[MEETING TO ORDER]
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>> WELCOME TO THE FORT PIERCE UTILITIES AUTHORITY REGULAR MEETING FOR AUGUST 1, 2023. PLEASE STAND FOR THE OPENING PRAYER AND THE PLEDGE OF ALLEGIANCE.
>> FATHER, WE THANK YOU FOR OUR BOARD AND ASK THAT YOU PROVIDE THEM WITH YOUR WISDOM AND CLARITY AS THEY MAKE DECISIONS AFFECTING THE OPERATIONS OF FPUA AND ULTIMATELY, THE CITIZENS OF FORT PIERCE. PLEASE BLESS THEM AS THEY SEEK YOU IN THEIR DECISION-MAKING. IN JESUS' NAME, WE PRAY.
>> 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.
>> MS. CORTEZ, PLEASE CALL THE ROLL.
[A. SET THE AGENDA]
DO WE HAVE A MOTION TO APPROVE-- SET THE AGENDA?
>> PLEASE CALL THE ROLL. MRS. BENNETT?
>> YES, MA'AM. >> MR. LAMMERS?
>> YES, MA'AM. >> MAYOR HUDSON?
[B. APPROVAL OF MINUTES]
>> YES, MA'AM. >> MRS. GIBBONS?
MOVING ON. WE HAVE APPROVAL OF THE MINUTES.
HAS EVERYBODY HAD AN OPPORTUNITY TO REVIEW? IS THERE ANYTHING THAT NEEDS TO BE CHANGED OR REMOVED?
>> MAKE A MOTION TO APPROVE THE MINUTES.
>> SECOND. >> PLEASE CALL THE ROLL.
>> MRS. BENNETT? >> YES, MA'AM.
>> MR. LAMMERS? >> YES, MA'AM.
MAYOR HUDSON IN. >> YES, MA'AM.
ANYONE FROM THE PUBLIC FOR COMMENTS TODAY?
[D. CONSENT AGENDA]
OKAY. MOVING FORWARD.CONSENT AGENDA. ANYTHING THAT NEEDS TO BE PULLED OR FURTHER DISCUSSION? I WILL ENTERTAIN A MOTION.
>> MAKE A MOTION TO APPROVE THE AGENDA.
>> YES, MA'AM. MRS. IMIBONS-- BEGIN SNONS
[G.1. POA 18-40A: 1) Approve the single source purchase of Honeywell Electric Meters from Elster Solutions, LLC of Raleigh, North Carolinas, in an amount not to exceed $172,563.30 and 2) approve $165,464 for future purchases for projects, for a total of $338,027.30. The total cost includes extended four-year warranty(s). Presented by Dino Nesselrode.]
>> THANK YOU, MADAM CHAIR. GOOD AFTERNOON TO BOARD MEMBERS.
TODAY WE HAVE TWO ITEMS. BOTH OF THEM VERY IMPORTANT.
BUT ONLY TWO ITEMS TODAY. THE FIRST ITEM THIS AFTERNOON IS A REQUEST TO APPROVE THE PURCHASE OF ELECTRIC METERS FOR CURRENT INVENTORY. THESE METERS ARE COMPATIBLE WITH THE CURRENT AMI PROJECT. FOR CLARITY, THESE METERS WILL BE USED FOR CURRENT CONSTRUCTION PROJECTS AND FUTURE PROJECTS IN THE NEAR TERM. THE SUPERINTENDENT OF ELECTRIC OPERATIONS WILL PRESENT THIS ITEM.
>> THANK YOU, MR. CISNEROS. MADAM CHAIR, BOARD MEMBERS.
I'M HERE TO ASK FOR APPROVAL FOR ONE PURCHASE OF HONEYWELL ME METERS. FROM ELSTER SOLUTIONS.
NOT TO EXCEED $172,563.30. AND TWO, TO APPROVE $165,464 FOR FUTURE PURCHASES FOR PRODUCTS FOR A TOTAL OF $338,027.30.
THIS IS FROM NEW INSTALLATION ONLY.
IT IS NOT FOR REPLACEMENTS. OR PART OF THE INITIAL AMI PROJECT. WE ARE SEEING SIGNIFICANT GR GROWTH, AND CONSIDERING THE SUPPLY CHAIN ISSUE, WE ARE TRYING TO GET AHEAD OF THE CURVE AND YOU KNOW, GET THESE THINGS ORDERED AND GET THEM IN THE YOU. IT IS A SOLE SOURCE.
ELSTER ELECTRIC METERS, INCLUDING THE EXTENDED WARRANTY.
TO COMPLY WITH THE CURRENT METERING PROJECT.
IF YOU HAVE ANY QUESTIONS, I WOULD BE HAPPY TO ANSWER THEM.
>> MADAM CHAIR, I SEE THAT IT IS NOT CHECKED THAT IT IS BUDGETED.
IS THAT BECAUSE IT IS NOT BUDGETED?
>> SO IT IS BUDGETED AS PART OF THE PROJECT COST FOR NEW PROJECT EXPANSION. SO IT IS BUDGETED.
THAT PROBABLY IS JUST AN -- >> OVERSIGHT?
>> YEAH. ONE OF THE SOT WARE THINGS-- SOFTWARE THINGS WE HAVE TO DEAL WITH.
>> MADAM CHAIR? >> MR. NESSELRODE, YOU MENTIONED THESE METERS ARE NOT FOR THE AMI PROJECT, IN THAT THEY ARE NOT REPLACING EXISTING METERS.
THEY ARE SPECIFICALLY FOR NEW CUSTOMERS.
>> MADAM CHAIR, OUT OF CURIOSITY, WHAT IS THE PER UNIT
COST OF THESE METERS? >> IT CAN RANGE.
THE ONES THAT WE ARE GETTING ARE FOR THE CT METERS.
MOSTLY BUSINESS. I DON'T KNOW THE EXACT COST.
I CAN GET YOU THAT INFORMATION. >> HOW MANY YEARS ARE WE
PURCHASING FOR THIS COST? >> A TOTAL OF ABOUT A THOUSAND.
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CLOSE TO IT. >> THIS IS ALL TARGETED FOR
GROWTH? >> THIS IS ALL TARGETED FOR GROWTH. YES.
THE SECOND PURCHASE FOR $165,000.
THAT IS FOR RESIDENTIAL ONES. THAT IS ROUGHLY ABOUT 1,300
METERS. >> I'LL MAKE A MOTION TO
APPROVE. >> I HAVE A QUICK QUESTION.
(LAUGHTER) WARRANTY ON THEM? WHAT ARE WE LOOKING AT?
>> ROUGHLY FOUR YEARS. >> AND HOW LONG DO YOU THINK IT IS GOING TO TAKE FOR US TO GET THEM?
>> OH, THAT COULD TAKE 7 MONTHS TO A YEAR.
>> WE WILL TRY TO KEEP YOU POSTED ON THAT AS WE RECEIVE THEM. WE ARE HAVING-- ACTUALLY, I'M GOING TO MENTION ONE OF THOSE THINGS IN MY NOTES HERE.
>> OKAY, GREAT. >> WE WILL KEEP YOU POSTED ON THE STATUS OF DELIVERY OF THE USE.
>> I GUESS WE HAVE A MOTION. >> I RENEW MY MOTION TO APPROVE.
>> SECOND. >> PLEASE CALL THE ROLL.
>> MRS. BENNETT? >> YES, MA'AM.
>> MR. LAMMERS? >> YES, MA'AM.
[I.1. Adopt Resolution No. UA 2023-07, a resolution adopting budget for fiscal year beginning October 1, 2023 and ending September 30, 2024 and amending the budget for fiscal year beginning October 1, 2022 and September 30, 2023, for Fort Pierce Utilities Authority of the City of Fort Pierce, Florida.]
>> THANK YOU, DINO. >> ALL RIGHT.
NEXT WE HAVE RESOLUTION. CORRECT?
>> YES, MA'AM. THE LAST ITEM THIS AFTERNOON IS A REQUEST TO ADOPT RESOLUTION UA-2023-07 FOR THE FY '24 BUDGET AND THE ADMITTED FY-'23 BUDGET. EARLIER THIS YEAR, ON JUNE 21, THE BOARD HOSTED A WORKSHOP OPEN TO THE PUBLIC WHERE WE DISCUSSED SOME OF THE PROPOSED BUDGET IN DETAIL.
STAFF HAS RECOMMENDED APPROVAL OF THE RESOLUTION, AND BARBARA MIKA, WILL PRESENT THIS ITEM. WE DID HAND OUT A HARD COPY OF THE PRESENTATION THAT SHE WILL BE PRESENTING TODAY.
>> THANK YOU. >> THANK YOU, MR. CISNEROS.
MADAM CHAIR AND BOARD MEMBERS, GOOD AFTERNOON.
I AM PLEASED TO BE HERE TO PRESENT TO YOU THE ANNUAL BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2024.
AND AMENDING THE FISCAL YEAR ENDING SEPTEMBER 30, 2023.
AND THE RESOLUTION TO ADOPT THIS BUDGET.
I WOULD LIKE TO JUST, YOU KNOW-- A LITTLE BIT OF INTRO.
IN YOUR PACKET, YOU HAVE TWO DOCUMENTS.
TWO BIG BOOKS. ONE OF THEM IS THE SUMMARIZED ANNUAL BUDGET, AND BECAUSE IT IS SUCH A LARGE ADDITIONAL DOCUMENT, THE CAPITAL IMPROVEMENT PLAN WITH ALL OF THE DETAILS, MOST OF WHICH WAS PRESENTED AT THE BUDGET WORKSHOP IS INCLUDED IN THIS DOCUMENT. THAT IS WHY THERE IS TWO.
THERE WOULD BE, YOU KNOW, A PHONEBOOK IF WE PUT IT WITH ONE.
THIS WILL BE HELPFUL THROUGHOUT THE YEAR.
WITH ALL THE DETAILS, THE PROJECTS THAT WE WILL BE WORKING ON. THIS BUDGET, WE HAVE HERE TODAY WAS PREPARED TAKING A CRITICAL LOOK AT PLANS, PROJECTS, AND PROJECTIONS, TO ENSURE THAT THE SUPPORT AND THE STRATEGIC GOAL OF THIS ORGANIZATION ARE MAINTAINED.
THE OBJECTIVE OF THIS GOAL IS TO LAY OUT A PLAN FOR SUSTAINABILITY FOR FORT PIERCE UTILITIES AUTHORITY AND TO ACCOMPLISH THIS WITH THE STRATEGIC FOCUS IN MIND.
WE CONTINUE TO WORK ALONGSIDE THE CITY ON SYSTEM EXPANSION AND RELIABILITY PROJECTS THAT HELP SUPPORT THE CURRENT AND FUTURE NEEDS OF OUR CUSTOMERS AND THE CITY OF FORT PIERCE.
THE SINGLE LARGEST PROJECT THAT FPUA HAS UNDERTAKEN IS THE RELOCATION OF THE WATER RECLAMATION FACILITY OFF OF HUTCHINSON ISLAND. THIS WILL ENHANCE THE ECONOMIC BILL FOR THE CITY AND PROVIDE FPUA WITH THE INFRASTRUCTURE AND THE FACILITY THAT WILL TAKE US INTO THE FUTURE.
THE EXPANSION OF THE GUEST SERVICE TERRITORY AND THE NEW GATE STATION TO THE NORTH AND WEST OF TOWN WILL NOT ONLY SUPPORT CURRENT DEVELOPMENTAL NEEDS, BUT OPEN OPPORTUNITIES FOR FUTURE GROWTH. THE CAPITAL IMPROVEMENT PLAN DEVELOPED AS PART OF THIS BUDGET PROVIDES RELIABILITY IMPROVEMENTS THAT WILL BE MADE OVER TIME.
WE CONTINUE TO WORK ON MULTI-YEAR STORM-HARDENING TO IMPROVE OUR SYSTEM RELIABILITY, STREN THINKING INFRASTRUCTURE AND IMPROVING RELIABILITY OF THE AGING WASTE WEARS SYSTEM WITH THE COMBINED WORK ON FORCE MAIN LINING.
FPUA HAS RENEWED OUR COMMITMENT TOWARD BEING PROACTIVE AND TRA STEEJIC WITH OUR COMMUNITY. WE ARE BUILDING A VISION OF HASH
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TAG COMMUNITY PROUD. IT IS AIMED AT INSPIRING TRUST AND CONFIDENCE IN OUR STAFF AND THE UTILITY.WE HAVE THE UTILITY ADVISORY COMMITTEE WORKING ON DEVELOPING A PLAN THAT WILL ENSURE ALL CUSTOMERS HAVE A FORUM FOR QUESTIONS AND CONCERNS. FPUA EMPLOYEES TAKE PRIDE IN THE ORGANIZATION, SUPPORTING OUR CUSTOMERS THROUGH A RELIABLE AND FRIENDLY SERVICE. FPUA AS A MEMBER OF THE ALL REQUIREMENTS PROJECT, WE ARE CONTINUING TO KEEP OUR RATES AS COMPETITIVE AS POSSIBLE. SINCE THESE BUDGETS WERE PRESENTED AT THE BUDGET WORKSHOP ON JUNE 21, THERE HAVE BEEN A FEW MINOR CHANGES. I WOULD LIKE TO POINT THOSE OUT.
WE HAD FINALIZED AFTER THAT DATE, OUR RATE SUFFICIENCY WHICH ALLOWED US TO CONFIRM THAT OUR REVENUE PROJECTIONS WHICH WOULD, YOU KNOW, INCREASE ANYTHING RELATED TO REVENUE, THAT WOULD BE ONE OF THEM, THE DISTRIBUTION TO THE CITY WAS CHANGED SINCE THAT POINT. IT IS NOW ESTIMATED, BASED ON THE PROJECTED REVENUES AT 7.9 MILLION.
OUR REVENUE PROJECTIONS ARE VERY STRONG.
AND ALSO THE CIVIC CONTRIBUTION THAT IS WE MAKE TO THE-- MINOR TWEAKS WE DID SINCE THEN. ON THE CAPITAL SIDE, THE RATE SUFFICIENCY ALSO MADE AVAILABLE ADDITIONAL FUNDS.
WE HAD THOUGHT ORIGINALLY THAT WE WERE GOING TO-- THE CAPITAL BUDGET IS ALMOST $2 MILLION. OF THAT, WE WERE-- THAT IS THE WHOLE WISHLIST THIS IN THIS BOOK.
$91 MILLION. WE CAN ONLY AFFORD RATE FUNDED TO A CERTAIN EXTENT. THAT RATE SUFFICIENCY AT THE TIME OF THE WORKSHOP WAS AROUND $5 MILLION LESS THAN THAT.
AROUND $86 MILLION. NOW WE ARE-- THE UPDATE WITH THE RATE SUFFICIENCY, WE HAVE LOWERED THAT AMOUNT.
THAT IS UNAVAILABLE. TO BEING AVAILABLE.
THAT RAISED THE AMOUNT THAT WE HAVE BEEN ABLE TO FUND BY ANOTHER $2.5 MILLION OF RATE-FUNDED.
BASED ON THE STUDY THAT WAS DONE.
IT WASN'T COMPLETE AT THE TIME OF THE WORKSHOP.
THE CALCULATION FOR FUNDS AVAILABLE FOR CAPITAL CAN BE FOUND IN THE OVERVIEW SECTION OF THE ANNUAL BOOK.
THAT IS ON PAGE 47. AND THAT AMOUNT SHOWING AVAILABLE FOR THE COMPLETION OF THIS YEAR IS $21 MILLION AVAILABLE FOR RATE-FUNDED. AND FOR '24, IT IS $5.5 MILLION.
THAT SOUNDS LIKE A LOT. IT ALSO INCLUDES THE FUNDING THAT WE ARE ANTICIPATING TO GET GRANT REVENUE AS WELL.
NOT JUST RATE REVENUE THAT IS IN THERE.
THERE IS GRANT REVENUE. TO FUND THE PROJECTS AS WELL.
THE INCREASE IN FISCAL YEAR '24 PROJECTED REVENUES IS DUE-- ARE DUE TO THE APPLICATION OF THE INDEX RATEAY JUSTMENTS.
THE ANTICIPATED GROWTH ON CUSTOMER BASE.
THAT IS BEING BROUGHT ON THROUGH THE EXPANSION PROJECTS.
AND AGAIN, THE $15 MILLION OR SO OF GRANT REVENUE THAT IS IN THERE. IN THE WASTE WEARS SECTION.
IN THE WASTEWATER SECTION. THERE IS A REDUCTION OF CORRELATED EXPENSES. IF OUR COSTS ARE DOWN, THE PC WILL BE DOWN. THAT IMPACTS REVENUE AS WELL.
CAPITAL CONTRIBUTIONS REMAIN STRONG, AND THE ANTICIPATION OF GRANT REVENUE FOR THE WASTEWATER PROJECTS ROUND OUT THOSE INCREASES IN THE REVENUE SECTION.
THE DECREASE IN FISCAL YEAR '24 ON THE OPERATIONS AND MAINTENANCE IS MAINLY ATTRIBUTABLE TO THE DECREASE IN THE PURCHASE HISTORY FOR RESALE. HAVING THE HEDGING OF OUR COST, ANTICIPATING, YOU KNOW, A MORE STEADY AND LOCKED IN WITH OUR RATES AND WHAT WE THINK WE WILL BE PAYING FOR PURCHASE POWER.
THAT IS A SIGNIFICANTLY LOWER NEXT YEAR.
THAT INCREASE WAS ALL SET-- OFF-SET BY OTHER INCREASES AND OTHER EXPENSES, OF COURSE. PERSONNEL SERVICES AND EMPLOYEE BENEFITS. SOME ADDITIONAL PROPERTY AND LIABILITY INSURANCE IS GOING TO BE GOING UP NEXT YEAR.
WE DON'T HAVE OUR RENEWALS YET. WE ARE ANTICIPATING INCREASES IN LIABILITY INSURANCE. THIS PRESENTATION IS TO FORMALLY AMEND THE FISCAL YEAR '23 BUDGET AND TO ADOPT THE FISCAL YEAR '24 BUDGET. THIS GRAPH REPRESENTS THE TOTAL BUDGET. THE AMOUNTS INCLUDE ALL FUNDING SOURCES AND SHOW THE TREND OF THE INCREASED COST FOR YEAR OVER YEAR. THE COST OF PURCHASE POWER AMENDED FOR FISCAL YEAR '23 IS $9.1 MILLION LOWER THAN THE
[00:15:05]
ORIGINAL BUDGET. IT IS ANTICIPATED TO BE ALMOST 43% OF THE TOTAL BUDGET. AGAIN, THE HEDGING OF GAS COSTS BY FMPA HAS PROVIDED ADDITIONAL SAVINGS FOR FPUA IN FISCAL YEAR '24 AND SHOULD ACCOUNT FOR ALMOST 39% OF THE TOTAL BUDGET.THE PURCHASE FOR RESALE THEY ARE NOT CONTROLLED BY FPUA, AS YOU KNOW. WE DO NOT BUDGET-- WE BUDGET IN A MANNER THAT ALLOWS FOR FLUCTUATIONS.
WE ARE PRETTY SOLID FOR NEXT YEAR, WE FEEL ANYWAY.
THIS IS A GRAPH SHOWING REVENUES BY SYSTEM.
AS COMPARED TO PREVIOUS YEARS. AND THEY ARE ON A STEADY INCREASE. FISCAL YEAR, '23 AND '24 REVENUE, INCREASES FOR ALL SYSTEMS. BASED ON PROJECTED GROWTH AND THE CUSTOMER BASE.
THOSE INDEXED RATE ADJUSTMENTS THAT WE HAVE INCLUDED IN OUR BUDGET. AND HISTORICAL AND FINANCIAL AND STATISTICAL DATA THAT WE USE IN OUR CALCULATION AND TRENDING.
THE SHARP DECREASE IN THE ELECTRIC REVENUES FOR THE ORIGINAL 24. YOU CAN SEE THE RED SECTION IS A LITTLE LOWER THIS YEAR. THE DECREASE IS THE RESULT OF THE LOWER COST OF PURCHASE POWER.
AND MORE CONTROL POWER COST ADJUSTMENT.
THIS CHART TAKES A CLOSER LOOK AT THE FISCAL YEAR, '24 REVENUES. JUST NEXT YEAR'S REVENUE BUDGET BY SYSTEM. ELECTRIC REVENUES ARE PROJECTED TO BE $80.5 MILLION OR 50% OF THE TOTAL REVENUE BUDGETS FOR FISCAL YEAR '24. WITH A 5.4 DECREASE FROM THE AMENDED BUDGET, AS I HAD MENTIONED.
IT IS ANTICIPATED THAT THE COST OF PURCHASE POWER WILL ALIGN WITH OUR BASE COST, REDUCING THE NEED TO RECOVER THROUGH THAT RESTABILIZATION FUND. WATER AND WASTEWATER COMBINED REVENUES FOR FISCAL YEAR '24, THE BLUE AND THE GREEN, THAT $69 MILLION, 26% GREATER THAN AMENDED BUDGET FOR THIS YEAR.
AGAIN, THE INDEX RATE ADJUSTMENTS PUBLISHED BY THE PSC WILL SUPPORT THE GROWTH AND DEVELOPMENT OF OUR UTILITY SYSTEM AS WELL AS OUR CUSTOMERS THAT ARE COMING ON-LINE.
DUE TO THE EXPANSION PROJECTS. GAS REVENUES, THAT IS THE YELLOW SECTION, ARE ALSO EXPECTED TO INCREASE FROM FISCAL YEAR '23 TO '24 WITH THE COMPLETION OF SOME CURRENT PROJECTS THAT THEY ARE WORKING ON FOR COMMERCIAL, GENERAL SERVICE PROJECTS.
AND IT IS ANTICIPATED TO BRING ADDITIONAL MANUFACTURING CUSTOMERS TO FORT PIERCE. IN COMPLETION OF THE NEW GATE STATION WHICH WILL BE IN THE NEXT-- OVER THE NEXT TWO YEARS, WILL PROVIDE GROWTH OPPORTUNITIES FOR THE NATURAL GAS CUSTOMER BASE EXPANDING THAT GAS SERVICE TERRITORY.
THAT IS ALL GOOD THINGS WITH THE GAS.
EXPANSIONS. THIS GRAPH COMPARES ACTUAL OPERATIONS AND MAINTEANCE EXPENSES TO THE ORIGINAL BUDGETS FOR THESE YEARS. YOU CAN SEE THE TREND THAT THE ACTUAL EXPERIENCE IS TYPICALLY LESS THAN THE ORIGINAL BUDGET.
BY 6.2%. FOR THE YEARS '19 THROUGH '21.
FISCAL YEAR '22, OUR ORIGINAL ESTIMATION FOR OUR BUDGET WAS WAY EXCEEDED. IT WENT AGAINST THE GRAIN OF WHAT WE ARE USED TO SEEING. AND THAT IS BECAUSE OF THE COST OF PURCHASE POWER THAT WAS SO HEAVY, AND WE GOT HIT WITH THAT LAST YEAR. THE COSTS ARE FOR THE TIME BEING, TO CONTROL BRINGING THE AMENDED AND ORIGINAL BUDGET EXPENSE MORE IN LINE IN '23 AND '24 WITH THE ACTUAL FOR '22.
'23 AND '24 WILL ARE NOW COMING BACK ON-LINE.
THIS IS A CLOSE-UP LOOK OF JUST THE FISCAL YEAR '24 OPERATIONS AND MAINTENANCE BUDGET. IT IS A BIGGER AND CLEARER REPRESENTATION OF JUST HOW MUCH OF OUR BUDGET IS MADE UP OF PURCHASES FOR RESALE. THE PURCHASE RESALE IS ABOUT 39% OF THE TOTAL BUDGET FOR NEXT YEAR.
OTHER O & M EXPENSES. THAT BIG BLUE PIECE OF THE PIE
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HERE, F THAT MAKES UP ABOUT 61%. INCLUDES OUR PERSONNEL SERVICES, EMPLOYEE BENEFITS, CONTRACTUAL SERVICES AND OTHER OPERATING-- INCLUDING THE CITY DISTRIBUTION AND CON TEN GENERAL SI.CONTINGENCY. THAT IS A LINE ITEM WE PUT IN THE BUDGET. WE NEVER SPEND THAT WITHOUT BOARD APPROVAL. INDEPENDENT APPROVAL.
WE DON'T USE OUR CONTINGENCY UNLESS WE ASK FIRST.
THE APPROVAL TODAY OF THE ANNUAL BUDGET RESOLUTION WILL INCLUDE TWO NEW PROVISIONS. FIRST, IT WILL BE THE ASSUMED APPROVAL OF THE SALARY ADJUSTMENTS AS BUDGETED AT THE 5% RATE FOR ALL GENERAL EMPLOYEES.
AND THE SECOND IS AUTHORIZING STAFF MOVING FORWARD INTO NEXT YEAR TO PERFORM BUDGET TRAN TRANSFERS.
WE DID THIS WITH THE CAPITAL BUDGET THIS PAST YEAR TO ALLEVIATE, YOU KNOW, THE SLOWDOWN IN BRINGING THINGS TO THE BOARD EACH TIME. AS LONG AS IT IS INCLUDED IN THE ACTUAL BUDGET, FOR THE YEAR, WE ARE ASSUMING THAT THEY ARE GOING TO MAKE THE BEST CHOICES BECAUSE THEY HAVE REFUNDED MONEY THAT THEY CAN USE TO THE BEST OF THEIR ABILITY, SO THEY CHOOSE THE PROJECTS THEY ARE GOING TO WORK ON.
THEY STAY WITHIN THE REALM OF WHAT'S AVAILABLE.
WHAT FUNDS ARE AVAILABLE. WE LIKE TO GO THAT ROUTE ON THE OPERATIONS AND MAINTENANCE SIDE FOR BUDGET TRANSFERS NEXT YEAR.
AND WE WOULD LIKE THE BOARD TO AUTHORIZE STAFF TO PERFORM BUDGET TRANSFERS THAT ARE WITHIN EACH SYSTEM'S BUDGET LIMITATIONS BECAUSE THAT FALLS IN LINE WITH THE RATE EFFICIENCY FOR EACH SYSTEM. ANY TRANSFERS GREATER THAN THE DOU, GREATER THAN THE APPROVAL THAT DO NOT FALL WITHIN THOSE PARAMETERS WE WILL BRING TO THE BOARD.
BUT JUST GENERAL TRANSFERS, IT KEEPS THINGS MOVING.
IT MAKES US MORE EFFICIENT IN GETTING THINGS DONE AND GETTING PURCHASES MADE AND WE DON'T WANT TO BE BOTTLENECKING THINGS WHEN WE NEED TO KEEP MOVING FORWARD. SO WE WOULD LIKE TO DO THAT AS WELL. THIS PIE CHART HERE IS A BREAKOUT OF THE BLUE SECTION FROM THE PREVIOUS-- THE OTHER O&M. THAT IS JUST THIS BLUE SECTION OF THE OTHER EXPENSES CATEGORY. PERSONNEL AND EMPLOYEE BENEFITS ACCOUNT FOR THOSE-- THOSE ARE THE PURPLE AND BLUE SECTIONS.
ACCOUNT FOR 24% OF THAT TOTAL BUDGET-- OF THE OTHER BUDGET PIECE. INCLUDED IN THESE CATEGORIES IS THE 5% COST OF LIVING ADJUSTMENT FOR ALL EMPLOYEES.
THAT COMES TO ABOUT $923,000 FOR THE YEAR.
INCLUDED IN THAT BUDGET. BUDGET AMOUNT.
THE TOTAL BUDGET FOR PERSONNEL INCLUDES 297 POSITIONS WITH 39 OF THOSE POSITIONS CURRENTLY NOT FILLED.
THEY ARE VACANT. EMPLOYEES' RATE FOR RETIREMENT REMAINS UNCHANGEDMENT AT 6.1%. THEK A CHAIR WALL ACTUARIAL RATE WAS 28.9. THAT WAS UP FROM 17.96 THAT EXWE ARE EXPERIENCING THIS YEAR. THE COST OF RETIREMENT FUND IS GOING UP. FOR THE EMPLOYER.
EMPLOYEE INSURANCE IS BUDGETED AT 2%.
FPUA IS CURRENTLY TRENDING 5% BELOW OUR EXPECTED COST.
WE ARE DOING VERY WELL WITH OUR PROGRAM, BUT JUST TO BE ON THE SAFE SIDE AND CONSERVATIVE SIDE, WE HAVE PUT IN 2% ON THE EMPLOYEE INSURANCES FOR NEXT YEAR.
THIS IS THE REPRESENTATION OF THE DISTRIBUTION TO THE CITY OF FORT PIERCE. OVER THE LAST, I GUESS, AROUND TEN YEARS. THE DISTRIBUTION OF THE CITY CALCULATIONS FOR FISCAL YEAR '23 AND '24, THEY CAN BE FOUND IN THE ANNUAL BUDGET. EXCUSE ME.
ON PAGE 48. THE FISCAL YEAR '23 ESTIMATED DISTRIBUTION AT THE END OF THIS YEAR THAT WILL BE PAYABLE NEXT FISCAL YEAR IS $7.6 MILLION. THAT IS $900,000 GREATER THAN
THE DISTRIBUTION PAID IN 2023. >> JUST FOR ADDITIONAL CLARITY, THAT IS JUST A PROJECTION BASED ON THE REVENUES.
>> CORRECT. >> IT COULD BE LESS.
>> OUR REVENUE PROJECTIONS ARE PRETTY HEALTHY.% AND WE HAVE TO DO ALL THE CALCULATIONS BASED TO MAKE SENSE OF THOSE NUMBERS. ALL THE SUFFICIENCY IS COMING OFF OF THAT AS WELL. THIS SLIDE IS OUR CAPITAL IMPROVEMENT PLAN BY FUNDING SOURCE.
SO KNOWING THE SOURCES OF OUR CAPITAL BUDGET IS CRITICAL TO HAVING THE RIGHT BALANCE OF SPENDING.
IN ORDER TO MAINTAIN COMPLIANCE WITH OUR CASH RESERVES.
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APPROXIMATELY 13% OF THE FISCAL YEAR '24 CAPITAL BUDGET OF THIS $91.1 MILLION IS PROJECTED TO BE FUNDED THROUGH RATES.THE FINANCIAL FEASIBILITY STUDY THAT WAS PERFORMED PROJECTS REVENUES NECESSARY TO SUSTAIN THE ANTICIPATED GROWTH, INCLUDING O&M EXPENSES, DEBT SERVICE AND CAPITAL.
THE RATE FUNDED PROJECTS WERE PRESENTED IN THE FISCAL YEAR '24 CAPITAL BUDGET. TOTALING $12.2 MILLION.
FOR ALL SYSTEMS. THE CAPITAL THAT CAN BE FUNDED BY RATES WAS CALCULATED BY SYSTEM AND WILL BE LIMITED TO THE 9.6. WE HAVE BASED ON SUFFICIENCY, OVERALL, WE ARE AN UNFUNDED AND OF OUR DESIRED $91 MILLION, THE RATE FUNDED IS-- WILL BE UNFUNDED BY-- IS UNDERFUNDED BY THE 2.6. OF THAT RATE, OF THE 12.2, THEY WON'T BE ABLE TO SPEND THE WHOLE 12.
THEY WILL HAVE TO CHOOSE WHICH PROJECTS ARE WORKED ON.
THE APPROVAL OF THIS BUDGET WILL AUTHORIZE STAFF TO PERFORM BUDGET TRANSFERS WITHIN THE LIMITS OF THE PROJECTS LISTED IN THE CIP. ANY SITUATIONS THAT FALL OUTSIDE OF THE APPROVED LIST WILL BE BROUGHT TO BOARD FOR APPROVAL.
THE PROCEEDS FROM THE 2022 DEBT ISSUANCE WILL FUND $79 MILLION OF OUR CAPITAL OVER THE NEXT TWO YEARS.
WITH ADDITIONAL FUNDING AS NEEDED FOR COMPLETION OF THE CONVEYANCE SYSTEMS FOR THE MAINLAND WATER RECLAMATION FACILITY. WE ARE CURRENTLY PURSUING GRANT FUNDS AND EVALUATING OTHER FUNDING OPPORTUNITIES TO OFF-SET THE COMPLETION OF THE CONVEYANCE AND ALL INFRASTRUCTURE-RELATED TO THE MAINLAND WATER RECLAMATION FACILITY.
SPENDING OF CONTRIBUTION AND AID AND CAPITAL IMPROVEMENT CHARGES WILL BE LIMITED TO FUNDS AVAILABLE FROM DEVELOPERS OR TO THOSE CIC'S THAT HAVE BEEN ACCRUED ALREADY.
GRANT FUNDING FOR THE SEWER MAIN LINING WILL CONTINUE THROUGH 2026. WITH FUNDING FROM GRANTS OBTAINED FROM THE FDEP. IT IS EXPECTED, AS IN PRIOR YEARS, ONLY A PORTION OF THE TOTAL CAPITAL WILL BE SPENT.
TRACKING MAINTAINING THAT BUDGET VERSUS ACTUAL SPENDING ON PROJECT AND SOURCE WILL BE ESSENTIAL TO THE QUARTERLY REPORTS THAT WILL BE BROUGHT TO THE BOARD FOR INFORMATIONAL ITEMS. THIS IS THE CIP PLAN BY SYSTEM.
THE LION'S SHARE OF THE FIVE-YEAR-- THIS IS A FIFE FIVE-YEAR PIE CHART HERE. THE LION'S SHARE OF THE FIVE-YEAR CIP, ABOUT 65% WILL GO TOWARDS PROJECTS FOR THE WASTEWATER SYSTEM. THE RELOCATION OF THE ISLAND WATER RECLAMATION FACILITY. LONG-TERM BENEFITS FOR FPUA AND THE CITY OF FORT PIERCE. ADDITIONALLY, THE INFILL AND EXPANSION OF WASTEWATER SERVICES WILL ENHANCE REVENUE TO COVER THAT DEBT SERVICE. WATER SYSTEMS CIP PLANS REQUIRE THE SECOND LARGEST PORTION OF THE FIVE-YEAR PLAN WITH 14% OR ABOUT $29 MILLION. WATER IS IN THE BLUE HERE.
PROJECTS INCLUDING AMI, CUSTOMER-BASED EXPANSION PROJECTS, AND ROUTINE RENEWALS AND REPLACEMENTS KEEP OUR INFRASTRUCTURE AND PLANT OPERATIONS SOUND.
THE ELECTRIC SYSTEM CAPITAL IMPROVEMENTS INCLUDE RELIABILITY PROJECTS FOR OUR SUB-STATION, STORM-HARDENING, TRANSMISSION AND DISTRIBUTION POLE REPLACEMENT, IN ADDITION TO THE COMPLETION OF THE AMI PROJECT. EXPANSION PROJECTS FOR ELECTRIC SYSTEM ARE LIMITED TO INFILL. WE CURRENTLY HAVE SOME DEVELOPER GROWTH PROVIDING THE OPPORTUNITY TO EXPAND OUR CUSTOMER BASE.
NATURAL GAS SYSTEM IN YELLOW. IS ABOUT $9 MILLION.
THAT MAY SEEM LIKE A SMALLER PORTION OF THE BIG PICTURE.
THE PROJECTS INCLUDED WILL PROVIDE FOR EXPANSION THAT COULD OVER TIME DOUBLE THE CURRENT CUSTOMER BASE.
WITH NO TERRITORIAL BOUNDARIES, THE GAS SYSTEM EXPANSION PROJECTS WILL BE A HUGE BOOST TO THE CUSTOMER GROWTH AND REVENUES. THIS BUDGET PROCESS IS COMPLEX, CHALLENGING, AND TAKES A TEAM. I WOULD LIKE TO RECOGNIZE THE EFFORTS AND EXPERTISE OF THE ENTIRE FINANCE DEPARTMENT, THE DIRECTOR OF UTILITIES, ALL OF THE DIRECTORS AND DEPARTMENT HEADS AND SUPPORT STAFF FOR THEIR MANY HOURS OF DEDICATED WORK TO COMPLETE THIS BUDGET. IN CONCLUSION OF THIS PRESENTATION, STAFF IS REQUESTING THE ADOPTION OF RESOLUTION NUMBER UA-2023-07 AND THE AUTHORIZATION FOR STAFF TO PERFORM BUDGET TRANSFERS WITHIN THE LIMITS OF ALL APPROVED AMOUNTS AND FURTHER FOR STAFF TO INITIATE THE 5% COST OF LIVING
[00:30:05]
ADJUSTMENT AS APPROVED TODAY. DO YOU HAVE ANY QUESTIONS?OR COMMENTS? >> WHERE DO YOU FIND THE APPROVALS FOR EACH DEPARTMENT THAT THEY ARE ALLOWED TO MAKE INTERNAL TRANSFERS?VED AUTHORIZATION-- A LIST OF AUTHORIZATION DEPARTMENT HEADS. YOU KNOW, THE DIRECTORS, JAVY HAS THE HIGHEST LEVEL. THE DIRECTORS ARE UNDER HIM BY HALF. HE CAN APPROVE UP TO 50%.
DIRECTORS HAVE A $25,000 AUTHORIZATION.
DEPARTMENT HEADS I BELIEVE ARE NOW SET AT 5.
THERE ARE OTHER ANCILLARY PEOPLE WHO HAVE THE ABILITY TO MAKE-- PUT ORDERS IN FOR THEIR DEPARTMENTS.
THEY HAVE, YOU KNOW, APPROVAL AUTHORITY TO CERTAIN LIMITS UNDER THAT. BUT WE HAVE A LIST.
>> HAS THAT ALWAYS BEEN THE HISTORICAL LEVEL?
$50,000 FOR THE DIRECTOR? >> I THINK IT WAS-- NO.
THE HALF WAS-- I RECENTLY DID THIS YEAR AT SOME POINT.
>> IT WAS $10,000 BEFORE THAT. >> THEY HAVE BEEN INCREASED?
>> BECAUSE OTHERWISE, YOU KNOW, IT IS AN OPERATIONAL THING THAT COMES ACROSS MY DESK THAT REALLY NEEDS TO BE AT THE NEXT LEVEL DOWN. BUT TO ANSWER YOUR-- I THINK YOUR QUESTION IS HOW DO WE TRACK THAT? IT IS DOCUMENTED VERY WELL. EVERY TRANSACTION WE DO
INTERNALLY. >> IT IS LOOKED AT AND SCRUTINIZED WHEN WE GET TO THE ACCOUNTS PAYABLE LEVEL AND THROUGH THE WHOLE PURCHASING SYSTEM.
THAT IS PART OF THE APPROVAL PROCESS AS WE ARE GOING THROUGH TO MAKE SURE THE PEOPLE WHO ARE SIGNING OFF AND PASSING THOSE REQUISITIONS ON HAVE THE AUTHORITY TO DO THAT.
>> YEAH. NOW MY QUESTION WAS SOMEWHAT JUDGEBLED JUMBLED THERE. SHE ANSWERED IT.
>> OKAY. >> I WANT TO MAKE SURE THERE WAS NOT A SEPARATE RESOLUTION THAT WE HAVE TO PASS EVERY YEAR GIVING YOU THE $50,000. $25,000 TO DIRECTORS.
VICE VERSA. BECAUSE THAT IS JUST-- THAT DOESN'T MAKE SENSE TO ME. IT SHOULD BE DONE ONCE.
BUT YOU ANSWERED MY QUESTION WITH THE LEVELS AND THE SPENDING LATITUDE. OR THE TRANSFER LATITUDE.
>> I THINK IT IS IMPORTANT, TOO, TO TOUCH BASE ON THAT BUDGET TRANSFER BECAUSE IF I REMEMBER CORRECTLY, THE REASON WHY WE IMPLEMENTED THAT LAST YEAR WAS BECAUSE WE DO HAVE TO RUN OUR BUDGET PRETTY MUCH DEAD ON, AND THAT AT LEAST GIVES THEM SOME FLEXIBILITY IF THERE IS A PROJECT THAT DOESN'T GET COMPLETED TO DO ANOTHER PROJECT INSTEAD OR WHATEVER.
IT IS ACTUALLY IN THEIR BUDGET. IT IS JUST IN A DIFFERENT LINE ITEM INSTEAD OF TASKED TO A SPECIFIC EVENT.
>> WE TRACK THAT. >> THEY REMOVE ONE MONEY FROM ONE PROJECT AND PUT IT TO ANOTHER, THEN THEY CAN'T GO ANY
FURTHER WITH THE FIRST PROJECT. >> I KNOW I DIDN'T GO THIS YEAR.
BUT LAST YEAR, THEY HAD ALL OF THOSE PROJECTS PRETTY MUCH DOG-EARED WITH WHAT THEY WERE EXPECTING TO GET COMPLETED.
AS WELL AS SOME THAT WERE-- WELL, WE HAVE THESE, WE WOULD LIKE TO GET THESE DONE. IF THIS DOESN'T HAPPEN, THEN THESE WILL BE. THERE IS ALREADY SOME THOUGHT PROCESS OF WHAT, YOU KNOW, IS GOING TO BE THE BACK-UP AND
WHATEVER. >> THAT SHOULD BE CONTAINED IN THIS C BOOK. CIP BOOK.
EVERYTHING THAT THEY ARE LOOKING AT.
WE ARE GOING TO DO THESE PROJECTS.
IT COULD BE THIS AND THIS. IT COULD BE A MULTITUDE OF THINGS. THEY DON'T KNOW WHAT'S GOING TO BE MANDATED OR HELD UP OR, YOU KNOW --
>> EACH PROJECT HAS A FUNDING SOURCE.
WHETHER IT IS RATES, CAPITAL CHARGES, CONTRIBUTION AND AID, AND THEY MAKE THEIR BEST GUESS ON WHAT PORTION OF THAT WILL CONTRIBUTE TO THE PROJECT. THE PROJECT FUNDING OR COST.
THE ONE THING I WILL MENTION BECAUSE I THINK IT IS REALLY IMPORTANT FOR THE BOARD TO KNOW THIS.
THAT OUR PROJECTS, EVEN THOUGH WE MAY HAVE THEM LISTED, THEY SHIFT PRETTY QUICKLY. ESPECIALLY WITH THE CITY PROJECT OR COUNTY PROJECT OR DT PROJECT THAT HAD THE HALF-SENT SALES TAX. THAT IS A CONTRIBUTING FACTOR TO WHERE SOME OF THE FUNDING GOES. WHEN THEY GET THE FUNDING FOR THE SALES TAX, THEY GET TO DO ANOTHER ROADWAY.
THAT IMPACTS OUR PROJECTS AND OUR SCHEDULE, TOO.
IT IS A GOOD THING. A GOOD PROBLEM TO HAVE.
IIT IMPACTS HOW WE OPERATE INTERNALLY.
>> RIGHT. WE HAVE HAD TO MAKE OURSELVES MORE FLEXIBLE F. YEAH.
>> RIGHT. >> I HAVE A COUPLE OF QUESTIONS.
>> SURE. >> SO A COUPLE OF PLACES YOU TALKED ABOUT THE RATE SAWF SI STUDY.
AND THE NUMBERS BEING DIFFERENT. I JUST WANT THAT-- I DIDN'T QUITE FOLLOW YOU THAT THE RATE SUFFICIENCY STUDY SHOWED THAT WE WERE GOING TO BE SHORT SOME MONEY, THE PROJECTS THAT WE PLANNED. IS THAT RIGHT?
>> WHAT WE DID IS WE-- EVERY YEAR, WE DO A SUFFICIENCY STUDY EVERY YEAR. WHAT WE DO IS I PROVIDE TO OUR RATE CONSULTANT, ALL OF OUR-- WHAT OUR PLAN IS.
[00:35:03]
AND WE GIVE THAT TO HIM. HE WORKS THROUGH WHAT THAT LOOKS LIKE. THESE ARE YOUR REVENUES.THIS IS WHAT YOU WANT TO SPEND. THIS IS WHAT YOU HAVE AVAILABLE TO SPEND BY SYSTEM. HE DOES IT.
TO MAKE EACH SYSTEM SUFFICIENT. WE DIDN'T HAVE THAT STUDY COMPLETED BY THE TIME WE DID THE WORKSHOP.
WE USED NUMBERS FROM THE PREVIOUS YEAR.
FROM WHEN WE WERE DOING OUR BOND ISSUANCE.
LAST YEAR, WE HAD VERY IN-DEPTH RATE STUDY DONE.
WE USED THOSE NUMBERS. AND THEN BASED ON THE NEW NUMBERS, IT CAME OUT TO BE A LITTLE BIT BRIGHTER PICTURE.
>> BRIGHTER PICTURE. >> BRIGHTER.
>> I WAS HAVING TROUBLE FOLLOWING YOU THERE.
>> NO. IT ALLOWED FOR MORE OF THE RATE MONEY TO BE AVAILABLE FOR THAT CAPITAL.
>> YOU ARE NOT TALKING ABOUT IN THIS BUDGET, ANY RATE INCREASES.
>> SO -- >> WE HAVE INCLUDED THE INDEX.
>> A COUPLE OF THINGS. I WANT TO GO BACK TO-- THERE IS A COUPLE OF THINGS HERE. THE RATE SUFFICIENCY STUDY LOOKS AT A YEAR AND THEN A FIVE-YEAR WINDOW.
THE SHORTFALL THAT BARBARA-- I THINK YOU WERE TALKING ABOUT WITH BARBARA. THE $2.5 MILLION SHORTFALL, THAT IS BASED ON THE PROOJTS THAT WE PRIORITIZE TO GET DONE WITHIN THE NEXT YEAR OR FIVE YEARS. WE WILL BE ABLE TO PRIORITIZE THOSE BASED ON THE AVAILABLE RATE FUNDED.
THE RATE SUFFICIENCY STUDY DO DOES-- THAT WE DID LAST YEAR AS PART OF THE BOND ISSUANCE DID ADDRESS THE INDEX THAT WE TYPICALLY DO EVERY YEAR. THE PUBLIC SERVICE COMMISSION ADOPTED INDEX. THEY ADOPT THE INDEX.
WE IMPLEMENT THAT. THIS DOES INCLUDE THE POTENTIAL INDEX ADJUSTMENT TO ACCOUNT FOR THAT.
>> WHEN DOES THAT HAPPEN? >> THAT WOULD BE IN OCTOBER.
WE DO THAT EVERY YEAR. THAT IS-- THIS YEAR, THE PLAN IS-- WHICH WE WILL TALK ABOUT THE PRIOR COST ADJUSTMENT.
WE WILL LINE THIS UP WITH THE INDEX ADJUSTMENT.
IT WILL BE PRETTY CLOSE TO NET ZERO FOR THE CUSTOMER.
WE HAVE A PLAN TO MAKE SURE THAT IT DOESN'T IMPACT.
THAT JUST HAPPENS TO WORK OUT THIS YEAR BECAUSE IT LINES UP AS WE ARE DECREASING THE PRIOR COST ADJUSTMENT AND THE INDEXES.
>> THOSE INDEXES ARE USUALLY-- I MEAN, THEY ARE USUALLY
PERCENTAGES. >> THEY ARE USUALLY IN THE 2% TO #%. SOMETIMES IN THE 1.5%.
THIS YEAR IT IS HIGHER. >> BECAUSE OF INFLATION.
>> BECAUSE OF INFLATION. EVERYTHING IS TRYING TO CATCH UP TO RECOVER FROM THE PAST COUPLE OF YEARS.
OF INFLATION BEING LOW, YES. >> OKAY.
SO SETTING THAT ASIDE, THE RATES SUFFICIENCY STUDY, WHAT WE ARE PLANNING IS THE PROJECTS THAT WE ARE PLANNING, WE HAVE ENOUGH MONEY FOR THEM, FROM WHAT I HEARD YOU SAY, EVERYTHING EXCEPT THE CONVEYANCE SYSTEM. IS THAT RIGHT?
>> THE $2.5 MILLION SHORTFALL, SOME OTHER PROJECTS WE WILL
PRIORITIZE. >> THOSE ARE RATE-FUNDED.
>> RIGHT. >> AND I THINK AS FAR AS THE CONVEYANCE. SOME OF THAT, YOU KNOW, THEY ARE
WORKING IT IN CONCERT -- >> WORK IT OVER TIME.
IF I REMEMBER WHAT WE TALKED ABOUT.
>> ANY FUNDING THAT IS GOING TO BE COMING FORTH, THEORETICALLY TO COVER THE CONVEYANCE, IT IS KIND OF BEING DONE FOR THE WHOLE PROJECT AS A WHOLE. THE CONVEYANCE AND THE MAINLAND RECLAMATION FACILITY. THE WHOLE PLANT MOVE.
F THE NEW PLANT. THERE IS GOING TO BE ADDITIONAL FUNDING NEEDED, WHETHER IT COMES FROM GRANTS OR LOANS OR HOWEVER.
>> RIGHT. WE TALKED ABOUT THE REVOLVING LOAN. RIGHT.
>> THE REVOLVING LOAN. >> AND THOSE FUNDS WILL COVER THAT PROJECT IN TOTAL OR IN GENERAL.
YOU KNOW, ANYTHING THAT THEY ARE PUTTING OUT NOW AND WORKING ON THE CONVEYANCE, WE ARE CONSIDERING THAT PART OF THE
>> OKAY. >> YOU KNOW WHERE I'M GOING WITH THIS. WHEN YOU PRESENT TO THE COMMISSION, THEIR EARS ARE GOING TO BE ATTUNED TO RATE INCREASE.
RIGHT? THEY ARE GOING TO BE ATTUNED TO, ARE YOU GOING TO NEED MORE MONEY HERE OR THERE? WHEN ARE YOU GOING TO NEED MORE MONEY? WHAT ARE WE DOING? THAT IS WHY I'M TRYING TO MAKE SURE I UNDERSTAND IT. BEFORE WE-- I THINK WE ARE AUGUST 7. NEXT MONDAY NIGHT?
>> AND THERE IS ANOTHER WORD THAT YOU CAN USE FOR HEDGING.
I WOULD LIKE TO ASK VERY MUCH THAT WE USE THE OTHER WORD FOR HEDGING. HEDGING HAS THE A REALLY BAD CONNOTATION IN SOME PEOPLE'S MINDS.
I THINK IT IS LIKE ADVANCED PURCHASE OR SOMETHING LIKE THAT.
OR LOCKED IN RATES. >> LOCKING IN GAS PRICES.
YES, MA'AM. >> BECAUSE EVEN KNOW IT IS A VERY ACCEPTABLE TERM AND EVERYBODY DOES IT, AND I KNOW IT
[00:40:02]
IS ACCEPTABLE IN THE FINANCE WORLD, IT MAKES PEOPLE THINK THAT THERE IS SOMETHING-- SOMEBODY IS PULLING A FAST ONE.SOMEBODY IS DOING A TRICK. OR SOMEBODY --
>> IT IS A STRATEGY THAT WE NEED TO USE.
I MEAN, IT IS A STRATEGY THAT WE NEED TO USE.
I HAVE NO PROBLEM WITH IT. IT IS JUST --
>> WE CAN CALL IT SOMETHING NICER.
>> YES. CALL IT LOCKED-IN RATES.
BECAUSE OF THE LOCKED-IN RATES. WHATEVER IT IS.
I THINK THAT WOULD BE WETTER. FOR US.
BETTER FOR US. >> I THINK THAT IS A GREAT IDEA.
BECAUSE THE WHOLE PURPOSE OF HEDGING IS TO PROTECT OUR
>> WE ARE JUST TRYING TO PROTECT OUR CUSTOMERS FROM WILD PRICE
>> AND WE ARE TRYING TO HAVE A PLAN WHICH IS WHAT THAT WHOLE ROOM FULL OF PEOPLE SAID. WHY DON'T YOU HAVE A PLAN? THAT IS PLAN. THIS WAS A PLAN TO PROTECT THEM.
>> AND TO PROTECT US AND OUR RATE-PAYERS.
>> DO YOU HAVE ANYTHING ELSE YOU WOULD LIKE TO SHARE? ON THAT NOTE, THERE WAS PART OF THAT ALSO WHERE YOU WERE TALKING ABOUT THE COST OF RETIREMENT. GOING UP.
I WAS HOPING MAYBE YOU COULD GO INTO THAT A LITTLE BIT.
I WASN'T SURE IF I MISSED A PART OR --
>> NO. IT IS INCLUDED IN THE OVERALL PICTURE OF THESE PERSONNEL COSTS.
AND THE EMPLOYEE BENEFITS. AND ONE OF THE REASONS FOR THE INCREASE OVER LAST YEAR IS THAT, YOU KNOW, WHEN WE HAVE CONTRIBUTIONS TO THE RETIREMENT PLAN, WE HAVE PEOPLE THAT ARE IN THE DROP PROGRAM. WHEN YOU ENTER THE DROP, YOU NO LONGER CONTRIBUTE TO THE PLAN. YOU ARE IN THE PLAN.
YOU ARE STILL WORKING. AND CLOSING OUT YOUR LAST FIVE YEARS OF EMPLOYMENT. HOWEVER THEY ARE WORKING THAT.
FOR THEMSELVES. THEY ARE NOT CONTRIBUTING.
THAT IS LESS MONEY GOING IN. THEK A CHAIR THEY HAVE ALL THEIR FORMULAS AND MORTALITY TABLES. THEY COME UP WITH, THIS IS WHAT YOU WILL NEED TO FUND THIS PROJECT.
BASED UPON THE AGES OF EVERYBODY IN THE PLAN.
IT IS THE CITY AND THE POLICE AND THE UTILITY AUTHORITY.
THEY SAID, WELL, YOU KNOW, BASED ON THE RETURN WE HAVE GOTTEN, BASED ON EVERYTHING THAT THEY HAVE PUT INTO IT, THAT WE NEEDED TO INCREASE THE EMPLOYER-- IT WENT UP FOR THE CITY AS WELL.
EVERYBODY IS GOING TO BE CONTRIBUTING MORE PER EMPLOYEE.
>> WHAT IS OUR RATE AT NOW? >> 17.76.
I BELIEVE. >> MADAM CHAIR, IN MY OPINION, IT IS AS MUCH A PRODUCT OF THE STOCK MARKET.
>> RIGHT. >> BECAUSE THAT IS THIS FUND-- IN GOOD STOCK MARKET YEARS, THE PERCENTAGE THE EMPLOYER PAYS GOES DOWN. IN ROUGH YEARS, LIKE IT HAS B
BEEN -- >> WE HAVE HAD IT REDUCED ON US.
WE HAVE GONE FROM 18% TO 17% TO 16.
THEN IT CREEPS BACK UP. YOU KNOW, NEXT YEAR IS GOING TO BE THE 20%. PLUS.
>> WOW. >> SEE, THIS IS A DEFINED BENEFIT. NOT A DEFINED CONTRIBUTION.
WHEN YOU HAVE A DEFINED BENEFIT. RETIREMENT PLAN.
EMPLOYER IS ALWAYS ON THE HOOK FOR MAKING UP THE DIFFERENCE FOR WHATEVER HAPPENS IN TERMS OF THE SHORTFALL BECAUSE THEY ALWAYS HAVE TO HAVE THE PLAN FUNDED FOR THE FUTURE.
>> RIGHT. >> AND SO THE ACTUARY DOES THEIR MAGIC. IN GOOD YEARS, THE PERCENTAGE GOES DOWN. IN BAD YEARS, IT GOES UP.
AND WHAT THIS DEFINED BENEFIT PLAN DOES IS FOR ANYBODY WHO IS IN IT AND RETIRES, IT PAYS YOU THE AMOUNT IT SAYS IT IS GOING TO PAY YOU FOR THE REST OF YOUR LIFE.
>> RIGHT. EVEN IF THAT AMOUNT IS ONLY $20,000 A YEAR. WHICH WE WERE DISCUSSING NOT TOO LONG AGO. YUP.
>> THEY ARE ALWAYS ON THE HOOK FOR THAT DEFINED BENEFIT PLAN.
THAT IS A VERY GOOD BENEFIT. >> RIGHT.
>> NOT EVERYBODY HAS THAT. >> EXACTLY.
>> THAT KIND OF DOVE-TAILS, MADAM-CHAIR, THIS DOVE-TAILS NICELY INTO SOMETHING I WANTED TO ASK MR. CISNEROS TO GIVE US A REPORT ON AT SOME POINT IN THE FUTURE.
SO DURING BARBARA'S PRESE PRESENTATION, SHE MENTIONED WE HAVE 39 OPEN POSITIONS. I'M CURIOUS HOW THAT COMPARES TO THE PERCENTAGE OF OPEN POSITIONS WE TYPICALLY HAVE.
THAT DEFINED BENEFIT PLAN IS, IN MY MIND, ALWAYS A REALLY GOOD ATTRACTER TO HIRE AND JUST AS IMPORTANTLY, KEEP HIGHLY-SKILLED EMPLOYEES IN THE WORKFORCE. MY GUESS, AND IT IS KIND OF A
[00:45:04]
GUESS, I DON'T HAVE A SPREADSHEET OR ANY CALCULATIONS, IS THAT AS THE SKILLED WORKFORCE RIGHT NOW INCREASINGLY IS MORE RETIRED, THE UP-AND-COMING WORKFORCE IS NOT AS SHINY OF AN ATTRACTION. THE BENEFIT PLAN IS NOT AS ATTRACTIVE. THAT, COMBINED WITH THE DEFINED GET IT FOR THE REST OF YOUR LIFE.RIGHT NOW PEOPLE IN THE MEDICAL PROFESSION ARE SAYING THERE ARE PEOPLE-- THAT OUR KIDS WILL PROBABLY LIVE TO BE OVER 100 ON AVERAGE. I FEEL LIKE WE ARE RIDING A TIGER WE CAN'T JUMP AWE OF BECAUSE IT WILL TURN AROUND AND EAT US. AT SOME POINT, WE HAVE TO KIND OF FIGURE OUT SOMETHING DIFFERENT.
I HAVE NO CLUE ON HOW TO GET OFF THE TIGER.
AT SOME POINT, MY GUESS IS THAT ONCE WE LOOK AT THE NUMBERS, AND IS THIS A HIGHLY ATTRACTIVE BENEFIT, I WOULD NEVER SUGGEST THAT WE EVER PRESENT SWITCHING GEARS ON PEOPLE THAT HAVE BEEN HERE FOR 25 YEARS. AND ARE DEPENDING ON THAT RETIREMENT PLAN. I DON'T THINK THAT SHOULD BE PART OF THE DISCUSSION WHATSOEVER.
HOWEVER, FOR ATTRACTING NEW TALENT, WHAT ARE THE DIFFERENT
OPTIONS? >> WE CAN DEFINITELY PREPARE SOMETHING FOR YOU FOR A FUTURE PRESENTATION.
TO ANSWER YOUR QUESTION, WE ARE NORMALLY AROUND 265 EMPLOYEES.
THAT IS GENERALLY THE RANGE THAT WE HAVE, AND THEN WE FILL THE GAP WITH CONTRACTUAL SERVICES AND OVERTIME.
TO BE ABLE TO FULFILL OUR SERVICE TO THE COMMUNITY.
SO I DON'T KNOW WHAT THE ACTIVE NUMBER IS RIGHT NOW.
I DON'T KNOW IF YOU OR MICHELLE KNOW THE NUMBER OF THE ACTIVE EMPLOYEES WE HAVE RIGHT NOW. I THINK THE LAST TIME IT WAS UNDER 260. WE STILL HAD SOME VACANCIES THERE. WE NORMALLY OPERATE AROUND THE 265 RANGE. THAT IS USUALLY WHAT WE HAVE ON STAFF. WE ARE BELOW THAT RIGHT NOW.
>> I GUESS MY POINT OF PRINKING THAT UP IS IF WE HAVE A VERY-- I CAN'T THINK OF A BETTER WAY TO PUT IT.
COSTLY BENEFIT THAT IS A GOOD ATTRACTER FOR TALENT AND IT HAS BEEN VERY SUCCESSFUL IN THE PAST, AND SUCCESSFUL RIGHT NOW, BUT IS GOING TO BECOME LESS ANDLESS SUCCESSFUL OVER TIME, WILL WE SILL HAVE THE COSTLY BENEFIT, SEEMS LIKE WE SHOULD
FIGURE OUT SOMETHING ELSE TO DO. >> YES, SIR.
WE CAN PREPARE SOMETHING FOR YOU.
>> THAT WOULD BE A TOPIC FOR THE RETIREMENT BOARD AND ULTIMATELY, THE CITY COMMISSION WOULD HAVE TO MAKE ANY DECISIONS ON ANY
CHANGES TO THAT PLAN. >> I REALIZE IT IS A BIG, BIG
>> WE WILL RUN INTO THE SAME PROBLEM, THOUGH.
>> YES. WE ARE ALL UNDER THE SAME
MADAM CHAIR, SO COMMISSIONER BECK AND I TRIED TO DO SOMETHING ABOUT THAT MAYBE ABOUT EIGHT YEARS AGO.
AND TO TRY TO RECOGNIZE THAT THE DEFINED BENEFIT PLAN WAS SOMETHING THAT WAS KIND OF-- GOING TO BE A DINOSAUR SOON.
BUT THE TIME WAS NOT RIGHT FOR IT.
LET'S PUT IT THERE. >> YOU GUYS MIGHT HAVE BEEN ABOUT 15 YEARS TOO EARLY. YES.
SO IT MIGHT BE SOMETHING TO LOOK AT AGAIN.
BECAUSE IT IS AN EXCELLENT BENEFIT, BUT WE ARE ALSO LOOKING AT A YOUNGER GENERATION THAT IS, ACCORDING TO WHAT EVERYTHING THAT I HAVE HEARD, ANECDOTALLY, THEY HAVE DIFFERENT PRIORITIES
AND IT IS JUST A DIFFERENT -- >> THEY DON'T WANT TO BE ATTACHED. THEY WANT IN THEIR HAND.
>> YES. IT DOESN'T REALLY ATTRACT THEM.
AND IT MAY ATTRACT THEM WHEN THEY GET OLDER LIKE A LOT OF PEOPLE. THEY GET OLDER AND START TO THINK ABOUT RETIREMENT. SO THERE IS PROBABLY A LOT OF THINGS THAT PLAY INTO IT. IT IS GOING TO BE SOMETHING-- IT IS SOMETHING THAT IS UNIQUE AND VERY GENEROUS.
BECAUSE EVERYONE GETS A 3% MULTIPLIER.
THAT IS VERY, VERY GENEROUS. AND SO IT IS A GREAT BENEFIT.
AND LIKE YOU SAY, NOBODY WANTS TO MESS WITH WHOEVER IS GETTING IT ALREADY. RIGHT? I'M GLAD YOU PREFACED IT WITH THAT.
THE STATE-- DID WE TALK ABOUT THE STATE-- THE STATE CHANGED THEIR DROP PERIOD TO EIGHT YEARS?
>> BECAUSE ONE OF THE THINGS THAT-- ONE OF THE REASONS THAT PEOPLE ARE RETIRING-- SOME PEOPLE WANT TO STAY, AND SOME EMPLOYERS WANT THEIR SEASONED PEOPLE TO STAY.
THEY WANT TO WORK OUT. THE RETIREMENT BOARD IS LOOKING AT-- I DON'T KNOW. ARE YOU ON THE BOARD, BARBARA? I'M TRYING TO REMEMBER. IS IT LOOKING AT THE EIGHT-YEAR?
>> IT WAS BROUGHT UP, AND WE WERE SPEAKING WITH OUR ACTUARY
[00:50:04]
AT THE TIME. I DON'T KNOW IF HE HAS COME BACK WITH ANY KIND OF REPORT ON HOW IT WOULD PLAY OUT.I KNOW IF THEY WERE TO CHANGE THE SYSTEM, YOU WOULD HAVE TO ALMOST LIKE START A NEW RETIREMENT SYSTEM FOR ANY NEW EMPLOYEES. AND THAT WOULD BE, LIKE A CITY-WIDE AS WELL AS UTILITY. AND THEN THAT PLAN WOULD NEED TO STAY IN PLACE UNTIL-- THROUGH ATTRITION.
UNTIL EVEN, YOU KNOW, PASSED THROUGH THE SYSTEM.
IT WOULD TAKE A NUMBER OF YEARS. >> YES.
>> TO MAKE ANY KIND OF CHANGE. >> TO MAKE ANY CHANGE AT ALL, THAT'S RIGHT. IT WOULD TAKE A NUMBER OF YEARS.
CAREFULLY, IT CAN BE DONE. CITIES HAVE DONE IT.
ORGANIZATIONS HAVE DONE IT. CHANGE IT FROM A DEFINED BENEFIT TO A DEFINED CONTRIBUTION. IT TAKES A LONG TIME.
>> MOVE TO THE FRS. CHANGES CAN HAPPEN.
>> YUP, YUP. >> IT TAKES A LONG TIME.
>> THAT IS WHY IT IS A GOOD THING TO BRING IT UP AGAIN.
BECAUSE THE PEOPLE THAT WE-- THE 50,000 PEOPLE THAT LIVE IN FORT PIERCE DO NOT HAVE THIS RETIREMENT PLAN.
>> RIGHT. >> THEY DO NOT HAVE IT.
AND SO IT IS A GOOD THING TO LOOK AT.
ALSO IN THE EIGHT YEARS, BACK ON THE EIGHT YEARS, ANOTHER REASON THEY WANTED TO CHANGE IT IS THAT BECAUSE THE STATE CHANGED IT AND BECAUSE DMP OUR POLICE DEPARTMENT WANTED TO BE COMPETITIVE. AND SO THEY WANTED THE EIGHT-YEAR DROP. THAT WAS MORE ATTRACTIVE TO OUR POLICE. AND ALSO WE HAVE AN AGING WORKFORCE IN THE CITY. AND THE POLICE DEPARTMENT.
I DON'T KNOW IF YOU DO IN THE-- I'M NOT GOING TO SAY ANYTHING ABOUT THE UA. AND SO SOMETIMES YOU WANT MORE
SEASONED PEOPLE TO STAY AROUND. >> RIGHT.
AND TO BE CLEAR, MY FIRST POINT WAS ARE WE HAVING TROUBLE
>> MY ASSUMPTION IS THAT, ACCORDING TO THE 39 POSITIONS UNFILLED, WE ARE HAVING TROUBLE ATTRACTING TALENT.
THAT NEEDS TO BE CHALLENGED. WE NEED TO LOOK AT THE NUMBERS AND SEE IF THAT IS ACTUALLY TRUE.
AND THEN ASSUMING THAT IS TRUE, THEN WE REALLY TAKE A HARD LOOK AT OKAY, WE HAVE A TOTAL PAC PACKAGE.
WHAT CAN WE CHANGE ABOUT IT TO MAKE IT MORE ATTRACTIVE?
TO ATTRACT TALENT? >> I WILL SAY THAT I DO BELIEVE THAT WE HAVE A STRONG CORE OF EMPLOYEES.
WE HAVE, YOU KNOW, EMPLOYEES THAT HAVE BEEN HERE, YOU KNOW, FIVE, PLUS YEARS. TEN-PLUS YEARS.
I THINK THE-- YOU KNOW, AS WE TRANSITION INTO THE FUTURE WITH THE NEXT GENERATION OF EMPLOYEES, I THINK THERE IS AN OPPORTUNITY FOR US TO LOOK AT HOW WE BRING THEM IN AND YOU KNOW, HOW WE GET THEM TO STAY. RIGHT? BECAUSE THE IDEA IS TO MAKE SURE THOSE EMPLOY EASY FUND THAT RETIREMENT PROGRAM. I COMPLETELY UNDERSTAND WHAT YOU ARE SAYING. THEY MAY NOT STAY AND MAY NOT BE ABLE TO FUND THAT PROGRAM AS WE MOVE INTO THE NEXT CENTURY.
>> I'M SURE THERE IS A TON OF DATA OUT THERE.
>> ALSO THOSE 39 POSITIONS THAT ARE VACANT, WHAT ARE WE DOING TO
FILL THOSE? >> IT IS A VERY COMPETITIVE MARKET RIGHT NOW. FOR SURE.
I KNOW THE CITY OF FORT PIERCE, I REMEMBER HAVING A DISCUSSION WITH THEM. EVERYBODY IS HAVING --
>> NEVER SINCE I HAVE BEEN MAYOR HAVE WE HAD SUCH A TOUGH TIME HIRING EMPLOYEES. WE CAN'T GET THEM TO SHOW UP FOR
ACTUALLY, YEAH. I HAVE HAD A COUPLE OF NO-SHOWS.
CAROLINE HAD A NO-SHOW THIS WEEK, I THINK.
>> IT IS A VERY ODD MARKET. >> VERY ODD, YUP.
I DON'T KNOW WHAT'S DRIVING IT. >> ALL RIGHT SO.
WE NEED TO HAVE A MOTION. DO YOU NEED TO READ THE
RESOLUTION FIRGS? >> NUMBER UA-2023-07.
A RESOLUTION ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023, AND ENDING SEPTEMBER 30, 2024 AND AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 12022 AND ENDING SEPTEMBER 30, 2023. THE FORT PIERCE UTILITIES AUTHORITY OF THE CITY OF FORT PIERCE, FLORIDA.
>> I MOVE APPROVAL. >> SECOND.
>> PLEASE CALL THE ROLL. >> MRS. BENNETT?
>> YES, MA'AM. >> MR. LAMMERS?
>> YES, MA'AM. >> MAYOR HUDSON?
>> YES, MA'AM. >> MRS. GIBBONS?
[J. DIRECTOR]
MOVING ON TO THE DIRECTOR'S NOTES.[00:55:01]
>> YES, MA'AM. MADAM CHAIR, OUR STRATEGIC PLANNING WORKSHOP IS SCHEDULED FOR OCTOBER 16.
IT WILL BE AT THE RIVER STATE COLLEGE.
IT SHOULD BE ON THE CALENDARS. THIS WILL BE AT THE MAIN PUBLIC SAFETY TRAINING COMPLEX BUILDING IN THE BAILEY AUDITORIUM ON KIRBY LOOP. BECAUSE OF THE TIMING OF THE PLANNING SESSION, WE ARE RECOMMENDING TO CANCEL THE AUGUST 15 BOARD MEETING. IT WOULD BE BACK-TO-BACK DAYS FOR THE BOARD. I KNOW THAT WOULD BE TOUGH.
PER OUR CHARTER, THE BOARD IS ONLY REQUIRED TO MEET ONCE PER MONTH. THIS MEETING FULFILLS THAT MEETING REQUIREMENT. IF THERE ARE NO OBJECTIONS, WE WILL CANCEL THAT MEETING. AND SCHEDULE-- WE WILL HAVE THE AUGUST 16 MEETING, STRATEGIC PLANNING SESSION.
AS PART OF THAT, THAT ALSO MEANS THAT WE WOULD NOT BRING A POWER COST ADJUSTMENT TO THE BOARD FOR SEPTEMBER.
WE WOULD BRING ONE IN SEPTEMBER FOR IMPLEMENTATION IN OCTOBER.
AND AGAIN, WE ARE TRYING TO LINE THAT UP WITH THE POTENTIAL IN INDEX, THE PUBLIC SERVICE COMMISSION ADOPTED INDEX TO OFF-SET THOSE COSTS. SO IF NO OBJECTONS, WE WILL
CANCEL THE 15TH. >> I'M OKAY WITH.
>> THIS IS OCTOBER? >> AUGUST.
>> AUGUST. >> I WAS GOING TO CORRECT THAT.
>> I WAS GOING TO SAY, I HAVE AUGUST 16.
>> CANCELING. THE NEXT BOARD MEETING, TUESDAY, AUGUST 15. CANCEL THAT.
BECAUSE THE DAY AFTER, THE 16TH, WE HAVE THE STRATEGIC
PLANNING SESSION. >> THERE IS ANOTHER MEETING,
PLANNING SESSION ON OCTOBER? >> NO, SIR.
WE WOULD BRING IN SEPTEMBER, A POWER COST ADJUSTMENT AND A PUBLIC SERVICE COMMISSION INDEX FOR APPROVAL TO THE BOARD FOR IMPLEMENTATION DATE IN OCTOBER. JUST TRYING TO LINE THOSE UP.
FOR THE BOARD. OKAY? 330 TO 4:30. A QUICK UPDATE ON EMERGENCY PURCHASES. WE HAVE PURCHASED THE FOLLOWING ITEMS UNDER THE EMERGENCY PURCHASE POLICY THAT WAS APPROVED BY THE BOARD EARLIER THIS YEAR IN MARCH.
WE BOUGHT SOME ELECTRIC CABLE IN THE AMOUNT OF $26,970 ON JULY 5.
AND SOME POLE-MOUNTED TRANSFORMERS FOR $32,888 ON JULY 11. I THINK PART OF THE REASON WE WERE ABLE TO MOVE ON THESE IS BECAUSE WE WERE ABLE TO GET THEM QUICKER. WE TRIED TO MOVE ON THAT.
AND AGAIN, THOSE ARE UNDER MY SIGNATURE AUTHORITY.
F I BELIEVE THE TOTAL PURCHASE AMOUNT IS ABOVE MY SIGNATURE AUTHORITY. THIS TRANSACTION ALLOWS US TO GET SOME MATERIALS IN AS QUICKLY AS POSSIBLE.
AS OF TODAY, NATURAL GAS IS AROUND $2.54 PER, AS A REFRESHER, WE HAVE LOCKED IN RATES OF GAS FOR POWER GENERATION UNTIL MARCH OF 2024. THE CURRENT THRESHHOLD THAT IS APPROVED BY THE FMPA EXECUTIVE COMMITTEE FOR ADDITIONAL PURCHASES IS $3.50. THE FUTURES ARE STILL HOLDING AROUND THE $4.03 RANGE FOR THE 25 PERIOD THAT WE WOULD GO FOR ADDITIONAL PURCHASES. NO ADDITIONAL LOCKED IN RATES HAVE BEEN EXECUTED. FMPA STAFF IS PREPARING A PLAN FOR THE FMPA EXECUTIVE COMMITTEE THAT WILL BE DISCUSSED IN SEPTEMBER OR OCTOBER FOR POTENTIAL ACTION ITEMS FOR 2025 AND 2026. THEY ARE WORKING ON A PLAN THAT I'LL BE ABLE TO KEEP YOU UP TO SPEED WITH.
I BELIEVE, MADAM CHAIR, YOU WOULD LIKE TO ATTEND ONE OF THOAFS MEETINGS. I BEEN SURE TO PUT THAT ON THE CALENDAR. SEPTEMBER FOR AN ACTION ITEM.
AND OCTOBER. I HAVE NO OTHER UPDATES FOR THE
[K. ATTORNEY]
MOVING ON TO THE ATTORNEY'S NOTES.>> THANK YOU, MADAM CHAIR. BOARD MEMBERS, I JUST PREPARED FOR YOU A LITTLE PACKAGE OF LEGISLATIVE MATERIALS.
I'M GOING TO HIT ON A FEW POINTS.
IT WAS NICE SPENDING TIME WITH A LOT OF YOU ALL AT THIS CONFERENCE. I THOUGHT THE SESSIONS WERE REALLY INFORMATIVE. THAT IS THE FIRST TIME I HAVE ACTUALLY BEEN TO THE CONFERENCE. AND I NOTICED THAT A LOT OF THE PRESENTATIONS COVERED LEGISLATIVE ITEMS THAT ARE HOT TOPICS RIGHT NOW. YOU HEARD THOSE ITEMS REPEATED THROUGHOUT SOME OF THE SESSIONS. WHAT I HAVE TRIED TO DO IS PREPARE YOU ALL A ONE-PAGE SHEET OF SOME OF THE POPULAR LEGISLATIVE ITEMS THAT WERE CONSISTENTLY DISCUSSED AND THEN SOME BACK-UP MATERIALS IN CASE YOU ARE CURIOUS TO LEARN MORE ABOUT THE TOPICS. I'LL JUST GO OVER TWO REAL QUICKLY. THE ONES THAT I FELT THAT THE
[01:00:04]
PRESENTERS REALLY STRESSED AND WANTED US TO BE AWARE OF AND MAYBE EVEN TAKE SOME ACTION UNDER THEM.UNDER THE FEDERAL HEADING, THERE IS AN ITEM CALLED EPA PROPOSED RULES. IN YOUR PACKET, ON THE NEXT PAGE, YOU WILL SEE, LIKE, A COLORFUL ONE-PAGE FACT SHEET.
I CREATED THAT TO BASICALLY SUMMARIZE THE EPA PROPOSED RULES. WHAT THEY ARE AND WHAT THE EFFECTS WOULD BE ON FLORIDA. F AND THIS INFORMATION CAME FROM THE FMPA. THEY HAVE HIGHLIGHTED THIS TOPIC IN SEVERAL OF THE MEETINGS THAT WE HAVE BEEN IN.
THEIR PRESENTATIONS ARE VERY GOOD ON THIS.
THEY ARE VERY ACTIVE IN COMMENTING ON THESE PROPOSED RULES. F BASICALLY, WHAT THEY ARE ARE THE ENVIRONMENTAL PROTECTION AGENCY HAS PROPOSED SOME RULES UNDER THE CLEAN AIR ACT UNDER SECTION 111.
THEY ARE VERY LONG, BUT THEY CAN BE SUMMARIZED AS THEY ARE BASICALLY, A MISSION GUIDELINE FOR STATES TO FOLLOW.
TO LIMIT CARBON EMISSIONS FROM EXISTING FOSSIL FUEL-FIRED POWER PLANTS. AND THE FMPA HAS STRESSED THESE RULES. BECAUSE THROUGH THEIR ANALYSIS, THEY BELIEVE IT WOULD RESULT IN A COMPLETE TRANSFORMATION OF THE FLORIDA POWER SYSTEM BY 2032. AND THE REASON THEY BELIEVE IT DOES THAT IS BECAUSE THEY THINK THAT THE RULES EFFECTIVELY RETIRE ALL COAL GENERATION AND SIGNIFICANTLY REDUCE GAS GENERATION. WHY THAT IS SO IMPACTFUL ON FLORIDA, YOU WILL SEE SOME OF THESE CHARTS LIKE THE BLUE CHARTS ON THE LEFT-HAND SIDE. IT SHOWS THAT FLORIDA IS-- HAS A VERY HEAVY RELIANCE ON NATURAL GAS GENERATION IN COMPARISON TO THE REST OF THE UNITED STATES. THE NUMBERS HERE SHOW THAT NATURAL GAS GENERATION FOR FLORIDA IS 75% OF ALL GENE GENERATION, AND THAT, COMBINED WITH COAL BRINGS US UP TO 81%.
WHEN YOU LOOK AT THOSE NUMBERS COMPARED TO THE REST OF THE COUNTRY, YOU CAN SEE THAT OUR NUMBERS ARE MUCH HIGHER.
SO THEREFORE, WE HAVE A GREATER IMPACT.
AND HOW THESE RULES AFFECT US IS THAT AS I MENTIONED, IT WOULD I FEK TIVOLI EFFECTIVELY REQUIRE THE CLOSING OF ALL POWER PLANTS.
BY 205. AND IMPACT GAS PRODUCTION.
IT SHOWS THAT THE EPA, IN ACHIEVING SOME OF THEIR GOALS IS RELYING ON TECHNOLOGY THAT WOULD LEAD TO COST INCREASES AND IS ACTUALLY RELYING ON TECHNOLOGY THAT MIGHT NOT BE PRACTICAL AT THIS TIME OR EVEN AVAILABLE OR PERMITTABLE WITHIN THE TIME FRAMES THAT HAVE BEEN PROVIDED. SO YOU MAY HAVE HEARD AT THE SESSION, CARBON CAPTURE STORAGE. OR I THINK THERE WAS A WHOLE SESSION ON HYDROGEN. AS A SOURCE.
THE MESSAGE I HEARD FROM THE LADY MO PRESENTED ON HYDROGENERAL, IT IS NEW, UPCOMING AND EXCITING.
IT IS ALSO EXPENSIVE, TAKES A LONG TIME TO PERMIT, AND NOT READILY AVAILABLE. AND SO BECAUSE OF THOSE FACTORS, IT DOESN'T SEEM FEASIBLE FOR US TO TRANSFER AND IMPLEMENT AND BE IN COMPLIANCE WITH SOME OF THESE PROPOSED REGULATIONS BY 2032.
I THOUGHT THE FMPA HAD A GOOD POINT TO PUT IT IN PERSPECTIVE.
THEY SAID THE MODERN GRID CURRENTLY TOOK 40-60 YEARS TO BUILD OUT. THE IDEA OF US CHANGING DRASTICALLY BY 2032 WHICH IS EIGHT YEARS IS JUST REALLY NOT FEASIBLE. AND YOU WILL SEE THAT THAT RED CHART AT THE TOP, YOU CAN SEE THERE, THOSE ARE THE ESTIMATED COSTS TO-- COST INCREASE OF 200% TO FLORIDA.
SOME AREAS ARE EVEN HIGHER. SOME ARE MUCH LOWER LIKE CALIFORNIA. ALL OF THIS IS ALSO SUMMARIZED IN A LETTER THAT THE FRCC WROTE TO THE EPA BECAUSE RIGHT NOW, WHERE THE PROPOSED RULES ARE, THEY ARE OPEN FOR COMMENT. THIS IS A COMMENTING PERIOD.
THAT IS WHY THE FMPA IS SO VOCAL ABOUT WHAT'S GOING ON.
THE FRCC WHICH IS THE FLORIDA RELIABILITY COORDINATING COUNCIL, THEY SERVE A NUMBER OF RULES IN FLORIDA-- ROLES IF F IN FLORIDA FOR THE ENERGY INDUSTRY. THEY SERVE AS AN EXPERT ON ELECTRIC SYSTEM RELIABILITY. THEY BELIEVE THESE PROPOSED
[01:05:03]
RULES WILL 100% AFFECT RELIABILITY.THEY EVEN ESTIMATED THROUGH THEIR CALCULATIONS, THAT UNDER THESE RULES, 8% OF THE POWER IN THE STATE OF FLORIDA NEEDS WILL NOT BE MET IF WE WERE TO IMPLEMENT THESE RULES.
WHICH I THINK TRANSLATES TO ALMOST-- SOME VERY HIGH AMOUNT OF INDIVIDUALS WITHOUT POWER. IN THE MILLIONS.
YOU CAN READ OVER THIS LETTER. IT IS VERY TECHNICAL, I WILL SAY. IT DOES PROVIDE SOME GOOD BACKGROUND THERE: THAT IS ONE OF THE FEDERAL ONES I WANTED TO TOUCH ON. THERE ARE SOME OTHER ONES.
FOR EXAMPLE, WE ALL KNOW THE SUPPLY CHAIN CHALLENGES THROUGHOUT A LOT OF THE INDUSTRIES.
ONE IN PARTICULAR, THAT THEY KEPT HIGHLIGHTING WAS FOR TRANSFORMERS. IN THE ELECTRIC INDUSTRY.
THERE WAS A LETTER THAT WAS WRITTEN BY MEMBERS OF THE FLORIDA DELEGATION TO THE DEPARTMENT OF ENERGY BASICALLY EXPRESSING THEIR CONCERNS. ESPECIALLY ON THE LABOR SHORTAGES RELATING TO THESE TRANSFORMERS.
I HAVE INCLUDED THAT LETTER IN THE PACKET AS WELL.
YOU CAN READ IT OVER. AND UNDERSTAND THE CONCERNS THERE. THE FEMALE LOAN INTEREST PAYMENT LEGISLATION, THAT ONE WAS DISCUSSED BY OUR FEDERAL LOBBYIST. WHAT HE BASICALLY SAID THERE WAS THEY ARE TRYING TO PURSUE LEGISLATION, AND OUT SOUNDS LIKE IT HAS BEEN A WHILE NOW, THEY HAVE BEEN TRYING TO PURSUE THIS, WHERE IF WE ARE HIT WITH A DISASTER AND WE HAVE TO TAKE OUT LOANS TO RESPOND TO THOSE, DISASTER-RELATED COSTS, WHILE WE WAIT FOR FEMA REIMBURSEMENTS, THEY WANT THE INTEREST ON THOSE LOANS TO BE REIMBURSABLE AS WELL.
THEY ARE TRYING TO PURSUE THAT LEGISLATION.
THE ONE THAT I LIKE TO HIGHLIGHT AT THE STATE LEVEL IS HOUSE BILL 1331 AND SENATE BILL 1380. THIS IS PROBABLY OLD NEWS TO ALL OF YOU. YOU MAY RECALL THIS IS THE ONE WHERE THEY WANTED TO PLACE MUNICIPAL ELECTRIC AND GAS UTILITIES THAT SERVE RESIDENTS OUTSIDE OF THE CITY LIMITS UNDER THE REGULATION OF THE PUBLIC SERVICE COMMISSION.
THAT LEGISLATION DEALT WITH SURCHARGES AND REGULATING THOSE TO CUSTOMERS OUTSIDE THE JURISDICTIONS AS WELL AS WHAT COULD BE TRANSFERRED TO THE CITY GENERAL FUND AND HOW THOSE FUNDS COULD BE USED. BOTH OF THOSE BILLS FAILED AT DIFFERENT POINTS IN THE PROCESS. WHAT'S IMPORTANT AND WHAT WAS STRESSED AT THE FMPA CONFERENCE WAS THAT THAT IS NOT LIKELY TO BE THE END OF THAT DISCUSSION. AND IT IS PROBABLY GOING TO COME BACK UP AND-- IN THIS NEXT LEGISLATIVE SESSION.
WHAT THEY RECOMMENDED WAS THAT WE REALLY SPEAK WITH OUR REPRESENTATIVES AND EDUCATE THEM ABOUT OUR UTILITIES.
THEY ENCOURAGED ALL UTILITIES TO DO THIS.
INVITE THEM OUT FOR SITE VISITS, GIVE THEM TOURS.
WHAT THEY FOUND AT THE LAST SESSION WAS THAT THERE WAS A LOT OF MISINFORMATION. AND A LARGE PART OF THE LOBBYIST'S JOB WAS JUST TRYING TO GET THE CORRECT INFORMATION TO THE PEOPLE MAKING THE DECISIONS.
I KNOW MR. CISNEROS IS WORKING ON THOSE EFFORTS RIGHT NOW.
AND FORECAST HE IS WELCOME TO TOUCH ON THEM, IF HE WANTS TO.
>> YUP. SO A COUPLE OF THE CITIES HAVE DONE A REALLY GOOD JOB OF MAKING SURE THAT THEY BRING IN THEIR LOCAL STATE SENATORS AND STATE REPRESENTATIVES TO GET TO KNOW THE UTILITIES. IN MOST CASES, THEY ONLY KNOW ABOUT THE ELECTRIC OR MAYBE THE WATER.
WHATEVER SPECIAL INTEREST THEY HAVE.
THE IDEA HERE IS TO BRING IN OUR REPRESENTATIVES SO THEY CAN GET TO KNOW FPUA AS A WHOLE. NOT JUST AS A WASTEWATER PLANT.
THEY CAN GET A BETTER IDEA OF WHAT WE DO FOR THE COMMUNITY.
WE WILL CONTINUE TO-- YOU KNOW, WE HAVE DONE SOME OF THAT THROUGH THE WASTEWATER PLANT OVER THE PAST YEAR.
WE WILL TRY TO BUILD A GOOD RELATIONSHIP WITH THEM SO THEY UNDERSTAND THE FULL CAPACITY OF FPUA.
I THINK IT WAS PRETTY INTERESTING.
THEY ALSO HAD DISCUSSION ABOUT FORMING UTILITIES.
UTILITY AUTHORITIES. THAT CONVERSATION KIND OF HAD TWO SIDES TO THAT CONVERSATION. SOME OF YOU WERE THERE.
IT WAS PRETTY INTERESTING. I DO THINK THAT THE UTILITY AUTHORITY IS PROBABLY-- WOULD, IF I'M NOT MISTAKEN, THEY WERE EXEMPT FROM THIS DISCUSSION. OR THE SENATE BILL.
THE SENATE BILLS WHERE THEY PUT UNDER TE PUBLIC SERVICE
COMMISSION. >> AT THE LAST SESSION, THEY DID LOOK MORE FAVORABLY ON SEPARATE UTILITIES.
THEY DID-- THAN THEY DID WITH THE UTILITIES UNDERNEATH THE CITY. THAT IS WHAT I UNDERSTOOD.
>> THAT IS EXACTLY RIGHT. >> THEY HAD A SEPARATE BOARD.
[01:10:01]
I GOT THE MESSAGE THAT IF YOU WERE AN AUTHORITY, IT IS LIKELY IF THE LEGISLATION WAS TO BE DISCUSSED AGAIN, THEY WOULD EXEMPT YOU FROM THE DEFINITION OF A MUNICIPAL UTILITY.THAT IS WHY THEY HAD A SESSION ON CREATING AN AUTHORITY.
IT WAS INTERESTING TO HEAR THE REACTIONS TO THAT.
I THINK WHAT IT DOES SAY IS THAT THE CITY OF FORT PIERCE DID HAVE THE FORESIGHT AND DID MAKE A GREAT DECISION TO ESTABLISH THIS BOARD AND THAT HAS ACTUALLY SET US UP FOR, YOU KNOW, BETTER $IF THE TOPIC WERE TO COME UP AGAIN, AND THE PROPOSED REGULATIONS UNDER THE PUBLIC SERVICE COMMISSION WERE DISCUSSED.
>> AND MADAM CHAIR, ALSO OUR PERCENTAGE OF TRANSFER IS VERY, YOU KNOW, MODEST. AT THE LOW END.
YEAH. WE ALSO HAVE ON OUR ADVISORY COMMITTEE, PLACES FOR PEOPLE OUTSIDE THE CITY TO BE PART OF THE GOVERNANCE. EVEN THOUGH WE DON'T HAVE IT HERE ON THIS BOARD. WE HAVE THAT.
ALL OF THOSE THINGS ARE PLUSES. I THINK IN THE MIND OF THE LEGISLATURE. AND PLUSES FOR OUR RATE PAYERS, TOO. YUP.
>> ON TOP OF THAT, WE HAVE THE POLICY ABOUT ANNEXATIONS WHICH REALLY WAS SOME OF THE DRIVING CONCERN BEHIND THE LEGISLATION.
THEM NOT HAVING A VOICE AND THE GOVERNANCE OF THE UTILITY.
WITH THE ANNEXATION PROCESS, OUR ARGUMENT IS EVEN STRONGER THAT THEY BECOME A PART OF THE CITY AND HAVE A VOICE.
A GOOD POINT. >> AND SO JUST A FEW OTHERS.
HOUSE BILL 1645. Y'ALL ARE FAMILIAR WITH THAT ONE AS WELL. THAT WAS WHAT DID END UP BEING PASSED. WHICH ESTABLISHED THE AUTHORITY FOR THE GAIBSVILLE REGIONAL UTILITIES.
WHAT'S INTERESTING ABOUT THAT, THOSE MEMBERS ARE APPOINTED BY THE GOVERNOR. AND THE GOVERNOR DOES HAVE SOME SAY ON THAT BOARD. THEN FINALLY, WHAT WAS INTERESTING WAS THE DISCUSSION OF ADVERTISE CALL SECURITY LEGISLATION. APPARENTLY, IN FLORIDA, THERE IS NOT ANYTHING SPECIFIC ON THE BOOKS RIGHT NOW ABOUT LAWS ON PHYSICAL SECURITY OF UTILITIES. I WAS SCRATCHING MY HEAD WONDERING WHAT THAT WOULD LOOK LIKE.
I HEARD SOMEONE MENTION FOR EXAMPLE, THERE IS NO SPECIFIC CRIMINAL PENALTIES IF SOMEONE WERE TO PHYSICALLY ATTACK OR ATTEMPT TO ATTACK A UTILITY. THERE IS NOT ANYTHING BESIDES THE BASIC CRIMINAL PENALTIES THAT YOU COULD PURSUE THERE.
SO THAT IS, THINK, A SUMMARY, A GOOD SUMMARY OF THE LEGISLATION DISCUSSED IN THOSE TWO DAYS. I DON'T KNOW ABOUT Y'ALL.
AFTER THAT SECOND DAY, I WAS PRETTY EXHAUSTED.
I FELT LIKE A LOT WAS COVERED. I THINK MY FAVORITE PART WAS THE LAUNCH-- THE LUNCH WITH THE VIDEO.
THAT WAS REALLY COOL. MR. CISNEROS WAS ABLE TO GET US FEATURED THERE. I FELT REALLY PROUD SITTING AT
>> THEY REPRESENTED US. >> I REALLY ENJOYED THAT SESSION. THAT IS ALL I HAVE.
[L. COMMENTS FROM BOARD MEMBERS]
>> THANK YOU. DOES ANYBODY HAVE ANYTHING ON
THE BOARD THEY WOULD LIKE TO -- >> I JUST SAW IN THE VIDEO, WE ARE PUTTING IT ON OUR GOVERNMENT CHANNEL.
>> YOU SENT OUT THE LINK. RIGHT?
SO EVERYBODY COULD WATCH IT. >> YES.
THE LINK TO THE BOARD. WE ARE WORKING ON PUTTING IT ON OUR SOCIAL MEDIA PLATFORMS AND OUR WEBSITES AS WELL.
>> GREAT. DO YOU HAVE A FEW THINGS?
>> MADAM CHAIR, I WANTED TO MENTION SINCE WE ARE BEING VERY ACCURATE WITH OUR CHOICE OF WORDS, I THINK THAT MADAM MAYOR'S CHOICE OF WORDS AS REASONABLE AS OPPOSED TO LOW-TRANSFER IS THE BETTER WORD OF CHOICE HERE.
WE HAVE A REASONABLE -- >> REASONABLE.
WHATEVER. >> THAT IS A GOOD ONE.
>> REASONABLE. >> I DO HAVE A FEW THINGS.
JUST TO-- FOR THE COUPLE THAT WEREN'T THERE LAST WEEK.
NUCLEAR WAS DISCUSSED VERY HEAVILY.
I DON'T KNOW. I DO LISTEN TO A LOT OF GLOBAL NEWS. FRANCE JUST ALSO ANNOUNCED THEY ARE GOING TO BE SUPPORTING MORE NUCLEAR GROWTH OVER THERE.
IT SOUNDS LIKE THE GOVERNMENT HAS BEEN SUPPORTING MORE AND MORE NUCLEAR. THERE IS SMALL TO LARGE GROWTH WITH IT. SOME OF THE PICTURES THAT THEY SHOWED WAS THE SIZE OF A HOUSE. THAT WOULD BE ABLE TO DO A LARGE NEIGHBORHOOD. AFTER I HAD TO FIGURE OUT FROM MR. CISNEROS EXACTLY WHAT, YOU KNOW, HOW MANY THOUSANDS OF --
>> GLOBAL NUCLEAR PLANTS. IT WAS SORT OF SCARY.
FOR SURE. SO THAT, I THINK, WAS IMPORTANT
[01:15:03]
AS AN UNDERLYING THEME THROUGHOUT THAT COUPLE OF DAYS.ANOTHER THING, I WAS FORTUNATE ENOUGH AS WELL AS THE OTHER TWO LADIES HERE, TO GO TO THE POLICY MAKERS LIAISON COMMITTEE MEETING. AND JAVIER HAD SUGGESTED THAT I JOIN THAT. IT IS WITHIN THE FMPA.
I WANTED TO DISCUSS THAT WITH YOU GUYS.
I THINK THE CITY PERSON THAT IS THE COMMISSIONER IS MIKE BRODERICK. ON THAT COMMITTEE.
AND I WOULD LOVE TO JOIN, IF THAT IS OKAY WITH YOU GUYS.
THE ONLY THING I WANT TO SAY IS IT IS A VERY TECHNICAL POSITION.
I DON'T THINK IT IS GOING TO BE LIKE A QUICK YEAR AND THEN OFF.
IF I WERE TO DO THIS, I WOULD RATHER DO IT FOR THE REST OF THE TIME THAT I'M ON THE BOARD HERE. I DON'T KNOW.
THAT IS HOW YOU GUYS FEEL ABOUT THAT.
>> IT IS GREAT. IF YOU ARE WILLING TO SPEND THE TIME, IT IS GREAT. YEAH.
>> IT IS ONCE A QUARTER MEETING. CORRECT?
>> YES, MA'AM. THE SCHEDULE IS SET FOR THE ENTIRE YEAR. YOU KNOW EXACTLY WHEN IT IS
>> YUP. IT HAS BEEN-- IT HAS BENEFITED US IN THE PAST. IT IS GREAT.
>> WASN'T TOM ON THAT FOR MANY YEARS?
WAS THAT A DIFFERENT -- >> TOM WAS THE POLICY-MAKER LIAISON REPRESENTATIVE FOR THE CITY COMMISSION AND THE LAST ONE WE HAD FOR OUR BOARD WAS MR. PERRY.
>> IF YOU GUYS ARE ALL RIGHT WITH THAT --
>> YOU HAVE THE TIME. GO FOR IT.
>> I THINK IT IS IMPORTANT TO GET INVOLVED.
ALSO IT WILL HELP ME AND HELP US COMING BACK WITH HOW TO STEER AND MAYBE BEING ABLE TO GIVE A LITTLE BIT MORE BEHIND THE SCENES INFORMATION TO YOU GUYS TO HELP MAKE BETTER DECISIONS.
I THINK THAT, YOU KNOW, IT WILL BENEFIT ALL OF US.
IF THERE IS NOTHING ELSE, THEN, I GUESS WE ARE GOOD.
THANKS. MEETING
* This transcript was compiled from uncorrected Closed Captioning.