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Town of Indian River Shores – City of Vero Beach – Indian River County Electric Utilities Mediation Page 5 May 1, 2015 Mayor Barefoot called attention to the fact that the Town had a May 15, 2015 deadline and asked Mrs. Brunjes, if there was a timeframe when FPL could meet with the City regarding the additional analysis required for a buyout. Mrs. Brunjes detailed that FPL would need to do a full evaluation in order to determine the purchase price and was hopeful the analysis would be completed within the next two to three weeks’ timeframe, close to the May 15, 2015 deadline or shortly thereafter. Mayor Richard Winger questioned the Town’s buyout amounts on their analysis and referred to the $3,000,000 number. He felt it was rather an insult and the numbers were unrealistic because the FMPA power was expensive. Mr. Deason responded with an apology and indicated it was just a range analysis. General discussion ensued in regards to the range analysis and Commissioner Peter O’Bryan summarized the range analysis clarification. He referred to the Transfer Coverage Range Analysis and implied that the City could invest in some type of financial investment that would generate various rates of return. Based upon that return, that would be how many years the amount would cover the $540,000 transfer. Mr. Deason agreed with Commissioner O’Bryan’s summary with a slight clarification that the City could take the funds and invest them, or use the money, which would preclude them from having to go to some other source of funds. Commissioner O’Bryan viewed the second handout regarding the Series 2003A Electric Refunding Revenue Bonds. He pointed out that if the City took the buyout amount and paid down a portion of their revenue bonds, the savings would be the reduced interest from paying down those bonds. Mr. Deason added it would not only reduce the interest from paying down the bonds, but reduce the requirement to pay the principal. The Mediator called for a recess at 10:30 a.m. and reconvened the meeting at 10:43 a.m., with all parties present. Mediator Alvarez wanted to hear the City’s thoughts regarding the Town’s proposal. Attorney Wright looked forward to receiving FPL’s proposal. In response to Mr. Deason’s analysis of two possible applications of a buyout payment, he explained there was a lot more components involved with any loss of sales based on kilowatt hours sold to the City’s overall cost structure under the various power purchase agreement. He revealed the City strongly preferred to see the City electric issue wrapped up sooner, rather than later. Mediator Alvarez seemed to think that the end of the cooling off period of May 15, 2015, was too short of a period of time for the City’s consideration of the Town’s proposal and questioned if the Town could extend their lawsuit another month. A discussion ensued on the lawsuit, and Attorney May’s concern was that the franchise agreement would expire in November 2016. He believed even with the Town pursuing the