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Utility shuts door on county
By JENNIFER FARRELL, Times Staff Writer SPRING HILL -- Florida Water Services has slammed shut the open-door policy it had extended to Hernando County during ongoing negotiations to sell its statewide utility network. In a letter sent Thursday to County Administrator Richard Radacky, Florida Water attorney Joe Mason said the company had rescinded permission for county representatives to inspect property and financial records related to the Spring Hill water and sewer systems. On Friday, Mason said the move was a direct result of the County Commission's decision Tuesday to oppose a pending $520-million deal between the Florida Governmental Utility Authority and ALLETE, Florida Water's Minnesota-based parent company. By rejecting the FGUA proposal as too expensive but pledging support for public ownership, commissioners will move for a forceful takeover through the legal process of condemnation, Mason predicted. "That changes the ball game completely," he said. "We can't be put in a position to allow the county to try to do its condemnation homework under the sham of saying, 'Oh well, we're still trying to hold hands with the GUA.' " County officials, who are mulling condemnation as an alternative, were stunned. "I can't believe it," said Chuck Lewis, county franchise regulator. "To come out and do this. They're doing it without any reason. We haven't started condemnation. We're still in the thick of FGUA." If not resolved, Lewis added, the action likely will hamstring the county's efforts to determine the Spring Hill system's value. Commissioners have considered joining with the FGUA as a vehicle to realize their long term goal of bringing the utility under public control. To that end, they hired financial and engineering consultants to kick the system's tires, so to speak, then determine its value. A preliminary report is expected by June 14, two weeks before the deadline to opt in or out of the FGUA deal, which would cost $47.9-million for the Spring Hill system. That report could now be in jeopardy, said Lewis. "I saw a laundry list of stuff that is still outstanding," he said. "If we don't get this resolved, we wouldn't be able to finish the entire due diligence." Len Tria, vice president of Coastal Engineering, said his firm had accomplished most of the necessary physical inspections during four days on site with representatives from Florida Water and FGUA. But more information is needed, he said. "We obviously have to have meetings to sit down and see where we are," Tria said. The action comes amid growing friction between the county and Florida Water involving problems in Spring Hill with low water pressure. Commissioners have denied the utility's request for more wells, and Mason has asked that they recuse themselves, suggesting they are using their regulatory authority to force down the company's value in preparation for condemnation. Meanwhile, commissioners wonder if the pressure is being artificially lowered to induce customers to complain to the county. Assistant County Attorney Kent Weissinger said the first priority is solving the pressure problems, but information gleaned through that process could also be useful in valuing the utility. "We are researching our legal alternatives," he said. Mason said Florida Water would still allow FGUA representatives access to the Spring Hill system and its records during ongoing sales negotiations. Paperwork generated or received by the FGUA is a public record, meaning Hernando County could still get information, he added. "They can go look at it," Mason said. "But they're not going to tag along on the GUA coattails." Mason said Florida Water would reopen its doors to Hernando County in exchange for a promise not to condemn the facility. Commissioner Diane Rowden, who said she is not yet sold on public ownership, called condemnation a last resort. She said her motivation is to get the best deal, preferably through give and take with Florida Water. "How do we know we have the best deal until we know what our product is worth?" she said. "And how do you know what the product is worth unless you examine it?" -- Jennifer Farrell covers Spring Hill and can be reached at 848-1432. Send e-mail to
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From today's Hernando Times |
