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13.B. ELECTRIC FRANCHISE WITH THE CITY OF VERO BEACH <br />Attorney Polackwich reported that the County's franchise agreement with the City of <br />Vero Beach (the City) for the provision of electric service in certain unincorporated areas of the <br />County is set to expire in January 2017. He conveyed that pursuant to Resolution 87-12 (the <br />authorizing Resolution), the County must indicate a desire to negotiate a renewal by advising the <br />City five (5) years prior to the expiration date, which would be now, and he was seeking Board <br />direction. He summarized three options: (1) send no notice; (2) send a notice that the County <br />does not desire to renew; or (3) send a notice indicating a desire to renew with stipulations, <br />noting that ultimately the Public Service Commission (PSC) is the only agency who determines <br />the service areas for electricity. Attorney Polackwich mentioned that the 6% franchise fee the <br />City pays for the use of the County's rights-of-way, might factor into the Board's decision. <br />Discussion ensued, with input from Administrator Baird, about the revenues generated by <br />the 6% franchise fee paid by the City. <br />Attorney Polackwich, responding to Chairman Wheeler's inquiry, explained what it <br />would take for the PSC to change the service areas, which were established in a 1981 agreement <br />between Florida Power and Light (FPL) and the City, and which included certain unincorporated <br />areas of the County within the City's electric service areas. <br />J. Rock Tonkel, Grand Harbor, opined that the 6% franchise fee would have to be paid <br />by whatever electric service provider assumes electric service for the unincorporated areas under <br />discussion. He advocated that the County advocate to PSC for fair rates for the18,000 rate <br />payers currently receiving electric service from the City. <br />Attorney Polackwich agreed with Mr. Tonkel that if another provider, such as FPL, <br />acquires the City's electric utility, the County would receive from them the 6% franchise fee. He <br />also clarified that his recommendation was for the Board to only consider renewing its franchise <br />February 21, 2012 29 <br />