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FPL's offer includes benefits for the City and electric system <br />employees while protecting existing FPL customers <br />COVB Benefits <br />• Payoff of COVB electric utility bond obligations <br />• One-time cash payment of $20 million <br />- Plus pre -payment of $10 million for a 99 -year lease for the substation <br />• Franchise fee payments <br />- Likely to be approximately $1.5 million in annual revenue to COVB <br />• COVB electric utility employees and pension <br />- FPL will offer employment for the existing -65 COVB electric utility <br />employees based on their qualifications <br />- Bargaining unit integration will be addressed by the FPL labor team <br />(COVB employees are part of the Teamsters union) <br />• FPL will also pay COVB $6.6 million to fund the total pension <br />liability for the transferred employees <br />In total, unencumbered cash benefit to the City in excess <br />of $30 million + annual franchise fees <br />Multiple approvals needed to close the sale - COVB Cityy <br />Council, all FMPA member cities and regulators (FPSC <br />FERC) <br />Timeline For Acquisition <br />FMPA member . <br />approval <br />•Letter of Intent presented •FPSC—Anticipated 180 <br />. <br />May 16, 2017 day approval timeframe <br />• Purchase and Sale to take place •FERC—Anticipated 90 •Anticipated to take place <br />Agreement expected to ween May 2017 and day approval timeframe on October 1, <br />2018 <br />7A.n1ticipated <br />be executed by August ember 2017 -Expect integration into <br />2017 FPL's system to take <br />approximately 8 months <br />Agreement <br />•• <br />execution <br />4 <br />FPL <br />A- z <br />