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[Call to Order]

[00:00:56]

THAT WILL BE FAIR TO BOTH THE RESIDENTS OF FORT PIERCE AND TO THE UTILITIES AUTHORITY GOD AS YOU BLESS THIS BOARD WE ASK YOU TO BLESS THE EMPLOYEES ALSO AND KEEP US IN YOUR CARE IN JESUS'S 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. >>

(TAKING ROLL CALL) >> ARE THERE ANY CHANGES TO THE

[Item A]

AGENDA OR WOULD SOMEONE LIKE TO MAKE A MOTION TO APPROVE IT?

>> MOVE TO APPROVE. >> SECOND.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

[Item B]

>> ITEM B IS THERE ANYONE TIMING APPROVE THE MINUTES?

>> MOVE APPROVAL. >> ON PAGE 20, DOWN IN THE LAST OF THE PARAGRAPHIST JUST A SMALL CORRECTION.

MYSELF AND AN ATTORNEY -- WAS ASKING QUESTIONS AND I SAID HE GOT ONE PART AND I GOT THE OTHER, AND YOU HAVE IT TYPED IN HANK, AND I WOULD LIKE FOR IT TO BE STRAIGHT.

>> OKAY. >> PAGE 20, YOU SAID?

>> AND I BELIEVE YOU MIGHT CORRECT ME BUT A LOT OF PEOPLE

KNOW HIM AS HANK AS WELL. >> EITHER ONE IS GOOD.

>> WE'LL LEAVE IT AT THAT. >> MOVE APPROVAL.

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

(TAKING ROLL CALL) >> ANY COMMENTS FROM THE PUBLIC? SEEING NONE WE WILL MOVE TO THE CONSENT --

>> ANY COMMENTS. >> EXCUSE ME MA'AM, DID YOU WANT TO TALK ABOUT THE RATES OR -- OKAY.

LET'S KEEP GOING. >> OKAY, CONSENT AGENDA, ANYBODY

[Consent Agenda]

HAVE ANYTHING THEY WANT TO PULL OR.

>> MOVE APPROVAL. >> SECOND.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

>> I WOULD LIKE TO TAKE THIS TIME TO CRASHING MS. MYKA, OUR NEW DIRECTOR OF FINANCE.

[Item G1]

MR. TOM PECK. >> FIRST THIS AFTERNOON IS AN INFORMATION PRESENTATION ON OUR S&P RATING BY THENNA PENEC.

>> THANK YOU MR. TOM PECK, IT IS MY PLEASURE TODAY TO PRESENT TO YOU MADAM CHAIR, AND BOARD OF DIRECTORS, ANOTHER AFFIRMED BOND RATING, IN THIS CASE IT'S FROM STANDARD AND DOOR POOR, A NUMBER OF MEETINGS AGO WE DID BRING FORTH A SIMILAR PRESENTATION FROM FITCH RATINGS, THEY HAD PROVIDED US IN A PLUS RATING.

THIS IS AN AFFIRMED RATING OF AN A.

IT IS THE SAME RATING THEY HAD BEEN PROVIDING US PREVIOUSLY.

IT IS NOT AS FAVORABLE AS THE FITCH RATING, BUT I'M VERY THANKFUL THAT WE RECEIVED THE A-RATING.

WE HAD A GREAT DEAL OF DISCUSSION WITH STANDARD AND POORS, AND IN AN EFFORT TO DIFFERENTIATE THE TWO DIFFERENT RATINGS, I'M GOING TO DRILL IN JUST A TINY BIT INTO THE WHAT

[00:05:02]

DROVE THAT RATING. FIRST OF ALL, STRONG OPERATIONAL AND MANAGEMENT ASSESSMENT. WE HAVE A DIVERSE POWER SUPPLY.

AND CREDIT SUPPORT OF FINANCIAL AND CAPITAL PLANNING PRACTICES.

THAT BASICALLY SAYS WE'RE DOING GOOD.

VULNERABLE MARKET POSITION AND WHAT THEY MEAN BY THAT IS THAT THEY VIEW WEEK DEMOGRAPHICS AND HIGH RATES, BASICALLY LOW-INCOME. AS A CONSTRAINT ON REVENUE RAISING FLEXIBILITY. AND CERTAINLY THAT'S A TOPIC FOR LATER ON THIS AFTERNOON. THE BOTH OF THESE RATINGS FOCUS VERY MUCH ON THE ELECTRIC SYSTEM, NOT REALLY THE WATER AND WASTEWATER SYSTEMS SO MUCH, BUT VERY INTERESTING TO SEE HOW THEY VIEW US -- JUST SLIGHTLY DIFFERENTLY.

LOW-INCOME -- AND HIGH UNEMPLOYMENT RATE.

THERE IS ANOTHER REMARK THEY HAVE IN HERE ABOUT INDUSTRY-RISK STRONG INDUSTRY RISK. WELL, IF YOU DRILL ON TO PAGE 4, THAT'S A GOOD THING NOT A BAD THING.

IT SOUNDED TO ME LIKE IT WAS A BAD THING BUT WHAT THEY'RE SAYING IS THEY CONSIDER INDUSTRY RISK FOR RETAIL ELECTRIC AND GAS UTILITIES AS VERY LOW AND THEREFORE EXTREMELY STRONG.

THE RISK IS LOW, SO THE THAT IS A STRONG INDUSTRY RISK WHICH LIKE I SAY IT SOUNDS BAD BUT IT'S NOT.

AND WHEN COMPARED TO OTHER INDUSTRIES AND SECTORS.

SO THAT WAS ANOTHER PLUS IN OUR FAVOR AND THE OTHER PIECE OF THE RATING TALKS ABOUT THE OUTLOOK. OUR FUTURE.

AND THEY'VE PROVIDED US WITH A RATING OF A STABLE OUTLOOK, WHICH IS OBVIOUSLY VERY GOOD TO HEAR AND WE PRODUCE STRONG AND STABLE FINANCIAL METRICS, MEANING OUR RATIOS LOOK GOOD.

EVERYTHING LOOKS GOOD. BUT, THE REASON FOR MY CONCERN AND THEIR CONCERN WAS THAT BASED ON OUR CURRENT BUDGETS, LIQUIDITY MAY WEAKEN OVER THE NEXT TWO YEARS, BUT THEY DO THE RATING JUST LIKE FITCH EVERY TWO YEARS.

THEY DON'T EXPECT IT TO BE SIGNIFICANTLY WORSE IN THE NEXT TWO YEARS, BUT IF THE COVERAGE METRICS DECLINE FURTHER, THEY ARE INDICATING THAT THE RATING AND/OR THE OUTLOOK COULD COME UNDER PRESSURE, AND THAT'S NOT A GOOD THING, SO WE JUST NEED TO CONTINUE TO WATCH OUR FINANCIAL CONDITION, MOVING FORWARD, AND WELL -- I SORT OF WANT US TO SPEND THE MONEY WE'VE BUDGET SAID, BUT I SORT OF DON'T, I'M KIND OF ON THE FENCE.

IN ANY EVENT, SO, OVERALL AGAIN THEY HAVE GIVEN US -- OH, AND THE OTHER ONE THING THEY MENTIONED THAT I THOUGHT WOULD BE OF INTEREST TO YOU IS THAT THE UTILITIES DEFINE BENEFIT PENSION PLAN IS WELL FUNDED AT 93%, AND THAT OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS ARE MINIMAL.

SO AGAIN WE STAND VERY STRONG AT THIS TIME, AND THEY'LL BE BACK IN TWO YEARS, BOTH OF THEM. ARE THERE ANY COMMENTS OR QUESTIONS? THIS IS AN INFORMATION-ONLY

ITEM. >> I HAVE A QUESTION.

SO THE UNEMPLOYMENT RATE IN SAINT LUCIE COUNTY IS NOT HIGH.

>> NOT TODAY, CORRECT. >> AND SO WHEN WERE THESE

DISCUSSIONS. >> THIS WAS BASED ON FISCAL 2018 DATA. WE STILL DON'T HAVE FISCAL 2019 NUMBERS YET. SO --

>> BECAUSE IT'S A LITTLE LIKE 3.9.

>> IT HAS IMPROVED SINCE THEN. >> YES.

>> THOSE TYPE THINGS WE CAN'T CONTROL STILL AFFECT OUR RATING.

THAT'S A -- >> WHAT I'M SAYING IS TODAY THAT

IS NOT SO. >> THAT IS AN ABSOLUTELY

WONDERFUL UNEMPLOYMENT NUMBER. >> RIGHT, TODAY.

>> THANK YOU FOR BRINGING THAT FORTH.

>> I THINK IT'S IMPORTANT TO NOTE THEY DID THIS BASED ON OUR RATES AND IN 2017. THAT'S CERTAINLY NOT THE CASE ANYMORE. THEY SAID WE WERE 100 PERCENT OF

THE STATE AVERAGE. >> I HAVE ONE.

ON FINANCIAL RISK, YOU PROJECTS -- NO PROJECTION FOR OUR NEW YEAR COMING UP FOR 2020. FOR 2019?

[00:10:06]

>> THE ACTUAL WERE BASED ON 2019 BUT IT HAD A FIVE-YEAR LOOK FORWARD. IT DID PROJECT OUT FIVE YEARS.

>> ALL RIGHT. >> THANK YOU.

[Item G2]

>> NEXT IS A NORTH BUDGET REQUEST FOR WATER MAIN AND GRAVITY SEWER WORK. JAMES CARNES WILL MAKE THE

PRESENTATION. >> THANK YOU MADAM CHAIR, MEMBERS OF THE BOARD. BUDGET APPROXIMATELY A MILLION DOLLARS A YEAR THAT -- OF THE 7 PROJECTS SLATED FOR FISCAL YEAR 2020 NORTH TENTH STREET FROM AVENUE E TO AVENUE L RATED SECOND ON THAT LIST. FUNDING IS AVAILABLE AND FY20 CAPITAL BUDGET UNDER PROJECT 617, AND 817 FOR THE WATER AND WASTEWATER PROJECT EXPECT A TO COST AROUND $400,000, $388,000 FOR WATER, AND FUNDS ARE AVAILABLE ON EXISTING -- IF THERE ARE ANY QUESTIONS I WOULD BE HAPPY TO ANSWER THEM.

>> I HAVE A QUESTION, ARE YOU COORDINATING THESE WITH THE CITY KNOWS ABOUT WE'RE DOING THIS WORK THERE?

>> ABSOLUTELY WE HAVE THREE COORDINATION MEETINGS A YEAR WHERE WE DISCUSS OUR PROJECT WORK LOAD FOR THE YEAR.

PROJECT WE'RE WORKING ON NOW WE'RE WORKING IN A COLLABORATIVE CAPACITY WITH WHICH CITY TO IMPROVE THE ROADWAY, WHICH IS

AVENUE NORTH A STREET IN FACT. >> OKAY.

>> IF I CAN MAKE A COMMENT MADAM CHAIR, WORTHWHILE PROJECT IN OUR NEIGHBORHOOD. I KNOW IT'S LONG OVERDUE SO I APPRECIATE ANY GOOD STUFF, KEEP ON GOING.

>> YES, SIR.

>> ANYBODY ELSE?

>> I MOVE APPROVAL. >> SECOND IT.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

>> NEXT ITEM IS THE PURCHASE OF WATER METER REGISTERS.

[Item G3]

>> THANK YOU MR. TOM PECK. GOOD AFTERNOON MADAM MAYOR, MADAM CHAIR, MEMBERS OF THE BOARD.

I AM HERE TO REQUEST APPROVAL OF POA15-11 THE SINGLE SOURCE OF NEPTUNE WATER REGISTERMETERS FROM SUNSHINE METER SUPPLIES IN THE AMOUNT OF $10,000 ANNUALLY -- THE PURCHASE WILL ALLOW THE RETROFIT OF EXISTING WATER METERS TO INTEGRATE INTO THE AMI, ADVANCED METER INFRASTRUCTURE PROJECT OVER THE NEXT FUSE YEARS. THESE RETROFITS WILL ALLOW COMMUNICATIONS BETWEEN EACH WATER METER, AND VARIOUS DATA COLLECTORS IN THE FIELD ONCE INSTALLED.

AT A COST OF $88 PER REGISTER, APPROXIMATELY 3,522 EXISTING METERS PER YEAR WILL BE RETROFITTED.

IT IS IMPORTANT TO NOTE THAT -- SUN STATE METER SUPPLY IS AN AUTHORIZED DEALER IN THE STATE OF FLORIDA FOR NEPTUNE WATER METER REGISTERS. IS THERE ANY QUESTIONS?

>> MOVE TO APPROVE. >> SECOND.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

[Item G4]

>> NEXT ITEM IS A CONTINUATION OF THE REPLACEMENT OF THE KEY CARD ACCESS CONTROL SYSTEM, AND TOM FRIER WILL MAKE THE

PRESENTATION. >> THANK YOU.

MADAM CHAIR, AND BOARD MEMBERS. I'M HERE TONIGHT TO REQUEST THE APPROVAL FOR THE CONTRACTS OF PURCHASES AND INSULATION MAINTENANCE AND SUPPORT OF PHASE 3 OF THE ACCESS CONTROL SYSTEM WITH COMPLETE ACCESS CONTROL IN THE AMOUNT AROUND $385,093, COMPLETE ACCESS CONTROL WAS AWARDED THE BID FOR THE EMERGENCY SERVICE CENTER WHICH THE BOARD PROVED BACK IN 2018.

THEY FINISHED THE PROJECT IN LATE NOVEMBER OF 2018.

PHASE TWO WAS FOR THE ADMIN AND BOSTON BUILDINGS WAS APPROVED BY THE BOARD PAST APRIL, AND FINISHED IN JULY.

PHASE THREE WILL INCLUDE THE WATER TREATMENT PLANT, WATER RESOURCE, FACILITIES, OBSERVATIONS EDUCATION CENTER, SUB-STATION, AND A FEW ADDITIONAL DOORS AT THE ADMIN AND ESE BUILDING. I'LL BE GLAD TO ANSWER ANY QUESTIONS YOU MAY HAVE AT THIS TIME.

APPROVED. >> SECOND.

>> THANK YOU. >> PLEASE CALL THE ROLL.

(TAKING ROLL CALL) >> NEXT ITEM IS BUDGET TRANSFER

[Item G5]

REQUEST AND CONTRACT PROPOSAL FOR REUTILITIESING THE DRIER BUILDING AT THE WATER TREATMENT PLANT.

KEY STEVENS WILL MAKE THE PRESENTATION.

[00:15:03]

CHAIR, AND BOARD MEMBERS. I AM HERE TODAY ABOUT RFP19-22 THE DRIER BUILDING REUTILIZATION.

WE CURRENTLY HAVE A BUILDING BUILT IN THE MID-1980S THAT IS E SLUDGE WE HAVE. WE FOUND OUT IT WAS ECONOMICAL TO DO IT THAT WAY YEARS AGO WHEN THEY ABANDONED THAT PROCESS SO NOW WE HAVE -- WE'VE REMOVED THE EQUIPMENT AND HAVE ALL THIS EMPTY SPACE. THE PROBLEM WITH IT IS WE THOUGHT ABOUT BUILDING A NEW BUILDING BUT THE SITE PLANNING AND THE WAY THE STATE IS ON THAT WE JUST DON'T HAVE THE ROOM ON THE EXISTING PLANT SITE WE HAVE, SO WE HAVE TO REUTILIZE THE BUILDING WE HAVE. WHAT WE WANT TO USE THE BUILDING FOR IS FOR OFFICE SPACE FOR MY SUPERVISE, FORMANT AND MY MAINTENANCE STAFF THEY'RE IN AREAS THAT WEREN'T SET FOR THAT PURPOSE RIGHT NOW. SOME ARE EVEN IN -- WITH THEIR COMPUTERS. WHAT I'M ASKING FOR IS TO APPROVE THE BUDGET TRANSFER REQUEST TOTALING $150,000 AND ACCEPT THE PROPOSAL AND APPROVED CONTRACT FOR REUTILIZATION OF THE DRIER BUILDING AT THE WATER TREATMENT PLANT, WITH A THOMAS CONSTRUCTION IN FORT PIERCE FLORIDA, IN THE AMOUNT NOT TO EXCEED 379,250, AND ARE THERE ANY QUESTIONS?

IN THERE? >> 15.

>> WITH THREE SUPERVISORS. >> ONE SUPERVISOR AND TWO MORE MEN SIR. -- TWO FOREMEN SIR.

>> I WOULD BE BRAVE ENOUGH TO APPROVE IT.

>> SECOND. >> PLEASE CALL THE ROLL.

(TAKING ROLL CALL) >> THE NEXT ITEM IS RESOLUTION

[Item I1]

2019-07, WHICH IS THE PARTICIPATION AGREEMENT WITH FMPA FOR THE SECOND SOLAR PROJECT, THE MAYOR AND MYSELF AND -- WERE UP IN ST. CLOUD YESTERDAY.

THEY BROKE GROUND FOR THE FIRST SOLAR PROJECT.

IT WAS A NICE -- IF YOU WANT TO ADD WORDS TO THAT BUT THEIR GOING TO START BUILDING THAT AND THAT SHOULD BE DONE IN JUNE OF 2020. IT DOESN'T TAKE TOO LONG.

>> WELL WE WERE OUT IN A VERY, VERY VACANT FIELD ON RANCH PROPERTY BELONGING TO THE MORMON CHURCH.

DESIREE RANCH, AND SO TWO LEASES ARE ON THAT.

HARMONY, AND OPINION SET SO I'M SURE -- IT WAS VERY INTERESTING

AND -- >> THANK YOU MR. TOM PECK.

MADAM CHAIR, MEMBERS OF THE BOARD IT'S MY PLEASURE TO PRESENT TO YOU ANOTHER OPPORTUNITY FOR FPOA TO INVEST IN RENEWABLE ENERGY IN THE STATE OF FLORIDA.

PROJECT 2 FROM FMPA CONSISTS OF TWO SITES, UP IN ALATCH WUAND PUTNAM COUNTIES, ROUGHLY 149, 150 MEGA WATTS.

TWO 4. P MEGA WATT FACILITIES THE REASON THEY DON'T GO LARGER THAN THAT IS THERE IS ADDITIONAL PERMITTING AND THAT'S WHY THEY STUCK WITH UNDER THE 75 MEGAWATTS PER SITE.

WHICH IS 4-500 ACRES, AND COMES OUT TO BE 300 PANELS PER SITE.

ON THE RIGHT-HAND SIDE YOU CAN SEE THE LIST OF THE PARTICIPANTS, FPOA IS LOOKING AT UP TO 15 MEGA WATTS OF POWER FROM THIS FACILITY. THE SUPPLIER FOR THIS PROJECT ID OUT OF MIAMI. AND HERE IS A COUPLE OF THE LOCATIONS JUST TO GIVE YOU AN IDEA OF WHERE THEY'RE AT WITH THE PANELS INSIDE THE STATE OF FLORIDA.

WE DID A TOUR OF THE REEDY CREEK, AND I'LL SHOW YOU A COUPLE OF THE PICKS HERE. JUST TO GIVE YOU AN IDEA OF WHAT THE SOLAR PANELS WILL LOOK LIKE. SO WHAT IS THE PROCESS WE HAVE TO GO THROUGH? REGIUS WILL SIGN A PURCHASE POWER AGREEMENT WITH FMPA, AND FMPA WILL THEN SIGN AGREEMENTS ON THE LEFT-HAND SIDE THE ALL REQUIREMENTS PROJECT WHICH IS WHAT WE ARE, AND ALSO ON THE RIGHT-HAND SIDE IS ALL THE NON-ARP MEMBERS THAT BELONG TO FMPA, WHAT WE'LL DO TONIGHT IS HOPEFULLY PASSING THE PARTICIPATION AGREEMENT IN ADDITION TO THE RESOLUTION TO GO AHEAD AND MOVE FORWARD WITH THIS. THE SAME PROCESS WILL HAPPEN OVER ON THE NON-ARP SITES.

SOME OF THE PROS AND CONS THAT COME WITH THIS PROJECT HERE ATE

[00:20:03]

20-YEAR CONTRACT TERM. WE CHOSE TO GO WITH THAT ROUTE AND NOT DO ANY FIVE-YEAR RENEWABLES IS BECAUSE WHAT WE'RE SEEING IN THE INDUSTRY THE LONGER WE WAIT THE LOWER THE PRICE GETS. CURRENTLY WE'RE LOOKING AT AN ENERGY PRICE OF LESS THAN 20 MEGA WATT HER HOUR DELIVERED -- NOT DELIVERED BUT PRODUCED ON THE SITE, 2% ESCALATION OVER A 20-YEAR PERIOD. THIS GIVES US A BETTER UPFRONT PRICE AND A BETTER LONG-TERM SOLUTION.

JUST TO GIVE YOU IDEAS AS FAR AS WHEN WE SIGN PROJECT 1 BACK IN FEBRUARY OF 2018, WE SIGNED THAT CONTRACT AT LESS THAN $40 PER MEGA WATT HOUR, AND NOW WE'RE LESS THAN $28 PER MEGA WATT HOUR. SO YOU CAN SEE THE ECONOMY OF SCALES IS REALLY DRIVING SOLAR PRICES DOWN THROUGHOUT THE NATION. AS I MENTIONED FPOA SHEAR IS UP TO 15 MEGA WATTS WHICH WILL BRING OUR TOTAL SOLAR PARTICIPATION TO 18 MEGA WATTS FOR OUR LOAD WHICH IS ROUGHLY 150-106 MEGA WATTS TOTAL PEAK RIGHT NOW.

15-18% OF OUR TOTAL LOAD OR TOTAL POWER WILL BE COMING FROM A RENEWABLE SOURCE.

BESIDES ENVIRONMENTAL BENEFITS AS WE ALL KNOW THERE IS NO EMISSIONS TO SOLAR, THERE WILL BE SOME FILL-IN POWER WHEN THE SUN IS NOT SHINING BUT IF IT TURNS OUT LIKE IT DID YESTERDAY WE'RE GOING TO BRING THE MAYOR TO THE SOLAR SITE BECAUSE THE SUN CAME OUT OF THE CLOUDS AND IT WAS A NICE SUNNY DAY.%

>> THAT HAD A LOT TO DO WITH IT. >> THIS CONTRACT WILL HAVE NO MAINTENANCE COST IT'S ALL BUILT INTO THE CONTRACT.

THEY WILL BE THE MAIN SUPPLIER MAKING SURE ALL THE POWER IS COMING OUT THERE. AND WE SEE THE POTENTIAL OF HAVING CREDITS ON OUR POWER BILL BECAUSE OF THE NEVER-ENDING CHANGING PRICE OF GAS AND STUFF IN THE MARKET AS IT IS.

THE CONS, IT'S THE SAME THING AS THE CONS FROM THE CREDITS, IT HAS THE POTENTIAL OF BEING A LITTLE BIT HIGHER COST, BECAUSE OF THE LOW GAS PRICES AND THE MARKET.

THERE IS ALSO A SLIGHTLY RISK TO ALL ARP MEMBERS BUT IF YOU REMEMBER RIGHT WHEN WE FINALIZED THE DEAL WITH VERO BEACH TO GET OUT OF THE CONTRACT IF YOU REMEMBER THE CONTRACT, THE SAME ATTORNEYS PUT TOGETHER THIS CONTRACT SO I'M PRETTY SAFE TO SAY THERE IS VERY LOW RISK FOR ANY OF THE MEMBERS.

KNOW THE MAYOR WANTS TO SEE THIS ONE.

IN THE MIDDLE THERE IS ALL OF US WITH THE CEREMONIAL SHOVELS AND WE APOLOGIZE FOR NOT MAKING THE GOLD-PLATED SHOVELS BUT JUST TO LET YOU KNOW THAT -- COMMENTS ABOUT THOSE THAT DON'T KNOW HOW TO USE A SHOVEL, AND WE SAW A COUPLE OF THOSE. THE OTHER TWO PICTURES ARE THE ORIGIS SITE WHICH SERVED DISNEY, AT REEDY CREEK.

THESE WILL BE THE SAME TYPE OF SOLAR PANELS WE'LL SEE IN PUTNAM, AND ALATCH WUCOUNTY, AND AS WE GET FURTHER ALONG I'M SURE THERE WILL BE GROUND BREAKINGS AND TOSSING OF DIRT FOR THAT.

SO WHERE DO WE GO FROM THERE. THE NEXT STEP WE HAVE IS THE APPROVAL OF RESOLUTION 2019-7 WHICH LOCKS IN OUR ALLOCATION OF NO MORE THAN 15 MEGA WATTS TOTAL OUTPUT FROM THIS PLANT, AND ALSO THE APPROVAL OF THE SOLAR PARTICIPATION AGREEMENT FOR THE SAME THING WITH FMPA. ONE OF THE THINGS WE'RE ALSO DOING IN THE FUTURE IS WE'RE GOING TO BE WORKING WITH OUR RATE CONSULTANT TO GENERATE A RATE TARIFF TO BE ABLE TO SELL SOLAR POWER TO OUR CUSTOMERS DIRECTLY.

WE'RE NOT QUITE SURE HOW THAT'S GOING TO WORK OUT NOW BUT WE'RE GOING TO BE WORKING ON THAT. WE'RE ALSO GOING TO BE LOOKING BE A PRIME SPONSOR OF THIS AND START PURCHASING ALL OF OUR POWER FROM THE SOLAR FIELDS AND IF THE CITY WOULD LIKE TO DO THAT WE WOULD BE MORE THAN HAPPY TO WORK WITH YOU TO BE A TRULY RENEWABLE SOURCE OF POWER FOR BOTH ENTITIES.

FMPA IS PUSHING TO GET ALL THESE THROUGH THE CITIES AND THERE IS A LONG PROCESS. SOME DO SINGLE READS, SOME DO DOUBLE READS, THEY NEED TO HAVE THIS COMPLETED AND THE AGREEMENT SIGNED BEFORE THE END OF THE YEAR TO MAKE SURE THEY GET THEIR SOLAR TAX AND CREDITS AVAILABLE TO THEM.

WITH THAT I'LL BE HAPPY TO ANSWER ANY QUESTIONS BEFORE WE

GET TO ANY OF THE VOTING. >> YES SIR.

>> WE HAVE ONE OF THESE WOW QUESTIONS.

>> I HAVE WILD ANSWERS. >> WE TALK ABOUT MAYBE 20 YEARS OUT, AND WE ARE LOOKING AT SOLAR, WHAT DO YOU THINK WE'LL HAVE WHEN CLIMATE CHANGE COMES INTO EXISTENCE?

>> IF IT GOES WITH WHAT THE INDUSTRY EXPERTS ARE SAYING THE MORE WE CAN REDUCE EMISSIONS THE BETTER OFF WE'RE GOING TO BE WITH CLOG. I WAS READING AN ARTICLE THIS MORNING THAT THERE IS A SOLAR PROJECT THAT IS WORKING WITH BILL GATES. HE'S IS ONE OF THE FOUNDING MEMBERS OF IT AND THEY USE MIRRORS, AND THEY FOCUS THE OVER A THOUSAND KELVIN, TO BE ABLE TO MELT STEEL.

THEY'RE TARGETING RIGHT NOW THE UTILITY SPENDINGERS, THE POWER

[00:25:01]

PLANTS OF COURSE, BUT THERE ARE REALLY NO SOLUTION OUT THERE FOR THE INDUSTRY. THE COAL PLANTS FOR STEEL PRODUCTION, THOSE TYPE OF THINGS.

SO THIS IS WORKING TOWARDS THAT. WITH ALL THE SOLAR THAT'S GOING IN WILL THERE STILL BE A NEED FOR CARBON-BASED PLANTS? YES. AND THE REASON FOR THAT IS BECAUSE AS WE ALL KNOW THE SUN DOESN'T ALWAYS SHINE SO WE NEED TO HAVE SOME TYPE OF POWER TO DO THE ENTITY WHEN THE SUN IS NOT THERE, BUT THIS WILL HELP EMISSIONS TREMENDOUS.

A LOT OF STATES STARTED WHAT THEY CALL RENEWABLE PORTFOLIO STANDARDS WHERE THEY REQUIRED EACH UTILITY TO MAKE SURE A CERTAIN PERCENTAGE OF THEIR POWER WAS BEING GENERATED FROM A

RENEWABLE SOURCE. >> THAT'S WHY I ASKED THE QUESTION, IS THERE STILL GOING TO BE A NEED DOWN THE ROAD.

>> THERE WILL STILL BEAD A NEED BECAUSE THEY'RE WORKING NOW WITH SOLAR AND BATTERY STORAGE. BUT BATTERY STORAGE YOU HAVE TO PRODUCE THAT THROUGH A PLANT SO I HAVE EMISSIONS THERE TOO.

AS TECHNOLOGY PROGRESSES, I SEE MORE AND MORE A BACKTRACKING OFF OF FOSSIL FUEL TYPE PLANTS TO COAL PLANTS, STUFF LIKE THAT BUT THERE WILL ALWAYS BE A NEED FOR SOME TYPE OF QUICK START WHICH

IS NORMALLY YOUR GAS TURBINES. >> HOW MUCH WILL 18 MEGA WATTS FOR PRACTICAL -- DO FOR THE CITY OF FORT PIERCE.

>> THE 15 MEGAWATTS WE'RE LOOKING AT GETTING RIGHT NOW IS ROUGHLY 3,000 CUSTOMERS. SO THEY FIGURE 5 KILL O WATTS

PER CUSTOMER. >> TOTAL '18 WOULD BE MORE THAN

THAT. >> MORE THAN THAT.

>> YEAH.

>> THE WHEELS ARE TURNING, BUT I'LL GET BACK TO YOU ON THAT

ONE. >> DIDN'T HE SAY THAT THE THREE AREAS THAT WE BROKE GROUND YESTERDAY ARE SOMEWHERE AROUND

45,000? >> AROUND 45,000 RESIDENTS WILL BE SUPPLIED POWER OUT OF THOSE THREE SITES.

>> AND DIDN'T HE -- ISN'T KISSIMMEE, OR ORLANDO THAT IS DOING THEIR WHOLE CITIES WITH SOLAR.

>> ORLANDO IS LOOKING TO BE 100 PERCENT RENEWABLE CITY WIDE AS A PORTION OF THERE IS. THE SUN IS NOT ALWAYS OUT THERE, BUT I BELIEVE WHAT THE GENTLEMAN FROM UOC WAS TALKED 100 MEGA WATTS OUT OF THE # 25 THAT IS -- 225 THAT IS PROJECT ONE GOING

STRAIGHT TO ORLANDO. >> MADAM CHAIR, PAUL, WHAT ARE THE ADVANTAGES OF US PROVIDING RENEWABLE ENERGY TO OUR CUSTOMERS IN CONTRAST TO THEM INSTALLING SOLAR PANELS ON THEIR HOUSE OR IN THEIR YARD? ARE THERE ADVANTAGES IN THIS

METHOD THAN THE OTHER? >> DOING A COMMUNITY SOLAR TYPE PROJECT THERE IS COST ADVANTAGES.

THE COST TO PUT INDIVIDUAL PANELS UP ON A ROOF ARE A WHOLE LOT MORE I DON'T HAVE THE EXACT PERCENTAGE HIGHER BUT DOING AN OVERALL COMMUNITY-BASED OR UTILITY BASED SIMILAR TO WHAT WE'RE DOING RIGHT HERE THERE IS MAJOR COST ADVANTAGES TO THAT.

PLUS THERE IS NO CAPITAL OUTLAY FOR CUSTOMERS TO PURCHASE THOSE PANELS AND GO THROUGH THE ELECTRICIANS AND THE NET METERING THAT WE REQUIRE SO THOSE ARE SOME OF THE ADVANTAGES, BUT IT IS A COST-SAVINGS FOR THEM.

PLUS THEY DON'T HAVE TO WORRY ABOUT LEAKY ROOFS, THOSE TYPE OF

THINGS AS WELL. >> OR COMING OFF DURING A

HURRICANE. >> THAT'S THE SCARY THING.

>> THANK YOU. >> JACOB WILLIAMS HAS QUOTED IT'S A THIRD THE COST OF ROOF-TOP SOLAR.

>> WELL I HAVE A QUESTION. SO IT'S GOING TO COST LESS THAN $28 PER MEGA WATT HOUR IS WHAT YOU SAID -- WHAT IS THE COST NOW FOR OUR CUSTOMERS PER MEGA WATT HOUR?

APPROXIMATELY? >> OUR RATES AND I'LL DEFER TO NINA IF I GET THIS WRONG, OUR RATES CURRENTLY ARE AT $79 BUT THAT'S AN ALL-IN RATE. THAT'S WHAT WE HAVE IN OUR RATE TARIFFS RIGHT NOW BUT THAT INCLUDES THE TRANSMISSION DISTRIBUTION EVERYTHING GOING ACROSS TO IT.

OUR ENERGY COST IF I REMEMBER ON THE LAST RATE CALL FOR NEXT MONTH OR FOR THIS MONTH WE'RE IN WE'RE PROJECTED TO BE -- 22-$23, AND IF YOU LOOK AT SOME OF THE CHARTS THAT ARE INCLUDED WHEN WE DO OUR PCA JUDGMENT YOU'LL SEE THE LONG-TERM SUPPLY OF ENERGY GOING UP AND DOWN AND BEING VARIABLE BASED ON GAS COST AND

SUPPLY AND THOSE TYPE OF THINGS. >> OKAY, SO YOU'RE THINKING IT'S

22-23 IN THERE. >> I BELIEVE IF I REMEMBER RIGHT THAT'S WHAT WE WERE LOOKING AT FOR THE LAST RATE CALL WHICH

WOULD HAVE BEEN IN OCTOBER. >> OKAY.

>> MADAM CHAIR -- >> YES?

>> ARE THOSE CITIZENS WHO ARE BILLING NEW STRUCTURES -- WHETHER IT'S AN OFFICE BUILDINGE ELIGIBLE FOR SOME TYPE OF BONUS IF THEY PUT THEIR OWN SOLAR SYSTEM IN, RIGHT?

[00:30:01]

>> WHAT RESIDENTS GET FOR PUTTING IN THEIR OWN SOLAR SYSTEM UP ON THE ROOF IS THE AVOIDED COST CREDIT TO THEM WHICH COMES OUT TO BE 2 AND A HALF CENTS PER KILL O WATT HOUR.

IF MY MEMORY SERVES ME RIGHT. WE GET A QUARTERLY UPDATE FROM FMPA AND WE PASS THAT COST ON TO THE CUSTOMER.

THE ISSUE WE RUN INTO IS THAT MOST CUSTOMERS THINK BY GOING TO SOLAR THEY'RE NOT GOING TO SEE AN ELECTRICAL BILL ANYMORE.

AND UNLESS THEY HAVE SOME TYPE OF STORAGE DURING THE DAY THERE'S ALSO GOING TO BE CONNECTED TO OUR GRID.

IT'S NO DIFFERENT WHEN THE SUN IS NOT SHINING, THEY'RE GOING TO WANT TO WATCH TV AND HAVE THEIR LIGHTS ON SO THEY'LL STILL HAVE TO BE CONNECTED TO US. THE ONLY THING THEY'RE AVOIDING IS THE ACTUAL ENERGY COST COMING OUT OF THE PLANT THAT WE PASS ON TO THEM AND THERE IS NO MARKUP OR ANYTHING FOR THAT.

I MOVE APPROVAL. >> I NEED TO READ THE TITLE.

>> I HAVE TO READ THE TITLE. >> THIS IS RESOLUTION NUMBER UA2019-07, A RESOLUTION OF FORT PIERCE UTILITIES AUTHORITY FORT PIERCE, FLORIDA, APPROVING ALL REQUIREMENTS, SOLAR PARTICIPATION AGREEMENT BETWEEN FLORIDA MUNICIPAL POWER AGENCY AND FORT PIERCE UTILITIES AUTHORITY AND THEREBY COMMITTING TO BE BOUND BY SECTION 10 OF RATE SCHEDULE B-1 OF THE ALL-REQUIREMENTS POWER SUPPLY CONTRACT, OR ITS SUCCESSOR PROVISION PROVIDING AUTHORIZATION TO COMMIT FINANCIALLY TO A PERCENTAGE AMOUNT OF THE SOLAR ENERGY ACQUIRED BY THE FLORIDA MUNICIPAL POWER AGENCY IN THE EVENT FLORIDA MUNICIPAL POWER AGENCY ACQUIRES SUCH SOLAR ENERGY. DESIGNATING AUTHORIZED OFFICERS, APPROVING AND TAKING CERTAIN OTHER ACTIONS, PROVIDING FOR SEVERABILITY, AND PROVIDING AN EFFECTIVE DATE.

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

(TAKING ROLL CALL) >> THANK YOU.

>> THE NEXT TWO ITEMS ARE RESOLUTIONS 2019-03, AND 2019-04

[Item I2]

WHICH ARE RATE INCREASES FOR WATER AND NATURAL GAS, OUR RATE CONSULTANT MURRAY HAMILTON FROM RAFF TELLS WILL PROVIDE US SOME BACKGROUND AND BARBARA MICAH WILL INTRODUCE THE LESSLUTIONS PRIOR TO THE PUBLIC HEARING.

>> THANK YOU MR. TOM PECK. MADAM CHAIR, MEMBERS OF THE BOARD, AGAIN FOR THE RECORD MY NAME IS MURRAY HAMILTON I'M A SENIOR MANAGER AT -- WHERE UTILITY RATE AND FINANCIAL CONSULTING FIRM. WITH OUR FLORIDA OFFICE JUST UP A LITTLE BIT NORTH IN MEATLAND, FLORIDA.

FOR THOSE OF YOU WHO DOUBT KNOW ME I'VE HAD THE PRIVILEGE OF WORKING WITH FP WAY FOR THE LAST 15-16 YEARS EVALUATING THE OVERALL RATES OF THE ELECTRIC WATER SEWER AND NATURAL GAS SYSTEMS. AMONG OTHER THINGS.

QUITE FRANKLY THE UTILITY SYSTEM HAS BEEN EVALUATING ITS RATES THROUGH A SERIES OF RATE STUDIES SINCE 2007.

DURING THAT TIME, ONE OF THE THINGS WE IDENTIFIED WAS THE FACT THAT THE WATER AND THE SEWER AND THE NATURAL GAS SYSTEM WEREN'T QUITE PAYING THEIR FULL FRIGHT, IF YOU WILL.

THERE WASN'T A BALANCE ON A PER SYSTEM BASIS.

AND OVER TIME THE UTILITY SYSTEM FOUND THEMSELVES IN A POSITION TO PHASE IN THOSE RATE ADJUSTMENTS OVER TIME, AND QUITE FRANKLY, IT LED TO ACTUALLY A RATE DECREASE SEVERAL DECREASE ON YOUR ELECTRIC SYSTEM SIDE OF THE FENCE.

SO IN THE LAST SEVERAL YEARS WE'VE ACTUALLY PERFORMED AN ANNUAL UPDATE OF THE REVENUE SUFFICIENCY FOR ALL FOUR SYSTEMS, AND THAT'S REALLY WHAT WE'RE HERE TO EVALUATE TONIGHT IS THIS YEAR'S STUDY RESULTS. SO WITH THAT SAID, ON SLIDE 2, A HIGHLIGHT OF OUR OVERALL STUDY TASK AGAIN WE'RE DOING A FIVE-YEAR FINANCIAL FORECAST OVER THE NEXT FIVE YEARS, ALTHOUGH TONIGHT WE'RE ONLY ASKING THE BOARD TO CONSIDER RATES FOR THIS CURRENT YEAR, FISCAL YEAR 2020.

IT'S PREDICATED ON THE BUDGET THAT WAS JUST PUT IN PLACE AND ADOPTED AS WELL AS THE CAPITAL PLAN THAT WAS INCLUDED IN THAT

[00:35:03]

PLAN. WE'RE LOOKING AT THE OVERALL OPERATING AS WELL AS THE CAPITAL NEEDS, WE MAKE AN ATTEMPT TO PHASE IN THE RATE ADJUSTMENTS OVER TIME, TO THE EXTENT POSSIBLE. THE KEY AREAS THAT WE FOCUS IN ON IS OBVIOUSLY CUSTOMER SALES AND REVENUES, IN ORDER TO COVER THE REVENUE REQUIREMENTS OR THE EXPENDITURES OF THE SYSTEM DEALING WITH OPERATING EXPENSE, THE CAPITAL NEEDS, PRINCIPLE AND INTEREST PAYMENTS ON YOUR CURRENT EXISTING DEBT SERVICE PAYMENTS, THE DISREPUTATION TO THE CITY OF FORT PIERCE IS ALSO INCLUDED IN THAT, AND OVERALL WE GET TO AN EVALUATION OF THE SUFFICIENCY OF YOUR UTILITY RATES.

FOR THE PROJECTION OF REVENUES, THERE IS NOTHING REAL FANCY ABOUT IT. QUITE FRANKLY, IT'S TYPICALLY BASED ON OUR MOST RECENT AUDIT OF THE SYSTEM.

THERE HAS BEEN VERY LITTLE NEW GROWTH WITHIN THE SYSTEM, AND NOT A LOT IS PLANNED OVER THE NEXT FEW YEARS.

IN COMPARISON TO LAST YEAR'S STUDY THAT WE PRESENTED, THE ELECTRIC SALES AND WATER SALES WERE DOWN JUST SLIGHTLY THAN WHAT WE PLANNED ON WHILE OUR WASTEWATER SYSTEM AND OUR NATURAL GAS SYSTEM WERE ON PLAN. SO IT'S -- IN RELATIVE TERMS, THINGS DO TEND TO GO UP AND DOWN SLIGHTLY FROM YEAR-OVER-YEAR, QUITE FRANKLY, THERE HAS BEEN NO REAL MAJOR CHANGE IN THE OVERALL FINANCIAL FORECAST. WHEN WE TALK ABOUT THE UTILITY SYSTEMS, IN THIS SETTING WE'RE REALLY TALKING ABOUT BASE-RATES.

IT'S THE REVENUES THAT FP WAY COLLECTS AND PAYS ITS BILLS.

AND THAT IS SEPARATE AND DISTINCT FROM THE POWER COST JUDGMENT AND THE GAS JUDGMENT, THE PCA, AND THE PGA YOU ALSO REVIEW PERIODICALLY, AND MAKE JUDGMENTS TO.

THOSE ARE A PASS-THROUGH FORMULA.

SO AGAIN WHEN WE'RE TALKING ABOUT REVENUE SUFFICIENCY, WE'RE TALKING ABOUT THE BASE-RATE THE AMOUNT THAT FPOA COLLECTS TO PAY ITS EMPLOYEES, THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF WATER AND SEWER AND GAS AND POWER SERVICES.

LAST YEAR'S RATE PLAN, FOR YOUR REFERENCE WE IMPLEMENTED A WATER AND WASTEWATER RATE INCREASE OF 3% LAST YEAR, FISCAL YEAR '19, AND WE HAD AN ANNUAL INDEX OF APPROXIMATELY 1.8% ON ON THE GAS SYSTEM. THERE WAS NO JUDGMENT ON THE ELECTRIC SYSTEM IN TERMS OF THE MONTHLY RATES THAT ARE BEING CHARGED. OBVIOUSLY THE POWER COST JUDGMENT HAS ACTUALLY DECLINED OVER TIME AND YOU MAKE PERIODIC JUDGMENTS TO YOUR GAS JUDGMENT AS WELL.

WITH THAT, WHILE THERE IS A CAPITAL PLAN APPROVED IN THE FY20 BUDGET, AS WELL AS A FIVE-YEAR CAPITAL PLAN, THE RATES THAT WERE IMPLEMENTED LAST YEAR, AND THE RATES THAT ARE PROPOSED FOR TONIGHT WON'T FUND 100 PERCENT OF THE CAPITAL PLAN AS IT'S BEEN LAID OUT. ON AVERAGE, WE MIGHT BE ABLE TO FUND 40% OF THE ANNUAL PAY AS YOU GO CAPITAL THAT'S INCLUDED IN THAT CAPITAL PLANTED AND THAT DEALS WITH THE RENEW AND REPLACEMENT OF LINE INFRASTRUCTURE, AND NEEDS AT THE PLANTS. SO, AGAIN, THAT HAS BEEN A STRATEGY IN RECENT YEARS IN AN EFFORT TO TRY AND KEEP RATES LOW, AND WITHIN A CERTAIN LEVEL. OBVIOUSLY WE HAVE OTHER INCOME SOURCES SUCH AS TURN-ON, TURN-OFF FEES, METER INSTALLATION CHARGES AS WELL AS INVESTMENT INCOME ON OUR OVERALL CASH BALANCES.

THE MAJOR EXPENSES OF THE SYSTEM AGAIN DEAL WITH OPERATING EXPENSES. MORE THAN HALF OF THAT ARE PASS-THROUGH ADJUSTMENTS FOR PURCHASE POWER COSTS AS WELL AS GAS COSTS. SO OUT OF # $7 MILLION IN OPERATING EXPENSES THE FPUA WHAT WE CALL THE CONTROL BOOK EXPENSES ARE $42 MILLION, ABOUT HALF OF THAT AMOUNT, AND THAT'S WHAT A PORTION OF THAT GETS COVERED THROUGH THE BASE RATES WE'RE TALKING ABOUT TONIGHT. EXISTING DEBT SERVICE PAYMENTS, $7.7 MILLION A YEAR. YOUR CURRENT DEBT SERVICE IS RUNNING OUT TO 2029. SO, AGAIN THAT'S THE FORECAST OF YOUR CURRENT DEBT. DISTRIBUTION TO THE CITY OF FORT PIERCE, AGAIN THAT'S A FORMULA BASIS, 6% OF GROSS REVENUES, APPROXIMATELY $6 MILLION A YEAR, AND THEN CAPITAL REINVESTMENT IN THE SYSTEM, PREDOMINATELY, AND THESE ARE THE MAJOR PROJECTS ON SLIDE 4 THAT WERE INCLUDED IN THAT ADOPTED BUDGET.

FOR THE CURRENT YEAR, FISCAL YEAR '22 THERE WERE $23 MILLION WORTH OF PROJECTS INCLUDED IN THAT BUDGET.

$16 MILLION WERE ASSUMED TO BE FUNDED WITH RATES.

AND THE RATES BEING PROPOSED TONIGHT WOULD FUND ABOUT $6.5 MILLION OF THAT EXISTING CAPITAL PLAN BASED ON OUR

[00:40:01]

CURRENT ESTIMATES.

THE OVERALL CAPITAL NEEDS OVER THE NEXT FIVE YEARS ARE APPROXIMATELY $91 MILLION, WE DO HAVE A COUPLE OF PROJECTS THAT MAY BE IDEAL FOR FUTURE DEBT. AGAIN THIS IS AN ASSUMPTION AT THIS POINT IN TIME AND THE BARRING ASSUMPTIONS WE'VE TRIED TO ASSUME ARE ALSO SUBJECT TO CHANGE.

ONE DEALS WITH THE ADVANCED METERING INFRASTRUCTURE PROJECT, THE AMI PROJECT AT ROUGHLY $7 MILLION, IT COULD RESULT IN AN ANNUAL DEBT SERVICE PAYMENT OF APPROXIMATELY 860,000 PER YEAR. , AND THEN WE HAD SOME CUSTOMER EXPANSION PROJECTS. YOU KNOW STAFF HAS BEEN CONSIDERING SOME STRATEGIC PROJECTS WHERE THE CITY MAY BE ABLE TO ADD NEW CUSTOMERS, ROUGHLY $5.5 MILLION WORTH OF EXPANSION-RELATED PROJECTS AND AGAIN WE'VE ASSUMED THAT WOULD BE FINANCED OVER TIME. THE PROJECTED DEBTS HIT FISCAL YEAR BEYOND 2020. AGAIN, AS I POINTED OUT THE RATE FUNDED CAPITAL FOR THE CURRENT YEAR IS -- I'M SORRY THE RATE FUNDED CAPITAL AVERAGE OVER THE NEXT FIVE YEARS IS $12.9 MILLION WHICH IS IN LINE WITH THE SYSTEMS DEPRECIATION RATE.

SO IT'S ALMOST ONE IN THE SAME. BUT AGAIN THE RATES UNDER OUR PROJECTED RATE PATH WOULD ONLY FUND 40% OF THOSE NEEDS.

SUMMARY OF WHAT THE ALL-IN FUNDING SOURCES WOULD BE FOR THAT CAPITAL PLAN OVER THE FIVE YEAR-PERIOD.

AND AGAIN, THE FOUR MAJOR BUCKETS THAT ARE MOVING AROUND FROM LEFT TO RIGHT CLOCKWISE ARE ELECTRIC REVENUES AT $23 MILLION, WATER REVENUES AT $20.7 MILLION, WE HAVE WASTEWATER MILLION AT $17.4 MILLION, AND THEN THE GAS SYSTEM AS $3.2 MILLION. AND WE HAVE DEVELOPER CONTRIBUTIONS AS WELL AS NEW DEBT.

WE'RE ANTICIPATING TO FUND THAT ENTIRE CAPITAL PLAN.

SO ON THE OVERALL REVENUE SUFFICIENCY QUITE FRANKLY, IT'S BEEN A TOP-DOWN APPROACH. IDEALLY WE DIDN'T COME TOGETHER AND SAY WE ONLY WANT TO BE ABLE TO FUND 40% OF OUR CAPITAL RENEWAL AND REPLACEMENT MAN PLAN.

SO BASICALLY WE'VE HAD A STRATEGY OF TRYING TO KEEP THE RATES AS LEVEL AS POSSIBLE. MANY YEARS AGO, AFTER HAVING SEVERAL YEARS OF SOMEWHAT HIGH RATE INCREASES, WE IMPLEMENTED AN ANNUAL INDEXING PROVISION THAT ALLOWS US TO ADJUST RATES AT A MINIMUM KEEP PACE WITH INFLATION.

AND SO THAT'S PART OF OUR RECOMMENDATION HERE TONIGHT FOR THE TWO SYSTEMS WATER, AND THE NATURAL GAS SYSTEM BY DEFAULT STICKING TO THAT TOP-DOWN APPROACH TO SETTING THE RATES, ULTIMATELY WE WOULD LEAVE APPROXIMATELY $38 MILLION WORTH OF THOSE CAPITAL PROJECTS UNFUNDED AT THE MOMENT FOR THE NEXT FIVE YEARS FOR THAT RATE PATH TO ULTIMATELY BE DETERMINED. THE RECOMMENDED INCREASE IS BASED ON THE FLORIDA PUBLIC SERVICE COMMISSION'S INDEX THAT ADOPTED ANNUAL INDEX PROVISION THE REPORTED AMOUNT FOR THIS CURRENT YEAR IS 2.36%, AND WE REMEMBERED THAT IMPLEMENTATION EFFECTIVE DECEMBER 1 OR LATER. FOR YOUR REFERENCE THE INDEX WOULD PRODUCE $450,000 A YEAR IN ADDITIONAL INCOME.

RELATIVE TO THE ADOPTED BUDGET. THE OVERALL PROGRESSIONS ARE SHOWN ON SLIDE 8. YOU KNOW FOR THE NEXT FIVE YEARS WE ASSUMED THE ANNUAL INDEX BEING APPLIED ONLY TO THE WATER, AND THE NATURAL GAS SYSTEMS. NO JUDGMENT TO THE CURRENT WASTEWATER SYSTEM RATES OR THE ELECTRIC SYSTEM, OBVIOUSLY THE POWER COST JUDGMENTS AND THE GAS ADJUSTMENTS WILL BE ADJUSTED OVER TIME. THE NET ANNUAL SURPLUS THERE IN THE MIDDLE OF THE TABLE ARE ACTUALLY DEFICIENCIES, SO WHAT WE'RE REALLY SAYING IS WE HAVE A CASH BALANCE THAT'S IN THE BANK TODAY, AND WE'RE GOING TO CONTINUE TO USE THOSE RESERVES OVER TIME TO COMPLETE 40% OF THE STATED PROJECTS IN AN EFFORT TO PHASE IN THESE CHARGES OR RATE INCREASES OVER TIME.

AGAIN THE ONLY RATE JUDGMENT THAT'S FOR CONSIDERATION TONIGHT IS THE 2020 JUDGMENT OF 23.6% FOR THE WATER AND NATURAL GAS.

OTHER IMPORTANT BENCHMARKS, YOU KNOW MS. PENEC WAS TALKING ABOUT YOUR RATING REVIEW FOR YOUR BONDS.

YOUR DEBT SERVICE COVERAGE THAT'S RIGHT THERE IN THE MIDDLE OF THE PAGE. A STRONG RELATIONSHIP THIS IS ONE OF THE KEY COMPONENTS THAT THE RATING AGENCIES WERE EVALUATING IN ORDER TO DETERMINE WHAT YOUR OVERALL RATING WOULD

[00:45:03]

BE. CASH RESERVE BALANCES, WE HAVE A BARE MINIMUM REQUIREMENT OF 45 DAYS THAT IS SPECIFIED IN THE ADOPTED BOND RESOLUTION. FPOA HAS A TARGET OF 60 DAYS OR MORE. YOU CAN SEE THAT THE OVERALL CASH RESERVE BALANCE IS PROJECTED TO DECLINE OVER TIME AS WE PHASE IN THE PROJECTED RATES, AND THEN WE HAVE SOME RESTRICTED FUNDS THAT ARE SHOWN AT THE BOTTOM OF THAT PAGE.

FOR THE RATE INCREASES IS OBVIOUSLY THE UTILITY WANTS TO CONTINUE TO MAINTAIN A HIGH-QUALITY AND RELIABLE SERVICE THAT SAFEGUARDS THE HEALTH AND WELFARE OF THE COMMUNITY. WE OBVIOUSLY WANT TO MAKE SURE THAT OUR RATES DO KEEP UP WITH INFLATION.

WE DON'T WANT TO HAVE SEVERAL YEARS WHERE WE'RE AADJUSTING THE RATES FOR INFLATION AND BEING SUBJECT TO A HIGHER RATE INCREASE, SOMETHING GREATER THAN INFLATION OR EVEN A TWO-DIGIT -- A TWO-DIGIT INCREASE OF 10% OR MORE.

YOU KNOW -- AGAIN, YOU KNOW REGULATIONS ARE CONSTANTLY EVOLVING. THE COST TO PRODUCE SERVICE HAS GONE UP WITH THE EXCEPTION OF WHAT PAUL WAS PRESENTING TO YOU ON THE SOLAR FIELD AT SOME POINT IN THE FUTURE.

OBVIOUSLY WE NEED TO RETAIN ADEQUATE CASH RESERVES OVER THE STUDY PERIOD AND MAKE SURE WE HAVE WORKING CAPITAL THAT MEETS THE NEEDS OF THE SYSTEM AND SPECIFICALLY WE HAVE TO COMPLY AND IS WITH THE CITY'S CHARTER AND BOND RESOLUTION AS WELL IN ORDER TO HAVE A SUSTAINABLE UTILITY SYSTEM.

SOME BILL COMPARISON ARE SHOWN ON SLIDE 10.

AGAIN IT'S THE WATER ONLY CHARGES THAT ARE INCREASING.

I DID SHOW A WATER AND SEWER BILL BECAUSE THERE IS A LARGE NUMBER OF CUSTOMERS THAT HAVE BOTH SERVICES AGAIN THE WASTEWATER CHARGE IS NOT RECOMMENDED TO INCREASE.

FOR THE WATER BILL IT'S A .8 INCREASE OR APPROXIMATELY 2.4 PERCENT, 88 CENTS, FOR A CUSTOMERS WHO USES 6,000 GALLONS PER MONTH ON THE WATER AND SEWER BILL COMBINED, AGAIN, 6,000 GALLONS IS STILL AN 88-CENT INCREASE.

ABOUT A 1% AJUDGMENT TO THAT TOTAL BILL.

AND FOR A NATURAL GAS CUSTOMER WHO IS USING 1300 CUBIC FEET PER MONTH AGAIN AT YOUR CURRENT PGA WOULD SEE A ROUGHLY 58-CENT INCREASE PER MONTH OR JUST UNDER 2%.

WHILE I DON'T HAVE A NATURAL GAS RATE COMPARISON, I DO HAVE A RATE COMPARISON FOR WATER AND SEWER SYSTEM COMPARED TO SOME NEIGHBORS OF FPOA. AND AGAIN SOME OF THESE ARE ADJUSTING FOR THIS CURRENT YEAR OR UNDER A RATE STUDY AT THE MOMENT. I KNOW THE CITY OF VERO BEACH I THINK IS RECENTLY PURSUING A RATE STUDY TO EVALUATE THE SUFFICIENCY OF THEIR RATES. MARTIN COUNTY REVIEWS THEIRS ANNUALLY. OUR FIRM SUPPORTS THEM.

THE CITY OF STUART JUST ADOPTED A SERIES OF RATES FOR THIS CURRENT YEAR 2020. THEY ALSO HAVE RATES ADOPTED FOR '21 AND '22. WE PLAN TO INITIATE AN UPDATE TO THE RATE STUDY LATER NEXT YEAR. OKEECHOBEE UTILITY AUTHORITY HAS JUST INITIATED A RATE STUDY. SO A NUMBER OF THESE UTILITIES, I SUSPECT ARE GOING TO BE MOVING NORTHWARD AS THEY CONTINUE TO EVALUATE THEIR NEEDS, YOU CAN SEE THE EXISTING TO PROPOSED COMBINED BILL AT 6,000 GALLONS FROM $85.92 TO # $86.80 IF THE RATES ARE APPROVED AGAIN FOR THIS CURRENT YEAR.

IN CONCLUSION, AGAIN THE EXISTING RATES AREN'T ADEQUATE TO FULLY MEET THE NEEDS IDENTIFIED IN THE BUDGET, SPECIFICALLY ON THE CAPITAL PLAN, EVEN IF THE RATES ARE APPROVED AT BEST WE ESTIMATE THAT THEY'RE GOING TO FUND ABOUT 40% OF THOSE OVERALL PROJECT NEEDS, WE'RE RECOMMENDING THAT THE BOARD CONSIDER IMPLEMENTING THE ANNUAL INDEX AGAIN FOR WATER AND NATURAL GAS EFFECTIVE ON OR AFTER DECEMBER 1ST.

THAT INDEX IS 2.36% AS PUBLISHED BY THE PUBLIC SERVICE COMMISSION, AND AGAIN WE ASK THAT YOU CONTINUE TO REVIEW THIS PLANINALLY -- ANNUALLY. AND WITH THAT MADAM CHAIR THAT

CONCLUDES OUR PRESENTATION. >> ANY QUESTIONS OR COMMENTS?

>> YES MA'AM, I GOT BOTH. MY QUESTION FIRST, THEN I HAVE MY COMMENT. OKAY, WHAT ABOUT IN OUR PROPOSED RECOVERY COST, YOUR PROPOSED COST RECOVERY PERIOD YOU TALKING FIVE YEARS TO START WITH 2019 OR YOU'RE TALKING WITH FIVE YEARS

TO START 2020? >> OKAY, WE START IN '19.

ACTUALLY THIS STUDY WAS KICKED OFF ABOUT MARCH OF LAST YEAR.

[00:50:02]

SO AS THE BOARD GOES THROUGH THE BUDGET PROCESS, WE HAVE TO MAKE AN ESTIMATE OF '19. AND SO THIS STUDY WAS BASICALLY CONCLUDED JUST AFTER YOU ADOPTED YOUR BUDGET FOR 2020.

BUT OUR EMPHASIS IS ON 2020, YES SIR.

>> PEOPLE WHO ARE -- CUSTOMERS WHO ARE BUYING -- WATER, WHAT RATE DO THEY HAVE, I DON'T SEE IT ON YOUR CHART.

>> THE COUNTY? THE COUNTY WELL ONE, WE WERE INVOLVED IN THIS. WE WORKED ON AN UPDATED BULK RATE STUDY BETWEEN FPUA AND THE COUNTY.

AND I'M GOING OFF MEMORY HERE, BUT IF I RECALL CORRECTLY THE WATER RATE WAS INCREASED, AND THE SEWER RATE WAS DECREASED SO WE EQUALIZED THAT, AND WE'VE BEEN WORKING ON THAT FOR MORE THAN A DECADE TO GET ALL THE PARTIES TO THE TABLE.

SO THAT WAS A POSITIVE. BEAU MIGHT BE ABLE TO SPEAK TO THIS BETTER. I'M THE ULTIMATE AGREEMENT -- WERE WE AADJUSTING THAT WITH THE RETAIL RATES BEAU?

IS THAT RIGHT? >> THE COUNTY WILL GET A LETTER SHORTLY AFTER THIS IS APPROVED. YES.

>> SO, IF YOU DO AN INDEX ON WATER OF 2.36% THE BULK RATE TO THE COUNTY WILL GO UP AS WELL. NOW, I CAN'T TELL YOU WHETHER OR NOT THE COUNTY IS GOING TO PASS THAT ON TO THEIR CUSTOMER OR NOT BUT I SUSPECT AT SOME POINT, AT SOME LEVEL THEY WILL.

BUT THEIR RATE WOULD GO UP AS WELL, YES SIR.

>> MY CONCERN MADAM CHAIR IS IN SOME WAY, SOME DAY WE HAVE TO DO SOME WITH -- CUSTOMERS. THEY ARE CRYING HARD ABOUT THE RATES, AND WHETHER -- AND THEY'RE CRYING ABOUT THE SURCHARGE SO SOMEWHERE ALONG THE LINE WE HAVE TO -- THE DEAL WITH SHERIDAN PLAZA. AND IF NOT NOW, WHEN.

IT'S PAST DUE AS A CITIZEN COME TO THESE MEETINGS I USED TO HEAR

THAT GRIPE WAY BACK. >> THANK YOU.

>> THANK YOU. >> ANYONE ELSE?

>> SO, I HAVE A QUESTION ABOUT THE PROJECTIONS FOR GROWTH, BECAUSE WE'RE DOING A LOT OF TALKING ON THE CITY SIDE ABOUT ALL THE GROWTH THAT WE'RE HAVING IN TERMS OF CUSTOMERS, AND BOTH COMMERCIAL AND RESIDENTIAL THINGS THAT ARE PLANNED, SO I'M WONDERING WHY YOUR PROJECTION IS SORT OF STATUS QUO.

>> ONE, IT'S A SHORT-TERM REALLY.

ONE-YEAR. >> ONE YEAR.

>> SO WE'VE BEEN -- >> THAT'S RIGHT.

>> YES MADAM MAYOR. >> AND, SO, BUT YOU'VE TOOK INTO ACCOUNT GANDER OUTDOOR -- ALL THE COMMERCIAL THAT'S GOING

ALONG JENKINS ROAD. >> ONLY WHAT'S BEEN CONNECTED SO FAR. AND SO IT'S BASICALLY IT'S A ONE-YEAR LOOK BACK AND A ONE-YEAR LOOK FORWARD AT THE MOMENT AND AGAIN THAT'S BEEN OUE APPROACH WE'VE TAKEN AT THIS POINT. NOW, IF WE WERE ATTEMPTING TO ASK YOU TO LOCK IN A SCHEDULE OF RATES FOR THE NEXT 3-5 YEARS I THINK WE WOULD LOOK VERY DIGITALLY TO TRY TO PUT PENCIL TO PAPER AND TRY TO FIGURE OUT WHAT THE CONNECTIONS WOULD BE WITH SOME EASE AND SENSITIVITY. AGAIN, IT'S -- YOU KNOW EVEN IF THE PROJECT IS COMPLETED THIS YEAR, WHEN IS IT GOING TO BE OCCUPIED? WHEN ARE THEY GOING TO BE A PAYING CUSTOMER. SO AT BEST IT'S AN ESTIMATE.

>> SO, IF A CUSTOMER IS LISTENING TO THIS MEETING, THERE IS A LOT OF GROWTH PLANNED FOR FORT PIERCE BUT THIS IS JUST FOR

ONE YEAR. >> YES, MA'AM.

>> SO THAT'S WHY YOU'RE BEING CONSERVATIVE.

>> IT IS, AND AGAIN STAFF HAS SOME CUSTOMER-BASED EXPANSION OF PROJECTS IN THE CAPITAL PLAN TOO THAT ARE OUT IN THE FUTURE.

AND, YOU KNOW WE WOULDN'T REALLY INVEST IN THOSE IF WE DIDN'T THINK WE WERE GOING TO ADD A CUSTOMER TO IT.

AND OBVIOUSLY WHILE WE HAVEN'T INITIATED THOSE PARTICULAR PROJECTS, MY ASSUMPTION WOULD BE THAT YOU WOULD GET NEW CUSTOMERS TO HELP IN THE OVERALL GROWTH OF THE SUBJECTS -- SYSTEM.

>> I HAVE A QUESTION. >> WHEN WE WERE DISCUSSING OUR BOND RATING THE WAS TALKING ABOUT THE WE WERE 114% OF THE STATE AVERAGE ON OUR ELECTRIC. CORRECT NINA, IS THAT CORRECT?

>> UM -- >> CAN YOU COME TO THE MIC

PLEASE? >> FPOA'S AVERAGE REVENUE PER KILOWATT HOUR WAS 114 PERCENTS OF THE STATE AVERAGE IN 2017.

>> YES, SO MY QUESTION FOR YOU, MR. HAMILTON IS, WHAT PERCENT ARE WE ON THE STATE AVERAGE ON OUR WATER AND OUR GAS?

[00:55:02]

>> OKAY. THE GAS I DON'T HAVE AN AN OPINION OF. FOR THE WATER, AND SEWER, WHILE I AND A DATABASE THAT GOES MORE GLOBAL THAN THIS, I HAVE HAVEN'T EVALUATED WHAT YOU'VE ASKED IN COMPARISON TO YOUR REGION FOR THE 6,000-GALLON CUSTOMER YOUR AT ABOUT THE AVERAGE.

BUT OBVIOUSLY YOU HAVE CUSTOMER -- UTILITIES THAT HAVE A LOWER RATE, AGAIN MY EXPERIENCE THEY'RE ALL GOING TO BE MOVING AT A HIGHER COST. I'VE ALREADY POINTED OUT SOME OF THESE REVIEW THEIR RATES ANNUALLY OR WILL BE REFUSING THEIR RATES. RARELY DO THEY STAY STATUS QUO

ANYTHING ELSE? >> PARDON?

>> I THINK BARBARA HAS SOMETHING.

>> YES, THANK YOU MADAM CHAIR AND BOARD MEMBERS.

>> CAN YOU PULL THE MIC OVER, PLEASE.

>> THANK YOU. SO TODAY WE ARE PRESENTING TO YOU THE RESOLUTIONS FOR RATE ADJUSTMENTS FOR THE WATER AND NATURAL GAS SYSTEMS IN AN EFFORT TO ENSURE EACH UTILITY SYSTEM'S RATES ARE SUFFICIENT TO SUPPORT ALL RESPECTIVE COSTS FOR THAT UTILITY'S OPERATIONS. THE RATE RESOLUTIONS PERMIT ANNUAL INCREASES THROUGH THE ANNUAL INDEXING PROVISION UNDER THE AUTHORITY OF THE FPOA BOARD. THE INDEX PRICE IS ESTABLISHED IN MARCH OF EACH YEAR AND FOR 2019 IS 2.36%.

BOTH RESOLUTIONS BEFORE YOU TODAY PROVIDE FOR THE 2.36% INCREASE IN THE CUSTOMER AND VOLUME CHARGES FOR BOTH WATER AND NATURAL GAS SYSTEMS. ADDITIONALLY, THE WATER SYSTEM HAS ADDED A NEW RATE FOR A 1.5-INCH UNMETERED FIRE PROTECTION. THESE RATE ADJUSTMENTS ARE NECESSARY TO FUND FPOA'S CAPITAL IMPROVEMENT PLAN AND TO MAKE EACH OF THE OPERATING SYSTEMS SELF-SUFFICIENT.

THIS TABLE THAT WAS MR. HAMILTON PRESENTS IN HIS PRESENTATION TODAY SHOWS THE INCREASES THAT A CUSTOMER CAN EXPECT ON THEIR AVERAGE MONTHLY BILL. FOR WATER BILL WITH 6,000 GALLONS OF CONSUMPTION A CUSTOMER WILL EXPERIENCE AN INCREASE IN THEIR BILL FROM $3,626 TO $37.14.

OR 88 CENTS ON AN AVERAGE MONTHLY BILL.

THIS ITEM IN YOUR AGENDA PACKET HAD BEEN -- THERE WAS A MIS-PRINT IN THE AGENDA PACKET. THESE ARE THE CORRECT NUMBERS AND THESE PROPOSED RATE ADJUSTMENTS WERE THE ONES INCLUDED IN THE CUSTOMER'S BILL INSERTS.

SO 88 CENTS WAS WHAT THE CUSTOMER WAS INFORMED.

THE IMPACT ON NATURAL GAS CUSTOMER WITH THE AVERAGE CONSUMPTION INCLUDING THE CURRENT PURCHASE GAS ADJUSTMENT OF A NEGATIVE 15 CENTS WILL INCREASE FROM $30.66, TO $31.21 OR JUST 58 CENTS ON THEIR MONTHLY AVERAGE BILL.

THESE RESOLUTIONS ARE ALL RATE CHANGES REFERRED TO -- ALL THE RATE CHANGES REFERRED TO IF ADOPTED SHALL TAKE EFFECT ON THE BILGE CYCLE OF THE NEXT BILLING MONTH AFTER THE APPROVALS OF THE FORT PIERCE AUTHORITY UTILITIES BOARD.

WE'RE ASKING YOU ACCEPT AND APPROVE THESE RESOLUTIONS, AADJUSTING WATER AND NATURAL GAS RATE SCHEDULE FOR FORT PIERCE UTILITIES AUTHORITY. THANK YOU.

>> I HAVE A QUESTION. MR. TOM PECK, DO WE -- WHEN THESE RATES GO INTO EFFECT DO WE PUT SOMETHING IN THE BILL OR WE

JUST INCREASE IT? >> I THINK WE GENERALLY DO,

YEAH. >> I MEAN SOME KIND OF ADVICE O?

>> I THINK I HAVE TO CHECK WE'VE ALREADY -- THERE HAS BEEN BILL STUFFERS ALREADY THAT HAVE TALKED ABOUT THE RATE INCREASE.

>> IT WAS OUT IN THE OCTOBER BILLS.

>> WAS IT? >> YES.

>> THAT'S WHY I DON'T PAY THE BILLS IN MY FAMILY, I DIDN'T SEE

THAT. >> SAME IN MY FAMILY TOO.

>> LET ME ASK A QUESTION. WHY DON'T WE MAKE A PRACTICE OF WHEN WE ARE GOING UP FOR ANYTHING, RATES, WHY DON'T WE JUST ADVERTISE IT IN THE NEWSPAPER?

>> WE DO. >> THEN WE WOULD PROBABLY HAVE

MORE THAN EMPTY SEATS. >> WE HAVE ADVERTISED, IT WE ARE REQUIRED TO DO THAT. WE'VE ALSO MADE BILL STUFFERS.

WE MADE A PRESS RELEASE AS WELL. WEBSITE, IT'S --

>> WHAT ABOUT THE PEOPLE WHO PAY ONLINE, HOW DO THEY GET

NOTIFIED? >> ON THE WEBSITE RIGHT?

>> ON THE WEBSITE I DON'T KNOW IF THERE IS ANY OTHER --

>> WIN WEBSITE, DATE BOOK, THE NEWSPAPER, OUR BILL INSERTS AND THEN THERE IS A -- NOTES IN THE ELECTRONIC PAYMENT.

[01:00:08]

>> SO ALL CUSTOMERS GET SOME NOTIFICATION.

>> YES. >> IT'S AVAILABLE TO THEM,

WHETHER THEY READ IT OR NOT -- >> THEY CAN READ IT ON THEIR

SMARTPHONE. >> IF YOU HAVE ONE.

>> OKAY. SO, AT THIS POINT WE'RE GOING TO OPEN THE PUBLIC HEARING IF ANYONE HAS ANY COMMENTS? OKAY, WE WILL CLOSE PUBLIC HEARING, AND THEN I WILL ASK --

PARDON? >> I'M GOING TO READ THE TITLE

TO THEM IN THE RECORD. >> THIS IS RESOLUTION 2019-03, A RESOLUTION AMENDING SUPERSEDING AND RESCINDING THE SCHEDULE OF RATES AND CHARGES FOR WATER SERVICES FURNISHED BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA, AND RESOLUTION NUMBER UA201806 IN ACCORDANCE OF THE CITY OF FORT PIERCE PROVIDING FOR A 2.3% INCREASE IN THE CUSTOMER AND VOLUME CHARGES ADDING A RATE FOR 1.5-INCH UNMETERED FIRE PROTECTION AND PROVIDING FOR AN EFFECTIVE DATE THEREOF.

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

>> SECOND? >> I'LL SECOND IT.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

>> ALL RIGHT. THIS IS RESOLUTION NUMBER 2019-04, A RESOLUTION AMENDING SUPERSEDE AND RESCINDING THE SCHEDULE OF RATES AND CHARGES FOR NATURAL GAS SERVICES FURNISH SAID BY FORT PIERCE UTILITIES AUTHORITY, FORT PIERCE, FLORIDA, AND RESOLUTION NUMBER 2018-07.

IN ACCORDANCE WITH THE CHARTER OF THE CITY OF FORT PIERCE, FLORIDA, ARTICLE 128 PROVIDING FOR A 2.36% INCREASE IN THE CUSTOMER AND COMMODITY CHARGES BASED ON THE 2019 FLORIDA PUBLIC SERVICE COMMISSION ANNUAL PRICE INDEX AND PROVIDING FOR AN

EFFECTIVE DATE HEREOF. >> IS THERE A MOTION FOR

APPROVAL? >> MOVE APPROVAL.

>> PLEASE CALL THE ROLL. (TAKING ROLL CALL)

>> MR. TOM PECK. >> THANK YOU VERY MUCH.

>> THANK YOU GUYS G JOB. >> JUST A COUPLE OF QUICK

[Items J & M]

COMMENTS. FPOA WITH THE HELP OF OUR -- CAPE CANAVERAL SCIENTIFIC, SUBMITTED AN APPROPRIATION PROJECT REQUEST FOR FISCAL YEAR 2020 THROUGH 2021 TO THE STATE LEGISLATURE. THE TOTAL AMOUNT OF THIS REQUEST IS A MILLION $20,000, AND IT WOULD PRIMARILY BE USED ON FLEETWOOD ACRES, SPECIFICALLY AND FLEETWOOD ACRES IS OUR EXPANSION PROJECT ON THE SOUTHEAST CORNER OF EDWARDS AND 25TH. SPECIFICALLY WE'RE RADIOING AT WAYS TO ENTICE CUSTOMERS TO SWITCH FROM SEPTIC TO SEWER AT LITTLE OR NO COST, AND THIS WILL PROVIDE US IF WE'RE SUCCESSFUL IN GETTING THE APPROPRIATION PROVIDE US MONEY TO DO THAT.

AT THE NEXT BOARD MEETING BO HUTCHINSON WILL MAKE A PRESENTATION ON WHERE WE ARE ON THE WRF RELOCATION.

HE'LL GIVE US A SCIENTIST ON THE JOINT STUDY WITH THE COUNTY AND TALK ABOUT CONVERSATIONS HE'S HAD WITH OTHER INTERESTED STAKEHOLDERS IN THE PROJECT. AND LAST ITEM I HAVE IS WE'RE ABOUT TO EMBARK ON ANOTHER ROUND OF STRATEGIC PLANNING, EVERYBODY LOOKS SO EXCITED WHEN I SAY THAT.

>> LET US KNOW THE DATE WELL IN ADVANCE.

>> WE WILL. >> I'M GOING TO BE SENDING THE BOARD OUR PREVIOUS STRATEGIC GOALS FOR YOUR REVIEW.

ANY SUGGESTIONS YOU HAVE ON REVISED GOALS WILL BE GRATEFULLY APPRECIATED. AND THAT'S ALL I HAVE.

>> ANY OTHER COMMENTS FROM BOARD MEMBERS?

* This transcript was compiled from uncorrected Closed Captioning.