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City of Nero Beach 1053 - 20th PLACE - P.O. BOX 1389 VERO BEACH, FLORIDA - 32961-1389 OFFICE OF THE MAYOR October 25, 2021 Joseph E. Flescher, Chairman, Board of County Commissioners Jason E. Brown, County Administrator Indian River County 1801 27th Street Vero Beach, FL 32960-3365 Gentlemen, At our October 6, 2021 Chapter 164 dispute resolution meeting, the City asked the County to recognize the permanent duration of the 1989 Territorial Agreement. The County stated that it was not interested in the City's customers and that it does not want litigation. Further, the County stated that they would acknowledge the validity of the 1989 Territorial Agreement; the City would continue to serve the Town of Indian River Shores, subject to the existing City/Town Franchise Agreement; and the City would continue to serve the South Beach under a new reasonable franchise agreement. The County proposed the following for the South Beach franchise agreement: Rates: City would charge County rates until 2027, then City rates thereafter. However, the City rates could not increase by more than 5% annually until 2032. ® Surcharges: City wculd not levy any outside City limit surcharges. ® Service Standards: City would provide the same service standards inside and outside the City limits. ® Transfer of Funds: City woud no longer transfer 6% of revenues to the City's general fund. At the October 19, 2021 City Council meeting, the City Council authorized that this letter be transmitted to the County wifh the following South Beach franchise offer: Rates: City will establish rates that are just and equitable that recover the costs associated with providing utility service. This is the same method the County uses to establish its rates and was the same method used in the now expired 1987 City/County Franchise. Phone: (772) 978-4700 - Fax: (772) 978-4790 - E-mail: cityclerk@covb.org 140 wvnv.covb.org