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Konish: Opponents of reform of GRU governance create confusion and chaos in order to stymie long-overdue change

Letter to the editor

Ray Washington recently reminded me of the infamous 2015 recording of Pegeen Hanrahan opining on the 2015 Perry GRU governance bill. Recorded at Coffee Culture without her knowledge, she counseled her audience on creating confusion and chaos in order to “easily” kill the relatively benign 2018 Perry legislation (HB1325; 769) with provisions that the City Commission would appoint GRU Authority members, the General Fund Transfer (GFT) would be protected, there would be no limitation on utility “directives” or expenditures of GRU funds, and Authority members would receive no compensation (see www.tumblr.com/queenpegeen). The appurtenant, vicious, and sometimes false personal attacks on anyone associated with GRU reform are legendary (see part 2 of Hanrahan’s comments at the link above). 

On April 18, 2024, Gainesville City Attorney Daniel Nee presented a partisan proposal to quickly pass an Ordinance Calling for a Charter Amendment Referendum Regarding the City of Gainesville’s Local Public Utilities” (emphasis added). 

Mr. Nee, who still insists he is the GRU attorney despite being replaced, continues to receive his normal $500,000+ annual GRU ratepayer funding. He erroneously suggests that a City Commission can effectively repeal a local state law (HB1645) on its own initiative – with City-only voter approval. GRU is a regional utility with nearly 40% of electric meters in the unincorporated area outside of the city (urban fringe). 

Nee’s repudiated legal theory is that since he is the City Attorney, he is therefore the GRU attorney, in violation of his professional Code of Ethics. Similarly, he maintains that GRU and the City Commission are inseparable. Mr. Nee refuses to accept the fact that the GRU Authority, City, City Commission, and GRU are separate legal entities that are defined as such within Article VII, Section 7.02 (1),(2),(3), & (8) of the newly revised Gainesville City Charter. 

Modified legislative mandates have been imposed as of 5/28/2023. The GRU Authority and City Commission are now sister coequal units of City government (see “Konish: A city is not a political subdivision of the State of Florida,” Alachua Chronicle, April 8, 2023).

Having gotten a weak, dysfunctional GRU “Authority” orchestrated by Craig Carter to allow the GRU CEO/GM Tony Cunningham to thwart effectuation of HB1645, Nee now seeks to wipe Section 2 of HB1645 off the books “in its entirety” immediately upon passage of an illegal referendum on November 5, 2024. 

Section 7.10(2) of the assailed Article VII of our current revised City Charter provides: 

7.10 (2) – “…In the event that any City charter provision, ordinance, resolution, decree, or any part thereof conflicts with the provisions of this article, the provisions of this article shall govern.” (emphasis added)

The partisans behind this latest scheme have identified justiciable issues regarding eligibility of those members initially appointed to the GRU Authority, and that case is currently paused without a ruling. Any State appeal of a ruling in that case would trigger an automatic stay of such ruling pending appeal. New GRU Authority members will soon be appointed. All other legal attacks have failed miserably (see “Konish: Plaintiffs against HB1645 also sued to prevent 2018 referendum”, Alachua Chronicle, July 10, 2023). These same now-emboldened miscreants are advancing an obviously illegal City Commission Ordinance that purports to call for a binding referendum to “delete in its entirety” Section 2 of Article VII from the City of Gainesville Charter immediately upon passage (November 5, 2024).

Facing a May 31, 2024 deadline, Nee et al. have worked until late at night (I saw their light on) to put forth an “ordinance” banned by Section. 7.10(2) of the City Charter. 

This latest move follows coordinated and failed legal attacks by Nee and City Commissioner cronies as follows (see “Konish: Local partisans and their frivolous lawsuits”, Alachua Chronicle, October 19, 2023): 

  1. Lawsuit belatedly filed to prevent 2018 vote on Perry GRU bill (case never heard). 
  2. Lawsuit to void HB1645 by Nee – failed/City rebuked/Akerman $500,000 – $763/hr (see “Konish: Judge Dempsey rebukes Gainesville City Commission and their attorneys”, Alachua Chronicle, October 3, 2023).
  3. Lawsuit claiming first amendment violations (dismissed).
  4. Lawsuit challenging notice and oath administered to Authority members (dismissed).

The hypocrisy inherent in the latest move is palatable. The perils that GRU ratepayers are confronted with are ominous (see “Konish: Hutch, Ward et al. seek to destroy GRU in order to make sure the HB1645 Authority fails”, Alachua Chronicle, December 10, 2023). GRU is like a driverless car heading toward a financial cliff (see “Konish: How GRU was financially ruined by a political agenda”, Alachua Chronicle, January 22, 2024).

City Commissioner and Mayor cronies will only provoke more litigation that they will again lose. GRU ratepayer funds continue to be wasted (see “Konish: Unsustainable hemorrhaging of GRU ratepayer funds continues”, Alachua Chronicle, February 11, 2024, and “Konish: Dark money – how the City abuses GRU ratepayers on the ‘Indirect Transfer,'” Alachua Chronicle, March 31, 2024). Partisan hacks cannot go around the legislature via the City Commission unless they first obtain the required signatures. Any bare City Ordinance not accompanied with requisite voter signatures is voided by Section 7.10(2). Voters can trump the legislature – the City Commission cannot. They have been fired by higher powers. The State’s oversight role over a rogue municipality is indisputable. Municipal “Home Rule” is tempered by the supremacy of both State and even County powers.

While the draft referendum language has not been finalized, there are serious problems with what Nee has initially put forth. One-on-one consultations between Nee and individual Mayor/Commissioners are planned. Nee’s draft uses 64 of the 75 allowed words.

As always, Nee conflates political messaging with his legal wordsmithing that keeps him paid ($228,000+ annually) as follows: 

  1. Title: LOCAL PUBLIC UTILITIES 
    • Comment: A City-owned public utility is “local” per se. This redundant language in the title is an ongoing attempt to brand our local elected Republican State Representatives as outsiders, and is misleading as such. It is a partisan dog whistle.
  2. Voters are first asked to “DELETE IN ITS ENTIRETY ARTICLE VII (Section 2) ELIMINATING THE GOVERNOR-APPOINTED… AUTHORITY…”
    • Comment: On a crowded November 5, 2024 ballot, how many voters will really understand the complexities of HB1645? (see “Konish: Clemons’ bill is an exquisite and intricate amendment to the City of Gainesville’s Charter that fires the City Commission,” Alachua Chronicle, April 27, 2023). The answer will be very few. The obvious and despicable calculation is that the unnecessary word “local” in the title juxtapositioned closely to the words “Governor-Appointed” will somehow overcome widespread voter dissatisfaction with their GRU bills. A dysfunctional do-nothing GRU Authority heavy on county members providing no representation for county GRU ratepayers has invited this poison pill referendum, the earlier City/Nee attack on GRU Rights-of-Way, ongoing massive and unknown SLA (Service Level Agreement) losses, etc.
  3. The draft question refers to an “APPOINTED ADMINISTRATOR” of GRU when in fact there is no such person. This is misleading. Our current grandfathered, interim GRU CEO/GM is an employee of the Authority that is off the rails along with Nee et al. It is deeply disturbing that the current GRU CEO/GM was stripped of all powers as of 7/1/23 but upholds outlawed policies like a czar. Section 1 of HB1645 repealed section 3.06 of the City Charter that had made the GRU GM a Charter Officer of the City. 31 ordinances empowering the GRU GM were wiped away. Deletion of Section 2 of Article VII “in its entirety” only leaves this outcome fully intact. This is misleading.
  4. The roles of the current GRU CEO/GM and Authority are to be immediately transferred to “THE ELECTED CITY COMMISSION AND CHARTER OFFICER.” This would prevent Governor-appointed replacement Mayor/City Commissioners from “serving” as GRU Governors. Ridiculous results are necessarily erroneous. Such “CHARTER OFFICER” is NOT identified either (control of GRU is intended to go to the City Manager). This again is misleading. 
  5. Finally, in flagrant violation of a single subject rule governing such a referendum, the referendum calls for “ELIMINATING LIMITATIONS ON THE GOVERNMENT SERVICES CONTRIBUTION AND UTILITY DIRECTIVES.” Thus, GRU is to be codified in the City Charter as a political ATM for the current City Commission regime. I count at least four (4) different questions as follows: 
    • Abolish the Governor-Appointed GRU Authority?
    • Abolish GRU CEO/GM?
    • Eliminate limitations on the Government Services Contribution (GSC)?
    • Eliminate limitations on utility directives?

This is known in legal parlance as “logrolling”.

To hell with the GRU bond covenants and credit rating (see “Konish: Basic facts About GRU debt”, Alachua Chronicle, March 3, 2023). The proposed ballot measure, if included on a ballot, would not be legally binding. It would create enormous confusion that could never be settled by the proposed, ill-advised and unnecessary $200,000+/ 2-year bond “validation” proceeding. There is ambiguity as to which election ballot this measure would be placed on (August Primary, November General Election, concurrent, or as a separate special election in November or some other date). 

Unless the State and/or ratepayers aggressively intervene, GRU ratepaters at large are in for a very rough ride. GRU could quickly become insolvent (See “Konish: GRU ratepayers are stranded on an energy and financial island”, Alachua Chronicle, March 13, 2023). 

Jim Konish, Gainesville

The opinions expressed by letter or opinion writers are their own and do not necessarily represent the views of AlachuaChronicle.com. Letters may be submitted to info@alachuachronicle.com and are published at the discretion of the editor.

  • Let the logroll begin. Then after the City takes control of Utility again, the State Legislature should pass a law prohibiting any City owned utilities from providing services (all services, gas, electric, water, fiber, etc) outside of its City limits. Force the City to sell it’s utility assets outside of the City limits.

    If the ratepayers outside of the City limits can not vote on the City’s referendum (or the Commissioners that control the Utility) then they should not be held prisoner to the whims of the City Commission on how it runs Utility.

  • Nee’s been spending a lot of time on his knees of late.
    That $500k buys a lot of services.

  • GRU was abused by a toxic friendship. The friend made its dependency even worse by aggravating the circumstances typical of a college town. Instead of trying to heal the friendship.

  • I recommend (again) Ed Bielarski’s book, “The City that Lost Control: The True Story of How Greed, Deception, Politics, and a Battle over Green Energy Shattered a Community” — the book provides a comprehensive historical timeline of the events leading up to where we are today.

  • The City is like Gollum from Lord of the Rings. They just can’t give up their Precious. They don’t care how much money they have to spend or how much time they waste or how many frivolous lawsuits they need to file, they will do anything to keep their Precious, even if it means destroying their Precious in the process.

  • These folks are twisted in their minds and actions, they like power, they are not going down with out a fight, they need to go to jail, that is the ONLY thing that is going to wake them up. MAYBE.

  • Konish, previously rejected by city voters by a 4 to 1 margin, has hitched his star to the usurpers from Newberry (Clemons), Marion County (where Perry got his votes from), and Tallahassee (where the GOP state legislature does the bidding of its party members), and their preoccupied and uber partisan governor who in his selection of the “authority” got the members party donations right, but not where they lived. Given that Clemons and Perry stayed in office by gerrymandering – they were previously “my representatives” (I live in Alachua County 2.5 miles from Gainesville) but my state House rep is in McClenny and state Senator in Orange Park – this comment is particular BS:

    “Title: LOCAL PUBLIC UTILITIES
    Comment: A City-owned public utility is “local” per se. This redundant language in the title is an ongoing attempt to brand our local elected Republican State Representatives as outsiders, and is misleading as such. It is a partisan dog whistle.”

    Konish’s self quoting and self referential article alleges high partisanship by the actual owners of GRU while assigning high standards to the partisan and self dealing hacks – Perry received at least $100k in dark money from FPL.

    No wonder city voters rejected this traitorous clown.

    • This much vitriol against Mr. Konish completely devoid of any attempt to address his assertions seems to indicate he must be getting close to the truth.

      • Steve, absent getting into the weeds of his many allegations (are you going to do the homework to confirm them?), his known misstatements – previously (he saw no problem with the “authority’s” membership problem and suggested an non-legal end run around it) and currently – call into question his judgement, motives, and fealty to the rule of law.

          • Citizen, did not and still don’t know enough to have an informed opinion. My guess is that it’s not as bad as it’s denouncer claim but not all it’s proponents thought. Buying it was apparently a better decision that not buying it when it came up for that but I could be persuaded I am wrong.

        • One thing I’ve never been able to figure out from your comments: do you actually care if GRU survives? Or is it OK with you that the utility and the city are driven into bankruptcy, so long as democrats are in charge?

          • Steve, the utility has an A rating, and about a year ago, before the state intervention, an AA rating, so I seriously doubt there is a question of it’s survival. If there was, the state could have intervened in other ways – economic experts set goals with timetables and monitor periodic progress – than a take over by an “authority” who’s only credential was members who gave money to the GOP.

            I have only argued here that the city’s elected leaders should run and take responsibility for whatever happens to GRU, as should it’s citizens who elected them. “Throw the bums out” is a prerogative of the citizens of democracies. I am a democrat and almost always vote that way, and have yet to see any evidence that GOP office holders earn any claim to more economic responsibility, but I would not argue on any principle if an informed citizenry threw out these particular “bums”.

  • Even if this initiative gets on the ballot and is approved by city voters it still does not change the fact that state law supersedes local ordinances. The city commissioners and attorney know this and are irresponsibly attempting to create more confusion and more political activism and more wasted resources on an ill-fated legal fight

  • “Opponents of reform of GRU governance create confusion and chaos”
    The Dems have been doing this for years and apparently it works on about 50% of the electorate because they are too stupid to comprehend what is being proposed and done to them.

  • I have never observed anyone in such dire need of an editor than Konish and his screeds.

    Even if he is correct about anything his long winded wordy screeds are ineffective.

    • Lol just say you didn’t pass 8th grade reading… nothing about his prose is hard to understand in the slightest.

  • I commend those readers who commented on the initial post by Jennifer on 4/22/24 who saw how and why the proposed referendum is fatally flawed.

  • It has been proven beyond a shadow of a doubt for decades that City control of GRU does not work.

    Nearly $2 billion in debt. The 2nd highest utility rates in Florida. A bloated City government so absolutely addicted to GRU revenue that it cannot actually function without it.

    40% of GRU ratepayers live outside the City and have no say in Gainesville elections, yet they must pay ever-increasing rates to fund the debt and pet projects/programs of City politicians (essentially taxation without representation).

    The intent of the law was clear: to free GRU from the greed and corruption of our local petty tyrants, right the ship, and start running GRU like an efficient utility again.

    Now these shameless thieves are doing everything they can to drag out and thwart the process, burning our tax dollars all along the way. Every time you think they can’t go any lower, they do.

    • Dad, the city built and owns GRU, which has been in existence and owned by the city since 1912 and should be and is a source of pride for the city. Any theft which has occurred has been from the citizens who ultimately own it by GOP officials who are not elected by them. One of those officials (Sen Perry) has received $100k from Fl Power & Light that he tried to hide. IF the utility is in trouble, and this wasn’t a local power grab, other fair and reasonable oversight and direction could have been ordered by the state in the form of oversight by non-partisan economic experts, including goals, time tables, and progress reports. Instead, besides for simple residency requirements which our incompetent and overly partisan governor screwed up, an “authority” with no particular credentials other than being selected from GOP donors was mandated. Input from elected leaders, expert opinion, and even public comment was squelched in Tallahassee at the hearings for the bill with those directly involved and experienced in the issue – who also travelled 130 miles -were given 1 minute to comment! Look it up!

      No doubt if this is bill before the city commission is passed, this will create a semi-crisis with the state legislature – good! Their over reach and partisan motives deserve revisiting in whatever format city officials can muster.

      PS You and others allege “corruption” by commissioners without any evidence of personal enrichment, the usual meaning of that term. You may call them “incompetent”, “poorly informed”, “wrong”, “pandering”, or whatever allegations of substance and judgement you wish, but cut the crap on “corruption” unless you have evidence of personal enrichment. The only one involved in this issue who warrants that term is Sen Perry.

      • Whatever Saco.

        The childish response by the City Commission has everything o do with wanting to “reclaim the goose that laid the golden eggs” and personal ego, rather than any concept of fiduciary responsibility.

        This position is supported by the Commissions proposed ballot language that places leadership under direct control of the City Manager rather than a separate charter officer.

        Perhaps this is a reaction to the long string of hidden illicit subsidies discovered during the development of service level agreements between GRU and the City. Not all ratepayers are within the City limits. Envelop GRU within general government and its back to pillage and plunder. The change from a General Manager with extensive utility experience to direct control by a City Manager with no utility expertise and a commission who’s main motivation is keeping the money flowing to their pet projects, initiatives and pontifications at the expense of ratepayers.

        The Commission has consistently prioritized doing what’s popular to a hand full of vocal special interests rather than making decisions that are in the best long term interest of the majority of GRU customers and GRU as a business.

        GRU has been blessed with excellent leadership from Tony Cunningham and his staff during this time of change and uncertainty in communicating with Staff and effectively and proactively managing business for the long haul despite all the external noise. The organization and leadership needs stability and a supportive board to best serve the long term interests of our customers and community. The continued existence of a separate business oriented Utility Authority Board will be the best way to ensure the long term success of GRU and its ability to provide great utility services to its ratepayers.

        BTW – One thing that we can agree on is that term corrupt applies to Perry.

        • Having worked with Keith et. al on GRU Governance, the Audit, and the Masonic Lodge, I cannot find a trace of corruption.

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