AGENDA**
W. BIEDENBACH, CHAIRMAN REGULAR MEETING J. HOLCOMB, VICE CHAIRMAN OF THE UTILITIES COMMISSION B. BRITZ-PARKER, SECY.-TREAS CITY OF NEW SMYRNA BEACH, FLORIDA J. DAVENPORT, ASST. SECY.-TREAS. TO BE HELD MONDAY, AUGUST 27, 2018, AT 6:00 P.M. L. GRIFFITH, COMMISSIONER RD (Officers Appt. 9-21-17) 200 CANAL STREET, DEBERRY ROOM, 3 FLOOR T. CLOUD, GENERAL COUNSEL NEW SMYRNA BEACH, FLORIDA W. MITCHUM, GM/CEO
PRESENTATION OF CERTIFICATE FOR COMPLETION OF APPRENTICESHIP FOR LINE MAINTAINER FROM FLORIDA DEPT. OF EDUCATION TO DUSTIN (DUSTY) WILLIAMS
ROLL CALL
1. Agenda Changes, Additions and Deletions
2. Public Participation a. Request to Appear –320-326 Canal Street, J. Mitchel Cole, Jr.
*3. Approval of Consent Items a. T Minutes of Special U.C. Meeting Held 7-19-18 (U.C. and State Requirements) b. T Minutes of Regular U.C. Meeting Held 7-23-18 (U.C. and State Requirements) c. T Extension of Work Authorization for Integrated Business Group (IBG – Sole Source) – DBA Services - B. Keehn (U.C. and State Requirements) d. T Renewal of Microsoft Enterprise Licensing Agreement (2018 – 2021) – B. Keehn (U.C. and State Requirements) e. T Developer’s Infrastructure, Capacity and Inspection Agreement – Tydemark Condominiums (HBT of NSB, LLC, by Towne Realty, Inc.) – D. Wainscott (U.C. and State Requirements) f. T EEI Master Power Purchase & Sale Agreement – Macquarie Energy LLC – T. Beyrle (U.C, State, and Federal Requirements)
4. General Manager=s Report – R. Mitchum a. Financial Status – July 2018 – R. Vodzack
5. Commission Counsel=s Report – General Counsel a. T Payment Approval for Gray Robinson - Invoice Nos. 10805707 thru 10805712 – Legal Representation through July 31, 2018 – Total Amount $18,547.34 b. T RE: Rolling Hills PUD / Legal Description / UC Conveyance to Sugar Mill Partners c. T RE: Palms Phase 5 PLAT – Release of Utility Easement
PAGE TWO OF TWO
W. BIEDENBACH, CHAIRMAN J. HOLCOMB, VICE CHAIRMAN AGENDA** B. BRITZ-PARKER, SECY.-TREAS J. DAVENPORT, ASST. SECY.-TREAS. REGULAR MEETING L. GRIFFITH, COMMISSIONER OF THE UTILITIES COMMISSION (Officers Appt. 9-21-17) CITY OF NEW SMYRNA BEACH, FLORIDA T. CLOUD, GENERAL COUNSEL W. MITCHUM, GM/CEO TO BE HELD MONDAY, AUGUST 27, 2018, AT 6:00 P.M. 200 CANAL STREET, DEBERRY ROOM, 3RD FLOOR NEW SMYRNA BEACH, FLORIDA
6. Old Business
7. New Business
8. Possible Other Business - Time for Commissioners
T A Check Mark Indicates Items For Which Commission Approval Has Been Requested On This Agenda Please Note B Most Discussion Items Will Not Have Documentation, Will Be Listed On Agenda Only
* Consent items to be approved as recommended or accepted as appropriate without further comments unless discussion is requested by Commissioner. ** Pursuant to Section 286.0105 of the Florida Statutes, if an individual decides to appeal any decision made by the Utilities Commission, City of New Smyrna Beach, Florida, with respect to any matter considered at a meeting or a hearing, that individual will need a record of the proceedings, and will need to ensure that a verbatim record of the proceedings is made. The transcription of such a verbatim will be provided an individual at a cost to be determined by the Utilities Commission in accordance with the full cost to reproduce such transcriptions and copies. ** In accordance with the American with Disabilities Act, persons needing special accommodations to participate in this proceeding should contact the individual or agency sending notice no later than two days prior to the proceeding at the address given on the notice.
AGENDA ITEM 3-a
MINUTES OF SPECIAL MEETING OF THE UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, HELD THURSDAY, JULY 19, 2018, AT 8:00 A.M., AT 200 CANAL STREET, NEW SMYRNA BEACH, FLORIDA
Chairman Biedenbach opened the Special U.C. Meeting with the pledge of allegiance and then an invocation. He then requested for a roll call to be taken. All of the Commissioners were in attendance as follows:
Commissioner James Davenport Commissioner Lee B. Griffith Commissioner Jack Holcomb Chairman William E. Biedenbach Commissioner Bernadette Britz-Parker
Others in attendance were as follows: R. Mitchum, General Manager/ CEO; B. Pitcher, Director of Human Resources; E. Fisher, Info. Officer-Employee Relations Coordinator; D. Simmons, Exec. Services Mgr./Recording Secretary; U.C. General Counsel- Thomas Cloud, Esquire, Gray | Robinson Attorneys At Law; Steve Miner, V.P. Springsted |Waters, and Walter Allen, a member of the public.
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO:
Chairman Biedenbach stated okay, I guess we should really look at…, go ahead, you’re up, I’m sorry.
Mrs. Pitcher stated me?
Chairman Biedenbach stated yes, you, give us… Then added good morning to Attorney Cloud while arriving.
Mrs. Pitcher stated just first, want to point out the change in the agenda from what you have because of the movement of Mr. Bowlin to 9:15 and then Mr. Bunch is at his initial time 2:15. Originally that’s what we tried to do, what you see there in the schedule but, so I gave you the changes Chairman Biedenbach.
Chairman Biedenbach stated okay, all right.
Commissioner Davenport stated in our packet?
Mrs. Pitcher stated well I gave him the, I just wrote on the agenda the change for him but you do have the schedule in your packet. And in your packet, which each of you have. Then asked did you bring your packet with you, I have an extra one.
Commissioner Davenport stated no, I brought it.
Mrs. Pitcher stated okay, all right.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 2
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport added, I just wish I got it sooner yesterday.
Mrs. Pitcher stated okay, so in your packet you’ll find the score sheets which you may use if you want to, you don’t have to. You’ll also find on the right side, all of the resumes again, attached to those resumes are the interview questions with room for notes. So our question is, what is your preference in asking these? The suggestion is that each of you just goes down and in the order ask the questions and until they’re finished, but if you have a different preference for how you’d like to do that, that’s up to you.
Commissioner Britz-Parker stated I have a question.
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated or a suggestion, is I just, I have a feeling maybe that as a group we might already, kind of close to a consensus or we certainly, you know, maybe we have a candidate that we’re not interested in at all. I, you know, I’m just wondering if there’s a way that we could cut to the chase faster if we tried to, even each person write down individually their rankings or if they… Like I have one candidate really to tell you the truth that I’m not interested in really at all, so I don’t, but if I’m the only one you know then so be it, I understand that. But I don’t want to kind of put somebody through a public meeting if we’re not interested in, at this point, in hiring them. So I’m trying to find a way for us to be efficient today.
Chairman Biedenbach stated okay, let me, let me ask a couple of questions. If we take it, can we take a consensus here to see if we have a straw vote at this point? Attorney Cloud is there any problem with doing that?
Attorney Cloud stated well, this is a duly advertised meeting that was set to start at 8:00 a.m., correct?
Chairman Biedenbach stated right.
Attorney Cloud continued, it’s not a workshop.
Chairman Biedenbach stated that’s correct.
Attorney Cloud stated okay, so I don’t believe these individual interviews are a condition or promise of the search are they? I would say you are within your rights to do it.
Chairman Biedenbach stated now, protocol-wise, because somebody has come down here and made the effort to be here, do we give them a shot, listen to them as a courtesy or do we, can we say one or two candidates there’s no reason to come to us because we have eliminated you at this point; give me some guidance. Then added wait a minute Commissioner Davenport, let me come over here and then I’ll come back to you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 3
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport stated that’s where I was going.
Mr. Miner addressed the Commission and stated Mr. Chairman, good morning, Steve Miner, Springsted | Waters, I think there’s probably more than one right answer to that question.
Chairman Biedenbach stated I don’t need more than one answer to that question.
Mr. Miner continued, if I was an individual coming in for an interview, this is a public environment, being rejected so to speak before the interview starts, in a way in which it can be into the public might be a bit embarrassing, on the other hand I might just appreciate the candor, say thank you, and go back home. So you are paying expenses for the travel so I think it’s entirely your choice as to which you desire to do to be honest with you. But protocol-wise, you’re here, you could shorten the day a little bit and you could put somebody back on the road. So really, it’s your choice.
Chairman Biedenbach stated okay, Commissioner Davenport, go ahead.
Commissioner Davenport stated that’s what I was going to ask Mr. Miner what he would do if he was one of us up here.
Chairman Biedenbach stated okay, all right, then let me run across the group up here. Are you interested in trying to cut this down, what are your thoughts? Commissioner Griffith give me your thoughts one way or the other, you want to interview everybody.
Commissioner Griffith stated yes, I’d be interested.
Chairman Biedenbach continued, or do you want to just cut, cut to the chase.
Commissioner Griffith stated no, I’d like to cut to the chase.
Commissioner Britz-Parker stated cut to the chase.
Chairman Biedenbach then stated you’ve already said so, Commissioner Holcomb?
Commissioner Holcomb stated I think if it’s there, I mean you know if you do the straw poll and the results of the straw polls indicate that that’s where we’re at, yes, then we follow that. If it doesn’t indicate that then obviously we would move forward with the scheduled day.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I agree with Commissioner Holcomb.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 4
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated all right, then we’re going to take a straw poll and does anybody have one candidate that they would like to eliminate? Commissioner Britz-Parker, I know you do. Commissioner Griffith?
Commissioner Griffith stated if I had to do that I would say yes, David Jarrell.
Chairman Biedenbach stated okay, well okay, you have one, I’m not interested in who, okay.
Commissioner Griffith stated oh, I’m sorry.
Chairman Biedenbach stated you do. Commissioner Holcomb do you have one that you…
Commissioner Holcomb stated yes.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated yes.
Chairman Biedenbach stated I do too, so let’s write, let’s write a name of the one that we would say we’re not interested in interviewing. And, a couple scraps of paper please?
Mr. Mitchum stated here we go, we’ve got some old…
Mrs. Simmons commented since the agenda’s changed, can write on the back of them.
Commissioner Griffith stated yes, sure. Then asked so you want one name on this Mr. Chairman?
Chairman Biedenbach stated yes, just write the name down that you’re not interested, if you have one, or two, or three, or four. He then stated Mrs. Pitcher, indicating for her to pick up the ballots. He then stated before you tell us what the results are, okay guys let us say that we have two names, how do you want to do this? If we have four, if we have four or five people that say no, I agree that we should eliminate that person, because if we’re split across here I would say we go with all four.
Commissioner Holcomb stated if your, I think you have to have a majority to eliminate…
Chairman Biedenbach stated okay.
Commissioner Holcomb stated so we’ve got five of us up here.
Commissioner Griffith interjected three to two.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 5
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb continued, if it’s a three to two with that name, then that would be eliminated. But if it’s not a majority, then it wouldn’t be eliminated.
Commissioner Britz-Parker stated I agree.
Chairman Biedenbach stated okay, so then we’re going to do a simple majority, fine, okay go ahead.
Mrs. Pitcher stated we have a majority for David Jarrell.
Chairman Biedenbach stated okay, it’s been a legal, long lunch period.
Mr. Miner stated Mr. Chairman we certainly can attempt to get with the candidates and see if someone can move up and then we re-schedule theirs. They may not be able to but they’re also in town and perhaps can. It is something we can try to do and we can immediately try to do that if possible. Understanding of course that their answer may be no, that they may have something else scheduled or whatever. We’ll do that immediately.
Chairman Biedenbach stated okay. All right, Mrs. Pitcher where did you have the questions that you thought we should be asking.
Commissioner Holcomb stated they’re actually attached on the back of your resume.
Chairman Biedenbach stated okay.
Commissioner Holcomb continued, each resume has its own, so it’s right here.
Chairman Biedenbach stated okay.
Commissioner Griffith commented half way through…
Chairman Biedenbach stated yes, okay, I am, you want to say something Mrs. Pitcher?
Mrs. Pitcher indicated no.
Chairman Biedenbach then stated Commission, I am open to how you guys want to try to do this. I, having never been through this myself, I don’t have any, I’m done with the questions I want answered so give me some leadership here, somebody. Commissioner Griffith, you’ve been in the corporate.
Commissioner Griffith stated yes.
Chairman Biedenbach stated Commissioner Britz-Parker, you’ve been, you too Commissioner Holcomb; but give me some help here.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 6
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated ladies first and added I’d be happy to chime in.
Commissioner Britz-Parker well, we’ve gone ahead and eliminated a person so before we decide that, I’d like to see another straw poll to see if we have a majority of who, the person that we want.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated I don’t have any problem with that, Commissioner Griffith?
Commissioner Griffith stated no, that’s fine.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I agree with that.
Chairman Biedenbach stated well, somebody get another sheet of paper and put down somebody’s name.
Mrs. Pitcher stated there’s a pad right in front of you.
Commissioner Davenport stated we spent a lot of, you know…
Commissioner Holcomb stated I mean we spent four hours yesterday.
Commissioner Britz-Parker stated that’s what I’m thinking, yes.
Commissioner Holcomb stated I mean, I, I’m looking at the questions, I asked the same questions yesterday.
Commissioner Britz-Parker stated I know, me too.
Commissioner Holcomb stated so you know, I could ask them again, but…
Chairman Biedenbach stated let me…
Commissioner Holcomb stated if there’s not, then I think we need to go back through and then…
Commissioner Britz-Parker stated right.
Commissioner Holcomb continued, like I have questions that would, I’d expand on, but if we’re already there then there’s, you know, we’re just…
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 7
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated let me ask a couple of questions before we vote on this. One, there’s, well now there’s only two, there’s two of them that are in the salary range. Am I talking out, am I talking out of turn here when I’m talking salary?
Commissioner Britz-Parker stated yes.
Mrs. Pitcher stated yes, I wouldn’t, I wouldn’t talk about that at this point.
Commissioner Griffith commented stay away from that, right.
Chairman Biedenbach stated okay, I shut up then.
Commissioner Griffith stated Mr. Chairman.
Chairman Biedenbach stated yes, go ahead Commissioner Griffith.
Commissioner Griffith stated so, we’re talking here about making a selection for a choice.
Commissioner Britz-Parker stated right.
Commissioner Griffith continued, positive choices.
Commissioner Britz-Parker stated I was just curious, that if we already had a majority, that’s a discussion.
Commissioner Griffith stated right, right.
Commissioner Britz-Parker stated so, good to know.
Commissioner Griffith stated but I think we want to do that and then we can come back to the original question of how we want to proceed.
Commissioner Britz-Parker stated exactly.
Commissioner Griffith continued, let’s have the straw.
Commissioner Britz-Parker stated absolutely.
Commissioner Davenport stated this is a tough one.
Commissioner Griffith stated well that’s why I asked the question, do we want to do a third out, I mean a second out before we want to do a first up?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 8
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated well if you had, if you want a majority, I think you’re kind of going…
Commissioner Griffith stated yes.
Commissioner Holcomb continued, if, if we’re all going to get there, if we take this and say…
Commissioner Britz-Parker stated if we’re already there.
Commissioner Holcomb stated right.
Commissioner Griffith reiterated if we’re already there.
Commissioner Holcomb stated right, and if we’re not then just move on, if there’s no majority then we just…
Commissioner Britz-Parker stated yes, absolutely.
Commissioner Griffith stated great.
Chairman Biedenbach stated before we go any further I’m going to say to the four of you thank you for the help, I just have no idea what to do this morning and I know I’m supposed to be the lead guy here but I just know zip.
Commissioner Griffith stated we can work it out together.
After Utilities Commissioners completed another paper ballot vote, Mrs. Pitcher stated we do have a majority for Joseph Bunch.
Chairman Biedenbach stated okay, all right now where do we go, we just…
Commissioner Britz-Parker stated well and then I guess I’d ask was it three for us, is it two for the other same person?
Mrs. Pitcher stated yes, it was just those two.
Chairman Biedenbach stated can we, do we want to know who the second guy was?
Commissioner Britz-Parker stated sure.
Commissioner Davenport stated I have an idea we all know, I mean.
Mrs. Pitcher stated yes.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 9
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated well I guess there were only two, I guess so.
Commissioner Davenport stated we’ve got to have a little fun up here too, you’ve got to laugh.
Mrs. Pitcher stated the other one was Reggie Bowlin.
Chairman Biedenbach stated okay.
Commissioner Britz-Parker stated so what I’m thinking is that however you all would like to proceed, I mean we could decide that we wanted to interview both of them and not the other two. Like one has already been knocked out, another one is not in our, it’s not a number one choice. So we can either decide we’re going to have the two top candidates coming in and you know talk to us, you know or we could ask them, to let them know where we’re at. We could, you know we, I don’t see why it’s a big thing, let them know that in our vote where we ended up and so now we’re really asking them to help us to convince us, you know, and see what they say. As opposed to hitting them with all these questions that we already hit them, that they do something to us. Or we can, now that we know that maybe we want to just go with the top candidate. The three, two is really close you know so I think that based on that they should both be talking to us.
Chairman Biedenbach stated Commissioner Griffith, go ahead.
Commissioner Griffith stated I would agree with that and the reason I agree wholeheartedly with that is obviously it was three to two. Just the numbers tell you it was close. And I had two questions about two people and felt that we had two good quality candidates and we had two that probably just didn’t have the breadth quite, and the experience to be in the hunt so to speak. But I also want to do this to hear all your opinions, I think it’s collectively very solid that we hear each other, go through the process, interview the two and then we feed on each other up here with you know regarding questions…
Chairman Biedenbach stated again, after we hear them again.
Commissioner Griffith stated yes.
Commissioner Holcomb stated well I think it’s a different interview when you’re a finalist of two.
Commissioner Griffith stated yes.
Commissioner Holcomb continued, versus a finalist of four, I think the interview’s better. So for me, when were they both scheduled, I mean I’m…
Mrs. Pitcher stated Mr. Bowlin is the first one at 9:15 and Mr. Bunch is the last one at 2:15.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 10
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated of course.
Chairman Biedenbach stated everybody’s going to have a long lunch today, enjoy yourselves.
Commissioner Griffith commented you could go out on a boat.
Mrs. Pitcher stated but we can certainly call him and see if he can come earlier.
Chairman Biedenbach stated Commissioner Britz-Parker do you have anything else to say?
Commissioner Britz-Parker stated no.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb indicated no.
Chairman Biedenbach stated okay, I’m just looking for your comments on do we talk to both, do we want to talk to both of them?
Commissioners Griffith and Britz-Parker stated yes.
Chairman Biedenbach stated you do?
Commissioner Davenport stated I feel it is important that we do talk to both of them. I feel it’s, I don’t like to use, this maybe a waste of our time to talk to the other candidates but we’ve narrowed it down to two.
Chairman Biedenbach stated okay.
Commissioner Davenport stated we should, our focus, I would like to see us put our focus on those two and us bring our heads together and then make a really solid decision. Because both of, we all know that both are qualified.
Commissioner Holcomb stated and what I also believe too, is that it’s actually kind of refreshing that we did the first elimination, that we, it seemed like there was, it was a uniformed decision. And then here, we don’t have three candidates, we have two, so four hours of interviews yesterday came to the same conclusion with the five. So that dialogue that you’re looking for obviously through the interviews happened, now let’s go to the, like I said I think the two makes sense. I think when you let them know obviously they’re the finalists, it’s a different interview, so.
Chairman Biedenbach stated what happens if both, what happens if both these guys turn us down?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 11
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated well you have two other candidates behind them and then you still have the other ten that were remaining. You can always go back and look through those again.
Chairman Biedenbach stated I’m just, again…
Commissioner Griffith commented let’s hope that doesn’t happen.
Chairman Biedenbach stated well I understand that.
Commissioner Britz-Parker interjected one step at a time.
Commissioner Griffith stated I think we can get one of the two.
Commissioner Britz-Parker stated or maybe we start over, there’s no telling.
Commissioner Davenport stated here’s the way I see it, I’ve been thinking about it and…
Chairman Biedenbach stated go ahead.
Commissioner Davenport continued, as a businessman and setting, watching all this, I see that the Utilities, New Smyrna Beach Utilities Commission is in a perfect position to hire a very, very qualified people. Do we have to be the high salary, you know, maybe no, but because of what we have here, our location, our living conditions. And what I noticed yesterday is these two gentlemen are both around 54, 55, they didn’t you know, I mean I don’t know their ages.
Commissioner Griffith stated can’t talk about that.
Commissioner Britz-Parker also stated can’t talk about ages.
Commissioner Davenport stated no, they told me that so…
Commissioner Britz-Parker reiterated can’t talk about ages.
Commissioner Davenport stated well I’m just saying okay, down the road we would get, we’re getting qualified people but they’re also talking about living the rest of their lives in this community, in this area. So you know I just feel that…
Chairman Biedenbach commented we have something to offer.
Commissioner Davenport stated we have something to offer.
Chairman Biedenbach stated the chip’s on our side.
Commissioner Griffith stated Mr. Counselor.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 12
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated we really can’t talk about this.
Commissioner Davenport stated yes, but I didn’t…
Chairman Biedenbach stated about the age.
Commissioner Griffith stated well their personal desires and so on and so forth.
Commissioner Davenport stated you can’t?
Chairman Biedenbach stated personal desires you can’t?
Mrs. Pitcher stated I’m sorry, age, or anything related to…
Commissioner Davenport simultaneously stated I think we’re good, we can talk about somebody’s desires…
Chairman Biedenbach stated whoa, whoa, whoa, go ahead Mrs. Pitcher.
Mrs. Pitcher stated age, anything related to age, and anything like that.
Chairman Biedenbach stated personal desires, wanting to live here.
Mrs. Pitcher stated that’s fine.
Chairman Biedenbach stated that’s fine, go ahead Commissioner Davenport, sorry.
Commissioner Davenport stated yes, and I’ve got a feeling that both of these gentlemen really want to live here and their wives want to live here.
Chairman Biedenbach stated well that was for sure, I mean it was, one of them was honey, I’m tired, go.
Commissioner Davenport continued, so I just think we’ve got a great opportunity here, you know, (unintelligible) will work out.
Chairman Biedenbach stated all right, okay, how do we want to proceed from this point gang and don’t be bashful. Commissioner Griffith?
Commissioner Griffith stated well I think we would follow the same, similar format that we have outlined for us with the questions, and since we’re down to two can we expand the time a little bit if we feel we need to go beyond an hour, and was it an hour and a half or?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 13
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated an hour is scheduled.
Commissioner Griffith stated an hour, then we can have, just follow sequentially the questions.
Chairman Biedenbach stated you want hear the questions that you asked yesterday, you want to hear them again or you want…
Commissioner Griffith responded not particularly.
Chairman Biedenbach continued, to hear something new.
Commissioner Griffith stated looking for something new, now that we’re tighter with two people.
Chairman Biedenbach stated well, then let’s figure out what it is then.
Commissioner Griffith stated good and I think the things that we would be wanting to think about and this is just a starter.
Chairman Biedenbach stated go ahead.
Commissioner Griffith continued, is okay, how we, how would you convince us up here, how are you going to run this organization with respect to the potential, taking it to the next level, making some changes, being a change agent, and making sure we’re doing the right things both short term and long term. And get them right into the “hows”, how are they going to take this role and make it work. And those are the things that I’d be interested in and then if there’s some shortfalls from any one of us that we’re concerned about, which I have a couple, how do we deal with that. For example, water experience, how much water experience have you really had? Trying to look at vision, what is going to be our true vision for this, this role and this Commission. So we’ve got lots of things we can just roll right into it and then feed on each other as far as follow up questions and something you may want to ask similar but yet different. So those would be my initial thoughts.
Chairman Biedenbach stated let me address.
Commissioner Griffith stated sure.
Chairman Biedenbach stated because I’ve thought about that too and I believe, and I could be wrong, but from what I’ve seen sitting where I sit up here, I believe our Water Director is the strongest guy that we have as far as the division leaders. Is everybody…
Commissioner Griffith stated absolutely agree, agree with that.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 14
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated does everybody sort of agree with that? Commissioner Britz- Parker, I don’t…
Commissioner Britz-Parker stated I’m going to, I don’t know.
Commissioner Holcomb stated right, right, I’m not qualified to say that.
Chairman Biedenbach stated just what my perception is.
Commissioner Griffith stated yes, exactly (unintelligible), we’ve seen him for six years right.
Chairman Biedenbach stated yes, and that being the case I have less heartache about somebody that doesn’t have water experience as opposed to somebody that doesn’t have electrical experience. And quite frankly, and I’m going to ask you this Mr. Mitchum, it’s my understanding you came up through the ranks as a lineman, and then as the distribution guy, the assistant, and then to the chair you sit in. Is that pretty much a correct statement?
Mr. Mitchum stated yes sir.
Chairman Biedenbach stated then our present guy had, am I, and if I’m not speaking correctly stop me, limited experience on the water side.
Mr. Mitchum stated yes, limited, believe it or not I actually started in the water department.
Chairman Biedenbach stated you did?
Mr. Mitchum added but was only there like three months.
Chairman Biedenbach stated okay.
Mr. Mitchum stated I had always wanted to be in the electric.
Commissioner Holcomb stated I wouldn’t say that qualified.
Chairman Biedenbach stated okay, so…
Commissioner Griffith stated just a quick comment Mr. Chairman.
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated what, and this is going to put Mr. Mitchum on a test, the biggest, when I met Mr. Mitchum and did all the touring around six years ago, I asked him one day or that day, what was the most important thing that keeps you awake at night with respect to the Utilities Commission, and you said water. Do you remember that discussion?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 15
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
It doesn’t matter, all I’m trying to say is I have had a sense that that was very, very important when we think about vision and potential problems between now and then and the length of capacity that is in the CIP we’re laying on it, water is obviously a very important piece of it. And I wasn’t sure if two of these guys had the qualifications, any experience to go in and understand all of it. But I concur with your comments with respect to Mr. Hoover, he can certainly close that gap with you know the Commission. So that’s my comment on why I said water…
Commissioner Holcomb stated so, to that point I asked that question to both these guys yesterday. With your lack of water experience why would you, why would you elevate yourself to the top, how do I get myself around your lack of water.
Commissioner Griffith stated good, right on.
Commissioner Holcomb continued, I was very comfortable with both answers, I, like I said, looking at you know, without sharing my number one or number two, you know good leaders do well with good department heads. And one of the things that I liked, you know, hire good people and get the heck out of the way, and then manage it. And that’s, for me, I was, like I said I was comfortable with both answers, and really shocked that it was, even though there was the lack of in their resume, their answers were, they did not lack understanding of the water, and again to where I felt comfortable. You know I always laugh when Mr. Hoover starts to talk I get a headache because it’s, you know you’ve got to have a PhD to talk to the guy. So I kind of felt that same kind of squeeze on my brain talking to these guys about it. So I felt like that but if you go look at what these guys have done, both of them have taken new tasks out of their comfort zone, they’ve attacked them, they’ve excelled at them, that’s what I like about both of them. They both kind of, they’ve attacked things that were out of their maybe their comfort zone, they weren’t qualified, and not only did they take it but they took it and excelled at it. So to me that shows something as far as being able to maneuver in an area that might not be your strength and I don’t know that you’re going to hire the person that’s going to have, that’s going to check every box. But these two guys, I think on leadership and being the person at the forefront and maneuvering, you know we’ve got some, we’ve got a lot going on. We go you know a $100 plus million capital improvement plan coming up, we’ve got to borrow some money, we probably got an issue with rates. There was a lot of things in both of their answers that I liked, that they’d run through that and solve. So I think if you ask those questions you both, all of you would be comfortable with their answer.
Commissioner Griffith stated good.
Chairman Biedenbach stated Commissioner Davenport go ahead.
Commissioner Davenport stated I liked the fact that yesterday both of these gentlemen were, asked them how would you come in here and the first 90 days, and all they wanted to do was get to know the employees starting from the very bottom and know everybody in the organization and see who, get advice, listen, listen, listen, both of them. I really, found that
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 16
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): helpful. But also I liked to hear, looking at Mr. Mitchum’s letter to us if you will what the required skills are, that really helped me too looking at that, and what jumped out at me as much as anything, if we don’t have a whole concise, you know collective group working together, and both these gentlemen, that’s where I was really impressed. Not only that but their leadership, they’re really going to care about these employees, that’s what’s very important so I would, I would maybe look at that skills again. I’d like to hear Mr. Mitchum’s input after too, to hear what he thinks about these interviews. You’re going to be sitting in here correct?
Mr. Mitchum stated excuse me?
Commissioner Davenport stated you’re going to be sitting in here with us right?
Mr. Mitchum stated it’s up to you.
Commissioner Griffith stated absolutely.
Commissioner Davenport stated I’d like to hear his input too. I think it’s a valid, you know Mr. Mitchum talked to us about hey, here’s what I think too.
Commissioner Griffith stated sure.
Chairman Biedenbach stated go ahead to Commissioner Britz-Parker.
Commissioner Britz-Parker stated I guess first of all as we’re talking, I’m wondering if we shouldn’t consider having someone get on the phone and call Mr. Jarrell and Mr. Walsh.
Mrs. Pitcher stated we’ve done that.
Commissioner Britz-Parker stated thank you. And then, but I like what Commissioner Griffith had to say, I like the idea of having Mr. Bowlin and Mr. Bunch come in. Tell them where we’re at, tell them we voted, they’re down to the total two, you can even let them know you know that it a was three, two split in first place; let them know.
Commissioner Griffith stated sure.
Commissioner Britz-Parker continued, and then I’m not really interested in going through all the same questions that we did yesterday, I’d rather say okay here’s your shot, convince us. Okay, and as a result of things that they say, I think that all of us are going to have some additional questions, we might already have some questions we didn’t ask, that we’re going to ask in a public forum, and I think we’re going to be real surprised about what we hear. You know something else that I might even think about considering. How many department heads do we have?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 17
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated seven I think.
Mrs. Pitcher stated yes.
Commissioner Britz-Parker stated well I guess they can, this is public so they can be watching. But I just wonder, you know, this is their future so we can invite them to be here that they could see the people and it’s, you know that it’s, if the other department heads are available I’d like for them to be here.
Commissioner Davenport stated well I think that’s…
Chairman Biedenbach stated let me, let me run that by everybody, everybody think about it for a minute. Commissioner Griffith?
Commissioner Griffith stated that’s where I was going so I agree.
Commissioner Davenport stated I agree.
Commissioner Holcomb stated hang on a second here.
Chairman Biedenbach stated yes.
Commissioner Holcomb stated we have seven department heads that have jobs.
Chairman Biedenbach stated yes.
Commissioner Holcomb stated so are they coming here to watch or are they coming here to participate, because I don’t need, we don’t need to bring seven department heads to sit in here and watch what we’re doing. Again, we’re, we’ve whittled this down to two, we have a concerning unanimous, so we have a three to two on the two. We have one concern which is water, well let’s present to them here’s our concern. Electrically we feel comfortable with both of you, you’re both good managers, we feel comfortable there. The one area that we have a reservation is water and get out of the way and let them explain and make us feel comfortable who’s going to be better with their water plan. And the only person I’d have sitting here for that would be Dave Hoover if we wanted to eventually leave and talk individually with Mr. Hoover, because I think he would be the one to verify the strategy, the plan, if you wanted to vet the answer, then you’d have that ability. But I think we’re getting this thing way off the tracks and I would hope that, like I said we just agreed on two people, I mean it wasn’t like we had four, it was three to one or whatever. We had two people that we said this is who we want, then we had a conversation, we said the only concern we have with both of those people is water.
Chairman Biedenbach stated same concern.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 18
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb repeated same concern. So let’s go address the concern, let’s not…
Commissioner Griffith stated like it.
Commissioner Britz-Parker stated and it was more of a thing that right now, although they could be watching, they might not be watching because they are doing their jobs. So it’s more of a thing to…
Commissioner Griffith stated observe.
Commissioner Britz-Parker stated right, to, because, because it’s really important to them I’m sure but I’m fine.
Commissioner Holcomb stated but does that make sense, I mean like I said I don’t disagree with what you’re saying is their future, and no matter who we pick there’s no guarantee, there’s no certainty with anybody.
Commissioner Britz-Parker stated but I hope they’re getting to watch.
Commissioner Holcomb stated I’ve, no, I know, but I’ve interviewed people I felt were the best choices in the world and they lasted 90 days. So, you know, again, through the dialogue I like where we’ve gone, I like the part that we all kind of agree on the same things.
Commissioner Britz-Parker stated absolutely.
Commissioner Holcomb stated so, so let’s…
Commissioner Britz-Parker commented who knew?
Commissioner Holcomb stated right, so let’s not overthink this deal, let’s go address our concern which is water.
Commissioner Griffith stated exactly.
Commissioner Holcomb added so that’s where we’re at.
Chairman Biedenbach stated you’re okay, Commissioner Britz-Parker are you okay there?
Commissioner Britz-Parker stated I’m good.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I’m okay with that, I agree.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 19
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated thank you Commissioner Holcomb. Then asked, Attorney Cloud do you have anything to say at this point?
Mr. Cloud stated no.
Mrs. Pitcher stated just a friendly reminder to remember to use the microphone so those watching can hear.
Chairman Biedenbach stated okay, and then asked are we, are you filming somewhere?
Commissioner Holcomb stated yes, right here, it’s been on all morning.
Chairman Biedenbach stated where, I don’t see the thing.
Mrs. Pitcher stated well typically the camera’s up there but it’s not working so it’s coming from right there.
Chairman Biedenbach stated oh, okay. Then asked can you hear me, am I sitting way back too far is that what the problem is?
Mrs. Pitcher stated I think each of you, if you could just be more mindful of the microphone would be helpful.
Chairman Biedenbach stated okay.
Commissioner Holcomb stated so take a break until Mr. Bowlin gets here, right?
Chairman Biedenbach stated does anybody want to say anything for the good of the organization or do you want to go out here and try to chomp on some doughnuts. Go ahead Commissioner Davenport.
Commissioner Davenport stated I’ve got to tell ya’ll, I’ve really enjoyed this process and this is, I’ve never put so much time into something, and Mrs. Pitcher and everybody. I mean it’s been, the five of us and then what, the background, and what Mrs. Pitcher’s done, it’s been, and everybody’s done, it’s been a real interesting. And I’m glad the City’s put the confidence in us to do this transaction here with you know someone walking into Mr. Mitchum’s seat, you know getting ready to step up to the plate. But that being said I know that we’re going to go straight, ask for the water, you know talk about water, but what about if we did select maybe two or three, four questions that we didn’t ask yesterday to them.
Chairman Biedenbach stated well I think, I think we’ll get there.
Commissioner Holcomb stated you have that ability.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 20
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach continued, I think we’ll get there as we go along.
Commissioner Davenport stated okay.
Chairman Biedenbach continued, and I’m not going to have any trouble recognizing any one of the four of you.
Commissioner Holcomb stated well I think you start off with the…
Commissioner Griffith interjected I don’t think there’s anybody up here that’s bashful.
Commissioner Holcomb stated no, right, start off with water, and then you Mr. Chairman, you ask does anybody have anything to add, and then if you have to add you add.
Commissioner Griffith stated fair enough.
Chairman Biedenbach stated thank you Commissioner Holcomb, and I’m going to add one thing, I had a urinary tract operation last week and if I walk out of here because there are times that it’s right now, so if I walk out Commissioner Holcomb you take over or else call this; it’s, sometimes it’s fairly embarrassing.
Commissioner Griffith commented I’ve been through that.
Chairman Biedenbach stated all right, Commissioner Davenport you had your say, Commissioner Holcomb you have anything to say.
Commissioner Griffith stated, take a break.
Chairman Biedenbach stated Commissioner Britz-Parker’s gone. We’re adjourned for, corrected to we’re in recess for a while. The Special Meeting was recessed at 8:40 a.m.
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists:
Chairman Biedenbach reconvened the Special Meeting at 9:15 a.m., and commented thank you for leaving it off as long as you did to Mrs. Pitcher.
Mrs. Pitcher stated when Mr. Bowlin comes in, just so you know, I’m going to give him a lapel mic, make it a little bit easier for him.
Commissioner Holcomb stated move around, absolutely.
Chairman Biedenbach stated okay, before he gets here I want to thank each of you four Commissioners and Mrs. Pitcher, and the rest of you that supported us during this, I think you’ve done a great job and I really appreciate it, thank you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 21
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Britz-Parker stated ditto.
Commissioner Holcomb stated yes.
Commissioner Griffith stated yes, absolutely, well done.
Commissioner Davenport stated thank you Mrs. Pitcher and Mr. Miner, thanks sir.
Mr. Miner indicated he would like to address the Commission.
Chairman Biedenbach stated go ahead sir.
Mr. Miner stated just take one brief second, had this in my notes to tell you earlier, this was quite a search. You should know, (unintelligible) location is very desirable for this position, we had applicants from 26 different states, California, obviously in Florida. We had additional two come in (unintelligible)…
Chairman Biedenbach stated let me ask you, not now.
Mr. Miner then stated thank you.
After adjusting the lapel mic, Chairman Biedenbach stated morning Mr. Bowlin.
Mr. Bowlin stated good morning, how are ya’ll doing?
Commissioner Griffith stated how are you doing?
Mr. Bowlin stated fine, just fine.
Chairman Biedenbach stated sir, I want you to know we are down to two candidates.
Mr. Bowlin stated okay.
Chairman Biedenbach continued, you and another gentleman.
Mr. Bowlin stated all right.
Chairman Biedenbach stated we have some concerns about your experience in the water side of your resume. Then asked Mr. Mitchum, is Mr. Hoover on his way?
Mr. Mitchum stated he is on his way.
Chairman Biedenbach stated what do we think, a minute, two minutes, or…?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 22
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Mitchum stated he should be walking in the door any minute.
Chairman Biedenbach stated our Director of Water (Resources) is going to sit in the audience and listen to what you have to say. You need to convince us that you’re the guy that our perceived shortness in your resume on water, that you can overcome that and that you’re the guy who can lead this organization for the next couple of years, five years, ten years, fifteen, whatever we’re dealing with here.
Mr. Bowlin stated right, all right.
Chairman Biedenbach stated all right, why don’t you just take a seat for a second until Mr. Hoover gets here.
Commissioner Holcomb stated he’s walking in now.
Chairman Biedenbach stated there he is.
Commissioner Britz-Parker stated and could I, Mr. Chairman, could I just kind of kick in something.
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated because to me, not just the water piece, you know I, because personally that’s not my big concern, it’s more like just sell us period. You know let us know why you’re the guy, big picture, what you’ll do different, convince us you’re the guy.
Mr. Bowlin stated all right, are we ready now?
Chairman Biedenbach stated did you meet Mr. Hoover?
Mr. Bowlin stated no.
Chairman Biedenbach stated Mr. Hoover.
Mr. Hoover stated yes sir.
Chairman Biedenbach stated Mr. Bowlin, one of the two candidates for the new job.
Mr. Bowlin stated hi.
Mr. Hoover stated howdy.
Mr. Bowlin stated hi again, nice to meet you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 23
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Hoover then stated his name.
Chairman Biedenbach stated Mr. Hoover is the Director of our water department.
Mr. Bowlin stated okay.
Chairman Biedenbach stated okay, Mr. Hoover, the idea is you sit down there and listen.
Mr. Hoover stated I’m good with that.
Mr. Bowlin stated okay.
Chairman Biedenbach stated go ahead sir, you’re up.
Mr. Bowling stated thank you, I appreciate the opportunity and I would like to, you know, elaborate on my experience, to maybe how that bleeds over into the water side. During the individual discussions yesterday I think there were some basic concern that because of my extended tenure where I’m at that I might be another person that really didn’t look at changing the culture or changing the direction of the company. I’ve worked for six different Presidents, CEO’s, three of them from outside. I know all about culture change, I’ve had my culture changed a half of dozen times at least over the last several years. I’ve also gone into several areas of my own and I think there’s, allude to my resume, gone into areas that were poor performing areas and changed the culture of that area and raised them to high performing areas and in a relatively short amount of time. Now in the water side, I think what you’re looking for, I’m sure this gentleman runs the water operations, he knows his job, bet you know, does a fantastic job of it. I’m not there to run the operations plant, I’m there to look at the overall operation and the future where the water goes. And when I was reviewing the reports, I think as we discussed, you know right now you run about 50%, may jump up to about 70% capacity, and after that we have an issue. So long term what are we going to do for the water supply, you know or water treatment, what are we going to do for it. That’s what you’ve got to look at because there’s no way that you’re going to build a water treatment plant or whatever it takes to increase your capacity in a short time frame. Water is, you know, takes a lot longer to get in the ground than electricity does, with what I do. So it’s what I have to look at because I’m a planner by nature, I mean I come from a planning department, that’s what I’ve done my whole life, I’m a forward thinker. And so what I would do is immediately evaluate what’s necessary to meet the water needs. So what we go look at is we’ll look at the water master plan, we’ll look at what there’s capacity’s coming you know that we need, we’ll look at when the actual demands going to come up. And we’ll lay out a project, going to lay out a timeline, what it takes to meet that. That’s what I’ve done my entire life, that’s what I do for electric, I can easily bleed that over to the water. Because like I said I’m managing the water, the future of the water department, I’m not managing the water operations plant itself. From what I can tell the water operations plant has been there since ’75, it’s a little older facility, it’s really maintenance keeping up that facility right now. That’s really what it is, it’s more of a maintenance.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 24
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin continued by stating but I also saw the need for wastewater in the area. I think it was discussed in the meeting the other day that I was really surprised that a lot of areas still here are on septic, particularly on some of your main drags coming in; that, that was really surprising to me. I mean I would be looking if there was a way to partner with the City or partner with anybody to maybe get some of that extended out. I think that you, I told you a little bit I’m pro-growth but not in, but in a small way, but sewer drives that a little bit. And I understand you know that there’s a potential deal offered at one time that I think was kind of crazy for the previous CEO to turn down, to extend that wastewater (unintelligible)…
Commissioner Britz-Parker stated can I interrupt for just a minute.
Mr. Bowlin stated yes ma’am.
Commissioner Britz-Parker stated I’m having some difficulty hearing you. I don’t know if we can maybe move that up higher or something; thank you. I just wanted, to struggle…
Mr. Bowlin stated is that better? Oh yes, I can hear myself better.
Commissioner Britz-Parker stated that’s a lot better, thank you.
Mr. Bowlin stated I’m sorry.
Chairman Biedenbach stated no problem.
Mr. Bowlin stated but going back you know…
Commissioner Davenport stated thank you.
Mr. Bowlin stated thank you, I could see everybody was kind of straining forward a little bit. But like I said my, you know I’m a planner by nature, that’s what I do. I can come in and easily evaluate the state of the water system, the water treatment plant and the wastewater system, and come up with you know a plan going forward and a direction where the department needs to be. Like I said before, you know if we need to kind of change the culture a little bit you know, I’ve, that’s what I’ve been involved with my entire career. I mean what I try to preach, and I do this with my kids and people I work with, the sky’s the limit but my pocketbook isn’t. But what I mean by that is no idea is a bad idea, think, shoot for the moon, give me your best ideas. You know and maybe that idea right now isn’t feasible, but it’s not that you’re going to shelve that idea. You’re going to maybe be able to bring that idea when the conditions are a little bit different. But I’ve always told them the sky’s the limit, that’s how I start off a lot of my meetings, the sky’s the limit, my pocket book isn’t so shoot me with all your best ideas. I’d be listening to this gentleman here, he knows his operation, ask him what his weaknesses are, what he thinks needs to be done. Now I’d go down, talk to the people in the plant, see if there’s a you know a little pearl of wisdom out there that somebody
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 25
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): can drop on it. But you know, this is what I do, I’ve been in leadership positions going on almost two decades now. I’ve ran major operations, planned, forecasted, I’ve budgeted, all those things I think are necessary to move the water department forward. It’s not a big jump to do what I’ve done for electric and into water. I stated earlier, you know, I understand the water system, voltage is pressure, water pressure, and electric current is water flow, pipe size is resistance. I mean the theory of it is the same, but like I said I’m here to really look at the long term needs of the water plant.
Chairman Biedenbach stated Commissioner Griffith, do you have any questions?
Commissioner Griffith stated no, I’m pretty good. I was one of the ones that asked you several questions yesterday with respect to water.
Mr. Bowlin stated yes sir.
Commissioner Griffith stated I hope you understand where we’re coming from here.
Mr. Bowlin stated I do, it’s, it seems like your most immediate need. Electric system is in pretty good shape, it’s taking care of itself pretty good. I think your needs right now from water I can tell are water, wastewater, and I understand that, and that’s why that’s going to have to be one of the first things that needs to be addressed.
Commissioner Griffith stated and the importance of getting into the process of and taking advantage of your leadership and skills. Talk a little bit more about how you’d do that with the people in the water department, per se with Mr. Hoover.
Mr. Bowlin stated well, I would like to first of all is, you know, let him to help me understand. Understand his system, understand his limitations, really understand the plant, you know what his concerns are, what is it that Mr. Hoover needs to have happen. Because my job is to really to support him, to give him the resources and the ability to do his job, because I hear he does it well. But I need for him to tell me that and help me understand where are you deficient, what are you short in, what do you need help in, tell, make all this work. So you know I’ll be, probably working hand in hand relying a lot on what he thinks about the state of the water system. Also going down probably just like I said to the plant employee, I’d like to hear from them, kind of what they think’s going on. And then again is there just anything that you know any kind of partnerships because a lot of water and wastewater there’s different things, you know, that you go out, there’s grant money there’s other different things you can go out and seek. So it’d be a total package not just looking at what needs to happen but how are you going to finance it, is there anything that we can go out and get a little help on because it’s expensive doing water.
Chairman Biedenbach stated okay, you’re okay Commissioner Griffith?
Commissioner Griffith stated I’m good, yes, I might come back though.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 26
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated okay, Commissioner Holcomb?
Commissioner Holcomb stated you mentioned the sewer and the septic and the, you know in the main corridor coming in.
Mr. Bowlin stated right.
Commissioner Holcomb continued, and then we have a lot of septic back off of the main corridor. You know the arguments been we don’t do that because financially it doesn’t make sense, the return’s not there, you’re not being fair to the other ratepayers by the investment. Obviously we don’t have the ability to assess, so how would you do that. I mean you know one of the things, one of my biggest arguments, or not arguments, I just don’t understand it is that we are a business and more dollars mean more resources. Now obviously a wider range or a wider reach of service takes care of the community better, why, tell us how you would get there, you know why you see that as a potential opportunity versus kind of the way they’ve looked at it in the past is we don’t do that.
Mr. Bowlin stated like I said sewer drives growth, it always has, you know get sewer out there, that’s what drives businesses, that’s what makes things grow. You know I would like to see and meet with the City. I understand the City might want to be pro-growth in a sense. Although it’s interesting I did sit down on beachside last night, I went down to get something to eat so I talked to a couple of locals. And I started talking to them, told them I was looking to moving here, you know kind of talking about the area. And then we, I asked them a little, before I even said anything they talked about the small town atmosphere, kind of fear of growth a little bit. So I asked them, I said what do you think about growth and the woman kind of cringed a little bit you know. And I said well what’s wrong with the growth part and you know because she said well we’ve tried to maintain this small town atmosphere. From what I understood they don’t want to become like Gulf Shores, Orange Beach, where you know you’ve got a McDonalds on every corner, that’s not what we want, we don’t want that you know. And I said yes, but if you’re smart about it and bring in the right businesses, would you want people that are born here and grow up here to get jobs here and stay here because if not, I mean that, you know, you drive away people. You know people that have grown up in this area because where, where there’s future going to be, it’s not going to be here, it’s going to be somewhere else. So wouldn’t you like to retain you know the people that have grown up here and I think they kind of understood that part. So we kind of went back and forth, it was interesting, it was about a 15 or 20 minute discussion but I kind of got a little flavor of the kind of maybe non-growth sentiment of some of the citizens here. But it was an interesting discussion but, you know, my point was is that growth is inevitable, it’s good if it’s done right, and if you partner, you know the City can control a lot of what type of growth they want. You know a lot of other cities have done that, where I come from I mean they go anything from the tongue of the building, to the size of the signs, to whatever. So a city can really control the types of businesses and what they want to get in here, so that can be addressed. But to your question is, you know if the City wants to do that and there’s an offer
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 27
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): on the table that they can help fund or partner with us because it’s to both benefits. You know it, I sense that we have a little bit of a house divided you know still.
Commissioner Holcomb stated again for me it’s, and let me elaborate just a little bit more, it’s an our life perspective you know.
Mr. Bowlin stated right, talked a little about that last night.
Commissioner Holcomb stated and that’s, that’s never been the, you know that’s what I look at when I invest my dollars, is there a return there. You know we have ratepayers, versus, you know that’s who we represent, so how do we spend their money wisely, how do we invest, if that were something we chose to do, how would you gauge that or align to say this is beneficial to the ratepayer or not beneficial. Is there a scale, is there a way, how do you pull that off, is there, because I’d be interested to hear that.
Mr. Bowlin stated yes, there’s, there’s certainly a return on your investment and you would think that if you went down to an established area that’s on septic, you’ve got immediate customers and those immediate customers can come over connect and you can automatically calculate you know what’s going to be your return on investment based off the fees that you’re going to get and expected revenues you’ll get off of that. It’s a little bit more tricky when you go out and maybe speculate on some area to just you know run something out. But that’s where you may get with the City or whatever, I mean where do you want to grow at, you know where is it you want to go to? You know what’s the cost to get it from point A to point B. I understood in one of your things that we discussed to see it actually offered, partner with that, and that, that was a sweet deal. I really don’t understand why that wasn’t, turned down. I mean somebody’s going to extend a line out and I’m going to get an interest payment back, plus get customers off of it, that’s a no brainer. I don’t know where that, you know why that went south, but it’s a sign I think you’re previous, you know, leadership might have been not as forward thinking and not as aggressive on, that I would be on doing something like that.
Commissioner Holcomb stated but is there a time, is there time like, like you said if we set a standard, is there a ten year pay back, is there a five year pay back? What’s the, what would be the standard that we would choose to use and again I’m not talking about speculating.
Mr. Bowlin stated right, no, yes.
Commissioner Holcomb stated we’re talking about already there, we’ve got structure, no we’re just going to kind of come off of that. Yes, and do we, you just mentioned this thing on 44 we could go back into the communities, how would you because the arguments been we don’t need to do that, but we are a business we do need revenue, we do have growth, we have a $100 million capital improvements plan coming. You know you can borrow all the money you want but sooner or later you’ve got to generate a little revenue yourselves, so.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin stated we’ve got to have enough revenue to pay your debt service, I mean you’ve got to come back and if you don’t borrow the money, you’ve got to generate enough revenue to meet your debt service, you don’t want to continually go into the hole. That’s not going to work you know, the bill’s going to come to you someday. So you know what you have to look at is the revenue that you’re going to generate, your debt service, are you going to return enough money to at least make your debt service until that’s paid off. And if you can do that and break even, that’s not a bad deal. And then after that it’s, in a way it’s, you know, money in the bank. But that’s what you’ve got to look at, if I had a ten year revenue certificate let’s say, you know and that was to invest some money to build this line, am I going to be able to service that debt with that extension over the next ten years, if it’s fifteen years, twenty years.
Commissioner Davenport stated that’s a concern I have, what you just brought up. Commissioner Holcomb is there also, Commissioner Britz-Parker you’ve brought it up several times too, is there’s a community called Silver Sands and they’re all on septic. And I would love to see, see this what Commissioner Holcomb just asked you, and I’d rely on what it would show people because it drains in the aquifer, if you will, down on the coastal out of here.
Mr. Bowlin stated okay.
Commissioner Davenport stated and it’s probably 150 to 200 homes down there that would be immediate, help them to help us, help everyone else. I’d like to see that done, you know to see that (unintelligible)…
Mr. Bowlin stated yes, I mean it’s not a difficult thing to put together, I mean you know what your estimated costs of construction is likely going to be, and your estimated costs to borrow the money if that’s what you’re required to do, and then you look at your connection fees and your revenue that you’re going to generate on a monthly basis, and just bring it back to net present value and see what you’ve got; I mean it’s, you know, not hard.
Commissioner Davenport stated also I was sitting with a realtor last night, Commissioner Holcomb you’re a friend and he built a new home out in Aqua Court, out here on the water. He says can you believe there’s septic out there right on the water? I said do what, he said there’s no sewer in Aqua Court and I went oh my, it’s just right up in town here.
Mr. Bowlin stated yes, I find it hard to believe a subdivision or a commercial district that’s already fairly well developed on a septic tank. That was a shocker to me, I would not have guessed that, I learned that yesterday.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated no, I’m good. I could shift the subject from water.
Chairman Biedenbach stated is everybody, is everybody okay on water?
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Holcomb stated just to clarify an answer, so basically what you do is you evaluate the expansion, you would look for how we would pay for it, the funds.
Mr. Bowlin stated right.
Commissioner Holcomb stated, and so if the revenue, if, you made the investment, if the revenue offset the expense.
Mr. Bowlin stated right.
Commissioner Holcomb stated say it was ten years, you know I’m just going to use a number, and then basically that ten years itself, it takes care of itself, we haven’t added any debt or any expense to the existing body, and then basically after that ten years we have net revenue in net assets that will obviously be ours.
Mr. Bowlin stated right, you said it much better than I, that’s much better, that’s exactly what I said.
Commissioner Holcomb stated I just want to understand.
Mr. Bowlin stated that’s exactly what I was saying right there, it’s better yes.
Commissioner Holcomb stated fair enough, nice kick off.
Chairman Biedenbach stated Commissioner Davenport are you okay?
Commissioner Davenport stated yes sir I am.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb stated I’m good.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated yes.
Chairman Biedenbach stated change, you ready to change.
Commissioner Griffith stated yes sir, are you okay?
Chairman Biedenbach stated yes, I’m all right, go ahead.
Commissioner Griffith stated so what we talked about yesterday was feedback from customers, feedback from employees, and the sense that you’re not, you’re impersonal, and
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): how would you deal with that. And we talked a little bit about it and how would you analyze that and then going forward make improvements towards that in leading an organization like this.
Mr. Bowlin stated well I also told you I ask a lot of questions.
Commissioner Griffith stated right.
Mr. Bowlin continued, so you know I think when I said impersonal it’s probably the more small casual talk you know is the thing. But when it comes to being, talking about the business and being strategic about what we need to do I can talk to you all day long. So just an example last night that I just engaged some locals, you know just to find out what their feel was for everything. That’s the kinds of things I’ll do, I have no problem walking up and talking to anybody in the community and just asking their opinion about what’s going on. So I mean I would talk all the way from Mr. Hoover down to the person that’s on the floor, down to the person that’s out in the field, really just to get their input. You know meeting one on one, I don’t mind meeting in small groups, I think that’s fine. I don’t mind meeting with any of the Council members, the Mayor, anybody in the community, town halls you name it, I’ve done all that. I have no problems standing in front of people and ask, but I ask a lot of questions. And I think I mentioned I ask a lot of questions, I challenge the way of thinking from a lot of folks, that’s kind of what I’m driving at, trying to get them to not just tell me how we’re doing something but why are we doing it that way. How did we get to the way that we’re doing business and is that the right way to do business? You know, I don’t want to know, yes, I know how we do it today, I want to know well how you’d do it yesterday and the day before and the day before. How’d you get to where you’re at, how do we need to get to where we want to be? So I’m trying to learn that so when I’m asking a lot of questions I’m learning and I’m assessing, I’m observing, but I’m also formulating. And asking a lot of questions to formulate directs to a strategy when I ask those questions. And so, I communicate a lot and you talk to anybody at my company, you’ll know that I talk to everybody to garner ideas.
Commissioner Griffith stated talk a little bit more about your beliefs and experience as far as improving, let’s see performance from people, developing people. Talk a little bit about your people skills and how you like and relatively value the importance of developing people.
Mr. Bowlin stated well I’ve been very fortunate in my career that I’ve worked with people that have stretched my abilities and put me in positions that were maybe outside my comfort zone at times to help me grow. I do the same thing, I believe in succession planning, you know the next person ought to be able to step in, not miss a beat. So what I try to do is, all the way down to my employees, is I try to develop them, I try to put them outside their comfort zone. I mean you have to know people’s strength and weaknesses, and you have to leverage their strengths, but you have to also improve those weaknesses. An example being if I were maybe to present something in front of the Commission, well I may be there, present, but I’ll have Mr. Hoover present it and then you know Mr. Hoover can you know tell you what his
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): ideas are. If that helps develop him to be a better leader, and maybe outside his comfort zone, people don’t like getting up and talking in front of people, but it’s things like that. Anything I can do because it makes me better you know, and the more you surround yourself with smart people the better you are, and the more you can strengthen them the better you are.
Commissioner Griffith stated and again from yesterday’s experience talk a little bit about what you’ve learned from your superior. You have a lot of respect for your boss and you guys have worked well together over the years, so what has he been helping you develop with.
Mr. Bowlin stated well Nick, my V.P. is a, he’s the kind of person that can kick you in the butt with one leg and put his arm around you and make you a best friend with the other one. He’s got a unique ability to really reach people. And I’ve watched him and I’ve learned from that, you know, you know how do you encourage people but at the same time you know if have to give them a little swap, but you also encourage them to be better. And Nick is a master at getting the most out of people you know and everybody likes working for him because he’s tough, he’s fair, but he’s also going to, you know he’s going to support you, he’s going to have your back when something happens. And that’s the kind of leader that I want to be with my people, that I’m going to be tough, you know but I’m going to be fair. And you know and people are going to make mistakes and when you make a mistake you know we’re going to back up from it as long as you don’t make that mistake again, you know you learn from mistakes and go on. But you know kind of what I learned from him is just that ability to pick people up, put your arm around them in a way and say you know come on we’re all going to be part of the same team moving forward. And Nick’s really good about having a very collective group. Also you know he’s trained us to be blunt and forthright and there’s no, our staff meetings are, are a good thing they’re not probably recorded, they’re unbelievable some times. But we are passionate about what we believe in, we speak our mind about what we believe in but yet there’s no hard feelings from anything that comes out of it. And we will walk out, we’re all electric, gas, and water, and my company are all supporting each other. But he’s, he’s the kind of person that he’s not thin skinned, you know he can take criticism and that’s what I’ve learned from watching him and that’s how I am. I’m very blunt but I also take blunt criticism, I don’t get upset when you know somebody comes down on me with both feet. I understand, and you know if I made a mistake I’ll correct it and go on. But, and that’s kind of what I try, you know the way I try to manage my people you know.
Commissioner Griffith stated thank you Mr. Chairman.
Chairman Biedenbach stated you up, go ahead.
Commissioner Holcomb stated I’ve got two, you talked about change, you know we’ve been kind of the same business, same town, same way for, you know, forever. You’re coming from a different area and you know people get comfort, get comfortable in the way that they do things. I believe that we have about 165 good employees between these four walls or the walls that we have through the community and sometimes the hard part is convincing that that
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): may be the way that they’ve been doing it is not necessarily wrong but looking at doing things a different way.
Mr. Bowlin stated right.
Commissioner Holcomb continued, opening up. I mean we’ve changed because we’ve change positions, we take new tasks and leadership but the folks that we manage, and if we don’t have the buy in, my question to you is how are you going to get, if there are changes that needed to be made, how do you get the buy in?
Mr. Bowlin stated well, you know that buy in comes by having them participate in the process. I mean it doesn’t come, the top provides leadership but the people underneath you are the ones that are going to make that work, they’re the ones that are going to enact your, you know your mission and your vision, what you want for your area. So what you have to do is let them be inclusive and participate in the process. You know and like I said the thing to do is have an open honest quaint discussion back and forth, you know what I want to do and kind of how I like to see the area lead or why can’t we get there, what’s the obstacles of getting there. Do I need to supply you with, you know is it a resource issue, a training issue, what is it you need to get you to where I want you to be, you know as far as the way I see the area performing. But you have to have their support but you’ve got to go in there and listen to their ideas. You know I don’t know everything, I don’t, you know, water, wastewater. I don’t know everything but I do know how to lead people and I know how to get the most out of them. And that’s, when I go in there I’m, when I sit down and meet with my staff it’s, it’s a wide open discussion. All ideas are on the table, there’s no dumb idea, there’s nothing you don’t say, let’s just get it all out and let’s figure out where we want to be. But you’ve got, set some kind of metrics or some kind of performance or some kind of goal, I mean if not you’re just floundering around coming in doing your job every day. You know if you want to get somewhere you’ve got to set a goal of where you want to be, you’ve got to say here’s where I want to be, now how we’re going to get there as a group and listen to their ideas. So you can’t just go in and do business as usual, you’ve got to have some kind of a metrics or scorecard or some kind of a goal in mind to get there, otherwise it’s just business as usual.
Commissioner Holcomb stated I appreciate that. The second question was the Commission, how do you view the Commission. You know we’re here as oversight and what, how do you see the inner workings and the relationship with your Commission and you.
Mr. Bowlin stated that was the subject of a lot of discussion yesterday. The way that I see it working is the way it works in my company, is that you know you’re my boss. I bring ideas to you for things I’d like to do, directions, plans, you shoot holes in it, you tell me to go back. You like this, don’t like that, we come to some kind of agreement and then you approve it. But when it comes into it, I mean you’re in charge of oversight, you’re in charge of making sure that I’m doing my job and that I’m enacting what I said I was going to do, otherwise you know why am I here. So, you know in our company we have a, call it a Board of Commissioners, same thing as you, it’s a five member board. But when they agree upon
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): something, they tell you to do it, that’s what’s going to be done, there’s no waiver from that without coming back to that Commission and getting, and letting them know a different direction or different plan and getting their approval to move forward. You know we just don’t, we just don’t go out there and just, you know, like loose cannons. We keep the board we have, sounds like this Commission, we have a very, very active Board of Commissioners. They are engaged, they care about their community, and you know we present ideas and plans to them of what we want to do and then they either approve or disapprove of those plans but whatever the structure is, that’s the structure that we follow, so. I see me coming and being very forthright with you, very open with you with what I want to do because I’m, I’m not from here, there’s no hidden agendas, I just have a goal to make this the best you know the best utility that I can make it. And I’ll be bringing ideas to you and we’ll you know formulate those ideas and you’ll give me a thumbs up or a thumbs down and if there’s something in there that you say you want a feedback in a year, you’ll get feedback in a year, not a year and a day. Because, you know, when it comes to it I work for not only the customers of this utility but I work for these five members of this board.
Commissioner Holcomb stated and it’s a little different, but again I expressed to you yesterday this is my just under third year and it is a different process, it’s kind of an upside down chain of command for me, because the people with the least amount of experience in this field are at the top and the people that are, with all the experience are beneath them. So I look at my role as support you know and again the reason I asked the question the way I asked it is, is you need buy in beneath you, you need buy in above you. And as long as we all understand, that’s what I’m trying to get to, and I think that’s where you were going with it is because again we want to do, we want to support ever who’s in that position, but we have to understand what it is you’re doing and why.
Mr. Bowlin stated right.
Commissioner Holcomb stated so, so again you do what you do so it’s very clear and easy. I do what I do, so what you’re doing is foreign. So, so I want to make the best decision, apply my skills to you. How do you get me to understand the utilities business, because it is very unique, to, you know, to be your partner to make sure we’re doing, we’re making the best moves on behalf of the ratepayers and the citizens of New Smyrna Beach.
Mr. Bowlin stated well, I hope I can explain it in terms that we can all understand. It was very unique interviewing individually because you come from business perspectives, financial perspectives, and I come with more of an engineering, operations background. So I even sensed yesterday there’s a little sometimes a disconnect in maybe the language and certain things, so my job’s to present to you in terms of a business proposition. I think that’s something that you know would be easier to understand. So mine is to get out of my lingo, come to you with a business proposal, and here’s what I see that we need to do. So and we’ve got to be able to communicate on the same playing field, and I sensed a little bit yesterday that, that you know I need to manage my, my presentation in order to do that.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Holcomb stated thank you, that’s all I’ve got.
Chairman Biedenbach directed next to Commissioner Britz-Parker.
Commissioner Britz-Parker stated yes, with what you’ve learned about the Utilities Commission so far, what do you think would be, what could you, do you see yourself being a top priority to do differently or better right out of the gate.
Mr. Bowlin stated improving communication with this Commission, improving communications with the City, that’s two things I think that are. I mentioned earlier we have a house divided, to paraphrase Abraham Lincoln a house divided against itself cannot stand. We can’t be divided, can’t be anything going on between you and me or us and people downtown or don’t call it downtown, City. So first of all, they don’t know me, is establish that relationship, let them know who I am and what I’m here to do and how I’m here to help. Because they don’t know me, you don’t know me, so my job is for, to meet them immediately and get them to know who I am and what I’m trying to do. So I think that’s the first thing and then the second thing of course is what we talked about, we’ve got some rate studies coming up and it was mentioned in the Triennial. I think yesterday you said you already are going out for a rate study, we’ve got to get prepared for that, you will miss the CFO. Immediately got to get with the CFO and find out, you know, let him a good grasp or he or she get a grasp of the company and run get a handle on where we stand on that. Because you can’t bury your head in the sand if they come up with a rate study that says you need the increase, you know you keep putting that off ten, fifteen years, you’re eventually going to end up, you know, coming back and biting you so, you need to address it head on.
Chairman Biedenbach stated speak up a little bit please, you’re starting to fall off there.
Mr. Bowlin stated I’m sorry.
Commissioner Holcomb stated it’s just you, your tone’s dropping.
Chairman Biedenbach stated yes.
Mr. Bowlin stated okay, thank you, did I answer your question?
Commissioner Britz-Parker stated yes, thank you. What, do you have an area that you think you have a special gift as far as being innovative?
Mr. Bowlin stated just the fact that I’m a forward thinker. I think if you talk to anybody that I worked for, I’m always thinking ahead because if I’m, a planner by nature you know, five, ten, fifteen years where I need to be. Every thought I have is about where I need to be five or ten years from now. That’s the way in my personal life and that’s the way I approach business. So you know I don’t think about just running the business from day to day, I think about where the business will be five years from now. So you know I’m constantly coming
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): up with crazy ideas, I’ll probably bring some to you that you’ll probably think absolutely crazy you know but they’ll be different. They’ll be different but you may look at me and kind of you know close one eye when I’m discussing it but at least I’ll present some ideas to you about what we need to do.
Commissioner Britz-Parker stated and Mr. Bowlin I know you told us that individually when we met with you yesterday but for the record and who all might be listening, you have been with your current company for how many years?
Mr. Bowlin stated 31 long years.
Commissioner Britz-Parker stated 31, so why us? Why do you, why are you interested in coming here?
Mr. Bowlin stated right, well it’s a, as I explained, in my job I’ve been doing it for 31 years. I love my job, I think I’m very good at my job, but it’s time for a change, it’s time for me to do something different. I’m an empty nester, kids are gone, so it’s a good time to make that change now in my life and this is the time to move forward. I’m looking, when I was looking for jobs I was looking for two things. Really one that fit my skill set, that I thought I could come and add value to the company, you know I wanted to be able to do that. If I’m coming into any company I want to be able to add value. And two, I was looking for location, I like a few things that I read when I was reading about your company. One was you do operate as a Commission, where I come from the Commission may approve something and City Council may turn around and say no you’re not going to do it; so that part really attracted me. I like the smaller community because I like to be engaged in the community. I like to go out and talk to people and with a smaller community it’s easy to do that; I like that part of it. Of course, the location, can’t beat the location. And I was just looking for a you know also, even though I don’t have the water, wastewater experience, something else to broaden my experience. You know I get bored a little bit doing the same thing over and over, I wanted to do something that was a little bit different. So, going, I could have gone to a strictly electric utility, they’re all over where I’m coming from, but I also was looking at something that maybe had gas or water, something else I’ve got a little bit of a background in. And, and so I was just looking for a new challenge in life and I, you know that’s, this job excited me when I read everything about it. And also I looked for, when I looked at, I’ve got to mention this, that a utility at its heart is really a construction, engineering firm, it’s surrounded with good customer service. And when I looked at the way that it was being ran, we were putting out good master plans, they looked like they were sound, then you were turned around and you were actually supporting them by putting in the budgets and things to go forth to move that plan. Something that you know we did for several years, I think we may have gotten away from that a little bit. But that’s what you do, I mean we’re here to serve our customers, so you come up with a plan to serve your customers and come up with a way of funding it. From everything that I could read and that I read it’s the kind of company you seem to run, so. I found out a couple of other things yesterday but things that we can address with maybe the
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): direction of not moving forward on water, wastewater expansion. There’s a few things there that probably need to be addressed.
Commissioner Britz-Parker stated that’s all I had.
Chairman Biedenbach stated Commissioner Davenport, do you got anything?
Commissioner Davenport stated is, I’d like to know specifically what you would do and how you’d approach our City council or Commission, our City Commission to get a better… I’ve never really understood it over the years why it seems to be we get appointed by the City and voted on but then something seems to happen. We need that work relationship, but if you could be a little more specific to me, I want to know what you would do. I mean I really care about that.
Mr. Bowlin stated right.
Commissioner Davenport added we all do.
Mr. Bowlin stated well, although I don’t mind talking in front of a group, I find the best discussions are one on one, because people are going to, you know, people may speak their mind and I don’t have a problem doing that, it’s easy to get them on one on one, you have a better conversation. So what I’d like to , if I could, is meet with each one of them one on one and you know explain who I am and also get a feeling what, where’s this angst coming from and what is it. Can they even explain what it is, is it just a general dislike of the disconnect between the two or is there something specific, something that stuck up, you know, a craw that it’s something I can address. So what I’d like to do with each City Council member or you call them City Council members down here I guess, and the Mayor, is meet with each one of them individually and just really have a conversation, just like I had with you yesterday, to find out what is the root of the issues. That I’m coming in new, I’ve heard this, but I have no basis for it because I have no background, so you know explain to me, you know, what is it you see that the Commission is, that you see is a, you know that maybe we could help or that you think we’re not doing as well as we should, what can we partner on. You know all that, just have a good, you know you can do that discussion relatively quickly and maybe just get down to the root of the problem. Because if you don’t, if you don’t talk about it, it’ll never get solved, you know you let it fester it’ll never get solved. And sometimes people can’t, they have trouble even articulating, you know, what the problem is but I think if you keep having conversations, keep asking a lot of questions, keep driving it, you can get to the point of, you know, do they really have a problem or is it just a general this is the way I feel kind of thing.
Commissioner Davenport stated tell me again what factors would most influence your decision to accept this position, what factors to accept it.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin stated really it’s about the job, I mean and I explained that today, why the package is important, the job is what I’m looking for. I’m coming from a utility, I’m going to have a retirement, I’m going to have, you know, so when I’m looking at my second, my last career I’m looking at the job. It’s a job that I see one is a good fit and one that I can come to work and enjoy because if you can’t come into work every day and enjoy what you’re doing then you don’t need to be coming in to that job. So I’m, I was looking for a job and a fit that in a community that I could, I felt like I could be comfortable in, that I come in every day and do a good job, and then have a little fun. Can’t have a little fun in what you’re doing you know you might as well find something else to do.
Commissioner Davenport stated tell me why I should vote for you to accept this position, give me a reason to hire you.
Mr. Bowlin stated reason to hire me.
Commissioner Davenport continued, get my vote.
Mr. Bowlin stated two decades of leadership, demonstrated ability to come in and transform areas, communications skills, you know there’s no fear of communicating with anybody on any level, actively involved not only in the company but in the community. I think I’m, those right there are factors that the company needs and things I can bring to the table to maybe help benefit the company.
Commissioner Davenport stated I’m good Mr. Chairman.
Commissioner Britz-Parker stated yes, I think I’m good.
Commissioner Griffith then stated thank you for your interest.
Commissioner Britz-Parker stated absolutely.
Mr. Bowlin stated I thought you had been holding back, I was waiting on you.
Chairman Biedenbach stated from last night, from last night down on the beach, what is your overall impression. You said that you talked to a couple of people and they short of shuddered when you talked about growth and they seemed to settle down after you talked to them. I don’t know how many people you talked to or whatever. What was your impression after you talked to whomever and however many you did?
Mr. Bowlin stated right, well what I was surprised about is right off the bat how they understood the issues of the community. You know a lot of people are not involved in what’s going on but apparently I, or either that I picked the right people to talk to. Because I mean right off the bat, yes, right off the bat they went to this growth issue and I didn’t really have to bring it up, they just jumped right on it. And so one, I found that they were passionate, they
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): were people that had retired down here, been, and even though they retired down here they still cared about their community. So you know I was really surprised by that you can walk up to a stranger and right off the bat the issues that we discussed yesterday were the issues that were on the table. That was a pleasant surprise because that means they’re educated, they, you know, they know what’s going on, so that part I really liked. And I kind of you know got a feel too that they liked the small town atmosphere of the community, they don’t want to be another kind of, and I used Orange Beach and Gulf Shores, that’s my reference not theirs, but I knew where they were going when they talked about change on every corner. So they really want to manage the small town community and but they really talked about, the way I understood is on the other side of the causeway as much as, you know, I guess it would be I think west of town. That seemed to be the more of their focus, they liked the I’d say on Flagler Avenue that they liked that environment, they liked the small shops, they didn’t want somebody to come and take those away you know by having these big chains and losing businesses and things like that. They want to keep that atmosphere downtown, that’s what they were really, you know, in that area, they’re really looking to keep that small town kind of, you know, individual mom and pop type stores; that seemed to be their main concern. But I was impressed that like I said either I picked the right couple to start talking to or something, I knew they were local when they came in, they, when they sat down then I, so I just asked if I could ask them a few questions and they didn’t mind talking, so.
Chairman Biedenbach stated anybody last round, everybody good? Thank you for your time today sir.
Mr. Bowlin stated I appreciate it, thank you very much.
Chairman Biedenbach stated and good luck to you.
Mr. Bowlin stated thank you, it’s been very enjoyable. If nothing else I’ve learned a lot about your community, so I appreciate it.
Commissioners Davenport, Griffith, and Britz-Parker simultaneously stated thank you.
Chairman Biedenbach asked Commissioner Britz-Parker do you have, before, do you have anything I need to do that I forgotten.
Mrs. Pitcher indicated Mr. Bowlin may have some questions for the Commissioners.
Chairman Biedenbach stated okay, do you have any questions for us sir?
Mr. Bowlin stated no, I asked most of my questions yesterday in the, one was just to get a flavor for what are the issues here and you were more than willing to share those issues with me yesterday. Because anybody that moves into an organization wants to know what they’re getting into and I really do appreciate your candor yesterday and sharing with me what you
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): thought were the major issues that need to be addressed. Because, you know, if I were offered the position I would have time to think about it and when I come in I won’t come in, you know, not knowing that and having to learn. I’ve already learned enough about your organization to, you know, start formulating things in my head that I’d want to do day one when I come in. So I appreciate your candor yesterday, learned a lot about the company, good company, going to come in, and everything I did hear, good employees. I heard that from top down, every one of you said what great employees you have here at the company. That’s a bonus, if you’ve got good employees you can do anything with it. So I do appreciate just meeting with you individually and I appreciate what you shared with me, it was very helpful, appreciate it.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated thank you, have a good day, have a safe trip.
Mr. Bowlin stated thank you.
Commissioner Griffith stated take a little break Mr. Chairman?
Chairman Biedenbach stated yes, and then asked Mrs. Pitcher when’s the next candidate coming in?
Mrs. Pitcher stated he’s here.
Chairman Biedenbach stated oh, he is?
Mrs. Pitcher stated yes.
Chairman Biedenbach stated okay, why don’t you give us five minutes.
Mrs. Pitcher stated yes.
Chairman Biedenbach stated we’re in recess for five minutes; recessed the Special Meeting at 9:58 a.m.
(1.b) Joseph Bunch – Public Interview of One of Two Finalists:
Mr. Bunch then stated morning everyone.
U.C. Commissioners responded simultaneously good morning, Chairman Biedenbach added how are you today?
Mr. Bunch stated I’m well, glad to see everyone.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach then stated whoa, I’m sorry, we’re back in session. The Special Meeting reconvened again at 10:12 a.m.
Chairman Biedenbach then stated okay, and repeated good morning sir, how are you today?
Mr. Bunch stated very well, very well, good to see everybody.
Chairman Biedenbach stated sir, you are one of two finalists for this job. We have some concerns that you’re very strong in the electric side of it and have some concerns about the water side of it.
Mr. Bunch stated okay.
Chairman Biedenbach stated we have our Director of Water Services (sic Resources), Mr. Dave Hoover, if you’d like to go shake his hand. Mr. Hoover, this is Mr. Joseph Bunch.
Mr. Bunch proceeded to shake Mr. Hoover’s hand and stated hi, pleasure to meet you.
Mr. Hoover stated nice to meet you.
Chairman Biedenbach then stated to Mr. Bunch, we need you to convince us one, how you can make us more comfortable and then we need you to tell us why you are the guy that we need to hire for this position. And we’ll let you have time to go ahead and make your presentation and then each of the five people up here will ask you some certain questions that they think they need a better answer to or that we all do.
Mr. Bunch stated okay, very good…
Chairman Biedenbach then stated and would you please speak up because we are having trouble with the sound or whatever, they’re looking at me and saying you aren’t speaking loudly enough.
Mr. Bunch stated okay, so whoever is in charge of that just let me know if I’m not speaking clearly or loudly enough; is that good? Okay, thank you. So just repeating that back to make sure I understand the questions, it sounds like two parts, is, so you’re looking for me to provide some comfort in terms of my ability to lead the overall organization which includes water, recognizing the backgrounds I bring in the electric industry. And then part two of that was why I should be the one chosen for the role; is that correct?
Chairman Biedenbach stated yes sir.
Mr. Bunch stated okay, I would also offer if during my comments anyone has any questions, feel free to interrupt and I’ll be…
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated we don’t have any problem with that.
Mr. Bunch stated I didn’t, thought so, but I also didn’t want to make you feel uncomfortable. So I believe what I’ll bring to the role and if this helps you have a level of comfort, is effective leadership of the organization and business, understanding what my strengths are, what I know and what I don’t know. And I think, I think that is, that’s key for any leader and particularly executive leaders. If I was leading the organization I would not try to be the technical expert in any of the areas, including water. I’d look to the Director in this case for the water division to run that. That said the role of the CEO has a number of requirements that regardless of what industry you’re in you have to effectively lead, run and work through to be successful for the organization, as a business entity, and the team that you’re leading. And so all of these industries, and I’ve worked in electric and gas, not just electric. I told some of the folks yesterday, the company I worked for, for 28 years, is Baltimore Gas and Electric, it’s actually the nation’s oldest gas company, in 2016, had their 200th anniversary. I did engineering of both electric and gas way back when, as a newer employee. So pipes and wires is what we call the business, now obviously there are differences between gas and electric technically, but also from a compliance standpoint. I’m familiar with the challenges of those industries, you know in the case of water quality, availability, supply, capacity are big challenges. And I think the other one we that we need to make sure we understand is if I was the CEO for running the business, would be what are the risks associated with both elements of our business, both water and gas (sic electric).
Mr. Bunch continued and stated so is, I was talking with some of the Commissioners yesterday, living in Maryland most of my life, except for three years I was in northwest Florida, we are a coastal community like you and I’m well aware of the risks and impacts on the business that weather brings to our business. So I have, I’ve led large scale hurricane restoration efforts in Maryland, upwards to three quarters a million customers out of the 1.2 million that BGE had as customers in terms of restoration, running the overall execution and communications with public entities and media in some cases. So I bring good leadership, I would bring good leadership to the role in terms of, again the water business I would rely on the technical experts, the Directors running that division, like I would the electric, to run the day to day. I might have said electric, I meant to say water, like I would day to day for the folks in the electric. But my role and mode of leadership as the CEO would be to make sure that there, we have plans in place to address the challenges of both those businesses, we have a solid business plan that, once I was on board I would work with the Commissioners to review. If we thought there was any desire and need in conjunction with our customers and the community to move in a different or newer direction, we’d work on that vision and strategy. That’s not something Joe as the CEO would come in and assume I know what the customer in the community or the Commissioners think we ought to have. What we don’t want to have is, I think the worst outcome would be hire somebody who has a predisposed opinion, knows what the solution and the exact needs of this organization and your community are and come in like a bull in a china shop for lack of a better word. I’m a deliberate leader in terms of planning, strategy, and then working with straight stakeholders rather, and in this case it would be the City, your Commissioners rather, and our community
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): to enact that so. I would do a well balanced approach to leading the business. I told a number of the Commissioners I met with yesterday, I’ve been entrusted to lead organizations up to 500 people. In my prior role I had 24/7 day to day responsibility for about 60 percent of the BGE electric region which was three quarters of a million customers, probably 1,500 square miles. The employees associated to that number about 500, we had several hundred contractors, and my budget was about $140 million annually. So I bring, feel very effective leadership to the table, the ability to manage the business, the financials, and then work with the community to make sure we’re meeting their needs and expectations.
Mr. Bunch continued, so if I was on your side of the table I would be asking similar questions but I’m going to bring a very solid industry experience to the table, offering it to the Commissioners, and a delivered approach to the way I plan, run the business, and work with stakeholders to develop and enact a strategy. And I’ll just add again, goes certainly back to the question about water, am I going to be your technical expert, I don’t think you need or want me to be but if hired I would be asking the right questions to make sure we have a good business plan in place for supply adequacy, just like electric, quality. I know water quality’s a big issue, issues with run off in the region, drainage causing problems to you, tidal wetland grasses and things like that, and the aquifer. Beyond that I’m going to trust the team to tell me what that means and what our technical plans are, what we need to address it, and then what investments we need to make. And we’d work with the Commission to make sure that the budget available to provide for that long term adequacy and safety of the water side of the business. I’ll pause there for a moment, Chairman Biedenbach, hopefully that addressed the two parts of your question.
Chairman Biedenbach stated Commissioner Davenport, you okay over there?
Commissioner Davenport stated I’m fine.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb stated with that, yes.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated we’re just talking about that first question?
Chairman Biedenbach confirmed that first question.
Commissioner Britz-Parker stated I’m good.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated I’m good.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated go ahead sir, we’re good on that part.
Commissioner Britz-Parker stated he’s waiting for a new question I think, he’s waiting for a new question.
Mr. Bunch stated I thought that was, one was how to make you more comfortable with regards to the water side of the business, part b. why I should be the one. Would you like…?
Commissioner Holcomb stated right, all right like we said more questions right?
Chairman Biedenbach stated all right you want to go to it. Sorry for the misunderstanding gentlemen, go ahead Commissioner Holcomb.
Commissioner Holcomb stated, and I appreciate you being here. Again the finalists that we have I feel that we have two really good choices, which is exciting. You talked about you bringing a lot of experience and what I look at is how do we take your experience and transfer it through the employees and get that into the business. And again you’re coming to an area that’s, you know that’s we’ve done things a way for a long time so your visions and strategies and what not might be different. How do you see getting that and getting the buy in into the people that implement those ideas?
Mr. Bunch stated okay, excellent question, so in terms of transferring experience to lead the business with the employees. One of the folks asked yesterday what I would do in the first 60 days, so my general approach to this business and other roles that I’ve had is do a 360 degree of assessment. Understand what I’m coming into as your incoming CEO and so there, and I see three or four prongs of understanding. One is what is our business plan and direction, how we got to where we are, getting a good, get my arms around that. Understanding the financial side of the business, I understand you’re in the middle of hiring a CFO as well, so just understanding where we are financially. But I think the bigger component to answer your question directly Commissioner Holcomb is understand the culture, how do we make decisions, what, what’s the day to day operating environment like between employees, their leadership, how do we get ideas on innovation from employees and embed them in our plans. And again I’m not assuming it’s right or wrong coming in but during that first 60 day period or so I want to get a good feel for where we are. I talked about it earlier, about developing that vision and strategy with the Commission going forward, a big component of that is our culture. So if we, if we saw the need or desire to make revisions to that through my recommendations, talk about it with the Commission, the leadership team, and if we thought it was the right thing we’d set in a revised direction, recast division if necessary and strategy, how we’re going to get there. And then visiting our core values, what do we stand for, what are our thoughts on the work environment, how we deal with each other day to day as employees, look at employee engagement, trying to understand that. I don’t think you need to do an exhaustive or an expensive survey to do that but just to kind of get a general feel for how our employees feel about coming to work every day as part of our hiring and retention strategy. And then put that together in a package, okay if this is our vision, our strategy, how
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): we’re going to get there, what are our core values and what do we stand for and then that rolls out into, that rolls out into the employees. You know it becomes part of the communications, this is what’s important, this is how we expect each other to conduct ourselves when we’re doing business with each other. And more importantly, as leadership team, make sure we’re modeling those values every day in our communications, the decisions we make, and how we deal with each other. The thing I do a lot, you know in roles where I’ve had big organizations is go out and about, meet with employees. I like to do skip level meetings where I sit down, a couple levels down in the organizations, three, five, seven employees, just kind of get feedback. As questions like how can I make, do you have any ideas to improve the business, how can we make your job easier, what’s getting in the way of that, and do you have any ideas that will help us improve the business. Yes, you kind of take down those data points and over, you know, a couple three, four months of conversations with people at all levels, you get a real good picture of where we are and where the opportunities might reside.
Mr. Bunch continued, but I would bring the general approach to how, the businesses I’ve run have become successful, as I’ve mentioned to some of the Commissioners yesterday. I spent approximately 28 years with Baltimore, Gas & Electric, but the last seven or so have been part of the Exelon family of utilities and they are in either the top quartile or top 10%, top decile of performance in about 44 or so of the 47 areas that we benchmark. And Commissioner Griffith asked me questions about what I learned in a role and the CEO that I had been working with over the last couple of years, and it was observing how he challenged a team of pretty big company CEO’s to get there collectively, how he led that team, challenged them in a positive manner, and made sure that the business plans delivered the results that they said they were going to deliver on with the money that was entrusted to their management. So that’s what I would bring in terms of the experience, and then I would transfer that through the leadership team and the organization, go back to the values, how do we make decisions, and what we reward in terms of performance as well.
Commissioner Holcomb stated thank you. I’ve got two more questions, but if any of you want to elaborate on that I just want to…
Commissioner Britz-Parker stated could I ask a question?
Commissioner Holcomb stated yes.
Commissioner Britz-Parker stated thank you for being here Mr. Bunch.
Mr. Bunch stated thank you, appreciate it.
Commissioner Britz-Parker stated our other candidate is coming from also a long association with an electric utility but it’s in the governmental arena. So you’re different in that you’re coming from the for profit arena, so and what you were dealing with absolutely, like you’re not feeling in a lot of respects your electrical experience, you’re like the smartest guy in the room. I want to feel comfortable, and have our other Commissioners feel comfortable that
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): you could make that transition, you know from being like really among the elite with you know really big organizations to dial it down to an organization this size and, and be able to deal with this body being the governing body, having a proper relationships with the City, reaching out to the appropriate places to get us involved, to accomplish our vision. Could you just address, you know, I, the last thing that I would want for you to come on board and be bored, you know, so, it’s like address that. How you think that you could make that transition from really good, really in the upper echelon of electrical performance it sounds like to me, to the Utilities Commission here in New Smyrna Beach.
Mr. Bunch stated okay, thanks, I, I understand why you ask that question maybe, you know, why this job, why this town? I don’t have that concern personally, I worked my way up through the industry. I, you know, I went to school, college with a family, worked hard to get there, spent time in the military. Yes, I am currently with a really big organization that is high performing in the industry, I’ve learned a lot from that experience, but I’m also at a point in my career where I want to get back closer to the community and closer to the employees and the organization that I lead. In terms of stakeholder relationships, when I was regional director of ops. at BGE I worked relentlessly to develop and maintain positive working relationships with Baltimore City, which was not always an easy thing to do. Folks have come and gone, department heads have come and gone, but the ones that have been there quite a while and were solid department directors we developed positive relationships with and still have them past my time in those roles. I believe, in speaking with the Commissioners, there’s an opportunity to establish, confirm that good working relationship between the Commission and the City. And I think in that 60 day period, in addition to the 360 degree just kind of general review and observations I’d do in the business, one of the things I would want to understand is how are things going with the City and meet down with, meet with some of the key holders, introduce myself, to start those relationships. And at the same time I’d like to do one on ones with the board of Commissioners, not interviewing you but understanding your perspectives, where we’ve come from, where you think there are opportunities to take the business and also understanding what you’d like to accomplish as a board or Commissioners. So I would transfer that experience from the industry through the leadership team and employees and I don’t have, I don’t have concerns about becoming bored. I think every job I’ve ever been in I’ve entrenched myself in with a really solid work ethic and I’ve given it my all and I would expect that if I had the opportunity to lead the organization you’d hold me to that and measure me by my results.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated Commissioner Griffith you had something?
Commissioner Griffith stated yes sir, Mr. Bunch we talked a little bit yesterday with respect to being an operations guy and then going through Baltimore Gas & Electric and Exelon becoming an assessment guy. And different behavior, different requirements, and so on and so forth, and six individual units you know within Exelon, you were assessing all the time. How would you take that learning that you had and apply it to here?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated okay, so just repeating that back, how would I take assessment, the learnings rather from assessing a number of companies performance and apply that here.
Commissioner Griffith stated yes, with your head or operations experience, you have years and years of operational experience. All of a sudden you go into a staff role with a, with, you know the parent company so to speak.
Mr. Bunch stated right.
Commissioner Griffith continued, different requirements and get clear on accountability and then how best can you use that knowledge and experience and apply it here.
Mr. Bunch stated I think that was, as I was looking at information about the Commission and thinking about the interviews, I looked at your five, ten year plan. Every business has to be run by a scorecard, we need to make sure we’re measuring the right things. In my experience of leading the overall assessments in six of the companies that I work with, it was in the area of reliability for the whole electric utility and that drew how they spent all of their capital and maintenance dollars. So when they put together a business plan, let me back up, at the end of each year we would do a reliability assessment, in the February timeline or so because it takes a month or so to sort of finish up all your data collection. But we’d look at all the elements of performance for the business and identify gaps compared to goals, look where we spent the money, understanding if its having the right impact, and if not, in our case we would start to build the budgets for next year around the May, June timeline. So we had two or three months to go back and address those gaps. If company A was spending too much here and they overshot the target, maybe you’d tell them to back off and deploy some of that capital over to company B. One of the companies by way of example, a couple of months ago we saw one of the companies reliability hadn’t been keeping up with the two top ones and it was because they weren’t in the last three or four years deploying as much money in a specific area of capital improvements. Again these are public companies so I won’t comment specifically but as a result in the assessment we did this year that fed into their inclusion in their capital long range plan for a significant amount of money to install a bunch more of equipment to improve that area of reliability over the next two years specifically, but it’s part of their five year plan. That’s, that’s how I operated and I went from the operations to that more staff or board room type role and to be honest with you, I’ve been there, I’ve done that, I’ve done a good job, I’ve been recognized for it. I really would like to return to a business where closer to leading the operations, closer to our customer base. Does that answer your question sir?
Commissioner Griffith stated yes, and if someone wants to extend that feel free to do so.
Commissioner Holcomb stated the, one of the things that I, you know is tough for me coming from the private sector and sitting up here and trying to evaluate how we focus our vision and what our goals are. You know there’s a difference between our shareholders which are ratepayers, they define success I guess because we put it out there every month is how low
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): can you keep my rate. What I, in business I look at return on investment, you know that’s for me there’s, they’re two different completely results. But the one thing that both businesses need is investment and I look at this as a business. I love the fact that we’re exclusive from the City because, but the City, the ratepayer does own this. So as me as a ratepayer or participant in ownership, if I’m going to own something I want it to be really good and I want it to run like a business, I want it to perform like a business, and I want it to provide the best service and best, you know, return. Now one of those things that we do here, again they, they promote this low rate so you have a culture of success is a low rate, but there are the conversations of hey, my power’s out quite a bit on beachside, you know the issues that we do have. So how do you balance that, how do you, how do you manage the, if the end result of the customer or the ownership is a low rate, how do you communicate to them investment and running it like a business basis, just self-serving, low rate to the consumers. So how do you define those two or separate the two?
Mr. Bunch stated interesting, interesting question and I think there’s a general approach that I would talk about with the Commission. So I mentioned some of the companies I’m with being in the top 10% of industry performance for electric reliability and I think last year the top company of those had less than .7 interruptions per year per customer which is an industry metric called SAIFE. That is, that’s a top level performance, it took a good bit of investment to get there. Now I had this conversation with one of the Commissioners as well yesterday, what are the local community’s needs and expectations? The areas I operate, and we have rural areas, so the house I lived in previously my neighbor was a 230 acre farm, on the other side was a tree farm. They had very differing expectations than a business customer downtown D.C. So what are the general community needs and expectations for reliability, and that’s just one thing, but let’s say there was a gap, let’s say wherever you are today in those areas isn’t where we think we should be or where they’d like to be. Let’s challenge the team to put together a plan for improvement, and as I mentioned in my current role, I spend a significant amount of time there on the electric performance side of our business. That’s going to cost money with a potential impact on rates and is there an appetite to go there. If not completely there, is there a middle ground that would get us to a level that is both improvement and also in align with our customers’ needs. And I think that’s an area where day one, just based on the discussion and I had and the prior questions, you know I, that would be a sweet spot to work with the leadership team on working through.
Mr. Bunch continued, but again, I’ve looked at the financials, there’s a good solid plan of a lot of things that the Commission wants to do in the next ten years, five years, and good building blocks to work off of. And what I would do again is have that discussion about where are we, where do we want to be, and all the elements of our business, not just electric reliability, but water as well, and then validate that long term plans either get us there or we need a shift. And part of that’s the rates, and you know I’ve looked at your financials, electric’s about 69%, 71% of your revenue, same you know that you give back to the City in that reimbursement, I guess it’s $2.6 or $3.5 million, comes from the electric side of the business, the balance from water. I would that’s, I would view that as the shareholder returns to the City but again in this case it’s, it’s a little different in that unless I’m told my role wouldn’t be
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): to maximize that because that would be well let’s charge people more, for what reason. Well we don’t have a shareholder or Wall Street, we have a City that we’re providing money back to based on how much we’ve invested and how much it costs to run the business. So I would, my bent would be focusing on accomplishing the mission and the targets, developing the financial plan that’s required to support that, and if at the end of the day that required more money to be spent, then working with the team to figure out what the implications of rates would be and the Commission to get alignment on where we think we should head with that.
Commissioner Holcomb stated that, I mean it answers it. For me it’s an awkward, you know, because you have to it seems, and I’ve been here for three years so I don’t pretend to know a whole lot but it’s, we kind, you know we set the expectation of success as a rate versus as a, all the standards you just explained. Now I’m a citizen I don’t necessarily know that I really care about all those things you just explained, I just want that best rate. So we have to communicate that to them without the, the investment, we’re looking at a $100 plus million investment over the next ten years. If you’ve looked at our books we don’t have $100 plus million sitting on the books. We sure as, we don’t have $100 plus million in our revenue projections, so how do we pull that all together, and that’s kind of you know well where do we go because there are, there is going to be some pain felt, there’s going to be some investment to achieve that. You’re not just going, we’re not just going to continue status quo and achieve that plan, so how are we going to get there. I mean that’s the, the buy-in, because again we’ve created a culture where we just hang our hat on low rates.
Mr. Bunch stated a couple of potential ways you can achieve that and I’ve seen how it’s been done all over the country in different ways in the public sector but sometimes I’ve seen rate trackers get added based on approval of a modernization plan. And again this, we talked about assessing, identifying gaps, developing a plan of improvement, how do we get there, and about how much is it. What I’ve seen done elsewhere is companies package that to say okay we think over the next five years we need to spend x million dollars to achieve this outcome. We could, whatever you call it, electric grid modernization, reliability, improvement plan, I don’t know what acronym you want to attach to it but something that when explained to the community in a public setting is going to make sense to them. It can be, it can be dealt with in rates one of two ways, if it’s approved in principle going forward adjustments to the rates could be made as two things happen. As the money gets spent and the improvements begin to be realized incrementally or as a backward looking at the end of this x year period we’re going to assess rates on what we’ve spent. Now you just said we don’t have $100 million cash sitting on the books ready to spend, so I think we have to think about a former approach, that is if we come up with a reliability improvement plan, how much is it going to take, how do you package it, what is the impact on rates, and then as a Commission discuss the rate alternatives that would accomplish that. You may want to think about the tracker that I mentioned that as you spend the money annually you ratchet rates incrementally that keeps the Commission whole, able to pay off the debt balance sheet, and precludes you from having to borrow additional money for means that you wouldn’t normally do. That kind of, just my off the cuff question, I don’t know, to say…
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Holcomb stated no, and it’s, I get where you’re going with it, it’s again it’s just we’re at the, basically the doorway to this plan and there’s going to take a, you know somebody to navigate through it financially and obviously by what’s the most important. Like you spoke to that in your evaluation process of identifying which is first to attack, so I get that.
Mr. Bunch stated I think the same holds true for the water side of the business, in fact probably more important because it’s a long, you know your capacity adequacy is a longer term issue there in most cases. You can build substations pretty quickly if you have transmission system ties available but things like water treatment plants, that’s a little bit of a longer term proposition and I think you know what is that strategic plan, what’s the timing of the need of the spend, and what is the relationship to our spend and the rates. So I would task the CFO and that organization to work with the engineering side of the house to put together the what ifs scenarios. I always like to use the term guard rails, if these are the extremes, the high end and the low end of the spend, what are the results and the financial resources required to get us there and the employees if necessary. And where do we want to land, it’s not always on one end or the other, sometimes it’s in between because of what we can afford or our customers want to support, and then we can work through what the implications would be. I would, the rate implications, I would spend, I would challenge the team to spend more time forward looking than backwards. What do we have to charge today based on current money we’ve spent to date, and hopefully you know the current rates are there, I know there’s a lot of pride in having low rates relative to the folks around us and competitive with other municipalities. So I’d be sensitive to that as well, but I actually like the fact that the Commissioners built the business people. I think the questions you’re asking are based on your experience in starting, leading, running businesses, either with your own money or whatever you had to start it. I would treat my role as a business owner. I think I mentioned yesterday to some of the Commissioners and I’m pretty frugal, I’m not going to waste my own money and I wouldn’t be spending the Commission and ratepayers’ money frivolously either.
Commissioner Holcomb stated thank you.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated yes, thanks, Mr. Bunch good seeing you again. Tell me how you would make sure, ensure that this Commission or our Utilities Commission kept a good working relationship with the City, i.e., the City Manager, the Mayor. Can you keep this rapport, a lot of communication back and forth. What would you do specifically for that, to ensure that.
Mr. Bunch stated I view my role as CEO is to be the chief ambassador to the outside world. As I mentioned in that first 60 or 90 days, Commissioner Davenport, I’d like to meet with some of the key folks in the City, the City Manager, start to build and establish that relationship but like any other stakeholder periodic communications on things that are important to the business and them, are things that I would try to make part of my schedule.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
I think as a CEO I’ve got to set aside a portion of my time personally to stakeholders, including the Commission and the City, but, and that’s to seek input, to provide feedback and update on issues that are key to the business. Whether you know it’s the meeting with the City to talk about our ongoing relationship, but I would just schedule periodic meetings. I don’t know if it’s a couple times of year, whatever that frequency would need or end up being but maybe early on it’s more frequent than later but because we’ve got that relationship with the City and you know we’re linked at the hip. I would just look at them as a key stakeholder and set up ongoing communications with the City Manager and other key folks if necessary. In my prior role I met with the Mayor of Baltimore City, I had a good working relationship with the President of the City Council, numbers of department heads there and as I mentioned earlier my successors have maintained them where they were positive and where they weren’t positive those people left because they were asked to leave or were not elected. But I would just make that part of my external relationship building and maintaining.
Commissioner Davenport stated what factors will most influence you to accept this position. What factors are important to you to accept the position if it’s offered?
Mr. Bunch stated I think, think first and foremost we both have to feel it’s a good fit and that’s why you’re asking the questions today. I’m, I’ve grown to observe that I think the area has a good feel to it, the culture is one where the Commission wants to make a difference in the community and people want to do the right thing, and that’s the kind of work environment I like being in. In terms of influencing me, if the offer’s made my way, I don’t know who, normally in a hiring situation there is a person, considered your primary point of contact, and sometimes there’s some final questions that need to be asked but I don’t, I don’t know that I can answer that question fully unless somebody was to say Mr. Bunch would you take this position and here are all the terms and conditions under which we’d like to offer it. You’re business people, I think you would understand that component of it, but the thing I would just, you know, kind of fly that point is just to let you know that I would bring really good industry, great work ethics to the role, and I do a really good job of working with employees to develop and move the culture forward to where we’d like to take the business. I’d like to know that that’s what the Commission wants from me. I think the worse fit would be you’re listening to me, you’re hearing me out, you hire me and then day one as I start to talk about where I would like to take the business you say what are you thinking about? Why would you, what would make you think that we would be even interested. And I think just kind of general alignment on, you know we’ve been through the conversation, offering the role, going forward these are some areas we’d like to talk to you about once you’re on board; that’s just some general feedback that I have. Thinks like salary, benefits, you know I don’t think we need to be talking about in public setting, but those are things we can discuss with…
Commissioner Davenport stated what would you specifically do like events, or where, the morale of the employees is excellent here. But what would you do to even help employees more with the employees starting to more engage, to get birthdays or Christmas parties. What would you do to bring the fun to the table if you will?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated I like to have fun at work, nothing worse than going someplace and spending more time with most of your family members and not enjoying it. That is not what I’m about, so things, you know planned events in the business, whether it’s a holiday celebration or somebody’s retiring or its service anniversaries, I’ve always liked to recognize service anniversaries. I can remember being at events where you have within a service center four people that had like a 25th anniversary within a couple weeks of each other. You know that’s good cause for sort of an impromptu, the manager to do a cake or a lunch, something that brings folks together. Recognizing significant contributions, somebody or a group made, this group, this area has been working on our reliability improvement plan and they got, they finished the project on time, they spent the money per budget. Let’s have a lunch, let’s do something to celebrate it, those aren’t expensive things to do. And I was talking to one of the Commissioners yesterday people don’t, people don’t fire the company, they typically leave because they’re disgruntled with either the person they work for, the people they work with, the environment. And a big part of that can be how do I, how valued do I feel coming to work, and making sure we’re recognizing people. Whether it’s for their contributions, tenure, or you know things like that, and holiday celebrations throughout the year that would make sense. We’ve done cook outs, all kinds of things, service center field guys love to do barbecues. My prior role, it would be usual for around this time of year either do it themselves or have a caterer come in, do an afternoon lunch kind of at the end of the day. Not spending a ton of money, not taking a big part out of the business, but it gives them a little break from the routine and builds camaraderie.
Commissioner Davenport stated thank you.
Commissioner Britz-Parker stated can I ask another…
Chairman Biedenbach simultaneously stated Commissioner Griffith did you have another?
Commissioner Griffith stated no, I’m good.
Chairman Biedenbach stated sorry Commissioner Britz-Parker.
Commissioner Britz-Parker stated that’s okay. Then stated to Mr. Bunch, I asked you this question yesterday but I’m going to ask it again just for the benefit of anyone who might be listening, why us? You know you’ve been with the same company for I think you said for all intents and purposes, the same company for 28 years?
Mr. Bunch stated 30 years.
Commissioner Britz-Parker stated okay, so this is a big change to a smaller venue so to speak, and you know, why us, why New Smyrna Beach, why now?
Mr. Bunch stated yes, we did discuss this briefly yesterday, so I’m at a point in my career where I’ve worked hard, saved hard, started at work with the company I’m with at a pretty
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): young age. I can technically leave there, retire, and move on to other things and I’m interested in this area because I want to work in this area. I could be sending my resume to FPL or Duke, I don’t want to at this point in my career go to work for another big company like the one I work for. I like this whole central, northeast Florida coast culture. I think I told you, my dad’s family is from Jacksonville, the Amelia Island area. I’ve lived in this area for a long time, and it’s where I came as a kid in the summers. Still have a lot of family here and vacation here, I have a house not far from here, it’s also in Palm Coast. My intentions several years ago were to establish long term roots in this area for the remaining days. And I am way too young to retire, I see a significant working period in front of me and I want to become part of an organization that’s closer to the customer and community for that time. And I think I can, I think I can bring a lot of things to the table for the community in terms of where we go in the future with the Commission and the services we provide.
Commissioner Britz-Parker stated thank you.
Commissioner Holcomb stated can I add on that, you mentioned that home is, or area of home, family, the pin I guess on the map right is Jacksonville, Amelia Island which is north of us. What would we, what would you say to alleviate my concern that you come here because that closer to home isn’t available. Say, say this opportunity became available in Amelia Island, this is where you want to come, it’s not a stop on the way to really where I want to be.
Mr. Bunch stated let me alleviate that so, I don’t want to work for any of the other big utilities that we just talked about. If I wanted to work in an area outside of here I would be approaching them specifically, I know executives in some of the other utility companies, some of them actually came from the company I work with. I don’t want to work in that area, this general vicinity is where I want to work. I had said that several times to several people and I’m interested in this Commission because I feel like you have a unique position with the community here that I can bring value to the business and our customers for. So look at my resume, I am not a hop, skip, and jump job hopper. I have had a significant number of external searches and companies come to me over the years and I haven’t pursued that because you know whether or not those days, maybe my son was in middle school and we didn’t want to disrupt his schedule and move him somewhere else or… I tend to be more of a homebody, stay in the general area kind of person and if I looked at a resume that had fifteen jobs in the last 30 years I would be really worried about the question you just asked. But I think my history and what I’m saying is different to alleviate that concern if it does exist. I’m not trying to add a CEO title to my role to go somewhere else as a CEO, let me be very clear about that.
Commissioner Holcomb stated okay.
Mr. Bunch stated if that’s, if that’s the concern of the Commission I’m, I am not talking to you for this role for that reason.
Commissioner Holcomb stated thank you, appreciate that, it does clear it up for me.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated Commissioner Davenport.
Commissioner Davenport stated yes, I asked you this question yesterday, I’d just like feedback on it again. What would you specifically do in the first 90 days if chosen for this position?
Mr. Bunch stated I mentioned earlier the three, like a, I call it a 360 degree assessment. I do that in every job I go in, I don’t take a different approach whether it’s a, you know fifteen person unit, let me be hypothetical, or a company like this. But I think it’s important to assess where we are today and that’s without bias. I think I mentioned earlier, you know the worse thing the Commission could do is have, hire somebody for the CEO role that comes in and said I looked at your plan, I know what you need, and this is where we’re going to go. I think that would be a prescription for disaster, if not a train wreck. So in that 60 to 90 day period I’m going to do an assessment of the business, looking at our business plan, what have we said we’re going to do, how are we performing towards getting there, what’s the financial situation look like. If you had a CFO on board, I’d be meeting with them pretty frequently to get a good understanding of the financial picture, making sure they and I have a good level of comfort with how we’re situated to accomplish the plan. I want to have a good assessment of the leadership team that I’m coming into. In my organization I meet monthly with my direct reports, I have one on ones. How are you doing, how’s your portion of the business doing, if we’ve got improvement needs in those areas I’m going to give them coaching and feedback. But you know assessing the leadership team to make sure we’re in good, good position to accomplish everything we want through that team, because they’re a critical part of it. You know at the end of the day the Commission and Mr. Bunch aren’t going to be the ones that get the work done, it’s going to be the organization and my leadership of that team to where we want to go. So I spoke to the business plan, the financials, the leadership team, and then the, the fourth leg of that stool which I mentioned briefly earlier, was understanding the culture. Because if we’re not where we want to be or need to be, that would be part of recasting the vision and those core values or behaviors that I spoke to earlier. But I see those as the four big components internally and then the other thing that I mentioned, getting to know the Commissioners better, doing one on ones with you individually to make sure I understand your perspective of our business, how we’re doing, where you think we need to be, and probably more importantly to you is what role do you want to play, you know historically versus going forward in helping move the Commission forward. And then lastly establishing the relationship with some of those external stakeholders. So part of it’s internal, I’m going to say probably 80%, and then 20% of it is probably external between Commission and external stakeholder relationships. But I think I that period, whether it’s 60 or 90 days, as the new CEO I’d have a good feel for where we are and then be in a position to talk about where to go in the future. But as I was joking about earlier, you know I think the train wreck example would be for me not to do something like that and just assume coming in day one that Mr. Bunch knows where the business, Commission needs to go and the board membership, and that, that would not be a good recipe for success. I’m very deliberate, I’m a practical leader, I am not somebody that sits in the corner and looks out the window and not interacting with employees, you know I’m very out and about. And I think I mentioned those skip level
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): meetings are part of assessing both the culture and the leadership team as well. So having a good deal of interaction with the employee base to learn what they’re about and what their concerns are because they’re a big, big stakeholder in the process.
Commissioner Davenport stated thank you.
Chairman Biedenbach stated Commissioner Griffith.
Commissioner Griffith stated just one more.
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated Mr. Bunch, yesterday we talked about the importance of getting together, started yesterday with the process, and then of course here for today, and we kind of described it collectively together as a match, trying to make a good match. And it sounds like earlier with respect to there’s been some good answers, so if you’re feeling comfortable with the match from your perspective, that’s important for us. And assuming it does come together, then what would be important to you with respect to with transition team, or transition process?
Mr. Bunch stated I appreciate you asking that, I think that’s from my seat that is something to consider. In terms of a transition team I believe, I can’t remember which Commissioner but somebody said Mr. Mitchum would be on for some period of time, maybe through the end of the year. I’d like to work out a transition timeline, if there’s an opportunity to have overlap where we can work together, I’d love that. I think we’ve all probably walked into roles before where somebody left abruptly and you’re trying to pick up the pieces. I’d rather not be there. I’d like to work out a transition timeline that could work for both of us so, so I’m flexible. I guess that’s what I’m saying. Somebody asked the question yesterday, I think it was Commissioner Davenport, and I, just based on that I don’t think I answered this too well, I said just based on my understanding of the end of the year being Mr. Mitchum’s desired departure, I said well maybe mid-to-late fall. I don’t know, so the October, November time frame, I could do that. November would be great, it would give us a period of a couple months of overlap. Whether or not you’re here full time Mr. Mitchum I don’t know but we could, I don’t think we need more than 60 days we’re working in some sort of partnership timeline. I think at that point we’d probably get in each other’s way, but I’m flexible.
Commissioner Davenport stated I think I answered that for Mr. Mitchum yesterday, sure, he’ll do it.
Mr. Mitchum commented I’ve got a lot of fishing to do, but I can wait.
Mr. Bunch stated I can appreciate that. Does that answer your question Commissioner Griffith?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Commissioner Griffith stated yes, it does, that’s…
Mr. Bunch reiterated I’m flexible, I answered the question similarly yesterday but I don’t, Commissioner Davenport, don’t want you to think that was a hard and fast timeline. I’ve got some flexibility maybe that others don’t. It is known, because of the freedom of information act and the press release that was put out last week, it’s known by my current company’s leadership that I’m having this discussion with you as well.
Commissioner Griffith stated thank you Mr. Chairman.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated one question.
Mr. Bunch stated yes sir.
Chairman Biedenbach stated if we were to offer you the job and you were to accept, how long is it going to take you to get down here.
Mr. Bunch stated I think it’s back to the transition, I’m willing to sit down and talk about that timeline but I’ve got the ability to jump back and forth during the time between now and when I’m here permanently as well periodically. I’ve got vacation time, it wouldn’t be hard for me, I’m used to travel so the thought of getting up o’dark thirty like I did yesterday, running to the airport and coming down here, whether it’s for a day or a couple of days or a week if necessary, I could work through that. But whether it’s you know discussions with Mr. Mitchum or the Commission, once that decision’s made we could talk about that, as I mentioned I’m flexible. Obviously at that point in time when my current company knows that I’ve accepted a role, I dare say their lens would be a little different on me at that point in time. They would probably be expecting that. No, I say that in jest because of the excellent reputation, revised to relationship with my current company, I’ve enjoyed working with them tremendously over the years. So there’s a good relationship there, it would not be leaving with hard feelings or burning bridges.
Chairman Biedenbach stated you need a month for up there, a couple of weeks, a month?
Mr. Bunch stated maybe I didn’t answer the question well but I guess it’s, I sort of saw it more based on what’s that transition timeline. If whatever that works out to be, is it November 1, is it October 1, I’ve got some flexibility here.
Chairman Biedenbach stated okay, all right.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated but if you need time prior to that, I can work out days or a week if necessary to fly down.
Commissioner Holcomb stated right.
Chairman Biedenbach stated you’re flexible.
Mr. Bunch stated right.
Chairman Biedenbach stated okay, all right.
Mr. Bunch reiterated I have some flexibility.
Chairman Biedenbach stated Commissioner Davenport do you have any more questions?
Commissioner Davenport stated no sir.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb indicated no.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated no.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated I’m good.
Chairman Biedenbach stated Mr. Bunch, thank you very much for coming, thank you for interviewing with us, we appreciate it very much, best of luck to you sir, and we’re going to let you go.
Mr. Bunch stated thank you, could I make a quick closing comment.
Chairman Biedenbach stated yes, I’m sorry, I, not thinking, do you have anything to say to us.
Mr. Bunch stated I thoroughly enjoyed meeting everybody, the time I spent with you, with the Commissioners yesterday. I had a conversation with my wife last night, let her know that I had felt like the conversations went really well and I struck a good cord in establishing rapport with the Commissioners. And as I mentioned earlier, I would be coming to this with the approach of like a business owner so I appreciate the fact that the Commission is constructive with people that are business owners, folks that started businesses, and I think that’ll, if I was CEO, help us establish a relationship where you’re challenging us to move the
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): business forward, the participants in that process. And the question Commissioner Holcomb asked about how do I have comfort with this area or that area of the business, my role would be as CEO to make sure that I’m translating, whether it’s water or electric, technically how we’re going to do, what plan we’re going to build and execute to take the business to the next level. So I would see that as a key part of my role as your CEO and I would look forward to establishing a relationship with the Commissioners as a positive team and participants in that process. Very, as if I didn’t say it earlier, I’ll repeat myself, I’m very interested in this Commission, very interested in this area, and the reason we’re having a conversation today is because of that. I’ve worked with very big companies at this point and juncture in my career, I’m interested in getting closer to the community but closer to the operations and I think this Commission provides this potentially a unique fit to bring those together. Not in a desperate situation, got a very good role with the company I’m currently in, I’ve been with for a long time, and you shouldn’t have any concern that Mr. Bunch is going to jump ship a year down the line because he’s got a CEO title and he’s really using us as a mechanism to job shop for something bigger and better elsewhere. I’ve been in that environment, I appreciate it for what it is and at this point in time I’m looking to go in a little bit of a different direction that I think collectively we can go as a team if I’m selected for the role. So thank you for your time, I really enjoyed it.
Commissioners Britz-Parker stated thank you.
Commissioner Griffith stated thank you, well said.
Chairman Biedenbach stated whoa, wait a minute, Commissioner Davenport wants to redirect.
Commissioner Davenport stated I’m sitting here listening to you, thank you. Would you consider yourself a visionary for where we’re going? Do you consider yourself a visionary?
Mr. Bunch stated I have, that’s a strong term, I don’t consider myself a visionary but I have always spent a lot of my time looking forward. My mind naturally thinks where do we need to go and why. From the time I was a kid my father beat into my head, is not the right term but fused into my mind, was if you’re not part of the solution you’re part of the problem. And this was a guy who grew up in manufacturing and you know if at the end of the day he wasn’t running things right, production costs millions of dollars. But from the time I was a kid that was part of my mindset, my thought process, and I have, I spend, I always spend a considerable amount of my time running the business looking at where do we need to go to address our gaps and where do we want to go in the future. So if that’s makes me a visionary then maybe yes, but I tend to think of that more of being forward looking in the way I run a business. Yes, we’ve got to deal with the day to day problems, that’s important but as a senior leader of an organization, for me I think it’s more important about where do we want to go and how are we doing in our path to get there. Make the short course corrections occur along the way, that’s just, that’s the way my brain works, that’s not read out of a textbook or a book, that’s just the way Mr. Bunch thinks.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Commissioner Davenport stated thank you, very good.
Mr. Bunch stated thank you.
Chairman Biedenbach stated anybody else on redirect or are we okay?
Commissioner Griffith stated we’re good.
Chairman Biedenbach stated thank you very much again, I think, now we’re done.
Commissioners simultaneously stated thank you.
Chairman Biedenbach stated okay, do you want to take a quick adjournment, well not adjournment but recess, recess for a few minutes until we figure out what we’re going to do.
Commissioners indicated yes.
Chairman Biedenbach recessed the meeting again at 11:15 a.m.
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach reconvened the Special Meeting at 11:25 a.m. by stating okay, we’re back in session.
Commissioner Holcomb indicated Commissioner Davenport was over on the side.
Chairman Biedenbach stated oh, we’ll wait for Commissioner Davenport to come back, was getting a bottle of water. Thank you, I didn’t, you were blocking my view Commissioner Holcomb.
Commissioner Holcomb jokingly commented oh yes, don’t blame my big head.
Chairman Biedenbach stated to Commissioner Davenport no problem. Okay we’re back in session, deal is we have to make a decision on these two gentlemen. Does anybody want to start and lead off on their discussion, Commissioner Griffith?
Commissioner Griffith stated well I think, just take a quick maybe poll as to kind of where people are, still, as a data point versus where we were this morning. And then decide, what that provides us to make a decision and make a motion or whatever we need to do to take an action.
Chairman Biedenbach stated you want to take a poll and not discuss what we think as their strong points, weak points are first, and then take the poll. I’m just asking for clarification so I know what…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated I could go either way, I mean we can discuss first, that’d be fine.
Chairman Biedenbach stated okay, Commissioner Britz-Parker do you want to put some input?
Commissioner Britz-Parker stated, you know, I’m for, I think that maybe each of us could just go through and say if we have a first choice, each person discuss where they’re at.
Commissioner Griffith stated sure.
Commissioner Britz-Parker continued, if they have a first choice, why, and then we really know where we’re at in terms of you know maybe, maybe we might have a unanimous decision at this point, I don’t even know.
Chairman Biedenbach stated okay, Commissioner Holcomb do you have some input one way or the other?
Commissioner Holcomb stated it really comes to, do we want, do we want to write it down, read it, or do we want to individually go because again you’re starting with, you know, after you listen to three of us talk do you, you know…
Chairman Biedenbach interjected, do you change your mind.
Commissioner Holcomb stated right, I just, I think without that, you know I would hate to be, I like straw polls, you put it out there and then you take it and then you see what the results are. If we need dialogue after that, because if it’s…
Commissioner Griffith stated right.
Commissioner Holcomb continued if it’s unanimous or whatever it is, then great, we made the right decision. We’ve had seven, eight hours of conversation, reviewed videos, studied resumes, you know, I was up to 1:30 last night. We had, you know, we had people in our interviews with us to help us, I mean I think we’ve done our homework; so let’s just take a straw poll.
Chairman Biedenbach stated you want to do a straw poll and see what if it, see what the numbers are.
Commissioner Holcomb stated right, yes.
Chairman Biedenbach stated everybody shaking their heads.
Commissioner Britz-Parker stated that fine.
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Commissioner Holcomb stated straw poll?
Mrs. Fisher then indicated, was motioning for Commissioners to speak into the microphones.
Commissioner Holcomb stated okay, I need pictures.
After distributing additional paper and Commissioners voting, Mrs. Pitcher collected the ballots and stated we have a three to two verdict.
Chairman Biedenbach stated tell us who the three are.
Mrs. Pitcher stated we have three for Joe Bunch.
Chairman Biedenbach stated three for Joe Bunch, okay, and two for Reggie Bowlin.
Commissioner Holcomb stated do you want to, you, what I, let’s have dialogue.
Chairman Biedenbach stated I was going to say, now at this point I think we need to talk, and why don’t we start, just, we’ll just go right straight across unless anybody has any… Commissioner Griffith, go ahead.
Commissioner Griffith stated I think the process was well done, I would imagine it might have even been a change the three and the two may be different. But I think that we had two great candidates, it could be okay with either one but I do feel that Mr. Bunch was a better fit, for what we need and what he can bring to the party and help the U.C. go to the next level.
Chairman Biedenbach stated okay, anything else?
Commissioner Griffith stated no, that’s it.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated I also agree with what Commissioner Griffith said, that we had two good candidates, either one of them would do a good job. My personal first choice was also Mr. Bunch, he was my first choice all the way down the line. From the time that I reviewed resumes to the time that we looked at their videoed answers to questions, he has consistently remained my first choice. I think that perhaps in the meeting today in some ways he wasn’t as I don’t know, he wasn’t as folksy as Mr. Bowlin, and I’m going to use that kind of as an explanation. I think that Mr. Bunch was more of sophisticated and a, but the thing that I really like, really like about him is that he is coming from a true business environment versus coming from a governmental environment. Not to say that everything is done wrong in government and that you know, it’s just that I like that piece of it. Because I think that he, I think that that will be a different kind of fresh look, I think that, I think that he will challenge everyone. I think that we will all be challenged to be excellent. And it’s not necessarily the
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): easiest choice but it’s pretty much how I have lived my life, that I was always striving for excellence and I think that he’s on that same road. So he’s my first choice and that’s why.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated well let me just clarify, I’m, I’m the one that changed. So when you look at the resume, Mr. Bunch hands down wins you know the resume, both are qualified. My only concern when I listen to them both talk is that you’ve got, it’s a fit, you’ve got to fit your people. And you know what I like about Mr. Bunch is that Mr. Bunch has gone up and he’s basically above the board room now and all the Mr. Mitchum’s go to him. And my concern is coming out of that hemisphere back down into you know the ground floor. I think if you’re going to change here, and again that level of where you’ve been the last five to seven years is important to implement that. I think they both had great ideas, and again like I said I changed, I was, I was, my first pick I was with you. There was, you know I liked two people, he was one of mine too. So I don’t, that’s my concern, that’s what flipped me was understanding that basically seven CEO’s or roughly, whatever the numbers, that’s where he, that’s what he’s been working with for the last you know what four years or whatever it was, five years. So you know I agree, you know I mean when you talk about pulling the flaps, he’s coming out of a 747 and then we’re coming down to a King Air, that’s how much we’re backing him down. You, the questions, I don’t know if I’m going to get bored with it or I don’t know if it moves fast enough to me until I actually try it out. You know I just don’t know that, I can’t make that determination if I haven’t participated, how could I, how would I know that I got bored. That question was asked, so you guys’ questions flipped me. So, like I said the great news here is for me I feel very confident with both. Those are my concerns, I’m going to put them out there, my votes what it is right now, but I’d like to hear it from the rest of you.
Chairman Biedenbach stated Commissioner Davenport.
Commissioner Davenport stated thank you Mr. Chairman. Well this is really a difficult decision but as we all know here they’re both qualified, excellent candidates. I’m going to go with what Commissioner Britz-Parker said, I’m with the Mr. Bunch, Joe Bunch. And the reason I’m with him is I feel that he, he’s coming from the private sector and he’s been in business. And moving forward and where we’re going, we need to start thinking differently where we have somebody that’s come from not the governmental side but the business side in my opinion and he’s got that. Like you said Commissioner Holcomb, his resume, hands down, his you know electrical engineering degree, 70% of our revenue, 75% is electrically. He’s got the talent, we got the water, backing him up, great people, and it’s just hard, it really is hard, and I like Mr. Bowlin, like you said folksy and he can communicate. But well this is difficult one but I’m going to have to go with Mr. Bunch because of what I’ve just said the need, positive outside of the governmental and his resume.
Commissioner Holcomb asked Chairman Biedenbach, well, who are you going for?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated all right.
Commissioner Davenport stated thank you.
Chairman Biedenbach stated I agree we could flip a coin and the talent, either or, which is good for us. And thank you to the head hunter for bringing us two people that, flip a coin. I like the fact that Mr. Bowlin was down on the beach last night and figured out that there’s some rift between us and what’s going on in the City and the population growth and the explosion or whatever you want to call it, that turned me to Mr. Bowlin. Mr. Bowlin has been my first pick for a while but that cemented it when it was said. All right at this point I think everybody’s explained for those of you who wanted Mr. Bowlin, or for those of you who wanted Mr. Bunch, if you want to put it up there and we’ll have a vote. Mrs. Pitcher, is this where we are, we say we want this guy and work it out.
Commissioner Holcomb stated yes.
Commissioner Britz-Parker stated and we take a vote and then…
Chairman Biedenbach stated okay.
Commissioner Holcomb stated can I just have a, because again…
Chairman Biedenbach stated go ahead.
Commissioner Holcomb stated it’s, if we do a vote, it’s fine, it’s going to pass, we know that. Tell me, I just want to have your thoughts on my concerns and again, it’s a very minimal. The first vote I voted for Mr. Bunch, okay. The only reason that I switched was, make me understand, because in my industry when people get elevated, you know on your way up you’re aligned, you’re running up through there, and then when I try to bring them back. When a guy comes in and says hey, I was a General Manager here and I did this and that and I ran and I did all these things and I try to put him back down into a say a sales manager’s role at two levels down or a level down. There’s that, some do okay with it and some just that, that moving backwards for them just doesn’t work, and that’s, that’s my only concern. Like I said, from the resume, from the experience, from the private sector, from the public sector, he’s got all that, he checked every box on it. The only thing that changed me was the explanation of how he operates now and who actually reports to him, you know that’s my only concern. So I would like to hear you guys’ thoughts on that that like Mr. Bunch.
Commissioner Griffith stated yes, let me try to take that one because I really enjoyed talking with Mr. Bunch yesterday and his response today and felt he was a better fit for us. And here’s where I’m coming from, he’s an operator, he’s an operator kind of guy, he’s a business guy. And echelon put him into another role, a staff role, an assessment role. So he’d been doing assessments with the six utilities companies over the last several years. He wants back in operations, he told me that yesterday.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated okay.
Commissioner Griffith stated and that made me feel good because you wondered would someone want to come here and have it be a launch point to go somewhere else. And he said no, I want to get back in operations and I want to come back to Florida. So…
Commissioner Holcomb stated and like I said, I didn’t hear that, that wasn’t, that was not expressed in my case.
Commissioner Griffith stated no, right, I got into that with him a little bit yesterday and then that’s why I asked him again today about operations you know versus staff. And he reassured me that he really wants to get back into the operations side which is running his own show and making it happen and obviously providing the leadership and the direction and make a commitment here. I felt that stronger today than I did yesterday.
Commissioner Holcomb stated okay. Commissioner Britz-Parker I’d like to hear your thoughts.
Commissioner Britz-Parker stated the same thing that Commissioner Griffith said, because I had that conversation with him yesterday also. My gut really is that he, because he was coming from the private sector in a company that was publicly traded, I think that he is better with the numbers, I think that he’s a better financial guy. I think that he will be able to pretty quickly make a determination if our new CFO, our new Finance Director, he’s going to be able to determine pretty quickly if they’re worth their salt and he’s going to hold them to the fire and know how to do that, and I think that’s a real big part of it. You know and I think, I mean I think he’s been living on an airplane.
Commissioner Griffith stated yes, that’s right.
Commissioner Britz-Parker stated and, you know, I can relate to that because my husband was on an airplane and you know you do it because here’s your opportunity and it’s really hard to turn down an opportunity like that, but certainly you get to a point where you’re like I don’t really want to do this anymore. So, I, he convinced me that he’s real serious about this, he’s not, I mean neither of them, they’re 28 and 31 years with the same company.
Commissioner Holcomb stated right.
Commissioner Britz-Parker stated okay, they’re not going to be jumping ship, I just don’t think that that’s their personalities at all. And my gut is that Mr. Bunch would be here for a long time, and you know I don’t think he’s necessarily the easier pick. You know I think in some respects the transition might be a little bit more difficult for everybody with him because he’s not coming from a government environment. So that’s going to be different, but I’m up for that, you know, I just think that he’s going to challenge us, he’s going to challenge
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): us, he’s going to challenge everybody. And you know I’m ready, it’s just a, the search for excellence and I think that that’s kind of inherent in the kind of guy he is, so.
Commissioner Holcomb stated and I like I said, the qualifications for me are, it’s not that, I just, get, you know I use my own experiences in trying to come back from the, the top. And again, last night when I was sitting there, you know I just kept coming back to you know he’s just the most qualified. Like I said I was up until 1:30, I kept going, bounce back and forth, back and forth, back and forth. And you’re right, one had more personality, more of a better aura in the room that he carried, but the one thing that I just kept coming back to last night, the other guy’s clearly, his experience, he definitely has that. So you know we had just taken the vote at 1:30 last night we’d have been good.
Chairman Biedenbach stated Commissioner Davenport do you want to put your two cents in since you were in Mr. Bunch’s corner.
Commissioner Davenport stated yes, I’ll follow up on what Commissioner Britz-Parker said and Commissioner Griffith said as far as his traveling. I asked him why he was leaving a business after 28 years and he said that when I took this role they told me it’d be like 25% of the time that he’d be in his work traveling. And he said it’s turned into 50% to 75%, and it’s a lot of traveling and he’s ready to, just like to find, like he said an organization that he can run and take it to another level. We’ve got some challenges ahead of us and this guy, he’s definitely qualified to help us get there, and he’s definitely qualified to challenge us, I can see that. But, and his, I know one showed, you know Mr. Bowlin had a little bit better aura if you will or communicated and as you said folksy but good, but still that’s Memphis, Tennessee versus you know Indianapolis, Maryland. But still he came across good and I think he’d be a real good fit. My biggest concern has been also a lot with the other, the financials, but the employee, how are the employees going to react to which one of these two people. So I’ve got a, I feel real good about him.
Commissioner Holcomb stated so that didn’t come up yesterday, just to give you a heads up, I had no idea the guy was flying at all, like I thought he lived in a place, he went to a new home, and that’s where he’s working just like Mr. Mitchum’s working. I pass him coming down the road, as Mr. Mitchum’s coming in, I’m going out. I had no idea that the guy was flying that much, that, I’ve hired more people, more good people trying to get off the road than I have probably, for that reason. You know people in our industry that have gone to work for a vendor and then they don’t just work in Orlando they go to, you know, they’ve got the southeast region and it’s a miserable process, dealing with airports and all the things. So I didn’t even know that existed. In the spirit of debate, you know like I said, that’s why I wanted to talk about it. You know I would move, and again I think it’s important that ever who we hire we do it unanimously, and I would move, you know, not knowing the few extra things from your own interviews, I would move over to Mr. Bunch. So that’s my two cents and then however you…
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Chairman Biedenbach stated let, let, as most of you know Rick Hawes was with me yesterday because I just didn’t feel comfortable being by myself. Mr. Hawes and I discussed this after we met last night and Mr. Hawes said to me that Mr. Bunch was well qualified, but it is going to be the rougher ride in the transition period than with anybody else. He, the way he’d run, and he said something about KPI or KP something or another which was a management style or whatever.
Commissioner Griffith stated key performance…
Commissioner Holcomb stated key performance index…
Chairman Biedenbach stated okay, and he said it’s going to come out and he’s going to run it by the numbers and he said it’s going to get done but that first year you better saddle up and be ready for a rough ride. He said but it’s, it’ll be all right at the end of the year no matter, either one of them, one or the other, he said it’d be all right but that year is going to be a little tougher transition. I am, anybody else or are we ready to take a vote?
Commissioner Griffith stated we’re ready.
Chairman Biedenbach stated I need a motion.
Commissioner Britz-Parker stated I make a motion that we offer the General Manager/CEO position to Joseph Bunch.
Commissioner Davenport stated I’ll second it.
Chairman Biedenbach stated it’s been regularly moved and seconded, any other discussion? Commissioner Holcomb I like your idea, I will. Mrs. Simmons please.
Commissioner Britz-Parker’s motion then passed unanimously on a roll call vote.
Chairman Biedenbach stated anything else for the good of the organization?
Commissioner Britz-Parker stated yes, we have to…
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated now we need to know the next step, how we’re moving forward.
Chairman Biedenbach stated Mrs. Pitcher, you’re up to bat, but while you’re walking up there. Mr. Cloud, do you have anything to say?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Cloud stated good job. I don’t know if you knew this but quite recently Toho Water Authority was in a search to pick a replacement for Brian Wheeler. Brian’s a very well respected CEO of the water and sewer utility that services Osceola County, the City of Kissimmee and Polk County. It had come down to two candidates, they had a three, two split, the advisors to them said well now that you’ve made the choice, let’s have a unanimous vote to get this off on the right foot; they refused to do it. And watching ya’ll do that to me says that as difficult or easy as it may prove to be, ya’ll are going to be in there helping. And I think that that’s, that’s great, that’s exactly what I hope would happen, that you would make the choice based on your concerns, not from any outsider influence, and I salute you on making what I think was a class act move at the end, to vote unanimously, I think it’s just going to make it that much easier.
Chairman Biedenbach stated well, we’ve got a couple people that are cycling, that might not be here next year for the rough ride. I hope both of them decide to come back with us – Commissioners Holcomb and Griffith. Mrs. Pitcher, you’re up.
Mr. Miner addressed the Commission and stated Mr. Chairman, Mrs. Pitcher has asked that I step up so I am. First of all congratulations on an incredibly well done process from your staff, and the other staff to the Commissioners, deliberations and your process; I applaud you. I see a lot of these and you did a really good job.
Chairman Biedenbach stated we’ll accept the congratulations, thank you sir.
Mr. Miner stated well it’s earned in my view, you asked great questions, the dialogue was great, I think you got to the essential issues. Now you’ve got an opportunity to make an offer and as I indicated I think in an earlier conversation with you we’re welcome, we’d be glad to help you with the process if you wish to run it through us you can do it directly, it’s really, it’s your pleasure. We would start, Mr. Cloud would be needed to draft an initial contract, that would be forwarded. Springsted | Waters works for you, for the Commission, so our duty is to you and our responsibility and ethical duty is to this Commission. So we would be glad to participate in that process, we have done that before, it’s entirely your choice as to whether or not you wish us to be involved at this point. I will say this and this is something to be mindful of, I was listening carefully to your comments and I think it was very positive what you did and I think it was very positive the way you handled what is a very sensitive issue, particularly having to do it in public, it’s not easy. But you have an offer, you haven’t yet received an acceptance, okay, so, and I’m not saying that you won’t and I’m optimistic. However, the reality is until it’s over, it’s not over, and so you may find it necessary, I hope not, but it may be necessary to go back and look again at your second choice candidate. So at any rate I just say that for what it’s worth, to be mindful of that. Beyond, that’s your choice, let us know if we can assist with this process further we’d love to help you if you want this, and I would be in touch with, through Mrs. Pitcher probably as prime contact or directly with Mr. Cloud, your choice.
Commissioner Holcomb stated here’s my question I guess.
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Chairman Biedenbach stated go ahead Commissioner Holcomb.
Commissioner Holcomb continued, is that, and this is the real awkward part because it’s like we’re playing poker but they get to hold their cards to their chest and we’ve got to lay ours out. You know being that the people that are applying for the job that we’re going to offer to. I have no idea what the, you know we went to the meeting last year up in Jacksonville and you know the wages is you’ve got to be competitive.
Mr. Miner stated sure.
Commissioner Holcomb stated we have to, I wouldn’t begin to know how to come up with that number, to validate it, and that’s you know I’ve listened to what Commissioner Davenport said. You know everybody talks about Volusia County and it’s a beautiful town, beautiful…, but it takes a contract to get you here, those are just perks. So I want to make sure that we’re competitively, our offer is defensible, that we can look at that person, and make sure it’s fair and substantiate the offer. So that’s what I want to make sure I understand better and I don’t know how to validate that.
Commissioner Britz-Parker stated I have the same question, is that I have no idea of what we’re going to be going in at in terms of salary, what’s going to be recommended. I mean I’m assuming that we would need to pay his moving expenses to come down here, that just makes perfect sense when, an executive position that that would be part of the deal. But I don’t know what number to start at, what I do know is that this is the most important position that we have within this organization and I don’t think that it’s the time to try to get a bargain. You know you get what you pay for, I just have, that just seems to be the way it is, you get what you pay for and so I think this is a really important position. Yes, we need to be mindful, yes, we need to be good stewards of our financial situation but hiring the right person to lead the charge can more than make up for any additional money it’s going to cost us to get him here. So, so I want us to be very mindful of that, and it’s like what Commissioner Holcomb said that you have recited Volusia County’s beautiful, New Smyrna’s beautiful, but that is not, that doesn’t, yes, it doesn’t make a mortgage payment and it doesn’t mean that we can like, we can put a big discount on it and get them here. You know, I mean, it just doesn’t work like that, because I’m confident the right guy is going to find efficiencies in other areas that is going to more pay for himself.
Mr. Miner stated let me just say, I won’t say which one, I think you probably all, each know this, if not some of you do, one or your candidates is actually, has had an offer made to them or someone has shown interest in them, one of your finalists. So you know I mean I appreciate the fact that you’re willing to move quickly, number one and number two. Your comments are well made I believe in the circumstance, it isn’t the time to be taking issue over what may also may prove to be a relatively small amount of money in the big picture.
Commissioner Britz-Parker and Commissioner Holcomb stated right.
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Mr. Miner continued, I’m respectful that it’s a utility that’s funded by ratepayers, however the return on investment that might be a relatively small amount of money or a differential could be very large. So I appreciate where you’re coming from. One option would be to authorize your Chairman perhaps or some member, if you have a committee, to authorize them to negotiate with him some deal, make it non-binding and bring it back. Once you get some increments, working with Mr. Cloud and perhaps your Chairman or whoever you appoint, all could bring it back and the Commission could look at that and debate it. It would need to be probably a special meeting, something you could do quickly to get this resolved. But that’s only a suggestion but it does, but it does give you the ability to free up someone on your you know Commission to have some ability to at least do some negotiation and discussion, but it would be subject to final approval. That way, you know, it would be a full vote of the full Commission to authorize whatever the final contract amount was, I mean having that ability and negotiate using the legal instrument prepared by your, your staff attorney would be appropriate if passed by all.
Chairman Biedenbach stated let me ask…
Mr. Miner simultaneously stated let me, let me add this. I’m sorry, I apologize, I did forget this one thing, among the services Springsted provides, and I perform these, we do pay and classifications so we do a lot of survey work. We are familiar with the, to a certain level we’re familiar with the Florida market. But we could probably for frankly a slight additional fee, it wouldn’t be much, we could probably get some idea of what public utilities are paying in terms of equivalent positions. To the degree that that information is out there we’ll be glad to get that for you to help you in the negotiation process and we can do that fairly promptly.
Commissioner Holcomb stated could you give us the private sector too because again I don’t want to get caught up in limiting myself to half the market.
Mr. Miner stated yes, you know what we can do, we do have access to data sources that help us with that. I will tell you that if we go to the private utilities, it’s unlikely they’re going to give us the answers but we do have access to private, some private data through subscription services that we have.
Mr. Cloud stated the PSC has it.
Mr. Miner stated pardon?
Mr. Cloud stated the Florida Public Service Commission has it.
Mr. Miner stated okay, well I…
Mr. Cloud stated on the investor-owned utilities, it’s usually a part of their rate case filings. The other data you can pretty easily get because they’re public entities. You know like JEA, CEO, OUC, KUA, Lakeland Electric, maybe some of the smaller ones that are closer in size
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): to you. But mostly what they look at are you know size of the customer base and the gross revenues in the system. Those are two big determinants in compensation. There’s, you know private sector is also paying them in stock options folks, that is not an option that you have.
Chairman Biedenbach stated can we create some stocks?
Mr. Cloud stated no.
Chairman Biedenbach I happen to know…
Mr. Cloud continued, that is strictly prohibited.
Chairman Biedenbach continued, I happen to know that Mr. Bunch is the guy that was offered because he told us that yesterday. He said that he had been offered and I think it was Baltimore Gas, I’m not sure who it was, but it was a different entity. And we questioned him on that and he said if I could have a decision or before, and I believe he told me, I’ll have to go back and look at my notes, but I think it was the 30th of July.
Mr. Miner stated that is correct…
Chairman Biedenbach stated okay, all right, so we need to do that. You’re looking for somebody, authorization for somebody to deal, to negotiate with this man for the salary. You’re going to give whoever it is a range that we can look at or do we talk about salary here or is that, we don’t talk about that here?
Mr. Miner stated well, you certainly may, my suggestion would be that you make it subject to final approval back here.
Chairman Biedenbach stated I got that part, I’m looking for the front part.
Mr. Miner continued so I think you can avoid, I think you can avoid the discussion currently, we’ll do the research. Mr. Cloud points out much of it’s on file, we can access anything we need to do, it’s not a lot of work, we can get that for you so whoever the contact can be negotiating from a position of knowledge. After that I think you start the process and you see where you end up in negotiations.
Commissioner Holcomb stated what’s the turnaround time on that, as far as that data?
Mr. Miner stated we can do our part…
Mrs. Pitcher stated we have it.
Commissioner Holcomb stated you do?
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Chairman Biedenbach stated you have it Mrs. Pitcher?
Commissioner Davenport stated she gave it to us.
Mrs. Pitcher stated I have the public sector, I don’t have the private sector, but I do have public.
Commissioner Davenport stated I’d like to say this, when I talked to Mr. Bunch yesterday, and I asked him do you have a (unintelligible) and he said Commissioner Davenport it’s not all about money. I said well and he said I know I’ll be making less, I said well tell me what you think. He said well the Orlando CEO was just hired and then you’re over here where you are, look at the difference, maybe come up with something between here and there. So that’s what my feedback was with him.
Chairman Biedenbach stated are we allowed to discuss at this point the salary numbers?
Commissioner Davenport stated I just wanted to share that.
Chairman Biedenbach stated okay, okay, Commissioner Davenport did he throw the number out for Orlando?
Commissioner Davenport stated no sir, he just told me between Orlando and here, where those two are, and that’s what I’d like to know because that’s what he said.
Chairman Biedenbach stated okay, we’re at a buck seventy right.
Mrs. Pitcher stated yes.
Chairman Biedenbach stated okay we’re at a buck seventy, what’s Orlando.
Commissioner Davenport stated Orlando’s CEO was just hired, and he said because he knows him and…
Commissioner Britz-Parker stated you’re talking about OUC?
Commissioner Davenport stated yes.
Mrs. Pitcher stated I would have to go get my…
Commissioner Davenport stated that would be interesting, I meant to…
Commissioner Britz-Parker stated how about, what I would like to see us do is I would like to see us appoint a member of this Commission to work with Mr. Cloud and Mrs. Pitcher to get
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): the information that we need to be able to get a contract to Mr. Bunch like quickly. You know, like I’m thinking within a couple of days, this shouldn’t…
Commissioner Davenport stated I recommend that that be you.
Chairman Biedenbach stated I was going to say, I’ve got to step back on this one because I’m trying to get on an airplane to go to Pittsburgh, right after the meeting Monday night, so I would prefer not to be the guy.
Commissioner Davenport stated I wish it’d be Commissioner Britz-Parker, I’m just speaking up here, you know the numbers, you know what we’re looking for…
Chairman Biedenbach commented that’s the wrong way to shake your head kid…
Commissioner Britz-Parker stated well I’m happy to do that, the only that I will say is that I, a week from today, I’m getting on a plane to go to Aruba and that’s happening no matter what. You know so as long as we can do this quickly, that’s fine, but it really does need to happen, and Mr. Cloud I don’t know your schedule.
Mr. Cloud stated well.
Commissioner Britz-Parker continued and then I guess we come up with an idea, we still have to come back to this body right?
Mr. Cloud stated whenever you want to meet is what my schedule is, that’s not a problem, I’m not going anywhere.
Commissioner Britz-Parker stated what are you showing?
Commissioner Holcomb stated I’m going to pass it out, it’s just the number.
Mrs. Pitcher stated OUC advertised their salary range.
Commissioner Britz-Parker stated thank you.
Commissioner Holcomb stated it’s in that Orlando Sentinel, so it’s not like it’s…
Mrs. Pitcher stated no, it’s public information.
Commissioner Holcomb stated right, so OUC must negotiate a contract with Bullock, the utility advertised a salary of $350,000 to $450,000 with customary benefits.
Commissioner Davenport stated how many customers?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated well, it’s Orlando.
Mrs. Pitcher stated they’re about triple our size, OUC?
Simultaneous comments made were: at least, they’re huge, four to five times our size.
Mr. Cloud stated it’s sort of the biggest municipal utility in Florida, JEA’s the only one bigger.
Chairman Biedenbach stated Mr. Bunch, if I remember reading his thing right, was at $265,000 plus some benefits or some bonuses which ran him close to $290,000 or $295,000 if you run the numbers, is where if I remember the numbers right. I thought somebody was… Where do we want to start?
Commissioner Britz-Parker stated you’re shaking your head Mr. Cloud.
Mr. Cloud stated no I’m not, I’m keeping my mouth shut.
Commissioner Britz-Parker stated okay.
Mr. Cloud continued this is ya’lls call, I should not be weighing in. And it seems to me that in order to have some notion, you need to know what the range is, the range of salaries. And you have one of those but you don’t have the rest of it, and so you could authorize us to negotiate. Did we publish a range of salary for this position?
Commissioner Britz-Parker stated no.
Mrs. Pitcher stated we published negotiable.
Mr. Cloud stated okay.
Commissioner Britz-Parker stated so let me ask you this Mr. Cloud, I want to know if we could do it this way. Okay, if you and I sat down, assuming I’m the person that’s going to be the person on the Commission that’s going to help do this. If we sat down and went through some data pretty quickly, like today, you know to probably won’t take us long to see, this is public information, to see what other organizations in Florida are paying their top guy. To quickly do some calculations and we come up with a recommendation of where to start, okay, then do we have to have a meeting again, a special meeting to get that rate approved by this body because it would be our starting point anyway?
Mr. Cloud stated no, you don’t, you can but you don’t have to.
Commissioner Britz-Parker stated how do we need to do it?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Cloud continued, because the authorization, the delegation can be to go negotiate a contract. Now I think that if an offer was made at something, let’s say you know what the OUC person is making, that’s probably going to be a non-starter because it’s probably too high, because the relative sizes of the system. Common sense says once you know the data points, and I’m sure that’s why you went and looked it up because logically that’s what you want to know, what’s the traffic been. So if the authorization is to go negotiate a competitive contract that’s within the range of existing municipal CEO salaries in Florida, that’s a pretty good direction there.
Mrs. Pitcher stated and I also have, I have the APPA study, the most recent one that gives you by size of the General Manager’s salary.
Mr. Cloud stated that’s even better.
Mrs. Pitcher stated I can actually grab it today and show it to you.
Commissioner Holcomb stated so, again, the training that we went to with FMPA the last year, you know the, and I’m looking at the numbers here, I said when I came back we will, we would be here, this conversation would take place and we would be shocked by what it would take to hire a, you know, a person to come here, and here we are. So I just want, again express to everybody that on the grand scale and you know the way we’re looking at this, if you’re looking at he was making $285,000, $290,000 now, Mr. Mitchum’s making $170,000. He threw the OUC out there, probably a good move on his part.
Mr. Cloud stated sure.
Commissioner Holcomb continued, and you know that’s fine, but again don’t think he doesn’t know the numbers in his mind. He didn’t apply for this job not knowing that he thought he was going to get a OUC wage, so somewhere between you know and I think if we can support the usage, can back a good offer. To look at that and say no, no, no, we’re not in line we’re putting more than a fair wage out there, we are trying to lure you here and can support that wage. Ever it’s Commissioner Britz-Parker and Mr. Cloud going there, then they can go there with a little bit of confidence going this is a good offer, this is a good, but be prepared it’s going to be north of what we’re paying our current CEO. So just, you’re not going to get that for what we’re paying now, so just be prepared.
Commissioner Griffith stated I certainly think your process is right on Commissioner Holcomb and why can’t we just go ahead and do that with support from our Human Resources Department.
Commissioner Holcomb stated yes.
Commissioner Griffith continued, laying out what we need and with Mr. Cloud and get this thing approved on Monday night.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated yes, I agree with that 100%.
Commissioner Britz-Parker stated boy, that would be awesome.
Commissioner Holcomb stated there’s no reason we shouldn’t be able to.
Commissioner Griffith stated yes, why not?
Commissioner Davenport stated consider, is this long term incentive here...
Commissioner Britz-Parker stated but to make sure I understand, we’re going to talk about potentially identifying a person on this Commission, maybe me, to work with H.R. and Mr. Cloud to come up with a contract and make him an offer and hopefully…
Mr. Cloud stated he’ll accept.
Commissioner Britz-Parker stated he’ll accept it or we’ll come up with a negotiated number that we can bring back to the Commission Monday night and we’re done. Is that our goal?
Chairman Biedenbach stated well, that would be sweet.
Commissioner Griffith stated that’s the recommendation.
Commissioner Holcomb stated I’m always one of those that wants to think past a not favorable outcome, so let’s walk past that. Let’s say we can’t come to an agreement with him, what’s step two?
Mrs. Pitcher stated well in backing up just a little bit, just keeping in mind we also need to run our background checks, our criminal checks, so that offer needs to be conditional upon.
Commissioner Holcomb stated absolutely.
Mrs. Pitcher continued, successfully passing those, so I just don’t want to leave that part out.
Commissioner Britz-Parker stated sure.
Mrs. Pitcher continued, to your question…
Chairman Biedenbach stated but Commissioner Holcomb to your question what if he says no and Commissioner Britz-Parker’s point that says no, I’m not going any further without you know, I think the Commission’s going to agree with me when she comes back here Monday night, I’m not going there, then I think what Commissioner Holcomb is at… Commissioner Holcomb, let me shut my mouth, you finish it…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated and I understand what he’s asking and to that, to Mr. Miner’s point on that is you have your runner up who you don’t really want to burn that bridge.
Commissioner Holcomb stated that bridge, right.
Commissioner Britz-Parker stated Mrs. Pitcher, would it be out of the realm of reason if we run background checks on both of them?
Mrs. Pitcher stated you cannot, in Florida, you cannot run a criminal background check until you’ve had a conditional offer of employment.
Commissioner Britz-Parker stated okay, I didn’t know that, okay, so…
Commissioner Holcomb stated so, there is a, forms in your office, probably a 100 yards away from here or 200 yards away from here, right?
Mrs. Pitcher stated yes.
Commissioner Holcomb continued, that it has that data on it?
Mrs. Pitcher stated the salary data.
Commissioner Holcomb stated what did you call it, the acronym, the AA or whatever.
Mrs. Pitcher stated it’s the APPA salary study.
Commissioner Holcomb stated so, what I would prefer right now is you run to your office, you bring that back, we have a formal conversation of what that is so I understand because I don’t want to leave here making an offer that I don’t understand.
Mrs. Pitcher stated sure, okay.
Commissioner Holcomb stated so if you would get that, recess for a couple of minutes, and bring that back with copies…
Chairman Biedenbach stated we’re going to recess for lunch Commissioner Holcomb, while she’s running around doing that, let’s go to lunch.
Commissioner Britz-Parker stated sounds good.
Commissioner Holcomb stated sounds good.
Chairman Biedenbach stated okay, we’re in recess; recessed the Special Meeting again at 12:09 p.m. (for lunch)
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
After confirming the meeting was now restarting, Chairman Biedenbach reconvened the Special Meeting at 12:47 p.m.
Mrs. Pitcher stated I have for you not only the APPA study but also FPL and Duke, and then proceeded to distribute copies. Also jokingly commented when you’re looking at the, considering the Duke pages, just look up there at the H.R. position too okay.
Commissioner Britz-Parker stated so that obviously.
Commissioner Davenport stated holy cow, I need to be a CEO at utilities.
Mr. Cloud stated you should see what the General Counsel’s position pays at OUC.
Commissioner Davenport stated what.
Mr. Cloud stated $350,000, of course they just handed H.R. and labor department to the General Counsel at OUC, which is why I’m sure it went to that.
Mrs. Pitcher stated now what I have given you for APPA, which obviously you can see but I’ll just… There’s a page for national salaries and there’s a page for just by revenue, then just by customer size, then by region and revenue.
Commissioner Holcomb stated okay.
As Commissioners reviewed the handout pages, Commissioner Britz-Parker asked and what were our total revenues last year?
Commissioner Holcomb stated $65 million.
Commissioner Griffith stated $66 million.
Chairman Biedenbach stated just say $60 something or other.
Commissioner Holcomb stated yes, just under $70 million.
Commissioner Holcomb stated what was the, I’m just curious, what was the other job, if you guys were in your interviews, what was the other job that he’s waiting on, what County or?
Mrs. Pitcher stated it’s with the same employer.
Commissioner Davenport stated yes, with them.
Commissioner Holcomb stated oh, he’s staying there.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated stay where he is.
Commissioner Holcomb stated okay.
Commissioner Griffith stated and of course he was interested in obviously moving out of there. And even mentioned to me yesterday about you know you’re not going to have move me very far and a whole lot because I’ve already got things in Florida so he…
Mr. Cloud stated he has a house in Palm Coast.
Commissioner Griffith stated yes, a house in Palm Bay, Palm Beach?
Mr. Cloud reiterated Palm Coast.
Commissioner Britz-Parker stated I can’t imagine making that commute though.
Chairman Biedenbach stated okay, Palm Coast, what, could he commute here?
Commissioner Holcomb stated no.
Chairman Biedenbach stated all right, where is Palm Coast?
Commissioner Britz-Parker stated Flagler County.
Mrs. Pitcher stated we have a few employees in Palm Coast.
Commissioner Holcomb stated you do have employees in Palm Coast?
Mrs. Pitcher stated yes.
Commissioner Holcomb stated it’s fifty minutes.
Commissioner Davenport stated about forty-five to fifty minutes.
Mrs. Pitcher stated I have an, one of my employees is in Altoona which is like an hour and a half.
Commissioner Holcomb commented yes, a mile and a half in Orlando.
Mr. Mitchum mentioned Brian Bilinski lives there.
Commissioner Griffith stated oh, Mr. Bilinski was there, I didn’t realize that, so he commuted, an hour each way at least.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Mitchum indicated about 45, depending on traffic, obviously. It’s not Orlando, 95 is…
Commissioner Britz-Parker stated Mrs. Pitcher can you explain to us, like which these different things mean, like the mean is that the average?
Mrs. Pitcher stated sure, yes, so the first quartile is it’s the middle number between the lowest and the median, and then the third quartile is the middle number between the median, which would be the average and the highest. So you really, we look between the median and the third quartile on what you’re looking at.
Commissioner Holcomb stated we’re at, we’re currently paying that wage.
Chairman Biedenbach stated I would say, I’d say we got no help from this thing.
Commissioner Holcomb stated I would, no, I mean, again, but again…
Mr. Cloud stated it would be nice to know this specifically about Florida utilities.
Mrs. Pitcher stated which is where, yes if you go to the region, by region.
Mr. Cloud stated southeast region.
Mrs. Pitcher stated yes, I am able to get the information from the different utilities in our area, that’s just going to take a little bit more time than today.
Mr. Cloud stated so if you were going by the data in this, your high would be what about $200,000?
Mrs. Pitcher and Commissioner Holcomb stated yes.
Commissioner Davenport stated which is 33% lower than he’s currently making an hour.
Mr. Cloud stated right, exactly, I mean.
Commissioner Britz-Parker stated out of curiosity, like what, who do we think would be the closest to us in terms of number of customers in government? Like our head water guy, he said Fort Pierce?
Mrs. Pitcher stated we are, yes, Fort Pierce is the closest to our size.
Mrs. Pitcher continued, everyone else KUA and OUC are a lot bigger than us.
Commissioner Britz-Parker stated so do we know what Fort Pierce is paying, and they have the same deal they have electric, water, sewer, all the same services…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated yes they do.
Commissioner Britz-Parker continued, roughly same number of customers.
Mrs. Pitcher stated right.
Mr. Mitchum commented they’re slightly larger I believe.
Mrs. Pitcher stated yes, I know the Human Resources Manager there, I could get the information.
Commissioner Britz-Parker stated is it not public information?
Mrs. Pitcher stated its public information in the sense that when you…
Commissioner Britz-Parker stated but that’s not easy to find quickly.
Mrs. Pitcher stated right, so I don’t know, I can actually check really quick right here to see if they have it posted.
Commissioner Britz-Parker stated that would be awesome, thank you.
Chairman Biedenbach stated Mr. Cloud weren’t you associated, aren’t you, weren’t you going to Fort Pierce the other night when I was talking to you.
Mr. Cloud stated yes, I was driving down there.
Chairman Biedenbach stated do you know what the GM makes down there?
Mr. Cloud stated I do not.
Chairman Biedenbach stated okay.
Commissioner Davenport stated where did we start our CFO at?
Mr. Mitchum stated excuse me?
Commissioner Britz-Parker stated do you have a new Finance person hired?
Mr. Mitchum stated yes, let me verify with Mrs. Pitcher that we made an offer.
Commissioner Griffith stated offers out.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated he asked the question, Commissioner Davenport asked the question saying what are we paying that person?
Mr. Mitchum stated Mrs. Pitcher could answer that.
Commissioner Britz-Parker stated okay.
Mr. Mitchum stated I think it’s starting around $100,000, it may be slightly you know a little bit here or there.
Commissioner Griffith stated yes, if you’re under our category, median would $123,000, median $121,000, just looking at this.
Commissioner Holcomb stated those numbers wouldn’t even hire Mr. Mitchum.
Commissioner Griffith stated no, Chief Financial Officer, no.
Commissioner Holcomb stated you’re going to be north of $200,000.
Chairman Biedenbach stated I was going to say.
Commissioner Britz-Parker stated I was thinking.
Commissioner Griffith stated yes, north of $200,000, less than where he was, $225,000 to $245,000…
Chairman Biedenbach stated there’s the number I was looking at, $225,000.
Commissioner Griffith reiterated $225,000.
Chairman Biedenbach stated is that, is that somewhere where you would be comfortable Commissioner Britz-Parker?
Commissioner Britz-Parker stated yes.
Commissioner Davenport stated I’d like to see possibly, he’s got that DTE, a long term incentive LTI, we could put something like at five years and ten years to you know if he stayed or some incentive.
Commissioner Britz-Parker stated I’m sorry what, what?
Commissioner Davenport stated incentive for him to stay too, long term incentive, could put something so much per year, five years and ten years. He’s got a $50,000 LTI now, long term incentive. I’m curious what that is, but I’ve done that before and it works out.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated I like give him a salary and then say if it’s appropriate, I guess we’d have to like based on reviews from the Commission or something like that…
Commissioner Davenport stated just another…
Commissioner Britz-Parker continued, that he gets a raise or just more money if he stays; excuse me.
Mr. Cloud stated the form of contract I’ve seen used sometimes, and it was used, not a large city but actually for its size pretty sophisticated. A place called Wauchula which is the County seat of Hardee County, they lost five of their seven Commissioners when they met outside the Sunshine to fire the City Manager and the Governor relieved the five that met outside of the Sunshine. And so they had five new appointments and they had to find somebody pronto who was a good City Manager, and they turned to a gentleman by the name of Terry Atchley. Mr. Atchley had been the Chairman of the County Commission. And they put together a contract that was performance driven, it had certain metrics in it, if the budget improved a certain amount. I don’t know that we, how quickly we could come up with metrics like that but I’ve seen contracts like that. Probably contracts this guy has seen in the private sector, but they’re very unusual in government.
Commissioner Britz-Parker stated and I don’t know personally that I want to go there.
Commissioner Holcomb stated no.
Commissioner Britz-Parker stated and this is like a numbers person talking, but it’s more than I feel like everybody’s, it’s kind of like trying to teach kids only around taking a test, you know I don’t know that I want to go down that road because you can play with numbers. And if you know, I just, even though I am a numbers person.
Commissioner Holcomb stated so, so let’s just walk through that anyway, so let’s just say of your first rate increase what do you think the publics going to say, oh that’s going to work right to his pay plan right because he’s going to increase revenues. So I, that’s a bad thing to have to defend, I just don’t like that at all. I think you pay a fair wage, you evaluate on talent, he does the job, he doesn’t do the job, if he doesn’t I don’t need to evaluate him, you fire him. So that’s to me, let’s not over complicate it…
Commissioner Britz-Parker stated I agree.
Commissioner Holcomb continued, let’s just put a wage out there. I think, like you said that number, that $225,000 number, then that meeting that’s substantially less, not substantially, but it’s less than what they said up there so I’m actually… Again I would feel comfortable, I think that’s above what the market’s paying for this job, he knew what our salary was, he knew what our, you know he applied for the job knowing what, if he’s, if he’s you know as good as we all make him out to be he understands we also have got to be fiscally responsible.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
But I want to pay for, so we’re paying better than fair market value for what we believe to be better than fair market CEO.
Commissioner Griffith stated sure.
Commissioner Holcomb stated so I think those numbers, when you go sit with him, or you and Mr. Cloud get together, you can at least go, like when he says where did you pull that number, we’re going to pay you about 12% above, was it more than that, about 15% to 18% above the…
Commissioner Griffith commented close to 20%.
Commissioner Holcomb stated yes, above that number.
Commissioner Griffith stated it’s a good start.
Commissioner Holcomb stated we’re paying for it, so you knew it was a 65 million, you knew you couldn’t make what you make up there, we didn’t come out with a you know I don’t want to negotiate, mean want to come up with a fair offer and I think it’s reasonable. When you consider for about, what is it $75,000 less than he’s currently making, that I think he’s doing a lot less work too.
Commissioner Griffith commented $50,000 to $75,000.
Commissioner Holcomb stated so I think the numbers are defendable.
Commissioner Britz-Parker stated well and we could have added in that we would pay his moving expenses like you do at a company…
Commissioner Holcomb stated no, I mean that’s a foregone, yes.
Commissioner Britz-Parker stated but then if he doesn’t stay a certain length of time, he’s got to pay it back, that’s a pretty standard.
Commissioner Davenport stated yes.
Chairman Biedenbach stated okay.
Commissioner Griffith stated also be thinking about a heck of a difference tax wise.
Commissioner Holcomb stated so, yes.
Commissioner Griffith continued, you know Maryland they are really very, very tax high and no personal income tax in Florida.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated which I’m sure he’s done that calculation.
Commissioner Griffith added, and that’s probably why he has a property in Palm Coast.
Commissioner Holcomb stated I just, I want to throw one other thing out there, playing devil’s advocate just as, is just we voted unanimously for Mr. Bunch, right we also unanimously said we have two great picks. The other pick makes $165,000 a year.
Commissioner Griffith stated yes.
Commissioner Holcomb stated so, what I would say to, and I talked to Mr. Winters (sic Mr. Miner) I think right, and we need to be prepared for the no and I think direction needs to be if it’s a no from Mr. Bunch that we extend an offer to Mr. Bowlin too. Because you can’t walk it back, you can’t go like…
Commissioner Britz-Parker stated yes we can.
Commissioner Holcomb stated no, I understand that but you get to a point where you talk about trust and you talk about would you, I understand I was second but I understand you all said you know we both had great credentials. You know I just think that’s a bad start when you try to explain to somebody the other guys worth $50,000 more than you are.
Chairman Biedenbach stated so you’re saying the same offer, $225,000.
Commissioner Holcomb stated no, I’m just throwing it there.
Commissioner Britz-Parker stated technically, do we have to go there today?
Commissioner Griffith stated no.
Commissioner Holcomb stated well, here’s why I tell you, Mr. what was his name?
Chairman Biedenbach stated are you talking Mrs. Pitcher or…?
Commissioner Holcomb then stated Steve (Mr. Steve Miner), walk them through our conversation that we just had a few minutes ago about the, if you had to go through this search again are you comfortable with your two choices. If you had to go through this again would you end up with the same, you know, comfortable with your two choices. Because we’re talking about making an offer of $225,000 to Mr. Bunch, if he declines or decides because he’s got an offer on the table from another business. It’s going to be pretty simple, I’m either going to go with this one or that one, it seems like a pretty easy decision. If it’s a no, then we have to proceed to Mr. Bowlin, we don’t want to miss that opportunity either right, I mean that’s, and I definitely don’t want to refire the…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Miner stated thank you very much, my point simply was that you do have two candidates, I think there’s general concurrence around that point, there’s different strengths and weaknesses clearly, and that’s been brought out in some really excellent discussions the other day. My point was simply that you have focus on this I think from the perspective of do you want to go through this again. You know, and if you did would you find the candidate that you think would be better than your number two choice and I think that was my actual question.
Commissioner Holcomb stated yes, that was.
Mr. Miner stated so, that’s a question only you can answer bottom line but it would seem to me that really two candidates of that quality and ability that you would certainly want to try to, for whatever your top choice didn’t work out. And hopefully it won’t that everything will go fine, but if in fact it doesn’t go well then hopefully you will be able to go back to your number two and negotiate a satisfactory contract. Again I’ll leave it to you as to whether you think it has to be the same money, we’re all different, we’re all individually, we have different motivations, we have different motivations and different reasons for doing whatever it is we want to do. It may well mean that the second individual would be willing to go, come here for less. It might be an issue though, certainly I presume they would be aware of it, that’s probably a difficulty you face. I feel for you having to do this in public, it’s not easy.
Commissioner Holcomb stated right.
Mr. Miner continued, very, very, very uneasy to do it…
Commissioner Britz-Parker stated well it’s based on the qualifications and experience of each individual, that’s how we advertised it, and so you know I would feel differently if this first choice doesn’t work out and offering the same amount of money to our second choice, I just wouldn’t.
Mr. Miner stated that’s fine.
Commissioner Britz-Parker added I’m, I’m hoping.
Chairman Biedenbach stated let me ask a question, if $225 doesn’t work out, do we want to think about $235, $245, or do we want to think about the second choice.
Commissioner Holcomb stated put a number out there, be prepared to say no and be able to walk away from it, because if we start negotiations. This is such, this is such a terrible process to negotiate in, because all they have to do is watch us or read the minutes and go hey you know what, offer another $15 grand.
Commissioner Britz-Parker stated what I think, I think that $225 is a really fair offer…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated we made a good effort.
Commissioner Britz-Parker continued, it’s considerably more than what we’re presently paying, it’s considerably less than he’s making, you know it’s kind of in the middle.
Commissioner Holcomb stated you’re right.
Commissioner Britz-Parker stated and I think that’s really fair.
Commissioner Griffith stated that’s where it ought to be, sure.
Chairman Biedenbach stated okay, so we’re at $225, you’re going to work it with Mr. Cloud and with Mrs. Pitcher, and if he says no, we’re going to go $225 to Mr. Bowlin, is that what everybody is saying.
Simultaneously some of the Commissioners stated no, Commissioner Britz-Parker stated I really think that if we can’t come to an agreement, we talk about it then on Monday night.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated all right.
Commissioner Holcomb stated fair enough, I just wanted to have the conversation.
Chairman Biedenbach stated that’s fine, I keep forgetting that Monday night’s coming.
Commissioner Britz-Parker stated yes, okay.
Commissioner Holcomb stated so, make the motion?
Chairman Biedenbach stated I need a motion somebody.
Commissioner Holcomb stated we’ve got to direct, we’ve got to create the team right with the motion, or advise…
Mrs. Pitcher stated I’m sorry, I missed what you were saying.
Chairman Biedenbach stated let’s make the motion to…, I’m sorry Mr. Cloud you want to talk. No, it was you, go ahead Commissioner Davenport.
Commissioner Davenport stated I’ll make the motion to form a committee consisting of Commissioner Britz-Parker and our attorney Mr. Cloud and Mrs. Pitcher, the three of those get together, make the offer to Mr. Bunch, and come up with our proposal subject to
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 86
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): background check and the other things that go in that contract, which Commissioner Britz- Parker, you and Mr. Cloud could probably figure out.
Commissioner Britz-Parker stated with the salary number being $225,000.
Commissioner Davenport added and reiterated, with the salary number being $225,000.
Commissioner Holcomb stated not-to-exceed.
Commissioner Davenport stated not-to-exceed $225,000.
Mr. Cloud stated do you want us to start at $225,000?
Commissioner Holcomb stated no, not-to-exceed.
Mr. Cloud stated okay, all right.
Chairman Biedenbach stated and you’re going to bring it, you’re going to try to bring it back Monday night for us.
Commissioner Britz-Parker stated yes, I thought you were going to say $225,000, that’s our number.
Mr. Cloud stated okay, all right, well then that’s why I asked…
Commissioner Holcomb commented are you in or you’re out, you’ve got two offers.
Chairman Biedenbach stated okay, everybody understand what we’re voting on. Commissioner Britz-Parker, Mrs. Pitcher, and Mr. Cloud negotiate, $225 is the number, they’re going to try to bring it back to us Monday night. Thank you. Anybody more questions…
Commissioner Holcomb stated I’ll second that motion.
Chairman Biedenbach stated okay, it’s been made by Commissioner Davenport, seconded by Commissioner Holcomb. Mrs. Simmons would you please.
Commissioner Davenport’s motion then passed unanimously on a roll call vote.
Chairman Biedenbach stated anything else you want to say Mrs. Pitcher.
Mrs. Pitcher stated just did you have a question when I was back there about our CFO, is that what I heard?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 87
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport stated I did.
Commissioner Britz-Parker stated yes, thank you, we made an offer?
Mrs. Pitcher stated yes, yes and I’ve successfully negotiated with him, he starts on the 30th.
Commissioner Britz-Parker stated and what is his salary?
Mrs. Pitcher stated he will be starting at step B of the pay grade we have for that position which is $100,817, with an increase, a 5% increase, after six months.
Commissioner Britz-Parker stated okay.
Mrs. Pitcher added and it will actually be higher because of the approved GWI coming.
Commissioner Britz-Parker stated because of?
Mrs. Pitcher stated the approved general wage increase that was already approved for this new fiscal year.
Commissioner Britz-Parker stated okay, which was what percentage?
Mrs. Pitcher stated 4%.
Chairman Biedenbach stated Commissioner Davenport do you have anything for the good of the organization?
Commissioner Davenport stated no, it’s just been a great honor to work with everybody through this process. I think the City will be very happy with the hard work that we’ve put in, I hope they are anyway. And I appreciate you there Mr. Miner and everything, and Mrs. Pitcher you did a heck of a great job, and everybody, Mr. Cloud, everybody, really excited to be a part of this and thank you.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated I concur.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated ditto.
Commissioner Griffith stated ditto.
Chairman Biedenbach stated thank you, we’re adjourned.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 88
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith added thanks to all, well done, good ending point.
There being no further business to come before the Commission, the Special U.C. Meeting closed at 1:09 p.m.
APPROVED: ATTEST:
______CHAIRMAN SECRETARY-TREASURER
These minutes were formally approved by the Utilities Commission at their ______, 2018 meeting.
AGENDA ITEM 3-a
MINUTES OF SPECIAL MEETING OF THE UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, HELD THURSDAY, JULY 19, 2018, AT 8:00 A.M., AT 200 CANAL STREET, NEW SMYRNA BEACH, FLORIDA
Chairman Biedenbach opened the Special U.C. Meeting with the pledge of allegiance and then an invocation. He then requested for a roll call to be taken. All of the Commissioners were in attendance as follows:
Commissioner James Davenport Commissioner Lee B. Griffith Commissioner Jack Holcomb Chairman William E. Biedenbach Commissioner Bernadette Britz-Parker
Others in attendance were as follows: R. Mitchum, General Manager/ CEO; B. Pitcher, Director of Human Resources; E. Fisher, Info. Officer-Employee Relations Coordinator; D. Simmons, Exec. Services Mgr./Recording Secretary; U.C. General Counsel- Thomas Cloud, Esquire, Gray | Robinson Attorneys At Law; Steve Miner, V.P. Springsted |Waters, and Walter Allen, a member of the public.
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO:
Chairman Biedenbach stated okay, I guess we should really look at…, go ahead, you’re up, I’m sorry.
Mrs. Pitcher stated me?
Chairman Biedenbach stated yes, you, give us… Then added good morning to Attorney Cloud while arriving.
Mrs. Pitcher stated just first, want to point out the change in the agenda from what you have because of the movement of Mr. Bowlin to 9:15 and then Mr. Bunch is at his initial time 2:15. Originally that’s what we tried to do, what you see there in the schedule but, so I gave you the changes Chairman Biedenbach.
Chairman Biedenbach stated okay, all right.
Commissioner Davenport stated in our packet?
Mrs. Pitcher stated well I gave him the, I just wrote on the agenda the change for him but you do have the schedule in your packet. And in your packet, which each of you have. Then asked did you bring your packet with you, I have an extra one.
Commissioner Davenport stated no, I brought it.
Mrs. Pitcher stated okay, all right.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 2
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport added, I just wish I got it sooner yesterday.
Mrs. Pitcher stated okay, so in your packet you’ll find the score sheets which you may use if you want to, you don’t have to. You’ll also find on the right side, all of the resumes again, attached to those resumes are the interview questions with room for notes. So our question is, what is your preference in asking these? The suggestion is that each of you just goes down and in the order ask the questions and until they’re finished, but if you have a different preference for how you’d like to do that, that’s up to you.
Commissioner Britz-Parker stated I have a question.
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated or a suggestion, is I just, I have a feeling maybe that as a group we might already, kind of close to a consensus or we certainly, you know, maybe we have a candidate that we’re not interested in at all. I, you know, I’m just wondering if there’s a way that we could cut to the chase faster if we tried to, even each person write down individually their rankings or if they… Like I have one candidate really to tell you the truth that I’m not interested in really at all, so I don’t, but if I’m the only one you know then so be it, I understand that. But I don’t want to kind of put somebody through a public meeting if we’re not interested in, at this point, in hiring them. So I’m trying to find a way for us to be efficient today.
Chairman Biedenbach stated okay, let me, let me ask a couple of questions. If we take it, can we take a consensus here to see if we have a straw vote at this point? Attorney Cloud is there any problem with doing that?
Attorney Cloud stated well, this is a duly advertised meeting that was set to start at 8:00 a.m., correct?
Chairman Biedenbach stated right.
Attorney Cloud continued, it’s not a workshop.
Chairman Biedenbach stated that’s correct.
Attorney Cloud stated okay, so I don’t believe these individual interviews are a condition or promise of the search are they? I would say you are within your rights to do it.
Chairman Biedenbach stated now, protocol-wise, because somebody has come down here and made the effort to be here, do we give them a shot, listen to them as a courtesy or do we, can we say one or two candidates there’s no reason to come to us because we have eliminated you at this point; give me some guidance. Then added wait a minute Commissioner Davenport, let me come over here and then I’ll come back to you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 3
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport stated that’s where I was going.
Mr. Miner addressed the Commission and stated Mr. Chairman, good morning, Steve Miner, Springsted | Waters, I think there’s probably more than one right answer to that question.
Chairman Biedenbach stated I don’t need more than one answer to that question.
Mr. Miner continued, if I was an individual coming in for an interview, this is a public environment, being rejected so to speak before the interview starts, in a way in which it can be into the public might be a bit embarrassing, on the other hand I might just appreciate the candor, say thank you, and go back home. So you are paying expenses for the travel so I think it’s entirely your choice as to which you desire to do to be honest with you. But protocol-wise, you’re here, you could shorten the day a little bit and you could put somebody back on the road. So really, it’s your choice.
Chairman Biedenbach stated okay, Commissioner Davenport, go ahead.
Commissioner Davenport stated that’s what I was going to ask Mr. Miner what he would do if he was one of us up here.
Chairman Biedenbach stated okay, all right, then let me run across the group up here. Are you interested in trying to cut this down, what are your thoughts? Commissioner Griffith give me your thoughts one way or the other, you want to interview everybody.
Commissioner Griffith stated yes, I’d be interested.
Chairman Biedenbach continued, or do you want to just cut, cut to the chase.
Commissioner Griffith stated no, I’d like to cut to the chase.
Commissioner Britz-Parker stated cut to the chase.
Chairman Biedenbach then stated you’ve already said so, Commissioner Holcomb?
Commissioner Holcomb stated I think if it’s there, I mean you know if you do the straw poll and the results of the straw polls indicate that that’s where we’re at, yes, then we follow that. If it doesn’t indicate that then obviously we would move forward with the scheduled day.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I agree with Commissioner Holcomb.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 4
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated all right, then we’re going to take a straw poll and does anybody have one candidate that they would like to eliminate? Commissioner Britz-Parker, I know you do. Commissioner Griffith?
Commissioner Griffith stated if I had to do that I would say yes, David Jarrell.
Chairman Biedenbach stated okay, well okay, you have one, I’m not interested in who, okay.
Commissioner Griffith stated oh, I’m sorry.
Chairman Biedenbach stated you do. Commissioner Holcomb do you have one that you…
Commissioner Holcomb stated yes.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated yes.
Chairman Biedenbach stated I do too, so let’s write, let’s write a name of the one that we would say we’re not interested in interviewing. And, a couple scraps of paper please?
Mr. Mitchum stated here we go, we’ve got some old…
Mrs. Simmons commented since the agenda’s changed, can write on the back of them.
Commissioner Griffith stated yes, sure. Then asked so you want one name on this Mr. Chairman?
Chairman Biedenbach stated yes, just write the name down that you’re not interested, if you have one, or two, or three, or four. He then stated Mrs. Pitcher, indicating for her to pick up the ballots. He then stated before you tell us what the results are, okay guys let us say that we have two names, how do you want to do this? If we have four, if we have four or five people that say no, I agree that we should eliminate that person, because if we’re split across here I would say we go with all four.
Commissioner Holcomb stated if your, I think you have to have a majority to eliminate…
Chairman Biedenbach stated okay.
Commissioner Holcomb stated so we’ve got five of us up here.
Commissioner Griffith interjected three to two.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 5
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb continued, if it’s a three to two with that name, then that would be eliminated. But if it’s not a majority, then it wouldn’t be eliminated.
Commissioner Britz-Parker stated I agree.
Chairman Biedenbach stated okay, so then we’re going to do a simple majority, fine, okay go ahead.
Mrs. Pitcher stated we have a majority for David Jarrell.
Chairman Biedenbach stated okay, it’s been a legal, long lunch period.
Mr. Miner stated Mr. Chairman we certainly can attempt to get with the candidates and see if someone can move up and then we re-schedule theirs. They may not be able to but they’re also in town and perhaps can. It is something we can try to do and we can immediately try to do that if possible. Understanding of course that their answer may be no, that they may have something else scheduled or whatever. We’ll do that immediately.
Chairman Biedenbach stated okay. All right, Mrs. Pitcher where did you have the questions that you thought we should be asking.
Commissioner Holcomb stated they’re actually attached on the back of your resume.
Chairman Biedenbach stated okay.
Commissioner Holcomb continued, each resume has its own, so it’s right here.
Chairman Biedenbach stated okay.
Commissioner Griffith commented half way through…
Chairman Biedenbach stated yes, okay, I am, you want to say something Mrs. Pitcher?
Mrs. Pitcher indicated no.
Chairman Biedenbach then stated Commission, I am open to how you guys want to try to do this. I, having never been through this myself, I don’t have any, I’m done with the questions I want answered so give me some leadership here, somebody. Commissioner Griffith, you’ve been in the corporate.
Commissioner Griffith stated yes.
Chairman Biedenbach stated Commissioner Britz-Parker, you’ve been, you too Commissioner Holcomb; but give me some help here.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 6
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated ladies first and added I’d be happy to chime in.
Commissioner Britz-Parker well, we’ve gone ahead and eliminated a person so before we decide that, I’d like to see another straw poll to see if we have a majority of who, the person that we want.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated I don’t have any problem with that, Commissioner Griffith?
Commissioner Griffith stated no, that’s fine.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I agree with that.
Chairman Biedenbach stated well, somebody get another sheet of paper and put down somebody’s name.
Mrs. Pitcher stated there’s a pad right in front of you.
Commissioner Davenport stated we spent a lot of, you know…
Commissioner Holcomb stated I mean we spent four hours yesterday.
Commissioner Britz-Parker stated that’s what I’m thinking, yes.
Commissioner Holcomb stated I mean, I, I’m looking at the questions, I asked the same questions yesterday.
Commissioner Britz-Parker stated I know, me too.
Commissioner Holcomb stated so you know, I could ask them again, but…
Chairman Biedenbach stated let me…
Commissioner Holcomb stated if there’s not, then I think we need to go back through and then…
Commissioner Britz-Parker stated right.
Commissioner Holcomb continued, like I have questions that would, I’d expand on, but if we’re already there then there’s, you know, we’re just…
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 7
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated let me ask a couple of questions before we vote on this. One, there’s, well now there’s only two, there’s two of them that are in the salary range. Am I talking out, am I talking out of turn here when I’m talking salary?
Commissioner Britz-Parker stated yes.
Mrs. Pitcher stated yes, I wouldn’t, I wouldn’t talk about that at this point.
Commissioner Griffith commented stay away from that, right.
Chairman Biedenbach stated okay, I shut up then.
Commissioner Griffith stated Mr. Chairman.
Chairman Biedenbach stated yes, go ahead Commissioner Griffith.
Commissioner Griffith stated so, we’re talking here about making a selection for a choice.
Commissioner Britz-Parker stated right.
Commissioner Griffith continued, positive choices.
Commissioner Britz-Parker stated I was just curious, that if we already had a majority, that’s a discussion.
Commissioner Griffith stated right, right.
Commissioner Britz-Parker stated so, good to know.
Commissioner Griffith stated but I think we want to do that and then we can come back to the original question of how we want to proceed.
Commissioner Britz-Parker stated exactly.
Commissioner Griffith continued, let’s have the straw.
Commissioner Britz-Parker stated absolutely.
Commissioner Davenport stated this is a tough one.
Commissioner Griffith stated well that’s why I asked the question, do we want to do a third out, I mean a second out before we want to do a first up?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 8
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated well if you had, if you want a majority, I think you’re kind of going…
Commissioner Griffith stated yes.
Commissioner Holcomb continued, if, if we’re all going to get there, if we take this and say…
Commissioner Britz-Parker stated if we’re already there.
Commissioner Holcomb stated right.
Commissioner Griffith reiterated if we’re already there.
Commissioner Holcomb stated right, and if we’re not then just move on, if there’s no majority then we just…
Commissioner Britz-Parker stated yes, absolutely.
Commissioner Griffith stated great.
Chairman Biedenbach stated before we go any further I’m going to say to the four of you thank you for the help, I just have no idea what to do this morning and I know I’m supposed to be the lead guy here but I just know zip.
Commissioner Griffith stated we can work it out together.
After Utilities Commissioners completed another paper ballot vote, Mrs. Pitcher stated we do have a majority for Joseph Bunch.
Chairman Biedenbach stated okay, all right now where do we go, we just…
Commissioner Britz-Parker stated well and then I guess I’d ask was it three for us, is it two for the other same person?
Mrs. Pitcher stated yes, it was just those two.
Chairman Biedenbach stated can we, do we want to know who the second guy was?
Commissioner Britz-Parker stated sure.
Commissioner Davenport stated I have an idea we all know, I mean.
Mrs. Pitcher stated yes.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 9
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated well I guess there were only two, I guess so.
Commissioner Davenport stated we’ve got to have a little fun up here too, you’ve got to laugh.
Mrs. Pitcher stated the other one was Reggie Bowlin.
Chairman Biedenbach stated okay.
Commissioner Britz-Parker stated so what I’m thinking is that however you all would like to proceed, I mean we could decide that we wanted to interview both of them and not the other two. Like one has already been knocked out, another one is not in our, it’s not a number one choice. So we can either decide we’re going to have the two top candidates coming in and you know talk to us, you know or we could ask them, to let them know where we’re at. We could, you know we, I don’t see why it’s a big thing, let them know that in our vote where we ended up and so now we’re really asking them to help us to convince us, you know, and see what they say. As opposed to hitting them with all these questions that we already hit them, that they do something to us. Or we can, now that we know that maybe we want to just go with the top candidate. The three, two is really close you know so I think that based on that they should both be talking to us.
Chairman Biedenbach stated Commissioner Griffith, go ahead.
Commissioner Griffith stated I would agree with that and the reason I agree wholeheartedly with that is obviously it was three to two. Just the numbers tell you it was close. And I had two questions about two people and felt that we had two good quality candidates and we had two that probably just didn’t have the breadth quite, and the experience to be in the hunt so to speak. But I also want to do this to hear all your opinions, I think it’s collectively very solid that we hear each other, go through the process, interview the two and then we feed on each other up here with you know regarding questions…
Chairman Biedenbach stated again, after we hear them again.
Commissioner Griffith stated yes.
Commissioner Holcomb stated well I think it’s a different interview when you’re a finalist of two.
Commissioner Griffith stated yes.
Commissioner Holcomb continued, versus a finalist of four, I think the interview’s better. So for me, when were they both scheduled, I mean I’m…
Mrs. Pitcher stated Mr. Bowlin is the first one at 9:15 and Mr. Bunch is the last one at 2:15.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 10
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated of course.
Chairman Biedenbach stated everybody’s going to have a long lunch today, enjoy yourselves.
Commissioner Griffith commented you could go out on a boat.
Mrs. Pitcher stated but we can certainly call him and see if he can come earlier.
Chairman Biedenbach stated Commissioner Britz-Parker do you have anything else to say?
Commissioner Britz-Parker stated no.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb indicated no.
Chairman Biedenbach stated okay, I’m just looking for your comments on do we talk to both, do we want to talk to both of them?
Commissioners Griffith and Britz-Parker stated yes.
Chairman Biedenbach stated you do?
Commissioner Davenport stated I feel it is important that we do talk to both of them. I feel it’s, I don’t like to use, this maybe a waste of our time to talk to the other candidates but we’ve narrowed it down to two.
Chairman Biedenbach stated okay.
Commissioner Davenport stated we should, our focus, I would like to see us put our focus on those two and us bring our heads together and then make a really solid decision. Because both of, we all know that both are qualified.
Commissioner Holcomb stated and what I also believe too, is that it’s actually kind of refreshing that we did the first elimination, that we, it seemed like there was, it was a uniformed decision. And then here, we don’t have three candidates, we have two, so four hours of interviews yesterday came to the same conclusion with the five. So that dialogue that you’re looking for obviously through the interviews happened, now let’s go to the, like I said I think the two makes sense. I think when you let them know obviously they’re the finalists, it’s a different interview, so.
Chairman Biedenbach stated what happens if both, what happens if both these guys turn us down?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 11
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated well you have two other candidates behind them and then you still have the other ten that were remaining. You can always go back and look through those again.
Chairman Biedenbach stated I’m just, again…
Commissioner Griffith commented let’s hope that doesn’t happen.
Chairman Biedenbach stated well I understand that.
Commissioner Britz-Parker interjected one step at a time.
Commissioner Griffith stated I think we can get one of the two.
Commissioner Britz-Parker stated or maybe we start over, there’s no telling.
Commissioner Davenport stated here’s the way I see it, I’ve been thinking about it and…
Chairman Biedenbach stated go ahead.
Commissioner Davenport continued, as a businessman and setting, watching all this, I see that the Utilities, New Smyrna Beach Utilities Commission is in a perfect position to hire a very, very qualified people. Do we have to be the high salary, you know, maybe no, but because of what we have here, our location, our living conditions. And what I noticed yesterday is these two gentlemen are both around 54, 55, they didn’t you know, I mean I don’t know their ages.
Commissioner Griffith stated can’t talk about that.
Commissioner Britz-Parker also stated can’t talk about ages.
Commissioner Davenport stated no, they told me that so…
Commissioner Britz-Parker reiterated can’t talk about ages.
Commissioner Davenport stated well I’m just saying okay, down the road we would get, we’re getting qualified people but they’re also talking about living the rest of their lives in this community, in this area. So you know I just feel that…
Chairman Biedenbach commented we have something to offer.
Commissioner Davenport stated we have something to offer.
Chairman Biedenbach stated the chip’s on our side.
Commissioner Griffith stated Mr. Counselor.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 12
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated we really can’t talk about this.
Commissioner Davenport stated yes, but I didn’t…
Chairman Biedenbach stated about the age.
Commissioner Griffith stated well their personal desires and so on and so forth.
Commissioner Davenport stated you can’t?
Chairman Biedenbach stated personal desires you can’t?
Mrs. Pitcher stated I’m sorry, age, or anything related to…
Commissioner Davenport simultaneously stated I think we’re good, we can talk about somebody’s desires…
Chairman Biedenbach stated whoa, whoa, whoa, go ahead Mrs. Pitcher.
Mrs. Pitcher stated age, anything related to age, and anything like that.
Chairman Biedenbach stated personal desires, wanting to live here.
Mrs. Pitcher stated that’s fine.
Chairman Biedenbach stated that’s fine, go ahead Commissioner Davenport, sorry.
Commissioner Davenport stated yes, and I’ve got a feeling that both of these gentlemen really want to live here and their wives want to live here.
Chairman Biedenbach stated well that was for sure, I mean it was, one of them was honey, I’m tired, go.
Commissioner Davenport continued, so I just think we’ve got a great opportunity here, you know, (unintelligible) will work out.
Chairman Biedenbach stated all right, okay, how do we want to proceed from this point gang and don’t be bashful. Commissioner Griffith?
Commissioner Griffith stated well I think we would follow the same, similar format that we have outlined for us with the questions, and since we’re down to two can we expand the time a little bit if we feel we need to go beyond an hour, and was it an hour and a half or?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 13
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated an hour is scheduled.
Commissioner Griffith stated an hour, then we can have, just follow sequentially the questions.
Chairman Biedenbach stated you want hear the questions that you asked yesterday, you want to hear them again or you want…
Commissioner Griffith responded not particularly.
Chairman Biedenbach continued, to hear something new.
Commissioner Griffith stated looking for something new, now that we’re tighter with two people.
Chairman Biedenbach stated well, then let’s figure out what it is then.
Commissioner Griffith stated good and I think the things that we would be wanting to think about and this is just a starter.
Chairman Biedenbach stated go ahead.
Commissioner Griffith continued, is okay, how we, how would you convince us up here, how are you going to run this organization with respect to the potential, taking it to the next level, making some changes, being a change agent, and making sure we’re doing the right things both short term and long term. And get them right into the “hows”, how are they going to take this role and make it work. And those are the things that I’d be interested in and then if there’s some shortfalls from any one of us that we’re concerned about, which I have a couple, how do we deal with that. For example, water experience, how much water experience have you really had? Trying to look at vision, what is going to be our true vision for this, this role and this Commission. So we’ve got lots of things we can just roll right into it and then feed on each other as far as follow up questions and something you may want to ask similar but yet different. So those would be my initial thoughts.
Chairman Biedenbach stated let me address.
Commissioner Griffith stated sure.
Chairman Biedenbach stated because I’ve thought about that too and I believe, and I could be wrong, but from what I’ve seen sitting where I sit up here, I believe our Water Director is the strongest guy that we have as far as the division leaders. Is everybody…
Commissioner Griffith stated absolutely agree, agree with that.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 14
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated does everybody sort of agree with that? Commissioner Britz- Parker, I don’t…
Commissioner Britz-Parker stated I’m going to, I don’t know.
Commissioner Holcomb stated right, right, I’m not qualified to say that.
Chairman Biedenbach stated just what my perception is.
Commissioner Griffith stated yes, exactly (unintelligible), we’ve seen him for six years right.
Chairman Biedenbach stated yes, and that being the case I have less heartache about somebody that doesn’t have water experience as opposed to somebody that doesn’t have electrical experience. And quite frankly, and I’m going to ask you this Mr. Mitchum, it’s my understanding you came up through the ranks as a lineman, and then as the distribution guy, the assistant, and then to the chair you sit in. Is that pretty much a correct statement?
Mr. Mitchum stated yes sir.
Chairman Biedenbach stated then our present guy had, am I, and if I’m not speaking correctly stop me, limited experience on the water side.
Mr. Mitchum stated yes, limited, believe it or not I actually started in the water department.
Chairman Biedenbach stated you did?
Mr. Mitchum added but was only there like three months.
Chairman Biedenbach stated okay.
Mr. Mitchum stated I had always wanted to be in the electric.
Commissioner Holcomb stated I wouldn’t say that qualified.
Chairman Biedenbach stated okay, so…
Commissioner Griffith stated just a quick comment Mr. Chairman.
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated what, and this is going to put Mr. Mitchum on a test, the biggest, when I met Mr. Mitchum and did all the touring around six years ago, I asked him one day or that day, what was the most important thing that keeps you awake at night with respect to the Utilities Commission, and you said water. Do you remember that discussion?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 15
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
It doesn’t matter, all I’m trying to say is I have had a sense that that was very, very important when we think about vision and potential problems between now and then and the length of capacity that is in the CIP we’re laying on it, water is obviously a very important piece of it. And I wasn’t sure if two of these guys had the qualifications, any experience to go in and understand all of it. But I concur with your comments with respect to Mr. Hoover, he can certainly close that gap with you know the Commission. So that’s my comment on why I said water…
Commissioner Holcomb stated so, to that point I asked that question to both these guys yesterday. With your lack of water experience why would you, why would you elevate yourself to the top, how do I get myself around your lack of water.
Commissioner Griffith stated good, right on.
Commissioner Holcomb continued, I was very comfortable with both answers, I, like I said, looking at you know, without sharing my number one or number two, you know good leaders do well with good department heads. And one of the things that I liked, you know, hire good people and get the heck out of the way, and then manage it. And that’s, for me, I was, like I said I was comfortable with both answers, and really shocked that it was, even though there was the lack of in their resume, their answers were, they did not lack understanding of the water, and again to where I felt comfortable. You know I always laugh when Mr. Hoover starts to talk I get a headache because it’s, you know you’ve got to have a PhD to talk to the guy. So I kind of felt that same kind of squeeze on my brain talking to these guys about it. So I felt like that but if you go look at what these guys have done, both of them have taken new tasks out of their comfort zone, they’ve attacked them, they’ve excelled at them, that’s what I like about both of them. They both kind of, they’ve attacked things that were out of their maybe their comfort zone, they weren’t qualified, and not only did they take it but they took it and excelled at it. So to me that shows something as far as being able to maneuver in an area that might not be your strength and I don’t know that you’re going to hire the person that’s going to have, that’s going to check every box. But these two guys, I think on leadership and being the person at the forefront and maneuvering, you know we’ve got some, we’ve got a lot going on. We go you know a $100 plus million capital improvement plan coming up, we’ve got to borrow some money, we probably got an issue with rates. There was a lot of things in both of their answers that I liked, that they’d run through that and solve. So I think if you ask those questions you both, all of you would be comfortable with their answer.
Commissioner Griffith stated good.
Chairman Biedenbach stated Commissioner Davenport go ahead.
Commissioner Davenport stated I liked the fact that yesterday both of these gentlemen were, asked them how would you come in here and the first 90 days, and all they wanted to do was get to know the employees starting from the very bottom and know everybody in the organization and see who, get advice, listen, listen, listen, both of them. I really, found that
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 16
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): helpful. But also I liked to hear, looking at Mr. Mitchum’s letter to us if you will what the required skills are, that really helped me too looking at that, and what jumped out at me as much as anything, if we don’t have a whole concise, you know collective group working together, and both these gentlemen, that’s where I was really impressed. Not only that but their leadership, they’re really going to care about these employees, that’s what’s very important so I would, I would maybe look at that skills again. I’d like to hear Mr. Mitchum’s input after too, to hear what he thinks about these interviews. You’re going to be sitting in here correct?
Mr. Mitchum stated excuse me?
Commissioner Davenport stated you’re going to be sitting in here with us right?
Mr. Mitchum stated it’s up to you.
Commissioner Griffith stated absolutely.
Commissioner Davenport stated I’d like to hear his input too. I think it’s a valid, you know Mr. Mitchum talked to us about hey, here’s what I think too.
Commissioner Griffith stated sure.
Chairman Biedenbach stated go ahead to Commissioner Britz-Parker.
Commissioner Britz-Parker stated I guess first of all as we’re talking, I’m wondering if we shouldn’t consider having someone get on the phone and call Mr. Jarrell and Mr. Walsh.
Mrs. Pitcher stated we’ve done that.
Commissioner Britz-Parker stated thank you. And then, but I like what Commissioner Griffith had to say, I like the idea of having Mr. Bowlin and Mr. Bunch come in. Tell them where we’re at, tell them we voted, they’re down to the total two, you can even let them know you know that it a was three, two split in first place; let them know.
Commissioner Griffith stated sure.
Commissioner Britz-Parker continued, and then I’m not really interested in going through all the same questions that we did yesterday, I’d rather say okay here’s your shot, convince us. Okay, and as a result of things that they say, I think that all of us are going to have some additional questions, we might already have some questions we didn’t ask, that we’re going to ask in a public forum, and I think we’re going to be real surprised about what we hear. You know something else that I might even think about considering. How many department heads do we have?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 17
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated seven I think.
Mrs. Pitcher stated yes.
Commissioner Britz-Parker stated well I guess they can, this is public so they can be watching. But I just wonder, you know, this is their future so we can invite them to be here that they could see the people and it’s, you know that it’s, if the other department heads are available I’d like for them to be here.
Commissioner Davenport stated well I think that’s…
Chairman Biedenbach stated let me, let me run that by everybody, everybody think about it for a minute. Commissioner Griffith?
Commissioner Griffith stated that’s where I was going so I agree.
Commissioner Davenport stated I agree.
Commissioner Holcomb stated hang on a second here.
Chairman Biedenbach stated yes.
Commissioner Holcomb stated we have seven department heads that have jobs.
Chairman Biedenbach stated yes.
Commissioner Holcomb stated so are they coming here to watch or are they coming here to participate, because I don’t need, we don’t need to bring seven department heads to sit in here and watch what we’re doing. Again, we’re, we’ve whittled this down to two, we have a concerning unanimous, so we have a three to two on the two. We have one concern which is water, well let’s present to them here’s our concern. Electrically we feel comfortable with both of you, you’re both good managers, we feel comfortable there. The one area that we have a reservation is water and get out of the way and let them explain and make us feel comfortable who’s going to be better with their water plan. And the only person I’d have sitting here for that would be Dave Hoover if we wanted to eventually leave and talk individually with Mr. Hoover, because I think he would be the one to verify the strategy, the plan, if you wanted to vet the answer, then you’d have that ability. But I think we’re getting this thing way off the tracks and I would hope that, like I said we just agreed on two people, I mean it wasn’t like we had four, it was three to one or whatever. We had two people that we said this is who we want, then we had a conversation, we said the only concern we have with both of those people is water.
Chairman Biedenbach stated same concern.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 18
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb repeated same concern. So let’s go address the concern, let’s not…
Commissioner Griffith stated like it.
Commissioner Britz-Parker stated and it was more of a thing that right now, although they could be watching, they might not be watching because they are doing their jobs. So it’s more of a thing to…
Commissioner Griffith stated observe.
Commissioner Britz-Parker stated right, to, because, because it’s really important to them I’m sure but I’m fine.
Commissioner Holcomb stated but does that make sense, I mean like I said I don’t disagree with what you’re saying is their future, and no matter who we pick there’s no guarantee, there’s no certainty with anybody.
Commissioner Britz-Parker stated but I hope they’re getting to watch.
Commissioner Holcomb stated I’ve, no, I know, but I’ve interviewed people I felt were the best choices in the world and they lasted 90 days. So, you know, again, through the dialogue I like where we’ve gone, I like the part that we all kind of agree on the same things.
Commissioner Britz-Parker stated absolutely.
Commissioner Holcomb stated so, so let’s…
Commissioner Britz-Parker commented who knew?
Commissioner Holcomb stated right, so let’s not overthink this deal, let’s go address our concern which is water.
Commissioner Griffith stated exactly.
Commissioner Holcomb added so that’s where we’re at.
Chairman Biedenbach stated you’re okay, Commissioner Britz-Parker are you okay there?
Commissioner Britz-Parker stated I’m good.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I’m okay with that, I agree.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 19
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated thank you Commissioner Holcomb. Then asked, Attorney Cloud do you have anything to say at this point?
Mr. Cloud stated no.
Mrs. Pitcher stated just a friendly reminder to remember to use the microphone so those watching can hear.
Chairman Biedenbach stated okay, and then asked are we, are you filming somewhere?
Commissioner Holcomb stated yes, right here, it’s been on all morning.
Chairman Biedenbach stated where, I don’t see the thing.
Mrs. Pitcher stated well typically the camera’s up there but it’s not working so it’s coming from right there.
Chairman Biedenbach stated oh, okay. Then asked can you hear me, am I sitting way back too far is that what the problem is?
Mrs. Pitcher stated I think each of you, if you could just be more mindful of the microphone would be helpful.
Chairman Biedenbach stated okay.
Commissioner Holcomb stated so take a break until Mr. Bowlin gets here, right?
Chairman Biedenbach stated does anybody want to say anything for the good of the organization or do you want to go out here and try to chomp on some doughnuts. Go ahead Commissioner Davenport.
Commissioner Davenport stated I’ve got to tell ya’ll, I’ve really enjoyed this process and this is, I’ve never put so much time into something, and Mrs. Pitcher and everybody. I mean it’s been, the five of us and then what, the background, and what Mrs. Pitcher’s done, it’s been, and everybody’s done, it’s been a real interesting. And I’m glad the City’s put the confidence in us to do this transaction here with you know someone walking into Mr. Mitchum’s seat, you know getting ready to step up to the plate. But that being said I know that we’re going to go straight, ask for the water, you know talk about water, but what about if we did select maybe two or three, four questions that we didn’t ask yesterday to them.
Chairman Biedenbach stated well I think, I think we’ll get there.
Commissioner Holcomb stated you have that ability.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 20
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach continued, I think we’ll get there as we go along.
Commissioner Davenport stated okay.
Chairman Biedenbach continued, and I’m not going to have any trouble recognizing any one of the four of you.
Commissioner Holcomb stated well I think you start off with the…
Commissioner Griffith interjected I don’t think there’s anybody up here that’s bashful.
Commissioner Holcomb stated no, right, start off with water, and then you Mr. Chairman, you ask does anybody have anything to add, and then if you have to add you add.
Commissioner Griffith stated fair enough.
Chairman Biedenbach stated thank you Commissioner Holcomb, and I’m going to add one thing, I had a urinary tract operation last week and if I walk out of here because there are times that it’s right now, so if I walk out Commissioner Holcomb you take over or else call this; it’s, sometimes it’s fairly embarrassing.
Commissioner Griffith commented I’ve been through that.
Chairman Biedenbach stated all right, Commissioner Davenport you had your say, Commissioner Holcomb you have anything to say.
Commissioner Griffith stated, take a break.
Chairman Biedenbach stated Commissioner Britz-Parker’s gone. We’re adjourned for, corrected to we’re in recess for a while. The Special Meeting was recessed at 8:40 a.m.
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists:
Chairman Biedenbach reconvened the Special Meeting at 9:15 a.m., and commented thank you for leaving it off as long as you did to Mrs. Pitcher.
Mrs. Pitcher stated when Mr. Bowlin comes in, just so you know, I’m going to give him a lapel mic, make it a little bit easier for him.
Commissioner Holcomb stated move around, absolutely.
Chairman Biedenbach stated okay, before he gets here I want to thank each of you four Commissioners and Mrs. Pitcher, and the rest of you that supported us during this, I think you’ve done a great job and I really appreciate it, thank you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 21
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Britz-Parker stated ditto.
Commissioner Holcomb stated yes.
Commissioner Griffith stated yes, absolutely, well done.
Commissioner Davenport stated thank you Mrs. Pitcher and Mr. Miner, thanks sir.
Mr. Miner indicated he would like to address the Commission.
Chairman Biedenbach stated go ahead sir.
Mr. Miner stated just take one brief second, had this in my notes to tell you earlier, this was quite a search. You should know, (unintelligible) location is very desirable for this position, we had applicants from 26 different states, California, obviously in Florida. We had additional two come in (unintelligible)…
Chairman Biedenbach stated let me ask you, not now.
Mr. Miner then stated thank you.
After adjusting the lapel mic, Chairman Biedenbach stated morning Mr. Bowlin.
Mr. Bowlin stated good morning, how are ya’ll doing?
Commissioner Griffith stated how are you doing?
Mr. Bowlin stated fine, just fine.
Chairman Biedenbach stated sir, I want you to know we are down to two candidates.
Mr. Bowlin stated okay.
Chairman Biedenbach continued, you and another gentleman.
Mr. Bowlin stated all right.
Chairman Biedenbach stated we have some concerns about your experience in the water side of your resume. Then asked Mr. Mitchum, is Mr. Hoover on his way?
Mr. Mitchum stated he is on his way.
Chairman Biedenbach stated what do we think, a minute, two minutes, or…?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 22
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Mitchum stated he should be walking in the door any minute.
Chairman Biedenbach stated our Director of Water (Resources) is going to sit in the audience and listen to what you have to say. You need to convince us that you’re the guy that our perceived shortness in your resume on water, that you can overcome that and that you’re the guy who can lead this organization for the next couple of years, five years, ten years, fifteen, whatever we’re dealing with here.
Mr. Bowlin stated right, all right.
Chairman Biedenbach stated all right, why don’t you just take a seat for a second until Mr. Hoover gets here.
Commissioner Holcomb stated he’s walking in now.
Chairman Biedenbach stated there he is.
Commissioner Britz-Parker stated and could I, Mr. Chairman, could I just kind of kick in something.
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated because to me, not just the water piece, you know I, because personally that’s not my big concern, it’s more like just sell us period. You know let us know why you’re the guy, big picture, what you’ll do different, convince us you’re the guy.
Mr. Bowlin stated all right, are we ready now?
Chairman Biedenbach stated did you meet Mr. Hoover?
Mr. Bowlin stated no.
Chairman Biedenbach stated Mr. Hoover.
Mr. Hoover stated yes sir.
Chairman Biedenbach stated Mr. Bowlin, one of the two candidates for the new job.
Mr. Bowlin stated hi.
Mr. Hoover stated howdy.
Mr. Bowlin stated hi again, nice to meet you.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 23
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Hoover then stated his name.
Chairman Biedenbach stated Mr. Hoover is the Director of our water department.
Mr. Bowlin stated okay.
Chairman Biedenbach stated okay, Mr. Hoover, the idea is you sit down there and listen.
Mr. Hoover stated I’m good with that.
Mr. Bowlin stated okay.
Chairman Biedenbach stated go ahead sir, you’re up.
Mr. Bowling stated thank you, I appreciate the opportunity and I would like to, you know, elaborate on my experience, to maybe how that bleeds over into the water side. During the individual discussions yesterday I think there were some basic concern that because of my extended tenure where I’m at that I might be another person that really didn’t look at changing the culture or changing the direction of the company. I’ve worked for six different Presidents, CEO’s, three of them from outside. I know all about culture change, I’ve had my culture changed a half of dozen times at least over the last several years. I’ve also gone into several areas of my own and I think there’s, allude to my resume, gone into areas that were poor performing areas and changed the culture of that area and raised them to high performing areas and in a relatively short amount of time. Now in the water side, I think what you’re looking for, I’m sure this gentleman runs the water operations, he knows his job, bet you know, does a fantastic job of it. I’m not there to run the operations plant, I’m there to look at the overall operation and the future where the water goes. And when I was reviewing the reports, I think as we discussed, you know right now you run about 50%, may jump up to about 70% capacity, and after that we have an issue. So long term what are we going to do for the water supply, you know or water treatment, what are we going to do for it. That’s what you’ve got to look at because there’s no way that you’re going to build a water treatment plant or whatever it takes to increase your capacity in a short time frame. Water is, you know, takes a lot longer to get in the ground than electricity does, with what I do. So it’s what I have to look at because I’m a planner by nature, I mean I come from a planning department, that’s what I’ve done my whole life, I’m a forward thinker. And so what I would do is immediately evaluate what’s necessary to meet the water needs. So what we go look at is we’ll look at the water master plan, we’ll look at what there’s capacity’s coming you know that we need, we’ll look at when the actual demands going to come up. And we’ll lay out a project, going to lay out a timeline, what it takes to meet that. That’s what I’ve done my entire life, that’s what I do for electric, I can easily bleed that over to the water. Because like I said I’m managing the water, the future of the water department, I’m not managing the water operations plant itself. From what I can tell the water operations plant has been there since ’75, it’s a little older facility, it’s really maintenance keeping up that facility right now. That’s really what it is, it’s more of a maintenance.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 24
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin continued by stating but I also saw the need for wastewater in the area. I think it was discussed in the meeting the other day that I was really surprised that a lot of areas still here are on septic, particularly on some of your main drags coming in; that, that was really surprising to me. I mean I would be looking if there was a way to partner with the City or partner with anybody to maybe get some of that extended out. I think that you, I told you a little bit I’m pro-growth but not in, but in a small way, but sewer drives that a little bit. And I understand you know that there’s a potential deal offered at one time that I think was kind of crazy for the previous CEO to turn down, to extend that wastewater (unintelligible)…
Commissioner Britz-Parker stated can I interrupt for just a minute.
Mr. Bowlin stated yes ma’am.
Commissioner Britz-Parker stated I’m having some difficulty hearing you. I don’t know if we can maybe move that up higher or something; thank you. I just wanted, to struggle…
Mr. Bowlin stated is that better? Oh yes, I can hear myself better.
Commissioner Britz-Parker stated that’s a lot better, thank you.
Mr. Bowlin stated I’m sorry.
Chairman Biedenbach stated no problem.
Mr. Bowlin stated but going back you know…
Commissioner Davenport stated thank you.
Mr. Bowlin stated thank you, I could see everybody was kind of straining forward a little bit. But like I said my, you know I’m a planner by nature, that’s what I do. I can come in and easily evaluate the state of the water system, the water treatment plant and the wastewater system, and come up with you know a plan going forward and a direction where the department needs to be. Like I said before, you know if we need to kind of change the culture a little bit you know, I’ve, that’s what I’ve been involved with my entire career. I mean what I try to preach, and I do this with my kids and people I work with, the sky’s the limit but my pocketbook isn’t. But what I mean by that is no idea is a bad idea, think, shoot for the moon, give me your best ideas. You know and maybe that idea right now isn’t feasible, but it’s not that you’re going to shelve that idea. You’re going to maybe be able to bring that idea when the conditions are a little bit different. But I’ve always told them the sky’s the limit, that’s how I start off a lot of my meetings, the sky’s the limit, my pocket book isn’t so shoot me with all your best ideas. I’d be listening to this gentleman here, he knows his operation, ask him what his weaknesses are, what he thinks needs to be done. Now I’d go down, talk to the people in the plant, see if there’s a you know a little pearl of wisdom out there that somebody
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 25
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): can drop on it. But you know, this is what I do, I’ve been in leadership positions going on almost two decades now. I’ve ran major operations, planned, forecasted, I’ve budgeted, all those things I think are necessary to move the water department forward. It’s not a big jump to do what I’ve done for electric and into water. I stated earlier, you know, I understand the water system, voltage is pressure, water pressure, and electric current is water flow, pipe size is resistance. I mean the theory of it is the same, but like I said I’m here to really look at the long term needs of the water plant.
Chairman Biedenbach stated Commissioner Griffith, do you have any questions?
Commissioner Griffith stated no, I’m pretty good. I was one of the ones that asked you several questions yesterday with respect to water.
Mr. Bowlin stated yes sir.
Commissioner Griffith stated I hope you understand where we’re coming from here.
Mr. Bowlin stated I do, it’s, it seems like your most immediate need. Electric system is in pretty good shape, it’s taking care of itself pretty good. I think your needs right now from water I can tell are water, wastewater, and I understand that, and that’s why that’s going to have to be one of the first things that needs to be addressed.
Commissioner Griffith stated and the importance of getting into the process of and taking advantage of your leadership and skills. Talk a little bit more about how you’d do that with the people in the water department, per se with Mr. Hoover.
Mr. Bowlin stated well, I would like to first of all is, you know, let him to help me understand. Understand his system, understand his limitations, really understand the plant, you know what his concerns are, what is it that Mr. Hoover needs to have happen. Because my job is to really to support him, to give him the resources and the ability to do his job, because I hear he does it well. But I need for him to tell me that and help me understand where are you deficient, what are you short in, what do you need help in, tell, make all this work. So you know I’ll be, probably working hand in hand relying a lot on what he thinks about the state of the water system. Also going down probably just like I said to the plant employee, I’d like to hear from them, kind of what they think’s going on. And then again is there just anything that you know any kind of partnerships because a lot of water and wastewater there’s different things, you know, that you go out, there’s grant money there’s other different things you can go out and seek. So it’d be a total package not just looking at what needs to happen but how are you going to finance it, is there anything that we can go out and get a little help on because it’s expensive doing water.
Chairman Biedenbach stated okay, you’re okay Commissioner Griffith?
Commissioner Griffith stated I’m good, yes, I might come back though.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 26
(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated okay, Commissioner Holcomb?
Commissioner Holcomb stated you mentioned the sewer and the septic and the, you know in the main corridor coming in.
Mr. Bowlin stated right.
Commissioner Holcomb continued, and then we have a lot of septic back off of the main corridor. You know the arguments been we don’t do that because financially it doesn’t make sense, the return’s not there, you’re not being fair to the other ratepayers by the investment. Obviously we don’t have the ability to assess, so how would you do that. I mean you know one of the things, one of my biggest arguments, or not arguments, I just don’t understand it is that we are a business and more dollars mean more resources. Now obviously a wider range or a wider reach of service takes care of the community better, why, tell us how you would get there, you know why you see that as a potential opportunity versus kind of the way they’ve looked at it in the past is we don’t do that.
Mr. Bowlin stated like I said sewer drives growth, it always has, you know get sewer out there, that’s what drives businesses, that’s what makes things grow. You know I would like to see and meet with the City. I understand the City might want to be pro-growth in a sense. Although it’s interesting I did sit down on beachside last night, I went down to get something to eat so I talked to a couple of locals. And I started talking to them, told them I was looking to moving here, you know kind of talking about the area. And then we, I asked them a little, before I even said anything they talked about the small town atmosphere, kind of fear of growth a little bit. So I asked them, I said what do you think about growth and the woman kind of cringed a little bit you know. And I said well what’s wrong with the growth part and you know because she said well we’ve tried to maintain this small town atmosphere. From what I understood they don’t want to become like Gulf Shores, Orange Beach, where you know you’ve got a McDonalds on every corner, that’s not what we want, we don’t want that you know. And I said yes, but if you’re smart about it and bring in the right businesses, would you want people that are born here and grow up here to get jobs here and stay here because if not, I mean that, you know, you drive away people. You know people that have grown up in this area because where, where there’s future going to be, it’s not going to be here, it’s going to be somewhere else. So wouldn’t you like to retain you know the people that have grown up here and I think they kind of understood that part. So we kind of went back and forth, it was interesting, it was about a 15 or 20 minute discussion but I kind of got a little flavor of the kind of maybe non-growth sentiment of some of the citizens here. But it was an interesting discussion but, you know, my point was is that growth is inevitable, it’s good if it’s done right, and if you partner, you know the City can control a lot of what type of growth they want. You know a lot of other cities have done that, where I come from I mean they go anything from the tongue of the building, to the size of the signs, to whatever. So a city can really control the types of businesses and what they want to get in here, so that can be addressed. But to your question is, you know if the City wants to do that and there’s an offer
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): on the table that they can help fund or partner with us because it’s to both benefits. You know it, I sense that we have a little bit of a house divided you know still.
Commissioner Holcomb stated again for me it’s, and let me elaborate just a little bit more, it’s an our life perspective you know.
Mr. Bowlin stated right, talked a little about that last night.
Commissioner Holcomb stated and that’s, that’s never been the, you know that’s what I look at when I invest my dollars, is there a return there. You know we have ratepayers, versus, you know that’s who we represent, so how do we spend their money wisely, how do we invest, if that were something we chose to do, how would you gauge that or align to say this is beneficial to the ratepayer or not beneficial. Is there a scale, is there a way, how do you pull that off, is there, because I’d be interested to hear that.
Mr. Bowlin stated yes, there’s, there’s certainly a return on your investment and you would think that if you went down to an established area that’s on septic, you’ve got immediate customers and those immediate customers can come over connect and you can automatically calculate you know what’s going to be your return on investment based off the fees that you’re going to get and expected revenues you’ll get off of that. It’s a little bit more tricky when you go out and maybe speculate on some area to just you know run something out. But that’s where you may get with the City or whatever, I mean where do you want to grow at, you know where is it you want to go to? You know what’s the cost to get it from point A to point B. I understood in one of your things that we discussed to see it actually offered, partner with that, and that, that was a sweet deal. I really don’t understand why that wasn’t, turned down. I mean somebody’s going to extend a line out and I’m going to get an interest payment back, plus get customers off of it, that’s a no brainer. I don’t know where that, you know why that went south, but it’s a sign I think you’re previous, you know, leadership might have been not as forward thinking and not as aggressive on, that I would be on doing something like that.
Commissioner Holcomb stated but is there a time, is there time like, like you said if we set a standard, is there a ten year pay back, is there a five year pay back? What’s the, what would be the standard that we would choose to use and again I’m not talking about speculating.
Mr. Bowlin stated right, no, yes.
Commissioner Holcomb stated we’re talking about already there, we’ve got structure, no we’re just going to kind of come off of that. Yes, and do we, you just mentioned this thing on 44 we could go back into the communities, how would you because the arguments been we don’t need to do that, but we are a business we do need revenue, we do have growth, we have a $100 million capital improvements plan coming. You know you can borrow all the money you want but sooner or later you’ve got to generate a little revenue yourselves, so.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin stated we’ve got to have enough revenue to pay your debt service, I mean you’ve got to come back and if you don’t borrow the money, you’ve got to generate enough revenue to meet your debt service, you don’t want to continually go into the hole. That’s not going to work you know, the bill’s going to come to you someday. So you know what you have to look at is the revenue that you’re going to generate, your debt service, are you going to return enough money to at least make your debt service until that’s paid off. And if you can do that and break even, that’s not a bad deal. And then after that it’s, in a way it’s, you know, money in the bank. But that’s what you’ve got to look at, if I had a ten year revenue certificate let’s say, you know and that was to invest some money to build this line, am I going to be able to service that debt with that extension over the next ten years, if it’s fifteen years, twenty years.
Commissioner Davenport stated that’s a concern I have, what you just brought up. Commissioner Holcomb is there also, Commissioner Britz-Parker you’ve brought it up several times too, is there’s a community called Silver Sands and they’re all on septic. And I would love to see, see this what Commissioner Holcomb just asked you, and I’d rely on what it would show people because it drains in the aquifer, if you will, down on the coastal out of here.
Mr. Bowlin stated okay.
Commissioner Davenport stated and it’s probably 150 to 200 homes down there that would be immediate, help them to help us, help everyone else. I’d like to see that done, you know to see that (unintelligible)…
Mr. Bowlin stated yes, I mean it’s not a difficult thing to put together, I mean you know what your estimated costs of construction is likely going to be, and your estimated costs to borrow the money if that’s what you’re required to do, and then you look at your connection fees and your revenue that you’re going to generate on a monthly basis, and just bring it back to net present value and see what you’ve got; I mean it’s, you know, not hard.
Commissioner Davenport stated also I was sitting with a realtor last night, Commissioner Holcomb you’re a friend and he built a new home out in Aqua Court, out here on the water. He says can you believe there’s septic out there right on the water? I said do what, he said there’s no sewer in Aqua Court and I went oh my, it’s just right up in town here.
Mr. Bowlin stated yes, I find it hard to believe a subdivision or a commercial district that’s already fairly well developed on a septic tank. That was a shocker to me, I would not have guessed that, I learned that yesterday.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated no, I’m good. I could shift the subject from water.
Chairman Biedenbach stated is everybody, is everybody okay on water?
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Holcomb stated just to clarify an answer, so basically what you do is you evaluate the expansion, you would look for how we would pay for it, the funds.
Mr. Bowlin stated right.
Commissioner Holcomb stated, and so if the revenue, if, you made the investment, if the revenue offset the expense.
Mr. Bowlin stated right.
Commissioner Holcomb stated say it was ten years, you know I’m just going to use a number, and then basically that ten years itself, it takes care of itself, we haven’t added any debt or any expense to the existing body, and then basically after that ten years we have net revenue in net assets that will obviously be ours.
Mr. Bowlin stated right, you said it much better than I, that’s much better, that’s exactly what I said.
Commissioner Holcomb stated I just want to understand.
Mr. Bowlin stated that’s exactly what I was saying right there, it’s better yes.
Commissioner Holcomb stated fair enough, nice kick off.
Chairman Biedenbach stated Commissioner Davenport are you okay?
Commissioner Davenport stated yes sir I am.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb stated I’m good.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated yes.
Chairman Biedenbach stated change, you ready to change.
Commissioner Griffith stated yes sir, are you okay?
Chairman Biedenbach stated yes, I’m all right, go ahead.
Commissioner Griffith stated so what we talked about yesterday was feedback from customers, feedback from employees, and the sense that you’re not, you’re impersonal, and
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): how would you deal with that. And we talked a little bit about it and how would you analyze that and then going forward make improvements towards that in leading an organization like this.
Mr. Bowlin stated well I also told you I ask a lot of questions.
Commissioner Griffith stated right.
Mr. Bowlin continued, so you know I think when I said impersonal it’s probably the more small casual talk you know is the thing. But when it comes to being, talking about the business and being strategic about what we need to do I can talk to you all day long. So just an example last night that I just engaged some locals, you know just to find out what their feel was for everything. That’s the kinds of things I’ll do, I have no problem walking up and talking to anybody in the community and just asking their opinion about what’s going on. So I mean I would talk all the way from Mr. Hoover down to the person that’s on the floor, down to the person that’s out in the field, really just to get their input. You know meeting one on one, I don’t mind meeting in small groups, I think that’s fine. I don’t mind meeting with any of the Council members, the Mayor, anybody in the community, town halls you name it, I’ve done all that. I have no problems standing in front of people and ask, but I ask a lot of questions. And I think I mentioned I ask a lot of questions, I challenge the way of thinking from a lot of folks, that’s kind of what I’m driving at, trying to get them to not just tell me how we’re doing something but why are we doing it that way. How did we get to the way that we’re doing business and is that the right way to do business? You know, I don’t want to know, yes, I know how we do it today, I want to know well how you’d do it yesterday and the day before and the day before. How’d you get to where you’re at, how do we need to get to where we want to be? So I’m trying to learn that so when I’m asking a lot of questions I’m learning and I’m assessing, I’m observing, but I’m also formulating. And asking a lot of questions to formulate directs to a strategy when I ask those questions. And so, I communicate a lot and you talk to anybody at my company, you’ll know that I talk to everybody to garner ideas.
Commissioner Griffith stated talk a little bit more about your beliefs and experience as far as improving, let’s see performance from people, developing people. Talk a little bit about your people skills and how you like and relatively value the importance of developing people.
Mr. Bowlin stated well I’ve been very fortunate in my career that I’ve worked with people that have stretched my abilities and put me in positions that were maybe outside my comfort zone at times to help me grow. I do the same thing, I believe in succession planning, you know the next person ought to be able to step in, not miss a beat. So what I try to do is, all the way down to my employees, is I try to develop them, I try to put them outside their comfort zone. I mean you have to know people’s strength and weaknesses, and you have to leverage their strengths, but you have to also improve those weaknesses. An example being if I were maybe to present something in front of the Commission, well I may be there, present, but I’ll have Mr. Hoover present it and then you know Mr. Hoover can you know tell you what his
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): ideas are. If that helps develop him to be a better leader, and maybe outside his comfort zone, people don’t like getting up and talking in front of people, but it’s things like that. Anything I can do because it makes me better you know, and the more you surround yourself with smart people the better you are, and the more you can strengthen them the better you are.
Commissioner Griffith stated and again from yesterday’s experience talk a little bit about what you’ve learned from your superior. You have a lot of respect for your boss and you guys have worked well together over the years, so what has he been helping you develop with.
Mr. Bowlin stated well Nick, my V.P. is a, he’s the kind of person that can kick you in the butt with one leg and put his arm around you and make you a best friend with the other one. He’s got a unique ability to really reach people. And I’ve watched him and I’ve learned from that, you know, you know how do you encourage people but at the same time you know if have to give them a little swap, but you also encourage them to be better. And Nick is a master at getting the most out of people you know and everybody likes working for him because he’s tough, he’s fair, but he’s also going to, you know he’s going to support you, he’s going to have your back when something happens. And that’s the kind of leader that I want to be with my people, that I’m going to be tough, you know but I’m going to be fair. And you know and people are going to make mistakes and when you make a mistake you know we’re going to back up from it as long as you don’t make that mistake again, you know you learn from mistakes and go on. But you know kind of what I learned from him is just that ability to pick people up, put your arm around them in a way and say you know come on we’re all going to be part of the same team moving forward. And Nick’s really good about having a very collective group. Also you know he’s trained us to be blunt and forthright and there’s no, our staff meetings are, are a good thing they’re not probably recorded, they’re unbelievable some times. But we are passionate about what we believe in, we speak our mind about what we believe in but yet there’s no hard feelings from anything that comes out of it. And we will walk out, we’re all electric, gas, and water, and my company are all supporting each other. But he’s, he’s the kind of person that he’s not thin skinned, you know he can take criticism and that’s what I’ve learned from watching him and that’s how I am. I’m very blunt but I also take blunt criticism, I don’t get upset when you know somebody comes down on me with both feet. I understand, and you know if I made a mistake I’ll correct it and go on. But, and that’s kind of what I try, you know the way I try to manage my people you know.
Commissioner Griffith stated thank you Mr. Chairman.
Chairman Biedenbach stated you up, go ahead.
Commissioner Holcomb stated I’ve got two, you talked about change, you know we’ve been kind of the same business, same town, same way for, you know, forever. You’re coming from a different area and you know people get comfort, get comfortable in the way that they do things. I believe that we have about 165 good employees between these four walls or the walls that we have through the community and sometimes the hard part is convincing that that
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): may be the way that they’ve been doing it is not necessarily wrong but looking at doing things a different way.
Mr. Bowlin stated right.
Commissioner Holcomb continued, opening up. I mean we’ve changed because we’ve change positions, we take new tasks and leadership but the folks that we manage, and if we don’t have the buy in, my question to you is how are you going to get, if there are changes that needed to be made, how do you get the buy in?
Mr. Bowlin stated well, you know that buy in comes by having them participate in the process. I mean it doesn’t come, the top provides leadership but the people underneath you are the ones that are going to make that work, they’re the ones that are going to enact your, you know your mission and your vision, what you want for your area. So what you have to do is let them be inclusive and participate in the process. You know and like I said the thing to do is have an open honest quaint discussion back and forth, you know what I want to do and kind of how I like to see the area lead or why can’t we get there, what’s the obstacles of getting there. Do I need to supply you with, you know is it a resource issue, a training issue, what is it you need to get you to where I want you to be, you know as far as the way I see the area performing. But you have to have their support but you’ve got to go in there and listen to their ideas. You know I don’t know everything, I don’t, you know, water, wastewater. I don’t know everything but I do know how to lead people and I know how to get the most out of them. And that’s, when I go in there I’m, when I sit down and meet with my staff it’s, it’s a wide open discussion. All ideas are on the table, there’s no dumb idea, there’s nothing you don’t say, let’s just get it all out and let’s figure out where we want to be. But you’ve got, set some kind of metrics or some kind of performance or some kind of goal, I mean if not you’re just floundering around coming in doing your job every day. You know if you want to get somewhere you’ve got to set a goal of where you want to be, you’ve got to say here’s where I want to be, now how we’re going to get there as a group and listen to their ideas. So you can’t just go in and do business as usual, you’ve got to have some kind of a metrics or scorecard or some kind of a goal in mind to get there, otherwise it’s just business as usual.
Commissioner Holcomb stated I appreciate that. The second question was the Commission, how do you view the Commission. You know we’re here as oversight and what, how do you see the inner workings and the relationship with your Commission and you.
Mr. Bowlin stated that was the subject of a lot of discussion yesterday. The way that I see it working is the way it works in my company, is that you know you’re my boss. I bring ideas to you for things I’d like to do, directions, plans, you shoot holes in it, you tell me to go back. You like this, don’t like that, we come to some kind of agreement and then you approve it. But when it comes into it, I mean you’re in charge of oversight, you’re in charge of making sure that I’m doing my job and that I’m enacting what I said I was going to do, otherwise you know why am I here. So, you know in our company we have a, call it a Board of Commissioners, same thing as you, it’s a five member board. But when they agree upon
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): something, they tell you to do it, that’s what’s going to be done, there’s no waiver from that without coming back to that Commission and getting, and letting them know a different direction or different plan and getting their approval to move forward. You know we just don’t, we just don’t go out there and just, you know, like loose cannons. We keep the board we have, sounds like this Commission, we have a very, very active Board of Commissioners. They are engaged, they care about their community, and you know we present ideas and plans to them of what we want to do and then they either approve or disapprove of those plans but whatever the structure is, that’s the structure that we follow, so. I see me coming and being very forthright with you, very open with you with what I want to do because I’m, I’m not from here, there’s no hidden agendas, I just have a goal to make this the best you know the best utility that I can make it. And I’ll be bringing ideas to you and we’ll you know formulate those ideas and you’ll give me a thumbs up or a thumbs down and if there’s something in there that you say you want a feedback in a year, you’ll get feedback in a year, not a year and a day. Because, you know, when it comes to it I work for not only the customers of this utility but I work for these five members of this board.
Commissioner Holcomb stated and it’s a little different, but again I expressed to you yesterday this is my just under third year and it is a different process, it’s kind of an upside down chain of command for me, because the people with the least amount of experience in this field are at the top and the people that are, with all the experience are beneath them. So I look at my role as support you know and again the reason I asked the question the way I asked it is, is you need buy in beneath you, you need buy in above you. And as long as we all understand, that’s what I’m trying to get to, and I think that’s where you were going with it is because again we want to do, we want to support ever who’s in that position, but we have to understand what it is you’re doing and why.
Mr. Bowlin stated right.
Commissioner Holcomb stated so, so again you do what you do so it’s very clear and easy. I do what I do, so what you’re doing is foreign. So, so I want to make the best decision, apply my skills to you. How do you get me to understand the utilities business, because it is very unique, to, you know, to be your partner to make sure we’re doing, we’re making the best moves on behalf of the ratepayers and the citizens of New Smyrna Beach.
Mr. Bowlin stated well, I hope I can explain it in terms that we can all understand. It was very unique interviewing individually because you come from business perspectives, financial perspectives, and I come with more of an engineering, operations background. So I even sensed yesterday there’s a little sometimes a disconnect in maybe the language and certain things, so my job’s to present to you in terms of a business proposition. I think that’s something that you know would be easier to understand. So mine is to get out of my lingo, come to you with a business proposal, and here’s what I see that we need to do. So and we’ve got to be able to communicate on the same playing field, and I sensed a little bit yesterday that, that you know I need to manage my, my presentation in order to do that.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Commissioner Holcomb stated thank you, that’s all I’ve got.
Chairman Biedenbach directed next to Commissioner Britz-Parker.
Commissioner Britz-Parker stated yes, with what you’ve learned about the Utilities Commission so far, what do you think would be, what could you, do you see yourself being a top priority to do differently or better right out of the gate.
Mr. Bowlin stated improving communication with this Commission, improving communications with the City, that’s two things I think that are. I mentioned earlier we have a house divided, to paraphrase Abraham Lincoln a house divided against itself cannot stand. We can’t be divided, can’t be anything going on between you and me or us and people downtown or don’t call it downtown, City. So first of all, they don’t know me, is establish that relationship, let them know who I am and what I’m here to do and how I’m here to help. Because they don’t know me, you don’t know me, so my job is for, to meet them immediately and get them to know who I am and what I’m trying to do. So I think that’s the first thing and then the second thing of course is what we talked about, we’ve got some rate studies coming up and it was mentioned in the Triennial. I think yesterday you said you already are going out for a rate study, we’ve got to get prepared for that, you will miss the CFO. Immediately got to get with the CFO and find out, you know, let him a good grasp or he or she get a grasp of the company and run get a handle on where we stand on that. Because you can’t bury your head in the sand if they come up with a rate study that says you need the increase, you know you keep putting that off ten, fifteen years, you’re eventually going to end up, you know, coming back and biting you so, you need to address it head on.
Chairman Biedenbach stated speak up a little bit please, you’re starting to fall off there.
Mr. Bowlin stated I’m sorry.
Commissioner Holcomb stated it’s just you, your tone’s dropping.
Chairman Biedenbach stated yes.
Mr. Bowlin stated okay, thank you, did I answer your question?
Commissioner Britz-Parker stated yes, thank you. What, do you have an area that you think you have a special gift as far as being innovative?
Mr. Bowlin stated just the fact that I’m a forward thinker. I think if you talk to anybody that I worked for, I’m always thinking ahead because if I’m, a planner by nature you know, five, ten, fifteen years where I need to be. Every thought I have is about where I need to be five or ten years from now. That’s the way in my personal life and that’s the way I approach business. So you know I don’t think about just running the business from day to day, I think about where the business will be five years from now. So you know I’m constantly coming
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): up with crazy ideas, I’ll probably bring some to you that you’ll probably think absolutely crazy you know but they’ll be different. They’ll be different but you may look at me and kind of you know close one eye when I’m discussing it but at least I’ll present some ideas to you about what we need to do.
Commissioner Britz-Parker stated and Mr. Bowlin I know you told us that individually when we met with you yesterday but for the record and who all might be listening, you have been with your current company for how many years?
Mr. Bowlin stated 31 long years.
Commissioner Britz-Parker stated 31, so why us? Why do you, why are you interested in coming here?
Mr. Bowlin stated right, well it’s a, as I explained, in my job I’ve been doing it for 31 years. I love my job, I think I’m very good at my job, but it’s time for a change, it’s time for me to do something different. I’m an empty nester, kids are gone, so it’s a good time to make that change now in my life and this is the time to move forward. I’m looking, when I was looking for jobs I was looking for two things. Really one that fit my skill set, that I thought I could come and add value to the company, you know I wanted to be able to do that. If I’m coming into any company I want to be able to add value. And two, I was looking for location, I like a few things that I read when I was reading about your company. One was you do operate as a Commission, where I come from the Commission may approve something and City Council may turn around and say no you’re not going to do it; so that part really attracted me. I like the smaller community because I like to be engaged in the community. I like to go out and talk to people and with a smaller community it’s easy to do that; I like that part of it. Of course, the location, can’t beat the location. And I was just looking for a you know also, even though I don’t have the water, wastewater experience, something else to broaden my experience. You know I get bored a little bit doing the same thing over and over, I wanted to do something that was a little bit different. So, going, I could have gone to a strictly electric utility, they’re all over where I’m coming from, but I also was looking at something that maybe had gas or water, something else I’ve got a little bit of a background in. And, and so I was just looking for a new challenge in life and I, you know that’s, this job excited me when I read everything about it. And also I looked for, when I looked at, I’ve got to mention this, that a utility at its heart is really a construction, engineering firm, it’s surrounded with good customer service. And when I looked at the way that it was being ran, we were putting out good master plans, they looked like they were sound, then you were turned around and you were actually supporting them by putting in the budgets and things to go forth to move that plan. Something that you know we did for several years, I think we may have gotten away from that a little bit. But that’s what you do, I mean we’re here to serve our customers, so you come up with a plan to serve your customers and come up with a way of funding it. From everything that I could read and that I read it’s the kind of company you seem to run, so. I found out a couple of other things yesterday but things that we can address with maybe the
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): direction of not moving forward on water, wastewater expansion. There’s a few things there that probably need to be addressed.
Commissioner Britz-Parker stated that’s all I had.
Chairman Biedenbach stated Commissioner Davenport, do you got anything?
Commissioner Davenport stated is, I’d like to know specifically what you would do and how you’d approach our City council or Commission, our City Commission to get a better… I’ve never really understood it over the years why it seems to be we get appointed by the City and voted on but then something seems to happen. We need that work relationship, but if you could be a little more specific to me, I want to know what you would do. I mean I really care about that.
Mr. Bowlin stated right.
Commissioner Davenport added we all do.
Mr. Bowlin stated well, although I don’t mind talking in front of a group, I find the best discussions are one on one, because people are going to, you know, people may speak their mind and I don’t have a problem doing that, it’s easy to get them on one on one, you have a better conversation. So what I’d like to , if I could, is meet with each one of them one on one and you know explain who I am and also get a feeling what, where’s this angst coming from and what is it. Can they even explain what it is, is it just a general dislike of the disconnect between the two or is there something specific, something that stuck up, you know, a craw that it’s something I can address. So what I’d like to do with each City Council member or you call them City Council members down here I guess, and the Mayor, is meet with each one of them individually and just really have a conversation, just like I had with you yesterday, to find out what is the root of the issues. That I’m coming in new, I’ve heard this, but I have no basis for it because I have no background, so you know explain to me, you know, what is it you see that the Commission is, that you see is a, you know that maybe we could help or that you think we’re not doing as well as we should, what can we partner on. You know all that, just have a good, you know you can do that discussion relatively quickly and maybe just get down to the root of the problem. Because if you don’t, if you don’t talk about it, it’ll never get solved, you know you let it fester it’ll never get solved. And sometimes people can’t, they have trouble even articulating, you know, what the problem is but I think if you keep having conversations, keep asking a lot of questions, keep driving it, you can get to the point of, you know, do they really have a problem or is it just a general this is the way I feel kind of thing.
Commissioner Davenport stated tell me again what factors would most influence your decision to accept this position, what factors to accept it.
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.):
Mr. Bowlin stated really it’s about the job, I mean and I explained that today, why the package is important, the job is what I’m looking for. I’m coming from a utility, I’m going to have a retirement, I’m going to have, you know, so when I’m looking at my second, my last career I’m looking at the job. It’s a job that I see one is a good fit and one that I can come to work and enjoy because if you can’t come into work every day and enjoy what you’re doing then you don’t need to be coming in to that job. So I’m, I was looking for a job and a fit that in a community that I could, I felt like I could be comfortable in, that I come in every day and do a good job, and then have a little fun. Can’t have a little fun in what you’re doing you know you might as well find something else to do.
Commissioner Davenport stated tell me why I should vote for you to accept this position, give me a reason to hire you.
Mr. Bowlin stated reason to hire me.
Commissioner Davenport continued, get my vote.
Mr. Bowlin stated two decades of leadership, demonstrated ability to come in and transform areas, communications skills, you know there’s no fear of communicating with anybody on any level, actively involved not only in the company but in the community. I think I’m, those right there are factors that the company needs and things I can bring to the table to maybe help benefit the company.
Commissioner Davenport stated I’m good Mr. Chairman.
Commissioner Britz-Parker stated yes, I think I’m good.
Commissioner Griffith then stated thank you for your interest.
Commissioner Britz-Parker stated absolutely.
Mr. Bowlin stated I thought you had been holding back, I was waiting on you.
Chairman Biedenbach stated from last night, from last night down on the beach, what is your overall impression. You said that you talked to a couple of people and they short of shuddered when you talked about growth and they seemed to settle down after you talked to them. I don’t know how many people you talked to or whatever. What was your impression after you talked to whomever and however many you did?
Mr. Bowlin stated right, well what I was surprised about is right off the bat how they understood the issues of the community. You know a lot of people are not involved in what’s going on but apparently I, or either that I picked the right people to talk to. Because I mean right off the bat, yes, right off the bat they went to this growth issue and I didn’t really have to bring it up, they just jumped right on it. And so one, I found that they were passionate, they
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): were people that had retired down here, been, and even though they retired down here they still cared about their community. So you know I was really surprised by that you can walk up to a stranger and right off the bat the issues that we discussed yesterday were the issues that were on the table. That was a pleasant surprise because that means they’re educated, they, you know, they know what’s going on, so that part I really liked. And I kind of you know got a feel too that they liked the small town atmosphere of the community, they don’t want to be another kind of, and I used Orange Beach and Gulf Shores, that’s my reference not theirs, but I knew where they were going when they talked about change on every corner. So they really want to manage the small town community and but they really talked about, the way I understood is on the other side of the causeway as much as, you know, I guess it would be I think west of town. That seemed to be the more of their focus, they liked the I’d say on Flagler Avenue that they liked that environment, they liked the small shops, they didn’t want somebody to come and take those away you know by having these big chains and losing businesses and things like that. They want to keep that atmosphere downtown, that’s what they were really, you know, in that area, they’re really looking to keep that small town kind of, you know, individual mom and pop type stores; that seemed to be their main concern. But I was impressed that like I said either I picked the right couple to start talking to or something, I knew they were local when they came in, they, when they sat down then I, so I just asked if I could ask them a few questions and they didn’t mind talking, so.
Chairman Biedenbach stated anybody last round, everybody good? Thank you for your time today sir.
Mr. Bowlin stated I appreciate it, thank you very much.
Chairman Biedenbach stated and good luck to you.
Mr. Bowlin stated thank you, it’s been very enjoyable. If nothing else I’ve learned a lot about your community, so I appreciate it.
Commissioners Davenport, Griffith, and Britz-Parker simultaneously stated thank you.
Chairman Biedenbach asked Commissioner Britz-Parker do you have, before, do you have anything I need to do that I forgotten.
Mrs. Pitcher indicated Mr. Bowlin may have some questions for the Commissioners.
Chairman Biedenbach stated okay, do you have any questions for us sir?
Mr. Bowlin stated no, I asked most of my questions yesterday in the, one was just to get a flavor for what are the issues here and you were more than willing to share those issues with me yesterday. Because anybody that moves into an organization wants to know what they’re getting into and I really do appreciate your candor yesterday and sharing with me what you
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(1.a) Reggie Bowlin – Public Interview of One of Two Finalists (cont.): thought were the major issues that need to be addressed. Because, you know, if I were offered the position I would have time to think about it and when I come in I won’t come in, you know, not knowing that and having to learn. I’ve already learned enough about your organization to, you know, start formulating things in my head that I’d want to do day one when I come in. So I appreciate your candor yesterday, learned a lot about the company, good company, going to come in, and everything I did hear, good employees. I heard that from top down, every one of you said what great employees you have here at the company. That’s a bonus, if you’ve got good employees you can do anything with it. So I do appreciate just meeting with you individually and I appreciate what you shared with me, it was very helpful, appreciate it.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated thank you, have a good day, have a safe trip.
Mr. Bowlin stated thank you.
Commissioner Griffith stated take a little break Mr. Chairman?
Chairman Biedenbach stated yes, and then asked Mrs. Pitcher when’s the next candidate coming in?
Mrs. Pitcher stated he’s here.
Chairman Biedenbach stated oh, he is?
Mrs. Pitcher stated yes.
Chairman Biedenbach stated okay, why don’t you give us five minutes.
Mrs. Pitcher stated yes.
Chairman Biedenbach stated we’re in recess for five minutes; recessed the Special Meeting at 9:58 a.m.
(1.b) Joseph Bunch – Public Interview of One of Two Finalists:
Mr. Bunch then stated morning everyone.
U.C. Commissioners responded simultaneously good morning, Chairman Biedenbach added how are you today?
Mr. Bunch stated I’m well, glad to see everyone.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach then stated whoa, I’m sorry, we’re back in session. The Special Meeting reconvened again at 10:12 a.m.
Chairman Biedenbach then stated okay, and repeated good morning sir, how are you today?
Mr. Bunch stated very well, very well, good to see everybody.
Chairman Biedenbach stated sir, you are one of two finalists for this job. We have some concerns that you’re very strong in the electric side of it and have some concerns about the water side of it.
Mr. Bunch stated okay.
Chairman Biedenbach stated we have our Director of Water Services (sic Resources), Mr. Dave Hoover, if you’d like to go shake his hand. Mr. Hoover, this is Mr. Joseph Bunch.
Mr. Bunch proceeded to shake Mr. Hoover’s hand and stated hi, pleasure to meet you.
Mr. Hoover stated nice to meet you.
Chairman Biedenbach then stated to Mr. Bunch, we need you to convince us one, how you can make us more comfortable and then we need you to tell us why you are the guy that we need to hire for this position. And we’ll let you have time to go ahead and make your presentation and then each of the five people up here will ask you some certain questions that they think they need a better answer to or that we all do.
Mr. Bunch stated okay, very good…
Chairman Biedenbach then stated and would you please speak up because we are having trouble with the sound or whatever, they’re looking at me and saying you aren’t speaking loudly enough.
Mr. Bunch stated okay, so whoever is in charge of that just let me know if I’m not speaking clearly or loudly enough; is that good? Okay, thank you. So just repeating that back to make sure I understand the questions, it sounds like two parts, is, so you’re looking for me to provide some comfort in terms of my ability to lead the overall organization which includes water, recognizing the backgrounds I bring in the electric industry. And then part two of that was why I should be the one chosen for the role; is that correct?
Chairman Biedenbach stated yes sir.
Mr. Bunch stated okay, I would also offer if during my comments anyone has any questions, feel free to interrupt and I’ll be…
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated we don’t have any problem with that.
Mr. Bunch stated I didn’t, thought so, but I also didn’t want to make you feel uncomfortable. So I believe what I’ll bring to the role and if this helps you have a level of comfort, is effective leadership of the organization and business, understanding what my strengths are, what I know and what I don’t know. And I think, I think that is, that’s key for any leader and particularly executive leaders. If I was leading the organization I would not try to be the technical expert in any of the areas, including water. I’d look to the Director in this case for the water division to run that. That said the role of the CEO has a number of requirements that regardless of what industry you’re in you have to effectively lead, run and work through to be successful for the organization, as a business entity, and the team that you’re leading. And so all of these industries, and I’ve worked in electric and gas, not just electric. I told some of the folks yesterday, the company I worked for, for 28 years, is Baltimore Gas and Electric, it’s actually the nation’s oldest gas company, in 2016, had their 200th anniversary. I did engineering of both electric and gas way back when, as a newer employee. So pipes and wires is what we call the business, now obviously there are differences between gas and electric technically, but also from a compliance standpoint. I’m familiar with the challenges of those industries, you know in the case of water quality, availability, supply, capacity are big challenges. And I think the other one we that we need to make sure we understand is if I was the CEO for running the business, would be what are the risks associated with both elements of our business, both water and gas (sic electric).
Mr. Bunch continued and stated so is, I was talking with some of the Commissioners yesterday, living in Maryland most of my life, except for three years I was in northwest Florida, we are a coastal community like you and I’m well aware of the risks and impacts on the business that weather brings to our business. So I have, I’ve led large scale hurricane restoration efforts in Maryland, upwards to three quarters a million customers out of the 1.2 million that BGE had as customers in terms of restoration, running the overall execution and communications with public entities and media in some cases. So I bring good leadership, I would bring good leadership to the role in terms of, again the water business I would rely on the technical experts, the Directors running that division, like I would the electric, to run the day to day. I might have said electric, I meant to say water, like I would day to day for the folks in the electric. But my role and mode of leadership as the CEO would be to make sure that there, we have plans in place to address the challenges of both those businesses, we have a solid business plan that, once I was on board I would work with the Commissioners to review. If we thought there was any desire and need in conjunction with our customers and the community to move in a different or newer direction, we’d work on that vision and strategy. That’s not something Joe as the CEO would come in and assume I know what the customer in the community or the Commissioners think we ought to have. What we don’t want to have is, I think the worst outcome would be hire somebody who has a predisposed opinion, knows what the solution and the exact needs of this organization and your community are and come in like a bull in a china shop for lack of a better word. I’m a deliberate leader in terms of planning, strategy, and then working with straight stakeholders rather, and in this case it would be the City, your Commissioners rather, and our community
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): to enact that so. I would do a well balanced approach to leading the business. I told a number of the Commissioners I met with yesterday, I’ve been entrusted to lead organizations up to 500 people. In my prior role I had 24/7 day to day responsibility for about 60 percent of the BGE electric region which was three quarters of a million customers, probably 1,500 square miles. The employees associated to that number about 500, we had several hundred contractors, and my budget was about $140 million annually. So I bring, feel very effective leadership to the table, the ability to manage the business, the financials, and then work with the community to make sure we’re meeting their needs and expectations.
Mr. Bunch continued, so if I was on your side of the table I would be asking similar questions but I’m going to bring a very solid industry experience to the table, offering it to the Commissioners, and a delivered approach to the way I plan, run the business, and work with stakeholders to develop and enact a strategy. And I’ll just add again, goes certainly back to the question about water, am I going to be your technical expert, I don’t think you need or want me to be but if hired I would be asking the right questions to make sure we have a good business plan in place for supply adequacy, just like electric, quality. I know water quality’s a big issue, issues with run off in the region, drainage causing problems to you, tidal wetland grasses and things like that, and the aquifer. Beyond that I’m going to trust the team to tell me what that means and what our technical plans are, what we need to address it, and then what investments we need to make. And we’d work with the Commission to make sure that the budget available to provide for that long term adequacy and safety of the water side of the business. I’ll pause there for a moment, Chairman Biedenbach, hopefully that addressed the two parts of your question.
Chairman Biedenbach stated Commissioner Davenport, you okay over there?
Commissioner Davenport stated I’m fine.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb stated with that, yes.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated we’re just talking about that first question?
Chairman Biedenbach confirmed that first question.
Commissioner Britz-Parker stated I’m good.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated I’m good.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated go ahead sir, we’re good on that part.
Commissioner Britz-Parker stated he’s waiting for a new question I think, he’s waiting for a new question.
Mr. Bunch stated I thought that was, one was how to make you more comfortable with regards to the water side of the business, part b. why I should be the one. Would you like…?
Commissioner Holcomb stated right, all right like we said more questions right?
Chairman Biedenbach stated all right you want to go to it. Sorry for the misunderstanding gentlemen, go ahead Commissioner Holcomb.
Commissioner Holcomb stated, and I appreciate you being here. Again the finalists that we have I feel that we have two really good choices, which is exciting. You talked about you bringing a lot of experience and what I look at is how do we take your experience and transfer it through the employees and get that into the business. And again you’re coming to an area that’s, you know that’s we’ve done things a way for a long time so your visions and strategies and what not might be different. How do you see getting that and getting the buy in into the people that implement those ideas?
Mr. Bunch stated okay, excellent question, so in terms of transferring experience to lead the business with the employees. One of the folks asked yesterday what I would do in the first 60 days, so my general approach to this business and other roles that I’ve had is do a 360 degree of assessment. Understand what I’m coming into as your incoming CEO and so there, and I see three or four prongs of understanding. One is what is our business plan and direction, how we got to where we are, getting a good, get my arms around that. Understanding the financial side of the business, I understand you’re in the middle of hiring a CFO as well, so just understanding where we are financially. But I think the bigger component to answer your question directly Commissioner Holcomb is understand the culture, how do we make decisions, what, what’s the day to day operating environment like between employees, their leadership, how do we get ideas on innovation from employees and embed them in our plans. And again I’m not assuming it’s right or wrong coming in but during that first 60 day period or so I want to get a good feel for where we are. I talked about it earlier, about developing that vision and strategy with the Commission going forward, a big component of that is our culture. So if we, if we saw the need or desire to make revisions to that through my recommendations, talk about it with the Commission, the leadership team, and if we thought it was the right thing we’d set in a revised direction, recast division if necessary and strategy, how we’re going to get there. And then visiting our core values, what do we stand for, what are our thoughts on the work environment, how we deal with each other day to day as employees, look at employee engagement, trying to understand that. I don’t think you need to do an exhaustive or an expensive survey to do that but just to kind of get a general feel for how our employees feel about coming to work every day as part of our hiring and retention strategy. And then put that together in a package, okay if this is our vision, our strategy, how
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): we’re going to get there, what are our core values and what do we stand for and then that rolls out into, that rolls out into the employees. You know it becomes part of the communications, this is what’s important, this is how we expect each other to conduct ourselves when we’re doing business with each other. And more importantly, as leadership team, make sure we’re modeling those values every day in our communications, the decisions we make, and how we deal with each other. The thing I do a lot, you know in roles where I’ve had big organizations is go out and about, meet with employees. I like to do skip level meetings where I sit down, a couple levels down in the organizations, three, five, seven employees, just kind of get feedback. As questions like how can I make, do you have any ideas to improve the business, how can we make your job easier, what’s getting in the way of that, and do you have any ideas that will help us improve the business. Yes, you kind of take down those data points and over, you know, a couple three, four months of conversations with people at all levels, you get a real good picture of where we are and where the opportunities might reside.
Mr. Bunch continued, but I would bring the general approach to how, the businesses I’ve run have become successful, as I’ve mentioned to some of the Commissioners yesterday. I spent approximately 28 years with Baltimore, Gas & Electric, but the last seven or so have been part of the Exelon family of utilities and they are in either the top quartile or top 10%, top decile of performance in about 44 or so of the 47 areas that we benchmark. And Commissioner Griffith asked me questions about what I learned in a role and the CEO that I had been working with over the last couple of years, and it was observing how he challenged a team of pretty big company CEO’s to get there collectively, how he led that team, challenged them in a positive manner, and made sure that the business plans delivered the results that they said they were going to deliver on with the money that was entrusted to their management. So that’s what I would bring in terms of the experience, and then I would transfer that through the leadership team and the organization, go back to the values, how do we make decisions, and what we reward in terms of performance as well.
Commissioner Holcomb stated thank you. I’ve got two more questions, but if any of you want to elaborate on that I just want to…
Commissioner Britz-Parker stated could I ask a question?
Commissioner Holcomb stated yes.
Commissioner Britz-Parker stated thank you for being here Mr. Bunch.
Mr. Bunch stated thank you, appreciate it.
Commissioner Britz-Parker stated our other candidate is coming from also a long association with an electric utility but it’s in the governmental arena. So you’re different in that you’re coming from the for profit arena, so and what you were dealing with absolutely, like you’re not feeling in a lot of respects your electrical experience, you’re like the smartest guy in the room. I want to feel comfortable, and have our other Commissioners feel comfortable that
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): you could make that transition, you know from being like really among the elite with you know really big organizations to dial it down to an organization this size and, and be able to deal with this body being the governing body, having a proper relationships with the City, reaching out to the appropriate places to get us involved, to accomplish our vision. Could you just address, you know, I, the last thing that I would want for you to come on board and be bored, you know, so, it’s like address that. How you think that you could make that transition from really good, really in the upper echelon of electrical performance it sounds like to me, to the Utilities Commission here in New Smyrna Beach.
Mr. Bunch stated okay, thanks, I, I understand why you ask that question maybe, you know, why this job, why this town? I don’t have that concern personally, I worked my way up through the industry. I, you know, I went to school, college with a family, worked hard to get there, spent time in the military. Yes, I am currently with a really big organization that is high performing in the industry, I’ve learned a lot from that experience, but I’m also at a point in my career where I want to get back closer to the community and closer to the employees and the organization that I lead. In terms of stakeholder relationships, when I was regional director of ops. at BGE I worked relentlessly to develop and maintain positive working relationships with Baltimore City, which was not always an easy thing to do. Folks have come and gone, department heads have come and gone, but the ones that have been there quite a while and were solid department directors we developed positive relationships with and still have them past my time in those roles. I believe, in speaking with the Commissioners, there’s an opportunity to establish, confirm that good working relationship between the Commission and the City. And I think in that 60 day period, in addition to the 360 degree just kind of general review and observations I’d do in the business, one of the things I would want to understand is how are things going with the City and meet down with, meet with some of the key holders, introduce myself, to start those relationships. And at the same time I’d like to do one on ones with the board of Commissioners, not interviewing you but understanding your perspectives, where we’ve come from, where you think there are opportunities to take the business and also understanding what you’d like to accomplish as a board or Commissioners. So I would transfer that experience from the industry through the leadership team and employees and I don’t have, I don’t have concerns about becoming bored. I think every job I’ve ever been in I’ve entrenched myself in with a really solid work ethic and I’ve given it my all and I would expect that if I had the opportunity to lead the organization you’d hold me to that and measure me by my results.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated Commissioner Griffith you had something?
Commissioner Griffith stated yes sir, Mr. Bunch we talked a little bit yesterday with respect to being an operations guy and then going through Baltimore Gas & Electric and Exelon becoming an assessment guy. And different behavior, different requirements, and so on and so forth, and six individual units you know within Exelon, you were assessing all the time. How would you take that learning that you had and apply it to here?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated okay, so just repeating that back, how would I take assessment, the learnings rather from assessing a number of companies performance and apply that here.
Commissioner Griffith stated yes, with your head or operations experience, you have years and years of operational experience. All of a sudden you go into a staff role with a, with, you know the parent company so to speak.
Mr. Bunch stated right.
Commissioner Griffith continued, different requirements and get clear on accountability and then how best can you use that knowledge and experience and apply it here.
Mr. Bunch stated I think that was, as I was looking at information about the Commission and thinking about the interviews, I looked at your five, ten year plan. Every business has to be run by a scorecard, we need to make sure we’re measuring the right things. In my experience of leading the overall assessments in six of the companies that I work with, it was in the area of reliability for the whole electric utility and that drew how they spent all of their capital and maintenance dollars. So when they put together a business plan, let me back up, at the end of each year we would do a reliability assessment, in the February timeline or so because it takes a month or so to sort of finish up all your data collection. But we’d look at all the elements of performance for the business and identify gaps compared to goals, look where we spent the money, understanding if its having the right impact, and if not, in our case we would start to build the budgets for next year around the May, June timeline. So we had two or three months to go back and address those gaps. If company A was spending too much here and they overshot the target, maybe you’d tell them to back off and deploy some of that capital over to company B. One of the companies by way of example, a couple of months ago we saw one of the companies reliability hadn’t been keeping up with the two top ones and it was because they weren’t in the last three or four years deploying as much money in a specific area of capital improvements. Again these are public companies so I won’t comment specifically but as a result in the assessment we did this year that fed into their inclusion in their capital long range plan for a significant amount of money to install a bunch more of equipment to improve that area of reliability over the next two years specifically, but it’s part of their five year plan. That’s, that’s how I operated and I went from the operations to that more staff or board room type role and to be honest with you, I’ve been there, I’ve done that, I’ve done a good job, I’ve been recognized for it. I really would like to return to a business where closer to leading the operations, closer to our customer base. Does that answer your question sir?
Commissioner Griffith stated yes, and if someone wants to extend that feel free to do so.
Commissioner Holcomb stated the, one of the things that I, you know is tough for me coming from the private sector and sitting up here and trying to evaluate how we focus our vision and what our goals are. You know there’s a difference between our shareholders which are ratepayers, they define success I guess because we put it out there every month is how low
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): can you keep my rate. What I, in business I look at return on investment, you know that’s for me there’s, they’re two different completely results. But the one thing that both businesses need is investment and I look at this as a business. I love the fact that we’re exclusive from the City because, but the City, the ratepayer does own this. So as me as a ratepayer or participant in ownership, if I’m going to own something I want it to be really good and I want it to run like a business, I want it to perform like a business, and I want it to provide the best service and best, you know, return. Now one of those things that we do here, again they, they promote this low rate so you have a culture of success is a low rate, but there are the conversations of hey, my power’s out quite a bit on beachside, you know the issues that we do have. So how do you balance that, how do you, how do you manage the, if the end result of the customer or the ownership is a low rate, how do you communicate to them investment and running it like a business basis, just self-serving, low rate to the consumers. So how do you define those two or separate the two?
Mr. Bunch stated interesting, interesting question and I think there’s a general approach that I would talk about with the Commission. So I mentioned some of the companies I’m with being in the top 10% of industry performance for electric reliability and I think last year the top company of those had less than .7 interruptions per year per customer which is an industry metric called SAIFE. That is, that’s a top level performance, it took a good bit of investment to get there. Now I had this conversation with one of the Commissioners as well yesterday, what are the local community’s needs and expectations? The areas I operate, and we have rural areas, so the house I lived in previously my neighbor was a 230 acre farm, on the other side was a tree farm. They had very differing expectations than a business customer downtown D.C. So what are the general community needs and expectations for reliability, and that’s just one thing, but let’s say there was a gap, let’s say wherever you are today in those areas isn’t where we think we should be or where they’d like to be. Let’s challenge the team to put together a plan for improvement, and as I mentioned in my current role, I spend a significant amount of time there on the electric performance side of our business. That’s going to cost money with a potential impact on rates and is there an appetite to go there. If not completely there, is there a middle ground that would get us to a level that is both improvement and also in align with our customers’ needs. And I think that’s an area where day one, just based on the discussion and I had and the prior questions, you know I, that would be a sweet spot to work with the leadership team on working through.
Mr. Bunch continued, but again, I’ve looked at the financials, there’s a good solid plan of a lot of things that the Commission wants to do in the next ten years, five years, and good building blocks to work off of. And what I would do again is have that discussion about where are we, where do we want to be, and all the elements of our business, not just electric reliability, but water as well, and then validate that long term plans either get us there or we need a shift. And part of that’s the rates, and you know I’ve looked at your financials, electric’s about 69%, 71% of your revenue, same you know that you give back to the City in that reimbursement, I guess it’s $2.6 or $3.5 million, comes from the electric side of the business, the balance from water. I would that’s, I would view that as the shareholder returns to the City but again in this case it’s, it’s a little different in that unless I’m told my role wouldn’t be
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): to maximize that because that would be well let’s charge people more, for what reason. Well we don’t have a shareholder or Wall Street, we have a City that we’re providing money back to based on how much we’ve invested and how much it costs to run the business. So I would, my bent would be focusing on accomplishing the mission and the targets, developing the financial plan that’s required to support that, and if at the end of the day that required more money to be spent, then working with the team to figure out what the implications of rates would be and the Commission to get alignment on where we think we should head with that.
Commissioner Holcomb stated that, I mean it answers it. For me it’s an awkward, you know, because you have to it seems, and I’ve been here for three years so I don’t pretend to know a whole lot but it’s, we kind, you know we set the expectation of success as a rate versus as a, all the standards you just explained. Now I’m a citizen I don’t necessarily know that I really care about all those things you just explained, I just want that best rate. So we have to communicate that to them without the, the investment, we’re looking at a $100 plus million investment over the next ten years. If you’ve looked at our books we don’t have $100 plus million sitting on the books. We sure as, we don’t have $100 plus million in our revenue projections, so how do we pull that all together, and that’s kind of you know well where do we go because there are, there is going to be some pain felt, there’s going to be some investment to achieve that. You’re not just going, we’re not just going to continue status quo and achieve that plan, so how are we going to get there. I mean that’s the, the buy-in, because again we’ve created a culture where we just hang our hat on low rates.
Mr. Bunch stated a couple of potential ways you can achieve that and I’ve seen how it’s been done all over the country in different ways in the public sector but sometimes I’ve seen rate trackers get added based on approval of a modernization plan. And again this, we talked about assessing, identifying gaps, developing a plan of improvement, how do we get there, and about how much is it. What I’ve seen done elsewhere is companies package that to say okay we think over the next five years we need to spend x million dollars to achieve this outcome. We could, whatever you call it, electric grid modernization, reliability, improvement plan, I don’t know what acronym you want to attach to it but something that when explained to the community in a public setting is going to make sense to them. It can be, it can be dealt with in rates one of two ways, if it’s approved in principle going forward adjustments to the rates could be made as two things happen. As the money gets spent and the improvements begin to be realized incrementally or as a backward looking at the end of this x year period we’re going to assess rates on what we’ve spent. Now you just said we don’t have $100 million cash sitting on the books ready to spend, so I think we have to think about a former approach, that is if we come up with a reliability improvement plan, how much is it going to take, how do you package it, what is the impact on rates, and then as a Commission discuss the rate alternatives that would accomplish that. You may want to think about the tracker that I mentioned that as you spend the money annually you ratchet rates incrementally that keeps the Commission whole, able to pay off the debt balance sheet, and precludes you from having to borrow additional money for means that you wouldn’t normally do. That kind of, just my off the cuff question, I don’t know, to say…
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Holcomb stated no, and it’s, I get where you’re going with it, it’s again it’s just we’re at the, basically the doorway to this plan and there’s going to take a, you know somebody to navigate through it financially and obviously by what’s the most important. Like you spoke to that in your evaluation process of identifying which is first to attack, so I get that.
Mr. Bunch stated I think the same holds true for the water side of the business, in fact probably more important because it’s a long, you know your capacity adequacy is a longer term issue there in most cases. You can build substations pretty quickly if you have transmission system ties available but things like water treatment plants, that’s a little bit of a longer term proposition and I think you know what is that strategic plan, what’s the timing of the need of the spend, and what is the relationship to our spend and the rates. So I would task the CFO and that organization to work with the engineering side of the house to put together the what ifs scenarios. I always like to use the term guard rails, if these are the extremes, the high end and the low end of the spend, what are the results and the financial resources required to get us there and the employees if necessary. And where do we want to land, it’s not always on one end or the other, sometimes it’s in between because of what we can afford or our customers want to support, and then we can work through what the implications would be. I would, the rate implications, I would spend, I would challenge the team to spend more time forward looking than backwards. What do we have to charge today based on current money we’ve spent to date, and hopefully you know the current rates are there, I know there’s a lot of pride in having low rates relative to the folks around us and competitive with other municipalities. So I’d be sensitive to that as well, but I actually like the fact that the Commissioners built the business people. I think the questions you’re asking are based on your experience in starting, leading, running businesses, either with your own money or whatever you had to start it. I would treat my role as a business owner. I think I mentioned yesterday to some of the Commissioners and I’m pretty frugal, I’m not going to waste my own money and I wouldn’t be spending the Commission and ratepayers’ money frivolously either.
Commissioner Holcomb stated thank you.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated yes, thanks, Mr. Bunch good seeing you again. Tell me how you would make sure, ensure that this Commission or our Utilities Commission kept a good working relationship with the City, i.e., the City Manager, the Mayor. Can you keep this rapport, a lot of communication back and forth. What would you do specifically for that, to ensure that.
Mr. Bunch stated I view my role as CEO is to be the chief ambassador to the outside world. As I mentioned in that first 60 or 90 days, Commissioner Davenport, I’d like to meet with some of the key folks in the City, the City Manager, start to build and establish that relationship but like any other stakeholder periodic communications on things that are important to the business and them, are things that I would try to make part of my schedule.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
I think as a CEO I’ve got to set aside a portion of my time personally to stakeholders, including the Commission and the City, but, and that’s to seek input, to provide feedback and update on issues that are key to the business. Whether you know it’s the meeting with the City to talk about our ongoing relationship, but I would just schedule periodic meetings. I don’t know if it’s a couple times of year, whatever that frequency would need or end up being but maybe early on it’s more frequent than later but because we’ve got that relationship with the City and you know we’re linked at the hip. I would just look at them as a key stakeholder and set up ongoing communications with the City Manager and other key folks if necessary. In my prior role I met with the Mayor of Baltimore City, I had a good working relationship with the President of the City Council, numbers of department heads there and as I mentioned earlier my successors have maintained them where they were positive and where they weren’t positive those people left because they were asked to leave or were not elected. But I would just make that part of my external relationship building and maintaining.
Commissioner Davenport stated what factors will most influence you to accept this position. What factors are important to you to accept the position if it’s offered?
Mr. Bunch stated I think, think first and foremost we both have to feel it’s a good fit and that’s why you’re asking the questions today. I’m, I’ve grown to observe that I think the area has a good feel to it, the culture is one where the Commission wants to make a difference in the community and people want to do the right thing, and that’s the kind of work environment I like being in. In terms of influencing me, if the offer’s made my way, I don’t know who, normally in a hiring situation there is a person, considered your primary point of contact, and sometimes there’s some final questions that need to be asked but I don’t, I don’t know that I can answer that question fully unless somebody was to say Mr. Bunch would you take this position and here are all the terms and conditions under which we’d like to offer it. You’re business people, I think you would understand that component of it, but the thing I would just, you know, kind of fly that point is just to let you know that I would bring really good industry, great work ethics to the role, and I do a really good job of working with employees to develop and move the culture forward to where we’d like to take the business. I’d like to know that that’s what the Commission wants from me. I think the worse fit would be you’re listening to me, you’re hearing me out, you hire me and then day one as I start to talk about where I would like to take the business you say what are you thinking about? Why would you, what would make you think that we would be even interested. And I think just kind of general alignment on, you know we’ve been through the conversation, offering the role, going forward these are some areas we’d like to talk to you about once you’re on board; that’s just some general feedback that I have. Thinks like salary, benefits, you know I don’t think we need to be talking about in public setting, but those are things we can discuss with…
Commissioner Davenport stated what would you specifically do like events, or where, the morale of the employees is excellent here. But what would you do to even help employees more with the employees starting to more engage, to get birthdays or Christmas parties. What would you do to bring the fun to the table if you will?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated I like to have fun at work, nothing worse than going someplace and spending more time with most of your family members and not enjoying it. That is not what I’m about, so things, you know planned events in the business, whether it’s a holiday celebration or somebody’s retiring or its service anniversaries, I’ve always liked to recognize service anniversaries. I can remember being at events where you have within a service center four people that had like a 25th anniversary within a couple weeks of each other. You know that’s good cause for sort of an impromptu, the manager to do a cake or a lunch, something that brings folks together. Recognizing significant contributions, somebody or a group made, this group, this area has been working on our reliability improvement plan and they got, they finished the project on time, they spent the money per budget. Let’s have a lunch, let’s do something to celebrate it, those aren’t expensive things to do. And I was talking to one of the Commissioners yesterday people don’t, people don’t fire the company, they typically leave because they’re disgruntled with either the person they work for, the people they work with, the environment. And a big part of that can be how do I, how valued do I feel coming to work, and making sure we’re recognizing people. Whether it’s for their contributions, tenure, or you know things like that, and holiday celebrations throughout the year that would make sense. We’ve done cook outs, all kinds of things, service center field guys love to do barbecues. My prior role, it would be usual for around this time of year either do it themselves or have a caterer come in, do an afternoon lunch kind of at the end of the day. Not spending a ton of money, not taking a big part out of the business, but it gives them a little break from the routine and builds camaraderie.
Commissioner Davenport stated thank you.
Commissioner Britz-Parker stated can I ask another…
Chairman Biedenbach simultaneously stated Commissioner Griffith did you have another?
Commissioner Griffith stated no, I’m good.
Chairman Biedenbach stated sorry Commissioner Britz-Parker.
Commissioner Britz-Parker stated that’s okay. Then stated to Mr. Bunch, I asked you this question yesterday but I’m going to ask it again just for the benefit of anyone who might be listening, why us? You know you’ve been with the same company for I think you said for all intents and purposes, the same company for 28 years?
Mr. Bunch stated 30 years.
Commissioner Britz-Parker stated okay, so this is a big change to a smaller venue so to speak, and you know, why us, why New Smyrna Beach, why now?
Mr. Bunch stated yes, we did discuss this briefly yesterday, so I’m at a point in my career where I’ve worked hard, saved hard, started at work with the company I’m with at a pretty
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): young age. I can technically leave there, retire, and move on to other things and I’m interested in this area because I want to work in this area. I could be sending my resume to FPL or Duke, I don’t want to at this point in my career go to work for another big company like the one I work for. I like this whole central, northeast Florida coast culture. I think I told you, my dad’s family is from Jacksonville, the Amelia Island area. I’ve lived in this area for a long time, and it’s where I came as a kid in the summers. Still have a lot of family here and vacation here, I have a house not far from here, it’s also in Palm Coast. My intentions several years ago were to establish long term roots in this area for the remaining days. And I am way too young to retire, I see a significant working period in front of me and I want to become part of an organization that’s closer to the customer and community for that time. And I think I can, I think I can bring a lot of things to the table for the community in terms of where we go in the future with the Commission and the services we provide.
Commissioner Britz-Parker stated thank you.
Commissioner Holcomb stated can I add on that, you mentioned that home is, or area of home, family, the pin I guess on the map right is Jacksonville, Amelia Island which is north of us. What would we, what would you say to alleviate my concern that you come here because that closer to home isn’t available. Say, say this opportunity became available in Amelia Island, this is where you want to come, it’s not a stop on the way to really where I want to be.
Mr. Bunch stated let me alleviate that so, I don’t want to work for any of the other big utilities that we just talked about. If I wanted to work in an area outside of here I would be approaching them specifically, I know executives in some of the other utility companies, some of them actually came from the company I work with. I don’t want to work in that area, this general vicinity is where I want to work. I had said that several times to several people and I’m interested in this Commission because I feel like you have a unique position with the community here that I can bring value to the business and our customers for. So look at my resume, I am not a hop, skip, and jump job hopper. I have had a significant number of external searches and companies come to me over the years and I haven’t pursued that because you know whether or not those days, maybe my son was in middle school and we didn’t want to disrupt his schedule and move him somewhere else or… I tend to be more of a homebody, stay in the general area kind of person and if I looked at a resume that had fifteen jobs in the last 30 years I would be really worried about the question you just asked. But I think my history and what I’m saying is different to alleviate that concern if it does exist. I’m not trying to add a CEO title to my role to go somewhere else as a CEO, let me be very clear about that.
Commissioner Holcomb stated okay.
Mr. Bunch stated if that’s, if that’s the concern of the Commission I’m, I am not talking to you for this role for that reason.
Commissioner Holcomb stated thank you, appreciate that, it does clear it up for me.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Chairman Biedenbach stated Commissioner Davenport.
Commissioner Davenport stated yes, I asked you this question yesterday, I’d just like feedback on it again. What would you specifically do in the first 90 days if chosen for this position?
Mr. Bunch stated I mentioned earlier the three, like a, I call it a 360 degree assessment. I do that in every job I go in, I don’t take a different approach whether it’s a, you know fifteen person unit, let me be hypothetical, or a company like this. But I think it’s important to assess where we are today and that’s without bias. I think I mentioned earlier, you know the worse thing the Commission could do is have, hire somebody for the CEO role that comes in and said I looked at your plan, I know what you need, and this is where we’re going to go. I think that would be a prescription for disaster, if not a train wreck. So in that 60 to 90 day period I’m going to do an assessment of the business, looking at our business plan, what have we said we’re going to do, how are we performing towards getting there, what’s the financial situation look like. If you had a CFO on board, I’d be meeting with them pretty frequently to get a good understanding of the financial picture, making sure they and I have a good level of comfort with how we’re situated to accomplish the plan. I want to have a good assessment of the leadership team that I’m coming into. In my organization I meet monthly with my direct reports, I have one on ones. How are you doing, how’s your portion of the business doing, if we’ve got improvement needs in those areas I’m going to give them coaching and feedback. But you know assessing the leadership team to make sure we’re in good, good position to accomplish everything we want through that team, because they’re a critical part of it. You know at the end of the day the Commission and Mr. Bunch aren’t going to be the ones that get the work done, it’s going to be the organization and my leadership of that team to where we want to go. So I spoke to the business plan, the financials, the leadership team, and then the, the fourth leg of that stool which I mentioned briefly earlier, was understanding the culture. Because if we’re not where we want to be or need to be, that would be part of recasting the vision and those core values or behaviors that I spoke to earlier. But I see those as the four big components internally and then the other thing that I mentioned, getting to know the Commissioners better, doing one on ones with you individually to make sure I understand your perspective of our business, how we’re doing, where you think we need to be, and probably more importantly to you is what role do you want to play, you know historically versus going forward in helping move the Commission forward. And then lastly establishing the relationship with some of those external stakeholders. So part of it’s internal, I’m going to say probably 80%, and then 20% of it is probably external between Commission and external stakeholder relationships. But I think I that period, whether it’s 60 or 90 days, as the new CEO I’d have a good feel for where we are and then be in a position to talk about where to go in the future. But as I was joking about earlier, you know I think the train wreck example would be for me not to do something like that and just assume coming in day one that Mr. Bunch knows where the business, Commission needs to go and the board membership, and that, that would not be a good recipe for success. I’m very deliberate, I’m a practical leader, I am not somebody that sits in the corner and looks out the window and not interacting with employees, you know I’m very out and about. And I think I mentioned those skip level
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): meetings are part of assessing both the culture and the leadership team as well. So having a good deal of interaction with the employee base to learn what they’re about and what their concerns are because they’re a big, big stakeholder in the process.
Commissioner Davenport stated thank you.
Chairman Biedenbach stated Commissioner Griffith.
Commissioner Griffith stated just one more.
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated Mr. Bunch, yesterday we talked about the importance of getting together, started yesterday with the process, and then of course here for today, and we kind of described it collectively together as a match, trying to make a good match. And it sounds like earlier with respect to there’s been some good answers, so if you’re feeling comfortable with the match from your perspective, that’s important for us. And assuming it does come together, then what would be important to you with respect to with transition team, or transition process?
Mr. Bunch stated I appreciate you asking that, I think that’s from my seat that is something to consider. In terms of a transition team I believe, I can’t remember which Commissioner but somebody said Mr. Mitchum would be on for some period of time, maybe through the end of the year. I’d like to work out a transition timeline, if there’s an opportunity to have overlap where we can work together, I’d love that. I think we’ve all probably walked into roles before where somebody left abruptly and you’re trying to pick up the pieces. I’d rather not be there. I’d like to work out a transition timeline that could work for both of us so, so I’m flexible. I guess that’s what I’m saying. Somebody asked the question yesterday, I think it was Commissioner Davenport, and I, just based on that I don’t think I answered this too well, I said just based on my understanding of the end of the year being Mr. Mitchum’s desired departure, I said well maybe mid-to-late fall. I don’t know, so the October, November time frame, I could do that. November would be great, it would give us a period of a couple months of overlap. Whether or not you’re here full time Mr. Mitchum I don’t know but we could, I don’t think we need more than 60 days we’re working in some sort of partnership timeline. I think at that point we’d probably get in each other’s way, but I’m flexible.
Commissioner Davenport stated I think I answered that for Mr. Mitchum yesterday, sure, he’ll do it.
Mr. Mitchum commented I’ve got a lot of fishing to do, but I can wait.
Mr. Bunch stated I can appreciate that. Does that answer your question Commissioner Griffith?
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Commissioner Griffith stated yes, it does, that’s…
Mr. Bunch reiterated I’m flexible, I answered the question similarly yesterday but I don’t, Commissioner Davenport, don’t want you to think that was a hard and fast timeline. I’ve got some flexibility maybe that others don’t. It is known, because of the freedom of information act and the press release that was put out last week, it’s known by my current company’s leadership that I’m having this discussion with you as well.
Commissioner Griffith stated thank you Mr. Chairman.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated thank you.
Chairman Biedenbach stated one question.
Mr. Bunch stated yes sir.
Chairman Biedenbach stated if we were to offer you the job and you were to accept, how long is it going to take you to get down here.
Mr. Bunch stated I think it’s back to the transition, I’m willing to sit down and talk about that timeline but I’ve got the ability to jump back and forth during the time between now and when I’m here permanently as well periodically. I’ve got vacation time, it wouldn’t be hard for me, I’m used to travel so the thought of getting up o’dark thirty like I did yesterday, running to the airport and coming down here, whether it’s for a day or a couple of days or a week if necessary, I could work through that. But whether it’s you know discussions with Mr. Mitchum or the Commission, once that decision’s made we could talk about that, as I mentioned I’m flexible. Obviously at that point in time when my current company knows that I’ve accepted a role, I dare say their lens would be a little different on me at that point in time. They would probably be expecting that. No, I say that in jest because of the excellent reputation, revised to relationship with my current company, I’ve enjoyed working with them tremendously over the years. So there’s a good relationship there, it would not be leaving with hard feelings or burning bridges.
Chairman Biedenbach stated you need a month for up there, a couple of weeks, a month?
Mr. Bunch stated maybe I didn’t answer the question well but I guess it’s, I sort of saw it more based on what’s that transition timeline. If whatever that works out to be, is it November 1, is it October 1, I’ve got some flexibility here.
Chairman Biedenbach stated okay, all right.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Mr. Bunch stated but if you need time prior to that, I can work out days or a week if necessary to fly down.
Commissioner Holcomb stated right.
Chairman Biedenbach stated you’re flexible.
Mr. Bunch stated right.
Chairman Biedenbach stated okay, all right.
Mr. Bunch reiterated I have some flexibility.
Chairman Biedenbach stated Commissioner Davenport do you have any more questions?
Commissioner Davenport stated no sir.
Chairman Biedenbach stated Commissioner Holcomb?
Commissioner Holcomb indicated no.
Chairman Biedenbach stated Commissioner Britz-Parker?
Commissioner Britz-Parker stated no.
Chairman Biedenbach stated Commissioner Griffith?
Commissioner Griffith stated I’m good.
Chairman Biedenbach stated Mr. Bunch, thank you very much for coming, thank you for interviewing with us, we appreciate it very much, best of luck to you sir, and we’re going to let you go.
Mr. Bunch stated thank you, could I make a quick closing comment.
Chairman Biedenbach stated yes, I’m sorry, I, not thinking, do you have anything to say to us.
Mr. Bunch stated I thoroughly enjoyed meeting everybody, the time I spent with you, with the Commissioners yesterday. I had a conversation with my wife last night, let her know that I had felt like the conversations went really well and I struck a good cord in establishing rapport with the Commissioners. And as I mentioned earlier, I would be coming to this with the approach of like a business owner so I appreciate the fact that the Commission is constructive with people that are business owners, folks that started businesses, and I think that’ll, if I was CEO, help us establish a relationship where you’re challenging us to move the
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.): business forward, the participants in that process. And the question Commissioner Holcomb asked about how do I have comfort with this area or that area of the business, my role would be as CEO to make sure that I’m translating, whether it’s water or electric, technically how we’re going to do, what plan we’re going to build and execute to take the business to the next level. So I would see that as a key part of my role as your CEO and I would look forward to establishing a relationship with the Commissioners as a positive team and participants in that process. Very, as if I didn’t say it earlier, I’ll repeat myself, I’m very interested in this Commission, very interested in this area, and the reason we’re having a conversation today is because of that. I’ve worked with very big companies at this point and juncture in my career, I’m interested in getting closer to the community but closer to the operations and I think this Commission provides this potentially a unique fit to bring those together. Not in a desperate situation, got a very good role with the company I’m currently in, I’ve been with for a long time, and you shouldn’t have any concern that Mr. Bunch is going to jump ship a year down the line because he’s got a CEO title and he’s really using us as a mechanism to job shop for something bigger and better elsewhere. I’ve been in that environment, I appreciate it for what it is and at this point in time I’m looking to go in a little bit of a different direction that I think collectively we can go as a team if I’m selected for the role. So thank you for your time, I really enjoyed it.
Commissioners Britz-Parker stated thank you.
Commissioner Griffith stated thank you, well said.
Chairman Biedenbach stated whoa, wait a minute, Commissioner Davenport wants to redirect.
Commissioner Davenport stated I’m sitting here listening to you, thank you. Would you consider yourself a visionary for where we’re going? Do you consider yourself a visionary?
Mr. Bunch stated I have, that’s a strong term, I don’t consider myself a visionary but I have always spent a lot of my time looking forward. My mind naturally thinks where do we need to go and why. From the time I was a kid my father beat into my head, is not the right term but fused into my mind, was if you’re not part of the solution you’re part of the problem. And this was a guy who grew up in manufacturing and you know if at the end of the day he wasn’t running things right, production costs millions of dollars. But from the time I was a kid that was part of my mindset, my thought process, and I have, I spend, I always spend a considerable amount of my time running the business looking at where do we need to go to address our gaps and where do we want to go in the future. So if that’s makes me a visionary then maybe yes, but I tend to think of that more of being forward looking in the way I run a business. Yes, we’ve got to deal with the day to day problems, that’s important but as a senior leader of an organization, for me I think it’s more important about where do we want to go and how are we doing in our path to get there. Make the short course corrections occur along the way, that’s just, that’s the way my brain works, that’s not read out of a textbook or a book, that’s just the way Mr. Bunch thinks.
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(1.b) Joseph Bunch – Public Interview of One of Two Finalists (cont.):
Commissioner Davenport stated thank you, very good.
Mr. Bunch stated thank you.
Chairman Biedenbach stated anybody else on redirect or are we okay?
Commissioner Griffith stated we’re good.
Chairman Biedenbach stated thank you very much again, I think, now we’re done.
Commissioners simultaneously stated thank you.
Chairman Biedenbach stated okay, do you want to take a quick adjournment, well not adjournment but recess, recess for a few minutes until we figure out what we’re going to do.
Commissioners indicated yes.
Chairman Biedenbach recessed the meeting again at 11:15 a.m.
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach reconvened the Special Meeting at 11:25 a.m. by stating okay, we’re back in session.
Commissioner Holcomb indicated Commissioner Davenport was over on the side.
Chairman Biedenbach stated oh, we’ll wait for Commissioner Davenport to come back, was getting a bottle of water. Thank you, I didn’t, you were blocking my view Commissioner Holcomb.
Commissioner Holcomb jokingly commented oh yes, don’t blame my big head.
Chairman Biedenbach stated to Commissioner Davenport no problem. Okay we’re back in session, deal is we have to make a decision on these two gentlemen. Does anybody want to start and lead off on their discussion, Commissioner Griffith?
Commissioner Griffith stated well I think, just take a quick maybe poll as to kind of where people are, still, as a data point versus where we were this morning. And then decide, what that provides us to make a decision and make a motion or whatever we need to do to take an action.
Chairman Biedenbach stated you want to take a poll and not discuss what we think as their strong points, weak points are first, and then take the poll. I’m just asking for clarification so I know what…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated I could go either way, I mean we can discuss first, that’d be fine.
Chairman Biedenbach stated okay, Commissioner Britz-Parker do you want to put some input?
Commissioner Britz-Parker stated, you know, I’m for, I think that maybe each of us could just go through and say if we have a first choice, each person discuss where they’re at.
Commissioner Griffith stated sure.
Commissioner Britz-Parker continued, if they have a first choice, why, and then we really know where we’re at in terms of you know maybe, maybe we might have a unanimous decision at this point, I don’t even know.
Chairman Biedenbach stated okay, Commissioner Holcomb do you have some input one way or the other?
Commissioner Holcomb stated it really comes to, do we want, do we want to write it down, read it, or do we want to individually go because again you’re starting with, you know, after you listen to three of us talk do you, you know…
Chairman Biedenbach interjected, do you change your mind.
Commissioner Holcomb stated right, I just, I think without that, you know I would hate to be, I like straw polls, you put it out there and then you take it and then you see what the results are. If we need dialogue after that, because if it’s…
Commissioner Griffith stated right.
Commissioner Holcomb continued if it’s unanimous or whatever it is, then great, we made the right decision. We’ve had seven, eight hours of conversation, reviewed videos, studied resumes, you know, I was up to 1:30 last night. We had, you know, we had people in our interviews with us to help us, I mean I think we’ve done our homework; so let’s just take a straw poll.
Chairman Biedenbach stated you want to do a straw poll and see what if it, see what the numbers are.
Commissioner Holcomb stated right, yes.
Chairman Biedenbach stated everybody shaking their heads.
Commissioner Britz-Parker stated that fine.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated straw poll?
Mrs. Fisher then indicated, was motioning for Commissioners to speak into the microphones.
Commissioner Holcomb stated okay, I need pictures.
After distributing additional paper and Commissioners voting, Mrs. Pitcher collected the ballots and stated we have a three to two verdict.
Chairman Biedenbach stated tell us who the three are.
Mrs. Pitcher stated we have three for Joe Bunch.
Chairman Biedenbach stated three for Joe Bunch, okay, and two for Reggie Bowlin.
Commissioner Holcomb stated do you want to, you, what I, let’s have dialogue.
Chairman Biedenbach stated I was going to say, now at this point I think we need to talk, and why don’t we start, just, we’ll just go right straight across unless anybody has any… Commissioner Griffith, go ahead.
Commissioner Griffith stated I think the process was well done, I would imagine it might have even been a change the three and the two may be different. But I think that we had two great candidates, it could be okay with either one but I do feel that Mr. Bunch was a better fit, for what we need and what he can bring to the party and help the U.C. go to the next level.
Chairman Biedenbach stated okay, anything else?
Commissioner Griffith stated no, that’s it.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated I also agree with what Commissioner Griffith said, that we had two good candidates, either one of them would do a good job. My personal first choice was also Mr. Bunch, he was my first choice all the way down the line. From the time that I reviewed resumes to the time that we looked at their videoed answers to questions, he has consistently remained my first choice. I think that perhaps in the meeting today in some ways he wasn’t as I don’t know, he wasn’t as folksy as Mr. Bowlin, and I’m going to use that kind of as an explanation. I think that Mr. Bunch was more of sophisticated and a, but the thing that I really like, really like about him is that he is coming from a true business environment versus coming from a governmental environment. Not to say that everything is done wrong in government and that you know, it’s just that I like that piece of it. Because I think that he, I think that that will be a different kind of fresh look, I think that, I think that he will challenge everyone. I think that we will all be challenged to be excellent. And it’s not necessarily the
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): easiest choice but it’s pretty much how I have lived my life, that I was always striving for excellence and I think that he’s on that same road. So he’s my first choice and that’s why.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated well let me just clarify, I’m, I’m the one that changed. So when you look at the resume, Mr. Bunch hands down wins you know the resume, both are qualified. My only concern when I listen to them both talk is that you’ve got, it’s a fit, you’ve got to fit your people. And you know what I like about Mr. Bunch is that Mr. Bunch has gone up and he’s basically above the board room now and all the Mr. Mitchum’s go to him. And my concern is coming out of that hemisphere back down into you know the ground floor. I think if you’re going to change here, and again that level of where you’ve been the last five to seven years is important to implement that. I think they both had great ideas, and again like I said I changed, I was, I was, my first pick I was with you. There was, you know I liked two people, he was one of mine too. So I don’t, that’s my concern, that’s what flipped me was understanding that basically seven CEO’s or roughly, whatever the numbers, that’s where he, that’s what he’s been working with for the last you know what four years or whatever it was, five years. So you know I agree, you know I mean when you talk about pulling the flaps, he’s coming out of a 747 and then we’re coming down to a King Air, that’s how much we’re backing him down. You, the questions, I don’t know if I’m going to get bored with it or I don’t know if it moves fast enough to me until I actually try it out. You know I just don’t know that, I can’t make that determination if I haven’t participated, how could I, how would I know that I got bored. That question was asked, so you guys’ questions flipped me. So, like I said the great news here is for me I feel very confident with both. Those are my concerns, I’m going to put them out there, my votes what it is right now, but I’d like to hear it from the rest of you.
Chairman Biedenbach stated Commissioner Davenport.
Commissioner Davenport stated thank you Mr. Chairman. Well this is really a difficult decision but as we all know here they’re both qualified, excellent candidates. I’m going to go with what Commissioner Britz-Parker said, I’m with the Mr. Bunch, Joe Bunch. And the reason I’m with him is I feel that he, he’s coming from the private sector and he’s been in business. And moving forward and where we’re going, we need to start thinking differently where we have somebody that’s come from not the governmental side but the business side in my opinion and he’s got that. Like you said Commissioner Holcomb, his resume, hands down, his you know electrical engineering degree, 70% of our revenue, 75% is electrically. He’s got the talent, we got the water, backing him up, great people, and it’s just hard, it really is hard, and I like Mr. Bowlin, like you said folksy and he can communicate. But well this is difficult one but I’m going to have to go with Mr. Bunch because of what I’ve just said the need, positive outside of the governmental and his resume.
Commissioner Holcomb asked Chairman Biedenbach, well, who are you going for?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated all right.
Commissioner Davenport stated thank you.
Chairman Biedenbach stated I agree we could flip a coin and the talent, either or, which is good for us. And thank you to the head hunter for bringing us two people that, flip a coin. I like the fact that Mr. Bowlin was down on the beach last night and figured out that there’s some rift between us and what’s going on in the City and the population growth and the explosion or whatever you want to call it, that turned me to Mr. Bowlin. Mr. Bowlin has been my first pick for a while but that cemented it when it was said. All right at this point I think everybody’s explained for those of you who wanted Mr. Bowlin, or for those of you who wanted Mr. Bunch, if you want to put it up there and we’ll have a vote. Mrs. Pitcher, is this where we are, we say we want this guy and work it out.
Commissioner Holcomb stated yes.
Commissioner Britz-Parker stated and we take a vote and then…
Chairman Biedenbach stated okay.
Commissioner Holcomb stated can I just have a, because again…
Chairman Biedenbach stated go ahead.
Commissioner Holcomb stated it’s, if we do a vote, it’s fine, it’s going to pass, we know that. Tell me, I just want to have your thoughts on my concerns and again, it’s a very minimal. The first vote I voted for Mr. Bunch, okay. The only reason that I switched was, make me understand, because in my industry when people get elevated, you know on your way up you’re aligned, you’re running up through there, and then when I try to bring them back. When a guy comes in and says hey, I was a General Manager here and I did this and that and I ran and I did all these things and I try to put him back down into a say a sales manager’s role at two levels down or a level down. There’s that, some do okay with it and some just that, that moving backwards for them just doesn’t work, and that’s, that’s my only concern. Like I said, from the resume, from the experience, from the private sector, from the public sector, he’s got all that, he checked every box on it. The only thing that changed me was the explanation of how he operates now and who actually reports to him, you know that’s my only concern. So I would like to hear you guys’ thoughts on that that like Mr. Bunch.
Commissioner Griffith stated yes, let me try to take that one because I really enjoyed talking with Mr. Bunch yesterday and his response today and felt he was a better fit for us. And here’s where I’m coming from, he’s an operator, he’s an operator kind of guy, he’s a business guy. And echelon put him into another role, a staff role, an assessment role. So he’d been doing assessments with the six utilities companies over the last several years. He wants back in operations, he told me that yesterday.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated okay.
Commissioner Griffith stated and that made me feel good because you wondered would someone want to come here and have it be a launch point to go somewhere else. And he said no, I want to get back in operations and I want to come back to Florida. So…
Commissioner Holcomb stated and like I said, I didn’t hear that, that wasn’t, that was not expressed in my case.
Commissioner Griffith stated no, right, I got into that with him a little bit yesterday and then that’s why I asked him again today about operations you know versus staff. And he reassured me that he really wants to get back into the operations side which is running his own show and making it happen and obviously providing the leadership and the direction and make a commitment here. I felt that stronger today than I did yesterday.
Commissioner Holcomb stated okay. Commissioner Britz-Parker I’d like to hear your thoughts.
Commissioner Britz-Parker stated the same thing that Commissioner Griffith said, because I had that conversation with him yesterday also. My gut really is that he, because he was coming from the private sector in a company that was publicly traded, I think that he is better with the numbers, I think that he’s a better financial guy. I think that he will be able to pretty quickly make a determination if our new CFO, our new Finance Director, he’s going to be able to determine pretty quickly if they’re worth their salt and he’s going to hold them to the fire and know how to do that, and I think that’s a real big part of it. You know and I think, I mean I think he’s been living on an airplane.
Commissioner Griffith stated yes, that’s right.
Commissioner Britz-Parker stated and, you know, I can relate to that because my husband was on an airplane and you know you do it because here’s your opportunity and it’s really hard to turn down an opportunity like that, but certainly you get to a point where you’re like I don’t really want to do this anymore. So, I, he convinced me that he’s real serious about this, he’s not, I mean neither of them, they’re 28 and 31 years with the same company.
Commissioner Holcomb stated right.
Commissioner Britz-Parker stated okay, they’re not going to be jumping ship, I just don’t think that that’s their personalities at all. And my gut is that Mr. Bunch would be here for a long time, and you know I don’t think he’s necessarily the easier pick. You know I think in some respects the transition might be a little bit more difficult for everybody with him because he’s not coming from a government environment. So that’s going to be different, but I’m up for that, you know, I just think that he’s going to challenge us, he’s going to challenge
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): us, he’s going to challenge everybody. And you know I’m ready, it’s just a, the search for excellence and I think that that’s kind of inherent in the kind of guy he is, so.
Commissioner Holcomb stated and I like I said, the qualifications for me are, it’s not that, I just, get, you know I use my own experiences in trying to come back from the, the top. And again, last night when I was sitting there, you know I just kept coming back to you know he’s just the most qualified. Like I said I was up until 1:30, I kept going, bounce back and forth, back and forth, back and forth. And you’re right, one had more personality, more of a better aura in the room that he carried, but the one thing that I just kept coming back to last night, the other guy’s clearly, his experience, he definitely has that. So you know we had just taken the vote at 1:30 last night we’d have been good.
Chairman Biedenbach stated Commissioner Davenport do you want to put your two cents in since you were in Mr. Bunch’s corner.
Commissioner Davenport stated yes, I’ll follow up on what Commissioner Britz-Parker said and Commissioner Griffith said as far as his traveling. I asked him why he was leaving a business after 28 years and he said that when I took this role they told me it’d be like 25% of the time that he’d be in his work traveling. And he said it’s turned into 50% to 75%, and it’s a lot of traveling and he’s ready to, just like to find, like he said an organization that he can run and take it to another level. We’ve got some challenges ahead of us and this guy, he’s definitely qualified to help us get there, and he’s definitely qualified to challenge us, I can see that. But, and his, I know one showed, you know Mr. Bowlin had a little bit better aura if you will or communicated and as you said folksy but good, but still that’s Memphis, Tennessee versus you know Indianapolis, Maryland. But still he came across good and I think he’d be a real good fit. My biggest concern has been also a lot with the other, the financials, but the employee, how are the employees going to react to which one of these two people. So I’ve got a, I feel real good about him.
Commissioner Holcomb stated so that didn’t come up yesterday, just to give you a heads up, I had no idea the guy was flying at all, like I thought he lived in a place, he went to a new home, and that’s where he’s working just like Mr. Mitchum’s working. I pass him coming down the road, as Mr. Mitchum’s coming in, I’m going out. I had no idea that the guy was flying that much, that, I’ve hired more people, more good people trying to get off the road than I have probably, for that reason. You know people in our industry that have gone to work for a vendor and then they don’t just work in Orlando they go to, you know, they’ve got the southeast region and it’s a miserable process, dealing with airports and all the things. So I didn’t even know that existed. In the spirit of debate, you know like I said, that’s why I wanted to talk about it. You know I would move, and again I think it’s important that ever who we hire we do it unanimously, and I would move, you know, not knowing the few extra things from your own interviews, I would move over to Mr. Bunch. So that’s my two cents and then however you…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated let, let, as most of you know Rick Hawes was with me yesterday because I just didn’t feel comfortable being by myself. Mr. Hawes and I discussed this after we met last night and Mr. Hawes said to me that Mr. Bunch was well qualified, but it is going to be the rougher ride in the transition period than with anybody else. He, the way he’d run, and he said something about KPI or KP something or another which was a management style or whatever.
Commissioner Griffith stated key performance…
Commissioner Holcomb stated key performance index…
Chairman Biedenbach stated okay, and he said it’s going to come out and he’s going to run it by the numbers and he said it’s going to get done but that first year you better saddle up and be ready for a rough ride. He said but it’s, it’ll be all right at the end of the year no matter, either one of them, one or the other, he said it’d be all right but that year is going to be a little tougher transition. I am, anybody else or are we ready to take a vote?
Commissioner Griffith stated we’re ready.
Chairman Biedenbach stated I need a motion.
Commissioner Britz-Parker stated I make a motion that we offer the General Manager/CEO position to Joseph Bunch.
Commissioner Davenport stated I’ll second it.
Chairman Biedenbach stated it’s been regularly moved and seconded, any other discussion? Commissioner Holcomb I like your idea, I will. Mrs. Simmons please.
Commissioner Britz-Parker’s motion then passed unanimously on a roll call vote.
Chairman Biedenbach stated anything else for the good of the organization?
Commissioner Britz-Parker stated yes, we have to…
Chairman Biedenbach stated go ahead.
Commissioner Britz-Parker stated now we need to know the next step, how we’re moving forward.
Chairman Biedenbach stated Mrs. Pitcher, you’re up to bat, but while you’re walking up there. Mr. Cloud, do you have anything to say?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Cloud stated good job. I don’t know if you knew this but quite recently Toho Water Authority was in a search to pick a replacement for Brian Wheeler. Brian’s a very well respected CEO of the water and sewer utility that services Osceola County, the City of Kissimmee and Polk County. It had come down to two candidates, they had a three, two split, the advisors to them said well now that you’ve made the choice, let’s have a unanimous vote to get this off on the right foot; they refused to do it. And watching ya’ll do that to me says that as difficult or easy as it may prove to be, ya’ll are going to be in there helping. And I think that that’s, that’s great, that’s exactly what I hope would happen, that you would make the choice based on your concerns, not from any outsider influence, and I salute you on making what I think was a class act move at the end, to vote unanimously, I think it’s just going to make it that much easier.
Chairman Biedenbach stated well, we’ve got a couple people that are cycling, that might not be here next year for the rough ride. I hope both of them decide to come back with us – Commissioners Holcomb and Griffith. Mrs. Pitcher, you’re up.
Mr. Miner addressed the Commission and stated Mr. Chairman, Mrs. Pitcher has asked that I step up so I am. First of all congratulations on an incredibly well done process from your staff, and the other staff to the Commissioners, deliberations and your process; I applaud you. I see a lot of these and you did a really good job.
Chairman Biedenbach stated we’ll accept the congratulations, thank you sir.
Mr. Miner stated well it’s earned in my view, you asked great questions, the dialogue was great, I think you got to the essential issues. Now you’ve got an opportunity to make an offer and as I indicated I think in an earlier conversation with you we’re welcome, we’d be glad to help you with the process if you wish to run it through us you can do it directly, it’s really, it’s your pleasure. We would start, Mr. Cloud would be needed to draft an initial contract, that would be forwarded. Springsted | Waters works for you, for the Commission, so our duty is to you and our responsibility and ethical duty is to this Commission. So we would be glad to participate in that process, we have done that before, it’s entirely your choice as to whether or not you wish us to be involved at this point. I will say this and this is something to be mindful of, I was listening carefully to your comments and I think it was very positive what you did and I think it was very positive the way you handled what is a very sensitive issue, particularly having to do it in public, it’s not easy. But you have an offer, you haven’t yet received an acceptance, okay, so, and I’m not saying that you won’t and I’m optimistic. However, the reality is until it’s over, it’s not over, and so you may find it necessary, I hope not, but it may be necessary to go back and look again at your second choice candidate. So at any rate I just say that for what it’s worth, to be mindful of that. Beyond, that’s your choice, let us know if we can assist with this process further we’d love to help you if you want this, and I would be in touch with, through Mrs. Pitcher probably as prime contact or directly with Mr. Cloud, your choice.
Commissioner Holcomb stated here’s my question I guess.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated go ahead Commissioner Holcomb.
Commissioner Holcomb continued, is that, and this is the real awkward part because it’s like we’re playing poker but they get to hold their cards to their chest and we’ve got to lay ours out. You know being that the people that are applying for the job that we’re going to offer to. I have no idea what the, you know we went to the meeting last year up in Jacksonville and you know the wages is you’ve got to be competitive.
Mr. Miner stated sure.
Commissioner Holcomb stated we have to, I wouldn’t begin to know how to come up with that number, to validate it, and that’s you know I’ve listened to what Commissioner Davenport said. You know everybody talks about Volusia County and it’s a beautiful town, beautiful…, but it takes a contract to get you here, those are just perks. So I want to make sure that we’re competitively, our offer is defensible, that we can look at that person, and make sure it’s fair and substantiate the offer. So that’s what I want to make sure I understand better and I don’t know how to validate that.
Commissioner Britz-Parker stated I have the same question, is that I have no idea of what we’re going to be going in at in terms of salary, what’s going to be recommended. I mean I’m assuming that we would need to pay his moving expenses to come down here, that just makes perfect sense when, an executive position that that would be part of the deal. But I don’t know what number to start at, what I do know is that this is the most important position that we have within this organization and I don’t think that it’s the time to try to get a bargain. You know you get what you pay for, I just have, that just seems to be the way it is, you get what you pay for and so I think this is a really important position. Yes, we need to be mindful, yes, we need to be good stewards of our financial situation but hiring the right person to lead the charge can more than make up for any additional money it’s going to cost us to get him here. So, so I want us to be very mindful of that, and it’s like what Commissioner Holcomb said that you have recited Volusia County’s beautiful, New Smyrna’s beautiful, but that is not, that doesn’t, yes, it doesn’t make a mortgage payment and it doesn’t mean that we can like, we can put a big discount on it and get them here. You know, I mean, it just doesn’t work like that, because I’m confident the right guy is going to find efficiencies in other areas that is going to more pay for himself.
Mr. Miner stated let me just say, I won’t say which one, I think you probably all, each know this, if not some of you do, one or your candidates is actually, has had an offer made to them or someone has shown interest in them, one of your finalists. So you know I mean I appreciate the fact that you’re willing to move quickly, number one and number two. Your comments are well made I believe in the circumstance, it isn’t the time to be taking issue over what may also may prove to be a relatively small amount of money in the big picture.
Commissioner Britz-Parker and Commissioner Holcomb stated right.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Miner continued, I’m respectful that it’s a utility that’s funded by ratepayers, however the return on investment that might be a relatively small amount of money or a differential could be very large. So I appreciate where you’re coming from. One option would be to authorize your Chairman perhaps or some member, if you have a committee, to authorize them to negotiate with him some deal, make it non-binding and bring it back. Once you get some increments, working with Mr. Cloud and perhaps your Chairman or whoever you appoint, all could bring it back and the Commission could look at that and debate it. It would need to be probably a special meeting, something you could do quickly to get this resolved. But that’s only a suggestion but it does, but it does give you the ability to free up someone on your you know Commission to have some ability to at least do some negotiation and discussion, but it would be subject to final approval. That way, you know, it would be a full vote of the full Commission to authorize whatever the final contract amount was, I mean having that ability and negotiate using the legal instrument prepared by your, your staff attorney would be appropriate if passed by all.
Chairman Biedenbach stated let me ask…
Mr. Miner simultaneously stated let me, let me add this. I’m sorry, I apologize, I did forget this one thing, among the services Springsted provides, and I perform these, we do pay and classifications so we do a lot of survey work. We are familiar with the, to a certain level we’re familiar with the Florida market. But we could probably for frankly a slight additional fee, it wouldn’t be much, we could probably get some idea of what public utilities are paying in terms of equivalent positions. To the degree that that information is out there we’ll be glad to get that for you to help you in the negotiation process and we can do that fairly promptly.
Commissioner Holcomb stated could you give us the private sector too because again I don’t want to get caught up in limiting myself to half the market.
Mr. Miner stated yes, you know what we can do, we do have access to data sources that help us with that. I will tell you that if we go to the private utilities, it’s unlikely they’re going to give us the answers but we do have access to private, some private data through subscription services that we have.
Mr. Cloud stated the PSC has it.
Mr. Miner stated pardon?
Mr. Cloud stated the Florida Public Service Commission has it.
Mr. Miner stated okay, well I…
Mr. Cloud stated on the investor-owned utilities, it’s usually a part of their rate case filings. The other data you can pretty easily get because they’re public entities. You know like JEA, CEO, OUC, KUA, Lakeland Electric, maybe some of the smaller ones that are closer in size
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 69
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): to you. But mostly what they look at are you know size of the customer base and the gross revenues in the system. Those are two big determinants in compensation. There’s, you know private sector is also paying them in stock options folks, that is not an option that you have.
Chairman Biedenbach stated can we create some stocks?
Mr. Cloud stated no.
Chairman Biedenbach I happen to know…
Mr. Cloud continued, that is strictly prohibited.
Chairman Biedenbach continued, I happen to know that Mr. Bunch is the guy that was offered because he told us that yesterday. He said that he had been offered and I think it was Baltimore Gas, I’m not sure who it was, but it was a different entity. And we questioned him on that and he said if I could have a decision or before, and I believe he told me, I’ll have to go back and look at my notes, but I think it was the 30th of July.
Mr. Miner stated that is correct…
Chairman Biedenbach stated okay, all right, so we need to do that. You’re looking for somebody, authorization for somebody to deal, to negotiate with this man for the salary. You’re going to give whoever it is a range that we can look at or do we talk about salary here or is that, we don’t talk about that here?
Mr. Miner stated well, you certainly may, my suggestion would be that you make it subject to final approval back here.
Chairman Biedenbach stated I got that part, I’m looking for the front part.
Mr. Miner continued so I think you can avoid, I think you can avoid the discussion currently, we’ll do the research. Mr. Cloud points out much of it’s on file, we can access anything we need to do, it’s not a lot of work, we can get that for you so whoever the contact can be negotiating from a position of knowledge. After that I think you start the process and you see where you end up in negotiations.
Commissioner Holcomb stated what’s the turnaround time on that, as far as that data?
Mr. Miner stated we can do our part…
Mrs. Pitcher stated we have it.
Commissioner Holcomb stated you do?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Chairman Biedenbach stated you have it Mrs. Pitcher?
Commissioner Davenport stated she gave it to us.
Mrs. Pitcher stated I have the public sector, I don’t have the private sector, but I do have public.
Commissioner Davenport stated I’d like to say this, when I talked to Mr. Bunch yesterday, and I asked him do you have a (unintelligible) and he said Commissioner Davenport it’s not all about money. I said well and he said I know I’ll be making less, I said well tell me what you think. He said well the Orlando CEO was just hired and then you’re over here where you are, look at the difference, maybe come up with something between here and there. So that’s what my feedback was with him.
Chairman Biedenbach stated are we allowed to discuss at this point the salary numbers?
Commissioner Davenport stated I just wanted to share that.
Chairman Biedenbach stated okay, okay, Commissioner Davenport did he throw the number out for Orlando?
Commissioner Davenport stated no sir, he just told me between Orlando and here, where those two are, and that’s what I’d like to know because that’s what he said.
Chairman Biedenbach stated okay, we’re at a buck seventy right.
Mrs. Pitcher stated yes.
Chairman Biedenbach stated okay we’re at a buck seventy, what’s Orlando.
Commissioner Davenport stated Orlando’s CEO was just hired, and he said because he knows him and…
Commissioner Britz-Parker stated you’re talking about OUC?
Commissioner Davenport stated yes.
Mrs. Pitcher stated I would have to go get my…
Commissioner Davenport stated that would be interesting, I meant to…
Commissioner Britz-Parker stated how about, what I would like to see us do is I would like to see us appoint a member of this Commission to work with Mr. Cloud and Mrs. Pitcher to get
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 71
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): the information that we need to be able to get a contract to Mr. Bunch like quickly. You know, like I’m thinking within a couple of days, this shouldn’t…
Commissioner Davenport stated I recommend that that be you.
Chairman Biedenbach stated I was going to say, I’ve got to step back on this one because I’m trying to get on an airplane to go to Pittsburgh, right after the meeting Monday night, so I would prefer not to be the guy.
Commissioner Davenport stated I wish it’d be Commissioner Britz-Parker, I’m just speaking up here, you know the numbers, you know what we’re looking for…
Chairman Biedenbach commented that’s the wrong way to shake your head kid…
Commissioner Britz-Parker stated well I’m happy to do that, the only that I will say is that I, a week from today, I’m getting on a plane to go to Aruba and that’s happening no matter what. You know so as long as we can do this quickly, that’s fine, but it really does need to happen, and Mr. Cloud I don’t know your schedule.
Mr. Cloud stated well.
Commissioner Britz-Parker continued and then I guess we come up with an idea, we still have to come back to this body right?
Mr. Cloud stated whenever you want to meet is what my schedule is, that’s not a problem, I’m not going anywhere.
Commissioner Britz-Parker stated what are you showing?
Commissioner Holcomb stated I’m going to pass it out, it’s just the number.
Mrs. Pitcher stated OUC advertised their salary range.
Commissioner Britz-Parker stated thank you.
Commissioner Holcomb stated it’s in that Orlando Sentinel, so it’s not like it’s…
Mrs. Pitcher stated no, it’s public information.
Commissioner Holcomb stated right, so OUC must negotiate a contract with Bullock, the utility advertised a salary of $350,000 to $450,000 with customary benefits.
Commissioner Davenport stated how many customers?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated well, it’s Orlando.
Mrs. Pitcher stated they’re about triple our size, OUC?
Simultaneous comments made were: at least, they’re huge, four to five times our size.
Mr. Cloud stated it’s sort of the biggest municipal utility in Florida, JEA’s the only one bigger.
Chairman Biedenbach stated Mr. Bunch, if I remember reading his thing right, was at $265,000 plus some benefits or some bonuses which ran him close to $290,000 or $295,000 if you run the numbers, is where if I remember the numbers right. I thought somebody was… Where do we want to start?
Commissioner Britz-Parker stated you’re shaking your head Mr. Cloud.
Mr. Cloud stated no I’m not, I’m keeping my mouth shut.
Commissioner Britz-Parker stated okay.
Mr. Cloud continued this is ya’lls call, I should not be weighing in. And it seems to me that in order to have some notion, you need to know what the range is, the range of salaries. And you have one of those but you don’t have the rest of it, and so you could authorize us to negotiate. Did we publish a range of salary for this position?
Commissioner Britz-Parker stated no.
Mrs. Pitcher stated we published negotiable.
Mr. Cloud stated okay.
Commissioner Britz-Parker stated so let me ask you this Mr. Cloud, I want to know if we could do it this way. Okay, if you and I sat down, assuming I’m the person that’s going to be the person on the Commission that’s going to help do this. If we sat down and went through some data pretty quickly, like today, you know to probably won’t take us long to see, this is public information, to see what other organizations in Florida are paying their top guy. To quickly do some calculations and we come up with a recommendation of where to start, okay, then do we have to have a meeting again, a special meeting to get that rate approved by this body because it would be our starting point anyway?
Mr. Cloud stated no, you don’t, you can but you don’t have to.
Commissioner Britz-Parker stated how do we need to do it?
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 73
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Cloud continued, because the authorization, the delegation can be to go negotiate a contract. Now I think that if an offer was made at something, let’s say you know what the OUC person is making, that’s probably going to be a non-starter because it’s probably too high, because the relative sizes of the system. Common sense says once you know the data points, and I’m sure that’s why you went and looked it up because logically that’s what you want to know, what’s the traffic been. So if the authorization is to go negotiate a competitive contract that’s within the range of existing municipal CEO salaries in Florida, that’s a pretty good direction there.
Mrs. Pitcher stated and I also have, I have the APPA study, the most recent one that gives you by size of the General Manager’s salary.
Mr. Cloud stated that’s even better.
Mrs. Pitcher stated I can actually grab it today and show it to you.
Commissioner Holcomb stated so, again, the training that we went to with FMPA the last year, you know the, and I’m looking at the numbers here, I said when I came back we will, we would be here, this conversation would take place and we would be shocked by what it would take to hire a, you know, a person to come here, and here we are. So I just want, again express to everybody that on the grand scale and you know the way we’re looking at this, if you’re looking at he was making $285,000, $290,000 now, Mr. Mitchum’s making $170,000. He threw the OUC out there, probably a good move on his part.
Mr. Cloud stated sure.
Commissioner Holcomb continued, and you know that’s fine, but again don’t think he doesn’t know the numbers in his mind. He didn’t apply for this job not knowing that he thought he was going to get a OUC wage, so somewhere between you know and I think if we can support the usage, can back a good offer. To look at that and say no, no, no, we’re not in line we’re putting more than a fair wage out there, we are trying to lure you here and can support that wage. Ever it’s Commissioner Britz-Parker and Mr. Cloud going there, then they can go there with a little bit of confidence going this is a good offer, this is a good, but be prepared it’s going to be north of what we’re paying our current CEO. So just, you’re not going to get that for what we’re paying now, so just be prepared.
Commissioner Griffith stated I certainly think your process is right on Commissioner Holcomb and why can’t we just go ahead and do that with support from our Human Resources Department.
Commissioner Holcomb stated yes.
Commissioner Griffith continued, laying out what we need and with Mr. Cloud and get this thing approved on Monday night.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 74
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated yes, I agree with that 100%.
Commissioner Britz-Parker stated boy, that would be awesome.
Commissioner Holcomb stated there’s no reason we shouldn’t be able to.
Commissioner Griffith stated yes, why not?
Commissioner Davenport stated consider, is this long term incentive here...
Commissioner Britz-Parker stated but to make sure I understand, we’re going to talk about potentially identifying a person on this Commission, maybe me, to work with H.R. and Mr. Cloud to come up with a contract and make him an offer and hopefully…
Mr. Cloud stated he’ll accept.
Commissioner Britz-Parker stated he’ll accept it or we’ll come up with a negotiated number that we can bring back to the Commission Monday night and we’re done. Is that our goal?
Chairman Biedenbach stated well, that would be sweet.
Commissioner Griffith stated that’s the recommendation.
Commissioner Holcomb stated I’m always one of those that wants to think past a not favorable outcome, so let’s walk past that. Let’s say we can’t come to an agreement with him, what’s step two?
Mrs. Pitcher stated well in backing up just a little bit, just keeping in mind we also need to run our background checks, our criminal checks, so that offer needs to be conditional upon.
Commissioner Holcomb stated absolutely.
Mrs. Pitcher continued, successfully passing those, so I just don’t want to leave that part out.
Commissioner Britz-Parker stated sure.
Mrs. Pitcher continued, to your question…
Chairman Biedenbach stated but Commissioner Holcomb to your question what if he says no and Commissioner Britz-Parker’s point that says no, I’m not going any further without you know, I think the Commission’s going to agree with me when she comes back here Monday night, I’m not going there, then I think what Commissioner Holcomb is at… Commissioner Holcomb, let me shut my mouth, you finish it…
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 75
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated and I understand what he’s asking and to that, to Mr. Miner’s point on that is you have your runner up who you don’t really want to burn that bridge.
Commissioner Holcomb stated that bridge, right.
Commissioner Britz-Parker stated Mrs. Pitcher, would it be out of the realm of reason if we run background checks on both of them?
Mrs. Pitcher stated you cannot, in Florida, you cannot run a criminal background check until you’ve had a conditional offer of employment.
Commissioner Britz-Parker stated okay, I didn’t know that, okay, so…
Commissioner Holcomb stated so, there is a, forms in your office, probably a 100 yards away from here or 200 yards away from here, right?
Mrs. Pitcher stated yes.
Commissioner Holcomb continued, that it has that data on it?
Mrs. Pitcher stated the salary data.
Commissioner Holcomb stated what did you call it, the acronym, the AA or whatever.
Mrs. Pitcher stated it’s the APPA salary study.
Commissioner Holcomb stated so, what I would prefer right now is you run to your office, you bring that back, we have a formal conversation of what that is so I understand because I don’t want to leave here making an offer that I don’t understand.
Mrs. Pitcher stated sure, okay.
Commissioner Holcomb stated so if you would get that, recess for a couple of minutes, and bring that back with copies…
Chairman Biedenbach stated we’re going to recess for lunch Commissioner Holcomb, while she’s running around doing that, let’s go to lunch.
Commissioner Britz-Parker stated sounds good.
Commissioner Holcomb stated sounds good.
Chairman Biedenbach stated okay, we’re in recess; recessed the Special Meeting again at 12:09 p.m. (for lunch)
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 76
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
After confirming the meeting was now restarting, Chairman Biedenbach reconvened the Special Meeting at 12:47 p.m.
Mrs. Pitcher stated I have for you not only the APPA study but also FPL and Duke, and then proceeded to distribute copies. Also jokingly commented when you’re looking at the, considering the Duke pages, just look up there at the H.R. position too okay.
Commissioner Britz-Parker stated so that obviously.
Commissioner Davenport stated holy cow, I need to be a CEO at utilities.
Mr. Cloud stated you should see what the General Counsel’s position pays at OUC.
Commissioner Davenport stated what.
Mr. Cloud stated $350,000, of course they just handed H.R. and labor department to the General Counsel at OUC, which is why I’m sure it went to that.
Mrs. Pitcher stated now what I have given you for APPA, which obviously you can see but I’ll just… There’s a page for national salaries and there’s a page for just by revenue, then just by customer size, then by region and revenue.
Commissioner Holcomb stated okay.
As Commissioners reviewed the handout pages, Commissioner Britz-Parker asked and what were our total revenues last year?
Commissioner Holcomb stated $65 million.
Commissioner Griffith stated $66 million.
Chairman Biedenbach stated just say $60 something or other.
Commissioner Holcomb stated yes, just under $70 million.
Commissioner Holcomb stated what was the, I’m just curious, what was the other job, if you guys were in your interviews, what was the other job that he’s waiting on, what County or?
Mrs. Pitcher stated it’s with the same employer.
Commissioner Davenport stated yes, with them.
Commissioner Holcomb stated oh, he’s staying there.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 77
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith stated stay where he is.
Commissioner Holcomb stated okay.
Commissioner Griffith stated and of course he was interested in obviously moving out of there. And even mentioned to me yesterday about you know you’re not going to have move me very far and a whole lot because I’ve already got things in Florida so he…
Mr. Cloud stated he has a house in Palm Coast.
Commissioner Griffith stated yes, a house in Palm Bay, Palm Beach?
Mr. Cloud reiterated Palm Coast.
Commissioner Britz-Parker stated I can’t imagine making that commute though.
Chairman Biedenbach stated okay, Palm Coast, what, could he commute here?
Commissioner Holcomb stated no.
Chairman Biedenbach stated all right, where is Palm Coast?
Commissioner Britz-Parker stated Flagler County.
Mrs. Pitcher stated we have a few employees in Palm Coast.
Commissioner Holcomb stated you do have employees in Palm Coast?
Mrs. Pitcher stated yes.
Commissioner Holcomb stated it’s fifty minutes.
Commissioner Davenport stated about forty-five to fifty minutes.
Mrs. Pitcher stated I have an, one of my employees is in Altoona which is like an hour and a half.
Commissioner Holcomb commented yes, a mile and a half in Orlando.
Mr. Mitchum mentioned Brian Bilinski lives there.
Commissioner Griffith stated oh, Mr. Bilinski was there, I didn’t realize that, so he commuted, an hour each way at least.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 78
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Mitchum indicated about 45, depending on traffic, obviously. It’s not Orlando, 95 is…
Commissioner Britz-Parker stated Mrs. Pitcher can you explain to us, like which these different things mean, like the mean is that the average?
Mrs. Pitcher stated sure, yes, so the first quartile is it’s the middle number between the lowest and the median, and then the third quartile is the middle number between the median, which would be the average and the highest. So you really, we look between the median and the third quartile on what you’re looking at.
Commissioner Holcomb stated we’re at, we’re currently paying that wage.
Chairman Biedenbach stated I would say, I’d say we got no help from this thing.
Commissioner Holcomb stated I would, no, I mean, again, but again…
Mr. Cloud stated it would be nice to know this specifically about Florida utilities.
Mrs. Pitcher stated which is where, yes if you go to the region, by region.
Mr. Cloud stated southeast region.
Mrs. Pitcher stated yes, I am able to get the information from the different utilities in our area, that’s just going to take a little bit more time than today.
Mr. Cloud stated so if you were going by the data in this, your high would be what about $200,000?
Mrs. Pitcher and Commissioner Holcomb stated yes.
Commissioner Davenport stated which is 33% lower than he’s currently making an hour.
Mr. Cloud stated right, exactly, I mean.
Commissioner Britz-Parker stated out of curiosity, like what, who do we think would be the closest to us in terms of number of customers in government? Like our head water guy, he said Fort Pierce?
Mrs. Pitcher stated we are, yes, Fort Pierce is the closest to our size.
Mrs. Pitcher continued, everyone else KUA and OUC are a lot bigger than us.
Commissioner Britz-Parker stated so do we know what Fort Pierce is paying, and they have the same deal they have electric, water, sewer, all the same services…
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 79
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mrs. Pitcher stated yes they do.
Commissioner Britz-Parker continued, roughly same number of customers.
Mrs. Pitcher stated right.
Mr. Mitchum commented they’re slightly larger I believe.
Mrs. Pitcher stated yes, I know the Human Resources Manager there, I could get the information.
Commissioner Britz-Parker stated is it not public information?
Mrs. Pitcher stated its public information in the sense that when you…
Commissioner Britz-Parker stated but that’s not easy to find quickly.
Mrs. Pitcher stated right, so I don’t know, I can actually check really quick right here to see if they have it posted.
Commissioner Britz-Parker stated that would be awesome, thank you.
Chairman Biedenbach stated Mr. Cloud weren’t you associated, aren’t you, weren’t you going to Fort Pierce the other night when I was talking to you.
Mr. Cloud stated yes, I was driving down there.
Chairman Biedenbach stated do you know what the GM makes down there?
Mr. Cloud stated I do not.
Chairman Biedenbach stated okay.
Commissioner Davenport stated where did we start our CFO at?
Mr. Mitchum stated excuse me?
Commissioner Britz-Parker stated do you have a new Finance person hired?
Mr. Mitchum stated yes, let me verify with Mrs. Pitcher that we made an offer.
Commissioner Griffith stated offers out.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 80
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated he asked the question, Commissioner Davenport asked the question saying what are we paying that person?
Mr. Mitchum stated Mrs. Pitcher could answer that.
Commissioner Britz-Parker stated okay.
Mr. Mitchum stated I think it’s starting around $100,000, it may be slightly you know a little bit here or there.
Commissioner Griffith stated yes, if you’re under our category, median would $123,000, median $121,000, just looking at this.
Commissioner Holcomb stated those numbers wouldn’t even hire Mr. Mitchum.
Commissioner Griffith stated no, Chief Financial Officer, no.
Commissioner Holcomb stated you’re going to be north of $200,000.
Chairman Biedenbach stated I was going to say.
Commissioner Britz-Parker stated I was thinking.
Commissioner Griffith stated yes, north of $200,000, less than where he was, $225,000 to $245,000…
Chairman Biedenbach stated there’s the number I was looking at, $225,000.
Commissioner Griffith reiterated $225,000.
Chairman Biedenbach stated is that, is that somewhere where you would be comfortable Commissioner Britz-Parker?
Commissioner Britz-Parker stated yes.
Commissioner Davenport stated I’d like to see possibly, he’s got that DTE, a long term incentive LTI, we could put something like at five years and ten years to you know if he stayed or some incentive.
Commissioner Britz-Parker stated I’m sorry what, what?
Commissioner Davenport stated incentive for him to stay too, long term incentive, could put something so much per year, five years and ten years. He’s got a $50,000 LTI now, long term incentive. I’m curious what that is, but I’ve done that before and it works out.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 81
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated I like give him a salary and then say if it’s appropriate, I guess we’d have to like based on reviews from the Commission or something like that…
Commissioner Davenport stated just another…
Commissioner Britz-Parker continued, that he gets a raise or just more money if he stays; excuse me.
Mr. Cloud stated the form of contract I’ve seen used sometimes, and it was used, not a large city but actually for its size pretty sophisticated. A place called Wauchula which is the County seat of Hardee County, they lost five of their seven Commissioners when they met outside the Sunshine to fire the City Manager and the Governor relieved the five that met outside of the Sunshine. And so they had five new appointments and they had to find somebody pronto who was a good City Manager, and they turned to a gentleman by the name of Terry Atchley. Mr. Atchley had been the Chairman of the County Commission. And they put together a contract that was performance driven, it had certain metrics in it, if the budget improved a certain amount. I don’t know that we, how quickly we could come up with metrics like that but I’ve seen contracts like that. Probably contracts this guy has seen in the private sector, but they’re very unusual in government.
Commissioner Britz-Parker stated and I don’t know personally that I want to go there.
Commissioner Holcomb stated no.
Commissioner Britz-Parker stated and this is like a numbers person talking, but it’s more than I feel like everybody’s, it’s kind of like trying to teach kids only around taking a test, you know I don’t know that I want to go down that road because you can play with numbers. And if you know, I just, even though I am a numbers person.
Commissioner Holcomb stated so, so let’s just walk through that anyway, so let’s just say of your first rate increase what do you think the publics going to say, oh that’s going to work right to his pay plan right because he’s going to increase revenues. So I, that’s a bad thing to have to defend, I just don’t like that at all. I think you pay a fair wage, you evaluate on talent, he does the job, he doesn’t do the job, if he doesn’t I don’t need to evaluate him, you fire him. So that’s to me, let’s not over complicate it…
Commissioner Britz-Parker stated I agree.
Commissioner Holcomb continued, let’s just put a wage out there. I think, like you said that number, that $225,000 number, then that meeting that’s substantially less, not substantially, but it’s less than what they said up there so I’m actually… Again I would feel comfortable, I think that’s above what the market’s paying for this job, he knew what our salary was, he knew what our, you know he applied for the job knowing what, if he’s, if he’s you know as good as we all make him out to be he understands we also have got to be fiscally responsible.
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
But I want to pay for, so we’re paying better than fair market value for what we believe to be better than fair market CEO.
Commissioner Griffith stated sure.
Commissioner Holcomb stated so I think those numbers, when you go sit with him, or you and Mr. Cloud get together, you can at least go, like when he says where did you pull that number, we’re going to pay you about 12% above, was it more than that, about 15% to 18% above the…
Commissioner Griffith commented close to 20%.
Commissioner Holcomb stated yes, above that number.
Commissioner Griffith stated it’s a good start.
Commissioner Holcomb stated we’re paying for it, so you knew it was a 65 million, you knew you couldn’t make what you make up there, we didn’t come out with a you know I don’t want to negotiate, mean want to come up with a fair offer and I think it’s reasonable. When you consider for about, what is it $75,000 less than he’s currently making, that I think he’s doing a lot less work too.
Commissioner Griffith commented $50,000 to $75,000.
Commissioner Holcomb stated so I think the numbers are defendable.
Commissioner Britz-Parker stated well and we could have added in that we would pay his moving expenses like you do at a company…
Commissioner Holcomb stated no, I mean that’s a foregone, yes.
Commissioner Britz-Parker stated but then if he doesn’t stay a certain length of time, he’s got to pay it back, that’s a pretty standard.
Commissioner Davenport stated yes.
Chairman Biedenbach stated okay.
Commissioner Griffith stated also be thinking about a heck of a difference tax wise.
Commissioner Holcomb stated so, yes.
Commissioner Griffith continued, you know Maryland they are really very, very tax high and no personal income tax in Florida.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 83
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Britz-Parker stated which I’m sure he’s done that calculation.
Commissioner Griffith added, and that’s probably why he has a property in Palm Coast.
Commissioner Holcomb stated I just, I want to throw one other thing out there, playing devil’s advocate just as, is just we voted unanimously for Mr. Bunch, right we also unanimously said we have two great picks. The other pick makes $165,000 a year.
Commissioner Griffith stated yes.
Commissioner Holcomb stated so, what I would say to, and I talked to Mr. Winters (sic Mr. Miner) I think right, and we need to be prepared for the no and I think direction needs to be if it’s a no from Mr. Bunch that we extend an offer to Mr. Bowlin too. Because you can’t walk it back, you can’t go like…
Commissioner Britz-Parker stated yes we can.
Commissioner Holcomb stated no, I understand that but you get to a point where you talk about trust and you talk about would you, I understand I was second but I understand you all said you know we both had great credentials. You know I just think that’s a bad start when you try to explain to somebody the other guys worth $50,000 more than you are.
Chairman Biedenbach stated so you’re saying the same offer, $225,000.
Commissioner Holcomb stated no, I’m just throwing it there.
Commissioner Britz-Parker stated technically, do we have to go there today?
Commissioner Griffith stated no.
Commissioner Holcomb stated well, here’s why I tell you, Mr. what was his name?
Chairman Biedenbach stated are you talking Mrs. Pitcher or…?
Commissioner Holcomb then stated Steve (Mr. Steve Miner), walk them through our conversation that we just had a few minutes ago about the, if you had to go through this search again are you comfortable with your two choices. If you had to go through this again would you end up with the same, you know, comfortable with your two choices. Because we’re talking about making an offer of $225,000 to Mr. Bunch, if he declines or decides because he’s got an offer on the table from another business. It’s going to be pretty simple, I’m either going to go with this one or that one, it seems like a pretty easy decision. If it’s a no, then we have to proceed to Mr. Bowlin, we don’t want to miss that opportunity either right, I mean that’s, and I definitely don’t want to refire the…
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 84
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Mr. Miner stated thank you very much, my point simply was that you do have two candidates, I think there’s general concurrence around that point, there’s different strengths and weaknesses clearly, and that’s been brought out in some really excellent discussions the other day. My point was simply that you have focus on this I think from the perspective of do you want to go through this again. You know, and if you did would you find the candidate that you think would be better than your number two choice and I think that was my actual question.
Commissioner Holcomb stated yes, that was.
Mr. Miner stated so, that’s a question only you can answer bottom line but it would seem to me that really two candidates of that quality and ability that you would certainly want to try to, for whatever your top choice didn’t work out. And hopefully it won’t that everything will go fine, but if in fact it doesn’t go well then hopefully you will be able to go back to your number two and negotiate a satisfactory contract. Again I’ll leave it to you as to whether you think it has to be the same money, we’re all different, we’re all individually, we have different motivations, we have different motivations and different reasons for doing whatever it is we want to do. It may well mean that the second individual would be willing to go, come here for less. It might be an issue though, certainly I presume they would be aware of it, that’s probably a difficulty you face. I feel for you having to do this in public, it’s not easy.
Commissioner Holcomb stated right.
Mr. Miner continued, very, very, very uneasy to do it…
Commissioner Britz-Parker stated well it’s based on the qualifications and experience of each individual, that’s how we advertised it, and so you know I would feel differently if this first choice doesn’t work out and offering the same amount of money to our second choice, I just wouldn’t.
Mr. Miner stated that’s fine.
Commissioner Britz-Parker added I’m, I’m hoping.
Chairman Biedenbach stated let me ask a question, if $225 doesn’t work out, do we want to think about $235, $245, or do we want to think about the second choice.
Commissioner Holcomb stated put a number out there, be prepared to say no and be able to walk away from it, because if we start negotiations. This is such, this is such a terrible process to negotiate in, because all they have to do is watch us or read the minutes and go hey you know what, offer another $15 grand.
Commissioner Britz-Parker stated what I think, I think that $225 is a really fair offer…
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Holcomb stated we made a good effort.
Commissioner Britz-Parker continued, it’s considerably more than what we’re presently paying, it’s considerably less than he’s making, you know it’s kind of in the middle.
Commissioner Holcomb stated you’re right.
Commissioner Britz-Parker stated and I think that’s really fair.
Commissioner Griffith stated that’s where it ought to be, sure.
Chairman Biedenbach stated okay, so we’re at $225, you’re going to work it with Mr. Cloud and with Mrs. Pitcher, and if he says no, we’re going to go $225 to Mr. Bowlin, is that what everybody is saying.
Simultaneously some of the Commissioners stated no, Commissioner Britz-Parker stated I really think that if we can’t come to an agreement, we talk about it then on Monday night.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated all right.
Commissioner Holcomb stated fair enough, I just wanted to have the conversation.
Chairman Biedenbach stated that’s fine, I keep forgetting that Monday night’s coming.
Commissioner Britz-Parker stated yes, okay.
Commissioner Holcomb stated so, make the motion?
Chairman Biedenbach stated I need a motion somebody.
Commissioner Holcomb stated we’ve got to direct, we’ve got to create the team right with the motion, or advise…
Mrs. Pitcher stated I’m sorry, I missed what you were saying.
Chairman Biedenbach stated let’s make the motion to…, I’m sorry Mr. Cloud you want to talk. No, it was you, go ahead Commissioner Davenport.
Commissioner Davenport stated I’ll make the motion to form a committee consisting of Commissioner Britz-Parker and our attorney Mr. Cloud and Mrs. Pitcher, the three of those get together, make the offer to Mr. Bunch, and come up with our proposal subject to
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.): background check and the other things that go in that contract, which Commissioner Britz- Parker, you and Mr. Cloud could probably figure out.
Commissioner Britz-Parker stated with the salary number being $225,000.
Commissioner Davenport added and reiterated, with the salary number being $225,000.
Commissioner Holcomb stated not-to-exceed.
Commissioner Davenport stated not-to-exceed $225,000.
Mr. Cloud stated do you want us to start at $225,000?
Commissioner Holcomb stated no, not-to-exceed.
Mr. Cloud stated okay, all right.
Chairman Biedenbach stated and you’re going to bring it, you’re going to try to bring it back Monday night for us.
Commissioner Britz-Parker stated yes, I thought you were going to say $225,000, that’s our number.
Mr. Cloud stated okay, all right, well then that’s why I asked…
Commissioner Holcomb commented are you in or you’re out, you’ve got two offers.
Chairman Biedenbach stated okay, everybody understand what we’re voting on. Commissioner Britz-Parker, Mrs. Pitcher, and Mr. Cloud negotiate, $225 is the number, they’re going to try to bring it back to us Monday night. Thank you. Anybody more questions…
Commissioner Holcomb stated I’ll second that motion.
Chairman Biedenbach stated okay, it’s been made by Commissioner Davenport, seconded by Commissioner Holcomb. Mrs. Simmons would you please.
Commissioner Davenport’s motion then passed unanimously on a roll call vote.
Chairman Biedenbach stated anything else you want to say Mrs. Pitcher.
Mrs. Pitcher stated just did you have a question when I was back there about our CFO, is that what I heard?
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(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Davenport stated I did.
Commissioner Britz-Parker stated yes, thank you, we made an offer?
Mrs. Pitcher stated yes, yes and I’ve successfully negotiated with him, he starts on the 30th.
Commissioner Britz-Parker stated and what is his salary?
Mrs. Pitcher stated he will be starting at step B of the pay grade we have for that position which is $100,817, with an increase, a 5% increase, after six months.
Commissioner Britz-Parker stated okay.
Mrs. Pitcher added and it will actually be higher because of the approved GWI coming.
Commissioner Britz-Parker stated because of?
Mrs. Pitcher stated the approved general wage increase that was already approved for this new fiscal year.
Commissioner Britz-Parker stated okay, which was what percentage?
Mrs. Pitcher stated 4%.
Chairman Biedenbach stated Commissioner Davenport do you have anything for the good of the organization?
Commissioner Davenport stated no, it’s just been a great honor to work with everybody through this process. I think the City will be very happy with the hard work that we’ve put in, I hope they are anyway. And I appreciate you there Mr. Miner and everything, and Mrs. Pitcher you did a heck of a great job, and everybody, Mr. Cloud, everybody, really excited to be a part of this and thank you.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated I concur.
Chairman Biedenbach stated Commissioner Britz-Parker.
Commissioner Britz-Parker stated ditto.
Commissioner Griffith stated ditto.
Chairman Biedenbach stated thank you, we’re adjourned.
MINUTES OF SPECIAL UC MEETING HELD 7-19-18 PAGE 88
(1) Executive Recruitment – Public Interviews of Finalists for General Manager/CEO (cont.):
Commissioner Griffith added thanks to all, well done, good ending point.
There being no further business to come before the Commission, the Special U.C. Meeting closed at 1:09 p.m.
APPROVED: ATTEST:
______CHAIRMAN SECRETARY-TREASURER
These minutes were formally approved by the Utilities Commission at their ______, 2018 meeting.
AGENDA ITEM 3-b
MINUTES OF REGULAR MEETING OF THE UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, HELD MONDAY, JULY 23, 2018, AT 6:00 P.M., AT 200 CANAL STREET, NEW SMYRNA BEACH, FLORIDA
Chairman Biedenbach opened the meeting by Commissioner Holcomb leading in the pledge of allegiance and by himself providing the invocation.
Chairman Biedenbach then requested for the roll to be called with a majority of the Commissioners in attendance as follows:
Commissioner Lee B. Griffith Commissioner Jack Holcomb Chairman William E. Biedenbach Commissioner Bernadette Britz-Parker (ABSENT) Commissioner James Davenport
Others in attendance were as follows: R. Mitchum, General Manager/ CEO; M. Mines, Director of Electric Operations; L. Merchant, Interim Director of Finance; D. Hoover, Director of Water Resources; D. Wainscott, Director of Engineering; B. Pitcher, Director of Human Resources; B. Keehn, Director of Information Technology; D. Wood, Customer Service Manager; D. Zorge, Customer Service Supervisor; E. Fisher, Info. Officer-Employee Relations Coordinator; M. Crossman, Materials Manager; J. Cheek, Executive Support Coordinator; D. Simmons, Exec. Services Mgr./Recording Secretary; General Counsel - Thomas Cloud, Esquire – Gray | Robinson Attorneys At Law; Melanie Stegall, PRIA Acct. Exec.-Employee Benefits; Lisa Martin, Richard Spangler, and one unidentified woman, all members of the public.
(1) Agenda Changes, Additions and Deletions:
Chairman Biedenbach stated Mr. Mitchum do we have any changes?
Mr. Mitchum stated yes sir.
Chairman Biedenbach continued, deletions, additions…
Mr. Mitchum stated I think you’ve got three pages that were inadvertently left out under, let’s see, 6-a.
Chairman Biedenbach stated okay.
Mr. Mitchum added I believe it was, yes sir, that you have on the dais there and then I believe Mr. Cloud has add-on 5-c., contract.
Chairman Biedenbach stated okay.
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(2) Public Participation:
Chairman Biedenbach then stated public participation. Do we have anybody in the audience that would like to address the Commission tonight? Seeing no movement I close that part.
(3) Approval of Consent Items:
Chairman Biedenbach stated we have the consent agenda, is anybody happy with it, is anybody unhappy with it, where are we on this?
Commissioner Holcomb stated I have a question on h., so I’d like to pull h.
Chairman Biedenbach stated okay, pull h.
Commissioner Griffith stated change order.
Chairman Biedenbach stated I have a question on d. and e., so we have d., and e., and h. Commissioner Griffith?
Commissioner Griffith stated that covers me too.
Chairman Biedenbach stated Commissioner Davenport?
Commissioner Davenport stated I’m good.
Chairman Biedenbach stated you’re covered? Can I have a motion to pass the others, or accept the others please.
Commissioner Griffith stated so moved; specifically a motion to approve consent items 2-a. Minutes of Regular U.C. Meeting Held 6-25-18, approve as submitted; item 2-b. Utilization of Volusia County’s Intra-Governmental Service Agreement for Fuel Purchases FY2019-2021 (10-1-18 to 9-30-21), approve the renewal of the agreement and authorization for the GM/ CEO or his designee to execute the renewal agreement on behalf of the Utilities Commission; item 3-c. ITB No. 22-18 – Transmission Poles & Insulators, to approve and award to the lowest responsive and responsible bidders, Gresco Utility Supply Inc. in the amount of $72,772.00 ($77,163.32 with tax) for transmission poles and to Stuart C. Irby Company in the amount of $8,275.26 ($8,796.78 with tax) for insulators; item 3-f. Emergency Repair of Transformer No. 3 at Field Street Substation – Sole Source Duke Energy Master Services Agreement, approve the repair project proposal from Duke Energy Florida for the 30 MVA transformer (No. 3) in a not-to-exceed amount of $380,000; and item 3-g. Change Order No. 1 – ITB #17-18 Central Office Building First Floor Flooring, approve C.O. No. 1 to Wadsworth Flooring Center, L.L.C., in the amount of $3,887.00, and authorize the GM/CEO or his designee to execute the documents associated with this project.
Commissioner Davenport stated second.
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(3) Approval of Consent Items (cont.):
Chairman Biedenbach stated it’s been moved and seconded, any discussion, Mrs. Simmons please.
Commissioner Griffith’s motion then passed unanimously on a roll call vote.
(3-h) ITB No. 18-18 – Smyrna Substation Equipment – For Smyrna Sub. Main Relocation and Expansion Project:
Chairman Biedenbach stated okay, Commissioner Holcomb you were first, you’re up at h.
Commissioner Holcomb stated just a question, the budget on the capital improvements plan was $2.5 million for I believe it’s E-117 on the project and then we’re, the bid was for $1.6. I just…
Mr. Mitchum stated Mr. Wainscott.
Mr. Wainscott addressed the Commission by stating Mr. Chairman, Commission, Derek Wainscott, Director of Engineering. When we were preparing the budget we had heard rumors that the transformers cost upwards of $1 to $1.2 million, so we budgeted accordingly, and the bids came in roughly around just over $600,000 per transformer.
Commissioner Holcomb stated okay, so basically that’s it. Where does that $900,000 fall back into, where we do the over accrual or estimate or how do we…?
Mrs. Merchant indicated and Mr. Wainscott stated it would go back to the unallocated fund.
Commissioner Holcomb stated unallocated, R&R? Okay, all right, that was it, the one question. Thanks, it’s a big miss, that’s why I was just curious how we (unintelligible)…
Mr. Wainscott stated well the rumors at the time were $1.2 to $1 million for a transformer.
Commissioner Holcomb stated I get it.
Mr. Wainscott continued, and we got two for $1.3.
Commissioner Holcomb stated it’s a good miss, if we’re going to miss that’s the way we want to miss.
Mr. Wainscott stated I’ll take that miss.
Commissioner Holcomb stated right, absolutely, never usually works out that way. Then stated thank you and added to Chairman Biedenbach, that’s it.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 4
(3-d) South Beach/Well Houses Roof Replacement Design – Change Order No. 3 – Gale Associates, Inc.:
Chairman Biedenbach stated Mr. Wainscott stay up there, I have a question. What upgrades did the City do to us on the roofing project that we had to spend another bunch of money to re-engineer the thing.
Mr. Wainscott stated it was the County and the City and they just adopted a new building code for 2017 and the building permits weren’t permitted until they had adopted it and the design for that project goes back a couple of years and it just it took a couple hours of our consultant’s time to correct it and adjust for the new building code.
Chairman Biedenbach stated so there wasn’t any (unintelligible) on the roof itself, this all paperwork that that $3 grand cost us.
Mr. Wainscott stated correct.
(3-e) ITB No. 08-18 – Lift Station Nos. 4 and 34 Reconstruction – Phase 2:
Chairman Biedenbach stated all right, and the other one is on e., we’re going to work on Saxon Boulevard again?
Mr. Wainscott stated correct.
Chairman Biedenbach stated I want to be real careful how I ask this question, do we have another eyes on this project this time so that a mistake of the last nature we have a good chance of catching.
Mr. Wainscott stated yes sir, we’re fully aware of our mistakes on the last one and we’ll make sure the contractor doesn’t make those same mistakes.
Chairman Biedenbach stated we’ve got a real good handle on this one Mr. Wainscott?
Mr. Wainscott stated yes sir.
Chairman Biedenbach stated okay, all right, because that one, that one scares me. It, all right.
Mr. Wainscott stated yes sir, we’re fine.
Commissioner Davenport stated I thought that was all through Mr. Chairman on Saxon.
Chairman Biedenbach stated no, no, this is the second. I, I’m sorry Commissioner Davenport, go ahead Mr. Wainscott.
Mr. Wainscott stated we had the road closed and we didn’t really have a solution that was going to be able to let us quickly reopen the road and solve all of our needs. This project finished the project, we get rid of a can station, and we go two more blocks with brand new sanitary sewer, pick up new water services in the work area so that we don’t have to go back in at a later date and do that work as well. So this is a little bit of clean up from the past
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(3-e) ITB No. 08-18 – Lift Station Nos. 4 and 34 Reconstruction – Phase 2 (cont.): project, but we, just having the road closed for as long as we did the residents weren’t having it, we didn’t have a quick solution so we decided to close that project out, do what we could and then re-evaluate which is what this part is.
Chairman Biedenbach stated are you going to close, have to close the road again on this project?
Mr. Wainscott stated we believe that we can have one lane open, the south bound lane the County’s going to require us to maintain that open at night, we’ll probably close it during the day and have a detour for northbound. Don’t expect much more than two months of that.
Chairman Biedenbach stated do we know, is there a better time to close the road or a less inconvenient time to close the road?
Mr. Wainscott stated Mr. Chairman last year we had the road closed during the summer months, not very convenient for anyone.
Chairman Biedenbach stated okay.
Mr. Wainscott stated we are targeting after Labor Day and before Thanksgiving to have this work being done.
Chairman Biedenbach stated have we gone down and told the people what’s going to happen?
Mr. Wainscott stated not until we get a contractor on board, but we will.
Chairman Biedenbach stated then we’ll go down and have a sit down with the residents and tell them what to expect.
Mr. Wainscott stated yes, yes sir.
Chairman Biedenbach stated okay, because I don’t need the phone calls that I got from the last one.
Mr. Wainscott stated none of us do sir.
Commissioner Davenport stated will this contractor be bonded.
Mr. Wainscott stated yes, yes.
Commissioner Holcomb commented for sure, they all have to be.
Commissioner Davenport stated I’m just making sure what we went through on the last one.
Mr. Wainscott stated no, the, we learned that lesson too and the contractors kind of look at us like we’re crazy when we say go record the bond and we tell them the whole story, and say go record the bond and stop asking about it.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 6
(3-e) ITB No. 08-18 – Lift Station Nos. 4 and 34 Reconstruction – Phase 2 (cont.):
Commissioner Davenport stated thank you.
Commissioner Griffith commented focus on the work, and then stated Mr. Wainscott a question, Mr. Chairman.
Chairman Biedenbach stated go, go ahead.
(3) Approval of Consent Items (cont.):
Commissioner Griffith stated yes, just a follow up back to the corporate office building, where are we now versus closing it out, as far as all the work that was done and there’s a change order I guess, additional change order for flooring. Does that wrap us up now?
Mr. Wainscott stated that’s a separate project.
Commissioner Griffith stated separate project, so have we closed out on the office, closed out the office building…
Mr. Wainscott stated the renovations to the exterior of this building has been closed out and final payment’s been made.
Commissioner Griffith stated it has, okay good.
Mr. Wainscott stated this is just sprucing up some of our Customer Service areas.
Commissioner Griffith stated and again a quick shout at versus budget, where did we end up versus budget?
Mr. Wainscott stated to Mrs. Merchant, do you recall what your budget was for the flooring?
Mrs. Merchant stated for the flooring?
Mr. Wainscott stated yes.
Commissioner Griffith stated no, no, I’m not, I’m talking about the total project, where did we come in with respect to the total project.
Mr. Wainscott stated oh, for the C.O.B. I think we were at somewhere in the neighborhood of $2.7 total.
Commissioner Griffith stated yes, and last we were looking, $2.7, last we were looking at?
Mr. Wainscott stated and I think we were budgeted at $2.5.
Commissioner Griffith commented $2.5, okay; then stated thank you Mr. Chairman.
Chairman Biedenbach stated so not too bad for all the problems you found.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 7
(3) Approval of Consent Items (cont.):
Commissioner Griffith stated all the changes, yes.
Mr. Wainscott stated this is no less than five buildings with undocumented changes in the past so it was, I’m happy with what we ended up with.
Commissioner Griffith commented found a lot of skeletons.
Commissioner Holcomb stated let me ask you one more question on that note, we keep bringing it up, do you see this building working for us in five years from now?
Mr. Wainscott stated no.
Commissioner Holcomb stated so can we, every time we see money coming to band aid this baby let’s just put the band aids away figure out to work through it. Because sooner or later we’ve got to make that decision on, you know we’re putting bad money after bad money now and we’ve got to make sure that we stop that and start focusing on what we’re going to do.
Commissioner Griffith stated yes, I would hope we’d stop that since, yes, we’re out of $2.7.
Mr. Wainscott stated well there’s a few things that we still have to do, I mean we do have people working in the building.
Commissioner Griffith stated sure, maintenance things (unintelligible), talking about capital.
Mr. Wainscott continued, I mean there are things that have to just routinely be done. Large capital projects I’m not prepared to stand before this board and recommend any, a definition of large might come into the category a little bit.
After Chairman Biedenbach’s cell phone rang, he stated let me remind everybody if you have them, turn them off.
Commissioner Davenport stated excuse me Mr. Chairman, get a little love out there…
Commissioner Griffith commented “Frank” was coming in, around the corner.
Commissioner Davenport added yes, it mellows you out, changed the whole attitude of the meeting. Excuse me, Mr. Wainscott.
Mr. Wainscott stated it’s all right, any more questions?
Commissioner Griffith stated I’m good, thank you.
Chairman Biedenbach stated do you have anything else you want to add Mr. Wainscott?
Mr. Wainscott stated no sir.
Chairman Biedenbach stated no, okay, fine, okay thank you.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 8
(3-d) South Beach/Well Houses Roof Replacement Design – Change Order No. 3 – Gale Associates, Inc.: and (3-e) ITB No. 08-18 – Lift Station Nos. 4 and 34 Reconstruction – Phase 2: and (3-h) ITB No. 18-18 – Smyrna Substation Equipment – For Smyrna Sub. Main Relocation and Expansion Project:
Commissioner Griffith stated Mr. Chairman I move we adopt 3-d., e., and g.
Chairman Biedenbach corrected d., e., and h.
Commissioner Griffith stated I’m sorry, no wonder I got in trouble – d., e. and h., commented the wrong circle; specifically a motion to approve consent items 3-d. South Beach/Well Houses Roof Replacement Design – Change Order No. 3 – Gale Associates, Inc., approve the change order in the amount of $2,570.00 by Gale Associates, Inc., revising total cost of design project to $54,221.20 and authorize the GM/CEO or his designee to execute the documentation; item 3-e. ITB No. 08-18 – Lift Station Nos. 4 and 34 Reconstruction – Phase 2, approve award to lowest evaluated bidder Masci Corporation in the amount of $489,567.45 and authorize the GM/CEO or his designee to execute the documents associated with this project; and item 3-h. ITB No. 18-18 – Smyrna Substation Equipment – For Smyrna Sub. Main Relocation and Expansion Project, to approve and award to the evaluated low bidders - ABB Superior Power Products for two Power Transformers in the amount of $1,392,475 (includes $10,680 for O&M Training), ABB Superior Power Products for nine Vacuum Circuit Breakers in the amount of $168,300, and GRESCO Utility Supply Inc. for the Circuit Switchers in the amount of $ 74,940,for a total award of $1,635,715.00, and authorize the GM/CEO or his designee to execute the documents associated with the equipment purchases.
Chairman Biedenbach stated no problem to Commissioner Griffith.
Commissioner Holcomb stated I’ll second that.
Chairman Biedenbach stated moved and seconded, Mrs. Simmons, any more discussion, then stated please.
Commissioner Griffith’s motion then passed unanimously on a roll call vote.
(4) General Manager’s Report:
(4-a) Financial Status – June 2018:
Chairman Biedenbach stated Mrs. Merchant please.
Mrs. Merchant addressed the Commission by stating good evening Commissioners, I’m Laurie Merchant the Controller for the Utilities Commission. For the month ending June 30, 2018, the Utilities Commission’s change in net assets for the combined system is a positive $929,620. The balance of the fuel and purchased power account is an over-recovery of $1,565,000, which is a decrease of about $175,000 for the month. For the month of June we had a capital outlay of approximately $1,148,000 on capital projects. And almost after two
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 9
(4-a) Financial Status – June 2018 (cont.): years we finally received approximately a million dollars from FEMA and the State reimbursement of the costs incurred to restore services for Hurricane Matthew. We are still working with FEMA for Hurricane Irma reimbursement.
Chairman Biedenbach stated how much are we expecting from Irma?
Mrs. Merchant stated right now we’re about $1.2 to $1.3 (million) of expenses.
Chairman Biedenbach stated that’s what our expenses are, what are we, we get 75%.
Mrs. Merchant responded FEMA (75%) and 12.5% State, and the other 12.5% is us.
Chairman Biedenbach stated okay, any questions for her?
Commissioner Davenport stated any time frame on getting that money?
Mrs. Merchant stated well it took two years for Matthew.
Commissioner Davenport stated another two years?
Mrs. Merchant stated we’re still in the beginning stages with Irma, we’re still submitting, we’re still, you know, we have one on one actually with Irma. It’s a little bit different the way they handled Matthew and Irma, so right now we’re still working and where we have to upload and documentation, documentation, documentation. And so we’re like nowhere near where one set of eyes have even seen it, so yes, it’s a little bit much but we’re working on it.
Chairman Biedenbach stated any other questions for Mrs. Merchant; then thank you ma’am.
Commissioner Griffith stated thank you Mrs. Merchant for all your help.
(5) Commission Counsel’s Report – General Counsel:
Chairman Biedenbach stated Mr. Cloud, you’re up.
(5-a) Florida Statutes Chapter 112 0 112.31323 Voting Conflicts Compliance – Publicly Read Commissioner Davenport’s Form 8B into Record:
Mr. Cloud stated well I think that the first item is just a, noting the conflicts form was timely filed. It was necessary because of the item that came up last time involving Commissioner Davenport and the surplus properties that are being purchased. And we are proceeding to closing in accordance with Resolution 2018-04.
(5-b) Payment Approval for Gray Robinson - Invoice Nos. 10801853 thru 10801858 – Legal Representation through June 30, 2018 – Total Amount $14,167.68:
Mr. Cloud stated the second item is our bills that have been submitted and, for your approval.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 10
(5-b) Payment Approval for Gray Robinson - Invoice Nos. 10801853 thru 10801858 – Legal Representation through June 30, 2018 – Total Amount $14,167.68 (cont.):
Chairman Biedenbach stated anybody have any questions on Mr. Cloud’s bills for services?
Commissioner Griffith stated we would need Commissioner Britz-Parker to check it out and she’s not here of course.
Chairman Biedenbach stated well yes, but she’s not here, you guys are going to have to wing it without, without the real charge, yes.
Commissioner Griffith stated I guess I’m okay.
Chairman Biedenbach stated okay and I need a motion if we want to pay the guy or I guess he might walk out of here.
Commissioner Davenport stated I’ll make a motion to pay our attorney; specifically payment approval for invoice nos. 10801853 thru 10801858 in the total amount of $14,167.68 for legal representation services by Gray Robinson / Attorney Cloud through June 30, 2018.
Chairman Biedenbach stated we pay him, I need a second.
Commissioner Griffith stated second.
Chairman Biedenbach stated it’s been moved and seconded, does anybody want to try to ask some questions without Commissioner Britz-Parker being here?
Commissioner Davenport stated well I’d like to just have an understanding here that I bought this property three years ago way before I even got appointed to this board, I never thought I’d be on it. So it was a bid process, sealed bids, the Utilities Commission puts it out so I bid on some property and bought a lot, got two lots, three lots. One we’re going to build a Habitat house for it, going to gift it, so I bid on that and build a Habitat for Humanity house, and we’ll have a closing so. And the other piece is right next to my office, so that’s it right there and it’s got a lot of zoning restrictions, so let’s just put it that way. Thank you.
Mr. Cloud stated that’s absolutely correct and the only reason it has taken so long is because of title problems with the property and from 2015 until now is how long it’s taken to clear the title on the property.
Commissioner Davenport stated and I got appointed a little over a year ago, so.
Mr. Cloud stated I think it’s called no good deed goes unpunished.
Commissioner Davenport then stated thank you.
Chairman Biedenbach stated all right.
Commissioner Davenport then added, I only, be good to get it over with.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 11
(5-b) Payment Approval for Gray Robinson - Invoice Nos. 10801853 thru 10801858 – Legal Representation through June 30, 2018 – Total Amount $14,167.68 (cont.):
Chairman Biedenbach stated okay it’s been moved and seconded, Mrs. Simmons please.
Commissioner Davenport’s motion then passed unanimously on a roll call vote.
ADD-ON (5-c) General Manager/CEO Employment Agreement – Joseph G. Bunch:
Mr. Cloud stated the final item is an item that’s added which is the employment agreement between the Utilities Commission and Joe Bunch. Mrs. Pitcher and Commissioner Britz- Parker and I met with him on Friday afternoon. He, we were able to reach him by phone, he came back to the building. We were able to sit down and reach an agreement. We used the form that Mr. Mitchum has, it’s been reorganized but it has essentially the same provisions in it. The contract amount is for $225,000 a year. The benefits are essentially the same we just spelled them out more in this agreement and that was based on information I received from Mrs. Pitcher. We didn’t actually debate the term of the contract. My experience in Florida over 40 years has been that most CEO contracts are entered into for anything from three to five years. And Mrs. Simmons helpfully pointed out this morning that you can’t go beyond four years without obtaining an ordinance of the City of New Smyrna Beach City Commission. So the contract has been drawn up to have an effective date of October 1, 2018. He begins work November 1, 2018, and the contract would expire September 30, 2022. That’s the longest term I could give him without his first item before the City Commission being the approval of his contract. I talked to him about that this morning and he agreed with me that probably not the first thing to carry before the City Commission. So that’s the essence of the agreement, I’d be happy to answer any questions you may have.
Mr. Cloud continued, Mrs. Pitcher has been an “All Star” throughout this entire process, and as have the rest of the members of your Commission staff, and of course the consultant did an excellent job of identifying some very qualified candidates.
Commissioner Holcomb stated one of the things that, been looking at the contract, and again initial contract we’re bringing the guy here and I’m good with that, I’m good with all the terms in here. But as we move forward and we re-up, some of the language, after you’re here three years, you’ve gone through your contract, the severance package I would never vote for again. So I just, I want to make, I get it, you move me down here…
Mr. Cloud stated that language is, there’s no other word for it, it’s horrible because it’s almost incomprehensible.
Commissioner Holcomb stated right.
Mr. Cloud stated and it’s way too detailed but I didn’t feel like that entering into a protracted discussion of termination provisions at this point in time would be a very healthy process given the desires of the Commission to proceed forward.
Commissioner Holcomb stated and again I have no problem with the first, you know like we’re bringing somebody and there’s a commitment on both parties.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 12
ADD-ON (5-c) General Manager/CEO Employment Agreement – Joseph G. Bunch (cont.):
Mr. Cloud stated right.
Commissioner Holcomb continued, to make it work and I don’t have a problem with it. But what I, where I have an issue is just like you had last counsel’s, 16 year participant and we’ve got a $60,000 buy-out. If we don’t like each other by three years, then he can go his way, we can go our way. But I don’t think the next contract needs to have anything and I would hope that we would never engage in that past the initial contract. So just one of the things I looked at, I don’t have a problem with it now but the next term, when you know depends on if I’ll be here or not, but the next contract I would just hope that we don’t make it a practice to just re- up everything because there’s the initial contract and basically re-negotiate a contract or an extension of a contract is a different formula. And I don’t think after three years that we should be paying severance pack. to somebody that’s been here. So I just wanted to make sure, make that clear, because probably when this does come up I won’t be here, so.
Commissioner Davenport stated I’ll agree with, Mr. Chairman, I’ll agree with Commissioner Holcomb. You know this 20 weeks, you know I wish we could have done something, I wish that our Utilities Commission, the staff would take everything we’ve done in hiring this person as CEO, and try to take the steps because we went through so many, and I think when it was all said and done, we have a pretty good system in place. But again, that’s 20 weeks.
Commissioner Holcomb stated again, it’s, I don’t have a problem with it with the initial contract because we’re out trying to encourage somebody to come here. They’re taking a risk, we’re taking a risk, both, both parties have done their due diligence. The initial contract I have no issue with.
Mr. Cloud stated I will, I will tell you that a severance amount in that amount is fairly typical in most City Manager and County Administrator agreements. You know I feel…
Commissioner Holcomb stated I don’t, I agree with that, but what I’m saying is I don’t have a problem initially.
Mr. Cloud stated right.
Commissioner Holcomb stated when we come back and we renew this contract, that provision needs to be removed because at that point, it, I just I don’t like it. I wouldn’t, you could pass it four to one but I sure is not, I’m just not. I’ve never entered into a contract in my life where I, when someone said hey, and again the first three years you’re moving people here, but past that I think it’s insane.
Mr. Cloud stated my biggest objection is just how difficult it was to read and comprehend all of the definitional information that was contained in the severance clause. This is, the severance clause is pretty typical but I hear you loud and clear.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated Commissioner Davenport are you finished?
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 13
ADD-ON (5-c) General Manager/CEO Employment Agreement – Joseph G. Bunch (cont.):
Commissioner Davenport stated yes sir, thank you.
Chairman Biedenbach stated Commissioner Griffith.
Commissioner Griffith stated Mr. Chairman one quick question.
Chairman Biedenbach stated go ahead.
Commissioner Griffith stated term of notification with respect to (unintelligible), 90 days, is that normal, is that average?
Mr. Cloud stated yes, yes it is.
Commissioner Griffith stated 90 days to, before you can terminate somebody, other than by cause or…
Mr. Cloud stated right, it’s actually pretty typical believe it or not.
Commissioner Griffith stated okay, at that level I guess, CEO?
Commissioner Holcomb stated right, well I’ve been exposed to a lot of stupid and I can’t, to me I’m not like you said, I’m not interested in what, if we’re going to sit down, we’re going to negotiate, we’re going to…
Mr. Cloud stated I will say this, because candidly working with Mr. Bunch has been very easy, he’s been very agreeable. If there was a provision in here that gives you all a great deal of heartburn, he would probably agree to it, you know.
Commissioner Holcomb stated I don’t have problem with the initial contract.
Mr. Cloud stated okay.
Commissioner Holcomb stated what’s, where my problem was…
Mr. Cloud stated I don’t want you to think that he had been like you know negotiating every last sentence, that’s not the case.
Commissioner Holcomb stated no, no, no, let me walk this back, my issue is we just paid $60,000 to somebody that was here 16 years, so that’s mind boggling to me. I never want to put the U.C. in that position every again and I just want, I want to emphasize that point as you go and you renew contracts for existing people. That’s all, that’s all I’m saying, that shouldn’t, that provision should have never been in that contract and I would, if we came back three years from now and I was sitting here and that was still in there I would not approve that contract. That’s all, and I don’t think we should, at that point we both, we’re both vested partners, let’s go based on the merits of the job and do your, do your work. So, just because things have been done certain ways, I don’t want to fall into accepting that standard, that’s all I’m, that’s my two cents, I’ll just leave it at that.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 14
ADD-ON (5-c) General Manager/CEO Employment Agreement – Joseph G. Bunch (cont.):
Commissioner Davenport stated I concur 100%, what Commissioner Holcomb said.
Commissioner Griffith stated I would just comment after Mrs. Pitcher issued the good news of the acceptance, I gave Mr. Bunch a call Friday night. Just to welcome him to the U.C. and to welcome him to New Smyrna Beach.
Mr. Cloud stated super.
Commissioner Griffith stated and he was very excited about coming.
Commissioner Holcomb stated this isn’t a Mr. Bunch issue, this is…
Commissioner Griffith stated no, no right.
Commissioner Holcomb stated I’m happy with Mr. Bunch too, I like what we’ve got, and I know he didn’t negotiate this, this is the contract that he got. I’m good with that, this is more 36 months from now.
Mr. Cloud stated we were just trying to get everything off on a good foot.
Commissioner Holcomb stated right, and I, I’m very happy with the selection so I don’t want that to be, it has nothing to do with Mr. Bunch. It’s going back to the, the, learn from the, your past, the sins of your past I guess.
Chairman Biedenbach stated everybody done?
Commissioner Holcomb stated yes.
Chairman Biedenbach stated I need a motion to accept this contract.
Commissioner Griffith stated so moved; specifically a motion to approve the General Manager/CEO Employment Agreement between the Utilities Commission and Joseph G. Bunch as submitted.
Chairman Biedenbach stated it’s been moved, I need a second.
Commissioner Holcomb stated I’ll second it.
Chairman Biedenbach stated moved and seconded, any more discussion; Mrs. Simmons please.
Commissioner Griffith’s motion then passed unanimously on a roll call vote.
Chairman Biedenbach stated yes, I am very happy with the man that we have chosen and I want to thank everybody that had a fist or a finger or part of this, going from the staff people to our attorney, and particularly to the four other people who sit up here. I know how much time I spent just on this thing going through the resumes and trying to figure out and then the
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 15
ADD-ON (5-c) General Manager/CEO Employment Agreement – Joseph G. Bunch (cont.): interviews and then not sleeping very well the night that we had to make this decision. And it worked out well and I want to thank everybody for your help.
Commissioner Holcomb stated I’d, I’d concur with that. The one thing that I did like is the way that it, when we went through it we adjusted. I liked the dialogue, I liked the debate, I really liked the transparency where it was done openly. There’s nothing that I see that I have to, that I feel that I’ve got to defend. I mean I’m really happy moving forward. And again staff, you know that’s for us, you know from getting Mr. Hoover here to Mrs. Pitcher answering multiple questions, multiple phone calls, you know for us it’s not, you know it’s not as easy as you know we take it very seriously and I know that. But I’m really excited, as I, you know after you make a decision and you’re done you kind of get a couple of days to think about it and I, as the time has worn on I feel very good about the selection we’ve made. So I just, for me it was learning, going through it, and I think it was, I’m trying to think of a question I didn’t get answered or something I didn’t understand. So there was a lot of resources from the vendor, to staff, to the attorney, to just about everybody involved. Even the current CEO writing a letter of what he wanted us to focus on, what he thought were key points. So there was a lot of people that went into working to find the right person, and again we have 160 employees and a lot of ratepayers that really wanted us to get this right and I hope that we did. And there’s no certainty in that but I think we did the best we could, so like I said I feel good about that too moving forward.
Commissioner Griffith stated great team effort from start to finish, especially with a great outcome.
(6) Old Business
(6-a) Draft RSQ No. 01-19 – 2019 Comprehensive Rate Study:
Chairman Biedenbach stated Mr. Wainscott, you are up please.
Mr. Wainscott addressed the Commission by stating Mr. Chairman item 6-a. is a draft RSQ and the three additional pages are what would be the scope of a contract with the selected consultants. What I need from the Commission is a review of the RSQ, a review of the scope of the proposal, and any input that you might have. We are intending to push this out, it’s RSQ 01-19 which means it will have to wait until October to go out. From our perspective we want the new CFO on board and here so that he has a say in it as well.
Commissioner Holcomb stated you said October 1st, this would go out?
Mr. Wainscott stated October 5th is the tentative start date.
Commissioner Holcomb stated and again I don’t know how this works because our contract doesn’t start with our new CEO until October 1st, is that correct?
Mr. Cloud stated yes, that’s correct.
Commissioner Holcomb stated I’m sure…
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 16
(6-a) Draft RSQ No. 01-19 – 2019 Comprehensive Rate Study (cont.):
Mr. Cloud stated but he doesn’t come on…
Commissioner Holcomb interjected until November.
Mr. Cloud continued it’s actually until November 1st, yes.
Commissioner Holcomb stated but we, again are these things that probably want it, so he knows what’s coming. I’d hate to have to come in and all of a sudden, oh by the way we did this three meetings ago and we’re…
Mr. Wainscott stated he’d have a full opportunity to look at the contract for the physical rate study itself.
Commissioner Holcomb stated okay.
Mr. Wainscott stated we probably wouldn’t give him an opportunity to evaluate the submitters for the RSQ.
Commissioner Holcomb stated but the content.
Mr. Wainscott stated he wouldn’t be managing the project, it would be handled through my office and the new CFO’s office.
Chairman Biedenbach stated you said he did look at it, like on Friday, or did I misunderstood?
Mr. Wainscott stated no, no, he would have an opportunity to evaluate the contract for the actual rate study. This is going to be evaluated and the selection committee is going to make a recommendation. I’ll bring that recommendation to this board.
Commissioner Holcomb stated right.
Mr. Wainscott stated I will then enter a negotiation to go to contract for the proposal to perform the actual rate study. That will also come to this board and by that time the new CEO, CFO should have their feet under them and up and running.
Commissioner Holcomb stated okay.
Chairman Biedenbach stated is, let me ask a question, is there any, should we send this proposal, what do you call this at this point Mr. Wainscott?
Mr. Wainscott stated I call that a Request for a Statement of Qualifications.
Chairman Biedenbach stated okay, do we want to send that to the new CEO and let him run over it?
Mr. Wainscott stated it’s a fairly benign draft form, I mean it’s, it’s a form that we use and we just changed a little bit of the scope. So all’s he would be looking at is a general description
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 17
(6-a) Draft RSQ No. 01-19 – 2019 Comprehensive Rate Study (cont.): of the services needed on page three of the RSQ, thank you. General description of services needed and there’s a list of, looks to be about seven or eight items there.
Commissioner Griffith stated yes, they’re pretty basic.
Commissioner Holcomb stated they’re pretty common, what you’re saying is they’re pretty common the way that we’re (unintelligible)…
Mr. Wainscott stated yes, we took the last rate studies, we’ve took everything that we did in those and we put them in here, it’s…
Chairman Biedenbach stated all right.
Commissioner Holcomb stated you mean the ones we did, that we did and didn’t execute? Okay, just curious, just wanted to, all right.
Chairman Biedenbach stated just wanted to get that in. Mr. Wainscott…
Mr. Wainscott stated thanks Commissioner Holcomb.
Chairman Biedenbach commented we do have some fun up here. One meeting, two meetings ago I asked you about the “800 acres” and you indicated to me if I remember correctly was it, was in this rate study, that there would be something about what to do with the “800” and how to manage that or whatever. Am I…?
Mr. Wainscott stated different RSQ.
Commissioner Holcomb stated right.
Mr. Wainscott stated that RSQ opens on the 26th which is Thursday of this week.
Chairman Biedenbach stated we’ve already done that?
Mr. Wainscott stated yes.
Chairman Biedenbach stated I’m that far behind, okay, thank you.
Commissioner Holcomb stated then basically that just aligns the qualified candidates, by the time we bring all that back we’re going to have all the new players in place, so we’ll then, I’m…
Chairman Biedenbach stated sorry, obviously.
Mr. Wainscott stated that’s all right.
Commissioner Holcomb stated good question.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 18
(6-a) Draft RSQ No. 01-19 – 2019 Comprehensive Rate Study (cont.):
Mr. Cloud stated you’re not asking for their approval of this tonight are you, you’re just asking for input.
Mr. Wainscott stated I am asking only for input.
Commissioner Holcomb stated right.
Mr. Cloud stated yes, yes.
Chairman Biedenbach stated so you want us to go back and look at this and make sure we’re all…
Mr. Wainscott stated correct and then next month…
Chairman Biedenbach stated that we’re all agreed, not necessarily are we correct.
Mr. Wainscott stated I don’t need you to agree to anything, I need your redlines…
Chairman Biedenbach stated I understand Mr. Wainscott.
Mr. Wainscott continued, I need your markups on it and whether that goes through Mr. Mitchum’s office and what not. It’s a, I need Mr. Cloud’s input on it as well.
Commissioner Holcomb stated right, that’s the…
Mr. Wainscott stated but that’s the, the reason here is you guys wanted to see the draft RSQ so we brought everything to you.
Chairman Biedenbach stated right, all right. Commissioner Davenport do you have any questions?
Commissioner Davenport stated no.
Chairman Biedenbach stated Commissioner Holcomb? Commissioner Griffith?
Commissioner Griffith stated no, I’m good.
Commissioner Holcomb stated I’m just…
Chairman Biedenbach stated I’m sorry, I cut you off.
Commissioner Holcomb stated all right, again, and I have no problem with you asking for input and I like that but if, where would I go is the person to be qualified to give you input to basically evaluate this. I mean I want to help you but I don’t, instead of just sitting down with Mr. Mitchum, because again this is the first one I’ve seen in my life, okay. Not, not this year, not this week, my life, okay, so I’m smart enough to sit up here and tell you sometimes I don’t know, I don’t know, so where would I go if I’m looking for it.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 19
(6-a) Draft RSQ No. 01-19 – 2019 Comprehensive Rate Study (cont.):
Mr. Wainscott stated I’m sure we could get you a copy of the one performed in 2012 and the one performed in 2005 for you to compare it to.
Commissioner Holcomb stated okay.
Mr. Wainscott stated as far as comparing it to what other utilities do, it’s, you really can’t compare it.
Commissioner Holcomb stated all right.
Mr. Wainscott stated Mr. Cloud has already forwarded me some information on how we compare in our in our rates to our neighbors, here and there, and the FMEA. I think there’s 33 other locals like us that are part of that. So I, it’s, there’s information out there.
Commissioner Holcomb stated well again if that, because when I do look at that if you find where people, when I look at that same report, some people evaluate 1,000 kilowatts and then some are 1,250, and then there’s the commercial aspect of it, so that’s you know. Is it all of those or is it, the 1,000, the 1,250? I’ll ask those questions, directed to Mr. Mitchum, when you get back I’ll just, you explain it to me, how does that sound?
Mr. Mitchum stated this is a very comprehensive rate study that we’re sending out, more detail than previous. We’re looking at you know different aspects of rates, also maybe even tiered rates which a lot of other utilities are doing.
Mr. Wainscott stated and perhaps the question, I’m sorry Mr. Mitchum I didn’t mean to cut you off, perhaps the questions that you’re asking would be once we select a consultant and we have a proposal in front of us we can ask you how are you going to do this rate study.
Commissioner Holcomb stated all right, that’s all I’m trying, just an understanding of what actually goes into it.
Mr. Wainscott stated you’ll have it twice.
Commissioner Holcomb stated all right, fair enough, thanks.
Chairman Biedenbach stated any other questions for Mr. Wainscott, and then stated thank you Mr. Wainscott.
(7) New Business
(7-a) Healthcare Benefits Renewals FY2019:
Chairman Biedenbach stated okay, Mrs. Pitcher. And I want to thank you again for last month, I know you were trying to be on vacation and come back for that and I thank you for that dedication, I really do.
Mrs. Pitcher stated you’re welcome.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 20
(7-a) Healthcare Benefits Renewals FY2019 (cont.):
Chairman Biedenbach stated and it’s, while I’m saying it and the same with you Mr. Mitchum, you’re on vacation, thank you for coming back for tonight.
Mr. Mitchum stated you’re welcome, thank you.
Chairman Biedenbach stated go ahead Mrs. Pitcher.
Mrs. Pitcher addressed the Commission and stated her name and title – Director of Human Resources. We have before you tonight for approval renewals of our health care options. And this year we’re looking at a 0% renewal on our major medical, a 3% on our dental, 0% on vision, 0% on life and disability. The 3% on dental is roughly about 30 cents to $2.00 an increase a month, so very minimal. Do you have any questions?
Chairman Biedenbach stated is that, is that our contribution or our employees’ contribution?
Mrs. Pitcher stated dental is employee contribution.
Chairman Biedenbach stated okay.
Mrs. Pitcher continued, so the Utilities Commission is not going to see any increase in premiums.
Chairman Biedenbach stated all right. Commissioner Davenport do you have anything that you, you’re in the insurance business there do you have…?
Commissioner Davenport stated who’s agent of record on this?
Mrs. Pitcher stated we have PRIA.
Commissioner Davenport stated I’m good with that.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated 0% renewals, I mean you’ve got to be good with that right?
Mrs. Pitcher stated absolutely.
Commissioner Holcomb stated I mean, I wish, I wanted to see the same thing, I didn’t get the sheet at my place so I’ve got questions to ask but they’re not here they’re back at my business. That’s a good job.
Chairman Biedenbach commented you want to hire her to negotiate for you back at the car store.
Commissioner Holcomb stated it’s the only thing I can count on going up every year.
Chairman Biedenbach stated Commissioner Griffith.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 21
(7-a) Healthcare Benefits Renewals FY2019 (cont.):
Commissioner Griffith stated great numbers, great work, I mean 0’s and 3’s are pretty darn outstanding.
Chairman Biedenbach stated yes, that, you don’t see those too often. All right, you need us to tell you that we like it and we want to buy it.
Mrs. Pitcher stated yes sir.
Commissioner Holcomb stated I move to approve agenda item 7-a.; specifically approval of the continuance of employee medical insurance for fiscal year 2019 with the carriers/ coverages listed in the summary of the agenda item: Major Medical – Florida Healthcare Plans (current carrier) – 0% Renewal; Dental – The Standard (current carrier) – 3% Renewal; Vision – EyeMed (current carrier) – 0% Renewal (remains on rate guarantee), Supplemental (Voluntary) – Colonial (current carrier), and Basic Life/AD&D, Short/Long Term Disability – The Standard (current carrier) – 0% Renewal (remains on rate guarantee).
Chairman Biedenbach stated somebody else, second.
Commissioner Griffith stated second.
Chairman Biedenbach stated moved by Commissioner Holcomb and okay, any other discussion; then go ahead Mrs. Simmons.
Commissioner Holcomb’s motion then passed unanimously on a roll call vote.
(8) Possible Other Business – Time for Commissioners:
Chairman Biedenbach stated okay, do you have anything for the good of the organization Commissioner Davenport.
Commissioner Davenport stated no, it was just really exciting to work with everybody. I can’t say enough good things about Mr. Mitchum and what you did and selecting a new CEO, and all the hard work, Mrs. Keehn, Mrs. Pitcher, and Mr. Hoover, you know everybody, it was really a great team effort. You know I appreciate some feedback I got during all the interviews, I would ask questions, some of our wonderful employees and they would respond to me, so thank you.
Chairman Biedenbach stated Commissioner Holcomb.
Commissioner Holcomb stated no.
Chairman Biedenbach stated Commissioner Griffith.
Commissioner Griffith stated just a question, our new CFO, great news, great. He will be expected some time…
Mr. Mitchum stated I believe it’s July 30th.
MINUTES OF REGULAR UC MEETING HELD 7-23-18 PAGE 22
(8) Possible Other Business – Time for Commissioners (cont.):
Commissioner Griffith stated is it July 30th?
Chairman Biedenbach stated would you tell us how to pronounce his name please Mrs. Pitcher.
Mrs. Pitcher stated it’s Vodzack.
Commissioner Griffith reiterated Vodzack, V, O, D, Z, A, C, K.
Chairman Biedenbach stated Vodzack, am I saying correctly? Thank you.
Commissioner Davenport stated how about Mr. “V”.
Chairman Biedenbach stated Mr. “V”, yes I like that. Mr. Cloud, do you have anything you want to say for the good of the organization?
Mr. Cloud stated no sir.
Chairman Biedenbach stated Mr. Mitchum.
Mr. Mitchum stated I’m done, thank you.
Chairman Biedenbach stated we’ve had enough fun for tonight, thank you, we’re done.
There being no further business to come before the Commission, the Regular U.C. Meeting closed at 6:41 p.m.
APPROVED: ATTEST:
______CHAIRMAN SECRETARY-TREASURER
These minutes were formally approved by the Utilities Commission at their ______, 2018 meeting.
DEVELOPER’S INFRASTRUCTURE, CAPACITY AND INSPECTION AGREEMENT
Tydemark Condominiums
This Developer’s Infrastructure, Capacity and Inspection Agreement, (“AGREEMENT”) is made this ______day of ______, 2018, by and between the UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, (“COMMISSION”), and HBT OF NSB LLC, a Florida Limited Liability Company, by TOWNE REALTY, INC., sole member, CORPORATION, LICENSED IN THE STATE OF FLORIDA, authorized to do business in the State of Florida, (“DEVELOPER”).
R E C I T A L S
WHEREAS, DEVELOPER owns certain property (“PROPERTY”) located in Volusia County, Florida, within COMMISSION’S service area(s) and is described in EXHIBIT “A”;
WHEREAS, DEVELOPER, requests utility service with connections for electric, potable water, irrigation water, wastewater, and/or reclaimed water, or any combination thereof;
WHEREAS, COMMISSION is willing to provide electric, potable water, irrigation water, wastewater, and/or reclaimed water service to DEVELOPER in accordance with and subject to the terms and conditions of this AGREEMENT and all applicable rules, regulations, specifications, laws, and requirements. Any changes, additions or deletions made to the language in this AGREEMENT are shown in the attached EXHIBIT "B";
WHEREAS, COMMISSION has other charges and fees for development, as detailed in COMMISSION’s Rates Charges and Fees Summary, which are not detailed in AGREEMENT, which DEVELOPER may also need to pay;
WHEREAS, the utility infrastructure (involving electric, water, wastewater, and reclaimed water supply facilities herein referred to as utility infrastructure) of COMMISSION to support growth as planned is impacted by the aggregate of all surrounding development;
WHEREAS, to apportion the costs for the utility infrastructure needs to support a given area, COMMISSION desires to fairly apportion costs to DEVELOPER for the future or existing infrastructure to meet needs to serve multiple developments of differing size, use, and scope;
WHEREAS, in recognition of the benefits of conceptual long-range planning for the build out of an area pursuant to the comprehensive plan, and detailed planning for specific areas, consistent with the comprehensive plan; to further the intent of Florida Statutes s. 163.3177(11) which supports innovative and flexible planning and development strategies, and the purposes of Chapter 163, Florida Statutes, and to avoid the disproportionate distribution of costs upon existing customers for necessary services for new customers;
Page 1 of 17
WHEREAS, COMMISSION will not review, consider, or sign any permit applications until DEVELOPER has remitted payment, in full, of infrastructure and inspection fees;
WHEREAS, DEVELOPER has developed plans and specifications relative to the COMMISSION’s facilities to serve DEVELOPER’s PROJECT as described in EXHIBIT “C” and located in EXHIBIT “D” and surrounding areas;
WHEREAS, DEVELOPER shall submit with this AGREEMENT, all documents as detailed in the AGREEMENT and other documents requested by COMMISSION, as deemed practical, for review and approval by COMMISSION;
WHEREAS, DEVELOPER represents that it expects to develop PROPERTY in accordance with County of Volusia or City of New Smyrna Beach’s Land Development Regulations and other policies in one phase, COMMISSION agrees to provide service for one phase; and,
WHEREAS, electric, potable water, irrigation water, wastewater, and reclaimed water service for PROPERTY shall be provided in the manner described below and subject to the terms and conditions described herein.
NOW, THEREFORE, in consideration and incorporation of the RECITALS hereof, for and in consideration of the mutual understanding and agreement herein contained and assumed, and other good and valuable considerations received by each party from the other, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby AGREE as follows:
SECTION 1 DEFINITIONS
The parties agree that in construing this AGREEMENT, the following words, phrases, and terms shall have the following meanings unless the context requires otherwise:
1.1 TYDEMARK CONDOMINIUMS (“PROJECT”) is the trade name or commercial name of the improvements described herein, which are to be constructed on the PROPERTY. Project Summary and Location Map are located in EXHIBITS “C” and “D”. EXHIBITS “C” and “D” shall be provided by DEVELOPER.
1.2 “Adjustments to the Infrastructure and Capacity Fee Payments” means if DEVELOPER alters the Plan and Specifications to DEVELOPER’s Facilities and is re- permitted for such alterations, and the number of services, meters, or any other points of connections to the COMMISSION’s system is affected, the amount paid hereby shall be adjusted upward or downward accordingly.
1.3 “Assignment” means DEVELOPER may assign all of the right, title and interest in and to and under this AGREEMENT, subject, however, to the express condition precedent that the written consent is first obtained from COMMISSION. Assignee agrees to perform all of the duties and obligations of DEVELOPER under AGREEMENT. If DEVELOPER has provided a Guarantee of Payment for the monies subject to this AGREEMENT in any form, (i.e. Irrevocable Letter of Credit), said Guarantee of Payment shall remain in effect until the obligations
Page 2 of 17 hereto have been paid in full or Assignee institutes a subsequent Guarantee of Payment to the satisfaction of the COMMISSION.
1.4 "Business Day and Working Day" - These terms are used interchangeably and shall mean weekdays Monday through Friday, 8:00 a.m. to 5:00 p.m., inclusive, excluding legal holidays.
1.5 “Capacity Fees” means fees based on capital costs spent to provide potable water, irrigation water, wastewater, and reclaimed water, and the impact that each individual structure(s) has on said systems.
1.6 "DEVELOPER’s Facilities" means those collection, distribution, and transmission facilities the DEVELOPER will construct to provide electric, potable water, irrigation water, wastewater, and reclaimed service.
1.7 "PROPERTY" means that real property described in EXHIBIT "A" hereof.
1.8 "Disclosure of Beneficial Interest Pursuant to Florida §286.23 Form" - Pursuant to Florida §286.23 (1), any person or entity holding real property in the form of a partnership, limited partnership, corporation, trust or any form of representative capacity whatsoever for others, shall, before entering into any contract whereby such real property held in representative capacity is sold, leased or taken by eminent domain, or otherwise conveyed to the state or any local governmental unit, make a public disclosure in writing, under oath, and subject to the penalties described for perjury, stating the name and address of any and every person having a beneficial interest in the real property, however small or minimal. The written disclosure shall be made to the local government unit, in this case, General Manager/CEO, Utilities Commission, City of New Smyrna Beach, Florida, P.O. Box 100, New Smyrna Beach, Florida 32170-0100. Said disclosure will be made an integral part of this AGREEMENT and will be referred to as EXHIBIT "E".
1.9 "Final Acceptance" means DEVELOPER has complied with all the requirements per this AGREEMENT and with all the requirements included in the Electric Rules and Standards, Potable Water Rules, Design and Construction Specifications, Wastewater Rules, Design and Construction Specifications, and Reclaimed Water Rules, Design and Construction Specifications, current editions.
1.10 “Infrastructure Fees” means fees paid by DEVELOPER to COMMISSION for such infrastructure improvements necessary to support the planned growth for the future or existing infrastructure to meet needs to serve multiple developments of differing size, use, and scope. COMMISSION shall use all or a portion of such escrowed monies at any time for said utility infrastructure improvements as deemed necessary by said COMMISSION. Infrastructure Fees shall be due and payable on or before the execution of this AGREEMENT and prior to signing off on any permit applications.
1.11 "Inspection Fee" means an Inspection Fee will be charged to a DEVELOPER for potable water, wastewater, and reclaimed water for inspection services rendered by COMMISSION for the development referenced herein. Inspection Fees shall be due and payable on or before the execution of this AGREEMENT and prior to signing off on any permit application.
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1.12 "Plans and Specifications" means those documents and drawings prepared and submitted by DEVELOPER’s engineer and/or their consultant in compliance with COMMISSION's requirements for the construction of DEVELOPER's Facilities.
1.13 "Rate Resolutions" means all resolutions or tariffs either currently in effect or to be adopted in the future by the COMMISSION, which establish or fix rates, fees, charges and deposits for the water, wastewater, and reclaimed water system of the COMMISSION.
SECTION 2 TIME FOR COMPLETION
2.1 DEVELOPER and COMMISSION agree that all terms and conditions of this AGREEMENT shall be performed within four (4) years of the date of execution by all parties after such time, AGREEMENT shall become Null and Void.
SECTION 3 PAYMENTS
3.1 INFRASTRUCTURE PAYMENTS - DEVELOPER shall pay the amount as set forth below to pay for such infrastructure improvements necessary to support the planned growth. COMMISSION shall use all or a portion of such escrowed monies at any time for said utility infrastructure improvements as deemed necessary by COMMISSION.
3.2 ADJUSTMENTS TO INFRASTRUCTURE PAYMENTS - If DEVELOPER alters the Plans and Specifications to DEVELOPER’s Facilities and it is re-permitted for such alterations, the amount paid hereby shall be adjusted upward or downward accordingly.
3.3 TIME FOR PAYMENT - Payment of Inspection and Infrastructure Fees shall be made within 180 days from the COMMISSIONER’S authorization for the CEO/GM to execute this AGREEMENT, or any permit applications, whichever shall first occur, after which this AGREEMENT shall be null and void. Upon payment, COMMISSION will issue paid receipts, review and execute permit applications for utility extensions by DEVELOPER for electric, potable water, irrigation water, wastewater and reclaimed water. Payment of Capacity Fees shall be made in full in advance of building permit application, at which time COMMISSION will issue a receipt for Capacity Fee payment for DEVELOPER’s use. No relevant permit will be issued without payment in full.
SECTION 4 DESIGN AND CONSTRUCTION OF DEVELOPER'S FACILITIES
4.1 DESIGN OF DEVELOPER'S POTABLE WATER, IRRIGATION WATER, WASTEWATER, AND RECLAIMED WATER FACILITIES - As a condition precedent to this right to receive potable water service capacity, irrigation water service capacity, wastewater service capacity, and reclaimed water service capacity from COMMISSION, DEVELOPER shall, at its expense, cause its own Florida Registered Professional Engineer to design, produce and submit to COMMISSION for its review, approval or rejection, prior to construction, graphic plans and written specifications for the construction of DEVELOPER's Facilities to serve TYDEMARK CONDOMINIUMS.
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4.2 DESIGN OF THE DEVELOPER’S ELECTRIC SYSTEM - As a condition for AGREEMENT approval by COMMISSION, DEVELOPER shall at its expense, cause its own Florida Registered Professional Electrical Engineer or a licensed electrician to submit the Electric Information Load Sheet and the PROJECT’s Electric Riser or Line Diagram. As a condition precedent to the right to receive electric service capacity, and upon receipt of payment of the Inspection Fees and Infrastructure Fees, COMMISSION will design the Electric Conduit System. DEVELOPER shall, at its expense, cause its own contractor to purchase and install conduits and appurtenances in accordance with COMMISSION issued drawings.
4.3 APPROVAL OF PLANS AND SPECIFICATIONS FOR DEVELOPER'S FACILITIES - COMMISSION shall review, approve or reject, any such plans, specifications, electric load sheets, and electric line diagram submitted pursuant to subsection 4.1 and 4.2 hereof within forty-five (45) days after receipt of said documents. At DEVELOPER's expense, DEVELOPER's Engineers shall make corrections or modifications to any portion of the plans and specifications which are unacceptable to COMMISSION, and shall resubmit the corrected or modified plans and specifications to COMMISSION for further review until COMMISSION approves the plans and specifications. COMMISSION shall have, in each case, thirty (30) additional days within which to approve or reject any such revisions to said plans and specifications.
4.4 PERMITTING - DEVELOPER shall, at its expense, obtain all necessary federal, state and local permits or approvals required for the construction of DEVELOPER's Facilities to be constructed pursuant to this AGREEMENT. DEVELOPER shall send written copies of all permit applications filed with federal, state or local governmental entities to COMMISSION and shall also provide COMMISSION with copies of all written permits, approvals, requests for additional information, or denials received by DEVELOPER in connection with such permit applications.
4.5 CONSTRUCTION OF DEVELOPER'S FACILITIES - After COMMISSION's approval of the plans and specifications for any phase or portion of DEVELOPER's Facilities, DEVELOPER shall, at its expense, construct and install that phase or portion of DEVELOPER's Facilities as the same are depicted in COMMISSION's approved plans and specifications therefore. DEVELOPER warrants that DEVELOPER's Facilities to be constructed by it pursuant to this AGREEMENT shall be constructed in accordance with the approved plans and specifications, and also in accordance with all applicable state, federal and local laws regulations, rules and ordinances.
4.6 INSPECTION AND APPROVAL OF CONSTRUCTION – a. COMMISSION shall have the continuing right to enter upon PROPERTY, right-of- ways, and easement areas within which DEVELOPER's Facilities are constructed to inspect the construction of any such facilities at any time without prior notice. COMMISSION shall have the right to disapprove all or any portion of DEVELOPER's Facilities which are not constructed in accordance with the approved plans and specifications thereof and shall give notice within three (3) working days of any construction deficiencies discovered during the course of any such inspection. Within ten (10) days after the date COMMISSION inspects any such facilities, COMMISSION shall give written notice to DEVELOPER of the existence of construction deficiencies. b. The written notice of construction deficiencies shall specify the nature of the particular construction deficiencies. All corrective action shall be done by DEVELOPER at its
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expense. Upon correction of such deficiencies, DEVELOPER shall notify COMMISSION of the correction(s) and COMMISSION shall thereafter re-inspect the construction within five (5) business days from the receipt of said notice. COMMISSION reserves the right to inspect DEVELOPER during corrective action. c. Prior to application for a City or County building permit for any structures within the PROJECT, DEVELOPER shall give written notice to COMMISSION of an anticipated completion of construction of those DEVELOPER's Facilities necessary to enable COMMISSION to provide electric, water, wastewater, and reclaimed water service to said structures. Said notice shall request a specific date for COMMISSION's acceptance inspection (also to be the date when the pressure test, bacteriological test and any other tests shall be performed), and shall not be less than thirty (30) days from the date of said notice, provided said date shall not fall on a Saturday, Sunday, or legal holiday. COMMISSION shall inspect the construction of, and witness the tests for, any such DEVELOPER's Facilities for which it has received said written notice. Within thirty (30) days after COMMISSION receives notification of all such test results, COMMISSION shall prepare and send written notice to DEVELOPER of acceptance or the rejection of said facilities. d. Upon correction of any construction deficiencies discovered during the inspection referred to in subsection 4.5 (c) hereof, DEVELOPER shall notify COMMISSION of the correction(s) and the date when new tests and another inspection shall be performed, which date shall be no less than five (5) business days from the date of receipt of said notice. Upon passage of all necessary tests, COMMISSION shall approve DEVELOPER's compliance with all other applicable regulations and subsection 4.8 hereof, assume ownership, control and responsibility for the operation and maintenance of the same pursuant to SECTION 4 hereof. e. The time limits for COMMISSION inspections, reviews, approvals and rejections of design and construction, set forth herein, shall apply to inspections, reviews, approvals, and rejections of DEVELOPER's Facilities only, and shall not bind COMMISSION with respect to any other inspections, reviews, approvals and rejections concerning PROPERTY. f. If DEVELOPER desires to carry on work at night or outside the Business Day, DEVELOPER shall submit a request to COMMISSION. DEVELOPER shall provide three (3) Business Days’ notice to enable satisfactory arrangements to be made for inspecting the work in at night or outside the Business Day. When granted permission, DEVELOPER shall reimburse COMMISSION for overtime incurred by its inspection personnel.
4.7 CONVEYANCE OR DEDICATION OF FACILITIES AND EASEMENTS – a. No later than ten (10) days after request by COMMISSION (but prior to COMMISSION's final acceptance of any phase of DEVELOPER's Facilities), DEVELOPER shall provide COMMISSION an opinion from DEVELOPER's counsel to COMMISSION, upon which COMMISSION will rely, to the effect that the lands to be encumbered by all easements to be conveyed or dedicated by DEVELOPER to COMMISSION pursuant to this AGREEMENT with respect to that phase or portion of DEVELOPER's facilities to be accepted by COMMISSION for ownership, operation and maintenance are, in fact, owned by DEVELOPER, free and clear of all liens (including mechanics' liens) and encumbrances. In the event that liens and encumbrances exist, they shall be listed in the opinion, other than those acceptable and approved, in writing, by COMMISSION. Such opinion of counsel, when rendered, may reflect that
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the lands involved are encumbered by a development mortgage or mortgages, but any such mortgage or mortgages must be subordinated to or released from the lands upon which easements are to be granted to COMMISSION pursuant to this AGREEMENT at the time such DEVELOPER's Facilities and easements are granted to COMMISSION. b. Prior to final acceptance of DEVELOPER's Facilities for ownership, operation and maintenance by COMMISSION, DEVELOPER shall: 1) convey, grant or dedicate to COMMISSION, free and clear of all liens and encumbrances, such easements as are necessary for COMMISSION to own, operate, maintain, repair, expand and replace DEVELOPER's Facilities accepted by COMMISSION, including all DEVELOPER’s Facilities constructed thereon, and, 2) transfer and convey to the extent that the same are transferable all governmental approvals and permits that will enable COMMISSION to operate the applicable phase or portion of those DEVELOPER's Facilities and provide electric service capacity, water service capacity, wastewater service capacity, and reclaimed water service capacity (as appropriate) to DEVELOPER's PROPERTY, and notify all governmental agencies of such transfer and conveyance as may be required by law. COMMISSION shall review and approve or reject within twenty-one (21) days after receipt thereof, all documents submitted by DEVELOPER pursuant to this subsection 4.7(b).
4.8 MAINTENANCE BOND – a. DEVELOPER shall submit an itemized construction costs for the Utilities extended by DEVELOPER, suitable to COMMISSION prior to final acceptance or approval of such facilities. COMMISSION will retain the right to accept or reject the construction costs. This itemized construction costs submitted shall be used to determine the amount of the bond or letter of credit for purposes of this subsection 4.8. b. Prior to the final acceptance by COMMISSION of said phase or portion of said facilities, DEVELOPER shall obtain a maintenance bond for the period of one (1) year from an agreed upon date for acceptance in a form acceptable to COMMISSION. The Maintenance Bond will be made payable to COMMISSION, in an amount equal to twenty-five percent (25%) of the construction cost of said phase or portion of said facilities in order to guarantee the correction of any defects in workmanship or materials of said facilities. c. In lieu of providing maintenance bonds as set forth in this subsection 4.8.b, DEVELOPER may, at its option, provide irrevocable letters of credit, drawn on a bank located and doing business in Volusia County, Florida, made payable to COMMISSION in an amount equal to twenty-five percent (25%) of the construction cost of said phase or portion of said facilities and in a form acceptable to COMMISSION.
4.9 EFFECT OF REVIEWS, INSPECTIONS, APPROVALS AND ACCEPTANCES - Any reviews, inspections, approvals, and acceptances or the absence thereof by COMMISSION of the plans and specifications and construction shall not constitute a waiver of any claims arising from (1) faulty or defective design, (2) faulty or defective construction, (3) unsettled liens and encumbrances, and (4) tort claims.
4.10 EXPANSION AND INTERCONNECTION BY THE COMMISSION - COMMISSION may expand any of DEVELOPER's Facilities which it accepts pursuant to this AGREEMENT, or interconnect said facilities with other portions of COMMISSION's electric,
Page 7 of 17 potable water, irrigation water, wastewater, or reclaimed water systems (as appropriate) at any time at COMMISSION’s expense. COMMISSION may allow other connections to the systems as COMMISSION deems appropriate for service to adjacent properties.
4.11 SAVE HARMLESS CLAUSE - DEVELOPER covenants and agrees to indemnify and save harmless COMMISSION and to defend it from all costs, expenses, damages, attorney's fees, injury or loss, to which COMMISSION may be subjected by any person, firm, corporation or organization by reason of any wrongdoing, misconduct, want or need to care of skill, negligence or default or breach of contract, guaranty, or warranty, by DEVELOPER, his employees, his agent or assigns.
SECTION 5 ACCEPTANCE FOR OPERATION AND MAINTENANCE OF DEVELOPER'S FACILITIES
5.1 Subject to DEVELOPER's compliance with the current editions of each utilities Rules and Specifications (Standards) and the provisions hereof, COMMISSION or its successors shall accept ownership and assume responsibility for the operation and maintenance of those DEVELOPER's Facilities for which COMMISSION has accepted, up to, including, but not further than, the location of each individual point of service connection. 1) For electric, the point of connection will be the transformer or pedestal. 2) For potable, irrigation, and reclaimed water, the point of connection is the meter. 3) For wastewater, the point of connection is the cleanout placed at the right-of-way lines or easement lines.
5.2 COMMISSION shall not be responsible for the operation and maintenance of any DEVELOPER's Facilities located outside of right-of-ways or easements granted to COMMISSION pursuant to the AGREEMENT.
5.3 Upon acceptance of DEVELOPER's Facilities by COMMISSION as contemplated in this AGREEMENT, all customers of those facilities shall be deemed customers of the COMMISSION. COMMISSION shall collect all electric, potable water, irrigation water, wastewater, and reclaimed water rates, fees, charges and deposits for those facilities, without exception, in accordance with COMMISSION’s Rate Resolutions, prior to setting meters requested by the customers.
5.4 In addition to other applicable requirements, all property owners and customers must provide, at their expense, necessary electric conduits from point of service to the customer desired meter location and potable water, irrigation, wastewater, and reclaimed water plumbing service lines as a condition precedent to receiving electric, potable water, wastewater, and reclaimed water services from COMMISSION.
5.5 Applicable capacity fees for potable water, irrigation, wastewater and reclaimed water services will be paid to COMMISSION prior to issuance of building permits.
5.6 DEVELOPER’s contractual rights, duties, and responsibilities herein shall not be assignable unless agreed to, in writing, by COMMISSION.
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SECTION 6 FEE PAYMENTS
6.1 INSPECTION FEES - Payment of Inspection Fees shall be made within 180 days from the COMMISSIONER’S authorization for the CEO/GM to execute this AGREEMENT, or any permit applications, whichever shall first occur.
Potable Water* 19 x $50.00 per ERU = ($ 950.00) *Paid on 8/8/06 – Receipt No. 0092
Wastewater 19 x $50.00 per ERU = $ 950.00
Reclaimed Water N/A x $50.00 per ERU = $ N/A
Total Inspection Fees $ 950.00
6.2 INFRASTRUCTURE FEES - Payment of Infrastructure Fees shall be made within 180 days from the COMMISSIONER’S authorization for the CEO/GM to execute this AGREEMENT, or any permit applications, whichever shall first occur.
The Infrastructure Fees are calculated by the COMMISSION’s Engineering Department. The results of the calculations are based on DEVELOPER supplied drawings, calculations, and other miscellaneous forms.
ELECTRIC* $ 10,073.52 POTABLE WATER** $ 5,855.22 WASTEWATER** $ 4,890.32 RECLAIMED WATER $ N/A TOTAL INFRASTRUCTURE FEES DUE $ 20,819.06 INFRASTRUCTURE FEES PAID IN PROGRAM YR. 7 ($ 31,961.76) (Formerly Known as Waterford Condominiums)
Total Infrastructure Fees ($ 11,142.70)
*Based on one (1) 1600 amp three phase electric service at 45 ERU’s and one (1) 1000 amp three phase electric service at 27 ERU’s for a total of 72 ERU’s.
**Based on one (1) 2” domestic water meter and one (1) 5/8” irrigation meter.
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6.3 CAPACITY FEES - Payment of Capacity Fees shall be made in full in advance of building permit application, at which time COMMISSION will issue a receipt for Capacity Fee payment for DEVELOPER’S use. No relevant permit will be issued without payment in full.
The Capacity Fees are calculated by the COMMISSION’s Engineering Department. The results of the calculations are based on DEVELOPER supplied drawings, calculations, and other miscellaneous forms.
Utility Meter Size # 1 Count (#) Capacity Fee Total Potable Water 2” N/A $10,720.00 $ N/A Irrigation Water 5/8” N/A $2,680.00 $ N/A Reclaimed Water 3/4” N/A $1,060.00 $ N/A Wastewater 2” N/A $10,320.00 $ N/A Sub-Total: $ N/A (If applicable) Utility Meter Size # 2 Count (#) Capacity Fee Total Potable Water 1” N/A $3,350.00 $ N/A Irrigation Water 5/8” N/A $2,680.00 $ N/A Reclaimed Water 1” N/A $1,767.00 $ N/A Wastewater 1” N/A $3,225.00 $ N/A Sub-Total: $ N/A
Total Capacity Fees: $ N/A Water Capacity Fees in the amount of $20,000 and Wastewater Capacity Fees in the amount of $20,000 paid by previous developer of Waterford Condominiums on 1/28/08. Building Permit remains active as of this date and therefore no additional Capacity Fees are due at this time.
Insert calculations for alternative (e.g., a 3” or 4”, etc.) larger size water, irrigation, reclaimed and wastewater services below.
6.4 FEE PAYMENT SUMMARY
TOTAL CAPACITY FEES $ N/A TOTAL INSPECTION FEES $ 950.00 TOTAL INFRASTRUCTURE FEES ($ 11,142.70)
TOTAL APPLICATION FEES ($ 10,192.70)
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SECTION 7 REBATES, CREDITS, AND/OR COMMISSION PARTICIPATION
7.1 REBATES: TOTAL REBATES $ N/A
7.2 CREDITS: TOTAL CREDITS $ 7,890.00*
7.3 COMMISSION PARTICIPATION:
TOTAL COMMISSION PARTICIPATION $ N/A (Commission participation is an estimated amount pursuant to this agreement and shall be non- binding on the Commission until final Commission participation has been determined after final acceptance and as-built plans have been submitted to the Commission.)
TOTAL DEVELOPER CONTRIBUTIONS TO UTILITY INFRASTRUCTURE
= $ 7,890.00
*Three single family structures were removed from project site at 1 ERU credit per structure. Three ERU’s x $2,630.00 for water and wastewater capacity fees = $7,890.00 credit. This credit was already given to previous developer for this project (Waterford Condominiums) on 1/28/08.
(signatures to follow)
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EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
PROVIDED BY DEVELOPER
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EXHIBIT "B"
CHANGES, ADDITION OR DELETIONS
No changes, additions or deletions.
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EXHIBIT “C”
PROJECT DESCRIPTION / SUMMARY
PROVIDED BY DEVELOPER
TYDEMARK CONDOMINIUMS (Formerly known as WATERFORD CONDOMINIUMS) – 805-809 S. Atlantic Avenue
Summary: This project consists of a 19-unit condominium to be constructed on S. Atlantic Avenue. No electric, water or sanitary sewer main extensions are required for this project. Reclaimed water service is not available to this project. This project is in Program Year 11.
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EXHIBIT “D”
LOCATION MAP
PROVIDED BY DEVELOPER
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UTILITIES COMMISSION City of New Smyrna Beach, Florida MEMORANDUM AGENDA ITEM 4
DATE: August 8, 2018 TO: Utilities Commissioners FROM: General Manager/CEO SUBJECT: GENERAL MANAGER=S MONTHLY SUMMARY REPORT FOR JULY 2018
EXECUTIVE SUMMARY
General Manager/CEO Executive Search. Five finalists interviewed individually by U.C. Commissioners on 7-18-18. Two finalists publicly interviewed during Special U.C. Meeting on 7-19-18 with Joseph G. Bunch being selected. An offer of employment was negotiated and accepted with formal approval of the employment contract during the 7-23-18 Regular U.C. Meeting, agenda item add-on 5-c. Mr. Bunch’s commencement date is 11-1-18.
Asset Management.
U.C. Subaqueous Crossings – Intracoastal Waterway (ICW) / Ponce Inlet Dredging Project. U.C. staff communicated, provided contact info., and conducted site visits with the U.S. Army Corps of Engineers’ dredging contractor – Cavache, Inc., to ensure the U.C.’s subaqueous crossings could be protected throughout their maintenance dredging project, expected to continue for about eight months.
Infrared Imaging of Substations. During summer peak loads, infrared imaging of all substations was performed. No hot spots found needing repairs.
Decommissioning. Generation Sites – Phases 3, 4, and 5 on Both Generation Sites Phases provide for removal of equipment, structure demolition, decontamination (asbestos, soils, etc.).
Swoope Generation Site – Swoope Generation timeline: Completed – January 2017.
Smith Street Generation Site – Smith St. Generation timeline: · Demolition completed; Required additional decontamination ongoing. · U.C. approved City’s “Right of Entry” at 5-29-18 U.C. Mtg., AI 3-d · City approved Agreement Process on 6-26-18, AI 7-e., included in totality Environmental Site Assessment Reports (2) and stated no obligation on City’s behalf to participate or incur any expenses with the installation of monitoring wells and closure as it meets all FDEP guidelines. · Re-produced partially executed original agreements, re-routed to City for execution. (*Timelines based on current known factors; unknown factors could cause actual time/results to differ.)
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 2
EXECUTIVE SUMMARY - Status Items (cont.):
Geographic Information System (GIS) - Implementation Phase I, Phase II, and Phase III. Detailed status information for the GIS Project is posted and maintained in Engineering.
Power Supply. In-House Generation. Field Street Unit No. 1 – Unit remains operational. Field Street Unit No. 2 – A new project would be required to replace the gears. Ample reserve margin continues through the U.C.’s firm capacity and energy purchases.
COB 1st Floor Flooring – Project 90% complete. C.O. #1 approved at 7-23-18 U.C. Meeting.
COB installation of shades and COB Interior Painting Project (Customer Service / Finance areas) also ongoing.
Pursuant to City staff and the City Attorney’s requests, the Director of Engineering and U.C.’s General Counsel supported utility concerns within requested language revisions in the City’s Code for Landscape and Buffer Regulations.
5th Street Bridge – City has engaged consultant for this bridge replacement – utilities will be impacted.
City Requested Infrastructure Project/Loan – S.S.L.A. (south side of S.R. 44). S.S.L.A. – Loan agreement for $1.2 million. City’s Ordinance No. 31-18 adopted on 6-12-18 – established S.R. 44 Sanitary Sewer Assessment District for 29 properties, total of 78.17 acres, ten (10) year tax period. Ad Valorem tax bills to be mailed in November 2018. A first reading of City Ordinance No. 39-18, amending City Ord. No. 31-18, occurred on 8-14-18, with the second reading and public hearing scheduled for 8-29-18. Modification required, within Ocean Way Village Master Development Area, to remove the Common Areas as individual lots and redistribute the acreage to the remaining lots in the City’s assessment district.
City Requested Funding/Loan – Islesboro Stormwater Project. I.S.P.A. (Islesboro Subdivision Project Agreement) – Loan agreement for $850,000. U.C. determined improvements (water and wastewater main upgrades due to required relocations within the City’s right-of-way and project area) Project commenced in August, 2017. Inspections by Engineers and Inspectors ongoing on a continuous basis. The City Commission approved an amendment to their SJRWMD Cost-Share agreement on 8-14-18, adjusting the end date of their project to December 2018.
Inlet Shores Drainage Improvements (Cunningham Drive) – City Stormwater Project – I.S.P.A. U.C. determined improvements (replacement of lift station no. 18, water main upgrades, and lining of existing sanitary sewer lines within City ROW and project area) Project commenced in August, 2017. Lift Station 18 replacement completed and in operation. Construction continues to progress within this project.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 3
UC KEY PERFORMANCE INDICATORS (KPI) (Ongoing – Work in Progress)
OBJECTIVE-- RETAIN Current Month FY 2018 YTD FY 2018 Target FY 2019 Goal CUSTOMERS /Annualized FIELD & STAFF 100% 100% 60% Satisfaction 90% Satisfaction PERFORMANCE SURVEY EXPENDITURE/METER/ $875- $775/Meter CONNECTION $532 $539 $830 /Meter ASSOCIATES/CONNECTION/ ACCOUNT 1 : 466 1 : 499 1:300 1:400 OBJECTIVE-- COMPETITIVE PERFORMANCE O&M EXPENDITURES / BUDGET -3.01%* -5.65% 0% -5% CAPITAL & DEBT EXPENDITURES 8.19%** 1.80%** 0% -10% ENERGY 6% Median 5% Median AFFORDABILITY 3.30% 4.30% County Income County Income DEBT SERVICE RATIO 2.73: 1 ACTUAL 1.25:1 1.25:1 *If purchased power is eliminated from O&M expenditure calculation, current month would be under budget 3.29% and year to date under budget 9.06%. **Increase in current month capital and debt expenditures as compared to budget is due to timing of capital projects.
OBJECTIVE-- ACHIEVE GOALS/MEASURES Current Month FY 2018 YTD FY 2018 Target FY 2019 Goal /Annualized ELECTRIC OUTAGE 60 Minute 40 Minute DURATION – CAIDI* 92.50 54.53 Average Average MOMENTARY 7 Events 3 Events INTERRUPTION – MAIFIe 1.38 11.12 average/year average/year WATER OUTAGE 0 minutes 79.29 Minutes 300 Minutes, 200 Minutes, DURATION (mains only) 0 events 7 Events <100 events/Yr. <75 events/Yr. (July 2018) (FY2018) SEWER OUTAGE 0 Minutes 0 Minutes/ DURATION 0 Events 0 Events To Be To Be (July 2018) (For FY2018) Determined Determined SYSTEM SEWER 0 miles 0 Miles**/ BLOCKAGES 0 events 0 Events 10/1,000 miles/ 7/1,000 miles/ (July 2018) 1,000 Miles/yr. month month (For FY2018) **Note – Calculations converted from actual of 1 event / 191.07 miles of UC Pipe/Yr.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 4
OBJECTIVE-- ADD STAKEHOLDER VALUE “MEETS Current FY 2018 YTD FY 2018 Target FY 2019 Goal EXPECTATIONS” Month /Annualized OBJECTIVE-- ACHIEVE GOALS/MEASURES ICMA PARTICIPATION 71%* 71.5% 70% 75%
ICMA average employee contribution per pay $217.96. *Decrease of 2% participation from June 2018.
Current FY 2018 YTD FY 2018 Target FY 2019 Goal Month /Annualized MT INJURY PREVENTION Range 0.0 – 5.0 Top 10% Fiscal Year 2018 0 6 / 4.0%* Target 2.0 Nationally or Year to Date – Jan.-Dec., 2018 0 5 / 3.4% 0 by 2019
(Hours Worked 2017) 292,925.01
CRASH PREVENTION Range 0.0 – 5.0 Top 10% Fiscal Year 2018 0 0 Target 2.0 Nationally or Year to Date – Jan.-Dec., 2018 0 0 by 2019 OBJECTIVE-- ENHANCE COMMUNITY PUBLIC RECORDS 1 1.25* 5 Working Days 3 Working Days RESPONSES *Incs. Required Legal Reviews ACCOUNTABILITY 80% Positive 90% Positive SURVEY 100% 94%* CUSTOMER 1 formal contact 2 contacts / RECOGNITION 7 25 / month (12/Yr.) month (24/Yr.) ORGANIZATION FORMAL 1 8 2/year 6/year RECOGNITION *KPI measures calculated using the Frequency Rate formula within Strategic Initiatives.
I.T. DEPARTMENT I.T. Development | Efficiency and Improvements (Examine business infrastructure and processes to determine its impact on the effectiveness; Identify risks and operational gaps in methods and current procedures and develop project plans and solutions.)
Under Evaluation 1. Companywide Document Management and Repository | Under Department Review | Review MCCi / Laserfiche 2. HR / Payroll Process Review | Fully integrated time-keeping systems and integrated payroll system | RFP Completed – winning request-for-proposal strategies – ADP 3. UCNSB COB Building Security - Access - Cameras| Discovery in Process (multiple departments) 4. BAT Database (Backflow Assembly Tester) | Under Review 5. Evaluate Companywide Local Printer Policy – estimate cost savings of network printers | In Process
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 5
I.T. DEPARTMENT (cont.)
I.T. Development | Employees/ Contractors / Intern’s a. Investigate recruitment/lease-to-hire service |CCIE or CCNP for routing, switching and voice issues | In Process / Robert Half International b. Hire In-house Network Systems Analyst – Consultant to Employee - Completed Aug. 2018 c. DBA Training – Ongoing i. MS Dynamics GP Training | In Process
I.T. Project | MS Enterprise Agreement Renewal – In Process / Aug. 2018
I.T. Project | Unified Communication Manager (Call Manager) Redundant Platform – In Process / Aug. Sept. 2018
I.T. Security and Maintenance | Internet Bandwidth from 50Mbps to 250Mbps | In Process (HEB) 2nd floor completed | Jan 2018 3rd floor completed | Jan. 2018 1st Floor | Aug. 2018
I.T. Project | Granicus NovusAGENDA - Paperless legislative process for agenda Sample Agenda Templet Created – Created/ Aug. 2018 Test - Paperless legislative process w/ app / Aug. – Sept. 2018
I.T. Project | Relocate Critical Data to Off-Site Colocation Data Center (Disaster Recovery Project) | March 2018 Research find colocation site | Feb. 2018 Move DR Equipment | Aug. 2018 Test | Sept. 2018 Complete | Sept. 2018
I.T. Project | Organizational Security Awareness Training and Education Program | In Process / Reevaluate Employee Training PCI Training for relevant employees | Completed Information Technology Training / Cybersecurity | In Discovery
I.T. Project | Deberry Room Equipment Update Upgrade Camera for Social Media | Discovery / Review Upgrade Sound System | In Discovery
I.T. Security and Maintenance | Cisco - (monthly updates and patches) SourceFire and FireSight Upgrades UCCX, CM Unity and Mediasense security patches Patch UCCX – Engineering release 2
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 6
I.T. DEPARTMENT (cont.)
I.T. Project | Telephone and Data Systems Room’s Reconfiguration | Nov. 2017-Feb. 2018 Floor 1 | On Hold - COB building project completion – Aug 2018 Floor 2 | Completed Jan. 2018 Floor 3 | Completed Jan. 2018
I.T. Project | Fiber Infrastructure Review / Project Plan Maintenance and Services - monthly/ ongoing Received July 2018 Inspection Report Fiber Optic Repair /Live Oak St. | June 2018 Fiber Optic Repair / Glencoe Road | Pole Transfer | July 2018 / Completed
I.T. Project | Mobile Device Management (MDM) Solution – Aug. 2018 Develop a centralized unified management solution for mobile devices (Macs and P.C.’s) | Completed May 2018 Deploy Cisco Meraki MDM on all Phones /Tablets /Laptops| July – Aug. 2018 Develop/ Enforce Device Security Policy | Aug. – Sept. 2018
I.T. Project | Text Logging Solution – Aug. Sept. 2018 Network Level Solution Android/Samsung Solution Deployment
I.T. Project | Centralized Organizational Digital Video Surveillance – all locations | Pilot Testing – May 2018 4 Cameras | 1000 Field St. Spectrum / Install – Aug. 2018 2 Cameras | 1151 Field St. – Aug. 2018 COB | 8 Internal Cameras – Sept. 2018
I.T. Project | Employee Relocation COB – Completed Transporting office’s technology equipment (Finance, Billing & Customer Service) Verify all cabling, equipment, and phones are functioning (16 Employees)
I.T. Project | Update Meter Handhelds and Software - Itron Mobile Radio | Aug. – Sept. 2018
Projects on Hold
I.T. Project | Replace telecommunications carrier (In-house voice services) – On Hold Hybrid PRI and SIP trunking implementation
I.T. Project | System Operations Data Center Closet | Researching Fire Suppression Rack – On Hold
I.T. Project | COB Data Center Room | Fire Protection Evaluation | On Hold
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 7
SYSTEM OPERATIONS & GENERATION DEPARTMENT
The electric system's Net Energy for Load ("N.E.L.") for July 2018 was 46,478 MWH. This is 0.7% below the amount projected for the month. N.E.L. is 1.0% below projections for Fiscal Year 2018 to date.
The July energy came from the sources listed below:
On-Site and Remote Generation FMPA - St. Lucie Units 13.8 Field Street Generation 0.0 Total: 13.8%
Contract Purchased Power Duke Energy NSBA 17.4% FPL NLF Purchase 66.0 Other Purchases 2.8 Total: 86.2%
FY2018 FY2017 Peak Load (MW) 96 97 Lowest Valley Load (MW) 33 35 Load Management Relief on Peak (MW) 0 0 Average Degree Cooling Days 16.6 16.9 Average Degree Heating Days 0.0 0.0
St. Lucie Unit #2 performed as expected.
ELECTRIC OPERATIONS DEPARTMENT
Distribution Reliability Measurements Report
Distribution Reliability Measurements Report Fiscal Year 2018 (Month) Index For Month Preliminary Goal SAIDI 18.32 < 48.00 System Average Interruption Duration Index The duration of interruptions for the average customer
CAIDI 92.50 < 60.00 Customer Average Interruption Duration Index The average repair time experienced by the average customer
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 8
ELECTRIC OPERATIONS DEPARTMENT – Distribution Reliability Rpt. (cont.):
SAIFI 0.20 < 0.8 System Average Interruption Frequency Index The average frequency of interruptions for the average customer
MAIFI 1.38 < 7.00
Momentary Average Interruption Event The average momentary interruption events per average customer
L-BAR 91.19 Average Length of a Service Interruption The average length of a single outage
Electric Transmission and Distribution:
Performing routine maintenance and storm hardening throughout the service territory where one (1) 30’ pole, two (2) 40’ poles, and one (1) 45’ pole were replaced; along with fourteen (14) single-phase transformers.
Work performed to bring existing plant to current standards and improve customer reliability:
Florida Memorial Parkway: Replaced a vehicle damaged 75-kVA padmount transformer at 225 Florida Memorial Parkway. An invoice in the amount of $4,848.75 is being prepared for this work.
5203 South Atlantic: Replaced 350’ of faulted three phase 1/0 underground (URD) primary.
Airport Substation: Replaced a 45’ pole, UC4844, and spliced B-phase URD primary.
2710 Tiffany Dr.: Replaced a deteriorated 30’ stub pole.
41 Bogey Cir.: Replaced a deteriorated secondary pedestal and a bad URD service.
2324 & 2300 Turnbull Bay Rd.: Replaced a vehicle damaged 40’ pole and a 15-kVA transformer. An invoice in the amount of $7,995.52 is being prepared for this work.
290 North Samsula Rd.: Replaced a faulted 50-kVA polemount transformer.
14 Oak Tree: Replaced a faulted 25-kVA polemount transformer.
4315/4325 South Atlantic: Replaced a rusted 100-kVA padmount.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 9
ELECTRIC OPERATIONS DEPARTMENT – T&D (cont.):
3685 Parsley Ln.: Replaced a faulted 25-kVA padmount.
4478 South Atlantic Ave.: Replaced a faulted 50-kVA polemount.
3704 Pioneer Trail: Replaced a faulted 15-kVA polemount transformer.
208 Dune Circle: Replaced a faulted 50-kVA polemount transformer.
4514 Doris/202 Hiles Blvd: Replaced a faulted 75-kVA polemount with a 100-kVA.
1412 South Riverside: Replaced a faulted 15-kVA polemount transformer.
691 Ingham Rd.: Replaced a faulted 15-kVA polemount transformer.
1290 James St.: Replaced a faulted 25-kVA polemount transformer.
10 Cunningham Dr.: Replaced a faulted 50 kVA polemount transformer.
1313 North Dixie Frwy.: Replaced a faulted 50-kVA polemount transformer.
3611 Lettuce Lane: Replaced a faulted 25-kVA polemount transformer in an open delta bank.
149 Quail Hollow: Repaired a faulted direct buried URD service cable.
829 23rd Ave: Repaired a faulted direct buried URD service cable.
2517 Glenhaven: Repaired a faulted direct buried URD service cable.
2517 Glenhaven 2: Repaired a faulted direct buried URD service cable.
1065 Clubhouse at Staggerbush: Repaired a faulted three-phase URD 1/0 primary cable.
416 Sweet Bay: Repaired a faulted URD C-phase primary cable.
6860 South Atlantic Ave.: Repaired a faulted direct buried URD service.
601 St. Andrews Blvd.: Repaired and replaced a direct buried URD service.
Capital:
Florida Days Cattail Circle: Installed three (3) 25-kVA padmount transformers, one (1) 50-kVA padmount, 1,500’ of 1/0 primary, 1,400’of 350 triplex and eleven (11) pedestals along with four (4) decorative streetlights and 500’ of #6 duplex.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 10
ELECTRIC OPERATIONS DEPARTMENT – Capital (cont.):
2455 Boat Ramp Dr.: Installed a 50’ pole for a future 3-phase dip and a new customer’s point of service.
1901 S. Glencoe Rd.: Installed a 40’ pole and a 15-kVA transformer for a new customer’s point of service.
335 North Causeway: Installed a new 55’ pole for a future capacitor bank.
832 West 7th Ave.: Relocated a 40’pole and added a 40’pole for new customer’s point of service and upgraded the transformer from a 15-kVA to a 25-kVA. An invoice in the amount of $1,416.39 is being prepared for this work.
3191 SR 44 (Popeyes): Installed 350’ of 3-phase 1/0 URD primary cable, a 3-phase primary enclosure, and a 150-kVA padmount transformer for a new customer’s point of service.
Services: Thirty-seven (37) permanent electric services and nine (9) temporary services were installed and energized, along with two (2) cut-ins. T&D personnel performed five hundred sixty-four (564) cable locates.
Osmose Pole Replacements: 2820 Letha Rd.: Replaced a deteriorated 40’ pole.
Fleet Maintenance: Twenty-three (23) U.C. vehicles had various maintenance procedures performed during this monthly period.
Comprehensive maintenance tracking procedures, storing and routing of maintenance records ongoing.
Substation & Relay:
Field St. Substation: Switch maintenance was completed on all the switches on the now isolated 115 kV high-side bus feeding the #3 transformer that is out of service.
Smyrna Substation: An emergency call-out was completed, clearing a faulted B-phase lighting arrestor above the SS23-11B breaker.
Meter Testing Section: On-going inspections of all transformer rated meter locations continue. Necessary repairs are being completed onsite as found. Current transformers (CT’s) ratios were verified, current circuits tested and proper metering is in place. These inspections are scheduled every five years.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 11
ELECTRIC OPERATIONS DEPARTMENT (cont.):
Meter Testing Section (cont.): Two (2) meters were processed; two (2) were returned from the field, tested, adjusted, cleaned, and returned to stock.
TV and Radio Interference (TVI): Several areas of the system have been inspected and necessary repairs completed. All cleared and tests by the (ultra probe) ultrasound equipment and the infrared camera show noise to be very minimal and within acceptable FCC regulation limits.
Miscellaneous:
Cut outs, lightning arrestors and necessary controls and wiring were completed for a new capacitor bank for Line #16 located on the North Causeway. This new bank will be installed when it arrives from the factory.
Prep work and testing of a new transformer for the vault at the WRF Plant was completed and installed 7-31-2018. The old unit will be brought into the shop for repairs.
A new three-phase line recloser was uncrated, fitted with lightning arrestors and grounded. The new Schweitzer controller was set up and shop tested. This unit will be installed on North Dixie Freeway at the R-305 location as time and weather permits.
Summer time infrared imaging of all substations has been completed. With summer peak loads, any hot spots can be easily located and repaired. No hot spots were found needing repairs.
Conduit, wiring, and a breaker disconnect box was installed at the rear of the S&R shop to allow a feed for the electric gate operator located at the Field St. yard entrance. This will allow gate operation by the T&D emergency generator during station outages.
Performed battery maintenance in all stations and generation sites. Performed monthly oil leak inspections on all substations and generation switchyards. Downloaded information from distribution relays in all stations. Analyzed information to verify equipment was properly clearing faults.
Installed voltage recording equipment at various locations throughout the system. Performed troubleshooting at various locations at customer’s request.
Performed weekly readings and inspections on all pole mounted reclosers.
Inspections of the several transformer vaults in our system such as the condo’s, high school, etc., are continuing. This is an on-going duty such as the CT inspections above.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 12
WATER RESOURCES DEPARTMENT
Water Treatment: Total Treated Monthly Flow 167.447 MG Average Daily Demand 5.402 MGD Peak Daily Demand 6.296 MGD Rainfall/Water Plant 10.70 Inches
Ninety (90) static levels were checked on eighteen (18) wetlands monitoring wells. Static and dynamic levels were taken on twenty-three (23) production wells. Ninety-two (92) water samples collected for required testing. One hundred one (101) field chlorine tests were performed on the distribution system.
Drained/hosed the South Clarifier for ability to switch clarifiers prior to Westech’s arrival. Then, evaluations on the new North Clarifier will determine what modifications are needed to improve performance to expected range. Painted Transfer Pumps #30 and #40. Mowed around Lime Sludge Lagoons. Began training of new operator.
WTP personnel performed preventive maintenance on lime feed, chlorine feed, polymer feed, fluoride feed, and ammonia feed systems.
Monthly Operations, Wellfield Management, Water Usage, Water Summary, and Monthly Fluoridation Reports are being completed and submitted.
Note: Very high rainfall totals caused lower than average water demand and increased flushing.
Lab - Water Treatment: Sixty-two (62) distribution samples and one (1) raw sample were analyzed for coliform bacteria. Seven (7) fluoride samples were sent to our outsource lab for analysis.
Lab - Wastewater Treatment: Effluent (24 hr. Comp) WRF Reuse AVG CBOD (ppm) *** ppm 2.01 ppm AVG TSS (ppm) *** ppm 0.68 ppm Total Nitrogen 0.33 MG/L Total Phosphorous 2.01 MG/L
All of the above values are below our permit limitations for Effluent and Reuse Waters. *** indicates that these parameters are sampled and analyzed for effluent outfall discharge. There were no days of discharge during July 2018.
The monthly reuse nutrients samples were collected and analyzed with good results.
Water Reclamation Facility: Total Inf. Flow / Average Daily Flow 126.92 /4.09 MGD* Max. Daily Flow 5.24 MGD* Bio-solids Removed from WRF Site 245,667 Gallons Reclaimed Water Total Flow 120.87 MGD WW Plant Total Rainfall 7.77 Inches*
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 13
WATER RESOURCES DEPARTMENT – WRF (cont.):
River Discharge Total Flow / Average Daily Flow 0.00 / 0.00 Pond influent Flow / Augmentation 4.76MG / 3.70 MG Annual Avg. % of Reuse Utilization 100 %
The treatment process at the WRF continues to produce a high quality effluent that complies well within operating permit limits for reclaim water distribution. June 2018 Discharge Monitoring Report was completed and submitted to FDEP. There were no exceedances.
Maintained zero discharge to the river outfall for 109 consecutive months (9 years/1 month).
Experiencing high flows due to excessive rainfall (predominantly on beach side) and decreased reuse demand.
Other Items of Interest: Flooring in the Break Room and Operations Lab was replaced WRF lime room work continued and included removal of old concrete pads On-site generator load test and maintenance was performed Calibrated chlorine, turbidity and pH analyzers
Synagro South, LLC processed and transported all residuals generated during July 2018.
Water Treatment Plant (WTP) Replaced 75’ of lime feed hose for filling lime silo with pebble lime deliveries Replaced torn screen in aerator door Repaired fluoride feed line Replaced air release on transmission pump #20 Removed south softener hatch Greased and adjusted main gate Rebuilt polyphosphate pump Re-plumbed drain on east and west slaker Installed and wired new motor on lime silo dust collector
Wells Inspected all wells Replaced pressure line on PSV at well #10 Replaced radio slot and rewired at well #15
Pump Stations Inspected all pump stations and hypo equipment Greased all pumps and motors at pump stations Repaired level gauge on Glencoe Pump Station tank Replaced pressure transducer and board in fill valve at South Beach Pump Station Replaced hypo feed line from pump to tank Replaced pressure transducer at 3rd Avenue
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 14
WATER RESOURCES DEPARTMENT (cont.):
Water Reclamation Installed new flow meter Replaced auxiliary contacts on west outboard aerator Replaced 3 outlets and sump pumps in vaults Replaced bearings in sample pump Replaced tires and shift cable on cart Replaced belt on front gate and adjusted and greased chain Replaced bearings on north rotary drum thickener Replaced packing and bearings on motor on east reject tank valve Repaired oil level sight glass on 2nd anoxic mixer Repaired chlorine door Repaired chemical feed pump at declor building
Lift Stations Replaced junction box and terminated wires at L/S #16 Replaced float relay at L/S #22 Replaced vacuum pump at L/S #25 Replaced RTU battery at L/S #100 Replaced alternator relay and rewired at L/S #61 Replaced wet well hasps at L/S #20 Replaced lifting bail at L/S #33 Replaced dry well float at L/S #2 Generator test at L/S #88 Removed #2 pump at L/S #60 for rebuild
Reuse Ponds Inspected all reuse pond filling facilities Replaced pressure transducer at New Smyrna Pond Replaced level transducer at Hidden Lakes Pond
Equipment and Field Ops. Repairs Maintenance of small equipment Replaced epoxied motor case on concrete mixer Welded bar on mini hoe bucket Replaced two crane solenoids on P-11 Fabricated vise stands Rebuilt vacuum pumps Replaced battery for riding mower Repaired gas saw Lubed and adjusted front gate at Smith Street
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 15
WATER RESOURCES DEPARTMENT (cont.):
Miscellaneous W.R. Dept. Electrician support work performed for outside departments: Checked out disconnect switch for elevator at COB Desk assembly removed and replaced at COB Ran conduit, pulled wire, terminated, installed outlets in several offices at COB More outlets, and installed and wired fan at COB
Field Operations Division:
Water Distribution: Work performed this period included: repair of twenty-two (22) minor water breaks with an average outage of forty-five (45) minutes; forty-three (43) turn off/turn on requests were completed; four (4) no water complaints were restored; eight (8) low pressure complaints were addressed; fifty-five (55) meters were replaced with an average outage of forty-five (45) minutes; forty (40) new domestic meters were set and twenty-one (21) new reuse meters were set; twenty-eight (28) requests for new service were completed, fifteen (15) were Venetian Bay sets. Seventy-six (76) water valves were located and exercised; seven (7) sites were prepped for sod restoration and were completed; one (1) concrete cut was prepped and restored; two (2) asphalt cuts were restored; forty-eight (48) job sites were dressed up; three hundred eleven (311) City hydrants flushed; eleven (11) City hydrants flow tested; six (6) 2” directional bores (moles) constructed; six (6) new service lines were installed; thirty-five (35) service lines were repaired/ replaced; and three (3) density tests were performed.
Callout Time Summary: The primary callout person had a total of eighty (80) hours and the secondary callout person(s) had a total of twenty-one (21) hours. There were a total of thirty- three (33) emergencies handled for the month of July.
Performed four hundred forty-one (441) water, three hundred twenty-five (325) sewer, and seventy-seven (77) reuse locates for contractors. Total of eight hundred forty-three (843) locates were performed in July. Work performed for the Commercial Division included: replacing fifty- five (55) water meters; and completing five hundred nine (509) other job requests.
Cross Connection Control Program: Summary: Eighty-one (81) backflow preventor devices were installed; one hundred twenty-six (126) DDC/RP valves were tested; five (5) backflow preventor devices were repaired; and thirty- two (32) backflow devices were painted.
Sewer Collection: Miscellaneous work included: responding to eight (8) minor sewer backups with an average of forty-five (45) minutes; seven (7) sewer laterals were televised and cleaned; one (1) lateral was eeled for root intrusion; two (2) service laterals were repaired; one (1) service line was capped / abandoned; two (2) service laterals were repaired; one (1) sewer main was repaired; four (4) clean out caps were replaced/installed; four (4) clean outs were repaired; two (2) soft digs were performed; four (4) manhole were repaired/replaced; fifty-six (56) manholes were cleaned.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 16
WATER RESOURCES DEPARTMENT (cont.):
Sewer Collection (cont.): Thirteen thousand six hundred twelve (13,612) feet of sewer main was cleaned; and seven thousand three hundred fifty-five (7,355) feet of sewer main was televised.
Summary: Ten (10) minor backups were responded to, eight (8) were UC side and were relieved with an average time of forty-five (45) minutes.
Highlights for July 2018: - Crews replaced 1,000 ft. of 6” water main and replaced 4 services on Willard (City Stormwater Project in Islesboro) - MOT training for all employees in Field Operations
ENGINEERING DEPARTMENT:
General: 1. Inspection Fee Rate Study – Comments on draft report from the vendor and meter setting fees have been submitted to the consultant. 2. FY2019 Comprehensive Rate Study – Draft RSQ (No. 01-19) submitted for Commissioners/Attorney input at 7-23-18 U.C. Meeting. To be advertised in October 2018.
GIS: 1. Updated and published electric distribution maps. 2. Edited electric dataset. 3. Continued working on updates to electric, potable water, reuse water and wastewater maps. 4. Set up new users in Electric T&D to use the ArcGIS Explorer program. 5. Provided pole/transformer data and maps to FEMA.
Capital Projects Update: 1. 23 kV Subaqueous Electric Line – Close out paperwork received – pending ongoing litigation. 2. Central Office Building (COB) First Floor Flooring – Project began and is 90% complete. C.O. #1, in the amount of $3,887, was approved at 7-23-18 U.C. Meeting revising contract price to $75,680. 3. Glencoe Water Treatment Plant (GWTP) Instrumentation and Controls Replacement – 90% plans reviewed and comments submitted to the consultant. 4. Smith Street Demolition (Phases 3, 4, and 5) – Demolition completed. Additional decontamination is required. Agreement with City (Right of Entry) for monitoring wells approved by City Commission and copies have been routed for signatures. 5. South Beach Pump Station and Well House Roof Project – Project continues on schedule. Change Order No. 3 for Gale Associates, Inc., in the amount of $2,570 was approved at the 7-23-18 U.C. Meeting revising the total design cost to $54,221.10. 6. Sanitary Sewer Rehabilitation – System 1, 2 and 10 – Preconstruction Meeting held July 11th. Project scheduled to begin October 1. 7. WRF Biosolids Upgrade and PLC Replacement – The 75% plans remain under review.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 17
ENGINEERING DEPARTMENT – Capital Project Update (cont.):
8. Smyrna Substation Expansion – Phase 1 (equipment purchase) approved at the 7-23-18 U.C. Meeting. Completed review of 75% plans. 9. South Beach Pump Station Generator Replacement – Project consultant submitted plans for review. Plan review with Water Reclamation staff and Generation completed for feedback. 10. Lift Station 11 Reconstruction – Awaiting contract documents back from contractor, Carr and Collier, Inc. Proposal for geotechnical evaluation negotiated. 11. Ball Street Main Improvements – Connections and restoration remain. 12. Yupon Street Water Main Improvements – Plans developed, reviewed with Water Resources, and permits received. 13. Lift Station 4 Phase 2 (Saxon) – Project awarded to Masci Corporation in the amount of $489,567.45 at the 7-23-18 U.C. Meeting.
Interagency Projects Update - City: 1. Inlet Shores Drainage Improvements – Project continues to progress. Lift Station 18 replaced and new station in operation. 2. Islesboro Flood Mitigation – Adjustments to water mains, force mains, and electric systems are ongoing; continuing inspections by CIP engineers and inspectors on a continuous basis. 3. City Requested Project - S.R. 44 S.S.L.A. – Awaiting receipt of Sewer Assessment List from City of New Smyrna Beach. 4. 5th Street Bridge – City has engaged consultant to start work on bridge replacement. Utilities will be impacted.
Interagency Projects Update - County: 1. 10th Street Widening (Myrtle Ave. to U.S. 1) – Submitted the Joint Project Agreement to the County (May 2017). County indicated intention to redesign some of the storm system.
Interagency Projects Update - FDOT: 1. U.S. 1 and Canal Street – The FDOT Utility Work by Highway Agreement (at Utility Expense), Appendix A of Assurances, and Three Party Escrow Agreement for this project forwarded to FDOT. Design of utility replacements underway. 100% plans and documents submitted to FDOT. Concurrently, letters sent to FDOT. 2. Barracuda Bridge Replacement – This project will be forthcoming.
Developer Projects: 1. Riverwalk Phase 2 – Project inspection continues. L.S. 25 to be replaced prior to meter sets. 2. Messina by the Lake at Venetian Bay – Project inspection ongoing. 3. Coastal Woods B1 and B2 – Projects are being inspected. B1 is nearing completion. Three-phase conductor installed to new lift station. Pioneer Trail three-phase reconductured. 4. Coastal Woods C – Shop drawings reviewed and returned. Project is under construction. 5. Coastal Woods D – Initial plans reviewed and comments issued. Resubmittal made and new comments drafted.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 18
ENGINEERING DEPARTMENT – Developer Projects (cont.):
6. Coastal Woods (Commercial and Multi-Family) – Awaiting developer’s resubmittal. Change order required for construction phasing. Waiting on FDOT and Volusia County permits before further processing. 7. Circle K – Awaiting start of construction and payment of fees and contribution-in- aid-of-construction. 8. Holland Park – Construction closeout continues. 9. Callalisa Vista 2A and 2B – Awaiting final paperwork to close out project. Electric acceptance underway. Also awaiting confirmation of conduit depth. 10. The Palms Phase 1 – Project has been completed. 11. The Palms Phase 2A – Developer has submitted closeout package for review. 12. The Palms Phase 2B – Project is under construction; inspections continue. 13. The Palms Phase 3 – Initial plans reviewed and comments issued. 14. The Palms Phase 4 – Initial plans reviewed and comments issued. Revised plans reviewed and plans returned. 15. The Palms Phase 5 – Initial plans reviewed and comments issued.
New Business:
1. Water main extension costs paid during this period were as follows: • 2421 Glenside Drive - $457.80 • 2536 Glenhaven Drive - $432.83 • 357 Otter Boulevard - $825.14
2. Attended the Technical Review Staff Meeting on July 6th to discuss and comment on the following projects: • S-08-18 – Copper Creek Subdivision Plat Phase 1 • SP-16-18 – Copper Creek Subdivision Phase 1 • S-09-18 – Copper Creek Subdivision Plat Phase 2 • SP-17-18 – Copper Creek Subdivision Phase 2 • SP-15-18 – River Deck Restaurant & Marina • SP-18-18 – The Crow’s Nest Tiki Bar
3. Attended Pre-Site Plan (Application submittal), City Ready/Due Diligence Meetings to discuss the following projects: • Tom DeSimone – Tionia Drive • Mark Steves – 2800 North Dixie – Add Parking • Robin Kendall – New Burger King at Southwest Corner of I-95 and S.R. 44 • Robert Lindfelt – Questions about Right-of-Way Vacation Next to Historic Woodlands • Greg Pace – 401 Palmetto Street – Canopy Expansion • Harry Lodia – 620 N. Dixie Freeway – Expansion of Marathon Gas Station • Geosam – Venetian Bay – Multi-Family and Office Development • NSB Acquisitions, LLC – Colony Park Lot 4 – Sporty’s Car Wash • John Vazquez – 350 Timberlane Drive – Subdivide into Multiple Lots • J. Pendergast – 118 Douglas Street – Three New Residences
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 19
ENGINEERING DEPARTMENT – Pre-Site Plan, City Ready/Due Diligence Mtgs. (cont.):
• Arthur Gendreau – 708 Palmetto Street – Storage/Office • Buddy Davenport – 514 Oliver Drive – Rezone to Commercial • Rick Dixon – Westwood Avenue Between Willard and North Street • Starlight Homes – Coastal Woods B1 – Permitting Requirements • Sea Star Realty – S.R. 44 (Parcel No. 734306000570) – Site Plan – 10 Acres • Julian Coto – 4451 Glenhaven Estates – Expansion of Mobile Home Park
4. The TRC Meeting with U.C. staff to review and comment on site plans for the 8-3-18 TRS Meeting will be held on 8-2-18.
5. Developer’s Agreements and Addendums approved pending payment of fees: • Coastal Woods Commercial Phase 1A - Approved May 2018 • Saint James Estates Subdivision - Approved December 2017
6. Attended Pre-Construction Meetings for the following projects: • Publix Rebuild – S.R. 44 • Davis Bros. – N. Dixie Freeway
7. Processed the following Demolition Notification Requests during this period: • 523 Ball Street • 1947 Pioneer Trail
8. Submitted a City Right-of-Way Use Permit for 105 Azalea Circle (push and pull 1” water service for 5/8” meter).
New Projects:
Table 1 – Fees Paid and Services Set: Description July Water Capacity Fees Based on 5/8” Meter 11 Water Capacity Fees 25 Wastewater Capacity Fees Based on 5/8” Meter 6 Wastewater Capacity Fees 25 Wastewater Capacity Fees Based on 1-1/2” Meter 1 Reclaimed Water Capacity Fees 25 Reclaimed Water Capacity Fees Based on ¾” Meter 6 Reclaimed Water Capacity Fees Based on 1-1/2” Meter 3 Meter Setting Fees for Water – 5/8” Meter 37 Meter Setting Fees for Water – 1” Meter 1 Meter Setting Fees for Water – 2” Temporary Construction Water Meter 1 Meter Setting Fees for Reclaimed – ¾” Meter 31 Temporary Underground Electric Services 32 Permanent Underground Electric Services 34 Temporary Overhead Electric 5
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 20
ENGINEERING DEPARTMENT (cont.):
Table 2 – Requests for New Service (2016-2018): 2016 No. of No. of No. of 2017 No. No. of No. of 2018 No. of No. of No. of New Condo Town of Condo Town New Condo Town Homes Units Home New Units Home Homes Units Home Units Home Units Units s Jan. 6 7 0 Jan. 19 0 0 Jan. 12 0 0 Feb. 8 0 0 Feb. 16 0 0 Feb. 7 0 0 March 21 0 0 March 23 0 0 March 12 0 0 April 17 0 0 April 12 0 0 April 14 0 0 May 12 0 0 May 23 0 5 May 12 0 0 June 9 0 0 June 26 0 0 June 18 0 0 July 17 0 0 July 27 0 0 July 32 0 0 Aug. 16 0 0 Aug. 40 0 0 Aug. Sept. 7 0 2 Sept. 6 0 0 Sept. Oct. 24 0 0 Oct. 4 0 5 Oct. Nov. 7 0 0 Nov. 26 0 0 Nov. Dec. 20 0 0 Dec. 11 0 0 Dec. TOTAL 164 7 2 TOTAL233 0 10 TOTAL 107 0 0
FINANCE DEPARTMENT:
{Note – Beginning October 1, 2011 the hang tag process and additional $35 trip fee as a secondary notification for past due bills was eliminated. The mailed late notice* (*includes $5.00 fee) after 21 days is the remaining notification prior to disconnection. The time prior to disconnection was extended to include the previous hang tag time and an opportunity remains the opportunity to request an extension by contacting Customer Service prior to disconnection.}
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 21
FINANCE DEPARTMENT (cont.):
July 2018 Customer Service Summary Total This Month Total Last Month Difference Meter Readings 52811 49803 3008 Meter Re-Reads 314 247 67 Bills Mailed Out 27396 27309 87 COB Payments 11827 10910 917 ACH Payments 6820 6411 409 Web Payments 5855 5440 415 Online Banking Payments 3337 2989 348 IVR Payments 1208 1205 3 IVR Outbound Calls 1160 0* (1105) Late Notices 2923 3024 (101) Meter Change Out 78 8 70 Cut Outs 164 256 (92) Rechecks 22 22 0 Phone Contact 2691 2642 49 Walk In 599 593 6 Electronic Requests 557 443 114 Returned Checks 17 16 1 Working Days in Month 21 21 0 *Due to 3rd Party Vendor Vocantas’ Software Upgrade, Automated Calls Curtailed During June – Manual Courtesy Calls by Customer Service Continuing.
Materials Management Division: During July, fifty-nine (59) Purchase Orders were issued during the month as follows:
Water Department $ 529,925.27 Central Stores $ 149,156.95 Electric $ 384,032.87 I.T. $ 28,132.58 Human Resources $ 14,996.00 Finance $ 70,680.00
The total dollar amount expended for the month of July 2018 was $1,176,923.67.
The dollar range of the purchase orders were as follows:
13 $ 1.00 - $ 999.00 8 $ 1,000.00 - $ 2,000.00 15 $ 2,001.00 - $ 5,000.00 9 $ 5,001.00 - $ 10,000.00 6 $ 10,001.00 - $ 25,000.00 8 $ > $ 25,000.00
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 22
ADMINISTRATION – H.R. DEPARTMENT
General: 1. Total employment on the last day of the month: 169 (164 FTEs, 5 Commissioners). 2. EEOC Employment Statistics Report submitted for July.
Recruitment: 1. In July, there were five positions for which we were/are actively searching – (1) WRF Operator, (1) General Manager/CEO, (1) Lift Station Operator Trainee, 1) Fleet Mechanic, and (1) Water Plant Operator.
a) The position of WRF Operator has been offered and accepted by an outside candidate – undergoing pre-employment testing. b) The new CFO took his post on July 30, 2018 – vacancy now closed. c) The position of Lift Station Operator Trainee has been offered and accepted by an outside candidate – undergoing pre-employment testing. d) A candidate for the position of Fleet Mechanic III has been selected and will begin in August.
2. General Manager/CEO recruitment is complete. The selected candidate, Mr. Joseph Bunch has accepted the Commission’s offer of employment. Mr. Bunch will begin his career with the U.C. on November 1, 2018.
Payroll and Benefits: 1. 173 employees paid in July – 7 by paper check, 166 by direct deposit.
Employee Health & Wellness: 1. July’s Fit Friday was Get Sun Wise with a focus on sun protection.
Employee Training & Development: 1. Currently have about six (6) employees taking advantage of the Education Reimbursement Program.
Public/Employee Relations & Communications: 1. Consumer Conservation Programs: Continued oversight of Water-Wise Gardens with community partner Lindley’s Nursery and Garden Center. Continued management and promotion of energy/water audit program. As of 7/31/18, approximately 2,276 customers have requested and/or received an audit since program inception. Continued distribution of .3 watt LED nightlights, misc. low-flow showerheads, etc., with audits.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 23
H.R. DEPARTMENT – Public/Employee Relations & Communications (cont.):
Continued residential and non-demand commercial electric rebate program for FY 2018. The residential program includes rebates for: 16 SEER or higher AC, duct leak repair, solar attic fan, energy efficient skylights, cool roof, added insulation, window solar screens, 16 SEER or higher electric straight cooling system with natural gas heating/heat strips and high performance windows. Non-demand commercial rebate program includes rebates for: solar attic fan, duct leak repair, cool/reflective roof and high performance windows, added insulation, solar screens and LED Exit signs. Program disbursement for FY 2018 to date is: $26,301.
2. Records Retention and Access/Disposal Program: Assisted departments with records retention and disposal inquiries. Managed various public records requests. Scheduled, managed records disposition with Crown Shredding.
3. External Communications: Planned, scheduled, completed updates to social media and website. June bill insert: City of New Smyrna Beach Parks and Recreation survey card. June WSBB ad: Florida-Friendly Landscaping class on July 10; Sign up for a free energy/water audit. Also did live interview on July 9 on WSBB re: landscaping class. Continued message on the UC bills, “Follow us on Facebook to receive up-to-date important information regarding your utility service.” Planned/ordered/assembled/distributed UCNSB public power promo, energy/water conservation items and career information for various community non-profit organizations requesting UC attendance at events and/or participation. Specifically in July, distributed items to the Cudas Inshore Classic Football Booster Club fundraiser and to the Chisholm 16th Biennial Reunion. Held Florida-friendly Landscaping class on July 10 with Joe Sewards, UF/IFAS Volusia County Ag Extension Agent. 4. Consumer Services/Products Evaluation Continued development and postings on new website with Muni Links – www.ucnsb.org.
5. Consumer trend and satisfaction references Continued to tabulate, track, and release customer service metrics and KPIs.
6. Internal Communications Assisted in various employee communication needs.
7. Quality Assurance Continued weekly representation at Canal St. merchants meeting regarding various community events in which the U.C. can participate. Handled various media, community and customer issues/inquiries as needed. Continued monitoring, administration of UC social media outlets.
GENERAL MANAGER’S REPORT FOR JULY 2018 PAGE 24
H.R. DEPARTMENT (cont.):
Risk Management:
1. Workers Comp. - There were no incidents in July 2018. Fiscal Year to Date Recordable Incidents: 5 Fiscal Year to Date Lost Time Incidents: 1 Fiscal Year to Date Light Duty / Transitional: 2 2. Third Party Claims – There was one claim in July 2018. 3. Training – Maintenance of Traffic (MOT) for Field Operations and Lift Station employees. 4. Inspections – Utility-wide fire extinguisher annual inspection completed.
Human Resources Metrics: Retirement Plan Participation 6%
Principal 14% FRS 80% Not Eligible
(No change in FRS and 3% decrease in Principal from 6‐2018)
Employees Who Have Reached Normal Retirement Eligibility as of 5/31/18 13% Eligible Non Eligible 87%
(No change in eligibility from June 2018)
W. Ray Mitchum, General Manager/CEO AGENDA ITEM 4-a
8-27-18 U.C. MEETING
UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FL
FINANCIAL STATEMENT
JULY 2018 UTILITIES COMMISSION City of New Smyrna Beach, Florida NOTES TO THE FINANCIAL STATEMENTS
July 2018
Summary of Significant Accounting Policies The accounting policies of the Utilities Commission conform to the generally accepted accounting principles as promulgated by the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, the Federal Energy Regulatory Commission and the Governmental Accounting Standards Board. The following is a summary of the significant policies:
Reporting Entity The Utilities Commission, City ofNew Smyrna Beach, Florida was created in 1967 through the passage of Chapter 67-1754, Laws of Florida, Special Acts of 1967 (House Bill1669) which amended the Charter of the City of New Smyrna Beach. The special act was approved by a referendum vote of the people. Pursuant to Chapter 67-1754, the Commission has full and exclusive authority to the extent permitted by law over the management, operation and control of the City's electric, water, and waste water systems. On May 28, 1975, the Utilities Commission, City ofNew Smyrna Beach, Florida, passed Resolution Number 16-75, which established the electric, water, and waste water systems as a single utility fund. This utility fund is accounted for as an enterprise fund
Basis of Accounting Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing ofthe measurements made, regardless ofthe measurement focus applied. The Utilities Commission, City of New Smyrna Beach, utilizes the accrual basis of accounting. By utilizing this method, revenues are recognized as they are earned and expenses are recognized as they are incurred. Unbilled electric, water and waste water utility service receivables are recorded so as to provide a better matching of service with the costs ofproviding the service.
Charter and Resolution 28-78 The Utilities Commission was duly created and validly exists under and by virtue of Chapters 67-17 54 and 85-503, Laws of Florida. UC Resolution No. 28-78, the "Governing Resolution" contains and states the Utilities Commission's bond covenants, terms and provisions, i.e., use of funds, rates and collection enforcement, maintenance of system, no free service, etc.
Utility Plant The cost of additions, replacements, and renewals ofunits of property is added to utility plant. The cost (estimated, if not known) of units of property retired, less net salvage, is charged to accumulated depreciation and credited to the appropriate asset account. Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property are charged to maintenance expenses. Depreciation is provided for by utilization of the straight-line method calculated on a service-life basis to amortize the cost of the asset over the economic estimated useful lives.
Accounts Receivable As of July 31, 2018, the allowance for doubtful accounts was $477,875. This is an estimate ofuncollectable customer accounts receivable based on historical trends.
Other Receivable As of July 31,2018, Other Receivable- Disaster Assistance (Net) was $848,016. This is an estimate of FEMA and State receivable primarily due to Hurricane Irma, as $994,499 has been received as reimbursement of costs expended during hurricane Matthew. UTILITIES COMMISSION City of New Smyrna Beach, Florida NOTES TO THE FINANCIAL STATEMENTS
Unbilled Accounts Receivable As of July 31, 2018, Unbilled Accounts Receivable was $3,620,547. The ($1,536,848) over recovery of fuel costs is separately stated.
Inventory of Material and Supplies The inventory is priced at cost by the use of the "First-in, frrst-out" method of accounting.
Electric line transformers, electric meters, water meters, and replacement units for the diesel generating plants are classified as utility plant in accordance with accepted industry practices set forth by the National Association of Regulatory Utility Commissions.
Contribution-In-Aid-of-Construction (CIAC) includes a dollar valuation of non-cash contributed capital assets. These assets are accounted for in Forecast Report under R&R Contribution and on the Statement of Revenue Expenses and Changes in Net Assets under Capital Contributions. A total of $208,448 was contributed for the Combined System a detailed breakdown is listed below:
Electric $22,526 Water $94,675 Wastewater - $91,247
Long-Term Debt Long-term debt outstanding at July 31, 2018 is as follows:
2018 2017
Utilities System Refunding Revenue Certificates, Series 2009-3.96% due serially to 2020, debt service $5,225,000 $8,705,000 requirements allocated as follows: Electric 50.66%, Water 15.69%, and Pollution Control33.65%
Utilities System Refunding Revenue Certificates, Series 20 II - I. 72% due serially to 2019, debt service $1,190,000 $2,370,000 requirements allocated as follows: Pollution Control 100.00%
Utilities System Refunding Revenue Certificates, Series 2013A- 2.26% due serially to 2027, debt service $9,120,000 $9,370,000 requirements allocated as follows: Pollution Control 100.00%
Utilities System Refunding Revenue Certificates, Series $7,210,000 $7,895,000 20 13B - 2.32% due serially to 2027, debt service requirements allocated as follows: Water 100.00%
TOTAL OUTSTANDING LONG-TERM DEBT $22,745,000 $28,340,000
2 UTILITIES COMMISSION City of New Smyrna Beach, Florida NOTES TO THE FINANCIAL STATEMENTS
Current Maturities: 2018 2017
Series 2009 Certificates $3,480,000 $2,400,000 Series 2011 Certificates $ 1,180,000 $ 1,160,000 Series 2012 Certificates $ 0.00 $ 1,200,000 Series 2013A Certificates $ 250,000 $220,000 Series 2013B Certificate $ 685,000 $ 680,000
CURRENT MATURITIES $ 5,595,000 $ 5,660,000 LONG-TERM PORTION OF DEBT $ 22,745,000 $ 28,340,000
TOTAL DEBT (NET OF UNAMORTIZED DISCOUNT) $ 28,340,000 $ 34,000,000
Summary of the Debt Service Requirements Allocated by Issues:
Series Electric Water Wastewater Reuse 2009 50.66% 15.69% 33.65% 2011 100% 2012 49.57% 27.61% 11.17% 11.65% 2013A 100% 2013B 100%
The authorization for all outstanding certificates and all subsequent issues provides that the Utilities Commission will not issue additional obligations except for the construction and acquisition of additions, extensions, and improvements to the system or for refunding purposes and except upon the conditions provided in the authorizing resolution
The payment of the principal of and interest on the 2009,2011,2012, 2013A, and 2013B Certificates referred to herein are secured by a first lien on and a pledge of the net revenues of the system on a parity with all outstanding certificates. These Certificates do not constitute general indebtedness of the Utilities Commission or the City ofNew Smyrna Beach, Florida (City) and the City is not obligated to levy any taxes for the payment thereof.
Under the terms of its long-term debt agreements, the Utilities Commission has agreed to maintain certain restricted funds and to comply with the covenants contained in such agreements. Certain of these agreements contain the following provision relating to the right of the obligation holder:
"Any holder of certificates or any coupons appertaining hereto issued under the provision hereof or any trustee acting for the holders of such certificates may by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing under the laws of the State of Florida, or granted and contained herein, and may enforce and compel the performance of all duties herein required or by any applicable statutes to be performed by the Commission or by any officer thereof. Nothing herein, however, shall be construed to grant to any holder of the certificates any lien on any real property of the Commission or the City."
3 UTILITIES COMMISSION City of New Smyrna Beach, Florida NOTES TO THE FINANCIAL STATEMENTS
COMMITMENTS
Construction Work-In-Progress: As of July 31, 2018, approximately $14.1 million of construction work-in progress consisted primarily of the engineering, planning and construction cost. As a result of these ongoing construction activities, the Utilities Commission has unrecognized commitments.
RATE COMPARISON
The Utilities Commission's electric rates continue to be among the lowest in the state for residential consumers of municipal utilities. With the October 2016 reduction in the Fuel and Purchase Power rate, a U.C. customer who uses 1,200 kWh per month has a monthly bill of$124.61, which is the fifth lowest in the State, according to the June 2018 survey published by the Florida Municipal Electric Association. This rate compares favorably to investor-owned utilities as well.
A U.C. commercial customer fairs similarly well. A non-demand 1,500 kWh per month commercial customer has a monthly bill of $151.82, which is the third lowest in the State for municipal utilities and is lower than all investor-owned utilities.
The Utilities Commission's water resources rates also remain very competitive. Based upon a 2017 rate survey by the St. John's River Water Management District, the U.C.'s water and wastewater rates for a 4,000 gallon per month residential user, of$15.99 and $30.82, respectively, are the lowest in water and third lowest in water/wastewater combined rates as compared to other east Volusia coastal cities*. (*comparable water source and treatment levels)
For commercial water and wastewater rates for a typical8,000 gallon per month user, of$32.68 and $81.49, respectively, the U.C.'s commercial rates are the lowest for water/wastewater combined when compared to the east Volusia coastal cities.
DEFINITIONS
Operating Expenses
Fuel & Purchased Power Expense- This line item encompasses the costs of electricity purchased by the Utilities Commission for resale to its customers.
Other Production Expense- This category includes the cost of labor, materials and associated expenses to produce an end utility deliverable for customer utilization. • For the Electric system, expenses are associated primarily with Nuclear power production, in-house generation and System Operations salaries. • For the Water system, expenses are to produce potable water for customers, including maintenance of water treatment equipment.
Transmission, Distrb. & Collection- This category contains the cost of labor, materials and associated expenses to transfer an end utility deliverable between an originating processing point, to/from end consumers. • For the Electric system, this incorporates maintenance of: poles, overhead/underground lines, and substations & relays. • For the Water system, this involves maintenance of mains, hydrants and meters. • For the Wastewater reclamation system, this takes into account all wastewater treatment expenses, as well as, maintenance of sewer lines and treatment equipment.
Customer Accounting- This line item consists of the cost of labor, materials and associated expenses to read a customer's meter, generate and collect a monthly bill, and provide customer service.
4 UTILITIES COMMISSION City of New Smyrna Beach, Florida NOTES TO THE FINANCIAL STATEMENTS
Administrative and General- This category comprises the cost oflabor, materials and expenses associated with general administration of the Utility Commission's operations, including: General Manager, Information Technology, Human Relations, Engineering, Accounting and Materials Management.
Required Payments to City ofNSB- This line item contains the 6% of revenues levy (pursuant to UC Charter) paid directly to the City.
Depreciation and Decommissioning- This line item shows the expense of depreciation of Utility property over their estimated useful lives.
5 Financial Highlights
YTD YTD Increase Combined Financial Highlights July, 2018 July, 2017 (Decrease) Operating Revenues $ 49,136,046 $ 48,750,669 0.79% Operating Expenses 46,996,203 45,906,340 2.37% Interest & other income 908,481 972,789 -6.61% Interest Expense & other non-operating exp. 1,164,898 941,791 23.69% Income before contributions 1,883,426 2,875,327 -34.50% Capital Contributions 4,055,573 2,756,013 47.15% Utility plant, net 174,882,935 169,598,016 3.12% Total assets 230,192,204 225,760,908 1.96% Long-term debt, net 22,745,000 28,340,000 -19.74% Net assets 187,229,823 178,725,474 4.76%
Debt Service Coverage Ratio* 2.73 2.73 -0.29%
Electric Financial Hi9hli9hts Operating Revenues $ 34,811,682 $ 34,086,628 2.13% Fuel & Purchased Power Expense 16,635,267 17,046,815 -2.41% Operating & Maintenance Expense 17,317,266 16,243,794 6.61% Change in Net Assets 1,652,365 1,574,642 4.94%
Water Financial Hi9hli9hts Operating Revenues $ 6,379,264 $ 6,655,168 -4.15% Operating & Maintenance Expense 6,543,640 6,456,634 1.35% Change in Net Assets 819,803 1,213,817 -67.54%
Reclamation Financial Hi9hli9hts Operating Revenues $ 7,945,100 $ 8,008,873 -0.80% Operating & Maintenance Expense 6,500,033 6,159,096 5.54% Change in Net Assets 3,466,826 2,842,884 21.95%
Notes: The Electric System Change in Net Assets increase of only 5% due to the milder temperatures this time of year.
The Water System Change in Net Assets decrease of approximately 67% is due to weather conditions.
The Reclamation System Change in Net Assets increase of 22% is due primarily to contributed facilities related to completion of SR 44 Sewer Main.
6 Statistical Highlights Increase Electric Statistical Highlights July, 2018 July, 2017 (Decrease) Total Sales (kWh) 41,223,803 40,940,245 0.69% Demand Sales (kWh) 12,615,599 12,558,730 0.45% Total Active Accounts 28,009 27,662 1.25% Average Residential Use (kWh) 1,152 1,159 -0.57% Average Residential Revenue per kWh $ 0.1035 $ 0.1034 $ 0.0001
Water Statistical Highlights Total Sales (kilogallons) 132,674 140,441 -5.53% Total Active Accounts 26,657 26,218 1.67% Average Usage per Account (gallons) 4,977 5,357 -7.09% Average Revenue per gallon $ 0.0047 $ 0.0046 $ 0.0001
Wastewater Statistical Highlights Total Sales 79,381 79,595 -0.27% Total Active Accounts 21,483 21 '156 1.55% Average Usage per Account (gallons) 3,695 3,762 -1.79% Average Revenue per gallon $ 0.0094 $ 0.0093 $ 0.0001
Reuse Statistical Highlights Total Sales (kilo gallons) 51,686 77,822 -33.58% Total Active Accounts 2,207 1,968 12.14% Average Usage per Account (gallons) 23,419 39,544 -40.78% Average Revenue per gallon $ 0.0012 $ 0.0010 $ 0.0002
7 Year-to-Date Margin Per Account
$100.00
$61.32
$50.00
$-
$(50.00) Electric Water Wastewater System
Ten Months Ended- July 31 , 2018 $85.94
8 UTILITIES COMMISSION City of New Smyrna Beach, Florida July-18 STATISTICAL COMPARISON-SALES
KWH SALES NO. ACCTS BILLED REVENUE (1) ELECTRIC Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-)
Residential 28,343,831 28,120,098 0.80% 24,603 24,269 1.38% 2,932,212.26 2,906,681.49 0.88% General Services 12,615,599 12,558,730 0.45% 2,314 2,304 0.43% 1 ,293,205.35 1 ,287,172.28 0.47% Street Lights 264,373 261,417 1.13% 1,092 1,089 0.28% 55,209.60 54,610.52 1.10% 41,223,803 40,940,245 0.69% 28,009 27,662 1.25% 4,280,627.21 4,248,464.29 0.76%
M. GAL SALES NO. ACCTS BILLED REVENUE WATER Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-)
Metered Sales 132,674 140,441 -5.53% 26,657 26,218 1.67% 624,206.89 645,505.43 -3.30% Hydrants 0.00% 0 0 0.00% 0.00 0.00 0.00% 132,674 140,441 -5.53% 26,657 26,218 1.67% 624,206.89 645,505.43 -3.30%
NO. ACCTS BILLED REVENUE WASTEWATER Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-)
Domestic & Commer. 21 ,483 21 '156 1.55% 748,005.81 741 ,064.67 0.94% 21 ,483 21 '156 1.55% 748,005.81 741,064.67 0.94%
NO. ACCTS BILLED REVENUE WATER REUSE Jul-18 Jul-17 %(Change+/-) Jul-18 Jul-17 %(Change+/-)
Domestic & Commer. 2,207 1,968 12.14% 63,348.54 77,727.03 -18.50% 2,207 1,968 12.14% $63,348.54 $77_,_727.03 -18.50%
Fuel and Purchased Power Adjustment July-18 $22.68 per 1,000 kWh Fuel and Purchased Power Adjustment July-17 $22.68 per 1,000 kWh (1) Net of Load Management Credits July-18 (16,340.04) (1) Net of Load Management Credits July-17 (17,570.67)
-9- UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF NET ASSETS (UNAUDITED) For the Ten Months Ending July 31, 2018 18 17
ASSETS
UTILITY PLANT IN SERVICE: Electric Plant $101,005,613 $98,789,044 Water Plant 69,815,170 65,195,486 W astewater/Reclarnation Plant 69,236,594 64,154,541 Water Reuse Plant 14,180,938 13,521,062 General Plant 39,634,659 36,481,102 293,872,974 278,141,235 Less Accumulated Depreciation and Amortization (133,126,024) (128,423,106)
160,746,950 149,718,129
Construction Work in Progress 14,135,985 19,879,887 TOTAL UTILITY PLANT (NET) 174,882,935 169,598,016
RESTRICTED ASSETS: Debt Service Funds 4,970,213 7,151,831 Renewal & Replacement Fund-Unrestricted 21,767,642 25,267,535 Renewal & Replacement Fund-Restricted 10,669,093 8,335,231 Developer Infrastructure Fund 2,422,494 1,265,918 1981 Sewer Assessment Fund 48,707 48,294 Customer Deposit Fund 3,081,012 3,049,022 TOTAL RESTRICTED ASSETS 42,959,161 45,117,831
CURRENT ASSETS: Cash 1,580,402 1,452,396 Accounts Receivable (Net) 4,137,362 3,527,098 Other Receivable - Disaster Assistance (Net) 848,016 Unbilled Accounts Receivable 3,620,547 3,665,066 (Over) Under Recovery Fuel Cost (I ,536,848) (1,178,953) Inventories 2,051,468 2,140,351 Prepaid Expenses and Other Assets 379,304 394,822
TOTAL CURRENT ASSETS 11,080,251 10,000,780
DEFERRED CHARGES AND OTHER ASSETS: Deferred Outflows on Pensions 980,124 798,654 Unamortized Debt Expense Deferred Charges & Other Assets 289,733 245,627
TOTAL DEF. CHARGES AND OTHER ASSETS 1,269,857 1,044,281
TOTAL ASSETS $230,192,204 $225,760,908
-10- UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF NET ASSETS (UNAUDITED) For the Ten Months Ending July 31, 2018 18 17
LIABILITIES AND NET ASSETS
NET ASSETS: Invested in Utility Plant, Net of Related Debt $111,027,007 $111,027,007 Restricted for Debt Service 12,539,107 12,539,107 Restricted for Renewal & Replacement 6,586,206 6,586,206 Unrestricted 51,138,503 42,941,813 YTD Profit/(Loss) 5,939,000 5,631,341
TOTAL NET ASSETS 187,229,823 178,725,474
LONG TERM DEBT: Revenue Certificates Payable 22,745,000 28,340,000 Less: Unamortized Discount on Long Term Debt Plus: Unamortized Premium on Long Term Debt
TOTAL LONG TERM DEBT 22,745,000 28,340,000
RESTRICTED FUND LIABILITIES: Revenue Certificates Payable (Current Portion) 5,595,000 5,660,000 Interest on Long Term Debt Payable 307,713 309,903 Accounts Payable 18,752 3,378 Retainage Payable Customers Deposits 3,081,012 3,049,022 Developer Infrastructure 2,422,494 1,250,822 Deferred Inflows on Pensions 368,175 327,468 Asset Retirement Obligations - CR3
TOTAL RESTRICTED FUND LIABILITIES 11,793,146 10,600,593
CURRENT LIABILITIES: Accounts Payable 2,942,153 3,128,168 Accrued Liabilities 582,454 507,330 Due to Other Governments 1,295,480 1,201,480
TOTAL CURRENT LIABILITIES 4,820,087 4,836,978
OTHER NONCURRENT LIABILITIES: Deferred Compensated Absences 505,531 444,085 OPEB Obligation 518,387 463,554 Net Pension Liability 2,573,330 2,343,324 Operating Reserves and Deferred Credits 6,900 6,900
TOTAL OTHER NONCURRENT LIABILITIES 3,604,148 3,257,863
TOTAL LIABILITIES 42,962,381 47,035,434
TOTAL LIABILITIES AND NET ASSETS $230,192,204 $2252 7602908
-11- UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH,FLORIDA STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS (UNAUDITED) Combined System For the Ten Months Ending July 31, 2018
July FISCAL July FISCAL 18 YEAR TO DATE 17 YEAR TO DATE
OPERATING REVENUE:
Sales $6,044,184 $48,609,409 $5,910,625 $48,204,007 Other Revenues 48,729 526,637 58,109 546,662
TOTAL OPERATING REVENUES 6,092,913 49,136,046 5,968,734 48,750,669
OPERATING EXPENSES:
Fuel & Purchased Power Expense 1,978,528 16,635,267 2,333,744 17,046,815 Other Production Expense 723,640 7,257,558 710,578 7,150,119 Transmission, Distrib. & Coil. 579,429 5,788,446 582,941 5,562,058 Customer Accounting 100,228 1,023,612 101,565 1,112,070 Administrative and General 698,948 7,350,515 611,193 6,613,888 Required Payments to City ofNSB 347,210 2,954,700 346,001 2,911,942 Depreciation and Amortization 598,456 5,986,105 545,098 5,509,448
TOTAL OPERATING EXPENSES 5,026,439 46,996,203 5,231,120 45 906,340
OPERATING INCOME(LOSS) 1,066,474 2,139,843 737,614 2,844,329
NON-OPERATING REVENUES:
Interest Earnings 46,687 237,960 33,726 245,111 Other Income 96,908 670,521 106,297 727,678
TOTAL NON-OPERATING INCOME 143,595 908,481 140,023 972,789
NON-OPERATING EXPENSES:
Interest Expense 76,928 612,547 24,066 619,942 Other Expenses 295,405 552,351 92,559 321 849
TOTAL NON-OPERATING EXPENSES 372,333 1,164,898 116,625 941,791
INCOME BEFORE CONTRIBUTIONS 837,736 1,883,426 761,012 2,875,327
CAPITAL CONTRIBUTIONS 549,166 4,055,573 427,325 2,756,013
CHANGE IN NET ASSETS $1,386,902 $5,938,999 $1,188,337 $5,631,340
-12-
Note: Contribution in Aid of Construction (CIAC) includes cash contribution and an dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH,FLORIDA STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS (UNAUDITED) Electric System For the Ten Months Ending July 31, 2018
July FISCAL July FISCAL 18 YEAR TO DATE 17 YEAR TO DATE
OPERATING REVENUES:
Sales $4,613,945 $34,483,448 $4,560,185 $33,748,358 Other Revenues 30,344 328,234 35,209 338,270
TOTAL OPERATING REVENUES 4,644,289 34,811,682 4,595,394 34,086,628
OPERATING EXPENSES:
Fuel & Purchased Power Expense 1,978,528 16,635,267 2,333,744 17,046,815 Other Production Expense 533,168 5,508,865 517,925 5,055,790 Transmission, Distrib. & Collection 267,964 2,578,278 276,162 2,524,464 Customer Accounting 56,202 588,873 57,048 648,557 Administrative and General 383,654 4,091,498 339,713 3,656,510 Required Payments to City ofNSB 260,154 2,094,402 257,121 2,031,006 Depreciation and Amortization 244,574 2,455,350 228,896 2,327,467
TOTAL OPERATING EXPENSES 3,724,244 33,952,533 4,010,609 33,290,609
OPERATING INCOME(LOSS) 920,045 859,149 584,785 796,019
NON-OPERATING REVENUES:
Interest Earnings 24,862 127,654 19,895 124,693 Other Income 68,670 452,205 48,078 555,712
TOTAL NON-OPERATING INCOME 93,532 579,859 67,973 680,405
NON-OPERATING EXPENSES:
Interest Expense 17,677 167,290 19,509 195,087 Other Expenses 116,099 251,916 63,928 201,763
TOTAL NON-OPERATING EXPENSES 133,776 419,206 83,437 396,850 INCOME BEFORE CONTRIBUTIONS 879,801 1,019,802 569,321 1,079,574
CAPITAL CONTRIBUTIONS 88,015 632,563 113,633 495,068
CHANGE IN NET ASSETS $9672816 $1 26522365 $6822954 $1 25742642
-13-
Note: Contribution in Aid of Construction (CIA C) includes cash contribution and an dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS (UNAUDITED) Water System For the Ten Months Ending July 31, 2018
July FISCAL July FISCAL 18 YEAR TO DATE 17 YEAR TO DATE
OPERATING REVENUES:
Sales $614,531 $6,188,267 $579,789 $6,453,800 Other Revenues 17,670 190,997 22,177 201 ,368
TOTAL OPERATING REVENUES 632,201 6,379,264 601 ,966 6,655,168
OPERATING EXPENSES:
Other Production Expense 190,472 1,748,693 192,653 2,094,329 Transmission, Distrib. & Collection 89,763 893,068 64,112 757,496 Customer Accounting 24,459 241 ,523 24,732 257,709 Administrative and General 153,512 1,588,336 132,530 1,421,181 Required Payments to City ofNSB 38,370 383,564 39,798 400,073 Depreciation and Amortization 168,941 1,688,456 150,054 1,525,846
TOTAL OPERATING EXPENSES 665,517 6 543,640 603 879 6 456,634
OPERATING INCOME(LOSS) (33,3 16) (1 64,376) (1 ,913) 198,534
NON-OPERATING REVENUES:
Interest Earnings 13,659 68,721 11,409 70,712 Other Income 15,071 134,210 35,136 77,279
TOTAL NON-OPERATING INCOME 28,730 202,931 46,545 147,991
NON-OPERATING EXPENSES:
Interest Expense 20,738 204,448 22,854 228,538 Other Expenses 131,758 205,665 7,627 63 ,486
TOTAL NON-OPERATING EXPENSES 152,496 410,113 30,481 292,024
INCOME BEFORE CONTRIBUTIONS (157,082) (371,558) 14,151 54,501
CAPITAL CONTRIBUTIONS 238,069 l,I91 ,361 140,138 1,159,316
CHANGE IN NET ASSETS $80,987 $819,803 $154,289 $1,213,817
-14-
Note: Contribution in Aid of Construction (CIAC) includes cash contribution and an dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS (UNAUDITED) Reclamation System For the Ten Months Ending July 31, 2018
July FISCAL July FISCAL 18 YEAR TO DATE 17 YEAR TO DATE
OPERATING REVENUES:
Sales $815,709 $7,937,694 $770,651 $8,001,849 Other Revenues 714 7,406 723 7 024
TOTAL OPERATING REVENUES 816,423 7,945,100 771 ,374 8,008,873
OPERATING EXPENSES:
Transmission, Distrib. & Collection 221 ,701 2,317,100 242,668 2,280,098 Customer Accounting 19,567 193,217 19,785 205,805 Administrative and General 161 ,782 1,670,682 138,949 1,536, 196 Required Payments to City ofNSB 48,686 476,735 49,082 480,862 Depreciation and Amortization 184,94 1 1,842,299 166,149 1,656,135
TOTAL OPERATING EXPENSES 636,677 6,500,033 616,633 6,159,096
OPERATING INCOME(LOSS) 179,746 1,445,067 154,741 1,849,777
NON-OPERATING REVENUES :
Interest Earnings 8,167 41 ,584 2,422 49,707 Other Income 13,167 84,105 23,083 94,687
TOTAL NON-OPERATING INCOME 21,334 125,689 25,505 144,394
NON-OPERATING EXPENSES:
Interest Expense 38,513 240,809 (18,297) 196,3 17 Other Expenses 47,548 94,770 21,004 56,600
TOTAL NON-OPERATING EXPENSES 86,061 335,579 2,707 252,917
INCOME BEFORE CONTRIBUTIONS 115,019 1,235,177 177,539 1,741 ,254
CAPITAL CONTRIBUTIONS 223,082 2,231 ,649 173,554 1,101 ,630
CHANGE IN NET ASSETS $338,101 $3,466,826 $351,093 $2,842,884
-15-
Note: Contribution in Aid of Construction (CIAC) includes cash contribution and an dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA STATUS REPORT OF SPECIAL FUNDS Jul-18
Fund 60 Fund 61 Fund 62 Line No Unrestricted R&R Restricted R&R Infrastructure
1 Balance Per Balance Sheet 7/1/2018 $23,510,983.37 $8,938,504.31 $2,420,584.62
Transfers In: 2 Monthly Transfer From Operations 264,742.59 0.00 0.00 3 Connection Fees 0.00 214,175.00 1,909.62 4 Extensions 0.00 3,425 .21 0.00 5 Water Meter Set Fees 49,550.00 0.00 0.00 6 Fire Detector/Hydrant/General 8,078.74 0.00 0.00 7 General Electric/URD Conversions 65,471.35 0.00 0.00 8 Renewable Energy Contributions 18.00 0.00 0.00 9 Journal Entries 0.00 0.00 0.00 10 Interest (Investment) 0.00 0.00 0.00 11 Transfer Between Funds (1 ,555,000.00) 1,555,000.00 0.00 12 Adjust Differences 0.00 0.00 0.00
Transfers Out: 13 Inventory Issued (198,741.70) (1,470.87) 0.00 14 Capitalized Labor (59,319.84) (7,382.80) 0.00 15 Capitalized Fringes (24,914.34) (3,100.76) 0.00 16 Checks Issued (293 ,226.15) (30,057 .26) 0.00 17 Account Payable 0.00 0.00 0.00 18 Journal Entries (Investment Premium) 0.00 0.00 0.00
19 Balance Per Balance Sheet 7/31/2018 $21,767,642.02 $1 0,669,092.83 $2,422,494.24
20 Committed Funds $3,804,557.78 $708,957.76 $0.00
21 Accruals/Encumbrances 15,239.69 0.00 0.00
22 Total Committed Or Encumbered $3,819,797.47 $708,957.7 6 $0.00
23 Unallocated Balance 7/31/2018 $17,947,844.55 $9,960,135.07 $2,422,494.24
-16- Utilities Commission City of New Smyrna Beach Unrestricted R&R Fund Activity 7/3112018 ($Thousands)
Budget Funds Spent as of 7/31 /2018
Prior Prior Current Additional Total Years 2018 Total Years thru Month 10 Mo. Committed Project CIP CIP CIP 9/30/17 7/31/2018 2018 Funds Funding
Major Ongoing Projects Loans to City: SR 44 Sewer $1,200 $576 $0 $64 $ 104 $743 Isleboro Sewer $850 $ 1 $293 $0 $293 WWTP Sodium Hypochlorite $1,000 $1 ,000 $ 156 $8 $572 $2 $730 COB Building Im provements $2,370 $600 $2,970 $2,567 $ 11 $794 $64 $3,424 Smyrna Substation I Transfom1er $4,000 $2,500 $6,500 $338 $46 $465 $2,457 $3,261 WTP Instrumentati on $1,200 $1 ,200 $83 $0 $26 $43 $151 Subaqueous Water Crossing $ 1,500 $1,500 $10 1 $0 $ 14 $109 $223 WTP North Clarifier $ 1,248 $1 ,248 $83 1 $ 1 $52 $0 $883 WWTP Biosolids Upgrade $ 1,000 $1,000 $2,000 $3 1 $0 $77 $ 11 9 $226 GIS $700 $ 100 $800 $178 $0 $62 $0 $240 Li ft Station 4 I 34 $22 1 $0 $221 $999 $0 $33 1 $0 $1 ,330 Li ft Station 18 $500 $0 $500 $ 16 $ 1 $273 $106 $395 Fleet Maint Relocati on $ 1,500 $2 ,000 $3,500 $6 $0 $104 $3 $112 Transformers $500 $525 $1,025 $0 $5 $327 $0 $327 Islesboro Water Main $400 $200 $600 $69 $157 $ 1,466 $283 $1 ,819 Islesboro Sewer Main $400 $25 $425 $48 $3 1 $560 $187 $795 Hu rricane Irma #2 $0 $0 $0 $0 $0 $142 $ 15 $157 Other $5 ,262 $0 $5,262 $1 ,522 $50 $ 1,316 $866 $3,704
Subtotal - Major Projects $21 ,801 $6,950 $28,751 $8,600 $310 $7,536 $4,357 $20,494
2018 New Projects Water mains Inlet Shores $384 Other $16 $400 $400 $0 $0 $ 16 $16 Wastewater mains GSS 1,2, 10 $775 $775 $775 $0 $5 $988 $993 Beachside Pumping Upgrade $500 $500 $ 1 $ 14 $13 $26 $825 $ 1 $7 $ 13 $20 $ 11 6 Lift Station & Mains $65 $1 ,006 $1 ,006 $7 $7 $7 $14 Lift Station Upgrades $1,200 $1 ,200 $2 $2 $0 $2 WWTP Clarifi er Upgrade $500 $500 $0 WWTP Effluent Pond Expan $500 $500 $0 Electric Feeder 1-95 $500 $500 $0 Annual Projects: $0 Electric $3 ,0 15 $3,015 $185 $ 1,430 $459 $),889 Water $1,94 1 $1 ,941 $55 $1 ,07 1 $56 $1 ,127 Wastewater $1,01 9 $1 ,019 $2 1 $227 $129 $356 IT / Admin $ 1,140 $1 ,140 $6 $274 $ 13 $287
Subtotal- 2018 Ne w Projects $0 $12,496 $12,496 $0 $279 $3,036 $1 ,694 $4,730
Grand Total $21,801 $1 9,446 $41,247 $8,600 $590 $10,572 $6,051 $25,2231
Transfer to Plant in Service $3 ,550 $85 $3,635 $3 ,447 $6,006
Month Beginning Fund Bal ance $ 23 ,5 11 Funds Spent July 20 18 $ (590) 8% Mandatory Transfer $ 265 Mise Collections $ 123 Accounts Payable $ (1,54 1) Month End Fund Balance 1$ 21,768 1 -1 7·
K: \Reports\Financial Statement Pages\Page 17- R& R Fund Actua l FY 2018 Utilities Commission Statement of Cash Flows For the 10 Months Ended 7/31/18
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HHH >>m•>H)>HH>~43.442,335 ) ··H···HH> ··: ::. : :: j47;ssi;s4S:j ...... ; ...... : :...... : ...... ;...... j -18- UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FWRIDA FORECAST REPORT For the Ten Months Ending July 31,2018 COMBINED SYSTEM 4. 5. I. 2. 3. BUDGET ACTUAL 6. TOTAL BUDGET ACTUAL FISCAL FISCAL FAVORABLE BUDGET July 18 July 18 YEAR-TO-DATE YEAR-TO-DATE (UNFAVORABLE) I. Revenues: 2. Electri c $45,405,011 $4 ,745,598 $4,430,405 $36,034,676 $35,428,512 ($606,164) 3. Water Revenues 8,263,459 685,999 669,877 6,883,593 6,61 5,389 ($268,204) 4. Reclamation 9,800,403 814,282 833,314 8,1 67, 100 8,078,007 ($89,093) 5. Total Revenues 63,468,873 6,245,879 5,933,596 51,085,369 50,121,908 ($963,461) 6. Other Revenue Sources: 8. R & R Contribution 1,628,712 135,726 549,166 1,357,260 4,055,573 $2,698,313 9. Infrastructure Contri bution 225,000 18,750 0 187,500 0 ($187,500) 10. Bond & Other Financi ng Sources 1,264.139 105,345 0 1,053,449 0 ($1 ,053.449) 11. Total Other Sources 3,117,851 259,821 549,166 2,598,209 4,055,573 $1,457,364 12. Balance 66,586,724 6,505,700 6,482,762 53,683,578 54,177,481 $493,903 13. Operation & Maintenance Expenses: 14. Purchased Power 22,352,415 2,045,836 1,978,528 18,292,836 16,635,267 $1 ,657,569 15. Electric Operations 9,763,962 791 ,113 824,826 8,046,434 8,257,066 ($210,632) 16. Water Operations 3,767,561 302,071 280,235 3,093,510 2,641,76 1 $451,749 17. Reclamation Operations 2,998,478 240,562 221,701 2,463,755 2,317,100 $146,655 18. Administration/Supplemental Benefits 6,700,701 547,510 520,915 5,534,391 5,563,358 ($28,967) 19. Engineering 1,098,800 85,351 73,686 890,805 75 1,781 $139,024 20. Finance/Customer Service/Materials Management 2,464,400 194,947 180,882 2,01 1,988 1,889,066 $122,922 21. Total O&M Ex(!enses 49,146,317 4,207,390 4,080,773 40,333,719 38,055,399 $2,278,320 22. Balance 17,440,407 2,298,310 2,401,989 13,349,859 16,122,082 $2,772,223 23. To Sinking Fund: 24. 2009 Certificate 3,824,718 318,727 324,893 3,187,265 3,230,222 ($42,957) 25. 20 11 Certificate 1,220,764 101 ,730 102,461 1,017,303 1,022,445 ($5,142) 26. 201 3A Certificate 461 ,763 38,480 43,477 384,802 298,910 $85,892 27. 2013B Certificate 868,164 72,347 72,347 723,470 723,470 $0 28. Total Debt Service 6,375,409 531,284 543,178 5,312,840 5,275,047 $37,793 29. Balance 11,064,998 1,767,026 1,858,811 8,037,019 10,847,035 $2,810,016 31. Transfer toR & R - Contribution 3,176,911 264,743 473,190 2,647,426 5,038,192 ($2,390,766) 32. Transfer to R & R- Restricted Contri bution 620,250 51,688 217,600 516,875 1,296,645 ($779,770) 33. Transfer toR & R- From Alternate Financing 3,288,508 274,043 0 2,740,424 0 $2,740,424 34. Transfer to Infrastructure - Contribution 225,000 18,750 0 187,500 0 $187,500 35. Balance 3,754,329 1,157,802 1,168,021 1,944,794 4,512,198 $2,567,404 36. Transfer to Cit;t 3,754,329 383,359 347,210 3,000,165 2,954,700 $45,465 37. Balance 0 774,443 820,811 (1 ,055,371) 1,557,498 $2,612,869 -19- Note: Contribution in Aid ofCo nstruction (ClAC) includes a dollar valuation of non-cash contributed capital assets. UTILITlES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA FORECAST REPORT For the Ten Months Ending July 3I, 2018 ELECTRIC SYSTEM 4. 5. I. 2. 3. BUDGET ACTUAL 6. TOTAL BUDGET ACTUAL FISCAL FISCAL FAVORABLE BUDGET J uly 18 July 18 YEAR-TO-DATE YEAR-TO-DATE (UNFAVORABLE) 1. Revenues: 2. Direct Sales: 3. Metered Billings $34,217,266 $3,591,342 $3,362,018 $27,127,072 $27,257,240 $130,168 4. Load Management Credits (227,829) (24,984) (16,340) (178,965) (160,854) $18,111 5. Energy Cost Adjustments 9,479,492 995,099 934,949 7,514,573 7,433,763 ($80,810) 6. (Over) Under Recovery of Fuel Costs 866,082 94,975 28,283 680,329 6,854 ($673,475) 7. Misc. Operating Revenue 797,669 66,472 48,280 664,724 514,783 ($149,941) 8. Non Operating Revenue 272,333 22,694 73,215 226,944 376,727 $149,783 9. Total Revenues 45,405,013 4,745,598 4,430,405 36,034,677 35,428,513 ($606,164) 10. Other Revenue Sources: 11 . R & R Contributions 251 ,014 20,918 88,015 209,179 632,563 $423,384 12. Infrastructure Contribution 75, 000 6,250 0 62,500 0 ($62,500) 14. Total Other Sources 326,014 27,168 88,015 271,679 632,563 $360,884 15. Balance 45,731,027 4,772,766 4,518,420 36,306,356 36,061,076 ($245,280) 16. Operation & Maintenance Expenses: Direct Cost Center 17. Purchased Power 22,352,415 2,045,836 1,978,528 18,292,836 16,635,267 $1,657,569 18. Electric Operations 9,763,962 791,1 13 824,826 8,046,434 8,257,066 ($210,632) Indirect Cost Centers 19. Administration 574,341 57,689 39,736 499,876 551 ,700 ($51 ,824) 20. Information Technology 600,362 48,636 57,980 494,726 614,226 ($119,500) 21 . Hu man Resources 2,474,287 198,430 189,625 2,030,862 1,981,205 $49,657 22. Engi neering 363,350 28,292 30,965 294,844 317,554 ($22,710) 23. Finance/Customer Service/Materials Management 1,315,668 103,878 97,855 1,073,345 1,045,763 $27,582 24. Total O&M Expenses 37,444,385 3,273,874 3,219,515 30,732,923 29,402,781 $1,330,142 25. Balance 8,286,642 1,498,892 1,298,905 5,573,433 6,658,295 $1,084,862 26. To Sinking Fund: 27. 2009 Certificates 1,937,602 161 ,467 164,591 1,614,668 1,636,430 ($21 ,762) 28. Total Debt Service 1,937,602 161,467 164,591 1,614,668 1,636,430 {$21,762) 29. Balance 6,349,040 1,337,425 1,134,314 3,958,765 5,021,865 $1,063,100 30. Tra nsfer to R & R- Contribution 1,802,213 150,184 172,71 0 1,501 ,844 1,975,822 ($473,978) 32. Transfer to R & R • From Alternate Financing 1,780,556 148,380 0 1,483,797 0 $1 ,483,797 33. Transfer to Infrastructure· Contribution 75,000 6,250 0 62,500 0 $62,500 34. Balance 2,691,271 1,032,611 961,604 910,624 3,046,043 $2,135,419 35. Transfer to City 2,691 ,271 295,125 260,154 2,114,061 2,094,402 $19,659 36. Balance 0 737,486 701 ,450 (1,203,437) 951,641 $2,155,078 -20- Note: Contribution in Aid of Construction (CIAC) includes a dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA FORECAST REPORT For the Ten Months Ending July 31, 2018 WATER SYSTEM 4. 5. 1. 2. 3. BUDGET ACTUAL 6. TOTAL BUDGET ACTUAL FISCAL FISCAL FAVORABLE BUDGET July 18 July 18 YEAR-TO-DATE YEAR-TO-DATE (UNFAVORABLE) 1. Revenues: 2. Metered Billings $7,867,299 $652,986 $624,207 $6,553,460 $6,227,516 ($325,944) 4. Misc. Operating Revenue 320,879 26,740 16,940 267,400 185,911 ($81 ,489) 5. Non-Operating Revenue 75,280 6,273 28,730 62,733 201,962 $139,229 6. Total Revenues 8,263,458 685,999 669,877 6,883,593 6,615,389 ($268,204) 7. Other Revenue Sources: 8. R & R Contribution 1,031,893 85,991 238,069 859,911 1,191,361 $331,450 9. Infrastructure Contribution 75,000 6,250 0 62,500 0 ($62,500) 10. Bond & Other Financing Sources 248,038 20,670 0 206,698 0 ($206,698) 11. Total Other Sources 1,354,931 112,911 238,069 1,129,109 1,191,361 $62 252 12. Balance 9,618,389 798,910 907,946 8,012,702 7,806,750 ($205,952) 13. Operation & Maintenance Expenses: Direct Cost Center 14. Water Operations 3,767,561 302,071 280,235 3,093,510 2,641 ,761 $451,749 Indirect Cost Center 15. Administration 187,051 13,910 14,908 154,884 154,520 $364 16. Information Technology 167,314 13,554 16,158 137,874 169,406 ($31 ,532) 17. Human Resources 1,124,988 90,228 84,735 923,404 874,052 $49,352 18. Engineering 311 ,388 24,179 18,116 252,409 186,076 $66,333 19. Finance/Customer Service/Materials Mana9ement 609,218 48,568 44,053 498,881 445,804 $53,077 20. Total O&M Ex~enses 6,167,520 492,510 458,205 5,060,962 4,471,619 $589,343 21. Balance 3,450,869 306,400 449,741 2,951,740 3,335,131 $383,391 22. To Sinking Fund: 27. 2009 Certificates 600,098 50,008 50 ,976 500,082 506,822 ($6,740) 29. 2013B Certificates 868,164 72,347 72,347 723,470 723,470 $0 30. Total Debt Service 1,468,262 122,355 123,323 1,223,552 1,230,292 ($6,740) 31. Balance 1,982,607 184,045 326,418 1,728,188 2,104,839 $376,651 32. Transfer to R & R - Contribution 626,225 52,185 146,860 521,854 952,927 ($431 ,073) 33. Transfer to R & R - Restricted Contribution 471,412 39 ,284 85,765 392,843 550,712 ($157,869) 34. Transfer to R & R - From Alternate Financing 323,665 26,972 0 269,721 0 $269,721 35. Transfer to Infrastructure - Contribution 75,000 6,250 0 62,500 0 $62,500 36. Balance 486,305 59,354 93,793 481,270 601,200 $119,930 37. Transfer to Cit:t: 486,305 40,363 38 ,370 405,092 383,564 $21 ,528 38. Balance 0 18,991 55,423 76,178 217,636 $141,458 -21- Note: Contribution in Aid of Construction (CIAC) includes a dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FWRIDA FORECAST REPORT For the Ten Months Ending July 31 , 2018 RECLAMATION SYSTEM 4. 5. I. 2. 3. BUDGET ACTUAL 6. TOTAL BUDGET ACTUAL FISCAL FISCAL FAVORABLE BUDGET J uly 18 J uly 18 YEAR-TO-DATE YEAR-TO-DATE (UNFAVORABLE) I. Revenues: 2. Sales $9,754,466 $810,453 $811 ,354 $8,128,818 $7,945,641 ($183,177) 3. Misc. Operating Revenue 9,291 774 651 7,742 6,964 ($778) 4. Non-Operating Revenue 36,647 3,054 21 ,309 30,539 125,402 $94,863 5. Total Revenues 9,800,404 814,281 833,314 8,167,099 8,078,007 ($89,092) 6. Other Revenue Sources: 7. R & R Contribution 345,805 28,817 223,082 288,171 2,231 ,649 $1 ,943,478 8. Infrastructure Contribution 75,000 6,250 0 62,500 0 ($62,500) 9. Bond & Other Financing Sources 1,016,101 84,675 0 846,751 0 ($846,751) 10. Total Other Sources 1,436,906 119,742 223,082 1,197,422 2,231,649 $1,034,227 ll. Balance ll,237,310 934,023 1,056,396 9,364,521 10,309,656 $945,135 12. Operation & Maintenance Expenses: Direct Cost Center 13. Reclamation Operations 2,998,478 240,562 221,701 2,463,755 2,317,100 $146,655 Indirect Cost Center 14. Administration 199,608 14,776 16,537 165,241 181 ,895 ($16,654) 15. Information Technology 216,524 17,541 20,911 178,426 219,231 ($40,805) 16. Human Resources 1,156,226 92,747 80,324 949,099 817,122 $131,977 17. Engineering 424,062 32,880 24,605 343,553 248,151 $95,402 18. Finance/Customer Service/Materials Management 539,514 42,501 38,973 439,761 397,500 $42,261 19. Total O&M Expenses 5,534,412 441,007 403,051 4,539,835 4,180,999 $358,836 20. Balance 5,702,898 493,016 653,345 4,824,686 6,128,657 $1,303,971 21. To Sinking Fund: 24. 2009 Certificates 1,287,018 107,251 109,326 1,072,515 1,086,970 ($14,455) 25. 2011 Certificates 1,220,764 101 ,730 102,461 1,017,303 1,022,445 ($5,142) 27. 2013A Certificates 461 ,763 38,480 43,477 384,802 298,910 $85,892 28. Total Debt Service 2,%9~5 247,461 255,264 2,474,620 2,408~25 $66~95 29. Balance 2,733,353 245,555 398,081 2,350,066 3,720,332 $1,370,266 30. Transfer to R & R - Contribution 748,473 62,373 153,620 623,728 2,109,443 ($1 ,485,715) 31. Transfer to R & R- Restricted Contribution 148,838 12,403 131 ,835 124,032 745,933 ($621,901) 32. Transfer to R & R -From Alternate Financing 1,184,288 98,691 0 986,907 0 $986,907 33. Transfer to Infrastructure - Contribution 75,000 6,250 0 62,500 0 $62,500 34. Balance 576,754 65,838 ll2,626 552,899 864,956 $312,057 35. Transfer to City 576,754 47,871 48,686 481, 01 3 476,735 $4,278 36. Balance 0 17,967 63,940 71,886 388,221 $316,335 -22- Note: Contribution in Aid of Construction (CIA C) includes a dollar valuation of non-cash contributed capital assets. UTILITIES COMMISSION CITY OF NEW SMYRNA BEACH, FLORIDA For the Ten Months Ending July 31, 2018 Budget Summary By Department TOTAL I MONTH I I YEAR-TO-DATE J BUDGET BUDGET ACTUAL BUDGET ACTUAL VARIANCE 10 Administration/Supplemental Benefits $6,700,701 $547,510 $520,915 $5,534,391 $5,563,358 ($28,967) 20 Electric Operations 32,116,377 2,836,949 2,803,353 26,339,270 24,892,332 1,446,938 30 Water & Reclamation 6,766,039 542,633 501,936 5,557,265 4,958,860 598,405 40 Engineering 1,098,800 85,351 73,686 890,805 751,781 139,024 50 Finance/Customer Service/Materials Management 2,464,400 194,947 180,882 2,011,988 1,889,066 122,922 Total Budget $49,146,317 $4,207,390 $4,080,772 $40,333,719 $38,055,397 $2,278,322 -23- Combined System Revenues $7,000,000 $6,500,000 $6,000,000 $5,500,000 ~ -==:--=j $5,000,000 $4,500,000 $4,000,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 0 & M Expenses $5,000,000 $4,500,000 $4,000,000 t = ~~ = ~-j $3,500,000 $3,000,000 $2,500,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Balance $1,500,000 $1,000,000 $500,000 $0 ,_. .~ .. - ~··'1 ($500,000) ($1,000,000) ...l.------1 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Electric Revenues $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 0 & M Expenses $2,000,000 $1,800,000 $1,600,000 $1,400,000 1- -- -j $1,200,000 $1,000,000 $800,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Fuel & Purchased Power Electric (Cont.) $3,000,000 $2,500,000 $2,000,000 [ - - · · - ·~'[ $1,500,000 $1,000,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Balance $1,250,000 $750,000 $250,000 I ==I ($250,000) ($750,000) _L______, Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Water Revenues $800,000 I $700,000 -l • -=:::::::: ~· ~~ I 1----1 $600,000 J $500,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 0 & M Expenses $650,000 $550,000 $450,000 i \ """- / I ... - ~ -- '\. I ~ $350,000 _j \ I ----- I 1- -- ··1 $250,000 $150,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Balance $300,000 $200,000 $100,000 i 1 /"- \ I $0 ~ 1----1 ($100,000) ($200,000) Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Reclamation Revenues $900,000 $800,000 1- ·-- - ·-·1 $700,000 $600,000 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 0 & M Expenses $600,000 $400,000 lu ==I $200,000 $0 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Balance $200,000 $150,000 $100,000 $50,0:: j ~ 1/ \ 77 . ~ I 1- ·- - -·1 ($50,000) ($100,000) ($150,000) Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Revenues By Division Wastewater, $833,314 ' 14.04% Water, $669,877 , 11 .29% Electric, $4,430,405 , 74.67% O&M By Division $2,500,000 $2,000,000 $1 ,500,000 $1 ,000,000 $500,000 $- 0 "0 .... Q) Ol ·;:: Q) $ > c: lS !/) 2ro c: ti ro :s · ~ ro .9l .s:: :!: 0 Q) c: ~ Q) w ~ X .!: u: ::l w Ol a.. "i::: c: iii ~ 0 w ~ 3: * -o ti ~a.. ~ LL 0 u0 Q) iiJ Chicago Title Insurance C01npany ALTA COMMITMENT Agen t's F ile Number: S-19025 Commitment Number: S-19025 18. Rights, Terms, Conditions, Easements, and Matters set forth in Stipulated Final Judgment recorded in Official Records Book 4931, Page 3196. 19. All right, title and interest of Utilities Commission, City of New Smyrna Beach, Florida, a body corporate under the Laws of the State of Florida, in the Deed to the Insured, in an undivided three-fourths interest in, and title in and to an undivided three-fourths interest in, all the phosphate, minerals, and metals that are or may be in, on, or under the said land and an undivided one-half interest in all the petroleum that is or may be in, on, or under said land with the privilege to mine and develop the same, which interest may have been reserved under Section 270.11, Florida Statute, in said Deed recorded __, in Official Records Book __, Page __. NOTE: This will remain as an exception if the Deed to the Insured does not specifically release the above. NOTE: All recording references in this commitment/policy shall refer to the public records of Volusia County, Florida, unless otherwise noted. NOTE: The Company reserves the right to make fm1her requirements and/or exceptions upon its review of the proposed documents creating the estate or interest to be insured or otherwise ascertaining details of the transaction. NOTE: If the proceeds of the loan to be secured by the insured mortgage are deposited with the Company or its authorized agent, Item 1 above shall be deemed deleted as of the time such funds are disbursed to or for the account of the bo1TOwer. Neither the Company nor its agent shall, however, be under any duty to disburse any sum except upon a determination that no such adverse intervening matters have appeared of record or OCClllTed. NOTES ON STANDARD EXCEPTIONS: Item 3A will be deleted from the policy(ies) upon receipt of an accurate survey of the Land acceptable to the Company. Exception will be made for any encroachment, setback line violation, overlap, boundary line dispute or other adverse matter disclosed by the survey. Items 3B, 3C, and 3D will be deleted from the policy(ies) upon receipt of an affidavit acceptablt to the Company, affirming that, except as disclosed therein (i) no pai1ies in possession o: the Land exist other than the record owner(s); (ii) no improvements have been made to the Land within 90 days prior to closing which have not have been paid for in full; and (iii) no unpaid taxes or assessments are against the Land which are not shown as existin liens in the public records. Exception will be made for matters disclosed in the affidavi AL TA Commitment Closers' Choice IN WITNESS WHEREOF, this Easement Release has been executed on the day and year first above written. Witnesses: UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA Sign: ______Printed Name:______By: ______Name: ______Title: ______Sign: ______Printed Name:______ STATE OF FLORIDA COUNTY OF ______ The foregoing instrument was acknowledged before me this ______day of ______, 2018, by ______as ______of UTILITIES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, on behalf of the company, who is personally known to me OR has produced ______as identification. Notary Public Commission Expires: 02/28/2007 12: 1!J PM 0oc staiiPS •70 (Transfer ~•t $ 10) EASEMENT DEED I nstrument# 2007-048118 # 1 Book: 6015 .. Page: 4 2 7 9 . - KNOW All MEN BY THESE PRESENTS: that Venetian Palms, Inc., 933 E$eville Road, Building 103-F, South Daytona, Florida 32119, as Grantor, in consideration of One ($1.00) Dollar and other valuable consideration in hand paid, the receipt of which is hereby acknowledged, does hereby grant and convey unto unLmES COMMISSION, CITY OF NEW SMYRNA BEACH, FLORIDA, P.O. Box 100-200 Canal Street, New Smyrna Beach, Florida 32170 as Grantee, and its successors and assigns, a perpetual non-exclusive general utilities easement over and under the following described land, situated in VoJusia County, Florida, to-wit See Attached Sketch of Description Only Not a Boundary Survey for Venetian Palms, Inc. by Sliger & Associates, Inc. Professional Land Surveyors, Sheet 1 & 2 of 2, Job## 07.0071, Dated February 02, 2007. TO HAVE AND TO HOLD the same unto said Grantee and its successors and assigns, together with the right to enter upon said lands with due concern for the Grantor's improvements to construct, repair, rebuild, alter, relocate, inspect and maintain electric, water, sewer and reuse utilities thereon. Grantor warrants and covenants that it has the right to convey to Grantee this easement, and that Grantee shall have quiet and peaceful possession, use and enjoyment of same. WITNESS our hands and seals this /S" day of 193B ,2007. Signed, sealed and delivered in the presence of: Printed Name: Grantors Grantors ~/(/eep Printed Name: ______STATE OF FLORIDA COUNTY OF VOLUSIA • The fo~inginstrument was acknowfedged before me this 15"" day of ~. 2007, by -.ll~~uimn..zu:u...;~~~~..a.;lll-~+-....,_"----·· who is personalty known to me or WhOtuts produced -lpia..-...-!sw...... t... h,.._. .... ~--..&•...... me~a ... ___ as proof of identification and who did not take an oath. ~0? Notary Public Cbrislintl. M. Willi AIX)S Notary Name Printed My commission expires: ,.: _.. . SLIGER & ASSOCIATE'S, INC. PROFESSIONAL LAND SURVEYORS LICENSED BUSINESS CERTIFICATION # 3019 3921 NOVA . ROAD PORT ORANGE, FL. 32127 Copyright ® 2006 Sliger &: Associates, Inc. (386) 761-5385 www.sllgerossoclotes.com POINT OF BEGINNING N~ o§O) N Oj ...l l O(.n~_. _. co SE~TION 17, TOWNSHIP 17 SOUTH, RANGE 33 EAST so9"17'28·w N""" 57.86 VENETIAN PALMS, INC. sos·os·45"W 198.99 ~ 5.00' 5.00' ~ PROPOSED EASEMENT 10.00' --11~+ :::!: ..... C/) 0.417 ACRES . <»..., co 3:: N89'08'36~W w S06'28'33.. W ·:6 z 104.63 N57'09'23"W 298.84 u... 101.12 0 N34"25'07"W ><( 87.18 Ill z <( I= w POINT OF TERMINUS S08"28'31"W Z · 221.41 ~ N62'03'48"W 305.91 18 \ 17 20 588'32'1 ~"E 19 • "E 317.03' 200.25 NBB'35 57 · \ Wft..'{ UNE :z. NOR1H R\G~i Of co9.0 • b~ OAD NO. 44 t-l.CJ1 R . •} tO• S1A1£ ~ POINT . OF COMMENCEMENT SOUTHWEST CORNER Of' THE·· SOUTHWEST 1/4, SECliON 20, TOWNSHIP 17 SOUTH, RANGE 33 EAST FOUND LIGHTWOOD ·. POST CERTIFIED CORNE.R #16535 FOR: YIINBTUN P.aJIS. INC. DESCRIPTION: (SEE SHEET 2 OF 2) ABBREVIATIONS SHEET 1 OF 2 (P) PLATTED DIMENSION (D) DEEDED DIMENSION LEGEND (M) MEASURED DIMENSION e IRON ROO. WllH CAP SkETCH OF DESCRIPTION ONLY (C) CALCULATED DIMENSION ID IDENTIFICATION 0 IRON PIPE A/C AIR CONDITIONER NOT A BOUNDARY SURVEY R/W RIGHT OF WAY 0 CONCRElE MONUMENT 2. DIMENSIONS ARE SHOWN IN FEET AND DECIMALS THEREOF. 3. BEARING STIRUCTURE ASSUMED NORTH WITH THE BEARING ON THE WEST LINE OF THE NORTHEAST 1/4 OF SECTION 17, TOWNSHIP 17 SOUTH, RANGE 33 EAST, BEING S01'25' 49"E. 4. UNDERGROUND FOUNDATIONS, IF ANY, NOT LOCATED. 5. UNLESS OTHERWISE SHOWN, RECORD DISTANCES AND DIRECTIONS AND FIELD MEASURED DISTANCES AND DIRECTIONS ARE THE SAME. 6. DESCRIPTION PREPARED BY SLIGER & ASSOCIATES, INC. NOTE: NOT VALID WITHOUT THE SIGNATURE AND THE ORIGINAL RAISED SEAL OF A FLORIDA LICENSED SURVEYOR AND MAPPER. REFERENCE: PALMS UTILITY EASEMENT PLAT PREPARED FOR THE FOLLOWING: (ONLY THE LAST DATE IS CERTIFIED ON SEALED COPY) THIS PLAT OF SURVEY IS CERTIFIED TO AND PREPARED FOR THE SOLE AND EXCLUSIVE BENEFIT OF THE ENTITIES AND\OR INDIVIDUALS LISTED BELOW, ON THE MOST CURRENT DATE, AND SHALL NOT BE RELIED UPON BY ANY OTHER ENTITY OR INDIVIDUAL WHOMSOEVER. TYPE OF SURVEY CERTIFIED TO DATE JOB NUMBER SKETCH OF DESCRIPTION VENETIAN PALMS, INC. · FEBRUARY 2 2007 07-0071 UTILITIES COMMISSION OF NEW SMYRNA BEACH NOT CERTIFIED TO ANY ENTITIES. AND/OR INDIVIDUALS OTHER THAN THOSE LISTED ABOVE. LEGAL DESCRIPliON A PORliON· OF SECliON 17, TOWNSHIP 17 SOUlH, RANGE 33 EAST, VOLUSIA COUNlY, FLORIDA BEING A 10.00. FOOT WIDE STRIP OF LAND LYING 5.00 FEET ON EACH SIDE OF lHE FOLLOWING DESCRIBED CENlERUNE: COMMENCE AT lHE SOUlHWEST CORNER OF SECliON 20, TOWNSHIP 1-7 SOUlH, ·RANGE 33 EAST; lH~CE RUN N01'2101"W ALONG 1HE WEST UNE OF SAID SEGliQN 20, A DISTANCE OF 2690 FEET; THENCE N01'47'59•w, 90.02 FEET TO 1HE NOR-n-1 RIGHT OF WAY LINE OF STATE ROAD NO. 44; THENCE N88'35'57•E ALONG SAID NORlH RI.GHT OF WAY UNE. 317.03 FEET; lHENCE S88"32'18•E ALONG SAID NOR1H RIGHT OF WAY UNE, 200.25 FEET; 1HENCE N88'35'57•E ALONG SAID NORlH RIGHT OF WAY UNE, 353.83 FEET; lHENCE DEPART SAID NORTH RIGHT OF WAY UNE N06'34'50•E. 5363.91 FEET TO 1HE POINT OF BEGINNING; 1HENCE S68"16'08•W, 42.64 FEET; lHENCE S09"1128•w. 57.86 FEET; THENCE S05'06'45•w, 198.99 FEET; lHENCE S06'28'33•W, 298.84. FEET; lHENCE S08'28'31-w, 221.41 FEET; lHENCE N62'03'48"W, 305.91 FEET; THENCE N60"39'34•w, 299.83 F£ET; 1HENCE N34'25'07•w, 87.18 FEET; 1HENCE N57'09'23•w. 101.12 FEET; lHENCE N65'56'44•w, 100.00 FEET; lHENCE N89'08'36•W, 104.63 FEET TO lHE POINT OF TERMINUS, 1HE SIDES OF SAID STRIP OF LAND TO SHORTEN .OR LENG1HEN TO CREATE NO GAPS OR OVERLAPS AND TO TERMINATE AT lHE LANDS OF 1HE GRANTOR. CONTAINING 0.417 ACRES, MORE OR LESS. . SHEET 2 OF 2 VALID WITH SIGNATURE & EMBOSSEI)' SEAL,S;QRfGY·:r FoR: VENETIAN PALMS, INC. ~[R~~il.13~~~~:e~ti ~{f~~~-~~ ~------,...-----~!!!!"""--.....,r-~~~ ~-~!!""''~~~~--1 FORTH I'I.Y·. Phase 4: A PORTION OF SECTION 17, TOWNSHIP 17 SOUTH, RANGE 33 EAST, LOCATED IN THE CITY OF NEW SMYRNA BEACH, VOLUSIA COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCE AT THE EAST 1/4 CORNER OF SECTION 18, TOWNSHIP 17 SOUTH, RANGE 33 EAST, VOLUSIA COUNTY, FLORIDA; RUN THENCE S01°28'45"E ALONG THE EAST LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 18 A DISTANCE OF 68.39 FEET; THENCE S16°23'48"E A DISTANCE OF 111.93 FEET FOR A POINT OF BEGINNING; THENCE N73°36'12"E A DISTANCE OF 125.00 FEET TO A POINT OF CURVATURE ON A CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 25.00 FEET, A CHORD BEARING OF N28°36'11"E, A CHORD DISTANCE OF 35.36 FEET, RUN THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 89°59'56", A DISTANCE OF 39.27 FEET; THENCE N68°50'23"E A DISTANCE OF 60.20 FEET; THENCE S16°40'20"E A DISTANCE OF 105.00 FEET; THENCE N73°36'12"E A DISTANCE OF 149.50 FEET; THENCE S16°23'48"E A DISTANCE OF 130.00 FEET; THENCE N73°36'12"E A DISTANCE OF 443.72 FEET; THENCE N16°23'48"W A DISTANCE OF 94.10 FEET; THENCE N70°22'33"E A DISTANCE OF 60.12 FEET; THENCE N73°36'12"E A DISTANCE OF 124.98 FEET; THENCE S16°23'48"E A DISTANCE OF 72.47 FEET; THENCE N73°37'01"E A DISTANCE OF 208.86 FEET; THENCE N73°12'41"E A DISTANCE OF 9.03 FEET; THENCE N76°52'28"E A DISTANCE OF 166.00 FEET; THENCE S86°51'00"E A DISTANCE OF 9.91 FEET; THENCE N79°15'27"E A DISTANCE OF 166.00 FEET; THENCE S83°23'55"E A DISTANCE OF 40.06 FEET; THENCE S06°36'05"W A DISTANCE OF 1,723.62 FEET; THENCE N84°23'44"W A DISTANCE OF 175.91 FEET; THENCE N05°36'16"E A DISTANCE OF 80.00 FEET; THENCE N84°23'44"W A DISTANCE OF 725.92 FEET; THENCE N83°24'10"W A DISTANCE OF 123.92 FEET; THENCE S06°36'28"W A DISTANCE OF 10.53 FEET; THENCE N83°23'32"W A DISTANCE OF 69.23 FEET; THENCE N09°07'19"E A DISTANCE OF 175.64 FEET; THENCE N17°35'58"E A DISTANCE OF 174.31 FEET; THENCE S72°24'02"E A DISTANCE OF 133.60 FEET TO A NON-TANGENT POINT ON A CURVE CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 25.00 FEET, A CHORD BEARING OF N22°59'27"W, A CHORD DISTANCE OF 34.12 FEET, RUN THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 86°03'02", A DISTANCE OF 37.55 FEET TO THE POINT OF TANGENCY; THENCE N66°00'58"W A DISTANCE OF 3.81 FEET TO A POINT OF CURVATURE ON A CURVE CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 140.00 FEET, A CHORD BEARING OF N41°12'23"W, A CHORD DISTANCE OF 117.49 FEET, RUN THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 49°37'10", A DISTANCE OF 121.24 FEET; THENCE N16°23'48"W A DISTANCE OF 17.27 FEET; THENCE S73°36'12"W A DISTANCE OF 150.00 FEET; THENCE N16°23'48"W A DISTANCE OF 945.00 FEET TO THE POINT OF BEGINNING. Phase 5: A PORTION OF SECTIONS 17 AND 18, TOWNSHIP 17 SOUTH, RANGE 33 EAST, LOCATED IN THE CITY OF NEW SMYRNA BEACH, VOLUSIA COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCE AT THE EAST 1/4 CORNER OF SECTION 18, TOWNSHIP 33 SOUTH, RANGE 33 EAST, VOLUSIA COUNTY, FLORIDA; RUN THENCE S89°20'29"W ALONG THE SOUTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION 18 A DISTANCE OF 18.29 FEET FOR A POINT OF BEGINNING; THENCE CONTINUE S89°20'29"W A DISTANCE OF 20.78 FEET TO THE SOUTHEAST CORNER OF TRACT "N", VENETIAN BAY PHASE 1B - UNIT 1, AS RECORDED IN PLAT BOOK 52, PAGES 71 THROUGH 91, PUBLIC RECORDS OF VOLUSIA COUNTY, FLORIDA; THENCE N16°23'48"W ALONG THE EAST LINE OF SAID TRACT "N" A DISTANCE OF 1,500.02 FEET TO THE SOUTH BOUNDARY OF THE DRAINAGE EASEMENT RECORDED IN OFFICIAL RECORDS BOOK 3203, PAGE 816, PUBLIC RECORDS OF VOLUSIA COUNTY, FLORIDA; THENCE S65°14'42"E ALONG SAID SOUTH BOUNDARY AND CONTINUING ALONG THE BOUNDARY LINE OF SAID TRACT "N" A DISTANCE OF 475.94 FEET TO A POINT ON THE EAST LINE OF SAID NORTHEAST 1/4 OF SECTION 18, AND THE SOUTHWEST CORNER OF TRACT "A", VENETIAN BAY PHASE 2 - UNIT 1, AS RECORDED IN PLAT BOOK 53, PAGES 139 THROUGH 175, PUBLIC RECORDS OF VOLUSIA COUNTY, FLORIDA; THENCE S65°16'24"E ALONG THE SOUTHERLY BOUNDARY OF SAID TRACT "A" A DISTANCE OF 1,864.09 FEET; THENCE S06°36'05"W ALONG THE WESTERLY BOUNDARY OF SAID TRACT "A", THE WEST RIGHT-OF-WAY LINE OF PORTOFINO BOULEVARD, AND THE WEST BOUNDARY OF TRACT "YY" OF SAID PLAT OF VENETIAN BAY PHASE 2 - UNIT 1, A DISTANCE OF 406.54 FEET; THENCE N83°23'55"W A DISTANCE OF 40.06 FEET; THENCE S79°15'27"W A DISTANCE OF 166.00 FEET; THENCE N86°51'00"W A DISTANCE OF 9.91 FEET; THENCE S76°52'28"W A DISTANCE OF 166.00 FEET; THENCE S73°12'41"W A DISTANCE OF 9.03 FEET; THENCE S73°37'01"W A DISTANCE OF 208.86 FEET; THENCE N16°23'48"W A DISTANCE OF 72.47 FEET; THENCE S73°36'12"W A DISTANCE OF 124.98 FEET; THENCE S70°22'33"W A DISTANCE OF 60.12 FEET; THENCE S16°23'48"E A DISTANCE OF 94.10 FEET; THENCE S73°36'12"W A DISTANCE OF 443.72 FEET; THENCE N16°23'48"W A DISTANCE OF 130.00 FEET; THENCE S73°36'12"W A DISTANCE OF 149.50 FEET; THENCE N16°40'20"W A DISTANCE OF 105.00 FEET; THENCE S68°50'23"W A DISTANCE OF 60.20 FEET TO A NON- TANGENT POINT ON A CURVE CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 25.00 FEET, A CHORD BEARING OF S28°36'11"W, A CHORD DISTANCE OF 35.36 FEET, RUN THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 89°59'56", A DISTANCE OF 39.27 FEET TO THE POINT OF TANGENCY; THENCE S73°36'12"W A DISTANCE OF 125.00 FEET; THENCE N16°23'48"W A DISTANCE OF 182.98 FEET TO THE POINT OF BEGINNING.