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Mediator Alvarez felt it would be beneficial to have more analysis on the issue, so all parties could base their decision on the best data possible. He suggested having a six-month cooling off period to analyze the situation and review the options. Mediator Alvarez reviewed some potential solutions: • The settlement terms in the Town's Proposal • One or more of the following actions: a. Some type of independent/representative electric authority b. Reduction of general fund contribution from electric utility revenues c. Amendments of OUC and/or FMPA obligations d. Other rate reduction initiatives through the rate reduction study e. Outside determination of reasonable rates f. FPL purchase g. Expert on the issue retained by all parties Mediator Alvarez said it would be to the benefit of all parties, that further efforts be done over the next six months, and recommended continuing talks with OUC and FMPA with the Town and County parties to such talks to understand the difficulties and legal ramifications of the negotiations. Attorney May clarified the Town envisioned that during the six month cooling off period, they would be able to conduct evaluations, which may include a potential RFP from providers of electricity. The mediator announced a recess for discussions at 1:57 p m. and resumed at 2.02 p.m., with all parties present. Attorney Wright stated the City agreed to the six-month cooling off period, but would not agree to the document proposed by the Town. He added the Town could do anything they want in terms of conducting a RFP to evaluate its position and alternatives going forward. He indicated the City would continue negotiations with OUC, proceed with the rate study and the system optimization/efficiency study. The City supported having the Town and the County representatives at the OUC, FMPA and FPL meetings as long as those entities agreed. Attorney May said what was missing from Attorney Wright's comments was the core issue for the Town to exercise its right to provide electricity to its citizens, whether it was provided by the Town, or by another provider. Attorney May referred to Florida Statutes Section 180.02, Powers of Municipalities - Any municipality may extend and execute all of its corporate powers applicable for the accomplishment of the purposes of this chapter outside of its corporate limits...provided, however, that said corporate powers shall not extend or apply within the corporate limits of another municipality. He indicated that the Town needed to be in a position that when the franchise agreement expires, there was an agreement with the City that there would be no Town of Indian River Shores - City of Vero Beach - Indian River County Electric Utilities Mediation December 17, 2014 Page 9