[MEETING TO ORDER]
[00:00:06]
>> GOOD AFTERNOON. IT IS NOW 4:00 P.M.
I WOULD LIKE TO CALL TO ORDER THE REGULAR MEETING OF THE FORT PIERCE UTILITIES BOARD. MADAM CHAIR COULD NOT JOIN US THIS AFTERNOON DUE TO A FAMILY EMERGENCY.
IS THERE A MOTION TO EXCUSE MADAM CHAIR?
>> A MOTION TO APPROVE. >> SECOND.
>> WE HAVE A MOTION AND A SECOND.
MADAM CLERK, PLEASE CALL THE ROLL.
>> MR. LAMMERS? >> YES, MA'AM.
>> THANK YOU. THE MOTION PASSES.
NOW WE WILL HVE OUR OPENING PRAYER AND OUR PLEDGE.
WILL YOU PLEASE STAND? >> GOOD AFTERNOON.
LORD, I WANT TO THANK YOU FOR YOUR FAITHFULNESS.
YOU HAVE ALWAYS HAD YOUR HANDS ON THE CITY OF FORT PIERCE AND HAVE PROSPERED US. WE ASK FOR YOUR CONTINUED GRACE AND MERCY TO BE SHINED ON OUR CITY.
WE ASK FOR SUPERNATURAL WISDOM AND GUIDANCE AS A STAFF ANDBOARD HAVE CONVERSATIONS THAT NOT ONLY AFFECT TODAY BUT AFFECT WHAT FPUA AND THE CITY OF FORT PIERCE LOOKS LIKE FOR DECADES.
I PRAY FOR FAVOR IN ALL OF OUR CONTRACT NEGOTIATIONS AND BUSINESS DEALS, THAT WE WOULD GET ITEMS CHEAPER AND FASTER THAN OTHERS. WE PRAY ALL THIS IN JESUS' NAME.
>> I PLEDGE ALLEE JANTS 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.
>> THANK YOU, MR. MITTLER. NOW WE WILL HAVE ROLL CALL.
TO DECLARE A QUORUM. >> MR. FEE?
>> PRESENT. >> LET THE RECORD REFLECT THAT WE HAVE A QUORUM PRESENT. THE NEXT ITEM IS THE SETTING THE
[A. SET THE AGENDA ]
AGENDA. I BELIEVE MR. CISNEROS HAS A REQUEST TO PULL ITEMS I-3 AND 4. MR. CISNEROS?>> YES, MA'AM. MADAM CHAIR, I'M REQUESTING TO PULL ITEMS I-4 AND I-3 RELATING TO THE WATER AND WASTEWATER RATE ADJUSTMENTS. SOME OF THE CUSTOMERS MAY NOT HAVE RECEIVED THEIR BILL IN TIME TO SEE THE NOTICE OF THE PUBLIC MEETINGS ON THESE ATELLS. ALTHOUGH WE HAVE PUBLISHED IT IN THE NEWSPAPER AND ON OUR WEBSITE, FLORIDA LAW REQUIRES THAT ANY RATE INCREASE FOR WATER AND WASTEWATER ALSO BE NOTICED THROUGH THEIR BILLING-- UTILITY BILLING PROCESS.
THIS REQUIREMENT IS NOT APPLICABLE TO ELECTRIC AND GAS RATE ADJUSTMENTS. WE PLAN TO NOTICE THE WATER RATE ADJUSTMENTS IN THE OCTOBER BILLING FOR THE MEETING-- FOR THE MEETINGS ON NOVEMBER 7 AND 21.
>> THANK YOU. I WOULD ALSO LIKE TO REQUEST THAT ITEMS G-7 RELATING TO THE POWER COST ADJUSTMENT AND ITEM I-1 AND 2 RELATING TO THE ELECTRIC AND GAS RATE ADJUSTMENTS BE MOVED TO BE PRESENTED AFTER THE CONSENT AGENDA TO RESPECT THE TIME OF THOSE IN THE AUDIENCE THAT MAY WANT TO SPEAK ON THE RATE ADJUSTMENT.
ANY DISCUSSION? >> I HAVE A COUPLE OF COMMENTS, MADAM CHAIR ON THAT. THIS IS JUST MY PERSONAL OPINION. IF ITEMS I-3 AND 4 NEED MORE TIME TO BE PRESENTED TO OUR CUSTOMERS THROUGH THEIR BILL, IT IS MY OPINION THAT I-1 AND 2 SHOULD BE MOVED TO A LATER DATE AS WELL TO BE VOTED ON ALONG WITH ITEMS I-3 AND 4 SO THAT ALL OF OUR CUSTOMERS ARE GIVEN AMPLE TIME TO BE MADE AWARE THAT THIS
IS HAPPENING. >> AGAIN, THAT IS JUST MY
OPINION. >> ANY OTHER DISCUSSIONS?
>> AS LONG AS WE HAVE COMPLIED WITH FLORIDA LAW, I DON'T SEE THE NEED TO PUT OFF FOR TOMORROW WHAT WE CAN DO TODAY.
I'M FOR MOVING THOSE ITEMS TO THE FRONT TO BE HEARD AFTER THE
CONSENT AGENDA. >> SO MADAM CHAIR, EXCUSE ME.
>> YES, MA'AM. >> DID YOU SAY THAT I-3 AND 4 WOULD BE MOVED TO NOVEMBER OR OCTOBER?
>> NOVEMBER, YES. SO WE WOULD ISSUE THE NOTICE IN THE OCTOBER BILLING. FOR NOVEMBER MEETINGS.
YES, MA'AM. >> SO MR. LAMMERS, I HEAR WHAT YOU ARE SAYING, BUT THESE ARE ALREADY-- THESE ARE NOTICED.
SO I THINK THAT THEY ALL TOGETHER-- THEY ARE TOGETHER BUT
[00:05:06]
IT DOESN'T HAVE TO BE ALL TOGETHER.PERSONALLY, I DON'T THINK SO. BUT I DON'T FEEL STRONGLY ABOUT IT, BUT I JUST THINK WE CAN GO AHEAD AND DO I-1 AND 2 TODAY.
AND SAVE THE OTHERS FOR WHEN WE FOLLOW-- MAKE SURE WE FOLLOW THE
LAW. >> I'LL MAKE A MOTION TO MOVE ITEM G-7 AND I-1 AND 2 TO BE HEARD AFTER THE CONSENT AGENDA SO WE CAN GO OUT FOR PUBLIC COMMENTS.
>> DO WE HAVE A SECOND? >> MADAM CLERK, PLEASE CALL THE
>> YES, MA'AM. >> MR. LAMMERS?
>> NO, MA'AM. >> MAYOR HUDSON?
>> YES, MA'AM. >> MRS. BENNETT?
>> YES, MA'AM. >> I'LL MAKE A MOTION TO PULL ITEMS 3 AND #. AS WELL.
THAT WOULD BE ITEMS I-3 AND 4. FOR CLARITY.
>> OH, YES. >> CALL THE ROLL, PLEASE.
>> MR. LAMMERS? >> YES, MA'AM.
>> MRS. BENNETT? >> YES, MA'AM.
>> JUST FOR THE RECORD, DID WE HAVE A SECOND ON THAT MOTION?
>> I THINK I-- IF I DIDN'T SAY IT LOUD ENOUGH, YES.
>> THANK YOU. >> I WAS THINKING IT.
SORRY. >> NOW WE WILL HAVE-- EACH OF
[B. APPROVAL OF MINUTES]
YOU SHOULD HAVE A COPY OF THE MINUTES OF THE REGULAR MEETING ON SEPTEMBER 5, 2023. ANY CHANGES, REQUESTS, OR DO IHAVE A MOTION? >> MOVE APPROVAL.
>> SECOND. >> MADAM CLERK, PLEASE CALL THE
>> YES, MA'AM. >> MR. LAMMERS?
>> YES, MA'AM. >> MAYOR HUDSON?
>> YES, MA'AM. >> MRS. BENNETT?
THE MOTION PASSES. NOW WE WILL HAVE COMMENTS FROM THE PUBLIC. THE NEXT ITEM ON THIS AGENDA IS YOUR PUBLIC COMMENT. IF THERE IS ANY MEMBER OF THE PUBLIC THAT WOULD LIKE TO COME FORWARD AND SPEAK, YOU MAY DO SO NOW. IF YOUR COMMENTS RELATE TO THE ELECTRIC AND GAS RATE ADJUSTMENTS, I REQUEST THAT YOU PLEASE HOLD YOUR COMMENTS UNTIL THAT AGENDA ITEM.
WE WILL ALLOW PUBLIC COMMENTS SPECIFICALLY FOR THOSE AGENDAS-- AGENDA ITEMS AT THE TIME THOSE ITEMS ARE PRESENTED.
IF YOU WOULD LIKE TO SPEAK ON ANY OTHER MATTER, PLEASE COME FORTH NOW AND FIRST STATE YOUR NAME AND ADDRESS FOR THE RECORD.
YOU WILL HAVE THREE MINUTES TO ADDRESS THE BOARD.
THERE IS NOT ANY COMMENTS AT THIS TIME.
WE ARE MOVING ON. WE SEE THAT WE HAVE NO COMMENTS.
[D. CONSENT AGENDA]
WE WILL CLOSE THE PUBLIC COMMENT AND MOVE TO THE CONSENT AGENDA.IS THERE ANY ITEM THE BOARD MEMBER WOULD LIKE TO PULL FOR DISCUSSION ON THE CONSENT AGENDA?
OR DO I HAVE A MOTION? >> I MOVE TO APPROVE THE CONSENT
>> MADAM CLERK, PLEASE CALL THE ROLL.
>> MR. LAMMERS? >> YES, MA'AM.
>> MAYOR HUDSON? >> YES, MA'AM.
>> MRS. BENNETT? >> YES, MA'AM.
NEW BUSINESS. WE ARE MOVING ON TO NEW BUSINESS
[G.7. Power Cost Adjustment Update for July 2023. Presented by Barbara Mika. ]
NOW. THE NEXT ITEM ON THE AGENDA IS ITEM G-7. POWER COST ADJUSTMENT UPDATE FOR JULY, 2023. MR. CISNEROS?>> YES, MA'AM. MADAM CHAIR, THE FIRST ITEM, AS YOU MENTIONED, IS A REQUEST TO REDUCE THE ELECTRIC POWER COST ADJUSTMENT FROM $9 TO $0 FOR THE MONTH OF OCTOBER.
THIS REDUCTION ALIGNS WITH THE BOARD'S STRATEGIC GOAL TO STABILIZE THE ELECTRIC POWER COST ADJUSTMENT FOR OUR CUSTOMERS BASED ON THE PROJECTIONS THE PCA HAVE APPROVED THIS AFTERNOON WOULD REMAIN AT 0 AT A MONEY PULL FOR THE NEXT FEW MONTHS. BARBARA MIKA, THE DIRECTOR OF FINANCIAL ADMINISTRATION WILL PRESENT THIS ITEM.
>> THANK YOU. >> THANK YOU, MR. CISNEROS.
MADAM CHAIR, AND KRBOARD MEMBERS, GOOD AFTERNOON.
I HAVE THE UPDATE ON THE STATUS OF THE JULY, 2023 POWER COST ADJUSTMENT WITH THE UPDATED TABLES AND CHARTS AND THE LATEST
[00:10:01]
12-MONTH PROJECTIONS FROM FMPA. THIS IS A QUARTERLY TABLE SHOWING THE QUARTERLY IMPACT OF THE POWER COST ADJUSTMENT.THE OVER OR UNDER RECOVERIES AND THE CUMULATIVE BALANCES FOR THE POWER COST RECOVERY. OUR GOAL IS TO MAINTAIN AND RESERVE AND ALLOW FOR FLUCTUATIONS DURING THE COST OF PURCHASE POWER. DURING JULY, WITH THE PURCHASE POWER AND A PCA OF $19 PER MEGAWATT HOUR, FPUAF HAD AN OVERRECOVERED $771,000 IN POWER COSTS, BRINGING THE CURRENT OVERCOLLECTION TO $6.8 MILLION. JULY WAS A VERY HOT MONTH.
THE PURCHASE-- WE PURCHASE POWER AT 62,089 MEGAWATTS IN JULY.
HIGHER THAN OUR AVERAGE NORM. THAT WAS A 10.7% INCREASE FROM THE PREVIOUS MONTH. AT A COST OF $4.7 MILLION.
THIS CHART TRACKS THE CUMULATIVE BALANCE OF THE ACTUAL AND PROJECTED POWER COST ADJUSTMENT RECOVERY IN RELATION TO THE APPROVED POWER COST ADJUSTMENT. IT PROVIDES A TWO-YEAR LOOKBACK AND A ONE-YEAR LOOK FORWARD. POWER COST ADJUSTMENT IS THE DARK BLUE LINE THAT GOES ACROSS, AND FOR JULY, WAS AT $19 FOR 1,000 KILOWATT HOURS. IT INCLUDES ALL APPROVED ADJUSTMENTS TO THE PCA, INCLUDING THE $10 REDUCTION THAT WE HAD APPROVED IN AUGUST. AND THE CURRENT RECOMMENDATION TODAY OF A $9 REDUCTION FOR OCTOBER TO ZERO.
THE BARS ON THIS CHART, THE BLUE BARS TOWARDS THE LEFT INDICATE THE LEVEL OF THE OVER AND UNDER RECOVERY.
THE BLUE BARS ARE THE ACTUAL NUMBERS THAT OCCUR BETWEEN JULY OF '21 AND JULY OF 2023. AND THE ORANGE BARS SHOW THE PROJECTED LEVEL OF OUR RECOVERY WITH THE CURRENT FORECASTED NUMBERS. FPUA IS WORKING WITH FMPA PRE-PURCHASING NATURAL GAS IN AN EFFORT TO MANAGE THE COST OF PURCHASE POWER. FMPA'S ESTIMATE OF THE COST OF THE UPCOMING 12 MONTHS HAS DECREASED BY 1.2% OR ABOUT $600,000. THIS WAS AS OF JULY.
FISCAL YEAR TO DATE AVERAGE COST FOR 1,000 KILOWATT HOURS IS $94.69. THIS CHART IS A COMPARISON OF THE PROJECTIONS WITH THE JULY FORECASTED NUMBERS.
THE DASH LINES DENOTE THE RANGE OF THE RATE STABILIZATION FUND.
ALL OF THESE SCENARIOS AFFECT REDUCTIONS IN THE PCA WITH A CURRENT PROPOSED $9 REDUCTION EFFECTIVE OCTOBER 1.
THE RED LINE ON THE BOTTOM MAINTAINS THAT 0 POWER COST ADJUSTMENT THROUGH JULY OF 2024. IT IS THE LOWER LINE AS WE REACH OUT TO NEXT JULY. THE YELLOW LINE IN THE MIDDLE SHOWS A 0PCA, ADJUSTING TO A $1 INCREASE IN JANUARY.
AND THEN CARRYING THROUGH TO JULY OF 2024.
THAT IS A $1 ADJUSTMENT FOUR MONTHS FROM NOW.
THE GREEN LINE SHOWS A $3 INCREASE AT THAT SAME TIME INTERVAL IN JANUARY. AND CARRYING US THROUGH JULY OF 2024. ALL OF THESE SCENARIOS FOLLOW VERY SIMILAR PATHS AND REPRESENT FUTURE DECISIONS BY THE BOARD THAT MAY OR MAY NOT OCCUR. AVOIDING ANY UNPREDICTABLE AND SUDDEN CHANGE-- CHANGES, WE HAVE PREPURCHASED GAS THROUGH PMPA-- FMPA. THIS GIVES US MORE STABILIZATION IN OUR POWER COST. OUR STAFF MONITORS THE COST OF POWER MONTHLY, AND THE IMPACT OF THE ADJUSTMENT WITH EACH FORECAST UPDATE. SO THAT WE CAN REPORT TO THE BOARD AND MAKE RECOMMENDATIONS. STAFF IS RECOMMENDING TO REDUCE THE PCA BY $9, LOWERING THE POWER COST FROM $9 TO $0 PER 1,000 KILOWATT HOURS EFFECTIVE OCTOBER 1.
THIS ITEM IS PRESENTED FOR YOUR CONSIDERATION AND APREUFLG AS
YOU SEE FIT. >> ANY DISCUSSION?
>> YES. >> MS. MIKA, MR. CISNEROS, EITHER ONE OF YOU, CAN YOU GIVE ME A-- SOME INFORMATION ON AN INDICATION ON WHAT THE AVERAGE CUSTOMER, WHAT THIS RATE REDUCTION WOULD DO TO THEIR BILL?
>> WE DO HAVE THAT CHART IN THE NEXT PRESENTATION FOR THE
[00:15:01]
ELECTRIC RESOLUTION. SO I THINK IT GOES FROM $139 TO $10 PER KILOWATT HOUR. STARTING IN THE MONTH OF OCTOBER. PER 1,000 KILOWATT HOUR.>> IN THE NEXT PRESENTATION, WE WILL SEE HOW THAT OFF-SETS SOME OF THE RATE CHANGES THAT IS WE HAVE PROPOSED.
>> FOR THIS DISCUSSION, I THINK IT IS REALLY IMPORTANT TO IDENTIFY THOSE DASH LINES WHICH ARE UPPER AND LOWER LIMITS THAT WE HAVE HAD IN THE PAST. PART OF THE BOARD'S STRATEGIC VISION OR ABILITY TO LOOK FORWARD TO MAKE SURE THAT WE AVOID RATE SHOCK LIKE WE DID LAST YEAR.
AS YOU CAN SEE, THE GREEN, RED, AND ORANGE LINES ARE ABOVE THE UPPER LIMIT. I REALLY DO BELIEVE WE SHOULD CONSIDER A NEW UPUPPER LIMIT SO WE CAN MITIGATE THE FOLLOWING SUMMERS-- PAST 2025. WE HAVEN'T LOCKED IN ANY PRICES
BEYOND THAT. >> LAST SUMMER WAS TOUGH FOR US AND OUR CUSTOMERS. BECAUSE WE DIDN'T HAVE ENOUGH BUFFER IN ORDER TO ABSORB THE HUGE SPIKE IN ENERGY PRICES THAT
>> SO WE HAD NO CHOICE REALLY BUT TO RAISE RATES.
IF WE RAISE THAT UPPER LIMIT, THAT WILL GIVE US A LITTLE BIT MORE OF A BUFFER TO ABSORB WILD SWINGS IN GAS PRICES.
>> YES, SIR. THAT IS A GREAT SUMMARY.
I THINK WE HAVE BEEN ABLE TO DO THAT OVER THE LAST YEAR AT THE BOARD'S DIRECTION, TRYING TO IMPLEMENT A PLAN TO DO THAT OVER THE LAST YEAR. WHILE BUILDING UP THE RATE STABILIZATION PLAN. WE HAVE BEEN ABLE TO ACCOMPLISH THAT. PRIMARILY, BECAUSE WE ARE BEEN ABLE TO LOCK IN GAS PRICES FOR PURCHASE POWER.
SO FMPA IS CONTINUING TO EVALUATE WHAT THAT LOOKS LIKE BEYOND APRIL OF 2025. WHICH IS WHEN THEY NO LONGER HAVE LOCKED-IN GAS PRICES BEYOND THAT.
WHAT I'M GETTING TO IS LOCKING IN GAS PRICES IS REALLY IMPORTANT FOR FPUA AND THE CITY OF FORT PIERCE.
IT ALLOWS US TO MITIGATE THE HUGE SPIKES IN NATURAL GAS
PRICES. >> SO WHAT WE ARE-- WHAT'S PROPOSED RIGHT NOW IS THAT WE REDUCE THE POWER COST TO THE
>> AND THERE MAY BE A POTENTIAL THAT IF WE CAN LOCK IN GAS PRICES, THAT WE CAN FURTHER REDUCE THE POWER COST TO THE
CUSTOMER IF THE FUTURE. >> WE COULD, WE COULD LOCK IT IN AT A 0MCA. 0PCA.
WE WOULD TRY TO AVOID GOING BELOW A 0 PCA.
WE DON'T KNOW WHAT THE GAS MARKET IS GOING TO DO SIX MONTHS
>> WE ARE TRYING TO MITIGATE THAT.
>> THE PRIMARY GOAL IS TO MAKE SURE WE DON'T HAVE WHAT HAPPENED
LAST SUMMER AGAIN. >> THAT IS ABSOLUTELY RIGHT.
THANKS FOR CLARIFYING THAT. I THINK IT IS REALLY IMPORTANT TO SAY FOR ANYBODY WHO IS IN THE AUDIENCE, THAT THE SCENARIOS-- WE ARE NOT VOTING ON THE SCENARIOS.
WE ARE ONLY VOTING ON LOWERING THE PCA TODAY TO 0.
>> CORRECT. >> MR. LAMMERS, ONE OF THE REASONS I WANTED TO DO IT TODAY IS IT GOES IN OCTOBER.
IT GOES IN A LITTLE BIT EARLIER FOR THE CUSTOMER.
I WOULD LIKE FOR IT TO GO IN AS EARLY AS POSSIBLE.
AND I WANT TO MAKE SURE THAT WE UNDERSTAND THAT WE CAN'T PREDICT THE PRICES OF NATURAL GAS. WE ARE AT THE MERCY OF THE PRICE OF NATURAL GAS. AND THE STATISTIC IS IMPORTANT THAT 75% OF THE ELECTRICITY PRODUCED IN FLORIDA IS PRODUCED
BY NATURAL GAS. >> YES, MA'AM.
FOR THE FMPA, IT IS ABOUT 80%. BECAUSE OF THEIR FLEET.
>> IT IS 75%. SO EVERYBODY IN THE STATE PRACTICALLY IS AT THE MERCY OF THE PRICES OF NATURAL GAS.
THEY SPIKE DEPENDING ON AVAILABILITY, DEPENDING ON WORLD EVENTS. DEPENDING ON A LOT OF DIFFERENT THINGS. WE HAVE WORKED HARD TO GET THIS DOWN TO ZERO. I BELIEVE.
SO I WOULD SUPPORT THIS READILY. >> YES.
>> MADAM CHAIR, A QUICK QUESTION.
MR. CISNEROS, DO WE HAVE ANY IDEA HOW WE ARE GOING TO ADJUST THESE-- THIS CHANNEL? WHEN WE ARE GOING TO ADJUST IT
UP TO SEE WHAT IT LOOKS LIKE? >> YUP.
>> DO YOU HAVE ANY IDEA, THAT IS QUESTION I WOULD LIKE TO KNOW.
LET'S SAY WE ARE AT $8 MILLION. HOW LONG WILL THAT LAST IN AN ENVIRONMENT IN WHICH WE HAVE A RAPID ACCELERATION AND INCREASE
[00:20:04]
IN GAS PRICES LIKE WE HAD LAST SUMMER?>> SO OVER A THREE-MONTH PERIOD LAST YEAR, I'LL TACKLE THAT LAST QUESTION FIRST. OVER A THREE-MONTH PERIOD LAST YEAR, WE HAD A DELTA OF $13 MILLION ABOVE OUR NORMAL BILL OVER A FOUR-MONTH PERIOD APPROXIMATELY.
SO $8 MILLION, IF WE HAD THE SAME EXACT SCENARIO HAPPEN, PAST THE TIME FRAME THAT WE HAVE LOCKED IN GAS, WE WOULD LOOK AT TWO OR THREE MONTHS, TO BE ABLE TO MITIGATE IT.
THE ENTIRE PLAN BY THE BOARD OR THE DIRECTION BY THE BOARD IS TO STAGGER THAT OVER A THREE-MONTH PERIOD INSTEAD OF AN INSTANT MONTH, LIKE WHAT HAPPENED LAST YEAR.
>> EXACTLY. WE WILL MAYBE HAVE THREE MONTHS, PERHAPS TWO MONTHS BEFORE WE HAVE TO RAISE THE PCA.
>> IF IT CAME TO THAT. >> CAME TO THAT.
>> LIKE AN EMERGENT SITUATION. BEST WE BUY MAYBE 60 DAYS OF
STATE STABLE RATES. >> WE HAVE A RAPID INCREASE, AT LET'S SAY, WE HAVE MAYBE 7 MILLION AT THE TIME.
WHEN THAT INCREASE OCCURRED? >> NO.
I THINK IN FEBRUARY, WE WERE STARTING TO-- WE WERE STILL-- YEAH. FEBRUARY OF '22, I DON'T THINK
WE WERE UP THAT HIGH. >> LOOKING BACK IN THE SUMMER.
>> YES. >> OUR HIGH AT THAT POINT IN
>> GIVE US KIND OF SOME GUIDELINE OF WHAT IT LOOKS LIKE.
YOU KNOW, ADJUSTING THE LINES UP, GETS US THREE MONTHS BEFORE WE HAVE WE HAVE TO ADJUST. AND SO ON.
ALL RIGHT. THAT IS JUST FOR MY OWN EDIFICATION. ANYBODY WANT TO MAKE A MOVE TO APPROVE? I'M FOR IT.
>> THIS CHART WOULD SHOW THE PCA IN THOSE MONTHS HERE.
LIKE LAST YEAR. WE WERE IN MAY AND JUNE --
>> SHE CAN'T HEAR. CAN YOU GET A LITTLE CLOSER TO
YOUR MIC? >> THESE BARS REPRESENT THE ACTUAL LEVELS OF THE PCA. WE WERE BELOW TWO MILLION.
ALL THE WAY THROUGH. WE HAD THAT NEGATIVE PCA BY VIRTUE OF THIS LINE BEING HERE. STRAIGHT THROUGH.
THEN WE HAD TO PICK IT UP. IT WAS JACKED UP.
WE WERE-- THAT IS HOW WE RECOVERED.
EVEN THIS AMOUNT. WE WERE NEGATIVE FOR THAT POWER
>> I'LL MAKE A MOTION TO APPROVE THE REDUCTION TO THE PCA BY $9,
>> SECOND. >> WE HAVE A MOTION AND A SECOND. MADAM CLERK, PLEASE CALL THE
>> YES, MA'AM. >> MR. LAMMERS?
[Items I.1 & I.2]
THE MOTION PASSES. THE NEXT ITEM ON THE AGENDA IS THE SECOND READING OF RESO RESOLUTIONS 2023-08 AND 2023-09.WE ARE GOING TO TAKE THESE TWO ITEMS TOGETHER BECAUSE THEY ARE RELATED. MADAM CLERK, WILL YOU PLEASE READ THE TITLES OF THE RESOLUTIONS?
>> RESOLUTION NUMBER UA2023-08, A RESOLUTION AMENDING SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES FOR RECK ELECTRIC SERVICES TURN CHILDRENNED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA IN RESOLUTION NUMBER UA-2022-06 IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ARTICLE 12, PROVIDING FOR A 7.07% INCREASE IN THE CUSTOMER AND USAGE CHARGES BASED ON THE 2023 PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR ADMINISTRATIVE ACTION, ANNUAL INDEXING PROVISION, SCRIBNER'S ERROR, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE.
>> RESOLUTION NUMBER UA-2023-09, RESOLUTION AMENDING SUPERCREEDING AND RESCINDING THE SCHEDULE OF RATES AND CHARGES FOR NATURAL GAS SERVICES, FURNISHED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA AND RESOLUTION NUMBER 2022-07, IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ARTICLE 12, PROVIDING FOR A 7.07% INCREASE IN THE CUSTOMER AND COMMODITY CHARGES BASED ON THE 2023 FLORIDA SERVICE COMMISSION ANNUAL PRICE INDEX.
AND PROVIDING FOR ANNUAL INDEXING PROVISION, ADMINISTRATIVE ACTION, SCRIBNER'S R RORS, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE.
>> THANK YOU. MR. CISNEROS? PLEASE PROCEED WITH THE STAFF PRESENTATION.
>> YES, MA'AM. MADAM CHAIR, AS YOU MENTIONED, THIS IS THE SECOND READING FOR THE TWO RESOLUTIONS FOR ELECTRIC AND GAS ADJUSTMENTS. RELATED TO THE FLORIDA PUBLIC
[00:25:02]
SERVICE COMMISSION ADOPTED INDEX FOR 2024.THE ADOPTION OF THE INDEX EACH YEAR IS IMPORTANT SO THAT FPUA CAN KEEP UP WITH THE COST OF INFLATION OF DOING BUSINESS.
IT IS ALSO IMPORTANT TO ENSURE A CONSISTENT ADOPTION TO AVOID RATE SHOCK AS WE EXPERIENCED LAST YEAR.
BARBARA MIKA WILL PRESENT THIS ITEM-- THESE ITEMS. THIS PRESENTATION COVERS BOTH RESOLUTIONS BEFORE YOU THIS AFTERNOON AND STAFF REQUESTS THAT THIS PRESENTATION BE INCLUDED IN THE RECORD FOR EACH RESOLUTION.
BARBARA? >> THANK YOU, MR. CISNEROS.
AGAIN, MADAM CHAIR AND BOARD MEMBERS.
I'M PRESENTING THE RATE ADJUSTMENT FOR ELECTRIC AND FOR
UA-2023-09 FOR NATURAL GAS. >> WE CANNOT HEAR YOU.
PLEASE SPEAK UP. WE DIDN'T HEAR ANYTHING.
>> WILL YOU PLEASE SAY THAT AGAIN?
>> I'M PRESENTING THE PROPOSED RATE ADJUSTMENTS THROUGH RESOLUTIONS UA-2023-08 FOR ELECTRIC AND UA-2023-09 FOR NATURAL GAS. THE ADJUSTMENTS ARE-- ARE THE ADJUSTMENTS? MEANING WHAT ARE WE DOING FOR THESE ADJUSTMENTS? WHERE ARE THEY DERIVED FROM? THE BASIS FOR THESE ADJUSTMENTS IS THE PUBLIC SERVICE COMMISSION INDEX. THE INDEX IS PUBLISHED ANNUALLY ON OR BEFORE MARCH 31. IT WAS ORIGINALLY CRAFTED AND INSTITUTED BACK IN 1993. IT IS BASED ON THE GROSS DOMESTIC PRODUCT, IMPLICIT PRICE INFLATER FOR THE PREVIOUS YEAR.
IT ESTABLISHES THE INDEX FOR MAJOR CATEGORIES OF OPERATING EXPENSES FOR UTILITIES AND IMPLIES THE INFLATION THAT OCCURRED IN THE PREVIOUS YEAR, AND IT, IN FACT, LAGS FOR TWO YEARS BECAUSE THE INFLATION INDEX IS DERIVED FROM THE PREVIOUS YEAR'S NUMBERS AND IS NOT IMPLEMENTED UNTIL THE FOLLOWING YEAR WHEN WE PRESENT IT.
THERE IS A TWO-YEAR LAG IN THIS INFLATIONARY INDEX.
AND SO WHY DO WE NEED TO DO THIS? WE NEED TO MAINTAIN PACE WITH INFLATION.
WE HAVE RISING COSTS OF MATERIALS, AND INFRASTRUCTURE FOR OUR IMPROVEMENTS. THE PAST TWO YEARS, WE HAVE SEEN PRESENTATIONS COME TO THE BOARD WITH INCREASES IN OPERATING EXPENSES AND CAPITAL EXPENSES FOR 50% TO 100% OR BETTER.
SOME OF THE SYSTEM HARDENING REQUIREMENTS ARE REQUIRED BY REGULATORY AGENCIES IN ORDER TO MAINTAIN OUR ELECTRIC GRID IN COMPLIANCE. SOME OF THOSE COSTS HAVE DOUBLED AND EVEN TRIPLED OVER THE PAST TWO YEARS.
THIS INDEX FOR 2027 WAS ESTABLISHED AT 7.07%, AND IT IS REFLECTIVE OF THESE RAPID CHANGES TO OUR ECONOMY THAT EVERYBODY IS EXPERIENCING. EVERYBODY HERE IN THIS TOWN AND IN THIS STATE. SO HOW ARE WE DERIVING THESE-- WHAT DO WE DO TO CALCULATE THE RATES THAT WE ARE DOING? JUST TO EXPLAIN A LITTLE BIT BETTER FOR THE GAS AND THE ELECTRIC ADJUSTMENTS THAT WE ARE PRESENTING TODAY, WE ARE SAYING THAT ELECTRIC, WE ARE PUTTING IN A 7.07% INCREASE, BUT WHAT YOU WILL SEE IS THAT THE RATES ARE ONLY GOING UP ABOUT 2.4.
WHY IS THAT? THAT IS BECAUSE THE INCREASE IS ONLY APPLIED TO THE OPERATIONAL COST.
SO FOR THE PROPOSED ELECTRIC INDEX, THE COST OF OUR DELIVERED POWER THAT WE PURCHASED FROM FMPA, IT COST US $79.52 FOR 1,000 KILOWATT HOURS. OVER AND ABOVE THAT, IN OUR RATES, WE HAVE OPERATIONAL COSTS OF $40.96 FOR THAT SAME $1,000 KILOWATT HOURS. THOSE TWO NUMBERS COMBINED CREATE THE RATE. WE ONLY APPLIED THE INDEX, THE PERCENTAGE TO THE $40.96. NOT THE $79.
THAT NUMBER IS STATIC WITH OUR PURCHASES FROM FMPA.
THE SAME HOLDS TRUE FOR NATURAL GAS.
ALTHOUGH THE NUMBERS ARE DIFFERENT.
BECAUSE THE BASIS IS ON CCF. FOR OUR DELIVERED COST OF NATURAL GAS, TO FPUA, WE GAS UTILITY.
13CCFS THE COST IS $6.50. THAT, COMBINED WITH THE $30.17 IS OUR CURRENT RATE. THE INDEX OF THE 7.0% IS ONLY
[00:30:06]
CALCULATED ON THAT $30. NOT ON THE COST THAT WE ABSORB.YOU KNOW, WE HAVE BUILT INTO OUR TIER, INTO OUR STRUCTURE.
THE INCREASES ARE NOT COMING OUT AT THE PRICE-- YOU WILL SEE THAT ON THE NEXT SLIDE. WITH THE 7.07%, THE INCREASES ARE NOT THAT HIGH. SO THESE INDEX ADJUSTMENTS HAVE BEEN BROUGHT TO THE ATTENTION AT PUBLIC MEETINGS.
WE HAD A JOINT BUDGET WORKSHOP BACK IN JUNE, ON THE 21ST OF JUNE. WE TALKED AND SPOKE ABOUT THESE ADJUSTMENTS WE WERE CONSIDERING. WE HAD OUR BOARD MEETING ON AUGUST 1. WE PRESENTED OUR BUDGETS.
THESE ADJUSTMENTS WERE DISCUSSED AT THAT POINT.
THAT THEY WERE IMPENDING. ON THE CITY COMMISSION LEVEL, WE HAD A MEETING WHERE THESE INDEX ADJUSTMENTS WERE ALSO-- THESE WERE ALL PUBLIC MEETINGS. AND TODAY, WELL NOT TODAY, TWO WEEKS AGO AT OUR MEETING, WE HAD OUR FIRST READING.
ON THE SEPTEMBER 5, WE ADDRESSED THESE INDEX ADJUSTMENTS THEN AS WELL. SO THIS IS WHAT WE ARE REFERRING TO, AS FAR AS THE RESIDENTIAL BILL AND WHAT THE IMPACT REALLY LOOKS LIKE. SO THIS IS-- AN AUGUST AVERAGE RESIDENTIAL BILL. YOU CAN SEE ON THE SERVICE DESCRIPTION THAT WE TYPICALLY SHOW A STANDARD OF ELECTRIC AT 1,000 KILOWATT HOURS. PLUS A PURCHASE COST ADJUSTMENT.
AND WATER AT 6,000 GALLONS. NATURAL GAS, THE STANDARD BILL IS 13CCFS. THESE QUANTITIES HERE ARE THE KILOWATT HOURS THAT WERE ACTUALLY THE AVERAGE IN OUR AUGUST BILLING. FOR ELECTRIC, $5,100 GALLONS FOR WATER AND WASTEWATER AS AN AVERAGE.
NATURAL GAS USAGE WAS 9.5 CCFS. WE ARE SHOWING THAT THE AUGUST BILL IS CALCULATED BASED ON THOSE QUANTITIES AT THE BILLING RATE THAT WE HAD GOING ON IN AUGUST.
THAT IS WHAT OUR CURRENT RATE IS IN SEPTEMBER AS WELL.
THE TOTAL BILL BEING $296.49. WHAT WE ARE PROPOSING ARE THE ADJUSTMENTS FOR ELECTRIC AND FOR NATURAL GAS.
YOU SEE THAT THE WATER AND WASTEWATER ARE STAYING THE SAME.
THAT IS NOT PART OF WHAT WE ARE DOING TODAY.
AND YOU CAN SEE THE CHANGE THE NET CHANGE IN EFFECT OF THIS ADJUSTMENT THAT WE ARE PROPOSING IS A- 5.24 BASED ON AUGUST AVERAGE CON SUSMTION. THAT AMOUNTS TO A REDUCTION OF 1.8% FOR ELECTRIC AND FOR GAS. THIS ALSO INCLUDES THE $9 REDUCTION THAT WAS JUST APPROVED FOR THE PCA.
THE OCTOBER PROPOSED BILL INCLUDES THE PCA WITH ZERO.
AND THE REDUCTION. THAT IS WHY YOUR PERCENTAGE CHANGED THERE. IT IS A NEGATIVE PERCENTAGE CHANGE. WITHOUT THE PCA, THE INCREASE ON ELECTRIC, I BELIEVE, WAS 2.4% OF AN INCREASE.
WE ARE APPLYING 7.07. WE DON'T APPLY IT TO THE WHOLE RATE. WE ONLY APPLY IT TO OUR COST.
OPERATIONAL COST. >> MADAM DISMAIR.
>> YES. >> IF I COULD JUST ENTER REAL QUICK. MS. MIKA, AM I SEEING THIS CORRECTLY? IF YOU AVERAGE THE BASE RATE REQUEST THAT STAFF IS ASKING US TO APPROVE NOW, OR THE BASE RATE INCREASE THAT STAFF IS ASKING US TO IMPROVE, ALONG WITH THE REDUCTION AND THE POWER COST ADJUSTMENT, THEN ACTUALLY, OUR CUSTOMERS WILL SEE A TOTAL REDUCTION IN THEIR BILL ONCE
ON ELECTRIC. THEN THE REDUCTION AT THIS POINT, EXCEEDS THE INCREASE WE ARE PROPOSING FOR GAS.
YES. IT IS AN OVERALL REDUCTION.
>> ONCE YOU AVERAGE THE TWO TOGETHER.
>> SO BASICALLY, I WANTED TO JUST TALK ABOUT THE AVERAGE-- THIS IS NOT THE STANDARD. THESE ARE THE AVERAGE CONSUMPTIONS. THERE IS NO CHANGE PROPOSED RIGHT NOW FOR THE WATER AND WASTEWATER.
THOSE REMAIN THE SAME. SO AT THIS POINT, I WANT TO THANK YOU. I COULD MAKE A RECOMMENDATION TO ADOPT THE RESOLUTIONS THAT WERE PRESENTED FOR THE CUSTOMER AND USAGE CHARGES FOR EACH OF THE SYSTEMS. ELECTRIC AND GAS. WITH AN EFFECTIVE DATE OF OCTOBER 1. THAT IS WHY WE ARE HERE.
>> THANK YOU, MR. CISNEROS AND MS. MIKA.
I WILL OPEN THE PUBLIC HEARING. IF ANY MEMBER OF THE PUBLIC WOULD LIKE TO BE HEARD ON EITHER OR BOTH OF THESE RESOLUTIONS,
[00:35:03]
PLEASE COME FORWARD NOW. PLEASE STATE YOUR NAME AND ADDRESS FOR THE RECORD WHEN YOU COME UP.YOU WILL HAVE THREE MINUTES TO PRESENT YOUR COMMENTS.
ANYONE AT THIS TIME? >> GOOD EVENING.
>> GOOD EVENING. >> MY NAME IS CYNTHIA ASHLEY.
MY ADDRESS IS 902 NORTH 19TH STREET HERE IN THE GET CITY OF FORT PIERCE. I HAVE HEARD SEVERAL THINGS HERE THIS AFTERNOON. I'M KIND OF CONFUSED, TO SAY THE LEAST. THE FIRST THING WAS THE REDUCTION THAT YOU WERE TALKING ABOUT.
THAT YOU WANT TO KEEP IT TO REMAIN AT ZERO.
WHICH IS GOING TO REDUCE OUR UTILITY BILL ABOUT $9.
AND NOW I'M HEARING THAT YOU WANT, AS FAR AS ELECTRIC AND GAS, AND I HAVE GAS, ELECTRIC, EVERY TENTY EVERY ENTITY THAT THE FORT PIERCE UTILITIES OFFER, I HAVE THAT.
I'M GOING TO BE AFFECTED IN EVERY WAY.
I'M A BUSINESS OWNER. I'M A HOME OWNER.
I'M A PROPERTY OWNER. TWOIF SETS OF UTILITIES BILLS THAT HAS TO BE PAID BY ME. I HEARD YOU SAY THAT A 7.7% INCREASE IS NOT THAT MUCH. WELL THAT, DEPENDS ON WHO IS SPEAKING. BECAUSE WHEN YOU ARE LIVING ON A FIXED INCOME, AND YOU ARE HAVING A PROBLEM PAYING YOUR UTILITY BILL NOW, A 7.7% INCREASE IS MAJOR.
I HAVE SEEN, BEING A BUSINESS OWNER, THAT BUSINESSES ARE LEAVING THE LINCOLN PARK AREA AND THE FORT PIERCE AREA BECAUSE OF AN INCREASE IN UTILITIES AND RENT.
AND IT SEEMS TO BE A SHAME TO ME, IF WE WANT TO BE A CITY THAT IMPROVES AND GROWS, IT IS GOING TO BE VERY DIFFICULT TO DO THAT WHEN YOU ARE STRUGGLING TO PAY YOUR UTILITIES BILL.
A 7.7% IN ELECTRIC AND GAS IS MAJOR TO ME.
I WANTED TO REALLY KIND OF PRESENT THAT AS WELL.
ANOTHER THING THAT I HEARD JUST NOW, THAT THE REDUCTION OF $9 A MONTH IS GOING TO OFF SETH OFFSET THE 7.7% INCREASE.
WELL, IF THAT WAS THE CASE THAT, MEANS IT WOULD STAY WHERE IT IS.
AND TO ME, I COULD WRONG, I WANT YOU TO CORRECT ME IF I AM.
IT DOESN'T APPEAR TO BE A REASON FOR THIS TO GO ON IF EVERYTHING IS GOING TO STAY THE SAME. IT APPEARS THAT THERE IS GOING TO BE AN INCREASE IN THE UTILITY BILL BECAUSE OF THAT 7.7%.
I UNDERSTAND THAT THE REASON FOR THE INCREASE, JUST LIKE EVERYBODY ELSE IN HERE AND THEIR LIVELIHOODS AND THEIR JOBS, AND THEIR INCOME THAT IS COMING IN, IT IS BECAUSE OF THE COST OF INFLATION, AND THE RISING COST OF-- TO OPERATE UTILITIES.
BUT EVERYTHING IS GOING UP. EVERYTHING IS INFLATED.
IT SEEMS THAT INCOME IS NOT GOING UP.
SO IT IS GOING TO BE VIRTUALLY IMPOSSIBLE FOR ANY INCREASE TO BE MADE WITH SOMEONE WHO IS NOT HAVING AN INCREASE IN THEIR INCOME. THANK YOU FOR LISTENING.
>> GOOD AFTERNOON. MY NAME IS FRANCIS WATSON.
MY ADDRESS IS 2300 SAN MARCOS AVENUE IN FORT PIERCE.
I WOULD LIKE TO SAY TO EVERYONE, IT IS IMPORTANT TO ME, FIRST OF ALL, TO SAY THIS IS MY FIRST TIME EVER ATTENDING A MEETING.
I HOLD THAT RESPONSIBILITY ON MYSELF, AND I WOULD LIKE TO SAY I'M ASKING THIS COMMISSION, THIS BOARD TO REJECT ANY PROPOSED FEES AT THIS TIME. IN OUR COMMUNITY.
FIRST OF ALL, THE EXPLANATION THAT THIS YOUNG LADY GAVE WAS EXCELLENT AND BEAUTIFUL, AND I STILL DON'T KNOW WHAT SHE SAID.
(LAUGHTER). >> YOU KNOW, THAT DOESN'T HELP ME COMPREHEND HOW IT IS GOING TO HELP ME AND MY COMMUNITY OR THE PEOPLE OF MY COMMUNITY. I HAVE NOTICED THAT AS THINGS CONTINUE TO RISE, THERE IS NO REMODELING OF THE METER THAT READS THE BILL OR THE THINGS THAT CAN MAKE A DIFFERENCE IN OUR COMMUNITY. MAYBE IT IS TIME TO UPGRADE WHAT YOU ARE USING IN OUR COMMUNITY SO WE CAN SEE HOW MUCH IT REALLY COSTS. MAYBE WE ARE USING OUTDATED
[00:40:03]
EQUIPMENT. TO SEE WHAT CAN AFFECT US AND WHAT IS AFFECTING US, THAT EVEN THOUGH THE BILL IS SUPPOSED TO GO DOWN, EVEN THOUGH I'M CUT CUTTING-- I'M PULLING THE PLUG ON ALL OF MY ELECTRICAL THINGS THAT I'M NOT USING.EVEN THOUGH I'M CUTTING MY LIGHTS OFF, MY BILL IS STILL GOING UP. IF THAT IS THE UNDERSTANDING I NEED. I DON'T HAVE THAT UNDERSTANDING.
AT THIS TIME, I'M ASKING YOU TO PLEASE CONSIDER REJECTING ANY PROPOSED INCREASE WHEN IT COMES TO OUR LIGHT BILL.
SO THAT WE CAN-- SO I ESPECIALLY CAN GET WITH SOMEONE.
AND YOU EXPLAIN TO ME, A LITTLE BIT, IN LAYMAN'S TERMS, SO I CAN KNOW WHAT YOU ARE SAYING ABOUT THE LIGHT BILL IN MY COMMUNITY.
I'M ON A FIXED INCOME. I'M 68.
I GET SOCIAL SECURITY. I'M OUT LOOKING FOR A JOB BECAUSE I CAN'T PAY MY LIGHT BILL.
I'M ASKING YOU TO PUT A HALT TO IT.
PLEASE CONSIDER-- I REMEMBER THE GENTLEMAN THAT PRAYED, AND HE PRAYED FOR FAVOR FOR THE PEOPLE THAT HAVE THESE ISSUES AND PROBLEMS. I'M ASKING YOU FOR FAVOR IN THIS PARTICULAR INCIDENT WHEN IT COMES TO RAISING THE BILL IN OUR COMMUNITY, IN THE CITY, WHEN IT COMES TO OUR LIGHT BILL.
PLEASE REJECT ANY PROPOSED FEE RAISES AT THIS TIME.
>> GOOD AFTERNOON. MY NAME IS KATIE HOWARD.
I LIVE AT 1711 NORTH 25TH STREET.
APARTMENT 4, FORT PIERCE, FLORIDA.
34947. I AM ALSO IN AGREEMENT WITH MS. ASHLEY AND MS. WATSON AS WELL.
I AM-- I HAVE A DISABILITY AS WELL.
I HAVE HAD TO IN THE LAST MONTH, FIND PART-TIME EMPLOYMENT AS WELL. I'M ON FIXED INCOME AS WELL.
I'M NOT AT MY HOUSE FIVE DAYS A WEEK FROM 8:00 A.M. TO AT LEAST 4:30 OR 5:00. I COME HOME, I SHOWER.
I MAYBE HAVE A LITTLE SALAD OR SOMETHING.
MY TV IS ON FOR MAYBE AN HOUR, TWO HOURS AT THE MOST.
I KEEP MY A.C. BETWEEN 75-78. BUT EVERY TIME I CALL THE UTILITY PLACE AND I ASK, WHY AM I RECEIVING A BILL FOR THIS TYPE OF AMOUNT, WHEN I'M NOT EVEN HERE, ALL DAY LONG.
WHO IS USING ELECTRICITY? NO ONE IS THERE.
I'M TOLD, AS SHE STATED, THE BASE RATE THAT EACH PERSON IS CHARGED OR SOMETHING TO THAT EFFECT, BUT CAN I BE CHARGED THAT IF I'M NOT USING THE BASE RATE? THAT IS-- THE PEOPLE IN YOUR AREA, THEIR AVERAGE BILL IS ABOUT SUCH AND SUCH AND SUCH. BUT IF I'M NOT HOME USING THE SAME ELECTRIC AS THE PEOPLE IN MY AREA, OR IN MY BUILDING, HOW CAN I KEEP BEING CHARGED FOR THAT? IT IS VERY FRUSTRATING WHEN I'M NOT EVEN HOME.
FIVE DAYS A WEEK. I'M NOT EVEN THERE.
I'M AWAKE ABOUT AN HOUR, TWO HOURS AT THE MOST WHEN I COME HOME. I'M STILL BEING CHARGED.
THIS IS THE AVERAGE RATE OR THE AVERAGE BILL FOR YOUR NEIGHBORHOOD. OR YOUR COMMUNITY.
BUT I'M NOT USING THAT. SO I NEED HELP WITH THAT.
LIKE SHE SAID, MS. WATSON. IN LAYMAN'S TERMS. WHY AM I BEING CHARGED FOR UTILITIES THAT I'M NOT EVEN
THERE USING? >> I'M REJECTING ANY TYPE OF INCREASES AS WELL. I DON'T HAVE IT.
I CAN'T AFFORD IT. I DON'T HAVE A JOB THAT IS PAYING ME, YOU KNOW, BIG MONEY. YOU KNOW, LIKE SOME PEOPLE, I'M TRYING TO LIVE. I'M TRYING TO SURVIVE.
THEY CAN NEVER TELL ME WHY AM I BEING CHARGED THIS AMOUNT WHEN I'M NOT EVEN CONSUMING THE ELECTRIC THAT THEY ARE SAYING? I'M BEING CHARGED FOR RESIDENTIAL GARBAGE.
I DON'T EVEN HAVE GARBAGE CANS. I GO AND TELL THEM ABOUT IT.
YOU KNOW, IT IS ALWAYS SOMETHING THAT THEY TELL ME.
I JUST NEED HELP WITH THAT. THANK YOU.
>> HELLO. MY NAME IS DR. WALTER CAMPBELL.
I LIVE AT 1102 NORTH 14TH STREET.
I HAVE THREE KIDS. I'M MARRIED.
IT IS KIND OF DIFFICULT TO PAY A $500 LIGHT BILL WITH THREE CHILDREN IN THE HOUSE AND TRYING TO MANAGE TO PUT FOOD IN THE HOUSE. WHEN I GO TO THE GROCERY STORE, I SPEND ABOUT $500 THERE. JUST TO FILL UP THE
[00:45:05]
REFRIGERATOR. FOR ME TO TURN AROUND AND PAY A $500 LIGHT BILL, SOMETIMES IT IS BETTER.THEN GO TO THE GROCERY STORE TO MAKE SURE THEY EAT AND PROVIDE FOR THEM, THAT IS NOT POSSIBLE. BECAUSE THEN I HAVE TO PAY MY CAR NOTE. THAT RUNS ME ABOUT $700, $900.
THAT IS NOT POSSIBLE TO LIVE OFF SOMETHING.
MY WIFE IS A SCHOOLTEACHER. I RUN A NONPROFIT HERE.
I CAN'T HELP THE COMMUNITY WHEN Y'ALL ARE TAKING OUT OF MY HOUSE. THERE IS NO WAY.
I TURNED TO THE CITY FOR HELP. I GET NO RESPONSE.
I'M ASKING YOU TO PLEASE SHOW FAVOR ON US.
NO MATTER HOW MUCH WE MAKE, NO MATTER WHAT OUR CREDIT SCORE MAY LOOK LIKE, THOSE DIFFERENT THINGS.
BECAUSE HONESTLY, THAT STUFF DON'T EVEN COUNT NOW.
EVERYTHING IS SO HIGH. THEY DON'T CARE HOW MUCH YOU MAKE. THE FOOD IN THE GROCERY STORE IS RIDICULOUS. HAVE YOU BOUGHT A PIECE OF CHICKEN LATELY? IT IS RIDICULOUS HOW MUCH CHICKEN COSTS. SO PLEASE, DON'T PASS THE BILL.
MY NAME IS DARLENE MILLER. I LIVE AT 308 NORTH 20TH STREET HERE IN THE GREAT CITY OF FORT PIERCE.
I MYSELF ALSO HAVE CONCERNS. I'M MARRIED.
MY HUSBAND IS 81 YEARS OLD AND IS STILL HAVING TO WORK PART-TIME TO SUFFICE FOR OUR BILL.
YOU MENTIONED THE $7 MILLION. TWO MONTHS IS WHAT THE GENTLEMAN SAID. SO I DON'T SEE WHERE THAT IS REALLY GOING TO BENEFIT US FOR TWO MONTHS.
IT IS SUPPOSED TO BE $9 REDUCTION.
BUT STILL WE ARE ADDING. AND THEN ALL THESE OTHER FEES.
WE PAY FOR WASTEWATER. IT IS A FEE FOR WASTEWATER.
GARBAGE. THERE IS A FEE FOR GARBAGE.
WE PAY FOR RECYCLE. THERE IS A FEE FOR RECYCLING.
WHERE IS IT HELPING US? I DEFINITELY AGREE WITH MR. CAMPBELL, ASHTON, AND WATSON, AND THE GENTLEMAN THAT WAS JUST UP HERE. WE KEEP OUR AIR-CONDITIONER BETWEEN 76-78, AND SOMETIMES AT NIGHT, WE TURN IT OFF BECAUSE THE BILL IS CONSTANTLY RISING. I'M NOT A TV PERSON.
IT IS NOT ON DURING THE DAY. WE DON'T WATCH TV LIKE THAT.
AS THE LADY STATED, WHEN HAS THE EQUIPMENT AT OUR HOMES OR IN OUR AREAS BEEN CHANGED? AND THE SAME THING APPLIES.
WE DON'T USE POWER LIKE THAT. BUT WE HAVE OTHERS IN THE NEIGHBORHOOD. SO WE ARE-- OUR ELECTRICAL BILL IS BASED ON WHAT OTHERS ARE DOING? IS THAT FAIR? WOULD YOU REALLY WANT THAT? LIKE THE GENTLEMAN SAID, HIS FAMILY HAS TO GO-- LIKE, YOU HAVE TO DECIDE BETWEEN FEETING YOUR FAMILY AND PAYING YOUR BILL. DEFINITELY YOU DON'T GET NO LONG EXTENSIONS. YOU MAY GET A DAY OR TWO EXTENSION. AND EVEN IF YOU GO IN AND TALK TO SOMEONE, IT IS THE SAME STUFF OVER AND OVER AND OVER AGAIN.
YOU TALK ABOUT BASE RATE AVERAGE.
YOU LIVE IN A NEIGHBORHOOD, SAYING-- YOU ARE A SENIOR.
YOU LIVE IN A NEIGHBORHOOD WITH ALL THESE YOUNG PEOPLE BLASTING MUSIC LATE AT NIGHT, FIVE, SIX, SEVEN HOURS.
2:00, 3:00 IN THE MORNING. YOUR BILL ALSO SUFFERS BECAUSE OF WHAT THEY ARE DOING. IS THAT FAIR TO US? IS IT FAIR? AND ALL THIS THAT WE HAVE TO DEAL WITH. WE ARE ON A FIXED INCOME.
I'M ON DISABILITY. AND HE STILL HAS TO WORK EVEN WITH THE SITUATION AS IT IS. WE SUFFER DURING THE NIGHT.
IT IS HOT IN THE HOUSE. YOU ARE TRYING TO FORFEIT AT LEAST A LIGHT LUXURY OF HAVING TO BE WITH THE WARM.
I AGREE WITH THE OTHERS. THIS BILL SHOULD BE REJECTED.
THEY ARE NOT THE ONES SUFFERING. WE ARE.
MY NAME IS JANERA LOVETT. I LIVE IN FORT PIERCE, FLORIDA.
I HAVE NOTICED AN INCREASE IN MY BILL.
I WENT TO THE CITY OF FORT PIERCE FOR A WEATHERIZATION.
THEY CAME IN ANY HOME. THEY PUT IN A COUPLE OF DOORS.
MAYBE THEY FIXED THE SINK. AFTER THAT, MY BILL WAS $350.
[00:50:03]
IT AIN'T NOBODY BUT ME. MY GRANDCHILDREN DON'T COME OVER ANY MORE. HOW CAN I PAY THIS ON A DISABILITY CHECK? YOU KNOW WHAT I MAKE.YOU CAN COME IN MY HOME AND TELL ME, OKAY.
I KNOW WHAT SHE MAKES. JUST LET HER LIGHT BILL BE THIS MUCH. COME ON TO $350.
I DON'T THINK THAT IS POSSIBLE. I AGREE WITH EVERYBODY ELSE.
WE NEED FAVOR. IT IS NOT FAIR F TO ME TO LIVE LIKE-- I SHOULDN'T LIVE BECAUSE YOU ALL WANT TO RAISE THE RATE.
FORT PIERCE UTILITIES ARE DRIVING AROUND IN BRAND NEW TRUCKS. WITH AIR-CONDITIONING.
I DON'T THINK IT IS FAIR TO ME. THAT IS WHERE MY MONEY IS GOING.
Y'ALL SHOULDN'T PASS THIS BILL. ALSO SOME PEOPLE COMING AROUND SELLING AIR-CONDITIONING, SAYING I KNOW YOUR UTILITY IS HIGH.
UPGRADE YOUR UNIT. TRYING TO LOWER YOUR LIGHT BILL.
I'M LIKE THE MAN, THE GENTLEMAN SAID.
UPGRADE THE METERS. UPGRADE THE SYSTEM.
PUT THE MONEY THERE. INSTEAD OF ALL THESE NEW TRUCKS AND COMPUTERS INSIDE OF THE TRUCKS.
HELP US FAVOR. ALL I'M ASKING.
IT IS NOT FAIR THAT I DON'T HAVE ANY MONEY LEFT OUT OF MY DISABILITY CHECK TO DO ANYTHING WITH.
I WILL ASK Y'ALL NOT TO INCREASE THIS BILL SO WE ALL CAN LIVE AND LET THIS COMMUNITY BUILD UP TOGETHER AS A COMMUNITY SHOULD BE BUILT. NOT EVERYBODY WANT TO BE GREEDY.
>> MY NAME IS MARJORIE HARRELL. I LIVE AT 1529 AVENUE D.
34950. WHAT THEY ALL SAID I LOVED BECAUSE I COULD HEAR IT, FIRST OF ALL.
I COULDN'T HEAR MOST OF YOU TALKING.
BUT I'M GOING TO TELL YOU A STORY.
I HOPE I HAVE THE TIME. I USED TO LIVE ON DUN BAR DUN BARR IN THE CITY. THE LIGHT BILL WAS HIGH.
AND IT WAS-- ALONG WITH EVERYBODY ELSE.
THEY TOLD ME TO COME DOWN. THEY WOULD CHECK IT OUT.
THEY SAID YOU ARE PAYING WHAT EVERYBODY ELSE IS PAYING.
SO I WOULD TAKE-- DISCONNECT EVERYTHING IN THE HOUSE BEFORE I WENT TO TEACH SCHOOL. I WOULD STAY DISCONNECTED WHEN I CAME HOME. MY BILL STILL WAS THE SAME.
UNTIL I WENT DOWN AND TOLD THEM DO, YOU UNDERSTAND ME? I AM DISCONNECTING EVERYTHING IN THE HOUSE.
SO IT CAN'T BE USING UTILITIES. MY BILL WENT DOWN.
BUT IT DIDN'T GO DOWN BECAUSE I WAS USING A LITTLE BIT OR USING NOTHING. THE AIR-CONDITIONING WASN'T WORKING. I DIDN'T USE IT.
I WAS HOT IN THE HOUSE. S IF YOU GO UP ON OUR BILL NOW THAT I'M RETIRED, I DON'T KNOW WHAT I'M GOING TO DO.
BECAUSE I DON'T USE A THING. I CUT THE AIR-CONDITIONING OUT.
AT NIGHT. I USE A CEILING FAN.
AND THE BILL IS STILL HIGH. SO WHAT DO WE DO? WHAT DO WE DO? IF YOU GO UP ON OUR BILLS.
WE WON'T BE ABLE TO HAVE LIGHTS. WHEN YOU DON'T HAVE LIGHTS, THEY COME TO YOU. AND YOU HAVE TO ADJUST IT FOR THEM. ADJUST IT NOW.
DON'T GO UP AND SEE WHAT WE CAN DO.
ONE THING ABOUT IT. THE LINCOLN PARK COMMUNITY, WHERE BLACK FOLKS LIVE AND NOT WHITE FOLKS, TOO, THERE IS A DIFFERENCE BETWEEN THE BILL AND THE BILL ACROSS TOWN.
(APPLAUSE). >> GOOD AFTERNOON.
[00:55:19]
MY NAME IS PEARL LIVERPOOL. I LIVE AT 2006, AVENUE Q, FORT PIERCE, 34950. NO NEED TO NECESSARILY ECHO EVERYTHING THAT EVERYONE ELSE HAS SAID.WITH REGARDS TO HOW IT PERSONALLY AND INDIVIDUALLY MAY AFFECT THEM. AS WELL AS THEIR OPERATING EXPENSES FOR THEIR BUSINESSES. JUST BASED UPON PREVIOUS.
BUT I KNOW THAT THROUGHOUT THE YEARS THAT I HAVE LIVED IN THIS AREA, IT HAS ALWAYS BEEN A RELIEF TO GET BEYOND THESE SUMMER MONTHS SO THAT YOU COULD MOVE FORWARD AND HAVE A LITTLE EXTRA IN YOUR POCKET. I COULD RECALL EVERYONE TALKING ABOUT YOU BETTER STAY ON TOP OF YOUR TEMPERATURES SO YOU DON'T HAVE TO DO A WHOLE LOT OF TEMPERATURE ADJUSTMENTS.
DURING THE SUMMER MONTHS. YOU KNOW, TAKING MULTIPLE SHOWERS, LIKELY, BECAUSE WEATHER IS A LITTLE-- WATER IS A LITTLE CHEAPER THAN ELECTRICITY. WHEN YOU SPEAK OF OCTOBER, WE ARE NOT GOING TO GIVE YOU THAT BREAK.
IT IS DISAPPOINTING. WHEN YOU SPEAK OF UTILIZING INDUSTRY AVERAGES IN ORDER TO ADDRESS WHAT OUR COST SHOULD BE, WE ARE NOT AVERAGE IN THE INDUSTRY.
RECENT CENSUS NUMBERS IMPLY TO YOU THAT WE ARE BELOW WHEN IT COMES TO INCOME. WE ARE VERY MUCH BELOW.
AND WE HAVE RECENT CENSUS NUMBERS TO UTILIZE TO CREATE A PART OF OUR FORMULA WHEN WE MAKE OUR ADJUSTMENTS THAT WILL AFFECT THE CONSUMERS FOR THE PRODUCT THAT YOU ARE PROVIDING.
AND I WOULD LIKE THE SEE A CONSIDERATION OF THAT WHEN YOU ARE TALKING ABOUT HOW YOU FORM LATE YOUR ANALYSIS AS TO WHAT SHOULD BE CHARGED WHICH IS VERY LIKELY HOW EVERY UTILITY COMPANY DOES IT. BUT THE BOTTOM LINE IS WE ARE NOT AVERAGE. SO INDUSTRY AVERAGE DOES NOT AFFECT OUR POCKETS. WHRIEK IT DOES THE AVERAGE INDUSTRY. THE INDIVIDUAL.
OR CONSUMER. OF THE PRODUCT YOU PROVIDE.
I REALLY WOULD LIKE TO ASK THAT YOU GIVE CONSIDERATION TO THE CONSUMERS THAT YOU ARE PROVIDING SERVICES TO.
AND THE AVERAGE INCOME IN THE AREA THAT YOU ARE PROVIDING THE SERVICES. IF YOU WERE TO ADD SOMETHING TO THAT EFFECT TO THE FORMULA, IT IS VERY LIKELY IT WOULD BE MORE CONDUCIVE TO WHAT IS AFFORDABLE AND PEOPLE CAN LIVE COMFORTABLE IN THE AREA. THANK YOU SO MUCH.
>> WILL THERE BE ANYONE ELSE? >> GOOD EVENING.
MY NAME IS SARAH GEORGE. I LIVE AT 517 NORTH 12TH STREET, FORT PIERCE, FLORIDA. I'M HERE BECAUSE OF THE COMMUNITY AS WELL. I A I GREE WITH ALL THAT HAS BEEN SAID PRIOR TO MY COMING UP HERE.
I'M A SINGLE PERSON, AND MY BILL LOOKED LIKE THAT BILL THAT WAS UP THERE. $290-SOMETHING.
THAT IS QUITE A BIT FOR JUST MYSELF, AND I'M HARDLY EVER AT HOME. I ALSO WANTED TO ASK A QUESTION, TOO. BECAUSE MY SISTER LIVES AT 707 NORTH 19TH STREET. SHE GOT THE PANELS FOR THE ELECTRIC TO GO DOWN AT HER HOUSE.
IT WENT UP. ARE YOU HONORING THOSE PANELS THAT THEY ARE SAYING WE CAN GET TO HELP WITH OUR ELECTRICITY, SO IT WON'T BE AS MUCH AS, YOU KNOW, OTHER PEOPLE? SO YOU KNOW, I WOULD LIKE TO ASK THAT QUESTION AND GET AN ANSWER.
YES OR NO. >> WHAT WE CAN DO, MA'AM, IS RECAN HAVE WE CAN HAVE YOU MEET WITH MR. CISNEROS.
HE WILL BE ABLE TO DIRECT YOU TO THE APPROPRIATE PERSON TO TALK TO, AND AT A LATER TIME. RIGHT NOW WE REALLY HAVE TO LISTEN, AND WE CAN'T GO BACK AND HAVE DIALOGUE.
AT THIS TIME. WE WILL BE ABLE TO SPEAK WITH YOU AT A LATER DATE AT THE OFFICE.
>> OKAY. I WAS WONDERING, TOO, THE
[01:00:01]
PROPERTIES THAT ARE IN FORT PIERCE, THEY ARE BEING BOUGHT BY OTHER PEOPLE. THEY ARE NOT LIVING HERE IN FORT PIERCE. AND THEY ARE RENTING THEM OUT TO US, AND NOW YOU KNOW, MAY THE THEY UPGRADE THE HOUSE, RENOVATE THEM SO WE CAN PAY MORE RENT. YOU KNOW, IF WE PAY MORE RENT, THEN WE PAY MORE IN ELECTRICITY. LIKE EVERYBODY ELSE WAS SAYING, YOU KNOW, ELECTRICITY IS ALREADY TOO HIGH.WE GO THERE. WE STAND IN LINE.
WE GIVE OUR PERSONAL INFORMATION TO TRY TO GET OUR BILLS REDUCED, GET THE REDUCTION ON IT. YOU KNOW, I DON'T THINK THAT IS FAIR THAT WE WOULD HAVE TO DO THAT IF WE COULD HAVE OUR LIGHT BILLS REDUCED. IN A WAY WE CAN AFFORD TO PAY OUT OF OUR POCKETS. YOU KNOW, INSTEAD OF GOING TO STAND IN LINE. I HATE THAT.
I KNOW EVERYBODY IN THE COMMUNITY PROBABLY HATES THAT AS WELL. I JUST WANTED TO ADDRESS THAT AS WELL. IF YOU WOULD TAKE THAT INTO CONSIDERATION AND PLEASE, DO NOT INCREASE OUR ELECTRIC OR OUR WATER. I DON'T HAVE GAS.
YOU KNOW, KEEP THAT IN CONSIDERATION.
>> ANYONE ELSE? SEEING NO ONE ELSE, THE PUBLIC HEARING IS NOW CLOSED. I WILL TURN IT OVER TO THE BOARD FOR DISCUSSION. DOES ANYONE ON THE BOARD LIKE TO HAVE SOMETHING TO SAY AT THIS TIME.
>> MADAM DISMAIR MR. CISNEROS, JUST A QUESTION.
>> SPEAK UP SO WE CAN HEAR. >> LY DO MY BEST, MA'AM.
>> THAT IS WHAT THE MICRO MICROPHONE --
>> YOU CAN HEAR ME WITHOUT THE MIC.
CAN YOU HEAR ME NOW? ALL RIGHT, PERFECT.
WITH REGARD TO OUR BOND COVENANTS, WHEN WE TOOK OUT THE MONEY IN ORDER TO IMPROVE THE INFRASTRUCTURE AND ALSO DO THE WASTEWATER PLANT, DOES THE BOND COVENANTS REQUIRE US TO RAISE IN ACCORDANCE TO THE INDEX RATE WHICH WE ARE DOING TODAY? BECAUSE I SEEM TO HAVE A RECOLLECTION THAT IF IT IS NOT IN THERE AS A REQUIREMENT, THAT PERHAPS IT WAS A REPRESENTATION THAT WE MADE TO THEM THAT WE WOULD CONTINUE TO RAISE RATES BASED ON THE INDEX RATE. BUT MY NEXT QUESTION IS IF WE HAVE AGREED TO RAISE IT PER THE INDEX RATE, ARE WE REQUIRED TO DO THE FULL INDEX RATE? CAN WE DO ANOTHER AMOUNT AND STILL BE IN COMPLIANCE WITH OUR BONDNANTS? OR ARE WE REQUIRED TO DO WHATEVER THEY PUBLISH?
>> MR. FEE, MADMADAM CHAIR, AND THE BOARD.
>> YES. >> THE BOND RESOLUTION DOES HAVE AN INDEX PROVISION BUILT INTO THE RESOLUTION OR BUILT INTO THE BOND COVENANT. THE INDEX PROVISION WAS THERE BEFORE WE ISSUED THE BOND LAST YEAR.
IT WAS-- WE HAVE ALWAYS HAD THAT.
WE HAVE DONE WHAT I WOULD CONSIDER NOT NECESSARILY A VERY GOOD JOB OF APPLYING THE INDEX EACH AND EVERY YEAR.
THAT IS WHY WHEN YOU GO THROUGH A STUDY EVERY FIVE SEVEN YEARS, YOU HAVE A RATE SUFFICIENCY ADJUSTMENT.
THAT ENDS UP BEING A RATE SHOCK. RIGHT? THIS INDEX IS TO PREVENT, AVOID, PROACTIVELY KEEP UP WITH THE COST OF INFLATION SO YOU DON'T HAVE TO MAKE AN ADJUSTMENT, A LARGER ADJUSTMENT IN THE FUTURE. NOW YOU ARE PLAYING CATCH-UP.
TO ANSWER YOUR QUESTION, IT IS IN THE BONDNANT, TO ADDRESS THE INDEX. THERE WAS A CONSIDERATION FOR A SMALLER AMOUNT OR A LESSER AMOUNT THAN THE 7.07.
I WOULD BE CAUTIOUS OF. THAT WE ARE TALKING ABOUT AN INFLATION NUMBER THAT IS ALMOST A TWO-YEAR LAG BEHIND WHERE WE
ARE AT RIGHT NOW. >> SO THE REASON WHY IT IS AT 7% IS BECAUSE EVERYBODY IS CATCHING UP.
>> RIGHT. THAT IS TYPICALLY-- AND I THINK IT IS IMPORTANT TO NOTE THAT TYPICALLY, IF INDEX, THE FLORIDA PUBLIC SERVICE COMMISSION INDEX IS ANYWHERE FROM 1% TO 1.5%.
THE LAST COUPLE OF YEARS, THE INDEX HAS CERTAINLY BEEN MUCH HIGHER THAN WHAT WE TYPICALLY WOULD SEE.
SO THAT IS AN IMPORTANT-- THAT IS IMPORTANT TO NOTE.
THE INDEX IS USUALLY 1% TO 1.5%. IF WE WOULD HAVE DONE THAT MORE CONSISTENTLY OVER THE LAST 10-12 YEARS OR SO, WE WOULD, YOU KNOW, NOT BE EXPERIENCING WHAT WE DID LAST YEAR.
THIS INDEX IS SPECIFICALLY IMPORTANT TO MAINTAIN.
FOR US TO BE ABLE TO OPERATE THE UTILITY.
>> I WOULD BE CONCERNED ABOUT VOTING NO IN THE FACE OF AN INDEX REQUIREMENT IN THE BOND COVENANT.
[01:05:01]
THAT WOULD BE MAKING A PUBLIC STATEMENT TO OUR BONDHOLDERS, HEY, WE ARE NOT GOING TO FOLLOW OUR C.>> YES. >> SO I DON'T SEE WHERE WE REALLY HAVE ANY FLEXIBILITY IN THIS REGARD.
ESPECIALLY IT IS IN THE-- I MEAN, WE SIGNED FOR IT.
WE HAVE TO FOLLOW IT. IN YEARS PAST, YOU ARE TELLING ME THAT THE INDEX HAS BEEN HIGHER.
>> THE INDEX HAS BEEN LOWER. >> LOWER?
>> ABOUT 1% TO 1%, HISTORICALLY OVER THE LAST 10-15 YEARS.
MAYBE 20 YEARS. >> I BELIEVE THIS WAS THE HIGHEST RATE THAT WE HAVE SEEN SINCE INCEPTION.
>> THIS IS AN UNUSUAL SITUATION. >> YES.
>> 2022 WAS CATCHING UP WITH 2020 AND 2021.
AND 2024 IS CATCHING UP WITH 2022 AND 2023.
THESE ARE DEFINITELY THE HIGHEST THE PUBLIC SERVICE COMMISSION
HAS ADOPTED. >> THE WAY I LOOK AT IT, WE ARE ONLY APPLYING THIS TO A SMALL PORTION OF THE RATE.
>> WE ARE APPLYING IT TO THE FPUA OPERATIONAL PORTION OF THE RATE. NOT TO THE PURCHASE POWER OR
POWER COST ADJUSTMENT. >> THAT IS WHERE IT GETS REALLY HARMFUL. WHEN YOU APPLY IT TO THOSE
>> IN THIS CASE, WHAT WE HAD FOR OUR PRESENTATION, WE HAD AN AVERAGE ESSENTIALLY. IT IS NOT WHAT EVERYBODY WAS
>> IT IS JUST AN AVERAGE FOR US TO LOOK AT.
>> IT IS AN AVERAGE FPUA UTILITY RESIDENTIAL BILL.
YES, SIR. >> THE AVERAGE IS ROUGHLY ABOUT $40 RIGHT NOW. THAT IS WHAT EVERYBODY IS BEING CHARGED. AS I RECALL FROM THE --
>> SO NO. THAT FPUA OPERATIONAL, THAT IS A
>> THE PURCHASE POWER IS WHAT FLUCTUATES AS THE PRICE OF GAS INCREASES OR LOWERS. YOU KNOW, WE INCREASE OR LOWER THE DOLLAR AMOUNT ABOVE OR BELOW THE $79.52.
>> WHAT PORTION ARE WE APPLYING THE 7%?
>> TO THE $40. CAN YOU GO BACK TO THE SLIDE, BARBARA? $40.96.
>> THAT IS THE COST OF FPUA OPERATIONS?
>> YES, SIR. >> SO WE ARE ONLY APPLYING 7% TO THAT $40 WHICH IS ROUGHLY AN INCREASE OF HOW MUCH?
GIVE ME A FIXED DOLLAR SO EVERYBODY IN THE AUDIENCE CAN
$1.30. >> PER THOUSAND KILOWATTS.
SO IF A PERSON WAS SPENDING $HAD 2,000 KILOWATTS ON THEIR BILL, I IT WOULD GO UP TO $2.6/0. INCREASE ROUGHLY.
>> YES, SIR. I'M GOING TO DO THE MATH HERE REAL QUICK. CORRECTION.
IT IS $2.93. ON THE 7% ON THE $40.
>> $2.939 FOR EVERY THOUSAND KILOWATTS.
>> YES, SIR. >> SO WE ARE NOT LOOKING AT A BILL THAT IS GOING TO GO UP $15, $20.
WE ARE TALKING A VERY SMALL MANAGEABLE AMOUNT.
YOU CAN'T EVEN BUY A CHEESEBURGER FOR THE INCREASE.
PUT IT THAT WAY. >> FOR THE THOUSAND KILOWATT HOUR. IT IS IMPORTANT TO MENTION IT IS PER THOUSAND. YES, SIR.
>> ANY OTHER QUESTIONS? >> AND MADAM CHAIR?
YOU SAID THAT WAS $2.93. >> ON THE ELECTRIC.
>> PER THOUSAND KILOWATT. >> YES, MA'AM.
>> YUP. MADAM CHAIR, I WAS GOING TO ALO CLARIFY. BECAUSE EVERY BILL IS DIFFERENT.
AND EVERY HOUSEHOLD IS DIFFERENT.
>> AND SO MAYBE I MISUNDERSTOOD SOME OF THE SPEAKERS.
I THOUGHT THAT THEY WERE SAYING THAT OUR CUSTOMER SERVICES WERE TELLING THEM THEIR BILL IS BASED ON THEIR NEIGHBOR-- WHAT THEIR NEIGHBOR WAS DOING. MAYBE I MISUNDERSTOOD.
COULD YOU EXPLAIN THAT A LITTLE BIT?
>> EVERY CUSTOMER THAT HAS AN INDIVIDUAL METER GETS BILLED ON THE CONSUMPTION ON THAT METER. YOU SHOULDN'T BE AFFECTED BY,
YOU KNOW, ANYBODY ELSE'S -- >> WHATEVER YOUR USAGE-- THAT IS GENERATING WHATEVER. I WOULD LIKE IT CLARIFIED, WE HAVE A NUMBER OF-- A WHOLE PROCESS WHERE WE ARE PUTTING IN
NEW METERS THROUGHOUT THE CITY. >> WE ARE.
>> IS THAT CORRECT? >> YES, MA'AM.
WE STARTED THIS ABOUT FIVE MAYBE SIX YEARS AGO.
WE DID A PROJECT WHERE WE ARE REPLACING OLD METERS WITH NULLER METERS SO WE CAN PROVIDE THE CONSUMPTION INFORMATION TO OUR CUSTOMERS VERY DETAILED, DOWN TO I THINK IT IS A FIVE-MINUTE INTERVAL SO CUSTOMERS CAN SEE THEIR CONSUMPTION OVER A PERIOD OF A DAY. A PERIOD OF A MONTH.
A YEAR. WE DO PLAN ON BRINGING BACK TO THE BOARD A PROJECT TO EXPEDITE THAT PROJECT.
FOR THE ELECTRIC AND GAS SYSTEM. AND THE PROJECT INCLUDED
[01:10:01]
ELECTRIC, GAS, AND WASTEWATER. WE ARE GOING TO MOVE AS FAST AS WE CAN ON THE ELECTRIC AND GAS SIDE.WE ARE GOING TO LOOK AT THE TECHNOLOGY FOR THE WATER, WASTEWATER SIDE AND REEVALUATE THAT.
>> FOR THE PEOPLE ASKING LEGITIMATE QUESTIONS ABOUT WHY THEY HAVE BILLS THAT THEY DON'T UNDERSTAND AND THEY WANT TO UNDERSTAND AND THEY WANT A BETTER EQUIPMENT, THAT IS EITHER COMING SOON, AND IS THERE SOME WAY THAT SOMEONE COULD KEEP TRACK OF THE PEOPLE THAT TALKED TODAY AND EXPLAIN TO THEM HOW THEY NOT ONLY CAN FACTOR IN WHAT THEY ARE USING AND WHY IT IS AND HOW THEY CAN REDUCE IT. AND ALSO IT IS MY UNDERSTANDING, THIS HAS BEEN STUDIED SEVERAL TIMES BY OUTSIDERS, BUT ALSO THE COMPANY CHARGES THE SAME NO MATTER WHERE YOU LIVE.
>> RIGHT. >> THE SAME EXACT PRICE NO MATTER WHERE YOU LIVE. THE ONLY REASON YOUR PRICE DIFFERS IS IF YOU USE MORE OR YOU USE LESS.
>> WE DO HAVE TARIFFS. THOSE TARIFFS ARE BASED ON THE CONSUMPTION FOR RESIDENTIAL, COMMERCIAL, COMMERCIAL LARGE DEMAND. WE HAVE A TARIFF FOR CUSTOMERS.
THERE ARE TAXES AND STUFF THAT WE HAVE TO PAY.
>> I'M TALKING ABOUT PER KILOWATT HOUR.
>> PER KILOWATT HOUR. IT IS A STANDARD FOR RESIDENTIAL
SO I JUST WANT TO MAKE SURE I UNDERSTAND THAT.
AND LET ME SEE. I TOOK SOME NOTES.
SO I COULD-- I WANTED TO MAKE SURE THAT EVERYBODY UNDERSTOOD WHAT I UNDERSTOOD. WHICH IS WHEN WE SAY THE AVERAGE BILL THAT, DOESN'T MEAN THAT-- THAT MEANS WE TOOK A WHOLE BUNCH OF CUSTOMERS AND AVERAGED IT OUT.
ALL OF THE ELECTRIC CUSTOMERS. AND AVERAGED IT OUT.
RIGHT? >> FOR RESIDENTIAL, WE DID TAKE AN AVERAGE FORT PIERCE RESIDENTIAL CUSTOMER.
>> EVERYBODY HAS A DIFFERENT BILL.
EVERYBODY HAS DIFFERENT USAGE. >> I THINK-- WE ARE NOT TAKING EVERYONE'S OWNERSHIP AND AVERAGING AND THEN BILLING THE
AVERAGE TO THE CUSTOMER. >> RIGHT.
>> ALL WE DID WAS TAKE A SAMPLING OF A VARIETY OF BILLINGS AND AVERAGED THEM TOGETHER FOR THE PRESENTATION.
WE COULD PUT TOGETHER SOMETHING I WOULD UNDERSTAND ONCE YOU
PRESENT THE MATERIAL. >> OKAY.
>> AND ALSO, FROM MY UNDERSTANDING, IS THAT SHE TOOK A THOUSAND KILOWATT PER HOUR. IT WAS 1,000 KILOWATTS PER HOUR.
>> MADAM CHAIR, I ALSO WANT TO SAY, TOO, IF SOMEONE IS CHARGED GARBAGE AND DOESN'T HAVE A GARBAGE CAN, THAT IS THE CITY OF FORT PIERCE. THAT IS NOT FPUA.
I WILL BE HAPPY TO FIND THE NUMBER OF THAT PERSON TO GET THAT RECTIFIED. AND THAT IS ONE OF THE PROBLEMS WE HAVE WITH OUR FPUA BILL. WE ACKNOWLEDGE IT IS A PROBLEM.
IT IS NOT OUR PROBLEM. IT IS THE CITY OF FORT PIERCE-- THEY BILL THE GARBAGE ON THE FPUA BILL.
ALL OF THOSE CHARGES COME ON THE SAME BILL.
AND SO MANY PEOPLE THINK THAT THEIR ELECTRICITY WHEN THEY COMPARE THEIR BILL, THEIR ELECTRICITY BILL, THEY COMPARE THE WHOLE BILL TO SOMEBODY ELSE'S BILL.
THE FLORIDA POWER AND LIGHT. WHATEVER.
THWHICH IS ONLY ELECTRICITY. OFF NUMBER OF SERVICES ON THE ONE BILL, AND SOMETIMES THAT CAN MAKE YOU THINK THAT YOU ARE PAYING SO MUCH MORE. BELIEVE ME.
I KNOW. THE BOTTOM LINE IS STILL THE BOTTOM LINE. I GET THAT.
BUT THERE ARE CITY SERVICESSEN - THE RECYCLING AND SOLID WASTE IS ON THAT BILL. AS WELL AS THE CSI.
THAT INCREASES THE BOTTOM LINE OF THE BILL.
>> I THINK THERE IS A FEW THINGS WORTH MENTIONING.
ONE IS-- AND I THINK I CAN SAY THIS FAIRLY SAFELY IN SPEAKING FOR A FELLOW BOARD MEMBER. ANY TIME WE ARE FACED WITH MAKING A PROPOSED RATE HIKE, IT IS NOT SOMETHING THAT WE DO EASILY. AND THERE HAS BEEN TIMES WHERE
WE HAVE NOT PASSED -- >> CAN WE PUT THE MIC?
>> YES, MA'AM. ANY TIME WE ARE FACED WITH A POTENTIAL RATE HIKE, IT IS NOT SOMETHING WE TAKE LIGHTLY WHATSOEVER. WE ARE ALL RATE-PAYERS UP HERE.
IT IS SOMETHING WE ALL UNDERSTAND WELL.
[01:15:05]
AND THERE HAS BEEN TIMES WHERE WE HAVE BEEN PRESENTED WITH POTENTIAL RATE INCREASES THAT HAVE BEEN NOT APPROVED.THE LAST THING I WANT TO MENTION IS THAT, AGAIN, AT THE END OF THE DAY, BECAUSE OF THE DECREASE IN THE POWER COST ADJUSTMENT, THE OVERALL EFFECT OF THE BILL-- IT WILL BE SLIGHTLY LOWER.
AFTER TODAY. SO THERE IS TWO MAIN PORTIONS FOR YOUR ELECTRIC RATE. ONE IS THE POWER-- THE COST OF THE POWER THAT WE PURCHASE THROUGH OUR ORGANIZATION THAT WE ARE A PART OF. THE OTHER IS THE POWER-- THE COST OF THE POWER THAT IS ASSOCIATED WITH US RUNNING THE LOCAL UTILITY. THE COST OF THE POWER FOR RUNNING THE LOCAL UTILITY IS THE PORTION THAT WE ARE INCREASING ACCORDING TO INFLATION. OR RIGHT NOW IT IS PROPOSED THAT WE INCREASE IT ACCORDING TO INFLATION.
THE COST OF THE POWER THAT WE PURCHASE THROUGH THE ORGANIZATION THAT WE ARE A PART OF IS WHAT WE HAVE ALREADY APPROVED TO DECREASE. SO WE HAVE A DECREASE ON ONE SIDE. WE MAY, DEPENDING ON THE VOTE, HAVE AN INCREASE ON THE OTHER SIDE.
ONCE YOU AVERAGE THOSE TWO TOGETHER, THE OVERALL EFFECT IS THAT THERE WILL BE A REDUCTION IN THE COST OF POWER.
AND MS. MIKA, IF I MISSPOKE ANYWHERE THERE, CAN YOU CORRECT
WHAT YOU SAID IS ACCURATE. >> OKAY.
>> IF I'M LOOKING AT THE AVERAGE BILL, MADAM CHAIR, IT LOOKS LIKE THE DECREASE WILL BE APPROXIMATELY $5.24.
>> YES. >> PER THOUSAND KILOWATTS.
>> THAT IS ASSUMING THOSE LEVELS OF CONSUMPTION FOR AUGUST AND JULY AND AUGUST AGAIN, WERE HOT MONTH.
AND MORE-- THE HOTTER IT IS, THE MORE YOU ARE GOING TO CONSUME.
WHEN IT COMES DOWN TO THIS BEING IMPLEMENTED, AND IT IS OCTOBER.
THINGS MIGHT BE COOLER. CONSUMPTION MIGHT BE LOWER.
IT MIGHT IMPACT IT DIFFERENTLY, A LITTLE MORE AS WELL.
AS A REDUCTION. >> ANYTHING ELSE?
>> I HAVE A FEW THINGS THAT I WOULD LIKE TO SAY.
AFTER LISTENING TO WHAT THE COMMUNITY HAS SAID, AND I KNOW THAT THIS WILL, YOU KNOW, BE SOMETHING THAT WILL PUT A LOT OF IMPACT ON YOUR DEPARTMENT, BUT IS THERE ANY REVENUES THAT WE CAN MOVE FROM OTHER PLACES TO OFFSET THIS INFLATION? NUMBER ONE. ALSO, IS THERE-- I'M LOOKING HERE AT WHAT WE ARE LOWERING, THE ELECTRIC AND THE NATURAL G GAS, WHICH IT WILL GO DOWN. BUT WE PULLED THE WATER AND WASTEWATER. NOW, FOR A LATER TIME.
WE WILL GET AN EASEMENT IN OCTOBER AND NOVEMBER, BUT IN DECEMBER, WHAT WILL HAPPEN THEN? BECAUSE THIS IS WHAT I'M HEARING. I'M HEARING THE COMMUNITY SA SAYING, THAT, YES, WE ARE HAPPY THAT THE ELECTRIC AND THE GAS IS GOING-- YOU KNOW, IT IS GOING TO DECREASE THE BILL, BUT IT IS GOING TO BE RAISED WITH THE WATER AND WASTEWATER WITH THE 7.1%. SO WHAT ARE WE-- WHAT ARE WE LOOKING AT THEN? WE PULLED THOSE ITEMS, BUT AT A LATER DATE, WE ARE GOING TO HAVE TO COME BACK AND TALK ABOUT THEM. SO THAT IS WHAT I'M HEARING THE COMMUNITY SAYING. IS THAT WE ARE HAPPY THAT THIS IS HAPPENING. BUT WE ARE LOOKING AT THREE MONTHS FROM NOW. SO IS THERE ANY WAY THAT WE CAN LOOK AT OTHER AREAS THAT WE CAN OFFSET THIS INFLATION RISE AND
BE ABLE TO HELP THE COMMUNITY? >> WELL, THE REVENUES TO SUPPORT THE SYSTEM HAVE TO COME FROM THAT SYSTEM.
ELECTRIC REVENUES HAVE TO SUPPORT THE COST OF ELECTRIC AND SO FORTH. I'M NOT --
>> BARBARA, IF I MAY -- >> SURE.
>> MADAM CHAIR, ONE OF THE THINGS THAT WE HAVE BEEN DOING OVER THE LAST YEAR-- YOU KNOW, I TOOK OVER ABOUT A YEAR AND A HALF AGO OR SO. ONE OF THE THINGS THAT WE HAVE BEEN DOING, WE HAVE BEEN AGGRESSIVELY LOOKING AS A TEAM,
[01:20:03]
BARBARA, ALL THE DIRECTORS, THE DEPARTMENT HEADS, BEING MUCH MORE EFFICIENT UTILITY. WE HAVE MADE SOME PROGRESS IN THOSE AREAS. WE CONTINUE TO EVALUATE THOSE AREAS. SO LONG-TERM, OUR GOAL, ONE OF OUR ABSOLUTE GOALS AND IT IS A HEAVY LIFT, BUT WE ARE DEDICATED TO BEING, YOU KNOW, THE LOWEST COST UTILITY IN THE STATE.THAT IS A GOAL. THAT IS WHERE WE WANT TO BE.
WE ARE WORKING TOWARDS THAT GOAL.
I KNOW, AGAIN, IT IS A TOUGH ASK.
BUT WE HAVE A FANTASTIC TEAM. WORKING HARD TO CONTINUE TO GO DOWN THAT PATH. FOR TODAY, THESE-- THIS INDEX ADJUSTMENT IS TRYING TO RECOVER FROM A COUPLE OF YEARS AGO.
BUT MOVING FORWARD, I HAVE A LOT OF CONFIDENCE IN OUR TEAM TO BE ABLE TO CONTINUE TO BE MORE EFFICIENT UTILITY, WHICH WILL HELP US BEING-- HOPEFULLY, OFFSET SOME OF THOSE INDEX COSTS OR SOME INFLATIONARY COSTS THAT WOULD AFFECT OUR CUSTOMERS.
>> I MIGHT ADDST THAT, YOU KNOW, THE OTHER SYSTEM BY SY SYSTEM-- ANOTHER WAY TO MAKE EACH SYSTEM MORE EFFICIENT, SO AS TO NOT HAVE TO RAISE THE RATES WOULD BE TO LOWER OUR EXPENSES. BECAUSE IT IS REVENUES AND EXPENSES. THE BALANCE THERE.
SO LOWERING OUR EXPENSES WOULD BE AT THIS POINT, IF YOU CAN'T RAISE REVENUE, YOU HAVE TO CUT YOUR EXPENSES.
THAT IS, AGAIN, A DIFFICULT TASK.
AS YOU SEE THE ITEMS THAT ARE PRESENTED TO YOU WITH THE COST AND THINGS ARE GOING ON THAT WE HAVE REALLY LITTLE OR NO CONTROL
OVER. >> I THINK BARBARA MAKES A VERY GOOD POINT. BECAUSE WE HAVEN'T APPLIED THE INDEX CONSISTENTLY OVER THE LAST 10-15 YEARS.
WE CONTINUE TO CUT CAPITAL PROJECTS OUT OF THE BUDGET.
AND THAT IS NOT THE RIGHT WAY. THAT IS NOT THE RIGHT THING TO DO FOR A UTILITY. IT WILL ULTIMATELY AFFECT FUTURE COSTS, RATE SHOCK. IT WILL AFFECT THE SERVICE TO OUR CUSTOMERS. IT WILL AFFECT SERVICE TO OUR COMMUNITY. WE ARE PROVIDING AN ESSENTIAL SERVICE. I THINK THE MAYOR MADE A VERY GOOD POINT ABOUT THE BILL THAT YOU SEE THERE ON THE SCREEN.
WHEN YOU LOOK AT FPUA'S BILL, YYOU LOOK AT AN ELECTRIC, WASTEWATER, GAS, GARBAGE. SOME OTHER FEES ON THERE.
WHEN YOU COMPARE THAT TO FPNO, THAT IS JUST ELECTRIC.
NATURAL GAS IS FROM CITY GAS. AND THE GARBAGE IS ON THEIR TAX BILL. THE TAX BASE.
SO WE ARE AN ALL-INCLUES I UTILITY TO.
PROVIDE ALL ESSENTIAL SERVICES TO OUR COMMUNITY.
AGAIN, WE HAVE THE ABILITY TO CONTINUE TO LOOK AT THE WAY WE OPERATE AND LOOK AT THE WAY WE CONTINUE TO BE VERY EFFICIENT.
HOPEFULLY, REDUCE THE COST IN THE FUTURE.
>> MADAM CHAIR, TOO, I THINK THAT IN DECEMBER, I WOULD THINK THAT THE TEMPERATURES ARE GOING TO BE COOLER, AND SO THIS WON'T BE HAPPENING IN THE MIDDLE OF THE HOT SUMMER, TOO.
SO YOU KNOW, IN THE PAST, WE HAVE NOTICED THAT-- RIGHT? IT IS ALWAYS A BALANCING ACT. IN THE SUMMER, EVERYBODY WANTS TO BE COOL. WANTS TO BE COOLING THEIR HOME.
AND THEN IN THE WINTER, WHAT HAPPENS IS UP NORTH, DEPENDING ON HOW THE WINTER IS UP NORTH, IT CAN AFFECT THE NATURAL GAS PRICES. WE ARE ALWAYS TRYING TO BALANCE THAT WITH TRYING TO KEEP THE PRICES AS LOW AS POSSIBLE.
ONE THING ABOUT FPUA, THAT IS DIFFERENT THAN OTHER UTILITIES IS THAT WE CAN BE NIMBLE. THE MINUTE WE SEE WE CAN IMPROVE THE COST, WE DO. THAT IS WHY WE ARE-- FOR THE PAST THREE MONTHS, WE HAVE LOWERED THE PCA.
WE HAVE LOWERED IT. NOW IT IS DOWN TO ZERO.
SO WE ARE ABLE TO DO THAT WHENEVER THE PRICES OF NATURAL GAS AND OTHER FACTORS INDICATE WHAT WE CAN DO.
>> I'LL MAKE A MOTION TO APPROVE THE INCREASE.
PER STAFF'S RECOMMENDATION. >> HOLD ON, ONE SECOND.
>> I THINK I MADE A MOTION. DO YOU WANT FURTHER DISCUSSION? DO YOU WANT TO DISCUS IT FURTHER? WE DON'T HAVE A SECOND YET. DO YOU WANT TO CONTINUE?
DISCUSSING? >> I WANTED TO MAKE THE MOTION.
>> YOU ARE THE CHAIRMAN. >> YES.
>> I DON'T THINK THE CHAIRMAN CAN MAKE A MOTION.
>> I WASN'T GOING TO MAKE THE MOTION.
I HAVE GOING TO S SAY DO WE HAVA MOTION?
>> I THOUGHT YOU HAD FURTHER COMMENTS.
>> I SECOND THAT MOTION. >> OKAY.
>> MADAM CLERK, MADAM CLERK, PLEASE CALL THE ROVMENT.
>> MR. LAMMERS? >> YES, MA'AM.
[01:25:02]
>> MRS. BENNETT? >> NO, MA'AM.
>> SORRY. I THOUGHT YOU HAD MORE
DISCUSSION ON THE MATTER. >> NO.
>> I DIDN'T WANT TO CUT YOU OFF. >> OKAY.
[G.1. Approve the renewal quote for the FMIT insurance policies for Fiscal Year 2024. Presented by Barbara Mika.]
MR. DIRECTOR, YOU MAY PROCEED WITH THE NEW BUSINESS.>> THANK YOU, MADAM CHAIR. MEMBERS OF THE BOARD, THE FIRST ITEM FOR NEW BUSINESS IS A REQUEST REQUEST TO RENEW OUR GENERAL CYBER-AUTOMOBILE LIABILITY AND WORKMAN'S COMP INSURANCE FOR THE UPCOMING BUDGET YEAR.
BARBARA MIKA, THE DIRECTOR OF FINANCIAL ADMINISTRATION WILL PRESENT THIS ITEM. SHE IS ALSO ACCOMPANIED BY TYLER. I APOLOGIZE.
MR. CISNEROS, MADAM CHAIR, BOARD MEMBERS.
I'M PRESENTING THE INSURANCE PACKAGE RENEWAL FOR FISCAL YEAR 2024. FROM THE FLORIDA LEAGUE OF CITIES ON BEHALF OF THE MUNICIPAL INSURANCE TRUST.
IN SHORT, THE RENEWAL POLICIES FOR THE NEXT FISCAL YEAR HAVE INCREASED $623,000 OVER, WHICH IS A 70% INCREASE OVER OUR CURRENT POLICY. THERE WERE SEVERAL REASONS FOR THIS UNPRECEDENTED INCREASE WHICH IS ON THE PROPERTY INSURANCE POLICY. THE-- WHERE THE POLICY INCREASE FOR PROPERTY INSURANCE WAS $419,000 TO JUST OVER $1 MILLION. FOR PROPERTY ALONE.
THE INCREASE IN OUR TOTAL INSURABLE VALUE, WE RECENTLY LAST YEAR, THEY DID AN ASSET SURVEY.
AND THEY REVIEWED ALL OF THE PROPERTIES.
AND THE VALUE OF OUR PROPERTIES WENT FROM $83.7 MILLION TO $117.8 MILLION. WITH THAT 41% INCREASE IN THE VALUE OF OUR PROPERTIES, THAT ALSO IMPACTED THE COST OF OUR PROPERTY. THE PREMIUM.
THE PROPERTY RATES, IN GENERAL, HAVE INCREASED TO RE-INSURANCE.
THERE ARE CHANGES THAT ARE-- MANY PEOPLE IN FLORIDA OR MANY GOVERNMENTAL AGENCIES ARE EXPERIENCING.
UPWARDS TO 100% INCREASES IN PREMIUMS THEMSELVES.
GLOBAL WARMING, HURRICANES, THE INTENSITY IN FLORIDA, AND THE HURRICANES HITTING OUR STATE. AND THE INFLATION.
IT ISN'T GOING AWAY JUST YET. WE WERE OFFERED SEVERAL OPTIONS.
FOR-- TO INCREASE OUR DEDUCTIBLE.
BASED ON THE OPINION OF OUR INSURANCE CONSULTANTS, THE COST OF SAVINGS AND REDUCTION IN THE PREMIUM GIVES US TOO MUCH RISK EXPOSURE. THERE WAS A LETTER THAT WAS HANDED OUT JUST TODAY. I JUST GOT IT, ACTUALLY, THIS MORNING. ON PAGE FOUR OF THE LETTER, YOU CAN SEE FOR A $100,000 REDUCTION IN THAT PREMIUM, THE POTENTIAL IS ANOTHER $3 MILLION IF WE HAD SOME KIND OF CATASTROPHIC LOSS.
FOR $100,000, YOU ARE SAVING A POTENTIAL $3 MILLION EXPENSE.
AND THEN IT GOES UP FROM THERE. WE ARE MAINTAINING-- WE ARE RECOMMENDED TO MAINTAIN OUR 5% DEDUCTIBLE ON THE PROPERTY INSURANCE. THE RECOMMENDATIONS FOR LOWERING IT AREN'T PRACTICAL. THE OTHER AREA WHERE WE HAD CHANGE WAS AN INCREASE IN THE WORKER'S COMP.
AND THAT IS BASICALLY, BASED ON THE BUDGET.
WE BASE OUR PREMIUMS, THE PREMIUMS ARE BASED ON THE BU BUDGET. SO I THINK IT WAS A 13% INCREASE OVERALL. AND I GUESS WE HAD AN IMPROVED MODIFICATION FACTOR. IT OFFSET IT A LITTLE BIT.
THERE WAS AN INCREASE ON THE WORKER'S COMP.
ALL OF THE OTHER POLICIES ARE MODERATE INCREASES.
SO THERE IS NOT TOO MUCH TO SPEAK OF THERE.
OUR OVERALL PREMIUM THAT WE ARE LOOKING FOR-- APPROVAL FOR, THE PAYMENT-- I'LL READ THE-- I'M RECOMMENDING-- WE HAVE BEEN RECOMMENDED TO PROPOSE. THIS I'M RECOMMENDING THAT WE ACCEPT THE RENEWAL QUOTE AND PROPOSAL FROM FLORIDA LEAGUE OF CITIES ON BEHALF OF FLORIDA MUNICIPAL INSURANCE TRUST FOR THE FISCAL YEAR 2024 POLICY PACKAGE.
THAT INCLUDES THE PROPERTY, OUR GENERAL LIABILITY, OUR CYBER-LIABILITY, AUTOMOBILE LIABILITY, AND WORKER'S COMPENSATION INSURANCE COVERAGE. FOR THE PERIOD OF OCTOBER 1, 2023. THROUGH SEPTEMBER 30, 2024.
AND PROVIDE FUNDING FOR $1,599,,000 TO COVER THIS
[01:30:04]
INSURANCE COST. IF YOU HAVE ANY QUESTIONS, I WOULD BE HAPPY TO ADDRESS IT OR TYLER, WHO IS OUR ACCOUNT MANAGER, IS HERE FROM FMIT. HE CAN HELP US AS WELL.>> ANY QUESTIONS? >> MADAM CHAIR, AM I UNDERSTANDING THAT IT WENT FROM $623,000 TO $1,5,000?
DO I HAVE THAT RIGHT? >> MADAM CHAIR, AND BOARD MEMBERS. IT WENT FROM $886,079 TO $1.5
WHAT PERCENTAGE INCREASE IS THAT?
I JUST WANT TO SAY THAT I'M ON THE FMIT BOARD.
ALSO THE CITY OF FORT PIERCE EXPERIENCED THE SAME, THE SAME KIND OF INCREASE, AND THE SAME-- SO THE CITY OF FORT PIERCE WENT UP 95%. FOR INSURANCE.
AND SO IT IS BECAUSE OF A NUMBER OF FACTORS THAT KIND OF ALL GATHERED AND ACCUMULATED. HURRICANE IAN KIND OF PUT THE WHOLE ICING ON THE CAKE. I THINK.
AND THE REINSURANCE-- IT IS MOSTLY DUE TO THE COST OF REINSURANCE. CORRECT?
>> THAT IS CORRECT, MAYOR. SO THE GLOBAL REINSURANCE MARKET HAS TAKEN A SIGNIFICANT HIT. ESPECIALLY IN TERMS OF THE STATE OF FLORIDA. THE STATE OF FLORIDA IS THE LARGEST CATASTROPHE ZONE IN THE WORLD, SO WE HAVE EXPERIENCED OUR COSTS GO UP OVER 100% BY RE-INSURANCE.
WHICH IS HOW WE OFFER YOU PROPERTY INSURANCE.
>> YUP, YUP. WE LIVE IN PARADISE, BUT WE PAY
A COST. >> ANY OTHER QUESTIONS?
>> SECOND. >> PLEASE CALL THE ROLL.
>> MR. FEE? >> IT GIVES ME HEARTBURN, BUT
>> YES, MA'AM. >> MAYOR HUDSON?
>> YES, MA'AM. >> MRS. BENNETT?
>> THANK YOU. >> THANK YOU ALL VERY MUCH.
[G.2. Bid No. 16-42: Approve Amendment No. 5 to the Tree Trimming Services Contract with The Davey Tree Expert Company of Kent, Ohio to increase the not to exceed contract amount by $168,000 from $376,000 to $544,000 annually and to extend the contract through November 30, 2023. Presented by Bill Crawford. ]
>> MADAM CHAIR, MEMBERS OF THE BOARD, THE NEXT ITEM IS A REQUEST TO APPROVE A NOT TO EXCEED CONTRACT AMOUNT FOR TREMENDOUS-TRIMMING SERVICES. MR. BILL CRAWFORD, THE SUPERINTENDENT WILL PRESENT THIS ITEM.
>> THANK YOU, MR. CISNEROS, MADAM CHAIR, MEMBERS OF THE BOARD, I'M HERE TO ASK FOR APPROVAL OF AMENDMENT NUMBER 5 TO THE TREE-TRIPPING SERVICES CONTRACT WITH DAVEY TREE EXPERTS KOH OF CANTON, OHIO TO INCREASE THE NOT TO EXCEED CONTRACT AMOUNT BY $168,000. FROM $376,000 TO $544,000.
ANNUALLY. AND TO EXTEND THE CONTRACT THROUGH NOVEMBER 30, 2023. THIS RECK WE FISSION IS FOR WORK ALREADY PERFORMED AND WORK TO BE PERFORMED FOR THE REST OF THE YEAR. THAT ENDS ON SEPTEMBER 30, 2023.
THE TREE OUTAGES HAVE BEEN AN OVERWHELMING PART OF ELECTRIC SERVICE. TREE-TRIPPING IS A VITAL PART OF KEEPING RELIABLE ELECTRIC SERVICE.
AT TIMES, WE MUST WORK EXTRA TO CATCH AREAS THAT GROW A LITTLE FASTER THAN OTHERS. ON JULY 5, 2017, THE BOARD APPROVED THE TREE-TRIMMING SERVICE CONTRACT WITH DAVEY TREE EXPERT KOH AND FOUR AMENDMENTS HAVE BEEN ISSUED THROUGHOUT THE LIFE OF THIS CONTRACT. ANY QUESTIONS? I WOULD BE MORE THAN HAPPY TO ANSWER.
OR TRY TO ANSWER. >> ANY QUESTIONS?
>> MADAM CHAIR? MR. CRAWFORD, WHAT HAPPENS IF WE DECIDE TO CUT OUR TREE-TRIMMING BUDGET.
WHAT IS THE RESULT TO OUR CUSTOMERS BECAUSE OF THAT.
>> A LOT MORE DIMMING OF THE LIGHTS.
A LOT MORE OUTAGES. LONGER OUTAGES.
BECAUSE TREES WILL HAVE TO BE CLEARED BEFORE ELECTRIC IS
RESTORED. >> A PLOT MORE OVERTIME-- A LOT MORE OVERTIME FOR KREUSSMENTS POTENTIALLY, IT MIGHT NOT SAVE US MONEY IN THE LONG RUN IF WE CUT IT.
BECAUSE OF REDUCED-- THINGS LIKE THAT.
>> RIGHT. >> AND ANY TIME THERE IS AN OUTAGE, THERE IS AN INTERRUPTION OF SERVICE TO THE CUSTOMER.
YOU KNOW, THAT IS ONE OF THE HIGHEST PRIORITIES THAT MR. CRAWFORD AND HIS TEAM TRIES TO ADDRESS.
TO GET POWER RESTORED AS QUICKLY AS POSSIBLE.
AND TREES ARE A MAJOR ISSUE FOR US.
WE ARE A TREE CITY. WE HAVE TO BE PRETTY NICE TO THE TREES TO MAKE SURE WE DON'T DAMAGE THEM.
[01:35:01]
>> ANYONE ELSE? >> MADAM CHAIR, SO IS THE INCREASE BECAUSE YOU ARE GOING TO BE DOING INCREASED WORK OR BECAUSE INCREASED COSTS THAT THEY ARE CHARGING US?
>> ACTUALLY, INCREASED THEIR WORK.
THEY HAVE ALREADY WORKED FOR US. WE ARE JUST TRYING TO PAY WHAT
>> AND CONTINUED TO PAY THEM THE REST OF THE YEAR.
UNTIL THE NEW CONTRACT IS AWARDED.
>> THAT NEW CONTRACT WOULD BE A CALENDAR YEAR?
>> PARDON ME? >> IS THE NEW CONTRACT A
PROBABLY THE NEXT ONE IS GOING TO BE THIS SAME HIGH AMOUNT.
>> YOU WILL SEE ME NEXT MONTH. >> YES.
ASKING FOR MORE MONEY. FOR NEXT YEAR.
I WON'T HAVE THE CONTRACT. >> OKAY.
>> ANYONE ELSE? >> I MOVE APPROVAL.
>> YES, MA'AM. >> MR. LAMMERS?
>> YEVMENT. >> MAYOR HUDSON IN.
>> YES, MA'AM. >> MRS. BENNETT?
[G.3. POA 23-23: Approve the piggyback of Lee County, RFP B230154DWJ, Wastewater Collection Systems Rehabilitation and contract with Miller Pipeline LLC, of Indianapolis, Indiana, for Sewer Rehabilitation Services in an amount not to exceed $634,500 annually. The term of the Contract will be from execution through June 29, 2026 with one (1) three-year (3) year renewal options. Presented by Mark Kobbe. ]
>> YES, MA'AM. >> THANK YOU ALL VERY MUCH.
>> MR. CRAWFORD, MADAM CHAIR, MEMBERS OF THE BOARD, THE NEXT ITEM SA REQUEST TO APPROVE A CONTRACT AMENDMENT WITH MILLER PIPELINE FOR SEWER REHABILITATION SERVICES.
>> THANK YOU, MR. CISNEROS. MADAM CHAIR, MEMBERS OF THE BOARD. MY NAME IS COOPER KRUEGER.
I'M HERE TODAY TO ASK FOR AN APPROVAL FOR A NEW CONTRACT WITH MILLER PIPELINE. THEY HAVE WORKED WITH US FOR MANY YEARS IN OUR WASTEWATER GRAVITY COLLECTION SYSTEMS, REHABILITATION PROGRAM. IT IS IMPORTANT TO CONTINUE OUR LINING PROGRAM TO PROVIDE RELIABLE AND EFFICIENT SERVICE TO OUR CUSTOMERS. LINES THAT ARE CRACKED, LEAKING OR DAMAGED ALLOW GROUNDWATER INTRUSION AND INFILTRATION WHICH SERIOUSLY COMPROMISES OUR SYSTEM.
IF LEFT UNCORRECTED, SERIOUS SAFETY HAZARDS SUCH AS SINKHOLES AND STOPPAGES WILL OCCUR. WHICH NEGATIVELY IMPACTS OUR QUALITY OF SERVICE RENDERED TO OUR CUSTOMERS.
THIS CONTRACT WILL ENSURE THAT WE CONTINUE OUR ANNUAL LINING PROGRAM WHICH IS SEPARATE FROM OUR ADDITIONAL GRANT-FUNDED PROGRAMS CURRENTLY TAKING PLACE. THE CONTRACT IS NOT TO EXCEED THE AMOUNT OF $65,00 $635,500 ANNUALLY AND WILL PROVIDE US WITH ONE THREE-YEAR RENEWAL OPTION.
IF YOU HAVE ANY QUESTIONS, I'LL TRY TO ANSWER THEM.
>> THE ONE THING I WOULD LIKE TO ADD TO MR. KRUEGER'S PRESENTATION IS THAT TYPICALLY, SEWER LINING IS A FRACTION OF THE COST OF DIGGING UP THE ROAD, REPAIRING THE SEWER PIPELINE AND REPLACING THE ROAD. IT HAS BEEN A VERY SUCCESSFUL PROGRAM THAT WE HAVE HAD FOR 20 YEARS OR LONGER.
SEWER LINING IS A FANTASTIC PROCESS THAT MAKES IT MUCH MORE EFFICIENT. WE HAVE OFFERED THIS TO THE BOARD MEMBERS BEFORE. IF YOU ARE INTERESTED IN SEEING THAT PROCESS, WE WOULD BE MORE THAN HAPPY TO HOST YOU WHEN THEY
MOBILIZE. >> MADAM CHAIR, IS THIS THE SET PRICE OF $634 ANNUALLY FOR THREE YEARS?
HAVE I GOT THAT RIGHT? >> IT IS-- I THINK IT IS PER YEAR. $635.
>> PER YEAR. >> THREE-YEAR CONTRACT.
>> SO THE AMOUNT WON'T GO UP FROM $634.
>> CORRECT. >> RIGHT NOW THAT IS ALL WE CAN HOPE FOR. SOMEBODY NOT INCREASING THEIR PRICES. RIGHT?
>> OH, IF WE BRING THE CONTRACT BACK, IT WOULD MOST LIKELY BE DUE TO SOME GRANT FUNDING WE RECEIVED.
>> IS IT $634,500? OR $635,500?
>> IT SAYS $64 IN THE TEXT. DOESN'T IT?
>> I'M GLAD YOU CAUGHT THAT. >> BUDGETED, MADAM, DISMAIR.
ANYTHING THAT IS NOT BUDGETED, I WOULD INTRODUCE IT AS A CONTINGENCY ITEM OR NONBUDGETTED ITEM.
THIS IS SOMETHING THAT HOPEFULLY, WITH OUR NEW AGENDA SOFTWARE, WE CAN ADDRESS IN THE FUTURE.
YES, THIS IS A BUDGET ITEM. >> LY MAKE A MOTION TO APPROVE.
>> SECOND. >> PLEASE CALL THE ROLL.
>> MR. LAMMERS? >> YES, MA'AM.
>> MAYOR HUDSON? >> YES, MA'AM.
[G.4. POA 20-50: Approve Amendment No. 1 to the Annual Unit Price Contract (UPC) for the Installation of Underground Utilities for Water and Wastewater Systems with Hinterland Group Inc., of Riviera Beach, Florida, to increase the not to exceed contract amount by $500,000, from $1,000,000 to $1,500,000 annually. Presented by Lugey Dawson. ]
THANK YOU. >> MADAM CHAIR, MEMBERS OF THEBT TO APPROVE AMENDMENT NUMBER 1 TO OUR UNIT PRICE CONTRACT WITH HINTERLAND GROUP. LUGEY DAWSON WILL PRESENT THIS
[01:40:03]
ITEM. >> THANK YOU, MR. CISNEROS.
GOOD AFTERNOON, MADAM CHAIR AND MEMBERS OF THE BOARD.
I'M HERE TO ASK FOR YOUR APPROVAL FOR AMENDMENT NUMBER 1 TO THE ANNUAL CONTRACT FOR THE INSTALLATION OF UNDERGROUND UTILITIES FOR WATER AND WASTEWATER SYSTEMS WITH HINTERLAND GROUP TO INCREASE THE NOT TO EXCEED CONTRACT AMOUNT BY $500,000 FROM $1 MILLION TO $1.5 MILLION ANNUALLY.
ADDITIONAL FUNDING IN THE AMOUNT OF $300,000 IS BEING REQUESTED FOR THE WASTEWATER ENGINEERING DEPARTMENT.
THIS FUNDING IS NEEDED TO COVER THE COST OF ONGOING WORK ASSOCIATED WITH FPUA'S WATER AND LOW PRESSURE SEWER EXPANSION PROJECTS. ALSO, THE WASTE WEARS WASTEWATER COLLECTIONS DEPARTMENT HAS BUT EXPERIENCED AN INCREASE IN EMERGENCY REPAIRS TO THE GRAVITY SEWER SYSTEM.
THESE NECESSARY REPAIRS ARE OFTEN DONE BY OUR UNIT PRICE CONTRACTOR AND ARE VERY COSTLY. THEREFORE, AN ADDITIONAL $200,000 IS BEING REQUESTED TO COVER THE COST OF THESE COMPLETED AND PENDING REPAIRS. AND WITH THAT, I WOULD BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
>> ANY QUESTIONS? >> I'LL MAKE A MOTION TO
>> MR. LAMMERS? >> YES, MA'AM.
>> MAYOR HUDSON? >> YES, MA'AM.
[G.5. POA 20-50: Approve Amendment No. 2 to the Annual Unit Price Contract for the Installation of Underground Utilities for Water and Wastewater Systems with Mastec North America, Inc., of Coral Gables, Florida, to increase the not to exceed contract amount by $1,000,000, from $2,400,000 to $3,400,000 annually. Presented by Lugey Dawson]
>> MR. DAWSON WILL ALSO TACKLE THE NEXT ITEM.
IT IS A REQUEST TO APPROVE AMENDMENT NUMBER 2.
>> THANK YOU, AGAIN. THIS SECOND REQUEST IS TO APPROVE AMENDMENT NUMBER 2 TO THE ANNUAL UNIT PRICE CONTRACT FOR THE INSTALLATION OF UNDERSTOOD GROUND UTILITIES FOR WATER AND WASTEWATER SYSTEMS. TO INCREASE THE NOT TO EXCEED CONTRACT AMOUNT BY $1 MILLION FROM $2.4 MILLION TO $3.4 MILLION ANNUALLY. ON DECEMBER 1, 2020, THE BOARD APPROVED THE CONTRACT WITH MASTEC.
AND ON AUGUST 17, 2021, THE BOARD AGAIN APPROVED CONTRACT AMENDMENT NUMBER 1 TO INCREASE THE NOT TO EXCEED AMOUNT FROM $1.5 MILLION TO $2.4 MILLION ANNUALLY.
WITHIN THE PAST YEAR, THE WASTEWATER COLLECTIONS AND WATER DISTRIBUTION DEPARTMENTS HAVE EXPERIENCED A SIGNIFICANT AMOUNT OF EMERGENCY REPAIRS TO THE SEWER MANHOLES AND WATER DISTRIBUTION MAINS. DUE TO THE AGE OF OUR SYSTEM, THESE UNPLANNED SEWER AND WATER REPAIRS WILL CONTINUE, AND THE UNIT PRICE CONTRACTOR WILL BE CALLED UPON TO MAKE THESE NECESSARY REPAIRS. ADDITIONAL FUNDING IS BEING REQUESTED FOR THE WASTEWATER COLLECTIONS DEPARTMENT IN THE AMOUNT OF $150,000, AND $100,000 FOR THE WATER DISTRIBUTION DEPARTMENT. ADDITIONALLY, FUNDING IN THE AMOUNT OF $750,000 IS ALSO BEING REQUESTED FOR THE WATER/WASTEWATER ENGINEERING DEPARTMENT.
THIS MONEY IS NEEDED TO COVER THE COST OF ONGOING WORK.
WITH HIGHER KOHS FOR LABOR AND PRICE INCREASES.
AGAIN, ANY QUESTIONS YOU HAVE, I WILL TRY TO ANSWER THEM.
>> ANY QUESTIONS? >> MADAM CHAIR, I HAVE A COMMENT. I MEAN, WE ARE ON OUR-- WHAT IS IT? ONE, TWO, THREE, FOUR, FOURTH ITEM THAT IS DIRECTLY DUE TO INCREASED COSTS OF RUNNING UTILITY. AND I REALLY WISH WE COULD REACH OUT TO OUR VENDORS AND TELL THEM 7% IS THE MOST WE ARE GOING TO INCREASE IT BY. I THINK IT IS A TESTAMENT TO STAFF'S EFFORTS. YOU KNOW, WE ARE DOING A RATE OF INFLATION INCREASE OF 7%. AND THE ONLY REASON I THINK THAT IS POSSIBLE IS BECAUSE WE HAVE BEEN WORKING SO HARD TO KEEP COSTS DOWN. BUT IT SEEMS LIKE THE FASTER WE RUN TOWARDS GETTING COSTS DOWN, INFLATION RUNS EVEN FASTER.
SO I JUST WANTED TO HIGHLIGHT ALL OF THAT.
ALL OF THESE REQUESTS HAVE BEEN 50% OR UP FOR MOST OF THEM.
THIS ONE IS A LOT MORE THAN THAT.
>> RIGHT. I ALMOST WISHED THAT THE PEOPLE THAT WERE HERE BEFORE MIGHT HAVE HEARD WHAT THE COSTS ARE THAT ARE INCREASING TO US. BECAUSE IN A WAY, WE ALMOST CAN'T SAY NO. WE HAVE TO RUN THE UTILITY AND RUN IT IN AN EFFICIENT MANNER. SO--
YOU KNOW, I BELIEVE WHAT WE DID WAS THE RIGHT THING.
[01:45:04]
APPROVING THAT INFLATION RATE INCREASE.IT DOESN'T MEAN THAT IT IS NOT HARD.
IT IS. AT THE END OF THE DAY, YOU KNOW, IT IS HARD FOR PEOPLE TO LIVE. RIGHT NOW.
>> YES. NO MATTER WHAT THE REASON.
IT IS DIFFICULT. IT IS DIFFICULT.
YUP. >> IT IS DEFINITELY TOUGH WHEN YOU ARE FIGHTING A TWO-FRONT WAR.
YOU GO TO THE GROCERY STORE. EVERYTHING IS UP 10%, IT FEELS LIKE. IF YOU WANT POWER, IT IS GOING UP. EVERYTHING IS GOING UP.
>> INSURANCE IN YOUR HOME. >> INSURANCE THE GOING UP.
>> RIGHT? >> IT IS REALLY PUTTING AN UNDUE
PRESSURE ON EVERYBODY. >> YES.
>> I DEFINITELY FEEL FOR THOSE THAT SPOKE TODAY.
YOU KNOW, EVEN THOUGH WE ARE SAVING THEM $5, THEY ARE STILL HURTING. THAT $5 IS JUST TOTALLY OFFSET FOR WHAT THEY PUT FUEL IN THEIR CAR OR WHAT THEY GO TO GROCERY
>> AND NOW YOU ARE LOOSHING AT THIS CONTRACT.
IT IS GOING UP BY, YOU KNOW, WILL THE $1 MILLION.
>> AND I ALMOST WANT TO ASK, YOU KNOW, WHAT ARE THEY DOING DIFFERENTLY TO MAKE THIS CONTRACT GO UP $1 MILLION?
>> JUST MATERIALS. >> THE COST OF MATERIAL AND LABOR. AS I INDICATED, MORE REPAIRS, UNFORTUNATELY. WHICH COSTS MORE THESE DAYS.
>> ONE OF THE OTHER THINGS THAT WE HAVE TO DEAL WITH SPECIFICALLY WITH THIS COMPANY, WE ARE SHORT-STAFFED ON MECHANIC SIDES FOR THE WATER GROUP, WE HAVE TO LEAN MORE ON OUR CONTRACTORS TO BE ABLE TO DO THE REPAIR WORK.
BECAUSE WE CAN'T FIND PEOPLE. WE HAVE TO LEAN ON OUR CONTRACTORS TO DO MORE OF THAT WORK.
THAT DIRECT THAT DIRECTLY CORRELATES TO THE REQUEST TODAY.
>> YEAH. >> I'LL MAKE A MOTION TO
>> LET'S CALL THE ROLL. >> MR. FEE?
>> YES, MA'AM. >> MR. LAMMERS?
>> YES, MA'AM. >> MAYOR HUDSON?
[G.6. On 12/15/2020, the FPUA Board approved electronic payment processing fees not to exceed $500,000. As a result of the increased volume, these fees are on target to exceed $750,000 for 12 months ending 02/28/2024. The current request is to increase the not to exceed limit to $900,000 annually, to accommodate the current needs and future changes. Presented by Michele Harris. ]
>> MADAM CHAIR, MEMBERS OF THE BOARD, THE NEXT ITEM IS A REQUEST TO APPROVE AN AMENDMENT FOR ELECTRIC PAYMENT PROCESSING FEES. MICHELLE HARRIS, THE FINANCE
MANAGER WILL PRESENT THIS ITEM. >> HI.
THANK YOU. I WOULD LIKE TO SAY THAT I WAS UP HERE FOR SOMETHING DIFFERENT. TIME SAME AS EVERYBODY ELSE.
WE NEED TO REQUEST AN INCREASE TO OUR CURRENT NOT TO EXCEED LIMIT OF $500,000, AND WE NEED TO EXCEED THAT TO $900,000 ANNUALLY FOR ON-LINE BILL-PAYING PROCESSING FEES.
OUR ON-LINE PROCESSING FEES ARE PAID TO TWO DIFFERENT VENDORS.
VOICE CLOUD PROVIDES FPUA WITH SECURE BILL PRESENTMENT, PROCESSING AND PAYMENT SOLUTIONS.
ALL PAYMENTS THROUGH ON-LINE, IN PERSON, ON THE PHONE ARE ALL PROCESSED THROUGH IN VOICE CLOUD.
THEY HELP US ENSURE CARD HOLDER DATA.
INTERCHANGE FEES ARE PAID TO CHASE.
THESE ARE CHASE WOULD PAY THE PROCESSING FEES, ACCEPTING THESE PAYMENTS PROVIDES EFFICIENCY AND CONVENIENCE.
BUT IT HAS ITS COSTS. DUE TO INCREASED IN VOLUME, THE PROJECTIONS FOR FISCAL YEAR '23, WE WILL END UP ABOUT $661,000 WORTH OF FEES. THAT IS A 25% INCREASE FROM LAST YEAR. WE ARE FORECASTING THAT AT THE END OF 2024, WE WILL BE AROUND $840,000 OF FEES.
THAT IS ANOTHER INCREASE OF 27%. THIS SHOULD ACCOUNT FOR ANY RATE INCREASES IN GROWTH WITHIN FISCAL YEAR '24.
THE MAJORITY OF THOSE COSTS, THOSE COULD BE LIKE EFT ON-LINE BANK DIRECTS. THOSE ARE PAPERLESS.
THOSE FEES ENCOUNTER EVERYTHING. THE MAJORITY OF THAT ARE DRIVEN FROM CREDIT CARD FEES. THE AMOUNT OF FEES IS RISING.
OUR INTERCHANGE FEES WHICH IS A PORTION OF THOSE CREDIT CARD FEES ARE REALLY AT A SIGNIFICANTLY LOW RATE.
BECAUSE WE ARE PART OF THE VISA AND MASTERCARD UTILITY RATE PROGRAM. ONE KEY FACTOR, THOUGH, ELIGIBILITY FOR US TO GET THAT LOW RATE, A REQUIREMENT IS THAT WE CANNOT CHARGE A FEE TO CARD HOLDERS FOR PROCESSING CREDIT CARDS. THROUGH JULY, OUR CREDIT CARD FEES ARE AT ALMOST $500,000, BUT THAT IS OFF OF A VOLUME OF 43 MILLION. IT IS A LITTLE OVER 1%.
WHICH I THINK IS PHENOMENAL. WE HAVE STARTED TO LOOK INTO OUR PAYMENTS THROUGH INVOICE CLOUD. WE STARTED TO LOOK AT OUR LIMITS. LIKE MAYBE PUTTING MACK MUMS ON CREDIT CARD CHARGES THR THROUGHE LOBBIES, ON-LINE.
MAKING SURE THEY ARE CONSISTENT. WE HAVE A LIST OF OUR TOP CUSTOMERS THAT HAVE BEEN CHARGING EXCESSIVE AMOUNTS ON THEIR CARD. WE ARE JUST GOING TO START LOOKING INTO OTHER WAYS WE CAN SAVE.
I REALLY THANK YOU FOR YOUR TIME.
IF YOU HAVE ANY QUESTIONS, I'LL BE GLAD TO ADDRESS THEM.
>> ANY QUESTIONS? >> I'LL MAKE A MOTION TO
>> PLEASE AL THE ROLL. >> MR. FEE?
[01:50:01]
>> YES, MA'AM. >> MR. LAMMERS?
>> YES, MA'AM. >> MAYOR HUDSON?
>> YES, MA'AM. MRS. BENNETT IN.
>> YES, MA'AM. >> I LOOK FORWARD TO HEARING MORE ABOUT WHAT THEY LOOK INTO AND HEARING MORE ABOUT THIS SUBJECT. YUP.
>> WE TALKED ABOUT IT AT LEN LENGTH-- I TALKED ABOUT IT WITH STAFF. WITH BARBARA AND MICHELLE.
SPECIFICALLY. WE WILL MAKE SURE WE FOLLOW UP WITH THE BOARD ON WHAT THAT LOOKS LIKE.
>> OKAY. THAT CONCLUDES THE NEW BUSINESS.
[J. DIRECTOR]
ARE THERE ANY COMMENTS FROM THE DIRECTOR?>> YES, MA'AM. MADAM CHAIR, AS OF TODAY, NATURAL GAS IS AROUND $2.83 PER MMBTU.
THAT IS A SLIGHTLY HIGHER THAN WE WERE A MONTH AGO WHICH WAS AROUND $2.65 OR SO. AS A REFRESHER, TODAY'S PRICE DOESN'T AFFECT WHAT WE DO IN THE NEXT COUPLELE OF MONTHS.
WE HAVE ALREADY LOCKED IN THOSE PRICES.
WE HAVE HEDGED 75% OF OUR GAS FOR POWER GENERATION UNTIL MARCH OF 2024. AND 50% FROM APRIL '24 THROUGH MARCH OF '25. THE CURRENT THRESHHOLD IS STILL CURRENTLY $3.50 FOR ACTION. IF IT GOES AT OR BELOW THAT, FMPA CAN CONTINUE TO LOCK IN GAS PRICES BEYOND THE MARCH 2025 TIME FRAME. BUT THE FUTURES, THE COST OF POWER IN THAT TIME FRAME IS STILL HOVERING AROUND THE $4 RANGE. THERE ARE NO ADDITIONAL TRANSACTION THAT IS HAVE BEEN EXECUTED BECAUSE OF THE THRESHHOLD NOT BEING MET. LAST WEEK, WE DID ATTEND THE FMPA BOARD MEETING. AND THE FMPA STAFF DID PRESENT OPTIONS TO THE FMPA BOARD AND THE EXECUTIVE COMMITTEE, SPECIFICALLY ABOUT LOCKING IN 15% TO 20% BEYOND MARCH OF 2025.
SO THE THRESHHOLD FOR THAT TIME FRAME HAS MOVED UP.
IT IS GOING TO BE AROUND $4 PER MMBTU.
THERE IS AN OPPORTUNITY FOR US TO BE ABLE TO LOCK IT IN AT $4.
AND WHAT DOES THAT MEAN FOR FPUA? THAT MEANS THAT WE WOULD BE AROUND $82 DELIVERED POWER TO FPUA. AS YOU REMEMBER, THE NUMBER OF THE $29.52 PER THOUSAND. DEPENDING ON HOW WE MANAGE THAT, THAT IS SOMETHING WE SHOULD STRIVE FOR.
TO KEEP THAT AS LOW AS WE. CAN AS CLOSE AS WE CAN TO THE $79.52. SO WE WILL CONTINUE TO WORK WITH FMPA. THEY ARE POTENTIALLY PREPARING AN AGENDA ITEM FOR ACTION FOR THE NEXT BOARD MEETING WHICH WILL BE IN OCTOBER. AGAIN, THAT WOULD AFFECT US IN THE LONG-TERM. PAST MARCH OF 2025.
WE LOOK FORWARD TO SEEING WHAT THEY PROPOSE.
AND CONTINUE TO BE-- TO PROVIDE THEM WITH INPUT AND DIRECTION ON WHAT WE SHOULD DO HERE. IT OBVIOUSLY AFFECTS OUR COMMUNITY. ONE OF THE THINGS THAT THE NEXT-- THE NEXT ITEM. ONE OF THE THINGS THAT WE WILL BE LOOKING AT SPECIFICALLY, MADAM CHAIR HAD BROUGHT TO MY ATTENTION. WE WILL LOOK AT A TAR ITCH SHEET THAT SPECIFICALLY LOOKS AT OFF-PEAK CUSTOMER SUCH AS SMALL BUSINESSES THAT ARE L NOT OPERATING DURING THE PEAK PERIOD DURING THE WEEK. FOR EXAMPLE, CHURCHES AND SOME OTHER SMALL BUSINESSES. BECAUSE THEY DON'T IMPACT WHAT WE CALL LOAD FACTOR. WE OPERATE AROUND 40 MEGAWATTS AT NIGHT. AROUND 120, 130 DURING THE DAY.
123 DURING THE DAY. SO THAT LOAD FACTOR IS A RATIO THAT THROUGHOUT THE WEEK, MOST OF THAT IS IMPACTED IN THE 2:00 TO 4:00 TIME FRAME IN THE AFTERNOON.
MONDAY THROUGH FRIDAY. WHEN THERE IS A BUNCH OF BUSINESSES OPERATING. WE ARE GOING TO LOOK AT.
THAT BECAUSE I THINK THAT IS SOMETHING THAT MADAM CHAIR, YOU POINTED OUT, SOMETHING WE WILL DO A DEEPER DIVE INTO AND EVALUATE. THE LAST THING I'LL MENTION IS TONIGHT UNDER THE CONSENT AGENDA, THE BOARD APPROVED MY APPOINTMENT FOR THE HR RISK MANAGER.
COLLEEN THURSTON. SHE IS-- SHE HAS BEEN WITH FORT PIERCE SINCE THE EARLY 2000S. I'M GLAD TO HAVE HER ONBOARD.
THAT IS ALL I HAVE FOR THE BOARD TODAY.
THANK YOU. >> THANK YOU, MR. CISNEROS.
ARE THERE ANY COMMENTS FROM THE ATTORNEY?
>> NONE AT THIS TIME. THANK YOU.
[L. COMMENTS FROM BOARD MEMBERS]
>> THANK YOU. ARE THERE ANY COMMENTS FROM THE
BOARD? >> I JUST WANT TO SAY THAT WHAT AFFECTED US TODAY AND THE RATE INCREASES, MUCH OF WHAT AFFECTED US IS BEYOND OUR CONTROL. IT DOESN'T MAKE IT ANY EASIER.
BUT IT IS THINGS THAT WE CANNOT CONTROL.
>> WE COULD CONTROL IT, WE WOULDN'T HAVE PASSED IT.
THAT IS THE WAY I FEEL. WE HAD TO DO THINGS THAT WERE PASSED DOWN FROM US FROM NATIONAL AND INTERNATIONAL EVENTS. NOT EVEN NECESSARILY STATE EVENTS. AT ANY RATE, I JUST WANTED TO
SAY THAT. >> ANYONE ELSE? OKAY. SEEING NO FURTHER COMMENTS, THE FPUA BOARD MEETING IS NOW ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.