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RESOLUTION NO. 2012- 074 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, EXPRESSING ITS SUPPORT FOR THE SALE OF THE CITY OF VERO BEACH ELECTRIC UTILITY TO FLORIDA POWER & LIGHT WHEREAS, on November 3, 1981, the Florida Public Service Commission approved a Territorial Agreement between the City of Vero Beach ( City") and Florida Power & Light ("FPL") which established electric service areas for the City and FPL in Indian River County. Specifically, the electric service area for the City was defined to include the City itself, the Town of Indian River Shores, the south barrier island, and other unincorporated areas of the County, and the service area for FPL was defined to include all other areas of the County; and WHEREAS, on April 4, 2011, the City received a Letter of Intent from FPL expressing an interest in purchasing the City's electric utility, such that FPL would provide electric service in the entire County; and WHEREAS, on April 5, 2011, the Board of County Commissioners adopted Resolution 2011-026 which urged the City Council to seriously consider the Letter of Intent, and offered the County's support and assistance to the City and FPL with respect to negotiations for a definitive agreement; and WHEREAS, on November 8, 2011, over 65% of City voters approved a referendum to lease the City power plant in connection with the sale of the City's electric utility to FPL, if the City Council finds that such sale is beneficial to the citizens of Vero Beach; and WHEREAS, (1) on August 16, 2012, FPL presented a "Final Term Sheet" among the City, FPL and the Orlando Utilities Commission (` OUC") confirming each party's interest in negotiating definitive agreements for a sale transaction consistent with the general terms set forth therein, and (2) on August 28, 2012, FPL presented a Memorandum of Understanding among the City, FPL and OUC in which each party agreed to negotiate in good faith to resolve certain challenges to a sale transaction which exist by reason of pre-existing agreements between the City and OUC and the City and the Florida Municipal Power Agency; and WHEREAS, it is evident from the above that the City Council and City staff have worked and continue to work diligently and prudently in pursuing the sale of the electric utility to FPL, and deserve recognition for this effort from the Board of County Commissioners and all residents and businesses of Indian River County; and WHEREAS it is also evident that completion of the proposed sale will result in substantial benefits to the residents and businesses of Indian River County, including, without limitation, (1) substantial rate savings in excess of $20 million per year, which will boost economic activity, recovery and development throughout the County, and (2) future reliable service from FPL, which has consistently been one of the most efficient and well run, and lowest cost providers of electricity in the state of Florida; and Page 1 of 3