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[00:00:07]

>> TODAY IS NOVEMBER 5, 2019. WE WILL START WITH AN OPENING PRAYER BY LARRY LAMMERS.

>> HEAVENLY FATHER, I PRAY A SPECIAL BLESSING FOR THIS MEETING THAT EVERY WORD SPOKEN AND EVERY DECISION MADE WORKS TOWARDS THE BETTERMENT OF OUR UTILITY.

I PRAY FOR ANOTHER BLESSING FOR OUR COMMUNITY, THAT WE BECOME A SHINING EXAMPLE OF WHAT UNITY AND THE INTEGRITY AND THE PROFOUND IMPACTS THAT THOSE TWO THINGS CAN HAVE ON A COMMUNITY.

IN JESUS NAME, AMEN. >> I PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IS STANDS, 1 NATION, UNDER GOD,

INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. >> PLEASE CALL THE ROLL.

(ROLL CALL) >> TOM, ARE YOU GOING TO CALL MS. WOLFE UP.

>> LOIS WOLFE WILL PRESENT THE BEST PLACE TO WORK AWARD. >> THANK YOU.

I'M REALLY PLEASED TO BE HERE THIS EVENING TO PRESENT OUR BEST PLACES TO WORK AWARD FOR 2019. ON OCTOBER 24TH, MR. TOM PICK AND I ATTENDED THE CEREMONY WHERE 15 EMPLOYERS OUT OF A POOL OF OVER 40 APPLICANTS, WE WERE SELECTED TO RECEIVE THE BEST PLACES TO WORK AWARD. THIS IS OUR FOURTH TIME RECEIVING THE AWARD.

THE AWARD IS BASED ON A HOST OF CRITERIA. BENEFITS RELATED, ALONG WITH OTHER HR METRICS. IT GIVES AN OPPORTUNITY TO RESPOND TO SOME NARRATIVE QUESTIONS, TO OUTLINE SPECIAL PROGRAMS THAT SET US APART FROM OTHER EMPLOYERS WITHIN THE COMMUNITY. I'M REALLY PLEASED TO GET THIS AWARD ONCE AGAIN.

ON BEHALF OF ALL OF OUR EMPLOYEES WHO MAKE FPOA A REALLY GREAT PLACE TO WORK.

[Item A]

THANK YOU. >> THANK YOU. >> IS THERE A MOTION TO SET THE AGENDA? SO MOVED. (ROLL CALL.

[Item B]

>> NEXT ITEM IS PRIOR MINUTES FROM THE ENTIRE MEETING. >> MOVE THAT THE MINUTES OF

OCTOBER 15TH BE APPROVED. >> IS THERE A SECOND? >> SECOND.

>> PLEASE CALL THE ROLL. >> ROLL CALL >> ANY COMMENTS FROM THE PUBLIC? SEEING NONE, WE'LL GO TO THE CONSENT AGENDA.

[Consent Agenda]

IS THERE A MOTION TO APPROVE? >> MOVE THAT THE CONSENT AGENDA BE APPROVED.

>> IS THERE A SECOND? >> SECOND. >> PLEASE CALL THE ROLL.

>> ROLL CALL.

[Item G1]

BUSINESS. >> FIRST ITEM IS APPROVAL OF A SPECIFIC AUTHORIZATION ASSOCIATED WITH THE REPLACEMENT OF THE AUTOMATIC TRANSFER SWITCH OF THE EMERGENCY

GENERATOR. >> THANK YOU. GOOD AFTERNOON, MADAM CHAIR, MEMBERS OF THE BOARD. I'M HERE TO REQUEST THE APPROVAL ON GT 20-02 WITH GLOBAL TECH INC. IN THE AMOUNT OF $394,240 FOR THE REPLACEMENT OF THE AUTOMATIC TRANSFER SWITCH. TO ACCOMPANY THAT I REQUEST THE APPROVAL OF A BUDGET TRANSFER IN THE AMOUNT OF 82,700. THE ENERGY SERVICE CENTER IS THE PRIMARY COMMAND CENTER OF DAILY OPERATION FOR CORPORATE SERVICES FOR FPOA NET. ALSO ESC SERVES AS THE EMERGENCY OPERATIONS CENTER. THIS REQUIRES 24/7 EMERGENCY STAND-BY POWER IN THE EVENT OF AN OUTAGE. THE SC DOES HAVE A NATURAL GAS GENERATOR.

[00:05:03]

STARTING LATE LAST YEAR WE RAN INTO MAINTENANCE ISSUES THAT RESULTED IN AN EXTENDED OUTAGE, THAT LASTED TEN MONTHS. DURING THAT EXTENDED PERIOD OF TIME, WE HAD TO OPERATE THE ORIGINAL ETS MULTIPLE TIMES. YOU KNOW YOU HAVE A PROBLEM WHEN THEY DON'T WANT TO OPERATE IT. LUCKILY WE WERE ABLE TO STILL REMOTELY OPERATE THE ETS.

FORTUNATELY, THE GENERATOR MAINTENANCE IS NOW COMPLETE AND WE EXPECT TO GET ANOTHER FIVE TO TEN YEARS OUT OF THE GENERATOR. BUT WE WILL NOT HAVE THE SAME LUCK WITH THE ATS BECAUSE THE PIECES AND PARTS AND EXPERTISE TO REPAIR THE UNIT ARE HARD TO FIND. I KINDLY REQUEST YOUR APPROVAL AND HAPPY TO ANSWER ANY

QUESTIONS YOU MAY HAVE. >> ANYONE HAVE ANY QUESTIONS? >> MADAM CHAIR, SET FORTH TO

MOVE THAT GT 20-02 BE APPROVED. >> SECOND.- >> PLEASE CALL THE ROLL.

>> ROLL CALL. >> NEXT ITEM IS PROCUREMENT OF VEHICLES FOR FISCAL YEAR 2020.

[Item G2]

AND ERIC WINTERSTEIN WILL MAKE THE PRESENTATION. >> GOOD AFTERNOON, MADAM MAYOR, MR. CHAIR. I COME TODAY TO THE BOARD SEEKING APPROVAL FOR THE PURCHASE OF TEN VEHICLES AS PART OF FPOA'S FIVE YEAR CAPITAL IMPROVEMENT PLAN, 20-12 AND THE PURCHASE WILL BE MADE UNDER SOURCE WELL. THE VEHICLES THAT ARE BEING PURCHASED ARE TO REPLACE EXISTING VEHICLES IN THE FLEET THAT ARE APPROACHING END OF THE LIFECYCLE. THE END OF THE LIFECYCLE DETERMINED BY AGE, MILEAGE AND THE AMOUNT OF CAPITAL SPENT OVER THE LAST FEW YEARS REPAIRING THE VEHICLES.

THE CAPITAL SPENT DOESN'T INCLUDE NORMAL MAINTENANCE. WE BELIEVE THIS PURCHASE IS PART OF THE RELIABLE AND FPOA MISSION STATEMENT. FOR THE NEW BOARD MEMBERS, FPOA HAS THE CRADLE TO GRAVE APPROACH. CENTRAL FLEET SERVICES DOES THE PURCHASING, MAINTAINING AND REPAIRING OF THE VEHICLES AND THE DISPOSITIONS OF THE VEHICLES AT THE END OF THE LIFECYCLE THROUGH THE VEHICLE AUCTION THAT WE DO EVERY TWO YEARS. THE TOTAL COST OF TEN VEHICLES IS $459,261.

TWO OF THE VEHICLES ARE GASOLINE POWERED. THERE IS A FORD ESCAPE AND FORD RANGER. ONE OF THEM IS A DIESEL POWERED CHEVROLET FIVE-YARD DUMP TRUCK.

DIESEL ENGINES ARE OPTIMAL IN THIS APPLICATION. THE OTHER SEVEN VEHICLES ARE CNG, COMPRESSED NATURAL GAS AND GASOLINE VEHICLES. FPOA HAS 11 BIO FUEL VEHICLES IN THE FLEET. THE FIRST BOARD APPROVED PURCHASE WAS FEBRUARY 21ST, 2017, WITH THE VEHICLE DELIVERY OF AUGUST 3RD, 2017. SO WE'VE HAD TWO YEARS WITH THE BI-FUEL VEHICLES. I THINK IT'S IMPORTANT THAT WE HAVE A LITTLE BIT OF HISTORY ITH THEM. AFTER THIS PURCHASE, WE'LL HAVE 18 VEHICLES IN THE FLEET AND THAT WILL PUT US AROUND TEN PERCENT OF OUR VEHICLES WILL BE BI-FUEL VEHICLES. CLEAN, EFFICIENT, BURNING COMPRESSED NATURAL GAS.

OUT OF THE SEVEN BI-FUEL VEHICLES THAT WE'RE PURCHASING, THREE ARE GOING TO DISTRIBUTION, ONE IS GOING TO THE WATER RECLAMATION FACILITY. ONE IS GOING TO THE GAS STATION. WHICH HAS FOUR OF THESE COMPRESSED NATURAL GAS VEHICLES. ON ANOTHER NOTE, FPOA COMPRESSED NATURAL GAS STATION WENT INTO EFFECT DECEMBER 2017. SO WE'RE FUELING OUR OWN VEHICLES.

IS THERE ANY QUESTIONS ON THIS PURCHASE? >> ANY QUESTIONS?

>> IS THERE A MOTION TO APPROVE? >> SO MOVED.

>> SECOND. >> PLEASE CALL THE ROLL. >> ROLL CALL.

MR. FEE. YES, MA'AM. MR. MATTHEWS.

YES, MA'AM. >> THE NEXT ITEM IS THE PURCHASE OF TWO SPECIALTY

[Item G3]

TRUCKS FOR ELECTRIC T&D AND BILL CRAWFORD WILL MAKE THE PRESENTATION.

>> THANK YOU. MADAM CHAIR, MEMBERS OF THE BOARD.

BILL CRAWFORD, FORT PIERCE UTILITIES. HERE TO ASK THE APPROVAL TO PURCHASE TWO 48-FOOT MATERIAL HANDLER BUCKET TRUCKS, FROM ALTEC INDUSTRIES, FROM BIRMINGHAM ALABAMA. UNDER THE SOURCEWELL NJPA CONTRACT.

THESE TWO TRUCKS WILL REPLACE TWO 2011 MATERIAL HANDLER BUCKET TRUCKS WITH ALMOST 100,000 MILES ON THEM. THESE VEHICLES ARE PART OF THE ISCAL YEAR 20 BUDGET.

BE HAPPY TO ANSWER ANY QUESTIONS IF YOU WOULD LIKE. >> THE LAST TRUCKS WERE BOUGHT

[00:10:06]

IN 2011? >> YES, MA'AM. >> SO DO YOU EXPECT THESE TO

LAST ABOUT THE SAME AMOUNT OF TIME? >> YES, SIR.

>> THE OTHERS HAD 100,000 MILES ON THEM? >> YES, MA'AM.

>> I HAD TO LOOK UP WHAT AN ARTICULATED TELESCOPIC AERIAL DEVICE MATERIAL HANDLER WAS.

A BUCKET TRUCK. >> A BUCKET TRUCK. >> ALL THAT BIG NAME NOW.

>> I THOUGHT IT WAS A TALKING TRUCK. ARTICULATING.

>> TRAIN THE OPERATOR ALREADY. >> THEY'RE PRETTY MUCH TRAINED ALREADY.

>> I MOVE APPROVAL. >> SECOND. >> PLEASE CALL THE ROLL.

>> ROLL CALL. NEXT ITEM IS THE CONTRACT WITH ABB FOR REPLACEMENT OF

[Item G4]

SUBSTATION TRANSFORMERS. AND ERIC MYER WILL MAKE THE PRESENTATION.

>> THANK YOU. MY NAME IS ERIC MYER. I'M AN ELECTRICAL ENGINEER.

>> IF YOU COULD PULL THE MIC OVER CLOSER, PLEASE. >> THANK YOU.

MY NAME IS ERIC MYER, I'M AN ELECTRICAL ENGINEER HERE AT FPOA.

I'M HERE TO DISCUSS THE SUBSTATION TRANSFORMER REPLACEMENT PROGRAM UNDER POA 19-11A. THIS PROGRAM IS PART OF OUR STRATEGIC PLANNING, 2019 INITIATIVE AS PRESENTED TO THE BOARD ON AUGUST 6, 2019, AS PART OF OUR GRID MODERNIZATION EFFORTS, THIS IS A BUDGETED PROGRAM, AS A RECAP OF THIS PRESENTATION, THE FPOA HAS SEVERAL EXISTING POWER TRANSFORMERS WHICH ARE EXHIBITING SIGNS OF PHYSICAL DEGRADATION AND OIL DETERIORATION. AS PART OF OUR RESPONSE TO THESE PROBLEMS, WE ARE PROPOSING AN INFRASTRUCTURE REPLACEMENT.

PROCURING ONE UNIT ANNUALLY FOR A SIX-YEAR PERIOD. FIRST IS PLANNED FOR NOVEMBER 2020, AND SUBSEQUENT UNITS WILL BE INSTALLED ANNUALLY THROUGH 2025.

AS PART OF OUR VENDOR SELECTION PROCESS, WE RECEIVED TEN PROPOSALS UNDER RFP.

THESE PROPOSALS WERE EVALUATED ON SEVERAL FACTORS. THE MOST IMPORTANT WERE TOTAL COST, HOW MUCH WERE EACH TRANSFORMER UNITS AND HOW MUCH WAS LABOR TO INSTALL THE TRANSFORMER. THE COMPLIANCE WITH THE TECHNICAL SPECIFICATIONS, HOW WELL DID EACH VENDOR ADHERE TO OUR SPECIFICATIONS. THE EXPERIENCE OF QUALIFICATIONS OF EACH VENDOR, HOW EXPERIENCED IS THE VENDOR WITH MAKING SOLUTIONS WITH THIS MAGNITUDE. VEDOR REPUTATION, HOW WELL HAS THE PRODUCT BEEN RECEIVED BY CUSTOMER REFERENCES. THROUGHOUT THESE TEN PROPOSALS, WE BELIEVE TO RECOMMEND THE AWARD TO ABB. WE FEEL THAT ABB HAS PROVIDED THE SOLUTION THAT BEST MEETS FPOA'S NEED AND WILL PROVIDE A RELIABLE PRODUCT FOR FPOA AND FPOA'S CUSTOMERS.

RECOMMENDATION UNDER 19-11A IS TO ACCEPT THIS PROPOSAL. FIRST CONTRACT IS PROCURING ONE ANNUALLY OVER A SIX YEAR PERIOD. SECOND CONTRACT IS THE LABOR FOR THE INSTALLATION OF THE TRANSFORMER UNIT ON TO THE FPUA PAD, ONE ANNUALLY OVER A SIX-YEAR PERIOD FOR $322,000. THE TOTAL FOR THESE TWO CONTRACT OVER A SIX-YEAR PERIOD IN TOTAL IS ROUGHLY THREE MILLION DOLLARS. WITH THAT I WILL TAKE ANY

QUESTIONS THAT YOU MAY HAVE. >> ANY QUESTIONS? >> I MOVE APPROVAL.

>> SECOND. >> PLEASE CALL THE ROLL. >> ROLL CALL.

[Item G5]

>> THANK YOU. >> YOU'RE WELCOME. >> THE NEXT ITEM IS A CONTRACT APPROVAL REQUEST WITH CAPE CANAVERAL SCIENTIFIC. EARL HUTCHINSON WILL MAKE THE

PRESENTATION. >> GOOD AFTERNOON. CAPE CANAVERAL SCIENTIFIC IS

[00:15:07]

REQUESTING SEPTIC TO SEWER CONVERSION PROJECTS SUCH AS THE RECENT AWARD TO THE SEWELL'S POINT NEIGHBORHOOD. PROJECTS IN THE WATER, FLEET WOOD ACRES, STAFF IS RECOMMENDING THAT WE ALSO CONTRACT WITH CAPE CANAVERAL SCIENTIFIC TO APPLY TO SIMILAR GRANTS ON OUR BEHALF. IF THIS IS SUCCESSFUL WE WILL USE CAPE CANAVERAL SCIENTIFIC ON A MUCH LARGER SCALE. THE COST IS 9,$720. THE COST TO MANAGE THE GRANT WOULD BE $63,180. BASED ON AN HOURLY RATE EXTRAPOLATED OUT OVER A YEAR.

THE GRANTING AGENCIES WILL TYPICALLY TACK ON THE 63,000 ADMINISTRATION COSTS ON TOP OF THE GRANT, WHICH WOULD GIVE FPUA A NET COST OF ZERO FOR THE MANAGEMENT OF THESE GRANTS.

NOW, IT IS POSSIBLE THAT A GRANT COULD BE AWARDED WITHOUT MANAGEMENT FEES INCLUDED.

AT THAT POINT WE WOULD HAVE TO MAKE A BUSINESS DECISION TO SEE IF THEY WANTED TO MOVE FORWARD WITH ACCEPTING THE GRANT. THEREFORE, STAFF IS RECOMMENDING THAT YOU APPROVE THE PIGGY BACK CONTRACT WITH CAPE CANAVERAL SCIENTIFIC, IN AN AMOUNT NOT TO EXCEED 251,$641 ANNUALLY. OUTSIDE NUMBER THAT IS ANTICIPATING THAT WE WOULD APPLY FOR SEVERAL GRANTS EACH YEAR OVER THE NEXT FIVE YEARS. IF THERE ARE ANY QUESTIONS I

WILL BE HAPPY TO ANSWER THEM. >> YOU HAD A CONTRACT WITH THEM BEFORE?

>> NO, WE HAVE NOT, SIR. >> BUT SEWALL'S POINT HAS BEEN SUCCESSFUL.

I KNOW THAT THEY ARE BECAUSE THEY'RE GRAPPLING WITH THAT SAME ISSUE OF SEPTIC TO SEWER.

THIS IS VERY ENVIRONMENTALLY ADVANTAGEOUS IF WE CAN BE SUCCESSFUL.

>> ABSOLUTELY. AND IT'S ALSO VERY FINANCIALLY ADVANTAGEOUS AS WELL.

>> BECAUSE WE HAVE NEW CUSTOMERS THEN. >> THIS PARTICULAR PROJECT THAT WE'RE USING IS OUR FIRST PILOT PROJECT TO SEE IF WE'RE SUCCESSFUL HERE.

FPUA ESTIMATED COST IS AROUND 150 TO $160,000 FOR OUR PART OF THE INFRASTRUCTURE.

BUT THERE IS ANOTHER $6,500 WITHOUT THE IMPACT FEES THAT THE CUSTOMERS WOULD HAVE TO COME UP WITH AS WELL FOR THE INFRASTRUCTURE AND THE GRINDER PUMP STATIONS AND ALL OF THAT.

AND THERE IS AN OPPORTUNITY TO APPLY FOR GRANTS ON BEHALF OF THOSE PEOPLE AS WELL WITH THESE PROGRAMS AT CAPE CANAVERAL. THAT WOULD BE A PIECE OF THIS. HONESTLY, THAT IS A MUCH MORE SUBSTANTIAL PIECE OF THIS PARTICULAR PROJECT. YOU FIGURE 90 HOMES, AT 6500, WHAT IS THAT? 590,000, SOMEWHERE IN THAT RANGE?

IT'S A PRETTY SIGNIFICANT AMOUNT OF MONEY. >> SO IT'S A PILOT PROJECT,

WE'LL SEE HOW IT WORKS. >> YES, MA'AM. ROLL THE DICE.

THEY HAVE A VERY GOOD TRACK RECORD ACTUALLY. WHEN WE WERE SPEAKING WITH AMY FROM APRIL CAPE CANAVERAL, SHE SAID THERE IS A POINT IN THE HERE WHEN THEY WERE SAYING THEY'LL GET A CALL SAYING IF THERE IS EXTRA MONEY IN THE GRANTS, DO YOU HAVE ANYTHING THAT WE CAN USE IT FOR. AND THEN SHE CAN WELL, YEAH, I HAVE ONE READY, FPUA.

SO HOPEFULLY WE ARE GOING TO BE SUCCESSFUL WITH THIS. >> VERY PLUGGED IN.

>> I MOVE APPROVAL. >> I SECOND. >> PLEASE CALL THE ROLL.

[Item G6]

>> ROLL CALL. >> THE NEXT ITEM IS REQUESTING APPROVAL OF ON AMENDMENT TO OUR WATER WASTE WATER UNIT PRICE CONTRACTOR, BLUE GOOSE CONTRACTOR.

JAMES CARNES WILL MAKE THE PRESENTATION. >> THANK YOU.

SEPTEMBER 18, 2018, THE BOARD APPROVED THE CONTRACT WITH BLUE GOOSE, IN THE AMOUNT NOT TO EXCEED 1,024,000. THE CONTRACT WAS BASED UPON PRICES SUBMITTED IN 2016.

HOWEVER, THE MATERIAL AND LABOR PRICINGS ARE INSUFFICIENT TO SUPPORT THE CURRENT EXPENDITURES. STAFF AND BLUE GOOSE AGREED THAT THE MOST EFFICIENT IS TO HARMONIZE BOTH OF OUR CONTRACTORS, THIRD PERCENT ON BLUE GOOSE'S CURRENT UNIT

[00:20:04]

PRICES, WOULD ONLY APPLY TO FISCAL YEAR 2020, AS THIS CONTRACT UP FOR RENEWAL IN FISCAL YEAR 2020. IN ADDITION TO THAT, STAFF PRESENTLY HAS TWO PROJECTS SLATED FOR BLUE GOOSE TO CONSTRUCT, FLEETWOOD ACRES EXPANSION PROJECT, ORANGE AVENUE. PRESENTLY THESE TWO PROJECTS COMBINE TO EQUAL ABOUT $1.6 MILLION. WE HAVE AN EXISTING PURCHASE ORDER OF 1.2 RIGHT NOW.

WE'RE REQUESTING AN INCREASE TO MEET THAT REQUIREMENTS. IF THERE ARE ANY QUESTIONS,

MORE THAN HAPPY TO ANSWER THEM. >> ANY QUESTIONS? >> ALL RIGHT.

SO I NEED TO UNDERSTAND SOMETHING. SO WHEN WE DID THIS IN 2016, WE

WERE ESTIMATING 1,024,000? >> WHEN WE INITIALLY AWARDED THE ENTERPRISE CONTRACT, WE AWARDED TO MASTECH NORTH AMERICA. DUE TO GROWING THE CITY AND UTILITY, WE CAME UP WITH EXPANSION PROJECTS AND OTHER CAPITAL PROJECTS THAT WERE OUTSIDE THE CAPABILITIES OF MASTECH TO PERFORM. WE CONTACTED BLUE GOOSE.

THEY SAID YES. WE DID ONE PROJECT WITH THEM. THEY ESSENTIALLY BROKE EVEN WITH NO PROFIT. GOT BENEFIT TO EXISTING RATE PAYORS.

BUT THEY'RE UNABLE TO CONTINUE WITH SOME OF THE WORK THAT WE HAVE UNDER EXISTING PRICES.

IT'S THE MOST EFFICIENT WAY TO HARMONIZE THE PRICES BETWEEN BOTH CONTRACTORS.

MAINLY BECAUSE REMEMBER, 2016 WAS THREE YEARS AGO. THEY'RE WORKING TODAY, BASED ON NUMBERS IN 2016. SO THOSE LABOR AND MATERIAL PRICES ARE LOWER THAN WHAT THEIR EXPENDITURES ARE THIS YEAR. THIS IS THE MOST LEAST OBTRUSIVE WAY TO TRY TO GET THEM TO BE PROFITABLE AND US TO GET OUR EXPANDED CAPITAL

PROJECTS COMPLETED. >> HOW MANY JOBS HAVE YOU ENGAGED BLUE GOOSE TO DO?

>> ONE FOR US. WE ORIGINALLY HAD THEM START THE FLEET WOOD ACRES PROJECT.

WE MOVED THEM INTO THE -- COST THEM AROUND $350,000. WE PAID THEM 240,000.

THEY HONORED THE CONTRACT. THEY HONORED THE PRICES BUT THEY CAME TO US TO MOVE FORWARD AND WE NEEDED TO DO SOMETHING DIFFERENT. THIS IS WHAT WE PROPOSED.

>> THEIR CONTRACT IS UP FOR RENEWAL IN 2020. >> BOTH OF THEM ARE.

>> YES. >> I DON'T SEE WHERE WE HAVE MUCH OF A CHOICE.

>> I GUESS I'M STILL CONFUSED AS TO WE MISSED, I MEAN I UNDERSTAND THERE HAS BEEN PRICE

INCREASES SINCE 2016, BUT WE MISSED IT BY 50 PERCENT. >> MISSED IT BY 50 PERCENT.

>> WELL, IF WE'RE GOING FROM A MILLION 24,000 TO A MILLION SIX.

>> THAT IS DIFFERENT. THE AGENDA ITEM REALLY HAS TWO REQUESTS, AS WE READ INTO IT.

THE FIRST REQUEST IS TO INCREASE THE CONTRACTUAL PRICES THAT HAVE BEEN DELINEATED IN THE UNIT COST. THAT IS ONE. THE OTHER ONE IS JUST TO INCREASE THE PURCHASE ORDER TO COMPLETE TWO PROJECTS THAT WE HAVE.

SO ALTHOUGH THERE IS ONLY ONE RECOMMENDATION, IT SHOULD BE TWO.

ONE TO INCREASE THEIR MATERIAL AND LABOR PRICES, TO MATCH THOSE OF MASTECH, MAKE A PROFIT, COMPLETE THE PROJECTS AND PART TWO IS TO INCREASE THE PURCHASE ORDER THAT WE HAVE WITH THEM. BECAUSE RIGHT NOW WE NEED 1.6 IN ORDER TO COMPLETE THE TWO PROJECTS THAT I STATED EARLIER. WITHOUT THE INCREASE ON THE PRICES, THEY'RE NOT GOING TO BE ABLE TO PERFORM THE WORK AND WITHOUT THE INCREASE ON THE PURCHASE ORDER, WE WILL BE

UNABLE TO COMPLETE THE TWO PROJECTS. >> SOUNDS LIKE YOU'RE MAKING

THE BEST OF A SORT OF IFFY SITUATION HERE. >> THAT'S CORRECT.

ESPECIALLY WITH THE TIME THAT WE HAVE. >> THANK YOU.

>> MADAM CHAIRMAN, PREPARED TO MAKE A MOTION TO APPROVE. >> IS THERE A SECOND?

>> SECOND. >> PLEASE CALL THE ROLL. >> ROLL CALL.

[Item G7]

>> NEXT ITEM IS AN AMENDMENT TO THE BCR ENVIRONMENTAL CORPORATION CONTRACT FOR

[00:25:11]

RESIDUAL MANAGEMENT. MIKE MARTIN WILL MAKE THE PRESENTATION.

HE IS GOING TO GIVE YOU A PRIMER ON BIO-SOLIDS, WHICH I'M SURE EVERYBODY WAS HOPING FOR

TODAY. >> >> THANK YOU.

GOOD AFTERNOON, MADAM CHAIR, MEMBERS OF THE BOARD. MY NAME IS MIKE MARTIN, OPERATIONS SUPERVISOR FOR WATER RECLAMATION. AND I AM HERE TO REQUEST APP APPROVAL WITH THE CONTRACT FOR BCR.

I HAVE A SHORT PRESENTATION. FIRST OFF, WHAT ARE BIO SOLIDS, U.S. EPA DEFINES NUTRIENT RICH ORGANIC SOILS THAT CAN BE RECYCLED AND APPLIED AS A FERTILIZER.

BIO SOLIDS ARE THE END PRODUCT OF OUR WASTE ACTIVATED SLUDGE PROCESS CONTROL AT THE PLANT.

WASTE CALCULATED AMOUNT THAT OUR OPERATORS DETERMINE DAILY AND WE HAVE TO REMOVE SOME OF THE SOLIDS FROM THE SYSTEM TO MAINTAIN EFFICIENT PLANT CONDITIONS.

THAT WASTE FLOW IS CHEMICALLY DISINFECTED FOR PATHOGEN REMOVAL AND ODOR CONTROL.

CHEMICAL AND DEWATERING PROCESS MAKES A CLASS B CAKE. THIS CAKE IS TURNED INTO TRAILERS AND HAULED AWAY TO LAND APPLICATION SITES. MOSTLY IN CENTRAL FLORIDA RIGHT NOW. A LITTLE MORE BACKGROUND INTO OUR PLANT AND PROCESS.

AS YOU CAN SEE IN THE PICTURE THERE, YOU'RE SEEING THE CHEMICAL STORAGE TANKS.

ON THE RIGHT SIDE YOU'RE SEEING THE TRUCK, TRAILER AND THE CENTRIFUGE.

IT'S BEEN IN SERVICE SINCE NOVEMBER 2014. WASTE SLUDGE IS PUMPED INTO THE CHEMICAL REACTOR, CHLORINE DIOXIDE IS GIVEN A MINIMUM TEN MINUTE HOLD TIME, TO REDUCE ODOR. TREATED SLUDGE IS DIRECTLY SENT TO THE CENTRIFUGE.

THAT CAKE IS DEPOSITED RIGHT INTO THE EMPTY TRAILERS. WE FILL A FULL TRAILER IN ABOUT TWO DAYS, ON A NORMAL PLANT CONDITION SITUATION. HERE IS A COUPLE OF MORE PICTURES. YOU CAN SEE THE UNIT, POLYMER FEED SYSTEM.

THE MAIN CONVEYOR CHUTE AND THE EMPTY TRAILER. YOU'RE SEEING THE CLEAN B CONTROL ROOM. SAFETY EQUIPMENT. YOU'LL SEE THE BRAINS OF THE OPERATION. THIS SYSTEM WAS DESIGNED TO BE A ONE BUTTON OPERATION.

ONCE IT IS COMPLETE AND HAULED OFF TO LAND APPLICATION SITES, WHERE IT'S LITERALLY SPREAD OUT OVER THE GROUND IN A THIN LAYER AND ALLOWED TO BE TREATED AS LIKE A FERTILIZER.

AS YOU'VE HEARD, THIS HAS BECOME A PRACTICE THAT IS UNDER INTENSE POLITICAL SCRUTINY, LATE REGULATORY AND POLITICAL SCRUTINY. LAWMAKERS AND EXPERTS POINT TO NUTRIENT RUNOFF FROM BIO SOLIDS APPLICATION AS ONE OF THE MAJOR CONTRIBUTORS FOR THE GREEN ALGAE. GOVERNOR RON DESANTIS ANNOUNCED A CLEAN WATER MANAGER.

THE WALLS ARE KIND OF CLOSING IN ON OUR CURRENT PRACTICE. SOME LAND USE RESTRICTIONS TO KIND OF FURTHER MAKE MY POINT HERE. ACCORDING TO THE UNITED STATES EPA, FOOD CROPS SHALL NOT BE HARVESTED WITHIN 30 DAYS AFTER BIO SOLIDS APPLICATION, CATTLE AND LIVESTOCK SHALL NOT BE GRAZED ON THIS LAND. TURF AND SOD GROWN ON THE LAND SHALL NOT BE HARVESTED FOR ONE YEAR. ESPECIALLY IF IT HAS A HIGH POTENTIAL FOR PUBLIC EXPOSURE LIKE A BALL FIELD OR PUBLIC PARK.

AS YOU CAN SEE, THIS IS NOT A SUSTAINABLE SOLUTION MOVING FORWARD.

WE PROPOSE TAKING CORRECTIVE STEPS TO BE OUT IN FRONT OF THIS REGULATION BY AMENDING OUR CONTRACT TO START REROUTING OUR SOLIDS TO A NEW COMPOSTING FACILITY.

USUALLY A DRY CLASS A LIKE MAT. MYSELF, AND BILL HUTCHINSON WERE ABLE TO TOUR THE FACILITY.

WE WERE IMPRESSED. THE SITE MANAGER TOOK US HROUGH THE WHOLE PROCESS.

[00:30:05]

THE SITE MANAGER WAS KIND ENOUGH TO SEND A FEW PICTURES OUR WAY.

I'LL GIVE YOU A BRIEF RUN DOWN OF THE PROCESS. YOU CAN SEE THE PICTURE HERE, THE TRUCK AND THE TRAILER ARE COMING IN FROM A WASTE WATER FACILITY.

THE BIO SOLIDS ARE IMMEDIATELY MIXED IN A THREE TO ONE RATIO. AND THE BY-PRODUCT.

THESE PILES ARE TURNED FREQUENTLY DURING THE CURING PROCESS, TO EXPOSE THE ENTIRE PILE TO THE CORRECT TEMPERATURE. IT GOES DIRECTLY INTO ACTIVE BAYS. 1000 CUBIC YARD NUCLEAR BUNKERS.

THERE ARE DIFFUSED PIPES BUILT INTO THE FLOOR. IT CREATES MINIMUM TEMPERATURES FOR CLASS A PATHOGEN REDUCTION. IT'S COLLECTED AND SENT TO A BIO FILTER ON-SITE FOR ODOR SCRUBBING. DIGESTION, COMPOSTING PROCESS, MECHANICAL SCREENING, LARGE CHUNKS ARE COLLECTED AND RECENT TO THE BEGINNING. FINAL PRODUCT, I WAS ABLE TO HOLD SOME IN MY HAND, IT FEELS EXACTLY LIKE A FERTILIZER YOU WOULD BUY AT HOME DEPOT.

VERY IMPRESSED. IT'S CONSIDERED SAFE TO USE AND GENERALLY HAS A HIGH DEGREE OF ACCEPTABLEABILITY BY THE PUBLIC. MAKING IT AVAILABLE TO HOMEOWNERS, RANCHERS, FARMERS. ACCORDING WITH PART 503 OF THE EPA REGULATION, COMPOSTING POSES VERY LITTLE RISK TO THE ENVIRONMENT. I THINK THE MOST SIGNIFICANT IMPACT IS REDUCED DEPENDENCE ON INORGANIC FERTILIZERS WHICH ARE CONTAMINATING THE GROUND AND SURFACE WATERS WITH THEIR NITROGEN AND PHOSPHATE RUNOFF. AS FAR AS OUR PLANT CONCERNED, OUR OPERATING PERMIT DOES ALLOW FOR A TRANSFER TO A BIO SOLIDS FACILITY SUCH AS THE COMPOST.

ALL WE HAVE TO DO IS SUBMIT A LETTER OF THE AGREEMENT, BETWEEN US AND THE NEW FACILITY. ALONG WITH GIVING THE FDEP A 30-DAY NOTICE.

THE LETTER WAS DRAFTED AND SUBMITTED ON OCTOBER 2019. LET'S TALK ABOUT THE COST INVOLVED. OUR CONTRACT COVERS HAULING AND DISPOSAL FEES.

HAULING FEE FOR LAST FISCAL YEAR WAS $43, UP FROM 40. THE NEW PROPOSED HAULING RATE GOES UP TO $74. THE EXTRA COSTS INVOLVED THERE IS A $35 DISPOSAL FEE, DIRECTLY RELATED TO THE O&M COST OF RUNNING THE FACILITY. I HAVE THE QUICK COST PROJECTIONS FOR YOU HERE. FISCAL YEAR, $207,000 IN HAULING COST.

BASED ON A TOTAL OF 5100 WET TONS HAULED AWAY. LAST YEAR, 2019, $197,000 IN HAULING COSTS, BASED ON 4500 WET TONS. AVERAGING TWO YEARS, I CAN PROJECT THAT WE WILL BE PROCESSING AROUND 4800 WET TONS FOR THE NEXT YEAR AND WHICH WILL BRING OUR TOTAL UP TO $360,000. THE TOTAL COST, INCLUDING CHEMICALS, WHICH ARE EASIER TO PREDICT SHOULD BE RIGHT AROUND THE NEIGHBORHOOD OF $558,000.

THE BOTTOM LINE IS GOING TO BE WE PLAN TO SPEND ABOUT 165,000 MORE FOR OUR TOTAL PRICE THAN WE DID LAST YEAR, OVER THE NEXT YEAR. SO I THINK THESE COSTS ARE JUSTIFIED AND WORTHWHILE, CONSIDERING THE ENVIRONMENTAL PUBLIC RELATIONS AND PUBLIC HEALTH BENEFITS TO BE REALIZED. THE CLOSE PROXIMITY WILL REDUCE DOWN TIME AND PROVIDE A MORE RELIABLE DAY TO DAY OPERATION OF OUR FACILITY. I THINK TAKING THESE PROACTIVE STEPS IN GOOD FAITH WILL REALLY DISPLAY THE ENVIRONMENTAL STEWARDSHIP OF FPUA.

AND ALL THIS WOULD SERVE TO REINFORCE THE SPIRIT OF OUR MISSION STATEMENT TO PROVIDE CUSTOMERS WITH ECONOMICAL, RELIABLE AND FRIENDLY SERVICE AND A CONTINUOUS EFFORT TO ENHANCE THE QUALITY OF LIFE IN OUR COMMUNITY. I WOULD BE HAPPY TO ANSWER ANY

QUESTIONS YOU MAY HAVE. >> MADAM CHAIR, I HAVE A QUESTION.

IT REDUCES THE AMOUNT OF NITROGEN AND PHOSPHATE THAT GOES INTO THE WATER, IS THAT

RIGHT? >> CLASS B BIO SOLIDS COMPOST IS A CLASS A PRODUCT IT'S NOT AN INORGANIC FERTILIZER. IT'S LOADED WITH NUTRIENTS

GENERALLY BLAMED FOR ALL KINDS OF GROUNDWATER CONTAMINATION. >> AND I ASSUME THIS OPERATION

[00:35:07]

HAS BEEN IN BUSINESS FOR A WHILE? >> YES, MA'AM.

THEY WERE ACTUALLY BUILT BY BCR ENVIRONMENTAL ORIGINALLY. >> THAT IS IN INDIAN RIVER

COUNTY? >> YES, MA'AM. >> WHICH IS REPRESENTED BY SENATOR MAYFIELD AND SHE IS VERY VERY PROACTIVE IN THE WHOLE BIO SOLID.

>> YES. THE MAYFIELD, I TRIED MY BEST TO READ EVERYTHING.

BUT YES, SHE SPECIFICALLY IS TARGETING BIO SOLIDS AND MANAGEMENT.

>> THIS IS OPERATING IN HER DISTRICT. IT MUST BE >> IT MUST FIT HER STANDARS.

>> YEAH. HER STANDARDS OF EXCELLENCE. >> RIGHT.

>> OKAY. I'M GLAD WE'RE GETTING OUT IN FRONT OF THIS.

BECAUSE THIS IS ABOUT TO BECOME A BIG ISSUE. COMMISSIONER JOHNSON LAST NIGHT AT THE CITY OF FORT PIERCE COMISSION MEETING WAS TALKING ABOUT GOING TO A MEETING AT THE TREASURE COAST REGIONAL PLANNING COUNCIL. I DON'T KNOW IF ANYBODY WENT TO

THAT. >> I'M GOING TO REACH OUT TO COMMISSIONER JOHNSON AND WE'RE

GOING TO SEND HIM A COPY OF THIS PRESENTATION. >> GOOD.

BECAUSE HE IS VERY INTERESTED IN THE TOPIC AND UP ON THIS TOPIC.

I TOLD HIM WE WERE BEING FORWARD THINKING. I WANTED TO HEAR YOUR

PRESENTATION. >> ABSOLUTELY. >> IN CASE WE HAVE A MAINTENANCE PROBLEM, ARE WE PREPARED TO TAKE CARE OF THAT IN A SHORT TIME?

>> WITH THE COMPOSTING FACILITY ITSELF? THE BEAUTY OF THE FACILITY IS THAT IT REQUIRES NO MACHINERY OTHER THAN THE AIR BLOWERS THEMSELVES.

OTHERWISE IT IS JUST A LARGE TENTED FOOTBALL FIELD SIZE BUILDING.

WE DON'T FORESEE ANY MAJOR ISSUES THAT WAY. WE COULD RESTRUCTURE THE AGREEMENT TO REVERT BACK TO LAND APPLICATION. BUT I DON'T FORESEE THAT HAPPENING. BECAUSE THE CLEVERLY SIMPLE WAY THAT THE COMPOSTING PROCESS

WORKS. >> VERY SIMPLE. WONDER WHY MORE PEOPLE AREN'T

IN THAT BUSINESS. >> I MOVE APPROVAL. >> SECOND.

>> CALL THE ROLL. >> ROLL CALL. >> THANK YOU VERY MUCH.

[Item G8]

>> THE NEXT ITEM IS THE AUGUST 2019 FINANCIAL OPERATING RESULTS.

AND NINA PENNEK WILL MAKE THE PRESENTATION. THANK YOU.

IT IS MY PLEASURE TO BE HERE TODAY TO PRESENT TO YOU THE FINANCIAL OPERATING RESULTS FOR AUGUST 2019 AND THE 11 MONTHS THEN ENDED. OUR OPERATING INCOME IS REALLY ONLY $138,000, BUT IT IS UP. EVEN THOUGH OUR CAPACITY REDUCTIONS ARE DOWN $473,000.

WE DO HAVE A YEAR-TO-DATE INCREASE AFTER THE DISTRIBUTION ADJUSTMENT IN THE AMOUNT OF $4.6 MILLION. AND THAT IS UP $1.7 MILLION FROM LAST YEAR.

SO WE ARE HAVING A FAIRLY GOOD YEAR FOR MANY MANY DIFFERENT REASONS.

THE INCREASE IN OPERATING INCOME, WHEN YOU'RE COMPARING IT TO 2018 WAS PRIMARILY DUE TO INCREASES IN RESIDENTIAL AND GENERAL SERVICE SALES. BUT WERE OFFSET IN PART BY INCREASES IN GENERAL AND ADMINISTRATIVE, FIELD OPERATIONS AND DEPRECIATION EXPENSES. A LITTLE BIT OF THIS, A LITTLE BIT OF THAT.

TAKING A CLOSER LOOK AT EACH OF THE INDIVIDUAL SYSTEMS, WE CAN SEE THAT THE ELECTRIC SYSTEM IS HAVING A VERY GOOD YEAR. THE REVENUES WHICH ARE THE RED BARS WERE DOWN FROM 2017 TO 2018, TO THE TUNE OF ONLY ONE PERCENT, IT LOOKS LIKE MORE ON HERE.

BUT IT IS ONLY ONE PERCENT. BUT THE REVENUES FROM 18 TO 19 ARE UP THREE PERCENT.

AND THAT IS VERY GOOD FOR FORT PIERCE, LET ME PUT IT THAT WAY. THE CONSUMPTION, WHICH IS REPRESENTED BY THE BLACK LINE, WAS DOWN TWO PERCENT FROM 2017 TO 2018, BUT HAS BOUNCED BACK FOUR PERCENT 2018 TO 2019. SO REALLY DOING VERY VERY WELL ON THE ELECTRIC SIDE. WATER. OUR OPERATING REVENUES ARE VERY

[00:40:06]

MUCH AFFECTED BY CAPACITY REDUCTIONS THAT HAVE TAKEN PLACE THIS PAST YEAR.

THERE IS NO NEWS THERE. THE DIFFERENCES ARE STILL THE SAME AS THEY WERE FROM PREVIOUS YEAR-TO-DATE PERIODS. THE REASON YOU'RE SEEING THE DECREASE IN 2018, IT'S NOT REALLY IN 2018, IT'S MORE OF INCREASE IN 2019 BECAUSE OF THE CAPACITY REDUCTION THAT WE WERE ABLE TO RECORD GUARANTEE REVENUE CHARGES THAT WE HAD PREVIOUSLY THOUGHT WERE UNCOLLECTIBLE. WE ARE PLEASED TO HAVE THE WIN WIN SITUATION WITH DEVELOPERS.

SO THE OPERATING REVENUES, DEPICTED BY THE BLUE BARS, ALTHOUGH THEY WERE DOWN FOUR PERCENT FROM 2017 TO 2018, THEY BOUNCE BACK UP NINE PERCENT FROM 20182019.

I DON'T KNOW THAT THAT IS GOING TO BE SUSTAINABLE. BECAUSE OF THIS ONE TIME CAPACITY REDUCTIONS BUT WE'LL TAKE IT WHILE WE GOT IT. AND WE ALSO HAD A THREE PERCENT RATE INCREASE IN OCTOBER OF 2018 WHICH IS ALSO PARTIALLY ATTRIBUTABLE TO THAT.

BUT THAT IS NOT THE LION'S SHARE FOR SURE. CONSUMPTION DEPICTED BY THE BLACK LINE WAS DOWN THREE PERCENT FROM 2017 TO 2018, BUT BOUNCED BACK FIVE PERCENT FROM 2018 TO 2019. SO WE'RE SELLING MORE WATER. ON THE WASTE WATER SIDE, OPERATING REVENUES FROM 2017OMO 2018 WERE UP THREE PERCENT. AND UP ANOTHER TWO PERCENT FROM 2018 TO 2019. BUT AGAIN, AFFECTED BY THOSE CAPACITY REDUCTIONS.

THEY WERE UP THREE PERCENT FROM 2018 TO 2019. SO WE ARE PROCESSING MORE WASTE WATER AND THEREFORE REVENUES ARE INCREASING. ON THE GAS SIDE, LOOKING GOOD.

REVENUES WERE UP ONE PERCENT FROM 2017 TO 2018, BUT HAVE BEEN UP SIX PERCENT FROM 2018 TO 2019. SO AGAIN, VERY VERY GOOD RESULTS.

AS WELL AS THE AMOUNT OF GAS CONSUMED UP THREE PERCENT FROM 2017 TO 2018 AND UP EIGHT PERCENT FROM 2018 TO 2019. NOW, THE GAS CONTRACT CONSUMPTION, WHICH IS PART OF WHAT YOU'RE SEEING HERE WAS UP FOUR PERCENT, THAT RESULTED IN A THREE PERCENT INCREASE IN CONTRACT REVENUES. SO WE'RE VERY VERY PLEASED TO SEE THE RESULTS ON THE NATURAL GAS SIDE AS WELL. HOW MUCH REVENUE DO WE HAVE TO PAY OFF OUR DEBT? AND WE HAVE A MINIMUM IN OUR COVENANTS OF 1.25. THE DEBT SERVICE COVERAGE RATIO FOR THE 12 MONTHS ENDED AUGUST 2019 WAS 3.19 WHICH IS OBVIOUSLY MORE THAN DOUBLE THE 1.25 REQUIRED BY FPUA'S BOND COVENANTS. AND THAT IS SOMETHING THAT WE WOULD LIKE TO CONTINUE TO SEE ALSO, ANOTHER GOOD INDICATOR OF OUR FINANCIAL HEALTH.

AND THAT IS ALL I HAVE. IF THERE ARE ANY COMMENTS OR QUESTIONS, I WOULD BE HAPPY TO

ADDRESS THEM AT THIS TIME. >> THANK YOU, NINA. >> THANK YOU.

>> THE NEXT ITEM IS ALWAYS A POPULAR ITEM WITH THE BOARD. NINA WILL MAKE THE PRESENTATION

[Item G9]

AND RECOMMENDATION TO DECREASE THE PCA FROM NEGATIVE $8 TO NEGATIVE TEN DOLLARS.

1000 HOURS EFFECTIVE DECEMBER 1ST. >> I AM HERE TODAY TO PROVIDE YOU INFORMATION ABOUT SEPTEMBER'S POWER COSTS AND UPDATED PROJECTIONS THROUGH SEPTEMBER 2020. AS YOU'RE AWARE, THE POWER COST ADJUSTMENT OR PCA IS THE MECHANISM BY WHICH FPUA RECOVERS POWER COSTS THAT ARE IN EXCESS OF THE 79.52 BASE

[00:45:05]

COST, WHICH IS INCLUDED IN THE BASE RATE. NOW, THE COST OF POWER PURCHASED FROM FMPA FOR THE MONTH OF SEPTEMBER WAS BILLED AT A RATE OF 59.94 FOR A THOUSAND KILAWATT HOURS. DECREASE OF 2.99, AS COMPARED TO AUGUST.

AS A RESULT, THERE WAS AN OVER-RECOVERY FROM THE CUSTOMER FOR THE MONTH OF SEPTEMBER, WHICH TOTALED OVER A MILLION DOLLARS. THE CUMULATIVE OVER-RECOVERY WAS ABOUT $4.6 MILLION, AS OF SEPTEMBER 30TH, 2019. THE GRAPH BEFORE YOU DEPICTS FOUR PCA OPTIONS. EACH LINE REPRESENTS WHAT THE OVER-RECOVERY WOULD BE IF THE PROJECTIONS ARE CORRECT. AND THESE PROJECTIONS ARE PREPARED BY FINANCIAL CONSULTANTS WHICH ARE BASED ON FINANCIALS PREPARED BY FLORIDA MUNICIPAL POWER AGENCY.

TWO DOLLARS DECREASE IS RECOMMENDED AT THIS TIME. THAT IS THE GREEN LINE.

THAT IS THIS ONE HERE. WE HAVE ALSO DISPLAYED AN OPTION TO MAKE NO CHANGE TO THE PCA. AND THAT IS THE GRAY LINE ON TOP.

THAT IS GOING TO -- THAT WOULD HAVE CREATED A RESULT OF WE WOULD CONTINUE TO OVER -- WE WOULD OVER-COLLECT MORE. SO THAT IS THE GRAY LINE FOR NO CHANGE.

WE'VE ALSO SHOWN HERE AN OPTION TO DECREASE THE PCA BY $3. AND THAT IS THE RED LINE.

AND OBVIOUSLY THAT MEANS THAT WE WOULD BE GIVING BACK MORE AND OUR OVER COLLECTION WOULD BE LESS. AND LAST BUT NOT LEAST, WE ARE ALSO DISPLAYING AN OPTION TO DECREASE THE PCA BY FIVE DOLLARS. AND THAT IS THE ORANGE LINE ON THE VERY BOTTOM. AND THE BLUE DOTTED LINES ARE THE, IS THE RANGE OF THE BOARD RECOMMENDED OVER-RECOVERY. THAT IS WHERE WE WANT TO BE AND THAT IS WHAT WE'RE AIMING FOR BASICALLY, IS WITHIN THAT RANGE. SO SINCE AUGUST FORECAST, FMPA HAS ESTIMATED THE PRICE OF PURCHASE POWER FOR THE UPCOMING MONTHS DECREASED 6/10 OF A PERCENT. WE HAD OBVIOUSLY A VERY NICE MONTH.

BUT LOOKING FORWARD, IT WASN'T QUITE AS GOOD LOOKING. BUT DUE TO THE CUMULATIVE OVER-RECOVERY FROM FPUA'S CUSTOMERS, STAFF IS RECOMMENDING THAT THE BOARD APPROVE A DECREASE TO THE POWER COST ADJUSTMENT OF $2 PER ONE THOUSAND KILOWATT HOURS, NEGATIVE $8 TO NEGATIVE TEN DOLLARS. EFFECTIVE DECEMBER 1ST, 2019.

DO YOU HAVE ANY COMMENTS OR QUESTIONS? >> MADAM CHAIR, SO IF WE, SO THE GREEN LINE IS PRETTY HIGH UP FOR OUR OVER-RECOVERY? IS THE WAY I'M LOOKING AT IT.

SO IF WE DID $2 NOW, WE MIGHT DO AN ADDITIONAL DOLLAR AS WE WATCH IT?

>> THAT IS ALWAYS AN OPTION. >> YEAH. I WOULD KIND OF LIKE TO GET OVER THE WINTER HUMP AND MAKE SURE THAT GAS PRICES DON'T GO OUT OF CONTROL BECAUSE OF AN

ARCTIC VORTEX OR SOMETHING LIKE THAT. >> THIS IS LOOKING GOOD RIGHT

NOW, BUT I KNOW IT COULD CHANGE. >> ANY OTHER COMMENTS?

MOTION TO APPROVE? >> SO MOVED. >> SECOND.

>> CALL THE ROLL. >> ROLL CALL. >> NEXT ITEM IS APPROVAL FOR

[Item G10]

THE CONTRACT FOR AMI. IF YOU RECALL, WE GAVE YOU A PREVIEW OF THE CONTRACT AT THE SEPTEMBER 17TH MEETING. THE CONTRACT HAS BEEN FINALIZED AND SIGNED AND PAUL AND JOSH

WILL MAKE THE PRESENTATION. >> THANK YOU, MADAM CHAIR, MEMBERS OF THE BOARD.

I'M PLEASED TO LET YOU KNOW THAT THERE IS LIGHT AT THE END OF THE TUNNEL FOR THIS.

[00:50:01]

WE'VE BEEN GOING ON WITH THIS FOR OVER 14 MONTHS RIGHT NOW, BETWEEN THE BIDS, EVALUATIONS AND NEGOTIATIONS, AND WE'RE FINALLY TO A POINT TO BE ABLE TO PRESENT THIS TO YOU.

I'M GOING TO DO A BRIEF PRESENTATION, SIMILAR TO WHAT WE DID AT THE SEPTEMBER 17TH MEETING, BY ALL MEANS, ASK QUESTIONS IF YOU FEEL NECESSARY.

I WOULD LIKE TO RECOGNIZE JERRY COOLEY WITH HONEYWELL IN CASE YOU MIGHT HAVE ANY QUESTIONS FOR HIM. HE IS ONE OF OUR PARTNERS IN WORKING TOWARDS THIS NEGOTIATED CONTRACT. SO BRIEFLY, WHAT AMI IS, IT'S A TWO-WAY COMMUNICATION WITH OUR METERS OUT IN THE FIELD. IT'S BASICALLY GOING TO PROVIDE A BETTER CUSTOMER EXPERIENCE FOR ALL OF FPUA'S CUSTOMERS. WE WILL BE ABLE TO READ METERS MORE OFTEN AND GET INFORMATION QUICKER TO BE ABLE TO RESPOND TO POTENTIAL PROBLEMS. SO BRIEFLY, HERE ARE SOME BENEFITS THAT WE WENT OVER LAST TIME TO FPUA. A COUPLE THAT I WANT TO HIGHLIGHT IS WE'RE GOING TO BE ABLE TO DO MORE PROACTIVE MAINTENANCE.

BE ABLE TO DO REMOTE DISCONNECTS AND RECONNECTS. SAME DAY TURN-ONES.

CUSTOMER SERVICE INSPECTION PROGRAM, HELP OUR CUSTOMERS OUT WITH REPLACEMENTS IF NECESSARY ON THE ELECTRIC SIDE AND WORK WITH THEM ON THE WATER AND GAS SIDE AS WELL.

SOME OF THE BENEFITS TO OUR CUSTOMERS, WE'RE GOING TO BE MORE PROACTIVE WITH OUR CUSTOMER SERVICE. BE ABLE TO SEE THIS DATA ON A DAILY BASIS, TO BE ABLE TO WORK WITH CUSTOMERS IF THEY HAVE A LEAK. LET THEM KNOW BEFORE THAT 30-DAY BILL SHOWS UP. WE'RE GOING TO BE LOOKING AT THE POSSIBILITY OF DOING ADDITIONAL PAYMENT OPTIONS. PAY AS YOU GO TIME OF USE, MAYBE FLEXIBLE BILLING SCHEDULES. THERE WILL BE A CUSTOMER INFORMATION PORTAL THAT WILL BE GOING OUT TO OUR CUSTOMERS, TRACK THEIR OWN USAGE, TO BE ABLE TO DETERMINE HOW THEY'RE GOING TO SAVE MONEY WITH THEIR USAGE. THIS IS A BIG NUMBER.

WHAT DOES IT COST? ESTIMATED TOTAL COST IS OVER $7.6 MILLION.

YOU CAN SEE THERE THE BREAKDOWN, 3.7 FOR ELECTRIC. 1.6 FOR WATER.

ALMOST $400,000 FOR GAS AND THEN YOU GET INFRASTRUCTURE AND IMPLEMENTATION CHARGES AND INTEGRATION WITH OUR CURRENT SYSTEMS OF ROUGHLY $2 MILLION. THE ESTIMATE THERE IS OVER A SIX-YEAR PERIOD. PART OF THAT ESTIMATE IS BASED ON HOW QUICKLY WE CAN GET THE METERS DEPLOYED. BUT IT ALSO HAS TO DO WITH GROWTH.

AS WE GROW OUR SYSTEM, IT MEANS WE NEED TO PURCHASE MORE METERS AND EXPAND OUR INFRASTRUCTURE, WHICH MEANS THESE COSTS MAY GO UP. BUT IN THE CONTRACT ITSELF, IT DOES HAVE A SET COST PER METER OVER THAT SIX-YEAR PERIOD. SO AT THE END OF THE DAY, HOW ARE WE GOING TO PAY FOR THIS AT FPUA? ONE OF THE THINGS, IF YOU REMEMBER BACK IN FEBRUARY OF 2018, WE SOLD PART OF OUR JOINTLY OWNED TRANSMISSION LINE TO FP&L. WE'RE GOING TO USE THIS LITTLE OVER TWO MILLION DOLLARS AS SEED MONEY TO HELP INITIATE THIS PROGRESS FOR FORT PIERCE. WHICH LEAVES ROUGHLY $5.6 MILLION LEFT, OF WHICH WE'RE GOING TO BE LOOKING AT DIFFERENT OPTIONS.

ONE IS CAN WE ABSORB THAT IN OUR CURRENT BUDGET THE WAY THAT IT'S SET UP THROUGH OUR CAPITAL EXPENDITURES, THROUGH YEARLY REPLACEMENTS OF METERS OR WILL WE HAVE TO FUND IT THROUGH A BOND ISSUANCE. WE GOT TO GET TO THAT POINT OF NEEDING ALL OF THAT MONEY FIRST. OUR NEXT STEPS IS TO DEVELOP A MASTER SCHEDULE AFTER APPROVAL TONIGHT, WE'RE LOOKING AT PROBABLY 30 TO 60 DAYS TO PUT TOGETHER A MASTER SCHEDULE OF HOW WE'RE GOING TO DEPLOY THIS. WE'RE GOING TO BE DOING PUBLIC OUTREACH TO MAKE SURE OUR CUSTOMERS KNOW WHAT IS GOING ON. YOU WOULD BE SURPRISED, CUSTOMERS ARE USED TO SEEING THAT METER READER COME BY ONCE A MONTH.

KIND OF LIKE PEOPLE COMING IN TO THE BILLING OFFICE TO PAY CASH.

OTHERS LIKE TO PUSH A BUTTON. WE'RE GOING TO BE DOING PUBLIC OUTREACH TO MAKE SURE CUSTOMERS KNOW THAT WE CARE ABOUT THEM. WE'RE ALSO GOING TO BE INSTALLING AND ORDERING MATERIAL WHICH WE ANTICIPATE BEING ROUGHLY A 60 TO 90-DAY PROCUREMENT PROCESS, LOOKING AT INSTALLATION OF INFRASTRUCTURE IN THE JANUARY AND FEBRUARY TIME FRAME.

ONE OF THE THINGS THAT WE'RE GOING TO BE LOOKING AT IS -- CELL PHONES USED TO.

YOU DON'T HAVE TO REMEMBER ANYONE'S PHONE NUMBER. THERE'S GOING TO BE INTERNAL CHANGES WITHIN FPUA THAT WE'RE GOING TO HAVE TO TACKLE AS WE MOVE FORWARD WITH THIS.

YOU HEARD ME TALK A LITTLE BIT ABOUT AN ADVANCED DEPLOYMENT. THIS IS WHAT WE HAD DETERMINED THROUGH OUR WATER GAS AND ELECTRIC DEPARTMENTS AS OUR ADVANCED DEPLOYMENT AREA.

WHAT WE LOOKED AT IS WHERE IN OUR AREA DO WE HAVE ALL THREE UTILITIES AND TWE WANTED TO MAE

[00:55:13]

SURE THAT WE'RE ABLE TO TEST THE TECHNOLOGY OUTSIDE THE ELECTRIC TERRITORY.

THAT IS WHERE YOU SEE SOME ON THAT BOTTOM MIDDLE IN THE GAS TERRITORY DOWN AND ON THE RIGHT-HAND SIDE, IS THE WATER TERRITORY OUT ON THE BEACH. WHAT WE WANTED TO DO IS LIKE I SAID, MAKE SURE THAT ALL OF THE TECHNOLOGY THAT WE'RE LOOKING AT, ALL OF THE AREAS THAT WE'RE PLANNING ON DEPLOYMENT WILL BE DONE. THIS PROCESS IS GOING TO TAKE ROUGHLY SIX TO EIGHT MONTHS, A LOT OF TESTING AND CONVERGING AND TALKING WITH OUR VENDORS AS WELL AS INTERNALLY. IF WE DECIDE THAT THIS IS A GREAT SOLUTION FOR US AND ALL OF THE TESTS COME BACK, WE'RE GOING TO GO AHEAD AND MOVE TO FULL DEPLOYMENT OF THE ENTIRE SYSTEM OVER THE NEXT FIVE AND A HALF YEARS. WITH THAT, I WILL TURN IT OVER

TO JOSH TO TALK ABOUT THE CONTRACT. >> THANK YOU.

>> SO AFTER SOME EXTENSIVE NEGOTIATIONS, WE HAVE NOW FINALIZED THE CONTRACT.

WHICH IS UP BEFORE YOU FOR APPROVAL AND SIGNATURE. THE NEGOTIATIONS WENT WELL.

I BELIEVE WE GOT WHAT I WOULD DESCRIBE AS THE BEST DEAL WE COULD GET FROM HONEYWELL.

THEY APPROACHED IT AS A PARTNER AND OUR TEAM DID A GOOD JOB NEGOTIATING THE CONTRACT.

SO IT WAS A TEAM FROM FPUA, INCLUDING PAUL AND MYSELF, A NUMBER OF OTHER INDIVIDUALS, MR. TOMPACK. I ESPECIALLY WANT TO THANK NANCY.

SHE DID A GREAT JOB WITH THE PRICING. THE INITIAL CONTRACT TERM IS A SIX-YEAR TERM, PAUL SAID EARLIER THERE IS A PRICING BREAKDOWN.

ADVANCED DEPLOYMENT. ONCE WE HAVE THAT PROOF OF CONCEPT AND ACHIEVE MILESTONES FOR ADVANCED DEPLOYMENT, WE MOVE ON TO A FULL SYSTEM DEPLOYMENT.

THE CONTRACT COMPONENTS THAT I'M GOING TO DISCUSS IN THE NEXT FEW SLIDES BREAK OUT WITH THE SMART GRID SOLUTIONS AGREEMENT. OVERALL CONTRACT ITSELF.

WITHIN THAT THERE IS A STATEMENT OF WORK, SYSTEM COMPONENTS FOR EACH PART OF THE SYSTEM. AND THEN A PRICING AND INSURANCE TERMS AND SERVICE LEVEL AGREEMENT, WHICH INCLUDES THE SYSTEM ACCEPTANCE TESTING AND THAT SLA IS HOW WE MONITOR AND MAKE SURE THAT THEY'RE PROVIDING US THE SERVICES THAT THEY AGREED TO.

SO THE GENERAL TERMS AND CONDITIONS ARE IN THAT SMART GRID SOLUTIONS AGREEMENT.

THAT IS WHERE YOU'LL FIND THE COMMERCIAL TERMS AND THESE ARE THE HEAVILY NEGOTIATED PORTION OF THE CONTRACT IS IN THIS SECTION. WE FOUGHT HARD TO GET FPUA'S STANDARD REQUIREMENTS AND INCLUDE THOSE IN THE AGREEMENT. WITH THE SYSTEM ACCEPTANCE TESTING. AND WE MOVED ON TO PAYMENT AND DELIVERY TERMS, A PRICING CAP ON INCREASES, WHICH WAS IMPORTANT TO US. YOU KNOW, TO PROTECT FPUA AND AVOID UNACCEPTABLE RISKS. AND ALSO YOU KNOW, THE WARRANTY, THE LIMITATION OF LIABILITY, REMEDIES, IN CASE THERE ARE ISSUES WITH THE SLA. AND HOW WE ENSURE THAT THEY MEET THOSE REQUIREMENTS. AND THE INSURANCE AND RISK ALLOCATION WAS A PRETTY INTENSIVE BIT OF BACK AND FORTH BETWEEN US AND ELLISTER. SYSTEM LIFECYCLE.

GUARANTEE FUTURE LIABILITY. TEN-YEAR COMPATIBILITY OUT OF THIS SYSTEM.

SO THREE YEARS DOWN THE ROAD WE'RE NOT GOING TO HAVE TO REPLACE PIECES.

WE'RE GOING TO BE GETTING A LOT OF DATA THROUGH THE SYSTEM THAT WE NEVER HAD BEFORE.

FLORIDA HAS PASSED NEW LAWS THAT PROTECT FROM PRIVACY ISSUES, SO INDIVIDUAL DATA ISN'T OUT THERE AND AVAILABLE. THERE IS ALSO THE SERVICE LEVEL AGREEMENT AS I MENTIONED BEFORE AND SYSTEM REQUIREMENTS. SO ONE OF THE SYSTEM COMPONENTS IS THE HIMS. HONEYWELL ENERGY ACCESS MANAGEMENT SYSTEM. SECURE HOSTED ENVIRONMENT.

IN THAT ENVIRONMENT, THERE IS A UTILITY PORTAL AND A CUSTOMER PORTAL.

THE CUSTOMERS CAN GO ONLINE AND SEE THEIR USAGE DAY BY DAY, WHICH IS GOOD FOR THEM TO TRACK THE USAGE, KNOW WHAT IS COMING UP. GOOD IDEA TO ESTIMATE THEIR BILLS. IT ALSO SUPPORTS CLIENT BILLING INTEGRATION.

SUPPORT, DISASTER RECOVERY AND BUSINESS CONTINUITY IN THE CASE OF DISASTERS.

ANOTHER COMPONENT IS THE FIELD SENSE METER SENSE, HARDWARE AND SOFTWARE COMPONENTS.

SYSTEM COMPONENTS, MAINTENANCE, MOBILE APPLICATIONS AND CONFIGURATIONS TOOLS WHEN WE'RE SETTING UP THE SYSTEM AT THE CUSTOMER SITE AND OUR OWN SITES.

DATA COLLECTION AND COMMUNICATION SYSTEM TO GET THE DATA FROM THE METERS BACK TO

[01:00:04]

THE HIMS SYSTEM AND ULTIMATELY FPUA. SERVICE LEVEL AGREEMENTS, INCLUDED, SYSTEM PLANNING, CONFIGURATION, DETAILS THE FUNCTIONALITY, INCLUDES THE DETAILS ON THE ADVANCED DEPLOYMENT, AS PAUL DISCUSSED AND THEN THERE IS REPORTING AND COMPLIANCE FROM HONEYWELL TO US. SYSTEM TESTING AND ACCEPTANCE AND THEN THE UTILITY PORTAL, IT OUTLINES EXACTLY WHAT IS GOING TO BE PROVIDED BY HONEYWELL ON THE UTILITY PORTAL, WHICH IS FPUA'S SIDE OF LOOKING AT THE CUSTOMER USE AND DATA.

AND ALSO HAS OUTAGE REPORTING. CONSUMER PORTAL IS THE CUSTOMER'S ONLINE VERSION, WHAT THEY WOULD SEE AS WE SET UP THE SYSTEM. IT'S A SELF-SERVICE ACCOUNT ACCESS. GIVES THEM THEIR CONSUMPTION, THEIR USER INFORMATION AND USE INFORMATION. THEIR RATE COMPARISONS FROM MONTH TO MONTH OR YEAR-OVER-YEAR. AND THEY WILL KNOW OUTAGE INFO IMMEDIATELY, SO THAT INFORMATION WILL BE POSTED UP IF THEY THINK THEY'RE OUT, THEY CAN CHECK THAT EITHER ON THEIR PHONES OR YOU KNOW, BY THE INTERNET AT THE HOUSE. AND THEN THE SERVICE LEVEL AGREEMENT, AGAIN IS DESIGNATED SERVICE LEVELS, SYSTEM PERFORMANCE, SYSTEM TESTING AND VALIDATION. THAT WILL BE A MONTHLY PROCESS WE'RE GETTING A MONTHLY REPORT FROM HONEYWELL, TELLING US EXACTLY WHAT THEY'RE DOING, MEETING THE REQUIREMENTS IN THE CONTRACT. IF THEY'RE NOT MEETING CERTAIN STEPS, THERE IS AN ESCALATION PROCESS WHERE THEY AGREE TO FIX IT AND AGREE TO COME VISIT US AND EXPLAIN HOW THEY'RE GOING TO IMPROVE WHAT THEY'RE DOING. AND THEN IT ESCALATES THERE IN TO REPAYMENT, IF IT BECOMES NECESSARY. WE'RE NOT EXPECTING TO SEE THAT.

AT LEAST WE PUT IN REMEDIES THERE FOR THAT. >> THE PAGE BEFORE YOU, YOU DONE SHUT IT OFF NOW. TWO PAGES BACK. LET'S TALK ABOUT THE SYSTEM, THE LIFE SYSTEM. WHAT YOU CONSIDER LIFE SYSTEM REQUIREMENT.

>> WE PUT IN A 10-YEAR COMPATIBILITY. I BELIEVE THAT IS THE SYSTEM COMPATIBILITY. THEY HAVE GUARANTEED A 10-YEAR COMPATIBILITY TO THE SYSTEMS THAT WE'RE BUYING. IF THEY MAKE UP GRADES, OUR SYSTEM WILL STILL WORK WHAT WE HAVE PURCHASED IN TERMS OF SYSTEMS AND SOFTWARE AND COMPONENTS WILL WORK FOR THE

TEN-YEAR PERIOD. >> WHAT ABOUT THE MAINTENANCE ALONG THE TEN-YEAR SPAN?

DO YOU DO IT YEARLY? >> THE MAINTENANCE ON THE SOFTWARE AND THEIR SYSTEMS IS INCLUDED. IT'S PART OF A FEE THAT WE PAY YEAR-OVER-YEAR.

>> I HAVE A QUESTION CONCERNING YOUR CUSTOMERS COMPONENT, YOUR LAST PAGE.

WILL THE CUSTOMER HAVE ACCESS TO THE WEBSITE OR YOU GOT THE WEBSITE AND THEY HAVE TO TAP

INTO ONLINE. >> THE WAY THAT WE'RE PROPOSING THIS IS TO BE A MOBILE APP.

THEY WILL BE ABLE TO PULL UP THE PHONE AND HAVE IT ON THEIR PHONE OR THEY WILL BE ABLE TO LOG INTO THEIR ACCOUNT AND DO THAT. ONE OF THE OTHER PROJECTS THAT WE'RE WORKING ON IS TO BE ABLE TO BRING IN EVERYTHING INTO ONE PORTAL, SO TO SPEAK.

WHEN YOU LOG IN, YOU CAN PAY YOUR BILL, LOOK AT YOUR USAGE, YOU CAN DO ANYTHING ELSE WITH YOUR ACCOUNT THAT WE HAVE ACCESS AND SET UP FOR, WE'RE KIND OF LOOKING AT THAT, BUT THE CUSTOMER PORTAL ITSELF WILL BE ABLE FOR YOU TO COME IN AND LOOK AT HOW MUH USAGE AND THEN LOOK AT THE TRACKING MECHANISM. SO IF YOU WANT TO SAY I USED 1000 LAST MONTH, WHAT AM I ON TRACK TO DO THIS MONTH. YOU WILL BE ABLE TO SEE, ARE YOU CLOSE, HIGHER, TRACKING MECHANISMS THAT WAY. THE CUSTOMER IS GOING TO BE ABLE TO TRULY SEE WHAT THEIR USAGE IS FOR EACH OF THE METERS. AND ONCE WE GET THIS UP AND ROLLING, WE WILL DO A DEMO FOR YOU GUYS AT A MEETING, JUST SO THE CUSTOMERS KNOW.

IT'S GOING TO BE PART OF OUR OUTREACH AS WELL, TOWN HALL MEETINGS, TO SHOW THEM WHAT

WE'RE ROLLING OUT SO THAT THE CUSTOMERS ARE AWARE OF THAT. >> MADAM CHAIR.

SO YOU CAN KNOW YOUR USAGE RIGHT NOW, BUT YOU ONLY KNOW IT WHEN YOU GET YOUR BILL, IS THAT

CORRECT? >> THAT IS THE WAY IT IS SET UP RIGHT NOW.

BASICALLY 30 DAYS PAST. BECAUSE WE'LL READ 28 TO 30 DAYS.

WHATEVER USAGE YOU HAD PRIOR TO THAT, THAT IS THE INFORMATION THAT WE'LL BE ABLE TO GIVE YOU

TODAY. >> RIGHT. IMMEDIATELY.

SO IT WILL BE A MUCH MORE IMMEDIATE THING. >> YES.

>> AND ON THE CUSTOMER'S BILL, WILL THERE BE A CHARGE FOR THIS METER?

>> NO, THERE WILL NOT. IT'S ALL GOING TO BE BASED INTO THE CURRENT RATES THAT WE HAVE

SET UP FOR THE CUSTOMERS. >> YOU KNOW, IN REGARDS TO THE SYSTEM LIFECYCLE, WE HIT YEAR

[01:05:07]

11, THINGS START TO BECOME OBSOLETE, WHAT IS THE PLAN OF ACTION MOVING FORWARD? IS THIS SOMETHING THAT WE'RE GOING TO HAVE TO BUDGET FOR, HAVE A 10-YEAR RESERVE FOR

EQUIPMENT PLACEMENT AND UPGRADES? >> IT WILL.

WE DO THAT NOW. ELECTRIC METERS USED TO BE 25, 30 YEARS.

AS THEY'VE GONE TO ELECTRONIC VERSIONS, THE LIFECYCLE HAS GOTTEN LESS AND LESS.

EVERY YEAR WE PUT ON THE ELECTRIC SIDE, 3 TO $400,000 A YEAR TO REPLACE METERS. METERS THAT ARE FAILING BECAUSE THEY'RE NOT OBSOLETE, BUT THEY'RE FAILING BECAUSE THEY HAVE GONE PAST THEIR LIFECYCLE EXPECTANCY. IT'S SIMILAR TO WHAT ERIC MYER HAD TALKED ABOUT WITH THE TRANSFORMERS. THE TRANSFORMERS HAD EXCEEDED THEIR EXPECTED LIFE AND MORE EXPENSIVE TO CONTINUE TO OPERATE THEM THAN TO JUST REPLACE THEM. METERS YOU'RE TALKING 10, 15 YEARS TOPS, YOU'RE LUCKY IF YOU'RE GETTING THAT OUT THERE BECAUSE OF THE CONDITIONS THAT WE HAVE WITH THE SUN AND UV, A LOT OF THE METERS ARE HARD TO READ. SOME OF THE TECHNOLOGY IN THERE, IT GETS OLD, IT'S LIKE A PHONE OR A COMPUTER, YOU BUY A COMPUTER TODAY, IT'S PRETTY MUCH OBSOLETE IN A WEEK'S TIME. SO YOU'RE HAVING TO UPGRADE AND DO THE TYPES OF UPGRADES FOR A SYSTEM LIKE THIS. WE'LL BUDGET FOR THAT. IN 10 YEARS, 15 YEARS, I CAN'T GUARANTEE THAT WE WON'T HAVE A CAPITAL EXPENDITURE TO REPLACE SOME OF THIS EQUIPMENT.

SO THAT IS ONE OF THE THINGS P MOVING FORWARD, HOW CAN WE MAKE WHAT WE'RE DOING TODAY MORE EFFICIENT TO BE ABLE TO OFFSET SOME OF THE COSTS IN THE FUTURE.

>> WE EXPECT AT LEAST TO HAVE A GOOD SOLID TEN YEARS. >> YES.

>> BASED ON THE WARRANTIES. >> WE'RE NOT GOING TO HAVE ANY PROBLEMS WITH THE SOFTWARE AND

COMPONENTS? >> CORRECT. AND WE'VE GOT EXTENDED WARRANTIES ON THE METERS AS WELL TO GET US TO THE PERIOD OF TIME.

>> SOFTWARE COMPATIBILITY IS THE KEY, WE DON'T WANT TO GET VERSIONED OUT.

WE WANT THE SOFTWARE TO BE ABLE TO BE COMPATIBLE WITH WHAT WE'RE USING SO WE DON'T HAVE TO MAKE THESE LARGE SYSTEM UPGRADES AND WE'RE STUCK BEHIND THE 8-BALL.

>> DO YOU THINK WE'RE GOING TO HAVE TO DO A LARGE SYSTEM UPGRADE AT THE END OF TEN

YEARS? >> TOUGH QUESTION TO ANSWER, I WOULD EXPECT THAT AS WE GET THROUGH FIVE SIX, SEVEN YEARS, WE WILL BE ADVANCING SO WE WON'T HAVE TEN-YEAR BACK SYSTEMS. THAT IS A LONG TIME IN THE LIFECYCLE OF WHAT WE'RE TALKING ABOUT. I WOULD EXPECT THAT WE WOULDN'T HAVE MANY SYSTEMS STUCK FROM THAT PERIOD OF TIME. WE WILL BE UPGRADING AS WE GO, AS TECHNOLOGY IMPROVES.

>> MADAM CHAIR. >> YES, SIR. >> A COUPLE MORE THINGS.

FRANK TALKED ABOUT ONE PART. BUT I'M CONCERNED ABOUT ANOTHER PART OF IT.

SAY IN FIVE YEARS OR SIX, WOULDN'T YOU BE ABLE TO TELL WHAT IS HOLDING ON GOOD TO REACH THAT TEN YEARS? WOULDN'T YOU HAVE SOME WAY TO START CHECKING AND EVALUATING

YOUR OWN SYSTEM? >> YEAH. WE'LL BE DOING CONTINUOUS MONITORING ON THE QUALITY OF THE EQUIPMENT AS WE GO THROUGH. AS I TOLD HONEYWELL, WHEN WE FIRST STARTED THIS THROUGH THE ADVANCED DEPLOYMENT SECTION, I'M GOING TO SET UP A SPECIAL ACCOUNT AND I'M GOING TO TRY TO BREAK IT. I'M GOING TO TRY TO BREAK THE METER, JUST TO MAKE SURE THAT EVERY ASPECT THAT IS IMAGINABLE OUT THERE HAS BEEN TESTED IN THE SYSTEM. AS WE GO THROUGH IT, WE'RE GOING TO CONTINUE, AS JOSH HAD MENTIONED, WE HAVE CRITERIA IN THE CONTRACT THAT SAYS THAT THEY HAVE TO MEET A CERTAIN SERVICE LEVEL. SO IF WE START SEEING THOSE SERVICE LEVELS DEGRADE DOWN, IT'S GOING TO BE TIME FOR THEM TO COME UP WITH A SOLUTION HOW TO BRING THEM BACK UP TO ACCEPTABLE LEVELS, OR THERE IS PENALTY CLAUSES ALSO IN THE CONTRACT.

FOR THAT PURPOSE. >> WHAT ARE WE GOING TO DO ABOUT ANOTHER PART OF THE

EVALUATION COMPLAINTS FROM CUSTOMERS. >> WE'RE HOPING THAT OUR CUSTOMER OUTREACH HANDLES A LOT OF COMPLAINTS. IT SOUNDS GOOD BUT WE KNOW THERE WILL BE CUSTOMER COMPLAINTS. A LOT OF COMPLAINTS IS GOING TO BE BASED ON EDUCATION OF THE CUSTOMER, EDUCATING THEM WHAT WE'RE DOING AND WHY WE'RE DOING IT. HOW IT'S A BENEFIT TO THE CUSTOMER BUT ALSO FPUA.

GET MORE AND MORE EFFICIENT, WE MAY BE ABLE TO COME UP WITH DIFFERENT PROGRAMS TO BE ABLE TO POTENTIALLY LOWER OUR RATES AS WE START DOING SOME OF THESE DEPLOYMENTS MOVING INTO THE FUTURE. A LOT OF IT IS GOING TO BE CUSTOMER EDUCATION.

>> ONE OF THE OTHER PIECES IS POWER QUALITY. THIS SYSTEM WILL GIVE US MORE INSIGHT ON THE USER END, AND WE WILL BE ABLE TO SEE SYSTEMS ABOUT TO BREAK DOWN OR FAIL IN

[01:10:02]

ADVANCE TO WHEN THERE IS A POWER OUTAGE, OR A SYSTEM GOES DOWN AND THEY HAVE DAMAGE.

>> ONE OF THE THINGS THAT WE'RE LOOKING AT, ACTUALLY GOING TO BE EMPLOYING WITH THIS PROCESS, WE'RE GOING TO BE VISITING EVERY METER. EVERY HOUSEHOLD.

AS WE'RE DOING THAT, WE'RE GOING TO DO A PHYSICAL INSPECTION OF THAT METER SOCKET. WHERE MOST OF THE TIME CUSTOMERS AREN'T GOING TO CALL WITH A POWER QUALITY ISSUE. A HEATED LUG OR A BURNED UP WIRE UNTIL THEY HAVE PROBLEMS. WE'RE GOING TO BE PROACTIVE, AS WE'RE CHANGING METERS, IF WE SEE THAT, WE'VE WORKED OUT A PROGRAM WITH THE CITY TO BE ABLE TO HELP THE HOMEOWNER TO GET THAT CHANGED AT LITTLE TO

NO COST TO THE HOMEOWNER. >> MADAM CHAIR. ARE THERE OTHER FMPA COMPANIES

GOING THROUGH THIS OR HAVE GONE THROUGH THIS? >> QUITE A FEW.

BOTH SPECTRUMS. WE'VE GOT SOME THAT HAVE BEEN IN DEPLOYMENT FOR SIX TO TEN YEARS. OUC, LAKE LAND, OCALA, AND THEN YOU'VE GOT SOME LOOKING AT IT.

HAVANA. NEWBERRY, THEY'RE WORKING WITH FMPA AND GETTING THAT INFORMATION OUT THERE FROM UTILITIES LIKE US THAT HAVE GONE THROUGH THIS PROCESS TO BIDDING IT OUT, NEGOTIATING, TO THOSE WHO HAVE ALREADY HAD THIS DEPLOYED.

>> YOU CAN LEARN FROM THE OTHERS GONE BEFORE YOU? >> DEFINITELY.

AND WE'VE REACHED OUT TO THEM AS WELL TOO, TO GET GROWING PAINS TO TRY TO AVOID.

>> I UNDERSTAND, IS IT PHYSICALLY, HOW PHYSICALLY DIFFERENT IS THE NEW METER?

>> THE HOMEOWNER WON'T KNOW THE DIFFERENCE. >> WON'T.

>> WILL NOT KNOW THE DIFFERENCE. SAME METER.

>> HELPFUL. >> THE ONLY MAJOR DIFFERENCE THAT WE'RE GOING TO SEE ON THE WATER SIDE, INSTEAD OF HAVING A METAL LID, WHERE THE WATER METER IS, IT'S GOING TO BE A COMPOSITE LID BECAUSE THE RADIO SIGNAL CAN'T GET OUT OF THE METAL LID.

THAT IS ABOUT THE ONLY REAL CHANGE THAT ANYONE IS GOING TO SEE, OTHER THAN A BRIGHT SHINY

METER ON THE SIDE OF THEIR HOUSE. >> IT ISN'T GOING TO ROTATE

AROUND LIKE IT DOES NOW, IS IT? >> NO. YOU'LL SEE THE DIGITAL DISPLAYS ON THERE.

I DON'T THINK THEY'VE COME OUT WITH ANY METERS THAT HAVE LIKE DISCO LIGHTS FLASHING IN THEM

OR ANYTHING. >> THESE SYSTEMS HAVE BEEN IN PLACE FOR A LONG LONG TIME.

THEY'VE HAD THEM OUT WEST AND IN FLORIDA FOR TEN YEARS. FPL HAS IT.

THEY HAVE IT INSIDE OUR TERRITORY. OR INSIDE THE CITY.

>> SO IT'S ACCLIMATED TO THE SALT AND MOISTURE AND EVERYTHING.

>> ONE OF THE REASONS WE HADN'T PURSUED THIS BEFORE IS WE WANTED TO MAKE SURE THAT THE TECHNOLOGY IS MATURE. IT'S MATURE. WE DON'T PUT OURSELVES AT RISK.

>> MADAM CHAIR. LIKE I SAID BEFORE WHEN THIS FIRST CAME UP FOR DISCUSSION, YOU GOT TO GIVE JOSH AND FRANK A LOT OF CREDIT FOR THIS. THEY HAVE SPENT A TREMENDOUS AMOUNT OF TIME. AND I JUST WANTED TO GO OVER A COUPLE OF THINGS.

I DIDN'T SAY THE NAME. BUT JUST A MATTER OF CORRECTNESS ON THE FIRST PAGE, YOU SAID THAT THIS WAS NOT REVIEWED BY THE ATTORNEY. YOU SAY NO. HAVING REVIEWED IT

WITH YOU. >> YOU AND I HAVE REVIEWED IT MULTIPLE TIMES.

>> COULD YOU PULL YOUR MIC OVER, PLEASE. >> SIX OR EIGHT , MAYBE MORE

THAN THAT. >> ABSOLUTELY. YOU AND I REVIEWED ALL OF THE COMMERCIAL AND LEGAL TERMS AS THEY CAME UP AND ANY ISSUES WE WERE HAVING, YOU KNOW, YOU AND

I WOULD HOP ON THE PHONE AND/OR MEET AND TALK ABOUT IT. >> SOME OF THE OTHER MEMBERS HAVE GONE AHEAD OF US AND DOING THIS AT THIS TIME, IS THAT RIGHT?

>> CORRECT. >> ARE THEY USING CORE (INAUDIBLE)

>> ALL THREE. >> AND THERE IS ALSO, THERE IS ALSO A FOURTH OR A FIFTH OUT THERE THAT HAS BEEN IN THE INDUSTRY AS WELL TOO. WE'RE A LITTLE UNIQUE FROM SOME OF THE OTHER UTILITIES BECAUSE WE'RE DOING A TRIPLE PLAY. WE'RE DOING WATER, GAS, ELECTRIC. SOME OF THEM WILL HAVE WATER AND ELECTRIC.

SOME OF THEM WILL MAYBE JUST HAVE WATER. I KNOW KUA HAS ACTUALLY GOT PARTIAL DEPLOYMENT ON THE WATER SIDE, WORKING ON THE ELECTRI SIDE OR VICE VERSA.

I FORGET EXACTLY WHICH ONE THEY ARE. WE'RE GOING TO BE A UNIQUE ONE IN THE STATE THAT WE'RE GOING TO HAVE ALL THREE UTILITIES UNDER ONE UMBRELLA.

>> THIS IS FOR JOSH. I'M ASSUMING ON THE, I'M GOING TO CALL THEM WHITEOUTS, THOSE

[01:15:02]

WERE BLACK-OUTS. >> YEAH. >> THEY'RE CONFIDENTIALITY AND

TRADE SECRET. >> ARE THEY SAYING THAT THEY'RE PROPRIETARY, ALL OF THAT?

>> CORRECT. >> SINCE ALLISTER IS HERE TAKE A LOOK AT 13 TERMINATION.

I HAVEN'T SEEN IT WITH ALL OF THE BLACK-OUTS. >> I DIDN'T BRING A COPY.

IF YOU LOOK AT PARAGRAPH NUMBER ONE, UNDER 13, IT SAYS, WITHIN RECEIPT OF BLANK WRITTEN

NOTICE. >> JOSH, DO YOU WANT TO UNREDACT THIS?

>> IT'S PROBABLY A GOOD IDEA. >> THE PAGE IS UNDER TERMINATION NUMBER 13.

I'M NOT OBJECTING TO THAT. I JUST WANT ALLISTER TO KNOW IN MY OPINION, THAT WOULD BE HARD TO CLAIM AS PROPRIETARY IF SOMEONE TOOK US TO TASK OVER THAT.

>> YEAH. I THINK WHAT THEY'RE GETTING AT IS IT'S NEGOTIATED TERMS, SO THEY DON'T WANT THEIR COMPETITORS TO KNOW WHAT THEY'RE AGREEING TO.

IT IS DAYS I BELIEVE. AND THEY CONSIDER THAT, AS MUCH OF THE CONTRACT AS THEY CAN

PROPRIETARY. >> THAT'S FINE. AND THEN ON PAGE NUMBER FOUR, PAYMENT MATERIALS. 4.3. YOU CAN READ THESE THINGS SO MANY TIMES YOU THINK YOU'VE GOT IT RIGHT, BUT THE LAST LINE THERE SAYS AIR FARE WILL NEED

COACH FARE. >> COACH AS OPPOSED TO BUSINESS OR FIRST CLASS.

>> IT SAYS RECEIPTS FOR EXPENSES OVER BLANK. THEY CONSIDER THAT PROPRIETARY.

>> THAT IS ACTUALLY FPUA'S POLICY. EXPENSES OVER $25.

THEY MAY HAVE JUST BEEN IN A RUSH IN REDACTING. >> SOME OF THIS WE CAN PROTECT

AND SOME OF IT WE MAY NOT, IF SOMEONE TAKES US TO TASK. >> THAT ISCORRECT.

>> THAT IS ALL I HAVE. APOLOGIZE FOR MIXING YOUR NAME UP, PAUL AND JOSH, I KNOW YOU AS WELL AS I KNOW MYSELF. SO MR. KOBLEGARD, YOU'RE OKAY WITH THE ANSWERS THAT YOU GOT?

>> YES. >> ANY FURTHER? >> IS THERE A MOTION TO APPROVE

IT? >> THIS IS A REALLY BIG MOTION. MOTION TO APPROVE

>> I'LL SECOND. >> WE CALL THE ROLL. >> ROLL CALL.

>> THANK YOU. >> I WOULD LIKE TO MENTION IN ADDITION TO PAUL, JOSH AND NANCY, AS I LOOK OUT IN THE CROWD HERE, JUST ABOUT EVERYBODY GOT INVOLVED IN THIS CONTRACT IN SOME WAY, SHAPE OR FORM AND IT WAS A VERY GOOD TEAM EFFORT.

>> THANK YOU. >> AND SO DID MR. TOMBACK. >> I CAN IMAGINE.

[Item G11]

>> YEAH. >> THE LAST ITEM TODAY IS TO APPROVE THE PROFESSIONAL SERVICES AGREEMENT WITH MR. KOBLEGARD. OUT-CROPPING FROM THE ORIGINAL 1996 LETTER WHICH IDENTIFIED SOME OF HIS SERVICES AND WE WANTED TO FORMALIZE THAT.

JOSH WHO DEVELOPED THE DOCUMET WILL ALSO MAKE THE PRESENTATION.

>> THANK YOU, MADAM CHAIR, MEMBERS OF THE BOARD. >> AS MR. TOMPACK EXPLAINED, WE

[01:20:05]

HAVE BEEN WORKING UNDER THE ORIGINAL FEE ARRANGEMENT DATING BACK TO 1996 AND THAT WAS IN A LETTER. WE'VE TRIED TO ADD A BIT MORE TO THAT AND CLARIFY AT THE BOARD'S REQUEST, CLARIFY THE ARRANGEMENT THAT HE IS WORKING UNDER.

SO WE DEVELOPED THIS COMPREHENSIVE AGREEMENT. THE AGREEMENT TRACKS THE EXISTING ARRANGEMENT LARGELY, I BELIEVE WE'VE CAPTURED EVERYTHING AND EXPANDED ON IT.

SO WE'VE INCLUDED, YOU KNOW, WELL DEFINED SCOPE OF SERVICES AND CLARIFIED THE FEE ARRANGEMENT FOR HIS LEGAL REPRESENTATIONS. IT INCLUDES PROVISIONS FOR THE AGREEMENTS TERM, AND TERMINATION BENEFITS AND DISPUTE RESOLUTION.

THE ARRANGEMENT REALLY IS WHAT IS CALLED A TRUE RETAINER FEE ARRANGEMENT.

FOR A BASE ANNUAL RETAINER FEE, MR. KOBLEGARD PROVIDES LEGAL SERVICES, REPRESENTING FPUA AND THE BOARD, ATTENDING BOARD MEMBERS, BEING ON CALL AS NEEDED, THAT IS THE POINT OF THE TRUE RETAINER FEE, AS OPPOSED TO THE RETAINER WHERE A CLIENT WOULD RETAIN AN ATTORNEY. THIS IS A TRUE RETAINER FEE AGREEMENT.

WHICH IS A DIFFERENT WAY OF ARRANGING THESE. SO FOR THAT, HE PROVIDES AGAIN, IT'S AN ON CALL AS NEEDED, GIVES STAFF ADVICE AND COUNCIL ON LEGAL ISSUES, REVIEWING CONTRACTS, PROVIDING GUIDANCE ON DISPUTES, LEGAL AND REGULATORY COMPLIANCE, POLICIES AND PROCEDURES FOR FPUA, GOVERNANCE AND OTHER LEGAL MATTERS AS WELL.

IN ADDITION, THERE IS SOME OUTSIDE, OR ADDITIONAL WORK THAT IS BEYOND THOSE RETAINER FEES THAT IS CONTEMPLATED BY THE AGREEMENT, THAT WOULD BE IF THERE IS THINGS OUTSIDE THAT SCOPE THAT WE HAD ADDITIONAL SERVICES THAT WE NEEDED THAT ARE MAYBE MORE WORK OR MORE ATTENTION ARE NEEDED, FOR THESE SERVICES, THERE IS AGAIN, THEY'RE AS REQUESTED, BUT THERE WOULD BE ADDITIONAL FEES. THIS IS THINGS LIKE REPRESENTING FPUA IN LITIGATION, WHICH WOULD BE MORE WORK. ADMINISTRATIVE HEARINGS OR OTHER PROCEEDINGS. INCLUDES ADVISING FPUA ON BONDS AND BONDS ISSUANCE AND OTHER LEGAL WORK OUTSIDE THAT RETAINER SCOPE. IT'S HARD TO GO INTO THE DETAILS OF EVERYTHING THAT MIGHT COME UP, BUT WE'VE TRIED TO CAPTURE AS MANY OF THEM IN THE AGREEMENT THAT YOU HAVE IN YOUR PACKETS. THE TERM OF THE AGREEMENT ITSELF IS AN ONGOING AGREEMENT. EITHER PARTY CAN TERMINATE IT. IT KEEPS ONGOING.

IT REQUIRES ON FPUA'S SIDE 30 DAYS, WE'VE ASKED MR. KOBLEGARD TO GIVE ADDITIONAL NOTICE, WHICH WOULD ALLOW MORE TIME TO RETAIN LEGAL COUNSEL. HE IS AN INDEPENDENT CONTRACTOR, IT INCLUDES A PROVISION FOR BENEFITS AND HE IS REQUIRED TO CARRY PROFESSIONAL LIABILITY OR MALPRACTICE INSURANCE. THAT IS KIND OF IT IN A NUTSHELL. HAPPY TO ANSWER ANY QUESTIONS. I BELIEVE MR. KOBLEGARD IS

HAPPY TO ANSWER ANY QUESTIONS AS WELL. >> I CAN SAY ONE THING, IF I HAVEN'T SAID NOTHING ELSE TODAY, DEFINITELY SINCE 1996, TREMENDOUS PROFESSIONAL IMPROVEMENT. I'M CONCERNED ABOUT ANY BENEFITS THAT THE ATTORNEY MIGHT HAVE OR GET SHOULD BE NOTED. BECAUSE LIKE IF YOU GET INSURANCE, HE MIGHT DON'T WANT TO CONTINUE HIS LEGAL SERVICES WITH US, BUT HIS INSURANCE

WOULD BE UP TO HIM IF HE WANT TO CARRY IT. >> WELL, HE'S REQUIRED BY THE AGREEMENT TO CARRY INSURANCE. TO CARRY THE MALPRACTICE INSURANCE.

SO THAT IS NOT AN OPTION. HE IS REQUIRED TO CARRY IT. AS FAR AS THE -- I THINK YOU'RE ASKING ABOUT THE CONFLICTS OF INTEREST? IS THAT WHAT YOU'RE ASKING?

>> SORT OF. YES. >> YOU KNOW, HE IS PRECLUDED BY THE PROFESSIONAL RULES OF ETHICS FOR ATTORNEYS OF HAVING THAT TYPE OF CONFLICT IN REPRESENTATION AND HE WOULD HAVE TO NOTIFY THE BOARD AND/OR NOT REPRESENT CLIENTS IN DIRECT

CONFLICT. >> I MEAN, HE HAS BEEN AROUND SINCE 1996 AND THERE IS PROBABLY A CASE THAT HE MIGHT HAVE HAD AROUND 1996, YOU COULDN'T HOLD HIM RESPONSIBLE FOR SOMETHING NEW COME UP IN THIS DAY IN TIME IN 2019. BECAUSE AS TIME WENT ON, NAMES

HAVE CHANGED, IF IT'S A FEMALE. >> THAT IS TRUE. >> I DON'T KNOW HOW YOU'RE GOING TO ADDRESS IT. I'M CONCERNED ABOUT THE CONFLICT OF INTEREST.

BUT I'M CONCERNED SOME THINGS ARE NOT THAT VALID. IN A CONFLICT OF INTEREST.

[01:25:07]

>> LET'S SAY HE WAS, HAD SOMEONE IN THE CASE 25 YEARS AGO, PROBABLY DONE FORGOT ABOUT

THAT ALTOGETHER. >> YEAH. IF THERE IS A DIRECT CONFLICT, ATTORNEYS ARE REQUIRED TO KEEP THEIR HISTORICAL RECORDS AND KEEP TRACK OF THEIR CONFLICTS.

IF THERE IS A DIRECT CONFLICT, I WOULD HOPE THAT HE AND HIS FIRM WOULD KNOW AND RECOGNIZE THAT FAIRLY QUICKLY AND WOULD NOTIFY THE BOARD AND MAKE ARRANGEMENTS.

>> IN THIS CASE, I'M NOT QUESTIONING TO KEEP FROM BEING INVOLVED, I AM SAYING THERE ARE THINGS THAT HE WOULD BE INVOLVED WITH MATTERS DEALING WITH THE UTILITY AUTHORITY, SOMETHING COULD BE CONFLICT SOME 20 YEARS AGO, I STILL THINK HE OUGHT TO REPRESENT THE UTILITIES AUTHORITY AND DON'T BOW OUT BECAUSE THERE IS A SMALL CONFLICT OF INTEREST.

>> THE WAY THE ETHICS RULES WORK, I MEAN, IT WOULD BE UP TO MR. KOBLEGARD TO DETERMINE HOW TO RESOLVE THAT PROBLEM, BUT ONE WAY OR THE OTHER, HE WOULD HAVE IT RESOLVED.

WHETHER THAT MEANT HE WOULD STOP REPRESENTING THE OTHER CLIENT AND CONTINUE REPRESENTING FPUA, THE OTHER CLIENT WOULD HAVE TO SEEK INDEPENDENT COUNSEL.

IS ONE WAY THAT IT COULD GET RESOLVED. I'M HOPING THAT IT ANSWERS YOUR

QUESTION. >> IT'S HIS RESPONSIBILITY TO IDENTIFY THOSE CONFLICTS TO US.

>> CORRECT. >> OKAY. I MEAN, I DON'T EVEN SEE IT COMING UP THAT OFTEN IN LIFE, BUT MAYBE ONE OR TWO THINGS MIGHT BE SOMEWHERE.

>> ANYTHING ELSE? YES, SIR. >> I WOULD NEVER REPRESENT ANYONE AGAINST THE UTILITY AUTHORITY, I WOULD NOT BE ALLOWED TO DO THAT.

MY CODE OF ETHICS WOULD BAR ME FROM DOING AND I WOULD BE SUBJECT TO BEING DISBARRED IF I DID SOMETHING LIKE THAT. THAT WOULD NEVER HAPPEN. AND I'VE ALWAYS CARRIED A MINIMUM OF A MILLION DOLLARS MALPRACTICE. NOT JUST FOR THE UA, BUT FOR EVERYTHING. BECAUSE I THINK ALL LAWYERS DO THAT.

I'VE REVIEWED IT. I'M HAPPY WITH IT. AT ONE POINT, I WASN'T ALLOWED TO RETIRE. ON THE FOR CAUSE. I WOULDN'T WANT THAT IN THERE.

>> I'LL MOVE TO APPROVE THE AGREEMENT. >> SECOND.

>> PLEASE CALL THE ROLL. >> ROLL CALL. >> MAYOR HUDSON.

>> I AM ABSTAINING BECAUSE I HAVE A CONFLICT OF INTEREST. MR. KOBLEGARD IS MY

BROTHER-IN-LAW. >> GOT IT RIGHT HERE. >> I BELIEVE MR. TOMPACK, WE

ARE DOWN TO ANY MATTERS YOU MIGHT HAVE. >> NO FURTHER COMMENTS THIS

FTERNOON. >> OKAY.

AND THE ATTORNEY. >> NOTHING ELSE TO REPORT ON. >> ALL RIGHT.

ANY BOARD MEMBER COMMENTS? >> NONE. >> CITY MANAGER?

>> NONE. >> ALL RIGHT. WELL, IT'S BEEN AN

* This transcript was compiled from uncorrected Closed Captioning.