The Gainesville Regional Utilities (GRU) Authority on Wednesday gave the green light to its attorneys to sue in order to prevent a question from reaching Gainesville voters on the November ballot.
The GRU Authority also passed a resolution asking the Gainesville City Commission to repeal its ordinances that first placed the referendum on the ballot. Two other resolutions passed at the meeting direct GRU General Manager Ed Bielarski to hire legal counsel separate from the city attorney’s office and request the city to repeal its new right-of-way policy.
The authority directors, the new term for board members, have previously discussed legal action to prevent the November referendum, which GRU views as illegal. In August, the GRU Authority sent a letter to Florida’s attorney general asking for a legal opinion on the referendum.
Specifically, “can a special act of the Legislature, the bill passed to create the GRU Authority, be repealed via a city charter amendment only voted on by city voters?”
At that meeting, the directors also asked its Folds Walker LLC. legal team to continue looking at litigation options. Wednesday’s motion allows the legal team in consultation with Bielarski to file the lawsuit when it is ready.
Scott Walker, managing partner with the firm, said GRU is seeking relief through its resolution that asks the Gainesville City Commission to repeal the referendum. However, if the city refuses, which it has signaled will be the case, Walker said the utility would likely file an action of declaratory relief.
Walker said that while GRU is a part of the city, he believes House Bill 1645, which created the authority, makes the utility a separate operating entity and gives the authority standing to sue.
The motion to allow the legal team to move forward passed unanimously.
The directors also unanimously passed a resolution that directs Bielarski to hire a utility attorney not associated with the Gainesville City Commission, like the current city attorney office.
Another resolution asks the City Commission to repeal a March ordinance that loops GRU into its permitting requirements when working in the city’s right-of-way.
Previously, GRU has always operated without the same permitting requirements that other companies would need to work in the city-owned right-of-way. Now that GRU is managed by the authority, the city said it needs to follow the permitting policy.
The permitting issue is one of several that deal with how the city of Gainesville works with a utility that is both a part of the city but also under a governor-appointed board instead of the City Commission.
While listed as a request to repeal the ordinances, the resolution carries a harder punch.
House Bill 1645 says that where city ordinances or resolutions disagree with the bill, the bill should be obeyed. Bielarski told Mainstreet that if the City Commission decides not to repeal the March ordinances, his orders are to follow the GRU Authority and its directions.
That direction, also listed in the resolution, would exempt GRU from the city’s permitting policy, meaning the utility could view the resolution as allowing right-of-way work without permits.
“In addition, to the extent this resolution conflicts with any provisions of the City of Gainesville Code of Ordinances, the City Commission of the City of Gainesville is hereby noticed to amend the Code of Ordinances accordingly,” the resolution reads.
Bobby Mermer, coordinator for the Alachua County Labor Coalition, said the resolution creates a crisis for the city because GRU can pass any ordinance that conflicts with Gainesville codes and lean on HB 1645 as support.
Wednesday’s meeting was also the first for Director Jack Jacobs, appointed by Gov. Ron DeSantis in August.
Jacobs fills the seat left vacant by Bielarski when he resigned to take over as general manager following the firing of Tony Cunningham.
At the end of the meeting, Jacobs said the utility got into its large debt load over many years. He said it would also take many years for GRU to shed that debt.
“I would love to not have to be on this board, but here we are,” Jacobs said. “The city utilities should be a crowned jewel of any city.”
He said the authority will do its best to improve the utility. He said he hoped the work doesn’t involve continued sparring with the city.
Editor’s note: The GRU Authority has switched to calling members “directors” in all communications instead of “board members” as used in the past. Mainstreet will now use the term “directors” to match GRU and avoid confusion.
One of the arguments that people had for taking GRU out of the City’s hands was that County residents using GRU had no voice. So, here’s a question: What voice do they have, now? Seems that if anything, GRU has been made even less responsive to local issues; answerable only to the Governor.
Well , Ray . It looks like the GRU County Tax slaves at the mercy of Gainesville voters past and present are getting the 25% surcharge removed from their bills. That’s a step in the right direction!
No matter your opinions on GRU management currently or in the past, ask yourself about accountability – who is accountable for creating the new authority and to whom are these “directors” accountable? The voters had no direct voice in the creation. Our representatives, both term-limited, were no longer subject to voters’ approval or disapproval when they acted. All directors were appointed by the governor and are accountable only to him (and yes he’s term limited as well). Hundreds of millions of dollars of assets that YOU paid for with your taxes and utility bills are now under the control of whom? What we are left with are back and forth lawsuits, all paid with your rates and taxes. The lawyers will do just fine, the rest of us not so much.
Well stated, I agree.