Identifying Irony in a Satirical Context

Read the following excerpt from a satirical narrative:

"The residents of Kingwood Hill were proud of their prestigious status and toasted to their community at every social event, proudly labeling it as the epitome of sophistication. Yet, behind their grand facades and meticulously trimmed lawns, a weekly poker game drew in the same members who protested against gambling in public. During their annual gala, a council member lamented that the town needed to uphold its pristine reputation, all while the smell of cheap cigars wafted through the air and laughter echoed about their less-than-genteel activities."

Based on the excerpt, which of the following elements best illustrates the use of irony in this passage?