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BOARD OF COUNTY COMMISSIONERS IIA` December 11, 2014 ORiph Via email correspondence Carlos Alvarez,Esq. 847 East Park Avenue Tallahassee, Florida 32301 Re: Indian River County-Town of Indian River Shores- City of Vero Beach Florida Governmental Conflict Resolution Mediation Dear Mr. Alvarez: Thank you very much for willing to serve as the mediator in the Indian River County-Town of Indian River Shores-City of Vero Beach mediation as part of the Florida Governmental Conflict Resolution process. Pursuant to your letter to the three primary conflicting governmental entities dated December 2, 2014, please find below Indian River County's mediation statement. 1"W Indian River County Mediation Statement On July 21, 2014, Indian River County ("County") was formally notified that the Town of Indian River Shores ("Town") was intending to file a lawsuit against the City of Vero Beach ("City") and initiate the process set forth in the Florida Governmental Conflict Resolution Act, Chapter 164 of the Florida Statutes. In Town Resolution 2014-05, the Town raised several issues of conflict with the City, including 1) unreasonable electric rates, 2) the City's refusal to comply with the referendum requirements set forth in Section 366.04(7), Florida Statutes, and 3) the removal of the City's electric facilities from the Town upon expiration of the electric franchise agreement with the Town. On August 19, 2014, the Indian River County Board of County Commissioners ("Board") voted to adopt a resolution joining the Florida Governmental Conflict Resolution process initiated by the Town. The County shares these similar conflicts with the City. Over fifty percent of the customers of the City's electric utility are in the unincorporated areas of Indian River County. These customers are forced to pay unreasonable electric rates which are approximately thirty percent higher than those charged to customers in the unincorporated areas of Indian River County served by FPL. Indian River County will also be seeking the removal of the City's electric facilities from the unincorporated areas of the County upon expiration of the City's franchise in March, 2017. Finally, the Board shares the same concerns with respect to the City's refusal to conduct a referendum election as required by Section 366.04(7), Florida Statutes. Background On January 27, 1987, the Board adopted Resolution 87-12, which granted to the City an exclusive electric service franchise (the "Franchise") for certain unincorporated geographic areas IWOW of the County (the "Franchise Area"). The City accepted the Franchise on March 5, 1987. 13