HomeMy WebLinkAbout05/01/2015 (2) May � 9,0 /5
Meda+i o
Holland & Knight
315 South Calhoun Street,Suite 600 I Tallahassee,FL 32301 T 850.224 7000 I F 850.224.8832
Holland&Knight LLP I www.hklaw.com
D.Bruce May,Jr.
(850)425-5607
bruce.may@hklaw.com
April 16,2015
Via E-mail(Schef ,,gbwlegal.com)
Robert Scheffel "Schef" Wright
Gardner Bist Wiener Wadsworth Bowden Bush
Dee LaVia&Wright,P.A.
1300 Thomaswood Drive
Tallahassee,Florida 32308
Re: Town of Indian River Shores--Upcoming Mediation
Dear Schef:
I look forward to the upcoming mediation session scheduled for May 1, 2015 between the Town
of Indian River Shores(the"Town"),the City of Vero Beach(the"City), and Indian River
County(the"County"). As you know,pursuant to the Interim Mediation Agreement entered
after our mediation session in December,the parties agreed to explore a variety of options during
the"cooling off"period in an effort to resolve the issues in conflict without further litigation.
In that regard,the parties agreed that the Town could communicate with other utilities, including
Florida Power&Light("FPL"), that could potentially supply electricity to the Town after the
expiration of the Franchise Agreement on November 16,2016. We also agreed that the City
would continue to explore options to achieve the sale of its system to FPL. In connection with
those efforts,we asked FPL to consider all possible alternatives that may advance a resolution in
this matter. Among the alternatives we asked.FPL to consider was whether FPL would be
interested in acquiring the City's electrical assets within the Town in advance of the expiration of
the Franchise Agreement. In our view,this alternative would have the potential to fully
compensate the City for the value of its assets in the Town in addition to providing the City with
funds to stabilize the rates to its remaining customers. It would also address the Town's concerns
regarding rates and would unify the currently fractured provision of service in the Town. We
understand that earlier this week FPL representatives approached the City Manager regarding
FPL's interest in exploring the concept further.
Although we continue to believe that the optimal solution is for the City to sell its entire system
to FPL,we also understand that the Florida Municipal Power Agency("FMPA")will not allow
Anchorage I Atlanta I Austin I Boston I Chicago I Dallas I Denver I Fort Lauderdale I Jacksonville)Lakeland I Los Angeles I Miami
New York I Northern Virginia)Orlando I Portland San Francisco Tallahassee I Tampa I Washington, D.C. I West Palm Beach
0
Robert Scheffel Wright
April 16,2015
Page 2
the City to sell its entire system. We also understand that a sale of only the portion of the system
within the Town,which is a small sliver of the City's overall system,would not require approval
by FMPA. While we have not seen any concrete details involving a partial sale to FPL of the
City's electric assets in the Town,we believe that this concept could serve as an important
building block in reaching a comprehensive settlement that would resolve all of the disputes
between the Town and City.
We believe this concept is particularly worthy of consideration and further exploration in the
upcoming mediation. A resolution in the near-term would reduce the risk for the City and the
Town of an unfavorable outcome following protracted and expensive litigation,and would
provide funds to fully compensate the City for any transfer of customers and assets to FPL while
also helping it to stabilize its ongoing rates.
I have not yet had an opportunity to fully discuss this issue with the Town's Council,but will
be doing so in advance of the mediation. I ask that you also discuss the potential merits of this
option with the City and give it your close consideration in the hopes that it may help lead to a
successful resolution of the issues between our clients.
Sincerely,
HOLLAND&KNIGHT LLP
D. Bruce May,Jr.
DBM:kjg
cc: Carlos Alvarez, Esq.
Jim O'Connor
Dylan Reingold,Esq.
Floyd Self, Esq.
Wayne Coment,Esq.
Chester Clem,Esq.
Robert Stabe
Terry Deason
MAYOR +ir
BRIAN M.BAREFOOT TOWN MANAGER
ROBERT H.STABE,JR.
VICE MAYOR
GERARD A.WEICK TOWN CLERK
LAURA ALDRICH
COUNCIL.
RICHARD M.HAVERLAND PINDIAN UVLR SHOKLS TOWN ATTORNEY
MICHAEL B.OCHANER l7.OA.IDA CHESTER CLEM
THOMAS F.SLATER
6001 State Road A1A, Indian River Shores, FL 32963
(772) 231-1771 FAX(772)231-4348
April 28, 2015
Via E-Mail to Amy Brunjes. FPL External Relations
Re: Town of Indian River Shores
Dear Amy,
Thank you for attending our Council meeting last Thursday and participating in the discussion about the
possibility of Florida Power&Light acquiring the City's electrical assets within the Town. Your explanation of
the preliminary meeting that you and Mr. Forrest had with the City Manager to discuss the potential for a partial
sale was informative.
As you no doubt noted from the lively discussion at our meeting, our entire Council is frustrated. Part of that
frustration is because we were under the impression that, by extending the mediation period, the City would be
in a position by now to inform us of what we could expect in the form of rate reductions. To date we have received
no correspondence from the City. Our frustration also stems from the City's reaction to your preliminary meeting
with the City Manager, and the City's apparent lack of interest in learning more about the benefits of a partial
sale.
However, I would be remiss in my obligation to our residents if I did not make one final effort to resolve this
matter before stepping into the full fray of litigation. As I stated at our Council meeting, I continue to believe
that a partial sale of the City's system within the Town could serve as a cornerstone for a settlement of our pending
lawsuit with the City, and would mutually benefit all parties. I also share your company's belief that there are no
insurmountable obstacles to a partial sale.
For all of those reasons, I am writing to respectfully request that FPL schedule a meeting with the City to make a
more detailed offer regarding FPL's acquisition of the appropriate facilities of the City that are located within our
Town so that electric services in our community can be unified. I believe that more detailed discussions between
FPL and the City would enlighten the City as to the advantages of a partial sale and the benefits it would bring to
the City, its customers, and our community.
Thank you for your efforts, and we look forward to continuing to work with you and the City toward a satisfactory
outcome.
Sincerely,
;F +"` , J .
Brian M. Barefoot, Mayor
cc: Town Council, Town of Indian River Shores
Honorable Debbie Mayfield, Florida House of Representatives
Robert Stabe
Chester Clem, Esq.
D. Bruce May, Esq.
cn
a)
E
czt
SmL _
coo O M 0o0 71- O
U O• cf) VD OT N VD N N
. cn
O •� 0 cri `O 01 M `p - M
H ct M ' c r- 00 M O
-d M k `O t- o0
'd w
E• U cd
cn
U
N Q �.
C .4 I)
O ell) 5 A
0 c 4° 4°
Er1O, kr) N kr) 00 - -d
ct I:4 '.n M N ,-� O a) u
c� bA �p �n M c7,41
r1 7A-
n 00
Tia: .E-) ,5-4- . r—, in co.' M t- ,--� o0 o6
••1=) M .-� O 00 N M
_�
O O (I. 64 64 64 EA EA EA 6H EA a) a)
: -0 Q 4' I'
� �
O a) a)
ON O
O O N cn cn
4 T. 0U
J U O
N
•) Lip �.
CD _ U N 0
.,_, U -
A/ —Fd N '' V'
— 0 r +
= oz 'c0 0 0 0 0 0 0 0 0 0
•. j -., O 0 0 0 0 0 0 0
PC to .a 0 0 0 0 0 0 0 0 .0 -0
I"( '3 U M t- 00 O a F4
la' IF4
p O U EA EA EA EA EA EA EA EA
O ,6
O
H
0
r-,
c8
a)
.,"
O O ci N N ,- . 00
O a)
Cct M
a) 0 M OT d: OT 00 N
vp
r-- • 00 ,--- 01 d- M c.)
,--4 ,- 1 ,--4 N M d' 'i
.- (1)
a)
1) c cc'GJ U O
N W N 773 (
cil
a) O� o Q a
O .-1 Cl Cr) t� N t� - CU 0
+� a) 00 ,-1 d 'N ,- , 00 N >
,--1 .—+ ,- ( N N MCU O .
r/1
vl ' O s.,
4-4
a_) U cu a)
a�
O ma' CD
s•1 tip C:) C)O N N O O 00 1.••1y
M il
00 O M 01 M `C N a)
C 5 - ,- , 11 — .- 1 N N 0 b 'C
4F3 1c73
U .4
a- ' SEE
'� 0 3 E = o e
a. 0 n v
G 78 " Cl.)40
d: N ,--1 OT 00 M v v
2 P-1 8 kA
a.i •- 4--r O0 , . ,-- ,-- ,-- , . 0 Q, U.,
I.) .-,
W 134)
v b d' Z A5
Pi Ct N 64 c c
= cu
Ct O N c1 0 0
CI ct D 0 cn 0 0 0 0 0 0 0 0 2
s-+ , y 0 0 0 0 0 0 0 0 y
.� 0 0 0 0 0 0 0 0 "fl
cu
Il 0 •E -b H O O 0• 0• 0• 0 0• 0• 0 a�
0 0 0 0 0 0 0 0 U cd C
G 0 0 -� 000000d- OE
O 3 cd M d• '• `• O D• D O• ; O_ cd Oa O>a
3 C..) (4...1
1 'd $em, fs4 64 64 _ 64 64 64 69
U al al M
0
17
-
$.. 0 A�
H H H w Q -- N M
_ - .� Vim o» !'Zcy - in.
viffi r yN w$>. -� 5 -U_»39p ` �W dmyam- .r.z q�m wI
��� -3-EL
_ cEm amu 1=/1 LL um �c ��� 6��.' .`e`'t .. E_ WEc :Logs..- 'A'«$eSamEQ«c�m'rw .a> 2,
=a"-u rJ no'$�"-5m - nr Q 0 y�'� r a nt yofi M .y _`-cgv 8 0171Nc o nm$o P_h "zoo» - _ - 4erc _ k�
ot"" _ og W Q�b paws
a¢m o Nw rE$`m"'o _ - a"" c F`ea5" _ - mg.240» - of
p� _ C.1 FF - i 3 _ gy�fam "oYm -"9 =`;oo:;, z
Fp m _ - -E� f" Via � rc'= g cto'�a-.¢g !!1
.l . wg; WF =m r? o � o i twoq _?og w _ - adoo.`o- ,.,z» co4im - ci«?pt�'x uoi
ayogm°E atm zry -mZ&a - u xoNa Yom ooa°_ _ q� '�m8«»!ti r11 - Na _ Araoo°o
oea _ zy '.'--Bi
- o$=`�"'v ceo mOtc«'tea � � - i«,n 'omirz zo g�LL w
-0$5 an w - - c 0_,7,; am F:z n mc« d nuS A2- « °e pad -y
wyQn' Mg oo`w - 0d aah z?umigt uuaa`Soat T-cz�m�$`»5�oa�gtEn°a Eo= cam_'" -m�ggf: 0 to l.,«'»° n
p o 3LL ow yy »'" - r s:21 ooz=; �� .,. z :o¢�w3��3€rs�o���AQzr3Snia$im 3p�='tm$'
4 u z.;°> % aC o ..zo K'---
E o_ Y' w g > _-f, S `c ao.4 ¢ °oSmmm.: a ;� aBm
z'.
r� > mzN,' oaz>r c�.m` E'«` ':'` Eng s�a�. m '.an E ,s3;1-.“..477,f,
-r N>«E 04-1-.1%..%0:8':
yrmmEn ua _ o f.L
x o °a .ao o « fin« w �- �a�W.m E.iingi aim ▪ E'
�aac c 'anr u zwz cm � .A » _ $ a` zo`o:a`o�coi v E c '�`N"ww n3EE -EEvnaopvm .c gtE - Em°m
¢. .o rZ�;,xm�5 `ciLA".2 tion;o''z Et^> €mow' -Fu« -% A R °o.E»o >Ew n no iu
o�E22 a�«r _r3razu % Ea a n.'a„A7mo1P i oZ.a a w • m -Em�o.ox gomwvyo `om�E :t°U« o
p _ zw wm= no `H o�7._ �oa»3oi»L u E$ - A'°%lei—„°.9i ¢a c”; r, m% «o Z» •. m _
o F z amu E'ca�Ez� »aatgm E wcm. gzo$ o Qono t -ym ..E«,"m _ «1,cn$'�aomw�
a3o a'oo o �oT>mmm. Sma $ `oo Ec°n
rc, 1 z�U'=iao �tm I oEP%21 ooE35_ wg0, —L---LLpu„ z 3mE o;. 41 oamc° x«o_a g$«'o=i
z oo x�y o�o`�$«a«S's�;nwmum omo«��- K -t« >d o mw m -P,7 ;EE
o x ' *g ocmm - :sT °t
u z �_ m - `m.
mrU¢LL» m Wo - °b« mE m-3>y YE« v tFoz� o ~x zs Y, `o my .�W,»Am°a o`ocmcm S. n$
o�o_v 3N`wi3`o�°»3E.. o�y$ oz` o �_Z ¢. N o ,»,w 'o _ eW=v°«.
rNEwrz m'ggt �rm"w"1 E '08 .2- E _gi 'Zwuapw1 a a go.u+ »a ilggG _ oxLL i Gccooy o5i
to z "_� 8`-_mL ‹2.:.74`4-g.,2-.‘1,2'4,0:2f2
ma EA2 3Tn,l'c6w w o _ oa ' o'o- ¢2%5 »¢ E =» .mm �un �,"-a« E "`-o
1-'41-1
mm a 4 axy - a§�- q�'‹2.:. - c�`u _ - thy.c`« oE.
u =y -�=g3 �_ za mm «a _tt _r oas c mi z e,ada�z ' 'm6�'^a-m _ uiao��m2v EEm`oo.`«mag
~
'2''''
JoN >� 8 9 X� oA Wc? goo$3S od'« 'niA .. ?pzB , l <.`44ozz c� o ram EEM c.E�cum> Acc A®_m �2 ;Evmcoo Sd$mm
_¢ _ a ` a iUpa� w � aa�.cm."' 30 o 'ob >av»E E2 nv i ' F'«oa'>�'-'mm E. �a3 c�Ly3a=S.'c
i° r x m u >os�_' E W E -+z 3"'2>‘''._
_ N»m8dror z �- x m - » y
z1p<'LF z; 3 m iia _ mE«c9boc_'oc a'q`m E« 1E cg '?a.
Qa d a oW o �.. ; �'> ` mummtC � a _z. g�EQ Q a -'e.
ce'L s . fo 11 -
drJb
. adEE ow cau. sE • - _-om EoN«�c°c¢v c om 3tnT�
p v a '1217'2141I14111141- 4'" "
z ; a v"Sio om"u'¢t°ga onwo>i� z ; 1; 3 .o E> > 'OmI ,:r2,1§ 2-58.,--'a3x.64
o'cao m "oo�ra a .>-.>r �o
u o` a n _ « >3N .fmvoi`1 RI o .» oo »_ o oxwox
'zl p x°e ¢ Y r %.04 _��'m�o$5�� �:Fw�>�� ��v=`"�rQ. zm�LL
� E..z:i `� f ,;'x mA I F e �„ 1;7 . mE ac» Joao�F'�' o Ea 917Tt'< F soma
zmw oo ra4---F-`.� = u _ oma' 9-``;z � �
p zz ox ,, rm $-I u o,g o wry =0«,`002 ma»�mi A». o` am:S'v »s3_¢mwmza z E;'^r,�i Q~ z
,�o¢w a r < 3 z � 1-"`�' c ." «a o` r `o a 3d-a
�onm¢No.x�'g'rr a. «ca S» o.z n> . '''or? � r� 4;i1; v x 3qLLA o„=_:= �aE 3 t,ao mYo`o-' E E or F�
owoa.m x Ara>'az °- v;x.g o �;tc j 2,u .2 E to°muco,_ 03� �E-cc«` E° E rz --,m, E _«ox iF, �ocm
.no3 g2V 'm 2"6 IILz3�_y ayQ 2o2oo�. oy "mem o"m;, - i --q�«'o t: aox a o ,,gal�-FLL�
a.
u E oo>Zwwoo .¢a A gm„ u�� o -- LL w • . o E 8»"u sr oiooza a -.
F mra�mm�� z 'a �S m r
n z ormaFsoomc z - a r"ILLcS z� o. r a'o `- z r rz w o0 0o r 'S
� z _ r .1'22
� wz� � a »r. mo o�u 0 zrFo.zr F ao zoo mFa _.: Ss o
z z(°S ziaxr-2:.c ` t o f cSm.g cE 5 rrf.wm> � r gg o o ., �- o
OK,'
8`V -C coli zwo -arm m .d ' E" QLL�u o E YFaoj� zow°.o c 'a�w r ¢ E. v�
p 2. -o ecw oz o o »w-u -t z" i3 io 02< g w Fe,xomoa r x yrza gird
F S z �fo>� z u�t `oos�o '"o -o`;�w 'mid _ �3�gm zawizu -„33="'?za� zea x�s�'na112
LLS �"x2z Wr f' 3� __ - o m, c agt=ig oo3amr_o 3 ,�c c'
F Esu 3 a mE_o �n mm o �m r rwu"�,ou o m
,y�. _ uo � Fu¢a p mz. o o »rte o« aE��o rxa w'u iota mE 3• E:zAr uowr”-¢w ; o¢a�.`_' � �e "
o y ' rgaz wzUW_ zuIT-5 mo �t�o»m°O- " E3» :E`2:;s- mi¢woa-2 t13,7".'
13 ooi� �fomoo�"Oxw; E LL t'n EPR as�=ro'
a ru--f a F z2oo 'z� f2. z t �.oAm c:»a'»Ao mu� „q.ti:aLL- rzc-- z-« o usrwo Qu.Fw nwu zrma doom o LL
m a
> z*.> {;.. ouu l '4'3.
oa i r«� m u wz. r rzww o o¢ _ _ - @ `o: z ca o ra zoz 'o • »03
A ° xoo w c i o. o oxQo Zp> or c - m_ � oo� � i �w 0
:7 t xF`-' 3 LL- r rm o mo z a ”
G r ;w of m«~ rrr >rf E r - Z �.wo Z aws 65 mLL f mw -%- ]QO N .. F-p
z or oa cq E ':k=zpao mwo mc9aEra gv..52imoa cka. fwr r `oa mm x uoc4o oFw EY�a :
I" ,mg%m aEa0';�¢-=` ,7, u°zu »o em'=�zar z..i x-,,p,- a�a so ` _E swLL� ,,, Wim E,wq �.
Zr-.. >n� m _oS:E 3wxfo mo'o2d rao. 3 o3m2roc�i: oo _ m°`3zd��»o °.ga �= $ffi zo7 o VI
'", a
w » ..- r-64-'y o Q a=$ w z' o` E mm
ca z -» E_ 7e>-maoow rcwo°mo oxc owswz2¢u" oc� Emu ro 8 " z r
z sx a "' wFw o ra moot nzmH c�$�LL"dsz�''Q�mn^'S,u°.�r="aw 3n� 'g¢ �z w�': «Fa".
G o »3a'LL"° a�Aoeoo B- ou�f LLoQoozQ«omm « LLPa zr r
i '2 5,-F-. "-
».«»AQo