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subsidy of the City's General Fund by the utility system; and (3) the formation of an electric utility that is controlled by a governing Board that fairly and proportionately represents the geographic makeup of the City's Electric Utility customer base. 3:05 County Attorney Dylan Reingold introduced the Board's outside legal counsel, p.m. Attorney Floyd Self, from Gonzales, Saggio, and Harlan LLP, Tallahassee. Attorney Reingold said he had attended the City meeting on October 21, 2014, and at that meeting, Attorney Robert Scheffel Wright, with Gardner, Bist, Wiener, Bowden, Bush, Dee, LaVia & Wright, P.A. and utility Attorney for the City, announced that there was a tentative agreement regarding the Orlando Utilities Commission (OUC) contract, and a possible amendment proposal to OUC and the City. He reported that the revised 2008 Power Purchase Agreement (PPA) with OUC included the following provisions: (1) a decrease in the capacity payments under the PPA between OUC and the City by approximately $7 million per year for the first three years of the amended PPA, and thereafter the decrease would be between $4.1 million and $5.3 million per year for the remainder of the term, which runs through 2029; (2) the City purchasing 54 megawatts (mw) of peak power from OUC, which would enable the City to close the Vero Beach Municipal Power Plant; (3) a provision of minimum take of the base capacity of 85 mw by the City; (4) OUC having a one-time option to terminate the PPA, no earlier than 2020 with a two-year notice; (5) OUC having a one-time option to acquire Vero Beach's rights to the output of the St. Lucie Project through a PPA; and (6) OUC permanently retaining the gas transportation rights currently assigned to OUC under the 2008 PPA. He also reviewed the Agenda for tomorrow's Joint Public meeting, and identified some of the issues and comments that might be brought up. 3:15 Chairman O'Bryan voiced his concerns over the proposed PPA revisions with p.m. OUC, the Town's civil lawsuit against the City for unreasonably high electric rates, and the mediation process under the Statute. 3:22 Commissioner Zorc recapped data from the Florida Municipal Power Agency p.m. (FMPA) spreadsheet (on file) that compared ten years of residential and commercial electric rates, and showed that FPL, on a 10 -year average, had consistently been the lowest cost provider. He believed the rates were artificially low to start off with, and after a short period of time, would increase; therefore, he believed this would be another long term bad commitment. 3:25 Commissioner Solari spoke about the last FMPA meeting, which showed that p.m. while the Board was discussing price reductions, the City's price was going up, and he believed the control of the increases were beyond the City's control. He did not believe the money would stop flowing from the subsidy that Vero Electric provides to the City's General Fund. He questioned the good faith of the City when the Mayor is taking off the table the one thing that the City has control over (the subsidy); and felt if the City was serious in reducing rates, the first thing they would do is eliminate the 6% from customers' electric bills. He said it would be nice to have good numbers in the package, and hoped the City would not move Special Call Meeting October 27, 2014 Page 2 •