Apr 16, 2024 Fort Pierce Utilities Authority

[MEETING TO ORDER]

[00:00:20]

>>> GOOD AFTERNOON. IT IS NOW FOUR:00 P.M. I WOULD LIKE TO CALL TO ORDER THE REGULAR MEETING OF ONE UTILITY BOARD. WOULD YOU PLEASE JOIN US IN STANDING FOR THE INVOCATION LED BY CAROL WILSON OF HUMAN RESOURCES AND THE PLEDGE OF

ALLEGIANCE. >> FATHER, WE THANK TO COME BEFE YOU TODAY THAT YOU PROVIDE YOUR WISDOM AS THE FPUA BOARD MAKES DECISIONS THAT WILL AFFECT BOTH OUR COMPANY AND OUR CONSTITUENTS. I ASK THAT YOU BLESS ALL OF THE FPUA EMPLOYEES, KEEPING THEM SAFE AND IN YOUR LOVING CARE, IN

JESUS' NAME WE PRAY, AMEN. >> YEMAN. I PLEDGE ALLEGIANCE

TO THE FLAG >> OF THE UNITED STATES OF AMERICA. FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

>> WOULD YOU PLEASE CALL THE ROLL?

>>

[A. SET THE AGENDA]

AGENDA. DO I HAVE A MOTION? >> MOVE APPROVAL.

>> SECOND. >> MADAM CLERK, WOULD YOU

PLEASE CALL THE ROLE THE >> ROLE?

>> THE NEXT ITEM ON THE AGENDA AS PUBLIC COMMENTS. IF THERE IS ANY MEMBER OF THE PUBLIC THAT WOULD LIKE TO COME FORWARD AND SPEAK, YOU MAY DO SO NOW. WHEN YOU COME, PLEASE SAY YOUR NAME AND ADDRESS FOR THE RECORD. YOU WILL HAVE 3:002 ADDRESS THE BOARD. SEEING THERE IS NO ONE THAT HAD COME FORTH, I WILL

[C. APPROVAL OF MINUTES]

DO I HAVE A MOTION? >> MOVE APPROVAL.

[D. CONSENT AGENDA]

>> SECOND. >> MADAM CLERK, WOULD YOU

PLEASE CALL THE ROLL. >>

>> ARE THERE ANY ITEMS THE BOARD WOULD LIKE TO PULL FOR DISCUSSION ON THE CONSENT AGENDA OR DO I HAVE A MOTION?

THE CONSENT AGENDA. >> SECOND.

>> MADAM CLERK, WOULD YOU PLEASE CALLED THE ROLL?

>>

[E.1. FMPA Presentation]

CISNEROS. >> THANK YOU, MADAM CHAIR. GOOD AFTERNOON, BOARD MEMBERS. TODAY, THE FIRST ITEM TODAY WE ARE JOINED BY THE FMPA GENERAL MANAGER, JACOB WILLIAMS. ONE OF THE REQUESTS WE HAVE FROM OUR DARK WORKSHOP, THIS REQUEST SPECIFICALLY CAME FROM MR. LAMMERS. THE REQUEST WAS ACTUALLY A DISCUSSION AT THE FMPA BOARD LEVEL. PART OF THE REASON THE PRESENTATION WAS PUT TOGETHER VERY QUICKLY IS BECAUSE IT WAS ALREADY MADE. GREAT MINDS THINK ALIKE. MR.

WILLIAMS, THE FLOOR IS YOURS. >> ALL RIGHT. THANK YOU SO MUCH , MADAM CHAIR AND EVERYONE. NICE TO BE DOWN HERE. WE JUST GOT THROUGH WITH THE RATE CALL TODAY. WE WILL GET INTO IT BUT THE GOOD NEWS IS, THE GOOD NEWS IS HERE. GOOD THING FOR EVERYONE. I KNOW JAVIER HAD ASKED US TO COME AND TALK ABOUT THE WHAT IF SCENARIOS AND WHAT IS GOING ON IN THE GAS WORLD. A QUICK REMINDER WHO FMPA IS, FOR THOSE WHO DON'T KNOW. FMPA IS MADE UP OF 33 MUNICIPAL UTILITIES THAT ARE ON THE MAP THERE. COLLECTIVELY, WE SERVED 3 MILLION, THE CITY SERVES 3 MILLION FLORIDIANS WITH ELECTRICITY, 14% OF THE STATE RUNNING, YOU KNOW, ALL THE WAY FROM KEY WEST THROUGH THE COASTAL AREAS HERE, UP THE JACKSONVILLE AREA AND ALL THE WAY TO TALLAHASSEE. FMPA, OF WHICH YOU ALL ARE STRONG MEMBER OF, 80% OF OUR GENERATION, OR MEGAWATT HOURS, 80% COMES FROM NATURAL GAS-FIRED GENERATION. SO NATURAL GAS IS THE KEY ELEMENT IN THE COST OF POWER TO ALL YOUR CUSTOMERS BE BECAUSE OF THAT. THAT IS SOMETHING YOU ARE ALL FAMILIAR WITH. JUST TO GIVE YOU A BIT OF PERSPECTIVE, FLORIDA IS VERY UNIQUE IN THE

[00:05:02]

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ÇAI. THERE ARE LABOR COSTS, THERE ARE EQUIPMENT COSTS, THERE ARE OTHER THINGS, TRANSMISSION COSTS ARE GOING UP . TO SAY WE WILL HOLD THAT BELOW THE 70 WHEN INFLATION IS PROBABLY, OVER THAT PERIOD OF TIME, UP OVER 22%, CPI, YOU COULD ARGUE THE CONSUMER PASS $70 IN 2019 IS EQUIVALENT TO 85 TODAY. YOU KIND OF FRAME IT AND SO WE THINK ABOUT IT AND SAY, LOOK, IF WE CAN BE AT 80 OR BELOW IN THE MID-1970S, THAT IS A GOOD THING TO SAY. THE GOAL IS TO BE UNDER 70, THAT WOULD BE GREAT. IT MAY NOT BE ATTAINABLE GIVEN ALL THE OTHER COSTS ARE GOING UP. SO THAT IS ONE THING TO CONSIDER. THE PROGRAM WAS SET UP FOR THE CITIES TO SAY WHAT PRICE OF POWER ARE YOU COMFORTABLE WITH GETTING FROM FMPA SO THAT YOU HAVE A VERY REASONABLE PRICE TO YOUR CUSTOMERS? WILL IT BE THE ABSOLUTE LOWEST? MAYBE NOT. BUT IT IS SOMETHING YOU WON'T HAVE THIS, LET'S VOTE ON A 40%

[00:10:06]

YOU CAN THINK ABOUT WHAT THE BOARD IS LOOKING AT, ALLOWING THE TEAM TO LOCK-IN UP TO 75% OF THE GAS WE WILL NEED FOR THE COMING YEAR A YEAR IN IN ADVANCE. 50% THE GAS TWO YEARS IN ADVANCE AND 75% OF THE GAS THREE YEARS IN ADVANCE. SO WE WILL ALWAYS HAVE SOME GAS SUBJECT TO THE MARKET THING, BUT WHEN WE SAY LOCKED UP, IT IS NOT JUST LOCKING IT UP, IT IS ONLY IF THE PRICES HIT A TARGET EVERYBODY IS COMFORTABLE WITH. THE BOARD HAS TO SAY, HERE IS A TARGET PRICE WE WANT FOR POWER. IF WE CAN GET GAS THAT WILL DELIVER THAT COST OF POWER, THEN YOU ARE ABLE TO DO THAT. IF GAS PRICES ARE TOO HIGH, YOU CAN'T DO ANYTHING. VERY SIMPLE. SO IF YOU LOOK AT THIS NEXT CHART HERE, ON THE FAR RIGHT IT SHOWS YOU, IF WE WANTED TO DELIVER $80 POWER IN 2024, WHAT WITH THE GAS PRICE NEED TO BE IN THE SUMMER AND WHAT WOULD THE GAS PRICE NEED TO BE IN THE WINTER? WE HAVE ALREADY DEALT WITH 2024 AND WE ARE LOOKING AT 2025. WE NEED TO ESSENTIALLY HAVE GAS AT $3.30 IN THE SUMMER AND $3.65 IN THE WINTER. IF YOU USE THOSE TARGETS AND SEE IF YOU CAN DO THAT OR BETTER, GO AHEAD AND LOCK UP SO MUCH GAS, EITHER 75, 50 OR 25%. SO THAT IS WHAT THEY ARE BEING CONSIDERED TO DO. IF YOU LOOK AT WHERE WE ARE AT TODAY AND THINK ABOUT IT, WE GOT ALMOST 75%. WE'VE GOT 75% OF OUR GAS LOCKED UP THROUGH ESSENTIALLY NEXT MARCH. YOU GOT REAL PRICE CERTAINTY. WHAT WE KNOW WE CAN COME IN AND THAT $75-$80 RANGE, NO QUESTIONS ASKED. BUT THE ISSUE IS STARTING NEXT WINTER AND IN THE FOLLOWING SUMMER, WHAT WILL WE DO? WITH THE PROGRAM WE LAID OUT, THE BLUE LINE REPRESENTS ON THAT CHART, REPRESENTS WHAT THE CURRENT PRICE OF GAS IS, WHAT IS TRADING IN THE MARKET. THE RED OR GREEN LINE ARE WHAT THE TARGETS ARE. RED WOULD SAY THE TARGET IS BELOW , LOWER THAN WHAT THE MARKET IS. THEREFORE, WE WON'T DO ANYTHING. IF YOU NOTICE NEXT SUMMER, IT IS ACTUALLY GREEN.

THAT MEANS WE CAN GET GAS AT A PRETTY GOOD PRICE. WE CAN LOCK-IN WHAT WE WOULD WANT FOR TARGET AND WE CAN GO AHEAD AND DO THAT. ALL THE OTHER PERIODS WE CAN'T DO ANYTHING. SO WE ARE ALREADY AT 75%. NEXT SUMMER WE WOULD BE MOVING FROM LIKE 20% TO 50%. WE WOULD JUST KEEP LEVERING MORE SECURITY AS TIME GOES ON. SO ANYWAY, IN THE BLUE BARS YOU SEE ON THERE, THAT IS THE RANGE THAT GAS PRICES TRADED FOR THAT MONTH IN THE LAST THREE YEARS. IF YOU NOTICE, THE BLUE LINE IS IN THE BOTTOM HALF. AT LEAST THROUGH NEXT SUMMER. AFTER THAT, IT IS KIND OF IN THE MIDDLE THROUGH THE UPPER PART OF THE TRADING RANGE. SO YOU THINK ABOUT IT, YOU SAY, IF WE CAN GET GAS IN THE LOWER PART OF THAT TRADING RANGE, THAT IS PROBABLY A GOOD VALUE. YOU DON'T WANT TO BUY AT ALL-TIME HIGHS AND LOCK-IN THE HIGHEST PRICE WEEKEND. THAT IS NOT OUR GOAL. OUR GOAL IS TO BE ON THE LOW SIDE OF THAT. ALL RIGHT. SO THE LAST THING IS, SEVERAL OF OUR MEMBERS ASKED AND JAVIER WAS ONE OF THEM, SAID, IF WE WOULD HAVE DONE THIS IN 2020 OR IN 2021, IF WE HAD THAT KIND OF PROGRAM IN PLACE, HOW MUCH WILL WE HAVE SAVED? SO WE RAN THE SCENARIO. I WILL LAY IT OUT. THE BLUE LINE UP ABOVE IS WHAT THE ACTUAL PRICES WERE SOLD AT EACH MONTH. YOU SEE WHEN THE PRICES TOOK OFF THEY WERE HIGH. IF WE HAD DONE THE SCENARIO WE TALKED ABOUT, THE RED LINE IS WHERE WE WOULD HAVE LOCKED IN. WHEN THE RED LINE IS BELOW THE BLUE LINE, THAT IS SAVINGS. WHEN THE RED LINE IS BELOW THE BLUE LINE, YOU ARE PAYING A PREMIUM. IF YOU HAD STARTED IN 2020 AND PLAITED OUT OVER A THREE-YEAR PERIOD, THE CITIES COULD HAVE SAVED $87 MILLION. NOW, WHAT HAPPENED WAS, BECAUSE WE DIDN'T DO ANYTHING, WE ENDED UP ACTUALLY COSTING $77 MILLION. I DON'T KNOW WHAT THE NUMBER IS TODAY, IT IS CLOSE TO THAT. WE TOOK THE RUN UP AND THEN WHAT ACTUALLY HAPPENED PLAYED OUT. SO THE POINT OF THIS IS, YOU WANT TO PUT A

[00:15:09]

>> MADAM CHAIR? >> COULD YOU EXPLAIN TO ME IN A LITTLE MORE DETAIL THIS GRAPH THAT IS UP THERE RIGHT NOW?

>> YEAH. >> I UNDERSTAND WHAT YOU ARE SAYING SO THE WHAT IF SCENARIO IS SHOWING US OUR COST OF PURCHASE POWER IF WE PREPURCHASE HOW MUCH GAS?

>> WELL, THE RED LINE IS THE GAS PRICE. THESE ARE ALL GAS

PRICE LINES. >> OKAY.

>> WHAT IT SHOWS YOU IS, IF WE HAD IMPLEMENTED THE 75, 50, 25% THROUGH THIS YEAR, 75% AND A YEAR OUT 50% AND TWO YEARS OUT 25%, WE WOULD HAVE LOCKED IN THOSE PRICES THAT YOU SEE IN RED VERSUS WHAT ACTUALLY HAPPENED IN BLUE.

>> JAVIER, WHEN HE PRESENTED THIS TO US AT THE WORKSHOP, HE SAID THEY WERE CERTAIN PRICE TRIGGERS THAT DICTATED WHETHER OR NOT WE WILL LOCK-IN AT 25, 50 OR 75%.

>> THAT'S RIGHT. >> THAT THE MARKET HAVE THOSE PRICES AVAILABLE TO US DURING THOSE TIME PERIODS?

>> YES, THEY DID. THAT IS A POINT. THREE YEARS OUT, IF WE HAD DONE THIS, WE WOULD HAVE BEEN LOCKING IN 25% GAS AT THESE LOW NUMBERS IN RED. ACTUALLY, IF WE HAD DONE IT THREE YEARS IN ADVANCE, TWO YEARS IN ADVANCE, ONE YEAR IN ADVANCE, WE WOULD HAVE LOCKED IN THE RED LINE SCENARIO. THAT IS WHAT THE MARKET ACTUALLY WOULD HAVE GIVING YOU.

>> THIS IS NOT THAT SURPRISING TO ME BECAUSE KIND OF THE, IF YOU LOOK AT THE NORMALIZED PRICE OF PURCHASE GAS THE

STICK >> YES. YES.

>> IT IS MUCH CLOSER TO THE RED LINE THEN IT IS TO THE WILD SWINGS . IF YOU DON'T LOCK-IN THE GAS, THE WILD SWINGS UP WILL COST YOU A LOT MORE THAN WHATEVER SMALL SAVINGS YOU WOULD HAVE BY JUST GOING TO THE MARKET AT THE TIME OF PURCHASE

. >> THAT'S RIGHT. THAT'S RIGHT.

BASICALLY, YOU LOOK AT IT, BASICALLY, THE RED LINE IS ABOVE THE BLUE ONE THE LONGER TERM AND THAT IS PROBABLY TRUE.

YOU PAY A BIT OF A PREMIUM BUT I WILL PAY 5% MORE VERSUS HAVING A 40% RATE INCREASE IN A MONTH. WHAT IS YOUR RISK TOLERANCE? WHAT AM I WILLING TO LIVE WITH?

>> NOT ONLY IS IT BETTER FOR THE CUSTOMERS IN THE SHORT-TERM OVER THE WILD PRICE UPSWINGS, IT IS ALSO BETTER FOR THE CUSTOMERS OVER THE LONG HAUL IN THE TOTALITY OF HOW MUCH

THEY PAY. >> THAT'S RIGHT. THAT'S

RIGHT. >> WHAT REASONS WOULD YOU

PRESENT FOR NOT WALKING IN GAS? >> YOU KNOW, SOME PEOPLE WOULD SAY , A FEW COMMUNITIES HAVE ENOUGH RESERVES IN THEIR UTILITY BUDGET OR IN THEIR CITY BUDGET. THEY SAY, WE'VE GOT SO MUCH RESERVES, WE COULD PUT MONEY IN AND OFFSET. I WILL TELL YOU, MOST COMMUNITIES DON'T HAVE THAT KIND OF RESERVES SITTING ASIDE. THERE ARE A COUPLE THAT DO. THAT IS ONE OF THE DISCUSSIONS THAT GOES ON IN THE BOARD ROOM.

THERE ARE A COUPLE WHO HAVE THE RESERVES AND OTHERS WHO SAY, YOU KNOW, WE HAVE A SMALL AMOUNT BUT WITHIN A MONTH OR TWO, THEY WERE GONE. WE COULD NOT PROTECT OUR CUSTOMERS. SO, DO YOU HAVE THE DISCIPLINE TO SET ASIDE MONEY AND NOT LET IT GET USED FOR SOMETHING ELSE OR DO YOU SAY LET'S JUST GO AHEAD AND MANAGE THE GAS PRICE RISK SO WE DON'T HAVE A RISK POOL OF DOLLARS? THAT IS WHAT JAVIER TALKED ABOUT. IF I HAVE TO BEAR THE RISK OVER FOUR YEARS, I NEED FIVE TIMES AS MUCH OR THREE TIMES AS MUCH MONEY IF THIS RISK IS BEING MANAGED BY THE MEMBERS AS COLLECTIVELY I CAN USE A LOT LESS MONEY IN

RESERVES. >> THE WAY I THINK ABOUT THAT, YOU CAN CLARIFY IF THIS IS NOT AN ACCURATE MODEL OF THINKING ABOUT THE SITUATION, AS A HOMEOWNER, I CAN SPEND, YOU

[00:20:01]

DO? >> ONLY THOSE WHO HAVE ENOUGH, 300 GRAND IN THE BANK, CAN AFFORD TO PLAY THAT GAME.

>> RIGHT. >> THAT IS EXACTLY RIGHT.

>> INTERESTING. >> MADAM CHAIR?

>> YES. >> INITIALLY, WHEN I WAS FIRST ON THIS BOARD, I WAS ALWAYS FOR NOT ONE SET MORE FOR THE RATEPAYER TO PAY . WHEN WE HAVE HAD, WHEN WE HAD SEVERAL, THIS IS THE FIRST SPIKE WE HAD. WE HAD A CHAMBER FULL OF PEOPLE AND THEY WERE ANGRY. THEY DID NOT TRUST . IN ADDITION TO COSTING FINANCIALLY, A BIG INCREASE COST CREDIBILITY.

>> RIGHT. >> THAT HAS TAKEN US A LONG TIME TO BUILD BACK AND WE ARE STILL WORKING ON IT. THERE IS STILL THAT , WHEN ARE YOU GOING TO DO THIS TERRIBLE RATE INCREASE AGAIN AND SPRING IT ON US? IN ADDITION TO, THIS KIND OF THING, SAVING MONEY, IT ALSO KEEPS US PREPARED AND KEEPS THE RATEPAYER, AS MUCH AS WE CAN, WE WANT THE

RATEPAYER TO TRUST US. >> RIGHT. CUSTOMERS WANT PREDICTABLE COST OF POWER. THEY WANT A PREDICTABLE ELECTRIC BILL. THEY DON'T WANT SOMETHING, MY GOSH, WHAT DID I DO? YOU DIDN'T DO A THING, THE PRICE DID. ESPECIALLY IN FLORIDA, WE WE YOU SO MUCH POWER AND IT IS SO CRITICAL TO EVERYONE. WE DON'T HAVE THE OPTION TO SAY, I AM NOT TO USE ANY POWER THIS MONTH. IF YOU DON'T HAVE HEAT AND HUMIDITY, YOU MIGHT GET AWAY WITH THAT. SUMMER IS COMING. WE WILL USE

IT. YES, EXACTLY. >> MADAM CHAIR, I WOULD LIKE TO ADD ONE QUICK THING. IF YOU LOOK AT THAT RED LINE, OUR PRICE TO BEAT, TO ESSENTIALLY HAVE THE ZERO PCA AROUND $3.50, CAN YOU GO TO THE PREVIOUS LIFE OR JUST A SECOND?

THAT ONE RIGHT THERE. >> RIGHT HERE?

>> YES. APPROXIMATELY $3.50 IS WHERE WE HAVE TO BE TO HAVE A ZERO PCA FOR CUSTOMERS. THAT RED LINE IS BELOW OR HUGS THAT LINE REALLY WELL. WE CAN MANAGE A ZERO PCA IS WHAT I AM GETTING TOO. THAT IS ESSENTIALLY THE GOAL. HOW CAN WE GET TO ZERO PCA SO THAT OUR COSTS, THEY MAY NOT BE THE LOWEST, BUT THEY WILL CONSISTENTLY BELOW.

>> THEY DON'T HAVE TO BE THE HIGHEST.

>> THEY WILL NOT BE THE HIGHEST. YEAH. THAT'S RIGHT.

>> RIGHT NOW, THE OTHER THING WE DID NOT PUT IN HERE BUT, IF YOU LOOK AT THE PRICES OF ALL THE MUNICIPAL AND COMPARE IT TO THE INVESTOR IN UTILITIES, TWO THIRDS OF THE MUNICIPAL ZAHL HAVE LOWER RATES THAN THE LOWEST IOU RIGHT NOW WE ARE IN A GREAT PLACE. ESSENTIALLY, THIS PROGRAM HAS BEEN PARTIALLY IMPLEMENTED BUT SYSTEMATICALLY. YOU ARE SEEING COST PRESSURES ON THOSE. YOU COULD BE LOCKING IN SOME RATE ADVANTAGE AND JUST YOU KNOW , CONTINUE ON FOR A PERIOD OF TIME. THIS IS A GREAT TIME TO DO THAT BECAUSE YOU ALREADY LOWER COST THAN THOSE

AROUND YOU RIGHT NOW. >> AND WE GO BACK TO THE OTHER SCREEN WITH THE RIGHT THERE. LOOKING AT THIS IN FEBRUARY 2026, THE WORST CASE SCENARIO WE WILL BE IN IS A LITTLE BIT OVER $5.00, RIGHT? THE RED LINE?

>> YES. YEAH. BUT THE BOARD IS NOT GOING TO ALLOW US TO EXECUTE ANYTHING IF IT IS ABOUT, LET'S SAY $3.60, $3.70 IN THE WINTER. THAT MEANS WE WON'T DO ANYTHING. SO THE BOARD WILL ALWAYS COME BACK EVERY QUARTER AND SAY, OKAY, WHERE ARE THINGS AT? SHOULD WE MODIFY THESE NUMBERS AT ALL? ARE WE COMFORTABLE? THEY HAVE CONTROL OF THAT. EVEN THOUGH THE FORWARD CURVE MAY BE THAT HIGH, YOU KNOW WHAT? DON'T DO ANYTHING RIGHT NOW. AS WE GET CLOSER, THOSE PRICES TEND TO COME DOWN AND WE HAVE MORE FLEXIBILITY AT THE POINT.

>> AND THEN WE COULD USE THAT AS A FUND TO MEDICATE THAT TIME FRAME ? THAT IS THE ENTIRE INITIATIVE OR GOAL BEHIND THAT, TO BE ABLE TO WEATHER THE STORM FOR THOSE PERIODS WHERE THE FUTURE MAY NOT BE OPEN FOR EXECUTING PURCHASE OF A STRIP?

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THAT IS A WHEN YOU HAVE TO MAKE. HOW MANY MUST DO I HAVE IN RESERVE? THAT IS WHAT THE TEAM HAS LOOKED AT. I WANT TO BE ABLE TO MANAGE SO MANY MONTHS OF THIS. SO.

>> MADAM CHAIR, I HAVE A COUPLE QUESTIONS. SO, IN LOOKING AT THIS, THERE IS A COUPLE OF THINGS I JUST WANTED TO POINT OUT TO YOU, JUST A GUESSTIMATE. IF THE RATES COME DOWN BELOW THAT $3.65, WE WOULD TRY TO LOCK-IN MORE FOR THAT TIME PERIOD WHEN WE GET INTO THAT RANGE OF TIME, RIGHT?

>> THAT'S RIGHT. >> HOW OFTEN ARE YOU GUYS LOOKING AT THAT RANGE? IS IT STILL DAILY, MONTHLY?

>> WE HAVE SO MANY WHO IS WATCHING THE MARKET EVERY DAY.

THEY ARE NOT GOING OUT AND BUYING GAS EVERY DAY BUT THEY SAY IT IS GETTING CLOSE. YOU KNOW, ONCE WE HIT THE THRESHOLD AND I BRING THE CHART UP TO SAY, THERE IS A BAND WITH AROUND IF THE PRICES BECOME INSIDE THE BANDWIDTH, WE WILL GO TO THE MINIMUM LEVEL, THE LOWER END OF THAT PEAK AREA.

IF PRICES KEEP MOVING IN OUR FAVOR, WE WILL LOCK UP MORE AND MORE. WE WON'T IMMEDIATELY SAY LET'S TAKE ALL WE CAN AND LOCK IT UP RIGHT AWAY. WHEN WE GET TO WHERE IT IS THE THRESHOLD, WE WILL GET TO THE MINIMUM LEVEL BECAUSE THE BOARD EXPECTS WE ARE GETTING PROTECTION, NOT WAIT UNTIL WE THINK IT IS THE LOWEST NUMBER. ONCE WE HIT THAT LEVEL, THEN WE CAN PLAY A LITTLE BIT IN THE MARGIN SO TO SPEAK.

>> RIGHT, OKAY. >> WE HAVE SOMEONE WHO WATCHES THE GAS EVERY DAY. WE ALSO WORK WITH THE GROUP WHO PROVIDES GAS FOR YOU, DOES THE SCHEDULING, WE ARE WORKING WITH THEM IN THE ENERGY AUTHORITY OUT OF JACKSONVILLE THAT GIVES US VERY GOOD INSIGHT AS TO WHAT IS GOING ON, YOU KNOW.

>> UM, WITH THAT, WE HAVE STARTED IMPLEMENTING THIS. HOW DO WE GET THERE? GOING FOR IT, HAVE WE ALREADY BEEN KIND OF PAYING INTO YOUR POOL? FOR LIKE THE COAL, HOW IS THAT

DOES STICK >> WE DON'T BUY OPTIONS. WE BUY OUT RIGHT GAS. IT IS NOT PHYSICAL GAS, IT IS ACTUALLY FINANCIAL. SO WE HAVE TO POST SMALL MARGINS. IF THE MARKET MOVES AGAINST OR FOUR, WE EITHER GET MONEY OR COLLECT MONEY. WE HAVE BEEN DOING IT. THOSE FUNDS HAVE ALREADY BEEN UTILIZED. YOU DON'T PAY FOR THE GAS, ESSENTIALLY UNTIL YOU GET IT. IN THE MONTH WE GET IT, WE GET THAT VOLUME OF GAS IF WE

LOCKED IN THE PRICE FOR IT. >> YOU GUYS, THERE IS A MAINTENANCE FEE OR SOMETHING THAT IS IN THE BLAND THAT TRICKLES DOWN. WILL NOT BE LIKE, GUYS, WE HAVE A BIG BY. I NEED $2 MILLION TO GET THIS DONE.

>> WHEN YOU DO THINGS ON THE FUTURES MARKET, ESSENTIALLY THEY MAKE YOU, IF YOU BOUGHT $3.50 GAS, THAT IS WHAT YOU WILL PAY AT THE END BUT IF THE MARKET GOES TO $6.00, THEY WILL SAY, HOLD IT. YOU GET MONEY BACK. THE VALUE IS $6.00, YOU CAN ONLY TAKE $3.50. THE MARKET GOES TO ONE, THEY WILL SAY YOU NEED TO POST MORE MONEY NOW BECAUSE WE WANT TO MAKE SURE YOU DON'T STEP AWAY. THAT IS CALLED MARGIN IN. WE CAN MANAGE THAT NOW. THE NICE THING IS, WHEN YOU BUY AT RELATIVELY LOW PRICES, THE DOWNSIDE IS IT IS PRETTY LOW. YOU SAW WITH THE UPSIDE IS. THAT IS GOING FROM THREE TO FOUR TO SEVEN, EIGHT , 10. THAT IS WHEN YOU GET INTO A RUNAWAY SITUATION. IF YOU BUY GAS AT $3.50, THAT IS ALL WE ARE GOING TO PAY.

>> THE CHANCES OF IT GOING BACK DOWN TO ONE, THAT IS 2 1/2 DOLLARS DIFFERENCE, NOT 5 1/2.

>> THE LOWEST IN A MONTH IS ABOUT 50. THAT THE SPRING MONTH AFTER A REALLY MILD WINTER. $2.00 IS PRETTY MUCH, $3.50 TO $2.00, THAT IS GREAT. $3.50 TO $10, THAT HURTS.

[E.2. Presentation of the Utility Advisory Committee FY2024 Bi-Annual Report]

>> OKAY. >> THANK YOU SO MUCH.

>> THANK YOU SO VERY MUCH. >> THANK YOU.

>>> MOVING RIGHT ALONG, WE JUST TAKE

>> THANK YOU, MR. JACOB WILLIAMS, FOR JOINING US TODAY.

WE REALLY ENJOYED THE PRESENTATION. THE NEXT ANNUAL -- PRESENTATION IS A BIANNUAL PRESENTATION. THE DIRECTOR OF AFFAIRS FOR SUSTAINABILITY WILL PRESENT.

[00:30:01]

>> OKAY. THANK YOU MR. CISNEROS MADAM CHAIR, MAYOR HUDSON AND MEMBERS OF THE BOARD. THANK YOU, AS ALWAYS, FOR HAVING ME. I'M HERE TO PRESENT THE BIANNUAL REPORT , PRODUCED AND ADOPTED BY THE UTILITY ADVISORY COMMITTEE. AS A QUICK REFRESHER, THE UTILITY ADVISORY COMMITTEE WAS ESTABLISHED IN NOVEMBER 2021 THROUGH RESOLUTION UA 2021 ¿ 10 . THEIR PURPOSE, AS STATED IN THEIR RESOLUTION AND THROUGH DIALOGUE OVER THE PAST COUPLE OF YEARS, IS TO FOSTER OPEN DIALOGUE, DISCUSS UTILITY TOPICS, ADDRESS BUSINESS CONCERNS AND ENGAGE THE COMMUNITY IN A PUBLIC FORUM.

BEFORE I TOO MUCH FURTHER FOUR I WANT TO RECOGNIZE THE COUPLE OF UTILITIES, THREE, I BELIEVE, UTILITY ADVISORY COMMITTEE MEMBERS TODAY, IF YOU COULD WAVE? WE ALSO HAVE LESLIE OLSON FROM THE DISTRICT PLANNING GROUP, WHO WORKS VERY CLOSELY WITH US TO FACILITATE THIS PROGRAM. SHE IS AT A CONFERENCE IN ANOTHER PART OF THE STATE TODAY. WE HAVE BEEN WORKING WITH HER, AS WELL. OKAY. SO THE UTILITY ADVISORY COMMITTEE HAS BEEN DOING A LOT OF WORK, ESPECIALLY THIS YEAR, TO ESTABLISH THE GOVERNANCE OF THE COMMITTEE AND HOW WE WILL FUNCTION AND MOVE FORWARD AND PRODUCE RESULTS. SO WE FOLLOW A FISCAL YEAR REPORTING. EACH OCTOBER , SETTING FORD AN ANNUAL WORK PLAN WITH THE PRIORITY SCHEDULE FOR THE YEAR AND OUR FIRST SIX-MONTH SCHEDULE . IN APRIL, PRODUCING AND PRESENTING OUR BIANNUAL REPORT, WHICH INCLUDES THE NEXT SIX-MONTH SCHEDULE. THE PURPOSE OF THE REPORTING PROCESS AND BEING SET UP ON A FISCAL YEAR REPORTING SCHEDULE IS TO PROVIDE DIRECTION FOR THE UTILITY ADVISORY COMMITTEE TO INSURE THE UAC IS ALIGNED WITH FPUA. STRATEGIC GOALS AND ALL THE HARD WORK THIS GROUP PUT IN LAST YEAR TO SET STRATEGIC GOALS FOR THE UTILITY, ESTABLISHING MEASURABLE GOALS AND ACTIVITIES FOR THE UAC SO THERE IS OBVIOUS PROGRESS AND MEASUREMENT AS WE GO. ALSO ESTABLISHING REPORTING WITH THIS AWARD SO THERE IS ENGAGEMENT AND REPORTING IN BOTH DIRECTIONS AND EMPOWERING THE UAC TO REVISIT AND MODIFIED THIS PROGRAM, AT LEAST EVERY SIX MONTHS SO THAT WE CAN ADOPT, ACCORDING TO THE NEEDS , AS IDENTIFIED BY THE NAYS --

UAC. >>> MEMBERSHIP, CURRENTLY THERE ARE EIGHT ACTIVE MEMBERS. RECRUITMENT IS UNDER WAY FOR ONE AT-LARGE MEMBER AND THERE ARE THREE OPEN APPOINTMENTS.

THE ACTIVE MEMBERS ARE VERY ACTIVE. WE HAVE HAD QUORUM EVERY MONTH FOR AT LEAST THE LAST SEVEN MONTHS. I WILL START THIS PRESENTATION WITH A QUICK REVIEW OF THE LAST SIX MONTHS. EVERYTHING THE UAC HAS DONE AND CLOSE IT OUT WITH THE PLAN FOR THE NEXT SIX MONTHS. ENCLOSED IN YOUR AGENDA PACKET WAS THE ACTUAL BIANNUAL REPORT, WHICH INCLUDES ALL OF THIS INFORMATION IN A STRUCTURE THAT MIRRORS THE FPUA STRATEGIC PLAN. THIS PRESENTATION MIRRORS THAT SLIGHTLY. I DID COLORCODE IT SO PARTICULAR OBJECTIVES WILL MATCH THE COLORS IDENTIFY FOR THE STRATEGIC PLAN, BUT MOSTLY THIS IS A DIFFERENT FORMAT THAN THE ANNUAL REPORT. FOR THE PREVIOUS SIX MONTHS, YOU CAN SEE A FEW PHOTOS HERE. WE DID HAVE A VISITOR, DR.

BENNETT, TO ONE OF OUR RECENT MEETINGS. WE MR. RUTHERFORD WAS PRESENTING ABOUT THE WEATHERIZATION PROGRAM. IN THE BOTTOM RIGHT, THERE IS A SCREENSHOT OF MAIN STREET FORT PIERCE'S COPY WITH A MERE VIDEO. THAT SHOWS ONE OF YOUR MEMBERS ATTENDING. THERE HAVE BEEN SIX MONTHLY MEETINGS THAT WERE HELD. THAT IS IN RED. THE GREEN ONE WAS A SEVENTH BECAUSE WE HAD OUR SEVENTH MEETING SINCE THAT. WE SPENT A LARGE AMOUNT OF TIME THIS YEAR ON DEVELOPING THIS PROCESS, SETTING GOALS, CREATING AN ANNUAL WORK PLAN, REGULAR REPORTING SCHEDULE. FOR THE FIRST THREE MONTHS OF THE LAST SIX MONTHS, THAT IS WHAT WE DID. THERE WERE LENGTHY

[00:35:01]

SHE ALSO WENT TO NATURE FEST. MR. DEPALMA WAS WITH US FOR THE HIGH POINT PRESENTATION AND A NUMBER OF MEMBERS ATTEND OUR BOARD MEETINGS REGULARLY AND EVEN THERE WERE TWO THAT ATTENDED THE RECENT BUDGET WORKSHOP. I THINK THAT WAS THREE OR FOUR HOURS LONG AND THEY STAYED FOR THE WHOLE THING. THEY ALSO COMMITTED TO ENCOURAGING FEEDBACK. THE PUBLIC AFFAIRS TEAM DEVELOPED A CUSTOMER EXPERIENCE SURVEY LAST YEAR. WE HAD HOPED TO BE A LITTLE FURTHER ALONG WITH THIS, BUT IN THE MEANTIME, DISTRIBUTED 10 EACH TO EACH UTILITY ADVISORY COMMITTEE MEMBER. WE HAVE RECEIVED NINE BACK SO FAR. THE REMAINDER ARE DISTRIBUTED WITHIN THE COMMUNITY TO BRING THEM BACK. IT IS JUST A WAY TO HELP PROVIDE FEEDBACK DIRECTLY TO US. THERE WILL BE MORE WITH THE SURVEY EVENTUALLY BUT IN THE MEANTIME, WE ARE SLOWLY CORRECT -- COLLECTING RESPONSES. THE UTILITY MEMBERS ALSO BRING FEEDBACK TO EVERY MEETING THEY ATTEND, EVERY PRESENTATION WE WATCH, THE MEMBERS ARE VERY ACTIVELY IN DIALOGUE WITH WHOEVER IT IS THAT IS PRESENTING TO SAY , THIS IS A VERY INTERESTING TOPIC YOU ARE PRESENTING ON, BUT DO YOU KNOW WHAT THE CUSTOMER SAY? THIS IS WHAT WE ARE THINKING WILL WE SEE X, WHY, Z HAPPEN. HELP US TO UNDERSTAND. IT IS A VERY RICH DIALOGUE. THIS LAST SIX MONTHS, THE UAC HAS SPENT A TREMENDOUS AMOUNT OF TIME ON UTILITY GOVERNANCE FOR THE UAC SPECIFICALLY. UTILITY GOVERNANCE WAS ONE OF THE GOALS FOR FPUA OVERALL. THE UAC IS FOCUSING ON ITS OWN GOVERNANCE.

WE DID DO OUR VERY FIRST ANNUAL WORK PLAN, WHICH WAS ADOPTED ON JANUARY 3 AND PRESENTED HERE JANUARY 16TH. AS WELL AS A

[00:40:02]

IT WILL BE A YOUTH CAREER FAIR AND INFO SESSION WHICH I WILL COME BACK TO. THIS LIST SHOWS THE REMAINDER OF GOALS THAT WE ARE MEASURING AS WE GO . IT MAKES MORE SENSE IN THE EXCEL DOCUMENT WE ARE USING TO ACTUALLY TRACK PROGRESS, BUT ESSENTIALLY, YOU CAN SEE SOME OF THE ITEMS THAT STILL NEED TO

BE CLEANED THE >> COMPLETED OVER THE COMING SIX MONTHS. WE WILL PUT TOGETHER A CUSTOMER FAQ DOCUMENT BASED ON THE MOST COMMON QUESTIONS FPUA MEMBERS RECEIVE. WE WILL GET WITH THE CUSTOMER SERVICE DEPARTMENT TO MAKE SURE IT IS CONFERENCE OF AN USEFUL. UAC MEMBER, OF COURSE, WILL CONTINUE TO ATTEND FPUA OUTREACHES, EXPERIENCE CUSTOMER SURVEYS AND PROVIDING SUPPORT FOR THE RELOCATION AND DEDICATING THE JULY MEETING TO THE WASTEWATER TREATMENT PLANT UPDATES AND UTILITY GOVERNANCE, COMPLETING THOSE GOALS. EACH ONE OF THE ITEMS IN OUR ANNUAL PLAN IS SCHEDULED INTO OUR NEXT SIX MONTHS. THIS IS NOT A LIST OF ITEMS THAT WE ARE NOT ANTICIPATING TO COMPLETE. WE HAVE BUILT IT IN PART OF OUR SCHEDULE TO BE DONE BEFORE THE END OF THE YEAR, FISCAL YEAR.

SO, THE BIG THING, THE BIGGEST THING, I THINK, IS THE UTILITY COMMITTEE HAS DEMONSTRATED AN INTEREST IN LOCAL YOUTH WORKFORCE DEVELOPMENT. THAT IS SOMETHING THE SPORT HAS ALSO BEEN VERY INTERESTED IN BECAUSE WE HAVE RECEIVED FEEDBACK FROM THE PUBLIC AFFAIRS TEAM ABOUT THIS AND IT WAS IN THE STRATEGIC PLAN DEVELOPED LAST YEAR. WE HAVE DISCUSSED A FEW DIFFERENT OPTIONS ON HOW TO TAKE THIS ON AND WHERE WE LANDED LAST MONTH WAS TO DEDICATE THE SEPTEMBER MONTHLY MEETING, THE UTILITY ADVISORY COMMITTEE MEETING TO THE TOPIC OF FPUA APPRENTICESHIP AND INTERNSHIP OPPORTUNITIES , PROGRAMS AND CAREER OPPORTUNITIES. BUT WE DISCUSSED THAT WE WOULD REALLY LIKE INDIVIDUALS, PEOPLE TO ATTEND, YOUTH, TEACHERS, GUIDANCE COUNSELORS AND SO IT HAS EVOLVED A BIT. WHAT WE'RE PLANNING IS TO DO A BIT OF A CAREER FAIR ITSELF. SO THE GOAL HERE IS TO COLLABORATE WITH VARIOUS DEPARTMENTS WITHIN FPUA, INCLUDING, OF COURSE, HR, AND OTHER DEPARTMENTS THAT HAVE LONG-STANDING APPRENTICESHIP PROGRAMS OR ENTRY-LEVEL POSITIONS, PERHAPS TO HAVE TABLING OF SOME SORTS , GUIDANCE COUNSELORS AND YOU CAN COME AND LEARN DIRECTLY MORE ABOUT THESE ENTRY LEVEL OR APPRENTICESHIP PROGRAMS, AS WELL AS OUR EDUCATION PROGRAM AND CAREER DEVELOPMENT OPPORTUNITIES. THIS WILL BE THE HEAVIEST LIFT SO FAR, AS FAR AS PRODUCING AN EVENT WITH THE UTILITY ADVISORY COMMITTEE, BUT I KNOW THE NAYS MEMBERS HAVE EXPRESSED A LOT OF INTEREST. WE TALKED AT LENGTH ABOUT WING, WHICH MONTH WOULD BE THE BEST MONTH AND WE LANDED ON SEPTEMBER. WHAT MAY CHANGE IS WHEN IN SEPTEMBER AND WHAT TIME. WE WILL REMAIN A LITTLE FLEXIBLE WITH THE DATE FOR NOW WHILE WE HAVE INITIAL CONVERSATIONS WITH GUIDANCE COUNSELORS AND TEACHERS TO SEE WHEN FOLKS ARE MOST LIKELY TO ATTEND. THIS WILL BE ALSO COLLABORATIVE IN DEVELOPING THE EVENT ITSELF. I THINK THAT WILL BE A PRETTY EXCITING END TO THE FISCAL YEAR, TO THE FIRST FISCAL YEAR WITH THE ANNUAL REPORT AND WE WILL PREPARE AND START ANEW.

[00:45:18]

>> UM, I HAVE A QUESTION. WILL THE UAC, YOU SAID YOU WOULD BE TALKING WITH GUIDANCE COUNSELORS . WILL THEY REACH OUT TO THE PUBLIC SCHOOLS, AS WELL?

>> YES, MA'AM. THIS WILL BE JOINTLY DEVELOPED WITH THE UTILITY ADVISORY COMMITTEE AND FPUA STAFF. WE WILL COMBINE AND IDENTIFY THE AUDIENCES WE NEED TO REACH OUT TO WHICH WILL DEFINITELY INCLUDEPUBLIC SCHOOLS.

>> MADAM CHAIR? >> YES.

>> I HAVE A FOLLOW-UP QUESTION ALONG THE SAME LINES. SO MANY SCHOOL DISTRICT OFFICES, AS OPPOSED TO THE INDIVIDUAL SCHOOLS, MIGHT BE THE BEST . DR. BENNETT, YOU WOULD KNOW

BETTER THAN I. >> I KNOW EXACTLY WHO SHE IS. I WILL GET YOU THAT INFORMATION.

>> EXCELLENT. >> WONDERFUL. I KNOW TWO OF THE UAC MEMBERS ARE ALSO EITHER VERY ACTIVE OR ALSO WORKING IN

THE SCHOOL BOARD. >> SO YOU'VE GOT CONNECTIONS

THERE. >> THEY HAVE CONNECTIONS, YEAH.

WE WILL ABSOLUTELY BE REACHING OUT. WE WANT THIS TO SUCCEED.

>> THAT IS ACTUALLY HER JOB NOW. SHE USED TO BE THE PRINCIPAL. DOWN SHE IS OVER THAT DEPARTMENT. SHE IS AT THE

DISTRICT OFFICE. >> I DON'T REMEMBER HER AS

PRINCIPAL. >> I HAVE ONE MORE QUESTION, IF

THAT IS OKAY. >> ARE YOU LOOKING FOR A SLOT OR A RATEPAYER ? DO YOU HAVE A SLOTTED POSITION OR ANYTHING?

>> WE HAVE AN APPLICATION THEY CAN FILL OUT. I BELIEVE IT IS WITHIN THE SERVICE TERRITORY. THEY HAVE TO BE A RATEPAYER.

>> THAT IS THE ONLY, I MEAN, THERE ISN'T ANY OTHER, I MEAN, IT IS OBVIOUSLY NOT AN APPOINTEE FROM THE BOARD ?

>> CORRECT. THERE IS THE ONE AT-LARGE POSITION AND THREE

APPOINTEES. >> THREE APPOINTEES, OKAY. SO YOU ARE LOOKING FOR POSSIBLE CANDIDATES , I WOULD ASSUME.

>> YES, MA'AM. >> THE AT-LARGE MEMBER IS VOTED

ON BY THE ADVISORY COMMITTEE. >> IT IS? BY THEM?

>> YES. >> WE RECEIVE THE APPLICATIONS, SET THEM FORWARD TO THE BOARD AND SET IT AS AN AGENDA ITEM FOR THE BOARD TO DISCUSS AND VOTE , OR THE COMMITTEE.

>> MADAM CHAIR, I JUST HAVE A QUICK COMMENT. THANK YOU SO MUCH. THIS IS SO EXCITING TO SEE THE PROGRESS OF THIS GROUP.

I KNOW WE HAD HAD SOME DISCUSSIONS. THIS IS VERY DIFFERENT FROM WHERE WE STARTED. IT IS REALLY VERY, I DON'T KNOW, I DON'T KNOW WHAT THE WORD IS BUT A GET YOU EXCITED ABOUT THE FUTURE OF WHERE THEY ARE GOING. I APPRECIATE ALL OF YOUR WORK AND ALSO THE MEMBERS AND BEING SO COMMITTED TO IT. SO THANK YOU FOR BEING OUT THERE AND ALSO HELPING BR BOYS. IT IS GREAT.

>> EXACTLY. MADAM CHAIR, IS THERE ANYTHING YOU HAVE LEARNED FROM THE UTILITY ADVISORY COMMITTEE ? THAT IS ONE OF THE THINGS I HAD HOPED WE WOULD LEARN FROM, PEOPLE WHO ARE RATEPAYERS WHO ARE INTERESTED IN HELPING US IN ANYWAY. DO YOU SEE THAT BEING A COMPONENT OF THIS COMMITTEE?

>> YES. SO, I MENTIONED EARLIER THAT THE DIALOGUE WAS VERY RICH DURING THESE MEETINGS. IT IS HARD FOR ME TO SUMMARIZE WHAT I HAVE LEARNED BUT I KNOW THAT EVERY PRESENTATION WE HAVE HAD, WE HAVE GUEST PRESENTERS THROUGHOUT THE COMPANY. THEY COME AND THEY PRESENT. THE DIALOGUE, IT IS ALMOST THAT WE ARE LEARNING, BASED ON THE QUESTIONS THAT ARE ASKED OF US WHILE PRESENTING. I KNOW IT IS PROVIDING US WITH AN OPPORTUNITY TO THANK JUST A LITTLE BIT ASKED HER ABOUT, WELL, HOW ARE WE COMMUNICATING IT, WHAT METHOD, WHAT WORDS, WHAT DOES THIS MEAN? WHAT DOES THIS MEAN? IN MY EXPERIENCE, SO FAR, IT IS TEACHING US TO THINK TWO AND THREE TIMES ABOUT EXACTLY THAT, HOW ARE WE COMMUNICATING IT IN WORDS AND FORM AND WHERE? I KNOW WE WILL COME INTO SOMETHING MORE FOR US

[00:50:01]

VERY VALUABLE. >> I CAN IMAGINE.

>> THANK YOU SO MUCH. >> THANK YOU. THANK YOU ON

[E.3. Financial Operating Results for the Quarter ending, December 31, 2023.]

BEHALF OF ALL THE MEMBERS. >> NEXT , MOVING TO THE NEXT.

>> YES, MADAM CHAIR, THANK YOU. GREAT PRESENTATION. THE LAST ITEM IS ALWAYS AN EXCITING ITEM BECAUSE IT'S THE FINANCIAL OPERATING RESULTS. IT IS FOR THE QUARTER ENDING DECEMBER 31, 2023. MICHELE HARRIS, FINANCE MANAGER, WILL MAKE THIS

EXCITING PRESENTATION FOR US. >> NO PRESSURE.

>> WE HAVE BEEN IN BUDGET MEETINGS FOR THE LAST COUPLE DAYS. WE HAVE QUITE A BIT OF FUN.

>> THANK YOU. VERY EXCITING. >> THANK YOU FOR THE INTRODUCTION, MR. CISNEROS. MADAM CHAIR, MAYOR, BOARD MEMBERS, I WILL BE PRESENTING. THE BOARD PACKET CONTAINS MANY FINANCIAL STATEMENTS. IT IS A QUARTERLY PACKET SO YOU HAVE MORE FINANCIAL REPORTS AND THE MONTHLY. I'M JUST HOPING TO GO OVER SOME OF THE HIGHLIGHTS FOR YOU. THE FIRST OF OUR COMPARATIVE DATA COMPARES THE FIRST QUARTER FISCAL YEAR 2024 AGAINST THE FIRST QUARTER OF 2023. OUR OPERATING REVENUES DECREASED 3.3 MILLION BUT THAT DECLINE IN OPERATING REVENUE WAS PRIMARILY DUE TO THE REDUCTION IN THE PCA BILL TO THE ELECTRIC CUSTOMERS. IF YOU RECALL, THE PAC DURING FIRST QUARTER FISCAL YEAR 2023, THE PAC IN NOVEMBER WAS $19 IN DECEMBER WAS $27. COMPARING TO THIS QUARTER, THE ENTIRE FIRST QUARTER, THE PAC WAS AT ZERO. OBVIOUSLY, THE PAC BILL TO CUSTOMERS WILL BE REDUCED A LOT. OPERATING EXPENSES ALSO DECREASED 3.9 MILLION. AGAIN, THAT WAS BECAUSE OF THE DECREASE COST IN PURCHASE PRY BAR. THE DECREASING COOPERATING REVENUES AND THE DECREASE IN OPERATING EXPENSES RESULT IN AN INCREASE IN OPERATING INCOME OF $604,000 OVER THE SAME QUARTER LAST YEAR. ARE CAPITAL CONTRIBUTIONS HAVE INCREASED ALMOST $1 MILLION. THE TOTAL ACTUAL REVENUES VERSUS THE BUDGETED AMOUNT ARE BELOW PROJECTIONS BY ABOUT 6.7 MILLION, ABOUT 17%. THE ACTUAL EXPENSES VERSUS BUDGET, I MEAN, ACTUAL EXPENSES VERSUS BUDGET ARE BELOW PROJECTIONS BY 3.8 MILLION OR 12%. THE CHANGE IN THAT POSITION, WHICH IS REVENUES LESS EXPENSES FOR THE FIRST QUARTER IN TOTAL IS 6.3 MILLION. NOW I WILL JUST TAKE A DEEPER DIVE INTO EACH SYSTEM INDEPENDENTLY. THE ELECTRIC REVENUES , ACTUAL REVENUES VERSUS PROJECTIONS WERE BELOW BY 2.3 MILLION BUT EXPENSES WERE ALSO BELOW 2.3 MILLION. IRONICALLY ENOUGH, THE CHANGE IN THE POSITION, WHICH IS THE REVENUES LESS EXPENSE, IS ALSO 2.3 MILLION. THE WATER ACTUAL REVENUES VERSUS BUDGET ARE BELOW PROJECTIONS BY ABOUT $500,000 AND THE EXPENSES ARE LITTLE BIT BELOW PROJECTIONS, AS WELL, ABOUT 670,000, ABOUT 12%. THE CHANGE IN THAT POSITION FOR THE WATER SYSTEM IS ABOUT 2.4 MILLION. THE WASTEWATER ACTUAL REVENUES VERSUS BUDGET ARE PROJECTIONS BELOW ABOUT $3.8 MILLION. THAT IS WHOLLY DUE TO THE PROCESS OF REIMBURSEMENT AND TIMING OF REVENUE RECOGNITION FOR THE RESILIENT FLORIDA 15 MILLION-DOLLAR GRANT AND THE SHADED BOX UP HERE SHOWS EXACTLY WHERE WE WOULD BE IF THE REVENUE HAVE BEEN RECOGNIZED. THAT GRANT IS MOVING. IT IS MOVING. WE ARE SUBMITTING THE DATA BUT IT IS ALL THE TIMING IN THE PROCESS OF THE GRANT REIMBURSEMENT. ACTUAL EXPENSES VERSUS BUDGET OR JUST SLIGHTLY BELOW BUDGET BY ABOUT $400,000. THE REPORTED CHANGE IN THAT POSITION FOR THE WASTEWATER SYSTEM IS ABOUT $1.4 MILLION. GAS ACTUAL REVENUES ARE BELOW PROJECTIONS BY JUST 1%. ACTUAL EXPENSES ARE BELOW PROJECTIONS BY JUST $200,000.

THE CHANGE IN NET POSITION IS $210,000. FAU A NET ACTUAL

[00:55:01]

MAY HAVE. >> THANK YOU SO MUCH. THANK

YOU FOR YOUR TIME. >> ALL RIGHT. THAT CONCLUDES

[F. DIRECTOR COMMENTS]

>> THANK YOU, MADAM CHAIR. THANK YOU, MICHELE, GREAT PRESENTATION. JUST A COUPLE OF COMMENTS. WE ARE TENTATIVELY SCHEDULED FOR THE CITY BUDGET WORKSHOP IN MAY , MAY 21ST. IT WILL BE HELD AT THE INTERSTATE COLORS FACILITY. WE'RE STILL WORKING ON SECURING THE ROOM BECAUSE THEY HAD SOME CHANGES IN THEIR STRUCTURE OF HOW THE ROOMS THAT ARE AVAILABLE SO AS WE FINALIZE THE AGENDA, I WILL COORDINATE WITH MR. MIMS, JUST TO MAKE SURE WE CAN CONFIRM A FINAL AGENDA BECAUSE IT A WORKSHOP JOINTLY. AS YOU CAN REMEMBER, THE JOINT WORKSHOP IS ONE OF THE RECOMMENDATIONS FROM THE 2017 REVIEW COMMITTEE. SO WE HAVE A LOT OF EXCITING PROJECTS UNDER WAY. SUMMER IN THE QUEUE. THE NEXT FIVE-YEAR CAPITAL BUDGET AND OWEN PROJECT LIST WILL BE EXCITING. WE WILL CONTINUE TO HELP GROW THE CITY AND BE THE BEST UTILITY IN THE STATE. LAST NIGHT , BARBARA AND I PRESENTED THE FINAL BUDGET AMENDMENT AND THE ANNUAL COMPREHENSIVE REPORT TO THE CITY COMMISSION. IT WAS APPROVED. THANK YOU TO THE CITY COMMISSION. MICHELE PRESENTED IN HER SLIDE THE DAYS OF CASH AND THE ATTEMPT AT OUR DART PROGRAM. NEXT MONTH SHE WILL PRESENT AN OVERVIEW OF THE PROGRAM AND THE COST ADJUSTMENT TO SEE HOW THAT IMPACTS THE DAYS OF CASH. WE WILL MOST LIKELY BE PRESENTING THAT AT THE NEXT BOARD MEETING. THE NEXT FEW DAYS, I WILL BE ATTENDING THE FM PA, SEVERAL FMP A BOARD MEETINGS, POWER GENERATION MEETINGS, POLICY LIAISON MEDER MEETINGS, QUITE A BIT HAPPENING TOMORROW. THURSDAY, OBVIOUSLY WE HAVE A BIG BOAT COMING UP FOR WHAT THAT RATE STABILIZATION PROGRAM LOOKS LIKE FOR PURCHASE OF NATURAL GAS. WE WILL ACTUALLY TAKE A TOUR SEVERAL OF THE NEW GAS GENERATION PLANTS. THAT WILL BE EXCITING TO SEE ALL THAT HAPPENING. LAST, BUT CERTAINLY NOT LEAST, THANK YOU FOR STEPPING IN TODAY. THAT IS ALL I HAVE FOR THE BOARD TODAY.

>> ONE QUESTION. ON THE 21ST, IS IT STILL AT 1:00?

>> YES, MA'AM. AS SOON AS WE FINALIZE THE AGENDA, WE WILL MAKE SURE WE GET THE TIME AND THE LOCATION CONFIRMED. WE ARE LOOKING AT 1:00 OR EARLY AFTERNOON.

>> ARE YOU SERVING LUNCH? >> YES, WE WILL MAKE SURE TO

BRING FOOD. >> THAT IS IMPORTANT.

[G. BOARD MEMBER COMMENTS]

>> THANK YOU SO MUCH. THANK YOU, MR. CISNEROS. ARE THERE ANY COMMENTS FROM THE BOARD? NO. I HAVE ONE COMMENT I WOULD LIKE TO SHARE. KUDOS TO FPUA , THEY CAME OUT TO MY CHURCH,

[01:00:02]

THIS IS THE PAST US THE >> FASTEST INTERNET SERVICE WE HAVE EVER HAD. THEY ARE SO EXCITED ABOUT IT. THEY JUST ONE TO SEND A THANK YOU TO FPUA. I'M EXCITED ABOUT THAT. KUDOS

TO FPUA NET DEPARTMENT. >> GREAT.

>> OKAY. ARE THERE ANY COMMENTS FROM ANYONE? OKAY. SEEING THERE IS NO FURTHER COMMENTS.

* This transcript was compiled from uncorrected Closed Captioning.