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