BY MARK SCHUMANN

In a memo dated April 26, transactional attorney, John Igoe, of Edwards Wildman Palmer, notified City Manager Jim O’Connor his firm is requesting approval of an additional $300,000 in current and future payments, $100,000 for work done in February and March, and $200,000 for work yet to be done.  With this latest request, Igoe’s firm will be into the city for some $1.4 million.

In describing the work yet to be done to secure approvals for the sale of the city’s electric system to Florida Power & Light Igoe wrote, “it is not possible for us to accurately estimate the amount of legal fees to be incurred between now and the closing.”

In short, Igoe is saying the city cannot count on the latest request being the last.  If the past is any predictor of the future, it seems plausible to expect Igoe’s firm to bill the city $25,000 to $100,000 a month between now an the closing, which is likely not to take place until late 2016, if ever.

Officials I have spoken with tell me the city simply needs to except to haven spent no less than $2 million in legal fees before the dust settles on this deal.

In his memo to O’Connor, Igoe also reiterated his earlier expressed confidence that there is a “path for the City to obtain such support from FMPA (Florida Municipal Power Agency) and the FMPA related approvals required.”

In suggesting a “path” can be cleared to securing approval for the city to exit the FMPA’s All Requirements Project before 2016, Igoe is either being disingenuous or delusional.  See:  http://insidevero.com/2013/04/23/city-may-be-asking-the-impossible-of-its-fellow-fmpa-members/

As some have suggested, it would hardly be unreasonable for the Council to ask Igoe to elaborate on exactly how he believes the outstanding issues can be resolved.  In at least one point in his memo to O’Connor, Igoe seemed to be laying the groundwork for pinning the blame on the FMPA if the deal ultimately cannot be made.  Igoe wrote, “Based on FMPA public expressions of support for the transaction, we believe there is a path for the City to obtain such support…”

If the truth be told, the FMPA would probably be glad to be rid of Vero Beach, the city most inclined to try to weasel out of its contractual obligations.  The challenge for the FMPA, though, is that as much as it might like to drop Vero Beach like a hot potato, it is obligated protect its remaining member cities and its bondholder.  To the rest of the state, Vero Beach must sometimes seem like an incredibly wealthy, spoiled child, wanting, as it does, to simply walk away from its commitments to its fellow FMPA members and their bondholders.

By a vote of 3-2, expect Igoe’s request for another $300,000 to be approved by the Council– no questions asked.  Also expect the $300,000 cost to be added to this year’s electric rates.