COMMENTARY
“On behalf of the Tea-Party-controled, power-hungry County Commission, Reingold had a lot to say – but on the central point of how to move the power sale forward he had nothing to offer.”
MARK SCHUMANN
Indian River County Attorney Dylan Reingold went before the Vero Beach City Council this morning seeking permission for the County to participate in discussions/negotiations with representatives of the City, the Florida Municipal Power Agency, Florida Power & Light, the Orlando Utilities Commission and the Town of Indian River Shores.
These proposed “discussions,” are little more than an election-year ploy to keep the power sale issue alive and in the minds of Vero Beach voters. For several election cycles, limited-government extremists have used the power sale issue to promote Tea-Party-supported candidates inclined to make drastic cuts in City services, and pave the way for unified local government.
On behalf of the Tea-Party-controled, power-hungry County Commission, Reingold had a lot to say – but on the central point of how to move the power sale forward he had nothing to offer.
In truth, even the bright minds at FPL have no idea how to close the sale. Why? Because their is no willing, qualified buyer. No buyer, no sale! It is as simple and as complicated at that.
In a recent letter to City Manager Jim O’Connor, FMPA General Manager Nick Guarriello again outlined the steps Vero Beach and FLP must take, if the sale is to be concluded. Guarriello wrote, “FMPA supports each of its members in pursuing whatever goals the member believes to be in its best interests. If the City of Vero Beach (“City”) desires to sell its electric utility, FMPA will do everything it can to facilitate that transaction within the bounds of the law and existing contracts. Furthermore, FMPA will support the City by providing whatever information the City needs concerning its FMPA contract requirements. Finally, FMPA stands ready to meet with the City and any of its negotiating partners, together, if requested by the City.”
Perhaps most significant in the outline Guarriello attached to his letter was the following point: Vero Beach and FPL must identify and bring forward “another public power entity to take transfer and assignment of the power supply output of Vero Beach’s PR projects.”
Make no mistake about, Reingold and his five bosses on the County Commission know full well Vero Beach’s power supply entitlements and power support project commitments are of ZERO interest to any utility in a position to legally participate as a buyer.
So, what is their objective is calling for “discussions?” Quite simply, Reingold and his bosses are, on behalf of FPL, willing to subject Vero Beach to still more contentious and fruitless negotiations and expensive litigation.
With the County’s appeal to the Florida Supreme Court not looking good, and with Indian River Shore’s legal challenges and Florida Public Service Commission petition looking more and more like a deep, dark, and hugely expensive rabbit hole, their last hope is to perpetuate the controversy by hopefully electing candidates to the Vero Beach City Council who will agree to extend the City’s purchase and sale agreement with FPL. That agreement is set to expire December 31 of this years.
Guarriello’s outline:
FMPA Contract Requirements and Status
This summarizes key requirements for Vero Beach to exit FMPA’s All-Requirements Project (ARP) and transfer Vero Beach’s obligations to another tax-exempt utility for the Partial Requirements (PR) projects (i.e., Stanton Project, Stanton II Project, and St. Lucie Project).
- ARP: Exit ARP and pay withdrawal costs for ARP.
- PR: Find another tax-exempt power utility to buy the power supply output of Vero Beach’s Stanton, Stanton II and St. Lucie projects.
- PR: Address contingent liabilities.StatusMay 2016
- Pay withdrawal costs for ARP. The City of Vero Beach already has the initial ARP withdrawal estimate, and FMPA will update the withdrawal cost for the City of Vero Beach within the coming months.
- Find
FMPA Contract Requirements and Status
This summarizes key requirements for Vero Beach to exit FMPA’s All-Requirements Project (ARP) and transfer Vero Beach’s obligations to another tax-exempt utility for the Partial Requirements (PR) projects (i.e., Stanton Project, Stanton II Project, and St. Lucie Project).
- ARP: Exit ARP and pay withdrawal costs for ARP.
- PR: Find another tax-exempt power utility to buy the power supply output of Vero Beach’s Stanton, Stanton II and St. Lucie projects.
- PR: Address contingent liabilities.StatusMay 2016
- Pay withdrawal costs for ARP. The City of Vero Beach already has the initial ARP withdrawal estimate, and FMPA will update the withdrawal cost for the City of Vero Beach within the coming months.
- Find another public power entity to take transfer and assignment of the power supply output of Vero Beach’s PR projects. Internal Revenue Service rules related to private use of tax-exempt bond financing require that only another governmental power utility can take the power supply output. Follow the transfer and assignment process previously used by FMPA cities for PR projects. These documents have been transmitted to the City of Vero Beach several times in the past few years.
- Address contingent liabilities for PR projects. Vero Beach must find another party—an electric utility or financial guarantor—to take responsibility for contingent liabilities in order to meet all PR project obligations. This has yet to be accomplished. All other project participants must approve Vero Beach’s handling of contingent liabilities to avoid electric cost increases in their communities.
FMPA members’ objectives are to: 1) assure compliance with the power supply project contracts for the protection of the bondholders, the remaining project participants and their electric customers, and 2) assist the City of Vero Beach in achieving its objectives.
As a member of FMPA, only the City of Vero Beach has the responsibility and authority to address these issues. Organizations that wish to seek solutions to the exit cost and requirements outlined above must first engage with the City of Vero Beach to reach a viable resolution.
FMPA Contract Requirements and Status.
Indian River Guardian 
FPL is trying to reset the city council balance. If they can do that, then they can bankrupt the city of VB and get the county govt to take over VB as well as own the VB power system.
Brad Marshall
A classic political ploy by Bob Solari to keep the electric sale to FPL on the front pages . If the county is serious they should withdraw their lawsuit ,but they won’t because Solari needs an issue to run on ,this despite the fact a sale is not possible under existing long term contracts. The commissioners realize they are about to lose in court and look bad in the court of public opinion. Solari needs diversions from his sorry record as a commissioner. A diversion is his sole goal. When his votes are made public by his opponent ,Solari’s record will be exposed ,and it is a sorry record.