City of Gainesville files HB 1645 lawsuit against Governor

BY JENNIFER CABRERA

TALLAHASSEE, Fla. – The City of Gainesville has filed a lawsuit challenging HB 1645 in the Second Judicial Circuit in Leon County against Governor Ron DeSantis, Attorney General Ashley Moody, and Secretary of State Cord Byrd. The lawsuit includes a request for a temporary injunction against the implementation of the law, which sets up a governor-appointed board to govern Gainesville Regional Utilities (GRU).

Read the Complaint here.

Read the Motion for Temporary Injunction here.

The lawsuit, filed by Attorneys Cindy Laquidara and William Handle of Akerman and Gainesville City Attorney Daniel Nee, claims that the law, on its face, violates the Florida Constitution. The complaint states that GRU is a “legal fiction” with services provided by departments within the City of Gainesville, staffed with City employees, and directed by the City Commission. It states that the City is obligated pursuant to its Bond Resolutions to “defend its ability to control its Utility System.”

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Governor does not have the power to control a municipal utility

The complaint argues that under Florida’s Constitution, the governance for a municipal utility does not lie within the Executive Branch (the Governor), and the legislature does not have the power to increase the duties and obligations of the Governor. It adds, “The legislation does not, and cannot explain, how a unit of municipal government can be excluded from being under the control of the municipal government… It is clear from HB 1645 that, simply put, the new ‘Authority’ is simply choosing to run a City department because the legislature and governor would prefer that it be run differently.”

GRU General Manager position eliminated as of July 1

The lawsuit states that the position of GRU General Manager as a Charter Officer is repealed as of July 1 by the legislation, and “there is no budgetary position for the General Manager to fulfill as directed after July 1, 2023. The position of General Manager for Utilities is thus non-existent or in limbo as of July 1, 2023, with no legal method of filling it.” HB 1645, according to the complaint, eliminates the position of General Manager but “direct[s] that the General Manager… keeps working.” The lawsuit also states that there is “no method of paying this individual if he does keep on working.” The lawsuit adds similar arguments related to the employment and pay of all GRU employees.

The complaint lists a number of powers that are limited to elected legislative bodies under the Florida Constitution and statutes and states that HB1645 illegally assigns these powers to the appointed board: “Given the numerous conflicts between general law and the Florida Constitution, this legislation is void.”

HB1645 impairs the City’s ability to enter into contracts

The complaint goes on to argue that HB1645 violates the City’s due process and impairs contracts (including an inability to refinance bonds before October 1 and complete the sale of the Trunked Radio System to the County). It also argues that HB1645 is unenforceable because it fails to provide for a referendum by the electorate of the City of Gainesville, that it was improperly noticed, and that the Florida Constitution does not give the Governor the right to “(i) fire the current municipal officers and (ii) appoint five (5) members of his choosing.”

Municipal functions may not be transferred to an appointed board

The complaint argues that municipal functions may only be transferred to another “county, municipality, or special district,” and the Authority is none of those entities. It also argues that Florida statutes empower the “city council or other legislative body” to manage municipal public utilities, but the Authority is not a legislative body: “While the state may establish or abolish municipalities, it cannot take all authority and transfer it willy-nilly to boards or individuals under the Florida Constitution.”

The complaint argues that HB1645 gives the Authority the power to issue debt, but the elected city commission is the entity that is authorized to borrow money and issue bonds under Florida statutes.

“The City is left in a current state of limbo with regard to necessary functions”

The memo from City Attorney Daniel Nee to the city commission, dated July 21, states that his office and outside counsel from the Akerman firm “have concluded that the Special Act revisions to the City of Gainesville Charter are inconsistent with significant provisions of the Florida Constitution and general law… The City is left in a current state of limbo with regard to necessary functions. Through this litigation, the City seeks clarification and determination by the Court regarding the legitimacy of these state-imposed Charter amendments.”

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