County’s legal bills for PSC filing $104,315 through December

More to be spent on lobbyists and media consultants

NEWS ANALYSIS

MARK SCHUMANN

Through December 2014, Indian River County was charged $104,315 by a Tallahassee law firm hired to seek approval from the Florida Public Service Commission to break up Vero Electric. The County’s strategy was to not renew its franchise agreement with Vero Beach when it expires in 2017, and to then seize the City’s customer base and utility infrastructure in the unincorporated areas of the county.

At a hearing in Tallahassee earlier this month, the PSC rejected the County’s request, and at the same time affirmed Vero Beach’s right and responsibility to continue serving some 20,000 customers in the unincorporated areas of Indian River County. Even if the County Commission refuses to renew its electric service franchise agreement with Vero Beach, the City will, according to the PSC, be obligated to continue providing electric service within its existing PSC-approved service territory.

The latest invoice from the law firm of Gonzales Saggio and Harlan and attorney Floyd Self does not include charges for January and February, so the total bill for the County’s failed effort will be significantly more than $104,315.

As it did last year, the County has again hired a lobbyist to push for legislation proposed by State Rep. Debbie Mayfield. Despite the County’s lobbying effort, none of the utility bills filed by Mayfield last year made it out of committee.

The County had settled on the prestigious and powerful lobbying firm Southern Strategies Group. Just this week, though, Southern Strategies Group dropped the County as a client, citing a conflict of interest. Southern Strategies also represents the Orlando Utilities Commission, which is a member of the Florida Municipal Power Agency, the very agency targeted in at least one of Mayfield’s proposed bills.

The County also recently hired a media consultant to help spread negative publicity about the Florida Municipal Power Agency. The County Commission has vowed to fight the FMPA by facilitating a “statewide conversation” about what it argues are significant problems with FMPA’s management and oversight.

Despite their concerns, Vero Beach leaders have yet to agree to join the County in creating discontent in other FMPA cities. Instead, the City Council recently passed a resolution calling on FMPA leadership to seek the advice of an independent consultant on how best to improve the FMPA’s management and oversight.

FMPA staff last week released a statement indicating the board of directors would be asked to consider hiring a consultant to work with the agency on the major issues raised in a recent State Auditor General’s report. Comments made by a numbers of board members recently suggest the agency’s leadership is also preparing to defend itself against the Indian River County Commission’s effort to break up the agency by first fomenting discontent across the state.

Winter Park Utility Director Jerry Warren went so far as to describe Indian River County (the Indian River County Commission) as “the enemy.” No doubt, the members of the Indian River County Commission see it the same way. In fact, Commissioners have said as much in public meetings.

A voice of calm in the storm, Vero Beach Mayor Richard Winger is quick to point out that the City, not the County, is a member of the FMPA. It is important, he said, for the City Council to pursue its own independent course to help correct issues at the FMPA.

The City Council is currently committed to working with FMPA leadership to improve operations and lower rates. Winger said he believes that, by encouraging the agency to seek the best possible advice on improving its systems and management oversight, the City Council is on the right track to bring about change and improvement at the FMPA .

Winger added, though, that, as a first step, the Council will need to see a response from the FMPA, both to the State Auditor General’s report and to the Council’s resolution calling for the FMPA to hire an outside consultant who will report directly to the board.

 

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