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A. MAYOR OF TOWN OF INDIAN RIVER SHORES <br /> 9:28 Mayor Barefoot expressed that the Town did not relish being in an <br /> a.m. adversarial position, but fortunately there was the conflict resolution <br /> process to aid in resolving their unreasonable electric service rate issues. <br /> He provided background and explained the details of the 1986 Franchise <br /> Agreement which: (1) relinquished the Town's statutory right to provide <br /> residents with electricity for a period of 30 years; (2) gave the City's <br /> electric utility permission to serve the Town's municipal boundaries for a <br /> period of 30 years; and (3) provided the City's electric system with access <br /> to the Town's right-of-way and other public areas for 30 years. In <br /> exchange, the City had agreed to charge the Town and its citizens with <br /> reasonably priced electricity. He revealed that the City had a long history <br /> of excessive electric rates, and for years, Towns people or residents have <br /> expressed concerns that the City's rates were unreasonably high. He said <br /> approximately 20% of the Town's residents were served by FPL, while the <br /> remaining 80% were served by the City; the significant disparity between <br /> the two rates continue to create an unacceptable situation whereby <br /> neighbors are being forced to pay vastly different rates for essentially the <br /> same amount of electricity. He felt not only was the disparity unfair, but <br /> it was extremely divisive, which was why the Town was seeking not only <br /> lower rates, but rates that are comparable to FPL's. He also emphasized <br /> that the Town thinks the City's electric rates are unaccountable because <br /> the City is using its electric revenues from its nonresidential customers to <br /> subsidize its General Operating Budget. He believed the Town has a <br /> statutory obligation to see that its citizens are protected from <br /> unreasonable rates and unfair utility practices. <br /> Mayor Barefoot shared some of the Town's observations regarding the <br /> proposal, and touched on some of their concerns. He commended the City <br /> Council, its representatives, and the OUC for seeking new opportunities to <br /> lower rates, but from his perspective it was too little, too late, and too <br /> risky. He was convinced that the dispute goes beyond the rates, and <br /> instead was founded upon the decisions that the City's predecessors had <br /> made, and continues to plague their community. He was convinced that <br /> the utility's destiny was entirely in the hands of FMPA, who decides what <br /> one can charge for the electric services provided, whether one can sell the <br /> utility system, and whether one can exit the business. He voiced concerns <br /> that the Town had not been given the opportunity to approve or comment <br /> on the contracts, and believed the solution would be for the City to sell its <br /> electric utility. <br /> Mayor Barefoot disclosed that if the City would be unwilling or unable to <br /> effectuate the sale, the Town would consider a lawsuit to be the only <br /> option available to provide their residents with long-term rate relief, and <br /> if the City would be unwilling and unable to lower its rates to parity, then <br /> Joint Public Meeting <br /> October 28,2014 Page 4 <br />