_add-on a)Add-On Item a)
Sponsored by: Mayor Stoddard
City Commission Meeting: 04-05-16
RESOLUTION NO. _________________ 1
2
A Resolution of the City of South Miami, Florida, directing the expenditure 3
of money for the cost of expert witnesses in opposition to FPL’s early cost 4
recovery and concerning a matter that is before the Public Service 5
Commission. 6
7
WHEREAS, each year, Florida Power & Light Company, (“FPL”) is authorized by 8
Florida's Public Service Commission to charge yearly nuclear cost recovery dollars to pay for 9
planning, licensing, and eventually construction of its proposed nuclear reactors. To receive this 10
authorization, the utility must provide an annual feasibility analysis of its project, demonstrating 11
that the proposed power plant will be cost effective for its customers and that the utility intends 12
to continue with licensing, etc.; and 13
14
WHEREAS, the City of South Miami has partnered with the City of Miami and the 15
Village of Pinecrest, Florida in connection with the Early Cost Recovery matters before the 16
Florida Public Service Commission. In this regard, the City of South Miami has previously 17
committed $13,000 for the engagement of an economist by the City of Miami for the purpose of 18
challenging the assumptions behind FPL's feasibility analysis and present alternatives to the 19
Public Service Commission; and 20
21
WHEREAS, the actual cost of the City’s share for the Public Service Commission expert 22
economist was $11,338.36, which left a balance of $1,661.64; and 23
24
WHEREAS, the City of Miami will be litigating in this year’s nuclear cost recovery 25
docket at the Public Service Commission and to further that effort, plan on re-engaging the 26
expert we used in last year’s nuclear cost recovery docket whose testimony was given much 27
weight and credibility in challenging the reasonableness of the cost estimates FPL is incurring 28
with the Turkey Point Units 6 and 7 project; and 29
30
WHEREAS, the City of Miami hopes to engage an additional expert to supplement and 31
strengthen the previous testimony of the expert economist that the City of South Miami and the 32
Village of Pinecrest jointly funded with the City of Miami; and 33
34
WHEREAS, as of the end of 2015, FPL customers have paid more than $241 million 35
dollars through these rate increases towards FPL’s anticipated construction costs, which funds 36
FPL gets to keep, even if FPL does not ultimately build the new reactors; and 37
38
WHEREAS, the City of Miami expects the cost associated with retaining this expert will 39
range from $35,000 to $45,000 and have requested that the Village of Pinecrest and the City of 40
South Miami will once again support the City of Miami in challenging FPL’s petition before the 41
Public Service Commission by covering 25% of the costs associated with retaining this expert, a 42
commitment which would range from $8,750 to $11,250; and 43
44
WHEREAS, the Early Cost Recovery monies that FPL is requesting for the Turkey Point 45
Add-On Item a)
Sponsored by: Mayor Stoddard
City Commission Meeting: 04-05-16
6 &7 project are being sought for planning and construction of transmission lines though the 1
center of South Miami; 2
3
4
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY 5
COMMISSIONERS OF THE CITY OF SOUTH MIAMI, FLORIDA: 6
7
Section 1.
13
The City Manager is hereby instructed to expend an amount, not to exceed 8
$11,250, from account 001-1500-514-3450, City Attorney’s Expense, with a current balance of 9
$79,232, and to pay the City of Miami, or at its direction, for the cost incurred by the City of 10
Miami for expert testimony regarding the litigation in this year’s nuclear cost recovery docket at 11
the Public Service Commission concerning FPL. 12
Section 2.
17
Severability. If any section clause, sentence, or phrase of this resolution is for 14
any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall 15
not affect the validity of the remaining portions of this resolution. 16
Section 3.
20 Effective Date. This resolution shall become effective immediately upon 18
adoption by vote of the City Commission. 19
PASSED AND ADOPTED this ____ day of _______________, 2016. 21
22
ATTEST: APPROVED: 23
24
_____________________ ______________________ 25
CITY CLERK MAYOR 26
27
READ AND APPROVED AS TO FORM, COMMISSION VOTE: 28
LANGUAGE, LEGALITY AND Mayor Stoddard: 29
EXECUTION THEREOF Vice Mayor Welsh: 30
Commissioner Edmond: 31
_____________________________ Commissioner Liebman: 32
CITY ATTORNEY Commissioner Harris: 33
34
35
36
37