Sep 17, 2024 Fort Pierce Utilities Authority

[MEETING TO ORDER]

[00:00:17]

>>> PLEASE JOIN US IN STANDING FOR THE IMPLICATION BY JASON IN THE PLEDGE OF ALLEGIANCE, PLEASE.

>> AT AFTERNOON. LORD, WE THANK YOU FOR YOUR GRACE AND MERCY FOR EVERY MORNING. WE ACKNOWLEDGE YOUR GOODNESS IN YOUR HAND DOWN -- WE ASK FOR YOUR COMMUNITY KNOW MADAM CLERK, PLEASE CALL THE ROLL.

[A. SET THE AGENDA]

>> WE WOULD LIKE TO WILL COME TO THE MEETING ACTING CITY MANAGER. THE NEXT ITEM IS SETTING THE AGENDA. DO I HAVE A

MOTION? >> MOVE APPROVAL.

>> SECOND. >> WE HAVE A MOTION AND A SECOND. MADAM CLERK, LEASE CALL THE ROLL.

>> PASSES. THE NEXT ITEM ON THE AGENDA IS PUBLIC COMMENTS. IF THERE IS ANY MEMBER OF THE PUBLIC THAT WOULD LIKE TO COME FORWARD AND SPEAK, YOU MAI DO SO NOW. WHEN YOU COME, PLEASE STATE YOUR NAME AND ADDRESS FOR THE RECORD . YOU WILL HAVE THREE MINUTES TO ADDRESS THE BOARD. THANK YOU. SEEING NO ONE

[C. APPROVAL OF MINUTES]

2024. TWO I HAVE A MOTION? >> MOVE APPROVAL OF THE

MINUTES. >> SECOND.

>> WE HAVE A MOTION AND A SECOND. MADAM CLERK, WILL YOU

PLEASE CALL THE ROLL? >>

[D. CONSENT AGENDA]

>> THANK YOU, THE MOTION PASSES. THE NEXT ITEM IS THE CONSENT AGENDA. ARE THERE ANY ITEMS THE BOARD WOULD LIKE TO GO FOR DISCUSSION ON THE CONSENT AGENDA , OR DO I HAVE A

MOTION? >> I MOVE APPROVAL OF THE

CONSENT AGENDA. >> I WILL SECOND.

>> WE HAVE A MOTION AND A SECOND. MADAM CLERK, WILL YOU

PLEASE CALL THE ROLL? >>

[E.1. Recognition of Excellence]

>> THANK YOU, THE MOTION PASSES.

>> WE WILL CONVERT TO THE REGULAR AGENDA VIA OUR DIRECTOR

. >> THANK YOU, MADAM CHAIR. GOOD AFTERNOON, BOARD MEMBERS. A RECOGNITION OF EXCELLENCE.

>> THANK YOU. WE RECEIVED AN EMAIL OF THE BOYS AND GIRLS CLUB OF THE COUNTY. I WANTED TO SHARE THE GREAT TIME WE HAD AT THE YOUTH CAREER EVENT. THE TEAMS WERE ENGAGED AND HAD A LOT OF QUESTIONS OF THE STAFF, PARTICULARLY SHOWING INTEREST IN THE DRONES AND OTHER EQUIPMENT THEY HAD ON HAND. IT WAS A FANTASTIC LEARNING EXPERIENCE FOR EVERYONE

INVOLVED. >> THANK YOU. I WENT ALSO. IT WAS FABULOUS. AWESOME EXPERIENCE THAT I ENCOUNTERED ,

[E.2. Status Report on Electric Power Cost Adjustment (PCA) July 2024]

>> YES MA'AM. THE NEXT ITEM IS AN UPDATE ON THE POWER COST

ADJUSTMENT. >> THANK YOU . GOOD AFTERNOON,

[00:05:04]

POWER COST ADJUSTMENT IS THE DARKER BLUE LINE THAT GOES ACROSS THE MIDDLE . THE BARS ON THIS CHART ARE THE LEVELS OF RATE STABILIZATION FUNDED BY MONTH, WITH THE BLUE BARS BEING ACTUALS THROUGH JULY 2024. THE ORANGE BARS BEING PROJECTION BASED ON CURRENT FORECASTED NUMBERS THROUGH JULY OF 2025.

LOOKING BACK, WHEN FMPA BEGAN, PRE-PURCHASING GAS, LOOKING BACK TO MAI OF 2023, WITH PCA OF $34, THE LINE, AND 75% CERTAINTY OF OUR FUEL COSTS , THE RATE STABILIZATION WAS INCREASED OVER THE NEXT FEW MONTHS THROUGH THE SUMMER MONTHS, REACHING JUNE, JULY, AND AUGUST WHILE THE PCA WAS BEING LOWERED BY $25. THOSE PRE-PURCHASING HAD GIVEN US , THE SUMMER OF 2023. FMPA ESTIMATE OF THE COST OF PURCHASES FOR THE UPCOMING 12 MONTH REMAINS LEVEL. SHOWING 3.6% INCREASE FROM JUNE . THE UPCOMING AVERAGE MONTHLY COST, AVERAGE COST PER MONTH OF PROJECTIONS OF $80.34. THE COSTS ARE UP SLIGHTLY ABOUT THREE DOLLARS FROM THE PREVIOUS MONTH. THIS CHART IS OUR LONG-TERM PROJECTION. THE ORANGE, RED LINES, ARE WHAT I PRESENTED LAST MONTH. THE JUNE PROJECTIONS. THEY LAY ON TOP OF EACH OTHER, DEPICT WHAT WE ARE FORECASTING THE DECREASE IN DECEMBER, AND ANOTHER DOLLAR 50 IN JANUARY. THE JUNE FORECAST. WITH THE JULY FORECAST AND THE COST BEING SLIGHTLY UP, THE CURVE HAS DROPPED DOWN. GIVING ALL THE SAME CONSIDERATIONS FOR THE DOLLAR 50 PCA CHANGE IN DECEMBER AND AGAIN IN JANUARY. YOU CAN SEE THE JULY PROJECTIONS BRING US DOWN CLOSER, STILL AT THE END OF SEPTEMBER , THIS FISCAL YEAR WE ARE STILL APPEAR. THE TREND WILL BE BASED ON THE CURRENT FORECAST TO DIP US DOWN A LITTLE FURTHER. I WANT TO SHOW YOU WHAT ONE MONTH CHANGE COULD

[00:10:04]

SOMETHING SUBJECT TO CHANGE, BASED ON THE FORECAST AS THEY ARE UPDATED. THIS ITEM , AT THIS TIME IS BEING PRESENTED FOR YOUR INFORMATION. NO ACTION IS BEING REQUESTED AT THIS TIME. IF YOU HAVE ANY QUESTIONS, I WILL BE HAPPY TO

TRY AND ANSWER THEM. >> MADAM CHAIR, I WOULD LIKE TO ADD THAT THIS WINDOW IS ABOUT A 14 MONTH WINDOW. 12 TO 14 MONTH WINDOW. WE ARE REALLY TRYING TO PLAN AHEAD SO WE DON'T HAVE TO NECESSARILY MAKE A DECISION TODAY, AND WE CAN SEE WHAT THE RESULTS ARE FROM THE AUGUST BILL, WHICH I THINK WE JUST GOT LAST MONTH -- LAST WEEK. THOSE COSTS HAVE COME IN A LITTLE BIT LOWER. IT CAN VARY MONTH TO MONTH. MY OPINION, THE BEST APPROACH WE CAN TAKE LOOKING AT A LONGER WINDOW. I THINK THIS WILL CHANGE SLIGHTLY BECAUSE FMPA HAS BEEN ABLE TO LOT MORE GAS PRICES. MORE STRIPS OF GAS FOR THE SUMMER OF NEXT YEAR.

THE FOLLOWING -- IT WILL LOOK DIFFERENT NEXT MONTH, FOR SURE.

>> PCA WILL BE ZERO, STILL? >> THE PCA WILL BE ZERO. THE IDEA IS TO GET 20 IN DECEMBER OR JANUARY.

>> PCA IS -3 DOLLARS RIGHT NOW.

>> MADAM CHAIR, JUST TO FURTHER CLARIFY WHAT I THINK HE IS SAYING, THE REASON YOU ARE SHOWING THIS PURPLE NMS ORANGE LINE IS TO HIGHLIGHT TO US ON THE BOARD AND THE PUBLIC THAT EVEN IF WE DON'T MAKE DIFFERENT DECISIONS, THE CHANGES IN THE PROJECTIONS CAN HAVE A PRETTY BIG IMPACT . FOR NOVEMBER, THE DIFFERENCE IN THE RATE STABILIZATION FUND WOULD BE ALMOST $1 MILLION. A RELATIVELY SMALL CHANGE IN THE

PROJECTIONS, RIGHT? >> THE SWINGS HAPPEN. THAT'S

WHAT I WAS TRYING TO -- >> HIGHLIGHT TO US. I THINK THAT'S WHAT HE WAS SAYING. NEXT MONTH IT WILL LOOK

DIFFERENT. >> YOU WILL NOTICE IT STARTS TO DIP DOWN. THE START -- DECREASE DURING THE WINTER MONTHS. THE CONSUMPTION GOES DOWN THE RICES OF NATURAL GAS ARE A LITTLE MORE VOLATILE BECAUSE OF THE NORTHWEST MARKET.

>> MADAM CHAIR, WE ARE GOING TO BE DOING THIS MONTHLY. WE ARE GOING TO BE LEARNING. WE ARE GOING TO BE LEARNING AS WE GO HOW THE SWINGS AND WHAT EFFECT --

>> EVERY MONTH. YEAH. >> EXCUSE ME, I USED TO -- MEANT TO SAY NORTHEAST MARKET.

>> WHERE IT'S COLD? >> WHERE IT'S REALLY COLD.

[E.3. June 2024 Quarterly Financial Operating Results]

>> MOVING TO OUR NEXT ITEM ON THE AGENDA.

>> YES MA'AM, THE QUARTERLY FINANCIAL OPERATING RESULTS.

FINANCE MANAGER WILL PRESENT THIS ITEM.

>> THANK YOU , MADAM CHAIR, BOARD MEMBERS. I'M HERE TO PRESENT THE OPERATING RESULTS THROUGH THE THIRD QUARTER OF FISCAL YEAR 2024. THE FIRST OF OUR COMPARATIVE DATA COMPARES THE FIRST NINE MONTHS OF FISCAL YEAR 2024 OF THE FIRST NINE MONTHS OF FISCAL YEAR 23. OUR OPERATING REVENUES HAVE DECREASED. IT'S PRIMARILY DUE TO TO THE PCA BILL TO ELECTRIC CUSTOMERS. AS WE SAID, THE PCA DURING THIS TIME RANGE FROM $19.39, FOR THE FIRST NINE MONTHS IT WAS AT ZERO . THE PCA DID NOT GO DOWN TO -3 DOLLARS UNTIL JULY 1ST. IT IS STILL AT ZERO WITH THIS DATA. OPERATING EXPENSES DECREASED 5.9 MILLION.

AGAIN THAT IS PRIMARILY DUE TO THE DECREASE OF PURCHASES FOR RESALE. OUR OPERATING INCOME INCREASED 1.5 MILLION. OUR

[00:15:01]

THE BUDGET IS GOING TO BE THE GRAY ON THE LEFT-HAND SIDE. ON THE RIGHT THE ACTUAL. ACTUAL REVENUES VERSUS BUDGET ARE BELOW PROJECTIONS BY ABOUT $10 MILLION. ON THE OTHER HAND OUR EXPENSES ARE BELOW PROJECTIONS BY $10 MILLION. OUR CHANGE OF NOT POSITION AS A WHOLE IS $20 MILLION AND EXACTLY ON TARGET WHERE WE EXPECT OUR BUDGET. THAT $20 MILLION GOES RIGHT BACK INTO OUR CAPITOL SPENDING, INFRASTRUCTURE AND BUILDING UP THE CITY. THE FOLLOWING SLIDES ARE GOING TO SHOW EAST OF THE SYSTEMS INDIVIDUALLY . THE ELECTRIC REVENUES ARE BELOW PROJECTIONS BY ABOUT 7 1/2 MILLION. EXPENSES ARE BELOW PROJECTIONS BY 7 MILLION. ALL WITH THE PCA BUILD AND PURCHASE POWER. THE CHANGE IN THAT POSITION FOR THE -- POSITIVE 1.9 MILLION, AND AS FAR AS NUMBER OF MEGAWATT HOURS SOLD WHEN COMPARED TO THE NINE MONTHS THIS YEAR TO LAST YEAR IT IS PRETTY FLAT. THE WATER REVENUES VERSUS BUDGET ARE SLIGHTLY BELOW PROJECTIONS BY ABOUT 212,000 . EXPENSES ARE BELOW PROJECTIONS BY ABOUT 1.2 MILLION. THE CHANGE IN POSITION TO WATER SYSTEM IS A POSITIVE $6 MILLION. AS FAR AS GALLONS SOLD, COMPARED TO THE SAME TIME PERIOD LAST YEAR, WE SOLD ABOUT AN INCREASE OF 1%. THE WASTEWATER REVENUES ARE BELOW PROJECTIONS BY $2.2 MILLION . THE EXPENSES ARE BELOW PROJECTIONS BY ABOUT 700,000. ALL RESULTING IN A NET POSITION FOR THE WASTEWATER SYSTEM OF $11.8 MILLION . GALLONS BUILD COMPARED TO LAST YEAR HAS INCREASED BY 3.2%. NATURAL GAS REVENUES ARE ABOVE PROJECTIONS BY 131,000. EXPENSES ARE BELOW PROJECTIONS BY HUNDRED AND 85,000. CHANGE IN THE POSITION AS A POSITIVE 372,000. CCF SOLD COMPARED TO THE LAST NINE MONTHS HAS INCREASED A .3%. NET ACTUAL REVENUES ARE SLIGHTLY HOWEVER, EXPENSES ARE ALSO BELOW . ABOUT 125,000. CHANGE IN THE POSITION IS A LITTLE OVER $100,000 FOR THE YEAR. THE DEBT SERVICE COVERAGE RATIO, THE RATIO OF THE 12 MONTH AVERAGE AVAILABLE INCOME TO THE CURRENT DEBT SERVICE. FOR THE 12 MONTHS ENDING JUNE 2024. DEBT SERVICE RADIO -- RATIO WAS -- JUST AS A REMINDER, AS THE RED BAR INDICATES, OUR BOND COVENANTS REQUIRES US TO BE A 1.25. WE ARE WELL ABOVE THAT. A LITTLE RECAP OF OUR GOALS. WE HAVE ESTABLISHED 90 DAYS WE WANT -- A TARGET OF 90 DAYS OPERATING CASH. THAT'S EXCLUSIVE -- EXCLUDING THE RATE STABILIZATION FUNDS. MINIMUM GOAL OF 10 MILLION WAS THE RATE STABILIZATION FUND. WE ALSO ADDED A TIMELINE TO ADD FUNDS TO THE EMERGENCY FUND. WE WILL GO OVER THE STATUS AND WHERE WE ARE ON THOSE. THIS SLIDE SHOWS THE DAYS OF OPERATING CASH . OUR CURRENT UNRESTRICTED EQUITY AND CASH INVESTMENTS TOTALS 22 MILLION. ABOUT 77 DAYS OF OPERATING CASH. TYPICALLY EXPECT A LITTLE DIP IN OPERATING CASH WHEN WE -- CITY DISTRIBUTION THIS YEAR WAS ISSUED MORE TOWARDS THE END OF MAI. THAT DIP IS WHAT HAPPENED IN JUNE BECAUSE OF THAT. THE BLACK LINE INDICATES OUR GOAL OF 90 DAYS. THE RED LINE INDICATES WHERE WE NEED TO BE UP ON COVENANTS. WE ARE HEALTHY RIGHT IN THE MIDDLE. THIS SLIDE SHOWS THE BALANCE OF RATE STABILIZATION FUNDS FROM THE BEGINNING OF FISCAL YEAR TO CURRENT. AS STATED EARLIER OUR TARGET IS AT $10 MILLION. AT THE END OF JUNE WE ARE RIGHT AT 10 MILLION WITH 9.8 BEING ELECTRIC. AND 200,000 IN RATE STABILIZATION FUND. WE HAVE NOT REALLY STARTED PUTTING AWAY THE EMERGENCY FUNDS IN FISCAL YEAR 2024. OUR TARGET WAS TO BEGIN THAT IN 2025. JUST RESERVING 1/12 OF THAT EVERY MONTH. THIS IS A REMINDER OF OUR GOAL. FISCAL YEAR SEVEN -- 2017 TO

[00:20:02]

YOU RECEIVED. >> MADAM CHAIR, I APPRECIATE -- I LIKE THE WAY -- I GUESS YOU ARE GOING TO DO THAT

PERIODICALLY. >> EVERY QUARTER.

>> THAT'S GOOD. >> WE APPRECIATE THAT.

>> THANK YOU VERY MUCH. >> MOVING RIGHT ALONG.

[E.4. FMIT INSURANCE POLICY RENEWAL FY 2025]

>> YES, MA'AM. A REQUEST TO ACCEPT THE FLORIDA LEAGUE CITY -- AUTOMOBILE WORKMEN'S COMP. FOR THE UPCOMING BUDGET YEAR.

RISK MANAGER WILL PRESENT THIS ITEM.

>> THANK YOU. GOOD AFTERNOON, MADAM CHAIR, MEMBERS OF THE BOARD. I'M HERE TO REQUEST YOU ACCEPT THE RENEWAL QUOTE AND PROPOSAL FROM THE FLORIDA LEAGUE OF CITIES ON BEHALF OF THE FLORIDA MUNICIPAL INSURANCE TRUST FOR THE 2025 POLICY PACKAGE THAT INCLUDES PROPERTY, GENERAL LIABILITY, CYBER LIABILITY, AUTOMOBILE LIBIDO -- LIABILITY AND WORKER'S COMPENSATION COVERAGE FOR OCTOBER 1ST 2044, TO SEPTEMBER 30TH, 2025, AND APPROVE FUNDING FOR THE $1,580,567 ANNUAL PREMIUM. BASED ON THE PROPOSAL, THE TOTAL COST OF THE INSURANCE PACKAGE INCREASED BY $70,631, WHICH REPRESENTS AN INCREASE OF 4.7% OVER THE COST OF FISCAL YEAR 2024. AND THEY RELATED TO THE GENERAL LIABILITY AUTO LIABILITY AND PHYSICAL DAMAGE POLICIES. THE PREMIUM INCREASE RELATED TO DIRECTLY -- DIRECTLY TO OUR CLAIMS EXPERIENCE. NEW VEHICLES ADDED TO THE AUTO POLICIES IN THE FIRST FULL YEAR OF OWNERSHIP, WHICH IS ALSO ADDED TO THE PREMIUM INCREASES FOR LIABILIY AND DAMAGES. I AM HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.

>> I SEE THERE'S A RECOMMENDATION ON MEMORANDUM , EVEN THOUGH OUR PREMIUMS COULD BE LOWERED IF WE HAVE A HIGH DEDUCTIBLE, THERE IS A REALISTIC FEAR THAT IF WE AVERAGE A STORM, THOSE DEDUCTIBLES WE WOULDN'T BE

ABLE TO MEET. >> THE EASY ANSWER WOULD PROBABLY BE YES . IT WILL ALL DEPEND ON DAYS OF CASH. WE ARE COASTAL CITY. WE ARE RUNNING NOT RISK CONSTANTLY. IDEALLY WE WOULD WANT TO MAKE THOSE DEDUCTIBLES AS LOW AS POSSIBLE SO WE CAN MAINTAIN -- WE ARE USING CASH FOR OPERATING UTILITY AFTER A STORM. WE ARE USING ALL OF THOSE FUNDS FOR ESSENTIAL SERVICES. HAVING TO TAKE OUT OF THOSE CASH TO FIX SOMETHING, BUT PRETTY IMPORTANT, WOULD BE --

>> THIS INSURANCE , ARE WE OBLIGATED TO USE THEM ? CAN WE

GO OUT TO BID? >> WE ARE OBLIGATED TO USE THEM. WE CAN GO OUT TO BID. BUT WHAT WE FOUND -- I'M TRYING TO REGURGITATE A CONVERSATION FROM LAST YEAR. WE FOUND THEM TO BE THE LOWEST COST. WE COMPARED THEM TO OTHERS. THEY WERE SIGNIFICANTLY AWARE. I'M LOOKING UP ARBOR OVER HERE TO SEE IF SHE CAN SHAKE HER HEAD OR NOT. OKAY. SIGNIFICANTLY

HIGHER, IS WHAT I MEANT, YES. >> THIS IS THE BEST WE ARE

GOING TO DO. >> COME ON UP, BARBARA. I AM

SORRY, CARLENE. >> NO, WE CAN GO UP TO SEE WHETHER INSURANCE -- ARE OUT THERE. WE'VE BEEN FOR AS LONG AS I CAN REMEMBER . 17, 18 YEARS. AT LAST COUNT, WITH OUR INSURANCE CONSULTANT CYBER, WHEN I SPOKE WITH THEM LAST YEAR, WE HAD THE HUGE INCREASE ON OUR PROPERTY INSURANCE BECAUSE OF ALL OF OUR PROPERTIES WERE REASSESSED. WE HAD A 700,000 -- 800 -- 100,000 INCREASE POSTURE. EVERYONE WAS SEEING THAT. IF M.I.T. WAS ON PAR WITH THE OTHER INSURANCE COMPANIES. WE COULD GO FOR AN RFP TO SEE WHAT ELSE IS OUT

THERE. >> EVALUATE THE DEDUCTIBLES,

MAYBE MAKE THEM HIGHER. >> I DON'T THINK IT NEEDS TO BE DONE NOW. IT SOUNDS TO ME YOU ARE REPRESENTING -- THIS IS GOING TO BE THE BEST DEAL WE GET. I KNOW STATEWIDE , INSURANCE HAS GONE BONKERS. 4% INCREASE SEEMS PRETTY SMALL COMPARED TO WHAT I HAVE SEEN FOR OTHERS. LET'S NOT BE MARRIED TO JUST ONE. EVERY SO OFTEN WE GO OUT TO MARKET AND

RE-EVALUATE. >> YES, SIR.

>> PERHAPS, NEXT YEAR, GO ON RE-EVALUATE JUST TO MAKE SURE.

[00:25:04]

>> COMPLETELY AGREE. WE ARE ON THE SAME PAGE, FOR SURE. I KNOW THE CITY OF FORT PIERCE HAS SIGNIFICANT INCREASE LAST YEAR.

NOT ONLY -- OTHER AGENCIES EXPERIENCE THAT SAME TYPE OF

INCREASE. >> THE CITY WITH IF M.I.T. I SIT ON THE BOARD. THERE'S ONLY TWO OTHER INSURANCE CARRIERS THAT DO THE MAJOR BUSINESS FOR LOCAL GOVERNMENTS. IF M.I.T.

STAYS PRETTY COMPETITIVE. YOU ALSO HAVE TO EVALUATE THE SERVICE YOU GET IN TERMS OF DEFENSE , AND TAKING CARE OF CLAIMS. IF M.I.T. -- FMIT IS AGGRESSIVE AND SUPPORTIVE . IT DOESN'T LOOK TO GET OUT OF A CLAIM, IT TRIES TO HELP YOU

COVER A CLAIM. >> I WOULD HOPE IT WOULD COVER OUR CLAIM. I DON'T KNOW HOW OUR STRUCTURES WOULD CLAIM

OTHERS UNLESS SOMETHING -- >> WHAT I MEAN IS IF THEY

DON'T TRY. >> LOCKUP -- LIKE IF A

TELEPHONE POLE FALLS DOWN. >> I AM BIASED BECAUSE I GO TO THE BOARD MEETINGS AND HEAR REPORTS OF THE BOARD MEETINGS, AND I HEAR REPORTS ABOUT THE OTHER COMPANIES. I KNOW THAT THEIR SERVICE TO CITIES AND LOCAL GOVERNMENTS IS EXCELLENT.

>> I WOULD LIKE TO THANK THE MAYOR AND BARBARA FOR HELPING

ME OUT ON THIS ONE. >> A POINT OF CONTENTION WITH EVERYONE HAVING INCREASES THEY DID. FMIT WAS QUICK TO RESPOND WITH THE OTHER POINTS THEY DO ON OUR BEHALF. IT CAN BE EVALUATED AS FAR AS OTHER INSURANCE.

>> ABSOLUTELY. IT WILL MEASURE UP. NOTHING WRONG WITH GOING OUT. I KNOW IT'S WILL MEASURE UP.

>> ALWAYS CHECK THOSE THINGS. >> ABSOLUTELY.

>> RIGHT NOW, WE ARE LOCKED IN . EVERYONE SEEMS TO BE HAPPY.

AT LEAST WHAT I AM HEARING FROM THE MAYOR AND MANAGEMENT , YOU ARE HAPPY WITH THE SERVICES YOU ARE GETTING.

>> FMIT IS RESPONSIVE. WE ARE PRETTY HAPPY WITH THEM. WE WILL MAKE SURE THAT NEXT YEAR WE GO OUT FOR BIDDING.

>> MADAM CHAIR? DO WE HAVE ANY IDEA HOW MUCH THE INCREASE IS IN THE MARKET ACROSS THE BOARD? IS THIS LESS ON AVERAGE? DO WE

KNOW? >> I DO NOT HAVE AN ANSWER TO THAT QUESTION. WE WILL -- WERE PLEASED THAT 4%.

>> AS SOON AS I SAW 4% I WAS, LIKE, OH, THAT'S GREAT. I LIKE TO KNOW WHERE WE ARE IN COMPARISON TO EVERYBODY ELSE.

>> CHECKED THAT AND GET BACK TO ME.

>> OUT OF CURIOSITY, WHO DOES FMPA USE FOR THEIR INSURANCE?

>> WE HAVE A BROKER. WE GO OUT AND RUN AN INFORMAL FMPA ARE -- PROCESS EACH YEAR. BIG INDUSTRIAL FACILITIES. I BELIEVE WE HAVE USED THE SAME PROPERTY CARRIER FOR THE LAST NUMBER OF YEARS, WHICH IS FM GLOBAL. THEY SPECIALIZE IN ENSURING INDUSTRIAL FACILITIES. CERTAINLY IT'S A GOOD IDEA TO TEST THE MARKET. I WILL ATTEST TO SOMETHING THE MAYOR SAID.

FMIT IS VERY RESPONSIVE TO CLAIM HOLDERS. ALL THE CITIES I DEAL WITH, THE MAJORITY OF THEM, THROUGH THE WEEK, THEY

HAVE FMIT INSURANCE. >> DO I HAVE A MOTION?

>> I MOVE FOR APPROVAL. >> SECOND.

>> MADAM CLERK, WILL YOU PLEASE CALL THE ROLL?

>>

[E.5. Reverse Osmosis Clearwell Rehabilitation]

ITEM ON THE AGENDA. >> A REQUEST TO APPROVE A SPECIFIC AUTHORIZATION FOR THE REHABILITATION OF THE REVERSE OSMOSIS DEGAS OF FIRES AND CLEAR WELL. RESOURCE AND -- SUPERINTENDENT AND THE ONLY PERSON I KNOW -- MOUNT KILIMANJARO WILL PRESENT THIS ITEM.

>> YOU SURVIVED. >> I DID. GOT BACK TUESDAY NIGHT. EVERYTHING WORKED GOOD. THANK YOU. MADAM CHAIR, BOARD MEMBERS , I AM HERE TODAY TO TALK ABOUT THE REHABILITATION OF THE S OF FIRES AND CLEAR WELL AT THE WATER TREATMENT PLANT. IT'S BEEN IN SERVICE FOR 22 YEARS. WE MADE SMALL REPAIRS OF THE FILES OVER THE YEARS. WE'VE GOTTEN BY. WE DID AN INSPECTION LAST YEAR. WE WENT INTO CLEARWELL , WHICH WE

[00:30:09]

>> MADAM CHAIR . YOU PEAKED MY INTEREST. WE CURRENTLY HAVE STAINLESS STEEL PIPING. WHAT KIND OF PIPING ARE THEY

PLANNING? >> HDP -- HTPE. CORRECT ME IF I'M WRONG. 22 YEARS AGO I DON'T THINK THEY WERE DESIGNING. IT WAS AN ACCEPTABLE MATERIAL AT CLEARWELL OTHER TIME. GOTTEN MUCH BETTER AT HOW THEY INSTALL AT THE JOINTS.

THAT'S THE WELDED PIPE, IF YOU UNDERSTAND. LIKE USE IN DISTRIBUTION A LOT. THAT IS THE WAY TO GO. THAT IS WHAT WE PLAN ON DOING IN THE CLEAR WELL. EITHER THAT , OR PVC AT THE TIME. EVEN PVC NOW, WE CAN USE IN THERE BECAUSE OF THE VELOCITY. IS A 24 INCH PIPE. YOU CAN IMAGINE HOW MUCH MORE THE COST WOULD BE IF WE WENT BACK WITH 24 INCH 3/16 INCH STAINLESS STEEL PIPING. IT WILL STILL STAY 3/16 ABOVE. THE PIPING LOOKS GREAT. IT IS IN THE CLEAR WELL ITSELF -- CLEARWELL ITSELF. BECAUSE OF THE CORING -- CHLORINE. WE USED TO USE GAS CHLORINE. IT WAS VERY ACIDIC AT THE TIME. NOW IT IS NOT LIKE THAT. AS YOU KNOW, BACK IN 2014, YOU MAI OR MAI NOT KNOW, WE CONVERTED TO HYPOCHLORITE. IT DOES NOT DRIVE THE PH OF THE WATER DOWN , WHICH IS LIQUID CORING. I HOPE THAT ANSWERED YOUR QUESTION, MA'AM.

>> INTERESTING, YES. >> MADAM CHAIR . DO YOU KNOW HOW LONG THIS WILL LAST ABOUT?

>> I WON'T BE HERE. >> YOU DON'T CARE THAN.

>> NO. I DON'T THINK THERE IS A TIMELINE. AS YOU KNOW, PVC PIPE -- IF WE GO BACK WITH PVC PIPE , THERE WON'T BE ANY STRESS ON IT FROM VELOCITY OR ANYTHING THE WAY THE WATER COMES IN THERE. IT'S VERY SLOW. COMES INTO CLEARWELL . I THINK IT WILL BE THE LIFE OF THE SYSTEM THERE IN THE CLEARWELL BEFORE WE EXPAND OUR HAVE TO REBUILD PARTS OF THE

WHOLE SYSTEM. >> THINK YOU.

>> WELL OVER 20 YEARS, MISSES -- YES MA'AM.

>> RIGHT. >> MADAM CHAIR. HOW OFTEN DOES

THE CLEAR WELL GET INSPECTED? >> EVERYTHING HAS TO BE INSPECTED EVERY FIVE YEARS. ALL OF OUR GROUND STORAGE TANKS, ALL OF OUR CLEARWELL S ARE REQUIRED TO BE INSPECTED EVERY

FIVE YEARS. >> WE FEEL WE HAVE GOTTEN A GOOD LIFE OUT OF THE EXISTING PIPING?

>> WHEN WE WENT TO -- THE WAY WE TREAT NOW , WITH THE FREE CHLORINE, WHICH HELPED US OUT WITH OUR TREATMENT BACK IN 2014, WE ACTUALLY REDID THAT CLEAR WELL -- CLEARWELL AND.

THE CURTAIN MATERIAL IN THERE, WE MAI HAVE TO DO SOME REPAIRS.

IT'S REALLY IN GOOD SHAPE. WE WERE VERY SURPRISED. WE THOUGHT IT MIGHT BE DENIGRATED. WE THOUGHT IT WAS IN PRETTY GOOD SHAPE. WE WILL NEED TO MAKE REPAIRS TO SOME OF THE BRACKETS IN THERE, ALSO. IT'S BEEN IN SERVICE FOR 10 YEARS. WE USED A CURTAIN FOR WHAT THEY CALL CONTACT TIME OF THE WATER. IT IS NOT A BIG THING. IT FUNNELS IT AROUND AND LET'S THE CHEMICALS REACT TO THE WATER BEFORE WE LEND IT WITH THE LIME WATER, AFTER THE CLEAR WELL -- CLEARWELL .

>> I HAVE ONE FOLLOW-UP QUESTION. WILL THIS ALLOW FOR MORE CAPACITY OR IS THIS STRICTLY MORE -- JUST PIPING

AND REPAIRS TO CURRENT? >> SAME CAPACITY, MA'AM. YES,

MA'AM. >> MOVE APPROVAL.

>> SECOND. >> MADAM CLERK, WILL YOU PLEASE

CALL THE ROLL? >>

[E.6. Presentation of the RP3 Reliable Public Power Platinum Award received by FPUA]

[00:35:11]

>> NEXT ITEM ON THE AGENDA, PLEASE.

>> A PRESENTATION FOR THE AMERICAN PUBLIC POWER RELIABLE PUBLIC POWER PROVIDER AWARD. ALSO THE RP3 AWARD.

>> THANK YOU . MADAM CHAIR. BOARD MEMBERS. TODAY I HAVE THE PRIVILEGE OF PRESENTING A SPECIAL WORD RECENTLY AWARDED TO OUR COMPANY FOR EXCELLENCE IN DELIVERING RELIABLE POWER.

IT IS THE AMERICAN PUBLIC POWER ASSOCIATION RP3 PLATINUM AWARD, WHICH IS GIVEN TO ELECTRIC UTILITIES TO DEMONSTRATE COMMITMENT TO RELIABILITY, SAFETY, WORK FORCE DEVELOPMENT , AND SYSTEM IMPROVEMENT. THIS AWARD IS IS -- A TESTAMENT TO MAINTAINING HIGH STANDARDS AND ENSURING THE BEST POSSIBLE SERVICE TO OUR CUSTOMERS. THIS RECOGNITION IS NOT JUST A REFLECTION OF OPERATIONAL ACHIEVEMENTS , BUT ALSO OUR UNWAVERING DEDICATION TO EXELLENCE. ALSO ABOUT THE TRUST OUR CUSTOMERS PLACE IN US, KNOWING THEY CAN COUNT ON OUR SERVICE DAY IN AND DAY OUT. THIS SUCCESS DID NOT HAPPEN IN ISOLATION. THE RESULT OF STRONG FOUNDATION TILT UP ON DECISIONS AND VISIONARY LEADERSHIP PROVIDED BY THE COMPANY BOARD, YOURSELF. YOUR GUIDANCE HAS BEEN INSTRUMENTAL IN STARING US THROUGH CHALLENGES AND POSITIONING US IN A LEADER AND RELIABLE POWER. I PRESENT THIS BOARD -- A WORD TO THE BOARD.

THE RECOGNITION LONGS TO ALL OF US, BUT ESPECIALLY YOU. LET US WITH FORESIGHT AND INTEGRITY. ON BEHALF OF THE ENTIRE TEAM, WISH TO THANK YOU FOR YOUR UNWAVERING SUPPORT AND CONTINUING TO PUSH US TO ACHIEVE GREATER HEIGHTS. THIS IS AS MUCH YOURS AS OURS. WE LOOK FORWARD TO CONTINUING THIS JOURNEY OF EXCELLENCE TOGETHER.

>> I WOULD LIKE TO ADD WE RECEIVED THIS AWARD FOR THE LAST 15, 20 YEARS OR SO. THEY MEASURE EVERY THREE YEARS. THIS IS THE PLATINUM AWARD. THE HIGHEST AWARD, DAVID?

>> YOU HAVE TO GET EXTREMELY HIGH GRADES FOR THAT ONE,

THAT'S A TOUGH ONE. >> IS IT BECAUSE WE TURN IN

FIGURES? HOW DO THEY MEASURE? >> MEASURED BASED ON HOW CONSISTENT WE ARE WITH SAFETY, WORK PRODUCT .

>> YOU TURN THAT INFORMATION INTO THEM?

>> A GIGANTIC QUESTIONNAIRE THEY GOT TOGETHER MUCH DATA FOR THEM TO GO THROUGH AND THEY AWARD VIEWPOINTS. TASTE ON THIS POINT TO GET DIFFERENT LEVELS.

>> OKAY, GREAT. THANK YOU SO MUCH.

>> DAVID WILL NOT BE ABLE TO LEAVE THE BOARD MEETING RIGHT

[E.7. FPUA Electric CIAC Policy]

>> NEXT ITEM ON THE AGENDA. >> YES, MA'AM. A REQUEST TO APPROVE THE ELECTRIC CONTRIBUTION CONSTRUCTION POLICY. THE SUPERVISING ENGINEER WILL PRESENT THIS

ITEM. >> THANK YOU. GOOD AFTERNOON MADAM CHAIR AND MEMBERS OF THE BOARD. THIS PRESENTATION THIS AFTERNOON WILL PROVIDE YOU INFORMATION ON STAFF'S PROPOSED CONTRIBUTION AND AID TO CONSTRUCTION POLICY AND GENERAL FRAMEWORK FOR CUSTOMERS WHO REQUEST MODIFICATIONS TO FPUA STRUCTURE. RECOMMENDATION OF APPROVAL IS RECOMMENDED AND WILL BE INCLUDED AT THE END OF THE PRESENTATION. FOR BACKGROUND ON POLICIES IT'S IMPORTANT TO IDENTIFY HOW THE STATE OF FLORIDA RECOGNIZES UTILITY PROVIDERS. THREE DIFFERENT TYPES OF ELECTRIC UTILITIES IN THE STATE OF FLORIDA. INVESTOR OWNED OR -- MUNICIPAL UTILITY AND COOPERATIVES. OUTLINE SPECIFIC POLICIES FOR ELECTRIC COMPANIES AND FLORIDA ADMINISTRATIVE CODE 25 E- 06 .04. AND COOPERATIVES IN STATUTE FOR 25. THERE ARE NO STATUE LIMITATIONS OR STATUTORY PERMISSION NEEDED FOR A MAJOR DISABILITY -- THIS MEANS FPUA IS ABLE TO CRAFT ITS OWN POLICY. AS IT STANDS NOW, FPUA'S POLICY IS INVESTOR-OWNED POLICY. WITHIN

[00:40:01]

THE INTENTION OF THE POLICY IS TO PROVIDE A FRAMEWORK THAT BEST PROTECTS THE CUSTOMERS AND UTILITY. INCLUDING SERVICES.

FOR CLARITY THE POLICY WOULD CLASSIFY THE TYPE OF CUSTOMER AND NOT BY INFRASTRUCTURE NEEDED. THIS WILL AID STAFF IN DETERMINING THE BEST COURSE OF ACTION FOR CREATING A CIC. IN DEVELOPING THIS POLICY, STAFF NEEDED TO IDENTIFY HOW BEST TO SERVE CUSTOMERS BY ENSURING THE COST INCURRED BY EXPANDING, MODIFYING OR UPGRADING DISTRIBUTION SYSTEM WOULD BE AN EQUAL BENEFIT TO ALREADY PAYING CUSTOMERS. COST RECOVERED FROM EXTERNAL COVER -- CUSTOMERS, AGENCIES MUST BE RECOVERED BY THE RITZ. THE POLICY STEMS FROM THE DECISION OF WHAT COSTS WILL AND WILL NOT BE INCLUDED IN THE STRUCTURE. FOR EXAMPLE GOAL OF THE POLICY IS TO HAVE A NEW CUSTOMER CONTRIBUTE TO THE CAPITOL COST THE NEW CUSTOMERS CAUSING TO THE EXISTING CUSTOMERS MUSIC SCENE NO DIRECT IMMEDIATE BENEFIT FROM THESE FACILITIES ARE PROTECTED. AS MENTIONED, CLASSIFY THE POLICY BY PROTECTIVE CUSTOMER. IN THIS CASE THE STRUCTURE IS BASED OFF THE TWO TYPES OF CUSTOMERS THAT OF THE MAJORITY OF APPLICATIONS. RESIDENTIAL AND COMMERCIAL. CUSTOMERS NOT CLASSIFIED UNDER THESE TWO CATEGORIES, STRUCTURE WILL BE DEFINED IN THE POLICY TO SPECIFICALLY ADDRESS THOSE CUSTOMERS. THE FIRST TYPE OF CUSTOMER IS THE RESIDENTIAL CUSTOMER. RESIDENTS REQUESTING NEW SERVICE, MODIFICATION TO EXISTING SERVICE, OR REMOVAL OF DEMOLITION. RESIDENTIAL CUSTOMERS ARE MAKING CHANGES WITHOUT GENERATING ANY ADDITIONAL REVENUE TO FPUA. THE RESIDENTIAL CUSTOMER WILL BE FINANCIALLY RESPONSIBLE . FOR ALL OTHER CIRCUMSTANCES, RESIDENTIAL CUSTOMERS SHALL BE RESPONSIBLE FOR THE DIFFERENCE BETWEEN CONSTRUCTION COST AND ANTICIPATED REVENUE DETERMINED OVER A FOUR YEAR PERIOD FOLLOWING THE COMPLETION OF CONSTRUCTION. DETERMINING THE ANTICIPATED REVENUE, CLEARWELL SAYS FPUA SHALL USE CUSTOMERS IF AVAILABLE. WERE COMPARABLE CUSTOMERS DO NOT EXIST, PANEL SIDE OR ANTICIPATED LOAD SHALL BE USED. SIMILAR TO A MODEL. THE EXCEPTION TO THIS TYPE OF CUSTOMER IS RESPONSIBLE PROGRAMS WHICH NEED TO BE COVERED BY FPUA. EXAMPLES ARE STORM HARDENING PROGRAMS AND RESTORATION UPGRADES. THE SECOND TYPE OF CUSTOMER IS THE COMMERCIAL CUSTOMER. A BUSINESS OR INDUSTRY REQUESTING NEW SERVICE, MEDICAID -- MODIFICATION OR REMOVAL OR DEMOLITION. SIMILAR TO THE RESIDENTIAL CUSTOMER, COMMERCIAL SHALL BE RESPONSIBLE FOR THE DIFFERENCE BETWEEN CONSTRUCTION COST OR REVENUE FOLLOWING COMPLETION OF CONSTRUCTION. COMPARABLE CUSTOMERS IF THE INFORMATION IS NOT AVAILABLE . HOWEVER WHERE THEY DO NOT EXIST PANEL SIZE OR ANTICIPATED LOAD DENSITY SHALL BE USED. CASES WERE COMMERCIAL CUSTOMERS ARE MAKING CHANGES TO THE SERVICE WITHOUT GENERATING ADDITIONAL REVENUE TO FPUA. THE COMMERCIAL CUSTOMER SHALL BE FINANCIAL -- FINANCIALLY RESPONSIBLE. THE EXCEPTION TO THIS TYPE OF THE CUSTOMER IS FPUA SPONSORED PROGRAMS, SIMILAR TO RESIDENTIAL CUSTOMER. THE THIRD TYPE OF CUSTOMER IS THE PLANNED URBAN DEVELOPMENT OR PUD. COMMERCIAL PROPERTIES BEING BUILT BY DEVELOPER IN WHICH THEY ARE IN TURN SOLD FOR THE DEVELOPER. BASED ON RESEARCH AND THE GENERAL UNCERTAINTY OF DEVELOPMENT STRUCTURES AND CONSTRUCTION, PUD DEVELOPERS WILL BE FINANCIALLY RESPONSIBLE FOR COSTS. AS AN EXAMPLE, DEVELOPER WOULD BE REQUIRED TO REMIT FOR ALL LABOR AND MATERIALS BOTH ON-SITE AND OFF-SITE FOR ALL NEW SERVICES , MODIFICATIONS TO ANY EXISTING SERVICES OR REMOVAL, DEMOLITION OF EXISTING SERVICES AND OTHER ELECTRIC FACILITIES SERVING THEM. THE FINAL TYPE OF CUSTOMER IS FOR REQUESTED OFF-SITE CONSTRUCTION. IF A CUSTOMER OR EXTERNAL STAKEHOLDERS REQUESTING FOR MODIFICATIONS OR TO REMOVE EXISTING INFRASTRUCTURE THAT IS NOT A PROPERTY OWNED BY THE CUSTOMER OR EXTERNAL STAKEHOLDER, SHALL BE FINANCIALLY RESPONSIBLE FOR ALL WORK REQUESTED UNLESS A REASONABLE CASE CAN BE MADE FOR IMPROVEMENTS TO PROVIDE BENEFIT S. THE REASONABLE CASE SHALL BE

[00:45:03]

ANY QUESTIONS YOU MAI HAVE. >> I'VE GOT A FEW. LET'S BACK UP A LITTLE BIT. FOR THIS POLICY YOU ARE PROPOSING TODAY, WHAT DID THE FPUA DO -- WHAT WAS THE METHOD OF DETERMINING

WHAT A RATE PAYER WOULD PAY? >> WE FOLLOWED THE IOU MODEL

FOR INVESTOR-OWNED UTILITY. >> LET'S BREAK IT DOWN FOR ME.

SIMPLEMINDED. WHAT IS THE IOU METHOD?

>> THE IOU METHOD IS SIMILAR TO HOW WE ARE DOING ALL RESIDENTIAL AND COMMERCIAL . IN THIS CASE WITH THE FOUR YEAR PERIOD, RESIDENTIAL CUSTOMERS ARE RESPONSIBLE FOR THE DIFFERENCE BETWEEN CONSTRUCTION COST AND ANTICIPATED REVENUE, AS DETERMINED BY FPUA. WE COME UP WITH THE AMOUNTS THERE.

>> WHY ARE WE USING PROJECTED REVENUE?

>> I'M GOING TO STEP IN A LITTLE BIT. FOR RESIDENTIAL AND COMMERCIAL IT WON'T CHANGE A WHOLE LOT FROM THE WAY WE ARE DOING YOU RAN OUT. THERE WILL BE AN ADDITION BECAUSE WE, HISTORICALLY, HAD NOT CHARGE FOR TRANSFORMERS. THE TICKET ITEMS. A PHILOSOPHY WE HAD IN PRIOR LEADERSHIP OVER THE PAST DECADE. WE ARE TRYING TO CHANGE THAT SO WE ARE NOT FUNDING

OTHER PEOPLE'S PROJECTS. >> I GET THAT. WHAT I AM TRYING TO DETERMINE IS WHY IS IT BASED ON A PROJECT THAT REVENUE?

>> IT IS SUPPOSED TO BE RECOVERING THE COST OF THE ASSET YOU PUT IN AS QUICKLY AS POSSIBLE. THAT'S THE MODEL THE STATE OF FLORIDA USED FOR INVESTOR-OWNED UTILITIES SO THEY DON'T CHARGE THEM MORE -- IT'S A FORMULA TO PROTECT THE CUSTOMER AND PROVIDE A PAYBACK FOR THE INVESTOR-OWNED UTILITY.

>> I CAN HELP A LITTLE ON THIS. CONTRIBUTION CONSTRUCTION IS A BALANCING ACT, RIGHT? YOU HAVE A NEW CUSTOMER THAT REQUIRES YOU TO DO SOMETHING TO YOUR DISTRIBUTION SYSTEM. IT'S GOING TO COST YOU MONEY. YOU DON'T WANT TO HAVE ALL OF YOUR EXISTING CUSTOMERS PAY FOR WHAT THE ONE CUSTOMER WANTS. AT THE SAME TIME, IF YOU ARE DOING SOMETHING TO YOUR SYSTEM, THAT'S GOING TO BUILD VALUE TO THE SYSTEM, YOU DON'T WANT THE CUSTOMER TO PAY FOR ALL THE COSTS WHILE THE VALUE GOES TO EVERYBODY ELSE. OFTEN TIMES WHAT YOU DO IS YOU EVALUATE OVER A PERIOD OF TIME. I'VE SEEN FOUR YEARS, 10 YEARS, TWO YEARS. EVALUATE A STREAM OF REVENUE . A QUICK EXAMPLE, IF YOU HAVE A CUSTOMER AT THE END OF THE ROAD THAT'S GOING TO BUILD A COMMERCIAL PROPERTY , AND YOU HAVE TO EXTEND A LINE TO REACH THEM, YOU DO A PROJECTION OF WHAT THE REVENUE FROM THE CUSTOMER WILL BE OVER A PERIOD OF TIME. YOU SAY, WELL, THAT'S GOING TO PROVIDE VALUE TO THE UTILITY. I WANT TO BALANCE THAT VALUE TO THE UTILITY VERSUS THE COST. WHAT WOULD I INVEST TO GET THAT KIND OF A RETURN? SHARE SOME OF THE COSTS WITH THE CUSTOMER AND UTILITY PICKS UP SOME OF THE COST. THAT'S WHY YOU USE PROJECTION OF REVENUE.

>> RIGHT. >> THANK YOU, JODY. FOR RESIDENTIAL AND COMMERCIAL, IT'S NOT A BIG OF A CHANGE FOR US. RESIDENTIAL, ALL COMMERCIAL PROJECTS CONNECT RIGHT AWAY WITHIN 30 OR 60 DAYS. WHATEVER IT IS. THE REVENUE STARTS TO COME IN. I THINK THE BIGGEST CHANGE FOR THIS POLICY IS PLANNED URBAN DEVELOPMENTS . WE MAI NOT SEE REVENUE FOR SIX MONTHS, 12 MONTHS, FOUR MONTHS, BUT WE ARE INVESTING A LOT TO GET SERVICE TO THE CUSTOMER. IT DOES NOT YOU'RE THE PAYBACK MODEL. NOW WE HAVE, LIKE JODY MENTIONED, OUR EXISTING RATE PAYERS SUBSIDIZE IN SOMEONE ELSE'S PROJECT. THE FOUR YEAR PAYBACK HELPS NOT PUT THE COST ON THE EXISTING CUSTOMERS.

>> MADAM CHAIR, I MAI BE ABLE TO ADD TO THIS AS WELL. A COUPLE WEEKS AGO WE APPROVED THE PLAN TO PUT IN A BUNCH OF TRANSFORMERS AND RUN THE LINES FOR THE LARGE PUD THAT'S GOING IN ON U.S. ONE. MY QUESTION, THIS TIES TOGETHER . WHILE WE

[00:50:02]

FOLLOWING THE MODEL OF THE IOU ALL THE WAY ACROSS THE BOARD RATHER THAN PICKING AND CHOOSING WHICH THINGS WE DO

FOLLOW. >> IT DOES A MORE UNIFORM PROCESS. THE OTHER PART OF THIS EQUATION I THINK IS IMPORTANT IS THAT THESE RESIDENTIAL COMMERCIAL AND PUD , SPECIFICALLY PUD'S . WHEN WE DO THE FORMULA NOW WE USE MORE REFUNDED MONEY. PROJECTS WE HAVE BEEN PLANNING FOR YEARS TO DO. WE HAVE TO FUND THE PROJECT UNDER OUR CURRENT POLICY.

MAKING THE POLICY MORE UNIFORM. ALSO PUTTING A BURDEN ON THE DEVELOPER WHEN HE'S BUILDING A PROJECT. WE DON'T KNOW EXACTLY THE TIMELINE FOR THEM TO FINISH THEIR HOMES OR CLUBHOUSE FOR THE REVENUE TO START COMING BACK INTO THE DOOR.

>> WHEN DO THEY PAY THE CONTRIBUTION?

>> FOR CONSTRUCTION . TYPICALLY THREE MONTHS BEFORE

CONSTRUCTION STARTS. >> TYPICALLY, BASED ON THE MATHEMATICAL FORMULA, WHAT PERCENT OF THAT DOES PAY FOR

THE UPGRADES WE DO? >> FOR THE ON-SITE . TYPICALLY IT VARIES BASED ON THE REVENUE CALCULATION.

>> LET'S SAY FOR THE PUD . >> WHAT IS THE EXPECT IT HOME BUILD , VERTICAL CONSTRUCTION TIMELINE, SIX MONTHS, 12

MONTHS? >> PROBABLY, YEAH. 6 TO 9

MONTHS . >> HOW MANY HOMES ARE ON THAT

DEVELOPMENT? >> FIRST PHASE, I THINK HAS 200

HOMES . 250 MAI BE. >> WE INVESTED, I THINK I'M ON THE PROJECT, THE LAST BOARD MEETING.

>> $418,000. >> THAT TAKES UP ABOUT 1/10 OF

OUR CAPITOL BUDGET . >> THE CONTRIBUTION BACK TO US

. >> 300,000, I THINK.

>> I SEE YOUR QUESTION. >> BASICALLY ON THE HOOK OF

100,000. >> BASICALLY 70%. IS THAT THE

WAY IT WORKS OUT? >> ALMOST $100,000 PROJECT.

>> YES, SIR. >> 50-50.

>> RISK OF 50% IN CASE ANYTHING GOES. IS THAT THE RATIO YOU LOOK TO HAVE BETWEEN THESE DEVELOPERS? ABOUT A 50-50

SPLIT? >> NO, IT'S GOING TO BE MORE

80/20, 70/30 . >> MADAM CHAIR, THAT'S MY QUESTION. IF THE COST TO FPUA WAS $400,000, COST THE DEVELOPER FOR ELECTRIC UTILITIES, APPROXIMATELY 320

SOMETHING? >> YES, CORRECT.

>> HOW WHAT THOSE COSTS CHANGE UNDER THIS NEW POLICY?

>> WHAT WE HAVE IN OUR POLICY AS WE HAVE DEVELOPERS RESPONSIBLE FOR ALL THE MATERIAL OFF-SITE AND ON-SITE AND LABOR CHARGES AS WELL. THE REASON WE ARE DOING THAT IS BECAUSE THE SCHEDULES FOR THE DEVELOPERS, WE DON'T KNOW IF IT'S SOMETHING THAT WILL HAPPEN UP FROM. FORTUNATELY THAT ONE IS MOVING FORWARD. HYPOTHETICAL IF SOMETHING HAPPENS WHERE THE HOUSING MARKET CRASHES, WE INVEST ALL THAT MONEY INTO THE PROJECT. IT IS LIKELY WE WOULD NEVER SEE ITS BACK. WHAT WE ARE DOING WITH THIS IS TRYING TO MAKE SURE WE WERE COVER COSTS UP FRONT. WE ARE ACCURATE. NOT MAKING SURE IT'S ACTUAL COST FOR EACH LABOR, EACH MATERIAL ITEM BASED UPON WHAT WE HAVE. WE CHARGE THAT UP FRONT TO THE DEVELOPER. THE DEVELOPER PAYS. THAT'S WHEN WE RELEASE

EVERYTHING FOR THE PROJECT. >> UNDER OUR NEW POLICY OUR COST WOULD GO -- UNDER THE OLD POLICY THE COST WAS $400,000.

UNDER THE NEW POLICY WILL DO 20?

>> THAT'S RIGHT. THE WHOLE PROJECT WOULD BE TO THE DEVELOPER FOR THE PROJECT. THAT'S DUE TO THE RETURN ON INVESTMENT, AS WELL AS THE DEVELOPER SCHEDULE AND CONSTRUCTION WE WANT TO MAKE SURE WE COLLECT THAT INVESTMENT

[00:55:03]

SOMETHING LIKE THAT. >> WOULD YOU GUESS -- WHAT DOES THAT DO FOR OUR UTILITY TERRITORY COMPETITIVENESS FOR PLANNED URBAN BUILDS AND OTHER PLACES?

>> I DON'T KNOW THE ANSWER TO THAT SPECIFIC QUESTION.

>> I DON'T KNOW WHAT PERCENTAGE OF THE PROJECT THIS WOULD BE FOR A PROJECT OF THAT SIZE. IT MAI BE SMALL ENOUGH WHERE IT HAS ALMOST NO IMPACT . MAI BE BIG ENOUGH FOR THEM TO

LOOK AT PLACES. >> I WOULD SAY IT IS TO PENDING ON THE SIZE OF THE DEVELOPMENT FOR SMALLER ONES. PROBABLY DOESN'T COME OUT TO A VERY BIG ISSUE, I THINK. I WOULD SAY PROBABLY -- AND I AM SPECULATING ON THIS, BUT PROBABLY A BIG ISSUES WHEN THEY BECOME VERY VERY LARGE. WE DON'T REALLY KNOW WHAT KIND OF REVENUE WE MAKE IT BACK FROM IT. PUTTING THE ALL OUT THERE UP FRONT, IT CAN BE HIGH REVENUE, LOWER REVENUE. IT IS ROLLING THE DICE. WHAT WE ARE TRYING TO DO IS MAKE SURE WE ARE LIMITING ROLLING MATT THAISS, I GUESS. MAKING SURE IF THIS IS HAPPENING, THE DEVELOPERS COMMITTED TO IT. THEY ARE GOING TO BE INVOLVED

NEXT >> I DEFINITELY UNDERSTAND THAT PORTION. HOW DOES OUR CURRENT POLICY , PROPOSED POLICIES, HOW DO THEY COMPARE WITH OTHER MUNICIPALITIES ARE RIGHT NOW?

>> CURRENTLY, NO FOR US, EXISTING POLICY, WE WERE USING THE IOU MODEL FOR EVERYTHING. IN TERMS OF OTHER UTILITIES, I DON'T KNOW SPECIFICALLY. JODY, IF YOU HAVE INSIGHT ON THAT?

>> I CAN SPEAK TO THAT A BIT. >> FOR MY EXPERIENCE, THERE ARE A COUPLE OF UTILITIES IN THE STATE THAT REQUIRE THE DEVELOPER OR NEW CUSTOMER TO PAY EVERYTHING. THAT'S NOT EXACTLY THE NORM. THE AVERAGE IS PROBABLY 75-25, OR TO THIRD OR ONE THIRD SPLIT. SOMEWHERE IN THAT RANGE. WHERE I THINK THIS IS AIMED AT IS ON PAR FOR MOST OF US.

>> REMAIN SOMEWHAT COMPETITIVE.

>> TO BE CLEAR FOR SINGLE RESIDENTIAL OR COMMERCIAL PROJECT THERE IS NO CHANGE. THIS IS FOCUSED ON PUBLIC --

>> YES, SIR, THAT'S RIGHT. RESIDENTIAL AND COMMERCIAL CHANGE, THE REASON I MENTION THESE TWO SPECIFICALLY, RESIDENTIAL AND COMMERCIAL, IS BECAUSE WE WANT TO MAKE IT IN WRITING THAT IF THERE IS A CHANGE FOR RESIDENTIAL OR COMMERCIAL SERVICE THAT DOESN'T PROVIDE ADDITIONAL REVENUE, THE CUSTOMER IS RESPONSIBLE FOR THAT UPGRADE.

THAT IS SOMETHING WE WANT TO MAKE SURE WE PUT IN WRITING SO

THEY ARE NOT FUNDING THAT. >> FOR MY EXPERIENCE THAT IS

TYPICAL. >> YES, SIR.

>> MADAM CHAIR. GIVE ME AN EXAMPLE OF A RESIDENTIAL CHANGE

I WOULD MAKE. >> THE METER CAN. IF YOU NEED TO UPGRADE YOUR METER CAN IN SOME WAY, SHAPE OR FORM. IF YOU WANT TO GO UNDERGROUND WITH YOUR SERVICE. IF YOU WANT TO RELOCATE YOUR SERVICE ON THE HOUSE, OR IF THE RESIDENCE OR COMMERCIAL BUILDING NEEDS TO MODIFY THEIR SERVICE IN SOME WAY, SHAPE, OR FORM. USUALLY DEPENDS ON IF THEY HAVE AESTHETICS, OR IF THERE IS SOME OTHER CHANGE THAT DOESN'T INVOLVE ADDITIONAL REVENUE IN SOME SHAPE TO THE UTILITY.

THAT'S WHEN WE WOULD APPLY THAT. WE WOULD SAY TO THE CUSTOMER THEY ARE RESPONSIBLE FOR ALL OF THE CHANGES TO DO

THAT SERVICE. >> PROBABLY THE SMACK -- SECOND-LARGEST CLASS. THOSE ARE THE EXPENSES THOSE CUSTOMERS IF THEY MADE UPGRADES TO THEIR SERVICE, WOULD EXPERIENCE.

>> I WOULDN'T THINK OF DOING THAT, ACTUALLY.

>> THE METER CAN FILTER BROKE. THE COST IS ON THE CUSTOMER.

>> MAKE A MOTION TO APPROVE. >> SECOND.

>> MADAM CLERK, WILL YOU PLEASE CALL THE ROLL.

>>

[E.8. Electric Underground Unit Price Contract Amendment No. 1]

[01:00:02]

>> GOOD AFTERNOON AGAIN, MEMBERS OF THE BOARD. FPUA IS RECOMMENDING AN INCREASE TO ACCOUNT FOR THE NEW WORK LOAD IN FISCAL YEAR 2025. FPUA STAFF -- TO BE MAJOR PART OF THE WORK PLAN USING OUR UNIT PRICE CONTRACTOR. THE FUNDING IS ANTICIPATED TO ASK INTO SEPTEMBER 30TH, 2027. DURING THIS TIME, THEY MAI MAKE A BID TO THE CONTRACT , IN WHICH CASE IT WILL REPLACE THE SCONE -- CONTRACT. I CAN TAKE QUESTIONS IF YOU HAVE THEM AT THIS TIME.

>> TO HAVE APPROVAL? >> MOVED TO APPROVE.

>> I WILL SECOND. >> ADAM CLARK, PLEASE CALL THE

ROLL, PLEASE. >>

[F. DIRECTOR COMMENTS]

>> THANK YOU VERY MUCHCHCH. THA CONCLUDES THE AGENDA. DIRECTOR, WILL YOU HAVE ANY FURTHER COMMENTS?

>> I HAVE A HANDFUL HERE. I WOULD LIKE TO FOLLOW UP AND ANSWER SOME QUESTIONS FROM THE LAST BOARD MEETING. I BELIEVE IT WAS MR. FEE. 60% . 17,000 METERS APPROXIMATELY 25 -- OUT OF 29,000 . OF THOSE, 60% ARE REGISTERED, WITH ONLINE PLATFORM . WILL PROVIDE YOU WITH MORE IN-DEPTH PRESENTATION AT A LATER DATE. ABOUT 60% OF THE 17,000. CONGRATULATIONS TO MISSES GIBBONS TO HER REAPPOINTMENT FOR HER SECOND TERM. AT THE NEXT BOARD MEETING WE WILL HAVE AN AGENDA ITEM TO ROTATE POSITIONS AS DISCUSSED EVERY YEAR. MR. LAMMERS WILL MOVE INTO THE CHAIR POSITION. TOBER FRIDAY FAST . OCTOBER IS POWER WEEK. THAT WILL BE THIS UPCOMING MONTH. WE WILL HAVE THE TEAM THERE WITH THE AMERICAN FLAG AT THE FRIDAY FAST , OCTOBER 4TH. WE WILL BE THERE PROBABLY REPRESENTING FPUA. SECOND TIME THIS YEAR , PROUDLY -- OUR CREWS HAVE BEEN IN MORGAN CITY LOUISIANA SINCE THURSDAY, SEPTEMBER 12 . THEY WILL LIKELY BE THERE THROUGH THE END OF NEXT WEEK. I WOULD LIKE TO RECOGNIZE THE TEAM. TONY GONZALEZ, KEVIN PARRISH, RYAN, AND RILEY. I WANT TO CONTINUE TO WISH THEM A SAFE WORKING INSIGHT -- ENVIRONMENT, AND HOPEFULLY A SAFE RETURN HOME. WE ARE SCHEDULING INTERVIEWS FOR ADDITIONAL CANDIDATES WE HAVE. I THINK IT WAS EARLIER TODAY FOR THOSE CANDIDATES. STEPHANIE AND EILEEN . WE DISTRIBUTED ADDITIONAL RESUMES EARLIER THIS AFTERNOON FOR YOU TO REVIEW.

HOPEFULLY YOU CAN GIVE ME FEEDBACK SO WE CAN CONTINUE TO GET THAT PROCESS MOVING. LAST BUT NOT LEAST, I AM HAPPY TO SEE LINDA HERE AND COMING TO OUR BOARD MEETING. THANK YOU.

[G. BOARD MEMBER COMMENTS]

>> THANK YOU. DO I HAVE ANY COMMENTS FROM THE BOARD AT THIS TIME? WHAT ABOUT THE ATTORNEY?

>> YES, MA'AM, I HAVE ONE ITEM I WANTED TO MAKE SURE THE BOARD WAS AWARE OF. LAST YEAR, FPUA FILED A LAWSUIT FOR V FAST -- PFAS. THE FIRE RETARDANT MATERIALS. JOHNSTON CONTROLS, FIRE PRODUCTS, AND KIM GARDNER INC., IS NELSON. NELSON ALSO IS UNDER CONTRACT WITH FPUA TO ASSIST FPUA ON PROCUREMENT MATTERS. THE FIRM, A VERY LARGE FIRM. OFFICES ALL OVER THE COUNTRY. THE ATTORNEY WHO WORKS WITH FPUA ON PROCUREMENT IS HERE IN FLORIDA. THE ATTORNEY FOR NELSON, WHO WAS HANDLING THE LITIGATION , THE DEFENDANTS, AND THE TREND 28 LITIGATION IS IN CHARLESTON . THEY NEVER MET BEFORE. NELSON HAS ASKED FOR A WAIVER OF CONFLICT. THEY'VE ASKED FOR WAIVER . THEY PROVIDED ME A DRAFT OF THAT WAIVER OF CONFLICT LETTER. WHICH I CAN SIGN IF THE BOARD IS OKAY WITH THAT. THIS IS NOT UNUSUAL. A LOT OF BIG LAW FIRMS WITH

[01:05:04]

THAT . >> I AM OKAY WITH THAT. I DON'T KNOW IF MADAM CHAIR -- THIS SOUNDS, LIKE, SOMETHING RELATIVELY NORMAL . ESPECIALLY IF YOU READ THROUGH IT ALL. AND

WE CAN RESEND IT. >> I AM FINE WITH ITS.

>> QUESTIONS. WE HAVE NELSON ON THE PLAINTIFF SIDE, RIGHT?

>> NELSON ON THE DEFENSE SIDE, V FAST LITIGATION.

>> THEY ALSO HANDLE PROCUREMENT .

>> A LOT OF STUFF ON THE WASTEWATER PROJECT .

>> WHO IS ON THE PLAINTIFF SIDE?

>> I'VE GOT NO PROBLEMS WITH IT. WHATEVER INFORMATION THEY

HAVE ON THIS, CONTRACT. >> IT IS YOUR CONTRACTUAL PREFERENCES, TERMS AND CONDITION PREFERENCES FOR

BUILDING. >> AN ETHICAL THING TO HAVE TO

REQUEST. >> IT IS.

>> I APPRECIATE KNOWING IT NOW.

>> OKAY. AGAIN, WE WOULD LIKE TO THANK

* This transcript was compiled from uncorrected Closed Captioning.