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