Issue of utility's value rises again

BROOKSVILLE -- Just as in mid November, Hernando County commissioners want to know the true value of Florida Water Services in Spring Hill.

Their earlier attempts to hire a company to make that assessment failed amid procedural problems in the selection process.

This time, they intend to avoid the chaos and get the job done properly before deciding whether to join a consortium that wants to buy the utility.

The effort could take as long as six months, County Administrator Paul McIntosh said. But the information still should be available before the Florida Governmental Utility Authority requires a definitive answer on the county's position, he added.

"We tried to expedite it and got into trouble for doing it," McIntosh said, referring to the first try, which ended without commissioners hiring a consultant and with the county's water protection efforts under inquiry by the State Attorney's Office. "We're not going to go down that road."

The scope of services for the project requires expertise in seven key areas, including hydrogeology, property appraisal and finances. The most important area will be engineering, McIntosh said.

The county wants several questions answered. These range from knowing the age and condition of system parts to understanding whether user rates are sufficient for bonding the purchase or condemnation of the system.

"We think it's a very comprehensive scope of services, and we're ready to proceed with advertising it," said Dick Radacky, deputy county administrator, who also serves as the project manager.

Commissioner Diane Rowden asked whether the project would be done under one contract or several, considering the seven separate expertise areas listed. McIntosh said he expected a single firm would lead the study, but that it could hire its own consultants if needed.

The cost will be about $65,000, or about 30 percent higher than originally projected, and should be covered by the bond proceeds if the county moves ahead with the Florida Water acquisition, McIntosh said. The FGUA has said the value of the Spring Hill system is about $44-million, he noted, urging commissioners not to focus on the amount.

"I don't think we need to skimp on the quality of service we obtain," McIntosh said.

Commissioner Chris Kingsley cautioned all involved to stop using the FGUA figure, before it appears the county has accepted that valuation. "We don't know (the value) specifically," Kingsley said. "That is what due diligence is all about."

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