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Holland & Knight <br /> .,.. 315 South Calhoun Street,Suite 600 1 Tallahassee,FL 32301 1 T 850.224.7000 1 F 850.224.8832 <br /> Holland&Knight LLP I www.hklaw.com <br /> D.Bruce May,Jr. <br /> (850)425-5607 <br /> bruce.may@hklaw.com <br /> December 11, 2014 <br /> Via E-mail[ca.alvarez@embargmail.com] <br /> Carlos Alvarez, Esq. <br /> 847 East Park Avenue <br /> Tallahassee, Florida 32301 <br /> Re: Mediation Statement of the Town of Indian River Shores, Chapter 164 F.S. <br /> Mediation, Scheduled for December 17, 2014 <br /> Dear Mr. Alvarez: <br /> Thank you for agreeing to serve as mediator as part of the conflict resolution process <br /> between the Town of Indian River Shores(the"Town"), Indian River County (the"County"), and <br /> the City of Vero Beach (the "City," and collectively, the "Parties"). On behalf of the Town, I am <br /> sending this letter outlining the Town's position in advance of the December 17, 2014, mediation <br /> to help promote a productive mediation effort. I will be joined at the mediation by the Town's <br /> Mayor, Brian Barefoot, the Town's Manager Robert Stabe, the Town's attorney Chester Clem, <br /> Holland & Knight's outside consultant Terry Deason, and my colleague Kevin Cox. <br /> Background <br /> Electric utility service within the Town is currently fragmented. A portion of the Town <br /> lying north of Old Winter Beach Road is served by Florida Power & Light Company ("FPL"), <br /> while the remainder of the Town south of Old Winter Beach Road is served by the City. The <br /> inefficiencies and other problems inherent with fragmented utility services are exacerbated by the <br /> fact that the City's electric rates are substantially higher than the rates charged by FPL and the <br /> Town's residents have no say in how the City's rates are set. Consequently, Town residents <br /> receiving electric service from the City are forced pay substantially more for electric service than <br /> those Town citizens receiving service from FPL. This substantial rate differential, coupled with <br /> the fragmentation of electric service,and the disenfranchisement of the City's non-resident electric <br /> customers, is costly, divisive, and unfair to the Town's residents. The Town is concerned that this <br /> problem will only worsen, and believes that the City cannot operate its electric utility in a way that <br /> can provide Town residents with reasonable rates, particularly when compared to the rates which <br /> FPL charges for the electric service it furnishes in the Town. <br /> Anchorage I Atlanta I Austin I Boston I Chicago I Dallas I Fort Lauderdale I Jacksonville I Lakeland I Los Angeles I Miami I New York <br /> Northern Virginia I Orlando I Portland I San Francisco I Tallahassee I Tampa I Washington,D.C.I West Palm Beach <br /> 5q <br />