e e e change well again change the models of the model puts more responsibility on the customer General like that that's good then we're looking at Chang still got a minute for that's today go we're going to call the electric Advisory Board leeburg Florida to order um bow your heads for invocation gracious Heavenly Father we thank you for this day thank you for this opportunity to serve Lord ask that our decisions are in your in your guidance in your name we pray amen and let's stand for the pl pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all thank you okay everybody got the minutes sent to them are there any changes if not I'll entertain a motion for approval approval second Jack thank you all in favor signify by say I I post same sign motion carried presentations we'll go we'll go right to Brad Brad's put together we've we've uh Revisited I don't know how many months we're into this now but kind of on track here so we're kind of now just to kind of getting you some system information and some of the things that uh Brad and electric Department want to do so probably this month maybe next month we'll see how far we get here and then probably June we'll get into budget and rate um so that way you guys have uh some recommendation and some voice to the commission as they move into budget time so Brad it's all yours so again last month um Jim Williams talked a lot about budgets right and we talked about really the three pillars um that we're trying to follow within the electric department and it was system growth it was Capital Improvement and it was you know the system maintaining the system um so today's presentation is really about one of those pillars is about system growth next month uh we'll talk about the other two pillars at at this point I don't have the specifics of the the budget it just is more of this is the process that goes into that stuff um so it's uh you know informal if you have questions we can talk and chat along the way there is some fundamental stuff we wanted to make sure we talk about before we get into the growth discussions this is again our our our service territory chart it shows the Fruitland Park Service territory U up there in yellow um it shows the city of leeburg in green and then filling in among the green is the uh Lake County let me let me back up just a little bit make sure um you know the team that came here today so Steve Davis is our supervisor for the service Planning Group he does all of our our designs for our commercial residential projects Marie Carter is our budget analyst and so she helps us with our onm budget she helps us with cost and and trending and predictions um also with the fmpa uh budgets is processing the St Lucy and the and the monthly um fuel budget and then uh Chris Atkins he's our deputy director over the kind of Technology side of the house Greg manages all of the field services side the construction the maintenance the operation Chris manages you know service planning the meter shop operate the operating control center that kind of stuff so uh going back that's our service territory so again systemwide uh we have five substations on our system each substation is normally comprised or has two large distribution Transformers uh about 32 MVA um for each unit and then there's bus ties that allow us again redundancy within the substation itself one substation has a third Transformer the es sub for katr they have their own dedicated Transformer that they purchased uh again system wise I got 26 feers throughout the the territory um these are kind of like tree branches if you will that go out and we have ties to other feeders within the area you know again for redundancy for reliability you got some complimentary feeders so you bring them from different substations or different Transformers to try to mix an area that you're again trying to serve um reliably 28,000 customers in climbing you know it's a pretty steady rate that we have uh we had a big push when the villages again a lot of the discussions that we have at the city commission level is a lot of those conversations are about uh developments along the 27 Corridor right US 27 um not all of that has been within the electric territory now of recently we've had some discussions we'll talk about in a minute about major developments that are happening within our service territory as well as Fruitland Park theol having transform is that something that's common still if you have like a big industrial user wanting to come to leeburg with would that be something that ask doing or yeah I mean I think at some point it's it's all about you you know cost and Dynamics you know they uh they're primary metered customer as well so they take care of all the Transformers all of the ties beyond our feed they manage all that so the distribution Transformers within the property belong to them they maintain them they operate them um they went and they wanted again a certain level of of reliability that is is unique for our territory having its own dedicated transport into station is unique you know for that customer we don't have it anywhere else most utilities we have dedicated um substations uh and transports for underground feed but it's rare that you'd have a customer purchase its own unit so like like an know you see would they have customers and stuff that way so we had Universal Studios as one of the big customers in Orlando but they still didn't have a dedicated Transformer the the agreements that were made with them was well we'll only feed you with uh on Transformers within substations that only feed underground uh facilities right no overhead exposure that was the agreement they they made with them so again katr is unique in in that respect uh quick question um and forgive my ignorance if I missed this um can you uh kind of clarify what 32 MVA means so Transformers sizes or Transformers come in sizes and Transformers are are what it takes to in our case to lower the voltage from the from the transmission level at our substations we we tend it out we lowerer the voltage from 69,000 volts we lower it to 12470 at the substation and we go out to the homes we lowered again the commercial 277 480 12208 or your homes at at 12240 for your home now the size so at at our in the neighborhood um if you look at U The Villages St Catherine we probably got eight homes on 150 KVA padmount transformer so 50 KVA 50,000 KVA for eight customers right well all those Transformers add up on a feeder all those feeders add up to the station so at a substation level you're talking about a a Transformer that's you know I don't know a quarter at this room right it's a large unit you know 32 MVA is a large substation rated Transformer um and again if you look at larger customers we'll talk about uh we have a new project in frand park for the elementary school so I got a, 1500 KVA going in for that elementary school right just perspectives right 1500 KVA for a school like that I think the uh Chick-fil-A has a 300 300 KVA for the new Chick-fil-A uh just looking at ratios right 50 for a home 25 it's a pole mount that's not uncommon to feed four or five homes that kind of stuff okay great thank you um we do have a planned unit Edition in the 2029 area this shows where our our our substations are located at um again we have five currently airport is way out by the mall uh East uh near katr Center is um on 27 pixa is in Fruitland Park well is it Fruitland Park yeah Fruitland Park and then North is right at the border of uh on 468 North sub and the new one we the property was purchased last year um it's east of Pembrook on State Road 44 is where the substation location is um again another foundational information if you will you know we have all of our 26 feers and we kind of keep this Feer information sheet uh updated that talks about a feeder description you know a feeder could you know be fed off of a North substation run south along County Road 468 down to South Road East to St Catherine so that's a description talk about how many megawatts is on the feeder um again a feeder could be five or six megawatts uh per feeder talks about the critical customers that we serve um you got hospitals you got uh um communication facilities you got water and wastewater facilities that's all built into our PRI uh our priority settings and so when we manage those priorities we have a system priority that we manage and system is you know we are a Duke customer right they own all the transmission our priority from my system is I got to get my substations up I got to get my main feeders up laterals and I I work on my my customers at the end of the day uh the residential as I bring back the feeders the customers come back up and then you got a feeder priority that says I got all these 26 feeders and and what's the most important feeder I have to get back the quickest right what's the what's the second what's the third so we prioritize them so we have a major issue we can make sure we're working on getting those critical customers picked back up um and then you have some manual and automatic load shedding that does come into play Leesburg is what we call a a load serving entity with under frequency load shedding and so what that means is we participate in the states um management of severe faults that will tend to dip the the system if you look at a you know a seesaw and you got load over here you got generation over there you want to make sure it's balanced right if you have a major fault that loses load well I go out of balance and so I have to be able to you know compensate for that I can compensate by bringing other generators back online if I lose generation I got to drop the load right I got to balance this thing out so you have some if the frequency gets really squirly um if you remember back I I want to say 2007 in South Florida they had a under frequency issue where fpnl was working on the device and they took out a protective relay scheme and they forgot to put it back in line when they brought the system back and when they brought it back there was a fault that the whole state saw and we saw it in lesburg we saw across the state that the under frequency kicked in and everybody dropped a a ratio of load in order to balance the state out so the state doesn't collapse so again we participate in the load we're a load serving entity with under frequency load shedding responsibility so that's our little nerk caveat if you will quick question um what classifies a critical customer so uh let me get to that this is our list of our seven priorities right so Priority One For Us is you know Hospital Critical Care Facilities uh major senior centers also major assisted living facilities you got to be careful with assisted living facilities because they're they are the major ones out there that have 100 homes 150 homes but you also have a residential home in the middle of a neighborhood that has converted that to an assisted living and there may be four or five beds in that so they fall under this Assisted Living umbrella but for us it really wouldn't fall under Priority One again you're looking at the major senior centers major assisted living facilities so th that's priority one for us and then priority two is our our city uh EOC right uh the operations center over there on Griffin Road Fruitland Park operational Center uh police fire so our our the city's EOC is at the fire police department so again whether or not they're number one or number two uh they're following in there this building happens to be on the same feed as the police right so again the city hall tags along because it's on that same feeder if you will and then you just follow that priority all the way down your residential feeders are number six and then reinstates reinstates is somebody that wasn't power but you know due to the storm a limb fell down on their service and tore off their Mas and they got to rebuild it so once they get everything built and it cleaned up and ready to go then it comes back as a reinstate for us and then finally this last slide and I I gave you copies I know it's hard to read but these are our Priority One feeders again if you will this is just one page of our our feeder information list it says here are the feeders here's where they're located at the these are all priority ones and over here the type of Prior type of priority customer well that tells me why they're a priority One feeder great thank you so much yeah on the load balance and stuff on the Statewide level so like when a a storm is coming and you're expecting large sections of the state to go off are they actually pulling down generation then no so a lot of a lot of stuff happens all automatically right you know so you know when we look at what they call the ace the area control error is what's managed at the balance authoring level balancing Authority level so it looks at you know generation and load and it balances that out and you have a lot of generators that run in an automatic control where if it if it's a loss of load due to a storm broy what we're seeing is loss of load due to solar right solar is one of those things that we're having as a state to manage a lot differently because you know you could have a solar farm running 75 megaw 742 megaw and Cloud storm comes over and all of a sudden that drops off and then the balancing Authority has to have generators already running that can pick it that up and and manage that load or man or take replace that generation within 15 and 30 minutes depending on the event you know where it's happening so all that stuff is happening automatically right um the under free frequency is when there is a a event that severely impacts the system the storm's coming in the rain coming in the system rides through that all day long we just a huge part of right down so yeah I mean Irma went right up through the throat of the state but you lost load and generation at the same time okay so you know what you didn't have is a lot of you know you you're always go to sorry I'll throw a little bit a different story in there but there's always a discussion of a storm's coming in do I shut down generation rarely do operator shut down generation in anticipation of the storm normally what happens is you know the storm comes in the load is reduced due to the the effects of the Storm and The Operators are reducing the the generation that's being produced um they can take units offline the the easy ones a gas unit can come offline pretty easy you know know coal units although there's not many of those anymore you kind of keep those as base units you know your nuclear base units they'll they'll run up and down with just fine so um normally the the storm just kind of takes care of itself you lose load and generation together and everything happens just you know goes down gradually um and but when you're restoring right the the state is overseeing a lot of the restoration if you want to pick up load after a storm you got to make sure that it's okay with the state that they can they can manage that generation to meet your load just like in the other frequency you you should not pick up the load until you coordinate that with the reliability control down in Miami that's kind of overseeing the whole system so um all right so some foundational stuff out of the way we talk about growth well so we get our growth information from a whole lot of resources right you know here at the city of leeburg we have the the DRC which is established so if somebody's bringing a new product they they bring it to the DRC for the initial approv right I'll go to the DRC before it comes in here controversy commission zoning okay SOC okay so you will see projects in here for zoning we'll see it for U changes in the well I guess you know the Pud that's getting approved or those sort of things um we'll see come in here but the anyway the DRC is really the city of leeburg the Fruitland Park is the technical Review Committee uh Lake County has their own you know project review process uh we'll get direct conversation from developers within the service territory you know fdot will talk about projects that they have on the scope um we'll talk about 441 widening in a minute hey Brad let me interrupt you did look just I'm going to repeat that process for you because I know you guys see it a lot right and and what you see is before all of this you guys are seeing an annexation a zoning and a land use that goes before the Planning and Zoning Board they make a recommendation so so actually developer comes in they go see Dan Miller and they fill out the application to Annex or land use or whatever Dan makes a report um let's use so Treasure Trove comes in right treasure how 250 units going to be off of 44 they we need to Annex it goes to Dan Dan makes a report that report then gets presented to the Planning and Zoning Board the Planning and Zoning Board makes a recommendation then that goes to the city commission for first reading of an ordinance on those three issues annexation land use zoning if it's an annexation um then it typically goes to the state for review then it comes back to the city the city commission second reading and then it sets so so then there's an approved PUD so like right now Treasure Trove is an approved PUD and they have I think it's eight years is what we did the puds now they have eight years of entitlements and if they don't get it built in eight years they lose their entitlements and they have to start over again which is Dan so what I think the public doesn't see and you hear us say it all the time in the meetings is that'll get reviewed this is a this is a a schematic they can change but certain things in the PUD like the densities the Green Space acreages those are those are lock solid so what then happens is now this development is going to get built and so moving from approval the board to build board you know it's like maybe in the past two out of 10 projects actually ever got built we're seeing that move a little quicker these days so where these guys get picked up is development Review Committee for the city Tech Review Committee for Fruitland Park and project review it's all the same internal boards that each organization has and it's and and in our in our organization it's house and public works so now a developer has his PUD he's got his approval he has his entitlements and now they're actually going to build houses so before they go to romac and B the lumber they got to firm up all the all the stuff so all the stuff is they got to firm up the lot counts firm up the road layouts make sure that water and sewer can review them make sure that Parks review them make sure that electric has to say so make sure gas so there's a million different development things now going on to a bunch of City different departments where we're reviewing it and it starts in the development Review Committee so electric is just one peg in that review process so they're going to go out and then I'm gonna I'm going to stop it there because then Brad's going to tell you what they do as far now so you're only in in this presentation you're only going to get what electric does right so remember there's a water component a sewer component a gas component a roads component and all in the so that's what the DRC is doing is they're reviewing all of these steps that have to go in before the house gets built and and the DRC is typically triggered when they pull their land clearing permit right so what happens if the that point this is just like you know what like we can't get through this property or just it's not you know do you have never happened does the city have like an obligation once it's approved to to to run power there no we we don't and and and we get that question a lot okay on the Water and Sewer side it is comes down to our we have a general policy that's first come first serve so we know we have capacity of X gallons of water a day right which right now is about two million MGD million gallons a day and we're sitting on I don't we're we'll be sitting on two 2 and a half MGD at the sewer plant a house is typically a 100 gallons a day water or sewer and it can depending in lebur we run around 250 a day in water so a little bit because of the the difference in numbers is irrigation um so that's when that's kind of when the skid hits the fans so we haven't run into a situation where we haven't had capacities so we haven't we haven't said no we can't build you because we don't have the capacities hence now that goes back to why we're doing the treatment plant and why we're upgrading the cup because those especially on the water side that's that's pretty limiting so if you divide 300 by 2 million that's about how many houses we have left that we can build before we outgrow the cup so all those get hit at the DRC level so that's so that's when we say we got you and you do your permit and we run that P on the on the Water and Sewer side we run that past uh d That's when those capacities are locked in and so Cliff will do a monthly report on the sewer side so I've kept it water sewer and then on the gas side we have the the ordinance that requires gas development so then we we sit down and we bang out the cost on the gas side how much the the infrastructure is going to be what the developers required to put up then we have a separate agreement that'll go back to the commission um one of the things we're going to be doing in the future squaring up making sure electric and gas and everybody operates the same and just historically we haven't um so that so what you'll get now is the electric side so that's where this so you so when we say there's 30,000 units that's been approved which sounds like a horrible number you know crazy big um what the question really becomes does that or does that not get built out well and also the capacity that they have in storage you you need to know you don't have 250 houses worth of storage sitting in the warehouse waiting on a development so you need to know ahead of time a certain time frame that you need to order all your inventory to get to get it set up correct and yeah there's a lot of challenges with Supply Chain management right um right now uh we have a large inventory of Transformers and cable in the warehouse part of it is things took you know one you know things that used to take six to seven weeks now take a year a year and a half to get so Transformers were um you know over a year to get it meters which have been better now but meters were two years in order to get electric meter in and so you you have some concern about you know running out of those elements now for a short time we had to use instead of our Emi meters we used some AMR meters but we're riding we're have trucks running and uh riding in those neighborhoods so from a billing perspective it it didn't impact our ability to send a bill you know but you know there's some of those constraints that you struggle with just trying to to make the ends meet if you will so again from a planning perspective all this information is coming at you as Al said it's coming at you from see leeburg from Fruitland Park from Lake County from developers from fdot I I mean we've been talking about widening the section of uh of 441 from um Dixie up to Perkins for about six seven years yeah it's going to happen we budget for it doesn't happen it's going to happen next year we budget for it doesn't happen you know um it's it's a it's a struggle you know to get well what's going to come through what's not going to come through if you go to the map in the package I sent out there's a little map on the back um it talks about growth opportunities right so everybody should have a copy of that so again what we look at is these are all developers that you know have gone through one of the process we just described you got you know up in Fruitland Park you got a number of uh subdivisions that are planned um Telles you a little bit idea how big they are then you got town in in the the north end of our section you got the four phases of tar Oaks going in you got a new project we'll talk about briefly um an arbor Park which is just there uh right in Fruitland Park right just over our boundary that's the orange one and the purple one next to it the color really doesn't mean anything it I wish I could tell you it's next year the next year or the year after but uh it's just projects and customers that come to us and say hey these things are underway you got the big one if you look kind of more to the to left side of the drawing you got the State Road 44 that shows the big projects that we've been talking about just south of other side of the road from Penbrook um uh what else stands out you got the Sunny Side that we just talked about last month the over there in the in the Sunnyside area and then there's a couple projects over there by the airports by the mall uh Silver Lake Lake Silver Silver Lake that's uh that's in our territory um and and part of it is you know you got all these projects and I can't they're not all going to hit next year there's no way they're going to all hit but you know there's some percentage of these projects going to come through I think you have some commercial projects shown here as well um so the combination of of large residential plots you got some commercial load going in so you know what do we think is really going to to impact this for next year so we look at some fiveyear averaging and says well last year I spent um you know on system growth I don't have it combined for sub subdivisions just as an example a fiveyear average is about $600,000 but in that mix there's one year that was $1,200 another year of $4500 $45,000 you had the $1.5 million but that was St Catherine right so again you know how does how many subdivisions might we see next year how many new projects how many um new Transformers are going to be said lighting you know we have a a nice lighting rental program that uh that we offer here at the city you know but how many subdivisions are going to take advantage of that lighting and and from a lighting perspective and we'll talk about an example in just a minute um you know it's our capital outlay for Arbor Oaks we're going to spend about 109 no $230,000 putting in lighting infrastructure we're going to pay for that um but the homeowners association going to pay me about 18 to 20 grand every year for the rest of time right they're going to give us 18 Grand 18 to 20 grand a months uh a year sorry 18 to 20 grand a year to pay for that um so a lot of projects you know yeah I'm not going to say you just get a dark board and hang it up there and you start throwing it what's going to hit what's going to hit you know we try to to look at you know what our past trending is I think this year so far um you know we we did have two subdivisions that ended early this fiscal year uh we had some other capital projects that uh a lot of commercial projects but this year so far I think we spent about $1.3 Million Dollar on growth on this fiscal year so um the map kind of helps us to pass trending helps us to try to to nail in to where we're going to be um but how does how do how do we pass some of these costs on to the developer what's the right thing to do with a developer so our policies um have a section in there called customer Aid in contribution so I got two examples I want to run through the first example is a subdivision so subdivision comes in and the one we're going to talk about is Arbor Park in a minute um they come in and they're going to create a new developers agreement they're going to come to us and they're going to you know after they go through the process that I help discussed they're going to come to us and say we need a a design we need you to kind of move forward with this project so we're going to do a design we're going to do an overhead design and an underground design because our our rates support the overhead infrastructure the underground is is where we've gone with new construction so the developer is going to pay that Delta between the overhead and the underground and that's going to right as check nonrefundable they're going to give us that check between the difference between overhead and underground so that's part of the developers agreement the uh the Make Ready work you know where we talked about the elementary school that's going in Fruitland Park on urick in h there's a 1500 KVA pad Mount being built they're going to have to a lot of poles along that intersection that area going have to be relocated due to the road widening due to the turn in and turn outs so that's existing facilities that we have in place to serve load so they're going to pay us again non-reimbursable to relocate those existing facilities Make Ready work right uh line extension and upgrades so again the model that we have that we're following with the with the customer Aid and contribution says what's my cost to build and what's their revenue anticipated four-year revenue is what we're looking at so cost of build is going to include the underground subdivision it's going to include the the the street lighting it's going to include any um make Ready's included right Make Ready even though they're paying for it that's included and so that you got all these cost to build and then the revenue we we go to the developer and say okay the Project's going to start in January and they're going to do all our site work they're going to get all the roads ready to get the the U Utilities in that process going to take six seven months in seven months they're going to start building their homes and they're going to build 10 homes a month until the Project's done right so from that information I can build my Revenue Mah for the first seven eight months zero Revenue right because the homes are not built then the eth month I got 10 homes that month and then 10 the next month and 10 the next month so I got a a zero uh growth it's going to start ranching up and then it's going to plateau and this example Arbor folks in 18 months they're going to max they're going to finish building their homes and again I'm looking at fouryear Revenue so I got a slow ramp I got it coming up and then it's going to plateau and I take that number and I say well that's a projection of your Revenue I think that's a fair assumption that we take we're taking the input from the developer when are you going to get the site work done the road work done when you get Utilities in when you to start building homes and how many homes are you going to build a month once you start so I got to determine what that anticipated revenue is and I use that elsewhere in the model and and then finely the the piece of the sub of the subdivision says sorry I keep walking away from the mic you got um we don't want to have stranded costs right I don't want to have a developer start a project and then Midway through decide now financing is going to work out we're Jumping Ship right so the last thing we do to a developer again again this is a subdivision we say okay remember that cost estimate that Steve did the cost to build overhead remember that estimate so what the developer is going to do you're going to write me a check you're going to give me a letter of credit or you're going to give me a bond for that amount of money all right and as you develop your lots and your homes and a a resident moves in and we see 1,50 kilowatt hours which is for a home like this it may be two or three months that we have a an owner occupied home then they get if it's 163 Lots I take the in this case it was 6,000 no $647,000 and I divide that by$ 163 and they get a check or they get a credit for $6,000 bucks each time a lot meches that threshold right you follow me they got four years to BU build it and when they reach that threshold they'll get 18850 kwatt hours they'll get that reimbursed and normally what that means is most often we see bonds come in and they'll want to see a reduction in the bond and Marie manages that she keeps count of when the meter got set the when the the meter met the 1850 kilowatt hours and then between her and the developer they'll agree on a number and they'll credit that amount and we'll find fill out the forms and the slowly over time those developments get completed so a good example of that was um uh Lake denim States they just finished their buildup about 700 homes when you look at phase one two and three uh they just got maybe a handful of homes left over there so you know things went pretty good they did ask for an extension but I'm not sure they really had to lean on that extension I think they got their homes built um without the extension so again that's a subdivision couple a lot of numbers were kicking around but overall it says hey this cost to build is is is high so how do I how do I look at the developer to share in that cost to build okay so that's an example for the subdivision the commercial is is pretty much the same uh discussion point you have the conversation that says you know I got to again I got to determine what their four-year revenue is and again the four-year Revenue just so we're transparent that's the same model that Duke uses the same model that SEO uses and again when we look at where we're located at our nearest neighbors do Cano they're around us so somebody building in the central Florida area they're going to see a lot of consistency between those models that all three of us utilize so again with a commercial account that comes up you know when are you going to begin your site work and when's the property going to be full up and operational right so there's a again a delay between it's going to take me seven or eight months to do my site work to build a building get it fully operational get somebody in there get the Chick-fil-A selling chicken right when's that going to happen and so you know I'm going to have zero revenues until it starts and then it's going to ramp up to that level right there's not going to be a a a slow ramp building 10 homes a month it's going to go from zero to whatever their model is but they're not paying anything up front for for the product for for the lines for the so again I have the model that I have to look at for so let's look at Chick-fil-A Chick-fil-A is is from a cost perspective I had a restaurant there already right I had Mojo there MOS there that got demoed and got removed the Transformer fee in them got removed right behind in the back over there you know there's a pull box there a primary enclosure that I have my underground facilities at so when I look at customer like Chick-fil-A their their cost of build isn't that high comparatively right I got to bring two runs of primary and conduit I got to set a pad I got to put Transformer there all the labor about that I don't put you in a spot but you remember what that one was cost for 300 the new Transformer prices is probably about 50 so 50,000 right so what's Chick-fil-A's Revenue over four years not including the 6 seven months it was before they started selling chicken but what was their what's their revenue on a monthly basis multiplied by you know four years when you do the math you're going to get a customer like Chick-fil-A that says my Revenue exceeds my 50,000 so there's no cost to that if my Revenue exceeds the cost to install there's no customer Aid in contribution right it's when the is the other way when I'm paying more than you're anticipated fouryear revenue and we're trying to be fair with the revenue when we do the projection again you talk to the customer when are you going to start the project when do you think Chick-fil-A is going to be fully up and operational to use those time frames and you can run with it so I got two examples I I think pretty much everything was was there in that so the next slide is Arbor Park Subdivision phase one now this particular example is uh their costs are very high I say they're high because we have some main main feeder that we call it main conductors going through the center of it because this subdivision is phase one of three it's going to connect all the way from Thomas Road at Martin Luther King it's going to go all the way to 468 and so we as the electric utility are going to bring in what we call a th000 aluminum conductor so our large LGE underground conductor we're going to bring it in as a feeder tie starting here at Phase One and we're going to go all the way across to 468 when we're done we're going to have the customer is going to have a very reliable system that has main feeder we'll have switch ears going out so your subdivision as an example didn't have any million going through there no no no switch gear switch gears and and the large goes with a larger conductor very expensive stuff right yours was feeds right off the main road I got some for probably some one out stuff so from us from a building perspective it wasn't as expensive as this project will be so again some of the some of the factors that increased so if you look at that total cost to build it's going one I'm sorry yeah yeah uh right where yeah you said Thomas to 468 well right yeah the the entrance is going to be at Martin Luther King okay and Thomas okay phase one is going to go in I don't know you know a mile or so in quarter mile half mile in phase two and phase three will will ultimately take it all the way to 468 okay okay phase one will not get me that far but again factors why it's 1.6 million for us to build it it's large conductor it's large switch gears um that's all all a factor of it there's some rework needed at the Martin Luther King Thomas Road area and there's a line extension needed I got to bring in extend our primary our main feeder from The Martin Luther King Thomas on Thomas Road all the way up to uck um Along Thomas Road now luckily years ago we put in some 6 in pipe so the cost isn't as high as it could have been because the infrastructure underground is already in the ground but we still got to pull the primary still got to make it up got to put in all those pull boxes so again cost a bill $1.6 million but the customer dat a contribution $720,000 that they're going to pay us one of the reasons is because of their their cost their their anticipated Revenue like I said a moment ago it's going to be six seven months of zeros it's going to creep up until it hits the 163 over an 18 19 month period then it's going to Plateau so we calculated the revenue to be what's the number on there Steve did I not put it on there no there it is estimated revenu see it $830,000 that's their anticipated Revenue okay over four years the cost of building underground infrastructure is $824,000 so the revenue will exceed the cost to build the infrastructure and they'll have a credit of 7 to 8,000 they'll carry on on to the line extension but the line extension is going to be about a $300,000 expense that they'll pay probably 290 of the 300,000 because of their where their revenue fell that's $5,000 a home oh it's 6,000 at the end of the day when you look at what there again this is so when they look at well I don't want to point over there but you see the almost the second Bullet From the Bottom the bond letter credit remember that 647 th000 is the cost to build overhead so that's the bond that they always give to the city of leeburg and they get refunded that amount based on each lot over four years so that that money you know they'll get that back as they build it the 719 they do not get that back that is all non-refundable again the city is still paying out of our pocket I thought it was 800 830,000 that we end up paying that you know out of pocket that's not covered under the cic just the difference 719 minus 1.56 so that's what we paid to have this you know new subdivision now again you know over time you know the the revenues come in again we as electric utility or gas or water we're in for the Long Haul right I mean we're making our money over over the light lifetime not over a short project and finally I added a bullet in there about rental lighting that 20 about $40,000 that the city will pay to install the lighting and that is included in that 1.6 million and as as everything gets built out you know our rental agreements will share that they'll pay us$ 18,400 each year really you know until the cows go home whenever for a long well for the duration of time there's no end on it it doesn't go away when the capital is rebuilt but you know there is some responsibility for us as you know down the road that if the lighting fixtures fail we replace them if the the pole gets damaged we replace it is that a standard kind of payback period that everyone else uses for the well I can I got I got two data points Orlando had a uh a rental light agreement as well uh their Capital was replaced over 20 years and then after the 20-year Capital um it went on to you still have onm you still have energy cost those sort of things went into it um you know state of leeburg this is kind of in perpetuity if you will again Our obligation at the city though is to maintain and replace those lights well after 20 years you know Orlando their 20-year lifespans you know that was at cost at once the 20 years runs out so that's an example kind of where again how do I I got to build this stuff but these you know I have to look at a a fair way to share the cost in which to build this right the not every project requires a line extension not every project has Make Ready work every project has a subdivision and a cost and an anticipated Revenue but you know this project again not every project requires us to pull in a million our largest conductor and switch gears along the way it is it is uh from a reliability this is the the top subdivision that we'll build it'll have redundancy that you know others won't have as a result of it um the next slide is an example of a a capital a commercial project I'm sorry I got a mini warehouse going up in Fruitland Park up at Cook in 27 three-phase 300 KVA pad mount cost to build 66,800 you know again this is I don't know how much primaries included on it but just for the service is not much again you know for us to cost of our equipment has skyrocketed over the years so again 300 KVA pad mount 66,800 our cost to build Steve's look at the revenue this customer has a couple of manyi warehouses already in our territory so it's very easy for him to find a comparison 300 or 33,000 is their net revenue over four years anticipated Revenue over four years subtract the two at their C they'll owe us 32,9 18 cost to build right over revenue and then they have some Make Ready work they have a lot in the rear of the property they want to move to the front of the property I'm moving existing facilities $118,000 so they'll pay the total of those two numbers the8 so they're going to cut check for 150 gr yeah they'll have they don't get that back CU because they didn't Roi the full cost it's it's non-reimbursable the capital doesn't have any um you know uh loading criteria for any kind of reimburse ments that's not the capital the model for our commercial customers so we look at this model for here we look at this model for the new elementary school you know Al I imagine there will be some discussion at your level because we're going to give them an estimate for relocating the overhead polls I'm not sure how Lake County wants to manage that but that's part of part of the process they need to negotiate with appren Park hey Brad do this in the inverse let's say there was there was the um the fouryear return on investment was 70 grand and so it was greater than the 66 to build okay then they just gave us a check for the8 yes sir the Make Ready work supersedes not so said it once we'll say it again make ready work doesn't have anything to do with revenues right you're asking us the developer is asking us to relocate facility that are there needed to serve other customers you know if I have to serve other customers then they're going to pay me to relocate that we did at visha Isle remember when they started that project you got that subdivision in the back that we had to redo the feed for that so they stroked us a check for relocating existing facilities so that's kind of the models that we look at um you know one of the questions one of the question I heard earlier you know from from Tim is you know how do you you know what's the time frame on some of these projects what we do uh weekly with um the electric Department we have a meeting up uh once a week on basically project scheduling and it's 14 pages and it starts off the back of our projects and and apartments in Fruitland Park commercial City Lake County that are are just discussions at this point you know nobody's really moving forward with a project it's gone through the DRC somebody's come and talked to Steve about it you know when things start to move up on the list is when you know developers start getting the agreements uh in place for a subdivision the commercial customers start working through the any any c that they owe and then it starts moving up from you know the uh the the concept it moves it up to design it moves it up to the finished product it moves it all the way up to scheduling you know what we're working on today what we're going to work on next month um and we look at our our our pull on Transformers and again just giving you an example of of 50 KVA padmount Transformers kind of our bread and butter for for subdivisions you know right now I got about 120 in a warehouse 120 at at 20,000 a piece 30,000 a piece 10,000 all right so 10,000 a piece at at 120 of them um so Steve has Steve has the first subdivision so the the issue that that I'm struggling with at some point is when do I need more but you know Al hear me out before we say anything so I got 120 he's already said no this is a sore subject this is a sore subject by the way but you know I got 120 in the warehouse well Steve's goingon to this this uh subdivision we just talked about um Arbor Park you know we're getting ready this week I hope to he's having a preconstruction meeting with him this week part preconstruction so that's going to happen this week you know we have to finish the numbers Al that we talked about here and get the blessing we've already kind of redrafted it uh the the developers agreement to more of a resolution because we know it has to come before the city commission so we're moving in that phase so anyway we uh when Steve does the design and it's Design's finished and the customer's paid well these 20 Transformers 30 Transformers get allocated and so they get reserved for the project so all right 120 minus 30 then I got another project coming in another 30 Transformers so at some point the number will get down where I have 120 in the yard or maybe this one's completed but I'll get to a point where I only have a few that are actually eligible to be used elsewhere because they've all been reserved for these subdivisions that are underway that have paid their money that have have all rights you know to that they need to get serviced by their need date um but at some point when they get allocated and we look at a A twoyear or at least a one-year um window on when they'll be in I may have to initiate an order right so that's what we struggle the first thing we talk about in every meeting is pen Mount Transformers you know what do we have in stock when are when are they going to be allocated to a project you know when do I have to do the next order so uh right now on the larger units um the the 1500s the larger one for commercial accounts um they've been able to deliver them pretty well and so we're living within the mid Max that we set up for 500 which are used a lot we may have a A Min of two once I get down to two I reorder you know two so I replace them and that process has been managing pretty well cuz I always have to keep a spare on hand in case something happens but I also understand if I if I lose a 300 you know a 500 is in a pinch I could use that as long as it meets the loading criteria so you know we have options that we keep in our back pocket as well but you know we do look and talk about every day when do I need to order next right now we have a large Reserve in our in the warehouse and we talked about this project right Arbor Oaks everything I need for that project we're going to pull from the warehouse I don't have to initiate an order for anything right minor stuff maybe all the major stuffs in the yard primary cables in the yard Transformers in the yard switch gear switch gears in the yard so you know we're trying to pull from our reserves as best we can but I I can't I still have to look at the the delivery time and materials to make sure they meet customers expectations some point to consider just having two offense for developers where it's when we sign the DRC will order your stuff and there's no charge for that or charging some sort of capital cost and we'll guarantee your stuff you need it we'll hold it in our inventory but you got to you know pay that 5% a year carrying you well again the the supply chain issues that we're dealing with now are getting better I mean again in the past our agreement has was always with gresco our supplier and basically our agreement with them says we're going to buy all our Transformers from you but you got to guarantee me when in six weeks of a request you're going to have my quantity there and they meet that and we went there for years that was a acceptable they're not in my warehouse I'm not paying for them I only pay for them when I bring them in so the the process is smooth you know right now it's a pine chain went way out of whack things are coming down a little better um I don't know you know commissioner whether or not we need to consider another model other than what we just shared but I think we're trying to look outside the box and say you know what's fair what can we what can we pass on to the developer uh but still you know try not to you know try not to look like we're difficult to deal with but I can't put ourselves in a financial burden in order to bend over backwards again you're you know you developed your property these numbers weren't anywhere near what you dealt with and and so these numbers numbers are quite a bit larger I don't know what you call these people on board but I'm not commission well if I'm if I'm going to make a make an error I'd rather make it that way than another way a good deal any questions thank you very much very informative well next month or yeah next month Chris is going to be here we're keeping the same schedule date Chris is going to be here I unfortunately be out of town but we'll talk about about Capital Improvement planning and budgeting as well as budgeting for um kind of just maintaining the system um Al if you want we can get into specifics about the budget or we can wait till one more meeting we're going to wait to see internally how far we get on the budget side so we definitely hit it June there's enough you know I think just to kind of what the appetite there's this system analysis that Chris does each year that says can contingency analysis that says what happens if right I take a component out of service what happens how does the system respond and you go through the entire system looking at I take this feeder out how does the system respond oh by the way I have to take it out under the worst loading conditions possible so middle of summer last year was the worst loading conditions so I take this feeder out under the worst loading conditions how does the system respond and you go to each feeder and after you go through each feeder you go to back back to the substation I take this Transformer out now I lose two or three feeders how do I respond take this one out work through the whole system so at the end of the day your your your weak points your areas of concern get um elevated ele well they get shown yeah elevated up so we can see it now we start talking about well how do we fix it how do we plan for that right when we talk about the customers responsibility we got some customers over on register road you know that is up north um FR Park so the developer agreement will say hey you got to make update I got to upgrade this line from the new subdivision out the 27 Mr developer you're going to pay for that right but the 27 stuff well that that falls back on us right and so those are some of the struggles you look at as I go back to the dartboard where's the growth going to go is it is Fruitland Park are all these subdivisions going to to unleash in Fruitland Park I don't know I mean right now I can tell you Arbor Oaks phase one looks like it's it's coming down the road where are we going to go next you know Steve's thinking we're probably going to go out to the old golf course next um so that that's that's a piece of the Dynamics that says where are we going to go next so that's all I had for you so do you and Al do you and I Al play cards on whether you can order your Transformers or not or how do you do it I tell you I I I'll I'll make one comment ow ow is is Right much more than ow is wrong and so Storm's going to hit Storm's not going to hit no we're not going to get impacted right we don't get impacted you know hey you're going to have a lot of subdivisions I think we're going to have two or three hit nah things are slowing down you know it's hard to argue with him because he's right more often than not but you write down the lottery numbers please yeah keep have to share that billion dollars right I mean the the struggle is you know we got a lot of dollars in the inventory more than we've ever had and we have to start pulling from it and our our plan is and this year is we've stuck to that we got to pull from inventory and pay that down or use those those items and Dan you asked about that earlier too at least from my desk so my desk starts December 2013 till covid 2000 we really never had a huge inventory issue we were always able to get stuff and his inventory number stay so that was kind of a trick of the trade right so it took some exper like where is Brad's money going right holy cow what what are you doing with all this inventory so it's kind of in a long story short the inventory never really became an issue till covid and then when everything shut down the hard the the ability to get stuff and then the backlog I think we still have bucket trucks that we ordered four years ago that haven't shown up and so so then they get all wigged out before I get wigged out because they're building stuff so I'm I'm always watching the cash number and then one day I'm like so we start have to so that's kind of so they started stocking up on inventory so when they used to keep their inventory say preco two two to three million bucks sitting out there man I'm scared to say how much it's sitting out there now because you know be robbers right if they can if you could actually pick up a Transformer but so now they're sitting 6 to 8 million so that's a Delta of four to 5 million bucks and you see that that that number shows up on the cash graph so that's where so then that's where the argument start coming in and relooking at the C's and are we are are our numbers tight there so those are kind of things now that we're doing kind of lesson learned from covid and where we're at now but if you went from three to six one and a half of that is just inflation if you had the same amount of stuff like well yeah and so so it's all so now we need more stuff and it's more expensive and now it's so and what's so the the best one the best story is a meter right a meter was 150 bucks something like that now a meter is like 300 400 bucks uh deliver right uh the normal they talked about the the 5kva Transformer used to be 2500 bucks now that's like five grand so price out a developer it sounds like you're using like today's cost that's so we we're very careful the estimate that you pull you have the the average cost and you have the last purchase price and so the average you buy something today and it's thrown in the average right away that says you know I paid 10 grand today last month I paid you know Seven Grand and so I averaged that together um and that's what our estimates are looking looking at say probably the other business we're not using an average in this I'm using to replace yeah so on that on that number on that number two and I think it we got to we're in the process of doing that now but where we're going to end up headed is having a true up cost in these contracts so if if we miss under or over there's a true up one way or the other at the end have you have have you ever had a developer come to you and say I'll I'll buy all the materials no uh the worst I say worst I mean some of the big ones like KB Holmes or like that sometimes they want to get into pipe business they're already well I should say The Villages The Villages was different they install everything and they they they manage that whole process right and gas too gas is a because you'll have people who who will put in their gas infrastructure instead of cut us a check that's happened on occasion so we do let developers put in their pipe if they want to but we provide the pipe CU I don't want you know different inferior quality so they may save a little bit of M money on that but they're not I was just kind of curious and water and sewer is different too typically your developer fronts that cost um and we'll work pioneering agreements with them if their developments have have a have a you know well you you're going from point A to point B and you need only need a 4 inch main but we need to get you to point C so we want an eight we want you to put in an 8 in main so you know that's the pioner in your game so that c can hook up to to to B and so we don't see that as much on the electric side of the house the water Ste side is more developer driven they pay for it they dedicate it we take it over so this is only one of three one of well one of four real gas water electric oh they they have a huge cost what developer does right off the bat they do I didn't realize that okay anything else all righty Jackie anything for the good of the order roll [Music] call yes ma'am no I'm all good nothing for me Dan all righty uh motion for adjournment second thank you we'll see everybody next time