The Indian River Neighborhood Association endorsed Vero Beach City Council candidates Amelia Graves and Richard Winger – important news “blacked out” from the pages of Vero Beach 32963.

COMMENTARY

MARK SCHUMANN

It what can only be seen as an attempt to influence the outcome of the Vero Beach City Council Election, the island weekly withheld news of the Indian River Neighborhood Association’s endorsement of Amelia Graves and Richard Winger, while it prominently reported Tracy Carroll’s endorsement by two members of the Indian River Shores Town Council.

The barrier island’s equivalent of “Pravda” also ran a front page story creatively written to give the false impression that the fate of the sale of Vero Electric to Florida Power & Light still rests in the hands of the Vero Beach City Council.

Though the City has a signed, binding sales agreement with FPL, a contract that provides either party with the right to require specific performance, the island weekly, along with a number of utility activists with whom it clearly collaborates, continues to repeat the false claim that a new City Council absent Tracy Carroll can and will kill the sale.

Second, though the editors of the island weekly found space to report that Indian River Shores Town Council members Tom Cadden and Jerry Weick are endorsing Tracy Carroll in the Vero Beach City Council election, they failed to report that the Indian River Neighborhood Association is endorsing Amelia Graves and Richard Winger.

The island weekly even gave Cadden an opportunity to repeat the false claim that the sale of Vero Electric to FPL essentially rests in the hands of Tracy Carroll. “This whole thing can go down the tubes,” the island weekly quoted Cadden as saying, referring to the sale of Vero Electric to FPL.

The paper also reprinted Weick’s claim that Vero Electric’s rates are 40.4 percent higher than FPL.  According to the Florida Municipal Electric Association’s latest rate comparison, FPL’s rate of 1000 KWH is $93.23 compared to Vero Beach’s rate of $128.43.  Surely Weick knows the relevant comparison is the percentage FPL’s rate is less than Vero Beach, for that is the percentage electric customers will save.  That number stands at 27.4 percent and will be less, at least for City of Vero Beach customers, once a 6 percent municipal franchise fee is added to FPL bills.  Further, according the the Palm Beach Post, FPL base rate for 1000 KWH is set to increase to $100.25 Jan. 1.

Given Carroll’s affinity for short-term rentals, one has to wonder if Cadden and Weick would welcome her on the Shores Town Council.

If Cadden and Weick are going to publically endorse a candidate for election outside the Town of Indian River Shores, and if they expect the residents of Vero Beach to give weight to their advice, perhaps the two Shores Town Councilmen would be willing to make public any securities position they may hold in FPL or its parent company, NextEra Energy.

In presenting a story on the Cadden-Weick endorsement of Carroll, while remaining silent on the IRNA endorsement of Graves and Winger, the island weekly is selectively presenting information.  Their purpose can be none other than to further the candidacy of Tracy Carroll by creating the false impression that City Council will have the option to refuse to approve revisions to the sales agreement, even if those changes do not have a negative financial consequence on the city.  This claim is pure propaganda, and could not be farther from the truth.

Transactional attorney John Igoe made this point perfectly clear to island weekly reporter Lisa Zahner when he wrote, “City Council members have the discretion to vote any way they wish on any proposal, including proposals with material changes to the proposed transaction.  The City’s obligation to act in good faith under an existing enforceable agreement remains an important consideration and should be taken into account in connection with any proposal for changes in the existing structure or amendments to the Purchase Agreement.”

To be sure, it is at least remotely possible the electric sale may not come together, but if that unlikely scenario develops, it will not be because of any decisions the Vero Beach City Council can or will make now or in the future.  Quite simply, the deal is in the hands of the Florida Municipal Power Agency, FPL and state and federal regulators.

“There is no ‘opt out’ for $5 million on either side of the Agreement between the City of Vero Beach and FP&L.”

“The City cannot vote to pay FP&L $5 million to terminate the Agreement.  Each side has the remedy of specific performance, meaning either party could get a court to require the other party to perform its obligations under the Agreement,” Igoe added.

The island weekly has never let facts stand in the way of a good story, so don’t expect the pro-Carroll propaganda to let up any time soon.