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RESOLUTION NO. 2014- 40 A RESOLU'T`ION OF THE CITY COUNCII, OF THE CITY OF VERO BEACH, .FLORIDA, AUTHORIZING THE CITY'S STAFF TO DEVELOP A PROPOSED ORDINANCE, IN COLLABORATION WITH CITY ELECTRIC CUSTOMERS, INCLUDING INDIAN RIVER COUNTY ANI) THE TOWN OF INDIAN RIVER SHORES, FOR TILE ESTABLISHMENT OF A UTILITY AUTHORITY TO OPERATE THE BUSINESS OF THE CITY ELECTRIC UTILITY; .PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Vero Beach operates an electric utility system that serves customers inside the city limits of the City and also serves customers located in unincorporated Indian River County and in the Town of Indian River Shores; and WHEREAS, customers have expressed a desire that the City establish a utility authority to operate the business of the City's electric utility system; and WHEREAS, in 2008, the Florida Legislature enacted Section 366.04(7), Florida Statutes (also referred to herein as the "2008 Statute"), which required municipal electric utilities meeting certain criteria to conduct a referendum of their named retail electric customers regarding those customers' desire to have the municipal electric utility establish a utility authority to operate the business of the electric utility; and WHEREAS, the City of Vero Beach duly evaluated whether the City was subject to Section 366.04(7), Florida Statutes, in accordance with the criteria set forth therein, and determined that it was not subject to that section, because the City had fewer than 30,000 named retail electric customers as of September 30, 2007, and also because the City electric utility served customers outside Indian River County as of September 30, 2007; and WHEREAS, customers of the City electric system have continued to request that the City consider establishing a utility authority to operate the business of the City electric utility; and WHEREAS, the Town of Indian River Shores has initiated a civil lawsuit against the City, in which the Town effectively demands, among other things, that the Circuit Court order the City to comply with the requirements of the 2008 Statute; and WHEREAS, although the City is not subject to the 2008 Statute, the City desires as a matter of good faith and responsiveness to the concerns expressed by its customers, to move forward toward developing an ordinance that would provide for a separate utility authority to operate the business of the City's electric utility system; NOW, THEREFORE:, BE I1' RESOLVED BY THE CITY COUNCIL OF TE1F: CITY OF VERO BEACH, FLORIDA, THAT: Page 1of3 158