03/10/2015 - Laserfiche WebLink

Home Browse Search

follow-up communications with FPL and OUC, the three parties, i.e., the City, FPL, and OUC had a conference call on Friday, February 13, 2015 to discuss the prospects. Copies of correspondence, including emails, documenting these efforts are included in Appendix B. A memorandum comprising my notes from that conference call is included in Appendix B. As indicated, no party had any novel suggestions for how to move the proposed sale forward. Regarding participation by the Town and the County, since I had not received consents, and since the subject conference call came together just before the date on which it was convened, they were not invited to participate. B. Negotiating with FMPA and OUC Toward Reducing Power Supply Costs Pursuant to section 4.b of the Agreement, I sent letters to OUC and FMPA, and also to FPL as explained below, requesting meetings to discuss ways in which FMPA might be able to lower its power supply costs to Vero Beach under the contracts for the Stanton Project, the Stanton II Project, and the St. Lucie Project. I invited FPL because the St. Lucie Project is one of the City's major power supply contracts. I also asked that FPL, OUC, and FMPA consent to allow representatives of the Town and the County to participate. I received no response to the requests to consent to Town and County participation. Ultimately, after following up with emails and telephone calls, I received the message from FMPA that they are unable to schedule a meeting until after February 20. (My understanding and belief are that FMPA staff have been devoting most of their time to responding to the preliminary report of the Auditor General, of which you are probably aware.) The correspondence and emails relating to these efforts are also included within Appendix B. C. Completing the Rate Study On November 10, 2014, the City executed the contract for the Rate Study with Public Resources Management Group, Inc. ("PRMG") for the Rate Study. A copy of the PRMG contract is attached to this update report as Appendix C. As of February 11 (last Wednesday), the City expects that PRMG will provide a draft report and recommendations to the Vero Beach Utility Commission for discussion at that body's public meeting on March 17, 2015. This will be an initial recommendation regarding rate sufficiency and rate structure for current costs and the `status quo' and will not include the potential rate impact of any cost reductions based on renegotiation of power supply contracts or the results of the optimization study. (See below for discussion of the status of the City's discussions with OUC and also the status of the "Electric Utility System Study," which we commonly refer to as the "Optimization Study.") 2 211