Sep 14, 2022 Special City Commission

[00:00:02]

GO? OKAY, I'LL GO AHEAD AND GET THE MEETING STARTED. OKAY I'M GONNA CALL THE MEETING TO ORDER

[Call to Order]

[COMMENTS BY CITY COMMISSIONERS]

[APPROVAL OF AGENDA]

[1. WATER, WASTEWATER, SANITATION REVENUE SUFFICIENCY STUDY (RATE STUDY) (RC): RESOLUTION NO. R76-2022; A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF STUART, FLORIDA, ADOPTING THE WATER, WASTEWATER, AND SANITATION REVENUE SUFFICIENCY STUDY, PREPARED AND SUBMITTED BY RAFTELIS DATED SEPTEMBER 14, 2022. PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES.]

OKAY NOW YOU'RE UP, TIM. GOOD AFTERNOON MAYOR. COMMISSIONERS FOR THE RECORD. TIM VOLKER UTILITIES AND ENGINEERING DIRECTOR. UM BEFORE I HAND IT OFF TO MURRAY HAMBLETON FROM RAFT ALICE WHO PREPARED OUR REVENUE SUFFICIENCY STUDY KIND OF GONNA GIVE JUST A BRIEF BACKGROUND OF THE UTILITY SYSTEM FOR YOU GUYS. THE MAP I HAVE UP ON THE SCREEN HERE, THE BLUE LINE THAT'S DELINEATED IS THE UTILITY SERVICE AREA FOR THE CITY OF STEWART. AND THEN THE BLACK LINE IS THE CITY OF STUART CITY LIMITS. SO LET ME JUST ZOOM IN ON AN AREA AND I CAN SHOW YO? YEAH LEAH DO DO WE SERVICE EMILIA? OR DOES THE COUNTY OR BOTH BOTH. OKAY SO THERE'S A DIVISION WHERE THEY TAKE KIND OF THE NORTHERN PORTION AND THEN WE TAKE THE SOUTHERN PORTION. UM.

SO RIGHT HERE IS KIND OF THE NORTHEAST CORNER OF OUR UTILITY SERVICE AREAS, SO OUR BOUNDARY FOR UTILITIES GOES OUTSIDE THE CITY LIMITS. SO RIGHT HERE IS KIND OF SNUG HARBOR, WHICH ARE COUNTY RESIDENTS AND OUR UTILITIES SERVE THE COUNTY RESIDENTS, SO THERE'S CERTAIN AREAS WHERE THE UTILITY SERVICE AREA GOES OUTSIDE CITY LIMITS, AND WE SERVE COUNTY RESIDENTS AND THEN VICE VERSA. WHERE OUR UTILITIES LIKE IF YOU GO NORTH OF THE BRIDGE HERE OUR CITY LIMITS ARE OUTSIDE. OUR UTILITY SERVICE AREA, AND THOSE RESIDENTS ARE SERVED BY MARTIN COUNTY UTILITIES. SO I JUST WANTED TO POINT THAT OUT. SNUG HARBOR IS A GOOD EXAMPLE. ON THE OTHER HAND, YES, JUST NOW. AND I ALSO BOULEVARD PRETTY MUCH ALL OF ST LUCIE BOULEVARD AND MARTIN COUNTY AIRPORT ARE OUTSIDE. THE CITY LIMITS. HOWEVER OUR UTILITIES SERVED THEM WATER SEWER SERVICE, THE MARTIN COUNTY GOLF COURSE. YES THEY DO. DO THEY USE OUR WATER? NOT SO I Q'S RUN KIND OF DOWN DIXIE HIGHWAY BUT HASN'T BEEN RUN TO THE MODERN COUNTY GOLF COURSE YET.

OKAY THANK YOU. SO AS PART OF THIS SYSTEM, WE HAVE THIS BOUNDARY AND THE BOUNDARY DELINEATES THE SYSTEM, AND THE SYSTEM IS MADE UP OF INTERCONNECTED PIPING FITTINGS PUMPS. THERE'S A WATER TREATMENT PLANT AND A WATER RECLAMATION FACILITY. SO ON THIS MAP, ALL THESE GREEN DOTS AND I CONSUME IN. ARE THE WELLS. SO BASICALLY THE WELLS PULL THE WATER FROM THE GROUND WATER AND PUMP IT TO THE WATER TREATMENT PLANT. WHICH IS LOCATED AT THE CORNER OF 10TH

[00:05:04]

MR MAYOR COMMISSIONERS AGAIN. FOR THE RECORD. MY NAME IS MARIE HAMBLETON ON THE SENIOR MANAGER AND CERTIFIED PUBLIC ACCOUNTANT. BOTH COLLARS. ALSO WITH ME TODAY IS TREVOR MCCARTHY. HE'S ONE OF OUR RECONCILE TINTS WITH OUR FIRM. ROUGH CALLUSES FROM CAUSE FINANCIAL CONSULTANTS WHERE

[00:10:06]

CLOSING DOWN THE CITY AT THAT TIME, BUT ONE OF OUR OVERRIDING FACTORS WE'RE DOING A LOT OF EDUCATION. AH THE WATER AND WASTEWATER SYSTEM AT THAT PARTICULAR TIME HAD A LOT OF CASH IN THE BANK. HAD JUST ISSUED SOME NEW BONDS AND WE CAME IN, AND WE WERE TELLING THE CITY THAT THEY HAD RAISED RATES AND THEY COULDN'T UNDERSTAND. THEY HAD ALL THIS MONEY IN THE BANK. AND SO ONE OF THE GOVERNING DOCUMENTS, AT LEAST FOR THE WATER AND WASTEWATER SYSTEM IS OUR LOAN AGREEMENTS RIGHT? THE CITY ENTERS INTO THESE CONTRACTS. THERE ARE STIPULATIONS, SO A LOT OF IT DEALS WITH NOT ONLY DAYS OF CASH AND CASH THAT ARE IN THE RESERVE FUNDS. THE CASH FLOW AND WE HAVE TO HAVE A STRONG CREDIT. BUILDING OFF OF CAM'S INTRODUCTION ABOUT THE SYSTEM, YOU KNOW, WATER AND WASTEWATER IS HUGELY CAPITAL INTENSIVE. ALL THAT INFRASTRUCTURE THAT WE SAW THERE FIXED COST. AND SO WHEN, WHEN YOU THINK OF WATER AND WASTEWATER, YOU THINK ABOUT THEIR THEIR THEIR BUDGET THEIR ANNUAL BUDGET EACH YEAR. THERE'S ONLY ABOUT 10% OF THE BUDGET THAT TRULY VARIES WITH THE AMOUNT OF WATER THAT CUSTOMERS USE ON A DAILY BASIS. SO THE EBS AND FLOWS OF HOW PEOPLE USE WATER DOESN'T REALLY AFFECT THE BUDGET AS MUCH. IT'S CERTAINLY AFFECTS THE REVENUE. RIGHT WE WERE ON THE WATER SYSTEM SIDE.

WE HAVE THE WATER. USE TEARS, SO THE MORE WATER YOU USE THE HIGHER THE COST GOES, YOU KNOW AGAIN, THAT'S IT. THAT'S IT. THAT'S A CONSERVATION INCENTIVE . WE HAVE A LIFELINE RATE THAT'S MEANT TO ADDRESS ESSENTIAL NEEDS. AND THEN THE COST OF THE WATER GOES UP. SO WHEN PEOPLE VARY THEIR USE WILL SEE A MUCH LARGER DROP IN THE REVENUES TO THE SYSTEM. THE EXPENSES CHANGED VERY LITTLE. UNDERSTANDING THAT 90% FIXED COSTS VERSUS 10% VARIABLE COST IS ALSO IMPORTANT AS WELL. WE HAVE THE MONTHLY BASE CHARGES RIGHT THERE IS THAT THAT RECOUPS A PORTION OF THOSE FIXED COSTS. BECAUSE OUR RESIDENTS WHO AREN'T HERE YEAR ROUND THE INFRASTRUCTURES HERE.

WE JUST SAW THAT AND SO, SO WE HAVE TO HAVE AN EQUAL WORK OR AN EQUITABLE CONTRIBUTION IN ORDER TO IN ORDER TO PAY FOR THOSE NEEDS. UM SO AGAIN, THAT 2005 STUDY THAT WE CONDUCTED WAS LARGELY FOCUSED ON EDUCATING THE COMMISSION AT THE TIME STAFF AT THE TIME, IT WAS FOCUSED LARGELY ON CASH FLOW NEEDS. THOSE ARE STILL NEEDS TODAY. UM YOU KNOW, SINCE THAT FIRST STUDY, WE PREPARED GREAT STUDIES IN 5 4012 . THE MOST RECENT, YOU KNOW, WAS 2017 THAT THAT'S KIND OF OUR STARTING POINT FOR THIS PARTICULAR STUDY. UM BEYOND THE 2017 RATE STUDY. YOU KNOW, WE WERE TALKING ABOUT A REVERSE OFFS. MAS'S FACILITY BACK THEN A NEW NEW ALTERNATIVE WATER PROCESS, UM, BEYOND THAT 2017 RATE STUDY. WE DID EVALUATE WATER AND WASTEWATER. WE EVALUATED SANITATION BEYOND THAT IN 2018. WE PERFORMED AN ALTERNATIVE WATER SUPPLY STEADY.

SO THIS THIS WAS COMBINED WITH? I BELIEVE IT WAS HAZING AND SAWYER THAT WE THAT WE WORKED WITH. WHERE WE WERE EVALUATING THE SYSTEM. CITIES CHOICES, YOU KNOW WHAT WAS YOUR ALTERNATIVE WATER SOURCES GOING TO BE FOR THE FUTURE OR WERE GOING TO PURCHASE WATER FROM MARTIN COUNTY, OR WE WERE GOING TO INVEST IN OUR OWN FACILITY AND IN THE OUTCOME OF THOSE DELIBERATIONS AND ANALYSIS WAS TO INVEST IN IN YOUR R O PLANT THAT YOU'RE CURRENTLY PURSUING RIGHT NOW. SO I WANT I WANT YOU ALL TO UNDERSTAND KIND OF UNDERSTAND THAT BACKGROUND.

EXTENDING FROM THAT STUDY. WE HAD A STUDY IN 2018 FOR THE FOR THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION, OPERATES THE STATEMENT ALL IN FUN LINE SRF LOAN PROGRAM. AND SO THE CITY COMPLETED A COMPREHENSIVE WATER BUSINESS PLAN TO GET APPROVAL FOR THAT ROO PROJECT AS WELL AS WELL AS I THINK OF A BUNDLE OF OTHER PROJECTS AND THEN EXTENDING THAT JUST A LITTLE BIT. UH, FOLLOWING THAT PARTICULAR STUDY, WE ASSISTED CITY STAFF AND COMPLETING STATE REVOLVING FUND LOAN APPLICATIONS. THERE WAS ONE FOR THE MONTEREY OF WATER. MAIN MANUEL ROAD. WATER MAIN POINT OUT THAT AT THE END RESULT OF THAT IT WAS A FULLY FUNDED GRANT PROJECTS, SO THERE IS NO FUTURE DEBT FOR THE MONTEREY PROJECT. BUT THE OTHER ONE WAS THE LOAN

[00:15:01]

UH WE WERE CONSIDERING A NEW PUBLIC WORKS COMPLEX FUNDED THROUGH THE SANITATION DEPARTMENT. WE ALSO WE HAD STARTED A FEW YEARS BEFORE THE SET TO PURSUE OUR PROGRAM, MOVING THROUGH THE VARIOUS BASINS THAT WERE IN JEOPARDY AT THAT PARTICULAR TIME AND AGAIN, AT LEAST AT THE TIME OF THE 2017 STUDY. WE'RE STILL MOVING THROUGH SOME OF THOSE SEPTIC TO SEWER BASINS AGAIN. THOSE WERE THOSE WERE THE PRINCIPLE DRIVERS. 2017 STUDY THAT LED TO THE ADOPTION AND RECOMMENDATIONS. NOW, UM. YOU KNOW, SINCE THE 2017 RATES SO 11 OF THE SERVICES WE PROVIDED STAFF HASN'T NECESSARILY BEEN EACH AND EVERY YEAR, BUT BUT FAIRLY REGULARLY AS WE PERFORM AN ANNUAL BUDGET ANALYSIS, SO AS THE CITY CAN, AND THIS REALLY STEMMED FROM THAT 2005 RATE STUDY WHEN STAFF REALIZED AND FOUND OUT THAT WE WERE POTENTIALLY NOT GOING TO BE IN COMPLIANCE WITH THAT RESOLUTION , AND I'LL DESCRIBE THAT FOR YOU IN JUST A SECOND. YOU KNOW, I TOLD YOU CASH RESERVES MATTER. CASH FLOWS REALLY IMPORTANT. SO WHEN YOU LOOK AT THE LENDING AGREEMENT WITH THEY HAVE WHAT'S CALLED A FLOW OF FUNDS. WHAT YOU CAN USE THE MONEY FOR IT AND WHAT WATER AND SO YOU HAVE REVENUES. THE FIRST PAYMENTS ARE OPERATING EXPENSES. THE SECOND PAYMENTS DEBT SERVICE, SO YOU HAVE TO HAVE A CERTAIN MARGIN AFTER THE PAYMENT OF OPERATING EXPENSES TO GO TOWARDS THE DEBT SERVICE. ALL THE CAPITAL NEEDS THAT, TIM TALK TO YOU ABOUT THIS AFTER THE PAYMENT OF DEBT. AND THEN ALSO WE HAVE THE GENERAL FUND TRANSFER, WHICH IS ALSO AFTER THE PAYMENT OF DEBT. AND SO AND SO THAT'S THE COEFFICIENT . SO MR PETERS, WHO WAS THE ASSISTANT DIRECTOR AT THE TIME WOULD HAVE US PERFORM THIS BUDGET ANALYSIS EACH AND EVERY BUDGET CYCLES TO PROVE TO THE COMMISSION THAT HIS BUDGET WAS IN COMPLIANCE WITH THAT LOAN AGREEMENT. SO UM, SO AFTER THE 2017 STATE FROM 2018 TO 2022. WE HELPED STAFF PERFORM THESE PERIODIC BUDGET ANALYSIS. THINGS CHANGE. OKAY THE PROJECT THE ORIGINAL AFTERNOON 2017 WAS $10 MILLION BY THE TIME WE DID THE ALTERNATIVE WATER SUPPLY STUDY ONLY A YEAR LATER. BUT THE TOTAL COST HAD MOVED TO 16 MILLION. AND TODAY ONCE WE WENT OUT FOR BID AND EVERYTHING ELSE, THAT THE TOTAL COST IS ABOUT 26.5 MILLION SAME WITH PUBLIC WORKS COMPLEX HAVE STARTED OUT AT 4.5 MILLION. A COUPLE OF YEARS AGO, WE THOUGHT THE COST MIGHT BE ABOUT 7.5 MILLION AND AGAIN. THIS IS FOR A NEW FACILITY. AND TODAY, CHEFS CURRENT ESTIMATES FOR A NEW COMPLEX WOULD BE 12.5 MILLION. NOW YOU KNOW, LIKE I SAID, STAFF'S BEEN TRYING TO MANAGE THIS PLAN, SO THEY'VE BEEN LOOKING AT AT VARIOUS ALTERNATIVE AFTER THE INITIAL ESTIMATE. DID IT. TRIPLE. IN WHICH ONE ARE WE TALKING ABOUT? THE LAST FIGURE, THE LAST FIGURE. OKAY STARTED IT FORWARD. YOU ENDED AT 12. DIDN'T YOU SAY THAT? FIVE YEARS OF TRIPLED WHAT FIVE YEAR PERIOD SO FROM 2017 TO TODAY. 2020 22. THAT'S A VERY HIGH RATE OF INFLATION. YES, SIR. THAT COULD YOU. GIVE BRIEFLY. WELL I'M NOT AN ENGINEER. OKAY YOU KNOW, I'M I'M A C P A, UH, I WILL SAY IN THE CURRENT MARKETS, THINGS ARE WORKING. RIGHT QUIRKY, QUIRKY ENGINEERING COSTS ARE GOING UP. FUEL COSTS ARE GOING UP, SO WE'RE REALLY IN A VOLATILE TIME RIGHT NOW. I CANNOT. RATIONALIZED WHY THE COST IS THREE TIMES WHAT IT WAS FIVE YEARS AGO. UM YOU KNOW, AGAIN NOW ON THE R O PLANT. THAT WAS THE BID RESULT. SO ACTUALLY GOING OUT TO BID FOR THAT THAT WENT IN THE SAME TIME PERIOD FROM 10 TO YES, SIR. SO 50% AND FOR YEARS IT WAS IT WAS 10.1 MILLION. WHEN THE ENGINEERING STUDY WAS DONE A YEAR LATER. IT

[00:20:01]

CITY OF TAMPA, GOT SO BEHIND ON REPLACING THEIR EFFORTS INFRASTRUCTURE THEY WERE ACTUALLY HAVING A LINE BREAK EVERY DAY. AND YOU KNOW THOSE CAN BE DEVASTATING. THEY CAN INTERRUPT BUSINESSES. THEY CAN INTERRUPT TRAFFIC. THEY CAN WASH OUT THE STREETS. THERE'S ALL KINDS OF THINGS THAT CAN GO WRONG WHEN WE'RE NOT REPLACING THINGS IN AN APPROPRIATE TIME.

AH INCREASE OF SERVICE CAPACITY , SO WE? WELL WELL, WE MAY NOT ALWAYS BE HAVING BRAND NEW DEVELOPMENT IN THE CITY OF STEWART. WE CERTAINLY HAVE SOME REDEVELOPMENT THAT'S TAKING PLACE. UM AND SO WE, WE GOTTA IN TIM'S EQUATION THERE. YOU KNOW, EVERY ONE OF THOSE COMPONENTS HE HAD HE HAD ON THE MAP HAS DIFFERENT LEVELS OF SERVICE CAPACITY FROM THE PLANT TO THE PUMPS TO THE PIPES. AND SO THEY'RE THEY'RE PLANNING FOR THE NEEDS OF FUTURE GROWTH.

REGULATORY REQUIREMENTS IS ANOTHER ONE. THE ONE THAT'S NOT IN HERE AND IN HIS ISSUE RIGHT NOW, FOR ALL OF OUR LOCAL GOVERNMENTS, AS WELL AS OUR BUSINESSES, RETENTION OF STAFF.

SO WE NEED WE NEED TO KEEP THAT IN MIND, TOO. WE'VE GOT HUGE TURNOVERS ACROSS THE STATE OF FLORIDA RIGHT NOW. UM IN WORKING WITH STAFF TO AGAIN THROUGH THROUGH THE THROUGH THE BUDGET PROCESS. THROUGH THIS RATE STUDY . THERE'S ALSO BEEN SOME SOME NEW CAPITAL NEEDS THAT HAVE BEEN IDENTIFIED. SO THIS IS OUTSIDE OF THAT PRIOR RATE STUDY THAT WE DID IN 2017 FOR THE WATER RECLAMATION FACILITY. SO THIS IS THE SEWER PLANT. REPLACEMENT OF THE HEAD WORKS TURBO BLOWERS AS WELL AS CLARIFY THEIR BASINS AND THOSE THOSE THREE ITEMS WHILE THEY CAN BE DONE AT DIFFERENT INTERVALS IS ABOUT SEVEN ALMOST $7.5 MILLION. FOR THE R O PROJECT. WE HAVE THE FIRST. WELL THAT'S THAT'S CONSTRUCTED. WE'RE WORKING ON THE PLANT. UH, CITY STAFF HAS IDENTIFIED THE NEED TO INVEST IN A SECOND OR OH, WELL AGAIN. THIS IS THIS IS ALL FOCUSED ON THAT ALTERNATIVE WATER SUPPLY. TIM DIDN'T MENTION IT. IT'S PROBABLY ON THE ON THE MAP. YOU KNOW YOU HAD WELLS THAT BECAME CONTAMINATED AND WEREN'T ABLE TO BE USED AND HAD HAD TO BE REMEDIATED, AT LEAST TO SOME DEGREE. UM SO AGAIN. THE PURPOSE OF THAT ORAL WELL, NUMBER TWO IS TO TAKE MORE ADVANTAGE OF THE R O PLANTS CAPABILITIES. UH WE REINFORCE RELIABILITY AND THE OVERALL SYSTEM AND RESILIENCY THAT WAY IF WE HAVE THOSE SHALLOW WELLS OR SUBJECT TO DROUGHT THERE ALSO SUBJECT TO CONTAMINATION AND AGAIN THAT CAN THAT CAN INTERRUPT YOUR OVERALL SERVICE AND THEN LASTLY IS REPLACEMENT OF FLEET. UM FLEET AFFECTS WATER AND WASTEWATER. IT REALLY AFFECTS SANITATION. WE'VE GOT HUGE PROBLEMS RIGHT NOW. IT'S ALL COMPLICATED BY THE SUPPLY CHAIN ISSUES. YOU KNOW ONE. THE COST WENT UP SIGNIFICANTLY IN TERMS OF THE OVERALL COST OF FLEET IF YOU CAN GET IT. YOU KNOW THE LEAD TIMES ARE 18 TO 24 MONTHS. SO YOU YOU ALMOST HAVE TO APPROPRIATE IN

[00:25:05]

WE KNOW THE FISCAL YEARS COMING. IN LOOKING AT THE RATE STUDY. WE'RE LOOKING AT ALL THE BUSINESS ATTRIBUTES REVENUES CUSTOMERS, OPERATING EXPENSES REQUIRED TRANSFERS, CAPITAL DEBT SERVICE, BOTH EXISTING DEBT SERVICE AND THEN WE'VE MADE SOME ASSUMPTIONS ABOUT FUTURE DEATH.

YOU KNOW, MY ROLE HERE IS NOT NECESSARILY TELL YOU WHAT YOU HAVE TO CONSTRUCT AND WIN. YOU KNOW, THE PRIORITY COMES TO US FROM FROM THE ENGINEERS. BUT IT'S TO SHOW YOU WHAT IT TAKES TO FULLY FUND THOSE NEEDS. NOW WE DID HAVE SEVERAL MEETINGS. SEVERAL MEETINGS TIM AND I SPENT IN HIS STAFF SPENT AN ENTIRE DAY TOGETHER. EVEN WITH HIS OPERATING STAFF, SO THEY UNDERSTOOD. YOU KNOW WHEN THEY WERE PUTTING THE BUDGET TOGETHER THAT WAS PRESENTED TO YOU FOR ADOPTION THAT THEY UNDERSTOOD WHAT THE REQUEST MEANT IN TERMS OF RATES AND AGAIN THROUGH THAT MEETING, WE MADE CHANGES. WE MADE PRIORITY CHANGES IN TERMS OF THE LINEUP OF THE CAPITAL PROJECTS, WHICH I THINK HELPED BETTER, BETTER OPTIMIZE THINGS. WE LOOK AT THE OVERALL REVENUE REQUIREMENTS OF THE SYSTEM AND HOW THAT COMPARES TO YOUR CURRENT OF RATE SYSTEM RATES. IF YOU WILL THAT YOU'RE CHARGING AND THEN YOU KNOW, IN IN SOME CASES, WE WERE ABLE TO PROVIDE A NUMBER OF OPTIONS IN OTHER CASES. JUST BASED ON THE PRIORITY OF THE PROJECT, SHE MIGHT BE LIMITED TO ONE CASE SUCH AS WATER AND WASTEWATER. WE HAVE ONE CASE THAT WE PRESENTED FOR YOUR CONSIDERATION TONIGHT. WE HAVE TWO CASES FOR THE SANITATION DEPARTMENT. UM DISCUSSION TOPICS. I WON'T SPEND A LOT OF TIME HERE. I KNOW THIS WAS IN YOUR AGENDA PACKET. WE'RE GONNA TALK ABOUT EXISTING FINANCIAL CONDITIONS, MAJOR ASSUMPTIONS THAT WE USED AGAIN THE PROPOSED FUNDING FOR THE CAPITAL PLANS, UM, FOR ALL THE CAPITAL PLANS, WORKING, CAPITAL NEEDS AND OTHER OTHER STUDY CONSIDERATIONS AGAIN. THOSE ARE THE LENDING AGREEMENTS. AS WELL AS THE RESERVE FUND POLICIES. OVERALL REVENUE SUFFICIENCY OF RATES AND THEN AND THEN, FINALLY, OUR OVERALL OPTIONS. EXISTING FINANCIAL CONDITIONS, SO NOT ONLY DID THE PROJECT COSTS INCREASE FOR BOTH THE ARROW PLANT AS WELL AS THE PUBLIC WORKS COMPLEX PROJECT TIMELINE. OKAY SO IN SUCH. BUT THAT'S GOOD AND BAD. YOU KNOW ONE THE COST WENT UP RIGHT? THE COST WENT UP OVER TIME. BUT WHAT IT DID ALLOW THE CITY TO DO IS BECAUSE WE HAD PUT A RATE PATH IN PLACE IN 2017 TO COVER A PORTION OF THESE COSTS BEING A NEW COMPLEXES AS WELL AS THE R O FACILITY, AND THE PROJECTS MOVED OUT IN TIME IS CASH RESERVES HAVE BEEN PROPPED UP AND SO YOU'RE GONNA YOU'RE GONNA SEE THAT FOR BOTH SYSTEMS. AND SO WE'RE FROM FROM A, UH FISCAL STANDPOINT TODAY, OUR CASH RESERVES ARE HEALTHY. NOW YOU KNOW, THE QUESTION IS HOW DO WE? HOW DO WE WANT TO USE THOSE CASH RESERVES. IN SOME CASES, THERE'S SOME PROJECTS WITHIN THE WATER AND WASTEWATER SYSTEMS. THAT WE CAN FUND IN CASH, AND WE DON'T HAVE TO BORROW THE MONEY AND THAT AND THAT, AND THAT'S A GOOD THING. YOU KNOW THE IF YOUR IF YOUR GOAL IS TO HAVE THE LOWEST RATE POSSIBLE. PERIOD. THEN IT'S ALWAYS IN IN THE BETTER INTEREST TO USE THOSE CASH RESERVES TO FIND CAPITAL NEEDS SO THAT THAT'S WHERE WE'VE TRIED TO LARGELY APPLY THOSE NEEDS. IN, E USE THOSE CASH RESERVES IS TO PHASE IN A RATE INCREASE. OKAY OVER TIME. YOU KNOW WHAT WE TRY

[00:30:01]

YES, QUESTION, BUT IT SEEMS LIKE WHEN WE'RE LOOKING AT THE MINIMUM REQUIRED RESERVE, RIGHT, UM WORK. WE'RE LANDING DOWN AT 1 80 VERSUS AND I CAN SPEAK TO THAT. OKAY SO SILLY CITIES POLICY IS A MINIMAL 90 DAYS NOW WHERE WHERE THAT PROBABLY CAME FROM WAS THE GFO, A GOVERNMENT FINANCE OFFICERS ASSOCIATION. THEY RECOMMEND A RESERVE FUND POLICY OF 25% WHICH IS ABOUT 90 DAYS. THAT'S REALLY FOR LOCAL GOVERNMENT. OKAY, GENERAL FUND. UH 90 DAYS DOESN'T NECESSARILY CUT IT WITH WITH OUR OUR UTILITIES. SO OUR OUR UTILITIES BOTH SANITATION AND WATER AND WASTEWATER, EVEN YOUR STORM SYSTEM OPERATES VERY SIMILARLY. THEIR ENTERPRISE FUNDS THERE OPERATED LIKE A BUSINESS. SO WHERE THE 180 DAYS COMES FROM, UH IS FROM A RATING AGENCIES.

OKAY YOU'RE NOT NECESSARILY DIRECTLY IN THE BOND MARKET TODAY ARE LENDER HAS BEEN STATE REVOLVING FUND LOAN FROM WATER AND WASTEWATER SYSTEM. IF WE DO DO A PUBLIC WORKS COMPLEX FOR SANITATION, A PORTION OF THAT WE BELIEVE IS GOING TO HAVE TO BE BORROWED AS WELL. MOST LIKELY WITH THE PRIVATE PLACEMENT BANKNOTE. THE BANKERS LOOK AT THESE SAME KIND OF METRICS IS THE RATING AGENCIES. YES, SIR. PLEASE ACTUALLY WROTE DOWN. WHAT DO YOU CALL? UH YOU KNOW WHAT OUR BOND RATINGS IF I REMEMBER CORRECTLY, WE HAD A PRETTY HIGH BOND RATING. I DON'T KNOW THAT.

ONE HEY, ONE. YEAH I THOUGHT IT WAS RAINING. RIGHT? BUT I KNOW THAT A ONE WAS A VERY HIGH RATING. IT'S ONE OF THE HIGHEST RATINGS WE CAN GET. YEAH OKAY. THAT'S RIGHT. HAVING BEEN IN THAT BUSINESS FOR 32 YEARS, MARTIN COUNTY BONDS ARE VERY HIGHLY RATED AND VERY SOUGHT AFTER THE MARKET. IT'S CONSIDERED A VERY GOOD CREDIT. YEAH THAT'S WHAT I THAT'S WHAT I REMEMBER WHEN WE GOT THAT RATING AND WE ACTUALLY HAD A LITTLE GIRL. WE HAD A LITTLE CELEBRATION FOR IT SO WELL IN IN IN WRITING COMES BACK TO COST OF MONEY AND COST OF THE PROJECT.

SO YOU KNOW, IT'S SO AGAIN. THAT'S AN AREA WE WANT TO FOCUS ON, BUT THEY'RE GETTING BACK TO THE SPECIFIC METRICS. REALLY STRONG CREDIT IS ABOUT 365 DAYS OF CASH ON HAND. UM, SO A YEAR'S WORTH. UH, THAT'S A REALLY STRONG RATING. A GOOD RATING IS AROUND 180 DAYS, IT COULD BE 100 AND 20. COULD BE IT COULD BE 180 DAYS. I WON'T SAY A PORK CREDIT , YOU KNOW, YOU'LL STILL GET CREDIT BUT BUT 90 DAYS, 90 DAYS OR LESS. SO 90 DAYS THAT CITY POLICY, OKAY, I WOULD TELL YOU FROM A PRACTICAL SENSE, IT'S NOT VERY ADEQUATE ON SANITATION. 90 DAYS IS $1 MILLION. OKAY WE HAVE A BIG ENOUGH HURRICANE WHERE WE'RE GOING TO HAVE TO OUTLAY SOME MONEY. AND WAIT FIVE YEARS FOR FEMA TO REIMBURSE US. WE DON'T HAVE IT. AND UM SO AGAIN, 180 DAYS WOULD WOULD BASICALLY DOUBLE THAT IN TODAY'S DOLLARS WOULD BE TWO MILLION. IN TODAY'S DOLLARS ON WATER AND WASTEWATER . 90 DAYS IS 2.7 MILLION. IT'S JUST IT'S JUST IT'S JUST NOT GOING TO. IT'S JUST NOT GOING TO DO IT. NOW, UM KEEP IN MIND BECAUSE WE'RE TALKING ABOUT A FIVE YEAR FORECAST. UH AS EXPENSES GO UP, AND WE ENCOURAGE INFLATION. THAT 90 DAYS IS A NEW NUMBER. 180 DAYS IS NEW NUMBER.

SO FOR SANITATION 180 DAYS TODAY IS ABOUT 2.2 MILLION. FIVE YEARS FROM NOW. THAT 180 DAYS IS ABOUT THREE MILLION. SO SO YOU'RE SANITATION SCENARIOS. BOTH SCENARIOS THAT ARE AROUND THAT 180 DAY. MARK LEAVE YOU WITH ABOUT A $3 MILLION BALANCE, WHICH I THINK IS ADEQUATE IF YOU HAVE A NATURAL DISASTER, OTHER UNFORESEEN ISSUES, BUT THAT'S WHERE THOSE THAT'S WHERE THOSE METRICS COME COME FROM. I WON'T SAY IT'S AN ABSOLUTE THEY LOOK AT WHAT'S CALLED THE TOP 10 CS, OKAY, THE FIRST IS Y'ALL AND STAFF IS THE CREW IS THE MANAGEMENT TEAM. THE FACT THAT YOU YOU SET YOUR ANNUAL BUDGET THAT YOU DO A BUDGET ANALYSIS THAT YOU DO A GREAT STUDY PERIODICALLY WHETHER IT'S EVERY FIVE YEARS, THREE YEARS WHAT HAVE YOU BUT YOU'RE CONSTANTLY CHECKING IN AND YOU'RE MANAGING YOUR PLAN. AND THEN AND THEN YOU KNOW YOU GROWTH IN THE SYSTEM AVAILABILITY OF CAPACITY TO MEET NEW GROWTH REPLACEMENT OF THEY'RE LOOKING AT ALL THOSE

[00:35:02]

THERE'S A LOT MORE POLITICS. MY WORDS THAT KIND OF GOES INTO PLAY. NOT THAT THE GENERAL GOVERNMENT DOESN'T HAVE ITS OWN BOND COMMITMENTS AND THOSE KINDS OF THINGS BUT WATER AND WASTEWATER. THE HANDS ARE TIED. I CAN'T. I CAN'T GO TO THE GENERAL FUND AND SATISFY THAT CASH FLOW SHORTFALL. JUST LIKE IN 2005. WE HAD PLENTY OF MONEY IN THE BANK. BUT YET WE WERE IN TECHNICAL, NON COMPLIANCE WITH THE BOND AGREEMENT. WE COULD TAKE THE CASH AND PAY THE BONDHOLDER MAKE HIM HAPPY. WE DIDN'T HAVE CASH FLOW. AND SO AGAIN, THERE ARE OTHER THINGS THAT ARE DRIVING IT IN TERMS OF CASH FLOW. TODAY SANITATION IS IN A SURPLUS. WE'VE REPORTED THIS EACH AND EVERY YEAR AND AGAIN. THAT'S BECAUSE WE THOUGHT WE WERE BUILDING A PUBLIC WORKS COMPLEX A COUPLE YEARS AGO, AND WE'D BE PAYING THAT LOAN BACK ALREADY. THE ESTIMATED LOAN PAYMENT WAS GONNA BE A HALF MILLION DOLLARS, SO WE WOULD BE REALLY CLOSE TO A BREAK EVEN ON SANITATION. HAD WE BEEN ABLE TO MOVE FORWARD WITH THAT PROJECT AGAIN AT 4.5 MILLION, I'LL SAY SO WE HAVE A LITTLE BIT OF A SURPLUS. WE'RE GOING TO CONSIDER THAT, YOU KNOW, UM ON WATER AND WASTEWATER. AGAIN IT LOOKS LIKE A BIG NUMBER 15 MILLION IN CASH. AH! WE'VE GOT USES FOR THAT.

WE'VE GOT CAPITAL PROJECTS THAT WE'RE GOING TO FIND, AS WELL AS PHASING IN THE RATE ADJUSTMENTS OVER TIME. BUT REALLY THAT KIND OF A BREAK, EITHER. I KNOW IT'S A DEFICIENCY IS PROBABLY HARD TO SEE FROM HERE. BUT WATER AND WASTEWATER IS PRETTY MUCH AT A AT A BREAK EITHER. FOR THE FOR THE CURRENT YEAR. THIS IS THIS IS 2022. WHEN YOU LOOK AT THE EXPENDITURES FOR WATER AND WASTEWATER. YOU KNOW, 74% OF THE OVERALL REVENUES, OPERATING EXPENSES AND TRANSFERS, THEN ANOTHER 16% GOES, GOES TOWARDS YOUR EXISTING DEBT SERVICE PAYMENTS. WE ONLY HAVE 11% LEFT THAT GOES TOWARDS CAPITAL. AND AGAIN THAT FUNDING IS SPECIFICALLY TIRED OR THE FUNDING REQUIREMENTS ARE SPECIFICALLY TIED TO YOUR BOND RESOLUTION. AND THEN THE LINEUP OF PROJECTS IS TIED BY THE YEAR OF PRIORITY LISTING PREPARED BY THE CITY'S ENGINEERS. OUR CURRENT BUDGET AND PROPOSED BUDGET FOR 2023 SERVED AS A BASIS FOR A FORECAST AS WELL AS THE LONG LONG TERM CAPITAL PLANS THAT STAFF PUT TOGETHER. SO MOVING INTO SOME OF OUR STUDY ASSUMPTIONS. YOU KNOW, AS I MENTIONED, YOU KNOW, WE TOUCHED ON EVERY BUSINESS ATTRIBUTES OF THE TWO YEAR SITTING UTILITY SYSTEMS IN TERMS OF REVENUE COMPARED TO BUDGET. SANITATION IS SHORT WATER AND WASTEWATER ARE A LITTLE BIT ABOVE. IT IS KIND OF ODD THAT THEY KIND OF OFFSET LIKE ONE CAN'T HELP THE OTHER. THEY'RE TWO SEPARATE FUNDS. I CAN'T COMMINGLE THEM.

UM WHILE SANITATION WHAT LOOKS LIKE A SMALL VARIANTS ON SANITATION. $300,000 IS 5% OF THE CURRENT RATE. SO JUST A LUNG. IF WE WANTED TO SHORE UP THAT CURRENT BUDGET, WE DON'T MOST NEED A 5% INCREASE ROAD RELATIVE TO THOSE THOSE PLANNED REVENUES. UM YOU KNOW, REVENUE GROWTH. IT'S AVDIIVKA FLOWED IF I SAID THAT RIGHT OVER THE LAST FEW YEARS WE'VE HAD PEOPLE AND VALLEYS GOING THROUGH COVID WAS STRANGE FOR EVERYBODY. SO IN THE SHORT TERM OVER THE LAST THREE YEARS, WE'VE HAD SOME YEARS WHERE WE HAD FAIRLY GOOD GROWTH EVEN 5% IN CERTAIN CATEGORIES.

RESIDENTIAL VERSUS COMMERCIAL AND OTHERS LIKE COMMERCIAL ON SANITATION WENT THROUGH COVID.

IT DRIED UP. IT WENT DOWN. UM THE LONG RANGE GROWTH RATE WITHIN THE CITY'S AVERAGED ABOUT 1% SO WE AGAIN. WE'RE TRYING TO BE A LITTLE CONSERVATIVE HERE, UH, THE GROWTH RATES MINERAL ABOUT 1% WE'VE HELD AT 1% IN ADDITION TO THAT WE ARE STILL INVESTING IN THE SEPTIC TO SEWER PROGRAM. WE HAVE WE HAVE ABOUT 90 CUSTOMERS WHO WHO ACTUALLY PREPAID THOSE COSTS. WE EXPECT THOSE CUSTOMERS TO CONNECT HERE . WE'RE NOT GONNA GET ANY NEW MONEY THEY'VE ALREADY PREPAID, BUT WE EXPECT THOSE CUSTOMERS TO CONNECT SOMEWHERE OVER THE NEXT FIVE YEARS. YOU'RE ONE OF THEM.

OKAY PLEASE CONNECT. WHAT'S THAT ? PLEASE CONNECT, MR MAYOR. UM SO, SO AGAIN. WE EXPECT SOME OF THOSE PREPAID CUSTOMERS TO CONNECT AS WELL AS SOME NEW CUSTOMERS THAT HAVEN'T PAID YET.

AND THEN, OF COURSE, WE HAVE A RECEIVABLE BALANCE THAT WE'RE COLLECTING OVER TIME. LONG STORY

[00:40:01]

WE'RE GONNA WORK WORK, CONTINUING TO ASSUME THAT WE'RE GOING TO INVEST IN THE IN THOSE PUMPS AND THE AND THE GRINDER SYSTEMS, BUT THE CUSTOMERS ARE GOING TO PAY US OVERTIME. OKAY SO THAT IS ONE OF THE USES OF THE $15 MILLION IN RESERVES THAT WE HAVE IS AGAIN THESE CRITICAL AREAS WHERE WE HAVE SEPTIC SYSTEMS THAT WE WANT TO GET THEM OFF LINE AND ON TO CENTRAL SEWER. THE CITY. THE COMMISSION LONG AGO ELECTED TO INVEST IN THIS PROGRAM, AND WE'RE CONTINUING TO DO THAT. UM YOU KNOW, WE DO HAVE MISCELLANEOUS CHARGES. IT'S A SMALL PORTION OF THE EQUATION. BUT THOSE MISCELLANEOUS FEES YOU KNOW THERE, TURN ON, TURN OFF LATE FEES, PENALTIES, THOSE KINDS OF THINGS. WE GENERALLY HOLD THOSE REVENUE CATEGORIES CONSTANTLY IN TERMS OF OPERATING EXPENSES AGAIN, PREDICATED ON THE CURRENT AND PROPOSED BUDGET. DRIVERS RIGHT NOW. YES, SIR. I CAN PREVIOUSLY PERCENTAGE OF THE. RESIDENTS OF THE ELIGIBLE RESIDENTS OF THE CITY ARE HOOKED UP TO THE SYSTEM. FOR THE WE'RE TALKING ABOUT THE SEPTIC TO SEWER SEPTIC THAT THAT HAVE THE AVAILABILITY BUT HAVE NOT ELIGIBLE I DON'T HAVE IT WITH ME. DO YOU WERE ABOUT 40% CONNECTED OUT OF THE SYSTEM. WE STARTED WHEN I WAS ONE OF THE VERY 1ST 1 2012 AROUND THAT TIME FRAME ARE WE ON TRACK OF FOR OUR ORIGINAL PROJECTION OR BELIEVE THAT THE GOAL WAS ALWAYS AROUND 50% SO AS WE GO INTO A BASIN, YEAH, WHEN WE GO INTO A BASE, AND YOU KNOW THERE ISN'T ORIGINAL ASSUMPTION WOULD BE ABOUT 50% OF THE PEOPLE WOULD TAKE ADVANTAGE OF THAT. SIGN UP AND SAVE. SO WE'RE WE'RE CLOSE TO THAT LITTLE UNDER IT WAS CLOSED. SO WHAT I DO THINK IT WAS 2012. AND SO WHAT? WHAT WE DID AT THE TIME AS WE SELECTED A FEW BASINS. AS KIND OF TEST SUBJECTS. AND LIKE, 10 POINTED OUT, WE WERE BASICALLY DID A PAYBACK ANALYSIS, YOU KNOW, BASED ON KNOWING THAT SOME CUSTOMERS AREN'T AREN'T GONNA CONNECT AT ALL EVER IF THE CITY MADE THESE INVESTMENTS, WHAT WAS THE PAYBACK IN TERMS OF YEARS? WHEN DO YOU GET YOUR MONEY BACK IN THE RESULTS OF THAT ANALYSIS WERE ABOUT SEVEN ABOUT SEVEN YEARS THAT IT THAT IT TAKES TO RECOVER THAT INVESTMENT. OBVIOUSLY SOME OF THE THAT HAS PROBABLY MOVED A LITTLE FASTER IN SOME BASINS. MAYBE NOT AS FAST AND THAT'S A VERY GOOD RETURN ON YOUR MONEY, RIGHT? ISN'T IT? I THINK SO. AND I AND I AND I ALSO BELIEVE IF I RECALL CORRECTLY, INITIALLY WE WERE AHEAD OF SCHEDULE AS THE FIRST FEW BASINS. BUT I ALSO THINK THAT, UH, THAT HAD A LOT TO DO WITH THE FACT THAT IN 2013 14 15 16 WHEN THE PROGRAM WAS STILL NEW THERE WAS THE RIVER WAS HAVING A LOT OF ISSUES WITH GREEN ALGAE AND PEOPLE WERE FOR FOCUSED ON IT. AND AS THE AS THINGS HAVE EVOLVED, UH AND THE RIVERS DONE A LITTLE HEALTHIER, UM, AND THERE'S NOT AS MUCH CONVERSATION BECAUSE IT'S AN OLD PROGRAM. WE ACTUALLY COMPLETED ALL THE BASINS. IT'S NOT BEING TALKED ABOUT AS MUCH. I THINK IT'S ACTUALLY HE PROBABLY SLOWED

[00:45:01]

AGAIN THE ESTIMATED PAYBACK FROM THAT ANALYSIS WAS DONE WITH SEVEN YEARS AND THE CONCLUSIONS WERE YES. YEAH NOW, I WILL SAY AT THE TIME THE CITY COMMISSION HAD ONLY SPECIFIED ADDITION, IN ADDITION TO THE ENVIRONMENTAL BENEFIT, ABSOLUTELY. THAT'S IT ALMOST. SAY YOU KNOW, WE WOULD BE WILLING TO PAY FOR THAT FOR WHAT WE'VE BEEN GAINING THAT PUTTING THE ENVIRONMENT. SO IF WE'RE GETTING JUST MAKES SO MUCH SENSE IF WE'RE GETTING A VERY ATTRACTIVE FINANCIAL RETURN, AND SEVEN YEARS IS AND CERTAINLY IS IN MY BUSINESS WASN'T MY BUSINESS, SO I JUST WOULD LIKE TO MAKE THAT POINT TO THE COMMISSION AGREE WE SHOULD CONSIDER THAT WELL AND AGAIN TO THE TO THE MAYOR'S POINT. THE COMMISSION AT THE TIME HAD ONLY APPROVED A SELECT NUMBER OF BASINS WHERE THEY WHERE THEY KNEW. I THINK THEY HAD DONE SOME SURVEYS AND WHAT HAPPENED WHERE THEY KNEW THE INTEREST WAS HIGH. IT WAS SO POSITIVE. THAT'S WHEN THEY OPENED IT UP TO THE OTHER BASINS. THEY DID NOT DO INDIVIDUAL FEASIBILITY STUDIES FOR EVERY SINGLE BASIN BUT AGAIN BASED ON THAT INITIAL PAYBACK ANALYSIS AND THE RESPONSE FOR THE FIRST FEW BASINS THEY INVESTED IN THE OTHER AREAS. UMS . YOU KNOW THE CRITIC CRITICAL DRIVERS RIGHT NOW. OR TIPPING FEES AND FUEL COSTS. LABOR EXPENSIVE REPAIRS, AMENDMENTS. THOSE WERE THE WHILE A LOT OF CATEGORIES IN THE 2023 BUDGET WENT UP THIS YEAR. THOSE WERE THE FOUR BIG DRIVERS AGAIN FOR BOTH WATER AND WASTEWATER, AS WELL AS SANITATION. UM, SO THAT'S OUR STARTING POINT. NOW THE ARE LEAP OF FAITH AS WE HAVE TO TRY AND FIGURE OUT WHAT'S GOING TO HAPPEN TOMORROW AND I'LL BE HONEST WITH YOU. THERE AREN'T THERE AREN'T GREAT INDICATORS. YOU KNOW, CONGRESSIONAL BUDGET OFFICE PUT PUTS OUT MATERIALS YOU KNOW, RELATED TO CP AND OTHER THINGS.

UM, YOU KNOW, THEY KEEP TELLING ME IT'S 2.5. UH, YOU KNOW, SO YOU KNOW A LOT OF A LOT OF THE FORECASTED INFORMATION IS BASED ON SIMILAR POLITICS AND MONETARY POLICY AND THOSE KINDS OF THINGS SO WE DON'T HAVE A LOT OF GREAT FUTURE INDICATORS. HISTORIES THERE. BUT WHAT HAPPENED YESTERDAY DOESN'T NECESSARILY TELL US WHAT'S GOING TO HAPPEN TOMORROW. AND YOU'RE YOU KNOW YOU'RE SEEING THAT RIGHT NOW AGAIN OVER THE LAST 12 MONTHS, PROBABLY OVER THE NEXT 12 MONTHS. 18 MONTHS, 24 MONTHS WE'RE SEEING SHARP INCREASES IN OPERATING EXPENSES. SHARP INCREASES IN CONSTRUCTION COSTS . YOU KNOW WHEN WE WENT THROUGH THE GREAT RECESSION, YOU KNOW, WE SAW INCREASES, BUT THEN THERE WAS A TIME THAT WE SAW A PULLBACK. AND SO YOU KNOW WHAT WE MAY SEE SHARP INCREASES RIGHT NOW. WE COULD SEE A PULLBACK IN THE NORMALIZATION AND THEN AND AVERAGING AGAIN. YOU KNOW, MY RULE OF THUMB IS, YOU KNOW WE CONTINUE TO PLANET THE AVERAGE AND SO REALLY, THIS IS THIS IS OUR LEAP OF FAITH HERE. UM, YOU KNOW, WE HAVE TO MAKE SOME ASSUMPTIONS ABOUT OPERATING EXPENSES BEYOND 2023 EACH AND EVERY YEAR, BUT THE ONE I WON'T CALL IT CONTROLLABLE. OKAY YOU KNOW, YOU'VE GOT CONTROL, PURELY CONTROLLABLE EXPENSES AND NON CONTROLLED BOOK EXPENSES. BUT BUT CERTAINLY LABOR IS ONE WHERE YOU CAN HAVE AN EFFECT ON THE OVERALL LABOR AND I'LL SPEAK TO THAT 3% SYSTEM WIDE INCREASE. YOU KNOW, OBVIOUSLY WHEN YOU GET TO THE INDIVIDUAL PERSONNEL, THINGS VARY, BUT WE'RE ASSUMING A SYSTEM WIDE INCREASE IN LABOR COSTS OF 3% PER YEAR. WHERE DOES THAT COME FROM? WE KNOW WHEN FLORIDA CAME OUT WITH THE STATE'S MINIMUM WAGE MAN MANDATE STAFF DID INTERNAL ANALYSIS INTERNALLY ABOUT HOW HOW TO PHASE IN THOSE ADJUSTMENTS OVER TIME. THEY DID AN INTERNAL STUDY AND PROVIDED THE CITY COMMISSIONED SOME OPTIONS. ONE OF THOSE OPTIONS WAS A GRADUATED SCALE AT 3% PER YEAR THROUGH 2026, THEN DEPENDING ON HOW THINGS REALLY WORK OUT IN 2027. THERE WAS KIND OF A TRUE UP.

THAT'S MY WORD. OF A 3.3% INCREASE. SO THAT'S WHERE THE LABOR RATE ADJUSTMENT COMES FROM IS IT'S PREDOMINANTLY DRIVEN BY THAT BY THAT STATE'S MINIMUM WAGE MANDATE AND AGAIN ANALYSIS BY CITY STAFF. UM SOME OF THE OTHER COSTS CATEGORIES. YOU KNOW, THEY REALLY DON'T MOVE.

THIS WAY. HEALTH INSURANCE DOESN'T GO UP UNIFORMLY EACH EACH AND EVERY YEAR. YOU MIGHT NOT SEE AN INCREASE IN ONE YEAR, YOU COULD SEE A DECREASE IN PREMIUM COSTS AND THOSE KINDS OF THINGS BUT NINE TIMES OUT OF 10. AFTER TWO OR THREE YEARS, YOU MIGHT SEE A SHARP INCREASE A DOUBLE DIGIT INCREASE AT 10 OR 15. SO, YOU KNOW. TO SOME DEGREE TO I'M ASKING FOR BUYING. BUT TAKE THIS WITH A GRAIN OF SALT. IT'S OUR ABILITY TO TRY AND PLAN THE COST AS BEST WE CAN UTILITY

[00:50:02]

SO AGAIN, AT LEAST IN OUR LEAST IN OUR FIVE YEAR PERIOD. THIS IS A COST INCREASE. LONG TERM, IT'S PROBABLY COST OFFSET AGAIN AS AS STAFF ADDRESSES THERE, THERE AND AGAIN THAT 5% ANNUAL INCREASE IN OPERATING EXPENSES. THESE ARE CAPTURED IN THEM THAT THESE ARE ONE OF THE PRINCIPAL DRIVERS AS WELL AS THOSE INFLATIONARY ASSUMPTIONS. SO ONE OF THE OTHER AREAS. THERE THERE. THERE ARE TWO GENERAL GOVERNMENT TRANSFERS . OKAY THERE'S THE INDIRECT COST ALLOCATION THAT'S INCLUDED IN OPERATING EXPENSE. SO THAT WAS INCLUDED IN IN IN THE PREVIOUS SLIDE ASSUMPTIONS, AND IT DEALS WITH DIRECT COSTS ASSOCIATED WITH FINANCE AND OTHER WITHIN THAT INDIRECT COST ALLOCATION OF EQUATION. THE SECOND TRANSFER, AND WHEN WE WERE THINKING ABOUT FLOW OF FUNDS WITH WITH RETURNING AGREEMENTS, YOU KNOW WE PAY. WE PAY THE OPERATING EXPENSES FIRST. THAT INCLUDES THE INDIRECT COST ALLOCATION. IT'S NOT READING EXPENSE. AND WE PAY THE PRINCIPAL AND INTEREST PAYMENTS ON YOUR DEBT. AND THEN WE HAVE THE TRANSFER TO THE GENERAL FUND. AND SO YOU KNOW AGAIN. THIS IS THIS IS A FORMULA TRANSFER IS BASED ON 6% OF THE GROSS REVENUES AND TODAY'S TERMS FOR THE SANITATION DEPARTMENT IS ABOUT $350,000 PER YEAR ON THE WATER AND WASTEWATER IS ABOUT

[00:55:04]

WE'VE HAD THOSE GOING YES. AND SO AGAIN, WE'RE PLANTING PLAN. I WANTED TO ASK, UM WHEN I GOT HERE. IT WAS AT THE END OF 2017. AND THE, UM THE. THE EXPENSE THAT ALL RIGHT FOR WAS IT FOUR POINT UM, SOMETHING, NATAN THAT YOU WERE BUILDING? YEAH, FIVE. AND THE INCREASE THAT WE DID IN THE UTILITIES. SANITATION. UM, MY WATER BILL. WAS THAT WAS FOR THE BUILDING THAT I THOUGHT PERCENT OF OR THE OR THE AND SO I WANTED TO ASK BECAUSE THE WAY THINGS HAVE INCREASED SO MUCH.

UM, WHY DID WE WANT TO BUILD BACK THEN BECAUSE WE'RE NOW SAYING WE DON'T REALLY NEED TO.

[01:00:01]

OKAY OKAY. THEN I WILL KEEP MY MOUTH SHUT AND LISTEN. I WOULD LIKE JUST ASK SPREAD. DO YOU? THEY'VE BEEN MONITORING THIS PLAN EACH AND SO I BELIEVE THATN RATE STUDY AND GREAT PLANS IN PLACE. TO FUND THAT FACILITY. SO WE GOT IN HERE. THREE. FACILITY WAS CONSTRUCTED. STAFF DID NOT IMPLEMENT. STAFF WENT BACK TO THE INDEX. 2.36% SO THEY STILL WENT WITH THE INDEX TO MAKE SURE REVENUES AND KEEP PACE WITH. THE PROJECT WAS BY YEAR FOUR. MY WORDS, THE CONVERSATION WAS KICKED UP AGAIN ABOUT INVESTING IN THAT FACILITY AND WE STARTED REHAB. 5% SO MY POINT IS PLANS CHANGE. STAFF REACT. WHEN THEY GOT THE NOD THAT THEY NEED TO START PLAYING. DO WITH THE IDEA THAT WE'RE GOING TO TRUE EVERY. THANK YOU. YES, SIR. THANK YOU. THE ANNUAL SUNDAY ABOUT 5.5 5. I THINK WE GO BACK TO THE STRATEGY. WHEREVER REPLACEMENT COST WAS ABOUT THREE. AGAIN SIZEABLE INCREASES IN PART DUE TO THE TEAM RIGHT NOW. REFLECTION, REPLACING THE SAME NUMBER. CUTS AND STAGGERED. WATER AND WASTEWATER. SO 47% ALMOST HALF OF THAT. 26 20.

AGAIN YOU'LL SEE THIS CABBAGE SOMEWHERE ELSE. $5 MILLION. FROM SOMEWHERE. PERSON IN THE SAME STATE STATE OPERATION. ARREST MON. IT'S A SMALL PORTION ONE AS MUCH AS YOU WANT. UNFORTUNATE.

THE PRINCIPLE IS GOING. PROCESS. I'LL BE HAVING WATER AVAILABILITY. YESTERDAY. SO THE WATER AVAILABILITY FEES. THE CONCEPT OF AN IMPACT. THESE ARE THE CHARGES. YOU DEVELOP. BASED ON THE COST OF THE EXISTING INFRASTRUCTURE THAT KIM SHOWED THAT EXCESS CAPACITY IN CERTAINS SO WE COLLECT THAT MONEY. USE THAT MONEY. MORE FORTUNATE THAT MONEY TO HELP OFFSET. THEN THERE'S ALSO SOME OTHER AREAS THAT WE USE IN THIS WAS AGAIN THIS WAS WE FEEL ABOUT IT, BUT IT'S DOING THIS TIME. HALF MILLION TWO. BY THE SERVICE. AND RESILIENCE, SO IT. OPERATING.

50% ACCOUNT. THREE NEW PROJECTS WITH THE WHITEWATER SYSTEM. AT LEAST THEY'RE NEW IN THIS STUDY.

PRESENTATION LAST YEAR. TO MAKE THE CITY COMMISSION. SEVEN. FACE. IN TEXT 13% OF THE PLAN.

WE'VE GOT THE GRINDER SYSTEMS FOR THE SENATE. BECAUSE YOU WERE CONVERSION. THAT'S OVER FIVE.

[01:05:05]

THIS IS THE AREA WHERE WE HAD PROBLEMS IN 2000. OKAY, SO CASH IN. RECENTLY HAD FORECAST. THE SYSTEM. CAPTAIN. SO WE HAD ALL THE MONEY SITTING IN THE BANK. SO WHAT IS THE LIVING? RING ITSELF. ANY AGREEMENT. WHEN, WHEN? WHEN? PAY OFF. ONE. WE HAVE TO HAVE AT LEAST 25. IN ADDITION TO HAVE TO SET ASIDE EACH AND EVERY YEAR. 5% AND WE CAN EXTEND IT ON CAPITOL. THE GOAL IS NOT TO STOP CALL A BUNCH OF CASH. TRANSFER. SO IF YOU DON'T HAVE 25 IF YOU DON'T HAVE DEBT, YOU CAN'T PAY 25% TOWARDS THAT. IT'S NOT THE IDEA. WELL. WE HAVE TO ENCOURAGE THAT TARGET. YOU MAKE. ABSOLUTELY 25% TARGET HELPS YOU MAKE THE 5% TREATS. THIS YEAR. THE RESPONSIBLE YOU SEE COMMISSION. AND SAYS, OKAY, WE MADE IT 25. YOU GOT THE CASH FLOW. FOR THE SERVICE SIDE JAPANESE 5% OF ITS REVENUES POINT, CAPTAIN. AND JOLIE LOSE IT IN FOR WHEN HE SAYS. THEY'LL SPEND THIS ONE. WE MANAGE ABOUT. I TOOK TO MY POINT IS. THAT IS OUT THERE. WE'VE GOT TO. YES. C 5. AGAIN GET BACK TO THE CASH IS YOUR SITUATION. I CAN'T. I NEED TO SEE THAT VIRUS AND I JUST THIS IS EDUCATION. IS THAT SORT OF THE SUMMARY? I DON'T KNOW IF I'M GETTING AHEAD OF THE GOOD BOY HERE, BUT IS THAT SORT OF THE SUMMARY WITH WITH THE RATE INCREASE? FOR WATER IS THAT COST FOR THE R O. TREATMENT IS BASICALLY THREE X, BUT IT WAS ANTICIPATED. COST THE COST FOR THE R O WATER TREATMENT WAS BASICALLY TWO OR THREE X WHAT IT WAS ORIGINALLY ANTICIPATED, SO WE NEED TO RATE INCREASE TO COVER THE DIFFERENCE. ABSOLUTELY AND WE NEVER BEEN TO THAT MONEY. MAKING A LOT OF US SOMETHING HERE. WHAT'S THE ISSUE? THE REAL NICE SO THAT ONE IS PACKED. WE HAVE TO THE SOONER. I KNOW YOU'RE PROJECTING OUT FIVE YEARS, AND THIS IS THEIR SENSE THAT AFTER THE FIVE YEARS WITH THIS PLAN AND THE RATE INCREASE THAT WE COULD ROLL, WE COULD GO BACK TO INDEX OR THAT WE'RE JUST GOING TO CONTINUE. THE INCREASE. LAST YEAR. THE YEAR AGO BEFORE WE WENT THROUGH ALL THIS TROUBLE WE WERE HOPING TO. I CAN I CAN TELL YOU FOR. ESPECIALLY FOR WATER AND WASTEWATER. BETWEEN 2022 2023. DIDN'T FOCUS ON YOU.

STAFFING REQUIREMENTS TAKE PLACE. ALL OF THE BRAIN. THE YEAR FROM. THAT IS RIGHT. SO THE INDEX HASN'T CAUGHT UP WITH REALITY YET, BUT I WILL SAY, I WILL SAY WITH WHICH. UNITED

[01:10:01]

THREE LANDS ARE ASSUMED HERE. YOU SIGNED THE AGREEMENT. INTEREST RATE IS ACTUALLY ALMOST ALMOST ZERO. UM, I WOULD. I WOULD TELL YOU CURRENT RATE FOR WATER. ONE OF THE REASONS TO CITY GOT A 10.4% INTEREST RATE I SUSPECT IS THE IS THE QUALITY PURPOSE OF THE PROJECT. CASES TAKING OUT OF THE SHALLOW WELLS. GOOD DEGREE WHAT WILL ALWAYS HAVE THE LIME SALT? THAT'S RIGHT. YOU'RE GOING TO HAVE TO BLEND THE RESOURCES IN ORDER TO MAINTAIN THE INTEGRITY.

DEMONSTRATE THAT BAR. SO YOU'RE ALWAYS GONNA HAVE A LINE SOFT. TO SOME OF THE. STARTING AROUND 2024. SO WE HAVE THIS IS ONE OF THE REASONS WERE FRIENDLY, MAKE SMALLER ADJUSTMENTS TODAY, SO THAT 5.3 MIL. SO AGAIN. 21 MILLION. COMBINATION OF GRAMPS STATE OF THESE ARE THINGS THAT WE KNOW THAT STATE APPROPRIATION. GET MISSING USE OF THE WATER. OUR COLORS IMPACT THESE DEVELOPMENT. SOME OF THE NOT USED FOR THIS PROJECT. IT'S ALREADY IN THE BANK. SOME OF THE MONEY THAT. THAT'S WHAT I WAS GONNA ASK IF WHAT YOU'VE IF YOU'RE FACTORING IN WHAT'S COMING ONLINE. WAS COMING ON LINE AGAIN. IT'S A 1% GROWTH RATE IN THAT FACTOR. AND YOU CONSERVATIVES WHAT YOU WHAT YOU HAVE FACTORED IN, IS ONLY AT 1% GROWTH RATE. IT'S NOT BASED ON

[01:15:04]

YOU BROUGHT US HERE IN 83 WHEN MY DAD WORKED FOR THE CHAMBER OF COMMERCE. ABS AND FLOODS. I'M GONNA BE A LITTLE BIT CAREFUL. I CAN TELL YOU THE AMOUNT THAT WE COMMITTED TO THE ORAL PLANT.

MORNING WAS APPROPRIATED YEARS AGO BY THE SENATE. IT'S IN THE BANK. THERE'S SOME CONSERVATISM THAT WE'RE GOING TO APPLY. TO THE SECOND. SECOND, YES OR LONDON. PROJECTS APPROVED. UM SO WHEN THINGS STAY WITH ALL THE SO WHY IS THE CITY YOU LIKE. WANTED SOMETIMES INTRODUCES OPPORTUNITIES FOR GRANTS AND OTHER APPROPRIATIONS THAT FORGIVENESS. LITTLE HIGH INTEREST RATE MINDS, SORT OF WATER. BECAUSE BASE 60% ABOUT 60. GOING ON RIGHT RIGHT NOW IS AROUND TO HEAR. WASTE WATER. WHAT IS EVEN LESS THAN THAT? I THINK IT'S ABOUT 40. THE STATED RATE FOR WASTEWATER, RIGHT? THERE'S SOME INTERESTING. AND THOSE ARE STANDARD RATES BEFORE THEY LOOK AT THE PROJECT AND LOOK AT OFTEN TIMES GET DISCOUNTS. GET LOW INTEREST RATE. I'M SORRY I WAS GOING TO ASK YOU THAT QUESTION. SO THAT SRF THEY LOOK AT THE BORROWERS THEY'RE LOOKING AT THE MUNICIPALITY IS JUST LIKE THE MUNICIPAL BOND MARKET PLACE DOES ABSOLUTELY BASED ON THAT. WELL, I WOULD LIKE TO COMPLIMENT THE CITY THEN. FOR HAVING OUR FINANCES AND SUCH AS SOUND STATE. I MEAN, THAT IS BASICALLY FREE MONEY AT THOSE RATES AND, UH, YOU KNOW, YOU KNOW, WELL DONE TO PRESENT, SUCH AS SOUND FINANCIAL PICTURE THAT WE'RE ABLE TO TAKE ADVANTAGE OF THAT. AT SUCH LOW RATES AGAIN PRACTICALLY GO FROM RIGHT? INTO STRENGTH. THE OTHER THE OTHER ADVANTAGE TODAY. IS YES. WITH THE CASH FOR? I DON'T THINK I'M JUST THINKING OF HIM. UH HUH. BUT FRANKLY REIMBURSEMENT BECAUSE IT IS A REIMBURSEMENT.

DESTRUCTION PROCESS. AND SO YOU DRAW AS THE NEED OF SO IT'S SOMETHING MORE THAN HAPPENED IN EITHER YOU HAVE BETTER. GRANTS OR SOMETHING TO THAT. YOU DON'T HAVE TO BORROW YOU DON'T HAVE TO. YOU DON'T HAVE TO. SO AGAIN, YOU'RE DRAWING IT OVER. YOU LOOK AT A BANK. YOU TAKE ALL THE RISK UP FRONT. YOU ALSO OFTEN TIMES, JAPAN. YOU'RE PAYING. BUT SOMEHOW CAPITALIZING INTEREST THAT MUCH GREATER NOW IN THOSE SITUATIONS, YOU MIGHT BE ABLE PICK IT UP. 20 YEARS. BETWEEN THE LOWER RATE AND SHORTER. HERE BROUGHT CASH. ABOUT THE SAME THERE'S. THE LAST BENEFIT.

PHONE. SOMEONE. IS WHAT LEAGUE? HMM? AFTER YOUR SINGER SO AGAIN, IT TAKES. YOU'RE GREAT, SO SOME OF THE THINGS THAT CAUSE A RATE INCREASE. FOR CASH. AND SO I'M MOVING PAYMENT. THIS IS GORDON.

ABOUT MAKING RECOGNITION RECOMMENDATIONS TO MAKE THEM PUT YOUR HEAD WE FIND WILL IMPROVE.

BY THE FALL. MINIMUM. THAT'S FINE. SO AGAIN, OR A WELL NUMBER TWO IS THE SECRETARY. ONE MILLION. AND ASSUMING BORROWING COSTS PAPER. WATER IMPACT. AGAIN. FUTURE GROWTH. WATER MON,

[01:20:09]

AT THE SAME PURSUING PRIVATE. UM YOU KNOW, IF J. WE'RE HERE, J WOULD TELL YOU OCCASIONS AND MAYBE AN OPPORTUNITY. BUT THAT'S THAT MAY BE ENOUGH. HE TOLD US THAT BEST TO PLAN CONSERVATIVE MEN 15. THREE AND THREE QUARTER ENTRY TO IF IT WAS A 20 YEAR LONG IT'S GONNA BE A HIGHER INTEREST RATE. SO THERE SO THERE ARE THIS ISN'T ONE DIMENSIONAL. HE WAS SANITATION SYSTEM. BEGIN BECAUSE THE SEED THAT BEGAN PLACES TO 1017 RATING PLACES. HOLD UP SUMMARIES OR HAVE SOME RESERVES IN PLACE. WERE ABLE TO APPLY $2.5 MILLION TOWARDS THAT. WELL. SO WE'VE ASSUMED PROJECT.

YOU HEAR ABOUT MILLION. BEGINNING IN 2026 TO COMPARE THAT TO OUR FOR AND A HALF MILLION DOLLARS. YOUR PAYMENT WILL BE ABOUT A HALF. SO YOU CAN SEE CLEARLY, THIS IS ABOUT SENATOR. GREAT. YEAH. $6 MILLION. WE HAVE ABOUT 2.2 MILLION A LOT OF THAT, CAPTAIN.

WE COULD BORROW YOUR MILLION DOLLARS. IT'S A LOT CLOSER THANT OF $4 MILLION AND WE'VE BEEN

[01:25:04]

GOOD CHOICES. AND I'M SURE HER STAFFS. BUT YOU A LOT. MORE ALIVE. IN THIS STUDY. BARNES.

GRANTED INTEREST RATES OF CHANGE. VERSUS. FIVE NOW YOU CAN SEE THAT I JUST JAY DIDN'T TELL ME. YOU KNOW, WE'RE MOVING FROM A $10 MILLION THERE'S SOMETHING CLOSER TO FOUR. YOU KNOW AGAIN, THANKS. MAKE INVESTMENTS TO RIGHT? AND SO THAT'S MY ASSUMPTION. THAT IT CAN'T BE.

AND OVER SLIGHTLY TO 10. YES, SLIGHTLY. GET DOWN THE OTHER QUALIFIERS. WE WANT TO TRY AND.

THE PROJECT NEXT YEAR AND THE YEAR YOU WANT. SO THAT'S THE TWO YEARS OF CAPITALIZED INTEREST. I DID HAVE A COST. YEAH. INTO YOU START PAYING IT A YEAR. THAT'S A LOT OF INTEREST THAT 10 YEARS AND. THE IT'S JUST SEEMS LIKE A LOT OF INTEREST ON THE 10 YEAR. AT 3.5. YEAH, TELL YOU LAST WEEK . I KNOW THINGS HAVE GONE UP FOR FREE 20 YEAR LOAN I WAS USING 4.5% THEY TOLD ME THAT. AND 5.

20 YEARS OLD. CONTRARY, HE HAS SOME CONTINGENCY. BUT YOU CAN SEE THAT 5% IS GREATER. FOR THIS, BUT YOU KNOW, JAY GAVE ME THREE. AND THREE QUARTERS. I'M HOPING. YOU HAVEN'T IN A TRADITIONAL SENSE, LIKE NINE. 3.5% SO GREAT. WOULD BE GREAT FOR YEAH, 1980. HMM. DOUBLE DIGIT. SO YOU CAN LOOK INTO SOME OF THESE CONSIDERATIONS. I DON'T WANT TO BE TOO RIGHT. YOU KNOW.

DAYS OF. TAKE CARE OF RIGHT AWAY. IT'S A FACE. THEN AGAIN, CITIES REQUIREMENTS 90. FOR BRANCH ADEQUATE DEATH. THE OPERATING NEEDS AND CERTAINLY YOU KNOW? HURRICANES. LIBERTY SEVEN. SINCE THAT TIME. SO THEY HAPPENED. THEY HAVE FREQUENT UMD TRACK. YES THEY DID RIGHT AT US AND REMINDED ME OF ANDREW. WHEN YOU KNOW WHAT WAS THAT 92. 21. JOKES, TOO. HURRICANE KID CONSISTED OF WEIGHT WATCHERS REJECTS AND I. AND YOU KNOW HURRICANE CULTURE WE DO WRITING AGAIN. AND WE FOUND OUT WHAT WAS IN THE CABINET AFTER ANDREW FOR 20 GET HIT COME UP THE COAST.

YEAH BUTTERSCOTCH, SO HE AIN'T LETTING SCOTT SPLITTING IT YET HURRICANE KID EVERY YEAR. SORRY.

IT SHOULD BE IMPORTANT. I JUST CAN I JUST FOLLOW UP ON LIKE WHAT? COMMISSIONER BRUNER WAS ASKING, BECAUSE MAYBE UNDERSTAND THE CONFUSION. YOU WERE ASKING ABOUT THIS. 2024

[01:30:07]

IT'S ACTUALLY 6.4. IT WAS SICK. YEAH. 4.2 MILLION OVER 10 YEARS IS COSTING US WELL, YOU KNOW, THAT'S $7 MILLION WE'RE PAYING ON THAT 4.2. IT'S EASY. IT IS A LOT, BUT THAT'S WHAT 3.5 I MEAN, IF YOU LOOK AT IT AND THE BASE CASE. WE'RE GOING 10.9 MILLION AND PAYING 1.2 MILLION ANNUAL AND THAT'S WHAT THE POINT I WAS MAKING ABOUT HOW CHEAP THAT OTHER MONEY WAS. WE'RE GOING 21.3 MILLION AND PAIN ACTUALLY LAST A YEAR ON THAT ONE. YEAH, IT SEEMS LIKE A LOW INTEREST RATE, RIGHT? YEAH. COURSE. SUFFERING OF RESULTS. WE WANT TO DEAL WITH WATER. I'M GOING TO TAKE A FIVE MINUTE BREAK. YEAH WE CAN DO. DON'T WE WENT TO GET WATER? LET'S JUST TAKE A FIVE MINUTE BREAK. YOU'VE BEEN SPEAKING FOR AN HOUR AND A HALF GAME? YEAH.

[01:42:06]

[01:42:13]

SCENARIO. PROVISION IN THIS FIVE YEAR. 150 YEAR STUDY PERIOD. YOU CAN SEE THE TOP ARE THERE THAT'S KIND OF IT'S REALLY LIKE A KNOWLEDGE GREEN. IS THAT STEP? YEAH SERVICE PAID 2028 FOR THE NEXT QUESTION. TECHNICALLY BUSINESS. WHAT I'D LIKE TO HIGHLIGHT FIVE MINUTES. GOOD REVENUE SHORTFALL USEFUL IS ESTIMATED AT 4.2 MILLION. UNIVERSITY ANNUAL SO BEGINNING WE MADE ADJUSTMENTS FOR FIVE YEARS. WOULD BE SHORT 4.2. FOR YEAR BY THAT JUST GIVES ROUGHLY 31. RIGHT? COULD YOU SAY THAT AGAIN? LITTLE BIT OF FIVE YEAR. CAN'T ASSUMING WE PASSED ON NO RATE ADJUSTMENT, NOT AN INDEX. BUT IT'S GOOD TO RECAP HERE. THAT FIVE YEAR PERIOD WE KEPT MHM. FROM THE CUSTOMERS. MAKE IT SHORT. QUALIFIED FIFTH YEAR IS 4.2 MILLION. FROM WATER

[01:45:06]

TRADITION, ABSOLUTELY. RACE STUDY. 4.53% HOW OFTEN DOES THE INDEX CHANGE? EVERY YEAR.

THERE'S SOMETHING DISSIPATION THAT WE MAY JUST BE AHEAD OF THE CURVE ON THE INDEX. MISSION BUDGET OFFICE. SO. THAT'S RIGHT NOW, BUT 2024 PROJECTED AS QUITE 3, RIGHT? UM INDEX AFTER THAT GOES BACK TO TWO. I BELIEVE. LOOK AT THE LAKE. INFLATION. MONITORED. NEGOTIATE A GREAT BENCHMARK. UM I CAN'T TELL YOU YEAH, ONLY LIKE ONCE IN THE LAST 10 YEARS. MAYBE IT WAS A SURPRISE TO MANY THAT KEEP IN MIND THAT I WAS. 0.7. I THINK 12 MONTHS WAS PETE 80 90% 99. UM.

SO AGAIN. THIS IS OUR THIS IS OUR LEVEL OF STRATEGY. TRYING TO SELL ITS NOSE. 19 VOTERS OR. YOU CAN SEE THE DAYS OF RESERVES THAT ARE DECLINING OVER ONE OF THE REASONS FOR DOING THAT. IT IS AGAIN. THE LANDSCAPE CHANGES FROM. HAVE SOME RESERVES TO ADDRESS. NEW JERSEY REACTION AND ALL OF A SUDDEN 5% RATE INCREASES. YOU STILL NEED TO MANAGE IT. WE'RE STILL. THIS IS CALLED THIS LEVEL. REQUEST WILL BE $4. 51 ONCE INCREASE. THIS. THIS IS WATER WASTEWATER. AND IT'S FOR A CUSTOMER. YOU DON'T SEE THE 7000. YES, IT'S HARD. THE SYSTEM, NOT NECESSARILY AN AVERAGE. I'LL TELL YOU. THE PERCENTAGE INCREASES ARE TRUE. SO WHILE EVERY CUSTOMER IN THIS EQUATION. PERCENTAGE INCREASE. MORE THAN OUR INDEX ADJUSTED. AND SO OFTENTIMES CUSTOM. IS

[01:50:08]

ACTUALLY FLY. FIRST FOREMOST REPORT. THERE'S 70. INTO THE SYSTEM. UTILITY, GET GRAMPS. ONE OF THE SYSTEM OF THE SIZE OF IT, YOU KNOW, TO SHOW VIEW. HOW OLD IS YOUR SYSTEM? YES. EXCESS CAPACITY THAT YOU. TRAINED AND COMPASSION. AND THERE'S SOME FORM UPSET. THE CITY.

UNIVERSITY. I DID. DISCUSSION. FLYING ABOUT. CONSULTANTS ACROSS THE CHILDREN. YEAH. I HOPE YOU WIN EVERY ARGUMENT. HOW DO WE HOPE YOU DO? I HOPE YOU DO. OBVIOUSLY MARK MARTIN COUNTY.

THIS IS TRUMP. 100 ALSO SPREAD ABOUT THE AVERAGE OF THE SERVICE. BUT IF THE INDEXES. AND THAT'S THE $4.51 PERCENT. AGAIN. THIS IS THE 7000 GALLONS. RESIDENTIAL BILL, NOT GETTING PICKED UP. APPARENTLY THERE'S A BUNCH OF PEOPLE ONLINE LIKE 5000 PEOPLE ONLINE WATCHING YOU AND THEY CAN'T HEAR YOU. OKAY I'M NOT ON FACEBOOK. ONE PERSON DURING COVID. THEY MADE ME DO A CITY OF TAMPA ONE. THEY RESERVED THE BIG CONFERENCE ROOM. PEOPLE WERE GOING TO COME. WE COULD HAVE HAD 2000. PEOPLE IN THEIR THREE PEOPLE SHOWED UP. TWO OF THEM WERE MEN. HENRY THOMAS. SO UH, BUT THEY MADE US DO FACEBOOK LIVE AND 13. PEOPLE WERE ON FACEBOOK LIVE. THAT'S REAL INTERESTING TO DO THAT. THIS COMPARISON? YES DOES IT TAKE INTO ACCOUNT RATE INCREASES THAT THE OTHER GOVERNMENT ENTITIES MAY HAVE DONE THIS YEAR? I'M GLAD YOU ASKED THAT. CITY MANAGER. LET ME GO BACK. THE ANSWER IS NO. UM SO REAL QUICKLY HERE. OKAY NOW MARTIN MARTIN COUNTY. THEY DO FALL IN INDEX USUALLY. TYPICALLY THEY DID PREPARE RECENT RATE STUDIES, YOU KNOW, WITHIN OUR FIRM, ONE OF THOSE WAS SANITATION. UM YOU KNOW, I DON'T I DON'T WANT TO SPEAK FOR THE COUNTY. MY UNDERSTANDING, LIKE ON SANITATION. WHEN WE GET WHEN WE GET TO THAT IS THERE ARE RATE NEEDS OUT THERE. JUST LIKE THE COUNTY COMMISSION. THEY HAVE CHOICES. JUST JUST LIKE Y'ALL DO. UM I THINK I THINK MY UNDERSTANDING IS THEY HAVE TIME BEFORE THEY HAVE TO PULL THAT TRIGGER. SO I ANTICIPATE AT SOME POINT IN THE FUTURE, MARTIN COUNTY IS GOING TO HAVE TO ADJUST THEIR SANITATION RATES, WATER AND SEWER. THEY DO TEND TO FOLLOW AN INDEX. THERE COULD BE A TIME WHERE THEY HAVE TO DO SOMETHING DIFFERENT, BUT THEY

[01:55:02]

THE SURVEY DATE WAS JULY 2022 THE REASON IT'S JULY. UH HUH. CITY OF FORT PIERCE IS MY HOMETOWN. I DON'T KNOW IF THEY'RE NOW, BUT BUT THEY'RE ALSO A CLIENT. SO I CONSULT FOR FOUR PEERS. UM IF YOU'VE READ A LOT ABOUT WHAT THEY'RE DOING RIGHT NOW, THEY'RE LOOKING TO MOVE THEIR WASTEWATER PLANT. UM THEY HAD A NEED FOR BASE RATE INCREASES JUST TO COVER THEIR CURRENT COSTS, BUT THEY ALSO IMPLEMENTED RATES ON THE WATER AND WASTEWATER SIDE TO FUND THE MOVEMENT OF THAT PLANT. AND IN JULY, THEY ADOPTED A 10% WATER AND WASTEWATER INCREASE AS WELL AS ELECTRIC AND GAS. UM, TO FUND A PORTION OF THAT PROJECT. WHAT'S NOT IN THIS COMPARISON IN OCTOBER, FORT PIERCE IS ALREADY ADOPTED ANOTHER 10% WATER AND WASTEWATER INCREASE. AND OBVIOUSLY THAT'S GOING TO AFFECT THIS. THIS SURVEY AVERAGE. UM MAY I JUMP IN FOR A SECOND? UH AND I DON'T THINK, DAVID. MAYBE YOU KNOW THE ANSWER. THIS MARTIN COUNTY HASN'T STARTED ANY REVERSE OSMOSIS UPGRADES OR OR ANYTHING YOU HAVE THEY NO, BUT THEY DO. DO IT GO DOWN TO THE FLOOR AND AQUIFER I THOUGHT AND SOME OF THEM THEY'RE LOOKING TO DRILL SOME NEW FLORIDA AND WELLS. UM UPCOMING IN THE NEXT, I THINK YOU KNOW, 2 TO 5 YEARS, ONE OF THEM BEING ON OUR FIRE STATION NUMBER THREE SITE WE'RE WORKING WITH, YOU KNOW SAM ON CITING THAT WELL FOR THEM, SO YEAH, THEY CURRENTLY DO. YOU KNOW, HAVE WATER FROM THE FLORIDA AND ARE LOOKING TO DRILL SOME ADDITIONAL WELLS SO THEY'LL NEED TO BE LOOKING AT PROBABLY A REVERSE OSMOSIS SYSTEM. SOON AS WELL. I WOULD THINK THAT THEY HAVE AN EXISTING SYSTEM. UM, THEY'RE JUST LOOKING AT YEAH, THEY EXPAND IT. AND, YOU KNOW, KIND OF WHAT WE'RE DOING IS SLOWLY GET OFF THIS OFFICIAL DUE TO YOU KNOW IT'S RELIABILITY AND GO TO A MORE RELIABLE. YEAH SO THEY'RE GONNA END UP HAVING THE PRIOR JUST THEIR RICHEST COVER THOSE ADDITIONAL CAPITAL COST. AND YOU KNOW TO EXPAND ON THIS A LITTLE BIT. SO AS SPORT, PIERCE IMPLEMENTS THOSE ADJUSTMENTS THAT HAVE BEEN ADOPTED AND FOUR PIERCES ISSUED BONDS IN ORDER TO THAT'S WHY THEY HAD TO PUT THE RATES IN PLACE. ST LUCIE COUNTY WHO'S AT THE RIGHT PART OF THIS CHART CHART IS A IS A LARGE USER OF BOLT CUSTOMER. FORT PIERCE.

AND SO THEY WERE GOING TO HAVE TO PASS ON THOSE COSTS INCREASES AS WELL AS THEY GET IMPLEMENTED, FORCING LUCY I BELIEVE THEY TYPICALLY AT LEAST FALL IN INDEX THEY HAVEN'T AND I THINK THEY HAVE AN ANNUAL INDEX AND PROVISIONS SO THEY MAY BE ADJUSTING RATES FOR 2023. YOU KNOW THE OTHERS ON THE FLOOR FOR END OUT IN THE INDIAN RIVER COUNTY. THEY DO STUDIES PERIODICALLY, UM YOU KNOW, I CAN'T REALLY SPEAK TO WHY THEIR RATES ARE SO LAW LOW. I SUSPECT IT HAS TO DO WITH THE AMOUNT OF MONEY THAT THEY'RE REINVESTING IN THE SYSTEM AT THE CURRENT TIME. UM SO THESE THESE WILL CHANGE EVEN THOUGH I KNEW ABOUT FORT PIERCE'S INCREASE, ONE OF THE REASONS I DON'T PUT PERSPECTIVE AMOUNTS IN HERE IS IF I CAN'T DO IT FOR ALL OF THEM, THEN I REALLY DON'T WANT TO DO IT FOR ANY OF THEM. YOU KNOW, I DON'T WANT THE PERCEPTION THAT THAT I KNOW EXACTLY WHAT EVERYBODY IS DOING IN AGAIN AT THE END OF THE DAY, IT'S HOME RULE. EVEN IF THE COMMISSION IS ADOPTED A RATE SCHEDULE, THEY COULD ALWAYS COME BACK AND AMEND THAT AT ANY TIME. SO AGAIN. THIS IS JUST A CURRENT COMPARISON. NOT NOT NOT INTENDED TO BE A REPORT CARD. UM FOR SANITATION NOW HIGHLIGHTED THIS AS THE BASE CASE. UM I DIDN'T. I DID NOT PUT THE ALTERNATIVE IN HERE. UM BUT UNDER THE BASE CASE WITH THE BUT THE $12.5 MILLION IMPROVEMENT FOR A NEW FACILITY. UH YOU KNOW, THIS IS THE RIGHT PATH THAT THAT WE HAVE, UM, AGAIN UNDER UNDER THAT SCENARIO. UH THIS ASSUMES THAT THE REVENUES WOULD STAY AT THE 2022 LEVEL, SO THIS IS REVENUES PLUS GROWTH UNDER OUR CURRENT RATES IF WE BUILT THE NEW FACILITY, BUT WE DIDN'T ADJUST RATES FOR SANITATION BY THE LAST YEAR OF THE STUDY PERIOD, THE SHORTFALL WOULD BE $2 MILLION PER YEAR. DEFICIENCY WHICH IS ABOUT 34% OF THE SANITATION RATES, SO WATER AND WASTEWATER UNDER THEIR CASE ABOUT 31% SHORTFALL BY THE FIFTH YEAR SANITATION UNDER THE BASE CASE, IT'S ABOUT A LITTLE MORE THAN 30% SHORTFALL. IF WE ELECTED THE ALTERNATIVE, WHICH

[02:00:01]

THERE'S A GREAT RESOLUTION BASED ON A 4.53% INDEX. BUT YOU CAN SEE THAT THE SUBSEQUENT INCREASES UNDER THE BASE CASE OR JUST MORE THAN 6. UM FOUR AND A QUARTER PERCENT UNDER THE ALTERNATIVE AGAIN, THE OVERALL OPERATING COSTS FOR THIS SYSTEM ARE GROWING AT 5.9% PER YEAR. SO AGAIN, ONE OF THE REASONS YOU SEE 6.25 IS THE FACT THAT WE'RE ONLY RECOMMENDING 4.53. IN THE FIRST YEAR, AND LIKE I SAID AT THE ONSET WHEN WE STARTED THIS SECTION IF WE WERE BACK IN JULY I WOULDN'T NECESSARILY BE RECOMMENDING 4.53% I WOULDN'T RECOMMEND THE INDEX PROBABLY SAY LET'S DO SOMETHING A LITTLE BIT MORE AND TRY TO FLATLINE. THOSE 6% INCREASES AND MAYBE WE'RE IN 5.5. RIGHT BECAUSE I WANT TO TRY TO FLATTEN IT. UM LIKEWISE, JUST LIKE WATER AND SEWER. YOU CAN SEE WE'RE SPENDING DOWN THE RESERVES WERE USING THOSE RESERVES TO REPLACE FLEET. AND TO MEET OUR OTHER NEEDS OF THE SYSTEM WHILE PHASING IN THOSE RATE INCREASES, SO WHAT HAPPENS IS YOU KNOW IF WE DELAY A RATE INCREASE AT ALL? YOU KNOW, WE'RE GOING TO LOSE RESERVES AND WE'RE GONNA LOSE FLEXIBILITY TO PHASE IN ADJUSTMENTS OVER TIME, ULTIMATELY, A RESULT IN A IN A HIGHER RATE ADJUSTMENT. UM YOU KNOW, WE'RE ALMOST TO THE END, I'LL BE AND I'LL BE GLAD TO TAKE MORE QUESTIONS. UM THE SURVEY PERCENT FOR SOLID WAYS FOR SANITATION. AGAIN. THIS WAS PREPARED IN MAY. UM YOU CAN SEE CITY OF STEWART AGAIN. IT'S NOT A REPORT CARD. YOU'RE AT THE LOWEST END OF THIS REGIONAL SURVEY. YOUR CURRENT CHARGES 21 15. IF THE INDEX WERE APPROVED, THIS BILL WOULD GO UP 96 CENTS. AH OR 4.53% TO $22.11 PER MONTH. YOU CAN SEE THE SURVEY AVERAGES . 27 43. STILL AT THE HIGHER RATE AT THE PROPOSED RATE FOR 2023, YOU'RE ALMOST 20% LESS THAN THE SURVEY AVERAGE. AND YOU CAN SEE WE'VE GOT ST LUCIE COUNTY, FORT PIERCE, MARTIN COUNTY AND CITY OF PORTS IN FIVE YEARS AND NEITHER ONE OF THEM, UH WE'RE EITHER JUST ABOVE OR JUST BELOW THE CURRENT AVERAGE FIVE YEARS FROM NOW, ABSOLUTELY EITHER CHOICE AND CONSIDERABLY LESS THAN REPORT TODAY. LUCY MARTIN COUNTY ALL THE WAY AROUND RIGHT AND AGAIN. I CAN'T TELL YOU WHAT THEIR PRESSURES ARE. I HAVE SEEN A STUDY FOR MARTIN COUNTY. I KNOW MARTIN COUNTY HAS PRESSURE THEY HAVE RESERVES, TOO. AND SO THEY HAVE SOME FLEXIBILITY IN TERMS OF WHEN THEY NEED TO PULL THE TRIGGER ON THAT, UM, I THINK THE CONCLUSION SLIDE IS PRETTY BRIEF. UM AND PROBABLY NOT SURPRISING. UH YOU KNOW, THE CURRENT THE CURRENT RATES OVER THE FIVE YEAR PERIOD ARE NOT GOING TO BE ADDED. THE POSITIVE SIDE OF THAT BECAUSE WE HAVE A GOOD, STRONG, HEALTHY BALANCE SHEET TODAY AND YOU KNOW , OUR STRATEGY IS WE WANT WE WANT TO MAINTAIN THAT WE HAVE THOSE RESERVES. THEY'RE THERE FOR A PURPOSE. THE AMOUNT THAT'S ABOVE THE 180 DAYS. WE'RE GONNA APPLY IT TO CAPITAL FIRST, YOU KNOW, YOU FEEL SECURE THAT WE'RE IN GOOD SHAPE. YES AND SO. SO,

[02:05:09]

AGAIN STAFF IS GOING TO CONTINUE TO MONITOR THIS. UM YOU KNOW TIM , TIM AND HIS STAFF CHECK IN WITH THIS REGULARLY ALMOST ANNUALLY, ESPECIALLY WHEN THERE'S CHANGES IN THE PLAN. SO IF SOMETHING SIGNIFICANTLY HAPPENS, THEY'RE GOING TO BE SPEAKING WITH YOU. THAT'S ONE OF THE REASONS WE DID THOSE BUDGET LETTERS. YOU KNOW, WE KEPT YOU INFORMED THAT IT WAS PROJECT COSTS INCREASED. WE FELT LIKE THAT THE WHAT WE HAD PLANNED TO IMPLEMENT THROUGH 2022 WOULD GET YOU TO THAT POINT. WE KNEW THERE WAS A DEFICIENCY, BUT WE DIDN'T THINK THAT IT REQUIRED ADDITIONAL ACTION SOONER. AGAIN CONSIDERING WHAT THE RESERVES THAT WE HAVE IN THE BANK OF THIS FRONT POINT POINT, UM MISTER MR MAYOR THAT CONCLUDES MY PRESENTATION. BUT I'M HAPPY TO TAKE QUESTIONS. WHAT? I THINK WE'VE HAD QUITE A FEW QUESTIONS. SURE, WE HAVE A FEW MORE, UH AND DAVE. I WAS THINKING THAT WE WOULD JUST START LOOKING AT EACH ONE OF THESE FIRST. THE WATER AND WASTEWATER RATES FIRST. AND THEN, UH, LET'S SEE IF WE CAN COME TO A CONSENSUS ON THAT AND THEN MOVED TO THE SANITATION. IF THAT'S OKAY WITH YOU, AND THEN WE'LL KNOW IF ONE RESOLUTION WHEN WE ONCE WE ONCE WE GET EVERYTHING, THEN WE'LL GET A MOTION THAT COMBINED AND WE GET TO THE SANITATION AS WELL. I THINK TIM HAS SOME WANTS TO TALK A LITTLE BIT ABOUT THE TWO DIFFERENT OPTIONS AND SHOW YOU WHAT THEY ACTUALLY. SO LET'S DO THE FILETS KEEP. IT'S A SEPARATE THESE OUT FOR DISCUSSION. AND THAT WAY WE CAN SO WE DON'T GET CONFUSED BETWEEN ONE AND THE OTHER AND THERE AND THEN WE'LL MOVE ON TO LET'S START WITH THE HERE FROM 10. WE'LL HEAR FROM TIM WHEN WE GET TO THE SANITATION, UNDERSTANDING STATION STUFF, BUT THIS WAY WE'RE NOT BECAUSE HE'S GOT HE'S GOING TO TALK ABOUT THE TWO DIFFERENCES OF THE TWO DIFFERENT OPTIONS AND THAT WAY WE'RE NOT GOING BACK TO WASTEWATER AND WATER AND WASTEWATER. THEN WE'LL COME BACK TO THAT. SO LET'S START WITH THE WATER AND WASTEWATER. UM BEFORE WE REALLY GET INTO DISCUSSION AND DEBATE. I JUST WANT TO SAY THAT UH, BEEN HERE BEEN HERE OFF AND ON BUT THE CITY FOR 10 YEARS AND GOING BACK TO 2000, I GUESS 16 17 WHEN DAVE PETERS, WHO WAS I GUESS HE WAS THE DEPUTY DIRECTOR AT THE TIME AND THEN EVENTUALLY DIRECTOR OF PUBLIC WORKS.

DISCOVERED THE ISSUE WITH THE P FIVE AND CONTAMINATED WELLS AND WE ARE THE TIP OF THE SPEAR AT SOLVING THIS PROBLEM. THERE'S WATER WATER. THIS IS GONNA BE A PROBLEM THROUGHOUT. THE ENTIRE NOT JUST THE STATE OF FLORIDA BUT THE ENTIRE COUNTRY. THESE THESE THESE CHEMICALS ARE PRETTY BAD. UM GOING ALL THE WAY BACK TO 2011 WITH OUR SEWER WITH OUR FEWER THE GRINDER SYSTEMS AND PUTTING THE SEWER IN. BUT ALSO WE DID A WATER MAIN REPLACEMENT AT ONE POINT AND WHICH WAS QUITE INTERESTING, BECAUSE THAT'S WHERE WE GOT A LOT OF COMPLAINTS AS WE WERE TEARING UP THE STREETS. UM BUT WE GOT IT DONE AND OUR WATER MAIN, SO AS I LOOK AROUND THE COUNTRY AND I SEE PLACES LIKE JACKSON, MISSISSIPPI FLINT, MICHIGAN. UH YOU KNOW, AND SANITATION. I JUST LOOKED NORTH, JUST THE ONE COUNTY NORTH OF US, BUT AS FAR AS WATER GOES , I'M REALLY, REALLY HAPPY WITH OUR STAFF THAT WE'VE HAD CURRENT AND PREVIOUS STAFF GOING BACK WITH TIM NOW CURRENTLY A PETERS BEFORE HIM AND SAM AMBERSON. UH AS WELL. THEY'VE REALLY HAD A PLAN TO KEEP US ON TRACK AND ENSURE THAT WE HAVE A QUALITY SAFE. WATER SUPPLY AND ONE OF THE THINGS WE REALLY DIDN'T TALK ABOUT DURING THIS WAS OUR IRRIGATION QUALITY WATER, SO THE WATER RECLAMATION PLANT PRODUCES

[02:10:04]

WE'VE GOT I'D LIKE TO SAY WE GOT THE BEST GREATEST WATER IN THE STATE OF FLORIDA. RIGHT THINGS DO COST A LOT OF MONEY. IT'S NOT JUST BUILDING I MEAN SO MANY THINGS. KEEP GOING UP AND UP AND UP. AND, UH, I HOPE THAT THE PEOPLE REALIZE THAT WE'RE TRYING TO DO THE BEST JOB WE CAN.

EVERYONE ALWAYS WANTS THE BEST OF EVERYTHING IN THE CITY OF STEWART. SO I THINK WE'VE I THINK YOU'VE DONE GOOD. AND WE'VE WE'VE WE'VE GIVEN THIS TO THEM. THANK YOU, MR CLARK.

THANKS THANK YOU SO MUCH. I DID ASK ABOUT YOUR NAME AND YOUR NAME, CHANGE AND ALL THAT GOOD STUFF, SO I DID NOT GET SOME BACKGROUND THINGS, BUT, UM I MEAN, THE COMPANY NAME SWITCHING COMPANY NAME, BUT THIS CAN'T BE DONE OR SAID OR DEALT WITH, WITHOUT MENTIONING THE NAME OF THE PUBLIC SERVICE COMMISSION, AND HOW WERE CLOSELY LINKED AND WHAT THEY ARE. I KNOW THAT IT'S MENTIONED IN THE IN THE PAPERWORK AND THE REPORT AND, OF COURSE, GOING BACK INTO ALL THE BACKGROUND, WHICH WE REALLY HAVE TO, AND I'M SO GLAD THAT TROY HAS LEANED ON, YOU KNOW, TALKING SORRY. THE MAYOR TALKING ABOUT THE BACKGROUND AND SO MANY THINGS THAT GO INTO THIS, BUT YEAH, EITHER YOU ARE, MR MARTEL OR SOMEBODY JUST BRIEFLY, JUST FOR THE PUBLIC SAKE TO JUST SAY MENTION A FEW WORDS ABOUT THE PUBLIC SERVICE COMMISSION. AND UM, YOU KNOW THAT RATE JUST BRIEFLY. IF YOU WANT TO SAY THAT. AND YEAH, I AGREE WITH ALL THE OTHER COMMENTS OF THE COMMISSION'S WITH REGARD TO WATER VERY, VERY BRIEFLY. FLORIDA PUBLIC SERVICE COMMISSION REGULATES PRIVATE UTILITIES OK CITY OF STEWART HAS HOMEROOM. SO YOU WERE YOU WERE NOT REGULATED BY THE FLORIDA POLICY SERVICE COMMISSION. REGULATE PRIVATE UTILITIES. UM PRIVATE UTILITIES TRADITIONALLY HAVE TO GO THROUGH A RAPE CASE AT THE PUBLIC SERVICE COMMISSION , VERY INTENSIVE INTENSIVE ON STAFF AS WELL AS UTILITY SYSTEMS . SO THE PSC HAS PUT IN PLACE AN ANNUAL INDEXING PROVISION. WHERE THOSE PRIVATE UTILITIES CAN CAN HELP KEEP THEIR RATES UP WITH INFLATION. AND SO THEY MAKE A PETITION TO APPLY AN INDEX. MOST OF OUR SHOULDN'T SAY MOST.

[02:15:04]

WHY DID WHY THEY DID NOT CHOOSE OUT OF METRICS? UM, AT THE END OF THE DAY, WHAT I WOULD TELL YOU IS THERE'S NO INDEXES. PERFECT OKAY, SO WHEN? WHEN HENRY THOMAS AND I UM I ASSISTED STAFF AND PUTTING THE INDEX ADJUSTMENT IN PLACE AND I USED THE TERM AUTOMATIC. BUT YOU KNOW, THE CITY COMMISSION STILL ADOPTS THE RATE RESOLUTION. BUT IN IN MANY JURISDICTIONS, THEY ARE AUTOMATIC INDEXES. IN SOME CASES, IT'S NOT NECESSARILY THE COMMISSION WHO'S ADOPTING THAT THAT RATE RESOLUTION IT MIGHT GET ADOPTED WITH THE BUDGET. THE BUDGET PROCESS, YOU'LL HAVE A LITTLE BIT DIFFERENT APPROACH TO IT, BUT IT WORKS FOR THE CITY. UM SO THAT'S THE INDEX. THE REASON THE RATIONALE FOR PUTTING THE INDEX IN PLACE IS WE FOUND OURSELVES IN A POSITION WHERE WE HAD TO DO SOME DOUBLE DIGIT INCREASES THE 2005 RATE STUDY. WAS ONE OF THOSE CITY HAD NOT ADJUST TO THE WATER AND SEWER RATES IN MANY YEARS. I'LL TELL YOU FIRSTHAND CUSTOMER DOESN'T CARE WHAT THEY CHARGE YOU CHARGED HIM LAST YEAR. 18 WHAT YOU CHARGE THEM TOMORROW. YOU KNOW, IT'S NOT REALLY A GREAT MESSAGE TO SAY. WELL, WE HAVEN'T RAISED THE RATES IN 15 YEARS, BUT YOU GOT A 10% RATE INCREASE. THEY REALLY DON'T WANT TO HEAR THAT SO OUTSIDE OF A TECHNICAL RATE STUDY, YOU KNOW, WE GENERALLY GO IN THIS DETAIL ABOUT EVERY FIVE YEARS. SOME OF OUR CLIENTS DO IT EVERY THREE YEARS. SOME SOME DO A REVENUE SUFFICIENCY STUDY ANNUALLY.

OKAY? ABSOLUTELY ABSENT OF FIRM REPORT. WE THANK YOU STILL SHOULD NUDGE IT A LITTLE BIT FORWARD. I WOULD TELL YOU BASED ON THE INDEX EVEN 4.53% INDEX. IT'S A $4.51 INCREASE. I ACKNOWLEDGE THAT FLORIDA UTILITY BILLS GO UP. MORE THAN THAT, JUST BY CHANGES IN USAGE PATTERNS, WHETHER THAT WHETHER IT WAS RAINY THAT MONTH, AND THEY DIDN'T HAVE TO IRRIGATE OR WHETHER THEY DID HAVE TO IRRIGATE, ESPECIALLY WHEN THE INDEX IS ONE OR 2% SO, COMMISSIONER, THE BACKGROUND IS IT'S AN EFFORT TO KEEP THE RATES MOVING FORWARD AND AVOID A DOUBLE DIGIT RATE INCREASE. OUR FIRST RATE INCREASE IN 2015 WAS 12. I BELIEVE SO IT'S ACTUALLY IT STARTED AT NINE. SO WE DIDN'T HAVE TIME TO COMPLETE THE STUDY . WE GOT A COPY OF THE MOST RECENT AUDIT ON A PIECE OF PAPER. WE DID THAT DEBT SERVICE CALCULATION. WE SAID THEY'RE NOT GONNA MAKE COVERAGE. THEY HAVE TO ACT. NOW WE CAME. WE MET WITH THE CITY COMMISSION. WE SAID YOU NEED A 9% RATE INCREASE TO MEET THE BOND COVENANT AND THE COMMISSION SAID WE WANT TO WAIT AND SEE THE RESULTS OF YOUR STUDY. THREE MONTHS LATER, WE STILL COULDN'T COMPLETE THE STUDY BECAUSE THE CAPITAL NUMBERS WEREN'T AVAILABLE YET. WELL, NOW THE NUMBER WENT TO 12 . THE COMMISSION SAID. OKAY WE'LL DO 12. DON'T KEEPING INCREASING IT. THEN WE FINISHED THE STUDY AND WE PUT A PLAN IN PLACE, BUT BUT MY POINT IS THAT I THINK THAT'S A GOOD EXAMPLE OF WHERE WE DIDN'T. WE DIDN'T MAKE A JUDGE ADJUSTMENTS SOONER, LIKE FOLLOWING AN INDEX AND WE WERE FACED WITH A DOUBLE DIGIT INCREASE THAT AND I KNOW THAT'S 15 YEARS. AGO OR MORE, BUT THAT'S THE HISTORY. OKAY OKAY, SO I WANTED TO I HELD MY PIECE BECAUSE I DIDN'T KNOW HOW APPROPRIATE IS TO GO INTO THIS, BUT IF THE CITY MANAGER WOULDN'T MIND FOR THE FOLKS WHO ARE LIKE ME HESITANT ABOUT, YOU KNOW FEE INCREASES. UTILITY FEE INCREASES RATE INCREASES. IS THERE ANYTHING YOU CAN SPEAK TO ABOUT LITIGATION THAT IS IN THE PIPELINE THAT WOULD. POTENTIALLY HELP OFFSET I CAN'T REFER. PERFECT MR COULD HELP OFFSET THAT. YOU KNOW, $25 MILLION ARO PRICE TAG WE'RE LOOKING AT. THAT'S A BIG PART OF THIS. IT'S WORTH THERE ARE THERE'S A MULTI DISTRICT FEDERAL LITIGATION. AND THE CITY IS A PARTY TO THAT, AND IT'S A CLASS ACTION. I ACTUALLY SPOKE TO THE ATTORNEY REPRESENTING THE CITY TODAY. UM IT APPEARS THAT THE JUDGE NEXT WEEK IS GOING TO ASSIGN. THE NUMBER ONE CASE THAT'S GOING TO GO TO TRIAL AND BASED UPON A

[02:20:02]

[02:25:05]

JUST TO MAKE IT. I'M SORRY, BECKY. I WANT TO THANK TIM. HE'S REALLY DONE A GREAT JOB. HE ALWAYS ANSWERS. ANYTHING I HAVE WHEN I GO TO HIM, IF YOU DON'T UNDERSTAND IT. BETTER DIFFERENT , STEPHAN. REALLY? WHICH I'M SURE YOU DO. ANYWAY THANK YOU, JIM. YOU'RE WELCOME. BUT YOU KNOW? I AM CORRECT IN STATE, WHERE ONLY APPROVING THIS FOR NEXT YEAR AND THAT YOU LOOK AT IT EVERY YEAR. SO IF ANY ADDITIONAL YOU'RE ADOPTING THE RATE STUDY, YOU'LL HAVE A RESOLUTION. COME BEFORE YOU, UM , THE NEXT MEETING TO ADOPT THE 4.53 RATE RIGHT THEREAFTER, THERE'LL BE A RESOLUTION TO ADOPT THE RATE THAT'S RECOMMENDED THAT THE MINIMUM OF RECOMMENDED IN THIS OR THE PSC, WHICHEVER COMMISSIONER COLLINS IF FUNDS DO COME INTO THE BUDGET THAT WE DIDN'T ANTICIPATE HE WOULD BE ABLE TO ADJUST THE REQUESTED CLARIFY WHAT YOU JUST SAID IT WOULD BE AT LEAST THIS OR THE INDEX WHATEVER IS HIGHER , THERE'S NOT AN OPPORTUNITY TO HAVE A LOWER RATE. WELL, THE RECOMMENDATION WOULD BE TO USE WHICHEVER IS THE GREATER BECAUSE THE INDEX RATE UM, IF IT'S ALLOWABLE, IT'S UP TO Y'ALL. WHEN WE BRING IT TO YOU COULD SAY NO. I WANT TO USE THE 6.25 AND NOT USE THE INDEX RATE. BUT THE RECOMMENDATION IS TO USE UM, WHICHEVER IS GREATER. I THINK WHAT I THINK WHAT HE'S ASKING IS IN THE FUTURE IF WE FOUND OURSELVES IN THE MONEY RIGHT NOW SAID YES, OKAY. YEAH OKAY. GREAT WE COULD SO OKAY, WE'RE IN DEFICIT RIGHT NOW. SO LET'S UH LET'S MOVE ON TO THE SANITATION AND TIM, YOU HAVE SOME PRESENTATION REGARDING THE TWO DIFFERENT OPTIONS? YES. LET ME PULL IT UP. SOME MUCH OF HUNGARY'S EXPENSIVE CRAZY CRAZY. SO THE UPGRADING OF THE EXISTING FACILITY, UM VEHICLE MAINTENANCE IS CURRENTLY LOCATED AT THE CORNER OF GEORGIA AND MLK. AND THE VEHICLE MAINTENANCE FACILITY. IS THIS STRUCTURE RIGHT HERE? UM IT WAS AN OLD BUS DEPOT THAT'S BEEN CONVERTED BELIEVE IT WAS CONSTRUCTED BACK IN THE FORTIES. SO YOU KNOW, WE'RE LOOKING AT 80 PLUS YEARS OLD FOR THIS STRUCTURE. AND YOU KNOW, OBVIOUSLY WITH THE CONVERSION FROM BEING A BUS DEPOT INTO OUR CURRENT VEHICLE MAINTENANCE FACILITY. UH UM. AND THEN IT BEING 80 PLUS YEARS OLD, YOU KNOW, THERE'S UM SOMEWHERE AND TERROR ON IT, WHICH IS SHOWN SHOWN IN THESE THESE PICTURES.

SO YOU CAN KIND OF SEE YOU KNOW SOME CORROSION HAPPENING HERE. WOULD ROD. WOULD IT BE BETTER? JUST TEAR IT, TEAR IT UP. GET RID OF IT, AND THAT'S WHAT I'M GOING TO BE SHOWING YOU HERE. SO HERE'S YOU KNOW. CLOSE UP VIEW. WOULD ROD BOARDED UP WINDOWS? HERE'S SOME CORROSION ON THE METAL HAPPENING, YOU KNOW, JUST FROM IT BEING EXPOSED TO THE OUTDOOR ELEMENTS. AND THEN EXISTING CONCRETE JUST DUE TO THE USE OF OUR GARBAGE TRUCKS, CONSTANTLY DRIVING ON A DAILY HAS CRACKED IT. AND THIS IS ALSO THE HOME OF OUR SANITATION DEPARTMENT. IT'S NOT JUST

[02:30:08]

[02:35:06]

IT'S SLIGHTLY DIFFERENT AREAS WE CAN PUT IT WILL WILL TAKE ADVANTAGE OF THAT. UM, BUT OBVIOUSLY IF IT IN EVERY DAY GARBAGE TRUCKS GOING ON IT. WE'D PREFER NOT. IT'S ACTUALLY A PRETTY GOOD LOOKING SITE PLANTS AS THE JUST THE LOCATION OF THE BUILDINGS. ABSOLUTELY I MEAN, I THINK THAT IT IT LOOKS PRETTY GOOD AT IT CLEANS THE SIDE UP. UM AND I KNOW YOU'RE GETTING READY TO GO ONTO THE NEXT ONE. BUT QUESTION PURSUANT TO THIS ONE. IF WE WERE TO NOT USE THIS SITE, IS THERE ANY CONCERN THAT IT WOULD BE WITH BEING USED AS A MAINTENANCE SITE FOR ALL THESE YEARS? THAT WOULD BE A BROWNFIELD SITE AND THERE WOULD BE A CLEAN ANY CLEANUP ISSUES.

THERE'S NO SPILLS THAT HAVE BEEN NOTED. UM YOU KNOW, THE FUEL TANKS ARE THERE AND IF WE WERE TO RELOCATE, WE LOOK TO RELOCATE THOSE THE FUEL TANKS TO THE NEWS. YEAH I WAS JUST WORKING FROM A CLEANUP PERSPECTIVE. IT'S BECAUSE IF THE IF WE CHOSE THE OTHER SITE. AND WE WANTED TO REDEVELOP THE SITE INTO SOMETHING ELSE AND IT NEEDED CLEANUP. THERE'S GOING TO BE ADDITIONAL COSTS. IN ADDITION TO THE COST OF BUILDING THE NEW FACILITY, CORRECT CURRENTLY WE HAVE ABOVE GROUND TANKS AT THAT LOCATION, RIGHT? YES SO WE USED TO HAVE BELOW GROUND TANKS AND PROBABLY HAVE TO GET TO EAT CLOSURE LETTER. BUT THERE'S BELOW GROUND TANKS OR HAVEN'T BEEN USED IN. WE DON'T KNOW IF THERE'S ANY CONTAMINATION FROM YEARS AGO BECAUSE NOBODY ALRIGHT , THEY DIDN'T WORRY ABOUT IT BACK WHEN YOU WHEN YOU HAVE PULLED THE GUYS YOU KNOW, WORKING HERE DOES THIS IS THIS GONNA FIT THE BILL? IS EVERYBODY GOING TO BE HAPPY? YEAH OBVIOUSLY, WHEN WE LAID THIS SIDE OUT, WE HAD SEVERAL MEETINGS, UM, WITH OUR TEAM LEADER THAT MANAGES THE VEHICLE MAINTENANCE OR SANITATION. UM MILTON'S STREETS TEAM SAT IN ON IT, UM, ALL IN A ROOM TO MAKE SURE THAT THE FOOTPRINT WHAT THEY'RE EXPECTING, YOU KNOW, FIT FITS WHAT THEY NEED, BECAUSE EVERY DAY THEY ARE THE ONES EVERYTHING IT THEY HAVE PROVIDED THEIR INPUT VERY EARLY ON, UM SO AND WHAT'S THE CONSENSUS? EVERYBODY'S HAPPY. THEY LIKE THAT. YEAH THEY NEW FACILITY IS NEEDED, WHETHER IT'S HERE, UPGRADING THIS OR MOVING TO A NEW SITE. IT'S DEFINITELY WARRANTED. HOW MANY. SANITATION TRUCKS DO YOU HAVE THERE? DO YOU KNOW? MAYBE YOU WERE PARKING THERE AND DO YOU THINK WE'LL HAVE GROW IT IN FIVE YEARS? 10 YEARS? YOU KNOW, WE HAVE THREE FRONT LOAD ROUTES FOR COMMERCIAL RESIDENTIAL. MAN THERE'S PROBABLY TWO OR THREE RECYCLING AND THEN YARD TRASH, SO I MEAN, WE HAVE 10 PLUS TRUCKS. WE OBVIOUSLY LATELY, I'VE BEEN KEEPING MORE BACKUP TRUCKS JUST BECAUSE IT'S SO HARD TO GET THE PARTS THAT THEY'RE DOWN LONGER THAN IF WE DIDN'T SAVE THESE TRUCKS, WE WOULDN'T BE ABLE TO RUN OUR ROUTES. SO JEFF COLEMAN OR SANITATION MANAGER HAS DONE AN EXCELLENT JOB WITH DETERMINING WHETHER TO KEEP THE TRUCKS. BECAUSE OF A TRUCK GOES DOWN AND THEY JUST HAPPEN THE BACKUP TRUCK AND YOU KNOW THE PARK CAN COME IN WHENEVER WE IF HE DIDN'T DO THAT, WE WOULD BE HURTING LIKE PORT SAINT LUCIE RIGHT NOW, UM, SO HE'S DONE AN EXCELLENT JOB MANAGING THAT.

GOOD DEAL. GOOD. THANK YOU. YOU'RE WELCOME. ALRIGHT SO THE. $12.5 MILLION OPTION THAT MURRAY HAD MENTIONED IS A TOTAL RELOCATION FROM THIS GEORGIA AVENUE MLK SITE. TWO. SIDE IMMEDIATELY ADJACENT TO THE WATER TREATMENT PLANT, SO THE WATER TREATMENT PLANT IS LOCATED AT 10TH STREET AND PALM BEACH. SO PUBLIC WORKS CURRENTLY HAS THEIR TURF AND GROUNDS

[02:40:05]

UM WE HAVEN'T RE ENGAGED WITH THEM. BUT IF THIS IS THE DIRECTION THE COMMISSION WANTS TO MOVE THAT WITH THE $12.5 MILLION SITE OBVIOUSLY WOULD SIT BACK DOWN WITH THE NEIGHBORHOOD . GO THROUGH, MAKE SURE WE ADDRESS ANY OF THEIR CONCERNS. UM BUT HERE'S KIND OF THE SITE PLAN. LET ME ADDRESS THAT REAL QUICK, SO WE DID DO A NEIGHBORHOOD MEETING AT 10TH STREET, WHERE HE DISCUSSED TWO PROJECTS THAT WANTS AFTER THAT, UM, PUBLIC WORKS. DAVE PETERS WAS HERE RUNNING DEPARTMENT THEN ACTUALLY DID SOME DOOR TO DOOR STUFF ALONG 13TH STREET. UM, WEE NEIGHBORHOOD ADDED A WALL AROUND THE NEIGHBORS AND AS WELL AS SOME SOME LANDSCAPING AROUND THE NEIGHBORS. BUT NOW THERE'S SINCE THAT TIME, THERE'S A NEW NEIGHBOR THAT'S MOVED INTO THAT NEIGHBORHOOD. THAT'S BEEN VOCAL AGAINST THIS AND SO I'M SURE THERE WOULD BE PEACE OF CONTENTION ABOUT IT. SO I WASN'T HERE WHEN THE CITY WAS LOOKING AT INITIALLY. I DIDN'T EVEN KNOW THAT WE PURCHASED THAT PROPERTY. AH! AH! FROM WHAT I'M SEEING. I ACTUALLY I ACTUALLY THOUGHT I WAS GOING TO COME IN, PREFERRING THE NEW SITE. BUT I THINK I PREFERRING YOU. AS I'M LOOKING, I THINK I'M PREFERRING THE EXISTING SITE. UH, LIKE THE SITE PLAN BETTER. I THINK IT'S WORKED ON PACKED. AH! AND THEN ALSO THE FACT THAT IT'S NEXT TO THE HOMES . UM THOUGH, I BELIEVE THERE'S WE CAN MITIGATE SOME OF IT. BUT GARBAGE TRUCKS ARE ALLOWED AND THEIR DIESEL AND THEY'RE SMELLY.

UM SO I THINK I WOULD THE DIRECTION I'M PERSONALLY HEADING IS THE EXISTING FACILITY. SO IF THAT HELPS AND IT'S CHEAPER. IT IS CHEAPER. BUT. BUT MORE THAN EVEN THE MONEY, IT'S STUFF. I THINK IT'S A AS I'M LOOKING AT. I THINK IT'S A BETTER SITE. I THINK THE ONLY QUESTION WOULD BE IS IF DO YOU THE ORIGINAL REASON TO MOVE OFF THAT SITE WAS FOR REDEVELOPMENT. SO I THINK IF YOU IF YOU'RE NOT CONSIDERING REDEVELOPMENT, YOU KNOW I WOULD AGREE WITH YOU. BUT IF YOU'RE CONSIDERING SOME TYPE OF REDEVELOPMENT ON THAT PARCEL AT GEORGIA AND MLK, THEN THIS IS THE ALTERNATIVE OPTION. WHAT WAS THE PLAN? FLIP IT RECENT APARTMENTS OR IT WAS WELL BACK.

ORIGINALLY IT WAS A JOINT PROJECT WITH THE BASEBALL FIELDS, AND IT WAS. WHAT'S THAT DISCUSSION WITH STEWART, MINISTER ON THE BASEBALL SIDE AND THEN? SO THAT KIND OF WENT AWAY WITH THE BASEBALL FIELD SITUATION? AND THEN THERE WAS ANOTHER PROPOSAL FOR, UM, HOUSING. THERE CAME LATER AFTER THE BASEBALL FIELD THAT DIDN'T GO ANYWHERE BECAUSE WE WEREN'T GOING ANYWHERE AT THE TIME. SUCH A BLIGHT FEL SPOT. I MEAN, IT'S JUST UGLY AND MR. CLEAN IT UP AND MAKE IT NICE AGAIN AND PUT UP PAUL FENCE AND SOME SHRUBBERY, REALLY? PRETTY IT UP THERE MARTIN LUTHER KING BOULEVARD ON THAT SECTION. ALONG THE EAST SIDE HAS BEEN DONE THERE, SO IT WOULD BE NICE BOYS ARE GROSS CLUB IS GOING TO BE COMING IN WITH THEIR BUILDING.

OH YEAH. SO THE EAST OF THAT, OR IT COULD POTENTIALLY BE A SITE FOR AFFORDABLE HOUSING. EITHER THERE OR PUT THE PALM BEACH ROADSIDE INTO AFFORDABLE HOUSING. AND THAT'S WHAT THAT WAS BEING DISCUSSED BY THE CITY MANAGER MIKE CONSIDERATIONS. WHICH IS TIME SOMETHING WE'VE

[02:45:01]

FUNDED AT THAT LOCATION. THEY BACK UP TO THE TO THIS PROPERTY , WHICH IS ESSENTIALLY THE PEOPLE QUALIFIED FOR 20 YEAR MORTGAGES. AND IF THEY PAID. A CERTAIN AMOUNT EACH WAS 20 YEARS WAS A 20 YEAR MORTGAGE, BUT THEY ONLY HAD TO PAY 10 YEARS IF THEY PAID. THE RIGHT AMOUNT AND KEPT CURRENT FOR 10 YEARS. THE BALANCE OF THE MORTGAGE WAS FORGIVEN COMPLETELY. AND THE 10 YEARS THEY HAD TO PAY WAS A VERY REASONABLE RATE. IF YOU'RE TALKING ABOUT DOING SOMETHING FOR AFFORDABLE HOUSING. THE GARAGE. CURRENT GARAGE LOCATION IS PROBABLY THE BETTER LOCATION AS FAR AS SIZE FOR GET ON THERE VERSUS THE MAKEUP OF THE PROPERTY ON TENSION ARE NOT BECAUSE OF TRAFFIC TO AND IT'S DIFFICULT TO. IT'S A THIN LOCK. RIGHT. WE HAVE TWO ACRES UP NORTH STEWART. AND I WOULD REALLY LIKE TO SEE THIS. ARE MEN NOT TO BE IN SUCH A UGLY.

FALLING DOWN PITIFUL. IT'S TIME TO FIX IT. AND SO THEY HAVE A NICE PLACE TO PARK AND THEN THEY CAN DO EVERYTHING OUT OF THERE. AND WHAT YOU KNOW AND JUST PLAN FOR IN THE FUTURE. WE NEED SOMETHING BIGGER. BUT RIGHT NOW THIS IS I THINK THIS IS A SUBSTANTIAL FOR THEM PREFER THE EXISTING SITE? YES YES, AND JUST CLEAN IT UP AND WE GOT THAT TWO ACRES OF ANYBODY WANTS TO BUY AND BUILD AFFORDABLE WHILE WE DO HAVE THAT. GIVE IT TO HIM. WE CAN GIVE IT TO HIM. WOULD YOU HAVE THE ACTOR TO BECOMING FORWARD HERE? BUT WE DO PRETTY SOON. I BELIEVE SOMETHING'S GONNA BE COMING FORWARD ON THIS TONIGHT. WE'RE VOTING ON A RESOLUTION. YES, WE ARE. WE HAVE A RESOLUTION TONIGHT. ONE SIDE OVER THE OTHER. YES, YES. MOVE YOUR WAITING. I'LL MAKE A MOTION TO UM HMM. SO REVAMP. UH I HAD ONE QUESTION ABOUT THE. OKAY ADJUSTMENT. UM, FORM. SLIDE 23.

YES SIR. SO YOU GO FROM THE CURRENT INDEX TO IT LOOKS LIKE IT ACTUALLY GOES DOWN BELOW THE 4.25 GOING FORWARD. THAT'S RIGHT. AND THAT'S STILL HAS US. UH YOU'RE NOT WORRIED ABOUT THE HUNT 180 DAYS ON THE SANITATION SIDE, ONE TENNIS SUFFICIENT. I AM OKAY, ON ONE OF THE BRIEFING DOCUMENT. I UH, HAD A TYPE OF OKAY. AND IT HAS THIS AT 1 80, THEN. YES. SO ONE OF THE SO THIS IS NOT DATED, REFRESHED, APOLOGIZE. IT'S IN THE RECORD. UM IT WAS AVAILABLE ON 90 90 DAYS IS THE MINIMUM. I AM SLIGHTLY ABOVE THE 180 DAYS, 201. BUT AGAIN AT A AT A BREAK EVEN UM I WILL POINT OUT BEFORE IN A QUARTER AND YOU CAN SEE THAT'S THAT'S LOWER THERE.

THAT'S WHAT I'M TALKING ABOUT THE EXISTING FACILITY UPGRADE THE OPTION PROJECTED INDEX FOR 2024 RIGHT NOW, 5.3% RIGHT. I DON'T KNOW IF IT'S GOING TO LAND THERE OR NOT SO AGAIN. THIS IS THIS IS WHAT YOU NEED. THE SUBSEQUENT INDEXES WERE ONLY 2% SO, UM, SO THE INDEX DOESN'T QUITE GET YOU THERE, SO WE LEVEL IZED IT AT FORM, OF COURSE. I LIKE THIS OPTION PERSONALLY, EXISTING MAKES A WHOLE LOT MORE SENSE TO ME. SO THAT WAS THAT WAS MY ONLY QUESTION. SO HERE'S WHAT WE NEED. WE NEED A UH, I NEED A MOTION. TO APPROVE. AND CORRECT ME IF I'M WRONG, DAVE.

AH TO APPROVE THE RESOLUTION WITH A CHOICE. OF YOU KNOW, APPROVING THE WATER AND WASTE WATER RATES AND THE CHOICE OF EITHER THE EXISTING SITE OR THE RELOCATED SITE IS THAT YOU CAN JUST DO A RESOLUTION OR ON OUR MOTION TO APPROVE THE RESOLUTION SELECTING EITHER BASE CASE ALTERNATIVE AND THE AND THE BASE CASE IS CASES. THE NEW FACILITY LOCATION AND THE ALTERNATIVE IS THE EXISTING SITE, SO IN MOTION TO APPROVE INCLUDING THE EXISTING FACILITY. SO YOU HAVE

[02:50:02]

IT'S A GREAT LOCATION, SO I THINK COMMISSIONER RICH, I THINK SO I UNDERSTAND YOUR POINT, AND , UH AND I WOULDN'T SAY IT'S NOT NECESSARILY CASUALLY BEING BECAUSE I KNOW MYSELF. TALKED ABOUT THIS SITE AND LOOKED AT IT WITH STAFF. UH I'M VERY FAMILIAR TO SITE OF WAS NOT AS FAMILIAR WITH THE PROPOSED LOCATION. UM AS I SAID, AND AGAIN, I WAS ACTUALLY KIND OF LEANING TOWARDS THAT COMING INTO THE MEETING. UH FROM THE PERSPECTIVE OF THE AFFORDABLE HOUSING COMPONENT.

UM, THERE ARE SOME OTHER THERE. THIS IS THIS IS POTENTIALLY WAS AN OPPORTUNITY. THERE ARE SOME OTHER OPPORTUNITIES. FOR EXAMPLE , THERE WE HAVE A LETTER OF INTENT WITH A NOT FOR PROFIT.

IT'S WORKING, UH, REGARDING A PIECE OF PROPERTY NORTH OF THE BRIDGE FOR AFFORDABLE HOUSING.

UM AND WE HAVE SOME OTHER STUFF THAT WILL BE COMING OUR WAY. UM IT AS FAR AS AFFORDABLE HOUSING GOES, AND I HATE TO SAY THIS, UM IS THAT, UH, IT IS SO CHALLENGING AND COMPLEX. THAT'S WHY WE THAT'S WHY YOU DON'T SEE IT. BUT UM, BUT WHAT WE CAN DO IS WE GET WE CAN GET THE RATE WE ADOPT THE RATE STUDY. WE CAN I BELIEVE WE CAN ALWAYS GO BACK IN THE SENSE THAT WE DO THIS IN AMEND AND CAN WE IF WE CHANGE HER, IF WE GET NEW INFORMATION CHANGED OUR MIND AS THEY BOARD I'D LIKE TO SAY SOMETHING, I'LL SAY. I DON'T THINK IT'S THE CITY'S JOB TO TRY TO PROVIDE AFFORDABLE HOUSING AT EVERY OPPORTUNITY. YOU HAVE A VERY COMMON SENSE. PRESENTATION HERE.

ONE OF THESE OPTIONS IS HALF AS MUCH AS THE OTHER. IT'S ON AN EXISTING SITE THAT THE MEN WHO ARE GOING TO BE WORKING THERE, WOMEN WILL BE HAPPY WITH THAT FACILITY. THIS BLEEDING HEART.

UM POTENTIALLY WILL INCREASE THE RATE. FOR EXISTING RESIDENTS WHO TO BE HONEST WITH YOU. THE FEE UTILITY FEET RATE INCREASES HIT THE LOWER INCOME. PARTS OF OUR COMMUNITY THE HARDEST. TO TRY TO

[02:55:04]

JUST TALKS ABOUT THE 4.53. THAT IS VERY, VERY TIGHT ON THAT. SOE OTHER DISCUSSIONS THAT WE'RE TALKING ABOUT THE DIFFERENT SITES. WE DON'T HAVE TO MAKE ANY CHANGES IN THE LANGUAGE. THIS RESOLUTION. IT'S GOOD AS IS WELL , EITHER SIDE RIGHT THAT THAT DOESN'T MATTER. THE 4.53 SECTION ONE IS COVERED AND DONE RESOLUTION. 76 2022 I WOULD REVIEW AFTER THE MEETING IF THE MOTION AND SECOND BECAUSE THE RESOLUTION TO NEED AMENDMENT TO IT. I COULD CHANGE THE LANGUAGE BASED UPON MOTION AND SECOND BEFORE IT WAS SIGNED BY THE MAYOR, BUT AS IT'S WRITTEN RIGHT NOW, IT JUST SAYS THE RATE. OKAY IF THERE'S NO FURTHER DISCUSSION, I HOPED THAT WOULD CARRY WITH IT IF WE CHOSE THE NEW FACILITY THAT WOULD CARRY IT WITH THE ASSUMPTION THAT THOSE RATES ARE GOING TO INCREASE, IT WOULD HAPPEN, SO I'M GONNA GO AHEAD AND CALL FOR PUBLIC COMMENT. DO WE HAVE ANY GREEN CARDS? I HAVE NO PROBLEM. OKAY. NO PUBLIC COMMENTS SO WELL, MARY, WOULD YOU CALL THE ROLL, PLEASE? COMMISSIONER BRUNER. YES COMMISSIONER CLARK? YES MR COLLINS? YES, COMMISSIONER RICH. MCDONALD? YES. OKAY WELL, THANK YOU GUYS VERY MUCH. AND GENTLEMEN. GREAT. GREAT MEETING AND GREAT QUESTIONS. I KNOW THIS IS THIS IS COMPLEX STUFF, AND IT'S HARD. SO UH, I WANT TO THANK YOU ALL FOR PUTTING IN A GOOD MEETING, AND, UH, WE'RE OFF TO A GOOD START. SO YOU DID A GOOD JOB. THANK YOU GUYS VERY MUCH, AND I WILL GO AHEAD AND

* This transcript was compiled from uncorrected Closed Captioning.