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RESOLUTION NO. 2015-132
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY,
FLORIDA, URGING THE FLORIDA LEGISLATURE TO
ADOPT AND THE GOVERNOR RICK SCOTT TO
SUPPORT HOUSE BILL 579 AND SENATE BILL 840
REGULATING MUNICIPAL POWER; AND DIRECTING
CERTIFIED COPIES OF THIS RESOLUTION TO BE
PROVIDED TO VARIOUS OFFICIALS.
WHEREAS, The Florida Municipal Power Agency is a Joint Use Action Agency created
pursuant to a series of interlocal agreements with Florida municipalities to finance, acquire,
contract, manage, and operate its own electric power projects or jointly accomplish the same
purposes with other public or private utilities, and
WHEREAS, The Florida Municipal Power Agency is governed by a Board of Directors,
with one Board member appointed by each member municipality. The Board decides all issues '
concerning each project except for the All Requirements Project. The All Requirements Project
is governed by an Executive Committee, with each All Requirements Project member
municipality that purchases power from the project appointing one Executive Committee
member, and
WHEREAS, most of those who serve on the Board of Directors and the Executive
Committee are not elected by the voters of the communities to which the Florida 'Municipal
Power Agency serves; and
WHEREAS, the Joint Legislative Auditing Committee received Report No. 2015-165 on
March 30, 2015, regarding the Florida Municipal Power Agency, which contains findings and
recommendations, and
WHEREAS, many of the Florida Municipal Power Agency's hedging activities were
found to be inconsistent with other joint use action agencies, leading to net losses of $247.6
million over the past 12 fiscal years, and
WHEREAS, several of the Florida Municipal Power Agency's personnel and payroll
administration activities may negatively affect future rates, including the Chief Executive
Officer's employment contract providing for severance pay and lifetime benefits even if
employment is terminated for cause, and
WHEREAS, the Florida Municipal Power Agency did not consistently follow its own
procurement and competitive selection policies, one of which may increase the cost of bond
issues, and
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RESOLUTION NO. 2015-132
WHEREAS, the Florida Municipal Power Agency's All Requirements Project
agreement to curtail peak -shaving activities are primarily voluntary, rely on self -reporting, and
contain no penalties for noncompliance, and
WHEREAS, certain of the All Requirements Project 'contract provisions relating to
withdrawing members are ambiguous, use a fixed discount rate rather than one based on current
capital costs, and do not provide for independent verification by a withdrawing member, and
WHEREAS, even though the Florida Municipal Power Agency is a governmental entity,
many of the laws that apply to local governments do not apply to the agency, and
WHEREAS, the Florida Municipal Power Agency is not subject to any rate -setting
authority, including the Public Service Commission, and
WHEREAS, elected officials who support transparency and accountability in
government, including governmental agencies, serve their constituencies well; and
WHEREAS, elected officials have a fiduciary duty to those they serve to understand the
value of the assets and liabilities for which they are responsible; and
WHEREAS, House Bill 579 and Senate Bill 840 have been introduced to promote
transparency, consistency, and public understanding and confidence in the operation of the
Florida Municipal Power Agency by the member municipalities and the public, including those
electric ratepayers who are not residents of the municipality supplying electric power but who
are subject to a municipality that is receiving power from the Florida Municipal Power Agency,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, THAT:
Section 1. The above "WHEREAS" clauses are true and correct, and are hereby adopted
as findings of the Board.
Section 2. The Board urges the State Administration and the Florida Legislature to
support House Bill 579 and Senate Bill 840 which provide much needed regulation of municipal
power.
Section 3. A certified copy of this resolution shall be provided to the Governor Rick
Scott, the Speaker of the House, the President of the Senate and the Indian River County
Legislative Delegation.
The foregoing resolution was moved for adoption by Commissioner Flescher, and
seconded by Commissioner Davis, and, upon being put to a vote, the vote was as follows:
Chairman Bob Solari aye
Vice -Chairman Joseph E. Flescher aye
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RESOLUTION NO. 2015-132
Commissioner Wesley S. Davis aye
Commissioner Peter D. O'Bryan aye
Commissioner Tim Zorc aye
The Chairman thereupon declared the resolution duly passed and adopted this 17th day of
November, 2015.
ATTEST: Jeffrey R. Smith, Clerk of Circuit BOARD OF COUNTY COMMISSIONERS OF
Court and Comptroller INDIAN RIVER COUNTY, FLORIDA
By: (�a� Qu-- By:
Deputy Clerk Bob Solari, Chairman
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J ; • •• ! y•, BCC approval date: November 17, 2015
Approved as to form and legal sufficiency:
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•'� ERCOUNr' •f
•'••........+•• By:
ylan Reingold, County Attorney
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