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Draft local bill would “send a clear message” that GRU Authority will continue to govern the utility

The GRU Authority at their most recent meeting on December 11, 2024

BY JENNIFER CABRERA

UPDATE: Rep. Johnson announced on January 8 that he will be asking the legislative delegation to table the bill at the January 9 Legislative Delegation Public Hearing. Click the link for more information.

GAINESVILLE, Fla. – State Representative Chad Johnson (R-22) has distributed a draft of a proposed local bill to be discussed at Thursday’s Legislative Delegation Public Hearing; Johnson wrote that the proposed legislation “unambiguously reinforces and echoes the autonomy of the Gainesville Regional Utility Authority as a legislatively created municipal agency of the City of Gainesville. In addition, it sends a clear message to all with whom GRU does business, that the Authority and GRU are autonomous and will continue in perpetuity to serve until such time as the Legislature chooses otherwise.”

Read the draft legislation here.

Bill clarifies the powers of the Authority

The draft bill gives the Authority the power to validate bonds, clarifies the Authority’s status as a separate legal entity, and states that it may sue or be sued “in its own name” and may enter into contracts and intergovernmental agreements “without limitation.” The utility would also be responsible for any damage claims in the future.

A note in the draft bill states that these changes allow the Authority to “engage in the issuance of its own bonding, free from the City, giving some assurances to bond rating agencies and investors. It establishes the point that the duties and responsibilities should not be construed as a limit to the scope of those others which were previously given to the Authority in all other sections.”

The Authority would be granted the power to “amend or supplement any existing agreements or resolutions entered into or adopted by the City” that are related to the utility system “without any approval or further action of the City.”

The bill changes the City’s charter to state that the Authority will “submit” its budget to the City Commission instead of “presenting” it, “in order to remove any inference that the City has some approval authority.”

A new section was added, stating that the City Commission “shall have no power or authority over the Gainesville Regional Utility or the Gainesville Regional Utility Authority, and all ordinances of the City of Gainesville that conflict with this act are hereby and henceforth repealed and inoperative.”

General Fund Transfer would include costs of Service-Level Agreements

The Government Services Contribution (also known as the General Fund Transfer) would be redefined to include any costs incurred by GRU resulting from any Service-Level Agreements with the City. According to a note in the draft bill, this was done “in order to codify that the funds transferred to the City from GRU do not only include the one-time annually budgeted GSC, but must also consider those agreements in which the City benefits financially from an agreement between the City and GRU, such as with IT or other joint SLAs.”

The definition of “flow of funds” is removed, and the bill provides that the GSC “may not exceed GRU’s profits after accounting for all necessary payments for operating the utility’s systems” instead of basing the cap on “net revenues less flow of funds.”

Miscellaneous changes

Among other changes, the bill changes the titles of those who serve on the Authority from “member” to “director”; the rationale is that those who served on the previous Utility Advisory Board were called “members,” but the term “directors” removes “any confusion that one might have in incorrectly believing that the Authority serves at the direction of the Commission.”

While the original bill specified that the Authority is free from the direction and control of the Gainesville City Commission, the proposed bill adds “other City Charter Officers” to the list of those who may not direct or control the Authority.

The prohibition on franchise, right-of-way, license, permit, or usage fees is changed from “unless allowed by general law” to “absent the formal consent of the majority of the Authority’s directors.” A note states that this “spell[s] out the prohibition” on these fees “to any court of law” to “avoid an instance where the City makes such an attempt.”

The original title “General Manager/GM” has been changed to “Chief Executive Officer/CEO” throughout the bill “in order to acknowledge the new and expanded role and remove any confusion”; the proposed bill also gives the CEO the ability to serve as the agent of the Authority in matters of property acquisition. The proposed bill gives the CEO the “exclusive authority to manage and operate GRU,” replacing language that gave the CEO the exclusive authority to “hire, transfer, promote, discipline, or terminate employees under his or her supervision and direction.” A note states that this would “remove any ambiguity as to the CEO’s authority.”

The draft bill clarifies that GRU has the ability to retain a Utilities Attorney, who will serve at the will of the CEO. This attorney will be able to “prosecute and defend all suits, complaints, and controversies… and shall review all contracts, bonds and other instruments… and shall endorse on each approval as to form and legality.”

The CEO would also be able to employ a Utilities Clerk to keep records and perform other duties; the clerk would serve at the will of the CEO.

Noting that “GRU’s official property records are much more thorough,” the bill specifies that utility systems, properties, and assets will be determined by GRU’s official records.

The original legislation that created the Authority specified, “In the event that any city charter provision, ordinance [or other City action]… conflicts with the provisions of this article, the provisions of this article shall govern.” The draft bill clarifies that this does not apply to financial agreements such as credit or liquidity facilities or interest rate hedge agreements. It further specifies that bondholders retain all rights and remedies despite the transfer of governance to the Authority; these agreements and obligations are delegated to the CEO and Chief Financial Officer of GRU without any further actions of the Authority or the City, and pre-existing contracts and obligations would be binding upon the Authority.

The act would take effect as soon as it is signed by the Governor.

  • This is a stunning and consequential development. The notion that with Perry and Clemons gone, the legislature will forget about GRU governance is repudiated.

      • You (Sam) do realize that the ratepayers are the ones being hurt by your nonsense and have been for years. Sadly, you say you are for those who cannot afford the bills but laugh, and still, the rates continued to be raised. That shows just how much you actually care. So sit down, because there are those willing to do something to help those who are having a hard time, and those people have shown that they care.

        • I’d say win an election to change things That Girl but the state GOP has made that passe, uncool, and so icky! They work it out in Tallahasse now and ram it down citizens throats.

          • Oh! Do you mean as the DOJ has done on the National Level for the last 4 years (with FJB) and of course Alachua County for the past ??? years? The good news is smart people are leaving AC for friendlier confines elsewhere! Guess your property taxes will go up………….again!

    • Konish for Mayor! Cut and cut and cut and cut liberal nonsense to the bone! Then keep cutting until property taxes are cut in half and zero funding goes to attract homeless and criminals!

    • Big Daddy Eddy B is beating me again. I have more lumps on my head from Big Daddy Eddy B than Krispy Kreme has donuts and trust me I know about donuts. I know Big Daddy Eddy B was smart, but I am starting to think maybe I am not as more smarterest as I thinked I am.

    • For the idiots who continue to support GRU being controlled by the corrupt commission:

      “Since the Authority took charge, a GRU residential electric customer using 1,000 kWh per month has seen their bill decrease from $155.74 to $136.63, a more than 12 percent reduction.” – Ed Bielarski, CEO, GRU.

      To think you liberal lemmings are as some proclaim, “highly educated,” is like saying Trump prefers eating a salad more than a Big Mac.

    • Dude – Jim! – none of these guys represent Alachua County but Hinson and she opposes these shenanigans and middle finger to Alachua County citizens. Look it up. They all get their votes elsewhere and lose in Alachua County, and none live here except Hinson. This was predictable and an easy one, or where you born yesterday or playing a role?

  • I hope they get this done and signed immediately so it will make GRUA permanent and send the idiots that have tried to create chaos via our court systems packing for good. Yes I’m talking about our GCC and all their clowns

  • Hopefully this legislation goes through.
    In some ways it could be compared to animal control, can’t put ’em down so it’s best to prevent them from reproducing, (in this case, poor financial decisions). What better way to do that than spaying and neutering them.
    Should have happened a long time ago.

  • Never let the radical lying dem libs (like Poe, Ward, S Botcher, Queen P, and any of their suck-ups) control a single piece or 1 KwH of energy from GRU. They’ve nearly bankrupted the utility and the city itself with ignorant ideas to attract the homeless and criminal element. Property taxes way out of line too. We’ve had enough!

  • Look at “our delegation”, the ones stealing GRU and further neutering Alachua County voters and who came up with this election denying power grab.

    Rep. Chad Johnson lost in Alachua county by a lot in the last election – he’s the representative from Gilchrist and Levy counties, not Alachua, though he lives in Newberry like the previous traitor representative.

    Rep. Chuck Brannan got 80% of his votes from Union, Baker, Columbia, and Bradford county, lives in McClenny, one of his major donor is Duke Energy, and he says he’s “Pro-life, pro-guns (?), and anti-tax”. In short, we don’t like his kind around here.

    Sen Jennifer Bradley represents 6 red neck counties and the under populated N half of our county, though we’ve never voted for her because she became “our senator” through the racist and anti-Democrats redistricting of 2023-24. She lives in Orange Park and so no, she’s not “our senator”.

    Sen Stan McClain lost in Alachua county by a lot in the last election, and lives in Summerfield south of Ocala – he’s the senator from Marion and Levy counties, not Alachua.

    Yvonne Hinson won in Alachua County overwhelmingly in 2022 and was unopposed in 2024. She also lives here and can therefore actually claim to be – and is – “our delegation”.

    The rest of these carpetbaggers are not “our delegation”, they are invaders and conquerors without our consent, and that includes Clemons and Perry, neither of whom won in Alachua county and relied on surrounding red counties to abuse our citizens.

    Most of you here are Republicans and apparently like being dictated to by our state GOP overlords who are not content with governing over areas they represent but divide once prominent Alachua County to the point where we have only one true member in “our delegation”. That’s on you and your conscience, but hopefully someday we will have in Florida a non-partisan districting authority which fairly divides government representation with respect to fairness, not power and robbery. Other states have this system

    In the meantime, this meeting tomorrow has no moral authority and anyone looking at it realistically knows that.

    Someone tell me why and how I’m wrong.

    • You’re attacking the solution but not providing an better alternative– and the status quo was unsustainable.

      • GRU had an A credit rating when the state GOP pulled their coup – same as FPL did at that time. It’s not obvious a crisis was brewing, but if it was, let the city and Gainesville citizens deal with it, It’s their utility. At worst, provide mandatory oversight, but taking over GRU and disenfranchising the citizens of Gainesville is BS and not what we do in democracies – look it up.

      • Your turn anonymous. If you are not defending “the solution”, tell us why the situation was unsustainable – GRU had a A rating – and offer your alternative. In the absence of that you are defending “the solution”, which was the hostile takeover of the city’s property from it’s citizens by a bunch of politicians rejected by the voters of our county (and who’s mouthpiece here is Jim Konish and occasionally Ed Belarski, both of whom were also rejected by our voters). I’ve proven that much true and so you are left with justifying that act as the only thing that could be done for a “problem” defined as “unsustainable” by only those hostile actors.

        Please try to make sense of your position and tell me how I’m wrong.

        • The biomass contract, then the biomass purchase, leading to millions in debt.
          The ever-increasing transfer to the city general fund.
          The ever-increasing rates passed on to consumers.
          The handshake deals with the county for services provided and received.
          The bond rating which was downgraded to Aa3 in 2023 (see full history at https://emma.msrb.org/IssuerHomePage/Issuer?id=CD158D2DC952E6A7123AA41F597997EC&type=G)

          Likely more if I stop to think about it.

          • I’m sorry, but that’s a list of events you didn’t like, not a coherent argument that a utility with the same credit rating as FPL – who no doubt has made decisions neither of us may like, like giving $100k in dark money to the traitor (good riddance) Keith Perry – was “unsustainable”. That doesn’t follow, but hey if you think so, why is a hostile theft of the cities property the proper response?

    • Most of the voters in Gainesville are lemmings and when the City Commission says jump, you ask “how high?” Seems to me most of you liberals also enjoyed, and begged, for social distancing and mandatory mask mandates. You’ve also voted to increase your taxes for several years.
      Given those choices, it’s a good thing the City and County have fences around it; best keep those rabid animals confined to one geographic area.

      Let’s not forget, it’s the City Commission’s robbery of GRU that has gotten us to this point. This is all a moot point anyway. They may not have any moral authority but at least the GRU Authority has the authority now.

      • Thanks for confirming that since you disagree with the other 100k (or so) voters in Alachua County – who happen to be among the most educated in the state, along with Leon County, while you mostly agree with the voters in counties so poorly educated that they vote for Trump AGAIN – you welcome the state taking away the voice of those you disagree with, even if they are your neighbors. Why don’t you move someplace where you’ll be happier?

        • I don’t mind disagreeing with anyone when their ideologies are bad for society and, especially at a local level, bad for the residents. Whether it’s GRU rates or taxes. I’m just honest about it and don’t try to hide the obvious symptoms like your liberal buddies.

          Another big difference is those liberal strongholds are primarily college towns and most of us know, those who have common sense and aren’t in denial anyway, are those populations want free stuff. They expect government to give them things they don’t think they should have to work for and earn. Too much feeling of self-entitlement. They want to save the environment but don’t want to sacrifice their shiny new mobile devices to accomplish that goal.

          Face it, you’re just as big a hypocrite as many of them are; you’ve proven it in many of your comments.

          As far as my moving, I plan to when the timing is right.
          You’re so disgusted with State and Federal leadership, why haven’t you gone anywhere? I heard there’s just as many people who said they would leave if Trump got reelected this latest go around as last time. I’m sure they’ve got plenty of room on their private jets. Must not be so bad, there’s still thousands trying to enter this country – illegally.

          • Putting aside the fact that I agree with most Americans and Alachua county residents – guns, abortion, universal health care, integration, regulated immigration, etc – and that I am on the side of winning campaigns as much or more than I lose, your post is so full of stupid BS and ignorant stereotypes indicating that you hate your neighbors and think people who get degrees are freeloaders (?), as to not be worth a response.

            I hope you’ll be happy in whatever fundamentalist heaven of uneducated citizens you have planned.

          • If you weren’t so old, (so you say), I’d suggest you try out for a punting position. I could care less who you agree with. Why do you think Biden’s been forgiving student loans? Who do you think is going to be responsible for that debt? Maybe your son is one of those who’ve cried about loan forgiveness. Didn’t you teach him to read contracts before signing them or is that something they only teach in law school?

            You’re also one of those ignorant Alachua County voters who are prime examples of hypocrisy. Look in the mirror knucklehead. It took how many years for someone to convince you you’ve taken advantage of your labor? All of your “friends” didn’t want to tell you sooner? Were they afraid to hurt your little feelings?

            If you need a Kleenex, maybe you can convince City Leaders to put them in the public restrooms.

          • I’d pass on your comments to your imaginary ME but I can’t get in your head and don’t want to. Look up “straw dog”. It’s a logical fallacy, not a creative award.

          • Excellent! Did you look that up recently or did you get it confused with lapdog?
            No reply needed, many know it’s the latter.

  • Jazzman = Bad Loser. He must have been booted from the Cry Room and Therapy sessions . He’s in for a long , long decade or two. Everyone but him and the woke sheeples of Gainesville and the Party of Hate, are enjoying the successes of the new ,professional regime at GRU and soon Washington ,DC. Give it a rest Jazz. It’s just not healthy to waste your time and get all worked up.

    • Last we heard from you, you were celebrating winning less than half of the vote as a mandate. Want to defend that, or bring up anything of a factual nature. I know I am the world’s – or at least this board’s – most interesting man, but come on. Talk about something else.

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