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2011-026
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Last modified
2/22/2016 9:50:44 AM
Creation date
9/30/2015 5:52:08 PM
Metadata
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Template:
Resolutions
Resolution Number
2011-026
Approved Date
04/05/2011
Agenda Item Number
13.B.
Resolution Type
Setting Forth Position
Entity Name
Vero Beach Electric System
Subject
Board’s position of issues relating to the electric system
Supplemental fields
SmeadsoftID
9448
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RESOLUTION NO . 2011 -026 <br /> WHEREAS , non - resident customers who bear this rate and subsidy burden have <br /> no way to protect themselves or to influence City rates or subsidy practices . While <br /> resident customers protect themselves by voting in City elections , non - resident <br /> customers have no such ability . Non - resident customers are required by the 1981 PSC <br /> order to be customers of the City electric system but , having no vote in City elections , <br /> have no ability to protect themselves from rate and subsidy burdens ; and <br /> WHEREAS , in 2008 , the Florida Legislature recognized the unfair plight of non - <br /> resident customers by adopting Chapter 2008-227 , Laws of Florida . This statute <br /> required that a referendum be held of retail customers of any municipal electric system <br /> falling within statutory parameters to determine whether a separate utility authority <br /> should be created to operate the system . Upon an affirmative vote , the municipality <br /> would be required to create a utility authority with a governing board made up <br /> proportionately of resident and non - resident customers . Although Chapter 2008 -227 <br /> was introduced by Indian River County State Representative Stan Mayfield and was <br /> intended to apply to the City electric system , the City determined that the statute did not <br /> apply and never held the referendum ; and <br /> WHEREAS , in 2009 , two Indian River County citizens , Dr . Stephen J . Faherty , <br /> Sr . and Glenn Heran filed a petition with the PSC asking that the PSC ( i ) act on its own <br /> motion to redefine the territorial service areas of the City and FPL in Indian River <br /> County to better protect non - resident customers , ( ii ) require that the City stop the <br /> practice of using its electric system to subsidize its general fund , ( iii ) address and <br /> mitigate the " taxation without representation " situation that exists for the 61 % of City <br /> customers who are non - resident customers , and ( iv) enforce Chapter 2008 -227 by <br /> requiring the City to hold the referendum and , upon affirmative vote , to create a utility <br /> authority governed proportionately by resident and non - resident customers ; and <br /> WHEREAS , the County , as well as several other taxing bodies such as the Town <br /> of Indian River Shores , the Indian River County School Board and the Indian River <br /> County Hospital District , are customers of the City electric system and as such pay <br /> higher City rates . These increased costs result in higher taxes being imposed on Indian <br /> River County taxpayers ; and <br /> WHEREAS , on April 4 , 2011 , FPL submitted a letter of intent to the City <br /> expressing its interest in purchasing the City electric system . If FPL and the City are <br /> able to reach a definitive agreement , and FPL acquires the City electric system , many of <br /> the rate and subsidy issues set forth above will be resolved ; and <br /> WHEREAS , given the significance of these issues , particularly as they relate to <br /> non - resident customers , the Board of County Commissioners believes that it should <br /> adopt this resolution setting forth the Board ' s position on the issues , <br /> NOW THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY <br /> COMMISSIONERS OF INDIAN RIVER COUNTY , FLORIDA THAT : <br /> - 2 - <br />
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