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INTERIM MEDIATION AGREEMENT
THIS AGREEMENT is made this 6 day of January, 2015 by and between the
Town of Indian River Shores (the"Town"), Indian River County(the"County"), and the City of
Vero Beach(the"City", and collectively,the"Parties").
WHEREAS,the respective representatives of the Town,the County, and the City
participated on December 17,2014 in a mediation session(the"Mediation")pursuant to the
Florida Governmental Conflict Resolution Act, Chapter 164,Florida Statutes; and,
WHEREAS,the respective Mediation representatives for the Town,the County, and the
City agreed to recommend to their respective governing bodies to approve certain terms
discussed at the Mediation which would involve an agreement by the Town to continue to abate
the lawsuit brought by the Town against the City, Circuit Court Case No. 312014 CA 000748, in
the Nineteenth Judicial Circuit in and for Indian River County(the"Lawsuit"), so that the Parties
can further evaluate and explore options to resolve the conflicts between them.
NOW, THEREFORE,the Parties, in consideration of the mutual benefits contained
herein, agree as follows:
1. The Town will continue to abate the Town's lawsuit until Monday, March 2,
2015.
2. Without waiving its position that neither the Town nor the County may take any
action, either before or after the expiration of their respective franchise agreements with the City,
that would terminate or in any way impair the City's right, obligation, or ability to operate its
electric utility system and/or provide retail electric service in its service territory approved by
orders of the Florida Public Service Commission,the City will not object to either the Town or
the County conducting, as contingency planning for the possibility that they might prevail in the
Lawsuit or related litigation, evaluations of alternatives for the Town or the County to provide
for, or to arrange for the provision of,electric service to their respective citizens upon expiration
of their respective electric utility franchise agreements with the City. In this regard, the City will
not object to the Town or the County issuing requests for proposals to, or otherwise
communicating with,other potential electric utility providers,including but not limited to Florida
Power&Light Company("FPL"), with respect to any such alternatives.
3. On or before January 8, 2015,the City,Town and County will enter a separate
agreement with FPL,if FPL consents, acknowledging that the Town's and the County's
discussions with such potential providers would not be treated as a breach of, or interference
with,the existing contract that the City has with FPL to sell the City's electric utility to FPL or
any other agreement between the City and FPL.
4. The City will continue to diligently explore options to lower electric rates, which
activities and options include, but are not limited to,the following:
a. Working with FPL,the Orlando Utilities Commission("OUC"),the Florida
Municipal Power Agency("FMPA"), bond trustees and others to effectuate the
sale of the City's electric utility system to FPL. In this regard,the City will ask
A TRUE COPY
CERTIFICATION ON LAST PAGL
J.R.SMITH.CLERK
FPL, OUC, FMPA,the bond trustees, and if needed others to consent to allowing
representatives of the Town and the County to attend such discussions;
b. Negotiating with OUC and FMPA toward reducing the'City's costs under its
long-term power supply arrangements with those utilities. In this regard,the City
will ask OUC and FMPA to consent to allowing representatives of the Town and
the County to attend such discussions;
c. Completing the Rate Study,which includes a cost-of-service study and
evaluations of other financial and rate measures,with Public Resources
Management Group, Inc.;
d. Conducting and completing the anticipated study of the Vero Beach Electric
Utility system with respect to efficiency, optimization, and potential cost-saving
measures,which study is expected to begin in January 2015 and expected to be
completed in the summer of 2015; and
e. Continuing the City's efforts to identify and implement additional cost control
and cost reduction measures to bring lower electric rates to its customers.
5. The City will continue to pursue conducting a referendum on the creation of an
independent utility authority, and will agree to work in good faith with the Town and the County
to reach agreement on the details of that authority, including its powers, structure, and
composition.
6. No later than February 18, 2015,the City will provide the Town,the County and
the mediator with a report on the status of efforts to lower rates (including but not limited to the
status of its efforts to sell its electric utility system to FPL) and to create an independent utility
authority. This report will be provided by the City.
7. This Agreement shall not preclude the County from moving forward with its
petition for declaratory statement in Docket No. 140142-EM,which is currently scheduled to be
considered by the Florida Public Service Commission on February 3,2015.
8. Unless the Town and the City agree otherwise to continue abatement of the
lawsuit, and following declaration of impasse by the Mediator with respect to the Town and the
City,the Town will file an unopposed motion to lift the abatement of the lawsuit no earlier than
March 2,2015.
[Signatures on following page]
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STATE OF FLORIDA
INDIAN RIVER COUNTY
THIS IS TO CERTIFY THAT THIS IS
On behalf of the Town: A TRUE AND CORRECT COPY OF
THE ORIGINAL ON FILE IN THIS
OFFICE.
.
Signature: EY R.SMI LERK
BY !fl A� D.C.
q
Name: DATE
Date: .••'"'o...j
•. •"
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On behalf of the County: '
T� EST: Jeffrey R.Smith, Clerk of Court
Signature: and Comptroller
Name: Wesley S. Davis, Chairman B C} .
Board of County Commissioners of Indian River County Deputy Clerk
Date: BCC approved: 1/6/15 APPROVED AS TO FORM
AND LEGAL SUFFICIENCY
On behalf of the City: DYLAN R E I N G O LD
COUNTY ATTORNEY
Signature:
Name:
Date:
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