##VIDEO ID:dScdstzBkYw## e e e e e e e e e e e e hello boy all are we ready to roll now yes sir all righty we'll call the electric Advisory board meeting to order of Monday o oh October September 16th 2024 it's uh 5:30 if you'll please uh stand for the pledge and uh invocation gracious Heavenly Father HS to the flag of the United States of America and to the Republic for which stands one nation under God indivisible with liberty and justice for all you can tell I've been running all day gracious hly father thank you for this day thank you for this opportunity to serve the Lord be with us as we make these decisions tonight amen amen it's good practice before you sit in the big seat dearies okay uh approval of the minutes of May 6 everybody had those sent to them earlier any corrections if not I'll entertain a motion motion second discussion all in favor signify by say I I I iose same sign motion carried uh regular minute uh meeting minutes of June 3rd 2024 sent out move to approve is there a second second discussion all in favor 65 I saying I I oppose same sign motion carried uh discussion items power cost adjustment all righty so I'm going to kind of there's was two items on the agenda plus whatever you had kind of review the budget and the power cost adjustment so i' I've kind of I put together a PowerPoint presentation and I and I've weaved them together so we'll kind of tackle both at the same time um I our last meeting was in June yes and then everybody schedules and summer got in the way and then everything went crazy and then the budget is only half approved so if if you guys want to yell at the commission or advise a changing course there's still time believe it or not um so with that I'll just I'll just jump kind of right into it and as I said we kind of mix everything together really before we get started I know one of you are going to ask how's the teacher incentive program going how's the teacher incentive program going there's we as of Friday we've given out four waivers perfect uh one was for Beacon College by the way that one wasn't supposed to go out it was K through2 we have fixed that error so that was an implementation error uh but one for pine pine crest Academy and then one for rymes elementary and one for Lake minola but all those teachers all living now in the city of Le okay so uh to the budget kind of the the and some of this is probably repeat from as as we tipped off um and and I'll Pine a little bit but um some of the changes and some of the stuff that kind of solidified um that I wanted to bring out so about six points one was we we changed up the the wholesale purchasing uh formula so obviously the Lion Share of the electric budget at 80 some odd million bucks you know most of it is that power the power purchase line from FPL from FPL from fmpa um and we kind of changed some formulas in there at the at the last second um really I I felt like um a consultant no disrespect to the consultant but some of the numbers that that were projected were actually given the electric Department too much money the the the the profit margin was too big um and and I felt like where the cash levels were and because we were historically underperforming those estimates we needed to change that up um and so what we used was more what we found was the power cost adjustment charts which incorporate more fmpa numbers we're a little bit closer to actual value and so we we we use that a little bit more to estimate overall power expenses and then also Revenue in and that was kind of the big one so that actually left Brad probably a couple of million dollars short so where he was teing on balancing he went back to not balancing because we were tighter on the power cost numbers versus revenues in so that made his budget a little bit tighter so it's a little more conservative so we made up for it though in other places um and we I'll talk about that in a little bit of detail contribution and Aid we talked out a little bit so we're kind of changing the process up there reviewing those a little bit Brad and his group probably even need to review some of our performers in there like do we do we go out a little bit more on a four-year Roi you know we used to be I think it was an eight was that eight or six year Roi we did well with the subdivision or with commercial commercial commercial was two we did right we we we kicked it out to match our competition um which which made it harder to a little bit to recoup money so that that something we wanted to look at um we talked about a potential rate increase but we avoided that and instead decided to do so a little bit less in capital spending I suspect there will be some in the in the electric Department who will you may hear complaints about the city cutting back on stuff and less tree trimming and less this and less that I'm going to tell you I I think some of those concerns that you may hear come are not from a management perspective I think at the end of the day the electric department has three goals number one keep the lights on number two work safe and number three get the best possible price to the customers um and really that that's weing uh extra tree trimming and extra cips that maybe we want but don't really need that's kind of where I think it comes to management to start trimming the budget and I think there's some of those in the electric Department who may complain about that um on that how do we Stack Up on the reliability metrics with the other cities do we do those numbers a little bit but I can get you more of those details out does it by city f&p does it by city I think I saw some of the stuff that you sent out the other day and and I don't know where it was versus a bunch of other people but I'm going say it's not bad um it's it's a it's a tough peer group right the mid siiz youtil uh is who we compare against when you look at average outage time you look at frequency how many outages you see a year we're we're not bad we're about One Outage a year that our customers see I think our average outage time is a little higher than the norm probably the 75th percentile rather than at 50 um so we we are putting in some reliability improving measures trying to do some enhancements there um it's it's not bad you number of measures that you look at so we're we're not quite at average we're slightly above average but um how does it compar to Duke you know Duke light you know they spent a a tremendous amount of money for lot reliability improvements and because they were in in the crapper if you will dke was spent a ton of money and they're fairly competitive there again the benefit of a bigger utility is the onesie Tuesday outages you have just his noise you know us you have one big adage and we're we're gon to feel it all year long right until it drops off one big outage a tree comes down some car it's a pole and we're out for a couple hours we're going to feel it all year long that's true yeah I guess for Duke you'd have to look at you'd have to look like a subset of their like that similar density yeah I mean that's kind of what we look at I mean we can report more I think you're right on one of the news thing I put out there we looked a little bit about um sad s is a you take all the outages everybody sees um you add it all together the out of hum and divide by everybody on our system and that's aad numberers what normally utilities kind of share so we can start reporting that a little bit nowed to this group we'll dig that in we'll dig into that that be good because I I know like this was this is dated because I think it was two years ago that kind of like Duke and FPL like that was their push at hassi is reliability reliability reliability so yeah I don't I I think if we get p the test and we have to come up with numbers we're not going to have a reliability issue and and especially you know when we get into the major storms and that data you see where we report that back to the state and FMEA does a great job on that you know we're we're consistently a top performer after the major events I had a a quick question so as far as like the capital expenses um the difference between 2021 and 2024 is substantial what it's for people who may be reading this later or watching this later what does that generally Encompass well so I was going to get into so and that was kind of one of the areas there I I stuck this little Capital expense chart and um to kind of show you what we've spent so long story short I mean these numbers they're they these aren't sustainable right okay they're not sustainable uh for number of reasons I mean if we're going to spend 10 million a year on on Capital Improvements you know you're looking at a cost increase of 10 you know 20% or so increase in your rate and I'm I'm pulling that out of the air roughly but it's substantial um so the things that go into these numbers are a lot of system expansion a bond issue we got to hook up the villages there was there's some system improvements for a major the major transformer change out and and and there was some other system Improvement things that we did because we were sitting on 25 million bucks so we were able to to be aggressive in those those years that money is not there inflation and the cash levels have just dissipated and so now realistically I think the electric Department really needs to come up with cips they're probably closer to the3 to5 million range depending on where the commission and you all want to go with rates I think that's a number we can probably live with you hear that list as potential rate increase is that a reverse of the rate increase that was recently announced the rate there was no rate increase that was announced what was announced was a power cost adjustment increase which all people think about is that it's a rting and so you guys as members of The Advisory Board need to know the difference between a rate increase and a power cost increase it's not semantics it's significant okay a rate increase is when we increase the base rate I'll show you that number no the base rate so we have a three- tiered rate on and I'm using residential uh as the example we have a base rate a customer charge that goes out every month it's 15 bucks then we charge you for the first thousand about 9 cents a kilowatt and then we charge you about 11 cents a kilowatt thereafter so those three rates then the power cost adjustment that so when we talk about base rate the base rate is the actually it's we're 107 our base rate is 170 bucks per thousand so at 1,000 kilowatts so that's $15 customer charge the 9 cents over a th it's nine like and and it comes up to about 107 then the power cost adjustment goes on top of that okay what we increased was power cost adjustment there's another slide in here so we can break that down um so what we increased was the power cost adjustment remember when we increase the power cost adjustment all of that money is going to pay the power bill or fuel it doesn't go back to pay salaries it doesn't go back to pay debt when you increase the base rate now you're tackling all the things you're tackling Personnel you're tackling Capital you're tackling power supply when you increase the power cost adjustment you are only dealing with fuel that's significant so um the other thing that we added in the budget there that's not up on the chart we did end up coming back and putting in the one transformer for North sub um so with that let's go back and kind of visit the money and uh and the cash levels because we always kind of compare where we're at with that so the green line basically shows where the cash flows are at I I'll show you over here where we're at the Blue Line represents the balance of the power cost adjustment so this number is is embedded in this in this number so like over here in on the if you go to the far end of the chart July 24 it shows we have about 10 million about I call that 11 million bucks here but a little over three of that is power cost adjustment so that's a separate pot so their total cash is really about 7 million bucks I like to show that chart because you you you see where the power cost adjustment is this is the chart that Brandy likes because this is more of the true Cash number chart without the power cost adjustment so you see that you see the decrease from the 20 million where they were sitting on where the electric was sitting on a lot of cash to the to the low point to to to the low point to now where we've started to build back up so we're sitting right about the reserve requirement and all those things are derivatives from being aggressive with Capital Improvements with inflationary costs and those type of things and and again all the money that went out uh for the um when the gas prices went bad has been recuperated so we were under our Reserve apartment according to this chart for a bit yes on people don't care we were under that when we didn't get called from the bond people okay they would care though like there's not some sort of accounting this is the number they care about they would care that we were under the requirement there and they would they would give us a lower rating okay I just want make sure that say B this is the number they care about yes they care about that number and and they check in on us periodically and so that's the number that by the time we get the next check in I think it was spring or so is when they typically call us to check in on our cash right we have an ordinance that says this is the minimum amount of flow so it says that's when we B ordinance as well as the bond covenants that we have that says we're going to keep a certain amount of cash on hand and so that's the number that we need to watch at this rate you know if we dropped and we got dinged on our credit rating it's not going to affect us as far as increase in our existing obligations but if we need money in the future it will yeah that'll enable them to call theond I don't I don't know yeah I don't think I don't think you it get that bad but but the so obviously we I think the healthy number to have that sitting around is probably closer to the 15 million Mark you know that's not too much and that's comfortable so that's really where I'd like to see the the electric fund get back to so now I want now I'm going to start peeling off into the power cost increase which we spoke to so the D so I'll talk about the power cost increase and then I think I got a chart here that'll show you how that matriculates into your rate and kind of the derivatives between the base rate and the power cost chart so this is I I tried to make this as simple because what we are trying to do is is we understand that the power cost adjustment is a significant part of your bill and we've been very successful at keeping the power cost low which helps bring down your overall Bill and so what this chart is basically shown is the blue line is showing what the power cost is in per th000 kilow so in October of 15 the power cost per th000 was about 12 bucks the Orange Line represents what the balance of the power cost adjustment number is the blue the black dotted line represents the where the goal we want to maintain it around $3 million so this line represent it's in thousands so that's so that's just about we had just about 10 million bucks in the in the in the power cost adjustment Reserve account we jumped up so obviously when this number was high we said you know what our power cost is too much so we actually dropped it to zero so that would so when when this was at zero you see we're not collecting funds for fuel so our power cost Reserve res ve drops and as we get to the $3 million Mark we bring it back up and we did pretty good you know again from from April 17 through about when uh really until the spike where we really maintained it around 3 million and we had a couple of drops in there to to when so to to get money back so we don't want to sit on too much money because then we're overcharging you and we don't want to sit on not enough money because then we have to go into our cash and deplete our our other unrestricted reserves to pay the power bill so the number there that we try to hang out around is 3 million because that's about the flexes that we see in the market so that's the goal and so what you see when when everything spiked you know and and we see this big drop and we were slow to react well at this time we were sitting on cash so we let some of those cash reserves fill in the blank hoping life would get better but it never did it only got worse to where we said okay we got to recoup this this is too much of a loss and then as soon as we were get got them the cash back we dropped the rate and we dropped it again so I put a circle around here because now I want to talk about this specific Circle so we go from October 15 to this fiscal year and projections into next fiscal year and you'll know there's there's three little squiggly lines here and there's a method to that that I'm going to talk to you about now but before I do that I want to say J August was a super good month for us and this is how this is how kind of that everything can fluctuate and I've talked about like we've talked about growth and then I've said something goofy like a black cloud can come out July 23rd at 2: p.m. and it's not quite so hot so we don't pee so August of this year just this past month I just got this number in today by the way um is a great illustration of when we don't Peak but and we don't use quite so much energy but we're nice and consistent the system performs well in the summertime and remember every month it changes so let so the point to this slide and then I'll get into the detail of it is we almost made an unaccounted for million doll in August that was after we announced that we were going to increase the power cost adjustment so that's good news it doesn't mean we can't not increase it and I'll show you that but what it does mean is it might mean we don't need to do a second adjustment in April like we were thinking April 25 but I'm not ready to say that yet but what what I'm trying to demonstrate is just a shade of a variant that's in the million doll range can really change projections so that's why you know so the I think the worst complaint I heard when the the the the rates were going up is oh we're racketeering and you know we're jacking our prices no we're actually trying to do the opposite we're trying to keep your price as low as possible but at our current levels when we see these fluctuations we we can't be slow to react like we were in the past because we're sitting on so much cash so in this case let me so and then I'll show you how this fluctuated um so when back in July when we or first part of August I think is we came out in August and we said we got to go from one cent to two cents effective October one and then we had the good August so what were we thinking we were thinking we estimated that we were going to have a capacity peak of 112 megawatts we peaked at 110 so that's look that's only 1.3% off but it was enough to make a difference we thought that that capacity charge was going to be 1.7 million it was 1.6 we thought we were going to use about 59 million kilowatts of energy we used 55 we thought we're going to pay 2 million for it we paid 1.6 so if you put this number and this number together there was a variant there of about a half a million bucks so that you it's percentage wise not a big hold on a second um but what we thought based on our original projections were we thought we were going to lose about 6 153,000 bucks in the power cost number so that little blue squiggly line we thought that was going to go down half a million bucks it actually went up almost 300 because of these Dynamics so instead of having the month ending out at 1.8 million it ended at 2.8 so that was a DE of almost a million bucks the so this is a combination of the peak charge being less and then the other is that fmpa charge to us was less based on their buying this is no this is all consumption the unit cost the unit cost for capacity I think it's 1,550 a KW and the energy charge is like 3450 so those numbers stayed the same this was just our performance Matrix we didn't consume as much as we were more consistent so our costs were less but we still sold a considerable amount so we were able to over recover and in time where we thought we were going to under recover do you have any idea what the factors were that went into the underc consumption rainy not quite as hot weather and weather during peak times yeah tell you from my business it was very rainy deler a lot of the it's that it's that touchy so what does that do so now let's jump back to this chart so this chart now is the circle from here right so what is what what am I trying to show you so this is where the power cost adjustment was the actual numbers are now till till August is an actual number so we're we're we planning to stay at 1 cent or 10 cent per thousand on the power cost adjustment in October we go up to two what we thought was going to happen when we increased the power cost adjustment it was this dotted line we thought we were going to continue so here's here's a reference line of that that black line again is the reference line of three million in reserve that we wanted to keep in the power cost adjustment so I said here and this is so there's your million dollar Delta I I wish it would work up there but so this is this is this is your million doll Delta so this dotted Red Line represents where we projected the power cost to end at the end of October 3 but then we saw this trend coming ahead where we said back here we need to increase the power cost adjustment to avoid this so now that became the green so instead of this trend with this trend just because of that mil different million dollars in August so let me let me say that over again because I think I convoluted it this red dotted line so about right here we said this trend does not looking favorable for us so we need to increase actually I didn't put that trend on here it was more of this trend that's why we went up to two so we put it into the this trend with the change in August we're now on this line at two at one we would still underperform but the difference is at two versus this green versus this red is now showing where the trend would be if we stay at two actually this one showed it at two and a half be all the way through this one stays at two since on the power cust so long story short we had a super good August that million bucks makes a difference and it it's made enough difference that depending on what happens in the winter we might not need to do the extra half a cent my guess is it's probably going to we're probably going to need something come April probably it's going to be like 2250 um back to this chart cuz I think it's it's a good one in a historical Trend I think where the future's at is we're probably going to be in this band where the power cost adjustment in the into the future so you had $900,000 swing versus your projected correct what's what what's like your average monthly swing vers projected it can go all over the place but typically it could it can go it typically we can miss either a half a million either way plus or minus 900 is a little outside the norm but not a lot it's a little outside the norm for August because typically August is a loser month okay so that kind of wraps up where we're at with the power cost now I threw in here a chart um let me jump down to this chart because I put a rate where is the rate chart I put a rate chart in here yeah it's this chart so this is kind so this so actually I think I'm running on course yeah so I go from right into the rates now okay so here's here's where we're at as far as our our rate comparisons um 11794 is our all-in rate that includes our power cost adjustment and our base rate when the power cost adjustment is 1 cent per KW so over here in this box um are the is the rate the base rate for the first thousand are these two charges the base charge the base charge plus the per kilowatt charge so 9.2 9.3 cents a kilowatt time 1,000 plus 15 is 10794 then the power cost adjustment is 1 cent per kilowatt so at 1,000 that's 10 bucks 11794 our change was the power cost adjustment not the base charges so that's 2 cents so that changes a th000 kilowatt bill from 117 to 127 that's 8.4% not 100% mhm so the other trick of this is is you you don't know everybody's consumption typically in the summer you're high so the person who uses 1,000 kilow in the summertime you can see them use about 500 kilowatts in the winter or the fall or the or the spring so even though their consumption goes down or the power cost goes up they can see a lower bill but we don't know where that is our average actually the average user in city of leeburg is 1362 the the industry uses that thousand I think the last time we pulled that number up about 40% of lesburg customers are at a TH or below so I have a quick question it may not be completely related to this um chart but um so September is when we get most of our hurricanes we have September 11 we one on September 4th um what resources do we have as far as reserves for the electric department for if something were to happen the 7 million bucks of cash they're sitting on okay plus a whole lot of plus yeah that and that was another number we didn't talk about that Brad and I argue about you know so we're sitting on Pro I think the last time I looked at his inventory number you're were sitting around 68 million bucks in inventory so that's wire that's Transformers that's all sorts of stuff that's already purchased that's in place so I'm not worried about the reupping and and getting things running after Hurricane I'm more worried about refilling the inventory he's got after he's done but then again too if it's that name main storm where you're going to get reimbursement from the federal government for supplies what goes out it's going to come right back in after the reimbursement comes back in from FEMA but then also you said um at our previous meeting that it takes a year two years it take a year to yep it depends but we have a large amount of inventory to pull from for storms even jobs I don't know you remember we talked about Arbor Park a little while ago um few meetings ago there's like what do we say 54,000 pieces that we're going to pull from the inventory that we have that is in stock there's going to be a few items we'll have to replenish but the majority of the 54,000 pieces Parts is all coming from the the warehouse we're not going to order Transformers we have plenty of those to pull from um but some of the smaller the smaller primary cable will have to Reby some of that stuff but leaning on a warehouse for jobs and for storm is is our plan okay so now so you now you take your base rate Matrix and stick it back in and compare you know and this we just kep this chart just local so I think that number's actually wrong for Duke I thought Duke was closer to 165 seo's 131 FPL 119 and mount D is 109 I read something where Duke was having a decrease there actually I think you'll see you're going to see Duke and FPL go back up they've already petitioned the Public Service Commission on that so I think everybody's probably going to actually start trending up and so I just pull because I think this is important it like I think it's great you guys are keeping the rate down and doing as best as you can to cut and help people out but like I like the 127 number even like I just don't see how it's sustainable long term and I'm not suggesting you do anything this year because you figured it out but when I I just pulled up August 2014 so 10 years ago th000 kilowatt leberg was 1338 something and Duke was 12949 so say that again Duke was 12949 10 years ago August 2014 13 almost 134 that was where we were 138 134 yeah August we're 134 but it's just there is nothing in this world that is cheaper today than it was in 2014 other than our electric and I know like people don't want to hear that and I don't want to hear it CU I certainly don't want to pay more and I'm not paying more cuz I'm using more just like everyone else but like the actual rate yeah is less and with the inflation and salaries and equipment and everything else that's why Duke's at 150 and going up because this is not the long-term sustainable number but I'm glad you figured out how to do it for a year well I think I think we we we're doing a little better than that because where do we get the money we have significantly cut the electric to General fund transfer yeah that's a significant number okay so in 13 we're pumping 5 and A4 million dollar into the general fund this year we're doing one and a half million so if you're an outside City customer if you're half of what we did if you're an outside City customer you got to love that number because that means you're not paying for general fund services I thought the tournament said it had to be 6% it did then how are you transpar less than 6% well I don't think we're going to get challenged okay I mean I think you do that for a little while but at some point why even have an electric system if you're not going to transfer the franchise fee because because I also think you're going to have state law that's going to put that on us they're going to have in upcoming state law or I think upcoming state law is going to mandate less than six so what this repres so what this three represents what this number actually represent that's a 6% franchise fee on customers inside corporate limits that's and so that's where I think that that's where I think State legislation is going to go well that's a reasonable that's a reasonable interpretation as opposed to just pulling it and and so so also I think too um one of the reasons that that fight is going to be an issue is we're losing Baxley and so some of the legislators that were key and Senior keeping some of these arguments from getting to the floor are not going to be there next session yeah so so um I can't remember what the bill numbers were this past session but literally Senator Baxley kept those issues from getting to the senate floor so even though they passed in the house they never even saw a senate hearing because Baxley kept it from going that way that's no disrespect to who'll be our next Senator but the is our next Senator is not going to have the seniority that that Senator Baxley had so so we do need to work you know we do need to work our next Senator and and representative and so and and and the the frustration that I see is even on our house side um our house side is split up between what yukari um whoever is going to be the next one and and yeah and and then and those and those districts start to get those districts start leeburg electric becomes smaller Cog and their representation because you know like for yakari for example he's going to get hit on by dup right yeah mlan is the one that that like is going to have the power and he's been there for a while and he's Okala have a little bit of Lake County when he was a so we continue to work those angles but that big decrease this year is really kind of prepping in turn for is the world going to change for municipal Electric utilities and the legislation that's gotten passed is looking to protect those customers that are outside of your service district and that's where so it's and and it is that 6% number so even though it's not a 6% transfer it's a it's a six it it equals 6% of Incorporated now that's look I'm mincing words with you okay so it's 6% of incorporate customers so really everybody is kicking in three versus six I mean and just thr this out there obiously it's purely hypothetical but if some a bill like that actually got passed like do you go to Duke for a territory Swap and say like take our stuff outside give it to us inside I don't think that's possible um I don't think that's possible because of the infrastructure right yeah we don't have the we don't we have toop it just it's it yeah infrastructure and gridwise it it would work including including a new growth it makes it worse so consider the strain of cost we spent 9 million bucks 8 million bucks hooking up the vill uh The Villages of Catherine or whatever in Su County and I don't know what Duke SP which is outside our city limits yeah but we traded them that territory because on the maps The Villages wanted each Village to have the same provider so we gave gave them Villages of West Lake which is inside City Limits so that they could serve that which is and we served the Su County section of Duke um we actually made out I think by 100 customers on that but we so we had an extension cost so we're feeding them out a nor sub right so how are you going to re hook up those customers that are in villages of Catherine to Duke and vice versa so when was your Roi on that on that with the villages was that so the ROI for all the subdivisions of four years is the plan again it's four years for the subdivision infrastructure not for the lines getting it down there but when you look at The Villages of St Catherine they built all those homes talking just under a th000 homes in what 18 months and so the you know we more than we'll see our Roi on the on the subdivision heck we probably got the extensions covered in four years so but that's a that's a oneoff that's not what we see with everybody right um it takes normally about four years to build out like denim was four years even though they asked for an extension they still met the original four years for all of that build so for future electric growth outside the city do we need to change that calculation to cover the fact that we can't have a transfer I think it's probably something we should look at and I don't really other than Fruitland Park I know there's you know there's not a whole lot of areas either I think that outside City the I think the electric box is actually kind of filling up um so even like and remember too even our growth so we got we got three main growth areas right we got Northwest around let's call that Silver Lake we've got South 27 and we got Villages so Villages is Duke South 27 is Duke and out silver Lakeway that's like 50/50 right um so right just north of just north of Eagle tayor is you know that the line gets kind of goofy but we've got like Liberty out there I don't remember there's another one liberty and something else that are actually Duke subdivisions it's like if you look on the Liberty Treasure Trove that's about down 44 is where that line comes so like Tre top of Treasure Trove over to Radio Road and down that's us so that's Treasure Trove that's Eagle tale that's the golf course subdivision whatever they're calling that I can't remember Silver Lake Point I think or something um those those are lesburg electric in the Box um but then there's there's the 44 is the next for lesburg electric all that State Road 44 stuff um is where we're going to see some growth that's where the new substation planed that's where the villages is now right you're on this side of you I didn't go over there yet we're still over here so some of but so the biggest one out there orange bin which I don't know how many that was like a 1500 unit or if that ever goes that's do yeah so we've got this kind of this phenomena going on where aside from the villages most of the growth that's happening in Incorporated leberg is not lesburg electric their growth issues are more Fruitland Park than than lesburg almost so Sunnyside has some plans right for development we have plans on State Road 44 and the Fruitland Park like we're seeing now getting filled in so and County Road 44 there you know over your property as well as sang Road Treasure Trove those are all approved sub divisions as well in that Corridor for us feeding those is fairly straightforward I got the infrastructure already there it's the it's the stuff further on State Road 44 that you know arguably will fill in and cause us to build that fifth substation you know not next year and a lot of that might be commercial that's not in the city or there's so so Brad jumped over the west side of 44 so some of the big the big project over there I can't there's that um there's that residential commercial multi-use the Palm yeah Palm something we should know the names pump uh there's ring ha there's you got one that just sold C property and cottoms oh not cottoms it's right in that area that that's probably the biggest that multi-use one is yeah is the biggest one for him so when you had um fiber I assume you did a transfer from fiber as well yes what was the percentage for that just out of curiosity it was 10% and the transfer was about 100 Grand okay the fiber ran between 1 and 1.5 million I can't remember when we completed the sale so so that's a good question though because so then why would you sell that asset well for two reasons a it brought I think we netted s and a half million so 100,000 divided by 7 a half million that's a whole lot of transfers and cash up front which helped us Finance most of the most of the improvements that you've seen around the the city Venetian Gardens the the the Aquatic Facility Ski Beach all that was financed really with between the gas Surplus and the sale of the fiber um so when the Facebook Universe makes comments like they're jacking up our electric rates to pay for things like the pool and the blah blah blah blah blah to some degree that's legitimate and that some of this money is going into those types of projects no those comments are not legitimate whatsoever because there's not been one penny of of electric money that's gone into any specialty projects what the what does the transfer go into then what are how are those funds being used once they transfer into the general fund General Services police fire Recreation now Capital Improvement okay accounting human resource and at this point if we sold the electric the general fund would get more money for that stuff MH mhm right so we are subsidizing the rates at this point actually the general fund is now subsidizing the electric Department in that way you did 6% your transfer would be bigger I don't know if I agree with that I think we look more like I think we look more like a traditional Municipal you get you would get this amount of money because of the internal and then you would get a bunch of cash for all the external customers I don't know what obviously I don't want to well and and that's that's also an internal argument we have too well why do you have an electric system if you're not going to have a transfer to control your rates and to control your system improvements and to respond better and that's you know and even though you have those blasphemers on Facebook who don't know what they're talking about um the you're controlling your own electric rate you see it in our comparison charts we're reducing transfers we're responding in times of Crisis faster than anybody else if we sold the Duke we wouldn't be back up in three days if we sold the Duke you wouldn't be paying 127 you'd be paying 165 oh absolutely and I can tell you Duke's liability Is Not Great around here because I'm on it and I have been out three times this summer for over 12 hours so there's a there's a lot of other reasons where Public Power Beats being an investor own utility not just because of the electric transfer um we go into little other stuff here here's all our debt notes there's about 40 million in in bond principle um in those years um then we kind of just break down into all the you know the overall General Services power supply distribution blah blah blah um what's our Deb service on the electric go back to that and what percentage of our budget goes to uh for debt y um I don't have the payments in there um that's a good argument when somebody starts asking about the rates Bond issues are you digging that up Dan are you going to beat me to the punch the debt payment I got a call De service give it to the numbers got 3.8 million a year yeah 3.8 out of the 72 is is our debt payment with the 4% 3% so it's I would say that's relatively low it is low um and then we just break down to pretty much um and that's your that's your budget this year for Capital it's 3.2 million versus the other bigger numbers kind of trying to live in a world of 3 to five million depending on where a bunch of other things go um and then that really um rounds out the presentation I have one quick question um the power cost adjustment how will that affect um for commercial or small business or large business as far as numbers it's the same rate so whatever your kilowatt usage is times this the Cent okay or the two or the two cent now is it prohibitive or not the norm to have a residential rate and a commercial rate for cost adjustment with the assumption that businesses ask me that question again is it is is there any model in which there's two different rates one for commercial and one for residential there there we have different rates dur power cost adjustment power cost not a different bpca but you have different yeah it's pretty so it's pretty standard that the bcpa is a per kilowatt charge okay cuz that's how it's passed to us as if it's Transportation related it's a per megawatt cost for us to transport Energy across you across that P now wherever it's coming from so it's a per kilowatt right charge so it doesn't matter if it's going to a commercial or residential do have a curiosity question a couple weeks ago car hit a pole power goes out I assume that's an unaccounted cost right they get a bill that's my question we work very hard to bill for those sort of things very hard and we're pretty real successful and are you building like the driver's insurance company I was just about to ask that is it the insurance company it goes to the insurance company so when PD gets out there we gather all that information we cut we start the work order everything gets charged to work order we make our pictures and documentation go to risk management with that she'll reach out Lisa reaches out to the insurance company companies and and gets everything we can from them sometimes there are limits you know but you know cost we don't capture everything if it's a developer like you know your your uh subdivision where the developer tore in all the brand new cable was in there for a week you know we collected that from the developer they're responsible for everything on the site until we take it over so those sort of things we we look to get reimbursement for for forun it's not my subdivision I sold them the land it's their subdivision so you're sitting on here trying to get a good deal for electric right on your land done with that uh yeah uh silver and he's not I mean I remember on the commission like they'd have like the bad debt right offs and they' have people on like payment plans like paying off electric poles if they could pretty just curiosity what what did that accident cost um you know it's it's nothing's cheap uh we lost one pole for katr one pole that was hit replaced 177,000 bucks just to replace the pole plus the labor associated with it so it's it's expensive right we don't everything's minimum 10,000 bucks if you hit and damage a pole minimum you get time you got time and Equipment time equipment all that labor to it but uh but if you're just looking for a ballpark number it's it's 10 grand easy concrete poll you know double the numbers everything's just so much more than it used to be you know Bend to Publix so what do you need from us that was all that was the report any suggestions how you doing with your surge program so this was in my envelope a couple months ago it's been yeah what do you got any numbers it's yeah we uh we had like 45 in the month of July is that a Spike as a result of the mark yeah it went highly got Facebook that's let me just say that's 45 out of 27,000 all right pay didn't pay for the Flyers all right the full picture the full picture so uh when will we uh be announcing or deciding on on um and I say we as like the utility department on the April increase cuz I feel like people are are panicking because of the October increase so if they hear that there's a second one and there may not be a second one when do we make when does that call get made January February okay so maybe probably closer to February okay so they'll have and it it depends it's just it depends on to dep whether we have a couple good months in there or not I was about to say whether or not Winter's bad or good no hurricanes yeah well Winter's the other side of the spectrum you know if it gets super cold hurricanes could be good CU people don't use much power there when you're out I don't know if that's good or bad but I guess we all righty and as a small business how far do you project the impact is going to have have like on the cost that you set so when we do our budget for the year we um especially going back to when we had the spike we we went up 15% on our power for the budget but we we go six months out because it changes so much because we because we're seasonal we have a kitchen that runs like dogs from October to May and then we're slow in June July and August um so it it really kind of that really impacts a lot of our budget on that so we we only go six months out when we're doing it but you presumably use less power June July and August well you would think that but we have a double building and it's hot as Hades y even when we're in a kitchen and you got a refrigeration yes and we have we have eight refrigerators and freezers that are still running whether or not it's hot or not um now in December it goes like October in December we go absolutely crazy so I know our bill is going to be three times as much as what we would do in July but it we try and project for that six Monon um bump Flat Line yep below it yeah exactly carry over how do you do it Mark it it's not fair to ask us because our electric is bundled into our lease so we don't really see much of a fluctuation one way or the other good there might be months where we would lose on that proposition other months where we come out ahead on the proposition so let's just bundle in you don't have your own meter that's great yeah I don't even want to ask what Rox a very little well we're fortunate in the sense that while the electric is a lot other than for my trust and door plant it's not a huge percentage right it's I don't unlike you like I'm not using a ton of power to do a lot of power intensive things other than like two very specific places and those we we pay more attention to the budget kind of like you're doing well you have more like Warehouse style yeah and those don't have a lot of power unless they have machinery and two places you know to that point though what I will say is even though our cost is fixed like we still make a very conscious effort turn off the air every night when we leave the building we turn off the lights when we leave we power down the equipment because we consume during the day right um and yet I look at our neighbors in the same strip that don't necessarily follow that same approach so sometimes it's frustrating to me when you hear people talk about how expensive things are getting but they've not adjusted their consumption especially what I would call um unnecessary consumption to counter what the increas is so whether you're at home and you're saying okay you know my my electric bill went up 15% this month if I bump my air down one degree at night when I go to sleep you know what impact might that have over the course of a month or several months when gas goes goes up we might give a second thought about going out to dinner down in Claremont versus you know going to downtown leeburg yeah we make those adjustments in our lifestyle for for some reason there's something about electric that that there seems to be a general mindset I'm I'm painting with a really broad brush but there's this General mindset about we need our electric so you're just gouging us because you know we need our electric yeah I understand I know that we probably don't want to sell out to Duke or anybody I can tell you what Bush did when they sold out I I can show you the bills all the way through absolutely I asked hyp questions I think he's interesting thought but no I mean I worked real hard to get a charter Amendment past to make it impossible to do that so I definitely don't want to but in hindsight you scored on the on the fiber sale I mean right I would think that yeah I think that was a big score and probably saw that about the peak of the market cuz now it's been sold everybody's offering it's been sold since two or three times since they I know for once I don't know two or three well who you sold it to and then they sold it again yep but I don't know if after that we sold it to Summit and Summit sold it to somebody else yeah we got we basically got suit sliced check and then they sold it a good deal um so we don't need to do anything it's all information items um we're going to discuss discuss the April yeah that'll come up um we'll just we'll keep an eye on it okay good um roll call anything for the order the only other did you know we could save that for next month give us something to talk about well the school did come through and said they want to pay that they're not going to come knocking on your door for payment so that was the big elementary school project is underway F Park Park F Park yeah it's underway it's it's actually it's close to they want to be Live December I think they're shooting for we're doing the fiture couple things they have you know the Make Ready cost that we talk about when a new project goes in they have some turn Lanes into the school and we have existing facilities and we have to relocate existing facilities so that becomes a cost to relocate and they didn't have all that into their budget we went back to the drawing board made some slight modifications left a little bit of the overhead up on urick but we moved it back on their private property within an easement so if they widen the road in the future we're not going to have to move it on our dime and we did some underground work on Olive so that's about 313,000 bucks for for that work that they paid us well pay us for um to set the Transformer and do all of the work to bring them power their revenue paid for that Therefore your expected Revenue covers that and and then some so they didn't have any payment for that that's like 95,000 bucks to set the Transformer and the primary there's no payment for that but there is payment over here Arbor Park is is getting signed we may bring that to the commission next week if you remember we talked about that months ago about then the cic process has changed they're bringing a check for 8509 ,000 bucks to to for their side of that project it's still $1.5 million project but at least we have again the expense the the exposure the city has for that project is their revenue requirements they got to build out in four years if they build out in four years then our our risk goes away so that's the process follow next meeting date is well we were meeting the first Monday I know we kind of got thrown off that's why I'm asking so it's up to you all s you have it for it's October 7 would be it to get back on schedule got it that good for everybody Y and we'll talk about metering we'll try to get you guys an update on the GE contract oh love the teaser well done coming up next month's episode we'll talk about metering there might be some savings there Perfect all right roll call anything nope all good Dan Mark no sir anything from you no sir nothing from me all right stand a journ thank you