Water system takeover delayed

A judge says he can't rule on the county's bid to condemn Florida Water Services before considering a similar suit filed by the city of Weeki Wachee.

BROOKSVILLE - Attorneys for Florida Water Services and Hernando County, sharing the same side of the courtroom Thursday, asked a judge to immediately approve a "friendly" condemnation effort that would transfer the company's Spring Hill utility to county control.

But despite the two parties' eagerness and financial interest in consummating their arrangement, Circuit Judge Daniel B. Merritt Sr. put off ruling on the matter for a month.

Merritt said he needed more time to consider a number of issues in the case, not the least of which is an effort by the city of Weeki Wachee to condemn the same utilities.

Weeki Wachee, a city of nine residents, used the Miami law firm of Steel Hector & Davis to file its condemnation lawsuit in July. Two days later, Hernando County announced that it had reached a $35.6-million agreement to buy the utility system from Florida Water.

Even amid tangled legal issues, that agreement is still being finalized.

"Out of an abundance of caution," as assistant county attorney Kurt Hitzemann told the judge Thursday, Hernando County decided to match Weeki Wachee's condemnation lawsuit as a way to protect its interests.

Attorneys for both the utility and Hernando County say their condemnation plan should be the one that is accepted because Florida Water is a willing participant.

"The condemnation statutes are to protect the individual who is losing their property," Hitzemann said after the hearing. "(Florida Water) has objected to the taking under Weeki Wachee's suit."

But Weeki Wachee, now represented by the Tampa firm of Hill, Ward & Henderson, persuaded the judge to consider further arguments that the tiny city has a vested interest in the case that is worthy of a hearing, which is now likely to be in mid October.

"I'm satisfied that there's not going to be a shotgun wedding between Hernando County and Florida Water," Robert Kelley Jr., one of the two attorneys representing Weeki Wachee, said after leaving the courtroom. The other attorney was Derrill Lee McAteer.

Weeki Wachee switched law firms in midstream as a matter of "locational convenience," according to Weeki Wachee city attorney Joe Mason. Initially, when the city thought it was the sole player in condemning Florida Water and negotiations were taking place in South Florida, it made sense to have the Miami firm of Steel Hector & Davis, Mason said.

But with the action now centered in a Hernando courtroom, Weeki Wachee brought in the Tampa firm, Mason said. Despite having an annual budget of only about $20,000, Mason said Weeki Wachee is capable of handling the legal expenses of the eminent domain suit.

At stake is ownership of Florida Water's utility system in Spring Hill, which includes 19 water wells, eight water treatment plants and a sewage treatment plant, among other things.

For the approximately 27,800 water and 6,600 sewer customers in Spring Hill, the case will determine who sets their monthly utility rates, repairs aged systems and begins the task of solving low water pressure problems.

Weeki Wachee says it is willing to pay $53-million for those utilities and that it has a vested interest in ensuring that the Weeki Wachee Spring will not be tapped as a water resource.

But Florida Water attorney Bill Moore told the judge that Weeki Wachee's claim is weak. The utility system is in an unincorporated area of Hernando County, not the city. And Hernando County already has an agreement with Florida Water to buy the Spring Hill utility, he said.

Moore repeatedly asked the judge to decide the case immediately. Delays, he said, are costing both the county and Florida Water vast sums of money.

The county must secure bonds to pay the $35.6-million purchase price, and the costs of those bonds are getting higher by the day, Moore said. At the same time, Florida Water is being deprived of interest it might receive from having the $35.6-million in its accounts.

- Robert King can be reached at 848-1432. Send e-mail to rking@sptimes.com

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