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Indian River County <br />Mediation Statement <br />Page 2 of 3 <br />Pursuant to the Franchise, over time the City has erected within the Franchise certain poles, <br />fixtures, conduits, wires, meters, cables, and other such electric transmission and distribution <br />facilities for the purpose of supplying electricity within the Franchise. By its terms, the Franchise <br />expires on March 4, 2017, absent a mutual agreement to continue. <br />On February 22, 2012, the Board properly noticed the City that the County would not renew <br />the Franchise when it expires. It is the Board's position that without the Franchise, the City no <br />longer has the legal authority to occupy or otherwise utilize the roadways, easements, and public <br />property within the Franchise Area. Without this legal authority, City will not be authorized or <br />permitted to provide electric service within the Franchise Area. <br />Additionally, the Legislature adopted Section 366.04(7), for the purpose of allowing electric <br />service customers of an "affected municipal electric utility" the opportunity to choose self - <br />governance. According to the City's own records, the City's customer base was within the <br />customer .range set forth in this statute and the City, otherwise met all of. the other statutory <br />preconditions for such an election. However, the City failed to conduct the required election. This <br />issue is important since more than half of the City's customers are outside the city limits and these <br />customers have no vote, no voice, and no redress to the Vero Beach City Commission or city <br />officials since they cannot vote in City elections. <br />Finally, in February 2013, the City and FPL agreed to the sale of the entire City electric <br />utility system to FPL, and the sale of the electric system contemplates FPL serving the Franchise <br />Area, as well as within the City limits and the Town. In March 2013, the citizens of the City <br />overwhelmingly voted to approve a referendum supporting the sale. However, since that time the <br />sale as described by City representatives has been "on the backburner" and is prohibited by a <br />condition precedent. <br />It is also important to note that the County is not a party to the lawsuit filed by the Town. <br />The County has filed a Petition for a Declaratory Statement from the Florida Public Service <br />Commission. The County will have filed an Amended and Restated Petition for a Declaratory <br />Statement by the time of this mediation, seeking the Public Service Commission's guidance as to <br />the authority of the County with respect to seeking a successor electric franchisee. <br />Key Interests <br />The County's key interests are as follows: <br />1) The County believes that the City needs to complete the sale of the City electric <br />utility to FPL. This is the best alternative to providing all electric ratepayers within the County <br />with a utility that is responsive to all customers, has fair and reasonable rates, and is not using <br />electric customers to subsidize City government. <br />2) In the event the sale cannot be completed, the City needs to provide a functional <br />equivalent of such a sale based upon the following three principles: <br />a. Rates substantially similar to those of FPL. Since the mediator has requested that the <br />parties be as specific as possible, the County would expect such rates to be in a range of <br />plus or minus 5% of FPL rates; <br />ly <br />