Fort Lauderdale commission approves 30-year FPL contract

Clcik here to see contract: FPLcontract

Despite a fairly large crowd against the City of Fort Lauderdale finalizing a 30-year contract with Florida Power and Light (FPL), the commission still voted 3-2 to approve the deal after discussions that ran till almost 1 a.m. Tuesday night.

During the public hearing on the ordinance to approve the contract that essentially allows FPL to use the city’s right of way, and also provides the city of Fort Lauderdale with roughly $17 million through franchise fees, about 50 people spoke, with the majority begging the city not to approve the contract.

Bunnie Brenneman, chair of the utility advisory board for Fort Lauderdale, was almost in tears as she asked the commission not to approve the deal with FPL, saying that the committee had unanimously voted 11-0 for more research and to reject the contract.

“We worked like crazy on that one—and we strongly recommend funding and moving forward with a summary of pros and cons of municipalization versus a renewal,” said Brennerman. “We have worked long and hard, talking to experts across the country and say you our commission, please listen to your utility advisory committee.”

Another speak, a Mara Slackman (sp?), a practicing attorney, said research shows that Fort Lauderdale could delay the decision and still collect the franchise fee.

“In FPL versus Winter Park, the Florida Supreme Court held that FPL must continue to pay franchise fees while the city maintained the rights of way and utility use—a benefit from being the sole electric provider,” she said, adding that pro bono she would file a petition of injunction relief while the city determined the best course of action.

Others, including FPL, FPL lobbyists and attorneys as well as a few residents and the Fort Lauderdale Chamber supported the contract.

“All said, it’s an outstanding job in verbiage and negotiation, so hats off to who put together this fine agreement,” said Dan Lindblade, CEO of Fort Lauderdale’s chamber. “My experience with FPL as a corporate citizen, they put money put back in the community. You will have to look far and beyond to find a corporate entity that has done more for our community than FPL.

The greatest concerns from the residents were environmental issues and the length of contract. Residents wanted a much shorter term so that the city could explore other options, even possibly be a leader in green technology. Mayor Jack Seiler said, however, that the decider for him is that the contract is non-exclusive, includes opt-out clauses (though some residents felt the contract didn’t really allow for this because FPL could match any rate offer).

Commissioner Charlotte Rodstrom and Vice Mayor Bruce Roberts both voted no. Rodstrom initially introduced a motion to approve the contract for a five year term, but the motion died for a lack of a second. City attorneys explained the reasoning behind the term—to allow for FPL to have a 30-year contract so that the company can leverage those funds in bonds for future projects to harden the system (though some residents seemed skeptical of the reliability of FPL).

After much discussion, around 1 a.m. the commission voted to approve the contract with FPL.

Related posts:

1. Ft Lauderdale defers FPL decision till Oct. 20
2. Pembroke Pines, teachers union agree on contract
3. Broward commission skips passing resolution against Amendment 4
4. Fort Lauderdale residents invited to participate in 2010 budget process
5. Final budget hearing for Fort Lauderdale Sept. 23

Short URL: http://browardnetonline.com/?p=3716

Posted by Andrea Freygang on Oct 21 2009. Filed under Broward County, Business, Environmental, Fort Lauderdale, Local news. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry