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WHEREAS, based on discussions at the City's special call meeting on <br />January 29, 2015, the County believes that the value of the Taylor Swaps has dropped <br />significantly since October 2014, and the swaps currently have an approximate value of <br />negative $150 million; and <br />WHEREAS, the Audit Report also raises serious concerns about other <br />aspects of FMPA's business practices, including its investment strategies, procurement <br />protocols, professional services contracts, salary and benefit policies, and entertainment <br />budgets; and <br />WHEREAS, a significant share of the hedging losses, swap termination <br />fees, and other operational costs incurred by FMPA are passed on to the customers of <br />the City's electric utility and other FMPA member utilities, and are a major driver of the <br />electric rate problems facing the citizens of our communities; and <br />WHEREAS, at its special call meeting on January 29, 2015, the City voted <br />to encourage FMPA to hire a consultant to protect against these abuses occurring in the <br />future; and <br />WHEREAS, the County applauds the City for trying to ensure that FMPA <br />does not repeat mistakes in the future, but also believes that the City should hold FMPA <br />accountable for its mistakes that have already occurred, and which have caused <br />economic harm to the City's electric utility customers; and <br />WHEREAS, the County believes that FMPA's intransigence and <br />mismanagement are primary causes of the electric rate problems that confront all of our <br />residents, and the City will never be able to solve those problems without holding FMPA <br />accountable; <br />NOW, THEREFORE, BE IT RESOLVED by the Board of County <br />Commissioners of Indian River County, Florida that: <br />Section 1. The County adopts as true and correct the recitals stated above and <br />incorporates same by reference as part of this Resolution. <br />Section 2. The County encourages the City to meet as soon as possible with the <br />FMPA as part of the City's obligations under the Interim Mediation Agreement to try to <br />resolve the Lawsuit by working with FMPA "to effectuate the sale of the City's electric <br />utility system to FPL." As part of that meeting the County encourages the City to: <br />a. Demand that the FMPA do an immediate market appraisal by an independent <br />expert of all assets and liabilities associated with the City of Vero Beach and <br />its contractual arrangements with FMPA; and <br />b. Discuss with FMPA the findings in the Audit Report including, but not limited to, <br />FMPA's hedging and swap losses; and <br />