GUEST COMMENTARY
JAY KRAMER
In politics I quickly learned early on that there are things you would like to do and then there are things that you can do. When we think about the electric utility issue, which we are all probably tired of paying the high bills and hearing about it, perhaps the motto of the new City Council should be “lets actually do something about the high bills”.
After spending three years on failed referendums, letters of intent, contracts, and I believe we are up to plan D or F now, I think it is time to look at the things we can actually do. Interestingly, if you look at what Florida Power and Light is doing, they are naturally going through all the options they can to get their shareholders the best deal. Shouldn’t we also be going through all the options we can to get the best deal for our ratepayers?
So what are the options we can pursue now to get the rates down? This may be a good time to remind people of the options for lower rates that were available to us and how easy it could be to do them.
Decommission and dismantle the power plant would lower rates and free up the land. This idea was put forth early on, though the option was not pursued because it was not part of the current FPL negotiation. Additionally, it was said that the Orlando Utilities Commission contract specified the city maintain the power plant do to transmission constraints.
In reality, the OUC contract is a supplemental power contract. The power plant is only when necessary, if available. Under the OUC contract, the city is not obligated to operate a power plant.
The transmission constraints that make continued operation of the power plant necessary could easily be resolved through use of the Emerson tie line, a currently unused transmission line that could carry all our power needs.
I have had the technical drawings examined that prove this is a viable option. But then, I think one of the real motivations behind maintaining the power plant was maybe to keep the rates high. These higher rates, of course, have served to help FPL politically, giving the company more leverage in its negotiating and continued support for the sale. If we really wanted the rates down why would we not have already decommissioned the power plant?
Second, we should finish up the optimization study like we did with the water and sewer system. Amazingly, this was a process that took less then six months and resulted in a much stronger financial position and has helped to kept water and sewer rates down. We have been fooling around with this FPL issue for nearly five years, why not spend six months simultaneously optimizing the system? The result would be lower rates for everyone.
We could also begin to give serious thought to a partial sale. The partial sale is probably one of the more controversial ideas presented. Why are the County residents are so adamant about sticking it out another thRee years paying higher utility bills in hopes a full sale might happen, when they could easily leave Vero Electric now?
This idea of a partial sale is probably more of a political football than anything else. It just shows how FPL has used its influence to push its agenda above everyone else’s.
If the partial sale gets the county and Indian River Shores customers on FPL and gets the city significantly lower rates without raising taxes then where is the problem? The problem is that from the beginning it has all been about FPL getting the best deal, not the county residences or the city residences getting a good deal. It has always been about FPL.
There are several other options we could have explored as well, but they always meet the same obstacle – FPL. I can only hope that this year we have Council members who will keep in mind what their voters want – lower rates and to end this fiasco. Let’s focus on what we can do, and not just what FPL wants.
Indian River Guardian 
Wow!!!!!!!!! I can not believe it. Maybe we now have three city councilors who care and will vote for the city resident taxpayers interest over the resident non taxpayers non owners of our services.
With a partial sale, would the county residents be responsible for the attorney’s fees for the transaction? Just curious.
Debbie-Kay, I would think all 34,000 customers would share in the transaction costs.
All I can say is that the patient is, and has been on the operating table for many years. Taxation with out representation is still in force and the reality of the situation is that the Doctor will die before the patient. The delay of this situation just postpones the inevitable for the City and its taxpayers as well as spreading ill will amongst all IR Shores residents against the City of Vero Beach! Let’s start 2014 off on the right foot, stop “screwing” your neighbors and figure out an honest solution to resolve your own debt!
The one-sided deal., City residents pay taxes which fund our parks and beaches to name just two elements of our excellent Vero life style. County residents get a free ride on the amenities paid for by the taxpayers of the city. So who is getting screwed? I will worry about the ill will of IR Shores residents when they pay my taxes which allows them to use city amenities without charge. The money has to come from somewhere. If IR Shores is unhappy with the situation they should push for a partial sale or pay a fee to the city every time they use a city service or park. Any solution must be a win/win solution and not a one-sided deal.
It is easy to see where you are coming from as a resident of the City of Vero Beach, but don’t be so short as to think that the residents of Indian River Shores are using your beaches when we have our own, or your services and amenities. We have great services as well and they are top notch. I do know that our budget is not overloaded with the debt that you have for pensions and the overstatement of employees that are needed to run your city. I as you, would also be upset when the thought of the “Indian River Cash Cow” is restless, tired of “floating your boat” and has had enough of your overpriced electricity. You as a resident of the City will have to face the day when this happens, and then you will be faced with the burdens of the poor decisions that sold your beautiful City out!
Larry, do you ever attend events at the Riverside Theatre, or the Vero Beach Museum of Art, or Veterans Memorial Island? The Theatre and Museum, for example, are community assets of almost inestimable value, generously supported by many Indian River Shores residents, and made possible, at least in part, because the City of Vero Beach has been willing and able to lease the underlying land for just $1 dollar a year. How much, may I ask, does The Indian River Shores Town Council contribute to the maintenance of Veterans Memorial Island?
Mark, you know that I patronize Riverside and the museum; my patriotism on all national holidays takes place in River View Park Sebastian where Ernie Heaton and I built the Monument to the Four Chaplains. The Veterans Memorial Island’s board had its own ideas as to why this monument would not fit in its park while the citizens of Sebastian welcomed it with opened arms. I am glad that it did work out this way and that is the place for it to be. Are you aware that Stan Mayfield, Jim Gabbard and I, got Memorial Island their $250,000 grant. Yes, Vero has many amenities, and they should not be paid for by Indian River Shores or its residents but as you point out supported. Your retort to me has nothing to do with the poor management of the City and excessive electric bills that I receive every month. Prior to the November election I questioned the “done deal” of the electric company, Is it still a done deal?
I do hope the Dollar a year is able to continue, and I will continue to support the Arts and the theater and all of the great restaurants and hope that the “beautiful City of Vero Beach” will continue to be around for all including myself and my family to appreciate.
Larry, as you know there are many steps to acquiring grant money. The city council, of which I was a part at that time, backed the idea for grant money for Memorial Island. I suggested to you to speed up what had become a stalled idea before the Legislators to compose a letter based on the educational value to children. that portion of the idea is what appealed to the legislators. Tom White, Sabe Able and myself presented the idea along with your letter to Stan Mayfield, Mike Haridopolis, and Gordon Popple. Final stamp of approval came from Ken Pruitt the Florida Senate President. The city manager, Jim Gabbard backed your idea but city council had to approve it to go before the State Legislators. In fact – we had to hand carry the idea because our Representatives did not have it in their agenda.
Larry, you know how hard you and I and others worked on this project and I am very thankful to all involved who make this happen for the benefit of future generations.
1.Patrons of the Arts, pay fees. City banks, businesses / restaurants etc. are supported financially by county residents. Should county residents boycott?
2.Ken Daige, it’s Ralph Popple, not Gordon. AND, no back patting. Humility is good.
3.Decommission and dismantle the power plant as Kramer suggests.
4 Yes, tie into the Emerson Tie Line, as Kramer suggests.
5. Sure, have the City Council spend six months simultaneously optimizing the electric power issue,
as Kramer suggests
Kramer,what assurance do you have that a partial sale would get the “city” lower rates? Spell it out.
Kramer, your statement ” the City of Vero Beach maintains the Power Plant and keep the rates high to help FPL politically” How is that?
Kramer, who says that county rate payers are adamant about a full sale? Your words.
Kramer, you consider FPL an obstacle? They were invited in. Have you seen the price of their stock? Must be doing something right.
Talk about a political football, it should be fun to watch if this is a plan.
Where is the expertise on the part of Winger, Kramer and ye gads Amelia Graves? A $180,000,000
deal.Who are the coaches?
Have fun, Bea! There are more elections to run in.
Patrons of the arts do pay fees, and those fees would be higher if the city-owned land upon which the theatre and museum are built were not made available for just $1 per year. No one is suggesting a boycott. Where did that come from? Besides, if county and Indian River Shores residents who enjoy eating out and shopping boycotted city businesses, where else would they go?
Thank you Ken, we did work hard but not to many remember or just conveniently forget! My dear departed friend, Helen Glenn also helped as well as Alma Lee Loy.
Mark, there are many restaurants in Sebastian and of course there is Marsh Landing in Fellsmere. I could also mention Pei Wei and PF Chang in Stuart and West Palm, there are also some decent places to eat in Ft Pierce. I do however support our local restaurants and vendors first. The issue is still an electric bill that I receive every month that is excessive and unfair!
On another note: I wish all a Happy and a Healthy New Year, and thank Inside Vero for giving all of us a platform to vent and learn about truth in our community!
Larry, you have listed some excellent fine dining opportunities, some of them not so conveniently located. I think you get my point.
Rosemarie, thank you for the name correction – I know Ralph well enough to know better.
My only intention for mentioning who helped with seeking grant funding for Memorial Island is to pay respect to all who helped. Larry later in this feed remembered others who helped. It is important also to remember the process as outlined for future insight to seeking funding later for other issues.
Many of those you support are not shy in reminding others of what they believe they have achieved.
Mr Kramer, please explane how decommissioning the power plant would lower our rates.
What is the Emerson tie line & how does it work. what would it cost.
The power plant is really not used much at all and costs the City around $4 million to maintain, with an addition of $4 to $5 million in renewal and replacement. Without the power plant we could have saved almost $8 million last year, or about $9 to $10 on the rates. The Emerson tie line is a transmission line that was used years ago between Vero Beach and Fort Pierce which is still maintained today, there is a connection point with FPL called the Emerson tie line. This transmission line has the capacity to carry additional power when we would normally run the power plant. All that is needed is a transmission study request from FPL’s transmission group and then we can pull the extra power from OUC and close the power plant. I have talked about this idea with several engineers and its a very workable idea.
Have you ever noticed that when Jay Kramer does explain something in easy to understand terms all further conversation stops. Thanks Jay for answering Kent Middleton’s question.
And, for the female half of the Wilson twin duo, I want to thank Rosemarie for having confidence in me by suggesting there are other races for me to run in. I will give them some thought.
Thanks Jay,that sounds like an economical idea so far.Is it more complicated, and is anyone looking at this besides you?
Kent, You might find watching this interview with Jay Kramer informative. Mark Schumann
http://insidevero.com/2013/12/13/interview-vice-mayor-jay-kramer-discusses-the-potential-for-a-partial-sale-of-vero-electric/
Easy to understand terms, you’ve got to be kidding. A lot of gobbledegoop. All further conversation stops? Kramer, stop interfering and get back to attempting to do your job. You’ve done enough damage on the Power Plant transaction . Maybe some action should be taken on your efforts to obstruct.
A transmission “study request” from FPL’s transmission group is one thing, getting approval for usage is another. FPL is in negotiation on a $180,000,000 contract with Vero. Under no circumstances would I, if I were FPL even consider this proposition while in a legally binding
contract. You ought to know better than that Kramer’ but I guess you don’t. More obfuscation/complications, you just won’t stop, even after the people have spoken.
Would you tell the people who the engineers are that are advising you?.
Is this a self serving endeavor?
No Bea, confidence is not what I had in mind.
So, you know what you would do if you “were FPL.” No one in Vero Beach, no one, understands FPL’s business well enough to know what is in that company’s best interest. If just any Vero Beach gadfly could make Eric Silagy’s decisions for him, you can bet the FPL corporate board would not be paying him $14,000,000 a year to run the company.
The troika screwed up this deal from day one and now they are bringing in the third string to tote their water. If they had looked into what Jay Kramer has been saying for the past few years ,the sale to FP&L would be on track. But ,no, we have spent $1,500,000 and we are still trying to find out if FMPA will ”playball” with us. If Kramer is right , we have wasted time and lots of money while our legal bills keep mounting.The troika has sold the ratepayers down the river to the advantage of FP&L, and not for the benefit of the citizens of COVB.
To Frank Manas, If, if, if, a frog had wings it wouldn’t bump it’s little ass, it would fly.
Jay Kramer has done everthing in his power to screw up the sale, he even lied. Read the info he sent to the Regulatory Commission. The Commission disregarded his allegations. Exactly what do you think is the benefit to the citizens of Vero Beach?
To Rosemarie B Wilson, Your recent remarks are crude, rude and dumb .. The sale of Vero Electric to FP&L has had its problems since the day the contract was signed,thanks to your friends on the council. The sell at any cost gang, in their rush, have made critical errors which so far have cost the city $1,500,000 in legal fees. The troika and others could not deliver on their promises to close the deal quickly. Now they and you are looking to blame everybody but themselves for the slow,and expensive pace of this sale.