Decision on water systems delayed (Citrus County)

Commissioners hear that customers and the county could save money if the county acquires FGUA systems. Still, they will seek more advice.

By CATHERINE E. SHOICHET
Published December 21, 2005


INVERNESS - County commissioners on Tuesday postponed their decision whether to acquire the Florida Governmental Utility Authority's Citrus systems.

But they did vote unanimously to appropriate $25,000 from the county's contingency fund so consultants can complete a more detailed analysis of the possible acquisition.

"I just don't feel comfortable making a decision here today with all of these unanswered questions," commission Chairman Gary Bartell said.

In the next few weeks, the consultants, FGUA officials and representatives from the county staff will hash out a more detailed report, including comparisons of specific costs under county and FGUA operation.

They will present their interim findings at the Jan. 10 County Commission meeting, when commissioners will decide whether to schedule an interim meeting to decide on the acquisition or wait until their Feb. 14 meeting to vote.

In Citrus, FGUA has water systems serving Citrus Springs, Pine Ridge, Apache Shores, Lakeside, Gospel Island, Point O' Woods, Spring Gardens, Sugarmill Woods, Golden Terrace Estates, Oak Forest and Rosemont/Rolling Green. It also has five wastewater systems.

The systems serve about 11,300 water customers and 5,215 wastewater customers.

The commission's decision Tuesday came after nearly three hours of presentations and discussion.

John Jenkins, a lawyer with the Tallahassee firm of Rose, Sundstrom & Bentley, told commissioners that customers could save money if the county acquires the FGUA's Citrus systems. He said commissioners were essentially weighing two issues: accountability and financial impact.

Accountability would increase if the county bought the systems, he said.

Financial consultant Mike Burton of Burton & Associates of St. Augustine told commissioners that the county could expect savings of at least $500,000 in administrative and general expenses, regulatory assessments and management of the expenses.

Under county ownership, water and wastewater rates would increase 48.2 percent in the next 10 years. Under FGUA ownership, the rates would rise 63.4 percent in that time period.

"There will be the need for (rate) increases under either scenario, but it will be less under the county," he said.

FGUA officials at Tuesday's commission meeting said numbers used in Burton's report were inaccurate.

David Miles, the utility's special projects administrator and former chief financial officer, said Burton's projections inexplicably increased operating costs and decreased revenues. And financial projections were made too far in advance, he said.

"Normally doing projections beyond five years out is really a crap shoot . . . there are so many things that will change over time that it's much more realistic to do only a five-year projection," Miles said.

But Burton said that even if he had used more liberal projections, the benefit to the county would be clear. "Under optimistic conditions or conservative conditions, the differential would still be very similar under both," Burton said.

Commissioners also asked FGUA officials present at the meeting why the utility had recently begun talking with county officials about helping to design improved water and wastewater systems in Chassahowitzka.

"We're just willing to help," FGUA director of operations Charles Sweat said. "We're just glad that we can help."

But Bartell said he was skeptical of the utility's renewed interest in Chassahowtizka. And he said he expressed that skepticism when he met with FGUA systems manager Robert Sheets last week.

"I said, you're six months late . . . Six months ago was when we needed that help," Bartell said.

In other commission news:

Late Tuesday, the commission voted against creating an assessment to fund sewer service in Chassahowitzka.

The vote was 2-2, with Bartell and Commissioner Dennis Damato voting for an assessment to fund creation of a wastewater system in the coastal community. But Vicki Phillip and Joyce Valentino voted against it.

The fifth commissioner, Jim Fowler, who has expressed support for creating sewer systems in environmentally sensitive areas of the county, was not at the meeting Tuesday.

The commission may revisit the issue early next year. For more details, see Thursday's Citrus Times.

Commissioners postpone decision about utility purchase (Citrus Springs)

By Terry Witt

Faced with conflicting information, Citrus County commissioners Tuesday postponed a decision on whether to move forward with the purchase of the Florida Governmental Utility Authority’s water and sewer systems in Citrus County.

Commissioners voted instead to pay an additional $25,000 to the law firm of Rose, Sundstrom & Bentley, the consultant that prepared a report for the board on the proposed purchase, to perform more detailed studies on how FGUA’s customers and the county might be impacted by the purchase.

The firm has already been paid $50,000 for the preliminary study.

The board also told its consultants to meet with FGUA officials to discuss why the numbers cited in their report are in conflict with FGUA’s numbers.

FGUA purchased 11 water utilities and five wastewater utilities from Florida Water Services Corp. in November 2003, but customers have complained since that time about the organization’s lack of accountability. FGUA has no elected officials on its governing board and the organization initially claimed that it was not subject to county or state regulation.

The commission’s interest in purchasing FGUA’s system was due in part to FGUA attempts to impose property assessments to pay for water line extensions and water line maintenance in Citrus Springs and Pine Ridge without county approval. Commissioners insisted on having the assessments reviewed by a local board.

FGUA relented and allowed the Citrus County Water and Wastewater Authority to review the assessments, but by then commissioners had begun discussing the possibility of buying FGUA’s systems in Citrus County. The county has an agreement with FGUA that gives it the right to make such a purchase.

However, FGUA officials claim the county would be better off if the utilities remained in FGUA ownership.

At Tuesday’s meeting, FGUA’s financial expert, David Miles, questioned the consultant’s conclusion that the county could operate FGUA’s 11 water and five sewer systems in Citrus County at a lower cost and with lower rates.

However, attorney John R. Jenkins, who headed the study, stood by the numbers and noted Miles, who is employed by Government Services Group, a for-profit organization that manages FGUA’s utilities, has a vested interest in FGUA retaining ownership.

Miles also alleged Jenkins had used inaccurate numbers to conclude FGUA would be forced to raise water and sewer rates by 11.55 percent by the year 2009.

Jenkins responded there was nothing wrong with the numbers but that he had made less-optimistic assumptions about customer and revenue growth than Miles, and his more conservative approach resulted in different conclusions.

Board members tentatively agreed to meet in special session on Jan. 17 to listen to revised numbers about the proposed county purchase. They will make a final decision on whether to hold the special meeting at the regularly scheduled Jan. 10 commission meeting. The proposed purchase will also be discussed on Jan. 10.

Commissioners also instructed Assistant County Administrator Tom Dick and Utilities Regulatory Director Robert Knight to head a county government team that will examine the financial and staff impacts that might occur if the county bought the FGUA systems and managed them in-house, or if the county hired a contractor to do the work. Citrus County Utilties, the county-owned system, would triple in size if FGUA’s utilities were added to it.

County Administrator Richard Wesch, who sits on FGUA’s board of directors and is Dick’s supervisor, was told he could not be a party to the staff study or the discussions between FGUA and the board’s consultant. Commissioner Vicki Phillips said he had a conflict of interest.

Utility chief questions consultant’s report (Citrus County)

By Terry Witt

A key manager for the Florida Governmental Utility Authority on Monday said a consultant’s report that discusses whether Citrus County should purchase FGUA’s local water and sewer systems is riddled with “inaccuracies and inconsistencies.”

Systems Manager Robert Sheets sent a letter to County Commission Chairman Gary Bartell asking for an opportunity to appear before the board in January to address the problems he sees in the report. He said he couldn’t attend today’s board meeting.

The report by Rose, Sundstrom & Bentley, LLP will be discussed by commissioners beginning at 2 p.m. Bartell said he wants Sheets present to address his concerns.

“If we’re going to make a decision tomorrow, I would like all the facts,” Bartell said.

But Sheets said FGUA has not had an opportunity to conduct an extensive review of the recommendations outlined in the report. He said he received the report Sunday and could see it wasn’t factual.

“It’s full of inaccuracies, misquotes and outdated information,” Sheets told the Chronicle. “The information on cost numbers is ludicrous. It’s laughable.”

Among other things, Sheets said the report does not address whether Citrus County would increase staffing for its utility system, which would expand from 6,000 customers to 18,000 customers if the FGUA systems were added, and makes no mention of how staffing would be funded.

He said the report claims county staff was consulted before the report was made, but he said in reality only Utilities Regulatory Director Robert Knight was asked for information.

In his letter, Sheets said the FGUA fully recognizes Citrus County’s right to assume ownership of its 11 water and five wastewater systems. He said interlocal agreement gives the county the authority.

But he said he believes FGUA and the county can work together to address the following issues:

* Providing water and sewer to the Chassahowitzka area.

* Addressing the expanding number of private utility systems in the county in a cost-effective and environmentally responsible manner. There are currently 150 systems, Sheets said.

* Addressing the impact on the county’s lake system. Sheets said FGUA is working with Citrus County and the city of Inverness to try to protect the lakes.

Report on utilities purchase says county could operate more efficiently(Citrus County)

By Terry Witt

A consultant’s report released Friday says water and sewer utilities owned by the Florida Governmental Utility Authority in Citrus County would be less expensive to operate if the county owned them.

The report by Rose, Sundstrom & Bentley, LLP said customer rates would benefit from the cost savings.

Rate increases covering a 10-year planning period would be 15 percent less if the county owned the systems, cash reserves would be higher and the county’s borrowing requirements would be lower, the report said.

The report also said the county would have more accountability than FGUA.Rose, Sundstrom & Bentley LLP was hired by the Citrus County Commission on Oct. 11 to analyze whether the FGUA systems should be purchased by the county or left in FGUA’s hands. Burton & Associates Inc. prepared the financial analysis.“A preliminary financial assessment prepared by Burton & Associates Inc. provides that the cost to operate the Citrus Systems would be less under county ownership than under FGUA ownership,” the report said. “As a result, customer rates would benefit directly from county ownership.”When FGUA purchased the water and sewer systems in November 2003 from Florida Water Services Corp., the county retained the option of buying the utilities at a future date. Few in county government expected the purchase to occur this soon.

However, recent criticism of FGUA’s use of property assessments to pay for line maintenance and construction costs in Citrus Springs and Pine Ridge prompted commissioners to take an early look at a potential buyout.

The report, which is preliminary, appears to make a case for the county buying the systems.However, the report cautions that the county will have to do its own financial analysis to determine whether it would assume FGUA’s existing debt or issue bonds if it decides to buy the systems.

The report said FGUA’s existing bond debt is $21.8 million. Transition costs would be $280,000, and the county also would have to repay the $2.5 million FGUA borrowed as a “line of credit” after it took over the Citrus Systems.County Commission Chairman Gary Bartell said the key is whether the county could buy the systems without raising rates. He said FGUA agreed to keep rates stable for five years, except for annual adjustments for inflation.

However, some county officials say FGUA’s use of property assessments has breached its pledge not to increase rates. County Utilities Regulatory Director Robert Knight said the property assessments are a rate increase.

The report does not specifically answer the question of whether current rates could be maintained if the county took over the systems, but Bartell said Burton & Associates is expected to make a presentation at today’s meeting.“If they are going to recommend a rate increase, that won’t sit well with me,” Bartell said. “We’ll have to wait for the presentation. We just need good numbers so we can make an intelligent decision.”Cathy Taylor, director of the county’s Office of Management and Budget, said she had not been provided a copy of the report, but had requested it. Taylor said the numbers would have to show that rates would be equal to or less than current rates for the county to have an interest in purchasing FGUA’s systems.

County to weigh buying FGUA systems (Citrus County)

Customers could save money, according to a consultant's report that will be presented to the County Commission on Tuesday.

By CATHERINE E. SHOICHETPublished December 19, 2005

Customers could save money if the county acquires the Florida Governmental Utility's systems in Citrus, according to a consultant's report.

Because of the size of the county's existing utility system, the report says, operational costs would be less under county ownership.

"As a result, customer rates would benefit from direct county ownership," the report said.
The report, compiled by Tallahassee law firm Rose, Sundstrom & Bentley, will be presented to the County Commission at 2 p.m. Tuesday at the Citrus County Courthouse, 110 N Apopka, Inverness.

The law firm's report also refers to a preliminary financial assessment from Burton & Associates, which says that under county ownership, water and wastewater rates would increase 13.7 percent in the next five years and 48.2 percent in the next 10 years. Under FGUA ownership, the report says, water and sewer rates would increase 24.8 percent in the next five years and 63.4 percent in the next 10 years.

The report also criticizes the accountability of the FGUA to customers in Citrus.
"As a practical matter, decisions affecting Citrus County customers are made by representatives of other counties," the report said.

Statewide, the FGUA serves more than 46,000 customers in five counties - Citrus, Polk, Lee, Collier and Osceola - with systems in Citrus, Golden Gate, Lehigh Acres and Poinciana. In Citrus, it has 11 systems, servicing Citrus Springs, Pine Ridge, Apache Shores, Lakeside, Gospel Island, Point O' Woods, Spring Gardens, Sugarmill Woods, Golden Terrace Estates, Oak Forest and Rosemont/Rolling Green.

Those systems service about 11,300 water customers and 5,215 wastewater customers.
Citrus utilities serve about 6,700 water customers and nearly 4,000 sewer customers. In five years, those numbers will double, according to projections.

In October, commissioners voted to set aside $50,000 to pay the team of consultants to begin evaluating whether the county should buy the FGUA's systems in Citrus.

The move came in response to concerns that the utility lacks accountability.

County officials have criticized the FGUA since July, when the utility first proposed new line extension and maintenance fees for property owners in Citrus Springs and Pine Ridge. The line extension fees for Pine Ridge customers have since been dropped. The county's Water and Wastewater Authority approved water main extension fees in Citrus Springs earlier this month, but the board followed county staff recommendations rather than adopting a higher increase originally proposed by the FGUA.

At Tuesday's meeting, commissioners will decide whether to move forward with the acquisition process.

They also will discuss whether to set an assessment to fund the water and wastewater projects in Chassahowitzka.

FGUA systems manager Robert Sheets said he met this week with County Commission Chairman Gary Bartell and county staffers to discuss possible solutions for the wastewater portion of the Chassahowitzka project. County engineers are working to redesign that portion of the project to reduce its cost.

FGUA and Lee County

It has been a sad week for Lehigh Acres and all of the unincorporated areas of Lee County – On Friday 12/16/05 in Golden Gate -- Florida Governmental Utility Authority (FGUA) who owns the water and wastewater rights in Lehigh Acres started down a path of no return and started to open Pandora’s box -- The FGUA board minus the Lee County voting member Mr. Jim Lavender and/or (alt) Mr. Rick Diaz voted on FGUA Resolution 2005-36 which states –“the FGUA intends to use the uniform method for collecting non-ad valorem special assessments for the cost of providing capital improvements and maintenance services including but not limited to water and wastewater facilities to property within the unincorporated area of the Lee County, including but not limited to Lehigh Acres” commencing in November 2006. Mr. Jim Lavender and/or (alt) Mr. Rick Diaz could not be at Friday’s meeting do to personal reasons and the FGUA board would not consider mine or anyone’s else’s objections to the presumed use of their so called powers under Florida Statue.

This now means the FGUA has the power to serve populations within or outside of it service area of Lehigh Acres --- so if you live in Alva, Buckingham, North Fort Myers, Pine Island, Boca Grande and Estero -- Watch Out -- here they come --- Since the FGUA is not subject to Public Service Commission by Florida Statue 163.01 7(g)1, the only option is for everyone in the unincorporated areas of the Lee County to call or email your County Commissioner –

Commissioner BOB JANES DISTRICT No. 1 335-2224 email dist1@leegov.com
Commissioner DOUGLAS ST. CERNY DISTRICT No. 2 335-2227 email dist2@leegov.com
Commissioner RAY JUDAH DISTRICT No. 3 (239) 335-2223 email dist3@leegov.com
Commissioner TAMMY HALL DISTRICT No. 4 335-2226 email dist4@leegov.com
Commissioner JOHN ALBION DISTRICT No. 5 335-2225 email dist5@leegov.com

This presumed power by the Florida Governmental Utility Authority (FGUA) has under Florida Statues needs to be fixed by our local Legislators in Tallahassee and I personally challenge our local Legislators in Tallahassee and the County government to fix this issue before it goes too far and Pandora’s box can not be closed.

Robert Anderson
President
Lehigh Acres Watchdog, Inc
Email - watchdog@lehighacreswatchdog.com
Phone - 239-369-6223
P.O. Box 1778 Lehigh Acres Fl 33970

Board OKs water line assessments (Ctrus Springs)

By Dave Pieklik

A county board agreed Monday to allow a utility to implement water line extension fees to make up for trickling profits it says it’s facing due to population growth.

The Citrus County Water and Wastewater Authority voted to allow the Florida Governmental Utility Authority (FGUA) to assess a $1,910 prepaid fee, or $2,085 fee if applied to tax rolls, for future water line extensions in Citrus Springs. The board had previously agreed in September to impose a $2,068 interim rate while a final rate was determined; the board ruled Monday those residents should get refunded the difference.

The extension fees were approved to address the FGUA’s assertion that it’s losing money on constructing new water lines in the area because of the number of vacant lots that are bypassed. Previously, FGUA officials said they were taking out a $5 million line of credit to pay for the anticipated costs to add water lines to roughly 3,400 lots.“I think everybody realizes we’re kind of on new ground here,” authority chairman Mike Smallridge said of the authority’s approach to resolve the issues presented.The board also denied the utility’s request to allow a “line maintenance fee” in Pine Ridge and Citrus Springs to address large numbers of vacant lots. The fee — $16.55 in Citrus Springs and $37 in Pine Ridge — would be tacked on to residents’ bills to help pay for repairs and construction of water lines in these areas, which the utility indicated was to help recover lost money.

Utilities Regulatory Director Robert Knight said there was no evidence to support the fees.

Board member Cheryl Neff-Phillips also disagreed with the approach, saying if a fee were to be used, FGUA should “make it fair for everyone.”While the board passed most issues unanimously, there were some that caused debate. On the question about if the number of proposed lots to receive water service was appropriate, board members Robert Hnat and Walter Averill felt it wasn’t.

Under FGUA’s plan, the 3,400 lots would be serviced within the next five years, a number that was scaled back from 6,000 lots in the first phase of a six-phase effort to add water to the entire 34,000 vacant lots in the area. Both men suggested there wasn’t a need to build in less populated areas.Board member Ronald Broadbent agreed the number was not appropriate, saying there should be “no building (in other phases) until we figure out if what we’re doing now is appropriate.”No attorneys or spokespeople were present for FGUA, limiting the board to decide upon each issue, rather than let the public or board members discuss options. After the decisions were finalized, Knight said the utility would have 30 days to appeal the decision.

“We’ll see what kind of opposition or claims to a rehearing, if any, are made in that time,” he said.

If there are no appeals from FGUA or residents, the new rates will immediately take effect.

FGUA (Citrus Springs)

Water board approves higher main fees

Citrus Springs residents will still pay a lower rate than that suggested by the Florida Governmental Utility Authority. By CATHERINE E. SHOICHET Published December 7, 2005

LECANTO - The county's water authority unanimously approved higher water main extension fees for Citrus Springs. In doing so, the board followed county staff recommendations rather than adopting a higher increase originally proposed by the Florida Governmental Utility Authority.

Also Monday, the five-member board voted against the FGUA's proposed line maintenance fees in Pine Ridge and Citrus Springs.

The authority's decision came a month after a three-day marathon meeting session that included nearly 14 hours of attorney arguments and testimony by FGUA officials.

For lots in a special assessment area of 3,300 vacant lots in Citrus Springs and homes connecting to future line extensions by the utility, the water line extension fee will be $1,910. For homes connecting to water lines extended since the FGUA acquired the Citrus Springs system in 2003, the fee will be $1,635.

Homes connecting to lines that were part of the system before 2003 will pay the existing $446 line extension fee.

In July, the FGUA proposed a fee of $2,082 for residents of Citrus Springs and a $6,571 fee for residents of Pine Ridge who requested water line extensions after Dec. 1, 2003. FGUA officials eventually scaled back that proposal, eliminating the line extension fees for Pine Ridge residents and changing the proposed starting date several times.

In September, the Water and Wastewater Authority approved an interim fee of $2,068 for Citrus Springs residents requesting water line extensions. Property owners who paid that fee will be issued refunds based on how they fit into the new criteria established by the authority.
The FGUA's original fee proposal presented in July drew intense criticism from residents and county commissioners.

In October, the County Commission voted unanimously to hire a Tallahassee law firm to help the county evaluate whether to purchase the FGUA's 11 Citrus County systems. At Tuesday's County Commission meeting, a representative from the firm presented an update on his evaluation.

"I think it's important that there be a regulatory body that does review these rates. ... Had FGUA gone ahead and done everything they originally proposed ... we could really have a big problem here," water and wastewater authority board member Ronald F. Broadbent said at the end of Monday's meeting.

Authority members said Monday that the FGUA's proposed annual line maintenance fees of $16.55 in Citrus Springs and $37 in Pine Ridge were unfair and unjustified.

The water and wastewater authority also voted 4-1 to advise the FGUA not to finance additional line construction with bonds, a method that FGUA officials have said is essential to managing the system's growth.

FGUA special projects administrator David Miles said after the meeting that the utility was happy with the approved line extension fees and "somewhat disappointed" about the rejected maintenance fee proposal.

He said they would consider the authority's recommendation regarding bond financing.
Interested parties have 30 days to appeal the authority's decision.

Catherine E. Shoichet can be reached at cshoichet@sptimes.com or 352 860-7309.

Op-Ed in News Press

Op-Ed printed in News press Dec 6th -----

Many Lehigh Acres residents simply can't afford $17,500 to bring central water and sewer to their community. A recent suggestion by a state senator to opt for modern-day septic tanks over central sewer isn't the answer. While the cost of putting in new septic tanks at residences with malfunctioning systems would be less costly than central sewer, this would be a fragmented approach and while logical, offers no certainty that the existing pollution problems wouldn't simply resurface. A permanent, cohesive, long-term solution is needed.

The tough bullet to bite is the acknowledgement that a significant allocation of dollars from the county general fund or bonding the money must be earmarked annually to make central sewer affordable. Only by doing so will the state consider freeing up matching dollars, subsequently, lowering the property owners' burden.

Sure, modern septic systems would be a temporary improvement, but no oversight mechanism would stem the flow of bacteria from human waste leaching into the ground water and canals.

Funding a central sewer system is a key growth mechanism but making it reasonable for current homeowners and rate payers is the true key of good sound management.

ROBERT ANDERSON
Lehigh Acres


Oringinal Op-Ed Submitted to News-press ----

There’s no denying the fact that many, many Lehigh Acres residents simply can’t afford $17,500-plus to bring central water and sewer to their East Lee County community.

As county and state officials have learned, there are no simple solutions to the problem.A recent suggestion by state Senator to opt for modern-day septic tanks over central sewer isn’t the answer.While the cost of putting in new septic tanks at residences with currently malfunctioning systems would be less costly than central sewer, this would be a fragmented approach. That approach, while a logical suggestion, offers no certainty that the existing pollution problems wouldn’t simply resurface in years and decades to come.

A permanent, cohesive, long-term solution is needed.

The tough bullet to bite is the acknowledgement that a significant allocation of dollars from the county general fund or bonding the money must be earmarked annually to make central sewer affordable for Lehigh Acres citizens. Only by doing so will the state consider freeing up matching dollars thereby, subsequently, lowering the burden on property owners in the community.

Sure, modern septic systems would be a temporary improvement over many of the existing systems, but there’s no mechanism for oversight to stem the flow of bacteria from human waste leaching into the Lehigh Acres ground water and canal systems.

Were this Kansas, perhaps septic tanks would make sense. This is Lehigh Acres, where the water table is right under the earth’s surface.

It’s frustrating that the current situation — septic polluting the ground water and canal systems — has been realized for years yet corrective action remains uncertain. Add to that the fact that rapid growth and skyrocketing property values have brought a cash infusion to county government, and one wonders why bold steps have not been taken to solve the problem. Funding a central sewer system is a key growth mechanism but making it reasonable for current homeowners and rate payers is the true key of good sound management -- does the FGUA or the County have guts to step up to the table and talk -- so far the answer is no -- WHY?

Why did the News Paper the meaning ????????

FDEP fines FGUA

Florida DEP is about to fine Florida Government Utility Authority $52,800 in fines for dumping effluent in the canal system of Lehigh Acres -- The FDEP has told the Lehigh Acres Watchdog instead of paying the fine the FGUA could do in kind service on a ecological or environmental project in Lehigh Acres. When we contacted Charles Sweat of the FGUA – he also agreed to an in kind service which would be the best course of action for the FGUA board. FDEP requires that an in kind service is 1 1/2 times the fine minus any FDEP expenses so the current in kind service would be $79,200 for Lehigh Acres.

The Lehigh Acres Watchdog is asking the citizens of Lehigh Acres to send suggestions to us at watchdog@lehighacreswatchdog.com of an ecological or environmental project that FGUA could do to benefit Lehigh Acres.



Contact –

Robert Anderson
President
Lehigh Acres Watchdog, Inc
P.O. Box 1778
Lehigh Acres Fl 33970

watchdog@lehighacreswatchdog.com