BY MARK SCHUMANN

VERO BEACH – More than a year of negotiations between with city and Florida Power & Light culminated today in the signing of an agreement intended to transfer ownership of the city’s electric utility to FPL sometime between January 1, 2014 and December 31, 2016.

The deal calls for FPL to pay the city $111.5 million in cash, plus other considerations.  FPL’s has valued it’s offer at $179.6 million.

Opponents of the deal, including Councilmen Jay Kramer and Richard Winger, say they are concerned the sale leaves the city with too little in cash.  Finance Commission Chairman Peter Gorry and city staff have estimated the city will net $3 million to $4 million from the sale.

And additional $30 million in electric system reserve funds will be available for the city.  One proposal receiving broad discussion is a plan to use the utility reserves to restructure the city’s pension fund.

Before signing the contract, Fletcher thanked Carroll and Turner, utility activists Charlie Wilson, Glenn Heran and Dr. Steven Faherty, and FLP representatives for their work and support.  Fletcher acknowledged, however, that there are still “ancillary” issues to be resolved.

Kramer and Winger, who were not present at the signing today, remain convinced the deal cannot close until late 2016, if at all.  The “ancillary” issues Fletcher referred to are contractual obligations the city has with the FLorida Municipal Power Agency.

Both councilmen continue to insist all Vero Electric rate payers would benefit from lower rates sooner, if the city moved to sell it’s 22,000 county customers.  Such a move, they say, would not face the same contract hurdles as will a full sale.

At least publicly, Fletcher, Carroll, Turner and FPL representatives remain confident they are on the right path to a January 2014 closing, though the contract was changed last month to allow for a three-year closing window.

A front page headline in the Press Journal Saturday read:  “No FPL sale until 2016, if at all,” underscoring concerns that the unresolved contract issues may put the deal in jeopardy.  The city’s transactional attorney recently told the Council is faces an “arduous” task in resolving its commitments to the FMPA.