VERO BEACH — City of Vero Beach Utilities and Finance Commissions met Tuesday and Thursday to review recent appraisals of the water-sewer and electric systems, giving the go ahead to slow down.
With regard to a pitch by Indian River County to take over the city’s water and sewer utility, the committees voted that Vero should only continue talks if the county comes near the $100 million appraised value of the system. County officials said they would give Vero $24 million to pay off the utility’s debt and then give Vero customers the lower county rates.
On the electric front, committee members seemed to be at cross-purposes with the Vero Beach City Council, a majority of whom have in the past week been trying to move forward a somewhat stalled process to negotiate a sale to Florida Power and Light.
GAI Consultants principal Gerry Hartman made presentations to both committees and entertained questions from committee members, citizens, staff and city council members present as observers at the public meetings on Tuesday and Thursday for a total of nearly eight hours.
Hartman outlined the highlights of three voluminous reports produced by his staff, including a water-sewer optimization study, a water-sewer system appraisal and an electric system appraisal. He went into some detail about the complex issues that would need to be straightened out and negotiated prior to any sale or takeover of the city’s utilities.
The committees Thursday independently came to a consensus that the city needs to settle the details of nine outstanding contracts before a sale price is arrived at with FPL. The contracts include those with the Orlando Utilities Commission over a 20-year agreement to purchase power and the Florida Municipal Power Agency over shared ownership of assets.
“While the nine contracts are being settled, FPL and the city can negotiate on how the negotiations should be set up,” said Utilities Commission Chairman Herb Whittall, as part of making a lengthy motion during Thursday’s meeting.
Meanwhile, the city council approved $50,000 last month to retain a West Palm Beach law firm to serve as transactional attorneys to navigate negotiations with FPL.
The committees had two main concerns — the first being that Vero needs to net sale prices high enough to cover its obligations and the second being the loss of millions in transfers into the general fund.
The electric, water and sewer utility enterprise funds collectively contribute about $11 million to support City Hall functions, recreation, public works and police.
“These enterprise funds are an investment of the city and these returns are the returns on those investments,” said Finance Commission member Peter Gorry.
