VERO BEACH – With the Finance Commission’s unanimous approval of the proposed sales contract between the city and Florida Power & Light, the city moved one step closer today to completing the deal.

A number of hurdles remain to be cleared, not the least of which is the need to convince all 18 member-cities in the Florida Municipal Power Agency’s All Requirements Project to give the city a waiver enabling it to leave the group before late 2016.

But this week’s developments – unanimous approval of the proposed sales contract by both the Utilities and Finance Commissions – were important, if not unexpected, steps forward.

Among the questions raised during today’s Finance Commission meeting were issues related to the three-year closing window.  The agreement essentially fixes the sales price, while allowing for a closing to take place any time over a 36-week window, from Jan. 1, 2014 to Dec. 31, 2016.

Chairman Peter Gorry cataloged additional expenses and risks the city will assume if the sale cannot be closed in early 2014.  The essential terms of the agreement, he said, were negotiated assuming an early 2014 closing date.  Though the deal now allows for a closing as late as Dec. 31, 2016, the key provisions in the agreement have not been altered accordingly.

For example, Gorry said, the value of the Orlando Utilities Commission’s offer to assume the city’s obligations to the Florida Municipal Power Agency, and its agreement to let the city out of a long-term power purchase agreement could reasonably be recalculated based on the a later closing date.

At its meeting Jan. 18, the Finance Commission voted to recommend to the Council that alternatives be considered to turning over the former postal annex site for a new FPL substation.   Those alternatives include letting FPL build its substation on the power plant site, a move that would save the city perhaps as much as $8 million, or giving FPL land less valuable than the 4.6-acre former postal annex site located on the southwest corner of 17^th Street and Indian River Blvd.

The deal will now be considered by the City Council in a special workshop Feb. 12.  Following that meeting, the Council is expected to sign the deal Feb. 18.  From there the final decision will be placed in the hands of voters in a referendum to be held March 12.