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A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA REGARDING THE FLORIDA AUDITOR GENERALS PRELIMINARY AND TENTATIVE AUDIT FINDINGS AND RECOMMENDATIONS CONCERNING THE FLORIDA MUNICIPAL POWER AGENCY (FMPA) AND THE PLANS OF THE CITY OF VERO BEACH IN RESPONSE TO THAT AUDIT REPORT. WHEREAS, the Town of Indian River Shores ("Town"), the City of Vero Beach ("City"), and Indian River County (the "County") are participating in a state - mandated mediation process under Chapter 164, Florida Statutes, to resolve issues associated with a complaint of the Town of Indian River Shores ("Town") against the City of Vero Beach ("City"), Case No. 312014 CA 000748, pending but presently in abeyance in the Circuit Court in and for Indian River County, Florida (the "Lawsuit"), and WHEREAS, as part of that state -mandated mediation process the Town, the City, and the County have entered into an Interim Mediation Agreement, which provides among other things that the Town will continue to abate the Lawsuit until March 2, 2015, so that the Parties can further evaluate options that would resolve the conflicts between them; and WHEREAS, under the Interim Mediation Agreement the City has agreed to continue to work with the Florida Municipal Power Agency ("FMPA"), bond trustees and others to effectuate the sale of the City's electric utility system to FPL; and WHEREAS, the Florida Auditor General has conducted a full audit of the FMPA and released its preliminary and tentative audit findings and recommendations on January 21, 2015 (the "Audit Report"); and WHEREAS, the Audit Report found that FMPA's "[fluel hedging practices were not consistent with industry practices" and, as a result of those practices, "the FMPA incurred net total losses of $247.6 million related to fuel hedging activities over the past 12 fiscal years"; and WHEREAS, the Audit Report found that FMPA entered into a series of pay - fixed interest rate swaps with notional amounts of $700 million associated with the financing of a power plant project in Taylor County, Florida that was never built (the "Taylor Swaps"); and WHEREAS, the Audit Report found: FMPA's decision to enter into the Taylor Swaps "represents risk-taking in excess of industry practice"; the "swaps were not employed consistent with industry practices"; the swaps are likely to result in "significant termination fees"; and in October of 2014 the swaps had a value of "negative $108 million"; and