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The city gets the 10-year term it wants, but it will no longer have the option of buying Florida Power's poles and equipment.
By LEON M. TUCKER
© St. Petersburg Times, published September 7, 2001
DUNEDIN -- City leaders threw the switch toward finalizing a 10-year agreement with Florida Power on Thursday.
The mayor and commissioners voted to give Dunedin's city attorney permission to write a resolution that would make the agreement law.
Vice Mayor Deborah Kynes said the idea of cutting ties with the utility was tempting but too risky.
"There are big risks, certainly, and there are big rewards -- maybe," said Kynes. "But I'm not willing to gamble on a maybe."
The matter had been discussed for nearly two years, with the city threatening to leave Florida Power if the company did not give in to a number of demands -- including control of its poles and wires should Dunedin decide to create its own utility.
The city also wanted a contract term of less than 30 years.
Florida Power has agreed to a 10-year term, but the option to buy Florida Power's utility equipment would be off the table under the proposal.
"We are very pleased with the outcome," said Nancy Loehr, regional manager for Florida Power. "It has been a long time, and we are pleased we are able to move forward with this franchise agreement."
Jeff Zoellner, chairman of the Dunedin Chamber of Commerce board, expressed support for the agreement.
"It's been a long process, with both sides working very diligently," he said. "We are very pleased the issue is near conclusion and hope your decision to work with our power company continues."
Despite their unanimous vote, some commissioners still expressed some dissatisfaction with the agreement.
"I don't have a particular problem staying with Florida Power," said Commissioner John Doglione. "But what really disturbs me is the foreclosure on an opportunity to look at what is going to happen with the distribution of power."
The city has spent about $50,000 studying what it would take for the city to go into the power business.
Bob Brotherton, the city's utilities director, found the city could potentially make more than $4-million if it distributed its own power.
Brotherton's findings were expected to be presented to commissioners within the next month but will not with the recent agreement.
"There are just too many risks involved with going forward with this deregulation," said Mayor Tom Anderson. "But if we had not gone down this road, we would not have gotten the current benefits if we had signed right off."
Under the agreement, Florida Power agreed to:
Assist in the future placement of power lines underground in designated areas.
Invest at least $100,000 in the improvement of a city facility which City Manager John Lawrence has suggested in the Stirling Community Center.
Help install decorative street lighting along the Pinellas Trail from Main Street to Skinner Boulevard.