Letter: Former City Auditor writes that the City Commission should NEVER be in charge of GRU again
Letter to the editor
As the former City of Gaineville Auditor, employed soon after the GREC biomass fiasco had been perpetrated (likely with some bought-off officials) through hiding the details and changing the RFP to 100mW instead of 50mW, I studied the process and details for 6 months before issuing a very
lengthy report that identified many detrimental processes, all apparently approved by the City Commission. It is my firm, experienced opinion that the City Commission should NEVER be in charge of GRU again.
Carlos Holt, CPA, CIA, CFE and Audit Manager for the U.S. Air Force
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It should tell everyone something that the City Auditor position has turned over twice in a nine year period.
We lost 2 professional auditors due to malfeasance they would not hide. What do we have now?
I was one of them! LOL! It would up being an improvement for me anyway!
An auditor for the Mayor sounds just like what this city needs.
Mr. Holt, go for it!
When is the last time there was an analytical mind in the position of Mayor of Gainesville?
Rotation in recent years – 2 City Auditors, 3 Assistant City Auditors, 1 IT Audit Manager. The only person in that office for “approximately” five years is the current City Auditor. The rest are 3 years or less.
I agree, city commissioners haven proven to the detriment of everyone using GRU service how inept they are at finances. It is NOT right that county GRU customers do not have a voice in this. I am in city limits and voted NO to those corrupt people abusing GRU and customers.
I have always agreed that somehow out of city limit county users should have some say so or a vote in their own electric utility. I think that was supposed to be addressed by that governing board. I’ve been away so long I don’t know.
Rep Hinson offered an amendment for GRU customers outside the city to have representation and our Republican overlords from other counties wouldn’t let it come to a vote.
FPL and Duke Energy customers have no say in their policies or what they do with their profits. Why do you think they should for GRU which it’s city residents do have that say?
Make sense!
Jazzman, if all the city did was charge you for electric waste water etc. then MAYBE, but they add on millions just to transfer it to the city, but county residents didn’t ask for that, nor can they vote on it. The city uses the utility as a backdoor tax, one that doesn’t require voter approval, and they’ve been running the utility into MAJOR debt, until the state board took over and stopped the deceitful transfers, now the bills have returned to average and not the highest in the state. If the city had run it properly with some financial responsibility they would probably still control it, VOTE NO, TO KEEP THE BILLS LOW!
The solution to the problem you describe is an election and petitioning the county if that’s where you live.
Like any business, GRU has the right to dispose of it’s profits anyway that is legal. You can’t tell Duke Energy and FPL what to do with their profits, and in fact they use them for politics, including illegaly.
jazzman’s … most likely an incumbent… assertions are False on all accounts. Investor owned utilities report to And are governed by state regulators just as Gru is. Municipally owned utilities however do not account for use of income whereas investor own utilities do have to account both to investors and to the state regulators . Moreover, the average profit for investor-owned utilities is less than 10 percent And virtually all of them pay shareholders, meaning anyone who owns a share of stock in the utility. Utility shareholders are also called the owners Of the utility and earn between 3 and 6% dividend. There was a time when municipally owned utilities run by locally elected officials borrowed less and had lower rates and co-ops even returned some of the money they earned back to the the ratepayers. That time for municipally owned utilities passed about 20 years ago even though folks like you want to keep The utility monopoly under the control of a local government majority by continuing to promote the defective theory that a very few temporary occupants of public office borrow less ,are more frugal, spend wisely, disclose their failures and understand better how to run a monopoly efficiently than those who understand a balance sheet
Real
Ignorance is understandable. Yours is played.
.
Mark, the lack of oversite you claim municipally owned utilities operate under are addressable fairly and equitably by reforming the state’s regulatory powers. Stealing property by politically hostile politicians should not be one of them, nor should the owners be punished by those same hostile politicians – there other ways to enforce either existing regulations and oversight.
As to publicy owned utilities having no profits they can spend in ways all their customers will approve of – give me break! How about illegal dark money to a political campign? Specifically the $200k FPL gave their boy – and local traitor – Sen Perry in his 2018 campaign to hold his seat? Did share holders AND customers all sign off on that? Surely you’re not “ignorant” of this, right?
https://www.gainesville.com/story/news/2022/08/14/florida-power-light-dark-money-2018-state-senate-race/10277503002/
PS Mark, I have never run for or won an election. I DK any of the current or past commissioners in either of our local governments.
On this issue I write in favor of democratic means to solve our problems and against the current reign of King Ron and his GOP stooges who repeatedly and regularly squash local control and wage partisan war on Democrats. That’s not the proper role for the chief executive over all Floridians and our government.
Jazzercise. It’s funny how you keep comparing FPL and Duke to GRU since you’re a stickler for saying that GRU is supposed to be owned by its citizens. Both FPL and Duke are publicly traded companies and NOT owned by its customers. Keep comparing Watermelons to limes. And no, not all of GRU’s customers have a say. Almost 40% of its customers have taxation without representation!
Bob, GRU is not owned by county residents. If they want to own a utility they should petition the county to buy into GRU or to get them hooked up with another utility company.
I looked but can’t find out why the amendment was voted down by the legislature but after reading it I can make a “guesstimate”. Section 704 (3) of the amendment discusses adjusting the composition of the Authority upon the expiration of any member’s term or any Authority vacancy. In this section it says that if the total electric meters serving outside customers exceeds 40% a second member from outside the city will be seated. Sounds fair and agreeable. However, the amendment continues stating that the converse situation (i.e. less than 40%) the Governor must appoint a qualified elector of the city to serve the term that otherwise would have been served by a resident from outside the city boundaries. This leaves open the possibility that customers outside would lose their representation on the board. Take out that clause and I think the rest is fairly reasonable.
Here is the amendment: “Customers outside the City limits; option to leave GRU.—Customers supplied with service on July 1, 2023, who reside
outside the City boundaries shall have one opportunity to leave GRU and choose another utility provider”
Even if this had passed, there is no mechanism in Florida for customers to choose a utility provider. This amendment does not show how Hinson tried to solve the problem but how ignorant she is – and Jazzman keeps talking about this as if it were somehow a serious proposal. It wasn’t.
Hannah, I didn’t realize that she had put out 5 amendments. My comment was on one of them. I just read the others, including the one you reference. I agree with you, that one makes no sense. I live in Alachua and get my services from the city (who buys some of their power from GRU) but can’t switch to Clay electric which services some of Alachua.
Yes, that amendment would have been impossible to enact if passed and was not serious. Neither was the bill that passed since it divested forever – there is no time limit on the bill – control of property from it’s owners who’s power was enforced in a democracy by voting, and those doing the divesting in no way represented those owners. Unless you think theft is “serious”.
This amendment by Hinson was to have the “authority” elected by GRU customers.
https://www.flsenate.gov/Session/Bill/2023/1645/Amendment/208369/PDF
“Democratic Rep. Yvonne Hayes Hinson offered five amendments to the bill, all of which failed a voice vote.
Hinson, who has opposed the effort to take the utility from the city, offered an amendment on the floor of the House to change how GRU board members are selected. Instead of being picked by the governor, Hison’s amendment would have all GRU customers vote on members.
The city commission has faced criticism from those outside of the city, who use the utility, but are unable to vote for commissioners. Clemons’ bill would require a member of the board to live outside the city if at least 40 percent of utility customers are outside the city.
Another amendment offered by Hinson would allow customers outside the city the option to leave GRU to find another provider.
Those opposing the so-called “takeover of GRU” have raised concerns about the proposed board selling off parts, or all of the utility. Clemons maintains his bill doesn’t allow the board to unilaterally sell the utility. However, Hinson has offered an amendment that would clarify the point stating, “The Authority may not sell, transfer, or gift the GRU without approval at referendum by the electors of the City.”
She also proposed an amendment limiting the board’s ability to issue bonds.
The final amendment would put the issue up to the voters. It would require a majority of people living in the GRU service area to vote in favor of the bill in a referendum for the legislation to take effect.”
TV20 News
It is Taxation Without Representation!
While I wholeheartedly agree, I would like to see where the bodies are buried.
It’s too bad the public isn’t and hasn’t been privy to the detrimental processes except the aftereffects of their personal political agendas. Those aftereffects and continued increase in rates by those who falsely proclaim to be good stewards of our taxes and GRU profits are cause enough for me to vote “NO” and advise everyone else to do the same.
Thanks for your letter, wish you would have written it sooner.
Aftereffects – you mean like how Pegeen is paid to travel around the world sharing her grand wisdom at shoving the biomass plant down our throats?
Right, I would have written it sooner but wasn’t aware of the situation (I no longer live in FL).
The way we do it in a democracy is we hold regular elections and change leaders that way. This idiot must be from Russia.
Trump is screwing the country big time, but the solution isn’t an authority taking over the White House.
IT’S AN ELECTION!
What about the 2 billion wood burner, 8,000 garbage cans, free bus service ????
So…you support all elected officials since they are voted in? I know for a fact you do not. Either you are a CoG commissioner or one of their sycophants.
You are only about elections if they go the way you wish them to. I have not once heard you talk about runaway spending on the local level. Yes, fed is screwed up…but so is our city!
I agree with you from time to time, but when you resort to namecalling and tow the misinformation line spread locally I cannot do it.
Disc, I favor throwing the bums out in the next election and impeachment and jail for those who are proven guilty. That’s how we do it in America, maybe not in Florida.
As I said before, you’re likely one of those people who would rather risk the safety and security of those under the care and guardianship of those in authority, rather than remove the perpetrators and the effect they have on the vulnerable. The effect after 2 or 4 years of exposure to abuse is a catastrophe just waiting to happen.
By the way, it’s a vote for financial responsibility or financial negligence. It will be interesting to see where Gainesville voters’ loyalties lie. Whether that’s grounded in political fealty or fiscal concern will determine the outcome.
From the guy who supported the creepy dude Gillum for governor.
Jazzy Jeff. First off, we are a Constitutional Republic, NOT a Democracy. Secondly, since you bring up national politics, show us where the Democrats held a ‘regular election’ to install Harris as the Presidential candidate. Please define ‘screwing the country big time’ since I didn’t see you use that term AT ALL in the last administration. Once again, DNC talking points.
A Republic is a form of democracy still ruled by voters.
Harris was officially endorsed by the electors selected in the primaries (which Biden won). Time did not allow for a full primary season after Biden dropped out.
At least democrats decide against running a candidate past his prime. The GOP stuck with an often confused convicted felon who was also indicted for 2 other felonies.
The only commissioners with business experience are in the FUNERAL biz. That’s alarming enough, folks.
I wonder how much weight GRU employees’ votes count? Since communists supposedly revere the “owner-worker” has the City ever polled them?
If they’re smart they’d vote no, too. If they’re smart… 🤔🧐
Voting NO is the best way to keep the greedy hands off the money.
(“likely with some bought-off officials”)
Wow. That’s a helluva accusation followed up with zero evidence.
Even the 179 page Navigant Report from 2015 concluded there was nothing illegal/nefarious that occurred at any time leading up to the signing of the biomass contract. Did Holt even bother to read that extensive, in-depth report?
Regardless, for him to make such an inflammatory and unsubstantiated claim against “officials” is highly unprofessional for someone with so many certifications after his name.
Maybe he’s till mad that when he was fired by the city commission they rejected his attempt to extort a $300,000 severance (v. the 20 weeks severance pay per his contract, which he got).