Link

Social

Embed

Download

Download
Download Transcript

[Call to Order]

[00:00:09]

>>> GOOD AFTERNOON. WE THANK YOU FOR THE FAVOR YOU HAVE SHOWN TO FORT PIERCE. WE ACKNOWLEDGE YOUR HAND IN ALL THINGS GOOD. WE ASKED FOR YOUR PROTECTION, GUIDANCE, WISDOM AND STRATEGIES TO MOVE THIS COMMUNITY TO WHAT IT WILL BE. THE CURRENT PLANS CAR AND EVERYTHING UNDERWAY. IN JESUS NAME.

>>> 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. >>> COULD YOU PLEASE CALL THE

ROLE. >> THE ROLE IS BEING CALLED.

[Item A]

>> DOES ANYONE HAVE ANY CHANGES TO THE AGENDA?

MOVE FOR APPROVAL. >> PLEASE CALL THE ROLE.

>> THE ROLE IS BEING CALLED. >> DOES ANYONE WANT TO MAKE A

[Item B]

MOTION TO APPROVE THE MINUTES. >> I MAKE A MOTION TO APPROVE

THE MINUTES. >> PLEASE CALL THE ROLE.

THAT WAS STERILE. >> THE ROLE IS BEING CALLED.

>>> ANY COMMENTS FROM THE PUBLIC?

[Consent Agenda]

>> SEEING NONE WE WILL MOVE ON TO THE AGENDA.

IS THERE A MOTION TO APPROVE. >> PLEASE CALL THE ROLE.

>> THE ROLE IS BEING CALLED. >> LETTERS OF APPRECIATION.

[Item E]

>> IF A CARD WAS RECEIVED FROM MARQUITA PHILLIPS THANKING FPUA EMPLOYEES FOR THE FOOD DONATED. THE LETTER WAS RECEIVED FROM JEFF AND SHEENA MARQUIS OF THE SALVATION ARMY THANKING THEM FOR SUPPORTING THEIR PROGRAM. BY PURCHASING CHRISTMAS GIFTS

FOR THE CHILDREN. >> THANK YOU.

[Item G1]

>> MR. TOM. >> THE FIRST ITEM THIS AFTERNOON IS THE BILL COMPARISON FOR THE MONTH OF NOVEMBER 2019.

BARBARA WILL MAKE THE PRESENTATION.

>> >> THANK YOU.

GOOD AFTERNOON. I AM PRESENTING TO YOU TODAY FOR THE UPDATE ON COMPARISONS OF THE ELECTRIC RATES IN THE STATE OF FLORIDA AND THE LOCAL BILLS FOR NOVEMBER 2019.

IN THIS FIRST GRAPH THE COMPARISON OF THE CONSUMPTION READS FOR 1,000 HOURS AND --

>> IT HAS BEEN DOING THAT ALL NIGHT.

>> IN THE STATE OF FLORIDA. THE MEMBERS OF THE PROJECT.

THEY ARE DISPLAYED AND RANK AND BASED UPON THEIR KILOWATT HOURS.

>> YOU CAN SEE WHERE THE PARTICIPANTS RANK.

IS SHOWN IN YELLOW. AND RANKS WITH THE FOURTH LOWEST RATE OF THIS GROUP. THIS IS AN IMPROVEMENT OF TWO POSITION SINCE OCTOBER. ALSO LOADED IN THE COMPARISON IS THE POSITION THAT THEY HOLD WITH THE COMBINED $3.

KILOWATT HOURS AND DECREASES THAT WENT INTO EFFECT ON

DECEMBER 1 AND FEBRUARY 1. >>> THIS GRAPH DISPLAYS A COMPARISON OF THE BRIEFS FOR THE SAME LEVEL OF CONSUMPTION AND INCLUDES ALL OF THE UTILITIES IN THE STATE.

THEY HAVE BEEN COMPILED BY THE ELECTRIC ASSOCIATION.

FPUA'S BILL FOR THIS LEVEL OF CONSUMPTION IS 10884 AND HAS BEEN IN THIS GRAPH BY FOUR POSITIONS.

IN COMPARISON TO THE OTHER UTILITIES.

AS OF NOVEMBER, THAT THE 12 LOWEST RATES ON THIS WHOLE

[00:05:01]

GROUP. NOVEMBER BROUGHT CHANGES FOR EIGHT OF THE REQUIREMENTS FOR PARTICIPANTS.

TWO SIGNIFICANT INCREASES WITH THE CITY AND TWO WITH INCREASES IN THE 25-DOLLAR RANGE. THE OVERALL IMPACT OF THESE FLUCTUATIONS ON THE AVERAGES HAVE SHOWN IN THIS GRAPH WERE AN INCREASE OF $3.38 FOR THE OVERALL REQUIREMENTS.

AND $1.81 FOR EVERYTHING COMBINED.

FOR THE 1,000-KILOWATT HOURS OF CONSUMPTION, FOR PEACE DISTRACT FORT PIERCE RATES ARE BELOW EVERYONE.

AGAIN I WOULD LIKE TO POINT WHERE OUR RATE WOULD BE AND THE THINGS THAT HAVE ALREADY BEEN APPROVED BY THE BOARD THAT IS IN BLUE. THAT AFFECTS THE FEBRUARY RATES.

CHANGE THIS IS A SIMILAR COMPARISON WITHIN THE STATE OF FLORIDA. WITH CONSUMPTION OF 2500-KILOWATT HOURS. IN THIS COMPARISON THE BILL GOES UNCHANGED FROM THE PREVIOUS MONTHS AND IT HAS ALSO IMPROVED

THE STANDING SINCE LAST MONTH. >> THE AVERAGE FOR THE LEVEL OF CONSUMPTION FOR ALL THREE OF THESE GROUPS WERE IMPACTED BY THE SAME CHANGES. THE AVERAGE FOR THE OVERALL REQUIREMENT ROSE AND THE INCREASE WAS $4.29.

>>> HERE WE HAVE THE TABLE OF THE AVERAGE BILLS ON THE TREASURE COAST. THE COMPARISON INCLUDES THE BILLS FOR ELECTRIC, WATER AND WASTEWATER SERVICES.

THAT A CUSTOMER WOULD EXPERIENCE IF THEY LIVED IN THESE SERVICE TERRITORIES. THESE HAVE BEEN VERIFIED AGAINST THE HISTORICAL BILLS. IN THIS COMPARISON, THE BILL FOR SERVICES PROVIDE EVERYTHING IN THE FIRST COLUMN.

ALL OF THE OTHER BILLS THEY HAVE ARE PROVIDED.

THE WHAT IS WHATEVER THE PROVIDER IS.

THE LOCAL BILLS HERE ARE SLIGHTLY LOWER DUE TO A ONE-TIME CREDIT THAT THEY RECEIVED FOR "BEST RIGHT OVER COLLECTION OF

CHARGES. >> THERE WERE NO CHANGES ON THE

PREVIOUS BILLS. >> THAT IS ALL I HAVE ON HERE.

>> THIS ITEM IS FOR YOUR INFORMATION THAT'S RIGHT FOR

YOUR INFORMATION ONLY. >> I WOULD LIKE TO ADD ONE QUICK ITEM. WHEN YOU LOOK AT THE CHARTS THE DIFFERENT UTILITIES HAVE DIFFERENT WAYS OF ADJUSTING.

LAST MONTH JACKSON BEACH WAS AT THE BOTTOM OF THE LIST BECAUSE THEY REFUND EVERY MONTH AND MAKE ADJUSTMENTS EVERY MONTH.

THIS MONTH THEY HAD ONE IN THE MIDDLE OF THE CHART.

>> I'M NOT CRAZY ABOUT DOING IT THAT WAY.

I THINK IT IS BETTER IF IT IS LEVELIZED.

THE SECOND ITEM WE HAVE BEEN TALKING WITH AND I'S SPOKE WITH FPUA ABOUT RATES AND WE WILL BE MEETING WITH THE WILL SEE YOU IN THE FUTURE ON STANTON ONE COP THAT IS THEIR PLAN.

AND THE RATES ARE VERY HIGH. WE ARE TRYING TO FIGURE OUT A WAY WE CAN GET THEM TO REDUCE SOME OF THEIR COSTS SO IT IS COSTING ABOUT $80 MILLION. YEAR AND IT EQUATES TO $3 AND THE RATING. SO WE WILL SPEAK TO THEM ABOUT HOW THEY CAN REDUCE THEIR COSTS. THE RATES ARE AN ONGOING ISSUE THAT WE REALLY DO LOOK AT EVERY SINGLE DAY.

>> THANK YOU. >>> DO YOU HAVE MY QUESTION?

>> SORRY. >> THE NEXT ITEM IS THE

[Item G2]

PRESENTATION BY LARRY ON POLE ATTACHMENTS.

>>> THANK YOU. MEMBERS OF THE BOARD.

>> SO BY THE TIME WE FINISH WITH THIS PRESENTATION.

I WANT TO LEAVE YOU GUYS MORE INFORMED ON HOW WE SHARE FACILITIES WITH OTHER COMPANIES AND THE DIFFERENT IMPACTS IT HAS ON OUR OPERATION. MOST IMPORTANTLY SOME OF THE

[00:10:01]

CHANGES THAT THE INDUSTRY EXPECT IN THE NEAR FUTURE AND WHAT THAT

MEANS FOR FORT PIERCE. >> SO WE GOT TO WHERE WE ARE WITH MULTIPLE COMPANIES BECAUSE TELEPHONE AND POWER AND UTILITY BILL OUTS OCCURRED AROUND THE SAME TIME.

SO IN MOST GEOGRAPHICAL AREAS THE COMPANIES GOT TOGETHER AND SAID WE CAN DO THIS MORE COST-EFFECTIVE AND A MORE AESTHETICALLY PLEASING WAY IF WE JOIN OUR EFFORTS TOGETHER AND PUT BOTH ON THE SAME POLE. HOPEFULLY NOT LIKE THIS BUT NONETHELESS SHARING FACILITIES WAS THE WAY TO DO IT.

THEY BOTH DECIDE TO GO THIS WAY. >> WHEN YOU DON'T DO THAT YOU CAN END UP WITH A SITUATION LIKE THIS.

OBVIOUSLY THERE IS NO JOINT USE GOING ON.

YOU HAVE MULTIPLE POLLS BECAUSE YOU HAVE WIRES GOING EVERYWHERE THERE IS NO COLLABORATION. THIS IS PROBABLY NOT LEGAL IN THE UNITED STATES. SO WHEN WE TALK ABOUT SHARING FACILITIES THERE ARE TWO DIFFERENT AGREEMENTS THAT ARE STANDARD. ONE IS A JOINT USE AGREEMENT.

UNDER THIS TYPE OF A RELATIONSHIP BOTH UTILITIES OWN POLLS SO FOR EXAMPLE ON ORANGE AVENUE IT MAY BE THAT FORT PIERCE OWNS THE POLLS AND THE COMMUNICATION AUTHORITY WILL HAVE ONE THERE TOO. ON AVENUE A IN MAY BE THE AT&T POLE AND WE HAVE FACILITIES ON THEIR.

UNDER THAT JOINT USE OF AGREEMENT, BOTH COMPANIES OWN POLLS AND THEY SHARED THE USE OF THEM.

>> THAT IS DIFFERENT BECAUSE UNDER THAT TYPE OF A SHARED USE, ONE COMPANY WOULD OWN THE POLLS AND THE OTHER WOULD CALL -- WOULD PAY A STANDARD FEE FOR EVERY POLL THE ATTACHED TWO.

>> SO IF YOU LOOK AT A TYPICAL UTILITY POLE CAUGHT THE TOP WILL BE DESIGNATED FOR ELECTRIC. SO ON BOTH OF THESE POLES WE HAVE HIGHLIGHTED FACILITIES THAT ARE OWNED AND OPERATED AND MAINTAINED BY FPUA. THEN YOU WILL HAVE A FREE SPACE.

THAT IS REQUIRED BY LAW. YOU HAVE TO HAVE IT THERE TO GIVE A BUFFER BETWEEN FACILITIES THAT ARE ENERGIZED WITH ELECTRICITY AND WHERE THE COMMUNICATION WORKERS ARE GOING TO WORK. IT IS A SAFETY SPACE.

FINALLY YOU HAVE THE COMMUNICATIONS SPACE.

>> ALSO THE DIFFERENT RULES AND LAWS THAT REGULATE HOW YOU HAVE TO ALLOW COMMUNICATION COMPANIES TO ATTACH TO YOUR FACILITIES IN THE FCC REALLY DOESN'T WANT US TO PROPOSALS RULES OF CONGRESS.

THE MAIN THING I WANT TO HIGHLIGHT IS THAT THEY HAVE THE TENDENCY TO BE VERY COMMUNICATION COMPANY FRIENDLY AND DON'T REALLY GIVE A BIG CONSIDERATION TO THE IMPACT IT

HAS ON THE ELECTRIC UTILITY. >>> SO THERE ARE TWO MAIN RULES THAT I WANT TO TALK ABOUT. TWO MAIN LAWS THAT AFFECT US.

ONE IS THE 1978 POLE ATTACHMENT ACT AND FROM WHAT I UNDERSTAND THAT WAS AROUND THE TIME CABLE TELEVISION WAS BECOMING WIDESPREAD AND THE FEDERAL REGULATORS WANTED TO GIVE CABLE COMPANIES THE OPPORTUNITY TO REALLY BUILD OUT THEIR SYSTEMS QUICKLY WITH THE COOPERATION FROM UTILITY OWNERS WHO ALREADY HAD HOLES IN PLACE THAT THEY COULD ATTACH TO.

>> THE OTHER ONE THAT IS IMPORTANT IS THE TELECOMMUNICATIONS ACT OF 1996. THIS WAS REALLY MOTIVATED BY THE FEDERAL REGULATORS INTENT FOR WIRELESS NETWORKS TO GET BUILT

OUT QUICKLY. >>> SO JUST LIKE A LOT OF THE RULES THAT AFFECT ELECTRIC UTILITIES THERE IS A MUNICIPAL EXEMPTION. THAT IS THE EXEMPTION THAT APPLY TO US AS A PUBLICLY OWNED UTILITY.

MOSTLY RELATES TO WHAT WE CAN REQUIRE FROM A COMMUNICATIONS COMPANY WHEN THEY WANT TO ATTACH TO OUR OWN POLLS AND HOW MUCH WE ARE ALLOWED TO CHARGE THEM. I BELIEVE THE REASON WE HAVE THOSE EXEMPTIONS IS WE OPERATE FROM A STANDPOINT OF WE WANT TO DO WHAT IS BEST FOR COMMUNITY AND THE CUSTOMERS WE SERVE.

WE ARE NOT STRICTLY LOOKING AT THE BOTTOM LINE AND THE RATE OF RETURN WE CAN GIVE TO INVESTORS. THE PEOPLE WHO OWN THE UTILITY ARE THE SAME PEOPLE WHO BUY THE SERVICES.

[00:15:05]

>> I WANTED TO SHOW THIS PICTURE REALLY QUICK BECAUSE IT HIGHLIGHTS THE COMMUNICATION WORKER SAFETY ZONE.

I TOOK THIS PITCHER OFF OF A WEBSITE AND WE HAVE TO ADHERE TO THE RULES THAT THEY HAVE IN PLACE.

>> SO WE TALK ABOUT JOINT USE AND SPECIFICALLY FOR FORT PIERCE UTILITIES WE HAVE BEEN JOINT USE AGREEMENT WITH AT&T.

IT WAS EXECUTED BACK IN 1977. BACK THEN THEY WERE CALLED SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY.

BOTH PARTIES OWN POLLS. AND ACCORDING TO THE AGREEMENT AS LONG AS TRAINING OWNED 53% AND AT&T ON 47%, THEN NO MONEY EXCHANGES HANDS. WE CALL IT A WASH.

THE REASON WE ARE REQUIRED TO OWN MORE HOLES UNDER THE AGREEMENT IS BECAUSE WE USE MORE SPACE.

SO APPARENTLY AT THE TIME IT WAS CONSIDERED FAIR FOR US TO OWN A

HIGHER PERCENTAGE. >>> SO AS OF LAST YEAR, WE HAVE RECORDS OF US HAVING 9,537 SHARED POLLS.

UNDER THIS AGREEMENT AT&T SHOULD OWN 4,530 BUT THE ONLY OLD 4111.

WE SENT THEM A BILL FOR HUNDRED $9,500.

I DO WANT TO HIGHLIGHT WE DON'T SHARE ANY POLES WITH THEM NOW.

-- WITH EFFIE AND L. >> SO WITH THE JOINT USE AGREEMENT WITH COMCAST WE HAVE AN ATTACHMENT AGREEMENT.

THEY DON'T OWN ANY POLES THEY JUST ATTACHED TO OUR POLLS AND THEY PAY US A FEE FOR EACH POLE THAT THEY ARE ATTACHED TO AND VISIT ON A SEMIANNUAL BASIS AT $3.95.

POLE. THE AGREEMENT WE HAVE WITH THEM IS RATHER OLD CAUGHT 1991. AND THE PRICE.

POLE THAT WE CHARGE THEM HAVE NOT BEEN UPDATED SINCE 1996.

SO, WE ARE NOT THE ONLY UTILITY IN THIS POSITION.

THIS IS A COMMON ISSUE AMONGST THE INDUSTRY.

AS A MATTER OF FACT THEY LED AN EFFORT FOR ALL OF THE FLORIDA UTILITIES TO APPROACH ATTACH ERRORS THAT THESE UTILITIES HAVE AGREEMENTS WITH. COMCAST HAS AGREEMENTS WITH SIX DIFFERENT UTILITIES THROUGHOUT FLORIDA.

FOUR OF US THAT YES WE ARE AGREEMENTS SIGNED AND RENEGOTIATING. SO THE LEGAL STAFF TO REACH OUT TO COMCAST REPEATEDLY AND ULTIMATELY WE HAD NO SUCCESS.

SO AT THE TIME WE HAD THESE MODEL AGREEMENTS IN PLACE.

FPUA MODIFIED THEM A LITTLE TO MEET WITH THE AGREEMENT THAT WAS FAIR. AND WE WERE PROPOSING A NEW RATE OF $25 PURPLE OR COMCAST TO PAVE TO US.

WHICH IS CONSIDERABLY MORE THAN WHAT THEY ARE PAYING NOW.

IT SPLITS THE DIFFERENCE BETWEEN THE FCC CABLE RATE WHICH AS I EXPRESSED, HEAVILY FAVORS THE COMMUNICATION COMPANY.

THEY DON'T PAY THEIR FAIR SHARE WHICH IS CALCULATED AT $12.72.

IN RESPONSE TO THAT, THE AMERIAN PUBLIC POWER ASSOCIATION CAME UP WITH THEIR OWN CALCULATOR TO DETERMINE WHAT THEY BELIEVED WAS FAIR FOR A COMMUNICATIONS COMPANY TO PUT -- PAY PAY. WE CAME UP FOR OUR SYSTEM THAT WE SHOULD PAY $40. WE WERE PROPOSING SPLITTING THE DIFFERENCE BETWEEN BOTH OF THOSE.

>> BUT AS YOU CAN SEE, EVEN THE FCC CABLE RATE IS HIGHER THAN

WHAT THEY CURRENTLY PAY. >> WE DO HAVE OPPORTUNITIES FOR IMPROVEMENT. ONE IS AN INVENTORY AUDIT.

WE SHOWED YOU THE NUMBERS THAT WE HAVE RECORDS OF.

AND PROPOSE THAT WE SHARE. SO ACCORDING TO THE AGREEMENT.

WE HAVE NOT BEEN ABLE TO FIND RECORDS OF WE DON'T HAVE A HIGH DEGREE OF CONFIDENCE IN THE NUMBERS WE ARE BILLING FOR.

WE DO HAVE A PROCESS IN PLACE OR AN EFFORT IN PLACE, WITH AT&T FOR US TO HIRE A CONTRACTOR TO GET THE INVENTORY COMPLETE.

>> ONE OF THE CHALLENGES IS BECAUSE THEY ARE SO FAR OFF WE ARE NOT SURE HOW WE WILL DO THOSE WITH THE COST SPLITTING RIGHT NOW. WE ARE NOT SURE HOW MANY POLLS

[00:20:02]

WILL BE INVENTORY AFTER THIS EFFORT.

>> BUT WE WILL GET THAT FIGURED OUT AND GET THIS DONE.

ANOTHER ONE IS AN INSPECTION ESPECIALLY FOR ATTACH OR COMCAST. THE AGREEMENT READS FOR EVERY POLL THEY ATTACH TO PAY SHOULD SUBMIT A PERMIT REQUEST TO US.

THAT IS IMPORTANT FOR A FEW DIFFERENT REASONS.

THE MAIN ONE IS THEY ADD BIG THICK CABLES TO THE POLE AND WHATEVER LOAD WE DESIGNED TO HANDLE DOESN'T INCLUDE THE NEW CABLE. SO WE ACTUALLY HAD A MEETING WITH THE CITY ENGINEERING THIS MORNING.

WE HAVE A QUARTERLY MEETING WITH THEM AND WE WILL MEET WITH HIM TO TALK ABOUT PROJECTS THAT ARE COMING UP TO MAKE SURE WE ARE COMMUNICATING CLEARLY. I MENTIONED TO JACK THAT AFTER THE MEETING FOR THEM TO PLEASE START INCLUDING US ON ANY PERMITS SUBMITTED TO THEM THROUGH COMCAST.

WE WILL TRY TO GET MOMENTUM IN THAT DIRECTION.

>> THE LAST OPPORTUNITY IS GETTING UPDATE IMPROVEMENTS AND RATES. THAT WILL BE AN UPHILL BATTLE BT IT IS SOMETHING WE NEED TO INVEST ENERGY INTO.

>>> SO WE DISCUSSED WHERE WE ARE AND SOMETHING I THINK IS IMPORTANT TO MENTION IS THERE'S PROBABLY SOME CHANGES COMING DOWN THE PIPELINE. THAT IS RELATED TO 5G.

THAT WOULD BE THE NEXT MOBILE WIRELESS NETWORK.

AS WITH ALL OF THIS, IT WILL GIVE US HIGHER SPEED AND DATA TRANSFER. THE BIG ONE THAT WILL AFFECT US WILL BE AT THAT WILL PROBABLY GET IN SALT ALL OVER THE PLACE.

SO YOU CAN SEE IN THE MIDDLE OF THE SLIDE THE TRADITIONAL SLIDE.

IT IS DEDICATED TO COMMUNICATIONS.

AN CONTRAST THAT TO THE SMALL CELL TOWERS WHERE THEY ARE SMALLER BUT A LOT MORE OF THEM AND COMMUNICATION COMPANIES WANT ATTACH THIS TO THE EXISTING INFRASTRUCTURE.

THEY WANT TO BUILD NEW TOWERS. >> THEY'RE GOING TO WANT TO ATTACH THIS TO UTILITY POLES. THAT WILL PRESENT SOME CHALLENGES. SO YOU CAN SEE HERE ON THE LEF-HAND SIDE THAT IS YOUR TRADITIONAL TALL CELL TOWER.

THE NEXT THREE PICTURES ARE DIFFERENT VARIATIONS OF SMALL CELL INSTALLATIONS. THERE IS NO STANDARD AT THIS POINT THEY COME IN ALL SHAPES AND SIZES.

IN THE LAST PICTURE THAT JUST POPPED UP.

IT IS WHAT I THINK WE NEED TO AVOID.

NOT ONLY IS IT UNSIGHTLY BUT IT PREVENTS A UTILITY WORKER FROM CLIMBING IS FULL. IT IS AN OBSTRUCTION THAT PREVENTS US FROM WORKING ON IT LIKE WE NORMALLY WOULD.

ALSO IT WILL GENERATE MORE WIND LOADING.

THIS WILL IS MORE LIKELY TO FAIL.

>> AT THE END OF THE DAY WE CAN AVOID THESE PROBLEMS IF WE UNDERGROUND THE WHOLE SYSTEM. IF YOU HAVE ANY QUESTIONS I WOULD LOVE TO TAKE THEM AT THIS TIME.

>> I HAVE A COUPLE OF QUESTIONS. MOST OF MINE WILL GO BACK.

WE HAVE WHAT WE, AND THE ESTABLISHMENT OF THE UTILITIES OF PARIS IN 1972. FROM 1972 TO 1977.

YOU WOULD OPERATE WITHOUT ANY BASIC RULES.

>> I'M NOT SURE WHAT WAS IN PLACE AT THAT TIME.

I CAN'T REALLY SPEAK TO THAT. >> I HAVE ANOTHER QUESTION.

THOSE UTILITIES ARE OUT THERE NOW.

AND THEY HOOK UP AND YOU RECOGNIZE EVERYTHING.

BUT YOU DON'T OWN THE POLLS. >> HOW DO YOU GET OTHER COMPANIES TO INSTALL OR REPLACE THE POLLS.

>> I THINK IT IS A PRETTY BIG ISSUE THROUGHOUT THE INDUSTRY.

THAT IS THAT. >> I THINK IT IS THE GENERAL MODE OF OPERATION THAT EVEN IF THE COMMUNICATIONS COMPANY OWNS

THE POLE, IF THEY SEE AND. >> DEFINITELY DURING A STARTUP

[00:25:15]

SITUATION WE DON'T CHECK. IF IT IS DOWN AND IT HAS OUR

STUFF ON IT WE WILL REPLACE IT. >> DO WE HAVE ANY LINES LOOKED

IN AS OPPOSED TO THE POLE. >> NOT THAT I AM AWARE OF.

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

>> SO IN THE STATE LEGISLATURE, NOT LAST YEAR BUT THE YEAR BEFORE THERE WAS A BILL THAT PASSED REGARDING 5G.

IT SAID THAT THE 5G COMPANIES HAVE TO DEAL WITH INDIVIDUAL JURISDICTIONS AND COULD PUT THEIR ATTACHMENTS BASICALLY ANYWHERE THEY WANTED TO. THEY ALSO PASSED A FLAT FEE.

>> I AM NOT WELL-VERSED ON WHAT THE STATE PASSED.

I DID GET WIND OF IT BUT I AM NOT FAMILIAR WITH THE DETAILS.

>> BECAUSE ONE OF THE THINGS THAT HAPPENED IS THE STATETE REALLY WANTS 5G TO GET HERE FAST.

I THINK THAT IS THE SAME THING THAT HAPPENED WITH THE CABLE COMPANIES BECAUSE THEY WANTED TO BE ON THE CUTTING EDGE AND THEY WANTED PEOPLE TO HAVE THE SERVICE THEY WANTED.

YOU ALSO HAVE TO COMMUNICATIONS CAP THE 5G PEOPLE WHO ARE HEAVY LOBBYING LEGISLATORS AND THEY WANT TO BYPASS THE LOCAL JURISDICTIONS. I SEE THAT AS A BIGGER THREAT BECAUSE WE WON'T BE ABLE TO HAVE A SAY SO ABOUT WHERE THEY PUT THE GADGETS IF THE STATE LEGISLATOR HAS ANYTHING TO DO WITH IT. I THINK THE CITY IS LOBBYING

AGAINST IT. >> DO YOU KNOW WHAT THEY WERE.

>> I RECALL THE ISSUE BUT I DON'T RECALL THE RESULTS.

YOU MAY WANT TO CHECK ON THAT. >> I THINK STATE LAW PLAYS INTO IT AND WE MAY NOT HAVE ANY KIND OF POWER RIGHT NOW.

NO PUN INTENDED. TO DO ANYTHING ABOUT IT.

>> I DO REMEMBER THAT A COUPLE OF YEARS AGO.

THERE WAS A BIG ISSUE. I THINK THEY DID PASS IT BUT I THINK THEY ARE TRYING TO DEFEAT IT.

>> THEY ARE TRYING TO MASSAGE IT.

>> BUT MY QUESTION IS, WITH THE SMALL CELL TOWERS GETTING SMALLER AND CLOSER TO EARTH. ARE THERE ANY HEALTH CONCERNS WITH THE TRANSMISSION WITH WHATEVER THEY ARE SENDING OUT.

>> I DON'T KNOW IF THERE IS ANY CONSENSUS ON THAT.

I HAVE WATCHED A COUPLE OF TED TALKS WHERE PEOPLE ARE VERY CONVINCED THAT THERE ARE HEALTH CONCERNS.

AND IN ANOTHER TALK THEY SAID THERE ARE NO CONCERNS.

I'M NOT SURE IF THERE IS A CONSENSUS AND I DON'T HAVE THE

EXPERTISE TO SPEAK DEFINITIVELY. >> AT ONE POINT THEY THOUGHT AMI WAS "BIG BROTHER" AND THERE WERE CANCER AGENTS BEING CAUSED BY IT. THE LAST QUESTION IS, ARE YOU SAYING THAT RIGHT NOW PEOPLE CAN JUST ATTACH TO OUR POLLS AT NO COST AT THEIR WILL OR IS THERE A PROCEDURE.

DO THEY HAVE TO CONTACT US TO GET PERMISSION.

WHAT IS THE PROCESS PLEX. >> THE PROCESS IS SUPPOSED TO BE THEY SUBMIT AN APPLICATION AND WE REVIEW WHAT IS ON BOTH POLE.

AND IF WE SAY YES THE POLE CAN'T HANDLE THE ADDITIONAL LOAD THEN WE APPROVE FOR THEM TO ATTACH. IF WE SAY IT CANNOT HANDLE THE ADDITIONAL LOAD THEN WE REQUEST THEY MAKE READY WHICH IS SOMEHOW ADDING ADDITIONAL STRENGTH TO THE POLE.

WHETHER THAT IS ADDING ADDITIONAL BRACING OR GUYS OR REPLACING THE POLE BEFORE THEY% AT THE FACILITY.

IN PRACTICE WHAT IS HAPPENING IS THEY SEEM TO BE DOING WHAT THEY

WANT. >> OKAY.

>> THAT IS WHY WE ASK FOR CITY US AWARE OF ANY PERMITS THAT COME THROUGH FROM THEM.

>> THIS WILL PROBABLY BE AN I WILL BE GOING SO IF I GET ANY INFORMATION I WILL BRING IT BACK.

[00:30:02]

>> I THINK IT IS BEING HANDLED ON THE FEDERAL LEVEL TOO.

>> IT IS INDUSTRYWIDE. THEY ARE PUTTING TOGETHER A PRESENTATION AND I FOUND AN ARTICLE THAT THEY SUED AT&T FOR $20 MILLION FOR UNPAID FEES. SO EVERY UTILITY YOU TALK TO SHARES THIS EXPERIENCE FOR THE MOST PART.

>> DID THEY ALL HAVE DIFFICULTIES WITH COMCAST?

>> COMCAST IS THE WORST. >> THEY SEEM TO BE THE WORST

OFFENDER. >> WHAT ARE WE DOING TOO AFTER PEOPLE WHO OWE US MONEY OR WHAT ARE WE DOING? OR DO YOU HAVE PEOPLE ALL HIS MONEY.

>> LIKE I SAID WE HAVE TWO AGREEMENTS.

ONE WITH COMCAST AND ONE WITH AT&T.

WE WILL BE ABLE TO BRING UP OUR ACCOUNTS AND WHAT WE CHARGE AFTER WE GET THE INVENTORY DONE. WHEN WE SEND A BILL TO COMCAST THEY SEEM TO PAY IT. SO.

>> A BIG COMPANY. >> HAVE YOU EVER HAD THEM ON THE

PHONE? >> LAP TWO.

>> THEY PAY BUT THEY PAY IT AT THEIR OWN RATE.

>> SO THAT IS THE OTHER ISSUE. FPUA WAS LEADING THE CHARGE AND

WE DIDN'T HAVE SUCCESS IN APRIL. >> SO THE LEGAL TEAM TRIED TO REACH OUT. IT SEEMS LIKE THEY DO.

COMCAST DO RAISE THEIR RATES. SO AM WONDERING, WHY AREN'T WE SUING OR DOING SOMETHING LIKE THAT?

>> IN 2015 WE DIDN'T HAVE THE BENEFIT OF HAVING HIM ON STAFF.

SO I HAVE A FEELING THINGS WILL BE DIFFERENT.

>>

>> ONE THING TO POINT OUT, THE LAW WAS BACK THEN AND IN 2019 THEY FILED A LAWSUIT WITH THREE OTHER CITIES AND MUNICIPALITIES CHALLENGING THE LAWSUIT. THAT IS MOVING FORWARD.

AS FAR AS WHAT WE ARE DOING WITH OUR POLE ATTACHMENT AGREEMENTS, IT IS SOMETHING WE NEED TO REVISIT AND GET THEM TO THE TABLE. COMCAST ME BE A CHALLENGE.

>> $3.59. AND YOU RECOMMEND WE GO TO 12 IS BIG. IT IS ALMOST FOUR TIMES.

>> PASSING ON TO US. >> THE OTHER ISSUE IS THEY WILL PASS IT ON TO THE RATE PLAYERS. THEY WILL ADD THE FEE.

>> AND THEY HAVE SOME BIG LOBBYISTS AND ALL THE OTHER

STATE LEGISLATORS TOO. >> SO IF WE CAN'T GET THEM TO PAY WE JUST LET THEM USE THE POLLS AND WE ARE AT THEIR MERCY?

>> KNOW WE NEED TO TAKE ANOTHER LOOK AT THE AGREEMENT.

KIND OF ALL THE WAY THROUGH. WE NEED TO DO AN INVENTORY AUDIT. WHEN THEY FIND MORE POLES AND THEY ARE UNDERPAID, WE CAN USE SOME LEVERAGE TO GET THEM TO THE TABLE. I THINK THE FIRST STEP IS TO SEE WHAT OUR OPTIONS ARE FOR MODIFYING OR EVEN IF THERE IS AN

EXIT CLAUSE WHICH I DOUBT. >> OKAY.

>> AND I DID GIVE HIM SIX DAYS HEADS UP.

>> SO YOU DIDN'T GANGED UP ON HIM.

>> NO PUN INTENDED. CHANCE OF THE FACT THAT HE WAS ABLE TO TALK THAT MUCH ABOUT IT IS IMPRESSIVE.

>>'S LAWYER. >> THANK YOU.

>> OUT OF CURIOSITY DO THESE AGREEMENTS HAVE A SET TERM FOR

WHEN THEY EXPIRE CRACKS. >> I DON'T BELIEVE THEY DO.

WHEN I LAST LOOKED I BELIEVE THEY ARE ACTUAL AND THAT IS FOR OBVIOUS REASONS. IF THEY EXPIRE WE WOULD HAVE TO

FORCE THEM TO TAKE THEM DOWN. >> IT SOUNDS LIKE WE HAVE MORE TEETH WE CAN GO UP THERE AND CUT THE LINE.

>> THAT'S A GOOD WAY TO GET THEIR ATTENTION.

>> >> CLEARLY LOOKING BACK ON THEM AND WHY THEY DON'T HAVE AN ESCALATION CLAUSE, YOU WOULD HAVE THOUGHT WHO WOULD'VE DESIGNED THIS WOULD HAVE HAD A

REVISION CLAUSE. >> WHEN I WAS READING THE

[00:35:07]

AGREEMENT, YOU GIVE THEM A YEAR'S NOTICE AND WE CAN LET THEM KNOW WE ARE GOING TO TERMINATE THE AGREEMENT.

>> BUT TO YOUR POINT IF WE TERMINATE THE AGREEMENT WITH WE DO THIN. ARE WE WILLING TO JUST CUT THEIR

CABLES DOWN? >> YEP.

>> THAT IS ONE POINT TO CUT. >> JUST TO SEND THE MESSAGE.

>> >> ONE PLUS I DID WANT TO MENTION WITH 5G COMING, ONE PART OF THE WHOLE EQUATION THAT IS CONSISTENT, THESE WOULD NEED A BACK HALL.

I THINK THERE'S SOME OPPORTUNITY THERE.

>> THAT'S GOOD. >>

[Item G3]

>> THE NEXT ITEM IS AN UPDATE. PAUL AND JAN WILL MAKE THE

PRESENTATION. >>

>> THANK YOU. WE ARE HAPPY TO PRESENT TO YOU AN UPDATE OF WHERE WE ARE ON AMI.

REMEMBER BACK IN NOVEMBER OF 2019 WE APPROVE THE CONTRACT WITH HONEYWELL FEAR FOR THE DEPLOYMENT OF A SYSTEM IN FORT PIERCE UTILITY SERVICE TERRITORIES.

SINCE THAT TIME IN DECEMBER 2019 WE HAVE MET WITH OUR PARTNERS, HONEYWELL AND OTHERS WHO WILL BE MANAGING OUR SERVICES TO CREATE A MASTER SCHEDULE TO SEE HOW WE WILL DEPLOY THIS TO OUR CUSTOMERS AS WELL AS IN THE ENTIRE SYSTEM.

THIS IS THE FRUITS OF OUR TWO AND HALF DAYS WORTH OF MEETINGS TO COME UP WITH A SCHEDULE. I DON'T EXPECT YOU TO TAKE A TEST ON THIS BUT YOU CAN SEE THERE'S COMPLEXITY REGARDING OUT EVERYTHING NEEDS TO FALL IN LINE TO MAKE SURE THE SYSTEM IS SUCCESSFUL. SOME OF THE THINGS THAT ARE A BIG PART OF THIS IS THE INTEGRATION OF THE COMPUTER SYSTEM. NOT ONLY WITH HONEYWELL, BUT ALSO WITH HONEYWELL SYSTEM AND THEY MANAGING THEIR SYSTEM.

ALSO ONE HEARS MATERIAL DELIVERIES AND TESTING AND SO ON AND SO FORTH. WITH THAT, WE MOVE OVER TO THE FPUA SCHEDULE WHICH IS EASIER TO READ.

WHAT WE ARE DOING INTERNALLY IS MEETING EVERY OTHER WEEK WITH HONEYWELL AND OUR TEAM TO MAKE SURE THEY ARE ON SCHEDULE.

ALSO WE HAVE A MEETING WITH INTERNAL STAFF TO MAKE SURE WE ARE PROCEEDING TO MAKE SURE THIS PROJECT IS SUCCESSFUL.

SOME OF THE THINGS YOU SEE ON THE SCHEDULE IS WORKING AND WAITING ON MATERIAL. WE ARE DOING A LOT OF FIELD INVENTORY. AS WELL AS WORKING WITH THE CITY ON HOW TO HANDLE BASES AS WE CHANGE THE METER AND HOW WE MAKE

A SEAMLESS TRANSITION. >> HERE IS ONE OF THE THINGS WE STARTED DOING. THIS IS OUR FIELD INVENTORY OF OUR REPEATER LOCATIONS FOR OUR ADVANCED AREAS.

AS YOU CAN SEE THE LITTLE PINK CIRCLES ARE HOW FAR OUT A REPEATER WILL GO TO PICK UP METERS.

WHEN WE GET INTO MORE OF THE ELECTRIC TERRITORY WE DON'T HAVE REPEATERS BUT WHEN WE GET INTO WATER AND GAS WE HAVE TO INSTALL THEM. ONE THING WE ARE WORKING TOWARDS IS WORKING WITH FP AND L TO GET POLE ATTACHMENT AGREEMENTS BECAUSE WE HAVE NO POWER OUT THERE.

YOU'RE ALSO LOOKING AT THE POSSIBILITY OF DOING A SOLAR OPTION SIMILAR TO WHAT YOU SEE WHEN YOU ARE DRIVING DOWN THE ROAD TO LET PEOPLE KNOW EITHER YOU NEED TO SLOW DOWN BECAUSE THERE IS A CROSSING FOR KIDS OR OTHER OPTIONS.

TO ELIMINATE THE ATTACHMENT AGREEMENTS.

ALSO THE CUSTOMER AGREEMENTS. >> WE SPOKE A LITTLE BIT ABOUT COMPUTER INTEGRATION. I DON'T EXPECT ANYONE TO BE QUIZZED ON THIS BECAUSE I HAD TO HAVE TOM ABOUT THIS.

[00:40:03]

YOU CAN SEE THE INTEGRATION FOR THE COMPUTER SYSTEM WILL BE VERY COMPLEX. PART OF IT HAS TO DO WITH GOING INTO THE BILLING SYSTEM. OUR WORK ORDER SYSTEM AND WE WILL GET INTO THE SILVER BLAZE WHICH WILL BE HOW CUSTOMERS LOG INTO A PORTAL TO GET INFORMATION OFF OF THE METERS AS WELL AS TO

PAY BILLS. >> SO WHERE WE HAD WITH DELIVERY. WE ARE LOOKING AT GETTING THE GAS MODULES AND WATER MODULES IN MARCH OF THIS YEAR.

AS SOON AS THAT HAPPENS AND THEY SHOW UP WE WILL HIT THE GROUND RUNNING WITH THE INSTALLATION AND CHANGE OUTS.

OUR GATEKEEPERS ARE SCHEDULED TO BE DELIVERED IN APRIL.

AND IN MAY WE EXPECT TO SEE DATA COLLECTION FROM THE SYSTEM.

THEN WE WILL START OUR TESTING. ARE WEAKENING GETTING OUR ALARMS. THE REASON FOR THE DELAY IS BECAUSE WE NEED THE GATEKEEPERS AND THE REPEATERS IN ORDER TO BRING THE DATA BACK. WE ARE LOOKING AT CUSTOMER PORTERS GOING WIDE AND THEY WANT TO DO TRADING AND GET LIVE DATA FROM THE CUSTOMERS AND THE CUSTOMER METERS BEFORE WE DO INTERNAL TRAINING. I DON'T WANT TO STEAL TOM'S THUNDER THIS WILL BE ONE-STOP SHOP.

THEY DON'T HAVE TO REMEMBER MULTIPLE PASSWORDS.

AND THEY CAN DETERMINE IF THEIR USAGES GOING UP IF KIDS LEFT THE

WATER ON AND SO ON AND SO FORTH. >> WHAT ELSE HAVE WE BEEN DOING.

JOHN HAS COME IN AND TOLD US A LOT ABOUT PARADIGM SHIFTS.

LOOKING OUTSIDE OF THE BOX AND LOOKING AT A WAY TO CHANGE THINGS. WE HAVE BEEN PASSING THAT ON TO OUR CUSTOMERS. WE KNOW THE QUESTION WILL COME UP. OUR CUSTOMERS WILL ASK THE QUESTION SO THE BEST WAY TO MAKE SURE THEY ARE INFORMED IS TELL THE EMPLOYEES AND TELL THEM THE BENEFITS OF THE CUSTOMER.

WE ARE ALSO LOOKING AT REVIEWING PROCESSES.

HOW CAN WE USE THIS TECHNOLOGY TO IMPROVE OUR EFFICIENCY AND THE POSSIBILITY OF SHIFTING SOME RESPONSIBILITY OF WHAT WE DO

WITH JOB CHANGES. >> THE OTHER THINK WE WILL BE TALKING ABOUT IS TRAINING. THERE WILL BE A WHOLE LOT NEW DATA. WE WILL HAVE TO TRAIN EMPLOYEES TO LOOK AT THE DATA TO COMMUNICATE IT EFFICIENTLY TO CUSTOMERS IN A WAY CUSTOMERS CAN UNDERSTAND.

THE OTHER THING THIS WILL HELP IS EVERY SINGLE METER AND LOCATION WE HAVE IN OUR SYSTEM WILL BE VISITED BY EMPLOYEES.

HOW CAN WE MAKE SURE THAT THE SITE IS SAFE.

ARE THERE LEAKS, ARE THE METERS GETTING HOT.

WE WANT TO MAKE SURE WE IMPROVE THE CUSTOMER EXPERIENCE.

THAT IS WHY WE ARE WORKING WITH THE CITY.

>> WITH THAT I WILL TURN IT OVER TO JAN TO TALK ABOUT MARKETING.

>> GOOD AFTERNOON. MARKETING MATERIALS.

MARKETING WILL BE VERY IMPORTANT.

I EXPECT TO HAVE ALL OF THE MATERIALS COMPLETED BY FEBRUARY 14 BECAUSE IF THE INSTALLS ARE READY TO GO IN LATE TWO MID MARCH, WE NEED TO LET PEOPLE KNOW.

WE ARE SCHEDULING PRESS RELEASES AND MAYBE SOME ARTICLES AND NEWSPAPER ARTICLES AND ADS. SO MAINSTREET HAS OFFERED TO HAVE SOME SPACE FOR US TOO. OUR MARKETING WILL FOCUS ON THE BENEFITS OF THE UPGRADE AND EVERY LOCATION WILL BE VISITED.

SAFETY IS ONE THING. SO THEY WILL BENEFIT FROM THAT.

EVERYONE WILL BE ABLE TO DO REMOTE TURN ON ZEN OFF.

DECREASE RESPONSE TIME TO FLUCTUATIONS.

THINGS LIKE THAT. AND THE TAMPERING ISSUE.

THIS SYSTEM WILL ALERT US TO ANY PROBLEMS.

>> BENEFITS TO CUSTOMERS AND THEIR ABILITY TO MONITOR USAGE.

[00:45:04]

PROJECT TO THEIR BILLS CAN'T CONTROL THEIR USAGE, AND THEY CAN CONSERVE ENERGY AND SAVE MONEY.

>> AND THE PR SCHEDULE. IT WILL BEGIN MID TO LATE MARCH SCOTT 30 DAYS BEFORE WE WILL START WITH THE PRESS RELEASES.

WE WILL HAVE VIDEOS AND SOCIAL MEDIA POST.

THERE WILL BE A PAGE ON THE WEBSITE.

WE ALREADY HAVE A DEDICATED PHONE NUMBER AND AN E-MAIL ADDRESS. CUSTOMERS WILL BE ABLE TO COMMUNICATE. THAT WILL ALLOW US TIME TO TRAIN THE CUSTOMER SERVICE REPRESENTATIVE AND ANSWER THE QUESTIONS. CUSTOMER NOTIFICATION, WE DECIDED AGAINST A BILLS SUFFER BECAUSE IF THIS IS A FIVE-YEAR PROJECT AND WE PUT OUT INFORMATION AND IT IS FIVE YEARS DOWN THE ROAD BEFORE YOU GET YOUR METER CHANGE YOU MAY FORGET OR WHATEVER. SO WE ARE GOING TO SEND LETTERS TO THOSE AREAS WHERE THE METERS WILL BE REPLACED.

THAT WILL HAPPEN IN TWO OR THREE WEEKS.

DOOR ANGERS AND WE WILL MENTION ALL OF THE METERS.

DEFINITELY FOR ELECTRIC BECAUSE THERE WILL BE A SHORT INTERRUPTION. PAMPHLETS WILL BE AVAILABLE.

THE BACK WILL ALSO HAVE SOME FREQUENTLY ASKED QUESTIONS.

AND THE ANSWERS TO FREQUENTLY ASKED QUESTIONS.

THEN WE WILL PREPARE FOR COMMUNITY OUTREACH.

WE CAN TALK TO THEM IN PERSON. IF THEY WOULD LIKE TO.

>> DO WE HAVE ANY QUESTIONS? >> MADAM CHAIR, MY CONCERN WOULD BE TO TAKE NUMBER EIGHT AND MOVE IT TO ANOTHER LEVEL.

ONE LEVEL YOU CAN MOVE IT TO IS COMMUNITY OUTREACH.

I WOULD LIKE TO SEE IT DONE LIKE A TOWN HALL TYPE MEETING WHERE YOU REALLY BRING A GROUP OF PEOPLE OUT.

AND YOU WOULD BE SURPRISED THE QUESTION AND FEEDBACK YOU GET.

WE ALSO HAVE PROGRAMS WITH RADIO STATIONS IN THE COMMUNITY.

WE NEED TO UTILIZE EVERYTHING WE CAN UTILIZE FOR THINGS LIKE

THIS. >> WE ALSO NEED TO PUT OUT A COMMUNITY NEWSLETTER THAT WOULD BE FOR OTHER CHURCHES SO THEY

CAN READ THE ANNOUNCEMENTS. >> WE DO PLAN TO USE RADIO ADVERTISEMENTS. THERE WERE SOME THINGS THAT ALLOWED US TO HAVE SOME ADVERTISING.

WE WILL GIVE UPDATES AND DIFFERENT THINGS FOR THOSE

SPOTS. >> IF I CAN ADD TO THAT IT IS MORE THAN DOING THE PRESENTATION.

WE PLAN ON DOING SOME TOWN HALL TYPE MEETINGS AND WE PLAN TO GET COMMUNITIES INTO THE ORGANIZATIONS.

THIS TECHNOLOGY WILL PROVIDE.AT- SHOW THEM HOW TO LOG INTO THEIR ACCOUNT AND VIEWED THEIR PORTALS.

HOW TO UTILIZE SOME OF THE INFORMATION.

WHEN THEY CALL INTO SAKE WHY IS MY BILL SO HIGH INSTEAD OF CALLING AND MAYBE THEY CAN LOOK ON THEIR SMART PHONE AND SAY, YOU KNOW WHAT THE TEMPERATURES WERE WARMER LAST MONTH THAN THEY WERE LAST MONTH. I REMEMBER MY AIR CONDITIONING RUNNING MORE. MAYBE I CAN UTILIZE THIS TECHNOLOGY TO LOWER MY UTILITY BILL.

SO THOSE ARE IN THE WORKS. WE DON'T HAVE THE OUTLINE BUT THAT IS SOMETHING WE ARE PLANNING ON DOING IN THE FUTURE.

RIGHT NOW WE ARE LOOKING AT NOT DOING IT UNTIL WE GET DATA UNTIL THEN WE WILL HAVE A PRESENTATION WHEN WE GO LIVE.

[00:50:04]

>> WHEN WE HAD THE SITUATION WITH THE GAS ONE OF THE THINGS THEY NEEDED WAS AN UP-TO-DATE NUMBER.

ARE YOU GOING TO VISIT EVERY CUSTOMER OR WILL SOMEONE ELSE TO

THAT? >> WE WILL VISIT EVERY LOCATION AND LEAVE A DOOR HANGER. IF A CUSTOMER'S OUT THERE WE WILL BE MORE THAN HAPPY TO ANSWER QUESTIONS.

AND LEAVE A DOOR HANGER WITH FREQUENTLY ASKED QUESTIONS.

WITH E-MAIL ADDRESSES AND PHONE ADDRESSES.

I THINK THIS IS WHERE YOU WILL BE ABLE TO GET MORE PEOPLE TO THE WEBSITE TO UPDATE THEIR CUSTOMER INFORMATION.

>> EVENTUALLY WHEN I WOULD LIKE TO SEE IS THE METERS CAN TELL YOU WHEN THE POWERS OUT. I WOULD LOVE FOR US TO TEXT OR E-MAIL A CUSTOMER AND SAY, THANK YOU FOR YOUR CONCERN WE KNOW THE POWERS OUT AND WE ARE WORKING ON CORRECTING IT RIGHT NOW.

WE CAN ELIMINATE THE CALLS WE GET WHEN WE HAVE A LARGE OUTAGE.

>> EXACTLY. >> AN OPPORTUNITY TO KEEP YOUR RECORDS UP TO DATE. I NOTE THAT CHANGES ALL OF THE TIME. IF YOU DON'T HAVE AN EMERGENCY, YOU DON'T KNOW THE CUSTOMERS NUMBERS OUT OF DATE.

THIS IS AN OPPORTUNITY. >> HALF WE THOUGHT ABOUT WHAT IMPACT THIS WILL HAVE ON OUR STAFF IN TERMS OF WHEN WE NEED METER READERS. I KNOW THIS IS DOWN THE ROAD BUT HAVE WE THOUGHT ABOUT THE IMPACTS AND THAT SORT OF THING.

>> WE HAVE AND SINCE THIS IS A FIVE YEAR DEPLOYMENT WHEN WE GET TO THE POINT WHERE WE SEE LESS NEED FOR METER READER WE WILL CLASSIFY THEM TO BE CUSTOMER SERVICE.

THEY WILL BE THE ONES WHO RECEIVE THE DAILY REPORTS AND TAKE THE REPORTS AND LOOK AT THEM AND SAY IS THIS REALLY AN ISSUE. DO I NEED TO GO OUT THERE.

HOW CAN I GET IN FRONT OF THE CUSTOMERS AND SAY THIS.

WE ARE SEEING LOW FLOWS ON THE WATER SIDE.

YOU MAY HAVE A TOILET LEAKING OR BAD PUMMELING.

TO GET IN FRONT OF THAT. THAT IS OUR PLAN.

IN ADDITION THERE WILL BE MORE COMMUNICATION TECHNOLOGY.

MORE WIRELESS STUFF. THE POSSIBILITY OF FINDING THE RIGHT FIT WITH OUR CURRENT EMPLOYEES OF WHO WOULD LIKE TO TRANSITION INTO THOSE POSITIONS. WE WILL GET STARTED WITHIN THE NEXT FOUR WEEKS DOING TRAINING TO CHANGE OUT ELECTRIC METERS AND WHAT WE ARE LOOKING FOR. WHEN WE NEED TO CHANGE OUT THE METER BECAUSE IT HAS THE POTENTIAL OF A SAFETY HAZARD.

THOSE ARE THE THINGS WE WILL BE DOING IN THE NEXT FOUR WEEKS.

WE WILL DO A LOT OF CROSSTRAINING.

RIGHT NOW THE ENTIRE PRESENTATION IS TO SAY REGARDLESS OF RIGHT NOW WE WILL NOT RELEASE ANY EMPLOYEES

BECAUSE OF THE SITUATION. >> THANK YOU.

>> THAT IT. >> THANK YOU.

>> THE NEXT ITEM IS A PRESENTATION THAT TOM MADE TO

[Item G4]

THE STAFF LAST WEEK ON CYBERSECURITY RELATED TO FISHING. I THINK THE BOARD WILL FIND THIS INTERESTING FROM AN FPUA STANDPOINT AND A PERSONAL STANDPOINT FOR PROTECTING YOUR OWN EQUIPMENT.

>> THANK YOU. THANK YOU EVERYONE MEMBERS OF THE BOARD. THIS IS A CYBERSECURITY CONCEPT.

IT IS A VERY BROAD TERM. WHEN YOU SAY CYBERSECURITY I WILL BE TALKING ABOUT A SMALL SLIVER.

THE SMALL SLIVER IS A MAJOR IMPACT IN TWO DIFFERENT COMPANIES OUT THERE AND A COUPLE OF SLIDES AND YOU WILL SEE WHAT, I MEAN, BY THAT. BEFORE I GET GOING.

THIS IS NOT ONLY FOR FPUA AND HOW WE HANDLE INTERNAL E-MAILS BUT HOW CUSTOMERS CAN PROTECT THEMSELVES.

IT IS CHANGING CONSTANTLY. THESE PEOPLE ARE THE HACKERS TRYING TO GET INTO YOUR SYSTEM AND THEY ARE SMART.

THEY ARE ALWAYS TRYING TO CHANGE THEIR METHODS.

LET'S GET INTO A FEW DIFFERENT TERMINOLOGIES.

YOU WILL HEAR ME, ESPECIALLY IF YOU'VE SPOKEN MEET ON THE PHONE YOU HEAR ME SAY MALWARE. IT IS AN ABBREVIATION OF A

[00:55:03]

MALICIOUS SOFTWARE. AN APPLICATION RUNNING ON THE COMPUTER. IT WILL GO INTO THE COMPUTER STILL INFORMATION CAUSE DAMAGE. DEPENDING ON THE LEVEL, IT COULD HOLD YOUR COMPUTER HOSTAGE. FISHING IS A SLIGHTLY DIFFERENT ANIMAL TO THE MALWARE. UNLIKE THE SOFTWARE IT IS A SOFTWARE BEING DELIVERED TO A PERSON THROUGH A PHONE MESSAGE OR TEXT MESSAGE OR IN OUR CASE E-MAILS.

THEY ARE TRYING TO GET INTO THE SYSTEM AND HAVE THE PERSON PROVIDE INFORMATION ABOUT THEMSELVES AND GET AN IDEA ON HOW THEY CAN GRAB OR STEAL MONEY DATA OR TECHNOLOGY.

ONE OF THE WORST ONES OUT THERE CAUGHT YOU HAVE HEARD THE NEWS IS RENT SOMEWHERE. THIS IS A MALICIOUS SOFTWARE IT IS DESIGNED TO TAKE OVER A SYSTEM.

THERE'S TWO TYPES OUT THERE BUT A LOT ARE THERE TO ENCRYPT THE FILES AND THEN THEY ASK IF YOU WANT YOUR FILES BACK OR YOUR SYSTEM BACK BUT THEN YOU HAVE TO PAY MONEY.

SO IT SPREADS THROUGH E-MAILS BUT THAT IS NOT THE ONLY METHOD.

BUT A HIGH PROBABILITY IS THROUGH E-MAILS.

THE REASON WHY IS THEY ARE HOPING TO HAVE SOMEONE READ THE E-MAIL QUICKLY, QUICK CLICK CLICK CLICK ON THE LINK AND DOWNLOAD THE MALICIOUS SOFTWARE AND INFECT THE SYSTEM.

>>> SO LAST YEAR AT THE END OF MAY WE DID A BASELINE TESTING OF OUR OWN STAFF. WE SENT A MESSAGE WHERE IT SAYS IT SERVICES. USUALLY IF WE SEND A MESSAGE WE SAY ITS. SO THAT SHOULD HAVE BEEN ONE OF THE FLAGS OUR STAFF REALIZE. AND THE PASSWORD CHECK REQUIRED IMMEDIATELY. IT SAYS TO ALL EMPLOYEES AND IT GIVES THIS LITTLE COMPLIANCE REGULATORY COMPLIANCE PLEASE CHECK YOUR PASSWORD. ALL OF THE E-MAILS WENT OUT TO 65, WE HAD 61 CLICK ON THE LINK AND WENT TO THE WEBSITE.

OUT OF THE 61 WE HAD 11 PEOPLE PROVIDE A PASSWORD.

ONE OF THE THINGS HE WOULD SAY PROVIDE YOUR OLD PASSWORD AND A NEW ONE. WE HAD 11 PEOPLE DO THAT.

>> WE DID SOME TRAINING AND CAME BACK AT THE BEGINNING OF THE YEAR END SAID HAPPY NEW YEAR'S TO EVERYONE AND WE DID A TEST TO THE STAFF AGAIN AND IT WAS UNKNOWN TO ME THEY WERE DOING IT SO I WAS ALSO TESTED. WE DID VERY GOOD.

WE WENT FROM 61 PEOPLE DOWN TO THREE PEOPLE.

WE HAD ONLY ONE PERSON THAT CLICKED ON THE LINK.

ONE PERSON OPEN THE ATTACHMENT AND WON ACTUALLY RESPONDED TO AN E-MAIL AND THE RESPONSE WAS MORE OF IS THIS REAL OR DID YOU SEND THIS E-MAIL. THERE WERE A LOT OF QUESTIONS BUT THE BIGGEST THING, UNLIKE THE FIRST ONE WHERE WAS THE SAME E-MAIL, THIS ONE WAS UNIQUE. THERE WERE PROBABLY SEVEN OR EIGHT THAT WERE DUPLICATES. EACH PERSON ON A DIFFERENT ONE SO THEY COULDN'T SIMPLY SAY THIS IS ITS AGAIN TESTING US TO CHECK THE FISHING. WE ALSO DIDN'T DO IT IN THE SAME DAY. WE SPRINTED ACROSS A WEEK.

WE HAD EVERYONE WHETHER THEY WERE MANAGERS, DIRECTORS OR WHATEVER. AND ONLY THREE PEOPLE DID IT AND

THAT IS SAYING A LOT. >> THE REASON WE ARE CONCERNED IS THE RISK. LOOK AT THE STATISTICS IN 2019.

VICTIMS FALL EVERY 14 SECTIONS. A LOT OF BUSINESSES OUT THERE.

NOT JUST GOVERNMENT WERE TALKING ABOUT LOCAL AND MOM-AND-POP'S AND BIGGER ONES. THE ONES THAT ARE BIG USUALLY MAKE IT TO THE NEWS. I DON'T WANT TO BE IN THE NEWS EXPLAINING WHY FPUA GOT HIT WITH MALWARE.

99% OF THE PEOPLE THAT GET IT IS READING IT, OPENING IT AND CLICKING ON THE LINKS AND SOMETIMES THEY JUST DON'T LEARN AND THEY REPEAT IT. THERE ARE COMPANIES THROUGHOUT FLORIDA WHERE SOMEONE DID IT THREE OR FOUR TIMES.

I KNOW A COMPANY WHERE THE OWNER EVEN AFTER BEING TOLD THEY STILL DID IT. SO WE GO THROUGH THE PROCESS OF TRAINING. I DON'T MEAN TO THROW YOU UNDER THE BUS BUT A RANSOM WARE THAT WAS ALMOST $600,000.

THE CITY OF OCALA. THIS IS AN INTERESTING ONE BECAUSE THEY SENT THE MESSAGE AND ACTING AS A CONTRACTOR AND SIMPLY SAID YOU OWE US THIS MONEY AND THEY SENT $750,000 TO

[01:00:07]

THE COMPANY BEFORE IT WAS REALIZED IT WAS A MISTAKE.

>> EVEN CLOSER, WE HAVE HAD THE SAME AT THE SHERIFF'S DEPARTMENT. WE ALSO HAVE LAKE CITY THAT GOT HIT WITH SOMETHING SIMILAR AND THEY PAINT.

THEY PAID OVER $500,000. THIS HAPPENS.

THAT IS THE REASON WHY THEY DO IT.

THEY WANT TO BE PAID. IT IS EIGHT MONEY SCHEME.

A WAY TO GET AHEAD. SIX CHILDREN DOLLARS.

THAT'S A LOT OF MONEY. WE ARE NOT UNIQUE.

DIFFERENT AREAS GET HIT. I DON'T WANT TO BE THE ONE THAT COMES IN AND SAY WE GOT HIT AND SORRY.

>> AND TRIED TO EXPLAIN WHAT COULD'VE BEEN DONE.

>> AGAIN RAN SOMEWHERE IS FOCUSED ON DIFFERENT TARGETS.

SOME OF THESE MAY BE CUSTOMERS. THEY'RE ALSO LOOKING AT THE BIGGER PLAYERS OUT THERE SUCH AS YOUR HOSPITALS, YOUR GOVERNMENT.

THEY THINK THEY HAVE MONEY TO PAY IT.

AND THEY ARE SITTING THERE. >> AGAIN IT IS ONE OF THE QUESTIONS KUDZU COMPANIES DO IT OR DON'T DO IT.

IT IS BASICALLY LOOKING AT WHERE YOU ARE AT.

A LOT OF COMPANIES PAY BECAUSE THEY DON'T HAVE GOOD BACKUPS THEY DON'T HAVE GOOD SYSTEMS. THERE'S A LOT OF UNFORTUNATE THINGS. WE ARE A UTILITY COMPANY.

WE ARE A MAJOR TARGET. SO ONE THING WE TRY TO TRAIN IS LOOK AT THE E-MAIL. IS THE ADDRESS CORRECT.

ARE THEY ASKING YOU TO CLICK ON A LINK THAT HAS A QUESTIONABLE NAME OF A COMPANY OR QUESTIONABLE DOMAIN.

PAYPAL, YOU EXPECT PAYPAL.COM. IF IT IS A MESSAGE FROM OUR OWN SENDERS WE WOULD HAVE A RECOGNIZABLE NAME.

OR INFORMATION THAT COULD SAY IS THIS REAL OR FAKE.

A LOT OF THE ONES OUT THERE COMING FROM OTHER COUNTRIES USUALLY HAVE MISSED TELLING. AGAIN, LOOKING FOR BAD GRAMMAR OR TERMINOLOGY. SOME E-MAILS ARE TOO GOOD TO BE TRUE. WAITING OUT THE HAND TO SAY IF YOU HELP ME HIDE THIS MONEY. HOPEFULLY NO E-MAIL WE WILL CLICK ON IN OUR SYSTEM. AGAIN, WHERE THIS HAS BEEN INITIATED. HOPEFULLY WE CAN GET AN UNDERSTANDING. IN SHORT, YOU JUST HAVE TO SAY IS IT SUSPICIOUS. DOES IT LOOK SUSPICIOUS.

DOES IT LOOK OUT OF PLACE. IF IT DOES YOU MAY BE GETTING FISH. WE ARE EDUCATING OUR STAFF NOT

TO BE FISHED ON. >> AGAIN A LOT OF THESE FISHING PEOPLE ARE LOOKING FOR PASSWORD SCOTT BANK INFORMATION CARD CREDIT CARD INFORMATION, ANYTHING TO MAKE MONEY OFF OF YOU. AND OUR STAFF IS SMART ENOUGH, THEY LOOKED AT THE E-MAILS AND SAID WAIT A MINUTE THAT IS

QUESTIONABLE. >> A LOT OF THESE E-MAILS ARE LOOKING TO BE URGENT. HOPEFULLY HOPING THAT SOMEONE WILL RUSH TO MAKE SOMEONE HAPPY AND WE ALSO GET E-MAILS TO PAY A VENDOR. WE HAVE HAD THOSE WHERE THEY HAVE COME IN. WHY WOULD THEY SEND US AN

E-MAIL. >> WE ACTUALLY GET THEM.

WE HAVE ALSO GOTTEN E-MAILS WHERE IT IS LIKE PLEASE CHANGE MY BANK ACCOUNT NUMBER AND THEY COME IN.

IT IS HARD TO STOP THESE E-MAILS WITHOUT BLOCKING THE GOOD E-MAILS. THAT IS OUR PROBLEM.

>> I'M GLAD I'M NOT THE ONLY ONE THANK YOU.

>> IT IS IRONIC. WE JUST HAD A DISCUSSION ON THIS. WE HAD A TEST AND THIS CAME IN TO MY STAFF. AND HE GETS AN E-MAIL FROM THE

[01:05:08]

CHAMBER OF COMMERCE. THAT TELLS YOU SOMEONE WAS MONITORING IT. AND THEY SAID PLEASE REVIEW THE ATTACHED PURCHASE ORDER. TRYING TO GET HIM TO CLICK ON IT. IT WAS A FAKE E-MAIL.

EVERYTHING WAS CORRECT EXCEPT THE ATTACHMENT.

>> THIS ONE CAME IN JANUARY 27 GOT SAME CONCEPT.

A COMPANY WE DO BUSINESS WITH. THEY LOOKED AT IT WAS QUESTIONABLE. SOMETHING WASN'T RIGHT.

AND I SAID LET ME SEND IT TO ITS AN EVERYTHING LOOKS CORRECT EVERYTHING WAS FINE BUT WHEN WE REACHED OUT TO THEIR AND SAID THIS IS QUESTIONABLE THEY SAID YES WE GOT HACKED.

IT WAS ON THEIR MACHINE. THAT IS ONE OF THE THINGS YOU HAVE TO LOOK AT. THESE COULD COME FROM REAL CUSTOMERS GOT REAL VENDORS AND REAL PARTNERS.

AGAIN THEY MAKE YOU LOOK AT IT AND SAY IT MIGHT BE LEGIT.

THAT IS HOW BAD THE SYSTEMS HAVE GOTTEN.

GOING BACK TO HAPPY NEW YEAR E-MAILS.

WE HAD OURS LOOK REALLY REAL. HR EVEN QUESTIONED IT BECAUSE THE E-MAIL SAID THESE ARE FROM HR.

SO PEOPLE WERE LIKE OKAY. BUT A LOT OF THEM STEPPED BACK AND SAID EVEN THOUGH THIS IS FROM HR IT DOESN'T LOOK RIGHT.

SO WE DO A LOT OF PROTECTION ON THIS.

WE DO IT THROUGH MULTILAYERS. THE FIRST PART IS THE FIREWALL.

IT IS LOOKING AT ANYTHIG THAT COMES IN.

WE TRIED TO SCAN ANY ATTACHMENTS.

BUT SOME ARE ACTUALLY GOOD WHERE THEY ENCRYPT THEM AND PUT A PASSWORD AND SAY HERE IS A PASSWORD AND YOU NEED TO OPEN THE ATTACHMENT. THEY ARE TRYING TO GET YOU TO SCAN AN ENCRYPTED FILE. WE HAVE E-MAIL SECURITY.

IT GOES THROUGH AND FILTERS THE E-MAILS.

LAST MONTH WE HAD OVER 2,000 E-MAILS KICKED OUT.

ONLY 1,000 CAME IN. THAT IS OVER 3,000 THAT WE GET INTO OUR SYSTEM AND A 30 DAY SPAN.

WE HAVE HAD MONTHS WHERE IT HAS BEEN AS HIGH AS 60,000.

AGAIN IT DEPENDS ON THE TIME OF THE YEAR END MONTH.

WE BASICALLY LOOK AT THIS AND HAVE IT KICKED OUT.

IF IT GETS PAST THE FIREWALL AND E-MAIL SECURITY CUP WE ARE HOPING THE ANTI- MALWARE WILL DETECT THE MALICIOUS SOFTWARE

AND STOP IT. >> WE HAVE ACTUALLY HAD ONE THAT GOT THROUGH AND THIS WAS BACK IN 2014.

AND ONE DIDN'T CATCH IT BUT ANOTHER ONE DID.

WE HAVE TO DO THIS IN LAYERS. WE DO CONTINUOUS UPDATES AND PATCHES. I KNOW A LOT OF PEOPLE THINK IT IS TUESDAY AGAIN THIS THURSDAY AGAIN AND WE ARE KICKING PEOPLE OUT OF THE SYSTEM. WE HAVE TO.

THE SOFTWARE CHANGES AND THE HOLES ARE OUT THERE.

WE HAD ONE WHERE IT WAS OUTSIDE OF OUR NORMAL TIME.

IT WAS A POSSIBILITY OF SOMEONE UTILIZING IT TO GET INTO OUR SYSTEM. WE ARE CONSTANTLY MONITORING AND LOOKING AT IT. WE REVIEW BEST PRACTICES.

WE WORK WITH OUR PARTNERS. WE WORK WITH OTHER PARTNERS TO HELP US GET TO THE MALL WHERE WE NEED TO BE CONCERNED WITH.

WE WORK WITH OTHER ENTITIES AND TALK ABOUT HOW TO SOLVE THIS IN WHAT WE CAN DO. WE LOOK AT THE BEST PRACTICES.

BAD ACTORS ARE CONSTANTLY LEARNING FROM THEIR MISTAKES.

LEARNING WHAT WORKS AND WHAT DOESN'T WORK AND THEY REWRAP IT UP AND SEND IT BACK OUT. WE ARE TRYING TO CATCH THAT.

>> ONE OF THE OTHER THINGS WE ARE STARTING TO ROLLOUT IS BASICALLY THIS FISHING ALERT BUTTON.

IF SOMEONE GETS AN E-MAIL THAT IS QUESTIONABLE WE MAY BE TESTING THEM. WE WILL CONTINUE TO TEST ALL OF THE TIME. IF THEY GET THE E-MAIL THERE'S NOT MUCH THEY CAN DO JUST QUICKLY CLICK ON HERE AND IT WILL SAY CONGRATULATION PAST OR WERE NOT SURE WHAT THIS IS AND WE WILL SCAN IT FOR YOU AND ANALYZE IT AND GET BACK TO YOU.

>>> SO ONE OF THE BEST THINGS I TELL PEOPLE IS BEFORE YOU

[01:10:03]

ACTUALLY START LOOKING AT THE E-MAILS AND CLICKING STOP.

LOOK AT IT. INC. ABOUT WHAT IS ON THE E-MAIL. DOES IT LOOK) BEFORE YOU CONNECT THROUGH THE LINK OR OPEN THE ATTACHMENT, IS IT CORRECT.

LOOK AT THE THUMB ADDRESS. DO YOU HAVE CORRECT INFORMATION.

DON'T CLICK UNLESS YOU ARE CERTAIN THE E-MAIL IS CORRECT

AND YOU TRUST THE COMPANY. >>> IN THE SIMPLEST WAY, WHEN IN DOUBT THROW IT OUT. IT IS BASICALLY A CASE UP IF IT -- IF IT DOESN'T LOOK RIGHT IS BETTER TO BE SAFE THAN SORRY.

>> THIS IS THE IRS THE SHERIFFS ARE -- DEPARTMENT WON'T KNOCK ON YOUR DOOR. THE IRS WILL NOT SEND YOU AN E-MAIL. THEY WON'T DO THAT UNLESS THEY KNOW YOU PERSONALLY. JUST TOSS IT OUT.

>> AT THIS POINT, I AM OPEN FOR ANY QUESTIONS.

I WILL BE GLAD TO ANSWER THEM. >> YES, SIR.

>> HOW OFTEN SHOULD YOU RECOMMEND PASSWORDS TO BE

CHANGED? >> THAT IS A GOOD QUESTION.

THERE IS BEEN DIFFERENT QUESTIONS ON THAT.

SOME SAY EVERY 30 DAYS. SOMETHING EVERY 90 DAYS.

THE NATIONAL INSTITUTION OF SECURITY ACTUALLY SAYS DON'T CHANGE THEM EVERY DAY. DON'T CHANGE THEM EVERY MONTH OR SIX MONTHS. GO FOR A YEAR OR TWO UNLESS YOU THINK IT HAS BEEN COMPROMISED. WE HAVE A MINIMUM.

PART OF THAT PASSWORD CHANGES THEY ARE GETTING AWAY FROM SIMPLE PASSWORDS. USE PHRASES.

THE REASON WHY IS WHAT'S HAPPENING PEOPLE WERE FORGETTING THEIR PASSWORDS AND WHAT DO THEY DO, THEY SAY CHANGE PASSWORD THE NEXT THING YOU KNOW IF IT COMES IN AS AN E-MAIL OR TEXT, SOMEONE CONCEDE THE PASSWORD YOU WERE USING AND USE IT AGAINST YOU.

SOMETHING EASY TO REMEMBER BUT MEETS THE REQUIREMENTS.

SO GREEN EGGS AND HAM! OR TWO GREEN EGGS AND HAM DEPENDING ON WHAT YOU NEED TO GET PAST THE SECURITY

REQUIREMENTS. >> SO WHEN, AN EMPLOYEE DOES GET A SUSPICIOUS E-MAIL, ARE YOU ASKING THEM TO SEND IT TO YOU.

>> NO. WE ARE ACTUALLY NOT TELLING THEM TO PRESS THE BUTTON. IT WILL COME TO OUR HELPDESK AND WE CAN ANALYZE IT. I MAY BE IN A MEETING WE MAY THINK IT'S BAD AND WE HAVE WATCHED PEOPLE PULLED THE MEAT

THE -- THE E-MAILS BACK. >>

[Item I]

>> THE ADOPTION OF RESOLUTION NUMBER USA 2020 -- ZERO ONE PNC BANK MASTER RESOLUTION AND AUTHORIZATION OF DEPOSITORY ACCOUNTS AND TRANSITORY MANAGEMENT SERVICES.

>> THANK YOU EVERYONE. IT IS MY PLEASURE TO WALK THROUGH THIS HOUSEKEEPING ITEM. AS A RESULT OF MY IMPENDING RETIREMENT, SIGNATURES NEED TO BE CHANGED FOR ALL OF THE BANKS.

THIS IS NOT A SIMPLE PROCESS. THIS IS REALLY JUST PHASE ONE OF A NUMBER OF CHANGES THAT WE ARE MAKING AND I WANT TO WALK THROUGH THEM WITH YOU HERE TODAY.

YOU WILL SEE ME BACK HERE AND I THINK THERE WILL BE OTHER RESOLUTIONS THAT THE BOARD WILL EITHER HAVE TO CREATE INITIALLY

OR UPDATE FROM PREVIOUS TIMES. >> THE GOOD NEWS IS WE DON'T HAVE OUR FUNDS INVESTED. WE ARE ALSO LOOKING TO BEGIN RELATIONSHIPS WITH OTHER BANKS HERE IN LOOKING AT THE RATE OF RETURN I WANNACRY. IT IS SO PATHETIC.

THE REASON FOR THAT IS THE VERY CONSERVATIVE RESOLUTION THAT WE

[01:15:03]

ABIDE BY. ALL OF THE HOW WELL OR POORLY THEY PERFORM ARE ALL BASED ON THE STATE BOARD OF ADMINISTRATION PRIME ACCOUNTS. ALL OF THE OTHER BANKS OR THE OTHER BANKS ALL OF THE DEPOSITORIES BASICALLY THEY HAVE TWO COLLATERALIZED THE FUNDS THAT WE HAVE IN THEIR BANK.

>> THEY WANT TO ASSURE THEY RETURN THE MONEY.

BUT THE STATE BOARD OF ADMINISTRATION IS A SLIGHTLY HIGHER PAIN INVESTMENT THAT WE HAVE WHAT PROBABLY IN 2008, THE STATE BOARD OF ADMINISTRATION HAD A PROBLEM WITH THIS INVESTMENT. WHAT THEY DID AT THAT TIME IS THEY TOOK THE GOOD INVESTMENTS AND THEY PUT THEM IN ONE ACCOUNT AND THEY TOOK THE OTHER INVESTMENTS THAT WERE NOT SO GOOD AND PUT THEM INTO ANOTHER ACCOUNT.

THE MONEY THAT WENT INTO THE OTHER ACCOUNT, IF YOU HAD TO GET THAT MONEY OUT YOU WOULD PAY DEARLY TO GET IT OUT.

YOU DID NOT NEED IT YOU LET IT SIT THERE.

IT SAT THERE EARNING NO INTEREST UNTIL 2014, AT WHICH POINT, WELL DURING THAT WHOLE TIME, WE GOT A LITTLE BIT OF A PRINCIPAL EVERY MONTH. AS THEY GOT OUT OF THE BAD

INVESTMENTS. >> IN SPITE OF WHAT HE MAY HAVE TOLD YOU, THE MONEY IS NOT IN THE CORNER OF MY OFFICE.

THEY ARE INVESTED IN THESE BANKS.

AND THEY ARE VERY SAFE, JUST NOT EARNING A LOT OF MONEY.

WE HAD TO MAKE CONTACT WITH ALL OF THE BANKS ANYWAY.

I REACHED OUT TO BANKS THAT HAD BRANCHES WITH ONE POSSIBLE EXCEPTION DOWN IN STUART. AND WE WERE QUITE ACCOMMODATING.

BUT WE HAVE OPENED A CERTIFICATE OF DEPOSIT WITH THEM.

THE RATES FOR THE CDS WE ARE IN THE PROCESS OF CREATING OR ADDING TO, THE INTEREST RATES RANGE FROM ONE POINT FOR ONE% AND 1.5%. IT'S NOT MUCH BUT IT IS BETTER THAN, THERE WERE FIVE BANKS, THREE OF WHICH QUOTED LESS THAN 1%. LESS THAN HALF% ACTUALLY.

AND TO THAT BASICALLY COULDN'T BE BOTHERED WITH THE SPIRIT AND THOSE WERE THE BIGGER BANKS. THE SMALLER BANKS, THERE WERE SOME SMALL BANKS THAT WERE NOT QUALIFIED SO WE COULDN'T INVESTIGATE -- INVEST WITH THEM IF WE WANTED TO.

THIS IS WHERE WE HAVE LANDED. THIS IS PHASE ONE AND IN ADDITION TO THE ADOPTION FOR THE RESOLUTION OF PNC BANK WHICH IS ONE OF A NUMBER OF THEM, WE ARE IN THE PROCESS OF REPLACING ME WITH BARBARA ON ALL OF THE ACCOUNTS.

SOME OF THE ACCOUNTS HAD NOT BEEN UPDATED SINCE 2017.

SO THOSE NAMES NEEDED TO BE CHANGED.

WE ARE ACTUALLY DOING A TRANSFER OUT OF THE PNC BANK MONEY MARKET ACCOUNT INTO A CERTIFICATE OF DEPOSIT TO IMPROVE THE RATE OF

[01:20:01]

RETURN. THAT MONEY MARKET WAS CREATED IN THE DAYS WHEN IT HAD A BETTER RATE OF RETURN.

SOMETHING WE INVESTED IN SOME TIME AGO WAS A PROGRAM WHICH IS TIED TO FDIC INSURANCE. AGAIN CAUGHT THE INTEREST RATES WERE SO DISMAL AND HE REQUIRED A LOT OF ADMINISTRATIVE WORK TO KEEP UP WITH IT, WE DISCONTINUED DOING THAT MANY YEARS AGO.

>> SO WE ARE MOVING MONEY WITHIN THE SAME BANK, BUT WE ARE OPENING TO NEW $1 MILLION CDS AND BEFORE I COULD GET THE PAPERWORK TO DO THAT FROM TD BANK I HAD TO BRING THIS TO YOU

AND SAY CAN WE DO THIS. >> WE DID ADD $300,000 TO A CJ -- XCD WITH SENATOR STATE BANK.

WE HAVE FOUR CDS WITH CENTER STATE BANK THEY WERE ALL TIED TO THE CLEAN UP LOANS AND WE ARE NOT RELEASED FROM THE REQUIREMENT THAT THEY STAY WITH CENTER STATE.

THEY HAVE BEEN ACCOMMODATING IN TERMS OF GIVING US A DECENT INTEREST RATE TO ENCOURAGE US TO LEAVE THE MONEY THERE AND WE BASICALLY ROUNDED UP. WE ROUNDED UP THE 700,000-DOLLAR LOAN NCD TO MAKE IT WON MILLION DOLLARS.

WE MAY VERY WELL DO THAT AS THE OTHER THREE BECOME DUE.

WE ALSO HAVE A CERTIFICATE WITH SEACOAST BANK WHICH WILL BE RENEWING WITHIN THE NEXT MONTH AND WE MAY ADD TO THAT.

I THINK THAT IS ALL I HAVE. IF YOU HAVE ANY COMMENTS OR QUESTIONS PLEASE LET ME KNOW. THE PRIMARY THERE'S A NUMBER OF THINGS WE ARE ASKING YOU TO IMPROVE.

THE RESOLUTION IS SIMPLY WON COMPONENT.

I DON'T KNOW IF WE WANT TO TAKE THEM INDIVIDUALLY.

>> THANK YOU. >> I HAVE A COUPLE OF QUESTIONS.

I NOTICED ON YOUR CHART. WHY DIDN'T YOU INCLUDE SUNTRUST

AND BANK OF AMERICA. >> THEY WERE TWO OF THE BANKS.

SUNTRUST ISN'T SUNTRUST ANYMORE. THEY HAVE MERGED WITH ANOTHER BANK AND THEY WERE NOT INTERESTED IN DOING A CD FOR US.

>> THEY REALLY WANTED OUR REGULAR BASIS.

THAT WILL COME UP FOR PROPOSAL IN TWO YEARS.

>> LET ME ASK YOU A QUESTION. WHAT BANK IS DOING YOUR OPERATIONAL ACCOUNTS. SEACOAST.

>> OF THESE ARE INVESTMENTS. THIS DOES NOT INCLUDE OUR CHECKING ACCOUNT. THOSE ARE THROUGH ANOTHER PROCESS THREE YEARS AGO. CERTIFICATE OF DEPOSIT.

>> WOULD NEED TO BE BETTER TO HAVE A CERTIFICATE OF DEPOSIT IN A BANK WE ARE MOVING THE BIGGER DOLLARS.

>> THAT IS WHY WE HAVE IT. WHAT THE SUITE DOES IS IT MA MAKES -- TRACK IT SWEEPS OUR CHECKING ACCOUNT EACH NIGHT AND ENSURES THAT THEY ARE INVESTED RATHER THAN EARNING NOTHING.

IT IS NOT AN OVERNIGHT REPURCHASE AGREEMENT BUT IT IS SIMILAR. THE VAST MAJORITY OF THE MONEY IS WITH SEACOAST WHO DOES HANDLE -- THEY ARE OUR MAIN BANK.

>> HOW MANY YEARS DO YOU LEAVE IT THERE WITHOUT GETTING

PENALIZE? >> THESE ARE ALL 12 MONTHS TO 18 MONTHS. I THINK ONE IS SEVEN MONTHS.

>> BUT WE DON'T NEED TO TAKE THE MONEY OUT WE WON'T GET PENALIZE.

THE INTEREST RATE ON THE LONGER TERM CDS WERE LESS THAN THE SHORTER-TERM CDS. CONSISTENTLY.

[01:25:05]

CANCEL IF YOU WANT TO PUT IT AWAY FOR TEN YEARS DON'T BOTHER.

AND PLUS IF INTEREST RATES GO UP YOU ARE STUCK WITH A CD THAT DOESN'T EARN A GOOD RATE OF RETURN.

>> FROM MY BANKING EXPERIENCE. IT MEANS YOU WOULD SHOP REGULAR.

YOU YOURSELF AS A PERSON. CALL A BANK UP AND SAY WHAT IS

YOUR GOING PRICE. >> ALSO ON THE OTHER HAND YOU SAY I HAVE BEEN A CUSTOMER FOR FIVE YEARS WHAT IS IN THE DEAL

FOR ME. >> WE DO EXACTLY THAT.

>> SO WILL BE BE STUCK WHEN WE PASS THIS RESOLUTION.

>> NO. THE RESOLUTION TODAY, ALLOWS US TO DO BUSINESS WITH PNC BANK. YOU AS THE BOARD RECOGNIZE THAT WE ARE DOING BANKING. A REVISED RESOLUTION OR SOME FORM THEREOF FROM SEACOAST FROM THE CENTER STATE BANK STATE BANK. TD BANK FOR SURE THEY WILL ALL, I WILL BRING THEM ALL BACK TO YOU.

THEY WANTED TO SEE YOU HAVE BLESSED THE WHOLE PROCESS FIRST.

THIS IS JUST PHASE ONE. HOPEFULLY I CAN KNOCK THEM ALL

OUT AT THE NEXT BOARD MEETING. >> DURING THE MERGER.

WILL WE GET HURT WITH THE MERGER.

>> NOPE BECAUSE WE DON'T DEAL WITH THEM AT ALL.

>> AND I THINK CENTER STATE HAS BEEN THOUGHT OUT TOO.

>> IT IS A YEAR FROM NOW. >> AND IS A MERGER NOT A BUYOUT.

>> THANK YOU. >> DO WE HAVE ANY STOCK

INVESTMENTS. >> THAT IS THE POINT.

WE ARE NOT AUTHORIZED TO MAKE THIS KIND OF AN INVESTMENT.

>> THE GOAL IS TO PRESERVE PRINCIPAL.

WE DON'T USE ANY MONEY. THAT'S WHY OUR EARNING RATES ARE

SO POOR. >> IT IS HAPPY -- TRACK IT IS SAD WHEN I AM HAPPY WHEN WE REMEMBER THIS.

AS A PUBLIC DEPOSITOR, THERE ARE MANY STRINGS ATTACHED WHEN WE DEPOSIT MONEY IN THESE BANKS. THERE IS A FORM THEY HAVE TO SIGN AND WE DO A REPORT EVERY YEAR.

IN THE PAST WE HAVE APPROACHED. >> WHO IS THIS ONE WITH?

>> THERE ARE FOUR OF THEM. THERE ARE FOUR OF THEM AT THIS

POINT. >> WE DO PROVIDE YOU WITH MORE DETAIL IN THE QUARTERLY OPERATING RESULTS BUT YOU HAVEN'T SEEN SEPTEMBER OR DECEMBER YET.

THIS IS A SNEAK PEEK INTO THE FUTURE.

NORMALLY WE WILL HAVE MORE INFORMATION.

AND IT WILL TELL YOU HOW MUCH INTEREST WE EARNED BECAUSE THAT IS OUR BASELINE. VERY RARELY DO WE EARN AS MUCH AS THAT WHICH IS INVESTED. WE COULD PUT MORE MONEY INTO THE STATE BOARD OF ADMINISTRATION IF THERE WAS AN APPETIZER FOR THE

RISK. >> THE ASSIGNEES ON THE ACCOUNT.

WHO ELSE? THE DIRECTOR AND YOU?

[01:30:01]

>> IT IS NOT THE CHAIRMAN. THE BOARD MEMBERS DO NOT SIGN ON THE ACCOUNTS. IT IS THE DIRECTOR OF UTILITIES AND FINANCIAL SERVICES AND THE DIRECTOR OF UTILITY SUPPORT SERVICES. THAT IS SO THERE IS A BACKUP.

SEACOAST SCOTT WE ACTUALLY HAVE THE DIRECTOR OF ELECTRIC AND GAS AND WASTEWATER ON THAT ACCOUNT. WE WENT A LITTLE CRAZY WHEN WE

CHANGE THEM IN 2017. >> DOES IT REQUIRE THE PERSON TO

SIGN IT? >> NO BUT I AS THE DIRECTOR OF FINANCIAL SERVICES HAVE A BONDING REQUIREMENT.

AND BARBARA WILL TOO. BUT YES THEY ARE ALL REQUIREMENTS. AS THE DIRECTOR OF FINANCIAL SERVICES. WE ALSO HAVE BONDS ON CUSTOMER

SERVICES. >>

>> ANYTHING ELSE. >> I MOVE THAT WE REPROVE --

APPROVE A RESOLUTION. >> I SECOND THE MOTION.

>> JUST THAT ONE LINE I CAN READ INTO.

THIS IS MASTER RESOLUTION OPERATION FOR DEPOSITORY ACCOUNTS AND TREASURY MANAGEMENT SERVICES.

>> WE HAVE THE MOTION ON THE SECOND PERIOD.

>> YES, MA'AM? >> MR. MATTHEWS.

>> YOU WANT EVERYTHING ELSE LUMPED TOGETHER QUITE STANCH IF YOU WOULD PLEASE CALL DOES THAT MAKE SENSE?

>> CAN READ LUMPED THEM TOGETHER AND CALL THEM BY TITLE SO WE KNOW WE ARE LUMPING THEM TOGETHER.

>> SO, THE MOTION MAKER YOU MEAN?

>> I THINK I WILL BE THE MOTION MAKER WOULD YOU LIKE THAT SO I MOVE THAT WE REPLACE HER AS THE AUTHORIZED SIGNER.

WE HAD JOHN AND JAVIER AS AUTHORIZED SIGNERS TO REPLACE THE FORMER DIRECTOR. AND I MOVE THAT WE MOVE $7,212,088.10 FROM A MONEY MARKET ACCOUNT TO A CERTIFICATE OF DEPOSIT WITH PNC BANK. I MOVE THAT WE INVEST IN A NEW 1 MILLION CDS WITH THE BANK OF WILMINGTON AND TRUSTCO AND WE AT THE PRINCIPAL OF A 300,000 CD WITH CENTER STATE BANK OF

WINTERHAVEN. >> I SECOND PERIOD.

>> PLEASE CALL THE ROLL. STANCH THE ROLE IS BEING CALLED.

>> ON JANUARY 28, A NOTE WAS SENT TO THE BOARD ON UTILIZATION

[Item J]

OF SALES FROM THE LAST CLEANUP OF TAX AND CERTIFICATE.

HE HAS PROPOSED USING THE MONEY FOR ECONOMIC DEVELOPMENT PURPOSES. AS A FOLLOW-UP I SENT YOU AN E-MAIL ON JANUARY 29 WHICH IDENTIFIED THE STAFF'S POSITION.

AN ALTERNATE USES OF THE FUND TO BENEFIT THE RATE VARIOUS.

I APPRECIATE IF YOU RESPOND WITH YOUR THOUGHTS ON THE SUBJECT AND CONTACT ME IF YOU HAVE ANY QUESTIONS.

>> THE LAST ITEM IS I AM PLEASED TO ANNOUNCE THAT JOSH GANG OUR DIRECTOR HAS BEEN ADMITTED TO THE FLORIDA BAR.

>> CONGRATULATIONS. >> YOU DON'T HAVE TO TRUST HIM

ANYMORE. >> LAUGHTER.

>> THAT IS ALL I HAVE. >> CONGRATULATIONS.

[Items L & M]

STANCH ANY COMMENTS FROM THE BOARD?

>> I'M SORRY. >> I'M SORRY IT WAS ME.

I FORGOT. >> NO COMMENTS TODAY.

>> SORRY. >> SO, ON THE SUBJECT THAT HE JUST SPOKE ABOUT. YOU CAN ALSO CONTACT THE CITY COMMISSIONERS IN ADDITION. YOU JUST CAN'T CONTACT ME BECAUSE THAT IS A VIOLATION. SINCE I SERVE ON BOTH BOARDS.

[01:35:05]

SO YOU CAN ALSO GIVE YOUR THOUGHTS TO ANY CITY COMMISSIONER. I WANTED TO SHARE WITH THE BOARD AND I ALREADY SPOKE ABOUT THIS THAT AT STRATEGIC PLANNING LAST FRIDAY THERE WERE SEVERAL ISSUES THAT WERE BROUGHT TO THE COMMISSION THAT HAD BEEN TALKED ABOUT THE DAY BEFORE WHEN THE STAFF HAD THEIR PLANNING. CONCERNS ABOUT THE RELATIONSHIPS BETWEEN FPUA AND THE CITY. AND THE SPECIFIC THINGS THAT WERE BROUGHT UP WORK PERMITS FROM THE BUILDING DEPARTMENT, APPARENTLY THERE IS AN UNDERSTANDING FROM THE BUILDING DEPARTMENT THAT THE CITY THAT THE FPUA WILL NOT APPLY FOR PERMITS ANYMORE. I DON'T UNDERSTAND THAT.

I'M NOT SURE WHAT THAT IS. I SPOKE TO MR. TOM ABOUT THAT AND I AM SURE WE WILL HEAR MORE ABOUT THAT LATER SO WE

UNDERSTAND IT. >> WE ARE TRYING TO CHASE THAT DOWN. WE WILL ALWAYS CONTINUE TO PULL

PERMITS WHERE THEY ARE REQUIRED. >> IT IS AGAINST THE LAW TO NOT

TO. >> I DIDN'T UNDERSTAND THAT BUT IT CAUSED A GREAT DEAL OF CONVERSATION.

I WOULD LIKE TO CLARIFY THAT SO WE ARE ON THE SAME PAGE WITH THE CITY AND THERE WAS SOMETHING VOICED ABOUT STREETLIGHTS NOT BEING A PRIORITY AND SO WE SPOKE ABOUT THAT.

WE WERE GOING TO TRY TO CHASE THAT DOWN.

THERE WAS A DISCUSSION ABOUT ANNEXATION AND BEING ON THE SAME

PAGE. >> SO THERE WAS A DISCUSSION OF THE COMMISSIONERS ABOUT THESE CONCERNS WITHOUT US HAVING A LOT OF THE INFORMATION BECAUSE WE DIDN'T HEAR IT FIRSTHAND.

BUT I DID SPEAK TO MR. TOM PECK ABOUT IT.

I THINK THAT SHOULD BE SOMETHING THAT SHOULD BE IN OUR LONG-RANGE PLANNING. ALSO IT IS SOMETHING I WOULD LIKE FOR THEM TO MEET AND DISCUSS.

AND I THINK I WOULD LIKE TO GET BACK ON THE SAME PAGE.

WITH THE CITY AND THE FPUA. SO I JUST WANT TO BRING THAT TO

THE BOARD'S ATTENTION. >> AS A QUICK FOLLOW UP.

WE ARE MEETING WITH MARK ON THURSDAY ABOUT THE STREETLIGHTS.

THERE WILL BE MANY ISSUES. SOME ABOUT STREETLIGHTS ON THE ISLAND THAT ARE OFTEN ELITE. SOME WE CAN'T GET PARTS FOR.

AND OTHER ISSUES AS WELL. HOPEFULLY WE CAN IRON THEM OUT.

>> IN TERMS OF ANNEXATION THE STAFF MET LAST WEEK AND WHAT WE NEED IS MORE SPECIFIC INFORMATION WE ARE NOT SURE WHAT

YOU NEEDED THIS POINT. >> IT IS SOMETHING WE SPOKE ABOUT LAST YEAR AND WE AERATED AND THERE WAS A LOT OF DISCUSSION ABOUT WHAT HAPPENS IN THE PAST AND WHAT SHOULD HAPPEN IN THE FUTURE. I AM NOT CLEAR ON IT MYSELF BUT I THINK THAT IS SOMETHING THAT WOULD BE A GOOD THING FOR THE RATE PLAYERS SO WE ARE ON THE SAME PAGE.

THAT IS AS MUCH AS I KNOW RIGHT NOW.

>>> YESTERDAY. >> I THINK IT IS IMPORTANT THAT WE FOLLOW THROUGH ON THIS CONVERSATION.

I SPOKE AT AS A CITIZEN AT ONE MEETING BUT I THINK THE MEETING WAS NOVEMBER 12. THE OTHER PROBLEM LEVEL TWO WORK TO-2. SO THE COMMISSIONER WAS ABSENT AND WE CERTAINLY NEED ALL OF US WERE ONE OF US NEED TO TALK TO HIM BECAUSE WE ALREADY KNOW HOW THE OTHER TWO PEOPLE VOTED.

WE NEED TO MAKE CERTAIN HE DOESN'T JOIN IN WITH THE TWO THAT ARE NOT THERE. I PLAN ON STAYING ON TOP OF IT

AS A BOARD MEMBER. >> THANK YOU.

>> THE OTHER THING I WANT TO SAY IS AS THE RECORD SHOWED IT WAS DONE IN 2015 BUT I CAME TO THE CONCLUSION THAT YOU DO RIGHT AND

[01:40:01]

IT SHOULDN'T BE A CONVERSATION. I THINK IT IS THE UAS MONEY.

>> MADAME CHAIRMAN. >> MR. MATTHEWS I AGREE WITH YOU. THE CITY COMMISSION AT THE TIME WITH GREAT CONVICTION SAID THE MONEY SHOULD COME BACK TO US.

I THINK ANY ATTEMPT TO GO AGAINST THAT RAISES A QUESTION IN MY MIND ABOUT THE INTENT. ESPECIALLY IN LIGHT OF THEM SAYING WE NEED TO WORK TOGETHER. I AGREE WITH YOU ONE 100%.

>> THAT IS WHY IT IS IMPORTANT TO TALK TO THE COMMISSIONERS.

I WANTED TO POINT OUT THAT HE IS ON THE EXECUTIVE COMMITTEE OF

THE EDC DOWN AS OF TODAY. >> CONGRATULATIONS.

>> YOU GET ON THE COMMITTEE BY HOW MUCH MONEY YOU DONATE.

THAT IS THE WAY IT WORKS. >> YOU ARE EXPECTED TO GET STUFF OUT OF IT. ALL OF THE COMPANIES GOING TO SAINT PORT LUCY WE WANT

* This transcript was compiled from uncorrected Closed Captioning.