HomeMy WebLinkAbout2017-046 RESOLUTION NO. 2017- 046 ;
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA,
URGING THE CITY COUNCIL OF THE CITY OF VERO
BEACH, FLORIDA TO VOTE IN FAVOR OF THE FULL SALE
OF THE VERO BEACH ELECTRIC SYSTEM TO FLORIDA
POWER & LIGHT COMPANY; DIRECTING COPIES OF THIS
RESOLUTION TO BE PROVIDED TO APPROPRIATE
PARTIES.
WHEREAS, on November 3, 1981, the Florida Public Service Commission approved a
Territorial Agreement between the City of Vero Beach (the "City") and Florida Power & Light
("FPL") which established electric service areas for the City and FPL in Indian River County.
Specifically, the electric service area for the City was defined to include the City itself, the Town
of Indian River Shores, the south barrier island, and other unincorporated areas of the County,
and the service area for FPL was defined to include all other areas of the County; and
WHEREAS, approximately 61% of the City's present customers reside outside the City
of Vero Beach. The City has approximately 34,000 total customers, of which approximately
21,000 are non-resident customers. This percentage of non-resident customers (61%) is believed
to be the highest percentage of any municipal electric system in Florida; and
WHEREAS, Indian River County, as well as several other taxing bodies such as the
Town of Indian River Shores, the Indian River County School Board and the Indian River
County Hospital District, are customers of the City electric system and as such pay higher City
rates. These increased costs result in higher taxes being imposed on Indian River County
taxpayers; and
WHEREAS, FPL has made an offer to buy the entire City of Vero Beach electric utility
system for$185 million; and -
WHEREAS, FPL has stated that the $185 million includes a payment 1) for the cost to
exit the Florida Municipal Power Agency ($108 million); 2) for the cost to exit the power
agreement with the Orlando Utilities Commission ($20 million); 3) for the City's electric utility
bonds ($20.4 million); 4) for a one-time lease payment for the City's substation ($10 million); 5)
for the City's pension liability ($6.6 million); and 6) of cash ($20 million); and
WHEREAS, FPL has also offered employment to all qualified City electric system
employees; and
WHEREAS, the Board, as the elected representative of all residents of Indian River
County, including, those customers of the City's electric utility whose residence or business is
located outside of the City limits, has consistently supported the sale of the City's electric utility
to FPL, having previously adopted supporting resolutions on several occasions supported the sale
by the City to FPL; and '
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RESOLUTION NO. 2017-p46
WHEREAS, the people of the City of Vero Beach have on numerous occasions shown
that they wish their electric needs be provided with rates comparable to FPL,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY,FLORIDA THAT:
1. Position of the Board. The Indian River County Board of County
Commissioners hereby urges the City Council of the City of Vero Beach to vote in favor of
accepting the terms offered by FPL for the full sale of the City of Vero Beach electric utility.
2. 1 A certified copy of this resolution shall be provided to the City Council of the
City of Vero Beach.
The foregoing resolution was moved for adoption by Commissioner O!E3,y,, and
motion was seconded by Commissioner Flescher and, upon being put to a vote, the vote '
was, as follows:
Chairman Joseph E. Flescher AYR
ViceChairman Peter D. O'Bryan AYE
Commissioner Susan Adams AYE
Commissioner Bob Solari AYE
Commissioner Tim Zorc AYE
The Chairman thereupon declared the resolution duly passed and adopted this 1-6th day
of May, 2017.
ATTEST: Jeffrey R. Smith, Clerk of urt BOARD OF COUNTY COMMISSIbs��!1iFgs.,•1
and Co troller OF INDIAN RIVER COUNTY,FLQ11"
By: / By:
Deputy,Clerk eph . Flescher, Chairman y;
C approval date: May 16, 2017 !R!.....-
Approved as to form and legal sufficiency:
By:
ylan Reingold, County Attorney
I
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