--------- to um order. It is November 25th, 2025. It's approximately 3:05 in the afternoon. Um I'm going to start off with Commissioner Moore. I'm going to ask you again to lead us in an invitation. Please stand everyone if you are able.
>> Let's go ahead. Dear heavenly father, we want to thank you for this day for this is the day that you have made and we will rejoice. We ask that you be with us today in this meeting. Help us to accomplish those things that will be pleasing in your sight. Help us to work in unity and love
that we might get things done for our city. We ask you bless us and keep us is our prayer. In Jesus name we pray. Amen. Amen. Pledge of Allegiance to the flag of the United States of America and to the
stands. One nation under God indivisible with liberty and justice for all. >> Thank you everyone for being here. Madam clerk, if you do a roll call for us, please I don't think the mics are on. Commissioner William Lorie
>> present. >> Commissioner Linda Moore [clears throat] >> here. >> Commissioner Cynthia Burton >> here. >> City Manager Derek Martin >> here. >> Finance Director Steve Conklin >> here. >> Crescent City Natural Gas Director Dave Frank
>> here. >> And we have Miss Katie Hall. >> And FGU representatives tonight. [clears throat] Thank you very much, madam clerk. >> Um, with that, I'm going to commissioners, you have on the agenda,
and we've had um an amended agenda to where they've added the discussion for um by Commissioner Newold for the historic marker program. Uh, I believe that the gas discussion is going to be lengthy, so I don't know if everyone
wants to consider taking this out of order. >> Sure, it's a good idea. >> Is everyone in favor of that? Okay, then with that, we're going to go ahead and let's start our meeting with um, Commissioner Newald. [clears throat]
>> Well, thank you for having Jr. Newbold 660 Highway 17. and I'm here with my um Peninsula Historical Society hat on today. So again, thank you commission chairman. Sorry. Thank you. Um first I'd
like to thank you all for participating in the 2025 historic marker program that was such a success. Um couldn't have done it without you guys. The installation help was fantastic and I think it's kind of raised our profile in
a small way. So, we're excited to I think [clears throat] you have received a a handout that has some information. I'm not going to read the whole thing for the highlights and and go from there. Um, we're excited to announce that the next marker for 2026 will be
dedicated to the Church of the Holy Comfort, a historic landmark built in 1878 by the Episcopal Dascese of Florida. This church is one of the oldest in our area and shares many design features with other carpenter [clears throat] Gothic style churches
built across Florida during the same time period. The cost for this second marker and our ongoing program is $3,270 attached as a quote from Sew Studios for 370 that doesn't have a $200 freight
involved. Um we would kindly request the city to consider financing half the cost in the amount of 1,635. [clears throat] Also provided in in this [snorts] packet is an edited copy of the text and a photograph of the style of the markers
collected. You'll note that the bottom of the sign is sponsored by the Fremont Historical Society in the city of Cresant City 2026 and we would [clears throat] respectfully request your approval of the proposed wording on the marker and
your assistance with the installation along with any financial contribution that uh that you're comfortable with. Feel like it's an important program. I think it it it lends to, you know, both just [clears throat] the historical
significance for our our residents, but also visitors who come and just check out President City and see what our local what we're like now, what we like back in the past. So, we would appreciate any help that you could give
with this project. >> Thank you. >> You guys don't have any questions. That will >> commissioners. Do you have an open questions? >> Um, I guess I would like to share where I am on this and what I thought we were
intended to do today. Okay. So, Commissioner Lori and I both serve on the board of Footlo Peninsula Historical Society. Um we do not discuss or suggest any opinion about issues that we may
vote on in the commission. Um and we did not with respect to this issue. Um there was a report about the status of the marker and one of the other board members brought up that the wording at
the bottom which has been printed here said sponsored by Fruitland Peninsula Historical Society and the city of Crescent City 2026. So, um, it occurred to us that we had
not come before the city to get the okay to include that language that says sponsored by including the city of Crescent City. um we didn't discuss it, but there was a consensus that we probably should not
have the um marker company cast the marker until that issue was given up or down. So, I will say um it is my hope that the city will agree to have their name on the marker because I think it's
a great program and I think it's good for the city. Um, so that was the issue that I expected to discuss today and I don't know >> and that's on the current marker. That's on the current marker that's in place
current marker that's in place that we helped that we helped with. We did the installation, >> correct? Um, but it's I believe and Commissioner Boyd, you can speak to this because he's the one who is he and I believe a couple other people on the board are handling the language for the
uh holy comforter marker that is about to go into production and that is the immediate issue as I understand it. Yes, I I as as Commissioner Dio said, um I actually placed the order with SeaWalk
that I've been dealing with and and putting it all together. Um it's going to look the same colors, same um design as that as the one at Hover House. We would like them of course to be consistent and they they look the same. It really looks more attractive. Um,
this one being that it's going to be at the holy culture church, it won't actually be in the right way. It'll be on their private property. Um, kind of in their yard. They're still determining which way to turn it. Um, which way they want to turn. But as commissioner said, um, we just wanted to make sure that the
city is on board with us still and that you guys are okay with the name on it. Um, and like I said, it's it's an unity manufactured, but it's not too late to change that if that's necessary.
>> To delete the to delete something, we [clears throat] can't make huge changes, but to delete it. >> So, I had to come out. I have concern I think um are you do you want us to
consider financing after 1635? >> I'd like you to consider that. Um we will be happy. We're going to move forward with it no matter what. Um last year the program was very successful. We were able [clears throat] to achieve
help from the city with replacement of it. Um, >> the reason [clears throat] the reason I'm asking is our budget's already in for 2026. Our budget is it's full. In other words, we've already budgeted our money out,
okay, into 2026. And when we did that, even um last year, we we couldn't get enough. We couldn't get enough for um the Christian uh you know, everything was cut, our
community were cut that >> and and things like that. I I I don't see where this this doesn't this is not in our budget for >> Okay. Well, I I would I would ask you to consider several times. We will continue as long as there is community support um
budgetary funds within the historical society and and enthusiasm from our membership. We're going to continue to try to do one per year each year until that enthusiasm wains our funds don't allow. I would ask you to consider
funding it in the future. I'd ask you to consider um allowing staff help for the placement of the the marker in 2026, but um I'd ask that you consider um budgeting at some level um for future markers.
>> It'll be a a future budgeting topic on >> future budgets. >> That's that's what I guess I'm trying to say. However, I mean, we did help by placing it um you know, over at Ronnie's house, and I'm sure that we could
probably do something like that. Again, I'm not sure that's I believe the public works um >> because it is a very it's heavy, a solid aluminum that's two 200 300 lb. Um but they did a great job of installing it
and making sure it's turning. They cut down the hole because the hole was too long. So, I mean, they did an amazing job. It looks amazing. It looks great. I even that week it was raining. I was really worried that they were going to be able to do it and I was pleasantly surprised. So, as long as the the city
is willing to help out with that again, that would be very helpful. Um because we don't have the facilities to take it out of the crate basically. Um and but they will ship it here. Um and then we can have it here.
if if there help last year. Last year, your staff, our city employees were a huge help. They were they were, you know, two of them came [clears throat] to him at the last minute, made it happen. We appreciate your efforts. >> I think that was Ronnie and his team. Ryan and his team made that happen.
>> Is that the one in front of the historical house? >> They found our stick. They found our stick. Mhm. >> Um, so but I I I mean I last year, let me ask you this. When it came in, because he said if you don't have the
means, it's a 200 an additional $200 cost. Was that the same as last year? And how did we handle that last year? >> What happened last year was um it actually was shipped to a residence in Lark. >> Oh, that's right. >> And then Mr. Miller brought it by all truck here and then they took it out. I
was trying to avoid that this year. Actually had it delivered here. So it would be delivered here to >> that's why there's the lift charge because we don't have a limited dock. But um as long as we get it here I think they can handle it from that. So
>> is there any way to avoid that $200 with it being brought here? >> I was wondering um but apparently the the truck the shipping the trucking company has a database and it knows whether you have a forklift and have a loading dock. And so she told me it we were flagged as not having a loading
dock. So you actually have to have it. They have to have a database in it that says it. >> So wherever you So wherever you have it, whatever delivery address. So I mean I'm just wondering with some of our businesses in town, we have several of them that I believe do have loading docks. >> I'm quite certain we could with enough
advanced notice we could um come up with a a lift a location for it. So we should probably get that feed >> and then yeah and that's something that does have to be necessarily looked at until
which would be April. So I'm I'm willing and happy to any any suggestions we have. I do know that it was like I was like well I'll just put in the city hall address and see if that would work and she came back and said nope trucking company flag and I was like oh okay that doesn't sound good. Um but we can make
it work. I mean that's I I have a lot of faith in that the city public works as long as they did a great job last year. >> They [clears throat] did last year just trying to see how you could avoid additional because >> every [clears throat] little bit helps >> every every little bit helps. >> So I I believe we've got two issues
here. So Commissioner brought up the issue as to whether or not the city is um in agreement with including them as as a sponsor of this. So that would be one issue before us. And then are you asking us to vote on whether or not we
can fund the second half today? Is that an answer? I guess you need something today. I mean, are you going to go ahead with this at this time? Regardless, >> the number is placed as [clears throat] it stands right now, we're going to go ahead with it regardless. And um you know, the more help we can get from the
community. Last year we had um the help from the [snorts and clears throat] city installation which which helped defer costs from us. We had budgeted funds from the historical society itself. Those two things together did not make the the total. So we made it to
membership and members of the community as a whole and we received donations from both our members and just [clears throat] folks from the community were not members. So it's it's been popular. Um it was well received and we were very pleased with the monetary
participation we had just from people. So we will make it happen but we ask and >> so let's start with this with um whether or not the city is um okay with being
listed as a sponsor. So I guess that would be commissioners if if that's what you feel. If one of you feel strongly about it to make a motion by all means please do. I'll entertain a motion. I move that we approve the word and leave it uh saying that sponsored by
historical sign. >> Yeah, she's on she's on the actual board on the board. So, do I have a second for this? >> I'll second it. >> So, you have a motion. So, we have a proper motion and a second. >> Um, >> do we have any further discussion on
this? >> Well, >> and and it would be basically from from that one, it's already printed. As we go forward, I think it's the agreement that and and Derek, I think you've already basically stated and the commission whether or not the commission is in favor of allowing our staff to continue
to help with the installation. [cough] So, um I don't know if this is Commissioner Lor's intent, but my intent is that um it would be a positive thing since this is part of the historic district for the city to be included as
a sponsor if only in spirit um on behalf of the historic district regardless of whether city staff assist to me that's a whole another question and certainly regardless as to whether there's any contribution because my feeling is Um
this is a special meeting. Um as Commissioner Burton pointed out, our budget is set and I am I personally am not comfortable considering um any motion about contributing funds and I would need to ask um the city attorney
if Commissioner Roy and I could even vote on. Um but so to me uh I'm just putting this forward as a sponsorship um in just the spirit of support of our historic district and efforts. [clears throat]
>> And I add to that that I think that you know this is a partnership if there's not money for I know I know I see all of you who budgeted this year from the city and that's my fault. I didn't even bring it up, but we I knew how tight it was.
And so, um, that's on me, but [clears throat] I didn't think it was the right time. And I just would like to make sure that the city is partnership and continues to partner with FHS. And if that just means, you know, supplying some materials or some people, then
that's still a partnership environment. So, I'm I'm fine with that. Um, I just like the fact that we're working together, which I think is very important. Okay. So now, >> so what they're asking is regardless because they've got to get the wording, they have to get the wording to this
company because they did so far advance. So basically what they're saying are we okay with them including the city of Crescent City as one of the sponsors, be it in spirit or be it an installation or if later at a later date we find the
funds, whatever. at this time. Um, that's where we are right now is just making sure that that the city is okay so they can go forward with their proper wording. Does that make sense? Is that correct? >> Yes. >> Okay. So, that's where we are right now.
>> So, do we have any other discussion on this? >> Okay. With that clerk, >> Commissioner Burton, >> I commissioner Moore. >> Hi, >> Commissioner Glory. >> Hi, >> Commissioner Drito. Hi, >> Mayor Myers. time. So, thank you. Um and
I think as as we go forward um as you get we can discuss further um if we want to put it on the agenda. you know, something else that we can consider and I think we should um talk to our our attorney about this and and also um our
finance director that you know we have the opportunity and oftent times when people um pay a bill if they can um if we have a cause that somebody would like to round out their dollars or something to if we have that
capability and that way the entire community has an opportunity um not just those people that are in this in this room or those people that are are part of the historical society um but the entire community. So I think as we go
forward that's something that maybe we can talk about entertain and um so anyway with that um Commissioner Newold thank you for your presentation um and I guess we're going to take this
under advisement or consideration at a later date that if in fact we do find those funds is that correct commissioner that we will bring it forward again >> keep us in mind >> I'm sorry I'm sorry to keep us in We thank you for your your cooperation and
and look forward to working with you more in the future. It' be a great program. Thank you. I was just going to ask I saw where the quotation was for 90 days, meaning the quote's good for 90 days, but when is the pencil's down? When is the money actually due in this case?
>> Yeah, that's a good question. Um, it's in the queue to be manufactured. Um, I believe we pay on on on shipping when they when they actually send it to us. >> Okay. >> Because >> that would be in the spring. >> Yeah. In the spring time.
>> Yeah. We're the only to hopefully unveil it in May during National Preservation Month like we did last year. Right. And we were trying to make sure that we didn't get behind the rush like we did last year. So we started and still it
seems like the time ran out but it's it's in production now. >> Um and then the other thing we have is with the installation. Um Mr. Martin has said I believe he said that he would staff help with that. Does the
commission want a formal vote on that? Um do you want to do that at this time or do you want to do that at a later date? >> I I think the day is getting long. I I I'm just I'm putting this out here. We have to make a decision. So, it's here
before us. So, let's act on it. >> So, either either we put it off until another time as we get closer to that and we can put it on the agenda. Is everyone okay with that? >> Now, what is this about? >> And that's for the installation. >> That's for the installation.
>> Yeah, I guess so. >> Okay. >> Okay. Everybody's good with that. >> Thank you. We appreciate that. Okay. And with that, we're going to move on. >> So, everyone is ready. >> You're right, Commissioner Devito. The B
is carrying. >> Um, so now we're going to open it up. We have a presentation by Florida Gas Utility. Um, who wants to [snorts] >> if I can quickly Hello, Mr. Holmes.
>> Welcome. [clears throat] >> Hello and welcome. Welcome. Thank you for having me. Hopefully you all remember me. I'm Katie Hall, Florida Gas Utility, general manager and CEO. And I also have with me today Tom Jeffrey our finance manager and our other finance
manager Steve Pto. That sounds confusing because Tom is officially retiring and so we have killed his replacement. So we have two finance managers today. Um so I know we've been talking about this. This is kind of the ongoing conversation we've been having about the future of
your gas system. So as promised you are going to be seeing a lot of us in the coming months and we're going to just keep kind of chubbing along in this process. So today's kind of an update. um you're not gonna hear as much from me, so you'll get a little break. Um but I just want to kind of make sure that we just keep hearing a consistent message.
So with the presentation that's in front of you, if you need a copy, you need one more copy over there. >> I'm good. That's all right. No, you're fine. Right here. >> So on slide number two, so basically just as a recap, the city had reached out to FGU to ask us to develop plans with gas department due to Dave Frank's
retirement and some others also retiring in the department. We presented um a couple times talking about options to either sell the system or keep the system with a variety of considerations that were for discussion. And at the June 11th, 2025 council meeting, it was
determined that we should keep the system and we created a sustainability plan of what steps we would pursue to kind of turn the gas system around and prepare it for Mr. Frank's departure. On slide three, this was the recommendation at that June council
meeting that that was approved um that we were going to continue to work towards hiring new staff. That was obviously the main focus we needed to have. Um and part of that discussion was then looking at those salary levels. And so what we did at that time was we said our we had a phase one and a phase two
approach to our sustainability plan. Phase one was focused on performing a rate study. And in that rate study, we wanted to include those higher salary ranges based on some of your neighboring competition as well as already put thirdparty costs in there or some of the
sales and marketing, some of the other things we want to do for the system. Let's put all that into the rate study and then let's see how that comes out and then we can have a discussion of steps going forward. So today, that's what um Tom Jeffrey is going to present to you as the results of that rate study um and where you guys fall. Then after
he presents this, we also we're talking about our rate stabilization fund. He'll go into more detail on that and what his proposal is. And then you'll hear from me at the end and we'll talk about then your next steps which would include that hedging program and then our phase two which is the sales and marketing and colors program. So with that I'm going
to turn it over to Mr. >> Good afternoon. [clears throat] Good afternoon. >> I'm Tom Jeffrey, uh, finance manager, CFO for Florida Gas Utility. Here perhaps for my final appearance before
many of you have seen me multiple times. >> Good to see you again. So, I'm going to talk about our rate study and that starts on page four of the of the handout. We've we've performed several of these in the past at your request and you've increased the rates each time that we've asked you to do so and you've
requested another study for this year and as Katie said um [clears throat] part of the reason for that is we wanted to uh get the sustainability plan elements into the rate study make sure that if we need to increase rates again
we do so to cover all those expenses. So all of that is in in the rate stud. And um just as a historical reference here, uh back in October of this year, uh you increase natural gas rates to your customers. Residential and commercial
both uh $2 a month. The customer charge went up. The fixed charge from residential $16 to $18 a month. Commercial uh went from 20 to $22. Uh however uh even after those increases um when we look at the numbers the city is
still short on its revenues by about 10% or about $50,000 per year. So um so going into this we work with David Frank a lot and Derek as well the city manager and there are three goals that we uh were asked to achieve. One is to
eliminate that 10% revenue shortfall. Two is right now all commercial customers from the very smallest to to your largest all have the same rates. That's not typical in natural gas utilities. You have different categories for commercial accounts depending upon
their annual usage. So we wanted to create a small and large commercial rate classifications [clears throat] and we wanted to ensure that um somewhere along the line we got off track a little bit on customers outside the city limits. the variable charge was
set at 10% higher than the customers within city limits. That's because you have a utility tax that you charge 10% to your inside the city customers. You can't charge it to your outside city. You don't have that taxing authority. You only have the authority inside your
city. And so you had set the rates at one time about 10% higher for outside. This will get you back to that if we if you uh approve what we we proposed. So we went through the the normal machinations and came up with a uh and
created a a small and a large classification. The break point is 1,200 [clears throat] units a year. So they use 1,200 unit you um then there 1200 or less are in a small classification over 1200 they're
in the large classification. That was the natural break point when I looked at the data. Okay. So, um, the city manager has asked that we look at another increase in rates in the March, April time frame, 2026. And based on our work, we're proposing the following increases.
As you can see, um, inside the city, um, residential is a $3 a month increase regardless of your usage. Proposing just to increase the customer. [clears throat] Outside the city, residential goes up a little bit more because they weren't quite on a variable
charge 10%. So that adds a little bit more to their increase. Similar for the small commercial uh and also for the large commercial. You see the larger commercial outside $1341 a month increase for the typical usage for them. And uh if you approve these increases,
they are expected to generate an additional approximate [clears throat] $50,000 in annual revenues for the system. If you look at the next several pages, and we won't go through these in detail, but I will go through the first one with you. and then it applies equally to everyone. So this is a a a
[clears throat] cost of service schedule that we prepare that compares the present rates to the proposed rates. The rate classification you see in the middle of the top middle part the rate schedule is residential inside. So this is what you would charge residential
customers inside. On the left hand side of the top is the present rates and the right hand side of the top is the proposed rates. You see the only proposed change is the $3 for the customer charge. Uh we do increments of usage to look at a bill uh on each of
these incremental usages of five. It says themsel is 500 cubic feet. Um the typical usage is 15 units per month. Okay. So if you look at below you have therm usage is from zero up to 50. You
have the next column is present monthly fuel without monthly bill without the fuel. The next column over to the right is the monthly present bill with fuel. And then we have the proposed without fuel, proposed with fuel. So you can kind of see fuel is going to be the same regardless of what your rates are
because you're trying to recover your actual cost of gas. So uh so with a typical uh usage of 15 units, uh without fuel that's just under a 10% increase. with fuel is just over an 8%. But over on the right hand side, regardless of
what they use, because we've only increased the customer charge, the bill is going to go up $3 a month. Okay? And this is that way for every rate classification that we talked about on the previous slide. So you have that um sheet for each of those classifications
and you can take a look at what you will notice is uh for most of for all of these the ones with the low usage get a higher percentage increase. Okay, that's just the math. That's just the way it works. Okay. And that quite frankly is
where you're probably running short on your revenues is the people who don't use very much because you have all the costs necessary to provide service to them. Uh and to a another customer who uses a lot of gas, that's the same thing. But the person who doesn't use
much uses little, you're not getting as much revenue from. So, we can flip ahead here unless you have questions on any individual uh category. If you do, I'll be happy to answer them here. >> Sure. Does anybody have questions? Do
you commission? >> I have two questions. Okay. One, and I apologize. You probably told us this before. What is inside and outside? >> Inside the city limits.
>> I should have figured that out. Um, thank you. And [clears throat] the other thing is um in in the event that we develop more residents and more businesses in the city um would that
help us keep from having to do further increases or even potentially if we have more customers on the system allow us to actually reduce some of these increases? Well, growth is is is key to to any utility, quite frankly,
and in particular natural gas. If you're not growing, your system's dying because your costs are going to continue to go up. You're going to pay people more, inflation, those type of things, health insurance, all that's going up. So, sales and marketing is key and that's part of the overall plan. >> Okay. >> Uh as well.
>> Okay. Thank you. >> Any other questions on the >> the rates? I have one [clears throat] that's just >> No, you can't ask questions. [laughter] >> I know that you you put some charts here and had some great comparisons with other select utilities.
>> I'm getting that. >> Okay, very good. I just want them to get a cool round of >> Absolutely. >> Yes. [clears throat] something to add. >> If you don't have any current questions on each resident, each um rate
classification and um we'll move on. If you review this later and have questions, please let us know. We'll be happy to get your answers. >> So then that takes us to slide seven on the PowerPoint presentation.
>> I'm sorry. Is that seven? >> Yes. Great comparison. Great. So in here right after this slide is a comparison of the residential and small commercial rates to other utilities around you and those that uh if you had chosen to sell
you probably would be selling to one of these investor own utilities. So you'll be able to see what the um what their rates are. So the page right after this is a a rate schedule residential service. This is your inside the city rates. Okay. And so you [clears throat]
have on the on the left hand column is the type of charges that you see. You see the customer charge. You see a distribution charge. That's a variable. Depends on how much you're you're you use, how much volume you use. The commodity charge, that's the recovery of the cost of gas. And then the investor
own utilities have various other s charges that they uh they collect for as well. Um, moving to the right, the first four uh columns of entities are all investorowned utilities. And in other words, they're not owned by a city. They're owned by shareholders. They
issue stock. They're regulated by the Florida Public Service Commission. So, if they want to change their rates, they need to make a filing with the Florida Public Service Commission. [clears throat] It's open to the public. Everyone gets to participate. It goes through a rigorous process with PSC
staff. And ultimately the utility is granted some type of rate increase typically. Uh after that you see going over to the right you see several municipal owned uh systems that are our members as well. So you have Lake City
of Clear Water, Defuniac Springs, Palaca Stark Williston, etc. Some of those are small uh some of those are very large like Clear Water's got 25,000 customers. Okay, you have about 1,300 or so. So what you can see though is at the bottom
the typical just comparing [clears throat] the typical monthly usage for everyone and looking at the bill amount if you if you approve the new proposed rates that bill for your customer be $4028. Okay. If you look at the investor owns
um Central Florida Gas, Florida public utilities, Florida City Gas is well above that. People's gas system they just recently reduced their commodity charge. they were up around 80 or 90 cents and they just reduced it to 50. So skewing their numbers a little bit and
they're coming out of a rate increase and I don't have the new rates that haven't been approved yet so I don't know what they are but their rates are going up according to their literature by at least 5%. So and they're about they're pretty much even with you. And then if you look at
the municipalities, some are lower, some are higher. Like Lake City hasn't changed their rates in probably eight or nine years. Uh Clear Water, they have [clears throat] a lot of customers, so their rates are going to tend to be a little bit lower. But then you see uh
Defunia and Placa and Stark all a little bit lower than you and Willis. They just went through a process similar to yours where they didn't have any staffing in the gas department, etc. And they did this with all their utilities. They upgraded everything and their rates are
now very high because of that including in natural gas. And then the second page, it does that with your small commercial. And the results are very similar. The investor own utilities tend to have higher rates than municipalities. And your rates compared
to your fellow municipal members are pretty similar if you approve these proposed rates. Any questions on any of that? >> So, bottom line is if you approve these proposed rates and you implement them
that you'll still have rates that are very consistent with and with your other municipal systems and look generally lower than the investor owns. >> Mayor, I do have a question. >> So, um is that correct? Am I remembering
this correctly? That small commercial would include for example a church. >> Correct. >> Okay. And um because I believe the Methodist church has a huge kitchen with a wonderful gas stove, so that
would affect them. Um [clears throat] do you have any idea just looking at this um what the percent or dollar increase would be to that small commercial? >> Sure. If you go back to the other section, >> okay,
>> to the small commercial which will be the third one in, you'll see that rate comparison. >> Okay. Thank you. Within the city to make it inside, right? Okay. That was Thank you. Thank you, ma'am. >> You're welcome. Y
>> um [clears throat] what and I've asked I've asked Dave about this before. Why is it that we keep increasing the customer charge and not look at the the per firm or the the the distribution of commodity charge? Um because I I just hear I've heard this
from several people that you know they have a house that's empty. They're not using you know maybe it's a rental or something and they're paying $120 a month for utilities that nobody's using. And I understand from our, you know, it's I understand from our perspective that, you know, they're trying to cover
costs, but I mean, have we looked at and when was the last time that we did anything about the our current farm or our distribution of commodity charge? The commodity is like the cost of fuel, right? >> Correct. >> So that >> that's really just a recovery of cost.
>> Okay. So the distribution charge, >> that's where some of your profits come from. because real estate has a dollar one, >> you know, which is casually c it's higher than us. >> Um, is is that not something to me it
seems like people are using more should be paying more um and not everybody have to pay more. I don't know. I'm just wondering what the what the rational behind that. >> So, a couple couple things there. one,
uh, I look at the efficiency of the rates, okay? How efficient are they at actually generating the revenue you need? The most efficient is the customer charge because as long as that meter's turned on, you're going to get that charge. Okay? So, if you want to make
sure you're getting the $50,000 in this instance, the easiest way to do it and most efficient way to do it is through the customer charge. [clears throat] If you if you increase the distribution of the variable charge, you have several things working against you, right? You
if the house has been renovated or is new, it's a lot tighter. You don't use as much because the outside cold doesn't come in or or the heat. The household sizes are lower. People aren't having as many children, so you have less people inside the home, so less usage. And the
appliances are much more efficient than they were 10 or 15 years ago. So if you increase the distribution charge, your odds of getting the $50,000 in revenues that you need go down because people may not be cold this winter. Okay? So a lot
of things are working against you on a usage basis if appliances are much more efficient, the house is tighter thermally, etc. As far as who [clears throat] should pay, if somebody wants the service, they should pay for
the service. Whether they're using it or not, your costs don't change. You are making it available for them to use just like you are if they use a million cubic feet or zero. It's the cost to you is the same and the cost to the c the
customer should bear that cost. If they don't want the service, natural gas is an optional service. They don't need to have natural gas. can switch to propane, they can go all electric, they can [clears throat] do whatever they want. So, um
I would say that in my estimation, those that don't use very much are the very customers that you want to charge more because they're not paying their fair share. They're being subsidized by those that are using more than they are. Okay,
>> that's an answer. >> It just doesn't seem right. >> Well, yeah. I'm looking at it as a sense of fairness. I understand we're business and I understand we have to make or at least cover our costs, but we also need to be fair to our residents because they aren't just customers, they're our neighbors and they are the residents
that live here and that we charge a lot of property taxes to and everything else. And I personally have a gas dryer. I have a tankless water heater. I have a range and oven and if you bump up my prices, I can't just throw those out and
get new ones. So, it seems like it might be efficient from a business standpoint, but it's also kind of destroying our residence um to say we're just going to bump it up and who cares if you use it or not. So, I mean, I want to look at it from both ways. It seems like, you know, there's um
I don't [clears throat] know. It just seems like that's kind of the I understand you're saying it's the most efficient way. Well, that is the fairest way. I I have the help and not my understanding. >> Well, that's just my feeling. >> Sure. [clears throat] And that's up to you to decide how you want to do it. If
you want to change the distribution charge, we can rerun the numbers. That's no problem. I will point this out though. You may not think it's fair to the zero or low consumption, but is it fair to the high consumption and say you got to pay 20 or $30 more than you should because someone's not using
anything. Somebody's going to lose in that. >> Just depends on who you want it to be. >> The other thing >> you're going to get you're going to get the revenues, >> right? >> The other thing is it does actually on the flip side then during cold weather like you get a lot of people then that
have rate shop, right? Because then if your variable charge is high and you have a cold month where when it's fixed that variable charge then is not going to they're not going to pay a much higher amount for that one month, right? it's going to kind of smooth that cost over the whole year versus hitting them on the maybe two months a year you get
that really really cold weather and they're very low charge and is very high. So, it's more of a budgeting perspective. >> If I may, I'm sorry to interrupt. If if you have a comment, please come to the microphone just for our system that we utilize to capture uh the minutes. It won't it won't pick you up over there.
We really need to capture all that. >> I was going to let Katie finish, but that's for everybody. And that's another thing and I apologize. because I meant to say that at the beginning of the meeting is that it also can't and we speak over each other. So, you know, commissioners um we're usually very good
about not trying not to do that. So, >> I [laughter] just have a question. >> Yes, ma'am. >> So, really what what you're talking about is I mean they they incorporate these kinds of things with electricity as well. you know, uh they they have these rate stabilizations where it's
higher in the summer or however they do it so that so that your monthly bill is the same throughout the whole year. Okay? Even depending upon whatever you're using, right? So you might use usually if you you're using more for us,
I think with I might be wrong, I'm from Vermont, you know, and and up north that's when we spent the money to stay warm. But but down here it's really sometimes just to stay cold. >> Yeah. >> So the summertime is when when our bills go way up and then the winter time it
kind of comes down. But but what this does is I mean I had a bill over $250 I think this summer which was very high. It was the first one I've seen like that. And and >> electrical >> electrical. Okay. But but and now it's
like down to almost nothing. I can't I can it's like I can't wait for winter so I have some extra money but but but I can understand what that's kind of what you're trying to do here. Correct. >> That that certainly the uh the fixed charge does you know [clears throat]
it's the same every month. Right. >> Right. >> So some utilities like Florida Power and Light and other utilities like them they offer what's called budget billing. So your your amount is the same but what they don't always talk about is at the end of the year you have a true
>> Okay. because they're not going to give it to you at that monthly price if you use more than right. >> Okay. So, you have to true it up at the end of the year. >> FPL doesn't rolling true up. So, you're constantly they don't just wait till the end of the year and hit you with it. I have budget
building and I've had it for four years every month. It's like either 121 or 123. It kind of goes up and down but stays very steady or steady. If you look at my, you know, the camel back or whatever you want to say, my building for the winter is really low. I think I
actually used $60 electricity this last month, but during the summer I use $180 electricity. So, it balances it all out. So, um, which is very, very heavy. >> I think, you know, I think I kind of agree with what BJ is saying. It just
sounds very confusing. Confusing what you're saying is that people that use less pay a higher rate. Well, they pay the same rates. >> They're paying the same rates, >> right? But they just don't have any usage. So, their bill looks high for
actually not using very much because they're paying a $20 customer charge. And if they don't use anything, well, I >> you have a set charge then that you always pay, >> right? That's called the customer charge on all these sheets here. >> That's what I guess wasn't, you know,
making sense to me. And that's there and that's paid because you have invested the [clears throat] facilities to provide them a meter, a regulator, a service line, a distribution main, a gate station for them to be ready to use it.
>> They don't choose to use it or not. That's not on you. That's on them. >> Now, what if I'm a a snowbird and I say, "Well, okay, come, you know, March or April or anything, I'm headed north again. Do I shut that off? I'm not sure." That's what typically happens is
customers will call and have their meter turned off and then turn back on. >> Okay. >> When they get back into town. >> Okay. I think I kind of get what you're saying. I didn't realize that that rate was always present. >> Yes. Every customer charges every month.
Every time you send them a bill, it will have that customer charge on. >> Thank you. So I have on demand. That is the only gas. I have on demand water heater. That's the only gas that I have at my house. And you're saying you have
the washer, you have everything. That's why your electric was so was so much lower. >> But my customer charge is going to be the same as his customer charge. >> Okay. >> Okay. >> I just want to make sure that everybody
for clarification that doesn't it doesn't matter. We're all paying that. We're all paying that same amount regardless of one or not. As long as you have that meter on the property and it's an active meter. Correct. >> That's correct. Yes. >> Okay.
>> Because you still have to do a leak survey of that service line. You have to inspect the meter and the regulator. You have to pay it from time to time. All that. So regardless of how much is being used. >> Okay. Any other questions on the rate
study >> on these um tables that have the rate comparisons? Do you think you could put in the current rate to to compare? I know anytime I usually see >> sure rate you have the current rate in there too just just in there is it's
kind of hard to look at this and figure out what is that difference >> for each their $3 the customer charge would be $3 less and the bill would be $3 less just >> sure be happy to do that
>> mayor [clears throat] that's what I was asking about before and I could not find the figure on the other pages just trying to look. Um, so at some point if you could show us the
difference that would be helpful. >> Sure. >> Yeah. And it would in like if you look at the small commercial inside presently it shows um [laughter] the present bill and that's just based on a message that you've broken that
down. >> Correct. >> Okay. >> And again within every is a $3 the proposed rate was $3 increase for the customer charge only. >> Everything else stay the same. No, the large commercial customers
that's a category. >> That's correct. >> So then they're going from the rate they're currently paying to a much higher rate. >> Correct. >> And how would we determine what would be what would be considered a small and what would be considered large?
>> If they use 1200 if they use 1,200 units a year or more, >> okay, >> they're large. If they use under that, they're small. Do we know how many we have? How many of those do we have? >> Um I don't have that. You have right at
100 commercial overall. >> And I think it was like 35 or large and 65 or small thereabouts. today if they have that information. >> Um I know that you were talking about
PLC and investor utilities. They obviously go through a much more intensive process to discuss rate changes. What are our you know responsibilities under for statute when it comes to rate changes as
far as noticing because obviously these are customers that are outside across the city. Um what I just want to make sure that we're doing this properly. Um are there any sort of rules laid out by the state? >> That's really a question for your city
attorney, but um it's done through ordinance. I believe typically >> I think what he's and Commissioner Mo maybe >> my my take on what you're asking is the PSC how are they regulating are they
regulating us as far is that what you're >> I know I know that's what I'm saying that's why I think you're >> how does that work with the PSC with us >> doing a rate increase >> and just the rules as far as making sure that we're legally we're legally
notifying everyone because if it's just an ordinance that to me doesn't seem like it might cover everybody. Do you know Tom? Sorry. >> I'm not familiar with any particular requirements for any sort of study or justification. Typically when the city of Blacka raises their their guess
raises their rates. It's they have a of course a board and their board that considers the need justification and uh and moves you know accordingly. I'm sure they put some notice on a bill or something like that, but I don't remember I don't remember any sort of
particular notice or advanced notice of a hearing or anything like that. >> I just want to make sure >> my understanding and again I'm not the attorney is that you have it on two two or two readings
properly noticed. >> We would ask our rate increases just like we did when we did our budget have to do it that way. So it's my I so I'm gathering it's um from the PSC the only thing they look at is basically our operations how we operate correct not
our rates >> that's right that you only fall under the public service commission jurisdiction for safety related items >> and that's our operating >> that's okay we have any other questions on this before we go to rate stabilization we
find out how many large I'm sorry. The large mean large commercial customers. >> Um, it looks like you got about give or take 75 small and 25 large. >> Okay.
>> Okay. >> Moving on. Next is uh the rate stabilization fund. And this goes back to this is a close to budget billing, not quite, but this is intended to look at just the fuel rate, recovery of your
fuel only. Okay. Um, [clears throat] so this is a fund that acts uh basically as a stabilizer of your fuel costs to your customers over the year because what typically results in an unhappy customer or a call to your customer service is
someone gets an unusually large bill that they weren't expecting and most of the time they're not expecting it because you bill in a rears. So it could be 40 or 50 days from the cold weather before they actually get a bill and they won't remember that. So they call in.
But this helps keep your fuel cost relatively consistent to your customer throughout the year. The natural gas industry is uh and the natural gas as a commodity is the most volatile commodity there is. It moves more than any other
commodity like corn, apples, hog, pork bellies, any of that. They are very stable. Natural gas fluctuates every day and it can fluctuate greatly every day and every month. And typically is because the market setting uh the market
setters for prices are up north. They're not here in Florida. We don't set the prices. We don't consume as much in in Florida as they do up north. And so when it gets really cold in the wintertime, prices go up. When it's warm in the summertime, prices come back down. And
so a rate stabilization fund gives you an opportunity, generally speaking, in the summer months to increase what you're collecting under fuel. You're basically going to overcolct this fund. And then in the winter months when the prices go up, you're going to
use that to help keep the price you build to your customer lower than it than it otherwise would be. Okay? And that's that's basically the concept here. Um and so [clears throat] uh the things that would need to be done
to establish a rate stabilization fund is to establish a target target range for that. Um and then just basically um I'm not sure if you even have to do anything but approve it on one of your agendas uh and a set and effective date
for it because you're not really changing anything. You're you're still doing basically what you're doing. You're just adding a tool [clears throat] to the tool box basically. Okay. >> And I did have a handout part of your package here. Lake City is doing this.
They are they have about 4,000 customers or so. So they're larger than you are. Their typical bill from us is probably four times what your bill is. They have a range between 300 and 500,000.
You don't need that much. you probably need 25 to 50,000. And if you keep that balance in that range, then then you're in good shape to keep your the fuel part of your bill as consistent as possible. And it's one of the services that we offer to our
members. If you want us to help you do that and to make sure that all the accounting is correct for that, we more than happy to do it. We do it for Lake City and one or two other of our members as well. Um this the example here I I'll just go over very quickly. Uh this is
basically 13 months worth here. Um you have what we build our amount this is Lake City. So what we build Lake City in the first column over from the left you see we're billing them two three $400,000 a month. Okay. Uh the actual
therms that they sold to their customer as you can see is half a million thems. Uh so the actual cost if you did just took those and divided it by each other would be like for October 24 the top line uh.583583
what we have uh suggested they bill is 55 cents. So they undercollected by about 3 cents. So that brought their rate stabilization fund uh down um from a uh for that [clears throat] month. Okay. they were undercollected by about
$17,000 that month. And then you see you go in the summer months and you see that reverse and they start building that fund back up and and try to go into the winter months as close to the top end of that range as they can and then they hope to come out of that at the bottom r
of that range. Okay. And so it's just it's just basically that it's just stabilizes that fuel charge to your customers so that they don't see an unusually high bill in the winter months and then and a low bill in the summer months.
>> Um and so we set the the amount or we looking at a range and looking to try and figure out what we want the range to stay at per firm. How how is how do you go about this? Typically, it's a range because it's hard. You know, prices
aren't, you know, it nice to say they're always higher in the winter and lower, but they're not. You look at >> you look at December, the actual price is only 50. >> Okay. And we actually charge for 60 cents. So, we actually were collecting. But that was an unusual because probably
because it was very warm up north. I don't know that. I'm sure. >> Yeah. There's all kinds, >> right? So having a range just gives you a little bit of a flexibility there. >> So from what I see here, big city's ranges from 65 cents to on the high side
the 37. >> Yeah. >> Prices [clears throat] came way down here. So we're able to lower it and still keep their reserves or their stabilization balance very high almost at the top of the range. >> But this is the sort of thing we can kind of set it and forget it and you guys can figure out how to do it.
>> Correct. It's not going to require us or it's not require figuring this out every month. It's something that will be kind of said in a spreadsheet like this. >> Correct. >> Which I I'm very much in favor of this because I'm one of those people that every month I my bill like I use less
gas than my truck pay more. I always confuses me. But it's uh it I think some sort of you know ability to forecast for our customers is is stability is important
always. >> Okay. >> Any other questions right now? >> All right. Well, thank you very much. I'm going to turn this back over to Katie for next steps. All right. So, next up, so you actually just kind of set it up perfect for me
when you said stability. Um, so for two different ways here, stability from a perspective of your gas department. So, with the rate study presentation that Tom gave earlier, that did include those higher salary wages. So, I don't know if we're taking any formal action today or
if we're just having discussion and maybe taking action at the next council meeting, but as soon as you guys tell us that those salary ranges are approved officially, we will help um develop them if they're, you know, if Darren County has them ready to go, we can help post
them in various industry related um publications, eblasts, online, you know, help get them to the right audiences to help get those filled and try to get as much training overlap as possible. And if we're not successful with that, we still have a little bit of time to figure out if we need third party
intervention to at least get a stop gap. Um the other part of stability talking about your rates is the hedging program. So that's just one more tool to help reduce some of the volatility in the market. Just like Tom said, gas jumps around more than any other commodity. So putting the hedging program is setting
some parameters, some some guide rails, if you will, um to stay within to help kind of keep your your gas costs from getting running away from the market. So those would be next steps that we can present back. We know holidays are coming, so we figure maybe January, February, give us a little bit of time.
We don't want to try to cram all this in during the holidays. >> So yes, >> I was just going to comment that as far as job openings, kind of need to do that as soon as possible. Well, I think before we get into this, I'd like to know um if somebody can give us our
current where we currently sit with our our current state of our natural gas department. >> Yeah. >> How many jobs do we have that are going to be open? Um what where are we currently? I know we had I think we have one employee that is is it still out? Do
you want to >> Okay. [clears throat] I think before we go into job openings and salaries and and where are we where what's our what's the state of our department right now? >> Right now we've got four employees in the field. >> Four in the field. >> Four in the field. >> Okay.
>> John Turney says he will retire when I retire. I don't know if he's going to stick with that or not. What my actual date now is depends on when we get this grant program completed. and we may be looking at April, May next year because
they still haven't started building our material yet. So, we're waiting on that. Brandon, if his parents move, he's moving with him because he lives at home. He has a child and he's a single parent. [clears throat] So, the only one that's going to stay full time is Logan.
So, we're going to be very short staffed. And I haven't really sent anybody off for training yet because I don't know exactly what we're going to do. And if somebody's going to leave, I don't want to spend money on training them or you're going to retire. So that
really leaves Logan to send him off to school. I can send them to Dan at some training schools up there. Now >> when you say four in the field, that doesn't include you. >> No. >> So we've got JT and Brandon and then we have Logan. >> Logan >> and then >> Mike.
Okay. So we do have the we would have those two. >> What are your optimum staffing levels? What what do you need to operate the system efficiently? >> Really the PS we were down as three. The public service commission was going to put a violation on us. They said from
it's not that we have so many customers. We're spread out. We start easta come to here go all the way over to so you have a 30 minute drive time from here to our furthest north customer provided you don't get stuck in traffic. So, it's a
safety standpoint there. So, when we went back to four full-time employees, they backed off. They were happy with that. But when I started here, there was nine of us, you know. So, I But that also included their meter reader. I don't consider a meter reader. Cory is his own department. So, Cory
[clears throat] doesn't count. >> They don't have the automated meters. They don't sell. >> Yeah. I wish we could, but that'd be about about $850,000 to do that. So, >> just ask. Yeah. >> So your your your optimal staffing or
maybe optimal is not the right word, but the staffing that you need to maintain in the field >> in order to avoid PSC issues would be four. >> At least four. Yes. >> Plus a manager. >> Yes. Plus a manager. Yes. >> Any anybody else?
>> Uh that would probably do it provided we have a full-time meter reader because in the past when our meter readers left, I've had to go in the field and do that train. They didn't like the job they left. So that's the most boring job there is, you know. But but it's an
important job. We had one that was not doing his job correctly and it it hurts really bad. >> He over that was when they overcharged. >> Well, they were just taking guesstimate. >> They were guest numbers down.
>> So that's an issue. But >> and so we had to play catch up with that customer. JT, how what was he doing? Is he coming back? >> Oh, he came back. He came back about two weeks ago, but he was out for like 11 weeks, 12 weeks. He had open heart surgery. >> Yeah. Well, I I I didn't want to get
into everything. >> Sorry. >> I just wanted to make sure that he's okay. So, he is. >> Yes. >> So, what level of training does do all those four need to have? >> Two of them that I have and one worked here 10 years ago and he had some
training. Not a whole lot. people that work for the water department became our best. So he would need to be called to >> I mean what qualifications do they need to have? Forget about who they are right now. But if you had four people there, what would you be looking for in terms of all of the qualifications for all of
them? >> Oh, they would all need to know your standards of gas that they need to do gas installation. They all need to have a hand in gas repairs because we do a lot of that. But mainly is it's it's fieldwork as far as maintenance on your
your pipeline being able to do the service surveys like big surveys. Uh the PSC has many many surveys we have to do every year to be on safety compliance and that takes a while because we're so spread out. I mean it may take a lot six
weeks to do one survey provide you're not you know interrupted or but a lot of my employees two of them do not have that training yet. So when JT leaves and I leave basically the main training is gone.
So we have we have an employee that can dig holes and do all that but it's the certifications and that's where I was just caught on by the public service commission which just did our our yearly evaluation. We have some violations there but we've caught up. We made up for it already.
>> I think I think we should kind of move along. My my only last question, [clears throat] you know, I'm looking at these salaries that you said should be I guess these are the ones that we really should
pay. I mean these salaries, >> but that was what Tom said was. >> That's what I was getting to is what salary level do you have to have to attract folks that have the minimum qualifications that you require in the field. That was a whole lot.
>> I would say probably at least $20 an hour. >> I'll be surprised. [laughter] >> Somebody young, if they're, you know, seem like in their 30s or whatever, they probably want more, but I mean person a lot of your bigger systems, which I'm
sure Tom or Ky, I mean, your bigger systems as far as that initial new employee hands on skills, what are they starting at 20 [clears throat] there? Yeah. And that is based on so that has two things into account that's
other um entities in the state but that's also very close to what paca which is your very so we try to match that as okay what >> so there's a couple ranges because I think there's like the introductory and
then I think there's like three tiers right >> yes that's what it looks like but I think it's all almost it's all pretty pretty >> and we try and train all of our employees to multitask. You don't want it like you're the blue shirt, you're the red shirt or whatever. We want
everybody to be multi because being a small staff and a big system. >> You may not be doing this today. You might be doing something else. But for the public service commission, your OT plan and training, you can't just do a task because you know how to do it. If you don't have the certification, sorry,
I don't care how good you are, you're not qualified. So that that is an issue there with training and everything but it's all it's a safety standpoint. You can get sued over just because you didn't have the qualification you know also safety standard. >> Yes. >> Yes.
>> Mayor. Yes. Thank you. Um so and I guess this question from the hall and Dave. It's my understanding that this entire plan is based on current economic realities. As you said, the um
recommended staffing is based on data and what you think will get us the qualified people that we need who have to be um multi-capable. Um similar to the way uh in some ways
people aren't here at city hall because it's a small operation. Um but so it's my understanding that essentially we can't do the hiring. I think you say right here in these nice documents first we would have to agree
to change the rates and the stabilization plan to have the funds to support the hiring. Do I have that right? You don't necessarily have to do that, but we recommend that you do that >> because we are currently running at a
10% rather than deficit. So, [clears throat] um if we implemented the new hiring without the changes in the rates, then we would be at a further deficit currently. Um I I know from looking at
our budget in general, and I apologize I forgot to bring our budget. um that these salaries are an increase but I can't say exactly how much >> well you're taking this this is just the salary dollars these are not all the
everything else is involved with that you know our our benefits >> rate did you include you include the benefits in that okay >> okay so so they do but I mean essentially this is um y'all are very
thoughtful and this is the plan that you have if We want to be staffed with in-house employees and attract people. Um, this is what you're recommending we move forward to do. Correct. And and we
to be clear, we can post the jobs at your current salary ranges and see, >> right? >> Um, I just [clears throat] would just experience because we have a lot of cities going through hiring processes right now and they have rates higher than yours and are still struggling.
>> So, Well, and mayor, if I could continue the Okay, so as I understand it, I mean, we asked you to um come up with a proposal to solve our operating revenue deficit and this plan
would both in theory solve that operating deficit and allow us to advertise for employees at a rate that you think would attract qualified employees. Correct. >> Okay. And well, y'all are the experts.
Um, and I mean to the commission, it just seems to me if we if we are going to preserve the system, then we have to make it stable and properly operational. The other issue we have though getting a
qualified employee or just somebody with work ethic is one thing but then when oh I've got to work outside it's hot it's cold and you know that person doesn't want anything to do with that anymore. Work ethics totally changed but but then
they have to be responsible because you're dealing with hazardous material. You're dealing with the public. So, um, it it's another issue because we've had, I think, five employees for the last two years apply. Two of them right out the door. Forget it. But Brandon Brandon is
excellent. He's young, but because of his family situation, but he's very smart. He's courteous. He does his paperwork correct. Not that the others are are terrible, but Brandon really sticks out. And to me, he would make a great person to really train up because
he has that work ethic. Unfortunately though, he's gonna probably be one of the first ones. >> I'm trying to get him to break away from >> Well, it's not I think it's more that support the family support.
>> Okay. So, >> I mean, go ahead. You want to continue the chat? >> I just have one question. You said that there was four fields. Okay. >> On here, we have on this planet has four employees total.
about four in the field and then count me five here manager and then three on campus. >> No, we've got four in the field. >> Okay. >> Now, we hired Mike Demadoo here about four months ago, five months ago. >> I'm just wondering has that does that
change the calculation? >> Is that Are you looking at the sustainability plan? Are you looking in the sustainability plan? >> Okay. And that might have been I think the first draft we gave you we thought it was also four but it has been adjusted rate. >> You're correct.
>> And I have the budget pulled up in front of me and um we went in with around an average of $21.7 per hour per person for the four people. So right now we have a budget of around $161,800 for this year's budget.
get salaries for for staff for the gas. So, I just want you to know it wouldn't be an increase. We allotted for it. Next year would be we would all lot for a further increase 5% or whatever, but we're already accounting for this.
That's a start. So now you have you have plans to let's say we get let's say we get somebody but um I'd like you to continue with what your plan is to get us.
Perfect. Thank you. Okay. So we can start well we can figure out the job postings because that's a big thing. Even if we can just post for one of them if you have some of the money set I think that would be helpful to just start layering this in. The next would be hedging. we talked about that will um address some of the commodity
volatility. Then on the next slide, slide 11, this would be our phase two. So this would be after we have the job positions filled and after we have our rate civilization, our rate study, and our hedging programs in place, then we'll
focus really on growth. And that that's where you're going to start seeing the big turnaround. Right? At first, it's it's hard because you have to the famous saying, spend money to make money. That's kind of in the phase you're in. Right now, it's going to be a little more squeeze until we can start seeing the benefit of it. But once you have these employees in place and they really
buy into the system, they're going to start becoming your sales force. And then we can start looking at developing a whole sales and marketing program which would include rebate programs, dealer networks, advertising plans, the works. Um, we would also create what we call service line feasibility template.
So that's something when somebody calls and they want gas service, you have a nice little template. You put in a little bit of information. It'll calculate for you the feasibility and say if it makes sense for you to run the line or if they need to contribute to some of the aid in construction. We also could look at exploring what we
call a blanket agreement with the contractor. So if you have new staff that maybe are not ready to put in the service lines, we can negotiate with a contractor that's a set price per service line. For instance, it's it be a stop gap, right, until your team gets um
trained [clears throat] up and can do it. That way you can continue to grow your system, get money put back into the system, and it'll help it in the long run. >> And and that would be something that would kind of have a set price we have. So that way we know we have new service. We just call this person
new service. So that >> because Dave's not going to be here and all the other people would be a way to continue growing and continue running the system. Okay. >> Exactly. And you don't want to miss that opportunity because people don't want to wait for a service line because they want their hot water tomorrow. They want their kitchen tomorrow. They don't want
to wait six months. So to make sure that you keep that going is important. Additionally, [clears throat] we have public awareness program. So this is something that is required by the public service commission. This is on the safety regulations to notify people what to do if they smell if they think they smell gas. Um call before you dig, those
types of things. But we because that's required to send out to all of your customers. It's a great way to pair that up with sales and marketing and say, "Hey, did you know we can run the service line for you or do promo items? Hey, if you sign up during the month of January, we'll wave your your first
month's your deposit or something something. We'll come up with something, right? Just things to get action to get people to do this. So, we just like to pair those because what is required, you have to spend the money to notify people. Might as well use it for marketing. So, that there is a little bit of cost associated with those. Obviously, printing, if you have
postage, if you know, whatever the small everything that we do for you is at our cost. Everything's a pass through. We don't market any of that. But there is some cost um decisions to look at. So really that's um kind of the end of the the presentation for today. So our final thoughts are you have significant growth
potential here. I mean you you really have a great asset. We just need to stick to that sustainability plan and it's going to be a little bit painful right to get through these steps and spend some money but I do think it will pay off in the long run 10fold. I think it'll be a great way to generate revenue
for the city overall once we start growing because right now you're just trying to get caught up. Then you can start focusing on the growth side of it. Um it will take some time. So please be patient. But then one other thing to point out here is again we talk about our accumulated net revenues. This is part of your membership with FGU. We do
make money from time to time on various um different activities and we contribute then part of your service charge. We send that back to you at the end of the year. So last year we were able to do the tree clearing um along the highway and I think it ended it was about $100,000 we got done for about
$9,000 out of pocket. So that was how we used it in the past. But those that funds can be used to start a rate stabilization fund. It can be towards a rebate program. It can be to put towards training. You can put that money towards a variety of different things. So just just wanted to kind of keep that in mind that those are things we can we can look
at using that money towards and hopefully that goes up over time. >> Okay. Thank you. Yes. >> So, I know you don't want to overlay with the discussion, but um represented the black gas for a lot of years. My firm still does. Um
David, it you're the thought is you're going to retire in April, May. And I I'll confess I don't know all the responsibilities that Dave bears compared to for instance the manager. Um, but there's quite a bit involved in
managing a gas authority or at least there seems to be and lack. I don't know if you buy your own gas or if you have some kind of per you buy your own gas. So, you have to understand that whole concept. >> That's part of them. >> Well, okay. But you have to understand what you're doing.
uh or you should um are you budgeting for replacement of uh someone with managerial qualifications and experience at what level? >> Yeah, that's part of what >> that's where it came in at the 70 I
guess at that 70 plus range. But I mean but you also I mean >> we're budgeting for that. I don't I don't know that we are, but >> I understand where Don's coming from. And that was one of my questions is we can budget all we want. We can say that
we're going to advertise. Getting that person here is a whole another conversation. >> So, I I'm not suggesting that you not do whatever, but I'm just saying I've been through a couple of three manager searches in my life, maybe four. Um
there's a finite number of folks who walk in the door with the skills to manage a gas authority when you I mean we're not talking about water and I don't I'm not downing water or minimizing its importance but it doesn't blow up most
of the time I guess um >> I'm sorry >> something very wrong. So, I'm just saying that you may be surprised at the pool that you have to choose from and what they're able to demand by a salary. And I'll leave it at that.
>> So, if I could if I could weigh in here, just for just a moment. Um, been sitting here for five years. For five years, we have been struggling with our gas part. Um, that was one of the first conversations [clears throat]
that was I had with son when I first came in office is with our natural gas and it's an enterprise and we cannot seem to get it we cannot seem to get it out of the red. We just can't and so we increase the fees and we just did that
and we still are operating at 10% below at $50,000 loss. um from a business standpoint, you can only do that for so long >> and you're going to fold.
>> And I think that um we need to have a hard conversation here as to where are we really going? I know because I'm sitting here 5 years down the road um and we are really right where we are if not worse than
where we were when we when I first started here. Um, and I do know, I will share this with all of you, that that someone did reach out to me that um, a gas company did reach out to me and said they would um, entertain just out of the
blue said that they would like to if the commission would be willing to um, entertain discussions. Um, and so I'm letting y'all know that that there could be some interest. um we've talked about where would we even start to value and
so through all of this we have not valued where we currently are in negotiations we we think Dave's going to stay here Dave wanted to be out of here in December um bless his heart he's been
here for 45 years he just celebrated 45 years >> um and and JT and and none of us are have a guarantee for tomorrow. >> Okay. Um, we already know that we are like right there on the border of being
in violation should we lose one person in the field and having to fill that spot with really um someone that could be up to speed very quickly. So, commissioners, I mean, I just think that that we need to this all to me, you
know, I mean, it sounds good. you know, our we know our residents are not going to be happy with us because here we're going to go through a whole another increase um just in order to sustain where we need to sustain now. Um but I think we really need to have a hard
conversation on here as to >> where we where we go from here. And it's hard to let go of something. It's we know that's hard to let go of something but if somebody can provide that same service >> well one issue you've got which K is
still looking into this grant that we just received for a million half dollars. I still don't know the red tape as far as that if we decide to sell. I don't know how long we would have to keep the system before we may have to
pay it back or if there's penalties or what the red tape is there. And we've already applied for another grant for $8 million for 28 miles of renovation. So, I'm under the impression that should be being posted very shortly and doesn't
mean we're going to get it, but we don't need to go through all this if we're going to sell because We're just getting this deeper into the hot water there. But Katie's looking into the, you know, the clarification of how the rules are that if you get it and
you're going to determine a seller, does it affect the buyer or whatever? >> So, so one more question and [clears throat] then I'm I'm I'm done. Just have you had an objective analysis of where you are in terms of >> I don't know what I don't know all those things. >> 1963.
>> 1963. >> Yes. [clears throat] The million half dollar grant that we've got now would replace all of our gate stations which control each town and they're all from 1962 63. >> We still got a lot of pipe in the ground. >> Yes. >> Oh yeah. We have 130 mi of pipe
>> and it's from >> uh well I'd say the original steel is all from 1963 but I would say about 70% of our system is now plastic. And that could be from 1970 to today. >> I'm not an expert. I'm just saying I
guess have you talked about what your long-term or [clears throat] maybe even short-term capital improvement needs might be if you have to do pipe repair without a grant or if you have to do pipe replacement without a grant.
>> That would hurt, >> sir. >> It would hurt very bad. >> Um, so I'm just and again, I'm not arguing one way or the other because I do know that gas authorities can generate profit for a municipality. Um, no doubt about it, but but you know,
>> aren't we some by the way, but anyway, >> sir, ma'am, I'm sorry. >> I think we're in some debt, too. >> Um, you know, you were saying that 10 years ago, you were sitting there. I can tell you that 20 years ago I was sitting here in 2003 and we were having the same
problem. Um but we sat here we sit here every year but we don't do anything. This is the first actual and you guys Dave knows this. We talk about it as lip service every time a bunch of time and then it kind of goes away and that's not Dave's fault. That's our fault. Um, at
least this we're trying to take some actions to do something because we haven't been. We've done a little bit here, there kind of a piece, you know, this is the best opportunity we have to turn this into something that's worth something or at least turn it into something that's worth a little bit more and get rid of it. But I I don't think
that the option is to just not do anything. But I'm glad that we've had this. This is our third workshop I think we've had on this. We're actually in the process of doing something. Um, so I'm glad that FG is here as our partner and you're the right people to do this. I don't know why we haven't talked to you
more seriously in the past, but that on us as elected officials. I know Dave always is pushing for things, but I appreciate Dave being here all this time. You're lucky to have a dedicated and it's your fault doing all this, but no, you know, you're the stimulus or
you're the catalyst for us actually seriously taking a look at this. So, I appreciate that and I think that that, you know, we need to just move forward with the plan like Katie has presented it to us and if someone wants to buy us, that's great. But, I mean, sitting here saying to buy us, we're not going to do
anything. We just need to have a path forward and continue moving. >> I don't think anybody says you can just sit here, somebody's going to buy us, that's not what I heard that as part of our discussion. Um, and that's what I think this this conversation is now is
where do we go from here? Did we go that >> which path we take? Commissioner Devita, you had something. >> So, all right. So, I'm I'm just trying to clarify what I'm hearing. First of all, it's my understanding that Miss Hall is standing there telling us this
is the path she's recommending. Is that correct? >> That's correct. >> Okay. And so, um I'm not sure what difference it makes. Um, following up on what Commissioner Roy said, whether someone wants to purchase
the system or not, right now we have a system and we have customers and I think we need to continue to move forward to serve those customers. Um, and we have asked up to you to come up with this
plan and they've done it. Um, I don't think we can just drop everything in between. So to me um we vote to move forward with the plan. My next question before you gave us the information about
someone reaching out to you for the sale um was about um a message to our community. Um, I know I frequently see on social media, um, and I hear in the community people talk about, you know,
this is going up, that's going up, this road isn't being properly maintained or isn't being paved well. Um, Katie, do you have an FGU information that would help us? Can you do it for
us? um a a letter that we could do to our community explaining to them in short form um what we're doing and why that we are essentially doing this to improve our gas program. >> Yes, we have a we have a a bill stuffer
right now and if you can't do a bill stuffer, we can take the same information and just package it in a way you can distribute it. But it basically explains we did this for the city of Chipley because they were in a very similar situation. and they had to increase their rates in over 20 years and had they had a much higher percent they needed to increase and was doing it
over three years. We sent out a biller and explained why and said here's the responsibility of the city here's responsibility of the customer here's what that money is going towards and it's a safety thing making sure the system is operating maintained as safely and efficiently as possible and it was a good explanation and they got very
little push back from the community right and so mayor I have one if I could one more observation and then a question about the purchase offer that you referred to may I >> sure >> okay my observation to the commission question is um I think I'm looking at
phase two um where it talks about sales and marketing. Um my observation is the Crescent City gas department would be doing better if the city of Crescent
City were doing better because we have um if we don't build another new home on a vacant lot. We have many lots that used to have occupied homes who probably
could have gas service and we also have a commercial buildings. So to me, sales and marketing is important not only for our gas department, but it's something other cities have done and it's important for us to essentially infill
the city center and to infill the residential neighborhoods. And I don't really want to talk about that today, but I think that is very important. >> [clears throat] >> um we we've improved in some ways, but we we still have those unoccupied
residences or improved lots. The other thing is Katie, when someone makes an offer of sale, um I would assume that there is an analysis process >> and does FGU help with that? Yes, we
actually have done that um at a high level for the system. So um to elaborate, you brought up a really good point. So because of the age of your infrastructure, we would consider the sale of your system a distress sale at at its current state. If you were awarded these grants and we put in 8
to10 million and that would be a different story. Um but as it currently stands, it would be a distress sale. Um we did have this happen in Fort me several years ago. I can't remember what year, 2010ish. Um, I will tell you what happened is
they did sell this distress distress sale. It was an investor owned utility. I don't know who reached out to you, but that is who I know is going around trying to buy these. >> It wasn't. >> Okay. Um, and they they go in, they do they put the money in, they get the system up to code. They do a great job.
But I will tell you if you look um the slide that's right after slide seven where we have the rate compare where Tom pointed out what the four investor owned utilities um rates are they will implement those immediately. So my point to bring that up is that if you're
concerned about your customers you know you're you're like you said these are your neighbors these are your friends they're going to get these high rates. So you're not actually even going to protect them from the higher rates. you're just handing that higher revenue now to somebody else instead of bringing it into the city, right? >> It's simpler than that. We're handing
the problem to some somebody else. But but but I I just wanted to say um you know that the gas is part of our house in Crescent City and I know I own a house. You know, all all of us own a house and
um and we know we know this house is got got termites, let's say. Okay. Okay. >> So, so I guess what I want to say is um you can't just go into a distress sale. You have to kind of fix it before you can sell it.
[clears throat] >> It's the same thing with a home a home that you live. So, I I I would kind of look at it more like that that we need to start taking the steps and start moving forward and and quit I I EJ is correct.
>> Quit sitting on it. Commissioner, I'm sorry. I'm sorry. Commissioner Lori, it is correct. Quit sitting on it and doing nothing, which is what we've kind of done. We've just been kind of passing the ball around. >> Yes. So there I was, you bring up a really quick. The other thing just to
point out, there's been some significant road widening projects with the DOT that we had to move the gas line and that was those were very labor intensive because it wasn't just once we moved the gas line we had to then protect the new gas line as moving all the other utilities and the road and the ditches and
everything. So there was probably of those last five years at least three of those was very heavily involved with prepping for those and executing them which gives a little it's just a little harder to then find the time to execute a plan like this because this is something you once you start it you have
to just keep trudging through it. It's not something you can kind of start and then set aside and then start. You have to just grin and bear it and and push your way through it. And I appreciate your faith in FGU because that's exactly what I would have said is now you have us on board. That's what's changed. Um
we're very invested. We're very invested in turning the system around. Um I I know this plan will work. I I know it can work and it's just something you have I would hope that you have faith in us to let us prove that to you. Um we are doing the steps exactly how we set them up. And like I said, it's going to
be a little more painful in the short term, but then it should pay off in the end. That's that's what I fully believe. And the reason I believe is because your alternative is when we value the system at a very high level. We think right now the value of your system is only about a half a million dollars. If it was in
good shape, maybe 3 to 5 million. So it's a totally different um situation at that point. But even then, we think that if we can get it where it's in the black and it's generating revenue that that even with that sale, you know, that onetime revenue, we think then that your
ongoing revenue will even be higher than that. So we do think that there's a lot of potential here. And I would be I would be very honest with you if I did not think that you had if you had full buildout in every single one of your houses had gas, it's a totally different story. Um, and just like uh Commissioner
Dvita was saying about how many houses you have right now that have gas service that's been turned off and is not currently taking gas, that's one of the things we found in some of our older towns is you can offer a rebate. That's a we call it a reactivation service reactivation rebate. Say it's $200.
That's still if you pay them $200 to get their gas service turned back on, that's less than what it costs Dave and his team to remove that service line. So, you're actually saving money on cost to remove it and getting them back on board. So, there's there's little tricks like that that we would promote and you
can do things where you give them those limited time offers. Like I said, if you if you reactivate your gas service in the next three months, you get this extra rebate. Um, so again, you do have to spend a little bit of money, but those are things we can use our ANR to fund. You know, we we can get very creative with that. I have I have we
have plans. We have options. >> And mayor, I apologize. >> Someone asked whether the entity that made the offer was investor or not investor. >> They didn't ask. >> They didn't ask. I stated I stated it
was not investor. >> It was not. >> It was not. >> Um so [clears throat] I do want to say that we've also heard this argument. Let's go out and market. We're not marketing ourselves. >> I was very excited. I went out and marketed it at a dinner one night.
>> Three three services we could have gotten from that. And And I think they did take it, but it in order for them to take it, it cost them how much? >> $1,000 plus deposits. >> Huh. >> Each about ones on Highway 17. $37,000.
>> That's how much they paid. >> Not yet. But that's how much it's going to cost for us to run that service. They're going to have to pay right outside the city limits. So we say, "Let's market, let's market, let's market." >> But,
you know, I mean, not everybody has that in order in order to bring those gas services to them. >> Um, and so that's a concern. That's a concern also. um that um service line feasibility study or feasibility template that I mentioned. So that would
be something that we would create to offset that. So basically you set it up and you look at it especially if you get like a blanket contract where sometimes it might be less than whatever price we've set. It might actually not cost that much but they pay it or we just assume it's that cost anyway. And then
some of those that are more so they're going to offset each other, right? So sometimes it might cost you a little more, sometimes it's a little less but overall the whole thing pays off. But we would come up with a way to fund that. Like so there's things you can calculate what your expected revenue is going to be from that. And so as long as we think
that you'll recover the cost and we can look at how many appliances they have, you know, what that expected usage is going to be and calculate that payback. So we can get a lot more involved in looking at those. Um I know a lot of that is based right now is just calling up the contractor and saying what does it cost for you on the line without a lot of those other considerations taken
in just because that's that's how we do it right now. But we can we can improve that. We can we can >> clean that up. It's just we haven't put any focus on that yet. >> Okay. Um Steve, I'm gonna put you on the spot here. I don't have it in front of me, but
>> um in our last budget year um the general fund, was our gas department able to meet the general fund um funding? >> I do not believe so. >> You don't know how much? No, not
>> cost. Yeah. Okay. >> Okay. You don't have that. I'm just wondering if that was included in that 50,000 that went in in the um ear. >> It wasn't that wasn't. Okay. >> So, we've got to make that up, too. I
mean, so that's a consideration we have to have also is that we've got to be able to because our general fund should not be able to should not have to subsidize um our gas department as an enterprise fund. >> So, we need to make sure that that's
part of the calculations because um I don't believe it is. >> And I know Dave, he is doing everything he can. He works harder than anybody. Um you do. I mean, you do. and we all and I know this is near and dear to him and um
you know and also with these grants like with the eight with the $8 million grant um we've been talking about this for some time do we have any idea what our odds are or where we are in the standing of that
>> I think they're actually generally pretty good and the reason for that is we've seen so this is part of that build back better um initiative and we saw it's the 5-year program. In the first year, they focused on cast iron and bare steel. From what we've gathered, all of that has been addressed at this point or
has been awarded. Then we saw them moving on. You know, we kind of see them every year what their what how severe the problem is. And right now, they're getting into this what they call Adelaide pipe and this um kind of plastic that crumbles. They know it crumbles and that's what you have in your system. So, they're kind of just
getting to that as saying, "Okay, we finally got to this point where we can address these issues." And so we think because of what you're bringing to the table, they're they're going to be seriously looking at that. I don't think that they can justify skipping you to something that's considered less of a problem, less of a an aging
infrastructure problem. So I do think you genuinely have a good good chance at it. [clears throat] >> Commissioners, do you have >> I just want to say thank you, Katie. Thank you. Um, thank you chairman. >> Thank you all.
>> [laughter] >> But it's it's been I mean this is the most of the most conversations we've had about this um in my memory and um I think this is the right thing to do. So I'm glad that you're helping us with it. Thank you.
>> My pleasure. I I I actually find a lot of joy in trying to help these systems. You guys are very near and dear to my heart. I love these small systems. Stephen, they'll tell you I preach it all the time. So um we like talking about plan. We like to see it turn around. I think I think you have something really special here. So hope
that we can write it out and turn around and look back on this later with good thoughts, good memories. So >> thank you for your um for all the work you put into this. I would ask that before we consider this, it comes back to us that we take into consideration
and Steve if you can provide them that um where we need where we actually with them saying the 50 and that's not including the the um general fund subsidy that we're subsidizing if you make sure. So that's going to that's going to change our rates as well.
>> Okay, we'll put that in there. And then would you like us to come back for any meeting if you're going to take action on any of this? [laughter] >> I just don't want us to off
while we're talking about it. This last year, Steve and I had accounted for in our budget um for Dave's position 78,977 which included $15,000 line item for possibly Dave coming in as a consultant,
but we did up that. The total amount that they had on this report was $19865. That was for employees. Um our totality in our budget was around 240,793. So that's let that
we had in our budget this year yesterday. >> Mayor, I have a question for the [clears throat] commission. So it's my understanding from what Katie has said that um if we're going and also Mr. Frank that if we're going to adequately
staff the existing department that we need to start advertising. Mhm. >> So, are we not going to authorize FGU to start advertising for the recommended number of employees at this point? I
mean, it seems to me if we don't take action and this is special meeting, so we can't >> entertain a motion. I mean I'll entertain a motion >> that we will be potentially pushing our systemally [cough]
into a violation and creating um a distress that we might not come back from. I don't understand why we wouldn't go ahead and advertise for needed employees and allow FGU to do that for us as they have offered. I I move that
we authorize FGU to advertise positions that we need that are readily available at the recommended levels according to the sustainability plan. >> Katie, do we have a second?
>> And we have a proper motion and second. Any discussion on this? So my question is if we advertise now and we don't have an opening until March or April um and you do have viable candidates, what do we what do we do? I
mean because we know we can't well we we can't we're we're operating. I mean, >> well, but I mean >> I mean, so that's just something that we need to that we need to to consider also that I would hate for us to advertise and get candidates and then us not have position available or the funding in
order to to meet that. So that >> um mayor question and that's an excellent question. Um would you then not work with Mr. front for the posted um availability date for the position.
I think there's several ways we can address that. Um I also personally just set the money aside for once, which I know is a big thing, but having overlap and having training is invaluable. Um so I think we could get very creative with
the financing part if that's an issue that I hate to try to solve the problem right now until we know we have that problem because that would be a great problem to have. But I think that that is something we could overcome. Um I think having knowing you know that an option just throwing ideas out there if you know Mr. Frank knows that he's got
comfort maybe then he feels more comfortable retiring sooner just as an example. Um or JT feels comfortable retiring sooner or something like that. If it's also something that we can work out well we would figure something out if that's the case but I I just don't I see way more upside potential to that
honestly. Okay. >> Um I would love the problem. I mean that's we just question >> it's a great question and we addressed that internally so that's why I can talk about it because that was our thing is we know Tom's retiring why do we want to wait to lose 40 years experience we're a little bit
in the same boat 40 years experience and we didn't know who the new finance manager was so we got approval from our board to look and have that place so we have the six months overlap um to get them comfortable so we I've gone through this and our board was very open and we came up with a great opportunity so
>> okay great thank Any other discussion on this? >> Thank you. [laughter] >> Thank you for having me and you'll see like I said a little bit more of me. Got a couple more presentations for you. So, [clears throat] thank you all very much. Thank you.
Thank you very much. Okay, we currently have a a motion in front of us and a a proper motion and a second. Commissioner Devito. >> Hi, >> Commissioner [clears throat] War. >> Hi, >> Commissioner Warren. >> Hi, >> Commissioner Burton. Hi, >> Mayor Myers. >> Hi.
>> And you will get with you and Doug. We'll get with Okay. Okay. Um, with that, if it's okay with everybody, I'm going to take like a five minute break if we can. So, I'm going to recess for five minutes. [clears throat]
[snorts] Cold. Cool. back to the meeting. [cough] [clears throat] >> Thank you. >> This meeting is back in session. Thank you all very much. And I think at this
point we are um with Mr. HS. So I understand that I've been asked to present the findings of the investigator which I believe that all of you have in writing. Is that correct?
>> The written report from the investigator. I, as you all know, I did not participate in this investigation. I provided no input. Um, which on purpose I think that was the way that it was uh was intended
to be and and was the way that that was appropriate for us to proceed that uh we all remain detached from the investigation. So, I really have no comments to make regarding the report if you haven't. Um
I my suggestion is that uh you take it and read it and consider it outside of the meeting and then u my thoughts are that rather than trying to discuss it now which I'm not sure how that
discussion would would go um maybe instead you take it and you look and you decide whether or not any of you wish to bring something before the commission by way of uh what anything any address the report in any way whether it be by way
of addressing some of the recommendations that the uh that Miss Kelly made whether it be by way of addressing policy whatever it might be that you bring that up as an agenda item so that everyone is aware of it in
advance and has an opportunity to basically prepare whatever to whatever extent they they feel comfortable and then move forward from there. So beyond that, I can't really I can't really answer any questions as to
the much behind the report because as I said, I didn't participate in the investigation. So my presentation is basically just what I'm saying and here it is. But rather than trying to dissect it or question it right now, I think probably we'd be better off if you would
just take it, review it, consider it, and decide then whether or not you wish either with or without the input of staff to uh address it further by way of an agenda item um or workshop, whatever whatever you should choose um to see, you know, if they can produce something
that's positive for for the city. And so that's that's that's the extent of my comments. >> Would you want the commissioners to um individually reach out and share their thoughts with either you or Mr. Martin or how do you want to proceed with that if that's what they want to do? If they
want to bring this up as an agenda item, >> of course, I'm happy to talk to any commissioner with the understanding that >> I can't relay to any other commissioner my conversation with first commissioner because obviously sunshine sunshine violation. I'm happy to speak to any commissioner about their thoughts [cough] or [clears throat]
what they're thinking about doing if if if they think it'd be helpful to discuss that with me. Um but uh you know otherwise uh you may have already have one or more of you may have already formed an opinion about how you'd like
to move forward or if you'd like to move forward or whether there's something you'd like to have further addressed. Um and and you know then I think that obviously if there you're free y'all are all free to ask for an item to be placed on the agenda correct and you want to be
individually. So I mean uh if there's if there's going to be multiple items that's that are that are on the agenda stemming from the report. You know we may look at it and find that there might be some some commonality that would allow us to have
you know one agenda item discussion or something. But otherwise, I'm not really suggesting any particular organization for how you move forward. It's just a matter of if you have questions you think I can answer about not the not the background on the investigation because as I as I told you, I don't know. Um, I
relayed the request for the investigation to the to the Miss Kelly. Um, I received the report back. I think I did also provide her the list of witnesses that I was given as I recall. people. She asked for people to who she
might interview and I think I provided those based upon audience but I was given not not anything that I generated myself and other than that I I had no I can't answer questions as to who she interviewed I can't answer questions as to specific statements that anybody made
because I just frankly don't know. >> So I guess what I'm what I'm getting at is if they want to put it on if they feel like there needs to be discussion how [clears throat] do you want us to go you want us to If if you want to talk to me about it, then I'm happy to. Otherwise, I think
that you just ask the city manager to put your particular item on the agenda for discussion either at a workshop or next or an action item. Madam B. >> Okay. >> Um we were actually going to bring forward uh some of the suggestions, some of the things that that u staff had
talked about in regard to um in regard to the findings and some policy changes or additions. and we were going to run those by um our council first and bring those to you commissioners.
You have any comments? Any questions? Okay. With that, um I guess we're at the end of this meeting. Um I'm going to open up for public comment. If we have any public comment, please um anybody, it's
at the end of the agenda. Um, we've had a lot today. So, if anybody has anything, please come forward. State your name and your address if you want. >> I just have [clears throat] one question.
>> Um, he suggested a few ways to handle this. Did we decide on how we were going to do that or >> No, he said basically that we would probably want to bring this up as an agenda item. >> Yeah, it's your choice, but I I suggested be brought up as an agenda
item and that way out of fairness to everybody concerned, everyone has an idea of what's coming, at least the subject matter. >> Yeah. >> And then people can choose >> whether they want to participate, how they want to participate, etc. Okay, that makes I'm sorry. It wasn't I didn't quite
>> It might have been my fault for not adequately explaining it. >> I'm trying to read I'm trying to do two things at once. >> I understand. Yeah. >> Thank you. >> Comment city clerk.
Tonight is very difficult for me. Commissioner Devito have the utmost respect for you. Utmost respect. There will be no disrespect this evening. An apology would have gone a long way. Commission,
please know each of you have a special place in my heart. I have helped each of you on your campaigns throughout my town. But let me explain something to each of you. Social media, not a good thing.
Not a good thing when you're a local girl, born and raised. Running through the halls of Miller Enterprises with my grandmother, handed away food store, standing on a milk crate because I couldn't see her coming.
I've been here at the face of the town when you see me most of the time you see me with smile. [clears throat] Very, very disappointed in my city. Commissioner Devito, no one knew anything about my background.
You only knew me as the girlfriend of Mr. King. Mr. King and this commission has been through hell for 5 years. So sad. The diversion in this town is awful.
I'm not ugly. It's time to resign. I appreciate every one of you. You will see me out and about with a smile again on my face with no stress. Did the best job that I thought in my heart. I came
in with a full plate buried in work. Got caught up. Had an administrative assistant leave us who took all those minutes. I had no idea. Yet again, through budget, through
meeting after meeting, your clerk has since brought every minute up to date. Derek, you and I, you and I have an amazing working relationship. >> [gasps]
>> I'm quite positive our country and for everyone I'm so sorry but please know transparency integrity our reputation means the world to me not on the front page of the acade
news. Thank you. Um as all of you know tonight is um is um our last um last meeting with us um until we started today.
>> Yes, we we have we we've advertised nationally locally on our website as well. Um, and um, that's a tough job. Tough job.
It really is for anybody who steps in there. And you know, I I commend Molly. She stepped in and she did have a lot on our plate and very appreciative for the time that she has served that she has served us.
So with that, do we have any [clears throat] other comments? Anything else? returned. I would like to make one comment and and uh and really approval from you all uh because of the uh time frame to which we're we've had the advertisement out and we don't have
anybody in the position. I would like permission to possibly work um somehow uh possibly a 1099 deal in the interim with Melanie uh because our city clerk has the background, has been doing the
work. I'm not sure if she's even available, but she told me that she would be able to help out until we found somebody. I don't know what to capacity, but I would like permission to see um what what we can work out. I'll make I'll make a motion to go ahead
and u ask to work in a 1099 position um just so that we have coverage in the interim until we hire somebody short term. Yes. >> Second
proper motion in a second. >> Um I have a suggestion about that. Um the city manager said he did not know about availability. We don't know how long it will take us to build a
position. Um my thought was that maybe we should authorize him to work with available individuals. Um obviously he has first choice. Um but if that's not possible or the time runs out that we
have authorized him to get the work done using the 1099 relationship and that that we give them the option staffing and management issues are up to you. I don't know why we have to approve every little thing like that. It's your job. I think that's fine. I made a
motion to >> Okay. >> I have another motion too. So let's let's finish this up. He's asked for permission so that nobody can come back and criticize me that we're spending the money >> because somebody will because we're spending the money. So, um do we have a
second on that? We did. You seconded it. >> Okay. All in favor? >> Um please say I >> I >> I >> oppose. Nay. Have that authorization. We also have a um motion on the table for adjournment.
Do we have a second? >> Second. Okay, we have a motion and a second. Do we have any further questions, comments? Everybody, you have a wonderful Thanksgiving >> tomorrow. 12:30.
>> We have our lunch at 12:30 tomorrow. And then remember the parade um and the big event that we have on the 6 um starting off the 5th with Caroline and then we've got Presbyterian Church is holding their um function that
morning at the 6. Part: 2
to know where I settle down. this special meeting to order. It is 1:38. I apologize for the delay. The copier is not quite as fast as I think it should be, but that happens. The date
is November 25th, 2025. Um and with that, this is a special meeting that we have called today to go over the evaluation of our um city manager Derek Martin and his
probationary period. So, Commissioner Moore, if you would please us an invitation. >> Yes, ma'am. >> Stand if you would please hands. Dear heavenly father, we want to thank you for our rising on this morning. We
thank you for this brand new day that we've never seen before. We thank you for your grace and for your mercy and how you looked over us and kept us safe from all hurt, harm, and danger, seen and unseen. We ask that you be with us today as we go into our special meeting.
Help us to have understanding and compassion. Help us to be honest and fair. Help us to do those things that will be pleasing in thy sight. And Father God, we ask that you bless our families, all the loved ones that we have that have have all briefment. Have
mercy upon them. Give them peace. Peace that surpasses all understanding. We know that you are in control. We ask you to be with us. In Jesus name we pray. Amen. >> Pledge of allegiance. I pledge algiance to the flag of the United States of
America and the stands one nation under God indivisible with liberty and justice for all. >> Okay. Commissioner would mad clerk if you would do a roll call for us.
>> Commissioner Lisa >> present. >> Commissioner William my >> present. Commissioner Linda Moore >> here. >> Commissioner Cynthia Burton >> here. City Manager Derek Martin >> here. >> Finance Director Steve Conlin >> here.
>> Mayor Michelle Myers present. Thank you very much. So with you commissioners in in front of you, you've got the um tally of all of the um
questions that were asked of us in these evaluations. You'll go through it if you want to go through it and see. and then of course the final. Um, keep in mind that when you have an evaluation like this, it is always as an
opportunity for employees to see where they can grow and um I believe that we have absolutely done that with this evaluation. So with that um currently the overall
rating um Mr. Martin for your time here these last six months um has been a 3.6 65. So, um you have definitely um exceeded this satisfactory with that being a three.
Um and you have um as a courtesy commissioner, I've given you um a copy you have a copy or a clerk has presented with you a copy of all of the evaluations so that you can see the comments. There were some very good
comments in here. And so, commissioners, I'm going to open this up if you would like for you to if you want to share um if you want to share with Mr. Martin and I'm going to start down with
Commissioner there's anything you like to share especially in your evaluation. Um would you have a copy of that too as well? Don't you have that follow? >> Yes. Thank you very much. and I I brought mine. Um but thank um
this is great to have one right in front of me. Um thought maybe do you think I should start with very last page at naming the top three achievements or strong points? >> I'll let you start wherever you want to.
This is your time. This is your time. >> Okay. Um, and maybe we could do two rounds because there was a lot of this. So, first of all, um, I put a lot of thought into this. So, for that reason, I'm just going to read what I said, um,
instead of trying to redo it. Um, my overall comment was that uh, I think we're fortunate to have a city manager who shows uh, dedication and commitment to Crescent City and enthusiasm for his work and goodwill to others. Um I think
that he has shown many significant leadership abilities and management skills. Um one of his top leadership abilities I think is that he really has an instinct to put others first above
him needs of others. I think that was something if I recall correctly that we um took note of when we did the interviews. Um, I also think because my um my overall evaluation was 3.5
and that was because I felt he had met or exceeded standards. Um, but he still has to me the city manager has a lot of knowledge and expertise still to acquire. Um, and I think just briefly I might have seen that in some
others. Um, I've observed that many times Mr. Mr. Martin to me meets and exceeds expectations. Other times um it is clear that there is more to learn as expected from somebody in a first time
position. Um and I have three things that I would like to see said that I feel are the most important targets for this year. Um but maybe I would wait and let somebody else give some observations.
>> Okay. And we'll come back to that. and let's just have that be our final is that what we look at what we're looking for as we move forward. >> Okay, works for me. So with that, um, Commissioner Dory >> um,
let's just go I'll go over those achievements. Um, first of all, Derek, coming in at the right budget time was a challenge. Um, but you got us through that and not only that, but you controlled some costs, which I think was
impressive. I mean, you went to go after our insurance and save us a lot of money there. Um, and some of those other things that you looked into. I mean, we would have been in much worse shape if we hadn't if we didn't have you here. I know the budget was a lot of learning,
but you handled it. Um, and one of the other things that I said was achievement is you've really integrated in the community very well, and I think everyone in the B2 likes you. I hear all the time how much they really like love
your energy and the public really seems to you kind of have a charisma that people seem to to like. So um those were kind of the the achievements that I saw. Um you really do have a great way of
communicating with people. You're very personable. I saw that the day that you we had your we had the u reception for all of the manager candidates and some of the other candidates was sitting there listening to you talk around you. It was uh you really do have to have I put in your infectious energy
but that was not in the nicest way possible. Um, but I I I do know that you have stuff to learn, but I I've seen you learn it and so I I'm very happy that you're here and I think you've definitely exceeded my expectations and
continue every day. So, >> okay. Thank you. >> Okay. This is my first time, so I'm really Okay. Well, what I I I look for strong points also and um to me he seems to be
um well prepared and so and shows us data up to-ate data which I really need at this point and um he seems to be concerned and have before the meeting and let you know what's going on. So those are very um strong points I've
seen. And also um I like the point that he's very approachable and is available whenever you have questions. I need something and in a lot of times he answer questions before I act. So uh that's that's really good a good point
for me also. Um seem to be knowledgeable in issues that are going around that are happening in the city in the town and um and I like that part too. Um and I also will see that that you have um you do a
lot of research and um that's very important that you are knowledgeable about things before you come to the meeting. So and that's um and knowing about the community is is very is very important. I've seen you out there. >> Um >> don't laugh.
>> I don't want to know why you're laughing at. >> Okay. >> Yeah. Um but anyway, you seem to be not by the policies and everything is is for the city and and that's very important. >> Okay.
>> Yes, your turn. >> I'll keep it quick. Basically, sometimes you move too fast. There's a song about that, you know. Um you don't move too fast for me, but I saw during the budget when all of a
sudden you put in uh those links and all that. We lost a lot of people when we did that. I loved it because I had my computer and I could link to everything while you're going through it. But sometimes for people that use paper, you know, that's not right there in front of them. So, so you need to make them start
to use a computer. >> But anyway, >> point just saying that's what I love. I think you're progressive in your thinking and I think that's very important for the city. Um, you just showed me the uh, you know, it's one of my things I I wanted
you to bring forward, the whole fire, you know, station, everything. Uh, you showed that to me yesterday, and I'm so impressed with that. You know, I'm sorry. I probably did for this evaluation, but but I but I'm serious. I
I'm very impressed with it, and I'm sure the other commissioners and and the constituents will be as well. So, so you're doing a lot of things that that I really appreciate and uh now there's some things that I
don't I really don't know how to answer. Okay. Because I don't really get involved very much with the employees other than to to go out and graze and eat their candy and do those kind of things. But but overall, you know, I
don't I don't get involved with their, you know, how they work and what they do. I feel that that's their job and so I don't go in there and necessarily ever question those things and I feel your job is to manage. So, so I'm pretty basic when it comes to that kind of
stuff. So I think I've kind of expressed that in the evaluation and so I'm not sure how you're doing with all that except what I hear from the grape vine and you know how great is. So, so you know, you got to kind of that, you know, that's how I play it. And so, um, but
overall, I I think you're going to be one of the best men ever. >> That's the truth. Thank you. >> It's my turn. >> And Derek will probably say that I have been the hardest on him of all of you.
And I have been. Um, I had an English teacher one time in college, you know, freshman English 101. I remember her to this day. I learned more from her than I've learned from anybody. Um, and um, and not that I'm you need to learn
anything from me, but I I just hope that you understand that when I am being hard, when I um my expectations are high, because I know that you have that ability to achieve those expectations. Um, it's a big responsibility. A lot of
people don't understand, unless you're in here on a day-to-day basis, what the city manager, especially in a small community, has to do. Um, it's a lot of organization. It's a lot of um, squirrels. There are
squirrels everywhere. And it happens from the time you get up in the morning until the time you go to bed and oftent times when you're in bed. Um and and I know that based on when you came in, you came in with um an energy
and eagerness and I feel like that is truly what um what put you over the top of everyone. You know, you absolutely stood out. you stood out in my mind um and in my colleagues minds. Um and knowing that
you could come in, but we also knew when you came in that you'd never been a city manager. You had never really you had never worked in economic development. You had really been more public works. That's your forte and that's what you're good at. And you have a a great
understanding of public works. What you're having to do as a city manager is you're having to wall that other part that other side of of of what your role is um and put it
into action. Um, I've probably um, you know, had contact with people and and you and I both know this and you have you have worked to correct it. When some when something doesn't when something doesn't get done,
>> ultimately somebody comes to me. >> I'm not talking employees, >> right? >> We know the general public. Um, and so you and I have dealt with that several times and you have worked really hard to correct that and I have seen that. Um,
and like I said with a performance with a performance appraisal, it's an opportunity. I feel I've never liked a performance appraisal because I feel like if you're not doing the job, then that's when it comes into play. And um, but also as you're learning, I think it
comes into play. is helping you see where you can improve. >> Yes. >> And what our expectations are because you really don't know what our expectations are. Um and um I think that you are working very
hard to try to achieve those um in in the public with the general public. Um I couldn't be happier. I mean everyone I run into they adore you. um and um I have not I I don't know that I've had
any complaints from the general public. So, as being the face of the city, you have done an exceptional job in that regard. Thank you. >> Um and you're out there. You're accessible. Um and you have shown respect and professionalism.
Um and as we move forward, I too believe that you are going to do great things and um I'm planning on that. I'm putting my faith in you in that. Um the budget as
we as as several of us know who struggled through that budget. Um you know I had another city manager who came in right in the middle of budget season and had to pick up and run with it and um there's a lot to the budget. There's
a lot to the budget. We got through it. >> We just >> thankfully we got through it and I know >> staff did a great job. >> The staff and you did a great job. I know that we um you know that all of you spent some
nights that we did as well and um and worked hard to get us through that. I think probably one of my biggest things is and you and I have talked about this several times is getting this agenda getting the
agenda right >> getting getting the agenda having those details that we as commissioners need um that we as commissioners need in order to make the decisions we have to make.
and and that's where I'd really like to see um uh you know a lot of effort put into that because with each one of these and your recommendation because we rely often times on the city manager's recommendation because you have the
pulse on what's going on. >> Yes. So with that, Derek, um I know I've been hard on you and I hope you know that I've done that um because of the expectations I have. >> And I have seen um I've seen a different
person today than we saw when um when we first stepped that first that first week actually that first week and um and for that I thank you. So with that, Commissioner
back to me. Back to you. Okay. Um and I agree with quite a few of the things that you've mentioned and I'll try to touch on those. Um it asked for our top three performance objectives for
the city manager um for this year and obviously these are things that I think the whole commission has to agree on. Um first thing I would say is um increase the knowledge of the governing documents
of the city from the city charter, the ordinances, the policies applicable state laws and ensuring that city business is carried out according to all those laws, policies, procedures,
charter. Um and that's actually in the responsibility of the city manager. I believe it's charter version 3.04 print A. And my main reason for saying this is is that we are all responsible
to the residents and the businesses really to the residents to the voters of Crescent City. The charter is their charter. Um, and the city is their city and
we are the city commission is a colleial body. We're supposed to have one goal and one vision. So all of those things, the ordinances, the policies and procedures, those express that unified vision. They've been
adopted um with notice to the public, public comment. um it's very important that we keep to those and that if we want to make changes that we do it in the right way and um it's been my observation over a
long period of time both as a resident and a member of the city commission that um because people ever since we bought our house here people have had some concern that the governing documents of
the city and the policies are not what either the staff or the commission are are looking to. So I think it's important that we honor our responsibilities and we honor our residents by keeping to that joint
policy. Um and that means making sure the staff know all those things too and carry them out. Um and that's that's tall work. It's tall work. So the second would be um assuring effective staff
organization including and this has been going on for a while um so it's kind of something that you're inheriting uh updating the city policies and procedures. I think um there was a start on that a couple years
ago but it it wasn't car drew and also the city organization chart which I believe the charter says that the city is actually supposed to approve um and then my third would be facilitating and supporting this commission and this is
something we all have to agree with um but this is my goal in establishing a vision goals and priorities so that the city operations can work toward a common and coordinated goal so that we're
heading forward smoothly um to best use our our scarce staff time resources. Um, and then just down to the everyday nitty-gritty, the mayor mentioned, um, improve I think it was
the agenda for the meetings, the agenda preparation. Um, I have felt for a long time, and this goes to prior city managers, um, it's so important that agenda items be complete
when they're brought forward to the commission. Um, I think it's important for the commission and the public. Um, if something needs a lengthy staff discussion, including with the city attorney in the meeting that could have been had previously,
it's not some new revelation, something that could have been discussed earlier. Um, that really should be occurring before the commission meeting. I mean, that's what staff meetings are for. And as a for example, if you go to a county
meeting, um they have their ducks in a row. They have the written information. Um we just mayor mentioned we need the information that we have to have to make a good decision. And that means both sides, all sides, pros, cons. Um
really the um the appropriate staff should review the minutes to make sure they're in order. And one thing I've mentioned um in the one of the subsections of this valuation is um we
need to have a finance report that is timely that's in the charter um and maybe that gives us a um I don't have any problem getting a print out of funds received and funds expended. I
think that's very helpful. Um it's should be the charter says it should be made available to the commission and the public. Um but also I think somehow a summary we used to get a summary that showed us the funds
balances and gave us an idea of snapshot of how are we doing >> and this has never been done. It was very helpful. Are there any concerns? You know are we over budget somewhere? Is there a revenue source that's really really really lagging? Um, and again,
the commission has to agree on this. That might be helpful. Um, so those those are my recommendations going forward, and they're both for the city manager and for the commission to agree on. >> Thank you, Commissioner.
>> Oh, thank you. Um, my number two, she covered updating the policies and procedures, employee handbooks, and standard operating procedures. I know that's something that we've been working on. It's a big a big task. Um, but I'm glad to see that you,
you know, decided to tackle it from the beginning. I think that's something that some people have ignored or just haven't been around to. And I think that that's to me shows how good you are and how good you're going to be at this job. Um, another thing that you and I talk about
and that you're all going to need to talk about is updating the city's IT systems and equipment, our website, and eating equipment in this room. I think that's something that you are capable of handling and will be able to get us to the point where people can watch the
meeting online and actually understand what's going on and hear us. >> Um, and see us >> I think that and you know that um and then my other uh performance objective I put on there was recruitment and
development of capable staff um to filling positions and plan retirements. I mean it's I know it's something that we all think about sleep or stay awake sitting thinking about um but it's really up to you to do these to you know
replace these people or to find people but I have a feeling that you can um and I think that you manage people very well and that they'll want to come to work so um I think you'll do fine without but
that is definitely something and the the development part I think is important and I you understand this to give current employees, you know, ways to improve their sales and give them some, you know, training classes and that kind of stuff. It's something that we talk
about, but never kind of get falls to the wayside, unfortunately. But, um, you know, how important it is and and I I agree that that's definitely important. So, >> Commissioner Moore. >> Okay. and he kind of touched on a couple other things that I'm going to talk
about too also. Um um I think that staffing is is is very important too and and with dealing with staffing you have to have a a clear um vision as well as support for the staff and maybe
recognize them, you know, just to make them feel good about themselves. You know what I'm saying? What I'm saying? And I agree with what Moria said. I'm kind of in there too with what he's saying. But I think it's very important when you're dealing with people to um
have like a a workshop on maybe um solutions to um problems and risk management. It's very important because you know then we know how to deal with whatever is going on. And sometimes even when you have new employees
um it's very important that you let them know what the rules are, what um what's in in the charter I guess everything that's in there that they do have um they do have an opportunity to express themselves a way you know and have a
grievance or whatever it is I think that's that's very important so um I did I'm like I said I'm I agree with what he said too and it is just um and it's very important to have um sometimes our our
communication effective um communic communications sometimes we're misread you know whatever because a lot of people you know we do have different um can I say um I want to say attitudes but >> that might not be the word for it
>> but anyway you know we all have different ways of dealing with stuff and sometimes we say things that we really don't it it comes out wrong okay >> so that's why sometimes good you know just to have conversation you know and see what's going on too because a lot of times when you in the workplace, you
don't even really know what's going on until maybe you bring everybody in and and I really think that we should if you know that there's one person that's doing something that's really on it. You know, I I come from a place where you bring everybody in even though you know
who it is, but you just bring everybody in and you do this discussion on um on whatever the problem may be. But you know it's it's very important to get along know you have to be the boss to get along with people you know with your
um employees. You have to find a way a solution to um you know you you know you're not going to make everybody happy but anyway all of the time but some of the time you'll be able to do that but I I think you're doing a pretty good job. But you know those are just some suggestions. I really think we should
have a workshop on risk management. That's very important. Okay, >> Commissioner Burton. >> I think the last thing I can hit here that um I think I put in in my um
evaluation for some of your improvement definitely the the whole agenda thing. You know, somebody asked me I think last week, have you have you looked at the agenda for this coming day today? And I said no. And it was like, "What do you mean?" And
I said, "Well, it's going to change on the same day that the meeting is." And that really just shouldn't be happening. And it happens every single meeting. You know, it might be a day before, it might be two days before. And I'm a busy
person. I don't have time to be always looking at all these updates and revisions and all this kind of stuff, you know. So, so that's what I do now is the day of the meeting, that's when I sit down and hopefully it doesn't change on the day of the meeting, but today it
changed on the day of the meeting. You know, there's another revision that came through and and that's very frustrating for me anyway. But, you know, I just poured another cup of coffee to go through it now, but but it's not right. And um it doesn't give me sometimes
enough time because there's a lot of stuff that that we have to you know go down and things. Um but I but I think you know I kind of dug a few future developments. Um you know I think the fire station getting that completed. Uh
I you know I'm a person that I'm not sure where everything is going right now uh with the municipal cities and um property taxes and all the different uh things that are going to probably start happening next year. Uh I'm a person
that likes to see things settle and u right now I just I think all I'm going to say to you is strap in. Okay. Because I think things are going to get tough. >> Sure. And that's just the way I feel about it. But I know that we have to, you know, we have to keep our eye on the
ball. We still need uh our our sewer improvements, public work types improvements. Uh we need our code enforcement to, you know, beef up a little bit. Um but nobody knows where anything's going right now. So, a lot of things are up in
the air with how we're going to, you know, pay for anything next year, you know. So, anyway, um just buckle in and be ready. I'm sure you will because you're you are a good learner. >> Yeah. Thank you. >> Um I think Derek with mine it's
uh first and foremost right now is moving this fire station forward >> which I know which I know you working you put a lot of work into it and getting ready for the the other presentation that we're going to have. >> Um that is of course that's such a bonus to this community and and very much
needed for a very long time. And so we're excited about that and what that can bring. >> Um, you know, that's that's something that I just make sure you keep your eye on involved with that and and we know we have deadlines. >> We're we're close. We're real close. Waiting on Mr. Taylor um and some
finalization from public works, but we're really close to getting that done. Um, another portion just talk about that. I received today a letter of intent from a a buyer who wants to buy our existing tire station for an actual commercial business. So we got a letter
of intent which will be part of that report. >> That would be great. >> Yes. >> Um so I'm I'm very pleased with where we are with that and it's moving forward. Um the other thing is that I think that is very very important is and you are
charged with this in the charter um is our finan our financial condition and to make sure that you are very involved with speed on the budget where we are where those dollars are being spent.
>> Yes. Um and and making sure that we're apprised of, you know, when when we have situations that are coming up so that we're not trying to fix them after the fact. >> Yes. >> And that's very important. I think as we all know, you know, eyes are on all
communities right now, >> right? >> And and spending those dollars for you to be very familiar with um especially to get familiar with CRA. you've never really worked with CRA and to get full understanding of CRA
>> and and where our CRA boundaries are and the monies we have in there and those grant programs. We just recently had and it's not to your um but we just recently had two two grants that we um that we proceeded forward with and you know
making sure that we have um fulfilled those um expectations >> and and because we've you know I know I've gotten some feedback on on both of those on both of those grants, right? um
and what they had expected that we would have expectations for. So as we go forward that's going to be very important. Um you're building um your team. >> Yes. >> And and we know how important that is because really and truly you're only as
good as your team is. >> Correct. >> And that's for all of us. We as a commission are only as good as all of you. our staff is. >> Um, and so I think that's very important and investing in your team, making sure that they have the tools they need. That
includes all the, you know, from public works, you and I've had that conversation in public works. Um, as we go forward, making sure that they have the proper tools that they can do the job efficiently, >> you know, and that they're not constantly having to go try to find something that they have in their
toolbox what they need to do the job. Um and and that's also in your in your office staff. >> Yes. >> And making sure that they have everything that they need. Um that to me is is that's going to be part of your success
because all of your staff and what they're doing is going to be a reflection on you and your leadership and your management skill. Um and that's also with our policy and procedures. And I know you've taught policy and I've said to you over and over again, policy, policy, policy. Understand it before you
write it. >> That's right. >> So, I want to make sure that you've really delved into that and have a good understanding of all these various departments and um and the policies and procedures and how they apply. >> Yes, sir. And so, um, I know that as you
move forward, you're going to have a little bit of a handicap for a little while until you get, you know, and and I I I'm sure the commission is going to allow you brace through this. Um, and I asked my fellow colleagues knowing what he's about to go
through um that he does have some grace because right now um with um our clerk with her departure um you're going to have to fill that that role and that puts a lot on you. >> Yes. Um,
so but you know, ultimately I know we've got um I think one of the biggest things that I that I would like out of out of you and any city manager is that as you drive through the city
that you have the same eyes that we have. And it always has been an issue with me is that as I drive through the city, I see things. Right now I'm driving through the city and I'm seeing leads coming up in the medians, you know, I'm like, does nobody else see that?
>> And if I'm seeing that or other people seeing that, >> and so and I know we're limited with staff. I know we've had a lot of issues and there's only so much that can be done in a day, >> right? >> There is only so much um but but look at that. >> Just make sure please that you know with
as you drive through this is your city. >> Yes. >> Okay. and and you're investing here and we greatly appreciate that that you know you're picking up your life and you've moved it here and you're trying really hard to establish >> get an update. Um this was on my list
and the city manager mentioned it. Um where exactly are we with the audit and is the joint legislative audit committee okay with us? >> I I can take that Steve if that's okay. >> Sure. >> Okay. So our finance director has been in touch with JAC at every step. um they
are fully aware of where we are in the process. All of our information and all of our work is pencils down. We've submitted everything to James Moore at this time. James Moore is uh finalizing conducting their um final part and that you all should have a report completed I
would assume by the December meeting and all of the information is going to be forwarded to the state as well. That is our hopes. um they have not finalized and submitted yet, but we have gotten green light from JLAC that everything is is okay and we are we are still within
our our bounds. >> Okay. Jac joint legislative auditing committee. They're the ones that we send the um the audit to. >> Correct. I get the letter. >> Okay. >> Yes. >> Yeah. >> Yeah. >> Yes. Yeah. has been very good about um
deadlines as far as getting information regarding where we are to them and getting confirmation back from them that they've received our our request for extension. >> Okay. >> And again, the only thing that's held us up through this process has been the pensions. >> Both pensions.
>> Um Steve, if you want to It's the police more than the fire. >> Correct. >> Okay. But Stephen, that's even though we we agreed um with, you know, when he was when he was here this last time and we
talked about that that we agreed that he could separate that. >> Oh, that was the fire pension. They're going to do the same thing. >> They're going to do the same thing with that >> just because the situation >> thing once you can they can wrap it up. Yeah,
we're close that up and hopefully we can take some sort of action so that this is not going to happen next year. So, whatever we need to do to convert it, I know it's nobody really seems to know the answer, but we need to find an answer. We and what to do about converting that into something else or
however we need to do it because this is just being held up so many months because I mean I mean that's a problem. What I've been told is that we cannot convert them. That's the biggest problem. And some of these individuals, I believe it's one or two, have had this
for how many years now, Steve? 30. 30 years. >> It's been several years. >> They were given the opportunity to be bought out a few years ago. One of the best things that we can do is try to see what the F FRS um actually would help
that that would take away the responsibility on R to to uh submit that information. >> It's just not possibly on those on those that we currently have because one of them is a retiree already. Correct. I'm sure that would not convert and one of them is a widow. that I believe, correct
me if I'm wrong, Stephen, that if we did, if the city did end up going to that system, they would still be responsible for all of the communication regarding the the pensions. >> I'd have to look into the police pension because that whole annuity is that whole thing is just >> But we we will be looking into it
because it's one of the biggest, >> you know, hooks in our foot. I mean, that's that's what's holding us back. >> No, I mean, it's not a problem. It's just an obstacle to us. I think that's something as we go forward too, Steve. And um that as you have that
conversation with I believe it's Bonnie. >> Yeah, we had a >> Yeah, with Bonnie. >> Bonnie got this kind of got this in this was you know based on some of her recommendations. So ask her how she can get out of it. >> Yes. I think the state's going to have
to maybe maybe talk to them. Yeah. >> So, how how we need to go about doing that so that we don't run into this because we're running into it year after year after year because I know you start working on that audit as soon as the year closes out >> and this last year and while we feel like we're all in a really good spot
right now um and we've been working so hard to get to this spot um it just seems like that it just gets drug out and drug out and drug out. Anything else? >> We have a proper motion to adjourn. Do I have a second?
>> Second. >> Okay, we have a motion and a second. We are going to adjourn this meeting and we will reconvene for another meeting at special meeting at 3:00. Thank you all for being here today. >> Thank you. I >> Oh, all in favor say I. All right.