December 12, 2019

Honorable Members of the Jacksonville City Council

117 West Duval Street, Suite 425
Jacksonville, FL 32202

Dear Jacksonville City Council Members:

In our letter of November 5, 2019, the Jacksonville Civic Council called for transparency and clarity of process regarding the proposed
disposition of JEA. We also stated the need for a full review of the City of Jacksonville’s financial situation. In light of recent revelations
about the Invitation to Negotiate (ITN) process, the Performance Unit Plan (PUP), and management issues at JEA, we are writing today
with several requests.

First, we would like to thank you for your current efforts to provide transparency and accountability with regard to the JEA situation
and ask that you continue that process. Secondly, we respectfully request that you take steps to mandate a traditional Request for
Proposals (RFP) process rather than an ITN for any possible disposition of JEA. The RFP process provides a proven mechanism for the
disposition of city business with transparency for citizens and bidders alike. No city asset – especially one, the size and importance of
JEA – should be disposed of without the illumination of close scrutiny from the taxpayers who own it.

JEA and the current administration have not made a credible business case that the utility is in a “financial death spiral,” and it appears
clear that JEA is utilizing the ITN process to circumvent transparency requirements. If the City of Jacksonville decides that pursuing a
potential sale or reorganization of JEA is appropriate, based on the community’s financial needs and the projected benefits of such an
action, then the City – not JEA – should utilize well-established procurement procedures such as the RFP process, which requires public
community meetings and hearings by statute. We ask that you review the current ITN process – specifically, why it was chosen vs. other
processes – and clearly outline the authority of the JEA Board versus the authority of the City of Jacksonville.

Third, we request a thorough review of the Performance Unit Plan (PUP) that was approved by the JEA Board in July 2019. Such a
review should make clear the genesis of the plan (i.e. who devised it), how it was vetted for legality, and how it was approved by the
JEA Board. Even if the JEA Board abandons the PUP plan, a thorough review of the plan and the JEA Board’s discharge of its fiduciary
responsibilities, to the ratepayers of Duval County is warranted.

Fourth and finally, we encourage you, as our elected representatives, to ensure that our community remains not just solvent but
financially strong, resilient, and able to meet the needs of the future. This would likely require a definition of the City’s long-term
revenue needs and a study of possible additional funding sources, if those are required.

Thank you for your hard work on behalf of the citizens of Jacksonville, and your thoughtful stewardship of our community’s assets.

Respectfully,

Michael Ward Bobby Stein Jeanne M. Miller

Co - Chairman Co - Chairman President & CEO
JEA Subcommittee JEA Subcommittee

  31 West Adams Street | Jacksonville, Florida 32202

P 904-354-0530 | www.jaxciviccouncil.com