Seth Johnson
The Gainesville Regional Utilities Authority (GRUA) now manages the utility with its more than 700 employees, more than 100,000 customers and $3 billion in assets after four members were sworn in Wednesday at City Hall for their first meeting.
Gov. Ron DeSantis appointed James Coats IV, Robert Karow and Eric Lawson to the authority last week and announced the appointments of Craig Carter and Dr. Tara Ezzell just four hours before Wednesday’s meeting.
The GRUA voted unanimously, with Ezzell absent for the meeting, to elect Carter as chair with Coats as vice chair.
The GRUA also made motions on meeting logistics, deciding to hold monthly meetings on the first Wednesday of each month at 5:30 p.m., with additional special meetings or workshops as needed. The authority plans to meet at a GRU facility and voiced support for live streaming meetings instead of just keeping minutes or recordings.
Tony Cunningham, general manager/CEO of the utility, told the authority that live streaming capabilities should be ready for the first meeting and, if not, he would find an alternative site for the first meeting.
The meetings will also be posted at least seven days in advance including on the city of Gainesville’s website. The next GRUA meeting would be on Nov. 1.
The authority also voted to allow public comment at the meeting.
Cunningham also outlined the items that the GRU staff will bring before the authority, including rate changes, fees and assessment changes, one-off contracts over $100,000, eminent domain decisions, bond issuances, disposal of assets and annual budgets.
He also highlighted four important projects the utility is working on—the creation of an integrated resource plan, the installation of advanced metering infrastructure, the sale of the utility’s trunked radio system and the utility’s $1.7 billion in debt.
With the new authority came introductions, and Cunningham and other leaders ran through their history with GRU and their responsibilities. Each authority member also ran through their biographies.
Many public commenters said they were glad the authority would now manage the utility; five other public commenters brought up residency of the members, questioning their legitimacy.
The meeting comes on the heels of a lawsuit filed by the city of Gainesville against DeSantis, Attorney General Ashley Moody and Secretary of State Cord Byrd. Leon County Judge Angela Dempsey ruled against the city last week, allowing the GRUA meeting to proceed.
Since then, two members of Gainesville Residents United, a nonprofit created to sue over the authority, have sued the governor’s nomination process and nominees.
At least three of the five GRUA members live outside Gainesville city limits, with Carter within city limits. However, state Rep. Chuck Clemons, R-Newberry, who filed the bill creating the authority, believes the governor is within his rights.
While the member ratio for future GRUA boards must reflect the ratio of ratepayers within and outside city limits, Clemons’ office sent an analysis to local media saying the law allows the initial authority to have at least one but up to all of the members live outside city limits.
City Attorney Daniel Nee, who represented Gainesville in its lawsuit, served as legal counsel to the GRUA on Wednesday.
Coats asked Nee who he reports to and about his experience with utility law and conflicts of interests. Nee replied that the City Commission appoints his position but that his obligation is to the city, with clients including city departments, the City Commission and now the GRUA.
Nee said some sharp points will remain with the flow of city work shifts with the GRUA, but he said staff will work them out because of the goal to provide reliable services.
“It can be a painful process, but it’s going to be a process,” Nee said. “And, we’re going to be here with you to ensure that everything works.”
Carter, who also serves as vice chair of the Gainesville Regional Airport Authority, said the city worked through the same issues when the airport shifted to the current system. Now, he said the airport authority and city staff work without problems.
Coats also asked who owned the utility. He quoted Mayor Harvey Ward and a public commenter who said Gainesville residents own the utility, and a slogan by the utility is “owned by the people it serves.”
Nee answered that Gainesville residents, ratepayers or unincorporated customers don’t have ownership like stock in a company.
“It is owned by the municipal corporation—that is the city of Gainesville,” Nee said. “The city of Gainesville will have many stakeholders, and that is another term you can use for our various neighbors, but it’s not like a publicly traded corporation where you might have people that are shareholders and actually claim to be the owners.”
During member comment, Coats returned to the idea of citizen ownership while also addressing the City Commission and Alachua County Board of County Commissioners.
He asked how many audience members had voted for a rate increase.
“Interesting, not one of you,” Coats said. “The illusion of citizen ownership is over. It is time to reduce GRU’s debt, improve and upgrade our infrastructure and truly put this utility in the hands of every ratepayer under GRU’s umbrella.”
To the Gainesville City Commission, he thanked them for their service and noted the challenges inherited by the relatively new City Commission, which was seated in January.
“What you do now defines the path forward,” Coats said. “Please remember that everyone is watching and taking note. Get up, brush yourself off, and get to work dealing with balancing the city’s budget. GRU is in good hands.”
He said he looked forward to working with the county commissioners and would be proud to discuss communications, economic development and other areas with them.
He also addressed his fellow GRUA members: “I believe we have excellent management at GRU. It simply needs a clearer, non-politicized direction. However, the direction must not be suggesting higher rates. If anyone wants to suggest higher rates, please submit your resignation.”
Editor’s note: This story has been updated to clarify the source of Chuck Clemons’ position on GRUA appointments.
Thank you, Seth.
Seth Johnson I would like to commend you for your excellent coverage of the GRU process. Clear concise and factual .. thank you Sir !
For the first time in many years I see a light at the end of what is a very long tunnel. One can see that there is a lot of tough love coming but perhaps in a few years we can once again see GRU be the quality utility it once was. Good reporting MAIN ST DAILY. Keep on top of this one👍
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Mr. Coates THANKYOU FOR that Anyone wanting to Suggest Higher Rates Submit your Resignation…….
Mr Coates seems to be interested in who everyone else has a responsibility to, I’d be interested to hear him give his qualifications to be there, and who he’s responsible to since he wasn’t chosen by the owners/utility members.
Appointment by gov. Desantis. That’s why Kyle that’s why….
As a Gville resident i want a breakdown of the $1,500,000,000 debt. Where did it come from? How did it accumulate to this level? Who is the 1,500,000,000 owed to?
What is the rate being charged to GRU to carry the debt?
Why must customers be held liable for paying this debt accumulated by irresponsible GRU monetary policy?
No surprise why the gov. decided to intervene.
The woke city counsel of Gainesville created this year after year. GRU has been plundered to the point of insolvency by the woke mob in Gainesville. Zero responsibility in governing. They borrowed and spent your future on no value spending. They doubled down on worthless “Green Energy” that cost huge amount of borrowed money.
The citizens of Gainesville own this problem. Year after year the citizens elected unqualified leadership that demonstrate every day they can’t manage a 7/11 much less our city.
A glimmer of hope for this city, which up until now seemed to be on a downward spiral of bad leftist policies.
. I’m disappointed in Chuck Clemons. I guess Chuck Clemons doesn’t want to fight the Governor but it sure appears that the law passed stated 4 members would be City residents. If the lawsuit is successful then any action this Board takes will be considered illegitimate.
Read it again Dennis but not the Gville Suns version.
The Sun isn’t fact based journalism. It sound fantasy narratives.
Thank you for this article on the process of transition underway with GRU. Streaming meetings and continued quality coverage of them will bring much needed light to the issues……
Gainesville resident tax and rate payers deserve no less.