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RESOLUTION NO. 2017- 046 ; A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, URGING THE CITY COUNCIL OF THE CITY OF VERO BEACH, FLORIDA TO VOTE IN FAVOR OF THE FULL SALE OF THE VERO BEACH ELECTRIC SYSTEM TO FLORIDA POWER & LIGHT COMPANY; DIRECTING COPIES OF THIS RESOLUTION TO BE PROVIDED TO APPROPRIATE PARTIES. WHEREAS, on November 3, 1981, the Florida Public Service Commission approved a Territorial Agreement between the City of Vero Beach (the "City") and Florida Power & Light ("FPL") which established electric service areas for the City and FPL in Indian River County. Specifically, the electric service area for the City was defined to include the City itself, the Town of Indian River Shores, the south barrier island, and other unincorporated areas of the County, and the service area for FPL was defined to include all other areas of the County; and WHEREAS, approximately 61% of the City's present customers reside outside the City of Vero Beach. The City has approximately 34,000 total customers, of which approximately 21,000 are non-resident customers. This percentage of non-resident customers (61%) is believed to be the highest percentage of any municipal electric system in Florida; and WHEREAS, Indian River County, as well as several other taxing bodies such as the Town of Indian River Shores, the Indian River County School Board and the Indian River County Hospital District, are customers of the City electric system and as such pay higher City rates. These increased costs result in higher taxes being imposed on Indian River County taxpayers; and WHEREAS, FPL has made an offer to buy the entire City of Vero Beach electric utility system for$185 million; and - WHEREAS, FPL has stated that the $185 million includes a payment 1) for the cost to exit the Florida Municipal Power Agency ($108 million); 2) for the cost to exit the power agreement with the Orlando Utilities Commission ($20 million); 3) for the City's electric utility bonds ($20.4 million); 4) for a one-time lease payment for the City's substation ($10 million); 5) for the City's pension liability ($6.6 million); and 6) of cash ($20 million); and WHEREAS, FPL has also offered employment to all qualified City electric system employees; and WHEREAS, the Board, as the elected representative of all residents of Indian River County, including, those customers of the City's electric utility whose residence or business is located outside of the City limits, has consistently supported the sale of the City's electric utility to FPL, having previously adopted supporting resolutions on several occasions supported the sale by the City to FPL; and ' F 14rromeyDndaIGENFRALResolurims&Ordman 1Rew1uho 1C0VB(Electric Uri6ty Sale)(Ma),1017).doc Page 1 of 2