VERO BEACH — The Vero Beach City Council Tuesday approved a pair of proposals for serving the Town of Indian River Shores with water, sewer and reuse water service for the next 10 to 30 years.
The city revised the proposal to address a handful of objections Shores officials had about rates, terms and fees.
The deal now on the table offers Shores customers the same rates for potable water, sewer service and reuse irrigation water as Indian River County Utilties had offered to charge the Shores should the town switch and go with the county.
The 3-2 vote with Mayor Pilar Turner and Councilwoman Tracy Carroll dissenting, came after a failed vote to table the issue and send the proposal to the city’s Finance and Utilities commissions.
Turner and Carroll both said they had not received adequate financial analysis to make a decision on such an important issue. Over a 30-year period, the franchise agreement would be worth between $90 and $100 million in utility business to Vero, inclusive of reuse water sales.
City Manager Jim O’Connor urged the council not to delay approval, as the Shores was set to meet on Feb. 23 to consider the Vero and county proposals.
“I think our timing is being dictated by our customer, which is the Town of Indian River Shores,” O’Connor said.
The Vero proposal would tie city rates, beginning on Oct. 1, to Indian River County rates for the duration of the agreement, which would be 30 years in 10-year chunks with renewal options.
Vice Mayor Craig Fletcher said he was opposed to losing control over the rates the city could charge, leaving that to the county to set rates.
“I have trouble with thie county saying that I can’t adapt my rates, we would relinquish our rate adjustments to the county,” Fletcher said.
But just a few minutes later, Fletcher voted with Councilmen Jay Kramer and Dick Winger to approve the proposal which did exactly that.
Mayor Turner pointed out that the county could squeeze the city’s utility budget should county officials be able to lower rates for their customers.
If the county pays off their bonds over the next five to 10 years and they lower their rates by 10 percent, we’re stuck,” Turner said.
The Indian River Shores Town Council will have a special call meeting at 9 a.m. Monday, Feb. 20 at the Shores Town Hall.
