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• <br />• <br />• <br />Holland & Knight <br />315 South Calhoun Street, Suite 600 1 Tallahassee, FL 32301 1T 850.224 7000 1 F 850.224.8832 <br />Holland & Knight LLP 1 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 1Atlanta 1 Austin 1 Boston' Chicago 1 Dallas 1 Fort Lauderdale 1 Jacksonville 1 Lakeland 1 Los Angeles 1 Miami 1 New York <br />Northern Virginia 1 Orlando 1 Portland' San Francisco 1 Tallahassee 1 Tampa' Washington, D C 1 West Palm Beach <br />sq <br />