[MEETING TO ORDER]
[00:00:12]
>> GOOD AFTERNOON. WELCOME TO THE FORT PIERCE MEETING. WOULD YOU PLEASE STAND FOR THE PRAYER AND JOIN US FOR THE PLEDGE OF ALLEGIANCE
>> GOD, WE THANK YOU FOR THIS STATE AND THIS HOLIDAY SEASON.
WE THANK YOU FOR THE GRACE THAT YOU'VE SHOWN THIS NATION, THIS CITY. AND, GOD, WE THANK YOU FOR THESE LEADERS OF FPUA. WE PRAY THAT YOU GIVE THEM KNOWLEDGE AND WISDOM. THAT THE DECISIONS THEY MAKE BE FOR THE MOST GOOD, FOR THE MOST RESIDENTS AND CITIZENS OF THIS TERRITORY. GOD, WE PRAY THAT YOU WOULD BE PART OF ALL THAT IS SAID AND DONE TODAY.
AND THAT YOU WOULD GRANT US WITH YOUR PEACE.
IN CHRIST'S NAME WE PRAY. AMEN.
>> AMEN. >> 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. >> LET'S CALL THE ROLL.
[A. SET THE AGENDA]
>> DO WE HAVE A MOTION TO SET THE AGENDA? LET'S CALL THE ROLL.
>> WE ARE NOW MOVING ON TO THE PUBLIC COMMENT SECTION OF THIS TODAY'S MEETING. IF ANYONE WISHES TO COME UP AND SPEAK, YOU HAVE THREE MINUTES TO SPEAK.
[C. APPROVAL OF MINUTES]
I DO NOT SEE ANY MOVEMENT, SO WE WILL CLOSE THE PUBLIC COMMENT SECTION OF TODAY'S MEETING AND MOVE TO APPROVAL OF THE MINUTES.[D. CONSENT AGENDA]
>> AND NOW WE'RE MOVING ON TO THE CONSENT AGENDA.
HAS EVERYONE HAD THE CHANCE TO REVIEW THE AGENDA? OR DO ANY ITEMS NEED TO BE PULLED FOR GREATER DISCUSSION? CAN I HAVE A MOTION TO PASS THE AGENDA?
[E.1. Phase II-CIP 2.2A Jenkins Road FM Extension (Edwards Road to 10 Mile Creek - WW Conveyance System Redirection to the New MWRF with TLC Diversified, Inc. (Master Contract) Amendment No. 5]
CALL THE ROLL.>> AND WE ARE NOW ON OUR REGULAR AGENDA ITEMS.
MR. CISNEROS. >> THANK YOU, MR. CHAIRMAN, AND MEMBERS OF THE BOARD. THE FIRST ITEM THIS AFTERNOON IS A REQUEST TO APPROVE ANOTHER IMPORTANT BUT SMALL SECTION OF THE WASTEWATER CONVEYANCE SECTION TO REDIRECT FLOWS TO OUR NEW WASTEWATER PLANT. THIS PRESENTATION WILL LOOK FAMILIAR AS IT HAS BEEN PRESENTED TO THE BOARD SEVERAL TIMES OVER THE PAST YEAR. BUT IT IS A SLIGHTLY SHORTER VERSION BUT STILL PROVIDES A VERY GOOD OVERVIEW.
>> THANK YOU, MR. CISNEROS. MR. CHAIR, MEMBERS OF THE BOARD.
LIKE MR. CISNEROS SAID, I'M HERE TO PRESENT AMENDMENT 5 TO THE WASTEWATER CONVEYANCE SYSTEM CONTRACT.
>> SHANE, JUST A SECOND BECAUSE I THINK WE'RE HAVING TECHNICAL ISSUES HERE. HOPEFULLY BOBBY CAN GET THIS -- IT'S NOT SHOWING UP ON THE SCREEN.
IT'S STILL NOT SHOWING UP. WE CAN --
>> IS HE IN THERE? >> I THINK BOBBY'S IN THERE.
>> OKAY, GOOD. >> WHILE THE SCREEN COMES UP, DO YOU WANT TO KEEP GOING? AND WE'LL KIND OF BACK PEDAL A
BIT ONCE THE SCREEN COMES UP. >> YES, SIR.
TODAY I JUST WANT TO TALK A QUICK BACKGROUND ON THE PROJECT.
GIVE AN OVERVIEW OF PHASE 1A AND THEN REQUEST APPROVAL OF THE CONTRACT AMENDMENT. SO THE WATER RELOCATION PROGRAM REQUIRED TWO MAJOR EFFORTS. CONSTRUCTION OF THE NEW WASTEWATER RECLAIMATION FACILITY, WHICH WE CELEBRATED THE RIBBON CUTTING IN JANUARY. AND THEN THE NECESSARY IMPROVEMENTS TO THE CONVEYANCE SYSTEM TO REDIRECT THE FLOWS TO THE NEW PLANT. SO IN 2023 OUR CONTRACT WITH TLC DEVISED THE DESIGN PLAN. IN IT, IT LAID OUT FOUR PHASES
[00:05:09]
INCLUDING 17 PROJECTS THAT WOULD REVERSE THE FLOWS FROM THE ISLAND TO THE MAINLAND RECLAMATION FACILITY.THE DETAILED DESIGN WAS AMENDMENT 1 TO THE CONTRACT.
AMENDMENT 2 STARTED THE CONSTRUCTION PHASE.
THE 30 INCH FORCE MAIN ALONG JENKINS ROAD.
AMENDMENT 3, KNOWN AS CIP 1, WAS FOR THE DOWNTOWN FORCE MAIN, WHICH INCLUDED LIST STATION A MODIFICATIONS.
THAT FORCE MAIN IS CURRENTLY FINISHED, AND THE MODIFICATIONS ARE ONGOING. AMENDMENT 4 TO THE CONTRACT WAS THE BOOSTER STATION. CURRENTLY THE SITE PLAN HAS BEEN APPROVED WITH THE CITY. A FENCE HAS BEEN INSTALLED, AND WE ARE AWAITING BUILDING PERMITS TO BEGIN CONSTRUCTION.
TODAY AMENDMENT 5 IS WHAT I'M ASKING FOR, CIP 2.2A.
THE CONTINUATION OF JENKINS ROAD FORCE MAIN.
AND CIP 2.2B. THE DESIGN IS NEARING COMPLETION. I HOPE TO BRING THAT AMENDMENT TO THE BOARD SOON. SO THE WORK REQUIRED FOR CIP 2.2A, CONTINUE THE FORCE MAIN FROM EDWARDS TO 10 MILE CREEK.
THIS INCLUDES THE VALVING AND CONNECTIONS TO EXISTING AS WELL AS STUB OUTS FOR A FUTURE BOOSTER STATION.
THE DESIGN IS 100% COMPLETE. PERMITTING HAS BEEN SUBMITTED TO THE AGENCIES, AND WE ARE AWAITING APPROVAL.
THIS PROJECT IS ELIGIBLE AND EXPECTED TO BE GRANT REIMBURSED.
SO TODAY I'M REQUESTING THE APPROVAL OF AMENDMENT FIVE FOR THE TOTAL GUARANTEED MAXIMUM PRICE OF $3,275,932.68.
I'M ALSO ASKING FOR AUTHORIZATION FOR 150,000 CONTINGENCY AND AUTHORIZING FOR THE DIRECTOR OF UTILITIES TO ENTER INTO CHANGEOVERS OR ISSUANCE PURSUANT TO THE AUTHORITY GIVEN THROUGH THE RESOLUTION.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE AT THIS
TIME. >> MR. CHAIRMAN, IS THERE ANY ROAD CONNECTION BETWEEN EDWARDS AND 10 MILE CREEK?
>> JENKINS ROAD. >> JENKINS GOES ALL THE WAY TO
>> SO THAT'S -- YOU'RE GOING TO STOP JUST SHORT OF 10 MILE
CREEK; IS THAT RIGHT? >> YES, MA'AM.
>> AND IS THAT AS FAR AS THE ROAD GOES?
>> YES. >> THE PIPELINE IS BEING DESIGNED INSIDE OF THE RIGHT-OF-WAY FOR THE EVENTUAL JENKINS ROAD CONNECTOR, IS THAT RIGHT? ACTUALLY, IT STOPS AT THE TOP OF WAL-MART.
IT DOES GO DOWN, IT'S JUST TREES AND SWAMP LAND RIGHT NOW.
>> RIGHT. THAT'S WHAT I THOUGHT.
EVENTUALLY JENKINS IS GOING TO GO ALL THE WAY THROUGH TO
MIDWAY? >> THERE'S PLANS FOR THAT, YES.
AND WE'VE BEEN HAVING MEETINGS WITH THE COUNTY TO MAKE SURE WE'RE IN LINE. BUT WE'RE A WAYS OUT.
>> AND IT'S GOING TO COST 3.2 MILLION TO DO THAT STRETCH?
>> YES, MA'AM. >> PRETTY GOOD PIPE.
>> BETTER NOT LEAK. [LAUGHTER]
>> ONE QUESTION. WHAT DOES THE 2023 RESOLUTION SAY? JUST GIVE ME A SUMMATION OF IT.
>> IT AUTHORIZES MR. CISNEROS TO -- UP TO $50,000.
>> AND THE 150,000, THE CONTINGENCY, ONLY IF WE NEED IT
WE'LL USE IT, RIGHT? >> YES, MA'AM.
>> I HAVE A QUESTION. YOU MENTIONED THAT PHASE 4 OR AMENDMENT 4 WITH MOORES CREEK AND 25TH STREET, AND YOU FENCED IT IN. THERE IS A MARQUEE THAT RESTS IN THAT AREA THAT'S FENCED IN, AND I HEARD YOU SAY THERE'S GOING TO BE CONSTRUCTION. DOES THAT ALSO INVOLVE REMOVAL?
>> IF YOU DON'T MIND, I'LL TACKLE THIS.
[00:10:04]
WE ARE -- THAT SIGN WILL STAY THERE.WE ACTUALLY SPENT A LITTLE BIT OF TIME WITH THE ENGINEERING DIVISION TO MODIFY AROUND THAT SIGN SO THAT IT WOULD STAY THERE. SO IT IS ON FPUA PROPERTY, BUT WE'RE GOING TO WORK WITH THEM TO KEEP THAT SIGN THERE.
AND THE FENCE WE HAVE THERE NOW IS JUST TEMPORARY.
WE'LL HAVE A PERMANENT FENCE STRUCTURE, BUT IT WILL BE TO THE EAST OF THAT SIGN SO YOU CAN STILL SEE IT FROM 25TH STREET.
>> THANK YOU. >> I HAVE A QUESTION.
SO WE'RE NOT GOING TO LEAVE OUR PORTION FENCED IN? YOU SAY IT'S GOING TO BE EAST OF IT?
>> YEAH. THE PERMANENT FENCE, THE NICER FENCE, THAT WILL BE AROUND THE BUILDING WILL JUST BE TO THE EAST OF THE SIGN. SO YOU CAN STILL SEE THE SIGN
FROM THE ROADWAY. >> BUT THE PROPERTY WILL STILL
BE FENCED IN, RIGHT? >> EXCEPT FOR THAT PORTION OF THE SIGN SO YOU CAN STILL SEE THE SIGN.
>> OKAY, OKAY. >> ANY OTHER QUESTIONS?
>> ONE MORE. YOU SAID SOME OF THIS IS GOING
TO BE GRANT FUNDED? >> I EXPECT ALL OF IT TO BE
GRANT FUNDED. >> AND IS THIS THE PRICE THAT WE WERE THINKING OF ALL ALONG? HAVE WE BEEN PRESENTED WITH THIS
THE GUYS ARE DOING A GREAT JOB OF WORKING HARD TO KEEP THE PRICES LOW. YES, MA'AM.
>> OKAY. THAT'S MY -- WE HAVE TO HAVE IT.
>> SOMEBODY NEEDS TO MAKE A MOTION TO APPROVE IT.
>> I'LL MOVE APPROVAL AS PRESENTED.
>> SECOND. >> PLEASE CALL THE ROLL.
[E.2. TT1 & TT2 Transformer Replacements - Totten Substation]
I APPRECIATE IT. MR. CHAIRMAN, MEMBERS OF THE BOARD, THE NEXT ITEM IS A REQUEST TO PURCHASE TRANSFORMERS. THIS AREA OF SYSTEM IS EXPERIENCING THE MAJORITY OF OUR ELECTRIC SYSTEM GROWTH.>> GOOD AFTERNOON. THE ITEM BEFORE YOU TODAY IS THE REPLACEMENT OF TWO EXISTING TRANSFORMERS AT THE TOTTEN SUBSTATION WITH LARGER SUBUNITS. WHILE THEY CONTINUE TO PERFORM RELIABLY, THE AVAILABLE CAPACITY AT THE SUBSTATION IS BECOMING INCREASINGLY LIMITED AS DEMAND GROWS IN THE SOUTHWEST PORTION OF OUR SERVICE TERRITORY. SEVERAL PLANNED RESIDENTIAL AND COMMERCIAL DEVELOPMENTS WILL REQUIRE ADDITIONAL ELECTRICAL CAPACITY IN THE NEAR FUTURE. REPLACING THE EXISTING TRANSFORMERS WITH LARGER UNITS WILL PROVIDE THE CAPACITY NEEDED TO SUPPORT THAT GROWTH WHILE IMPROVING THE RELIABILITY AND FLEXIBILITY OF THE ELECTRIC SYSTEM.
THIS INVESTMENT ALSO HELPS ENSURE WE CAN CONTINUE PROVIDING SAFE AND RELIABLE SERVICE TO BOTH EXISTING AND FUTURE CUSTOMERS. THIS PROJECT IS PLANNED TO BE FUNDED THROUGH THE 2026 BOND PROCEEDS PLAN.
STAFF RECOMMENDS PURCHASING THE REPLACEMENT TRANSFORMERS FROM THE CURRENT MANUFACTURER TO MAINTAIN CONSISTENCY AND SUPPORT OUR LONG-TERM EXPANSION PLANS. AS PART OF THOSE PLANS, WORK IS ALREADY UNDERWAY TO ADD A THIRD TRANSFORMER AT THIS LOCATION.
FOR THESE REASONS, STAFF RECOMMENDS APPROVAL OF THIS PURCHASE. WE WOULD BE HAPPY TO ANSWER ANY
QUESTIONS THE BOARD MAY HAVE. >> ANY QUESTIONS TO THE -- ANY
QUESTIONS OF THE BOARD? >> WHO DID YOU SAY ARE GOING TO FUND THESE AGAIN? YOU SAID THE FUNDING WILL COME
FROM WHERE? >> OUR BOND PROCEEDS PLAN.
>> YEAH. LATER THIS YEAR WE EXPECT A 2026 TAX EXEMPT REVENUE BOND. THIS HAS BEEN THE PLAN FOR THE LAST COUPLE OF YEARS, TO FUND SOME OF THESE LARGE EXPENSES.
BECAUSE WE JUST CAN'T FUND IT THROUGH RATES IN A COUPLE OF YEARS. IT'S A MUCH LARGER AMOUNT OF
>> WHAT ARE THE COSTS OF THESE TRANSFORMERS?
>> IT'S ABOUT 1.2 MILLION PER. I THINK THE TOTAL COST IS
2.5 MILLION ROUGHLY. >> DOES THAT INCLUDE
>> CONTRACT PRICE, PURCHASE, ALL FOR THE TRANSFORMER AND
>> AND CAN YOU REMIND ME WHERE IS THIS AND WHERE DOES IT SERVE?
>> THIS IS OUR TOTTEN SUBSTATION, AND THIS SERVES IN OUR SOUTHWEST PORTION. IT SERVES THE AREA NEAR THE
[00:15:04]
JUNCTION OF THE TURNPIKE AND 95. AND THEN FURTHER SOUTH OF THAT AROUND LAKE JENKINS, DOWN -- LI>> SO THERE'S A LOT OF IND INDUSTRIAL GROWTH DOWN THERE.
>> YES. >> IT'S RIGHT BEHIND THE
THAT'S WHAT I WANTED TO KNOW! I CAN RELATE TO THAT.
>> I THINK TOTTEN SUBSTATION ALSO SERVES UNIVERSITY COLLEGE.
SO THAT GIVES YOU A GOOD IDEA FROM EAST TO WEST WHAT IT SERVES
AND ALL TO THE SOUTH. >> AND THE PLANS WERE TO ADD A THIRD IN THE FUTURE? ANY REASON NOT RIGHT NOW?
>> PLANS ARE UNDERWAY FOR THAT RIGHT NOW.
OUR PLAN IS ACTUALLY IN THE -- PROBABLY NEXT BOARD MEETING, THE PLAN IS TO HAVE AN ITEM FOR YOU FOR KICKING OFF THE CONSTRUCTION
FOR THAT PROJECT. >> ANY OTHER QUESTIONS?
>> I'D JUST LIKE TO KNOW MORE ABOUT THE ANTICIPATED GROWTH
THAT WOULD CALL FOR -- >> YES.
SO WE'VE HAD A LOT OF REQUESTS IN THE AREA.
RESIDENTIAL, WHICH ARE LIKE PLANNED URBAN DEVELOPMENTS IN THAT AREA. ALONG WITH COMMERCIAL DEVELOPMENT. SPECIFICALLY AROUND THE I-95 AND T TURNPIKE AREA.
WE'RE SEEING A LOT OF GROWTH IN THAT AREA.
SOME RESIDENTIAL BUT SOME COMMERCIAL AS WELL.
SO THIS COULD BE NEW HOTELS. ONE OF THE RECENT ONES WE HAD WAS A NEW TESLA SUPERCHARGER CHARGING STATION IN THAT AREA.
AND WE'RE EXPECTING SOME OTHER COMMERCIAL GROWTH IN THAT AREA
>> WE HAVEN'T HAD ANY MAJOR INDUSTRIAL TYPE, BUT THERE IS SOME MINOR INDUSTRIAL THAT WE'VE SEEN IN THAT AREA.
>> MS. PEARL, I WOULD LIKE TO ADD.
THERE IS GROWTH OUT THERE, BUT THE TRANSFORMERS ARE ALREADY OPERATING AT CAPACITY. SO THAT RIGHT NOW IS PROBABLY THE BIGGER CHALLENGE THAT THEY HAVE TO TACKLE, HOW DO WE INSTALL -- HOW DO WE UPGRADE THESE TRANSFORMERS SO THEY'RE NOT OPERATING AT 75% CAPACITY. BECAUSE WE'RE ALREADY DEALING WITH A PERCENTAGE OF OUR TRANSFORMERS' CAPACITY THAT WE DON'T WANT TO BE WORKING AT. IT WILL GIVE US THE ABILITY TO
ADD MORE SERVICE. >> AND THIS IS A KINGS HIGHWAY JOBS CORRIDOR, WHICH THE CITY IS PUSHING IN TERMS OF COMMERCIAL.
AND THERE'S A WHOLE NEW DEVELOPMENT GOING IN AT JENKINS ROAD AND I-95. A BIG HOUSING DEVELOPMENT GOING
THERE. >> MOSTLY RESIDENTIAL AND
COMMERCIAL. >> BUT WE WANT MORE COMMERCIAL
BUT WE'VE GOT A LOT OF INDUSTRIAL GOING ON
>> SO I WAS JUST WONDERING IF WE WERE BANKING ON THAT TYPE OF
GROWTH. >> AND IT'S FED OFF THE SAME TRANSFORMER THAT WE'RE TALKING ABOUT NOW.
OR THE SAME SUBSTATION. >> HOW FAR DOES OUR SUBSTATION
GO TO THE NORTH FOR SERVICE? >> THE TOTTEN SUBSTATION?
>> YES. >> THERE'S A TIE TO THE WATER
PLANT. >> MAYBE A MILE NORTH OF THE
WATER PLANT. >> I HAVE AN IDEA OF HOW FAR TO THE SOUTH WE'RE GOING, BUT I DIDN'T KNOW HOW MUCH TO THE NORTH AS WELL. AND WE'RE HAVING GROWTH THERE AS
WELL. >> OUR SYSTEM TO THE NORTH GOES ALL THE WAY TO THE COUNTY LINE ALONG US-1.
BUT THEN WE JOG AROUND THE AIRPORT.
A BIT OF A JIGSAW PUZZLE TO THAT NORTHERN SERVICE AREA.
>> THAT'S WHY WE'RE NOT IN LAKEWOOD PARK.
>> THAT'S SERVED BY ANOTHER PROVIDER.
>> WHAT CAPACITY DO WE WANT TO BE OPERATING AT?
>> WE WOULD LIKE TO BE OPERATING AT 50% CAPACITY.
PER TWO TRANSFORMERS. THE REASON FOR THAT BEING, IF ONE OF THE TRANSFORMERS GO DOWN, IF WE NEED TO DO MAINTENANCE, WE CAN SHIFT THE LOAD WITHOUT ISSUES.
>> ALL OF OUR SUBSTATIONS HAVE TWO TRANSFORMERS FOR THAT EXACT
[00:20:03]
REASON. >> AND THIS ONE WILL BE -- ONCE WE GET THE THIRD TRANSFORMER IN, IT WILL BE AN ADDITIONAL CAPACITY SIZE INCREASE DUE TO THE EXPECTED LOAD WE ARE
ANTICIPATING. >> AND THEN WE WILL BE OPERATING AT WHAT CAPACITY THEN WITH THE THIRD ONE?
>> IDEALLY WE WOULD LIKE TO STAY AT THE 33%.
THAT WAY WE COULD SHIFT IT ALL INTO ONE.
BUT WITH THE GROWTH GOING ON, WE'RE GOING TO TRY TO SEE IF WE CAN MITIGATE THAT THROUGH THE POSSIBLE PLANNING FOR FUTURE
ITEMS THERE. >> ANY OTHER QUESTIONS OF THE BOARD? ANYBODY CARE TO MAKE A MOTION?
[E.3. City of Fort Pierce Retirement and Benefit Systems Update]
MR. CHAIRMAN, MEMBERS OF THE BOARD, THE LAST ITEM THIS AFTERNOON IS OUR ANNUAL PRESENTATION TO THE FPUA BOARD ON THE RETIREMENT SYSTEM. DIRECTOR OF GAS AND ELECTRIC
SYSTEMS WILL PRESENT THIS ITEM. >> THANK YOU, MR. CISNEROS.
MR. CHAIRMAN, BOARD MEMBERS. SO TODAY I'M HERE TO PRESENT THE -- AS MR. CISNEROS SAID, THE ANNUAL PRESENTATION OF OUR ACTUARY REPORT FOR 2025. SO WE'LL JUST GET RIGHT INTO IT.
THE RETIREMENT BOARD -- OF COURSE SOME OF THIS IS REDUNDANT TO SOME OF YOU. OUR RETIREMENT BOARD CONSISTS OF SEVEN MEMBERS. IT TWO ARE CITY COMMISSIONERS THAT ARE APPOINTED. CITY DIRECTOR OF FINANCE, AN FPUA APPOINTEE, AND THREE ELECTED MEMBERS.
I HAPPEN TO BE THE ELECTED MEMBER FOR FPUA.
AND THE CITY AND THE POLICE. WE HAVE OUR OWN ATTORNEY, INVESTMENT CONSULTANT, AND MONEY MANAGERS.
AS YOU CAN SEE, WE ARE WHAT'S CALLED A DEFINED BENEFIT PLAN.
THE PENSION BENEFITS CALCULATED BASED ON THE MEMBER'S AVERAGE ANNUAL SALARY AND YEARS OF SERVICE.
YOU DON'T HAVE TO LIVE OFF -- YOU DON'T HAVE TO HOPE THAT YOUR PIE FILLS BACK IN BY THE END OF THE YEAR.
YOU GET A WHOLE NEW PIE EVERY YEAR AS LONG AS YOU DIDN'T EAT ALL OF IT THE YEAR BEFORE. SO YOU GET YOUR PIE REPLACED WITH A DEFINED BENEFIT PLAN. FPUA EMPLOYEES MAY RETIRE AT 60 YEARS OF AGE OR AT FIVE YEARS OF SERVICE.
WE'VE HAD SOME CHANGES, WHICH ADDS TO RUNNING THE RETIREMENT FUND. THEY HAD IMMORTALITY ASSUMPTION CHANGES. THEY'VE BEEN DOING THIS EVERY FIVE OR SIX YEARS BECAUSE PEOPLE ARE LIVING LONGER.
THEY HAVE TO ADJUST ACCORDINGLY SO WE'RE ABLE TO PAY THESE PEOPLE WHO ARE LIVING LONGER. AND THE NUMBERS INCREASE, CONTR CONTRIBUTIONS.
WHAT IT DID, IT TOOK OUR FUNDED RATIO DOWN TO 79.7%, WHICH THEY ROUNDED TO 80. THERE WERE NO BENEFITS ADOPTED IN THE 2025 REPORT. HERE YOU SEE WHAT THE CONTRIBUTIONS WERE IN 2025 FOR THE EMPLOYEES AND FOR THE EMPLOYER AND THE DOLLAR AMOUNT. AND WHAT THE PERCENTAGE WILL BE FOR THE 2026 CONTRIBUTION RATES. SO AS I MENTIONED BEFORE, THE SEPTEMBER 20TH, 2025, EVALUATION SHOWED WE WERE 80% FUNDED BASED ON OUR EVALUATION OF ASSETS. AND OUR RECOGNIZED INVESTMENT RETURN WAS 5.75, WHICH WAS LESS THAN OUR 7.25 ASSUMED RATE OF RETURN THAT WE REALLY LOOK FOR. BUT I WILL TELL YOU, WE USE A FOUR-YEAR SMOOTHING AVERAGE FOR GOING UP AND DOWN EVERY YEAR.
AND I THINK I MENTIONED IT LAST YEAR.
2022 WAS A VERY BAD YEAR FOR EVERYBODY.
ESPECIALLY INVESTMENTS. AND IT WILL DROP OFF NEXT YEAR.
[00:25:03]
BUT OUR ACTUAL MARKET VALUE OF RATE OF RETURN WAS 10.52.SO THAT'S PRETTY HIGH. AND UP UNTIL ABOUT A FEW YEARS AGO, FORT PIERCE UTILITIES -- OR THE CITY OF FORT PIERCE RETIREMENT PLAN ALWAYS HAD AT LEAST 8% RETURN ON ALL OUR INVESTMENTS. AS OF SEPTEMBER 30TH, 2025, THE FUNDING VALUE WAS 263 MILLION. I JUST GOT THE END OF MAY REPORT, AND OUR FUND IS ACTUALLY VALUED AT 279 MILLION NOW.
SO IT IS GOING UP. AND THAT WAS AS OF MAY.
YOU CAN SEE HOW MANY RETIREES WE HAVE, THEIR ANNUAL BENEFITS, AND WHAT THEIR AVERAGE BENEFIT IS FOR HOW MANY PEOPLE ARE RETIRED IN THIS SYSTEM. ONE OF THE BIG THINGS WE DO IN THE INVESTMENT ALLOCATION TARGETS IS TO DIVERSIFY, DIVERSIFY. AND THERE'S OUR PLANNED PERCENTAGES THAT WE TRY TO MAINTAIN.
THEY MAKE ADJUSTMENTS DURING THE YEAR.
IF ONE'S DOING BETTER THAN THE OTHER, THEY'LL DRAW MONEY FROM THERE TO PAY THE BENEFITS. BUT BY THE END OF THE YEAR, WE TRY TO TRUE THAT UP TO BE PRETTY CLOSE TO OUR PERCENTAGES THAT WE HAVE IN OUR PLAN. COST OF LIVING ADJUSTMENTS, WHICH WE HEAR ABOUT A LOT. AT THIS TIME, THE PROVISION IS NOT LIKELY TO OCCUR FOR AN INDEFINITE FUTURE.
AND IT CAN BE SEEN AT FPUA.COM AT THIS LINK.
IF YOU GO IN AND LOOK AT IT, YOU'LL BE ABLE TO SEE THE WHOLE REPORT IN ITS ENTIRETY. AND I'LL BE HAPPY TO ANSWER ANY
QUESTIONS THAT Y'ALL MAY HAVE. >> ANY QUESTIONS?
>> MR. CHAIRMAN, THE 22% THAT THE EMPLOYER IS GOING TO PAY, HOW DOES THAT COMPARE TO THE PREVIOUS YEAR?
>> YES, MA'AM. >> ONE QUESTION.
YOU HAD A SLIDE THAT LOOKED LIKE YOUR RETURN WAS 5 SOMETHING.
>> 5.75. >> WHAT WAS IT THE LAST YEAR?
IF YOU RECALL. >> I THINK WE WERE OVER THERE.
I THINK WE WERE 8. I DON'T HAVE THE NUMBER IN MY HEAD. IT WAS OVER THE 7.75, BUT I WILL TELL YOU OUR ACTUAL -- I REMEMBER THIS.
IT WAS DOUBLE-DIGIT MARKET GAINS.
BUT LIKE I SAID, 2022 WAS SO BAD, WE DO A FOUR-YEAR SMOOTHIN.
SO IT SMOOTHED OUT. AND I WANT TO SAY WE WERE SOMEWHERE -- OH, I KNOW IT WAS DOUBLE DIGITS.
I WANT TO SAY IT WAS WELL OVER 15% RETURN.
>> SO THIS 5.75 IS TAKING INTO ACCOUNT THE SMOOTHING THAT
>> SO IT'S NOT UNDER-PERFORMING. BECAUSE YOU MENTIONED YOU HAD A
10% -- >> WE DEFINITELY UNDER-PERFORMED
IN 2022. >> WE KNOW THAT, YEAH.
>> AND IT TAKES THE FOUR YEARS INTO ACCOUNT.
YES, SIR. AND THAT'S WHERE WE ENDED UP BASED OFF THE FOUR YEARS. AND EVEN THOUGH WE WERE HIGHER, WE'RE AT 10% -- WHAT DID I SAY? 10 POINT WHATEVER IS WAS PERCENT IN MARKET GAINS. I'LL BE HONEST WITH YOU, THAT'S THE LOWEST THAT I'VE SEEN SINCE I'VE BEEN ON THE BOARD.
AND I'VE BEEN ON THE BOARD 12 YEARS.
>> AND THAT'S MAINLY BECAUSE OF 2022?
>> '22 REALLY HIT US HARD. YES, SIR.
JUST LIKE 2008 DID. >> THAT WOULD HAVE BEEN BAD TIMES. THERE'S NO DOUBT.
>> YES, SIR. >> ANY OTHER QUESTIONS?
>> AS OF RIGHT NOW FOR THIS YEAR, IT LOOKS LIKE -- IF 2022
DROPS OFF AND THIS YEAR HOLDS -- >> WE'RE IN '26, SO WE'VE GOT ANOTHER YEAR. BUT I THINK YOUR 5.75 -- REMEMBER, THEY ALWAYS BEAT IT INTO US THERE.
PAST GAINS DON'T MEAN FUTURE GAINS ARE GOING TO HAPPEN.
BUT IF EVERYTHING STAYED EQUAL, THAT NUMBER WILL DEFINITELY GO
UP, MA'AM. >> BECAUSE RIGHT NOW THE STOCK MARKET IS LOOKING PRETTY GOOD, RIGHT?
>> YES, MA'AM. OVERALL OUR RETURNS AND BECAUSE OF OUR DIVERSIFICATION AND ALL THE WORK PEOPLE DID BEFORE I WAS EVEN ON THE BOARD SETTING THINGS UP, WE'VE DONE A GOOD JOB.
THE FUN MANAGED WELL. >> AND THE REDUCTION IN THE -- THE REDUCTION BECAUSE OF THE MORTALITY RATES, NOT BECAUSE THE FUND ISN'T DOING WELL; IS THAT CORRECT?
[00:30:02]
>> THAT IS CORRECT. THE MORTALITY RATE TAKES A HIT, AND WE TAKE A HIT THERE. AND THOSE ARE THINGS THAT HAPPEN
THAT WE HAVE NO CONTROL OVER >> RIGHT.
BECAUSE IN THE LEGISLATURE, ONE YEAR SAID YOU HAD TO USE THE
TRUE MORTALITY RATES, CORRECT? >> IT'S BEEN ABOUT EVERY FIVE OR SIX YEARS THEY MAKE AN ADJUSTMENT, AND THEY KNOW PEOPLE ARE LIVING LONGER SO WE HAVE TO -- AND OUR ACTUARY DOES A
GREAT JOB OF MANAGING OUR RISK. >> MR. CHAIR, IT'S AT 5.75% NOW.
WHAT IS THE ESTIMATED -- >> I WOULDN'T EVEN BE ABLE TO TELL YOU, MA'AM. ALL I CAN TELL YOU IS IT'S THE LOWEST I'VE EVER SEEN IT. AND BASED OFF OF -- I WANT TO SAY -- I'M SORRY, LAST YEAR WAS, LIKE, 18%.
IT'S JUST IN MY HEAD. WE HAD A RATE OF RETURN, MARKET RETURN, FOR SOME REASON I WANT TO SAY OVER 20.
BUT I WOULD BE STRETCHING IT THERE.
AND THIS ONE WAS 10 AND SOME CHANGE.
OVER 10% THIS YEAR MARKET GAINS. SO YOU CAN IMAGINE HOW BAD WE DID, AND WE ENDED UP WITH 5.75 THIS YEAR.
SO I'M HOPING IF WE DO WELL THIS NEXT YEAR THAT WE'LL BE ABOVE
OUR 7.25 OF ASSUMED RETURN. >> AND THE 2022 IS BECAUSE OF
COVID? >> IT WAS BECAUSE OF A LOT OF REASONS. COMING BACK PROBABLY OUT OF COVID, I WOULD HAVE TO AGREE. BUT I WOULD BE GUESSING.
THERE'S A LOT OF FACTORS THAT GO INTO IT, BUT THAT WAS ONE OF THE BIG ONES. I KNOW MY INVESTMENTS DIDN'T DO
GOOD IN 2022. >> AND THAT WAS THE YEAR WE HAD
A SPIKE IN NATURAL GAS PRICES. >> WELL, I WASN'T GOING TO BRING THAT UP, MA'AM. [LAUGHTER]
>> YEAH. WELL, WE'LL NEVER FORGET IT.
[F. DIRECTOR COMMENTS]
WELL, THANK YOU. DIRECTOR COMMENTS.>> I HAVE ONE COMMENT. OUR NEXT MEETING WILL BE OUR BUDGET WORKSHOP ON JULY 22ND FROM 1 TO 4.
WE WILL BE PROVIDING LUNCH FOR THE BOARD SO THAT YOU CAN HOPEFULLY SKIP YOUR LUNCH AND GET THERE SO WE CAN GET STARTED AT 1. AND WE ARE HAVING OUR ONE-ON-ONE MEETINGS WITH THE BOARD MEMBERS TO GET SOME FEEDBACK IN CASE THERE'S ANYTHING WE NEED TO TWEAK IN PREPARATION FOR THAT WORKSHOP. BUT WE'RE EXCITED ABOUT PRESENTING THIS YEAR'S BUDGET WORKSHOP BECAUSE WE ARE PROVIDING A BALANCED BUDGET THAT I THINK LOOKS VERY, VERY GOOD FOR FPUA AND FOR THE CITY OF FO FORT PIERCE. SO REALLY PROUD TO PRESENT THAT.
WE LOOK FORWARD TO THAT ON JULY 22ND.
THAT'S ALL I HAVE FOR THE BOARD TODAY, MR. CHAIRMAN.
[H. BOARD MEMBER COMMENTS]
>> THANK YOU. ATTORNEY COMMENTS.
>> NONE TODAY, SIR. >> EXCELLENT.
COMMENTS FROM THE BOARD MEMBERS? >> I JUST WANT TO SAY THAT WE HAD A GREAT CELEBRATION FOR THE 250TH BIRTHDAY OF AMERICA AND ALSO THE 125TH OF THE CITY OF FORT PIERCE.
AND I WANT TO THANK THE FPUA FOR PARTICIPATING WITH US.
>>
* This transcript was compiled from uncorrected Closed Captioning.