Dec 05, 2023 Fort Pierce Utilities Authority

[MEETING TO ORDER]

[A. SET THE AGENDA]

[C. APPROVAL OF MINUTES]

[D. CONSENT AGENDA]

[E.1. RECOGNITION OF EXCELLENCE]

[E.2. FLORIDA MUNICIPAL POWER AGENCY PRESENTATION]

[00:07:09]

REALLY IS BROUGHT BY AN ELECTRIC UTILITY LIKE THIS TO THE CITY.

[00:07:11]

BOTH JA JACKSONVILLE ELECTRICS AND WHAT USED TO BE CALLED REEDY CREEK NOWADAYS THE CENTRAL FLORIDA AND BOARD THEY JOINED FMPA. EVERY SINGLE ELECTRIC UTILITY MEMBER OGETHER ALL THOSE UTILITIES SERVED 3 MILLION FLORIDIANS WITH, WHICH IS AROUND 14 PERCENT OF THE STATES POPULATION SERVED BY MUNICIPAL ELECTRIC UTILITY TODAY.

YOU KNOW, OUR FOCUS IS ÃÃIS THE FOCUS YOU PUT US ON WHICH IS TO BE AFFORDABLE, RELIABLE, AND TO MOVE FORWARD AND GET CLEANER. YOU KNOW? TALK ABOUT THE ENERGY SITUATION. OBVIOUSLY LAST YEAR AND INTO EARLY 2023 ÃÃIT WAS A TOUGH YEAR. ON FAMILIES ENERGY PRICES WERE UP. PRICES WERE UP IN ALL KINDS OF THINGS WERE UP AT THE SAME TIME. AND ONE OF THE THINGS ABOUT ELECTRICITY IN FLORIDA IS THAT IT'S SO IMPORTANT BECAUSE WE HAVE THE LARGEST PERCENTAGE OF FIXED AND LOW INCOME POPULATION IN THE COUNTRY BECAUSE OF ALL THE RETIREES BEING HERE. SO WE HAVE LESS DISPOSABLE INCOME THAN AVERAGE FAMILIES DO. BECAUSE WE HAVE SO MANY RETIREES. YOU KNOW? THEY ARE IN A DIFFERENT PLACE.

SO WHEN ENERGY PRICES RISE AND FOOD PRICES RISE, THOSE BUDGETS CANNOT MOVE LIKE SOME OF THE OTHER PLACES THAT ARE OUT THERE. SAME TIME YOU HAD ALL THE HOUSING COSTS AND INTEREST RATES GOING ON. YOU KNOW? AND ALL THOSE THINGS AND OBVIOUSLY THE IMPACTED YOU KNOW ÃÃTHIS YEAR AT THE ANNUAL CONFERENCE WE FEATURED FORT PIERCE IN TERMS OF YOU KNOW ÃÃ TELLING THAT STORY.T AFFECTED BUSINESSES LIKE JOSC)' LEGIT COSTS AND ANNIE'S BEST CHOICE MEETS AND THE FAMILIES WE TALKED TO. YOU KNOW? AND I REMEMBER RENC)E ÃÃI DON'T KNOW IF YOU SAW THE VIDEO, BUT ONE OF THE THINGS SHE TALKED ABOUT WAS YOU KNOW Ã ÃTHEIR BUDGETS MOVED TO THE POINT WHERE THEY HAD TO CHANGE AND COULD NOT GO OUT ONCE A WEEK. SO THEY HAD TO PLAY VIDEO GAMES AT NIGHT.

THAT WAS THEIR FAMILY VIDEO NIGHT ONCE A WEEK. AND SO YOU KNOW ÃÃWE ALL HAD TO MAKE THOSE CHOICES. WE TALKED A LITTLE BIT ABOUT THIS IN TERMS OF THE SLIDE IN TERMS OF IF YOU LOOK AT THE AVERAGE FAMILY INCOME IN FLORIDA IS BELOW THE U.S.

AVERAGE. WE WE ALSO WANT TO POINT OUT IS THAT THE FMPA COMMUNITIES AS A WHOLE, THE 33 OF THEM, ONLY FOUR OF THEM ARE AT OR ABOVE THE FLORIDA AVERAGE INCOME LEVEL. ALL THE OTHERS ARE BELOW. AND THAT ÃÃTHAT MEANS THAT

[00:10:02]

SOME OF OUR AREAS WHERE AVERAGE INCOMES ARE IN THE 20,000 RANGE.

IT'S WELL BELOW WHAT YOU WOULD EXPECT. AT THE SAME TIME FLORIDIANS USED TWICE AS MUCH ELECTRICITY AS FOLKS IN CALIFORNIA AND NEW YORK BECAUSE IT'S HOT AND HUMID. AND SO ELECTRICITY PRICES MATTER.

WE DON'T NECESSARILY HAVE THE INCOME AND SO THE FOCUS IS ALWAYS ON THAT.

THIS CHART GIVES YOU AN UPDATE ON WHAT'S GOING ON IN THE NATURAL GAS PRICES ENOUGH ÃÃ WE RELY ON NATURAL GAS FOR 80 PERCENT OF OUR ELECTRIC GENERATION.

GAS PRICES GO UP ÃÃPRESENT ELECTRICITY OF EVERYONE IS GOING UP IN THE STATE.

THE STATE AVERAGE AT 70 PERCENT OF ALL THE STATES ELECTRICITY COMES FROM NATURAL GAS.

IT DOESN'T MATTER WHAT UTILITY OR FPL, WHATEVER APPEARED WE ARE ALL EXTREMELY DEPENDENT.

YOU SAW BACK IN 2022 WHEN THE PRICES ZOOMED UP THAT'S WHEN ALL THE RATE INCREASES STARTED.

YOU ALL INCREASED RATES AS REAL TIME ALMOST AS THOSE THINGS WENT UP.

AND WE WILL TALK ABOUT A MINUTE SOME OF THE IOUS AROUND MIKE AND FPO DEFERRED THE RATE INCREASE A YEAR WHICH MEANS THIS YEAR IS WHEN THEIR INCREASES KICKED IN OR LAST YEAR IS WHEN YOU'RE INCREASES KICKED IN. WE'LL TALK ABOUT THE IMPLICATIONS AND THE NICE THING IS THAT PRICES HAVE COME DOWN. THEY ARE VERY AFFORDABLE.

WE STARTED WITH A RELATIVELY MILD WINTER AND SO THINGS ARE REALLY REALLY GOOD ON THE PRICING FRONT. SO WE'VE GOT STABILITY. YOU AND JAVIER LED THE CHARGE TO BRING US STABLE PRICE BY BUYING FORWARD SO MUCH GAS TO LOCK IN A VERY STABLE PRICE.

AND FOR THE NEXT COUPLE OF YEARS ÃÃUNLIKE THE PAST, WE COULD PRETTY MUCH TELL YOU WHAT THE PRICE IS GOING TO BE. SO YOU'VE GOT GREAT STABILITY AND IT'S NOT LIKE IF THINGS BLOW UP IT'S NOT GOING TO IMPACT THE COMMUNITY FOR THE NEXT COUPLE OF YEARS.

SO THAT'S YOU KNOW ÃÃGREAT TO HAVE. A LITTLE HISTORICAL PERSPECTIVE ON ELECTRIC PRICES. IF YOU LOOK AT THE PRICE OF A RESIDENTIAL CUSTOMER IN THE UNITED STATES FROM 2010 Ã2022 ÃÃPRICES WENT UP BY ABOUT 31 PERCENT.

THE FLORIDA MUNICIPAL ONLY WENT UP BY AROUND NINE PERCENT. WE STARTED A LITTLE BIT HIGHER IN THE INVESTOR-OWNED UTILITIES WENT UP AROUND 23 PERCENT. THEY WERE LOWER-PRICED BACK IN 2010. WHEN YOU GOT TO 2022 ÃÃWE WERE ESSENTIALLY ABOUT EVEN.

IF YOU LOOK AT WHAT'S HAPPENING SINCE 2022 Ã2023 ÃÃSO IT WILL GO AUGUST OF LAST YEAR TO AUGUST OF THIS YEAR. YOU KNOW ÃÃFPU A'S COST WAS HIGH BECAUSE THAT'S WHEN YOU'RE IN THE MIDDLE RAISING THE RATES TO MANAGE THE GAS PRICES. LOOK AT AUGUST THIS YEAR AND YOUR 12 PERCENT BELOW. COMPARE THAT WITH FPL ÃÃTHEY ACTUALLY RAISED RATES BETWEEN 22 AND 23. SO THEY WENT UP 13 PERCENT. YOU'VE COME DOWN 12 PERCENT.

YOU ARE NOW BELOW FPL AND IN FACT PROBABLY HAVE THE ABILITY TO MOVE DOWN A LITTLE LOWER FPL RATE WILL COME DOWN JUST A BIT. BUT YOU'RE IN A GREAT POSITION. YOUR ADDING VALUE TO THE COMMUNITY. BECAUSE THEY CANNOT HAVE THOSE LOW-COST POWERS WITH ANYBODY ELSE. SO NO ÃÃY'ALL ARE DOING A GREAT JOB IN THAT RESPECT.

JUST TRANSITION OVER TO WHAT'S HAPPENING ON ENERGY PRICES AND WHERE THINGS HAVE BEEN.

THE POWER OF PRICES AROUND THE UNITED STATES. OUR ROLE AT FM PA IS TO PROVIDE YOU THE WHOLESALE POWER. ROUGHLY 60 PERCENT OF YOUR COST OF POWER COMES FROM OUR BILL.

AND THIS YEAR WE ARE LOOKING AT TRYING TO SAVE AS MUCH AS 40 MILLION OVER WHAT WOULD HAVE BEEN ONE OF THE THINGS I LIKE TO TELL THE TEAM. INCLUDING THE PEOPLE WHO OPERATE OUR FACILITIES, WHO ARE ON YOUR PAYROLL OR YOU SOMEBODY'S PAYROLL ON STOCK ISLAND ARE ROUGHLY 150 PEOPLE TOTAL BETWEEN OUR OPERATION AND YOUR PLANNED PEOPLE NET.

TELL THOSE PEOPLE ALL THE TIME THAT WE COULD NOT COLLECT EVERY BIG ENOUGH CHECK TO GIVE TO A COMMUNITY. AS COMPARED TO JUST DOING OUR JOBS WELL AND SAVING $40 MILLION. THERE'S NO WAY FOR US TO DELIVER PERSONALLY TO DO THAT.

SO OUR GIFT IN OUR MISSION IS TO PROVIDE THAT GIFT TO THE COMMUNITIES.

IF YOU BRING LOW-COST POWER, FORT PIERCE YOU ARE ROUGHLY 10 PERCENT.

THAT'S 4 MILLION TO YOUR COMMUNITY. YOU KNOW? SO ÃÃJUST THE PLAIN PEOPLE CANNOT WRITE A CHECK FOR $4 MILLION AT TREVOR TREASURE COAST. BUT DOING THEIR JOBS WELL THEY DELIVER THE KIND OF VALUE THERE. SO SOMETHING TO THINK ABOUT IN TERMS OF THE VALUE THAT'S BROUGHT IN THE THING IS WHEN THEY SUCCEED IT'S YOU AND YOUR CUSTOMERS SUCCEEDING.

IT'S MONEY IN YOUR POCKET AND IT'S VALUED THERE. SO LET'S TALK ABOUT THE ELECTRIC UTILITIES THE WHOLE AND THE VALUE IT BRINGS. PUBLIC POWER WEEK IS AN OPPORTUNITY TO JUST CELEBRATE THESE UTILITIES BECAUSE THEY ARE ESSENTIALLY THE GOOSE THAT LAYS THE GOLDEN EGG IN THE COMMUNITIES THAT HAVE THEM IF THEY ARE WELL RUN.

[00:15:02]

ONE THE GENERAL FUND TRANSFER Ã ÃBUT ALSO IN TERMS OF THE EMPLOYMENT BECAUSE YOU HAVE PEOPLE WHO WORK HERE IF THIS UTILITY WAS NOT HERE ÃÃI ASSUME THEY WILL PROBABLY WOULD NOT BE LIVING HERE TO WORK BECAUSE THOSE WHO WOULD BE CENTRALIZED IN OTHER LOCATIONS.

TO THE ECONOMIC BENEFIT OF HAVING PEOPLE HERE EVERY DAY, WHO ARE SPENDING THIS IS IMPORTANT. OBVIOUSLY A NUMBER OF OTHER THINGS.

FASTER RESTORATION, COMMUNITY SUPPORT. AND THINGS THAT YOU CAN CONTROL YOUR OWN DESTINY ON. ONE OF THEM ÃÃOF COURSE THE ISSUE WHILE YOUR AUTHORING YOUR SOLAR FOOTPRINT WHICH IS SOMETHING THAT IS ON. AND WE DID NOT PUT THAT IN HERE. BUT IF YOU THINK ABOUT IT ÃÃ BETWEEN THE NUCLEAR ALLOCATION BECAUSE YOU ALL HAVE ESSENTIALLY 12 AND 13 PERCENT OF YOUR POWER SUPPLY COMES FROM ST. LUCIE. YOU'RE AN OWNER IN THE ST. LUCIE NUCLEAR PLANT.

SO YOU TAKE THAT YOU KNOW? 10 OR 12 PERCENT PLUS ANOTHER FIVE OR SIX PERCENT FROM THE SOLAR ÃÃYOU ARE APPROACHING 20 PERCENT OF YOUR ELECTRICITY IS COMING GOING TO BE COMING FROM A CARBON FREE RESOURCE. AND YET YOU'RE GOING TO BE COST-EFFECTIVE.

THAT'S A BIG DEAL. AND YOU ALL SHOULD BE PROUD OF THAT.

YOU ARE IN THE SOLAR PROJECTS ARE COMING ONLINE AND I WILL NOT SAY THE LOWER COST ÃÃBUT AT LEAST FOR THOSE WHO THINK SOLAR IS PART OF THE SOLUTION Ã ÃPEOPLE CAN SAY OKAY, WE'VE GOT A PART IN THE MIX. YOU CAN SELL THEM SOLAR VIA COMMUNITY SOLAR PROJECTS WHERE SOME CUSTOMERS WILL PAY AN EXTRA PENNY KILOWATT AN HOUR JUST TO KNOW THE SOLAR IS COMING FROM THERE. YOU'RE IN A POSITION TO OFFER THEIR AND THAT'S YOUR CHOICE.

HAT'S GREAT. IF YOU LOOK AT THE JOBS OF FP UL A ÃÃTHE JOBS ARE AROUND 300 PEOPLE. THE ELECTRIC SITE IS RIGHT AT ABOUT 100.HOSE HUNDRED JOBS ÃÃTHOSE 100 JOBS HERE SPIN OFF ABOUT $3.4 MILLION OF ECONOMIC VALUE BECAUSE THEY SPENT LOCALLY. THEY TAKE THOSE OFF AND THEN THOSE, WAY.

THE UTILITIES AS A WHOLE IS 11 MILLION IF YOU COUNT THE WATER WASTEWATER AND ALL THE OTHER UTILITIES THERE. THE SECOND ECONOMIC PIECE IS THE ELECTRIC UTILITY SHARE OF THE TRANSFER TO THE CITY. HIS AROUND $4.6 MILLION A YEAR. THAT GOES BACK, AND HELPS FUND THE CITY, IT'S AN IMPORTANT PIECE OF THAT BUDGET. THE FP USA IS 7.6 MILLION AND IF YOU THINK ABOUT IT ÃÃTHE ELECTRIC UTILITIES AROUND 61 PERCENT OF ALL OF THE UTILITY TRANSFERS COMES OUT ELECTRIC UTILITY. IT TENDS TO CARRY THE MAJOR LOAD IN ALL OF THE CITIES THAT HAVE THE ELECTRIC UTILITY. SO THERE'S ECONOMIC VALUE, BUT THERE'S ALSO CUSTOMER SERVICE VALUE AND RELIABILITY. AND SOME OF YOU MAY HAVE SEEN THIS DEPENDING ON WHICH HURRICANE AFFECTS WHICH COMMUNITIES ÃÃTHE ONE THAT MOST RECENTLY PROBABLY HAD THE BIGGEST IMPACT THAT WE COULD HAVE EITHER DONE IRMA, WHICH IS BACK IN 2017 AND THEN I FORGOT THE NAME OF THE ONE THAT'S TURNED RIGHT OUTSIDE OF FORT

PIERCE AND NORTH. I FORGOT. >> DORIAN?

>> DORIAN, THANK YOU. DORIAN.HIS SLIDE WOULD LOOK ALMOST IDENTICAL TO DORIAN.

AND WHAT IT SAYS IS ALL THE CUSTOMERS OUT IN ST. LUCIE COUNTY ÃÃWHICH IS THIS AREA Ã ÃWHAT PERCENT OF THEM WERE STILL OUT AFTER ONE DAY OR TWO DAYS AND THREE DAYS AND IF YOU LOOK AT FPUA ÃÃAFTER THE SECOND DAY, THE CUSTOMERS ALMOST 90 PERCENT OF THE CUSTOMERS WERE BACK IN SERVICE AFTER THE SECOND DAY IN IRMA ND ESSENTIALLY YOUR CUSTOMERS GOT SERVICE BACK A DAY SOONER THAN THEY WOULD HAVE IF THEY WERE ANYWHERE ELSE IN THE COUNTY.

THAT'S RELIABILITY.HAT'S ONE DAY OF MEAT THAT MEAT MIGHT NOT HAVE GONE BAD.

OR AFTER IRMA WE NEEDED AIR CONDITIONING BECAUSE I REMEMBER IT WELL.

IN THE POINT OF THIS IS THE MUNICIPAL IS ALWAYS HAPPENING. THE REASON IT HAPPENS IS BECAUSE WHEN THERE'S A MAJOR EVENT ÃÃYOU ALL FOCUS RIGHT HERE ON THIS COMMUNITY.

YOU DON'T START DRIVING 50 MILES THIS DIRECTION AND 50 MILES THAT DIRECTION.

YOU DEAL WITH THE COMMUNITY HERE IN ALL THE RESOURCES COME IN AND IF MORE RESOURCES ARE NEEDED ÃÃTHEN WHAT YOU CAN PROVIDE, THE MUTUAL AID NETWORK FOR MUNICIPALS AROUND THE NATION ESSENTIALLY COMES AND FILLS IN AND SOLVES THE PROBLEM.AND SO THIS CHART I CAN PICTURE HURRICANE AFTER HURRICANE IT LOOKED ALMOST IDENTICAL.

IT'S A FACT. BESIDES THAT ÃÃYOU ALL ARE OBVIOUSLY INVOLVED IN THE LOCAL COMMUNITY DOING ALL KINDS OF THINGS. JAVIER AND RACHEL COULD TALK AT LENGTH ABOUT ALL THE THINGS THAT YOU DO. THAT'S VALUE.

ALMOST EVERY UTILITY CITY THAT HAS ELECTRIC UTILITY. USUALLY THE STREET CHRISTMAS

[00:20:04]

SO THAT'S JUST ONE OF THOSE THINGS THAT THOSE THINGS HAPPEN AND YOU KNOW ÃÃTHE BACKPACK ATTACK OR YOU COLLEGES OR THE BAXTER PAX IN BACKPACK AND ALL THOSE THINGS ARE OF GREAT VALUE TO THE COMMUNITY. AND THEN FINALLY, JUST THE ABILITY TO HAVE A LOCAL VOICE.

OUR CUSTOMERS DON'T HAVE TO GO TO TALLAHASSEE. IF THEY HAVE A CONCERN.

THEY COME RIGHT IN HERE. THEY GO RIGHT IN YOUR OFFICE. AND THEY DRESSED PEOPLE DIRECTLY. THAT'S GOOD AND BAD. BUT YOU GET DIRECT FEEDBACK AND THINGS GET DONE. GOVERNMENT AT LOCAL LEVEL. IT PULSES TO THE CUSTOMER IS WHAT TENDS TO BE THE MOST RESPONSIVE AND SO YOU ALL PROVIDE THAT.

AND SO ÃÃYOU SHOULD BE PROUD OF THAT AND YOU SET THE PRIORITIES.

YOU KNOW? IF YOU MAY HAVE DIFFERENT PRIORITIES THAN SOMEBODY IN A DIFFERENT CITY. YOUR WASTEWATER FACILITY WASTEWATER TREATMENT FACILITIES HAVE VERY DIFFERENT PRIORITIES THAN OTHER COMMUNITIES RIGHT NOW.

YOU HAVE THE RIGHT TO DO THAT. THAT'S WHAT LOCAL ELECTRIC FACILITY DOES FOR YOU.

AND AGAIN ÃÃTHE WHOLE GOAL IS TO PROVIDE A BETTER QUALITY OF LIFE FOR YOUR FAMILY SO THE BUSINESSES AND FAMILIES CAN ACTUALLY PROSPER. IF WE DO OUR JOB AND PROVIDE LOW-COST POWER, THERE'S MORE MONEY IN PEOPLE'S POCKETS TO SPEND.

THE LIGHTS STAY ON LONGER. YOU HAVE ALL HAVE PROVIDED THAT AND BUSINESSES HAVE A BETTER SHOT AND SO WITH THAT ÃÃIT'S YOU KNOW ÃÃWE WANT TO BE PROUD OF THE UTILITY AND THANKED THE TEAM HERE. YOUR TEAM IS DOING A GOOD JOB. JAVIER IS LEADING WELL AND WE GOT A NEW PLANT MANAGER AT TREASURE COAST AND THIS FRIDAY WE'VE GOT A BIG EVENT.

YOU ALL DON'T KNOW ABOUT ÃÃ BUT WE ARE GOING TO BE TESTING USING DIESEL FUEL AS A BACKUP AT TREASURE COVE FOR THE FIRST TIME IN 15 YEARS OR SO BECAUSE IF EVER THERE IS A DAY WHEN NATURAL GAS SUPPLIES ARE RETAILED IN FLORIDA, WE HAVE TO RUN DIESEL FUEL TO MAKE SURE WE KEEP THE LIGHTS ON. SO IT'S A BIG DAY IT SEEMS TO BE WORKING FOR ABOUT A YEAR TO MAKE THIS THING HAPPEN ON FRIDAY. SO ÃÃIF WE ARE DANCING IN THE STREET ÃÃTHAT'S A GOOD THING. [LAUGHTER] SO. WITH THAT I'LL TAKE ANY QUESTIONS YOU MIGHT HAVE.

>> ANY QUESTIONS? >> MADAM CHAIR ÃÃI JUST HAVE ONE QUICK THING.

SO ÃÃMR. WILLIAMS, THE IMPRESSION THAT I GOT DURING 2022 WE HAD A LOT OF PRICE

VOLATILITY FOR GAS, RIGHT? >> YES. >> AND WE MET A LOT OF HARD DECISIONS THAT YEAR. AND JAVIER SAW THAT PRETTY MENTIONED TO ME A COUPLE OF TIMES THAT HE HAD ALOT SLEEPLESS NIGHTS. IN GOING INTO THE FM PA ÃÃ CONFERENCE 2022 AND THEN ALSO HEARING SOME OF JAVIER'S WELL VEILED AND DIPLOMATIC COMMENTS PÃÃIT SEEMS LIKE HE IN PARTICULAR FOUGHT VERY HARD TO MAKE SURE THAT FMPA AS A WHOLE MADE DECISIONS TO HELP INSULATE OUR CUSTOMERS FROM WILD PRICE HIKES.

THAT'S A LITTLE BIT OF SPECULATION ON MY PART BUT I WANTED TO SEE IF YOU CAN VERIFY

AND SAY THAT. >> THAT'S NOT SPECULATION. THAT IS FACT.

AND I THINK WHAT HAPPENED WAS WE HAD BEEN IN ABOUT AN EIGHT YEAR PERIOD WHERE PRICES WERE VERY STABLE AND I KNOW EVERYONE SAID WHY SHOULD WE ESSENTIALLY PROVIDE INSURANCE TO MAKE SURE THE PRICES DON'T DO THAT AT HAND. AND THEN THEY SAW HOW BAD PRICES COULD GET AND THEN JAVIER WAS ONE OF THOSE LEADING SAYING WE NEED TO PROTECT OURSELVES BECAUSE I CAN LIVE WITH A 5Ä0 PERCENT AND MAYBE BIRTH T RATE INCREASE.

OUR CUSTOMERS CANNOT LIVE WITH A 40 PERCENT RATE INCREASE. IN SEVERAL UTILITIES HAD EXPERIENCED THAT. AND SO SOME HAD A BIGGER WARCHEST.

SEVERAL DID. JAVIER WAS ONE OF THE LEADING ONES THAT SAID WE CANNOT STAND THAT. OUR CUSTOMERS HERE IN FORT PIERCE CANNOT STAND A 40 PERCENT RATE INCREASE. UNDERSTANDABLY. SO HE KEPT DRIVING AND DRIVING.

I WILL TELL YOU NOVEMBER OR OCTOBER, HE RUNS TOGETHER FOR ME IN THE LAST BOARD MEETING.

THE LAST OCTOBER MEETING. WE ACTUALLY PUT ON MORE RISK PROTECTION IN THE OUT YEARS VERY MUCH AT JAVIER'S PUSHING ALONG WITH A FEW OTHERS AND SO ÃÃWE HAVE NOT ONLY SOLVED THE PROBLEM THROUGH 2025 ÃÃWE ARE NOW HAVING A NICE INSULATION THROUGH 2026.

AND ACTUALLY IN JANUARY, WE ARE GOING TO PUT IN PLACE OR EARLY SPRING BACK TO THE BOARD THE REQUEST KIND OF A PROBLEMATIC WAY TO MANAGE RISK ON A ROLLING BASIS.ERSUS WAITING FOR SOME EVENT. YOU KNOW? I'D LIKE TO SAY EVERYBODY SAYS I SAVE MONEY BY NOT HAVING ANY LIFE INSURANCE UNTIL THE DAY I NEEDED AND THAT I'VE LOST

[00:25:02]

>> I APPRECIATE THAT. AS A BOARD MEMBER I WANT TO SAY THANK YOU FOR THAT AND ALSO AS

AN ELECTRICIAN HERE. I WANT TO SAY THANK YOU. >> YES.

>> YES.

>> MADAM CHAIR? >> YES. >> SO ÃÃTHIS COMING LEGISLATIVE SESSION THEY ARE ALREADY HAVING COMMITTEE MEETINGS AND SO I'M ASSUMING THAT OUR TEAM, WHICH IS I THINK FM EA MORE THAN FMPA IS GOING TO BE MONITORING WHAT LEGISLATURE TRIED TO DO LAST TIME AND IS IT STILL THE GAINESVILLE UTILITY NOW?

DID THEY GET A NEW BOARD OR DID THEY GET A RESTRUCTURE? >> YES.

JUST TO MAKE SURE EVERYBODY UNDERSTANDS ÃÃTHE GAINESVILLE UTILITY FOR 20 YEARS, THE CITY COUNCIL WAS MAKING DECISIONS THAT DROVE PRICES HIGHER. AFTER 20 YEARS THERE WERE A LOT OF RESIDENTS WHO WERE UPSET, BUT MORE IMPORTANTLY THERE WERE ABOUT 40 PERCENT OF OUR PCUSTOMERS WHO ARE NOT CITIZENS OF THE CITY OF GAINESVILLE AND YET THEY PAID ELECTRIC BILLS THAT WERE THE HIGHEST IN THE STATE. AND SO AFTER 15 OR 20 YEARS OF THIS GOING ON ÃÃTHE STATE SENATOR STATE RAN FROM THE AREA SAID WE'VE GOT TO CHANGE SOMETHING. AND ORIGINALLY THERE WAS A BILL PUT IN THAT WOULD'VE BROUGHT ALL THE UTILITIES UNDER LIMITED TRANSFER, RATE REGULATION AND ALL KINDS OF THINGS LIKE THAT.

THE NEGOTIATION WAS DONE ESSENTIALLY IT WAS AGREED THAT IT WOULD BE A TARGETED ONLY AT GAINESVILLE. SO WHAT THEY CALL A LOCAL BILL THAT GETS PASSED IN THE LEGISLATURE. I'M NOT THE EXPERT ON IT, BUT ESSENTIALLY IT'S A THE CITY OF

GAINESVILLE LOST CONTROL OF THE ELECTRIC UTILITY. >> RIGHT.

>> AND THE GOVERNOR APPOINTED THE BOARD OF LOCAL CITIZENS BOTH INSIDE THE CITY AND OUTSIDE WHO TAKE ELECTRIC SUPPLY FROM THEM. BUT THE CITY COUNCIL HAD, YOU KNOW, DECISION AFTER DECISION. WE COULD GO THROUGH AND ACTUALLY I WOULD ENCOURAGE IF YOU WANT TO LEARN ABOUT THAT AT OUR JANUARY POLICYMAKER MEETING IN ON THE WEDNESDAY WEDNESDAY AND I FORGOT THE DAY OFF THE TOP OF MY HEAD. IT'S LIKE THE 17TH OR SOMETHING LIKE THAT. WE WILL HAVE EDWARD BARSKY, WHO IS THE FORMER HEAD OF GR UTILITY RULEBOOK AND HE WILL LAYOUT HEARS ALL THE DECISIONS AND WHY OUR COST GOT HIGH AND HERE IS WHY THIS HAPPENED. YOU KNOW? AND WHAT WHERE DO YOU GET IT AND HE UNDERSTANDS ALL THE DETAIL BECAUSE HE HAD TO UNWIND AND IT'S A STORY OF NOT FOCUSING ON CUSTOMERS. CUSTOMERS WANT LOW COST POWER RELIABLE.

THEY DON'T WANT TO NECESSARILY BE THE CUTTING-EDGE OF GREEN TECHNOLOGY.

YOU KNOW? BECAUSE MOST CUSTOMERS SAY I WANT LOW COST.

GREEN WAS HIGH COST AND GAINESVILLE WENT THE OTHER WAY. HEY WENT VERY GREEN AND THEY

PAID DEARLY FOR. >> RIGHT. >> AND I WAS WONDERING IF YOU THINK THAT KIND OF THING IS GONNA COME BACK FOR THIS SESSION.

>> I DON'T ÃÃYOU KNOW ÃÃWE HOPE IT WON'T. THERE ARE CERTAINLY PEOPLE WHO WOULD WANT. ONE OF THE THINGS THAT WE WORKED WITH THE CITY'S ABOUT IS THAT IF YOU HAVE CUSTOMERS WHO ARE OUTSIDE THE CITY LIMITS ANY MORE THAN 20 PERCENT OR SOMETHING. YOU HAVE A UTILITY ADVISORY BOARD? OR SOMETHING THAT ALLOWS REPRESENTATION OF BOTH INSIDE AND OUTSIDE THE CUSTOMERS?

YOU ALL HAVE THAT. >> RIGHT. >> THERE ARE OTHER UTILITIES THIS YEAR THAT IF YOU'VE LEARNED THE LESSON AND SAID I'M GOING TO GO AHEAD AND DO THAT BECAUSE LIKE A LEESBURG THEY PUT ONE IN PLACE PRINT SOME OF THE OTHER UTILITIES ACTUALLY DO THAT. KEY WEST IS SELECTED FROM THE ENTIRE POPULATION AND TWO MUST BE OUTSIDE THE CHARTER. THE CITIES THAT ARE MANAGING THAT, YOU'RE GOING TO INSULATE YOURSELF AND THAT WAS THE ONE COUNSEL WE SAID JUST MAKE SURE YOUR CUSTOMERS ARE REPRESENTED.

SAY YES, WE'VE GONE OUTSIDE THE CITY CUSTOMERS REPRESENTED SO THERE'S NO BIAS HERE AND TAKE THE TAXATION WITHOUT REPRESENTATION ARGUMENT OFF THE TABLE.

SO I THINK WE ARE IN BETTER SHAPE BECAUSE SEVERAL OF THE COMMUNITIES HAVE TAKEN THE

ADVICE AND TAKEN THE ACTION. RIGHT? >> RIGHT.

RIGHT. ONE MORE IF I COULD DO A FOLLOW-UP.

SO THERE'S ALSO ALREADY INTRODUCED AN INCREASE IN SOVEREIGN IMMUNITY LIMITS FOR GOVERNMENT ENTITIES. I'M ASSUMING WE ARE GOING TO FOLLOW THAT, WHICH WILL INCREASE OUR INSURANCE RATES IF IT PASSES. SO SINCE FLORIDA IS ALREADY IN AN INSURANCE CRISIS ÃÃTHIS WILL BE ÃÃTHIS WILL BE AN INCREASED COST FOR GOVERNMENTS THROUGHOUT THE STATE AND THEY HAVE A REAL AFFINITY AND THERE SEEMS TO BE A MOMENTUM BEHIND

[00:30:03]

YES. YES. >> YES.

THAT ONE IS A FMEA ONE. >> BUT I HOPE THEY ARE ON TOP OF IT BECAUSE WE'RE GOING TO NEED THAT BECAUSE THAT'S A REAL PRIORITY FOR THEM. BECAUSE THAT WILL INCREASE ÃÃ THAT WOULD INCREASE OUR TAXES IF AN INCREASE THE WHOLE INSURANCE PROBLEM.

>> WE WILL MAKE SURE ÃÃI'M SURE IT'S ON AMY'S LIST AND RYAN MATTHEWS.

BUT WE WILL MAKE SURE THAT JAVIER CAN MAKE SURE AS WELL. >> SHE IS.

SHE DID SEND OUT AN EMAIL ABOUT IT IN THERE. AND THEY ARE VERY MUCH AWARE OF

IT AND MONITORING IT. >> AND RYAN WORKS WITH THE CITY OF FORT PIERCE TWO.

RIGHT? >> THEY GO.> THANK YOU MADAM CHAIR.

>> MADAM CHAIR I HAVE A QUICK FOLLOW-UP TO MR. LAMBERT AND MR. JACOBS COMMENTS.

THE I'LL TAKE THE CREDIT WHEN AROUND GIVEN CREDIT. BECAUSE LAST YEAR WAS A TOUGH YEAR BECAUSE IT WAS A TOUGH YEAR FOR EVERYBODY. THE FMPA TEAM REALLY IS A FANTASTIC TEAM. THEY ARE ON TOP OF IT. THEY ARE HELPING US ALONG THE WAY. THEY ARE HELPING US TRY TO PREDICT THESE THINGS.

OBVIOUSLY YOU CANNOT PREDICT HOW BAD OR HOW GOOD IT'S GOING TO BE.

YOU KNOW THAT IT'S GONNA BE GOOD OR BAD ÃÃYOU JUST DON'T KNOW HOW MUCH OF IT IS CAN BE GOOD SO ÃÃA LOT OF THE THE WORK THAT WE DID WAS A RESULT OF BEING THE FIRST OUT OF THE GATE TO RAISE THE PCA IN THE STATE. WE WERE ONE OF THE FIRST CITIES

[E.3. Quarterly Presentation - FPUAnet, Advanced Metering Infrastructure (AMI) Project, and Weatherization Education Outreach Program (WEOP)]

SO WE WERE ABLE TO USE THAT KNOWLEDGE AND THAT EXPERIENCE TO WORK WITH FMPA AND LOCK IN THIS PRICE IS THROUGHOUT THE YEAR. SO I'LL TAKE THE CREDIT, BUT FMPA DOES DESERVE A LOT OF THAT CREDIT AS WELL. SO æ

>> GREAT. ANYONE ELSE?

>> THANK YOU SO MUCH. REX THANK YOU FOR THE INFORMATION.

>> THANK YOU FOR HAVING ME HERE. YES, ALL RIGHT.

ADVANCED METERING AND INFRASTRUCTURE.> THANK YOU ADAM CHAIR.

THE NEXT TWO ITEMS WE ARE GOING TO ACTUALLY KINDA PRESENT THEM TOGETHER BECAUSE THERE'S A LITTLE BIT OF OF OVERLAP DURING THE PRESENTATIONS. THE PROJECT IN THE FPUA REP PROJECT, MR. LAMBERT WILL REPRESENT IN THIS IS THE FIRST IN OUR SERIES TO PROVIDE QUARTERLY UPDATES TO THE BOARD REMEMBERED ONE OF THE THINGS THAT WE TALKED ABOUT IN OUR STRATEGIC PLANNING?ND JUST ALSO IN GENERAL, BUT ALSO WE SIMPLIFIED THAT THAT WE WOULD COME BACK TO THE BOARD TO PROVIDE THIS PRESENTATION. SO MR. RUTHERFORD WILL TACKLE

THE [INDISCERNIBLE] >> MR. CISNEROS, GOOD AFTERNOON. MADAM CHAIR AND MEMBERS OF THE BOARD.

LIKE MR. CISNEROS SAID, WE'VE GOT KIND OF THREE CONVERSATIONS WE WOULD LIKE TO HAVE WITH YOU HERE.ERE WE'RE GOING TO START OFF WITH WEATHERIZATION PROGRAM.

FOLLOW IT UP WITH AN AMI DISCUSSION AND AFTER THAT JASON WILL COME UP AND TALK ABOUT SOME KPIS THAT WE ARE LOOKING TO INTRODUCE AND FOLLOW FOR THE BOARD OR THE FPUA NET.

WE WILL START WITH THE WEATHERIZATION EDUCATION OUTREACH PROGRAM FOR THIS HAS BEEN A TOUGH CONVERSATION WITH HAD FOR A FEW YEARS. WE TRIED A LOT OF DIFFERENT THINGS TO TRY AND MAKE THIS SUCCESSFUL. SO OVER THE PAST FEW YEARS WE'VE GENERALLY SPENT OR HAD BUDGETED FOR THIS WITH ALLOCATIONS FROM FMPA FROM 50 Ã $75,000 FOR WEATHERIZATION EFFICIENCY PROGRAMS AND OFFER EDUCATIONAL EFFORT TO SUPPORT LOCAL COMMUNITY. A HISTORICAL EXPENDITURE INCLUDE INCLUDE EXPENDITURES ON THINGS LIKE EXTERIOR DOOR REPLACEMENT, INSULATION, GAS, WATER HEATERS.

WINDOW CAULKING, LOW-FLOW PUDDLING FIXTURES AND LED LIGHTING AND IN ORDER TO HELP RESIDENTS THROUGH FISCAL CHALLENGES AND AVOID SOME POWER COST ADJUSTMENTS.

PREVIOUS QUALIFICATIONS FOR THE PROGRAM IS PRETTY DIFFICULT. IT WAS A PRETTY LONG APPLICATION AND IT WAS A PRETTY CUMBERSOME AND A LOT OF FOLKS WOULD PICK IT UP NOT REALLY GET IT AND PUT IT DOWN SO THAT WAS PONE OF THE CHALLENGES WE HAD WITH THAT IN THE PAST.

SO WE KIND OF SWITCH GEARS A LITTLE BIT. WE GOT AWAY FROM ALLOCATION AND WE SIMPLY HAVE JUST A WAIVER THAT WE WOULD LIKE TO COME TO YOUR HOUSE AND DO SOME THINGS AND GIVE US PERMISSION AND KIND OF DON'T HOLD ANYBODY. EVERYBODY'S HELD HARMLESS.

THAT'S KIND OF WHAT WE HAVE NOW. WE DID TAKE MR. LAMBERT'S ADVICE OR ACTUALLY FROM WHEN HE WAS A STAFF MEMBER HE SAID IN A WE SHOULD BE DOING SOMETHING DIFFERENT. WE SHOULD BE LOOKING AT DATA-DRIVEN THINGS.

YOU KNOW? LET'S LOOK AT THE EFFICIENCIES OF THESE HOMES AND LET'S GET ALL THAT PUT TOGETHER AND GET AFTER IT THAT WAY. SO THAT'S ALWAYS BEEN A PRETTY GOOD IDEA AND WE NEVER REALLY DONE IT. BUT THIS YEAR WE TRY.

2023 THIS PAST YEAR WE DID TRY. WE TOOK THE SQUARE FOOTAGE OF THE HOMES AND WE TOOK THE KILOWATT HOURS THAT PEOPLE USED. DRIVE-THROUGH FLOW FORMULA AND THESE ARE THE MOST EFFICIENT 100 HOMES. THAT'S WHAT WE DID.

[00:35:03]

AND YOU JUST CAN'T GET UP THERE AND BLOW INSULATION IN. FOR THOSE PURPOSES.

YOU JUST CANNOT DO IT. OUT ON THE 35 HOMES THAT WE WERE ACTUALLY ABLE TO IDENTIFY ÃÃWE STARTED IN CONTACT WITH AN EMAIL, TELEPHONE, MAILERS, BILL INSERTS AND EVERYTHING.

UNFORTUNATELY WE WERE ABLE TO PROVIDE CEILING INSULATION TO SIX OF THE 100 HOMES.

REALLY TOUGH TO GET PEOPLE TO TALK TO US. TO TRUST US.

TO BELIEVE THAT IT'S REAL PROGRAM THAT REALLY GIVES YOU FREE INSULATION.

IT WAS REALLY TOUGH. SO I WOULD LIKE TO DO SOMETHING JUST A LITTLE DIFFERENT IN THE COMING YEAR. WE DO BELIEVE THAT CEILING INSULATION IS THE BIGGEST BANG FOR THE BUCK. THERE'S ALL KINDS OF REPORTS OUT THERE THAT SAYS IN FLORIDA DURING THE SUMMER HOT MONTHS, CEILING INSULATION IS THE BIGGEST THIEF OF ENERGY.

SECOND TWO INEFFICIENT APPLIANCES. IN FLORIDA.

THAT'S REALLY WHAT STUDIES WILL TELL YOU. WE WOULD LIKE TO DO IS TAKE THE LESSONS WE LEARNED LAST YEAR AND EXPAND THIS. RATHER THAN USE DATA-DRIVEN ÃÃ BECAUSE IT WAS A GREAT IDEA AND DID NOT RESULT IN A WHOLE LOT OF CUSTOMERS WANTING TO HOP ON BOARD. WE WOULD LIKE TO TAKE THIS AND OFFER CEILING INSULATION TO EVERY HOME AT OUR ELECTRIC SERVICE TERRITORY. OF COURSE WE NOT CAN'T DO THEM ALL AT ONCE. WE ARE ON BUDGET. BUT IF WE OPEN IT UP TO A RUNNING LIST AND WE SET ALL RIGHT AND WE WORKED WITH MS. TENENTS GROUP ON A CAMPAIGN TO GET INTO THE COMMUNITIES AND TELL THEM THIS IS A REAL THING GUYS.

REALLY JUST WANT TO PROVIDE YOU FREE CEILING INSULATION. HROUGH THE CONSERVATION FUND OF FM PA AND PURITY ABOUT CONTRACTOR THAT'S BEEN VETTED THROUGH A PROCUREMENT PROCESS.

AND HE'S ON BOARD. EVERYTHING IS GOOD TO GO. WE JUST NEED CUSTOMERS NOW.E NEED PEOPLE WHO WANT THIS. SO I THINK IF WE CAN WORK WITH RACHEL, WE GET A RUNNING LIST PUT TOGETHER EVERY YEAR AND WE SPENT ALL THE MONEY THAT'S IN THE CONSERVATION FUND THAT'S ALLOTTED TO THE WE OPT AND WE JUST KEEP TAKING AWAY AT OUR CUSTOMERS.

I THINK MAYBE AFTER YEAR ONE, THIS WILL CATCH FIRE AND PEOPLE UNDERSTAND THAT IT'S REAL AND THAT IT'S REAL PROGRAM AND THAT TRULY IS AT NO COST. I DO BELIEVE THAT OUR COMMUNITY WILL HOP ON BOARD AND I THINK WE WILL HAVE MORE SUCCESS THAN MAYBE THE DATA-DRIVEN.

I THINK DATA-DRIVEN WAS A GOOD IDEA. I BOUGHT IT.

UNFORTUNATELY I JUST COULDN'T GET THAT GOING. SO WE DON'T LOSE THAT MONEY.

THAT WE SPENT LAST YEAR AND IT ROLLS OVER. OF GOT A LITTLE BIT ABOUT LOUDER FUND. SO WE ARE ABLE TO GET MORE CUSTOMERS OUT OF THE DOOR AND THIS OFFERING. AND EVERY YEAR GOING FORWARD AS LONG AS THE CONSERVATION FUND IS THE SAME ÃÃAS LONG AS THEY ARE STILL FUNDING US AND GIVING US THAT MONEY, WE CAN DO THIS.

I BELIEVE IT'S RIGHT. I BELIEVE IT WILL GIVE US THE BEST BANG FOR OUR BUCK.

WE ARE NOT HAVING TO MANAGE SEPARATE CONTRACTORS FOR CARPENTRY AND WINDOWS AND ALL THIS OTHER STUFF THAT REALLY AREN'T THE BIGGEST BANG FOR THE BUCK.

NOT IN FLORIDA. SO THAT'S WHAT I WOULD LIKE TO DO.

I ONLY GET MUCH HERE. MOVING FORWARD ÃÃREALLY TO START OUR COMMUNITY CAMPAIGN AND VERY EARLY 2024. RACHEL'S GROUP IS REALLY REALLY BUSY RIGHT NOW WITH GRANTS.

BUT WE THINK THAT WE'RE GONNA HAVE SOME TIME TO GET AFTER THIS IN EARLY 2024.

PROCESS OUR WAIVERS THROUGH THE YEAR AND GET OUR LIST RUNNING IN CONTRACTOR AND MAY BE BEGIN INSTALLATION AND MAYBE END OF QUARTER TWO. FISCAL QUARTER TWO.ISCAL QUARTER TWO AND RUN THAT THROUGH THE YEAR TO INTERRUPT. WITHOUT MONEY.

WE DON'T HAVE TO WAIT UNTIL THE NEXT YEAR TO START READING NEXT YEAR'S LIST BECAUSE HOPEFULLY AS THIS THING BUILDS MOMENTUM Ã ÃWE WILL UP A RUNNING LIST THAT WE CAN STAY ON TOP OF IT.

THAT WOULD BE THE PLAN. I DON'T KNOW THAT IT'S A FOOLPROF PLAN BECAUSE ALL GREAT PLANS ARE GREAT UNTIL THEY MEET THE FIRST CHALLENGE. SO THAT'S WHAT I THINK WE SHOULD DO.UT I WOULD JUST LIKE TO HAVE A DISCUSSION WITH YOU AND SEE WHAT YOU THINK.

WHAT YOU THINK OF THAT PLAN OF TRYING TO GET OUR FOLKS CEILING INSULATION OR ANY OTHER IDEA?

THIS IS WHAT I THINK WE SHOULD DO. >> WELL ÃÃI WOULD LIKE TO NOTE ÃÃHAVE WE LOOKED INTO ASKING LANDLORDS TO JUMP ON BOARD BECAUSE AGAIN, A LOT OF OUR COMMUNITY ÃÃTHE PEOPLE DON'T OWN THEIR OWN HOMES AND IF WE CAN WORK SOMETHING OUT WITH THE LANDLORD TO MAKE THESE HOUSES EFFICIENT ÃÃTHEY JUMP ON BOARD TO GET THE INSULATION

AND GET THESE HOUSES UP TO PAR. TO SAVE ENERGY. >> YES MA'AM.

[00:40:04]

ABSOLUTELY. THE LANDLORDS WILL BE A KEY IN THIS DIFFERENT APPROACH.

ECAUSE REALLY IF WE DO THIS IN A WAY THAT WE JUST KEEP A RUNNING LIST ON THE FIRST FOLKS IN THE CONSIGNMENT WAIVERS THAT WE WORK ON, WE WILL KEEP THAT LIST RUNNING.

I DO BELIEVE THE LANDLORDS WILL BE ONE OF THE FOLKS THAT WE CAN TALK TO AND I'M NOT THE EXPERT IN THE FIELD AS A TENANT. BUT I THINK WE ARTIE SPOKE ON THAT AND I THINK THAT'S ONE OF THE GROUPS THAT WE ARE HAVING A CONVERSATION WITH. BOX SO WINTERS CAN BE ELIGIBLE, IS THAT WHAT YOU'RE AYING? WINNERS WILL BE ELIGIBLE, IS THAT WHAT YOU'RE SAYING?

>> IN THE PAST ÃÃIT WAS KIND OF LIKE YOU HAD ÃÃHOMESTEAD EXEMPTION.

>> RIGHT. >> SO THAT WAS TIED TO THE MONEY AND WE HAD A VERY SMALL PORTION OF THE WINNINGS COME FROM THE CITY OF FORT PIERCE IN AN APPLICATION WENT THROUGH THEM. WE KIND OF TAKEN THAT AWAY AND ARE DOING IT OURSELVES.

WE DON'T HAVE THE ISSUE ANYMORE PRINCE OF THIS IS OPEN TO RENTERS, HOMEOWNERS.

ANYBODY NOW. IT'S DIFFERENT. >> DO YOU THINK THE CUSTOMERS DID NOT BUY IN BECAUSE THEY WERE RENTERS AND THEY DID NOT UNDERSTAND? OR WERE THEY ACTUALLY HOMEOWNERS THAT DID NOT WANT TO BUY INTO IT?

>> I CAN ONLY SPEAK FOR THE ONES THAT I SPOKE ABOUT. I CALLED EVERY SINGLE PHONE NUMBER THAT WE HAD MYSELF AND SO I WANTED TO SPEAK TO PEOPLE. I WANTED TO FIND OUT WHAT WAS GOING ON. HONESTLY I GOT THE FEELING THAT MOST FOLKS BELIEVED IT WASN'T REAL. AND THAT IT WAS JUST A SOLICITATION.

>> OH. >> SO WE REALLY NEED THAT COMMUNITY EFFORT PIECE THAT CAMPAIGN TO EDUCATE THE PUBLIC THAT THIS IS A TRUE THING. AND THAT WOULD GO A LONG WAY.

BUT WE CANNOT REALLY DO THAT. LIKE I SAID FOR THE SAME REASONS AS BEFORE.

HAD WE DONE THAT BEFORE AND WE HAD TO FOLLOW THAT UP WITH YES, PONLY A CERTAIN AMOUNT OF VIEW FROM THE TOP DOWN CAN TAKE ADVANTAGE OF THIS. I THINK WE WOULD'VE LOST THEM RIGHT THERE. SO THE CALL I MADE ÃÃI REALLY FEEL LIKE WE MADE A GOOD DECISION. I THINK WE TRIED IT. I THINK A BETTER APPROACH WOULD BE TO CAMPAIGN, COMMUNITY, TALK TO THEM AND THEN JUST START RUNNING A LIST AND THEN WE WILL KEEP IT GOING IN EVERY SINGLE YEAR. AND EVENTUALLY I THINK WE WILL

KNOCK THEM ALL OUT EVERYONE THAT'S MOSTLY IMPACTED. >> MADAM CHAIR ÃÃI DID WANT TO ADD A COMMENT TO FOLLOW-UP MR. RUTHERFORD SAYING SO ÃÃ THE OLDER PROGRAM ÃÃTHE OLDER PROGRAM IS THAT WE HAVE IN PLACE FOR YEARS OR 10 YEARS OR SO.

IT WAS REALLY TOUGH TO REVAMP THE PROGRAM.O THIS WOULD BE THE SECOND TIME WE ARE TRYING TO REVAMP IT. SO THE IDEA HERE IS JUST NOT TO BE HAPPY WITH THE SIX PEOPLE THAT WE GOT, RIGHT?F THERE'S AN OPPORTUNITY TO REVAMP AND TRY TO REACH MORE PEOPLE.

I THINK THAT'S THE EXCITING PART OF IT. I THINK IT WORKED GREAT BECAUSE IT REALY TARGETED THE LOWEST OR THE MOST INEFFICIENT HOMES, WHICH WAS A GREAT PROGRAM.

IT JUST DID NOT REACH ENOUGH SO I'M REALLY EXCITED ABOUT THE OPPORTUNITY TO LOOK AT THE PROGRAM ANDEVALUATE IT IN PIVOT IF WE NEED TO. AND I THINK THIS IS A GOOD

OPTION FOR OUR CUSTOMERS. >> ANYONE ELSE? MADAM CHAIR, I'VE GOT A COUPLE OF COMMENTS.O ÃÃTHANK YOU. I THINK THAT'S A GREAT WAY TO REVIEW ALL OF THE HOMES IN OUR COMMUNITY WITHOUT TRYING TO PICK A SPECIFIC AREA. OR SPECIFIC TYPE OF PERSON, WHETHER BE A HOMEOWNER OR NOT. THINK THAT THIS IS THAT VERY FAIR FOR EVERYONE.

I THINK IT'S A GOOD WAY TO EVALUATE WHICH HOMES REALLY NEED THE HELP.

I DID HAVE ONE QUESTION IN YOUR PRESENTATION ON IT. YOU SAID IN THE ÃÃI DON'T REMEMBER EXACTLY WHAT WORD YOU USED.UT IMMEDIATELY I WAS THINKING DOES THAT COUNTY AND

CITY OR IS THAT JUST CITY CUSTOMERS? >> SO ÃÃTHIS IS DIRECTLY TIED

TO OUR ELECTRIC CUSTOMER BASE. >> OKAY. >> SO ANYONE WHO IS NOT AN

ELECTRIC CUSTOMER WOULD NOT QUALIFY. >> OKAY.

>> MADAM CHAIR? >> YES. >> AND THAT'S ALL.

GREAT INFORMATION. I ESPECIALLY LIKE THAT YOU GUYS DID YOUR RESEARCH TO FIND OUT WHERE YOU COULD GET THE MOST BANG FOR YOUR BUCK BEING THE CEILING INSULATION IS WHERE WE COULD MAKE THE FUNDING FOR THE PROGRAM STRETCH THE FARTHEST AND GET CUSTOMERS THE GREATEST REDUCTION BILLS. SO FOR THE TWO BIG ISSUES THAT YOU GUYS ENCOUNTERED ÃÃONE Ã

[00:45:01]

IT WORKED FOR ME AND I THINK THAT WILL GO A T FURTHER THAN ONE OF US GIVING SOMEONE A PHONE CALL. THAT ALREADY IS CHALLENGING BECAUSE WE'VE GOT SOLAR INSTALLATION COMPANIES CALLING UP PEOPLE AND VISITING HOMES SAYING THEY ARE PARTNERED WITH US AND SAYING THEY HAVE ALL THIS FREE STUFF AND THE NUMBERS DON'T PAN OUT.

WHEN IN MY OPINION SOME OF OUR CUSTOMERS ARE GETTING DUPED BY SOME OF THESE SOLDIERS.

SO WHEN YOU HAVE A CHAMPION THAT SAYS NO I DID TAKE ADVANTAGE OF THAT PROGRAM, YES IT DID REDUCE MY BILLS. NO, I DID NOT HAVE TO PAY ANYTHING AND THERE NEVER WAS ANY COST. THINK THAT MAY GO A LONG WAY. THE SECOND THING IS WITH THE FLAT ROOMS, EVEN THOUGH THIS WOULD BE MORE EXPENSIVE THAN INSTALLING CEILING INSULATION Ã ÃWE CAN CONSIDER DOING POLY ISOFORM BOARDS. FOAM BOARDS ON THE TOP OF THE ROOF. THAT WOULD REQUIRE THAT YOU DO ROLL MORE ROOFING MATERIAL OVER THE FOAM BOARDS. BUT THAT WOULD GO A LONG WAY TOWARDS ADDING SOME INSULATION OR PROBABLY NEXT TO NONE IN THOSE FLAT ROOFS AND THEY WOULD HAVE THE ADDED BENEFIT OF HAVING PURPOSES OF A NEW ROOF. SO ÃÃOBVIOUSLY THAT WOULD BE MORE EXPENSIVE.

THEN JUST ADDING ATTIC INSULATION COULD BUT THERE ARE OPTIONS OUT THERE TO INSULATE

THE FLAT ROOF. >> ON BOTH POINTS ÃÃWE ÃÃ RACHEL AND I HAVE RARELY DISCUSSED YOUR FIRST POINT. ABOUT MAKING THOSE FOLKS ARE CHAMPIONS.

WE ARE ALREADY FOLLOWING THEIR BILL AND EWING USING THEIR USAGE AND LAST YEAR YOU'RE ON YOUR SEEING WHAT THE DATA IS TRYING TO TELL US, RIGHT? WE ARE WATCHING THAT.

THE SECOND THING IS THAT WE DID TAKE A LOOK AT AND WE DO PLAN TO MAKE THEM CHAMPIONS IF EVEN THEY WILL NOT HELP US. WE CAN AT LEAST ASK PERMISSION TO USE THE DATA.

RIGHT? AND ON THE SECOND THING ÃÃWE DID ÃÃWE ACTUALLY HAVE BEEN IN CONTACT WITH A COUPLE OF CONTRACTORS TO FIND OUT AT LEAST VERBAL CONVERSATIONS ABOUT WHAT ARE THE COSTS TO DO THE TYPE OF THINGS THAT YOU'RE TALKING ABOUT? SO THERE REFERS LOOK AT THINGS LIKE THIS. AND I THINK WE CAN DO THAT.

WE ARE JUST GOING TO REACH A LOT FEWER PEOPLE AND BE ABLE TO ÃÃA LOT FEWER PEOPLE WILL BE ABLE TO RECEIVE A BENEFIT FOR THAT.HIS METHOD WITH THE BONE IN INSULATION ÃÃWE CAN GET BETWEEN 30¥0 CUSTOMERS. RIGHT NOW THE BILLS ON THE SMALLER HOMES A THOUSAND Ã1500 SQUARE FEET ARE RANGING IN THE NEIGHBORHOOD OF A THOUSAND Ã15 OR $1600 PER JOB.

RIGHT? SO WE CAN GET BETWEEN 30 AND 50 HOMES DONE A YEAR.

WE'VE GOT 50|5 AND THAT KIND OF MONEY. AND ON THE SAME BUDGET ÃÃWE CAN GET 6Ä0 HOMES DONE THE OTHER WAY. SO I THINK THAT THAT'S A GOOD OPTION AND I THINK WE CAN LOOK AT THAT. I THINK WE CAN TRY AND REACH AS MANY CUSTOMERS AS WE CAN AND I THINK WHEN WE START ÃÃIF THAT STARTS TO THIN OUT IN OUR POOL STARTS TO DWINDLE LITTLE BIT ON THAT ÃÃI THINK THE NEXT OPTION WOULD BE IF WE SOLD THE MONEY COMING IN ÃÃNOT SPEND IT ÃÃWE WILL SPEND AND I THINK YOUR OPTION IS A GOOD

OPTION. >> I AGREE AND IF I WAS IN YOUR POSITION ÃÃI WOULD PROBABLY HAVE THE SAME MODE OF THINKING. LET'S DO ALL THE LOW HANGING FRUIT THAT'S NOT LOW HANGING FRUIT. THAT'S HIGHER UP. SO AS MANY OF THOSE CLIENTS IS AS WE CAN. MAYBE WE START LOOKING AT FLAT ROOFS AND SEEING HOW MANY OF THOSE WE CAN DO OR AFTER WE'VE ALREADY HOPED ALL OF THE FOLKS WITH ATTICS SPRAY INSULATION IN

THE MADE ATTACK THOSE. >> I THINK THAT'S IN OUR MIND. HANK YOU.

>> MADAM CHAIR? >> THE TESTIMONIAL THAT YOUR TRACK TALKING ABOUT USING TESTIMONIALS AND THIS ED FROM THE PEOPLE THAT EVERY DONE IT. SO YOU'VE USED IN LITERATURE AND YOU CAN USE IN A LOT OF DIFFERENT WAYS TOO. AND YOU COULD ALSO PROMOTE THIS THROUGH I WOULD THINK THE ADVISORY COMMITTEE.AKE SURE THAT THEY AND ALSO COME TO THE CITY COMMISSION MEETING WHEN YOU'VE GOT IT NAILED DOWN PRETTY MUCH.

BECAUSE I KNOW THAT OUR COMMISSIONERS WILL BE VERY ÃÃ THIS WILL BE SOMETHING THAT THEY FEEL WILL DIRECTLY HELP OUR CITIZENS AND OUR). AND SO ÃÃWITH ALL OF THAT THERE ÃÃWE NEED TO BUILD THE TRUST THAT IT REALLY IS THIS IS WHAT WE SAY IT IS.

IT'S NOT GONNA COST YOU AND OUR BIGGEST HOPE IS THAT IT REDUCES YOUR WERE OUR PLAN IS TO REDUCE YOUR UTILITY BILL. AND SOMETIMES THAT'S COUNTERINTUITIVE.

[00:50:01]

AND ALSO USE THE ADVISORY COMMITTEE BECAUSE THEY COULD Ã ÃTHEY COULD DO A LOT THE

AMBASSADORS FOR THE PROGRAM. >> GOOD IDEAS. >> I AGREE.> MADAM CHAIR ÃÃ I JUST WANT TO TOUCH ON MR. LAMBERTS. INITIALLY MY FIRST THINKING WAS YES ÃÃSOLAR PEOPLE COME TO OUR DOOR AND THEY SAY THEY ARE WITH FP USA.

SO THAT IS ALSO PART OF IT. RIGHT? SO I SURE WHOEVER IS GOING TO THESE HOMES HAVE OFFICIAL FPU AT UNIFORMS ON AND WHATNOT AS WELL.

CORRECT, RIGHT? AT LEAST I THINK THAT WILL HELP WITH SOME OF THAT.

BUT I THINK TESTIMONIALS ARE DEFINITELY GOING TO BE THE BIGGEST I THINK.

PUZZLE PIECE TO GETTING THE BUY-IN.> ALSO ÃÃWITH THE TESTIMONIALS ÃÃTHEY ARE GREAT ÃÃBUT WE NEED TO ALSO REASSURE OUR CUSTOMERS THAT THEY WILL BE ABLE TO QUALIFY.

BECAUSE WHAT'S HAPPENING IS THAT PEOPLE ARE SAYING WELL ÃÃ I DON'T WANT TO DO IT BECAUSE I WILL NOT QUALIFY. BUT IF THEY NEVER ÃÃIF THEY ARE NEVER GIVEN THE OPPORTUNITY TO LOOK AT THE INFORMATION ÃÃ THEN THEY WILL NEVER KNOW IF THE QUALIFY.

AND ALL THE PEOPLE THINK THAT I DON'T WANT TO DEAL WITH IT BECAUSE I DON'T ÃÃI WILL NOT QUALIFY.AND SO THOSE ARE SOME OF THE PROBLEMS THAT YOU NOTE Ã ÃI THINK YOU ALL ARE RUNNING

INTO ALSO. SO æ >> YOU'RE GONNA HAVE TO REMEMBER THAT WE HAVE NOT BEEN ABLE TO CAMPAIGN THIS YET. I HAVE A LOT OF FAITH IN OUR GROUP AND I'M SURE WE WILL BE ABLE TO COME UP WITH A REALLY GOOD CAMPAIGN AND COULD REACH EVERYONE. AND I THINK WE WILL DO SOME WORK EDUCATING THEM.

AND I THINK YOU KNOW ÃÃTHE FIRST PART OF THE YEAR WE WILL DO THAT.

I THINK IT'S GOING TO BE HAVE SOME REAL SUCCESS WITH THAT CAMPAIGN AND EDUCATE OUR FOLKS

AND MAKE SURE THEY ARE AWARE OF THE PROGRAMS WE HAVE. >> MADAM CHAIR ÃÃALSO ÃÃ EVERYBODY IN THE COMPANY NEEDS TO BE SELLING THIS TOO. IT NEEDS NOT JUST RIGHT ÃÃNOT JUST ONE LITTLE GROUP ÃÃTHE CUSTOMER SERVICE EVERYBODY THAT WORKS INCLUDING US.ECAUSE I THINK THAT'S AN IMPORTANT POINT. IT DOESN'T SOUND LIKE A LOT OF PAPERWORK, RIGHT? YOU'RE REDUCING THE PAPERWORK FOR THE QUALIFICATIONS.

>> ONE SHEET. >> RIGHT. >> AND WHAT WE ENCOUNTERED DURING THE PANDEMIC WHEN WE TRY TO HELP PEOPLE ÃÃTHEY HAD SO MUCH INFORMATION ÃÃTHEY HAD TO PROVIDE AN BE VETTED AND PEOPLE GOT VERY, VERY DISCOURAGED ABOUT APPLYING FOR ANYTHING. SO THAT'S ANOTHER THING THAT WE NEED TO PROMOTE IS VERY LITTLE PAPERWORK. IT'S REQUIRED TO DO THIS AND IF WE DO GET A FLAT ROOF THAT WE DECIDE ÃÃMAYBE WE DO ONE AS A TEST AS A PILOT. YES.

AND SO. >> THE OTHER CHALLENGE IS SO IN ORDER TO QUALIFY ÃÃYOU JUST

CANNOT HAVE A FLAT ROOF. >> OKAY. >> YOU NEED TO BE A FORT PIERCE UTILITY ELECTRIC AUTHORITY CUSTOMER. DOWN THE ROAD YOU CAN FLIP THAT DOWN THE ROAD IF WE START TO FLATTEN THE AS WE LEAVE HERE, WE SHOULD UNDERSTAND THAT FLAT ROOFS WE CANNOT GET TO RIGHT NOW. AND YOU DO NEED TO BE AN

ELECTRIC CUSTOMER IN FPUA. >> MADAM CHAIR, ONE MORE THING WITH THAT TOO.

I THINK IT'S IMPORTANT THAT WE REMEMBER THAT. I THINK IT'S ALSO IMPORTANT THAT WE PARTNERED WITH SOMEBODY THAT WE HAVE A REALLY GOOD PRICE FROM FOR THIS AS WELL FOR THIS, CORRECT? THAT WAY WE HAVE ONE TARGETED MISSION.

HE'S GOT A VERY CLEAR UNDERSTANDING. SAME MATERIAL EVERY TIME AND IS IT THE SAME WAY THAT IT'S APPLIED? EVERYTHING IS CONSISTENT.

SO IT KEEPS THAT COST DOWN SO WE CAN HAVE AS MANY PEOPLE. SO WHEN WE GO TO DO THAT FLAT ROOF ÃÃMAYBE THAT'S A FULL WHOLE NEW THING THAT YOUR THAT'S ALL WE DO IS FLAT ROOFS SO WE CAN GET NEGOTIATED THE BEST PRICE AND MAKE SURE WE HAVE A TARGETED JUST LIKE THE

SAME WAY. SO EITHER WAY. >> WHEN WE TALK ABOUT THE KIND

OF VOLUME THAT WE COULD BE TALKING ABOUT RIGHT? >> I DO WANT TO ADD ONE THING TO THAT THOUGH. I DON'T THINK THAT WE SHOULD YOU NOT ÃÃJUST COMPLETELY ELIMINATE THE IDEA OF HELPING PEOPLE WITH FLAT ROOFS AND STILL HAVE ENOUGH MONEY TO DO A FLAT ROOF AT THE END OF THE YEAR. YOU KNOW? IF WE HAVE ENOUGH MONEY TO HELP A COUPLE OF PEOPLE WITH FLAT ROOFS.

WE HAVE NOT BEEN ABLE TO SPEND ALL THE MONEY AND PEOPLE HAVE ADDICTS AND THEN WE SHOULD BE

ABLE TO ATTACK THAT. >> SURE. >> MADAM CHAIR ÃÃI THINK THIS IS A REAL OPPORTUNITY FOR THE FP USA TO BE DOING SOMETHING FOR OUR CUSTOMERS THAT IS NOT

[00:55:01]

SO I THINK WE REALLY NEED TO PROMOTE THAT AND CELEBRATE THAT.

>> OKAY. >> YES. >> AND EVEN IF WE ÃÃWHEN YOU START CAMPAIGNING ÃÃIF WE CAN GO OUT AND YOU NOTE ÃÃBE THERE AND REASSURE THE CUSTOMERS ÃÃKNOW THAT THIS IS SOMETHING THAT IS BENEFICIAL FOR YOU.

YOU KNOW? IF THEY SEE OUR FACES ÃÃTHEY WILL SAY OKAY ÃÃIT IS LEGITIMATE. YOU KNOW? AND IT'S NOT JUST SOME SCAM THAT'S GOING ON THAT THEY ARE TRYING TO RAISE THEIR RATES OR SOMETHING LIKE THAT.

BECAUSE THAT'S WHAT YOU NOT ÃÃ WE CAN SELL AS WELL. >> MS. BENNETT?

>> MS. BENNETT? >> YES. >> VIDEO.

>> I BELIEVE YOU. [LAUGHTER]

REX YES. >> A LOT MORE PEOPLE WOULD TOO. YES.

SO æ >> ARETHA DOWN AND I'LL BE SURE TO PUT YOU IN.> YES ÃÃI

WOULD BE HAPPY TO. >> WOULD ANYBODY ELSE? >> ARE WE GOOD TO GO WITH THE WE OPT CONVERSATION? YOU DON'T MIND? WE WILL ROLL RIGHT INTO THE AMI CONVERSATION. JUST BRINGING YOU A LITTLE UPDATE ON WHAT WE'VE BEEN DOING WITH THE AMI FOR LITTLE WHILE. WITH ANYTHING I LIKE TO BRING IT UP WITH A LITTLE HISTORY JUST KIND OF HOW WE GOT HERE. THIS PART WAS WITH HONEYWELL. EALLY BACK IN 1718 PLANNING DESIGN IN THESE KINDS OF THINGS. IN 2020 WE KIND OF ENDED OUR TWO YEAR PERIOD IN WHICH WE DID ALL OF OUR TESTING AND DID OUR ACCEPTANCE OF WHAT THE PROGRAM IS GONNA LOOK LIKE AND THEN WE HAVE A FIVE YEAR WINDOW AFTER 2020 WHICH WOULD BE 2025 AND WHICH WE WERE TO BUY ALL MATERIALS AND GET THEM INSTALLED AND HAVE A FULL AMI IMPLEMENTED. COVID HAPPENED. THE SUPPLY CHAIN THING HAPPENED. AND IT REALLY PUT ÃÃIT REALLY PUT A DAMPER ON THE ENTIRE PROGRAM. WE JUST DID NOT HAVE THE MATERIALS TO INSTALL.

THERE WAS NOTHING THAT ANYONE COULD HAVE DONE. HONEYWELL DID NOT DO ANYTHING WRONG. THEIR SUPPLIERS CANNOT GIVE THEM THE THINGS THAT THEY NEEDED. SO ACTUALLY ÃÃIT ALLOWED US TO TAKE A LOOK AT WHAT WAS GOING ON. BUT WHAT IT DID WAS AS THE MATERIALS WERE NOT BEING DELIVERED ÃÃCOSTS WERE GOING UP BECAUSE THE SUPPLIERS WERE SAYING A MAN, I CANNOT GET YOU THIS STUFF. COSTS ARE PRECEDING OUR WAGES HAVE TO GO UP.

IT WAS A PRETTY BIG DEAL SO ÃÃ SO WHAT WE DID DO IS DURING THAT DELAY WE MADE A DECISION TO PIVOT AND SAY RATHER THAN BY THESE MATERIALS ÃÃWHICH COULD BE COMPOUNDED INTEREST IN COMPOUNDED INCREASES IN THE NEXT FIVE YEARS ÃÃLET'S JUST BY ALL RIGHT NOW.

LET'S BY ALL RIGHT NOW AND PUT IN THE WAREHOUSE. IN THAT WAY WE AVOID SO WE DID.

WE NEGOTIATED A ONE-TIME INCREASE WITH HONEYWELL AND WE BOUGHT ALL RIGHT NOW.

SO ÃÃWE DID APPROVE A NINE PERCENT INCREASE IN REPURCHASED EVERYTHING AS OPPOSED TO SEEING THOSE FOREIGN HALF FOREIGN HALF PERCENT INCREASES WHICH WERE CONTRACTUALLY BOUND BY THE NEXT FIVE YEARS. THE VERY FIRST YEAR THEY CAME OUT WITH 13 PERCENT IN THE NEXT YEAR THEY CAME OUT WITH 13 PERCENT PER NOT ONE HALF BY CONTRACT.

WE SET HOLD ON. LET'S JUST DO ONE POINT AND WE WANT TO BUY AT ALL.

SO THAT HAPPENED. AND WE HAD WAS THAT OUR STOCK NOW.

BUT THAT IS HAPPENING. THAT HAS HAPPENED THIS YEAR. DURING THAT TIME PERIOD ÃÃIT GAVE US THE OPPORTUNITY TO START TAKING IT REALLY CLOSE LOOK AT OUR TECHNOLOGY AND WHERE WE WERE GOING WITH OUR TECHNOLOGY. 2017 AND 2018 WAS THE DESIGN PERIOD FOR AMI. 2024 AND WE ARE NOW JUST STARTING TO PUT IT IN THE GROUND. SO ALTHOUGH WE ARE AHEAD NOW AS FAR AS THE SCHEDULE GOES ON OUR MATERIAL, WE ARE BEHIND ON OUR INSTALLATION A LITTLE BIT. SO DOCTORS ARE REINSTALLING THE RIGHT PRODUCT? AMI TECHNOLOGY HAS HAD LEAPS AND BOUNDS.

HUGE ADVANCES IN THE LAST FIVE YEARS. SO I SAID OKAY.

ALTHOUGH WE BOUGHT THIS STUFF AND I WANT TO MAKE SURE WE ARE NOT PUTTING IN STUFF THAT'S ALREADY ENOUGH ÃÃYOU BUY A LAPTOP AND IN TWO YEARS IT'S NOT GOOD ANYMORE BECAUSE TECHNOLOGY HAS MOVED ON AND IT'S NOT FAST AND IT CANNOT WATCH THE LATEST GAMES AND MOVIES. I JUST WANTED TAKE A LOOK AND MAKE SURE THAT THAT IS NOT WHAT WE ARE DOING. SO WE LEARNED A LITTLE BIT ÃÃ WE DID A LOT OF TRAINING.

WE'VE GOT OUR FOLKS A LOT OF TRAINING TO EITHER THAT WASN'T IN THE LINEUP IN THE BEGINNING FOR OUR HONEYWELL SOLUTION WORK THE TRAINING WAS LOST. IF YOU LOOK AT THE TEAM WE HAVE IN PLACE NOW FOR OUR AMI ÃÃ THERE ARE THERE IS NONE. NONE.

THERE ARE NONE LEFT ON THE TEAM FOR THE AMI IMPLEMENTATION THAT WAS HERE WHEN THE TRAINING WAS

[01:00:07]

BUT SOME OF IT GETS LOST. SO WE REDID ALL THE TRAINING. WE READ DID ALL THE TRAINING AND WE INCLUDED IMPLEMENTATION TEAMS. WE'VE GOT A STEERING COMMITTEE GOING THROUGH ALL OF THAT. SO THAT'S THE KIND OF THING WE'VE BEEN DOING FOR THE LAST COUPLE OF YEARS WHILE WE CANNOT PUT IT IN THE GROUND ÃÃWE BEEN INVESTING IN OURSELVES BY LEARNING. AND IN 2023 ÃÃONE THING WE DID DISCOVER IS THAT THERE IS A 27 PERCENT LATCHED LOAD SIDE OF VOLTAGE FAILURE IN OUR ELECTRIC METERS.

IT'S REALLY JUST A CAPACITOR THAT HAS THE OPPORTUNITY OR THE PROPENSITY TO FAIL.

HONEYWELL HAS REMOVE THAT FROM THE MATERIALS.UT WHAT DOES THAT MEAN TO US? WE HAVE A TOTAL OF 12,209 METERS AND HAVE A QUESTIONABLE CAPACITOR.

11,000 OF THOSE HAVE BEEN INSTALLED. SO ÃÃWE'VE GOT ABOUT 11 OR 12,000 METERS IN OUR SYSTEM RIGHT NOW FROM HONEYWELL THAT HAVE THE PROPENSITY OR THE POSSIBILITY OF A FAILURE WITH A PROVEN HISTORY OF FAILURE FOR THAT CRAFT.

SO WE FIGURING THAT OUT. I'M JUST BEING TRANSPARENT AND LETTING YOU KNOW.

THIS CAME FROM THE THE PROBLEM WITH THE SUPPLY CHAIN N AND JUST A LACK OF PROPER PER TOOLS THAT'S ONE OF THE THINGS WE ARE DEALING WITH. THAT'S ONE OF THE THINGS THAT HAPPENED IN THE LAST YEAR OR SO. CURRENTLY THIS IS ONE OF THE FIRST TIMES YOU'VE MAYBE HEARD THIS. THIS PROJECT IS BEING VALUED AT AROUND $16 MILLION. I THINK CONTRACTUALLY, I THINK WE PROVED 8 AND A HALF OR $10 MILLION PROJECT. REMEMBE THAT WAS JUST MATERIAL.

ALL THAT IT WAS. MATERIALS. WE TALK ABOUT 16 MILLION, THAT'S ALL THE ADMINISTRATIVE TIME WE PUT INTO IT. I'M CAPTURING ALL THAT FOR US SO WE CAN KNOW THE REAL VALUE OF OUR PROJECT. OUR PROJECT MANAGEMENT, OUR INSTALLATION, I THINK ALL THIS HAS TO BE CAPTURED SO WE KNOW THE TRUE VALUE OF THE PROJECT.

SO AGAIN, EIGHT Ã$10 MILLION WE ARE LOOKING AT CONTRACTUALLY.

WE'VE GOT 6 MILLION AT THE ADMINISTRATION PROJECT MANAGEMENT INSTALLATION AND THINGS LIKE THAT. OUR SCHEDULE. SO LIKE I SAID, WE ARE CURRENTLY BEHIND SCHEDULE ON INSTALLATION. WE DIDN'T HAVE THE STUFF TO PUT IN THE GROUND. BUT NOW BECAUSE OF THE DEAL WE CUT WITH THEM WE ARE AHEAD OF SCHEDULE AND WE CUT ÃÃWE ARE LOOKING AT A MASSIVE EMPLOYMENT AND I'LL TALK ABOUT THAT IN A SECOND AND HOW TO GET THE ON THE GROUND NOW THAT WE HAVE IT.

WE ARE CURRENTLY EXPERIENCING SOME MINOR SCOPE CREEK. WHEN WE ARE THINKING ABOUT THE ORIGINAL AMI DISCUSSION. AND IT'S REALLY FOR NONCONTRACTUAL DELIVERABLES AND PROJECT LANNING. IT'S MAINLY DUE TO TECHNOLOGIES THAT WERE NOT AVAILABLE BACK THEN BUT ARE NOW AND WE ARE REALLY TAKING A LOOK AT THAT. WHAT DOES THAT MEAN? OUR CURRENT HONEYWELL SOLUTION DOES NOT ALIGN WITH THE USE CASES THAT ARE AVAILABLE TODAY AND AVAILABLE TODAY AND WE ARE NOW AWARE OF THEM. WE ARE TAKING A LOOK.

ARE WE REALLY PUTTING THEM IN OR OUT? ELECTRIC WISE, I THINK WE ARE GREAT. THINK WE ARE GREAT. WHICH IS MOST OF WHAT WE HAVE IN THE GROUND AND WHAT WE BOUGHT.HAT TECHNOLOGY IS GOING TO BE GOOD. I THINK WE ARE GOOD FOR A WHILE. I THINK WE ARE EFFICIENT ON THE WATER SIDE.

THE WATER TECHNOLOGIES ON THE TECHNOLOGICAL SIDE HAVE DRAMATICALLY INCREASED.

IT'S JUST NOT A GREAT SOLUTION FOR WATER UTILITY. IT WILL WORK AND GET US BILLING AND DO THE THINGS REMOTE BILLING LIKE WE ARE LOOKING TO DO IN REMOTE READS, BUT YOU'RE NOT GONNA GET A LOT OF TECHNOLOGY AND IMPROVEMENTS ON YOUR WATER SIDE WITH HONEYWELL.

SO WE ARE ACTUALLY TAKING A LOOK AT A DIFFERENT PROJECT CALLED CENSUS.

AND I PREVIOUSLY HELD OFF ON PURCHASING AND THE DELIVERY OF ALL OF OUR WATER METERS AND THE WATER MODULES THAT WOULD GO INTO HONEYWELL. I TOLD HIM TO HOLD OFF ON THAT WHILE WE TAKE A LOOK. IT DOESN'T MEAN THAT WE ARE CHANGING OUR MINDS.T DOESN'T MEAN WE ARE REMOVING. I AM JUST MAKING SURE THAT WE ARE PUTTING IN THE GROUND AND MAKING SURE THE TECHNOLOGY IS GOING TO HAVE WHAT WE NEED FOR THE FUTURE.

THIS IS GETTING A LONG-WINDED. I'M GONNA MOVE THIS ALONG. SO SOME ADVANTAGES TO PIVOTING AND GOING TO A DIFFERENT WATER SOLUTION ÃÃMORE WE CAN FULFILL MORE COMPLEX BUSINESS CASES AND ACTUALLY ALLOWS A CUSTOMER WITH NEW TECHNOLOGY, RIGHT FOR THIS NEW SYSTEM ON THE ELECTRIC SIDE. THIS WOULD ACTUALLY ALLOW A CUSTOMER THROUGH A PORTAL OR US TO HELP THEM IDENTIFY USAGE PATTERNS UNDER AC. SO AC OR THE REFRIGERATOR OR HAS A SPECIFIC SIGNATURE PATTERN THAT WE CAN IDENTIFY. LONG STORY SHORT ÃÃWE CAN TELL THEM THE REFRIGERATOR WAS GOING BAD. WE CAN TELL THEM THEIR MOTOR IS

[01:05:05]

WELL, THIS CAN HELP. I WILL NOT READ TO ALL THESE THERE'S A LOT OF GREAT ADVANTAGES TO PIVOTING TO THE ELECTRIC SIDE AND BOTH ON THE ELECTRIC WE TALKED ABOUT A MASS INSTALLATION PLAN. SO ÃSO ÃÃQUICKLY ÃÃWE'VE GOT ABOUT 42 OF OUR OVERALL ELECTRIC METERS INSTALLED. THE 8SS2 PERCENT PER 28 PERCENT OF OUR GAS AND 42 PERCENT OF OUR WATER IS ALREADY IN THE GROUND FOR THE ELECTRIC METERS AND GAS METERS ARE MOSTLY ON THE DOCK.HEY ARE NOT ON THE GROUND. MOSTLY ON THE DOCK AND WATER IS NOT. THEY ARE STILL AT THE MANUFACTURER.

WE HAVE NOT PURCHASED THEM. THAT'S WHY WE ARE HAVING A REAL CLOSE LOOK AT OUR WATER SOLUTION AND SEEING IF THERE SOMETHING WE CAN DO THERE. ONE INSTALLATION TODAY WE ESTIMATE WE SPENT ABOUT APPROXIMATELY $600,000 OF IN-HOUSE LABOR.

INSTALLING THE METERS AND WE ARE ABOUT 35 PERCENT OVERALL INSTALLED.

WE'VE GOT SOME VERBAL NUMBERS FROM CONTRACTORS AND WHAT IT WOULD TAKE TO PUT THE REST IN THE GROUND PAID WE ARE LOOKING ANYWHERE BETWEEN 650Ä.3 MILLION TO COMPLETE THE INSTALLATION. AND SINCE THERE WAS SUCH A LARGE VARIATION THERE ÃÃWHAT WAS GOING ON. RATHER THAN HOP ON SOME PIGGYBACK OF A STATE CONTRACTOR SOMETHING ÃÃWE'RE GONNA WORK ON THE RFP. SO WE ARE NOW WRAPPING UP THE SCOPE RIGHT NOW TO DO THAT TO GET A REAL NUMBER SO WE CAN HONESTLY TAKE IN CONSIDERATION WHETHER WE WANT TO HAVE SOMEBODY COME IN OR PUT THE REST OF THESE METERS IN OR DO T OURSELVES? IF WE FINISH IT OURSELVES, IT JUST TAKES A REALLY LONG TIME. AND ALSO THEY HAVE A DAY JOB. IF WE HAVE SOMEONE ELSE COME IN, WE'RE GONNA SPEND PROBABLY AROUND THE SAME AMOUNT OF MONEY.

NEXT STEPS. CURRENTLY RIGHT NOW WE ARE ACTUALLY DOING A PILOT PLANT WITH CENSUS. WHO IS THE OTHER GROUP THAT WE ARE TALKING ABOUT POSSIBLY PIVOTING TWO. THEY ARE COMING IN AND PUTTING SOME METERS ON OUR SYSTEM AND GIVING US THE FRONT END. THEY ARE ATTACHING IT TO THE MANAGEMENT SYSTEM AND WE ARE GOING TO TAKE A LOOK AT HOW THOSE METERS INTERFACE WITH US AND WHAT KIND OF TOOLS AND NEW TECHNOLOGIES SO WE CAN SEE WHAT IT FEELS LIKE. THAT'S GOING TO GIVE US ALL OUR OPERATORS AND OUR BILLING SYSTEM AND ALL THOSE FOLKS AN IDEA OF WHAT THE DIFFERENT SYSTEM LOOKS LIKE. SO WE CAN GRADE IT AND WE CAN COME BACK TO YOU ULTIMATELY WITH A RECOMMENDATION. RIGHT? SO WE WANT TO KNOW WHAT WE ARE TALKING ABOUT FIRST. WE WENT THROUGH THAT. THAT'S BASICALLY IT.

THIS IS OUR SCHEDULE. THE ORIGINAL SCHEDULE AT US AT COMPLETION IN 2025.

WE ARE STILL THERE. WE ARE STILL WITHIN SOME THINGS HAVE MOVED AROUND BUT WE ARE STILL ON TARGET TO WRAP UP THE PROJECT IF WE HAVE IT INSTALLED FOR US.

AND BY 2025. DISCUSSION? >> A LOT TO TAKE IN.

>> I KNOW. [LAUGHTER]

>> MADAM CHAIR, I JUST HAVE A FEW THAT I'M GONNA KICK OFF. THIS PROBABLY MORE AFTER THIS.

ONCE MR. LAMBROS GOES ON I'LL BE BACK IN.

[LAUGHTER] SO I ÃÃWHAT I'M HEARING IS THIS WAS A SUFFICIENT SOLUTION AT ONE TIME. BUT NOT A FUTURE SOLUTION THAT MAY BE WE NOW ARE LOOKING AT THAT WE COULD NEED AND A PATH FOR US TO BE SMARTER. FOR ME TO ÃÃTHIS SOUNDS LIKE IT WOULD BE AMAZING. IF ONE YEAR WE ARE AT THE WE UP PROGRAM WE'RE GONNA BITE NEW REFRIGERATORS FOR ALL THE REALLY BAD REFRIGERATORS OUT THERE.

SO ÃÃYOU KNOW FOR ME ÃÃ OBVIOUSLY I AM A CHANGE AGENT THOUGH.

SO I APPLAUD YOU FOR LOOKING BEYOND THE SCOPE OF THE WHERE HONEYWELL HAS GOTTEN US.

BUT IT SOUNDS LIKE WE ARE NOW GOING TO PUT ALL OF THESE IN THE GROUND OR ARE YOU SAYING THAT THERE IS A BACK AND TETHER THAT MAY BE COULD TIE THE HONEYWELL INTO THIS OTHER

PROGRAM? >> SO HONEYWELL IS A GREAT SOLUTION.

WE BOUGHT WHAT WE PAID FOR. IT WAS ÃÃWE ÃÃWE MAY ÃÃ THIS WAS A SOLUTION IN 2017 AND

2018. >> SO LONG AGO. >> A LOT OF THOSE DIFFERENT TECHNOLOGIES HAVE MOVED ALONG AT LIGHT SPEED. AND SOME OF THEM HAVEN'T.

WHAT HONEYWELL IS GOING TO GUESS IS IT'S GONNA GET US BACK ÃÃWE BOUGHT A METERING A REMOTE METERING SYSTEM AND WITH A FEW BELLS AND WHISTLES ÃÃ AND WE ARE PRETTY INVESTED.

WE ARE PRETTY MARRIED TO HONEYWELL FOR ELECTRIC. IT'S ALSO ON OUR DOCKS.

WE HAVE A LOT OF IT IN THE GROUND. SO HERE'S OUR THOUGHT PROCESS.

[01:10:04]

A CENSUS. IF WE TAKE A LOOK AT THAT ONE AND WE PUT A SMALL POINT-TO-POINT SYSTEM FOR WATER, THAT'S REALLY THE BACKBONE FOR A VERY STRONG AND ROBUST ELECTRIC SYSTEM. IT'S THE SAME BACKBONE. RIGHT? SO NOT NOW ÃÃBUT IF WE JUST HAVE TWO HEAD ENDS, ONE HONEYWELL AT THE ELECTRIC RIGHT NOW AND ONE CENSUS FOR THE WATER RIGHT NOW ÃÃIF WE DID THIS.HEN WE WOULD HAVE TWO HEAD ENDS. NO BIG DEAL PER THE MDM OR THE DATA MANAGEMENT SYSTEM WOULD UNDERSTAND THOSE ADVANTAGES FOR LING. WHAT THAT WOULD ALSO DO IS OPEN UP OR DOWN THE ROAD SHOULD THE ELECTRIC ÃÃUTILITY DECIDE TO PAY THE TWO ENSUS FORM OVER ROBUST TECHNOLOGIES THEN THE BACKBONE IS ALREADY THERE. IT'S JUST A MATTER OF CHANGING OUT METERS AT THAT POINT. RIGHT? I DON'T THINK WE CAN GO THROUGH A WHOLESALE CHANGE OUT OF METERS BECAUSE WE NEED TO USE THE METERS WE HAVE AND WE NEED TO LET THEM RUN THEIR LIFECYCLE, RIGHT? WHEN THOSE THINGS START RUNNING OUT OF WARRANTY WE START SEEING PARISHES ON THEM. MAYBE WHAT THEY WOULD DO THEN IS FLIPPED TO A CENSUS METER ELECTRIC MAYBE IF THAT'S WHAT THEY CHOSE TO DO.

BUT THE BACKBONE WOULD BE THERE AND THAT'S THE THOUGHT PROCESS THAT WE HAVE ON WHY WE MIGHT NOW GO TO CENSUS A LITTLE EARLY FOR THE WATERSIDE. NUMBER ONE IS THAT IT'S BETTER FOR THE WATER AND IT GIVES US SOME THINGS YOU CANNOT GET THROUGH HONEYWELL APPEARED WATER YOU CAN GET REMOTE. YOU CAN GET REMOTE TURN ON AND TURN OFF WITH HONEYWELL BUT YOU CAN WITH CENSUS. THAT'S JUST THE METER AND ABILITY METER READING SYSTEM.

THE WATER DEPARTMENT WITH HONEYWELL ÃÃANY INFORMATION ABOUT THE WATER SYSTEM WE CANNOT GET MORE PRESSURES AND TEMPERATURES IN ANY OF THAT. CENSUS HAS THAT.

SO THAT'S TWO BIG ADVANTAGES AT THE WATER DEPARTMENT WOULD HAVE WITH CENSUS OVER HONEYWELL.

AGAIN. WE ARE STILL DOING OUR HOMEWORK.

WE ARE STILL GATHERING DATA AND NUMBERS. BUT I THINK IT'S ONLY FAIR THAT WE ARE ALL ABOVE AND TRANSPARENT WHAT WE ARE LOOKING INTO.

>> SO A FOLLOW-UP QUESTION THEN. AND THIS IS PROBABLY THE TABOO QUESTION.F FOR LET'S SAY WE DID DECIDE TO PIVOT AND WE HAD ALL OF THESE SITTING ON THE DOCK, COULD WE SELL THEM? INSTEAD OF INSTALLING THEM? AND MITIGATE THE AMOUNT THAT WE

HAVE IN THE NEIGHBORHOOD NOW? >> SO THERE'S A COUPLE OF ANSWERS TO THAT.

CONTRACTUALLY ÃÃHONEYWELL DRIVES THE BUS ON WHETHER WE WOULD BE ALLOWED TO SELL OR RESELL ANY OF THE PRODUCT. HEY WOULD HAVE TO ALLOW US TO NUMBER ONE.

I CANNOT GUESS TO THAT. >> RIGHT. >> THERE'S SOME LOGISTICS TO IT. SOME THINGS COME WITH FPUA TAGS.

YOU HAVE TO BE RETOOLED AND RE-SHELVED AND I'M SURE THERE'S A COST TO IT.

SO WE WOULD NOT BE GETTING DOLLAR FOR DOLLAR. IF I HAD TO GUESS WE WOULD BE

SOUTH OF 50 PERCENT. >> OKAY. >> ALL RIGHT NOW IT'S YOUR TURN. [LAUGHTER]

>> OKAY. MADAM CHAIR?> YES. >> I THINK WE COULD SPEND A WHOLE MEETING ON THIS BEFORE WE MAKE THE DECISION TO MOVE THE W RF ÃÃTHIS IS BY FAR THE BIGGEST PROJECT WE'VE HAD IN A LONG TIME. AND IT'S FALLEN OFF OF TOP OF MIND BECAUSE OF THE W RF MOSTLY MY RECOMMENDATION IS FOR US TO KIND OF TABLE A LOT OF THAT DISCUSSION FOR NOW.OU GUYS ARE ABOUT TO DO A PILOT WITH CENSUS.

AND FOR US TO HAVE A LITTLE BIT MORE IN-DEPTH CONVERSATION ABOUT THE ROADMAP ONCE WE GET MORE INFORMATION BACK FROM THE PILOT. AND WE ALREADY HAVE A LONG MEETING TONIGHT. [LAUGHTER]

>> OKAY. NO QUESTIONS.

[LAUGHTER] >> WE ARE NOT HOLDING ANYTHING UP, RIGHT?

IF WE ARE TABLING THIS DISCUSSION? >> I THINK THIS IS JUST

INFORMATION ONLY. >> YES. YES.

>> MAY BE AN RFP FOR COST AND INSTALLATION. I WOULD COME HERE IF WE WERE

GONNA DO IT. >> I JUST WANT TO HOLD ANYTHING UP.

>> THIS IS WHERE WE ARE AND I HAVE THE ÃÃI HAD THE PLEASURE OF SITTING IN ON THE PRESENTATIONS GIVEN BY THE MEMBERS AND WHAT WE ARE GOING THROUGH THE ANALYSIS.

AND IF I REMEMBER CORRECTLY, THE HONEYWELL METERS DO WORK WELL WITH THE CENSUS INFORMATION.I THINK THAT IS SOMETHING THEY REPEATED MULTIPLE TIMES.

[01:15:03]

I THINK THE CENSUS BACK AND WAS ABLE TO INDICATE TO HONEYWELL. BUT NOT THE OTHER WAY AROUND.

YES. >> AND AS WE GO THROUGH DIFFERENT VARIATIONS ÃÃIT HAS THESE DIFFERENT THINGS. AS THEY BOTH GROW, THEY ARE GROWING FARTHER APART.

I SEE. >> ALL RIGHT ÃÃTHANK YOU. ALL RIGHT.

THANK YOU FOR THE INFORMATION. YES.

[LAUGHTER] >> JASON IS UP NEXT. HE'S GONNA GO THROUGH SOME KPIS FOR FPUA. I'VE LOST MY INDICATOR.

[LAUGHTER] YES.> YES. >> YES.

>> YOU'RE GONNA HAVE TO DO ON YOUR END. >> IF WE'VE ALL HAD TECHNICAL DIFFICULTIES TONIGHT. I WILL BRING SOME BATTERIES.

[LAUGHTER] UH-OH. >> ARE THOSE AA?

>> AA. >> I HAVE A LOT OF THINGS TO GO THROUGH.

>> THAT'S OKAY. >> WE'RE GONNA WORK ON THE BATTERIES.

[E.4. Lincoln Park SMART Neighborhood Update]

TRYING TO MATCH THE BATTERIES. [LAUGHTER] AND MEMBERS OF THE BOARD PUT I'M SUPER EXCITED TO SHARE WITH YOU THE PROGRESS THAT THE INTERNET TEAM HAS MADE THROUGHOUT THE CITY OF FORT PIERCE.

PRIOR TO GOING THROUGH THE ACTUAL PRESENTATION ÃÃI LIKE TO SPEND A FEW MINUTES KIND OF TALKING ABOUT A LITTLE BIT OF HISTORY, NOT ONLY FOR THE BOARD MEMBERS, BUT ALSO FOR OUR VIEWERS. YOU KNOW? WHY IS FPUA IN THE FIBER BUSINESS AND WHAT HAD TO BE GET HERE?PUA HAS BEEN THE FIRE BUSINESS SINCE THE EARLY 2000'S. OUR BEGINNING IS VERY SIMILAR TO MANY ELECTRIC UTILITIES.

RIGHT? THERE WAS A SIGNIFICANT NEED FOR HIGH LEVEL COMMUNICATION BETWEEN OUR SUBSTATIONS OR FIELD ASSETS AND DISPATCH. AND WE ARE LEASING INCUMBENT T-1 CIRCUITS, WHICH WERE VERY EXPENSIVE AND NOT AS RELIABLE AS WE WOULD LIKE.

SO WE KIND OF PIVOTED AND STARTED INSTALLING FIBER-OPTIC CABLE TO ALL OF THESE MAJOR FACILITIES AND SUBSTATIONS. WHILE WE DID THAT ÃÃWE ADDED A SIGNIFICANT AMOUNT OF FIBER STRANDS IN IT. WHEN WE DID THAT ÃÃWE WERE NOT SURE WHAT WE WERE GOING TO USE THEM FOR AND WHEN WE WERE GOING TO USE THEM. I WOULD LIKE TO APPLAUD THOSE BEFORE ME. THAT MADE THAT CHOICE. RIGHT? AND SO IN 2003 ÃÃFPU A REGISTERED WITH THE USC AS A LOCAL EXCHANGE CARRIER.

AND WE STARTED TO OFFER DEDICATED ACCESS TO MUNICIPAL AGENCIES AND INSTITUTIONS WITHIN OUR AREA. IN 2004. AND THEN IN 2006 ÃÃFPUA BRANDED ITS TELECOMMUNICATION BUSINESSES WITH FPUA NET. AND IT WASN'T UNTIL 2018 AS PART OF OUR STRATEGIC PLANNING WORKSHOP THAT JAVIER CISNEROS AND OUR CURRENT DIRECTOR PITCH THE IDEA FOR IT BECOMING A SMART CITY. THE VISION WAS CAST AT THE RIGHT TIME WITH THE RIGHT PEOPLE AND YOU GUYS ARE SOME OF THOSE RIGHT PEOPLE AND SO I APPLAUD YOU FOR THAT. I WAS HIRED AS FPUA MANAGER IN 2017 AND WE TURNED INTO A TRUE TELECOM. THE SMART CITY INITIATIVE WAS THE CATALYST OF REBIRTHING THE DREAM OF FORMER TRUE TELECOM AGAIN IN FORT PIERCE. FPU A NET IS A SMART SERVICE PROVIDER THAT PROVIDES SMART CITY SERVICES AND SMART CITY SOLUTIONS OVER THE SAME NETWORK THAT PROVIDE RELIABLE AND ULTRA HIGH-SPEED INTERNET TO HOMES AND BUSINESSES THROUGHOUT THE CITY OF FORT PIERCE AT AFFORDABLE PRICES. AND SO AT THE REQUEST OF THE FPUA BOARD ÃÃWE WILL BE GETTING PERIODIC UPDATES OVER ITS MAJOR KEY PERFORMANCE INDICATORS. KPI. THE GOAL IS TO KEEP THE FPUA BOARD AND PUBLIC ABREAST TO OUR PUBLIC DEPLOYMENT. KPI FOR THOSE THAT DON'T AND ARE FAMILIAR WITH IT ARE IS A QUANTIFIABLE MEASURE OF PERFORMANCE OVER TIME FOR SPECIFIC OBJECTIVES. SO YOU WILL PROBABLY SEE THAT COMING FROM OTHER UTILITY SECTORS AND START USING THAT TERM MORE OFTEN. SO IT'S A QUICK OVERVIEW AND FPUA.NET TRACKS KPIS IN A FEW MAIN AREAS FOR THE SAKE OF TODAY'S PRESENTATION WE FOCUS THE EFFORTS ON BUSINESS AND DESIGNING CONSTRUCTION. FPUA.NET IS A COMPETITIVE BUSINESS UNIT AND COMPETE ON ALL LEVELS FROM PRICING, SERVICE QUALITY, RELIABILITY AND CUSTOMER EXPERIENCE. THE SLIDE IS AN ATTEMPT TO ILLUSTRATE FPUA CUSTOMER

[01:20:03]

FPUA.COM AND SEARCH FOR THE ADDRESS AND THEY WOULD FIND INFORMATION REGARDING PRICING AND SERVICE AVAILABILITY. THE GRAY LINE REPRESENTS THE NUMBER OF ORDERS MEANING HOW MANY OF THE ADDRESS SEARCHES ARE ACTUALLY COMPLETED INTO A REQUEST FOR SERVICE? BECAUSE OF THE SMALL BUT GROWING FOOTPRINT ASSESSMENT REQUESTS ARE OUTSIDE OF THE CURRENT ACTIVE BILLS. GATHERING AS DATA IS CRITICAL FOR OUR PLANNING PROCESS.

THIS IS A MAJOR VARIABLE THAT CAN GO INTO OUR STRATEGIC BILL STRATEGY.

I WOULD LIKE TO POINT OUT A FEW KEY MOMENTS IN THE TIMELINE. IN APRIL 2023 ÃÃYOU SEE A SIGNIFICANT SPIKE. ADDRESSES BEING SEARCHED. THIS IS THE FIRST TIME WE MARKETED TO AN ENTIRE NEIGHBORHOOD. THE SECOND THING I WOULD LIKE TO POINT OUT IS A CONSISTENT CLIMB AND ADDRESS SEARCHES IN ORDER FROM JULY 2023 THROUGH OCTOBER 2023. THIS IS IN DIRECT RELATION TO OUR EFFORTS IN MARKETING AND ENGAGING ACTIVE FIBER ZONES. WE ARE HOPING TO CONTINUE THIS TREND THROUGHOUT OUR ENTIRE NETWORK BILL PROCESS. THIS SLIDE SHOWS INTERNET MONTHLY CUSTOMER REVENUE.

IN CUSTOMER ACCOUNTS OVER FY 23. THE BLUE LINE REPRESENTS MONTHLY REVENUES. FPUA.NET IS UP $69,000 A MONTH. WHICH IS ALMOST 22 PERCENT OF REVENUE IN FY 23. THE GRAY LINE REPRESENTS CUSTOMERS BUILD INTRANET ADDED 20 PRESENT TO CUSTOMERS WHICH IS A LARGE PORTION OF OUR BASE. WE'RE HOPING TO KEEP THIS UPWARD TREND GOING IN FY 24 PER THE SECOND TYPE OF KPI I'LL BE DISCUSSING LATER ON TODAY REGARDING CONSTRUCTION AND THESE KPIS ARE A DIRECT IMPACT TO CUSTOMER ACCOUNT AND EVENUE.

IN JUNE 2022 ÃÃ2022 AS PART OF OUR OVERALL BOND PROCESS TO FUND EXPANSION PROJECTS ACROSS FPUA ÃÃTHEY BONDED $22 MILLION FOR THE EXPANDED EFFORTS.

ONE MAJOR POINT I WOULD LIKE TO MAKE AS PART OF THE LEGISLATION THAT WAS CREATED IN 2005 BY INCUMBENTS TO TRY AND STOP MUNICIPALS TO ENTER THE BROADBAND MARKET.

WAS TO REQUIRE ALL MONEY THAT WOULD BE BONDED FOR EXPANSION EFFORTS AND BONDED FOR LESS THAN 15 YEARS. THIS IS EXTREMELY IMPORTANT SINCE ALL OF OUR OTHER MONEY IS BONDED FOR OVER 30. THIS DIRECTLY IMPACTS HOW MUCH WE MUST PAY ON A MONTHLY BASIS IF YOU HAD A 15 YEAR MORTGAGE. THE GOOD THING IS THAT WE WILL BE DEBT FREE SOONER.

THE SLIDE SHOWS THAT AS OF SEPTEMBER 2023, FPUA .NET SPENT OVER $23 MILLION.

WE HAVE ONE .47 MILLION INCONSISTENT EXPANSION AND RELIABILITY PROJECTS THAT ARE EXPECTED TO BE COMPLETED IN FY 24, WHICH WOULD PUT FPUA NET CLOSE TO THE 85 PERCENT SPENDING REQUIREMENT IN OUR BONDS.

THE BROADBAND INDUSTRY USES A TERM CALLED PARTIALS PASS. AS AN INDUSTRY KPI.

IT'S DEFINED AS HAVING THE NECESSARY INFRASTRUCTURE IN PLACE TO PROVIDE SERVICE TO THE HOME AND BUSINESS OR STANDARD SERVICE DROP WITHIN A FEW DAYS OF THE REQUEST.

STANDARD SERVICE DROP WOULD BE INSTALLED WITHIN A FEW DAYS OF REQUEST.

THIS SLIDE SHOWS THE NUMBER OF PARCELS PASSED AS OF OCTOBER 1, 2023.

THE LEFT SIDE OF THE SLIDE SHOWS A HIGH LEVEL OVERVIEW WHERE SERVICE IS AVAILABLE IN GREEN.HERE CONSTRUCTION IS BEING COMPLETED IN ORANGE. AREAS THAT ARE CURRENTLY UNDER DESIGN IN A YELLOW IN AREAS THAT ARE STILL IN PLANNING IN BLUE.

THE GRAPH SHOWS THE NUMBER OF PARCELS PASSED WITHIN EACH CATEGORY.

CURRENTLY FPUA HAS 185 PARCELS READY FOR SERVICE. BY THE END OF FY 24, WE ARE HOPING TO ADD ANOTHER 1068 PARCELS. FPUA NET OBJECTIVE IS TO SIGN UP 15 PERCENT OF THE PARCELS PASSED WITHIN 12 MONTHS OF ACTIVATING A SERVICE.

25 PERCENT OF THEM WITHIN 24 MONTHS AND 30 PERCENT WITHIN 36 MONTHS.

FPUA NET IS OPENED AT 38 CUSTOMERS OVER THE NEXT FEW MONTHS.

YOU AND THE NEXT KPI THEY ARE RECOVERING IS MILES AND REBUILT.HIS IS ANOTHER WAY THAT ATTRACT THE INTERNET EXPANSION. THE SAME KPI WILL NOT REPRESENT A DIRECT HI TO REVENUE AND CUSTOMERS, BUT WILL HELP ESTABLISH AVERAGE COST FOR A A PARCEL PAST. THE USE $1500 PER PARCEL AS A ROUGH NUMBER.

AT THE NEW MOMENT OUR DATA SET IS FAIRLY SMALL. BUT BECAUSE OF THE EFFICIENCY

[01:25:03]

THE GRAPH SHOWS THE MILES OF FIBER CONSTRUCTED WITHIN EACH BUDGET YEAR FPUA NET IS OPENED AT 30 MILES OF FIBER WITHIN FY YEAR 24. I JUST WANT TO THANK YOU FOR YOUR TIME AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

>> ANY QUESTIONS AT THIS TIME? >> SO I AM AT A LOSS HERE. SO THE SLIDES YOU HAVE ÃÃDO WE HAVE THIS IN OUR PAPER PACKET? WE DO?

>> YES MA'AM. SOME OF THEM. I THINK THE ONE THAT YOU'RE

LOOKING AT IS LINKIN PARK, WHICH WOULD BE NEXT. >> OKAY.

OKAY. SO THAT'S ÃÃI WAS LOST FOR A MOMENT.

THANK YOU. >> I DID MAKE A FEW MODIFICATIONS BECAUSE I WAS TRYING TO GET THE MOST CURRENT DATA AND I ENDED UP TAKING A VACATION IN THE MIDDLE OF IT

AND SO ÃÃI APOLOGIZE. I KNOW æ >> NO PROBLEM.

I JUST WANT TO MAKE SURE THAT WE HAD ACCESS TO THE INFORMATION THAT YOU HAVE.

>> YOU DO. IF AT ANY TIME YOU HAVE ANY QUESTIONS.

FEEL FREE TO REACH OUT TO US. >> THANK YOU. THANK YOU FOR THAT VALUABLE

INFORMATION. >> JASONS CAN MOVE INTO THE LINKIN PARK PROJECT EBAY.

>> OKAY. >> OUR GOAL WITH OUR KPIS IS WE'RE GONNA BE CONSTANTLY TRACKING THEM AND ESTABLISH THEM OVER THE LAST TWO YEARS TRYING TO FIGURE OUT WHAT MAY BE VALUABLE AND SO YOUR INPUT WILL BE REALLY IMPORTANT FOR US TO UNDERSTAND WHAT'S VALUABLE TO YOU AND WHAT ARE THE ADDITIONAL THINGS YOU MAY WANT TO SEE OR WHAT THINGS SAY HEY LOOK AT THOSE ARE NOT VALUABLE TO US. AND SO WE'RE GONNA CONSTANTLY REFINE THOSE PAID WE HAVE A LOT OF THE MATURE UTILITIES THAT HAVE BEEN DOING BUSINESS FOR MANY YEARS. YOUR KIND OF NEW IN THE GAME AND WE'RE TRYING TO BE ABLE TO

PRESENT WHAT IS VALUABLE TO YOU? >> MADAM CHAIR? I JUST WANT TO ADD TO THAT. I STINK SOME OF IT IS HARD FOR US TO LOOK AT TWO BECAUSE IT'S ALL STILL SO NEW. AND THE AREAS THAT IT'S LIVE I THINK MAYBE ONCE IT'S LIVE I'VE A COUPLE OF MORE QUESTIONS. BUT I FEEL LIKE WE NEED TO SETTLE BEFORE WE GET THERE.

>> I UNDERSTAND. NO PROBLEM. THANK YOU.

THANK YOU SO MUCH MR. CISNEROS AND MADAM CHAIR AND MEMBERS OF THE BOARD.

WE ARE ABLE TO TALK TO ABOUT THE PROGRESS IN NETWORK EXPANSION.

SPECIFICALLY WITHIN THE LINCOLN PARK COMMUNITY. I NOTICED A PROJECT WE TALKED ABOUT FOR MANY YEARS. AND I'M EXCITED TO SHARE WITH YOU OUR COMPLETION.

SO THE LINKIN PARK SMART NEIGHBORHOOD PROJECT IS AN INITIATIVE THAT WAS DEVELOPED IN 2019. TO DEPLOY FIBER TO EVERY PARCEL THAT WE HAVE IN AVENUE D.

ORANGE AVENUE, 14TH STREET, AND SEVEN STREET. AND ALSO PROVIDE FREE PUBLIC WI-FI WITHIN THREE KEY AREAS. THIS PROJECT WAS FUNDED BY A PARTNERSHIP BETWEEN FPUA ALLOCATING FRANCIS MINISTRIES, THE CITY OF FORT PIERCE AND SEND AFTER COUNTY.

THE MAP SHOWS THE GENERAL BOUNDARY AND LOCATIONS IN WHICH THESE PARCELS IN SHADED AREAS ARE AREAS ARE WHERE WI-FI IS AVAILABLE CURRENTLY. THE PROJECT WILL MAKE A SUBSTANTIAL LONG-TERM IMPACT ON THIS COMMUNITY. IT PROVIDES A 30 YEAR INFRASTRUCTURE. FIBER HOME INFRASTRUCTURE FOR IN AN ULTRA HIGH-SPEED BROADBAND SERVICE. OFFERING THE FREE PUBLIC WI-FI AND FIVE KEY AREAS.

A POSITIONS LINKIN PARK TO BE SMART NEIGHBORHOOD READY.T HELPS TO RE-ENCOURAGE THE REDEVELOPMENT OF THE BUSINESS CORRIDORS ALONG AVENUE D AND INCREASES LINCOLN PARK BROADBAND OPTION RATE. IN SEPTEMBER 2023 ÃÃFPUA NET COMPLETED CONSTRUCTION TO EVERY PARCEL WITHIN THE BUILD AREA ALLOWING RESIDENTS AND COMMERCIAL CUSTOMERS TO SUBSCRIBE TO AN ALL FIBER NETWORK. THAT IS RELIABLE WITH ULTRA HIGH-SPEED AT AN AFFORDABLE RATE. I WANT TO TAKE A MOMENT AND THANK OUR COMMUNITY PARTNERS ALLOCATING CITY MINISTRIES IN THE CITY OF FORT PIERCE AND ÃÃ FOR THE INVESTMENT TO HELP BRIDGE THE DIGITAL DIVIDE IN OUR COUNTY.

BECAUSE OF THEIR INVESTMENT THAT FPUA.NET IS PROUD TO OFFER ALL FIBER INTERNET SERVICE TO THE RESIDENTS WITHIN THE LINKIN PARK FIBER ZONE FOR AS LOW AS ONE DOLLAR.

PER MONTH. YOU'VE HEARD THAT RIGHT. ONE DOLLAR PER MONTH! IF THEY QUALIFY FOR THE AFFORDABLE CONNECTIVITY PROGRAM.

NOT ONLY ARE WE BRINGING FIBER TO EVERY NEW PARCEL. WE DEPLOYED FREE PUBLIC WI-FI TO THE FIVE KEY LOCATIONS SHOWN ON THE MAP. MUNICIPAL COURT CENTER, SANS IT COUNTY TRANSIT FACILITY, AVENUE C AND 10TH STREET PARK AND THE LINKIN PARK COMMUNITY CENTER.

THIS IMMEDIATELY HELPED TO BRIDGE DIGITAL DIVIDE AND PROVIDE DIGITAL EQUITY AMONG

[01:30:04]

YOU MAY HAVE. >> ANY QUESTIONS? >> I HAVE A QUESTION.

HOW ÃÃYOU HAVE THE TIMES WHEN THIS STARTED, RIGHT? >> YES.

>> OKAY. >> ARE MOVED A FEW THINGS OUT OF THIS.HE SLIDE DECK I HAVE THOSE SLIDES IN THIS DECK IF YOU WOULD LIKE ME TO GO THROUGH THEM I CAN.> NO, NO, NO.

THAT'S FINE. I JUST WANTED TO MAKE SURE THAT I HAVE THE INFORMATION BECAUSE I'VE BEEN TELLING PEOPLE THAT PRE-WI-FI IS AVAILABLE. I JUST WANTED TO MAKE SURE THAT

I'M TELLING THEM THE TRUTH. >> IT IS AVAILABLE IN A FEW OTHER AREAS THROUGHOUT THE COMMUNITY SUCH AS DOWNTOWN JENNY PARK, JC PARK AND MANATEE CENTER.

>> YES. OKAY, GOOD, GREAT. THAT'S GREAT.

YES. THAT'S GREAT SERVICE. >> WE NEED TO SORT OF MAYBE GET SOME MORE INFORMATION OUT THERE SO PEOPLE KNOW THAT'S US. HOW DO WE LET PEOPLE KNOW ÃÃI

KNOW WHEN THEY LOGON IT SAYS FPU A DOT. >> SURE.

WE'VE DONE A FEW THINGS. WE PUT IN MISSED TENANT'S TEAM HAS HELP US PUT TOGETHER SOME ARTICLES I THINK. IT'S MOVED UP TO MAIN STREET. I BELIEVE.

>> [INDISCERNIBLE] >> WE'VE ALSO COMMUNICATED WITH OUR CUSTOMER ENGAGEMENT. A BIG PART OF OUR LINKIN PARK PROJECT.

WE START TO ENGAGE THE COMMUNITY. AND SO WE'VE SENT OUT FLYERS.

WE MET WITH VARIOUS COMMUNITY ORGANIZATIONS AND PART OF THAT IS TALKING ABOUT THE FREE WI-FI AND TALKING ABOUT THE DISCOUNTED RATE, RIGHT? ONE DOLLAR MONTH.

ARE YOU KIDDING ME? THAT'S AMAZING. AND IT'S AVAILABLE AND WE ACTUALLY WILL MEET WITH THE CUSTOMERS TO GO TO THEIR HOUSE AND HELP THEM SIGN UP WITH THAT FEDERAL PROGRAM AND SO TOMORROW I THINK IS OUR NINTH CUSTOMER IN LINKIN PARK THEY'RE GOING TO CONNECT AND WE ARE REALLY EXCITED AS THIS NEXT MONTH WE ARE ACTUALLY GOING TO BE GOING DOOR-TO-DOOR AND ENGAGING THE CUSTOMERS AND WE WILL HAVE A SIGNIFICANT UPTAKE VERY QUICKLY. AND SO WE ARE REALLY EXCITED TO PROVIDE THIS SERVICE TO THE

COMMUNITY. >> JC CAN YOU REMIND ME THAT ONE DOLLARS UP TO THREE YEARS?

>> SO THERE'S TWO PIECES TO THE RATE.O BECAUSE OF THE CAPITOL INVESTMENT FROM OUR PARTNERS ÃÃWE PROVIDED IN $18 DISCOUNT OFF OF ANY OF THE RATES FOR BOTH RESIDENTIAL AND COMMERCIAL CUSTOMERS. SO OUR BASE RATE FOR OUR LOWEST TIER IS 100 MAKES SYMMETRICAL SERVICE. WHICH IS A GREAT GREAT SERVICE FOR RESIDENTIAL HOMES.

THIS ALSO INCLUDES NO EQUIPMENT FEE, NO FEES, NO CONTRACT. SO ÃTHAT SHE WOULD TAKE OUR BASE FEE OF $49 PER MONTH AND IT WOULD BE $31. THAT IS FOR FIVE YEARS.

AT THE MOMENT. BASED ON THE PROMOTIONAL RATE. BUT THEN YOU TAKE THE AFFORDABLE CONNECTIVITY PROGRAM, WHICH IS A VOUCHER PROGRAM GIVEN BY THE FEDERAL GOVERNMENT.ND SO IF YOU QUALIFY FOR FREE LUNCH OR PUBLIC HOUSING ÃÃYOU'RE AT 200 PERCENT UNDER THE POVERTY LEVEL ÃÃTHERE ARE A LIST OF QUALIFICATIONS AND MANY PEOPLE IN THIS AREA QUALIFY FOR IT. THERE IS A $30 VOUCHER THAT IS GIVEN AND SO ÃÃIT BECOMES A DOLLAR A MONTH AND SO THAT'S HOW WE GET TO THAT.OW THE FUNDING OF THAT $30 WOULD BE

UNTIL THE FUNDING RUNS OUT WITHIN THE GOVERNMENT. >> OKAY.

SO æ SO IT'S NOT A STANDARD FIVE YEARS AGAIN. $18 OFF IS FIVE YEARS.

>> SO $31 ÃÃIT WOULD BE $30 OFF AS LONG AS AFFORDABLE CONNECTIVITY PROGRAM IS AVAILABLE. I'VE TRIED TO TALK TO INDUSTRY PROFESSIONALS AND HOW LONG THEY THINK. I DON'T KNOW HOW MANY GOVERNMENT PROGRAMS HAVE BEEN CANCELED. ESPECIALLY AN ELECTION YEAR. I WOULD IMAGINE THAT IT WOULD

BE æ >> 2025 WE WILL FIND A NEW ONE. >> IT WILL PROBABLY PUSH OUT THE FUNDING AVAILABLE. THERE IS A SIGNIFICANT OPTICS BEING PUT ON BROADBAND RIGHT NOW. IT'S LIKE THE SINGLE LIKE $86 BILLION OUT THERE FOR AN

[01:35:02]

SO I BELIEVE THAT FUNDING WILL BE AVAILABLE FOR SOME TIME. BUT IT'S REALLY IMPORTANT TO OUR RESIDENTS KNOW AND IF YOU ARE WATCHING ONLINE. YOU SHOULD REALLY KNOW TO GO TO OUR WEBSITE FPUA.NET.COM AND ERIC PETERS WILL REACH OUT TO YOU AND WE WOULD LOVE TO HELP YOU IF YOU SUBSCRIBE TO OUR SERVICE FOR A DOLLAR MONTH IF YOU'RE IN THE FIBER ZONE.

>> IT WOULD SUPPORT RESIDENTIAL AND COMMERCIAL FOR THE $18 OFF? FOR FIVE YEARS?

>> IT'S FOR RESIDENTS.> OKAY. >> MADAM CHAIR, I ONE QUICK QUESTION. $30 VOUCHER ÃÃHOW DOES THAT COME BACK TO THE CUSTOMER? IS THAT COMING STRAIGHT BACK TO THEM? DO THEY HAVE TO PRESENT THEIR BILL EVERY MONTH? OR DOES IT COME STRAIGHT TO FPU A?

>> IT COMES DIRECTLY TO US PER THAT'S GOOD FOR THE CUSTOMER. I WAS JUST LOOKING FOR AN

EASIER ROUTE THAN THEM HAVING TO SEND A COPY OF THEIR BILL. >> THEY GOT TO CERTIFY

THEMSELVES ANNUALL. >> OKAY.> OTHER THAN THAT IT'S PRETTY SIMPLE. THINK IT MIGHT TAKE OUR SALES REPRESENTATIVE TO SIT FOR 10 OR 15 MINUTES A FEW DOCUMENTS.

THEY ARE GOOD TO GO. AND SO IT'S A PRETTY SIMPLE PROCESS.

>> WE HAVE AN AUTOMATIC MAYBE EMAIL OR FLYER THAT GOES OUT TO THOSE CUSTOMERS TO REMIND THEM WHEN THEIR ONE YEAR IS UP AND THEY HAVE TO RENEW? JUST AS A COURTESY?

>> WE HAVE NOT GOTTEN THAT FAR, RIGHT? IN SOME OF THE THINGS THAT WE ARE DOING IS WE ARE WALKING AS FAR AS WE CAN WALK. BUT THAT IS A GOOD THING TO THINK ABOUT. I KNOW THAT WE WOULD BE NOTIFIED WHENEVER CERTAIN SUBSCRIBERS EXCUSE ME ARE COMING UP FOR THEIR ANNUAL EVALUATION.

WE HAVE TO CERTIFIED THIS ON A MONTHLY BASIS. THERE IS A FAIRLY HEAVY ADMINISTRATION BURDEN ON THE PROGRAM JUST AS ANY TYPE OF GRANT TYPICALLY.

SO FPUA IS IN COURAGE TO ENGAGE WITH OUR COMMUNITY BECAUSE IT'S A SUBSTANTIAL BENEFIT.

>> SURE. >> MADAM CHAIR, I WAS GONNA SAY THIS IS ANOTHER WAY THAT WE ARE

[E.5. 2023 NERC ANNUAL PRESENTATION]

ÃÃAND A GOOD AREA TO DO IT. A GOOD AREA TO DO IT. >> WE BELIEVE SO TOO.

>> YES. >> THANK YOU SO MUCH FOR THE INFORMATION.

>> YOU ARE WELCOME.

>> THANK YOU MADAM CHAIR. THE NEXT UPDATE IS ON NARC COMPLIANCE.

THERE ARE A LOT OF ACRONYMS IN THE ELECTRIC REGULATORY COMPLIANCE WORLD.

SO WE WILL LET MR. STRUBLE GET YOU UP TO SPEED. >> KPIS WERE OUR WARM UP?

[LAUGHTER] >> YES.

>> THANK YOU MR. CISNEROS. MADAM CHAIR BENNETT, MEMBERS OF THE BOARD.

MY NAME IS DUANE STRUBLE, I'M THE COMPLIANCE SPECIALIST FOR FORT PIERCE UTILITY AUTHORITY.

I WORKED FOR THE ELECTRIC AND GAS DEPARTMENT AT FPUA. ONIGHT I WOULD LIKE TO PRESENT TO YOU THE FUA COMPLIANCE OVERVIEW WORKING WITH NERC KNOWN AS THE NORTH AMERICAN RELIABILITY CORPORATION. IF I'M GOING TOO FAST OR YOU SEE SOMETHING YOU DON'T UNDERSTAND, LET ME KNOW. OKAY? BEFORE BEGINNING OUR REVIEW, WE WOULD LIKE TO GO OVER A RECAP OF FUA'S REGULATORY COMPLIANCE.

ÃÃIS AN INDEPENDENT REGULATORY BODY WITHIN THE U.S. DEPARTMENT OF ENERGY THAT ACTS AS THE HIGHEST LEVEL OF ENERGY REGULATION WITHIN THE UNITED STATES.

IN 2006 ÃÃFERC AND NERC IS A RELIABLE ORGANIZATION OR ER OVER THE UNITED STATES.

POTENTIALLY NERC IS RESPONSIBLE FOR PROVIDING THE DEVELOPING REGULATORY STANDARDS AND ELECTRIC UTILITY ACROSS THE COUNTRY MUST ADHERE TO THE GOVERNMENT AND COMMUNICATION PROTOCOLS TO PROTECT PROTECTION SYSTEM TESTING. TIME FRAMES, GREAT SECURITY AND OTHER GENERAL RELIABILITY DEPARTMENTS. NERC JURISDICTION INCLUDES OPERATORS OF BOTH ELECTRIC IN NORTH AMERICA AND CANADA IN SERVICE FOR APPROXIMATELY 400 MILLION CUSTOMERS. SERC SERVES AS THE FUA ENTITY IN THE SOUTHEASTERN UNITED STATES AND PROVIDES AND PROVIDES RELIABILITY STANDARDS WITHIN THE SERC REGION AND THEN IN ORDER FOR AN AUDITING REQUEST WILL TYPICALLY COME FROM SERC.

FUA REASSEMBLED A TEAM OF COMPLIANCE A COMPLIANCE TEAM THAT IS A MEMBER FROM EACH OF

[01:40:01]

I DETERMINE THE REGULATORY COMPLIANCE SCOPE AND WE MUST ADHERE TO NERC AND ELECTRIC TRULY BASED ON SEVERAL FACTORS. FIRST THE OWNERSHIP OF ENERGIZED ELEMENTS.

BY DRAINING AN OPERATION PASS OF ENERGIZED [INDISCERNIBLE] OWNERSHIP AND OPERATION OF ALL ELECTRIC GENERATION. THE RECURRING FPO A ELECTRIC AS ITS OWN, WE REGISTER TRANSMISSION OWNER MEANING THAT WE CAN ON THE TRANSMISSION LINE ABOVE 100 KILOVOLTS AND PRO-AIR MEANING WE REDIRECT ELECTRIC SERVICE DIRECTLY FROM OUR CUSTOMERS TO THE TRANSITION SYSTEM. FUA DOES NOT OWN OR OPERATE AN ELECTRIC GENERATION ASSETS AS THE TREASURER OF THE ENERGY CENTER IS OPERATED EFFICIENTLY BY FMPA. AND FMPA DOES NOT HAVE A COMPLETE OPERATION OF ANY TRANSMISSION LINE AT 100 KB OR ABOVE OF FBL ASK IS THE TRANSMISSION OPERATOR 430 8K OPERATION SYSTEM. AND THEN FMPA'S SUPPORTS RELIABILITY PLANNING STANDARDS WITH IN NERC.

FOR THE NEW STANDARDS FOR 2023 ÃÃI HAVE PREPARED THIS WITH THE MAIN FOCUS.

THIS WAS DUE TO A ME A BIG WINTER STORM IN 2021, WHICH COST 11 MILLION PEOPLE TO HAVE EXTENDED OUTAGES BASICALLY DUE TO THE ELECTRIC UTILITIES AND WERE NOT READY FOR THE STORM AND TOOK A LONGER THAN THEY SHOULD HAVE TO GET POWER BACK. NERC ALSO ISSUED A NEW COLD WATER PREPARATION. FOCUSED MORE TOWARDS GENERATION SIDE.

SO SINCE WE DO NOT HAVE GENERATION WE DID NOT HAVE TO DO ANYTHING SPECIAL FOR THE NERC NOTICE. THE FDA STANDARDS INCLUDE THE ELP 11Ö WHICH IS EMERGENCY PREPARATION AND OPERATION. IRO 10 FOR WHICH IS RELYING ON THE DATA SPECIFICATION COLLECTION. TLP 35 WHICH IS OPERATION RELIABILITY DATA AND TPL 15151 IS READMISSION PLANNING PERFORMANCE REQUIREMENTS. EACH OF THESE STANDARDS RELATE TO HIGH AND MEDIUM IMPACTS AND CYBERSECURITY ELEMENTS AND RELATED TO POWER GENERATION AFFLUENCE. IT'S BECOME OUR SMALL SIZE ÃÃ WE ARE A LOW IMPACT ÃÃTHE TRANSMISSION SYSTEM. SO WHEN YOU HIRE MEDIUM IMPACT, WE DO NOT HAVE TO FOLLOW THOSE STANDARDS. WE JUST HAVE TO FOLLOW THE LOW IMPACT ONES.

SINCE WE DO NOT HAVE GENERATION, WE DO NOT HAVE TO DO ANY OF THE GENERATION STANDARDS. ANY QUESTIONS ON THAT? FPO AA DID NOT HAVE ANY REPORTS IN 2023. WE ARE CURRENTLY DOING A MOCK AUDIT GAS ASSESSMENTS WE HAVE NOT HAD AN OFFICIAL AUDIT AND A COUPLE OF YEARS.

WE LIKE TO DO IT EVERY COUPLE OF YEARS. A MOCK AUDIT IS MAKING SURE THAT WE ARE STILL KEEPING OUR NERC SYSTEM IN COMPLIANCE AND RUNNING ANY ISSUES THAT WE CAN GET ON BOARD AND TAKE CARE OF THOSE BEFORE WE HAVE AN OFFICIAL AUDIT.

CHALLENGES AHEAD. WE NEED TO KEEP UP WITH THE CHANGING OF CYBERSECURITY WITH TWO CURRENT SHOOTING WARS AROUND. THERE ARE A LOT OF CYBER HACKERS OUT THERE LOOKING TO EXPLOIT ROYALTIES AND POWER GENERATION AND POWER STRUCTURE.

AND ALSO WE NEED TO WORK ON IMPROVING OUR PHYSICAL SECURITY.

THERE HAVE BEEN A LOT OF BREAK-INS. ESPECIALLY IN THE NORTH CAROLINA AREA IN THE PACIFIC NORTHWEST. AND IT LOOKS LIKE THERE COULD BE SOME NEW STANDARDS COMING FORWARD WITH PHYSICAL SECURITY. WE ARE CURRENTLY GETTING A NEW CAMERA SYSTEM INSTALLED. THAT'S GOING TO BE PART OF IT. BUT WE MAY ALSO HAVE TO DO SOME OTHER THINGS WITH THE SECURITY GOING FORWARD. ALSO LOOKING AHEAD WE NEED PLANS FOR A GROWING LOAD OF OPERATING WITH THE ELECTRIC VEHICLE CHARGING AND IF WE HAVE ANY MORE LIKE SOLAR FARMS ADDING THOSE SYSTEMS WITHOUT GENERATING IMPACT ON THE GO ON OR OFF THE GRID. AS THE PRESENTATION ÃÃDOES ANYBODY HAVE ANY QUESTIONS?> ANYBODY HAVE ANY QUESTIONS? [LAUGHTER]

[E.6. APPROVAL OF ASSIGNMENT OF $15M DEP GRANT FOR WRF RELOCATION FROM CITY TO FPUA (GRANT #23FRP12)]

MOSTLY A GOOD REPORT. RIGHT? >> THIS IS A YEARLY REQUIREMENT THAT IS REQUIRED TO PROVIDE TO THE BOARD TO THE DIRECT UTILITY.

>> STANDARD, YES. >> THANK YOU VERY MUCH.

[01:45:05]

MOVING RIGHT ALONG. >> YES MA'AM AND MADAM CHAIR. THE NEXT ITEM IS A REQUEST TO APPROVE A GRANT AGREEMENT RELATING TO THE RELOCATION OF THE WASTEWATER PLANT.

>> GOOD EVENING MADAM CHAIR AND MAYOR HUDSON. MR. CISNEROS.

THANK YOU AS ALWAYS FOR HAVING ME. I WILL MAKE THIS QUICK.

I THINK THERE IS ONE MORE MEASURE ITEM AND ONE MORE REGULAR ITEM.

FIRST THE AGENDA ITEM I AM HERE TO ASK YOU TO APPROVE IN A SETTLEMENT FOR THE $15 MILLION GRANT AWARD THAT WE WERE AWARDED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.

THIS YEAR. THIS $15 MILLION WAS ORIGINALLY DESIGNED AS A PASS-THROUGH WITH THE CITY OF FORT PIERCE. SO THAT FMPA WOULD BE A SUB RECIPIENT OF THE GRANT.

THAT IS SEMANTICS AND BASICALLY WHAT IT MEANT ORIGINALLY IS THE FPL EIGHT WOULD MANAGE ALL FACETS OF THE GRANT, BUT WE WOULD HAVE TO GO THROUGH WITH THE CITY OF FORT PIERCE TO RECEIVE THE REIMBURSEMENTS BACK. WE HAVE DONE THIS IN THE PAST AND IT'S NOT TOO TOO BAD. HOWEVER ÃÃTHE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION HAS DETERMINED THE FPL IS ELIGIBLE TO RECEIVE THIS GRANT DIRECTLY AND NOT AS A PASS-THROUGH WITH THE CITY. AND THE CITY HAS ALREADY VOTED AND AGREED TO THAT MODEL.

ESSENTIALLY WHAT NEEDS TO BE DONE IS TO SIGN THE ASSIGNMENT OF THE FULL CONTRACT.

FP LA WOULD ACCEPT FULL RESPONSIBLE FOR THE CONTRACT AND WE WOULD NEED TO ASSIGN AS WELL. THERE'S STILL A LITTLE BIT OF WORK THAT NEEDS TO BE DONE ON THE BACKEND. SO WE ARE ASKING TO APPROVE AS IT'S CURRENTLY WRITTEN AND ÃÃ

SIR? >> BASICALLY WE ARE IN DISCUSSIONS WITH THE M DEP ABOUT WHAT TYPE OF ENTITY THE FPUA IS. ONCE WE CLARIFY THAT IN THE LANGUAGE OF THE DOCUMENT IN FINAL FORM. SO WHAT STAFF IS RECOMMENDING THAT THE BOARD APPROVE THE ASSIGNMENT AND AUTHORIZE THE CHAIR TO SIGN THE ASSIGNMENT AND SUBSTANTIAL THE SAME FORM. MEANING THERE COULD BE SOME MINOR TWEAKS AFTER THE FACT.

BUT AS LONG AS THE SUBSTANCE IS STILL THE SAME, WE HAVE APPROVAL TO MOVE FORWARD AND

SIGN IN. >> YES?

[LAUGHTER] >> WHAT SHE SAID!

[LAUGHTER] >> SO WE HAVE A MOTION OF APPROVAL.> SECOND?

>> OKAY. >> MADAME KIRK, WILL YOU PLEASE CALL THE ROLE?

>> REPORTER: >> YES MA'AM.>> YES MA'AM. >> RACHEL WILL GIVE YOU A UPDATE ON SOMETHING ELSE. MR. GIBBONS, MR. LAMMERS, MAYOR HUDSON, MRS. BENNETT?

>> JUST ANOTHER QUICK UPDATE? FPA REQUESTED AN ADDITIONAL 28 MILLION AND 61,000 APPROXIMATELY FROM THE RESILIENT FLORIDA PROGRAM FOR PHASE 2 OF OUR WASTEWATER TREATMENT RELOCATION PROJECT. THIS WAS TO BE DIRECTED SPECIFICALLY TO THE CONVEYED SYSTEM. THE DEP REVIEWS ALL APPLICATIONS RECEIVED. AND THEN RELEASES A LIST OF PROJECTS THAT THEY RECOMMEND FOR FUNDING IN THE RIGHT ORDER. THEY MADE THIS LIST YESTERDAY AND THEY REVIEWED 197 PROJECTS THAT ARE ELIGIBLE AND RANKED TO THEM.

FPLA IS RANKED NUMBER 18 OF 197 AND HAS BEEN RECOMMENDED TO RECEIVE THE $28 MILLION FOR THE 2025 AND 2026 FISCAL YEAR TOWARD OUR RELOCATION PROJECT. THERE IS STILL SOME WORK TO DO WITH THE DEP AND MR. HUTCHINSON AND MYSELF WILL BE GOING TO TALLAHASSEE NEXT WEEK TO FIGURE OUT OUT SOME OF THAT. BUT THIS WAS AND IS A VERY POSITIVE AND EXCITING MOMENT IN THE OFFICE YESTERDAY. [LAUGHTER]

>> I THINK THERE MAY HAVE BEEN HUGS. DON'T KNOW.

[LAUGHTER] >> MADAME CHAIR ÃÃIS THIS PART OF THE GOVERNOR'S BUDGET? IS THIS SO IT HAS TO BE APPROVED THROUGH THE LEGISLATURE?

[01:50:01]

>> SORT OF. SO THE GOVERNOR ALSO RELEASED HIS BUDGET TODAY.

IT IS RECOMMENDED INITIAL AND STILL NEEDS TO GO THROUGH THE PROCESSES.

AND WITHIN THAT BUDGET IS X AMOUNT OF DOLLARS FURTHER RESILIENT FLORIDA PROGRAM.

AND THEN THE DEP IS THROUGH THIS LIST BASICALLY. THEY WANT TO SAY WHICH ONES GET FUNDED. SO WE DO STILL HAVE TO WAIT FOR THE APPROVAL OF THE GOVERNOR'S BUDGET. ALSO FPLA IS RECOMMENDED FOR NEXT FISCAL YEAR IS WHERE WE STILL HAVE A LITTLE BIT OF WORK TO DO TO FIGURE OUT SOME OF THE DETAILS BEHIND US.

BUT YES. IT IS SORT OF KIND OF STILL CONNECTED TO THE GOVERNOR'S

BUDGET. >> OKAY, THANK YOU. WHAT IS NEXT?

>> IT'S GOOD NEWS SO FAR, BUT NOT A DONE DEAL. >> YES.

[E.7. WTP Stripping Tower Rehabilitation]

WHICH IS PRETTY MUCH WHERE WE LIVE RIGHT NOW. >> ANYONE ELSE?

>> THANK YOU. >> THANK YOU SO MUCH. >> THANKS.

>> GOOD JOB. >> GOOD JOB! [CHEERING] > LET'S SEE. I THINK WE ARE AT THE SEVENTH INNING STRETCH HERE.

>> YES! >> THE NEXT ITEM IS A REQUEST TO APPROVE A SPECIFIC AUTHORIZATION FOR WORK RELATED TO OUR STRIPPING TOWERS. AT THE WATER PLANT.R.

STEVENS WILL PRESENT THIS ITEM. >> THANK YOU MR. CISNEROS AND MADAM CHAIR AND BOARD MEMBERS AND MADAME MAYOR. I KNOW YOU'VE BEEN STANDING THERE OR SITTING THERE WAITING FOR MY PRESENTATION. [LAUGHTER] I WILL MAKE AS SHORT AND PAINLESS AS POSSIBLE. FPLA WILL INTEND TO REHABILITATE THE FLOOR STRIPPING TOWERS THAT WE HAVE. THE LINED AIR STRIPPING TOWERS AT THE WATER TREATMENT PLANT. THEY ARE USED TO REMOVE THE VOC SWITCHES OF VOLATILE ORGANIC CHEMICALS TO PUT IT BLUNTLY ÃÃ FORT PIERCE IS AN OLD CITY. AND HAS A LOT OF BURIED FUEL TANKS. AND WE STILL FIND THEM FROM OLD SERVICE STATIONS.

THAT WERE YEARS AND YEARS AGO. AND WHAT HAPPENS IS IF YOU'VE EVER SEEN AN OLD SITE REMOVED Ã ÃTHEY PUT A TANK THERE AND THEY RE-AREA AND RECIRCULATE THE WATER AND WHAT THAT DOES IS THE AERATION OF THE WATER REMOVES THE FUEL AND THAT'S THE VOLATILE CHEMICALS FROM THE WATER TO MAKE IT DRINKABLE IF WE HAVE IT. WE ARE LUCKY WE DO NOT HAVE THAT. YEARS AGO WHEN THEY PUT IN THEY DID HAVE TWO WELLS THAT NO LONGER LEARN ANYTHING FROM THEM.UT WE KEEP THEM BECAUSE IT'S GOOD FOR AERATION AND HELPS REMOVE HYDROGEN SULFIDE, WHICH IS THAT SULFUR SMELL SOMETIMES IN SUPERFICIAL WELLS AND SO IT'S GOOD OVERALL FOR THE WATER IN THE TREATMENT. BUT WE KEEP THAT IN THERE AS A BACKUP BECAUSE AS YOU KNOW ÃÃ MORE AND MORE CHEMICALS ARE COMING TO FIND CHEMICALS IN WATER AND THAT'S ONE OF THE REASONS WHY WE NEED THIS SYSTEM.

IT HAS NOT BEEN REHABBED SINCE 1989. NO MAJOR REHAB.

THEY BEEN STANDING ALONE. AND WHAT SCARED ME A FEW YEARS AGO AND I'LL PUT ON THE CAPITOL BUDGET. DOWN SOUTH THEY DID NOT DO MAINTENANCE AND THEY HAVE NOT BEEN ABLE TO CLEAN THEM PROPERLY. AND THEY COLLAPSED ON A UTILITY DOWN SOUTH.O THEY WENT INTO THEY JUST TOOK THE MIDDLE SECTION OUT OF THE CLASS AND IT'S NOT DOING THE JOB. SO WE'RE GONNA BE MORE COMPETITIVE TO BE AHEAD OF THE SCHEDULE AND MAINTAIN THAT FOR OUR SYSTEM. AND THAT'S WHY IT'S SO IMPORTANT.

SO I'M ASKING FOR RFQ Ã253 TO APPROVE THE SPECIFIC AUTHORIZATION NUMBER GT 62Ö4Ö401 TEST INCORPORATED IN FORT PIERCE FLORIDA IN THE APPROVAL $1,300,040.67 GOOD WATER TREATMENT PLANT STRIPPING TOWER REHABILITATION. THE SPECIFIC AUTHORIZATION SHALL PROCEED AND AND ON OR BEFORE SEPTEMBER 30, 2025 CONTINGENT ON RECEIVING THE REQUIRED CERTIFICATES OF INSURANCE. WE WILL BE SPREADING THIS OUT OVER TWO YEARS SO WE DO NOT TAKE A HIT EACH YEAR. WE WILL STARTED THIS YEAR ROUGHLY 250 PERCENT AND THEN 50 PERCENT NEXT YEAR AND FINISH IT UP.

WE HAVE THE WE CAN DO THIS BECAUSE WE HAVE FOR STRIPPING TOWERS AND WE USUALLY KEEP TWO OR THREE ON AT A TIME. WE WILL BE ABLE TO SPLIT THAT HAVE TO MAKE UP THE WATER ON THE SIDE. THIS IS ON THE LINE SOFTENING SIDE AND I'M HAPPY TO ANSWER

ANY QUESTIONS. >> ANY QUESTIONS? >> MADAME CHAIR? JUST A COUPLE OF THINGS.> THE FIRST ONE IS THIS ONE POINT AND IT'S A PRETTY BIG TICKET ITEM. THIS $1.3 MILLION. HOW DOES THAT FALL IN LINE WITH

WHAT YOU EXPECTED THE COST TO BE FOR PLACING THESE? >> IT'S ABOUT DOUBLE.

>> IT'S ABOUT DOUBLE? >> AND MOVING OUT WE LOOKED AT THINGS ONLY BECAUSE THERE IS SOME UNCERTAINTY THERETO. BUILT INTO THAT. I BELIEVE IT'S $50,000 CONTINGENCY IN THERE TO ADD ONTO IT. AND ONE OF THE REASONS GIVEN THAT WE TOOK WENT DOWN ÃTHIS WE INSPECTED AND THE GOOD THING IS I GOT A HARD NUMBER.

WHAT THESE NUMBERS I BRING TO YOU ÃÃIT WAS NOT JUST A WILD GUESS.

WE ACTUALLY BROUGHT THEM IN AND HAD A LOOK AT IT AND WE LOOKED AT WHAT IT WOULD COST.

[01:55:05]

THE PAINT IS GONE FROM THE OUTSIDE AND WHEN YOU EXPOSED FIBERGLASS STRIPPING TOWERS LIKE THAT ÃÃTHEY ARE GOING TO START LOSING THEIR INTEGRITY. SO ONE OF THE THINGS THEY'RE GOING TO DO IS THAT AND THEY'RE GONNA DO SOME REINFORCEMENT WITH THE FIBERGLASS ON THE INSIDE. SO IT MAKES IT MORE DURABLE AND YOU CAN LAST ANOTHER 34 YEARS?

>> THE NEXT THING IS IN THE PAINT ON THE FIBERGLASS MAKES A LOT OF SENSE TO ME.T'S

PRETTY SUSCEPTIBLE TO UV DAMAGE, RIGHT? >> YES SIR.

>> IS THERE ANY TYPE ÃÃOTHER THAN NOTICING THE PAIN IS GONE, IS THERE ANY KIND OF TESTING YOU CAN DO IN THE TOWERS TO MAKE SURE WHAT EXPECTED LIFE THEY STILL HAVE?

>> NO. ASKED THAT QUESTION. UNLESS WE GO IN AND TAKE ALL THE MEDIA OUT.

THAT'S ONE OF THE THINGS WE TALKED ABOUT WHEN WE DID THAT. YOU'RE FAMILIAR WITH THE MEDIA MAYBE THEY HAVE INSIDE. WHAT THEY ARE IS A PLASTIC BALL THAT'S WIRY LOOKING BUT IT'S ALL MADE OF PLASTIC. AND WHAT HAPPENS IS THE WATER RUNS OVER AND AS IT COMES IN AND THE AIR RUNS UP OUT OF IT AND THAT'S WHAT REMOVES YOU KNOW ÃÃTHE VOLATILE CHEMICALS AND THINGS LIKE THAT IN AREAS INTO THE ATMOSPHERE. WHAT HAPPENS IS THAT IT GETS OLD AND IRON ON IT BECAUSE WE HAVE A LOT OF IRON MAGNESIUM FROM OUR SUPERFICIAL WELLS.

EVERYBODY HAS ORANGES ON THEIR HOUSE FROM SUPERFICIAL WELLS. THAT'S PART OF WHAT WE HOPE REMOVE WITH THESE TOWERS. SO TO ANSWER YOUR QUESTION AND THEN WE REALLY GOT TO GET INSIDE AND DO AN INSPECTION. BUT MATERIALS ARE JUST WE ARE GONNA REPLACE THE MEDIA.

IT HAS NOT BEEN REPLACED IN 34 YEARS PRINT SO I'M SURE THERE'S A LOT OF BROKEN MEDIA IN THERE.

>> OKAY. >> MADAME CHAIR. I THINK THIS IS REALLY IMPORTANT. BECAUSE SOME THINGS THAT ARE HAPPENING THROUGHOUT THE COUNTRY LIKE IN JACKSON MISSISSIPPI WITH THE WATER ISSUE IN MICHIGAN WITH THE

WATER ÃÃWE DON'T WANT THAT. E WANT TO BE PREVENTIVE. >> ALL I CAN TELL YOU IS THAT WE ARE IN GREAT SHAPE. WE ARE WAY AHEAD OF EVERYBODY AND EVERYBODY WE TALK TO WE ARE VERY LUCKY. WE ARE VERY PROACTIVE AND UNDER MR. HUTCHINSON'S LEADERSHIP ÃÃ

[E.8. Status Report on Electric Power Cost Adjustment (PCA) for October 2023]

WE ARE PROACTIVE IN EVERYTHING FROM WATER AND WASTEWATER. >> GOOD.

>> GOOD. >> DO WE HAVE A MOTION FOR APPROVAL?

>> SECOND. >> MADAME CLERK, WILL YOU PLEASE CALL THE ROLE?

MR. GIBBONS, MR. LAMMERS, MAYOR HUDSON, MRS. BENNETT? >> YES-MAN.

>> YES MA'AM. >> YES MA'AM. >> YES MA'AM.

>> THANK YOU. MR. CISNEROS?> YES MA'AM. WE ARE NOW AT THE BOTTOM OF THE EIGHTH. [LAUGHTER] THE NEXT ITEM IS AN UPDATE ON THE POWER COST ADJUSTMENT. MRS. MICAH WILL PRESENT THIS ITEM AND AS SHE APPROACHES THE TABLE THERE. ONE OF THE THINGS THERE THAT WE'VE TALKED ABOUT AT THE STAFF LEVEL IS REPAIRING FOR A WORKSHOP SPECIFICALLY CENTERED AROUND THE RE CIVILIZATION FOUND IN POWER COST ADJUSTMENT BECAUSE YOU WILL SEE SOME NUMBERS TODAY ABOUT THE ÃÃ FUND AND WE WANT TO HAVE A REALLY GOOD LONG-TERM PLAN FOR WHAT WE ARE DOING THERE. SO WE WILL LIKELY DO THAT AND THAT WORKSHOP SOMETIME IN LATE JANUARY AND EARLY FEBRUARY BEFORE THE BUDGET SEASON AND WE ARE WORKING ON A PLAN ACTIVELY SO WE CAN GET THAT TO YOU. AS SOON AS POSSIBLE. ANYWAYS ÃÃMISS MICHAEL WILL

PREVENT THE PCA. >> THANK YOU MR. CISNEROS. MADAME CHAIR AND BOARD MEMBERS.

GOOD AFTERNOON. I HAVE HERE TODAY AS MR. CISNEROS SAID THE UPDATE ON THE STATUS OF THE PCA FROM OCTOBER 2023. UPDATED TABLES AND CHARTS.

IN THE LATEST 12 MONTH PROJECTIONS FROM FM PA. THIS IS THE QUARTERLY IMPACT OF THE POWER COST ADJUSTMENT. AND THE CUMULATIVE BALANCE OF THE POWER COST RECOVERY.

OUR GOAL IS TO RETAIN A RESERVE THAT WILL ALLOW FOR FLUCTUATIONS IN THE COST OF PURCHASE POWER. DURING OUR OCTOBER ÃÃTHE AVERAGE COST OF PURCHASE POWER WAS $61.42 PER MEGAWATT HOUR. AND THAT WAS WITH A PCA OF ZERO DOLLARS PER MEGAWATT HOUR.

IF FPA RECOVERED JUST UNDER $1 MILLION ÃÃWITH UNDER THOSE CONDITIONS ÃÃIT WOULD POWER COST THAT INCREASES OUR COLLECTION TO $9.8 MILLION AT THE END OF OCTOBER.

OCTOBER HAS GIVEN US A BREAK FROM THE HEAT AND SUMMER WEATHER.

THE COST OF PURCHASE POWER AS WELL. WE HAVE PURCHASED 51 MILLION MEGAWATT HOURS IN OCTOBER. THAT'S A 21 PERCENT DECREASE FROM WHAT WE WERE PURCHASING IN AUGUST. JUST BECAUSE OF THE HEAT OF THE SUMMER.

AND THAT WAS AT A COST OF $3.4 MILLION FOR OUR POWER COST IN OCTOBER.

[02:00:06]

IN RELATION TO THE APPROVED POWER COST ADJUSTMENT. AND WE HAVE HERE A TWO YEAR LOOK BACK IN A ONE YEAR LOOK FORWARD. THE POWER COST ADJUSTMENT IS THE DARKER BLUE LINE THAT GOES ACROSS UP AND DOWN.ND IT WAS AT ZERO DOLLARS IN OCTOBER.

IGHT HERE. THE BARS ON THIS CHART INDICATE THE LEVEL OF THE OVERALL RECOVERY POWER COST. WITH THE BLUE BARS BEING ACTUALS FROM OCTOBER 21 THROUGH OCTOBER 2023. THIS IS THE ORDER RECOVERY AMOUNTS IN THESE BARS.

THE ORANGE BARS SHOW THE PROJECTED LEVEL OF THE OVERALL RECOVERY THROUGH OCTOBER 2024 INCLUDING WITH THE CURRENT FM PA FORECAST NUMBERS. FMPA'S ESTIMATED COST OF PURCHASES FOR THE UPCOMING 12 MONTHS HAS DECREASED $3 MILLION FROM THEIR PROJECTION IN AUGUST. FISCAL YEAR 2024 AVERAGE COST FOR 1000 KILOWATT HOURS IS PROJECTED TO BE $75.72. PER MEGAWATT HOUR. AND FOR 2025, THE AVERAGE COST IS PROJECTED TO BE $84 AND ÃÃ $82.04 AND BOTH OF THESE ARE DECREASES AT 2024 IS A SEVEN PERCENT DECREASE FROM WHAT WAS PROJECTED IN AUGUST AND 2025 NUMBERS ARE NINE PERCENT LOWER THAN WHAT WAS PROJECTED IN AUGUST.

THIS IS FOR THE TWO YEAR OUTLOOK. THIS LONG-TERM PROJECTION DOES NOT HAVE MUCH OF A COMPARISON. USUALLY YOU HAVE TWO OR THREE SCENARIOS HERE.

THIS LONG-TERM PROJECTION IS BASED ON THE CURRENT FORECASTED NUMBERS FOR OCTOBER.

WHILE MAINTAINING A ZERO POWER COST ADJUSTMENT THROUGH FISCAL YEAR 2025.

THE SOLID HORIZONTAL LINES MARKED THE RATE STABILIZATION FUND WINDOW.

THAT STAFF IS RECOMMENDING FOR CONSIDERATION BY THE BOARD. FOR OUR DIRECTION FOR THE FUTURE. MOVING FORWARD. THIS IS THE RATE STABILIZATION FUND WINDOW. THE RED LINE DEPICTS A FLUCTUATION AND CHANGES IN THE ANTICIPATED LEVEL OF THE POWER COST RECOVERY WHILE MAINTAINING A ZERO POWER COST ADJUSTMENT FOR THE FUEL. THROUGH SEPTEMBER 2025. SO THIS IS WHERE WE THINK THE COST WILL ÃÃTHE POWER COST ADJUSTMENT LEVEL WILL GO GOING AT TWO YEARS OUT AT THESE LEVELS. THE GREEN LINE ON THE BOTTOM MARKS THE MINIMUM FUND BALANCE.

THEY SHOULD BE MAINTAINED. IN THE STABILIZATION OF THIS FUND BALANCE.

THE BLUE LINE ACROSS THE TOP INDICATES A TARGETED FUND BALANCE FOR THE RATE STABILIZATION. THIS IS MUCH HIGHER THAN WE PREDICTED IN THE PAST.

BUT HISTORY HAS SHOWN US THAT WE NEED TO MOVE FORWARD WITH THIS.

THE VERTICAL BLUE LINES MARKED THE CALENDAR FOR APRIL 2024 AND APRIL 2025.

THIS IS WHERE FMPA'S PERCENTAGES WILL BE CHANGING IN THOSE AMOUNTS DOWN HERE ON THE BOTTOM, WE ARE CURRENTLY HERE IN 2023 WITH PRE-PURCHASES OF 75 PERCENT.

THOSE WILL CHANGE IN APRIL. 250 PERCENT OVER THE NEXT 12 MONTHS AND AGAIN IN APRIL 2025 ÃÃTHEY HAVE TAKEN SOME STEPS FOR THE YEAR GOING INTO 25 INTO 26.

STAFF IS NOT RECOMMENDING ANY CHANGE IN PCA AT THIS TIME WE WILL CONTINUE TO MONITOR THE FM PA PROJECTION OF THE COST AND THE IMPACT THAT HAS ON THE POWER ADJUSTMENT.

AND OF COURSE WE WILL REPORT MONTHLY AND AS OFTEN AS WE CAN TO MAKE RECOMMENDATIONS WHENEVER IS NECESSARY. THAT IS MY PRESENTATION ON POWER COST.

IF THERE'S ANY DISCUSSION OR COMMENTS ÃÃI WILL BE HAPPY TO ADDRESS.

>> ANY QUESTIONS? OKAY.

>> AGAIN, WE WILL HAVE A WORKSHOP AT THE END OF JANUARY TO SPECIFICALLY TAKE A LOOK AT THOSE ÃÃTHAT WINDOW. JUST FOR REFERENCE ÃÃTHE UPPER WINDOW ÃÃWE EXPERIENCED THAT DELTA IN THE APRIL Ã AUGUST TIMEFRAME.HE DELTA WAS JUST THAT.

SO I THINK WE'VE GOT A GOOD OPPORTUNITY TO LOOK AT A LONG-TERM PLAN AND MAKE IT A REALLY GOOD ÃÃHAVE A REALLY GOOD EXECUTION FOR WHAT THIS LOOKS LIKE FOR OUR COMMUNITY SO

THAT WE CAN TRY TO MAINTAIN THE PCA BACKBONE NEAR 00. >> I THINK THE WORKSHOP WILL BE. BAD BECAUSE I THINK WE NEED TO BE EDUCATED AND HAVE IT FLUSHED

OUT SO THAT WE FEEL GOOD ABOUT THAT. >> AND AS YOU CAN SEE, IT DIPS

[02:05:05]

IN PAYMENT. >> IT MAKES ME EXCITED FOR THE FUTURE.

MADAM CHAIR. FOR OUR NEXT GENERATION TO BE ABLE TO SET UP A STABLE FUND IN ORDER TO KEEP THEM FROM HAVING TO DEAL WITH WHAT WE HAVE SO Ã ¦

[LAUGHTER] >> YES.

>> YOU'LL SEE AS IT DIPS DOWN HERE INTO JUNE 2025 WITH THEIR PROJECTIONS ARE A LITTLE BIT HIGHER FOR THE SECOND YEAR AND THAT'S WHERE SOME OF THAT POWER COST WILL FALL OFF.> THE RISK IS LESS PREPURCHASE AND THE RISK IS HIGHER. SO æ

>> RIGHT. >> BUT YOU DID SAY THAT WE ARE PROJECTING ZERO PCA UNTIL

SEPTEMBER 2025? >> YES. >> IT LOOKS LIKE FOR NOW, YES.

>> THAT'S FOR THE YEAR. >> OKAY. >> AND YESTERDAY GREG AND FRED

[E.9. August 2023 Financial Operating Results]

GAS YESTERDAY WAS 2.78.2.78. IT'S PRETTY LOW. >> GREAT!

>> THAT'S NICE. OKAY. INFORMATION ONLY.

>> IT'S INFORMATION ONLY. YES MA'AM. >> NEXT ITEM.

>> THANK YOU BARBARA. I APPRECIATE IT. SO WE ARE NOW ÃÃI'M GONNA CONTINUE WITH THE REFERENCE HERE. THE BOTTOM OF THE NINTH.

THREE OUTS ÃÃ3Ö PITCH HERE. LAUGHTER] >> IT IS MICHELLE.

>> IT IS MICHELLE. MICHELLE?

[LAUGHTER] >> MICHELLE WILL æ >> KNOCK IT OUT OF THE PARK

MAYBE? >> HOME RUNS >> SHE WILL PROVIDE AN OPTION ON FINANCIAL RESULTS AND MICHELLE? IT'S ALL YOURS.

>> NO PRESSURE. >> YES.

[LAUGHTER] > THANK YOU MR. SISNEROS. MAYOR HUDSON, MANAGER AND BOARD MEMBERS. I'M HERE TODAY TO PRESENT YOU THE OPERATING RESULTS OF AUGUST 2023. THIS FINANCIAL SUMMARY ADVICE SYSTEM SHOWS HOW FPUA IS OPERATING AS A WHOLE AND HOW EACH UTILITY IS OPERATING INDEPENDENTLY.

IF YOU LOOK HERE ON THE TOP ROW YOU WILL SEE AS A WHOLE, OPERATING REVENUES ARE ABOUT 120 MILLION WHILE OPERATING EXPENSES CAME IN AT ABOUT 103 MILLION.

WHICH OPERATES INCOME AT ABOUT 17 MILLION. EACH SYSTEM CHANGE ÃÃIF YOU LOOK DOWN HERE AT THE BOTTOM Ã ÃEACH SYSTEM CHANGE IN THE POSITION IS POSITIVE WITH THE EXCEPTION OF THE MANATEE CENTER. IN THE OVERALL ADJUSTED CHANGE IN THAT POSITION IS AN INCREASE OF 18 MILLION. AND THE INCREASE IN THAT POSITION BY FDA IT USES THAT THE PURCHASE AND MAINTAIN OUR INFRASTRUCTURE.

S RIGOROUSLY STATED, THE YEAR TODAY OPERATING REVENUES CAME IN AT ABOUT HUNDRED 20 MILLION IN THIS IS AN INCREASE AT 5.2 MILLION FROM THE SAME 11 MONTHS LAST YEAR.

54 PERCENT OF OUR OPERATING REVENUES COME FROM GENERAL SERVICE SALES WHILE 42 PERCENT COME FROM RESIDENTIAL SALES. REVENUES FROM THE PCA AND THE PGA ACCOUNT FOR ALMOST 7 PERCENT OF OUR OPERATING REVENUES, WHICH IS A MOST EIGHT AND HALF MILLION DOLLARS OF THAT. IN OUR RATE STABILIZATION FUND AT THE END OF AUGUST WAS ABOUT 7.5 MILLION. THESE CHARTS WILL SHOW ACTUAL REVENUES.

A YEAR TO DATE BY SYSTEM COMPARED TO THE AMENDED BUDGET IN THE AMENDED BUDGET THAT WAS APPROVED RECENTLY IN AUGUST. ELECTRIC REVENUES OF 76 MILLION ARE ABOUT THREE PERCENT BELOW BUDGET. AND ELECTRIC CONSUMPTION IS UP ONE PERCENT FROM THE SAME 11 PERCENT FROM LAST YEAR. WATER REVENUES ARE ABOUT 27 MILLION AND THEY ARE RIGHT ON TARGET WITH OUR BUDGET NUMBERS. WHILE CONSUMPTION IS UP TWO PERCENT FROM THE SAME PERIOD LAST YEAR. GAS REVENUES ARE COMING IN AT A LITTLE BIT OVER 6,000,003 AND A HALF MILLION PERCENT BELOW BUDGET AND CONSUMPTION IS DOWN SIX PERCENT FROM LAST YEAR.

OUR WASTEWATER REVENUES ARE ABOUT 22 MILLION AND THEY ARE BELOW BUDGET BY FIVE PERCENT.

BUT ERIC ALLEN'S BILL IS ACTUALLY UP THREE PERCENT FROM THE SAME 11 MONTHS LAST YEAR.

OVER UP ON THE RIGHT SIDE ÃÃ IF YOU A REVENUES ARE AT ABOUT 1 AND A HALF MILLION AND THEY ARE ALMOST RIGHT ON TARGET WITH OUR BUDGET NUMBERS AND WHAT WE ARE EXPECTING.

AND REVENUES SLIGHTLY BELOW BUDGET AMOUNTS. BUT OVERALL THE OVERALL FUA ORGANIZATION CAME OUT WITH 135 MILLION AND WE ARE JUST THREE PERCENT LOW PROJECTIONS SO WE DID A REALLY GOOD JOB.

OUR YEAR TODAY OPERATING EXPENSES ARE 103 MILLION THROUGH AUGUST.

NOW 50 PERCENT OF THAT IS PURCHASES FOR RESALE. AND THAT'S ABOUT $52 MILLION OF

[02:10:03]

GENERAL ADMINISTRATION COSTS. OPERATING EXPENSES ACTUALLY DECREASED 4 PERCENT FROM THE SAME 11 MONTHS LAST YEAR. JUST SIMILAR TO REVENUES, WE'VE DONE THE SAME KIND OF CHARTS FOR EXPENSES AND THIS WILL COMPARED TO WHERE WE ARE COMPARED TO OUR AMENDED BUDGET.

ELECTRIC EXPENSES ARE AT 72 MILLION AND THEY ARE FOUR PERCENT NOW BELOW BUDGET.

PURCHASE POWER IS ACTUALLY COMING IN AT ABOUT 3 AND A HALF PERCENT BELOW BUDGET WHICH IS 1.7 MILLION. WATER EXPENSES OF 19 MILLION ARE BELOW BUDGET BY SIX PERCENT. GAS EXPENSES OF 6 MILLION ARE ABOUT NINE PERCENT BELOW AND GAS PURCHASES FOR RESALE OR 10 PERCENT BELOW BUDGETED NUMBERS. WASTEWATER EXPENSES OF 17 MILLION ARE BELOW BUDGET BY FOUR PERCENT. FUA EXPENSES OF 1.2 MILLION ARE SLIGHTLY BELOW BUDGET AND MEANWHILE MANATEE CENTER EXPENSES ARE JUST RIGHT ON OUR PROJECTIONS. SO OVERALL ÃÃFUA'S EXPENSES ARE JUST FOUR PERCENT BELOW PROJECTIONS. OUR DEBT SERVICE COVERAGE RATIO AS THE RATIO OF THE 12 MONTH AVERAGE OF NET AVAILABLE INCOME COMPARED TO THE DEBT SERVICE WHICH IS PRINCIPAL AND INTEREST PAYMENTS AND FOR THE 12 MONTHS ENDING AUGUST WE ARE AT 2.74 AND AS ALWAYS A REMINDER ARE BOND COMPANY HAS TO MAINTAIN AT LEAST A 1.25. YOU'LL SEE HISTORICALLY THAT WE EXCEED THE AND ARE DOING VERY WELL. THIS HAS BEEN INFORMATION ON

[F. DIRECTOR COMMENTS]

IN THE NINTH INNING. BUT I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU GUYS MAY HAVE.

[LAUGHTER] >> ANY QUESTIONS? NOPE! ALL RIGHT. ALREADY.

[CHEERING] HOME RUN. >> THANK YOU SO MUCH.

DO WE HAVE ANY DIRECT COMMENTS AT THIS TIME? >> YES-MAN.

I CANNOT HELP MYSELF. I WILL DO THE POST INTERVIEW COMMENTS FROM THE MANAGER.

SO FIRST I WOULD LIKE TO THANK ROSELLE FOR THE WORK THAT SHE'S DONE TO PUSH THE IMAGE OUT TO OUR ONLINE FORMAT. I KNEW THIS WAS PART OF OUR FIRST PUSH.

SO HOPEFULLY OVER TIME WE CAN TRANSITION AWAY FROM THE PAPER. AND AS ITEMS GET ADDED OR SUBTRACTED ÃÃYOU GET IMMEDIATE NOTIFICATIONS. SO THAT'S SOMETHING WE'VE BEEN LOOKING TO DO FOR QUITE SOME TIME AND THEN SHE WAS ABLE TO GET IT DONE.

I WOULD JUST LIKE TO THANK HER FOR DOING THAT.> YOU SAW THE PRESENTATION TODAY FOR FPUA AND AMI AND NEXT MONTH WE WILL LIKELY ÃÃWHICH WILL BE IN JANUARY, WE WILL HAVE THE ELECTRIC PEAK GAS OF THE AND THEN THE FOLLOWING MONTH OF FEBRUARY WE WILL HAVE THE WASTEWATER UPDATE. SO WE WILL CONTINUE TO BRING THESE UPDATES TO THE BOARD.

SO YOU CAN SEE THE STATUS OF THE PROJECT AND WHAT WE HAVE BEEN DOING TO EITHER GET THERE

OR TRY TO GET THERE. SO æ >> LET'S SEE HERE.

DECEMBER 19 IS TENTATIVELY, THE NEXT BOARD MEETING IF WE DO NOT HAVE ANY AGENDA ITEMS, WE WILL LIKELY CANCEL THAT MEETING. AND IT JANUARY 2 IS ALREADY ÃÃ THAT MEETING IS ALREADY GONNA BE CANCELED BECAUSE THE CITY IS ALSO CANCELING THE MEETING. IT'S THE TUESDAY AFTER THE FIRST WHICH IS THE NEW YEAR AND WE GET PUSHED UP TO THE EARLIER TIMEFRAME, BUT THEY ARE CANCELING THEIR MUNICIPAL WILL CANCEL HOURS PER TODAY'S MEETING SATISFIES THE CHARTER AGREEMENT FOR THE MINIMUM MEETING PER MONTH. AND THEN HENRY 16TH WILL FULFILL OUR REQUIREMENT FOR THE REQUIREMENT. THAT WILL BE AT 2 O'CLOCK.

AFTER THE HOLIDAY THE CITY WILL BE MOVING THE MEETING UP AS WELL.O Ã ÃÃJANUARY 16

WILL BE OUR ONLY MEETING FOR JANUARY. >> BECAUSE OF THE HOLIDAY?

>> YES. RIGHT, RIGHT, RIGHT. >> THAT MAY ALSO BE AT 2 O'CLOCK. AND AGAIN, I WOULD LIKE TO CONGRATULATE RACHEL AND HER TEAM. IT'S SUCH A BIG DEAL FOR FUA IN THE CITY OF FORT PIERCE TO BE ABLE TO PURSUE THESE THINGS AND BE SUCCESSFUL. IT JUST REPRESENTS US VERY WELL. WE HAD THESE GRANTS COMING IN NOW SO WE HAVE TO DO THE OTHER HALF OF THAT NEXT TO MANAGE THE GRANT AND WHICH IS JUST AS IMPORTANT AS GETTING THOSE IN.

SO A LOT OF WORK DONE TO BE DONE THERE. SO SHE'S DOING A GREAT JOB.

[G. BOARD MEMBER COMMENTS]

[02:15:02]

TODAY. MADAM CHAIR? >> THANK YOU SO MUCH MR. SISNEROS. BOARD MEMBERS ÃÃDO WE HAVE ANY COMMENTS?

>> HAPPY HOLIDAYS. >> U.S. >> I HAVE JUST A COUPLE OF THINGS. SO I WAS SUPER EXCITED TO SEE THE UPDATE FOR FUA NET AND THE GROWTH AND THE DIRECTION WE ARE HEADING IN THERE. I THINK THAT'S REALLY IMPORTANT EFFORT FOR OUR COMMUNITY. AND THEN THE OTHER THING IS I DON'T KNOW IF WE ARE GOING TO DO A PARADE WITH FIREWORKS. SOME BRONZE STATUES OR RELEASING CHINESE LANTERNS OVER THE WATER WERE CLEMENT STATIONS FACILITY. THERE'S SOMETHING THERE FOR RACHEL. IN THE WORKS. RACHEL AND HER TEAM IN MIND A MONUMENT OR SOMETHING BECAUSE SHE'S BEEN VERY IMPRESSIVE FOR HER TEAM.

>> I HEAR YOU THERE. >> SUPER EXCITING. >> 28 MILLION.

[CHEERING] [LAUGHTER]

[APPLAUSE] >> IT'S SO CRAZY. >> POUND FOR POUND THAT'S

PRETTY IMPRESSIVE. >> SHE'S SO TINY TOO. >> I KNOW.

[LAUGHTER] >> WHO ARE YOU? >> TINY BUT MIGHTY, RIGHT?

>> YES. >> MADAM CHAIR, I JUST WANT TO SAY THANK YOU TO FP WAY STAFF FOR ALL THE HARD WORK ON THE PARADE YESTERDAY BECAUSE THEY DO A BEHIND THE SCENES.

AND THEY MAKE AND BRING SANTA AND THEY BRING THE CHRISTMAS TREE LIGHT AND THEY DO A LOT THAT A LOT OF PEOPLE DON'T EVEN REALIZE. SO THANK YOU VERY MUCH.

YOU WANTED US TO SO RIGHT? AND ALSO TO MADAM ATTORNEY ÃÃ WHO DID NOT GET TO HEAR YOU THIS AFTERNOON AND I WAS SO LOOKING FORWARD TO THE CONFLICT POF INTERES.

[LAUGHTER] >> WE WILL RESUME NEXT YEAR. >> YES, I KNOW.

RIGHT? >> WHEN IN DOUBT ÃÃJUST CALL HER.

YES. [LAUGHTER]

>> OHMIC EXTRA LONG NEXT TIME. IME. ANYWAY.

AND YES. HAPPY HOLIDAYS AND MERRY CHRISTMAS TO YOU.

AND HAPPY NEW YEAR'S. >> AND AGAIN RACHEL ÃÃWE'RE JUST SO SO PROUD WE ARE GLAD THAT YOU WENT OUT THERE AND FINDING THIS GRANT AND GETTING THE MONEY IN.

LIKE I PROJECT AND CAME UP WITH, I WANT TO KEEP SAVING? AND EVERYBODY WAS LIKE SEVEN Ã $8000. NO, WE'RE GONNA GET WAY MORE THAN THAT.

SO THANK YOU SO MUCH THAT YOU CAME ABOARD AND RAN WITH IT. AND WE THANK YOU SO MUCH FOR THAT. BECAUSE YOU HAVE YOUR SNEAKERS ON AND YOU ARE MAKING TRACKS AND WE THANK YOU FOR THAT. ALSO ÃÃHAPPY HOLIDAYS TO EVERYONE.

AND I AM JUST SO PROUD OF EVERYTHING THAT HAS WENT ON THIS YEAR.

BECAUSE WE HAVE OVERCOME SOME

* This transcript was compiled from uncorrected Closed Captioning.