IT'S ON OUR RADAR.
I'VE BEEN PUTTING TOGETHER ITEMS THAT WILL BE GOOD FOR US. I WILL MAKE SURE THAT I FOLLOW UP IN THE NEXT WEEK OR SO WITH SOME AGENDA ITEMS OR ITEMS THAT WILL BE IMPORTANT.
PART OF THAT WILL BE DISCUSSING POWER COST IN OUR RATE STABILIZATION AS WE MOVE FORWARD.
THERE'S AN OPPORTUNITY FOR TO US BE ABLE TO MANAGE THIS AS WE MOVE FORWARD SO THAT IF THE -- AS WE EXPERIENCE OVER THE NEXT TWO YEARS AS WE CONTINUE TO MANAGE THE VOLATILE MARKET, MAYBE WE CAN SOMETHING WITH PCA TO AVOID THIS DURING THE SUMMER MONTHS NEXT YEAR.
HISTORICALLY WE'VE LOWERED THE PCA DURING THE SUMMER.
THE NEXT COUPLE OF YEARS WE WON'T BE ABLE TO DAY.
WE CAN'T LOWER PCA. BECAUSE OF NATURAL GAS PRICES. WE NEED TO THINK ABOUT HOW WE HANDLE THIS IN THE FUTURE.
THAT'S AN ITEM THAT'S IMPORTANT FOR THE BOARD.
FOR US TO LOOK AT THE WAY WE DO IT.
AND SEE IF WE CAN MANAGE IT HERE.
FMPA IS DOING IT. WE NEED TO DO IT HERE LOCALLY. THE STRATEGIC PLANNING IS ON
THE RADAR, YES, MA'AM. >> ANY OTHER COMMENTS FROM
THE BOARD? >> I JUST WOULD LIKE TO COMMEND YOU ALL FOR REALLY LOOKING AT THESE NUMBERS AND BRINGING THE PCA DOWN. I MEAN, I COMMEND EACH AND EVERY ONE OF YOUR STAFF FOR THE HARD WORK THEY HAVE
>> ALL RIGHT. WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.