Because the county’s water and sewer rates are steeper for high-volume customers, south barrier island residents, collectively, would be charged at least as much, if not more, under the county’s rate structure than they are paying now.

Either way, according to City Manager Jim O’Connor, the city has offered to let its south barrier island customers have county rates.  There would, however, be winners and losers.

County Commissioner Bob Solari, who addressed the south beach property owners last night, did not tell the group the city has offered to match county rates.

Does the city’s right and responsibility to serve the unincorporated south barrier island end in 2017?

Though the city and county signed a 30-year franchise agreement in 1987, which allows the county to assess a 6 percent franchise fee on the city’s water and sewer billings to customers in the unincorporated area of the south barrier island, the two governments also agreed at that time to establish service areas “in perpetuity.”  The service area agreement, not the franchise agreement, will ultimately be the point of contention, if the issue ever goes to court.

What Solari also did not tell the south beach group last night is that the city’s investments in water and sewer infrastructure were made based, not on the 30-year franchise agreement, but on the territorial agreement, which has no expiration date.

While there is room for debate over who owns some of the water and sewer infrastructure within the Moorings, no one questions the fact that the city installed the mains, and has borne the cost of maintaining the entire system for decades.

Recently, GAI Consulting valued the water and sewer infrastructure in the unincorporated area of the south barrier island at just under $10 million.  Even if that valuation is discounted 50 percent, when added back to the cost of connecting the county’s system to the island, the total capital cost for the county to take on service to the area’s 2,000 residents is still going to be $10 million or more, or an average of $5,000 per customer.

Solari also did not address the question of who will pay the cost of compensating the city for its investment in the south barrier island system.

Could the county easily provide water and sewer service the south barrier island?

Solari also did not explain that in order for the county to serve the south barrier island it will have to spend $4 million to $5 million boring under the Indian River Lagoon to connect its system to the island.  With total revenue from the south barrier island’s 2,000 residents likely to be no more than $2 million, some question the soundness of spending more than twice that it up-front capital costs. However, with 60 percent excess capacity, the county’s system is overbuilt and underutilized, and county leaders are eager to take on new customers.

Last year, the county made a run at the city’s Indian River Shores customers.  When the dust settled, the Town Council of Indian River Shores chose to stay with the city.

Will south barrier island residents remain “prisoners” of the city if the March 12 referendum is not approved by voters?

Utility activists Glenn Heran told a group of south barrier island residents they will remain “prisoners” of the city, if Vero Beach voters do not pass the March 12 referendum on the purchase and sale agreement between the city and Florida Power & Light.  In truth, if the March 12 referendum does not pass, the result will be nothing more than a rejection of the specific terms of the proposed deal.

Should the referendum not pass, the City Council will almost surely continue to seek ways of reducing rates. One option is to form an independent utility authority.  A partial sale, which would result in Vero Electric’s 22,000 county customers becoming customers of FPL, is another way of bringing rates down, and of solving the vexing issue of “taxation without representation.”

As it becomes increasingly clear the sale of Vero Electric may not be possible until late 2016, if at all, a partial sale or the formation of a utility authority are both options that could bring rates down quickly.

Will the riverfront power plant site be converted to a park after the power plant is decommissioned?

Heran also assured residents attending the south beach property owners association meeting that the power plant site will be converted to a park once the plant is decommissioned.

There is no plan to convert the site to a park.  For his part, Mayor Craig Fletcher has said he wants to see land used “for something other than a park, something that can make money for the city.”

One idea Fletcher mentioned recently would be to build a marina and resort on what is now the power plant site and the water treatment site.  While there may be a variety of ideas floating around for how best to use the property, there is certainly no official plan to convert the land to a park.