Feb 03, 2026 Fort Pierce Utilities Authority

[00:00:04]

HEAVENLY FATHER, WE THANK YOU FOR THE PROMISE IN PSALM 3417 THAT YOU WOULD HEAR OUR PRAYERS.

TODAY WE ASK THAT YOU GUIDE OUR BOARD AS THEY MAKE IMPORTANT DECISIONS FOR FPWA.

LET THEM FOLLOW YOUR LEADING AND GOVERN IN A WAY THAT WILL BE MOST BENEFICIAL FOR BOTH FPWA AND THE RESIDENTS OF FORT PIERCE.

IN JESUS NAME WE PRAY. AMEN. AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

PLEASE CALL THE ROLL. BENNETT. MRS. DAVIS. YES, MA'AM.

MRS. GIBBONS. PRESENT. MAYOR. HUDSON. PRESENT.

MR. PRESIDENT, MR. CHESS PRESENT. AND DO WE HAVE A MOTION TO SET THE AGENDA.

[ A. SET THE AGENDA]

SO. YES, MA'AM. MRS. GIBBONS. YES, MA'AM. MAYOR.

HUDSON. YES, MA'AM. MR.. YES, MA'AM. AND DO WE HAVE ANY COMMENTS FROM THE PUBLIC? IF WE DO, PLEASE STEP FORWARD TO THE PODIUM. YOU HAVE TWO MINUTES TO SPEAK.

I DO NOT SEE ANY MOVEMENT FROM THE GALLERY. SO WE'RE GOING TO CLOSE THE PUBLIC COMMENT SECTION OF TODAY'S MEETING,

[C. APPROVAL OF MINUTES]

DO WE HAVE APPROVAL OF THE MINUTES? MOVE APPROVAL.

SECOND. PLEASE CALL THE ROLL, MRS. DAVIS. YES, MA'AM.

YES, MA'AM. MAYOR HUDSON. YES, MA'AM. MR.. YES, MA'AM.

[D. CONSENT AGENDA]

CAN I GET A MOTION TO APPROVE? SO MOVED. SECOND.

PLEASE CALL THE ROLL, MRS. DAVIS. YES, MA'AM.

MRS. GIBBONS. YES, MA'AM. MAYOR. HUDSON. YES, MA'AM.

YES, MA'AM. MR. DIRECTOR, I BELIEVE IT'S. YES, SIR.

[E.1. Resolution UA 2026-02 Electric Rates]

WE WILL HANDLE EACH RESOLUTION INDIVIDUALLY AS THEY ARE PUBLIC HEARING.

AND THIS PRESENTATION WILL BE INCLUDED FOR THE RECORD FOR EACH RESOLUTION.

THE INDEX. THE INDEX ADJUSTMENTS ARE ISSUED BY THE FLORIDA PUBLIC SERVICE COMMISSION ON A YEARLY BASIS, AND THEY ALLOW FOR MUNICIPAL UTILITIES TO KEEP UP WITH INFLATIONARY COSTS THAT ARE DIRECTLY RELATED TO UTILITIES.

IT'S IMPORTANT TO ENSURE CONSISTENT ADOPTION TO AVOID RATE SHOCK, AS WE HAVE EXPERIENCED IN THE PAST.

AS YOU MAY RECALL, IN 2022 WE'VE ADOPTED A VERY CONSISTENT INFLATIONARY INDEX.

ELECTRIC AND GAS ONLY REQUIRE ONE READING. SO TODAY WE ARE ASKING FOR THE APPROVAL OF ELECTRIC AND GAS RESOLUTION TO ADOPT THOSE RATE CHANGES.

WATER AND WASTEWATER REQUIRE TWO READINGS PER FLORIDA STATE STATUTE.

SO TODAY WE ARE ASKING FOR APPROVAL FOR A SECOND READING.

SO YOU'RE NOT APPROVING THE RATES FOR WATER WASTEWATER TODAY. JUST APPROVING THE SECOND READING.

ANDREA SLOAN, TRANSFER FINANCE MANAGER, WILL PRESENT THIS ITEM.

THANK YOU, MR. CISNEROS. GOOD AFTERNOON, MAYOR HUDSON.

CHAIRMAN FEE AND BOARD MEMBERS, TODAY, I WILL BE PRESENTING THE FIRST READING OF THE PROPOSED PUBLIC SERVICE COMMISSION INDEX RATE ADJUSTMENTS.

ON TODAY'S AGENDA, WE WILL TALK A LITTLE BIT ABOUT OUR UTILITY RATES, THE CALCULATION OF THOSE RATES, COMMUNICATION TO OUR CUSTOMERS REGARDING THE PROPOSED RATE INCREASES AND OUR RECOMMENDATIONS TO THE BOARD.

SO WHY DO OUR UTILITY RATES EXIST? OUR UTILITY RATES EXIST TO PAY FOR THE ACTUAL COST OF PROVIDING SERVICE TO OUR CUSTOMERS.

AND OF COURSE, AT FPA WE ARE A GOVERNMENT SERVICE.

IT HELPS KEEP OUR SYSTEM SAFE, RELIABLE AND COMPLIANT BECAUSE OUR SYSTEMS ARE HEAVILY REGULATED AND REQUIRE ONGOING REPORTING AND INSPECTIONS.

THE RATES HELP FUND OUR OPERATIONS, OUR MAINTENANCE AND OUR LONG TERM REPLACEMENTS.

AND AS YOU KNOW, OUR INFRASTRUCTURE REQUIRES RENEWAL, REPLACEMENT AND MAINTENANCE SO THAT WE STAY SAFE AND FUNCTIONAL.

WE ALSO SUPPORT OUR OWN LOCALLY OWNED INFRASTRUCTURE.

OUR RATES ARE HOW THE COMMUNITY PAYS ITSELF TO RUN OUR ESSENTIAL SERVICES.

SO HOW ARE OUR RATES CALCULATED? OUR RATES ARE BASED ON SEVERAL FACTORS.

FORECASTED COSTS AND BUDGETS. OUR USAGE PATTERNS.

OUR HISTORY OF OUR CONSUMER CONSUMPTION. THE CLASSES OF THOSE CUSTOMERS, WHETHER THEY BE COMMERCIAL OR RESIDENTIAL, AND THE FINANCIAL POLICIES THAT WE HAVE AT THE UA, OUR RESERVES, OUR EMERGENCY FUNDS AND OUR BOND COVENANTS.

THE ANNUAL BUDGET AND CUSTOMER RATES ARE HEAVILY INTERTWINED.

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SO HOW DO WE ADJUST OUR RATES? THE FLORIDA PUBLIC SERVICE COMMISSION PLAYS A BIG PART IN THAT.

THEY ESTABLISHED AN ANNUAL INDEX IN 1993. THIS INDEX ALLOWS UTILITY COMPANIES TO ADJUST RATES FOR INFLATION OR DEFLATION IN NON-CONTROLLABLE COST AREAS LIKE CHEMICALS AND LABOR. AND WE CAN DO THIS WITHOUT HAVING A LENGTHY RATE CASE, WHICH BENEFITS BOTH THE UTILITY AND THE CUSTOMERS.

THE PRIMARY INDEX THAT IS USED FOR THIS IS THE GROSS DOMESTIC PRODUCT IMPLICIT PRICE DEFLATOR.

AND THIS INDEX IS CHOSEN FOR ITS BETTER FIT TO THE INDUSTRY'S COST STRUCTURE.

IN 2025, AN INDEX OF 2.23% WAS ESTABLISHED, AND IT IS REFLECTIVE OF THE OPERATING COSTS FOR FISCAL YEAR ENDED SEPTEMBER 30TH, 2020. FOR THE PRELIMINARY ANNOUNCEMENT OF THIS INDEX WAS MADE ON DECEMBER 17TH OF 2024, AND THE FINAL ANNOUNCEMENT WAS MADE ON MARCH 31ST OF 2025. SO TAKING THIS INTO ACCOUNT, HOW DO WE REVIEW OUR RATES? THE BOARD APPROVED BUDGET IS BUILT WITH THIS INDEX INCREASE IN MIND.

IT HELPS US MAINTAIN PACE WITH INFLATION AND THE RISING COST OF MATERIALS THAT ARE NEEDED FOR OUR OPERATIONS AND OUR INFRASTRUCTURE.

IT ALSO HELPS WITH OUR SYSTEM HARDENING REQUIREMENTS.

AND AS MR. CISNEROS SAID IN 2022, THE BOARD VOTED TO APPROVE ANNUAL INDEX ADJUSTMENTS IN ACCORDANCE WITH OUR DEBT ISSUANCE AT THAT TIME.

THIS IS AN EXAMPLE OF THE NOTICE OF PUBLIC HEARINGS THAT WENT OUT TO ALL OF OUR CUSTOMERS AND THEIR BILLS.

YOU CAN SEE THAT IT CLEARLY SAYS THAT THE FIRST READING OF THESE NOTICES WILL BE TODAY, FEBRUARY 3RD, AND THE SECOND WILL BE ON FEBRUARY 17TH FOR THE WATER AND WASTEWATER AS THEY REQUIRE THE SECOND READING.

IT ALSO CLEARLY SHOWS THE PROPOSED INCREASES TO THEIR BILL.

FOR ELECTRIC, A INDUSTRY STANDARD 1000 KILOWATT HOUR CONSUMPTION HAS A CURRENT BILL OF $137.75.

THE PROPOSED INCREASE TO THIS IS $1.14, FOR A TOTAL BILL OF $138.89, WHICH REPRESENTS A LESS THAN 1% INCREASE OVERALL FOR NATURAL GAS, AN INDUSTRY STANDARD 13.

THE CURRENT BILL IS $43.78. THE PROPOSED INCREASE WOULD BE $0.77 FOR A TOTAL BILL OF $44.55.

ON THE WATER SIDE, AN INDUSTRY STANDARD 6000 GALLON BILL CURRENTLY IS PRICED AT $56.32.

THE PROPOSED INCREASE WOULD TOTAL $1.27 FOR A NEW BILL OF $57.59, WASTEWATER USING THAT SAME 6000 GALLON STANDARD. THE CURRENT BILL IS $68.39. THE PROPOSED INCREASE WOULD BE $1.50 FOR A NEW TOTAL BILL OF $69.89.

SO ALL IN FOR A CUSTOMER WHO HAS EVERY ONE OF OUR SERVICES USING THOSE INDUSTRY STANDARDS.

THE BILL RIGHT NOW WOULD BE $306.24. THE PROPOSED INCREASE TOTAL WOULD BE $4.68 FOR A NEW BILL OF $310.92, WHICH REPRESENTS A 1.5% INCREASE OVERALL.

THIS IS BECAUSE THE ELECTRIC PURCHASE POWER OF 7952 PER 1000 KILOWATT HOURS AND $0.50 PER CC ON GAS ARE NOT SUBJECT TO THE INCREASE, SO IT LOWERS THE TOTAL PROPOSED INCREASE FROM 2.2% TO 1.5.

AND THIS SLIDE JUST SHOWS A LITTLE BIT MORE IN DEPTH OF THAT CALCULATION, SHOWING THAT OUR PURCHASED POWER AND FUEL COSTS MAKE UP THE TOTAL ELECTRIC COST. AND WE ARE REMOVING THAT 0.07952 FROM THAT CALCULATION, WHICH LEAVES US WITH 0.0348, WHICH IS SUBJECT TO THAT 2.2% INCREASE. SAME THING ON THE GAS SIDE, WHERE WE SHOW THAT WE ARE REMOVING THE $0.50 PER CCF, LEAVING US WITH $1.25. THAT IS ACTUALLY SUBJECT TO THE INCREASE.

THIS IS AN EXAMPLE OF OUR BILL COMPARISON. USING THOSE INDUSTRY STANDARDS AGAIN OF 1000 KILOWATT HOURS AND 6000 GALLONS.

WITH THE PROPOSED INCREASES, THE NEW FORT PIERCE BILL WOULD BE $266.37 FOR A CUSTOMER WHO HAS ELECTRIC, WATER AND WASTEWATER USING THOSE STANDARDS. AND WE COMPARE THAT TO THE SURROUNDING COUNTIES.

AND FORT PIERCE CUSTOMER THAT ALSO HAS FPL. AND YOU CAN SEE THAT THEIR TOTAL BILL WOULD BE TWO 7553 WHICH IS ABOUT $9 LESS, OR WE ARE ABOUT $9 LESS THAN THEY ARE.

THIS SLIDE REPRESENTS THE FPA INDEX HISTORY. YOU CAN SEE ON THE LEFT THE YEARS AND THE PSC INDEX INCREASES.

AND THEN AFTER THAT IS THE DIFFERENT SYSTEMS OF THE UA AND SHOWING THE YEARS THAT WE IMPLEMENTED THE INCREASES.

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AND THEN WE STARTED IN 2022 DOING THE REGULAR YEARLY INCREASES TO HELP KEEP UP WITH THAT INFLATION AND HELP NOT HAVE THE RATE SHOCK TO OUR CUSTOMERS OF LARGER INCREASES. SO OUR RECOMMENDATIONS TO THE BOARD TODAY.

TODAY WE WILL BE THE FIRST READING OF OUR FOUR RESOLUTIONS 20 2602 ELECTRIC 20 2603 NATURAL GAS, 2020, 604 WATER AND 20 2605 WASTEWATER. TODAY, WE ARE REQUESTING THE APPROVAL OF TWO OF THOSE RESOLUTIONS 20 2602 ELECTRIC AND 20 2603 NATURAL GAS. AND THEN WE ARE ALSO REQUESTING THE APPROVAL FOR THE SECOND READING OF THE WATER AND WASTEWATER RESOLUTIONS 2020 604 AND 2020 605 ON FEBRUARY 17TH. THANK YOU, AND IF YOU HAVE ANY QUESTIONS, WE'LL BE HAPPY TO TRY TO ANSWER THEM FOR YOU.

ANY QUESTIONS OF THE BOARD? MR. CHAIRMAN, I WOULD LIKE TO ADD SOMETHING TO ANDREA'S PRESENTATION.

IF YOU COULD GO BACK TO THE SLIDE WHERE WE SENT THE NOTICE TO OUR CUSTOMERS.

AND WHILE SHE'S PULLING THAT UP, I'D LIKE TO HIGHLIGHT THAT ONE OF THE THINGS THAT WE'VE REALLY PUSHED FORWARD HERE AT FPWA IS FINDING A HIGHER DEGREE OF EFFICIENCIES IN EVERYTHING THAT WE DO. JUST WE'RE OPERATING DIFFERENTLY WITH THE WAY WE DO BUDGETING.

THE TEAM HAS JUST DONE A FANTASTIC JOB, AND I WANT TO HIGHLIGHT THE 1.5% OVERALL FOR YOUR COMBINED UTILITY BILL.

IN MY OPINION NO INCREASES COMFORTABLE. BUT BUT WHEN YOU HAVE A SMALL INCREASE LIKE THAT, IN ORDER TO MAINTAIN A UTILITY SYSTEM LIKE FPWA ALL FIVE UTILITIES IN AN OLDER CITY COASTAL CITY THAT'S SOMETHING THAT I'M REALLY PROUD OF, IS THAT THE TEAM HAS BEEN ABLE TO GET A NUMBER.

THAT COULD BE VERY WE CAN BE VERY PROUD OF BECAUSE A LOT OF OUR SURROUNDING UTILITIES, THEY ARE MUCH HIGHER THAN WE ARE.

JUST TO KEEP UP WITH INFLATION AND TO KEEP UP WITH THEIR BUSINESS UNITS.

SO THE 1.5 IS SOMETHING THAT I WANT TO HIGHLIGHT FOR THE, FOR THE BOARD, SOMETHING THAT WE'RE PROUD OF.

ANY OTHER QUESTIONS FROM BOARD MEMBERS? MR. CHAIR, I'VE GOT WHEN WE MET PREVIOUSLY, WE WERE TALKING ABOUT SOME OF THE SURROUNDING AREAS AND THE INCREASES THAT THEY WERE GOING TO BE SEEING IN COMPARISON TO WHAT WE'RE TALKING ABOUT IMPLEMENTING IS THAT DO WE HAVE SOME AVAILABLE OF WHAT THOSE RATES ARE? PORT SAINT LUCIE USUALLY DOES THEIR CHANGES IN OCTOBER.

AND THE LAST TIME THEY DID THEM, THEY WERE ABOUT 2.5%.

IT'S PREDICTED THAT THEY'RE GOING TO BE ABOUT 5% IN THE COMING YEAR.

SAINT LUCIE COUNTY FOLLOWS US USUALLY, AND AS SOON AS WE DO OURS, THEY USUALLY RECIPROCATE FOR INCREASED COSTS AND DO ABOUT THE SAME.

AND THEN PLUS A LITTLE EXTRA ZERO USUALLY DOES THEIR RATE CHANGES IN OCTOBER? LAST TIME THEY HAD QUITE A LARGE INCREASE BACK THEN.

AND WE'RE ANTICIPATING ANOTHER INCREASE IN THE COMING YEAR FOR THEM AS WELL.

MARTIN COUNTY USUALLY DOES THEIRS IN JUNE, AND LAST TIME THEY HAD ABOUT A 2.5% INCREASE TO THEIRS.

AND ANTICIPATING ABOUT THE SAME FOR THIS YEAR AS WELL.

OKAY, SO BASICALLY WHAT I'M TRYING TO GET AT IS WE'RE LOWER THAN A MAJORITY OF THE SURROUNDING UTILITIES.

SO THAT IS DEFINITELY SOMETHING TO BE PROUD OF.

AND FPL YES, YES. PRIVATE INVESTOR KNOWN. MR. CHAIRMAN. YES. AND WE ALSO I THINK IT'S IMPORTANT TO EMPHASIZE THAT THESE RATE INCREASES ARE SANCTIONED BY THE PUBLIC SERVICE COMMISSION. THEY RECOGNIZE THAT A UTILITY NEEDS TO HAVE MONEY TO KEEP, TO KEEP, TO MAINTAIN THE UTILITY AND TO KEEP AND TO GROW.

AND SO THIS IS SOMETHING THAT THAT THEY RECOGNIZE AS A NECESSITY FOR A UTILITY.

AND ALSO IT WAS CALCULATED IN THE BONDS OF 2022.

I KNOW YOU PUT THAT IN YOUR PRESENTATION, BUT I, I WANT TO EMPHASIZE THAT BECAUSE WE COUNTED ON DOING THIS.

YES. CONTRACTUALLY COMMITTED TO DOING THIS? YES, YES.

CORRECT, CORRECT. AND AND I'M GLAD IT'S THE 1.5.

I, TOO, I APPLAUD THE, THE STAFF AT KEEPING IT AT THAT AT THAT LEVEL BECAUSE THAT'S IMPORTANT TO OUR CUSTOMERS RIGHT NOW.

BUT IT'S ALSO IMPORTANT TO OUR CUSTOMERS FOR US TO BE RELIABLE.

YES, ABSOLUTELY. SO THIS PRESENTATION COVERS ONE THROUGH FOUR OF E, CORRECT? YES, SIR. WE WILL GO AHEAD. WE WILL INCORPORATE THIS PRESENTATION INTO EACH OF THE RESOLUTIONS ONCE YOU OPEN THEM FOR PUBLIC HEARING.

[00:15:01]

OR DO I HAVE TO GO INDIVIDUALLY? INDIVIDUALLY, SIR? OKAY, SO WE'RE GOING TO OPEN UP PUBLIC HEARINGS ON RESOLUTION UA 2020 602 ELECTRIC RATES.

IF ANYBODY WISHES TO COME FORWARD TO SPEAK, PLEASE DO SO.

I'M SEEING NO MOVEMENT, SO WE WILL CLOSE THE PUBLIC HEARING PORTION OF RESOLUTION 2020 602.

DO WE WANT TO MOVE FORWARD AND DO A VOTE RIGHT AFTER THAT? YES, SIR. OR DO YOU WANT TO GO PUBLIC HEARING ON ALL OF THEM? I'D PREFER GAZELLE COULD READ THE HEADING OF THE RESOLUTION INTO THE RECORD AND TAKE A VOTE, AND THEN WE CAN GO ON TO THE NEXT RESOLUTION. PERFECT RESOLUTION NUMBER UA 2026 02A RESOLUTION AMENDING, SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES FOR ELECTRIC SERVICES FURNISHED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA, AND RESOLUTION NO. UA 2020 501 AND IN ACCORDANCE WITH ARTICLE 12 OF THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ADOPTING THE ELECTRIC TARIFF SHEETS, REFLECTING A 2.23% INCREASE IN THE CUSTOMER AND USAGE CHARGES.

BASED ON THE 2025 FLORIDA PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX PROVIDING FOR ADMINISTRATIVE ACTION, ANNUAL INDEXING PROVISION SCRIVENER'S ERRORS, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE.

ANY MOVE APPROVAL. MOVE APPROVAL. OKAY. CALL THE ROLL.

MRS. BENNETT. YES, MA'AM. MRS. DAVIS. YES, MA'AM.

MRS. GIBBONS. YES, MA'AM. YES, MA'AM. YES, MA'AM.

[E.2. Resolution UA 2026-03 Natural Gas Rates]

I'D LIKE TO OPEN ON THE FLOOR TO PUBLIC DISCUSSION.

AT THIS POINT IN TIME, I SEE NO MOVEMENT. SO WE WILL CLOSE THE PUBLIC DISCUSSION ON UA 2020 603.

PLEASE READ THE RESOLUTION. RESOLUTION NUMBER UA 2026 03A RESOLUTION AMENDING, RESCINDING, EXCUSE ME, SUPERSEDING AND RESCINDING RESOLUTION NUMBER 2020 502, PROVIDING THE SCHEDULE OF RATES AND CHARGES FOR NATURAL GAS SERVICES FURNISHED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA, IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ARTICLE 12 AND ADOPTING A REVISED RATE SCHEDULE PROVIDING FOR A 2.23% INCREASE IN THE CUSTOMER AND COMMODITY CHARGES BASED ON THE 2025 PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR ANNUAL INDEXING PROVISION, ADMINISTRATIVE ACTION SCRIVENER'S ERRORS, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE.

ANY DISCUSSION FROM THE BOARD MEMBERS? IF NOT, CAN I GET A MOTION TO APPROVE? MOVE. APPROVAL.

SECOND. PLEASE CALL THE ROLL. MRS. BENNETT. YES, MA'AM.

MRS. DAVIS. YES, MA'AM. MRS. GIBBONS. YES, MA'AM.

MAYOR. HUDSON. YES, MA'AM. MR.. YES, MA'AM. NOW WE'RE MOVING ON TO DISCUSSION FOR FOR THE PUBLIC ON RESOLUTION UA 2020 604 WATER RATES.

[E.3. Resolution UA 2026-04 Water Rates]

PLEASE DO SO. AND WE SEE NO MOVEMENT. SO WE'RE GOING TO CLOSE THE PUBLIC SECTION OF THAT RESOLUTION AND PLEASE READ IT.

RESOLUTION NUMBER UA 2020 6-04A RESOLUTION AMENDING, SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES AND CHARGES FOR WATER SERVICES FURNISHED BY FORT PIERCE UTILITIES AUTHORITY VIA RESOLUTION NUMBER UA 2020 503 AND IN ACCORDANCE WITH ARTICLE 12 OF THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ADOPTING THE RATES AND CHARGES FOR WATER SERVICES FURNISHED BY THE FORT PIERCE UTILITIES AUTHORITY, PROVIDING FOR A 2.23% INCREASE IN THE CUSTOMER AND VOLUME CHARGES BASED ON THE 2025 FLORIDA PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR ANNUAL INDEXING PROVISION, ADMINISTRATIVE ACTION SCRIVENER'S ERRORS, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE. ANY DISCUSSION FROM THE BOARD MEMBERS? IF NOT, CAN I GET A RESOLUTION TO A MOTION TO APPROVE APPROVAL? A MOTION TO APPROVE. SECOND. SECOND. PLEASE CALL THE ROLL.

MRS. BENNETT. YES, MA'AM. MRS. DAVIS. YES, MA'AM.

MRS. GIBBONS. YES, MA'AM. MAYOR HUDSON. YES, MA'AM.

MR.. YES, MA'AM. NOW, I THINK WE'RE ON TO RESOLUTION 2020 605.

[E.4. Resolution UA 2026-05 Wastewater Rates]

DO SO NOW. I'M SEEING NO MOVEMENT. SO WE WILL CLOSE THE PUBLIC HEARING FOR THIS PARTICULAR RESOLUTION.

PLEASE READ IT. RESOLUTION NUMBER UA 2020 605.

A RESOLUTION AMENDING, SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES AND CHARGES FOR WASTEWATER SERVICES FURNISHED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA, VIA RESOLUTION NUMBER UA 2020 504 AND IN ACCORDANCE WITH ARTICLE 12 OF THE CHARTER OF THE CITY OF FORT PIERCE,

[00:20:04]

BASED ON THE 2025 FLORIDA PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR ANNUAL INDEXING PROVISION, ADMINISTRATIVE ACTION, SCRIVENER'S ERRORS, REPEAL, SEVERABILITY, AND AN EFFECTIVE DATE.

ANY DISCUSSION FROM THE BOARD MEMBERS? IF NOT, CAN WE GET A MOTION TO APPROVE? MOVE. APPROVAL. SECOND, PLEASE CALL THE ROLL.

MRS. BENNETT. YES, MA'AM. MRS. DAVIS. YES, MA'AM.

MRS. GIBBONS. YES, MA'AM. MAYOR. HUDSON. YES, MA'AM.

MR.. YES, MA'AM. NEXT ITEM. WE'RE NOW ON ITEM F.

[F.1. Resolution No. UA 2026-06 Establishing the Schedule of Rates Provided by FPUAnet]

MR. CHAIRMAN AND MEMBERS OF THE BOARD, THE LAST ITEM THIS AFTERNOON IS A REQUEST TO ADOPT A RESOLUTION TO ESTABLISH A SCHEDULE OF RATES AND CHARGES FOR FÜR NET.

THIS ONE IS STRAIGHTFORWARD. WE ARE ASKING FOR A REDUCTION IN OUR RETAIL RATES.

JASON MITTLER, FÜR NET MANAGER WILL PRESENT THIS ITEM.

MR. MITTLER, I DON'T THINK YOU HAVE TO SPEAK LONG BECAUSE YOU'RE GOING TO LOWER THE RATES.

GOOD AFTERNOON, MR. CISNEROS. MADAM MAYOR, MR. CHAIRMAN AND MEMBERS OF THE BOARD. I THANK YOU SO MUCH FOR HAVING ME, AND I AM EXCITED TO BE ABLE TO SHARE WITH YOU SOME OF THE WORK THAT THE TEAM HAS DONE OVER THE LAST FEW YEARS.

IT'S BEEN A LITTLE WHILE SINCE I'VE BEEN TO THE BOARD. WE'VE BEEN BUSY AND ALSO A RATE REDUCTION AND THE INTRODUCTION OF OUR NEW FIVE GIGABIT PER SECOND SERVICE TIER FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS.

SO WE'RE EXCITED ABOUT BEING ABLE TO PROVIDE THOSE TYPE OF SERVICES.

SO LIKE I SAID, BECAUSE SINCE IT'S BEEN A WHILE SINCE WE'VE BEEN HERE TO PRESENT AND TALK TO YOU, AND WE HAVE SOME NEW BOARD MEMBERS LIKE MISS PEARL WE WANTED TO GIVE YOU A HIGH LEVEL OVERVIEW OF PHPUNIT. AND SO PHPUNIT IS YOUR FIFTH UTILITY FOR FORT PIERCE UTILITY AUTHORITY.

WE'RE A SMART CITY INTERNET SERVICE PROVIDER.

AND WE'VE PROVIDED FIBER SERVICES FOR THE LAST 20 YEARS.

AND SINCE 2024, WE'VE STARTED PROVIDING SERVICES TO RESIDENTIAL AND COMMERCIAL CUSTOMERS THROUGHOUT FORT PIERCE.

PHPUNIT IS MADE UP OF SIX DEPARTMENTS THAT NOT ONLY SUPPORT EXTERNAL CUSTOMERS, BUT INTERNAL CUSTOMERS AS WELL.

AND SO WHAT I WANTED TO TALK ABOUT WAS, WELL, WHY ARE WE LOWERING THE RATES AND SOME OF THE EFFICIENCIES THAT THE TEAM HAS MADE OVER THE LAST TWO YEARS, SPECIFICALLY IN THE OUTSIDE PLANT ENGINEERING AND CONSTRUCTION TEAM, WE'VE GAINED SIGNIFICANT EFFICIENCIES IN THE DESIGN AND CONSTRUCTION OF OUR FIBER NETWORK.

THIS HAS ALLOWED PHP.NET TO BUILD A FASTER OR LOWER COST.

THERE'S TWO MAJOR CONTRIBUTORS TO THIS EFFICIENCY.

ONE IS BRINGING ENGINEERING AND CONSTRUCTION IN-HOUSE.

THIS HAS GIVEN PHP.NET A COMPETITIVE ADVANTAGE AND ALLOWED US TO BE VERY AGILE AND ENSURE THAT OUR FIBER IS BEING DEPLOYED AT THE MOST COST EFFECTIVE WAY, AS QUICK AS POSSIBLE. SECOND IS USING THE CORNING FLEX TECHNOLOGY, WHICH IS ON THE SLIDE.

THIS TECHNOLOGY IS A NEWER TECHNOLOGY WHICH ALLOWS PHP.NET TO CREATE CUSTOMIZED CABLES THAT FOR SPECIFIC ROUTES THAT ELIMINATE MANUAL SPLICING.

IN THE FIELD, WHICH IS TIME CONSUMING, COSTLY, AND INTRODUCES ADDITIONAL FAILURES POINTS ON OUR NETWORK.

ON AVERAGE, PHP.NET CAN BUILD A FIBER ZONE FIVE TIMES FASTER THAN BEFORE.

FOR 50% LESS THAN THE INDUSTRY AVERAGE COST PER PARCEL.

WE'RE VERY PROUD OF THAT. ADDITIONALLY, BY PLACING A TERMINAL AT MOST OF THE POLES, OUR OVERALL DROP LENGTHS HAVE BEEN REDUCED, WHICH CUTS TIME AND COST FOR OUR FIBER DROP PLACEMENTS TO THE HOME AND BUSINESS.

NOT ONLY IS IT REDUCING COST BY REDUCING THE DROP LENGTHS, WE'VE REDUCED THE RISK FROM WIND DAMAGE THAT COULD HAPPEN BETWEEN LONG SPANS BETWEEN POLES, WHICH WILL INCREASE RELIABILITY OVER OUR COMPETITORS.

IN THE BROADBAND INDUSTRY. WE USE A TERM PARCEL'S PAST AS AN INDUSTRY KPI, AND SO IT'S DEFINED BY HAVING NECESSARY INFRASTRUCTURE IN PLACE TO PROVIDE SERVICE TO THE HOME AND BUSINESS WITH A STANDARD SERVICE DROP WITHIN A FEW DAYS OF REQUEST.

THIS SLIDE SHOWS THE NUMBER OF PARCELS PASSED AS OF TODAY.

THE TOP RIGHT SIDE OF THE SLIDE SHOWS THAT FPC CURRENTLY HAS FIBER AVAILABLE TO 2748 PARCELS.

THEY'RE SHOWN IN THE ORANGE SHADED AREAS. I KNOW THAT'S KIND OF HARD TO SEE. BUT YOU KIND OF JUST SEE THE GIST OF WHERE THOSE SIT AT.

THE BLUE SHADED AREA SHOWS PARCELS IN CONSTRUCTION THAT SHOULD BE ACTIVE WITHIN THE NEXT 90 DAYS.

WE HAVE ONE ZONE ON THE BEACH, THE THIRD ZONE THAT WILL BE TURNED UP AND PROBABLY TWO WEEKS.

SO CREWS ARE CURRENTLY WORKING ON THAT. THE PURPLE SHADED AREA ARE DESIGNS, PARCELS THAT ARE CURRENTLY IN DESIGN AND THE GREEN ARE WHAT'S OUR

[00:25:07]

AND IT HAS PLANS TO ADD 2300 PARCELS PER YEAR OVER THE NEXT THREE YEARS, BRINGING THE GRAND TOTAL OF PARCELS PASSED TO ABOUT 12,500 PARCELS BY THE END OF FY 29. THE SECOND MAJOR EFFICIENCY THAT I'D LIKE TO SPEAK ABOUT, JUST FOR A MINUTE IS LAST YEAR, OUR NETWORK ENGINEERING AND PLANNING TEAM WAS ABLE TO COMPLETE A MULTI-YEAR PROJECT OF UPGRADING THE.

NET CORE, WHICH INCREASED THE CORE CAPACITY FROM 40 GIGABITS PER SECOND TO 400 GIGABITS PER SECOND.

THAT IS TEN TIMES THE SPEED AND CAPACITY. THIS PROJECT IS OPEN THE DOOR TO TWO SIGNIFICANT NETWORK EFFICIENCIES.

ONE IS DIRECT PAIRING WITH THE MI1 DATA CENTER, WHICH GIVES PHP.NET IMMEDIATE ACCESS TO MAJOR GLOBAL CONTENT PROVIDERS AND LOWERS THE LATENCY, WHICH WILL IMPROVE OUR CUSTOMER EXPERIENCE.

YOU'LL BE SIGNING THAT CONTRACT TODAY TO ALLOW US TO DO THAT.

AND SO THANK YOU FOR THAT. SECONDLY, THIS UPGRADE WILL ALLOW FOR 100 GIGABIT PER SECOND, GIGABIT PER SECOND TRANSPORT CIRCUITS, WHICH IS HOW FÜR NET PURCHASES AND CONNECTS TO THE INTERNET.

THIS ALLOWS EFNET TO INCREASE ITS INBOUND AND OUTBOUND TRAFFIC BY 1,000%, AND IT REDUCES THE COST PER GIG BY 263%. AND SO I JUST WANTED TO SHARE THAT INFORMATION TO YOU GUYS, BECAUSE I THINK IT'S VERY IMPACTFUL TO SEE WHAT THE NET TEAM HAS BEEN DOING OVER THE LAST FEW YEARS.

AND ONE OF THE REASONS WHY, AS OUR SECOND PART OF THE PRESENTATION, TO BE ABLE TO TALK ABOUT WHY WE'RE REDUCING OUR RATES.

SO AT THIS MOMENT, WHAT I'VE SHARED WITH YOU IS REALLY AN INFORMATION ONLY.

DO YOU HAVE ANY QUESTIONS THUS FAR? MR. CHAIRMAN, AT THE RISK OF SHOWING YOU HOW MUCH I DON'T KNOW ABOUT THIS SUBJECT IS LATENCY. WHAT IS LATENCY? DOES THAT MEAN IT'S LATE? WHAT IS LATENCY? SO YES, THAT'S A GOOD, GOOD QUESTION.

MANY PEOPLE TALK ABOUT SPEED. BUT LATENCY IS IMPORTANT.

SO THE WAY I WOULD LIKE TO EXPLAIN IT. SO IF YOU'VE EVER SEEN SOMEBODY IN A A QUARTER MILE DRAG STRIP, THEY RACED RACE CARS DOWN A DRAG STRIP SO YOU COULD HAVE THE MOST POWERFUL CAR THAT YOU'D EVER WANT, A THOUSAND HORSEPOWER IN IT. BUT IF THE DRIVER DOESN'T HIT THE PEDAL VERY QUICK, HE DOESN'T.

HE CAN GET BEAT BY A CAR THAT HAS LESS HORSEPOWER, HORSEPOWER.

SO IT'S THE IDEA OF HOW FAST, WHEN YOU HIT THE BUTTON, THAT THERE'S A CERTAIN DELAY IN MILLISECONDS, MEANING YOU CAN'T EVEN SEE IT. IT'S JUST SUCH A SMALL AMOUNT OF TIME.

BUT THE IDEA OF LATENCY IS WHEN YOU CLICK THAT BUTTON, YOU IMMEDIATELY GET THE ACCESS TO THE CONTENT.

FOR EXAMPLE, MANY OTHER PROVIDERS THAT ARE CABLE NETWORKS, YOU MIGHT HAVE 30 OR 40 MILLISECOND RESPONSES.

TYPICALLY, OUR CUSTOMERS GET 6 TO 7 MILLISECONDS RESPONSES.

SO YOU CAN SEE THAT THAT IS SIGNIFICANTLY FASTER.

AND PEOPLE DON'T TALK ABOUT THAT. THEY JUST TALK ABOUT SPEEDS.

I HOPE THAT EXPLAINS WHAT LATENCY WOULD BE. YES IT DOES.

THE LAG TIME. YEAH. DELAY OF TIME. YES. SO SO THE CUSTOMERS THAT YOU'RE GETTING, HOW ARE YOU? ARE THEY GETTING OFF WHAT THEY WHAT THEY'RE USING NOW AND WHAT IS WHAT ARE THEY USING NOW AND HOW ARE THEY COMING TO FÜR NET. SO I WANT TO MAKE SURE I RESTATE. SO YOU'RE ASKING HOW ARE WE ACQUIRING THE CURRENT CUSTOMERS.

YES. SO WE HAVE A MARKETING AND SALES TEAM CONSIST OF ERIC AND KYLE.

THEY'RE DOING A GREAT JOB. WE MARKET IN MANY DIFFERENT WAYS.

WE ALSO WORK REALLY CLOSELY WITH MISS RACHEL TENANTS GROUP.

AND SO WE DO MAILERS, DOOR KNOCKING. WE CALL PEOPLE AS WELL AS WE ARE ON FACEBOOK IN THOSE THINGS WE ATTEND, MANY OF THE YOU'LL START SEEING US AT MOST OF ALL THE EVENTS.

AND THEN, YOU KNOW, MANY OTHER DIFFERENT WAYS, SUCH AS JUST WORD OF MOUTH.

THOSE ARE MOST OF THE WAYS THAT WE HAVE GOTTEN IT.

WE'RE REALLY EXCITED JUST RECENTLY THAT WE'RE WORKING WITH OUR CUSTOMER SERVICE STAFF SO THAT WHEN A CUSTOMER COMES INTO THE LOBBY AND THEY SIGN UP FOR ELECTRIC UTILITIES, THEY ARE NOW IDENTIFIED TO SAY, HEY, YOU HAVE FIBER SERVICE AVAILABLE.

[00:30:02]

AND HOW DO YOU KNOW IF YOU'RE ALREADY A CUSTOMER, IF YOU'RE ELIGIBLE, IF YOU'RE.

YES. SO THE BEST WAY TO DO IT IS TO GO TO THE W.COM AND SEARCH YOUR ADDRESS.

AND IF YOU DO THAT, YOU'LL BE TAKEN TO OUR DIGITAL MARKETPLACE AND IT WILL TELL YOU IF IT'S AVAILABLE AND WHAT SERVICES ARE THERE.

OKAY. THANK YOU. ANY OTHER QUESTIONS? ALL RIGHT.

CONTINUE ON. SO, AS YOU CAN SEE, PHP.NET HAS GAINED SIGNIFICANT EFFICIENCIES IN ITS FIBER NETWORK DESIGN, CONSTRUCTION AND OVERALL CAPACITY, WHICH HAS REDUCED THE UNIT COST FOR PARCEL PASS AND THE COST PER GIG.

WITH THIS BEING SAID, PHP.NET IS A COMPETITIVE BUSINESS UNIT AND COMPETES ON ALL LEVELS FROM PRICING, SERVICE QUALITY, RELIABILITY, AND OVERALL CUSTOMER EXPERIENCE.

IN DECEMBER, PHP.NET UPDATED ITS BUSINESS PLAN AND FINANCIAL MODEL TO REFLECT THE EFFICIENCIES THAT PHP.NET HAS GAINED.

ADDITIONALLY, A MARKET STUDY WAS COMPLETED IN DECEMBER AND WAS UPDATED ON JANUARY 26TH.

PHP.NET HAS THE SAME GOAL AS FPA TO PROVIDE OUR CUSTOMERS WITH ECONOMICAL, RELIABLE AND FRIENDLY SERVICE WITH THE DESIRE TO ENHANCE THE QUALITY OF LIFE WITHIN OUR COMMUNITY. PHP.NET PRICING STRATEGY IS TO PROVIDE COMPETITIVE PRICING THAT IS TRANSPARENT AND SIMPLE.

THIS SLIDE SHOWS THE PROPOSED RATE REDUCTIONS TO ALL SERVICE TIERS, NO EQUIPMENT FEES FOR ALL COMMERCIAL COMMERCIAL CUSTOMERS, AND ADDING THE FIVE GIGABIT PER SECOND SERVICE TIER.

PHPUNIT WILL BE THE LOWEST COST AND BEST SERVICE IN THE MARKET.

THIS SLIDE SHOWS THE METRICS. THIS SLIDE IS A MATRIX SHOWING THE MARKET CONDITIONS AS OF JANUARY 26TH, AND PROPOSED RATE OFFERINGS FOR THE RESIDENTIAL MARKET.

THE PROPOSAL IS A RATE REDUCTION FOR ALL TIERS OF SERVICE AND THE ADDITION OF THE FIVE GIG SERVICE TIER.

AS OF DECEMBER 17TH, PHPUNIT WAS GOING TO BE THE LOWEST PRICE IN ALL SERVICE TIERS, BUT ON JANUARY 26TH, WE UPDATED THE MARKET STUDY. WE FOUND THAT COMCAST HAD ADDED SOME PROMOTIONAL PRICING THROUGH FEBRUARY 26TH 22ND, 2026, BUT FAR SURPASSES COMCAST AND EVERY OTHER AREA OF SERVICE.

OUR OUR PRICING STRATEGY IS TO ALIGN OUR PRICING MODEL TO COMPETE WITH AT&T, SINCE THEY ARE IN ALL FIBER PROVIDER AND WE ARE STARTING TO BUILD WITHIN SOME INSIDE SOME OF OUR SERVICE TERRITORY. THESE PROPOSED RATES POSITION EPINETTE TO BE LOWER IN EVERY SERVICE TIER EXCEPT FOR THE LOWEST TIER, WHERE WE ARE THE SAME PRICE. ALSO, SOME THINGS TO NOTE.

ONE COMCAST IS THEIR UPLOAD SPEEDS ARE SIGNIFICANTLY LOWER AS WELL AS THOSE PROMOTIONAL RATES REQUIRE AUTOPAY. AND THAT'S LIKE A $10 OFF DISCOUNT ASSOCIATED WITH THAT.

SO WITH THAT BEING SAID I'D LIKE TO ASK FOR YOUR APPROVAL FOR RESOLUTION 2020 606 AS WELL AS ANSWER ANY QUESTION THAT YOU MAY HAVE.

DO WE NEED TO HAVE OPEN THE FLOOR? NO, SIR. ANY DISCUSSION FROM THE BOARD MEMBERS? ANY QUESTIONS? I'M EXCITED. I'M GOING TO GO DOWN $100 A MONTH.

I MEAN, I GOT A YES FROM YOU. WELL, I DO HAVE A QUESTION.

CHAIR. CHAIRMAN. THE EXISTING CUSTOMERS THAT WE HAVE, WILL THEY.

ARE WE ON ANNUAL CONTRACTS WITH THEM? HOW WILL THEIR RATE BE AFFECTED AS A RESULT OF THIS? SO THEY'LL HAVE TO CALL IN AND WAIT FOR THREE HOURS TO TALK TO SOMEBODY TO TRY TO NEGOTIATE THEIR RATES? NO. THAT'S COMCAST, ISN'T IT? MAYBE IT'S SOME PEOPLE, YOU KNOW, SO WE'RE HONEST, WE'RE TRANSPARENT.

AND SO ONE OF THE THINGS THAT WE'VE ALWAYS TOLD OUR CUSTOMERS IS THAT AS OUR RATES CHANGE, IF OUR RATES REDUCE BECAUSE WE WERE EXPECTING THIS.

BUT ONE OF THE THINGS WE WANTED TO DO IS WE WANTED TO UNDERSTAND ALL OF THE VARIABLES IN THE EQUATION AND TAKE A CALCULATED APPROACH.

AND SO, MISS PEARL, WHAT WILL HAPPEN IS THE EXISTING CUSTOMERS THAT ARE IN OUR RESIDENTIAL AND COMMERCIAL TIERS, THEIR RATES WILL BE REDUCED AS WELL, EVEN THOUGH THEY'RE INSIDE OF A SERVICE CONTRACT.

OKAY. AND THE EFFECTIVE DATE OF THIS ONCE THE RESOLUTION IS APPROVED, I BELIEVE IT HAS TO GO TO THE CITY COMMISSION AS WELL.

OKAY. SO TENTATIVELY ON FEBRUARY 17TH. SO REALLY, THE RATE REDUCTION ON THE, FOR THE MOST PART, IS TO MAKE US MORE COMPETITIVE, THAT MARKETPLACE.

THAT IS CORRECT. THAT IS CORRECT. SO HOW DO YOU WELL, I GUESS YOU WOULD DO WITHOUT ANY MAJOR EXPLANATION WHEN YOU DO YOUR YEAR OVER YEAR

[00:35:02]

AND IF YOU DON'T HAVE IT, WE COULD SEND IT. IT PROVIDES SIGNIFICANT DETAILS AS WELL AS A FINANCIAL MODEL ASSOCIATED WITH IT.

AND WE'VE WORKED WITH RETAILERS. THEY'RE NOT PROFESSIONALS IN THE REALM OF MARKETING, BUT THEY DID REVIEW OUR OUR CALCULATIONS AND ALL OF OUR COSTING ASSOCIATED WITH IT. AND SO AS OF RIGHT NOW, IT LOOKS LIKE FOR EXISTING CUSTOMERS WOULD BE ABOUT A $42,000 REVENUE DECREASE.

BUT WHAT WE'LL DO IS WE PLAN ON SEEING A SIGNIFICANT INCREASE IN OUR TAKE RATE.

WE ARE ABOUT 10 TO 12% TAKE RATE CURRENTLY. AND AS YOU CAN SEE, LOOKING AT SOME OF THE RATES THAT WE HAD BEFORE WHERE DIDN'T HAVE EQUIPMENT FEES INVOLVED IN IT, WE WERE HIGHER THAN THE MARKET.

AND SO WE'RE NOT GETTING THOSE TAKE RATES THAT WE WE WERE WE WERE HOPING.

WE BELIEVE THAT THE, THE FINANCIAL MODEL AND OUR BUSINESS PLAN SHOWS THAT WE'LL TAKE 42% OR AND WITHIN SIX YEARS, THE INDUSTRY TAKES ABOUT 45% WITHIN 18 MONTHS.

SO WE'RE BEING VERY CONSERVATIVE IN THAT APPROACH.

SO THE ANSWER IS YES. ALL OF THOSE REVENUE PIECES AND THOSE COSTS ARE ARE ALL INCLUDED IN OUR FINANCIAL MODEL AND OUR BUSINESS PLAN.

OKAY. MR. CHAIR SO I ALSO SEE AN AVENUE FOR AN OPPORTUNITY TO GROW THE EXISTING CUSTOMER BASE.

SO FOR ME, I'M LOOKING AT THIS AND I'M SAYING, OH, WELL, IF I'M GOING TO GET THAT MUCH OF A RATE DECREASE, I MAY GO UP TO A LARGER BANDWIDTH. SO IS THERE GOING TO BE SOME SORT OF SALES PITCH OR A PHONE CALL TO SOME OF THOSE COMMERCIAL CUSTOMERS OFFERING SAYING, HEY, JUST TO LET YOU KNOW THIS IS GOING TO HAPPEN? WOULD YOU LIKE TO MAKE ANY CHANGES TO IT AT THIS POINT SO THAT ALL OF THAT'S DONE AT THE SAME TIME, YOU KNOW? OF COURSE, YES. SO MY MARKETING AND SALES TEAMS IS ALREADY PITCHED AND READY TO CALL EACH ONE OF OUR CURRENT CUSTOMERS AND TALK WITH THEM ABOUT THE CHANGES AND MOVE THEM INTO, YOU KNOW, HOPEFULLY THEY CAN MOVE TO A HIGHER TIER FOR LESS MONEY THAN THEY'RE CURRENTLY PAYING.

BUT IF FOR SOME REASON THEY CHOOSE TO STAY, THAT'S SOMETHING THAT WE WILL PROVIDE TO THEM IN AN HONEST AND TRANSPARENT WAY, RIGHT? AS THAT IS WHAT FPOA IS AS UTILITY. I LOVE THAT, I LOVE THAT WE HAVE THAT PERSONAL TOUCH THAT WE'RE GOING TO BE ABLE TO CONTACT ALL OF THEM. IT'S PRETTY, PRETTY IMPRESSIVE. IMPORTANT IN THIS DAY AND AGE.

YEAH. DID YOU HAVE A QUESTION? YES. I SEE HERE WITH THE 300MB PER SECOND.

THERE WAS NO PROPOSAL PROPOSED. NET CHANGE. AND IN THE COMMERCIAL, YOU DID THE COMMERCIAL ONE AS WELL. THERE WAS NONE. AND I WOULD LIKE TO KNOW WHY WAS WHY THERE WASN'T A PRICE REDUCTION IN A PROPOSED PRICE REDUCTION. SO WHAT WE'RE PLANNING ON DOING IS NOT REDUCING OR INCREASING THAT, BUT ACTUALLY ELIMINATING THAT TIER. OKAY. YOU KNOW, WITH FIBER BANDWIDTH IS IS NOT AN ISSUE.

THERE'S SUCH A LARGE CAPACITY. WE WOULD WITH ADDING THE FIVE GIG SERVICE AND WE COULD ADD ADDITIONAL SERVICES IN THE FUTURE WHENEVER WE CHOSE.

YOU KNOW, ONE OF THE THINGS WE LOOKED AT WAS WE NEEDED TO BE ABLE TO PROVIDE A VERY LOW THE LOWEST COST WE COULD, WHICH WAS 100 MEGABIT PER SECOND. RIGHT. AS WELL AS OUR GOAL WAS TO SAY, WELL, HEY, IF WE HAVE THE 300, IT'S A IT'S JUST TOO MANY OPTIONS. AND SO WE REALLY WANTED TO BE ABLE TO SAY, HEY, LISTEN, IF YOU'RE VERY, VERY BUDGET FRIENDLY AND YOU'RE TRYING TO SAVE $5, YOU GO WITH THE 100, BUT FOR FIVE TIMES THE SPEED YOU CAN FOR $10 MORE, YOU CAN GET THE 500. SO WE'RE ELIMINATING 300, SO WE'LL JUST HAVE 100 AND 501 GIG, ONE GIG TO GIG AND FIVE GIG. OKAY. ANY OTHER QUESTIONS? ALL RIGHT. DO WE NEED TO READ THE RESOLUTION? RESOLUTION NUMBER UA 2020 6-06A RESOLUTION AMENDING, SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES AND CHARGES VIA RESOLUTION NUMBER UA 2020 401. ELIMINATING AND ESTABLISHING A NEW SCHEDULE OF REDUCED RATES AND CHARGES.

CLASSIFYING SERVICE TYPES FOR THE SERVICES AND FACILITIES FURNISHED BY THE FPOA.

[00:40:01]

DO WE HAVE A MOTION TO APPROVE? YES WE DO. SO MOVE.

JUST TO BE CLEAR, EVERYBODY'S VOTING. YES. YES, YES.

CALL THE ROLL. YES, MA'AM. MRS. DAVIS. YES, MA'AM.

YES, MA'AM. YES, MA'AM. MR.. YES, MA'AM. THANK YOU.

ALL RIGHT. THANK YOU, THANK YOU. MUCH NEEDED.

GOOD NEWS. YES. ALRIGHT. DIRECTOR'S COMMENTS.

[G. DIRECTOR COMMENTS]

THAT IS BECAUSE THE MONDAY BEFORE IS A HOLIDAY.

SO THE CITY COMMISSION MEETS AT 5:00 THAT DAY.

I'D LIKE TO THANK DOCTOR BENNETT FOR HOSTING THE COMMUNITY FEEDBACK FORUM LAST THURSDAY.

IT WAS VERY WELL RECEIVED. THE FPA TEAM DID A FANTASTIC JOB WITH THEIR PRESENTATIONS AND THE ENGAGEMENT WITH THE AUDIENCE.

THE TEAM OF ERIC RACHEL, JOSH AND ASHLEY DID A GREAT JOB ANSWERING QUESTIONS AND ENGAGING WITH THE COMMUNITY.

ALSO CALVIN AND JACKIE AND VERONICA. JUST A GREAT TEAM EFFORT THERE FOR THAT EVENT.

SO THANK YOU, DOCTOR BENNETT FOR HOSTING US. THANK YOU. I'D ALSO LIKE TO SAY THANK YOU TO THE LINE CREWS WHO PROVIDED MUTUAL AID ASSISTANCE FOR THE JANUARY WINTER STORM. THAT'S NOT SOMETHING I'VE EVER SAID BEFORE.

WHICH IT WAS CLASSIFIED AS A CATEGORY THREE MAJOR WINTER STORM.

SO IT HAD OVER 80MPH SUSTAINED AND 90 MILE PER HOUR GUSTS.

IS WHAT THEY EXPERIENCED. WE HAD SIX CREW MEMBERS DEPLOYED TO JACKSON, GEORGIA, AND THEN THEY WENT TO BOSTIC, NORTH CAROLINA BEFORE COMING HOME. I COMPLETELY UNDERSTAND WHY PEOPLE COME TO FLORIDA TO HELP WITH STORM RESTORATION, BECAUSE IT'S BEAUTIFUL IN THE STATE OF FLORIDA.

BUT GOING UP NORTH IN THE COLD IS JUST NOT MY CUP OF TEA.

SO I'D LIKE TO RECOGNIZE THE TEAM THAT WENT DANIEL PERLMAN, KEVIN PARISH RYAN SPENCE, CHARLES ALFORD, MIKEY GOLDSMITH, AND LOGAN BECKETT. I THINK THEY'RE STILL IN THE THAWING PROCESS, SO HOPEFULLY WE'LL GET HIM HERE TO THE BOARDROOM AT SOME POINT.

THE NEXT THING IS, I'D LIKE TO CLOSE THE LOOP ON MY CONVERSATIONS WITH EACH OF THE BOARD MEMBERS AND CITY COMMISSIONERS FROM FOR THIS WEEKEND'S WINTER STORM.

FERN, I THINK, IS WHAT THEY WHAT THEY HOW YOU PRONOUNCE IT.

AS YOU MAY RECALL HERE LOCALLY, FORT PIERCE DID REALLY WELL.

WE RESPONDED REALLY WELL TO THE HIGH DEMAND IN POWER BECAUSE OF HEATING NEEDS FOR FOR THE COLD TEMPERATURE.

BUT THE STATE OF FLORIDA WAS PUT UNDER A PRETTY SIGNIFICANT STRESS TEST.

FLORIDIANS ARE JUST NOT USED TO THIS TYPE OF WEATHER.

I HAD A GOOD CONVERSATION WITH SOME OF THE STAFF THROUGHOUT THE PAST WEEK.

ONE OF THE BIG DIFFERENCES IS UP NORTH. THEY USE NATURAL GAS FOR HEATING, SO THE ELECTRIC SYSTEM DOESN'T CARRY THE HEATING LOAD LIKE IT DOES HERE IN THE STATE OF FLORIDA. ALSO, FLORIDIANS ARE JUST NOT PREPARED FOR THAT KIND OF WEATHER.

THEY JUST DON'T HAVE THE NUMBER OF JACKETS AND THAT KIND OF ATTIRE. FMPA POWER SUPPLY IS FOR THIS.

FOR THIS PAST MONTH WAS AROUND 4000MW, OR FOUR GIGAWATTS CAPABILITY.

THE SYSTEM REACHED JUST OVER OR JUST UNDER 3800MW, SO IT CAME PRETTY CLOSE.

ON MONDAY MORNING, WHEN EVERYBODY'S RETURNING TO WORK AND GOING BACK TO SCHOOL FMPA ACTUALLY HAS MUCH MORE CAPACITY THAN THE 4000, BUT THEY HAD MULTIPLE POWER PLANTS THAT WERE OUT DUE TO MAINTENANCE.

BECAUSE THIS IS THE SEASON FOR POWER PLANT MAINTENANCE.

THEY DON'T EVER THEY TRY TO DO EVERYTHING THEY CAN TO NOT TAKE HIM OUT DURING THE SUMMER PEAK.

THEY DO IT DURING THE WINTER PEAK. TRESCKOW'S ENERGY CENTER WAS OUT OF SERVICE FOR ABOUT FOUR DAYS BEFORE THEY GOT NOTICED THAT THIS, THIS WINTER STORM WAS COMING THROUGH. MUCH LIKE A ANY KIND OF PROJECT AT HOME.

EASY TO DEMO, BUT NOT AS FAST TO PUT IT BACK TOGETHER.

SO IT'S ACTUALLY A VERY A VERY LONG OUTAGE FOR THE TREASURE COAST ENERGY CENTER AT 45 DAYS VERY BIG OUTAGE ABOUT ONCE EVERY TEN YEARS.

SO ONCE THEY HAD TORE OUT, TORE OUT THE TAKEN APART THE TURBINE, THERE WAS NO TURNING BACK.

JUST TO WRAP UP, I'D LIKE TO THANK OUR CUSTOMERS BECAUSE OUR CALL TO CONSERVE ENERGY HELPED US NAVIGATE THE WEEKEND AS A STATE.

IT WAS VERY INSTRUMENTAL IN MAINTAINING RELIABILITY.

SO THANK YOU AGAIN TO ALL OF OUR CUSTOMERS, SPECIFICALLY THE FPA SITES.

OUR OUR INTERNAL TEAM DID A GOOD JOB. THE CITY OF FORT PIERCE, SAINT LOUIS COUNTY BOTH.

PUBLIX IS HERE IN THE CITY OF FORT PIERCE. AND AGAIN, ALL OF OUR CUSTOMERS FOR RUNNING FOR REDUCING LOAD AND RUNNING THEIR GENERATORS DURING THOSE PEAK HOURS OF THE MONDAY MORNING. THE LAST ITEM IS THE WINTER STORM.

WE'LL PUT THE DART PROGRAM, OUR DAYS OF CASH POWER COST ADJUSTMENT, THAT THAT PROGRAM WILL PUT IT TO THE TEST THIS WINTER BECAUSE COST OF NATURAL GAS WAS VERY HIGH. IT WAS 10 TO 20 TIMES HIGHER THAN WE WOULD EXPECT INSTEAD OF 3 TO $5 A TICKET.

YOU WERE IN THE 20 TO $50 A TICKET TERM. SO BUT BECAUSE OF NPAS, GAS STABILITY PROGRAM, WE WERE SHIELDED FROM THAT A LITTLE BIT.

AND THEN LOCALLY HERE, OUR DART PROGRAM IS GOING TO HELP US NAVIGATE OR SMOOTH OUT THAT FOR OUR CUSTOMERS.

[00:45:05]

IT'S GOING TO PUT IT TO THE TEST. SO JUST HAPPY ABOUT THE PROGRESS WE MADE THERE, AND HOPEFULLY IT STARTS TO WARM UP AND THE NATURAL GAS PRICES START TO STABILIZE SO THAT WE CAN KIND OF COME OFF OF THAT PEAK OF GAS PRICES.

SO THAT'S ALL I HAVE FOR THE BOARD, MR. CHAIRMAN.

THANK YOU. DO YOU HAVE ANY IDEA WHEN WE'LL HAVE THE NUMBERS ON IT ON THE DART PROGRAM TO SEE HOW WE FARED? PROBABLY IT'S GOING TO TAKE US ABOUT 30 TO 45 DAYS BECAUSE WE'RE ALWAYS A MONTH IN ARREARS BEFORE WE GET OUR BILL.

SO YES, SIR. WE'LL MAKE SURE THAT BEFORE THE PROBABLY THE MARCH WORK, THE THE MARCH 1ST OF THE MARCH BOARD MEETINGS WILL HOPEFULLY BE ABLE TO CLOSE THE LOOP WITH YOU. THE TEAM INTERNALLY MEETS EVERY MONTH, AND THEN WE ALSO MEET WITH FMPA AND OUR CONSULTANT TO, TO FOLLOW THAT THAT DART PROGRAM STATUS. SO WE'LL GIVE YOU AN UPDATE IN MARCH.

ANY OTHER COMMENTS FOR THE DIRECTOR? ALL RIGHT.

ATTORNEY REPORT. YES, SIR. YESTERDAY I SENT TO THE BOARD A LEGISLATIVE UPDATE.

[H. ATTORNEY COMMENTS]

WE TEND TO SEE THE SAME TYPES OF BILLS COME ACROSS EACH YEAR, SO WE'LL KEEP AN EYE ON THEM AND WE'LL LET YOU KNOW IF THERE'S ANY CHANGES.

THEY'RE ALREADY CHANGING. I THINK THE MEMO I SENT TO YOU YESTERDAY IS ALREADY OUTDATED, BUT I'LL KEEP YOU IN THE LOOP ON THE ON THE CHANGES THERE.

AND I ALSO SENT YOU A MEMO WITH A VERY BRIEF OUTLINE ON WHAT THE PSC REGULATES.

MR. CHAIRMAN, I, I DID NOT GET THAT. I THINK IT'S BECAUSE WE'RE HAVING TROUBLE WITH THE MIGRATION.

YES, THE MICROSOFT 365 MIGRATION. OKAY, I WILL MAKE SURE THAT MIGHT HAVE TO SEND IT TO MY CITY ADDRESS TILL THEY FIGURE IT OUT.

YES, MA'AM. WE'LL DO. TEAMS NEED TO TALK TO EACH OTHER AND WORK IT OUT.

UNDERSTOOD. OKAY. THANK YOU, MR. CHAIR. REGARDING THAT MEMO IT WAS INTERESTING TALKING ABOUT THE INCREASES IN RATES TODAY AND THE REINVESTMENT INTO OUR OWN UTILITY.

THAT WAS DEFINITELY AN AN UNDERLYING THEME IN A MAJORITY OF THOSE BILLS THAT WERE THERE IS PRETTY SAD THAT OUR STATE AND GOVERNMENT HAVE TO OVERLOOK OTHER MUNICIPALITIES AND UTILITIES TO TELL THEM THAT THEY HAVE TO REINVEST IT.

BUT THANKFULLY, WE HAVE GREAT LEADERSHIP HERE AND WE'RE ALREADY DOING THAT.

SO JUST A TESTAMENT TO WHO WE ARE, I THINK. YEAH.

AND I DON'T KNOW IF, MR. CHAIRMAN, IF ONE OF THE BILLS YOU TALKED ABOUT WAS ABOUT THE SURGE SURCHARGE IN THE TRANSFER BECAUSE THAT'S BUT ONE I WAS IN TALLAHASSEE LAST WEEK, AND ONE LEGISLATOR I TALKED TO IS USING THE EXAMPLE OF GAINESVILLE AND I THINK TALLAHASSEE AND THAT'S THAT DRIVE INDIVIDUAL CASES, DRIVE THE LEGISLATION AND THEN AFFECTS US ALL, YOU KNOW, SO THAT THAT THAT WAS HIS HIS EXAMPLE. AND WE WERE WELL WITHIN ALL THE LIMITS THAT WE WERE.

YEAH. RIGHT. RIGHT. MADAM MAYOR, IF I MAY ADD YOU'RE ABSOLUTELY RIGHT.

AND I THINK ONE THING THAT'S VERY DIFFERENT FROM WAS THAT OUR CHARTER WAS VERY WELL WRITTEN A VERY LONG TIME AGO TO PUT US IN THE POSITION WE'RE IN RIGHT NOW.

SO WE, YOU KNOW, NOBODY'S EVER SAFE. BUT IF WE WERE, WE WERE ON THE WE'RE ON THE RIGHT.

WE'RE SAFER THAN OTHERS FOR SURE, BECAUSE OF THE WAY THE CHARTER SAFE TERRITORY FOR NOW. BUT YOU NEVER KNOW, YOU KNOW. SO. ALL RIGHT. ANY OTHER COMMENTS FROM THE BOARD MEMBERS?

[I. BOARD MEMBER COMMENTS]

BUT EVEN FURTHER, WITH THE WAY THAT JUST LOOKING AT ALL OF THE INFORMATION THAT FEED INTO THE SUMMARIZED PRESENTATION WE RECEIVED TODAY REGARDING THE DIFFERENT RESOLUTIONS PRESENTED FOR ELECTRIC, WATER, WASTEWATER AND GAS, TO SEE ALL OF THE INFORMATION THAT IS CONSIDERED AND TO REALIZE THAT ASIDE FROM NUMERIC CALCULATIONS, JUST TO KNOW THAT THERE IS A DEGREE OF MINDFULNESS OF HOW IT WILL IMPACT THE CUSTOMERS PLAYS A PART IN THE OVERALL CALCULATION. IT REALLY MAKES ME TAKE A LOT OF PRIDE IN ALL THAT YOU DO, AND I CAN APPRECIATE THAT.

AND I'M SURE THE CUSTOMERS DO AS WELL. AND I COULDN'T GO WITHOUT MENTIONING.

[00:50:02]