##VIDEO ID:dstyU0t7I10## good evening everybody how's everybody doing this evening okay glad to see you all the excitement and the voices all right today's date is Tuesday August 20th the time is now 7 p.m. in the city of Williston city council meeting has come to order m r Miss St would you please call the r mayor Goodman absent council president Michael Cox here vice president Dr H here council member Meredith Martin here council member Brio here council member Deborah Jones here and all other staff present all right thank you everybody open in prayer and pledge of allegiance to the flag by fire chief lar Ste everybody's name let us pray Lord I Thank you for allowing us to gather here tonight please watch over us as we go about the city's business tonight Lord make us good steward of your word through our words and actions Lord we thank you for living in a country where we're free to get up and vote and express our opinions we thank you for the many blessings you've bestowed upon us I ask everything in Jesus name amen amen con flag of the United States of America to the stand godible andice all right item one additions deletion changes and approval of the agenda can I get a motion to addition deletion changes a second got got a motion got a second all those in favor say I I [Music] 5 item two public participation this is your first of two opportunities to address the council at this time is there anybody in the audience can come to the podium and speak for five minutes on any topic other than what's on the agenda okay here all right item three cassen agenda these are for the minutes from July 16th of 2024 Mo approval of the consent agenda a second all right we got a first got a second all in favor say I I by welcome sir glad you could join us all right item four updates city manager I have done unless yall have questions sir staff Mr fire chief stle yes sir um over the weekend I just wanted to announce that the city of Williston received a assistance to firefighter Grant from federal government to the tune of $260,000 the matching funds is $2,380 which we have budgeted for so news it's really good news but just want to let y'all know about that awesome thank you yes sir how much was that again $260,000 total police chief RS so last night while you were all sleeping comfortable in your homes uh there was a homicide in the county right on the edge of the city last night and the suspect decided he was going to come to the city of Williston uh so me and the team gathered up along with Levy County Sheriff Office and I'm glad to report that we took that subject into custody last night uh without any harm without any fil anybody besides the one victim that um he took his actions out on but I'm glad to report to you all that our little city is safe for now for now Mr Willis anything a council I I have a question actually it's more of a request and it's uh Miss Jones um I would like just a single page layout of the site plan for the Wawa the P people are asking me questions sure and I haven't laid eyes on it do you want it electronically or do you want it any way that you would like to it okay I'll send you it electronically and then we have the big plans in my office I've had a few people come in and ask and I've shown them the big plans and then sent them home with a smaller one yes that would be great okay other people may want it to but I would like to have okay yes Mr Mayor yes sir so far is the weekly po hole report I don't have much to report this week because we've been busy on other projects but starting and Monday we'll be back on doing PA full time again all right very good anybody yes sir uh just to report that I know there's been questions about John Henry uh we are planning on opening that the Friday before Labor Day weekend so I did want to mention that we we will have more Part close signs up because we've had an issue with that we're putting more signs up but um all the painting and all the updating everything should be completed by Friday of next week very Goodbody else 05 new business a discussion with possible action presentation on natural gas hedging Public Works director supervisor Donald Barber and Katie H president of FG all right good evening Council um we're privileged to have the president of fgu here Miss Katie Hall here she'll be doing a presentation in just a moment uh what this is is the staff is looking for direction from the Council on whether or not you guys have a desire to look into possibilities of diversifying the city's natural gas portfolio and after the presentation if you have any interest in moving in that direction and uh farbe it for me to present so uh Miss Hall sty her SL start off page nine page n going the wrong way uhuh you can handle it you want it thank you again my name is Katie Hall I'm the general manager and CEO of Florida gas utility I also have C frto here with me he's our middle office analyst who works in our accounting department so he's here with me as well many of you I think have seen me present here before as I go through this feel free to stop me at any point with any questions or we can answer questions again at the end whichever you prefer so as Donald said we're going to talk about natural gas Financial hedging I think we presented this to you in the past this is a little bit different take on it but fundamentally it's going to be very similar so what is hedging hedging is a type of Financial and investment that tries to reduce volatility in a product right in pricing so any commodity can be hedged corn natural gas apples anything commodity wise you can hedge there's several Financial products that you can use but we're going to try to keep it pretty simple and we're going to just focus on two of them today which your futures contracts and call options so why do we hedge hedging this is probably the most important slide we have on this frequentation hedging is not an attempt to beat the market I'm G to repeat that because it's important it's not an attempt to meet the market we are not trying to get the lowest cost gas possible what we're trying to do is meet your budget and your rate stability needs that's what we're trying to achieve with this so hedging helps reduce volatility and anything as we go on here as we set it to whatever your budget goals are this is a way to help achieve that so view it more as an insurance policy when we talk about you have home insurance are you upset that you paid for home insurance and then your house didn't burn down right no so the point of this is to have that protection from the risk in the market but don't be upset if it doesn't lead you to the lowest price that's that's what we want to focus on today so we don't want to look back and talk about winning or losing or beating the market we want to say that we helped acheve the goals that we set out so the next slide is when do we hedge a good hedging program is ongoing and unfortunately what we see is we saw this in 2022 when the market we had we called it the bases blowout and gas prices started going high very rapidly and that got everybody's attention and everybody said we've got to stop the bleeding and they wanted to lock in hedging at that point that's actually probably the worst time to hedge because you're you're just trying to to stop the bleeding at that point right now is exactly when you should be hedging but this is usually when cities become complacent because they realize prices are down they're stable we don't have to worry about that you have 25 other things that are fired right now that you're working on this is no longer at the top of your list but this is exactly when it should be because we can lock in prices that help minimize any of that volatility going forward so what we're going to talk about today that's slightly different is this is an ongoing program we're proposing rather than in the past we said let's lock it in from this point to this point it was a very set parameter this is something that's going to be setting parameters for an ongoing program so current forecast right now like I said prices are relatively low this these numbers are slightly outdated where we have this $2 gasp we deal in decms that's just the unit that we use we probably build in therms so a decm is 10 therm so we have it on here that it's roughly $2 a decm or 20 cents a THM prices have gone up a little bit bit since we put this together um it it's driven right now because the heat they use gas to generate electricity when it's hot a lot of gas is you're burning making a lot of electricity for AC load um so prices have gone up a little bit but what we're seeing is even though prices are still relatively low we see a couple things that might cause it to increase in the near future so the three things that we've identified here is we have more LG coming online LG is liquefied natural gas you probably have heard about this they can liquefy it and that way they can export it so what's going to happen is is they're building all these facilities on the ports right now in Florida where they're going to be exporting this gas it still has to run through the safe pipelines that is coming to serve city of Willison and all of the cities in Florida but let me just talk about the scale of this the magnitude one of those LG facilities can use as much as half of the entire state in one day so when you're building multiple LG facilities that is potentially doubling or tripling the demand in the State of Florida so huge demand increase also producer contracts are set to expire they're very often linked with presidential election terms for obvious reasons when you get somebody in that's either proog gas or anti-gas they want to make sure they align with their contracts so just because the term is or we have an election cycle coming up a lot of those contracts will be expiring they may or may not renew them based on the outcome of the election and then also we've had traditionally some mild weather the last last the last year or so which helped reduce costs but like I just said when we have hot summers where they're generating a lot of electricity but then really it's more so in the winter when we get a real winner and when I say a real winner I don't mean just for Florida I mean Nationwide because then the gas will be funnel to where they really need the cold so it was relatively mild all last winter across the country if anybody's listened to the Farmers Almanac they're they're preparing for a pretty cold winter and what that does is then they take it all where it's considered um essential for heating up there and they'll will divert it the pipelines will literally reverse pores and take it away from the he the the warmer part of the country so we see that now there's going to be this increased demand potentially reduced supply all of it is basic economics that's going to be straining prices and making them go up so the next slide this just shows we have a one-year curve and a three-year curve so this is looking out this is this is the Futures market right now all I want to show here is that on the one-ear curve we always see that little bump over the winner that's very normal on the right though what I want to show is you see that little bump over the winner but then it comes back down but overall even though it's still gradually increasing it's still relatively stable so we're saying right now is that great price or great time to lock it in because you can get a pretty um safe you know nice budgeted item there without if any volatility comes into the market it's not looking at that right now so that's all we're trying to point out here is that it's a gradual increase but not major so that's why it's a good time to start looking at some products the next slide on here shows the left hand side of the curve of this graph yeah on so the left hand side there I guess it came up sideways but I guess the top of what you're looking at there that shows actual prices so you can kind of see even though it's got little spikes it gradually came back down that's where it hit that between $150 and $2 Mark the three lines that green blue and orange all that's showing is that's your Futures Contract prices the um blue one was from May a year ago the green one was from December and then the orange one is from May this year so all we're trying to show is that that the immediate prices there's a little bit more of a spread but if you look out over that timeline they're still all very aligned so even a year later they're still showing this nice consistent curve is all we're trying to point out with that slide so the next slide is products so I said there's multiple Financial products out there but we want to stick with two that are pretty simple they're very um risk averse All Things Considered and they're a Futures Contract which is basically setting a price which is what you've done in the past you set the price that's the price you pay the other option we're bringing um as as something you for you to consider is a call option which is basically setting a ceiling price so you'll never pay more than that so if the gas prices go below that cealing price you actually get the benefit of that lower price now there is a premium attached to that so it's not free to have that luxury but if that's something you're concerned with then that's gives you a little bit more flexibility than just locking in a price and what we're proposing when we we talk about this is actually approving both of those because as we would look at the market there's sometimes it makes more sense to lock in a Futures price and then there's other times it would make more sense to lock in a call option so what we're saying is have both of these as options and we would talk with staff because these things move pretty quick so we would say hey we're going to set some parameters and then we would talk with with them to make sure we we achieve the goals that you guys set for us um if we approve this so the next slide on here just shows you what that looks like so the left hand side this is a Futures Contract so the Blue Line there is following the market that yellow line that would be if you set a Futures Contract at it's roughly 320 so that's the price you're going to pay regardless of what Market does on the right hand side this is a call option so again the same blue line as the market that yellow line though would be your call option so you can see here that when prices go above the yellow line that's your ceing you never pay above that but when the prices come below that you get the benefit of that lower price so all we're trying to do is just show you what those both look like um on a chart so to put this this is the basis blowout that I referred to in 2022 you can see the market was super volatile jumped all over the place in that a lot of our members locked in a Futures price so on the left hand side let's just say they locked in 750 more or less at some it kind of all evened out when it was all said and done but what you can see on the far right side of that curve or of that graph is now people were locking in at 750 and then the price went down to $5 or below so they felt like they were way overpaying and people have short memories right they think about what's going on right now they forget that they benefited when prices were way high and now they're just seeing Oh the Market's low and we're overpaying so on the right hand side what that's showing is if you would have done a call option instead you can see that you protected yourself from those big spikes but then you also enjoyed when the prices came back down so that's why we say have both options when there's volatility a call option makes a lot of sense when there's not as much volatility that Futures price is a nice easy curve so we just want to kind of show you why what the market might be doing of why you would use each product so naturally you're going to ask me what's what's that premium look like there is a premium to a call option to have that luxury of the lower prices so this is just an example these are not set this was just we wanted to reach out and see what something like that would look like so your call option is always going to be tied to the Futures Contract so in this example when we pulled this which was roughly a month ago a Futures Contract strip for one year was going at 339 a decm so if you wanted to lock in that Futures that set price you could lock in at 339 for the next year really good price if you said though I want to do a call option instead so that if the price goes down here's what it would look like as all we're trying to show here is that strike price the closer you get to that Futures Contract the higher your premium is going to be so the more wiggle room you give yourself on that ceiling the lower your premium get so as you're closer to the Futures Contract you're at about 12% premium but if you give yourself almost a dollar buffer you're down to about less than 5% which is two cents a THM that's very very minimal to pass on to your customers to protect them from gas pric is going up to six seven8 like we saw in 2022 that's how we see it is it's a very small price to pay to eliminate that risk so just wanted to give you an example this those premiums though change all the time when there's again more volatility in the market those premiums are going to go up so on the next slide we want to talk about the quantity so what we're proposing again this is rolling this a rolling program so at any given time we're saying up to 12 months out but we would lock in up to 75% of your average daily use in a hedging program two years out we would go up to 50% and three years out we could go up to 25% so then as we get to those thresholds you would then build on top of them so once you're year out that out 50% you're going to add a 25% on top of it to get you to the 75% hopefully that makes sense now we say up to because sometimes the Market's not conducive we're not going to lock in just because we said we were going to lock lock in we're going to wait till we think it's it meets the goals you're trying to achieve so this just gives us that flexibility to go up to these amounts but doesn't require us to do so and again all this is doing is helping stabilize your rate that's all this is attempting to do so the next slide just shows this this so the yellow line that jumps all over that's your average daily use for those months we just took it over a threeyear it's it's the same one-ear um usage we just projected it out for three years and then you can see the 75% is that blue color shaded the 50% is the orange and then the 25% is the green so you still have a little wiggle room in there to play the market but that's how much of your average daily usage would be um kind of stabilized if you will in this proposal so the strike price is basically that's whatever price we're going to lock in like I said either the ceiling or that set price is your strike price we would base that on whatever number number is put in the city's budget so you guys usually have a price per THM that you project to pass on to your customers we see it is if we can achieve that go that budget number or anything below that we should lock it in that's that's how we view it because you're helping meet that goal that you pass on to your customers if the numbers are above that we would say it's not the right time and wait till the numbers are conducive um there's some other things that don't want to get into the weeds if you want me to I can but there's other um we have like transportation and B basis differential these are just kind of some of the things that happen in the market we would subtract that out so for instance I'm making these numbers up if you say we have 50 cents a THM is your goal and we we know transportation and basis is about 10 cents then we would say we have to get to 40 cents so these are just things we would work on on our side um and the strike price will account for any of those additional costs in there so a couple other things just to mention is these parameters that you set for us like I said it doesn't mean if you approve this today it doesn't mean we go out tomorrow necessarily lock this in but what we found is the market moves every minute right so to get on an agenda to get it approved to you by the time we see something that's um conducive to meeting your needs that opportunity might be gone by the time we set up a meeting so what we're saying is if you set the parameters for instance we had the LG I mentioned earlier so when prices were high about a year and a half ago one of the LG facilities that was in Louisana actually had an explosion and as horrible as it was it was great for the industry because it helped bring prices down because they used roughly half of what the state of Florida used in a day so when they said we had this explosion we're shut down now all of a sudden we have this all Supply we didn't think we had so prices prices dropped immediately the next day but then the LG facility came out and said well the damage wasn't that bad we're going to be back up by the end of the month and prices immediately rebounded so we had about a 12-hour window where prices dropped about half and so if we had these parameters in place for instance we could have called the city and said hey prices just dropped in half we can lock in your futures for $3 where everybody else was locking in at $6 so if we have that and we have those opportunities we can jump on them so that's what we're looking for we just want to have that flexibility in the market additionally I know we're asking for an ongoing program but at anytime if you want to terminate it we can stop the program going forward so this is something that is easy to get in and easy to get out so just want to just wanted to uh clarify that for you so the last slide is basically what our recommendation is so we're recommending approving this rolling um hedging plan the three parts of this directive would say the product which again would be those Futures contracts or that call option the quantity would be up to 75% per a year out up to 50% two years out and up to 25% three years out and then that strike price which is tied to your budgeted price per THM in the city's budget and again all of this would be discussed with staff before we pull the trigger on anything we just want to have approval from you to be able to work with them to um implement it I know that this is kind of a complicated uh topic so trying to not get too much in any questions um so you can't use both the the Futures and the tap at the same call at the same time it's either or decision that making at any one time but you you can layer them um so you could for instance say we want 25% locked into a call option and 50% into fure but you can't layer them onto the same gas and then second questions is with the premiums who who establishes the premiums and and they said they can change so what level of volatility would we be looking at so the company that we would lock in any of these Hedges with would be a clearing house and they're the ones that said that so we would just reach out to them and give them a for instance so we'd say we're looking for a call option in my example say around $4 for this quantity of gas and they would give us some pricing and then we can make a decision from there and long with those premiums pull is that renewed annually or well the pre once you lock at a premium it's set so if we called and and told the city it's a two-cent premium for the next year to lock this in that's all you pay um but as far as when they give an offer and for us to approve it it's usually within a 24-hour window and so so if we decide to do this every year it would roll over and we'd be looking at new numbers or and again we don't have to do all 75 % for instance at one time so we could say let's break that into multiple deals and so maybe we only lock in 25% and then in a month or two we wait and see what the Market's doing and then we might lock in another 25% you know we it doesn't have to be all or nothing all at one time so we can kind of have that flexibility to make sure it's you don't want to put all your eggs in one basket right you want to have that diversity and then you would just contact staff yes and say hey this is what's going on yes yes so we would wait till we see something that is conducive so we would have your parameters and when we see something that fits within that we would then call and say hey this checks every box we think this is a good time to lock it in and they would say yes do it and then we would lock that in for you and then it's set and then we can always bring you periodic reports to just kind of show you we just caution don't look at it as winning or losing um but as long as we're saying hey these are how many deals we entered into and here were the parameters that were set that we met we would give you more of that kind of a report you say staff you're corre yeah you know this is part of the greater conversation we've had both both electric and gas um and this is also of course you know we have the purchasing element of this which is primarily what we're talking about um if Stephen were on the line I don't think he is but uh this is the conversations we have you know what do we put in a budget for how much the city for the next fiscal year is planning on spending or our side the wholesale and purchasing the gap on purchasing the electricity what this does is it helps us Define that budget more carefully with some of those savings and as as Katie said sometimes we win sometimes we lose right sometimes it's high sometimes it's low but it's the cost average which what your goal for your end for your customer is is to stabilize what their monthly overhead would be so that their bill doesn't go from $30 on average to one month all of a sudden it can go to $70 one month and that's also how we would accomplish this again as Terry just alluded to it would be you know obviously his Direction getting the data recommended from fgu and we would change the ordinance is basically what we would do we would write this into ordinance you guys would give us parameters and then operating within those parameters Terry would make those calls or whoever had the position would make those calls in reference to what they thought was the best thing to do um so that's kind of what we're looking for that was the direction and the reason for the presentation is to see if that's something you guys would like to see drafted up as part of our ordinance changed and to work toward this or you know is this something that you guys think that we should just continue in the path that we're currently on what is the path we're currently uh we are at the shall we say the mercy of the mark market right now we do have some of our what we call our prepay and Katie can talk about those for a moment that's when she's come before to Y all and talked about there certain things and I think there's four of them that we can have I think we currently have three if I'm not mistaken um how much how much of that prepaid we have currently you we have that you can go up to 80% I don't believe you're at your full 80% yet um so we would be looking you're probably at 60 to % right now but this can be layered on top of it this is a financial product on top of that prepay so do we have let ask another question do we we have any idea right now today you know right now today we're paying for you're probably well so on the raw commodity or what you're actually passing through your custom so the raw commodity is probably around 350 um but then there's Transportation costs and and cost to get it to your city um which maybe adds another dollar on there roughly dollar to150 um so again that's in decs so that puts you at what is that roughly 50 cents kind of rough math so um so if we lock in 50% at the current you're talking about the $3 rate what is the current locking rate yeah so we're talking about just the raw um gas so right now that's what I'm saying we're at about somewhere about 350 and the Futures Contract when we pulled it it's been a couple weeks but it was a 339 but again you're locking that in for a full year so kind of to Donald's point or that one graph that shows how it spikes in the winter this would lock that it takes into account the highs and the lows and gives you one price through the year so when the prices go up in the winter say they jump to$ five you're still going to enjoy that 339 so it might not look like huge savings over the summer but then you'll just we like it what we heard from customers during the basis blowout was not necessarily that prices were too high it was that it was too volatile it was things like and it wasn't necessarily the residential it was the commercial saying I can't price my telephone polls because my inputs keep changing month to month how can I bid projects so they were just wanting that stability and to have a budgeted number so that's what this helps achieve is that you you're not saying to Donald's point it's it's my gas bill is $50 one month and then it's $80 the next month this kind of helps smooth that so it might go from like 50 to 52 but it just kind of helps keep those big fluctuations because again in the winter you're going to then have more gas usage in general so the bill is going to go up because your usage is higher but this just helps keep that price per unit stable so people aren't shocked with the bill so let me ask you this so we're talking about locking in up to 75% for um how long one year and then we would move 50% we would do this at the the same time so what we would do is just they would stack on top of each other so say we do 25% for three years out and then we would do 50% to years out we lock that in right now because what we saw is that nobody projected that basis blowout in 2022 so we had some cities like Tallahasse and clear water have a rolling program they were paying $220 what everybody else was pay because they just kept it right they just have this kind of rolling along all the time so that's what saying so it'll it's not we wait for 75% and then do 50 these will all be locked in at the time and they just kind of stack on top of them as don't that's kind of the Rolling part of it that's the intent of that so let me ask let me ask you a question because you're saying they had the call out price is what's helped them even though like someone like Tallahasse or clear water they had the call out Price Plus the lockon for the future so they were able to utilize call-in price to do what so they so they had I don't know exactly the percentage but say they had 50% tied up in in the hedging that they were only paying $2 for 250 or something like that and then when the prices went up to six seven dollar that averaged out so then their average price to their customers was like 350 a decm or 35 cents a THM when everybody else is just pushing a dollar so that's so they used it just again to help it's um you've heard of like rate stabilization funds it's the same concept we're just doing it at the market level rather than once it gets into your actual billing it's the difference between prepay rate stabilization like we're doing with the electric where the fund is just sitting there to be utilized for reimbursement and as she said just going ahead of taking care of it on the front end to average out that price cost I think the one the one big question we have to know and I apologize for not knowing this question and St is not on the line is how much money have we committed to next year's budget so we have an idea what can H right yeah well yes she'll use that price though we don't really need to have to go it she'll not she will B now yeah and it so it's not a total dollar amount it's the price per unit so um I think you participate with fmpa right it's exactly what they did they backed into the gas price there from the per kilowatt price kilowatt per Mega k kilow um so they backed in they said to achieve this price per kilowatt we know that the gas has to be at this price and that's how they hit their threshold for what they lock in we're just going right to the Gas part and saying whatever your goal is and what you're going to pass on your customers we're going to meet that or flow it so it's a very similar concept we're trying to make those as similar as possible since you're familiar with that and it not only helps our budget but it helps our residents budget correct it's almost a no-brainer because they do all the work we try yeah try we just have to figure out the percentage that we want yeah and and all of this is what we proposed was just we're actually proposing this within our own staff as well to all of our members we call it our system Supply so on that one chart where I showed um your 75% 50% 25% and there was that little bit in difference between what was shaded and what your actual usage you buy that daily from or we buy that on your behalf daily what we're saying is that go that's part of our system Supply we're proposing exactly the parameters I set for that system Supply and you would also get the benefit of that so that we were just trying to keep it consistent but if you say those percentages are a little too aggressive right now let's start smaller absolutely these are all negotiable all flexible do I remember that you store it on our behalf until we need it yeah and there's some of that prepay as well that we reference you get some of that from the syst supply as well so so I think my question would be is I don't forcee the market it could go down I guess it could but you know we do know some people that locked in when the prices got bad and now they're playing paying more and we're not even near to that price range um you know if we were looking at locking in what we're currently paying um would kind of make sense I mean because we really don't there's no projection that's going to go down and as everything does it goes up so at least over a threeyear period right three years a long yes three years that you know we can manage what we're paying or and to solidify your point one of the biggest things that fgu has talked to members about is what's going on in the European market yep I mean that's why these facilities are being built uh with most of that gas supply coming from Russia and right now that being disrupted uh they can make a lot more money liquefying that and sending it overseas and that's really one of the biggest problems with the supply and demand over here in the states and that right now doesn't have any hope of ending so you know this is definitely something that's going to be ongoing for a period of time so when you said that place caught on fire right and the prices Dro that that's a part I don't understand I would think prices would go up because everybody's anticipating demand is going to be down because they couldn't send it out of country that's what it was all the gas that would have been going to that facility was now having to go into the market area so it just the supply for that and so everybody thought oh we have all this extra Supply that now these people have contracts they're going to have to they're going to be giving it away Y and so then everybody you know got excited and then all of a sudden the facility said just kidding we'll be taking it again and then it was Panic got it okay but you're absolutely right with the prices like we see it we did have prices down about $2 we even got below that the market cannot sustain that these companies can't afford to operate at a loss so you might see these little dips like that but it's not sustainable those are those are much prices are like you said they're much likely to go up more likely to go up than they are to go back down to Dollars and this is just our natural gas be mindful this not do correct this is not tied to your electric it doesn't affect the people that are making our Liv right they're hedging they are and they actually are doing it through us so you are actually getting the benefit but that's not what you're talking about right now but yet so Katie just hit on something I wanted to bring up so we were both down in my in West Palm for the conference and fmpa has a new clent just came online propane plant and they're doing exactly what J's talking about to us they're already doing it for themselves because the people we buy our electrics through so just something can you hear me now okay so I believe you said that this would happen in a 24hour period possibly that yes so my what's going on in my mind is if you if your company was just doing this I would understand it but how can you possibly get with staff staff get with the council and then get back to you and then authorize you to do it I I would understand it more if we were just authorizing you to do it we are correct that's what we would do yes so but you said I would get we would get with staff before we did anything yes so we would call the city managers so what we're asking today is bring for the the council to approve the parameters and then when we see that the market operates within those parameters we would reach out to the city manager and say this we think that you should lock in this and he would say yes or no so that's how we he would be the one on Firing Line once we give him permission to be yes yeah once thank which she could then say we're on the firing line because we're going to recommend it I understand but I just wanted to make sure that the the mechanics of it were that we have a person that is in charge of it because frankly we as a council are slowest snail huh yeah sorry that's okay I mean we know it we're government we can't move back okay so so this thing is designed that you will see and dip or for a promise in the market you will just talk to one person you won't have to go through the council or the mayor or any of that you talk to one person they will agree with you or disagree with you and that one person will make the change that is correct thank I have a question so once you lock in and so if you um so you can lock in a call at 25% you can do that from the start you can you can use either product from the start but once you've locked it in you can't you can't undo that you can't it's very expensive I wouldn't recommend doing it um so what that's what so just because we have up to 25% doesn't necessarily mean we locked all of that in at one time unless it was very favorable so of the 25% let's just say I'm making these numbers up we can say 10% into the first deal and then maybe another 10% into a second deal and then that 5% does that make sense so we we might not do it all at 25% unless if you could lock it in like at 250 we would lock that in all day long at all of them out so it kind of just depends what the market is but that's when we would reach out to the city manager and kind of give these are the options here's what we would recommend but get his feedback but you're looking at over a threee period at 25% or is year three first year is 25 second year is 50 other the way around so one year the fir so from now so basically your next fiscal year at this point let's just talk fiscal year your next fiscal year we would lock in up to 75% of your average usage for that next year but at the same time we're going to lock in up to 50% two years out and we're going to lock in 25% three years out and the only reason for that is just to give you some kind of like a Basel load price so that it just helps if anything changes in the market you have a little bit to help offset the the volatility did I just confuse you even more oh yeah oh yeah so my math is rather simple I actually used to use the Sate plad uh you just said 150% so 75% one year out uhhuh 50% you about 75 they're layered on top so the 20 so so imagine 25% is another 50% correct and then you have then you have 25% that only goes two years out and then you have 25% that's just one year so they're all stacked on top of each other to equal Place goes really crazy we're out three years protected ourselves yeah they layer that's why I say you let them do it that's what the good thing about it is and and I and this this is what the a lot of councils do you guys are not um this is very normal it's I know it's overwhelming and the reason we try to do this is we do think it's really in the best interest of your customers otherwise we know that this is a lot um to try to digest so but we do think it's worth it and we do think it will pay off and that's why I said we can bring some reports back and kind of show you so that maybe when you see it real examples it starts to clear up a little bit and as I said it protects not only the city and our budget but it protects our residents but each year you have the potential of getting it locked in at a the real benefit for it is it works out really well the council could take credit and if it fails you could blame the city manager yeah that's why the city manager has one more question so um you know and I I understand all the I asked the question for a reason so maybe you shed some clarity on what we're trying to do here um my my question is one I don't know the answer to let's say we lock in at 350 and pay an extra dollar 450 for a decm and all of a sudden prices drop to two bucks right where do that other $2.50 go to so in a call option or a future contract either one what I want to know when I'm let's say that on a Futures Contract I'm locked in at 4.5 and it gets down as low as 2 2.5 so there's an extra two bucks running around there who's getting that $2 okay I'm gonna give you the answer to this okay tell me hopefully I don't lose you so this is all Financial okay so we're still going to go buy your gas at whatever the market rate is you're still going to pay the market rate for that gas regardless right the financial side is it's done through margins so whoever are Clearing Houses if you if the market's at 450 and gas is only at or I'm sorry you locked in at 450 and the Market's only we have to pay that clearing house that 250 different we pay we literally have a transaction with them every single day so but we do that on your behalf so we don't have to reach out to the city but so on the flip side if you lock in 450 and gas prices go up to 650 they credit us back so it's basically we're we're having an exchange of money every single day regardless of what the Market's doing but then at the end of the month when it's cheed up we put that onto your physical gas cost so you only get one bill and it TRS up the physical cost of gas and then the financial side does that make sense y got the clearing or not so basically whenever you lock inight yeah so whenever you do a hedge so whether it's a futures or a call it's always somebody on the other taking the opposite end right that's what hedging is is somebody agreeing to take the other position so the easiest answer is that other side gets it so either they make the money or they're the one paying us with the difference but you're always one month next month but I'll even that for that all right so do are we do we need to bring this back for resolution or so um we would actually like to work with Kirsten and fgu we would like to actually modify the ordinance and they would help us and then Kon would review it we would bring that ordinance back tonight we're looking for what you'd like to see in the parameters so that we can do the ordinance and that way once it's done an ordinance it's just something that's part of our gas program the same an ordinance we already have or make a new one no we would completely just amend what's what's been done amend what we already have yeah and that's part of the whole initiative that we've tried each year to look at all of our ordinances and utilities and just make sure they're updated to the the latest and greatest basically and I think what got us here is the Summer where I get it was summertime where this this place was packed when we are charging nine bucks Neath with angry people yes absolutely with Happy People yeah um so so with the and we have we have I keep get what's the fun me rate stabilization we have one of those just to help also um and then blocking this then will probably help that I don't think we'll have herds of angry people in it goes up and and that's a great Point these this is not to replace the rate stabilization fund these are to go hand in hand these are just more tools to help help stabilize your rates but they go hand in hand yes as a matter of fact it goes to N Buck everybody else nobody's because they don't even know that it's got n bucks because they're still paying the normal rate which is a good part all right so I think we need both of them real so how do we know um what to change or what to look at in right we're voting on it now no we're voting to give it right bring it back so so just but we have to give parameters right you're you're giving us parameters you know you're going to say you know do you want to be aggressive with the proposal I wouldn't even say there theirs is actually kind of intermediate theirs is not really an aggressive proposal aggressive proposal say you do 100 100% first year so you can tell us you want you know it's going to be aggressive intermediate which is what's being proposed or very conservative so that's kind of the parameters you all would give us we would work with fgu to draft that language karon would review it make sure that it met the legal standard and then come before you guys and it would have the two reads I mean you know you'd be able to you didn't like the first read and you guys discussed it you didn't like what was there we would go back for another first read we keep doing that until you guys were happy with what those parameters were but if we don't even know what the ordinance says now how we really give you give so so what essentially what you're doing right now is we we also don't know exactly what the wording of the ordinance is going to be so but what we're saying is we're going to need to draft one and there are going to be a couple of blanks that between fgu and the attorney we can't fill in because it's really up to you guys do you want to be aggressive do you want to be conservative do you want to go somewhere intermediate and so that's what you tell us and then we fill in the blanks in this ordinance then we bring it back to you after you've given us the sense of what you want your parameters to be then we can fill it into the ordinance put it in front of you if we put in front of you an ordinance on first reading and you say no I don't really like those parameters anymore I've changed my mind I want to be more conservative I want to be uh you know more aggressive then you can change it at that times just so that we don't bring you an ordinance with a bunch of blanks in it essentially is what it would look like without you giving us a sense of sort of how you want to pursue this so are you going to give us the ordinance where it's currently written along with the changes that you're proposing to make so like I don't know what the or looks like then how am I GNA that's fair so always how we have to do it how we're required to do it is your ordinances will have a strike through version which is basically a Redline um version so anything that we take out of the ordinance will be stricken through so you'll be able to see that and then you'll also see underlined anything that we add to the ordinance on top of the business impact statement on top of the business impact statement how many of your customers did just went ahead and said 25575 nobody nobody said no I have a couple more of these presentations to give so I expect that number to go up and like I said some of our members actually have programs already in place so I'm they're set so but but more and more of them are going in this direction so that's kind of in the median of the different levels where you said we could be aggressive where would this one like at 2557 where would that fall we think it's a sweet spot so it's not super aggressive but it's enough to help reduce the volatility right yeah kind of in the middle it's it's probably a little bit more aggressive than conservative this like up to 75% um um but we matched fmpa just because that's what everybody was comfortable with and had already received approval so we were just trying to meet the same criteria for consistency and I will say we need to do it fairly quick while the price is down because it will go up we do think it's gonna go up for the winter yes and and if other certain things happen too it go up it couldn't be more than that yeah couldn't be any sooner than that and that's if we get it next read we will do our darnest will kind like the I like that 257 yeah and and the the 75% the reason we're comfortable going that high is because the market we kind of know what that year out's going to look right the market doesn't usually get away from us that quickly the 50 the two years out three years out is the one that's not as known so we're saying lock in enough to help kind of offset those big spikes but it's not so much that if the Market's conducive that you're too locked in so that so that's why we're comfortable with it because we can look at the next year out and the curves you saw they're pretty consistent they don't have a lot of volatility in the in the models so what would aggressive and what would conservative so real aggressive as Donald said would be like 100% up to 100% where you're B trying to reduce all volatility um that's that's probably a little more aggressive than we would be comfortable with just because you then have no flexibility um conservative I mean even 25% I would almost say that's that's too conservative because that's not enough then you still have 75% at the mercy of the spot market right so so that 50% I think is kind of that sweet spot for conservative because it's enough to make a difference but it's also still leaves you quite a bit to ride the market so um I asked earlier about when this rolls over every year so say Year from when we agree to do this or Year from when you lock in these prices what's what question is asked of the council at that point do we want to continue or do we want to stay or change that's the question that can be up to you so how we're currently presenting it is we would not have to come back this would be set and we can just keep going in perpetuity if you don't if you aren't comfortable with that you certainly can put in uh you know check-in periods an automatic renewal unless we decide we're not comfortable with how it's going do we need V or just give us a a general consensus of the direction that you all are are happy with and we can move forward putting that together and you need to know whether we want Futures so you scroll up a little bit I think the last slide on there had the parameters that we were recommending there you go that's the recommendation so there's the three things that we need some direction on so the products if those are Futures and work call options which like I said we we recommend saying giving us flexibility to do either one um the quantity that's what we just discussed up to 75% 50% 25% and then that strike price is tied to the budgeted price per thir in in your city's budget and you would recommend future future the Futures and the call options correct that's what I heard that's reced all right thank you Council yes thank you very much for your time thank you for coming thank you all right section B resolution 2024-the for the school crossing guards for the 24 2024 d225 school year and providing an effective date city manager Derek bra thank you Mr President so as you know this is the the crossing guards is actually used to assist Chief rolls um I mean it's been in place since 200 six I think was the first year we did it over over the years we've negotiated it we it's up to paying minimum wages where keep patient with minimum wage as we go forward um so it's something that absent this I don't know how you yeah it would be almost impossible but at least with this you we have this is what pays the Rev to do his part um the only the only downside to this is is that you know if one day they rep sick or something like that unfortunately Chief's got to staff it as we've done before it's not that big of a deal is just that we got to send a police officer there to take care of the crossing you know if the rep out I think probably the whole time that Police Department that happened once and we sent Cod so in this D that's probably what we would do my recation approve second we have a first we had a second any other discussion seeing none all in favor say I hi by section c resolution 202 24-8 a resolution of the city council of the city of Willison Florida authorizing city council president to sign a renewal agreement with the Florida Department of Transportation for the traffic signal maintenance and compensation plan for the fiscal year of 2024 2025 and provid an effective date utility director Jonathan Bishop yes so this is the traffic mess uh report or contract we do every year uh it's pretty standard everything's the same and it's an increase of $1,248 over over last year pretty something something that we do every year yes sir okay all right I will entertain a motion questions you said increase how much 1224 $1,248 for a total of $4,260 Cent and are there lights at all of these places yes there's still one at at Southeast T no this is for the traffic lights not not the do street lights stop sign or stop lights green lights yellow lights I know but yes there one at 10 no ma' okay so where is that $780 light the first one it's definitely not a 10th or not the 10th that I know of it used to be a school crossing there but it's not now yeah I don't have an honest answer for that to be honest I think it's the old school Crossing light that's not there anymore that would make sense I'll get back to you I don't know I don't have I mean I hate not to take their $780 but I don't think the light's there anymore you're the way the money's ours yeah whatever y'all think don't think it does say Southeast that's that the one down by the what was by the car not car War laundry laundry been me too we talked about actually putting one there last week was it last week Jackie asked for a light as we came in to slow people down right there with they're going across so tell them we want the light back could could they put up a sign it just says caution with the yellow light FL I mean we talked about it last week our last meeting it's not that easy but that's what you I know it's not that easy but there's school buses and people cross the road the school bus stops there no I agree so if that's your direction I work on it and they've got it on there not to mention it's hard to see as so people have to pull out a little bit further to be able to see whether or not they can go that's your direction I work on it is give them a warning before they need Alex yes sir and even instead of saying school zone if it's said a roing School Z you know like we talked last week which is a true statement you're approaching like three school zes right there president Cox if I may you may um you guys remember we have that Safe Streets for all grants that Walt is managing and that'll be when we find areas like that that's when we go back and we tell them that we need to put it up and then they pay for it very good yeah so maybe a little while if we have to wait for that but uh we'll put that in for now and then if we have to wait get it paid for we'll work on it thank Mr May the amount that they're charging us it include that light they're paying us that's the amount they're paying us to maintain the lights oh okay so they're pay so if there's no light there they're paying us for light yes sir that's what I said either way either way we're getting money okay I like that that's why I said I hate to take the money away but I don't think there's a light there they can't keep tracking their lightbody El have any other discussion Mr y little advice maybe maybe Council attorney will give some but I would probably not execute this contract knowing it's improper it's improper not I would not sign this knowing that it's not correct well are you saying about Street yes sir would you like to leave the room for a minute no no there may be another 10th Street but I'm unaware of any other are y'all do y'all know of any other 10th Street that had a even used to have a light much less has one now that's the only one I can think of and it's not there anymore I will concur with the city all right so should we table this till so Council I do want to point out that I believe that um you're talking about The Pedestrian flashing beacons right right because that that's not a light the traffic signals are the 4,000 The Pedestrian flashing Beacon is the one that's being referred to of 27 and 10 and that could be that they have a plan or that it's in the comprehensive plan to have one established there so I agree with what you're saying but I I think that if we clarify with them that's their intention to have that placed there and us to have it maintenance yeah I think that my recommendation would be that we I mean you can approve it upon conditional upon staff confirming that light that pedestrian flashion Beacon actually does exist do we just want to table it you can do that too I mean it's up to you you need to let give a report because coming to me on my phone it's somebody out of the room that's coming to me on my phone all let's finish this one and MRI nice so how would youall like to do it approve it so we going to table or I right I I would whoever makes a motion gets a second I would move that we accept resolution1 as approved by the op after the question all right any other discussion so does that mean he's going to wait to sign it or is he going to sign it now that means that there's no execution of the document until staff does what you don't have don't that's correct any other discussion see none move to vote all in favor say i i i five vote all right next is Miss lri a brief call the counts that I have are from City Hall here in Williston they're not off for Tammy's website so I only have the counts from here and the counts from here was meredi 157 star 161 but if you look on Tammy's website it is different uh they still have more votes to count so these These are unofficial I will have the official count on Thursday is she within that 1% where they would have to do uh another election so the one off of her side is not right the one off for her site is up to date yes it's more accurate than mine mine is just for one Precinct there is only one precin but but they had more um voting early voting and Mill and voting yes at her priting yes show number for this shows 100% the voters here at precinct 7 was meredi 157 Stark 161 this this one says mered 316 start 314 right so I say that was from the other from the main which is proba why we should wait until I'm sorry i' say this includes all the early voting and the mailing yes so un uh these are unofficial official will be Thursday after that he do a re recount what did you have uh I have 316 for Miss Martin and 314 for Mr Stark for a total of 630 and to be clear it's not what you have that's what you're saying Tammy has it's actually what I got was a text from Mr Stark that said please congratulate Miss mark That's what I got that's exactly that's what I'm her website that's what I was asking thank you but it's so are they going to have may I would like to say that it is refreshing to see that kind of activity in an election in instead of nobody want to be elected and people being moved forward because nobody was willing to do it I think it is refreshing and it's a good sign for us that we are having contended election thank you all right so now we all can put our phones away because it says so on the back the rules cell phone supposed to be quiet did you hear it supp we're not special I don't feel any special than these people back here so thank you all right section D resolution 2024 d82 a resolution of the city council of the city of Williston Florida approving need assignment of lease and acceptance uh assignment between is it N1 or ni N1 okay way these are done N1 5jt LLC Willison Aviation LLC in the city of Willison for property at the airport identified as hardstand n amending the lease between Williston AV ation LLC and the city for property at the airport identified as hard stand n to include additional land authorizing the city council president to execute all necessary documents and providing the effective date Airport Manager bent thank you Mr President uh Council what we have before us tonight is uh a little bit of housekeeping for us out at the airport um during the construction process of a hanger on what we call hardstand 9 uh the the Builder got a little overzealous with his parking lot um and paved on some land that wasn't actually within the confines of his lease um so we we had him come out and at his cost um do the survey and you know once he got the legal description we sent it over to kirston then he made a request at the same time to basically change from you know one LLC to another LLC to do a little housekeeping on his end U so that's what the assignment and acceptance is for and then the amendment is for changing the the size of the land Le so it's going up in size which will generate a little additional revenue for us um with hardly any other impact on the airport so we're increasing the size because he went too far with his May yes it's it's in an area where it's not going to affect anything like he's on a he's on a hard stand way out u in the middle of nowhere there's hardly anybody around him um he's probably one of the closer people to a Runway but he's still far enough away that that that parking lot won't even affect that and if anybody wants to come by I'll happily take you on the golf cart right over there I'm a come on anybody else have any questions there's not really any alternative I mean other than ripping up statement yes ma'am so we're making a little extra money yes sir and it's still the same people assigned to the lease just a different corporation that he owns yes ma'am and it's a viable operation yes ma'am to clarify it's an LLC right it's not Corporation anybody else have any questions or anything all right I will entertain a motion for resolution 2024-25 any other discussions all in favor say I I five thank you ladies gentlemen all right section e resolution 2024-the the city council president to sign contract documents for the federally fly funded small cities neighborhoods revitalization Community Development block grant awarded to the city of Willison for fiscal year 2022 Fund in cycle city planner Laura Jones Thank you Mr President um that's right it is 2022 funding cycle I had a couple people ask me if that was correct remember back in October we were told we rewarded this um you you did a resolution in May um letting us do it and then you give gave us resolution again letting us do the match so we're now we're at the point where we're ready to sign the documents I don't know why it takes so long they're already sending me emails about the next cycle so um but this is how long it takes so don't get confused this is the one that was $700,000 and we did have a match of um 6275 and if you want specifics on what it was Donald could probably help you or maybe Walt but this is just to make sure that M Mr Cox can sign the documents because before it was Miss Jones she was our president at the time they're basically changing names yeah it is the lift station in on Southeast 9th I believe and two paved roads Northeast 9th uh Street Northeast Northeast 9th Street it's the one that was in the gentleman's yard yeah the city owns property directly across the street on the east side of 9th Street and we have property there it's going to be completely rebuilt dismantled in his yard um upgraded and then to get the points a benefit of that in order to be awarded it was uh that's about $450,000 of the grant the other money is going to repave and resurface Southeast 10th Street Southeast 9th Terrace Southeast 9th Street and sections of first and second a between yeah um so we're actually getting paved roads and a lift station out of it so we're really excited on that's awesome thank questions move resolution 22483 approved second we have any other discussion seeing none move to vote all in favor say I I by thank you than you all right item F discussion with possible action fiber Broadband services for Willison on city of Willison electric po city manager Terry Bard IT director Aaron Mills public work supervisor nald Barber so I'm gonna let Donald take the lead on this so this is Def follow up on our uh previous uh council meeting uh Council wanted us to go through and start beginning the process to work on an RFQ for services um for someone to come out a third party contractor and build the system um we had some advice from some Consultants uh the statute was in question we've attached that onto your packet um there were some questions as to whether or not we qualified under it we've reviewed with right Pierce we've reviewed with kirston and they have assured that this project would qualify under that um so this is basically saying from the council yes go ahead and put out the RFQ there is a lot of work that's been done on that um we are basically ready to go with that it'll be very short that we could put that out and um we have a packet that we could follow up at the next meeting that would have that RFQ with all the language with all the caveats um within it so if you have any questions at this time uh this does differ from the presentation uh this is no longer micropops we took feedback this is direct to the home Hardline fiber uh this is no longer 100 megabytes as our largest package it is our standard package will be one gig up and down uh and of course our price point is going to remain the same so um at this time if I can call uh Hector I guess you guys had a question not just for us but for another proposal so we honored that as well and he can cover some of that information I believe there was a packet put on each one of your all's dases well good evening everyone Hector samario with for services before I get started I want to introduce anarie Moore with our company she handles all of the lar surveying she handles our thermal imaging and she's a drone pilot so she gets to do the AAL surveys as well love having in her here we're going to be flying her drone from all day tomorrow here throughout the city so looking forward to that uh as Donald mentioned at the last council meeting you asked me to do some comparisons so I've done that very first page that you have in front of you the only reason I brought that or I'm showing that is I wanted to give you a sense of the numbers because your $50 per um for service is great um that's a that's a wonderful price when you look at local pricing and this isn't average price this isn't what actually charge their customers but what they're generating through their various services that uh 3150 customers generating 6.8 mil that's almost $180 a a month that each account is generating of course that's not per account I'm sure there are some highend customers that are in there but I wanted to give you that sense of it because when you talk about $50 per service you know it's where near that and maybe in the future somewhere you're going to see much more than that slide number two just a reminder a lot of things to look at we're looking at a turnkey solution as Donald mentioned going from the micro Pops to cool fiber from from fiber to the pole now fiber to the homes and we're also looking at uh any other need that the city may have so that those are the things that are coming into play looking at all the cost of of resources which Donald provided at the last council meeting all the things you see there third Slide by the numbers I I wanted to share this with you because when I looked at Central Florida fiber and then he was wonderful and providing me with information and I looked at your numbers obviously the numbers were different number of customers what you want to charge per month how many customers you going to have uh subscription percentage all these things were different so what I did is in order to compare apples to apples that you could take a look at which one made the most Financial or technical sense was I highlighted those areas in yellow uh I used 4.5 as a project cost that came from Central Florida fiber I used 1,048 customers starting in year three as your Baseline I used again Central Florida $70 74 cents average cost per customer uh and then I Ed an annual poll revenue of 17,000 from Central Florida to the city from the city I a lot of various numbers that are there um what I'm using from the city is that 565,000 460 annual cost I started in year three of what it's going to take and you for you to operate the your fiber internet so those are the numbers that I use so on page number four see what I put put in there see on the left side again I'm just looking at 15 years I used a consistent 1048 on number of customers every year and that assumes that there's never any growth you're not going to grow internally you're not going to have any new developments it's a very fixed number and again I use that 7074 uh monthly rate and I did escalate that at 3% but I did that for all scenarios again just trying to be compare apples to apples your operational expenses I jumped it up was a year four that it went to the full $565,000 in operational expenses to run your fiber The Debt Service again I use a $4.5 million for The Debt Service and I subtracted that out bottom line is when you do when I ran those numbers you still would net just over $2 million in this scenario change any of the variables but I wanted to again comparing Apples to Apples so in this scenario you you net to $2 million slide five 15 years Slide Five I said well what if you were to increase your customer base by 3% a year so you would jump at you know 10 20 people a year for growth or for just just natural customer capture I wanted to share with you that that happened at 3% I'm not saying that it's going to happen but again I wanted you to get a sense of what you might be able to accomplish and you see that number jump from just over two million in annual net revenues net revenues that you be able to put into your budget jump to $5.2 million so again two scenarios so then I went to the central Florida fiber uh scenarios and and Denny certainly is welcome to correct anything that I've done here but their numbers told me that they were to they were you would net $211,000 I gu some change a year that's what you would net so I added to that that highlighted line uh 18,000 in po po lease Revenue so that's why that in first Circle you see there is $229,000 what you would net starting in year three and then I grew that at 3% cost of resources because it's going to be shared 550 instead of that 565,000 that was presented to you last time I cut that in half you're going to share in the in the equity and the revenues you're can to probably share in the in the maintenance so I had to make that half half as much again that could be lower it could be a little higher these are just numbers plug into the formula um and so when I ran these numbers you see that at the bottom you are in the hoe $3 million you didn't make not only did you not make any money you lost three million it cost you $3 million in this scenario and then I ran one other scenario again based on the numbers I've provided by Central Florida and that number is I said well 21 that seems kind of low maybe maybe they're really splitting half the revenues that they are projecting and the revenues they were projecting is $889,000 so I said well let me just cut that in half what does that do to the to the numbers and even when I did that you would net just under $600,000 down at the bottom bottom right corner so in these Apples to Apples to Apples your best Financial Choice clearly was keeping it in house haven't answer any questions but I wanted to run that comparison for you as requested at the last counc oh sorry I was going to say my first comment is that there's no way in the world that we're going to have 19928 customers you're right I used a th 48 all the scenarios okay M Jones that that's growth no that's that's growth do what that that was growth the projection over the 15 years I'm looking at this page right here right that's uh that was just a potential customer call it your electric electric service how many customers did you use another one uh what you see highlighted there on the left side subscriber say 200 the first year 600 I don't think there's any way will get 1,48 this is what again we don't have that many we have barely that many utility customers we have I think 17 or how many utility customers we have roughly 1,800 customers including the water and sewer that are not no but we would we would service everyone in our service District okay that's what the design construction would be that's what the parameters are we would run fiber to everyone that we offer utility service too even if they're not in the city first time I've heard that oh yes that's that's always been because I think we only have 900 and some that are in the city limit uh that aren't water in or that are out of the city limits it's roughly 1,200 I believe in in the city and I believe the the the rest what you talked about would be Water and Sewer those would be outside that are outside yes ma'am but we won't get them all I mean I I think we'd be lucky if we had 17 if we do have 1700 including the ones that are out of the city limits and we got half of them even if we got a thousand of them thousand of 17 I don't think I don't think we I don't think we would with there so any comp so much competition that we have now I mean I love the numbers of the Williston that he's presenting for Williston but I I don't think it's realistic I don't know how we would ever get that on that number of people so we just took the numbers that were done on the grant study and we took the numbers that were provided by the connect humanity and the lit Grant and we just translated exactly what they studied out that was when they were going to recommend a third party partner and that was like three years ago no ma'am that came out earlier this year there just so many other people in the market but I don't know how in the world you'll ever get everybody I just think it's but of course if you cut that number in half it's still a lot of money but even if you don't get that amount of people um if we Outsource it some to someone else B based on the numbers that we're seeing we may come out with nothing right so even if we did it in house we would have get something right is that is that what I'm hearing that's what we're asserting I mean that's up for yall to decide we're just here to moving whichever direction you guys desire and we have to look to the future if you have this as a council if you decide to do this Buist is growing and you know you're basing all these numbers on existing customers but in fact Williston is growing we're in a prime location it is my belief you're going to continue to grow uh I don't have any strong feelings either way but I think we should this is just like I remember Gerald heco talking about gas oh he used to rage about we we weren't pushing gas enough uh and it turned out even was right yeah yes it's a great thing and and I think this is what I've been thinking about is we provide utilities as the city and I'm just looking at this I think it's another utility I think if you choose to do it I think it's a good idea but we have no gas competition we're it if they want gas they have to come to us unless they have LP bottle so go go ahead I'll go my my question um was say for example example the proposed RV park that we would be providing utilities for would they be considered one customer would each [Music] individual so that that's one of the discussions we're having in the developers agreement meetings with them there's two models that we would propose one would be wholesale which wouldn't be a as Hector mentioned a normal $50 charge um and then the other model would be we would actually be the provider to the residents there and they would be month-to Monon uh no contract of any kind and we would Serv as them the point would be whatever was done the infrastructure would be run and paid for by the developer we make that very clear we would not be paying to spread out as new developments come in we would update ordinances codes things of that nature and encourage them that all of these things need to be done underground and adopt standards that meet U what we would want to see in the future irregardless of whether we're the provider or not yeah we don't encourage them today it's a requirement if if you come in and you develop a new development City you know um you're going to have to put in telecomunications along with whatever else my understanding talk other people that they can run it next to the power same comp so a good example of this would be country Lan Estates uh they did have any option at that time and so they contracted with Sentry Link and they paid quite a bit of money um Mr Garcia and Nick from lenar stated that they were they had a huge price tag to have Quantum dedicated just to those 98 but it was important for them obviously in marketing and selling those homes uh we've already taken on five of those homes from that package that they paid a fortune for onto the existing cing um the town homes came up the other day and lenar is again interested in basically then partnering with us that's the discussion now so there's outside of our normal customer base there's 58 customers right there uh and again they would put in and pay for all the infrastructure we would just provide the service so and just to clarify just two more things real quick so when we talk about the new developers we will do that regardless of what internet services provided yeah it's just going to be that's what you going to have to install when it comes to the RV part I know that uh the general manager there has asked us several times so they're looking to get out of and that's 400 customers we don't have in this metric either but that that would go either way whichever way we decide to go and the $70 is throughout 15 years or is it going to increase he was comparing Apples to Apples to be fair to both proposals as far as Revenue forecasts um we're not proposing $70 we are proposing $49.99 and that's one gig up and one gig down that's both for commercial and residential we don't we don't see any need um you know it's great to have profits and some of these numbers are really attractive but for our perspective from the staff is if it's done through the city it needs to meet a need and and do something for the residents across the board not just those who can afford the you know kind of supreme packages so we we we're not recommending to do any more than $50 and if we voted to go with you how are you going to advertise this in order to maximize the um that's a great question so part of the RFQ that we've already started developing with right Pierce to put out if you guys approve this has uh within the design and construction for whoever bids out on this um as as a requirement as being part of that is the marketing so as it's being installed by third party contractors and being hooked up in real time to homes they wouldn't build the whole system they would do one street and then that street would be marketed be marketed through the company and it would also be marketed through staff and what's your time and what would be your timeline um to have it completed so we provided Terry and Kirsten waltd an RFQ schedule that we've got as a rough draft and there's actually a schedule on there um we can publicize that for you guys uh and you guys can look over it we weren't pushing that because we're still in the rough draft the staff was getting it together and um but next council meeting we'll have that ready and you guys will decide if you want to approve that specific RFQ or make any changes to it um we obviously have 30 days for the RFQ to go out once it goes out 30 days to 60 days for contract review obviously there's whoever's awarded it has designed time um but we're expecting construction hopefully to begin uh by the first of next year so technology changes so how does it do in the fiber world you know you have your routers they get upgraded to get better is there something built in to this for upgrades of equipment and things like that that's the operating cost that we provided the numbers that he used from our original presentation that's why our operating numbers are high we don't want to make the same mistakes of the past we want to make sure that you have money invested in capital and as those technology changes are made that annually every year the staff would begin to integrate those into inventory and do those in real time so that's why the operating budget by year three year four would Max out of that amount that we had listed that's not the starting from the get-go operating budget that is an operating budget that builds in capital with no increase to the customer with no increase to the customer yes ma'am um subscribers 70% is that just a just a um what we're going for or or is there a lower number that we're looking at the this this particular by the numbers page was intended to show that if I asked Central Florida for some numbers City for some I wasn't getting the same numbers so I just picked out the like the high cost $4.5 million the high cost for operational maintenance the 5 so I picked out those things to keep it stable because I it would be too hard to use these numbers and these numbers separately in calculation but to it's an important question you're asking on customer base I use 60% that that which a projection from Central FL to fiber um it may be lower it may be higher but let's just say that it's lower the intent of this is not that you know the intent of this is to show you the the impacts of you're do you doing it versus somebody else doing it okay and that slide number four if I lower the customer base to 800 700 your bottom yellow number is going to go down but if I do that same thing the same customer base on the page six you're already starting at a negative $3 million that's going to increase in negative Direction so the intent was to show you which one makes the most Financial sense um through these tables I'm over here like 70% I great to shoot big but I was glad that we're not we're not we're not we're not proposing that and we're also not proposing a 4.5 million either again that was utilized so that there was Apple to Apple comparison we don't suspect that price tag would get near that so as I read this um looking at page four um 15 years from now, 148 customers would you know if if it just even if it stated that amount which would be significantly less than I would assume 70% of our population we're still netting $2 million annually for the city total total net over 15 years the annual net is that 340 sorry yeah I've got it yeah thank you I don't see Central Link putting any money in our system they haven't done it in years so as fiber comes along it will attract people to it to necessarily be switch um I know like and I'm going to use my in-laws they're up in age so for them the fiber is with me for them it my father be shoot does that but um but with the I think that's we could have some I don't think we'll be able to take advantage of grow there I don't know it's just we just have to shoot come out have a good informational packet you know to go to customers with Donald's right the market campaign is going to be key I mean say key but it's going to be very has to be aggressive it has to be plentiful you got to get it out there as soon as possible and I'll add and I hesitate to do this but the RFQ process hopefully is no more than 60 days I mean I you could have this thing fully operational by January if you said start today entire city can be covered by January so your 60 days or whatever is going to take for the RFQ process it's going to slow you down and I think that's where you going to if in the event you can get it started or be done by the beginning of the year you will probably have close to your 70 60 or 70% because a lot of the people who are in the city now are going with another company because we don't have it so if we get it and we are marketing the correct way then we are looking to capitalize on those people as well yes and the other thing that wasn't mentioned um in this cost comparison is you know there if you look at page two of his presentation you guys will notice that it has o andm savings those are operations and maintenance and this was part of the presentation that the staff gave last time you know we have other needs in the future that we'll be talking about scada that's our wells and our sewer and ourt stations having operations remotely so that we don't have spills that we don't have breakdowns that we don't have interruptions in service and then of course you have possibly Ami which is your that advanced metering information that's for the power for the gas for the water so those things not only provide customer portals and service for them but no matter who we go with in the future whether we're on someone else's fiber whether we're on someone else's cellular there are costs monthly and annually in those Services if the city owns those Services then that cost is eliminated in the future and forever on that operations and maintenance cost if we're already paying it for a revenue Stream So you you basically maximize those savings and that's what Hector was alluding to um earlier when he mentioned that there are other savings besides just the revenue that's generated from a customer base so in year four and year five there's a negative amount why is that first of all that won't really happen Okay the way we structure the financing is that you will never in the worst case scenario you break even in any given year generally will try to adjust it's not like a fixed car payment or a fixed mortgage these are we we Flex them based on projected revenues and cost to ensure that that in in any year you aren't coming out of pocket so when I ran this model it's just a standard spreadsheet I that's what it came out to but it won't happen that way in actual life that's the whole point of Statute correct correct cuz then I had to be writing you a check for $33,000 sir right I just I wanted to ask here a question uh this gets approved tonight when does a cone of silence hit when the RQ is issued or now I don't remember looking at you um if the request if the RFQ is approved tonight if if the move forward is approved tonight is that the question but whatever the however it's worded it's not issuing an RQ it's approval to issue an RQ the RQ won't be issued according to Don will into the next council meeting so that going to silence would start at the next council meeting whenever it's con of Silence will start when it's issu correct when it's sent out thank you what is it Con sound sounds like sounds like fun doesn't it the so to give sort of a broad strok answer the point of rfqs rfps these competitive bidding processes that we do is that it'll allows for everyone to be on the same playing field so no one gets Insider information from any members of the council or any members of the staff other than those that are designated to look at it so that you can't make an approve a proposal that would be more favored by the council than anyone else essentially means you can't talk to anybody about the proposal until you get it back or unpair Advantage correct other din yes that's the whole point is to eliminate unfair Advantage okay by the way mayor it's good to see you see you back good to see you back so if we move good to be alive yes it so if we if we decide to move forward then everyone else is out of the running and specifically City no ma'am anybody can build any type of fiber or Internet or Broadband as long as they go through the permitting process and all that what what we're asking Council to do is you only own one piece of property that's your asset and that you dictate what happens to it and that's the polls and so tonight all we're talking about is what direction do you want those polls to go do you want the city to develop something on our asset do you want us to partner with someone or do you want someone else to do that that's the discussion we're not we're not forbidding or stopping or preventing anybody as the one gentleman was here in his cute Pants last time um he he he's he's 100% right it is a free market and this is not like gas this is not like power this is not like water um anybody can enter into this space yeah and and not to put too fine of a point on it but not just that anyone can enter the space and they they can it's that we cannot deny them that opportunity so it is a forcibly Market that we cannot if we have a good product we'll get a good return if we don't we won't it's all about that marketing that you brought up on how we're going to present it because right now with what we have how we rolled how we rolled out the initial cow link they don't trust us they meaning the citizens they don't trust us so it's all in how we're going to have to prove that we have a better product that we can service that product and that we have that product and it's ready now I don't know that they don't necessarily trust us I mean a lot of us didn't know about they I have been trying to get internet since cowling first hit the pasture so once again A lot of people do not know about cing because cing is centralized in this area but it wasn't sold that way because there is no line of sight well that's what I mean it was line of sight and it gave us bad bad rep because of it right Mr President if I may it may be that people are not the the C that that you guys know and love um that was uh given to us a as part of a grant to test whether or not we could do the internet in downtown Willison and if it worked we were going to move out so we didn't Market it to outside downtown because we we didn't have it it this was a test so I don't know anybody who's unhappy who's hooked up with cink that has it the problem was we didn't have the funds to spread it out past downtown and that was the whole point of the two grants that we received to we were I mean we we were a test that they said that we are one of the greatest tests that they've done they invited us to California for a week to show off what we've done um so I I believe that we they can do it but they're going in a different direction from cink so that's why you know they're changing the name because it's not even C link anymore now it's fiber so cink isn't um wasn't a disaster it wasn't a failure it was what it was supposed to be and I didn't say it was a disaster or a failure I have it at two places and and I use it and it is good thank you but there are those who can't get it just as you've said Miss H um and and they are not happy with us because they can't get it even though it's they can't get it and it's just because it's line the sight but we are going to have to sell them otherwise Absol and tell that this is a totally different product and hence why the name changed exactly heard that before either and that and that's why I'm saying it's not always necessary that people don't trust you have to know about in order to not trust you know what I'm saying you understand what I'm saying so I'm just saying we need to be careful with the word that we use when we talk about different things about our utility and and we took a lot of you know we we we heard what y'all and the resident said over many months and we took a lot of that into consideration I mean like I said we didn't have a chance to announce it but the RFQ that you will see you will see a name change because it needs to be it is a retirement of that experiment and it is a dawning of something that is completely different than what we have and the other you know criticism obviously was the timing of it we recognize we do have a limited staff so the whole point of the investment at the beginning is to have have the payoff at the end and capture that and get to Market as quickly as possible so third party contractors that's all they do they will be coming in and they would be doing the install uh even all the way to the home I mean we had even hibrids of this okay well we'll have just do the middle and last mile and then we'll do the connection of the home and it got to the point where no we just need to get it there we need to get it done in a professional manner it me all that's going to be part of that RFQ that you all will get a chance to see and understand that each of the things that you guys mentioned in all the presentations and the residents input from the surveys that c link put out all of that criteria was addressed in how we're trying to go about this at this point to to get to that market Mr Jones you brought up marketing what been brought up and I very first page bottom quote I think as this is Okala and I found that very say compelling for aala we are your hometown Hometown fiber internet provider with a local customer service office and local technicians and I think that's maybe a great start for you know your marketing Campa what do you plan to call it Williston fiber anybody else have any questions Mr nich yeah good evening Walt nickel with right Pierce I just wanted to make qualify or clarify some terms as as we go with this because this is a very different project it's it's it's a hybrid project a design build project it also crosses the line of you know floor statutes guaranteed energy performance savings contracts so there's a lot of rules and regulations that had to be followed if it falls under that if it falls under a design build scenario which it also falls under that there's a whole CCNA Consultants uh competition negotiation acts that you have to follow all of those pretty much pretty much mandate that you do and we use the term RFP RFQ that we do this process as a an RFQ a request for qualifications that is what we're going to ask for and that is what we're developing right now I we've done a lot of work in a week and a half three three meetings drafts we got more going on this week on this but uh request for qualification is we we put out a parameters of what the city wants we're going to have minimum parameters Min minimum performance criteria and you put that out and anybody who's interested and meets all those criteria can submit their qualifications so those will come in you will have an evaluation Comm committee that you will form that will evaluate those rank those bring those rankings to council and you can choose the top ranked firm you can choose somebody else and then you enter into contract negotiations you don't have at that point a price you just have the qualifications and you're picking the most qualified for your needs and then that you enter into negotiating the contract the terms the conditions the financial aspects of it and ultimately your price and these Revenue numbers would be fall into that but that's when you get to that so this process we're Expediting this a lot and I want to maybe temper a little bit of the things that people some of the dates and times and how fast this can happen I mean we're going at lightning speed right now but yeah there's a minimum of a a 30-day advertising process for this RFQ and even that we're we're pushing I think Donald wanted faster things 30 days is the absolute minimum you're asking submitters the responders to put financing it together you're asking them to at least get the commitments for financing to put a business plan together how the financial plan is going to work how the technical plan's going to work and you're asking them to do all that and submit it to the city 30 days is the absolute minimum but if we go with that then you have to have your evaluation committee that goes through and evaluates those there's a set process under CCNA and the floor statutes that you have to do then it comes back to council and you need to make your you know a week and a half before Council get you all the information that you can then make that decision and you make a decision that decision then would authorize you know engineering Staff Law uh your law director to develop the contract but though I think we'll be having drafts before that uh but negotiate a contract negotiate the price the finances that takes a month or two I mean how long does a typical developers agreement take to work out between two parties it takes some time so getting ready to authorize and execute a contract by years's end is possible but I think it's still very aggressive then the whoever is selected has do design and permitting there's going to be you know city permits will be easier but you're also crossing state roads and County Roads too there's that whole permit process that have to be done and design has to happen by the person you select and then you get the construction with it so I just want to kind of Step through the process how this is going to go it's all being defined right now in the documents that we're creating with staff on the request for qualifications so this has to go that route as opposed to if you went and wanted a price in this opportunity well you have to have more of a design so that everybody's bidding on the same but the same level level ground this is qualifications based selection I didn't want to interrupt you but I have several question you said if I heard you correctly which possible I did not that they need to choose the contractor and and then negotiate a price we are going to choose I want to call it a contractor the The Firm okay the respond contractor resp yeah this is a different because it's not like we're going you know you've got final never heard of choosing a contractor with no referral on the price that is what RFQ that's just request for qualification yes qualif the only thing you have to choose from that if you choose one firm yes I'm assuming if the price that you negotiate with that firm is unacceptable to both parties then you could go down the list yes you can yeah and I I didn't do that but yes the process is you you have a ranking and let's say we're fortunate that you get five submitters that would be unlikely if you had that you rank them and then you enter the you know the the selection committee would make a recommendation to council councils see the all the time typically take the recommendation of their selection committee but you would have a resolution to say yes we are going to enter into contract negotiations with firm ABC if you can't reach an agreement you terminate those negotiations and you go down to the next and the next but you have to you can't go down to number two and get a higher price and go back to number one once you say you go you continue down the list is how you do if you can want to throw a kink in it all together so when we ask about a timeline we are asking I said I want to throw a kink in it um are we going to do the Ami at the same time you're going to do them separate all together uh when Terry and the staff talked about this this needs to be very simple and this needs to be laser focused as quick as you can and because everything else compounds it the benefit is if we start with this everything else comes easier down the line it does but we do not want to conflate this with anything else we don't want to make this any more complicated than it already and I and I want to ask Mr Mr Hector um if if we if we should choose you and if we should negotiate a price with you and you become our person um our financial person then how easy is it to add to the agreement to add Ami later or would we need to just bid that all out again we would good we we would bid that out we would have to bid it again with because so for that we can do an RFP for for for this we have to do an RFQ it's it's Florida law mandated but for AMI you can do an RFP and you can which and the difference between those just to reiterate RF Q you just get who's qualified and what their qualifications are RFP is you say this is exactly what we want and people give you a number what it's going to cost right to do that well I know when we originally talked and we did a presentation um Ami was in the mix and it was part of what he was going to present to us and so and I wondered if we were going to try to do it all at once I guess not I would have gave the quick answerers no um the other would have been if we do I we could go through the same statute it's just to but my recommendation would be is if we move forward with the Ami system would make everybody to include our C we would run through the same St would you have to do an RFQ on that you do not have to do an RFQ on on Ami even though were're including the statute I don't understand so if I do Ami under the Florida state statute and protects me and provides for pay correct is that RFQ or RFP so I I guess I would need to clarify I believe it's an RFP um but don't hold me to that yeah it would be under the statute would be an RFQ I've seen many cities not the country that do phase one phase two phase three with the same company it probably depend on how you write your RFQ today allow those that's kind of why I was wondering if we could write it all together even if we just phase one there's one other caveat I mean if we did phase one and with nothing but Hyer and phase two that included the AI correct but we can also piggyback as well yes and you can actually piggyback through the statute so all the companies that offer it including the one that we choose with they have contracts with other ones specifically on am and those are everywhere so if it's within so much time kir can walk us right through a piggy back and none of that's needed yeah there there are a lot of different options that are available so the the options that you have with Communications internet are different there a different statute it's governed by different things than Ami so we're really sort of talking about that's why I'm trying I I'm trying to sort of keep them separate because they're not governed under the taxy roles and so I really I don't want to complete them and confuse either myself or anyone else complicated I just want to clarify that when I asked about a timeline it was not to rush it was just to find out because as we move forward people are going to be asking well when are we expecting this to be done so I wanted a general not a hard date or a hard time of possibly when it would be avail a and that way early as as early as best case scenario March and as worst case scenario December of 2025 and that's realistic yes ma'am that is realistic they GNA have something else by them uh if I may ask I think you said it but I just want to get clarified for my own understanding if the city does this fiber it doesn't cost cost us anything for the Ami but if the city does not we have to pay a fee for every hookup is that accurate so it's it's a it's not accurate that we wouldn't have to pay for AMI but the technology component the communication element of it there is an overhead so if we have so for example it averages out we've had like 10 Ami presentations I think Terry sick and tired of hearing about them the rest of us are anyways and what we averaged out for all the presentations was was about 80 cents per month per connection right so if you have a home that has gas and you have water and you have electric those are 80 cents a month per connection to pay somebody either cellular or they have relay stations Towers or they're on fiber so you pay those connections so that's $24 some else correct that we would pay to somebody else so you take our customer base that $2.40 a month you extrapolated over 12 months that's your annual cost for that communication my point was that's eliminated if you own that communication and it's the same redundant cost with scada as well don't you know how we are we pay we pay ourselves you know we pay our own electric bill we pay our own water bill we pay our own gas bill we'll pay our own day but what we pay someone else won't matriculate to those general fund places that's what we do anybody else have any questions some mcus how can this uh would we do it as a consensus or doing as a motion so if you want us to move forward with the RFQ process I would request a majority vote just to give us a sense that that's what we want to do someone could you give somebody or I I could just keep talking about thetion I was getting ready to do it before you said it so because but I make a motion that we move forward with the proposed action a second I second any other discussion all right moving none all move vote all in favor say I I by all right item six public participation is your second opportunity address the council got anybody anyone on ring centrer would like to participate unmute your mic and speak up now please nothing heard all right all right item seven announcements staff any announcements anything Council um I would just like to say that um it was a on the 14th of February not February uh August when you guys went down to Miami uh with Hollywood uh it was entertaining U enjoyable to be with the guys out fixing the problem all over the Internet everybody just knew that we had a water main break and it wasn't it was actually in the pump shed electrical issue um they diagnosed it got it fixed back up quick everybody was just working together my wife through there was now that boil water notice that's what the workers kept backing man are we gonna have to do more water notice so no thank you st your hard work so I was thinking here's the city manager the mayor all these people gone out of town and no water you were here for me so great job and that's also great job police on fire for everything you guys um that Mr Mayor yes I just have a couple of short things while we were at the Florida cities and the Florida League of Mayors there were some issues and the city manager helped me out a great deal and the chief of police was above and beyond and I just want all of our citizens to know that those two people are there for us they didn't have to do the things they did they chose to do them and I want them to I want the public to know that I greatly appreciate everything you both did thank you Miss Wright you have anything nobody else has anything can I get a motion for adjournment I motion can I get a second we have a first we have a second um all in favor say I I I I'm turning off this now and the time is 19