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.”

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The lawsuit states that the position of GRU General Manager as a Charter Officer is repealed as of July 1 by the legislation, and “there is no budgetary position for the General Manager to fulfill as directed after July 1, 2023.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.”

  • More tax dollars going to waste by the order of city leaders. We’ll see what the court decides.

    In case it is overturned, is anyone else wondering if the recent excessive tax increase will be rescinded or will city thieves continue their fiscal incompetence with a newfound source of revenue?

    Regardless of the outcome, hope you liberal idiots have seen through the lies and deceptive tactics those you elected have continued to utilize for their benefit.

    Time to recognize not only their fiscal incompetence but their ignorance as well.

    • I think the recent tax increase is a political move to get citizens to rise up against HB 1645. (A move that won’t work. Instead it shows voters why these grifters need to go.)

      Because God forbid they just admit they’ve been stealing millions every year from GRU customers and promise to stop the should-be-illegal “transfer.”

      • Yes, the tax increase was an entirely predictable tactic.

        The Gainesville city commission never had any intention of cutting funding to worthless pet projects, reducing the insane bloat of Gainesville city government, etc.

        Whenever the peasants dare challenge petty city tyrants, the response is always to raise taxes and/or cut services citizens actually *do* want like like police/fire/road repair instead of cutting unnecessary fluff like DEI Czars etc.

        The corrupt local government has completely ruined this city and I don’t know if it’s even possible to reverse anymore. Absolutely disgusted.

    • I’ll tell you what’s unconstitutional…those liberal idiots sticking us with those paper
      Straws…

  • I bought some popcorn and looking forward to watching this drama unfold.

  • When are these city leaders going to do the right thing? Yeah probably never, they continue to screw the constituents, that elected them. Those same people many can not seem to see past the lies and then vote the same way. I believe that is called being brainwashed, perhaps they were kidnapped so a bit of Stockholm syndrome.

    Hodge vs Orlando Utilites Commission — fifth circuit federal court.

    Guess what city commission the legislature has the power to do what they are doing. Guess your attorneys missed that.

    I suggest the city just sit down and take it the way they have been having the rest of Gainesville sit back and take it for so long.

  • If the GRU authority is found to be illegal does this mean the Airport Authority, forced on us by George Kirkpatrick, Sid Martin, and Jon Mills is null and void for the same reasons?

    • Crash & burn, in GNV, It was Ed Jennings & Rod Smith for GAACRA. Hanrahan was mayor at the time. Not Kirkpatrick, Martin, & mills.

      • Sherman

        The episode you refer to is a separate and equally nefarious incident which I’ll address in a moment.

        Kirkpatrick, Martin, and Mills rammed a local bill through, while no one was looking, that originally established the Airport Authority in an apparent attempt to protect Bill Cousins, then the airport’s Fixed Based Operator (FBO). Cousins was neglecting his FBO operation to the point where private airplane owners and pilots (General Aviation) were bitterly and consistently complaining about the lack of/poor service; leaving the airport in droves for Keystone Hgts and Palatka thus, depriving the city’s operation of hanger rentals, fuel sales, etc.

        The city spent several years trying to cancel Cousin’s contract and evict him but, he kept it tied up in court. Then on the verge of losing his final go-round and being kick out our Oh!, so wonderful legislative delegation (see above) came to the rescue in the wee hours of the morning by stripping the airport operations from the city and giving it to their newly created Authority thus decisively snatching victory from city hall and delivering it firmly into the jaws of defeat.

        Keep in mind, for the rest of the story, that the airport and adjoining industrial park lands stayed with the city.

        Long story short, Cousins was eventually busted and convicted on Federal drug charges though I believe (its been awhile) his conviction was vacated as he died while his appeal was still pending.

        Now, remember what I said about the city still owning the lands under the airport and industrial park?

        Later on the Authority started an apparent campaign to gain control of all lands related to the airport. They successfully bullied the county into ceding the fairgrounds land to them. This left the city as the only other obstacle.

        Now comes the Oh!, so wonderful legislative delegation that you speak of with a REVISED Authority charter with only ONE material change which was to give the Authority the power of eminent domain–the original charter not having granted this power.

        Mac McEachern, then the city’s Authority representative, realized the only possible target for this change was the City of Gainesville due to its land ownership. Mac stood before the commission when they were to vote on accepting the revised charter and exposed the whole thing. City Atty Marion Radson and the Authority bunch from the Chamber of Commerce were caught. The whole thing fell apart as the commission then required the Authority to agree to a binding clause forbidding their use of eminent domain against the city.

        Hopes this clears things up a bit.

        • Well it was definitely the arrogant Sid Martin that forced the insidious library tax to a special election when only 12,000 people voted. Wish the delegation would let us vote on sunseting that stupid tax.

  • These idiot city commissioners and city officials will never learn. They raise taxes 29% and don’t cut the budget and just keep wanting to spend our money just like a demonrat.

  • Well, I guess someone changed their mind and promise about a smooth transition. This revolt should have major consequences. A terrible decision for Gainesville. Doing everything to defy the law is going to be very costly and painful to pay for.

  • These idiots are wasting the taxpayers money on these lawsuits. Does anyone think they care about other people’s money? They’re Dems and money is no object. I hope they fail.

  • Nee: “Through this litigation, the City seeks clarification and determination by the Court regarding the legitimacy of these state-imposed Charter amendments.”

    SB 1380: “366.04 Jurisdiction of commission[Florida Public Service Commission].—

    (10) A municipality or any agency thereof supplying
    electricity to any electric retail customer receiving service at
    a physical address located outside its corporate boundaries
    qualifies as a public utility and shall be regulated under this
    chapter for a minimum of 5 years. The commission shall adopt
    rules to implement this subsection.”

    and

    “Section 4. This act shall take effect July 1, 2023.”

    Case dismissed.

    Cost: Free.

    • Errata; This bill ‘died’ in the Senate Regulated Industries Committee in May 2023.

      Apparently, both House and Senate committees were addressing utility regulatory questions with the Senate RIC deferring to HB 1495 and allowing its own 1380 to die on the vine.

      • Well if you had been paying close attention these bills were brought about as there were questions brought up In a committee meeting, not just one meeting but two. And of January and in February… I can provide you with those links if you would like or they are posted in the featured area of customers for a better GRU fb page.

  • DeSantis should dissolve the city and consolidate it with the unincorporated county areas. Then we’d get smarter voters running things in de-Wokeville.

  • The City Commission will spare no expense, especially if they can suck the money out of GRU to pay for it, in order to blame the governor and to stir up their supporters. They know that their supporters and Democrats across the country, who doesn’t know the facts or the history behind HB 1645, will just jump on their bandwagon and assume that this is a power grab by the state and continue to blindly support their cause. For Ward and Co they will continue to increase the City’s revenue stream by raising property taxes and can blame it all on DeSantis, while they still have access to GRU’s bank account. This will also give them a boost when they run for office again and need to beef up their campaign accounts.

  • As predicted, it looks like the bond holders are calling the shots, not the commission. Those financial covenants are a b!tch, aren’t they!? This is why it is prudent to never become a debt donkey.

    • Yes they are.

      I recall then GRU GM Mike Kurtz shoveling money into the Chamber of Commerce’s CEO program ($250,000/year for 5 years?) until a group of citizens (I believe it was the old F.A.C.T. bunch) pointed out this was in apparent violation of GRU’s bond covenants and threatened to bring suit.

      No one complained when Kurtz & Co abused GRU.

    • There is a way you can interfere with it as stating you are not a party to the case but are affected by it… the name slips me if I remember that it is called I will let you know.

  • “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.” Okie dokie. FINALLY merge the city and county governments and let Alachua County run things. The BOCC has MANY faults, but at least they haven’t been pillaging the county coffers and bloating government on par with the City Commission.

    • Why would the Country residents and taxpayers want to be straddled with your City of Gainesville obscene debt burden and clueless voting population?

  • Now that the city filed its lawsuit let’s see if the person who identifies as Jazzman comments. The GRU-specific talking points (propaganda) spewed from that person have been relentless, redundant, and narrowly pointed. Classic example of a public relations campaign.
    From a quick glance at the complaint it seems the only plaintiff listed is the Florida corporation known as the City of Gainesville, Florida. Pending the outcome of the lawsuit, I’m sure the commissioners and officers of the city corporation are now forbidden from engaging or commenting on the lawsuit.
    Let’s see if I’m right…pipe up and shut me down if you’re not a party to the suit Jazzman! Don’t lie and get yourself in a bind though.

    • Gee, it’s so nice to be missed. Nope, I have nothing to do with this or any lawsuit, and being an owner of a business, that’s a good thing. I am fully in favor of the City’s pursuing this in court and have so said on other threads here. Since they are defending the rights of the citizens of Gainesville to determine who runs the utility they own, they’d be worthless cowards not to, and any American who believes in democracy and property right should be on their side. You autocratic babies who want Daddy in Tally to run everything, move to Russia.

  • Point proven. All of you grifting and lying fools will be weeded out in due time. Stay tuned and god bless!

  • As Painful as it might be to watch and listen to a City Commission meeting, you have to visit the 7/27/23 1pm meeting. The lies and observations speak volumes while they stumble and bumble thru their what ifs. Why are the wasting time trying to tear down people that are committed and have a superior intellect to run a utility. They are still in denial of the historical carnage they have caused Gainesville. Unlike any and all other Utilities that are thriving in Florida. They look like utter fools.

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