Konish: Critical remedial action required by HB1645 remains thwarted

Letter to the editor

HB1645 reads: “Section 7.02 Definitions.  (6) “Flow of Funds” means the sum of required debt service, necessary operations and management expenses, a reasonable contribution to a utility plan improvement fund, IDENTIFIED SLA-RELATED LOSSES, and any other lawful purpose as provided in bond covenants. (emphasis added)

“(11) Service-level agreement” or “SLA” means a contract entered into by the Authority that establishes a set of deliverables that one party has agreed to provide another.”

While there is much attention paid to the “Direct Transfer” (General Fund Transfer) from GRU to the City, GRU SLA losses suffered by GRU ratepayers constitute an “Indirect Transfer” from GRU to the City that IS NOT REFLECTED ON THE GRU FINANCIAL STATEMENTS.

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GRU SLA losses on IT, streetlights, and the City Attorney funding ALONE are around $5 million annually (see also Finding 3 of Auditor General City of Gainesville Report). Moreover, there is no consideration of the largest of all the elephants in the room – the imminent retirement of 51.3% of GRU generating capacity by 2032 (beginning in 2027- 4 plants). We are without a plan to meet local electrical needs at the end of this decade.

Assuming the GRU Authority approves the contract on their August 7 agenda, Mr. Bielarski has secured a salary of 1/3 of a million dollars annually. He needs to do the heavy lift and address SLA losses. This will facilitate targeted rate relief. Gimmicks like diluting ratepayer relief with ten-year paybacks without interest will not suffice. 

The Authority is in violation of 7.07(4), which provides, “The Authority shall meet AT LEAST once each month, except in case of unforeseen circumstances.” (emphasis added)

By not even showing up for work between June 26 and August 7, the “Authority” remains thwarted by a rogue and dangerous City Commission.

Jim Konish, Gainesville


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