Interest had in FGUA's systems (Citrus county)

Interest had in FGUA's systems
By Terry Witt


A Tallahassee attorney has contacted county government officials about the possibility of a private firm, rather than the county commission, buying the Florida Governmental Utility Authority’s local systems.

The county commission recently began preparing to purchase FGUA’s water and sewer utilities in Citrus County, but attorney Mike Twomey said his clients in Sugarmill Woods and Pine Ridge now believe Aqua America Inc. would better serve their interests.


Twomey and a representative of the company arranged for a meeting with County Commission Chairman Gary Bartell on Tuesday and sent all five commissioners a letter the same day explaining why Aqua America Inc. should own the systems.

The letter said Twomey’s clients, the Sugarmill Woods Civic Association Inc. and the Pine Ridge Property Owner’s Association, initially preferred county ownership to FGUA, but they now believe Aqua America is a better option.

“My clients believe Aqua America’s interest in purchasing FGUA’s assets in Citrus County represents a previously unavailable “best alternative,” Twomey wrote. “They believe this company’s long operating history and financial liquidity offer the clear best choice going forward and urge you to consider this option with the greatest haste consistent with proper due diligence. The water pressure problems evident now require expertise and capital, and Aqua America appears to have both.”

Twomey was referring to ongoing water-pressure problems in Pine Ridge and Citrus Springs, which are served by FGUA. Citrus Utilities has extended a county-owned water line to Pine Ridge to correct the pressure problems in the two communities.

The letter described Aqua America as “reportedly the nation’s largest U.S.-based, publicly traded water company, with some 2.5 million customers in 13 states, including Florida.”

“It has over a 100-year history of providing service, limits itself to water and wastewater operations, unlike FWS and seemingly has an excellent reputation with both its customers and Wall Street. In addition to its long history of operating community water and wastewater systems, Aqua America enjoys one clear advantage over the FGUA and Citrus County government: equity capital,” Twomey wrote.

The letters FWS refer to Florida Water Services Inc., the private company that sold its Citrus County utility systems to FGUA.

Twomey was the attorney who represented Sugarmill Woods when it successfully challenged the sale of FWS to a pair of Panhandle communities.

FWS sold its assets to FGUA instead, but FGUA has been plagued by consumer complaints in Citrus County about lack of accountability. Those complaints led county commissioners to begin the process of buying FGUA’s local systems.

Bartell said he listened to what Twomey and the unidentified Aqua America representative had to say, but he said it is too early to make any judgment about whether Aqua America should buy out FGUA.

He said it was his understanding Aqua America has such sound financial standing that it wants to purchase all of FGUA’s assets in Florida and would not have to borrow money to do it.

In his letter, Twomey said the company is private and its rates and operations would be regulated by the Citrus County Water and Wastewater Authority.

Bartell said the next move belongs to Aqua America, but he said there may be one complication.

The agreement between FGUA and the county, which gives the county the first option to purchase FGUA’s local utilities, is still in place. Bartell said he believes, but it not certain, that there would have to be a double transaction to make the sale to Aqua America a reality.

He said FGUA would have to first sell to the county, and then the county to Aqua America.