Tempers flare at utility meeting (Citrus Springs)
Citrus County’s chief utility regulator demanded an apology Tuesday when he was accused of favoring the county’s purchase of the Florida Governmental Utility Authority (FGUA), a charge he denied.
But he didn’t get one.
Robert Knight was accused by FGUA Special Projects Administrator David Miles of having a conflict of interest in the proposed purchase of the government utility by the Citrus County Commission.
The allegation was made during a Water and Wastewater Authority meeting as Knight raised questions about whether FGUA was claiming legitimate costs associated with borrowing $9.4 million to build water line extensions to vacant lots in Citrus Springs.
Extending water lines in Citrus Springs will occur regardless of who owns FGUA, but the utility wants to move forward on financing the water line construction as fast as possible. It needed WWA approval of the financing numbers. Miles used the occasion to accuse Knight of having a bias against FGUA.
Knight fired back that he and his staff are neutral on the purchase of FGUA and demanded an apology.
“No apology is offered,” Miles responded. “That is my belief based on my observations.”
Miles said he raised the concern because Knight is in a position to make recommendations to the decision-makers on the proposed purchase. He said he has dealt with Knight for two years and it is his opinion Knight is biased in favor of FGUA being acquired by the county.
Knight, asked afterward about Miles’ allegation, responded he would be cutting his own throat to advocate the county’s purchase of FGUA. He said two-thirds of his operating budget comes from a fee levied on FGUA, and county has formulated no plans to replace the fee if FGUA is purchased.
He said he has always tried to be fair to FGUA when the utility asked for rate increases. He said FGUA has never appealed his recommendations.
“I think we’ve given FGUA everything they’ve asked for that we felt was prudent,” Knight said.
County commissioners have hired a private consultant and asked their own staff to investigate whether it would be in the best interests of county government and FGUA’s customers for the county to own FGUA’s 11 water and five sewer utilities in Citrus County. The purchase will be discussed at the Jan. 10 county commission meeting.
Knight said his role in evaluating the purchase is limited.
He said county staff is involved in calculating how much the county’s overhead costs would increase if the county owned the systems. Office of Management and Budget Director Cathy Taylor is looking at those costs.
He said the Assistant Public Works Director Bruce Bates is comparing operating costs if county staff ran FGUA’s utilities, versus allowing Severn Trent to continue as the private operator of the systems.
Knight said his only involvement is in looking at FGUA’s five-year capital improvements plan. The CIP is a schedule of construction projects for FGUA’s utilities.
“The first numbers indicate the county can do it cheaper, but we won’t know for sure until all the numbers are in,” Knight said.
At Tuesday’s WWA meeting, the board approved financing numbers for the $9.4 million of water line extensions in Citrus Springs. It was during discussion of those numbers that Miles accused Knight of having a conflict.
WWA had previously granted FGUA approval to levy property assessments on individual vacant lots in Citrus Springs. The money from the assessments will be used by FGUA to pay back the loan. The board on Tuesday’s finalized the financing numbers.
n For water mains constructed by FGUA between 2003 and 2005, residents who pay early will be assessed a lump sum of $1,635. If they wait until after the assessment goes on the tax roll, the lump sum payment rises to $1,810. If they choose to finance the assessment over five years, the annual payment will be $415. Approximately 2,000 lots are affected.
n For water mains that have yet to be constructed, those who pay now will be assessed a lump sum $1,910. If they wait until the assessment goes on the tax roll, the lump sum payment rises to $2,085. If they choose to finance the assessment over five years, the annual payment would be $479. Approximately 3,350 lots are affected.
Miles said FGUA will have two assessment districts.
The FGUA was also accused by Robert Bennett, water chairman for the Pine Ridge Civic Association, of failing to honor its promise to install an adequate number of fire hydrants in Pine Ridge to ensure enough pressure for fire protection. Pine Ridge is a neighboring community to Citrus Springs.
Miles and FGUA Operations Director Charles Sweat said FGUA has a five-year plan to install $650,000 of fire hydrants in Pine Ridge. Sweat said it would amount to 41 hydrants per year. Miles said they could install all the hydrants at one time, but it would probably result in a rate hike.
Responding to concerns raised by resident Isabelle Spindler of 4255 West Pansy Lane, he said the 4-inch waterline on the street is too small for a fire hydrant. The minimum size for a water main to serve a fire hydrant is 6 inches in diameter, Sweat said. Mrs. Spindler had questioned why there are no hydrants on the street.
While FGUA has no plans to install a bigger water line on the street, Sweat said FGUA would install a fire hydrant on a nearby 6-inch in diameter water line as close to Pansy Lane as possible.
Bennett was also upset that FGUA had not investigated whether a depression in front of one of the community’s wells was caused by a sinkhole or if it was a drainage retention area. He said soil tests need to be conducted to determine if it is a threat to water quality.
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