Stop-FGUA-in-Florida

Utility: Reports lacking detail

2006-10-05T08:13:00.000-05:00

By Terry Witt

A government utility executive conceded Monday he had not always given county water board members accurate or timely information, but said he didn’t do it intentionally, and he is correcting the problem.

Charles Sweat, operations director for the Florida Governmental Utility Authority, said the problem was not fraud, as he felt one member of the Water and Wastewater Authority (WWA) had suggested.

“I provided information provided to me and we have found that some of the information was questionable,” Sweat said.

FGUA owns and operates 11 community water and sewer systems in Citrus County. The county is preparing to buy the systems.

Sweat and other FGUA executives attended the WWA board meeting Monday.

To provide better information to WWA, Operations Manager John Dunty has been moved into a position to assure more accountability in field operations, Sweat said.

“We’re going to make sure we have enough people to do what they should be doing so we don’t have this conversation ever again,” Sweat said.

But WWA took measures of its own to ensure it receives accurate information on time. WWA voted unanimously to adopt its own system of tracking requests for information from FGUA and other utilities, as well as the responses.

Utilities Regulatory Director Robert Knight will document his requests for data and distribute them to WWA members. Sweat and his assistant, Bernadine Flood-Nichols, also will receive copies

FGUA will be expected to provide the requested information at least a week before the next regular WWA meeting. If the utility is unable to meet the deadline, utility officials must say when they will respond.

Sweat’s admission that not all the information he provided WWA was accurate or timely came moments after he had been criticized by some WWA members for failing to give them reliable answers to their questions about the way FGUA operates.

Alternate member Don Cox failed to win support for a motion to recommend that Sweat no longer serve as the FGUA’s contact person with the water board. Cox said Sweat had consistently given the board unreliable information, and he wanted him removed to avoid further problems.

However, Assistant County Attorney Michele Lieberman said WWA had no authority to enforce such a recommendation. She said FGUA is a governmental body, just like WWA, and it has no ability to control whom FGUA hires or fires.

“I don’t think we have any business meddling in the operations of FGUA. If they’re dissatisfied they can fire him,” Lieberman said.

Cox also tangled with FGUA attorney Brian Armstrong when Armstrong said Cox had overstepped his regulatory authority by doing independent research on FGUA. Armstrong said Cox had gone so far beyond the scope of his duties that he might be asked to remove himself from issues relating to FGUA.

“You’re not the judge, jury and executioner,” Armstrong said.

Cox shot back that he had gathered most of his information from FGUA records and he challenged Armstrong to tell him what was wrong with that.

“There was nothing on my part to go outside the information you provided,” Cox said.

There was good news from the FGUA discussions.

Sweat announced that permits had been secured to drill a well and build an expanded treatment plant in Sugarmill Woods. He said the well drilling crew should arrive on Thursday. He said the well is expected to have the capacity to pump 600 gallons of water per minute, but he won’t know the well’s true pumping capacity until tests are completed. He said it could exceed 600 gallons per minute.

Sugarmill Woods was one of the FGUA communities that began having pressure problems during drought conditions earlier in the year. Some community members were worried that the Chassahowitzka community water system might come on line before pumping capacity was added. Sugarmill will supply the water for Chassahowitzka.

GUEST OPINION: Groundswell is simmering over control of FGUA

2006-10-03T14:35:00.000-05:00

By ROBERT ANDERSON

A spectator groundswell is simmering in their arena seats and approaching a low boil over what faction, public or private, to see who will assume control of Lehigh Acres water and sewer infrastructure in Lee County, either the county, East County Water Control District (ECWCD) or a private water/sewer service.

The Florida Governmental Utility Authority has demonstrated its inability to adequately address and correct matters as they relate to water, sewer availability, pressure, quality, hydrants, mains and house hookups. Thus, the county stated it might want to buy the faltering FGUA, in reaction to numerous consumer complaints, and ostensibly implying (but not officially stating) that it can do a better job. However, knowing now the ECWCD wants to study the idea of purchasing this infrastructure, ECWCD District Manager, David Lindsay has stated.

Also we have learned FGUA will not be using their $54,000 fine that they received last year in the project agreed to by FGUA, ECWCD and Lehigh Acres Watchdog Inc.

Instead doing a project with ECWCD in which allegedly harmed by FGUA dumping of efferent, FGUA is removing 14 citizens off septic on to sanitary sewer instead of the water quality project in Charlie Matheny Park that was agreed upon.

In the other corner another new player, Aqua Florida Utilities Inc., a 100 percent all-water company with almost a million customers in seven states. Aqua Florida Utilities has contacted Lehigh Acres Watchdog Inc. and wants to give detailed presentations to residents of issues and an outline what they have to offer and eventually plan to propose.

We, in Lehigh Acres, are the primary pawns, having ringside seats for this contest, and all of us long for the match to begin in earnest. However, it appears that the FGUA is reluctant to adhere to the rules of engagement. In fact, the only sparring we've seen so far has been disparagingly outside the ropes.

All the contestants agree that FGUA has failed on several levels of service. Thus, the question is which contender is most likely to satisfy, once and for all, the whole of our water and sewer needs? And, that is not to say that other top-rated companies can't throw their hats in the ring. After all, isn't the spirit of competition the bulwark of the American way?

On a more serious side, our cynicism is not intended to diminish in the least the gravity of the sad state of our water and sewer situation in Lehigh Acres.

Our group, and to a great extent the primary others, seeks to have a clean, clear, informative and fair airing from all sides.

That would also be with East County Water Control District that wants to a study on the feasibility them owning and operating the system, which isn’t too bad of an idea, but does the ECWCD have enough bonding ability to handle such a big debt or could Aqua Florida Utilities Inc. buy the system with cash.

To dispel the caveat lingering about, that because Aqua is a corporate, publicly traded utility, it would be merciless in clobbering us with higher rates.

This is a baseless, empty scare tactic, since we've been assured that every rate increase sought must be reviewed, assessed and approved by the Public Service Commission.

While our county commissioners have remained virtually silent on this issue, we nonetheless choose to refrain at this time from raising our voices an octave or two. Our objectives are rousingly clear and elegantly simple: to get the best and most efficient water and sewer service for our community at a fair cost.

Therefore, in a nutshell, we ask you, Lee County Commissioners, Board of Supervisors of the ECWCD and Aqua Florida Utilities to speak forthrightly to the citizens of Lehigh Acres, letting the real contest begin.

In the meantime, we remain squirming impatiently in our seats at ringside, waiting to hear what FGUA has to do to hinder this contest.

Water Worries ...........

2006-09-08T07:10:00.000-05:00

(LEHIGH ACRES, FL) -- Rain water from Tropical Storm Ernesto could cost one local company a lot of money. Florida Govermental Utility Authority is being investigated by the Florida Department of Environmental Protection for spilling treated waste water into a Lehigh Acres canal.

The water treatment plant, stores treated water in holding ponds until the water evaporates or is absorbed into the ground. But, when Ernesto rolled through, the ponds filled up with too much rain water and overflowed into the canal that borders their property, which is illegal.

Barbara Kerby, spokesperson for FGUA assures Fox 4 that the water spilling into the canal is clean and will not hurt the environment. DEP says they have tested the water and could not find any fecal matter, infact they say the water was cleaner than the canal it poured into. However, that is not the issue, the fact of the matter is, FGUA is not permitted to release any water into the canal, and that is why they are being investigated.

This is not the first time this type of thing has happened either. Just last year, FGUA was fined over 50-thousand dollars for the same problem. Kerby says they are working on making sure this doesn't happen in the future. The company is building "Deep Well Injection" System, where more treated waste water can be stored in the future, but it won't be finished for a couple of years.

DEP is still investigating to determine whether or not the company will be fined again.

WATCHDOG STOPS FGUA Meeting --

2006-07-23T07:44:00.000-05:00

President Robert Anderson STOPS FGUA from meeting do to FGUA inalibilty to print the legal notice of meeting in the local paper ------

Interest had in FGUA's systems (Citrus county)

2006-04-13T08:29:00.000-05:00

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.

District, utility reacted poorly to school water crisis (Citrus County)

2006-04-11T16:24:00.000-05:00

A Times Editorial
Published April 11, 2006

--------------------------------------------------------------------------------

Take hundreds of children and adults at two schools, turn up the heat on them for a week, drain off their drinking water and you have a recipe for a health disaster.

The Citrus school system narrowly dodged a bullet last week when students and staff members at Citrus Springs elementary and middle schools went all week without being able to drink water from the schools' fountains.

The utility in charge of providing water to the schools, the locally embattled Florida Governmental Utility Authority, cited the lack of rain recently plus the high demand for water from its customers in the Citrus Springs area as the reason for the low water pressure at the schools.

The schools had enough flow to operate the toilets, at least. The kitchen staff had to boil water in large kettles to purify it for use in preparing meals for the schools.

The worst, and most dangerous, effects were felt in the classroom where, amazingly, each room was given one gallon of bottled water per day to be rationed out one paper cup at a time to thirsty children.

Human beings under normal conditions require one half-gallon of water each per day, according to the American Red Cross and the Federal Emergency Management Agency.

Children need more water, the agencies say. And the same heat that was blamed for the lack of water in the first place also meant that the active youngsters and adults needed more than a half-gallon of water to stay hydrated.

Instead, they got a ration of water in a cup, with a single gallon expected to slake the thirst of 20 or more children and adults for an entire school day.

The children, it seems, should be grateful they got even that much. Citrus Springs Middle School principal David Stephens said his staffers went out themselves and bought the bottled water, plus brought in coolers for ice to keep the jugs cold.

The staffers are to be commended for their response and resourcefulness. However, school officials dropped the ball by not immediately notifying parents of the water emergency. Parents certainly had every right to know about this situation so that, at the very least, they could send in some water jugs for their children's classrooms.

District officials, in turn, should have responded better and faster to the emergency by securing plenty of drinking water and trucking it to the schools.

A single-day loss of water from, say, a broken pipe would have been enough of a challenge for the schools' staffs. As the emergency stretched on for an entire week, it became a district problem.

Of course, the FGUA deserves most of the blame. The utility is responsible for supplying water to its customers every day, not just when the weather cooperates. It should have anticipated the need for more water based on the lack of recent rains and the higher number of customers.

There is a simple formula that would have proved useful. It's known as supply and demand.

The FGUA has had its share of problems in Citrus County lately, and county government is moving toward taking over the FGUA's Citrus County systems as a result. Leaving hundreds of children high and dry is no way for the FGUA to make a case for continuing its relationship with Citrus County.

The utility and the school system, of course, have no control over the weather. But they can and must be better prepared to respond when an emergency water shortage develops.

With the circumstances that created last week's crisis still with us, they will have ample opportunity to get it right the next time.

[Last modified April 11, 2006, 02:30:31]

Pine Ridge faces water woes (Citrus County)

2006-04-06T21:39:00.000-05:00

By Laura Lee Putzback

Low water pressure in the Pine Ridge area has county officials scrambling to come up with short-term fixes until Florida Governmental Utility Authority can find a more permanent solution.

Citrus County Utilities will connect with FGUA water lines this weekend to help alleviate problems with low pressure in the FGUA system.

The low water pressure has also created a need for an emergency permit request for a new connection and for the Citrus County Fire Services division to increase its coverage in Pine Ridge.

A county construction crew will be working this weekend at County Road 486 and Pine Ridge Boulevard to connect FGUA to the Citrus County Utility System, according to Bruce Bates, Citrus County Utilities interim director.

Travelers on C.R. 486 will see little disruption as the work crew will bore under the road to install a 10-inch water line and its 20-inch protective casing. FGUA is responsible for reimbursing the county for any project costs incurred and for the water it uses.

Initially Richard Stover, Citrus County fire chief, was unaware of the current water problems in Pine Ridge. Once alerted, he took steps to get more information from FGUA.

“I feel for the safety of the citizens. It is necessary to move a 1,800 gallon tanker into Citrus County Fire Station 22 located in Pine Ridge,” Stover said. “It will stay there until the situation is resolved.”

Dozens of calls from FGUA customers this week alerted the water company and the Citrus County Office of Utility Regulation of problems.

Among the callers was Dennis Marshall, a retired mechanical engineer who moved to Pine Ridge in August 2005. He’s had intermittent problems with water pressure so he installed a gauge to monitor his home.

Marshall was disappointed with the FGUA’s emergency phone line. When he called to report 18 PSI (pounds per square inch) of water pressure and concerns about how it impacted the fire hydrant located on the corner of his property a recording announced, “FGUA emergency on call is not available right now. Please leave a detailed message after the tone.”

The readings at Marshall’s home have ranged from 10 PSI to 35 PSI since Monday. According to Bob Knight, Citrus County Office of Utility Regulation director, the DEP standard is not less than 20 PSI.

Bernadine Flood-Nichols, FGUA community service representative, indicates several reasons customers are experiencing problems. She cites the past four weeks of drought, a broken chlorine line on March 26, a main line break on Elkcam Boulevard the next day, an electrical problem with one of the pumps and pumping capacity as contributing factors to the problems residents are now experiencing.

FGUA has fixed all but the capacity issue. The county connection will offer short-term relief while the company works to install a new well in Pine Ridge during the next three months.

John Dunty, GSG (Government Services Group) project manager for FGUA is attempting to fast-track approval of the project’s construction contract, which was originally to be considered at the FGUA’s April 28 board meeting.

Until then, FGUA is taking steps to ensure sufficient water capacity. The company is targeting customers who are large water consumers.

“The FGUA does not have a clear definition of usage for customer accounts,” Flood-Nichols said. She analyzed customer water usage for February and March and customer account trends the past three years to identify high-end water users.

On Friday, the FGUA delivered conservation information to 255 of its 2,345 Pine Ridge customers and 30 of its 3,570 Citrus Springs patrons. Some on the list were using as much as 100,000 to 200,000 gallons per day.

“To take the stress off the system, we have issued an alert,” Flood-Nichols said. FGUA is asking all Citrus Springs and Pine Ridge customers to adhere to restricted irrigation times.

The other two utilities serving the Central Ridge area report no water pressure issues at this time, nor have they issued any special alerts.

Laura Lee Putzback is the editor of the Central Ridge Visitor.

FGUA BOARD MEETING

2006-03-11T17:13:00.000-05:00

NEXT FGUA BOARD MEETING MARCH 16 - 17 th in Golden Gate 10 - 2pm

Citrus County BOCC: Buy utility systems

2006-03-01T10:37:00.000-05:00

By Terry Witt

Rejecting a staff recommendation, the Citrus County Commission voted 3-2 on Tuesday to purchase a government utility’s local 11 water and five sewer systems, estimated to be worth about $30 million.

Staff members advised against purchasing the Florida Governmental Utility Authority systems. Assistant County Administrator Tom Dick recited a long list of unrelated sewer and road projects he said had spread county staff thin, but he also said the systems FGUA owns would be better run if the county owned them.

Commissioner Vicki Phillips said the time had come to purchase FGUA systems. She described FGUA as an organization lacking in accountability, and she said the utility had a conflict of interest in the way it does business.

“We are doing the right thing. It’s now or never,” Phillips said. “We won’t be able to buy these systems in five years.”

Phillips’ motion to start the purchase process followed the defeat of a motion by Commissioner Jim Fowler to forego the purchase for three years. His motion died 3-2.

The approval of Phillips’ motion starts a long process. The county will have to conduct an inventory of FGUA’s property and prepare the necessary documents to finance the $29 million to $30 million purchase.

County Commissioner Dennis Damato supported staff’s recommendation to postpone purchasing systems for several years. Damato and Fowler agreed the timing wasn’t right and they wanted to take another look at the purchase when the county was in a better position to take on such a large project.

Conflict of interest?

But Commission Chairman Gary Bartell and Commissioner Joyce Valentino sided with Phillips, both citing the accountability issue. Bartell said he was also concerned about FGUA’s conflict of interest.

Phillips and Bartell were referring to the relationship between FGUA, a government organization that has no employees, and the private contractor that operates it, Government Services Group (GSG).

An acquisition assessment report by the county’s consultant, Rose, Sunstrom & Bentley, LLP, said the two firms have an intimate relationship and that “a potential conflict of interest exists” in the ownership arrangement.

The report said the Nabors law firm lobbied the Florida Legislature in 1997 for changes in the law that made government utilities like FGUA possible, and is now utility counsel and bond counsel for FGUA. The report said the law firm earned $752,711 in 2004 as counsel for FGUA.

The assessment report said three lawyers in the Nabors firm at one time held three of the five seats on GSG’s board of directors, and it said that GSG has been the only FGUA system manager since its creation in 1999. The Nabors firm no longer assists the board of directors. GSG receives a 3 percent fee for approved capital improvement projects, such as water line extensions.

Phillips said she had no confidence in FGUA’s promise that it would continue allowing the county to review its rates. She said FGUA had refused to give ground when the county demanded the right to review assessments for Pine Ridge and Citrus Springs. She said the utility relented only when its leaders were reminded that its agreement with the county gave the county Water and Wastewater Authority the power to make such reviews.

Little opposition

There was little opposition to the FGUA purchase at the meeting. Representatives of Pine Ridge and Sugarmill Woods, both of which are served by the government utility, said they had no opposition.

“We have no objection to the county taking over,” said Paul “Skip” Christiansen, president of the Sugarmill Woods Civic Association. “It’s always been assumed the county would take over.” FGUA’s contract with the county gives the county the option of buying the systems.

Tallahassee attorney Mike Twomey, representing the Pine Ridge Property Owners Association, said his clients want political accountability and they won’t get it without county ownership of FGUA’s systems.

He reminded commissioners that the last time he came to Citrus County it was to challenge FGUA’s plan to levy property assessments for water line extensions in Pine Ridge. FGUA initially claimed it was a government utility and could not be regulated by the county.

Twomey said county staff noted in their report that GSG has hired a public relations person to interact with residents. He questioned the value of such a move as it relates to accountability.

“What are they going to do, spin bringing those lift stations into compliance?” Twomey said.

Pine Ridge resident Robert Bennett said the community continues to have issues with water quality and quantity, and he urged commissioners to take over the system.

But Damato said the county has neither the staff nor the time to purchase FGUA’s systems at this time. He recommended allowing FGUA to continue as owner and establishing a strong relationship with FGUA to ensure compliance with the county’s requirements.

Damato suggested the board return in three to five years to reconsider the purchase. He also reminded commissioners of the mechanical problems with the systems FGUA owns. He said the county would inherit the cost of maintenance and repairs if it goes through with the purchase.

County staff estimated it would take $6 million to $8 million to bring FGUA’s systems up to minimum county standards, but John Jenkins, the county’s lead consultant, said the county could operate the systems for about $350,000 less than FGUA annually. He said the savings could be placed in reserve or used to finance about $6 million in improvements.

Utility decision may aid buyout (Citrus Springs)

2006-02-22T15:18:00.000-05:00

By Terry Witt

The Florida Governmental Utility Authority’s staff may make it easier for the county to work on its proposed buyout of FGUA’s systems.

In a Feb. 17 memo, FGUA staff recommended dumping its current plan to hire a new operations and customer service contractor, a process that could complicate the buyout.

The county commission doesn’t want to be saddled with a new operations and customer service operator for the next five years if it decides to purchase FGUA’s 11 water and five sewer systems in Citrus County.

FGUA staff has been ready since November last year to hire U.S. Water/Wade Trim as the new contractor to run its systems, but the county hasn’t been prepared to make a decision on the buyout.

In the memo, Systems Administrator Robert Sheets recommended canceling the contract proposal process involving U.S. Water/Wade Trim and modifying its existing contract with Severn Trent, the current contractor.

Sheets said any new contract with Severn Trent would set higher standards for performance and impose penalties if the company did not meet the requirements. If FGUA could not come to terms with Severn Trent in 60 days, it would have the right to negotiate directly with the other potential providers.

FGUA staff will make the recommendation at Friday’s FGUA board meeting in Lehigh Acres.

The county commission is studying whether it would be in the best interests of FGUA’s customers if the county bought its 11 local water and sewer systems, which include Sugarmill Woods, Pine Ridge and Citrus Springs.

County staff is expected to make a presentation about the buyout on Feb. 28.

Sheets said the decision to terminate the process involving U.S. Water/Wade Trim was in keeping with its philosophy of being a tool for local governments.

“We always yield to local governments’ prerogative,” he said Tuesday.

The county commission decided to consider purchasing FGUA’s systems in part because customers were complaining about FGUA. The government utility had proposed property assessments in Citrus Springs and Pine Ridge without county approval.

Later on, FGUA agreed to allow the county’s Water and Wastewater Authority to review the assessments.

FGUA pressed for answers (Citrus Springs)

2006-02-07T15:53:00.000-05:00

By Terry Witt

The Florida Governmental Utility Authority faces millions of dollars in repairs and upgrades to the water and wastewater systems it purchased two years ago in Citrus County, a county government report has concluded.

In the report, County Engineering Director Al McLaurin said FGUA is not ignoring the problems and has made an effort to bring the facilities into compliance by budgeting for the repairs and upgrades in its five-year construction plan. FGUA completed 48 percent of the work it had planned to do in 2005.

“It is just that there are so many problems, especially at the wastewater treatment plants, that they cannot correct all of the problems at once,” McLaurin said in a report for the Citrus County Water and Wastewater Authority (WWA). “This is a result of current growth that is affecting all facilities throughout Florida.”

McLaurin’s report was made public Monday as part of WWA’s monthly meeting. It surfaced as FGUA Director of Operations Charles Sweat was pressed for answers about when the government utility plans to build new water wells for Citrus Springs and Pine Ridge.

McLaurin’s report said FGUA needs to build new water wells for Citrus Springs, Gospel Island and Pine Ridge.

FGUA inherited the maintenance problems from Florida Water Services Corp. when it bought the systems in December 2003. None of the problems identified in McLaurin’s report pose an immediate health hazard to FGUA’s customers, said Utilities Regulatory Director Robert Knight.

As part of the purchase, FGUA took ownership of the water and/or sewer systems in Apache Shores, Citrus Springs, Golden Terrace, Gospel Island, Lakeside Country Club, Oak Forest, Pine Ridge, Point O’ Woods, Rosemont/Rolling Green, Spring Gardens and Sugarmill Woods.

Donald Cox, a WWA board member, said records show the water systems in Citrus Springs and Pine Ridge are approaching capacity. He wanted to know if FGUA was prepared to add water-pumping capacity.

Charles Sweat, FGUA’s director of operations, said a test well has already been dug in Citrus Springs and construction of a production well at the same location will take place this year. He said FGUA doesn’t know yet if it will add one or two more wells in the Citrus Springs-Pine Ridge area.

In other business:

n The board voted 5-0 to have FGUA investigate a complaint by Michael Castricone that a Citrus Springs water line near his home passes through a drainage retention pond. Castricone said if the water pipe were to break it could be contaminated with stormwater.

Castricone has also complained for two years that Florida Water Services allowed diesel fuel to spill on the ground near water well three. He is concerned it may contaminate the water. He mentioned the problem again, but WWA took no action.

WWA instructed Knight to draft a proposed policy on how residents would be charged for water lost when water pipes break. Utilities handle the matter in different ways.

Want a fire hydrant on your street? It's not as easy as you think (Citrus Sprins)

2006-01-31T16:28:00.000-05:00

By Terry Witt

Isabelle Spindler lives in the affluent community of Pine Ridge in northern Citrus County, but her quiet, wooded street lacks one of the amenities that would make her feel safer — a fire hydrant.

Spindler, a resident of Pansy Lane, has been unable to get an answer from the utility that serves her neighborhood about how she could get a fire hydrant installed.

She tried to work through her representatives in county government to obtain a fire hydrant from the Florida Governmental Utility Authority, but was told the line in front of her house was too small to serve a hydrant.

Pansy Lane is served by a water line 4 inches in diameter. Spindler said she was told she would need a 6-inch line for a fire hydrant. But that was as much as she could glean on her own, with help from County Commissioner Vicki Phillips and Utilities Regulatory director Robert Knight.

And she still has no fire hydrant.

“It is a safety issue. We’re in the woods. Pine Ridge is in the woods,” she said. “It’s not just me. It’s an issue in Pine Ridge.”

Charles Sweat, director of operations for FGUA, said he and his staff investigated and found that Mrs. Spindler lives within 520 feet of an existing fire hydrant on an intersecting street. The hydrant is close enough to meet the national engineering code.

But Sweat said if she wants a 6-inch line and a fire hydrant installed on Pansy Lane, she will have to make a formal request in writing to FGUA. She could make the request on her own, but Sweat said the more people who make the request, the more pressure it places on the utility to respond.

He said the cost of such a line extension and fire hydrant would probably be about $30,000. He said the cost would have to be absorbed by FGUA, but he said ultimately the utility’s customers would pay the cost. The earliest the line and hydrant could be installed would be 2007.

Sweat said FGUA would have to budget for it, design the line and find the money for it.

“If I have to do this work, I’d probably have to do $30,000 less somewhere else,” he said.

Spindler wasn’t aware she could make a request for a hydrant or a 6-inch line, but she said she would e-mail Sweat to find out what she needs to do.

Sweat said FGUA is developing a plan to install 200 hydrants in Pine Ridge, but only in locations where the water line size is adequate to meet the code.

Bob Bennett, water chairman for the Pine Ridge Property Owners Association, said he has been unable to get accurate or reliable information from FGUA about where the 4-inch and 6-inch water lines are located in Pine Ridge or why the community is having problems with water pressure. He said he also wants information about water quality issues, including where sinkholes are located that could potentially impact water quality.

“I have a hydrant in front of my house and I can’t find out if it’s a 6-inch line, and that’s all over Pine Ridge,” Bennett said. “They keep stalling us on this, including Isabelle Spindler.”

FGUA Citrus County

2006-01-28T21:11:00.000-05:00

In other business:

n Commissioners voted to postpone the discussion of the proposed purchase of Florida Governmental Utility Authority systems in Citrus County until 9 a.m. on Feb. 28. The board had originally planned to discuss the purchase in early January, but it was moved to Feb. 7 to give staff more time to investigate.

However, County Attorney Robert Battista said the staff needs time to meet with the county’s consultants to compare numbers before making a presentation to the board. Once the numbers are final, he wants to FGUA officials to have time to examine the data.

From Fox 4 Florida

2006-01-27T23:12:00.000-05:00

Stop The Stink (Lehigh Acres, FL) -- A bad odor coming from a waste water treatment plant is bothering some people in Lehigh Acres. Today those people marched in protest outside the plant chanting "stop the stink." Robert Anderson, the president of the Lehigh Watchdogs, lead the protest. Anderson says the plant is 34% over capacity causing it to create a nasty smell. Fox Four took this to Barbara Kerby the Florida Governmental Utility Authority. Kerby says they're not over capacity and will look to improve the plant by Fall 2006. The Department of Environmental Protection investigated the smell. DEP officials say backups will happen from time to time.

Feb 2005 FGUA board meeting will be in Lehigh Acres

2006-01-20T19:05:00.000-05:00

Today Jan 20th 2005 FGUA board announced that the Feb 24th 2005 FGUA monthly board meeting will be in Lehigh Acres at the East County Regional Library at 10am as requested by Lehigh Acres Watchdog.

This is an important meeting because the final decision of the interconnection with Ft Myers water supply will be made. This decision does not just affect Lehigh Acres but our neighbors in Ft Myers also. This may be the meeting that we will finally know who the new daily operator will be also.

Plans to get Water in an Emergency in Lehigh Acres, Raise New Questions from some Customers

2006-01-18T20:29:00.000-05:00

Plans to get Water in an Emergency in Lehigh Acres, Raise New Questions from some Customers

January 18, 2006

By Mike Walcher

Lehigh Acres, Fl. -

The Lehigh Acres water utility has a plan to set in place a back-up system to get water in an emergency. But some critics of the system are making new charges about the utility's true motives.

"The guys with the gold make the rules, and that is happening here with our water utility," claims Jim Fleming of Lehigh. "The utility has over-promised water to developers who have permits to build homes. Now the utility is scrambling to find water, to make good on those promises. I wish they would just come out and admit it."

"I don't know where he is getting his information from," replies David Miles, who represents Florida Governmental Utility Authority (FGUA), that serves 12-thosuand water customers in Lehigh Acres. "The fact is, we just want an emergency back-up system..a pipeline to connect with the city of Fort Myers. They could supply us with water in a crisis, and we could supply them with water if needed."

The utility wants to spend 1.1 million dollars to install the pipeline to inter-connect with Ft. Myers utilities. Miles says the water exchange -- 500-thousand gallons a day -- or about 1/4 of the average daily use of water in Lehigh -- would kick in if a major flood or hurricane wrecked water lines in either community.

FGUA took over an old system from Fl. Water Services just over 2 years ago, and Miles says they have been aggressively budgeting to upgrade and expand the system. "We will ensure that the people of Lehigh will never run out of water," he told WINK News.

Still, a group of citizens in Lehigh remains suspicious of most of the things the utility does. One resident has even set up a web-site to serve as a "watchdog" on FGUA in Lehigh.

Miles says the governing boards of the two utilities will try to approve the inter-local agreement by the end of February.

Utility chief: Report led to war of words (Citrus County)

2006-01-16T22:14:00.000-05:00

By Terry Witt

A top executive in a government utility this week likened the ongoing exchange of words between the utility and a county government consultant to a “scud missile war.”

Robert Sheets, systems manager for the Florida Governmental Utility Authority, was describing FGUA’s written and verbal volleys during the past month with Rose, Sunstrom & Bentley,LLP, the consultant hired to evaluate whether the county should buy the utility.

“It seems now we have a scud missile war,” Sheets said in a meeting with the Chronicle editorial board. “They say this, we say that.”

The unpleasant exchanges started when the consulting firm issued an acquisition report suggesting FGUA would be forced to raise rates in a few years and suggesting two Tallahassee law firms have “an intimate relationship with FGUA and one other.”

FGUA fired back that the report was laced with inaccurate and misleading information that should not be the basis for a decision by the county commission on whether the county buys the multimillion-dollar utility.

FGUA officials said the consultant provided no data to support its assertions about future rate hikes, but John Jenkins, who headed the consulting team that wrote the report, said FGUA didn’t challenge its numbers. Jenkins said FGUA merely questioned the economic assumptions it used to predict the rate hikes.

The two sides were ordered by the commission to meet during the Christmas and New Year’s holidays to talk about their differences, but the meeting never took place. Commissioners were forced to cancel a Jan. 17 meeting to discuss the purchase. They rescheduled it for 9 a.m. on Feb. 7.

Commissioner Vicki Phillips suggested that FGUA and Government Services Group, the company that administers and operates FGUA’s utilities, have the responsibility to prove that the county’s acquisition report is inaccurate, since FGUA made the allegations.

“They challenged our report. Let GSG provide information to support their challenge,” Phillips said.

David Miles, special project administrator for FGUA, produced a nine-page response detailing factual errors and inaccuracies he said he found in the acquisition report prepared for the county commission.

“This document is not an exhaustive accounting of mistakes, but it is a balanced correction of the facts and the public record,” Miles wrote in the Jan. 12 letter to the county commission.

Among the corrections Miles makes:

n He said the acquisition report contained a number of “inaccuracies and inappropriate assumptions” in claiming the county could operate FGUA’s systems at a lower cost.

n He said FGUA has a four-member governing board, not a five-member board as the report stated. The board has members from Polk, Lee, Osceola and Citrus counties.

n He said the acquisition report, in claiming FGUA lacked accountability, was quoting from a December 2002 study of the Florida Water Services Authority.

Miles said an interlocal agreement between FGUA and Citrus County defines what is meant by accountability. The agreement, he said, gives the county the ability to regulate FGUA and its rates.

However, Miles failed to mention the controversy that initially caused the county commission to consider purchasing FGUA’s local assets. FGUA initially refused to review the property assessments the utility planned to impose in Citrus Springs.

FGUA told its customers and county officials it was operating as a local government, like the county, and that the county had no jurisdiction over the assessments imposed on its customers. FGUA never backed away from that position, but it voluntarily gave the county’s Water and Wastewater Authority the right to review the assessments. The assessment has been approved by WWA.

But the conflict was the first spark that started a firestorm of criticism.

FGUA’s contract with the county gives the county the option to buy FGUA’s local utilities. Sheets said FGUA has no objection to the purchase, but he said the county should use factual information to make the decision.

The makeup of FGUA has also led to questions. FGUA is a government group by law, but it is not run by elected officials. That fact has also led to charges that there is no accountability. Some customers complained they had elected officials to file complaints with.

Sheets noted in his interview with the editorial board that FGUA is a professional utility management organization, which is rare in Florida.

He said FGUA spent “hundreds of thousands of dollars” researching and investigating the utilities it purchased from Florida Water Services Corp. in November 2003. The utilities it currently owns in Citrus County were purchased from Florida Water.

Sheets said FGUA spent weeks in New York City meeting with bond underwriters to convince them the purchase was a sound investment. He said they knew exactly what they were buying. He said FGUA physically inspected every water and sewer line, and sewer lift station it purchased.

He said the county, by contrast, has hired a law firm to investigate whether it should purchase FGUA’s utilities in Citrus County.

Sheets said the county would do well to investigate thoroughly before it makes one of the biggest purchases in county history.

Headlines

2006-01-15T14:52:00.000-05:00

County to weigh buying FGUA systemsSt. Petersburg Times, FL - Dec 18, 2005... 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. ...

Decision on water systems delayedSt. Petersburg Times, FL - Dec 20, 2005Commissioners hear that customers and the county could save money if the county acquires FGUA systems. Still, they will seek more advice. ...

County to meet in February to talk about FGUA purchase (Citrus County)

2006-01-13T15:42:00.000-05:00

By Terry Witt

Citrus County commissioners moved a cautious step closer Tuesday to deciding whether they want to purchase the water and sewer utilities owned by the Florida Government Utility Authority.

The board voted unanimously to postpone discussion of the purchase until a special meeting at 9 a.m. on Feb. 7 in the board’s chambers.

Much is at stake.

Some of Citrus County’s largest communities — Pine Ridge, Sugarmill Woods and Citrus Springs — are served by FGUA multi-million system. FGUA purchased the systems in November 2003 and agreed to warehouse and operate the utilities until the county was ready buy them.

The timetable to purchase the utilities was moved forward when complaints surfaced about FGUA’s lack of accountability to customers and its early claims that neither the county nor the state had the right to regulate its rates. Under county commission pressure, FGUA relented and said the county could review its rates.

The county then hired the law firm of Rose, Sundstrom & Bentley to study FGUA and advise commissioners on whether it would be in the best interests of FGUA’s customers if the county owned its 11 water and five sewer systems in Citrus County.

However, the law firm’s $75,000 contract doesn’t require it to perform on-site inspections of the water and sewer systems to determine the physical condition of the systems. The contract also does not require the firm to determine whether FGUA has made all the improvements it claims it made during the past two years.

That became an issue at Tuesday’s board meeting.

“We just have to be sure we didn’t buy a pig in the poke, and we won’t know until we look at all these lines and all these lift stations,” said Commissioner Jim Fowler.

The issue was not resolved. Commissioners will get an update from staff at their Jan. 24 meeting that may help them decide whether an independent engineering study is warranted to gauge the condition of the utilities.

Independent of the consultant’s work, Assistant County Administrator Tom Dick said county staff would take a brief look at the condition of systems. He said county staff also is evaluating the improvements FGUA made to the system and doing a comparison of how much it would cost the county to operate and maintain the systems verses hiring Severn Trent, the current operator, to continue in its current role.

In other business:

* Commission Chairman Gary Bartell, on behalf of the board, presented certificates of recognition to Eagle Scouts Sean Hamilton, Greg Wheeler and Kristopher Guthridge for attaining the highest rank in scouting.

* The board adopted a proclamation declaring January as Volunteer Blood Donor Month.

* Commissioners also approved an exchange of land with Christ Way Fellowship Church of God Inc. for the future widening of Independence Avenue.

WHY IS THE FGUA HIDING PUBLIC HEARING OUTSIDE OF LEHIGH ACRES

2006-01-09T20:14:00.000-05:00

News-Press.com Online Public Notice: Detail
2005-12-30 Notice of Public Hearing

NOTICE OF PUBLIC HEARING
For Adoption of Bulk Water Rate
The Florida Governmental Utility Authority ("FGUA") announces a public hearing to which all interested persons are invited. The FGUA is a legal entity and public body created pursuant to the provisions of Section 163.01, Florida Statutes, and an Interlocal Agreement among Citrus County, Florida, Lee County, Florida, Osceola County, Florida, and Polk County, Florida. The public hearing will be held at 11:00 AM on January 18, 2006 at the Riverdale Branch Library, Meeting Room, State Road 80, Fort Myers, FL 33905. The public hearing is to consider adoption of a bulk water treatment and supply rate of $3.76 per 1,000 gallons of water supplied by the FGUA Lehigh Acres Utility System. This rate is proposed to be used in a two way sales and purchase agreement between the FGUA and the City of Fort Myers, Florida to provide mutual back-up water supplies. The rate will apply to all bulk water sales agreements, as approved by the Board of Directors, and entered into by the FGUA for the Lehigh Acres Utility System. All customers of the FGUA, affected property owners, tenants or occupants, and all other interested persons, shall have an opportunity to be heard concerning the proposed rate, and to file written comments with the FGUA. If a person decides to appeal any decision made by the FGUA with respect to any matter considered at the hearing, such person will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, persons needing special accommodations or an interpreter to participate in this proceeding should contact the Clerk to the FGUA Board toll free at (877) 552-3482, at least three business days prior to the date of the hearing. If you have any questions, please contact the Clerk to the FGUA Board at (877) 552-FGUA or (407) 629-6900.
Dec 30 No. 980596

PUBLIC BID

2006-01-08T20:41:00.000-05:00

News-Press.com Online Public Notice: Detail
2005-12-09 Request for Bid

SECTION 00100
LEGAL ADVERTISEMENT
INVITATION TO BID
FLORIDA GOVERNMENTAL UTILITY AUTHORITY
LEE COUNTY, FLORIDA
Date: December 9, 2005 BID NO. BO1 - LE 015
Sealed proposals for various sewer rehabilitation work within the wastewater collection service area of Lehigh Acres in Lee County, Florida addressed to the Florida Governmental Utility Authority, c/o the FGUA local office at 280 Wekiva Springs Rd., Longwood, FL 32779, will be received until 2:00 P.M., on the 10th day of January, 2006, at which time all proposals will be publicly opened and read aloud. Any bids received after the time and date specified will not be accepted and shall be returned unopened to the Bidder.
Sealed envelopes containing bids shall be marked or endorsed "Proposal for Florida Governmental Utility Authority, Bid No. BO1 - LE 015 and Bid Date 10th day of January 2006". No bid shall be considered unless it is made on the Bid Schedule that is included in the Bidding Documents. The Bid Schedule (Section 00410) shall be removed from the Bidding Documents prior to submittal.
A pre-bid conference shall be held at 10:00 A.M. LOCAL TIME, on the 19th of December, 2005, in the offices of the Florida Governmental Utility Authority located at 280 Wekiva Springs Road, Longwood, Florida 32779, Telephone (407) 629-6900 at which time all prospective Bidders may have questions answered regarding the Bidding Documents for this project. Attendance at the pre-bid conference is not mandatory. A Bidder's failure to attend the pre-bid conference shall result in the rejection of his bid.
It is anticipated that one contract will be awarded for all work to be performed pursuant to this invitation to bid. Bidding Documents may be examined in the office of:
Florida Governmental Utility Authority 280 Wekiva Springs Rd. Longwood, FL 32779 and the offices of the Engineer of Record: URS Corporation, 7650 West Courtney Campbell Causeway, Suite 700, Tampa, FL 33607. Telephone 813-675-6525 and Fax No. 813-286-6587
Copies of the Bidding Documents may be obtained only at the offices of the Design Professional, URS Corporation after payment of $100.00 for each set of documents to offset the cost of reproduction. Return of the documents is not required, and the amount paid for the documents is nonrefundable.
The following plan room services have obtained copies of the Bidding Documents for the work contemplated herein: F. W. Dodge/McGraw-Hill, Inc.
2830 Winkler Avenue, Suite #104A
Ft. Myers, FL 33916
239-939-2525
Each bid shall be accompanied by a certified or cashier's check or a Bid Bond in an amount not less than five percent (5%) of the total Bid to be retained as liquidated damages in the event the successful Bidder fails to execute the Agreement and file the required bonds and insurance within ten (10) calendar days after the receipt of the Notice of Award.
The successful Bidder shall be required to furnish the necessary Insurance, Performance and Payment Bonds, as prescribed in the General Conditions of the Contract Documents. All Bid Bonds, Performance and Payment Bonds, Insurance Contracts and Certificates of Insurance shall be either executed by or countersigned by a licensed Florida agent of the surety or insurance company having its place of business in the State of Florida. Further, the said surety or insurance company shall be duly licensed and qualified to do business in the State of Florida. Attorneys-in-fact that sign Bid Bonds or Performance and Payment Bonds must file with each bond a certified and effective dated copy of their Power of Attorney.

In order to perform public work, the successful Bidder shall, as applicable, hold or obtain such contractor's and business licenses, certifications and registrations as required by State statutes and local ordinances.
Before a contract will be awarded for the work contemplated herein, the FGUA shall conduct such investigations, as it deems necessary to determine the performance record and ability of the apparent low Bidder to perform the size and type of work specified in the Bidding Documents. Upon request, the Bidder shall submit such information as deemed necessary by the FGUA to evaluate the Bidder's qualifications.
The Successful Bidder shall be required to fully complete all Work to be performed pursuant to this invitation to bid within 180 calendar days from and after the Commencement Date specified in the Notice to Proceed.
The FGUA reserves the right to reject all Bids or any Bid not conforming to the intent and purpose of the Bidding Documents, and to postpone the award of the contract for a period of time which, however, shall not extend beyond 90 days from the bid opening date.
Dated this 9th day of December 2005.
FLORIDA GOVERNMENTAL UTILITY AUTHORITY
Tallahassee, Florida
BY: Charles Sweat
Director of Operations
Dec 9 No. 961677

Tempers flare at utility meeting (Citrus Springs)

2006-01-04T17:14:00.000-05:00

By Terry Witt

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.

FGUA News

2006-01-02T14:40:00.000-05:00

Decision on water systems delayed
St. Petersburg Times - Dec 20 10:35 PMCommissioners hear that customers and the county could save money if the county acquires FGUA systems. Still, they will seek more advice.

County to weigh buying FGUA systems
St. Petersburg Times - Dec 18 11:34 PMCustomers could save money, according to a consultant's report that will be presented to the County Commission on Tuesday.

PTA seeks guidelines for use of stun guns
St. Petersburg Times - Dec 18 11:34 PMSuperintendent Sandra Himmel suggested board chair Lou Miele be target at an upcoming Taser training session.

Fiscal suggestions for county commissioners
St. Petersburg Times - Dec 18 11:34 PMThis report by the Fiscal Watch Committee of the Citrus County Council will be presented to the County Commission on Tuesday.

Water board approves higher main fees
St. Petersburg Times - Dec 06 10:20 PMCitrus Springs residents will still pay a lower rate than that suggested by the Florida Governmental Utility Authority.

Decision on water systems delayed (Citrus County)

2005-12-21T21:05:00.000-05:00

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)

2005-12-21T13:59:00.000-05:00

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)

2005-12-20T20:03:00.000-05:00

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)

2005-12-20T10:28:00.000-05:00

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)

2005-12-19T22:04:00.000-05:00

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

2005-12-17T12:34:00.000-05:00

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)

2005-12-08T02:51:00.000-05:00

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)

2005-12-08T02:42:00.000-05:00

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

2005-12-06T04:18:00.000-05:00

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

2005-12-02T18:20:00.000-05:00

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

A Citizen's Group Doubts Lehigh Acres' Utility can Cope With Growth

2005-11-30T20:03:00.000-05:00

November 30, 2005

By Mike Walcher

Lehigh Acres, Fl. -

The utitity in Lehigh Acres will obtain 25-million dollars in bonds in the next couple of weeks to expand its water and waste-water treatment facilities.

Despite that, a citizen's 'watchdog' group claims the utility won't have the capacity to serve future customers in the fast-growing community. And the group charges that Florida Governmental Utility Authority dumped treated waste-water, effluent, into a canal on more than 40 days last summer.

"I dislike what they are doing to Lehigh Acres," said Robert Anderson, who operates a web-page devoted to tracking the actions of the FGUA, mostly with a very critical eye. "I was shocked by the effluent overflows last summer, and horrified that they didn't tell anyone about it."

In fact, the FGUA has admitted to the state Dept. of Environmental Protection that effluent over-flowed from a pond on 44 days last summer. The water ran into a canal, or into the low grounds surrounding the pond. Many of the overflows occured on days of record rains, and the DEP says much of that overfow probably was rain-water, rather than just effluent.

"There is no impact on public health," said Jon Iglehart, district director of the DEP. "The releases were negligle, but still it should not have happened. In the big picture, neglible, but still we may levy some minor fines against them --perhaps one-thousand dollars a day, for the 44 days." The DEP has the authority to levy fines up to 10-thousand dollars a day.

The utility is rapidly trying to expand its facilities to cope with more customers. But Lehigh resident Jim Fleming, whko's also the head of the East Cty. Water Control District, doubts that the FGUA can keep up with growth. "This is too little, too late. I can see a case where developers sue them becuase the new houses cannot get hooked up to water and sewer. And I suspect that existing customers may run into low water pressure, because the FGUA does not have the capacity to serve everyone."

The FGUA denies that, and says it is aggressively expanding its plants and finding other ways to dispose of waste-water. The FGUA took over an antiquated system a little more than 2 years ago, and is trying to expand with bond issues and new construction.

"I give them high marks for moving ahead quickly," Igehart told WINK News. "I think they are good stewards, and are making the best of the existing system that they acquired."

Lee County officials have talked at times about taking over the Lehigh utility, but no decisions have been made on that.

Watchdog Survey on the FGUA

2005-11-29T23:53:00.000-05:00

On November 21st -23rd
The Lehigh Acres Watchdog did a survey
on what Lehigh Acres citizens think about FGUA

Results --- comments from the people ----

"They are just trying to make money by robbing the citizens of Lehigh Acres and could cause
the poorer to lose their homes. There is no reason to make us sign up for water and sewer when we all ready have them from our wells and septic tanks which we have paid for and work well."

"the bottomline, at the insistence of the GSG, the FGUA is going to install water and sewer lines without proof of need"

"Poor quality water (yellow) very good customer service, local Lehigh office"

"FGUA's rates are too high, GSG is untrustworthy and have no credibility dealing with public interest."

"It is looking like FGUA is a bunch of bunch of crooks. They could not make money as Florida Cities Water Utilities, some how they got this quasi government status as a "lark" to sell their systems off to other municipalities as a pretence. They have made money by raising rates and avoiding taxes because of their status. I wonder if they are not "in league" with some developers who need utilities in areas they want to develop so they force utility improvements and expansion on the citizens and they (the developers) don't have to pay for it....."

"It is too early to give an opinion on FGUA. I like what I have heard, but performance will be the way to judge them."

FGUA

2005-11-29T23:47:00.000-05:00

Recently the Citizens of Lehigh Acres have heard negative things about Florida Governmental Utility Authority (FGUA) – Believe me things are about to get much worse –---

In a recent press release FGUA finally admitted the following –“On the water side, consumptive demand exceeded permitted treatment capacity in 2005.” and “On the wastewater side, the authority initially believed wastewater treatment capacity was sufficient through 2008. But growth has outpaced projections and in fiscal (year) 2005 the wastewater treatment plant exceeded its permitted flow capacity.”

When the FGUA was questioned about capacity earlier this year at a public board meeting they refused to comment on capacity and stated NO conveyance agreements on capacity where issued – but we know now that this was a smoke screen – FGUA has issued up to five different letters conveying they have capacity to developers – so who is blowing the smoke screen – FGUA telling the developers they have capacity or the FGUA on this press release stating they have exceeded permitted treatment capacity in 2005 to their investors. (The press release that I’m quoting from is from the Fitch Rating www.fitchratings.com a rating company that rates bonds.)

Fitch Rating assigned an 'A-' rating to Florida Governmental Utility Authority (FGUA) (Lehigh Utility System), FL's approximately $25 million utility revenue bonds, series 2005, and affirms the 'A-' rating on approximately $42.3 million outstanding debt. The series 2005 bonds are scheduled to sell on Dec. 5 via negotiation to Banc of America Securities LLC and UBS Financial Services, Inc. (Note: Bonds rated B or below are not investment grade -- in other words, institutions that invest other people's money may not buy them under most state laws.)

On the other hand, if growth has outpaced projections as stated above – then why is our Lee County Commissioners John E Albion (www.johnealbion.com) & Chairwoman Tammy Hall (www.tammyhall.org) allowing developers in Lehigh Acres to speed up growth and putting in over 7500 new homes in the next 5 years without increasing the needed infrastructure such as roads, schools, sidewalks, officers and etc. Why are the Commissioners destroying the lands needed for commercial development and turning the lands into residential planned developments – does Lehigh Acres need any more single family housing?? How about affordable family housing? How about commercial nodes throughout Lehigh Acres?

If FGUA needs money to pay for water and wastewater lines to all of the new 7500 homes in residential planned developments when why not increase impact fees to cover growth – since growth needs to pay for growth and stop harming the current rate payers with high water and sewer bills.

The Lehigh Acres Watchdog did a email survey on Nov 21st – 23rd about FGUA and received a better than average return – you now can see the results of the survey at www.lehighacreswatchdog.com

Sincerely,

Robert J Anderson
President
Lehigh Acres Watchdog, Inc

FGUA recieves A- Bond rating

2005-11-25T21:55:00.000-05:00

Fitch Rates Florida Governmental Utility Authority (Lehigh Utility System) Util Revs 'A-'
Wednesday November 23, 2:17 pm ET

TAMPA, Fla.--(BUSINESS WIRE)--Nov. 23, 2005--Fitch Ratings assigns an 'A-' rating to Florida Governmental Utility Authority (FGUA, or the authority) (Lehigh Utility System), FL's approximately $25 million utility revenue bonds, series 2005, and affirms the 'A-' rating on approximately $42.3 million outstanding parity debt. The series 2005 bonds are scheduled to sell on Dec. 5 via negotiation to Banc of America Securities LLC and UBS Financial Services, Inc. The Rating Outlook is Stable.

The 'A-' rating on these bonds is based on the growing service area of Lehigh Acres, where the Lehigh utility system (the system) is located, adequate projected debt service coverage assuming automatic inflationary rate increases pursuant to an adopted ordinance, and satisfactory legal provisions. Credit concerns include high rates, management uncertainties given that private third parties manage and operate the authority and the system, and higher than expected capital needs requiring further leveraging of system resources.

FGUA was formed in 1999 by an interlocal agreement to purchase a number of water systems in Florida from a private developer. Current membership includes Polk, Citrus, Lee and Osceola counties. The authority is managed by a governing board whose members include one representative of each entity. FGUA has no employees; all services are provided on a contractual basis. Each utility owned by FGUA is accounted for as a separate enterprise fund and managed independently. The Lehigh Acres utility system was acquired by the FGUA in December 2003. The system is operated under a utility operations and billing and customer service agreement with Severn Trent-Avatar Utility Services LLC, a contractor providing similar services throughout Florida. FGUA has retained Government Services Group, Inc., a private contractor, for the overall management of the authority.

The bonds are secured by a pledge of the trust estate, which includes net revenues and connection fees of the Lehigh system. The system serves the Lehigh Acres area of unincorporated Lee County and is a primarily residential community, 100 square miles in area, located about 12 miles east of Fort Myers. The service area is only 10% built out, with 90,000 platted lots available for development. Wealth indicators for nearby Fort Myers and the county suggest income levels corresponding to the Lehigh Acres service area are in the average range. In July 2005, the system provided service to approximately 11,294 water customers and 9,209 wastewater customers.

The fiscal 2006-2010 capital improvement plan (CIP) totals a sizeable $55.1 million. Current capital costs are substantially higher than the $15.9 million initially estimated at the time the authority purchased the system from Florida Water Services Corp. (FWS), largely as a result of accelerated customer growth patterns. On the water side, consumptive demand exceeded permitted treatment capacity in 2005. In response, the authority will construct an additional water treatment plant with proceeds from this issuance. The plant is expected to be in operation by the end of the 2007 calendar year, but in the interim, the authority has entered into an agreement with Fort Myers for additional supplies.

On the wastewater side, the authority initially believed wastewater treatment capacity was sufficient through 2008. But growth has outpaced projections and in fiscal 2005 the wastewater treatment plant exceeded its permitted flow capacity. The authority is currently negotiating a consent order with the Florida Department of Environmental Protection which identifies flow capacity and disposal capacity issues. The authority's CIP includes projects necessary to mitigate the violations, including the construction of a deep-well injection system to address effluent overload.

Historical financial data through fiscal year 2003 provided by the previous owner of the system, FWS, was based on calendar years and adjusted for expenses, such as property taxes, that applied to FWS as a private company but does not apply to FGUA as a governmental entity. Over that period, operating margins were sound. Audited results for fiscal 2004, the first full year of operations by FGUA, indicate a healthy financial position, with 324 days cash on hand, and sound net revenues to pay debt service. Debt service coverage in fiscal 2004 exceeded projected results with net revenues available equal to 3.4 times (x) annual debt service (ADS) including connection fees and 1.9x with the fees excluded.

Projections compiled by a feasibility consultant indicate a decline in ADS coverage through fiscal 2010 as a result of these bonds and $18.9 million in additional debt planned through the forecast period, but coverage is expected to be adequate at no less than 1.5x and 1.2x ADS through fiscal 2010 including and excluding connection fees, respectively. The projected cash flows include annual automatic inflationary rate increases approved by the authority and an additional 3% hike expected to be approved for fiscal 2009. However, Fitch notes that customer charges currently exceed affordability levels at around 2.4% of median household income, and additional rate increases may pressure system customers.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Contact:
Fitch Ratings
Kelly McGary, 813-223-6600 (Tampa)
Chris Hessenthaler, 212-908-0773 (New York)
Christine Pollak, 212-908-0526
(Media Relations, New York)

--------------------------------------------------------------------------------
Source: Fitch Ratings

FGUA and the system

2005-11-21T18:41:00.000-05:00

There are about 8,000 existing FGUA sewer customers in Lehigh Acres.
By FGUA's outdated, one-year old statistics, their existing 2.5 million gallon per day sewer plant was operating at a yearly (2004) effluent flow of 2.13 million gallons per day. We all know that there have been a substantial number of additional hookups in 2005, and our educated guess is that the existing plant is operating at, or over, its maximum allowable AVERAGE capacity.

According to your figures from the Lee County Planning records there are an additional 3,534 hookups, or Equivalent Residential Connections (ERC's) up for review represented by the five projects you detailed in your recent report as listed below:

Buckingham Villages 631
Section 10 1,750
Caloosa Lakes 800
Mirror Lakes Village 130
Prairie Creek 223

Just These 5 Equal 3,534

And that's only the residential units in those projects, not the commercial square footage, which will also have a huge impact on the FGUA sewer plant.

Now let's add a few more additional hookups that we know are coming soon:

Savanna Lakes 1,999
Mirror Lakes Golf Course 400
Admiral Lehigh Golf Course 250
Majestic Golf Course 170
Beth Stacey Multi Family 380
Copperhead Golf Course 400
Next Phases of Towne Lakes 230
Flint Farm 400

Just These 7 Equal 3,869

Again, this does not include commercial components, new schools, new businesses along Lee Blvd.and in the Industrial Park, smaller, pocket developments of townhouses and other multi-family projects, etc., etc., etc.

Adding only the RPD's listed above, that accounts for an additional 7,403 hookups - almost DOUBLE the existing FGUA customer base in Lehigh Acres.

No wonder FGUA is in such a hurry to expand! Even their additional 1 million gallon per day expansion is not enough to handle the increase caused by the Lee County government's reckless disregard for concurrency, the Red Zone and their own Comprehensive Plan. They are simply rubber stamping development orders for more residential units than FGUA can possibly handle. Something, or someone has to give!

Yes, FGUA is planning a 7+ million-dollar deep well injection project to handle the increased effluent (at our expense). Whether you think deep well injection is safe, or not, everyone agrees that it will take at least three to four years to permit and build it. By then all the RPD's listed above will be completed.

So what happens if FGUA, Lee County and the FDEP continue to ignore the obvious math here? The excess "production" has to go someplace.

1. More effluent will be dumped into Lehigh Acres' canals, and ultimately into the Orange River and the Caloosahatchee River. Commissioner John Albion is suing the South Florida Water Management District to stop the dumping of polluted runoff from Lake Okeechobee, but the ugly truth is that 70% of the pollution is coming from the Caloosahatchee watershed, downriver from Lake O, caused by runoff from overdevelopment in Southwest Florida. This is nothing short of an environmental crime against the people of Florida. Albion is not trying to fix the problem. As usual, he is trying to fix the blame.

2. Our community will be placed at considerable health and safety risks because the water pressure in Lehigh Acres will drop to dangerous levels. According to the FDEP the minimum safe water pressure is 20 pounds per square inch (psi). The water pressure in my neighborhood has been recently measured at 22 psi, dangerously close to the level where the water will backflow causing contamination. My home was built 14 years ago, before backflow safety valves were required in new construction. Like many homeowners in Lehigh, we will have to boil our water before using it if the water pressure drops below 20 psi.

3. With low water pressure, our fire hydrants will fail, and there will be no way to sprinkle the top floors of all those Lehigh multi-family projects in the pipeline.

4. With no adequate fire flow our insurance rates will go up, and worse, we won't even be able to fight brush fires and house fires with our garden hoses.

Somebody is lying through their teeth and endangering the entire community.

We already know that Albion and Darth Stilwell won't listen. FGUA won't admit to its failure to plan ahead years ago. FGUA is not responsible to the PSC like other utilities are. Our only recourse is to hold the State Department of Environmental Protection accountable for this looming environmental catastrophe.

I suggest that we start a petition drive to demand that the Florida Department of Environmental Protection and the Florida Department of Law Enforcement launch an immediate investigation into this urgent matter.

To do less would increase the threat to the health, safety and welfare of the citizens of Lehigh Acres.

Thank you for your time, interest and thoughtful consideration.

Warmest Team Lehigh Acres Regards,

Jim Fleming

Utility may ease pain in Citrus Springs (Citrus Springs)

2005-11-16T15:38:00.000-05:00

Florida Governmental Utility Authority officials said Monday that they would scale back the number of units in Citrus Springs that would pay proposed water extension line fees.

Last week, the utility said it wanted to levy a $2,330 water line extension assessment on 5,700 vacant lots in Citrus Springs. But at Monday's continuation of a hearing before the county's Water and Wastewater Authority, FGUA director of operations Charles Sweat said that special assessment area would be reduced to about 3,300 residential units.

The reduction came in response to a request by Robert Knight, director of utilities regulation, who said during Thursday's hearing that the original proposed assessment area was too large.

The utility is also proposing an annual fee of $16.55 in Citrus Springs and $37 in Pine Ridge for line maintenance. Those fees would be paid by owners of vacant property abutting water lines.

The Water and Wastewater Authority began meeting Nov. 9 to decide whether the proposed fees are fair and whether the FGUA's proposed water line construction is appropriate.

Because the authority received several new exhibit filings from FGUA officials Monday, the five-member board voted to postpone its decision on the fees until its Dec. 5 meeting.

At Monday's hearing before the Water and Wastewater Authority, an attorney for the FGUA and two attorneys representing property owners in Citrus Springs and Pine Ridge presented their closing arguments.

FGUA attorney Brian Armstrong summarized the utility's proposed fees. Owners of lots that had water lines in front of them before Dec. 5, 2003, would continue to pay the existing water line extension fee of $446. Owners of lots connecting to water lines extended by FGUA since Dec. 5, 2003, would pay $2,199 starting Feb. 1, 2006. And owners of lots in the special assessment district would pay $2,395 over 20 years, or $261 per year.

That assessment would be reduced to $1,924 if the owners decided to pay up front before the FGUA obtained bond financing, Armstrong said.

The fees are necessary to make growth pay for itself in areas that have seen rapidly increasing home construction, he said.

"Everybody is looking at areas like Citrus This is the place where you can still make that purchase as an investor. You can still buy an affordable piece of property," Armstrong said. "There's nothing worse than not being prepared for that growth when people start coming and want to build in these areas."

Emily Peacock, a Tampa lawyer representing the Citrus Springs Landowners Association, said creating a blanket special assessment would infringe on the rights of property owners who paid for utility service when they purchased their land.

Peacock and Tallahassee lawyer Mike Twomey, representing the Pine Ridge Property Owners Association, argued that the line maintenance fees were not fair or justified.

Charging line maintenance fees would be "undue discrimination under the law," Twomey said, adding that he would urge his clients to appeal if the authority approved the fees.

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

Utility offers compromise on water fees, but board puts off final decision (Citrus County)

2005-11-16T15:29:00.000-05:00

By Terry Witt

A government utility made a concession Monday in hopes of securing county approval for water line property assessments in Citrus Springs, but a regulatory board deferred a final decision until December.

The Florida Governmental Utility Authority offered to reduce the size of its proposed property assessment district to about 3,349 lots, which is more to the liking of Utilities Regulatory Director Robert Knight, but Knight made no promises.

Knight, who advises the Citrus County Water and Wastewater Authority on utility issues, asked WWA to postpone a decision until Dec. 5 about whether FGUA should be allowed to levy water line extension assessments in Citrus Springs and water line maintenance assessments in Pine Ridge and Citrus Springs. WWA agreed to the postponement.

FGUA has proposed annual water line maintenance assessments of $16.55 in Citrus Springs and $37 in Pine Ridge.

Knight said reducing the assessment district size is no guarantee FGUA will receive a favorable recommendation from him. Brian Armstrong, an FGUA attorney, said the smaller district was offered as a second alternative to give WWA and Knight a choice.

Reducing the size of the district gives FGUA a better chance of building all the water lines inside the district within five years, a standard gauge for determining whether the district was the right size, but Knight said he would have to review the numbers between now and Dec. 5 before making his determination.“Whether I will recommend it for approval is still up in the air,” Knight said.

FGUA claims a high growth rate in Citrus Springs is forcing it to look for a stable revenue source to build the millions of dollars in new water lines. Some WWA members have questioned whether the assessments are justified or necessary. Others think FGUA has made a legitimate argument.

Armstrong said the final assessment numbers are as follows:* Residents in the proposed water line assessment district could prepay a reduced assessment of $1,924 as a lump sum. The option would probably be available until May 1 of next year.* Residents in the assessment district who choose to finance the fee would be assessed $2,395. The annual charge would be $261 on their property tax bill.* Residents living outside the assessment area would pay $2,199 for any new FGUA line extension.* Those residents who had lines built to their vacant lots before FGUA bought the Citrus Springs utility would be charged $446 for a line extension under the old Topeka developer’s agreement.

Pine Ridge resident Robert Bennett, a critic of FGUA’s proposals, said FGUA’s 2006 budget is filled with unjustified expenses and numbers that don’t add up.He said the “community service initiative” in the 2006 budget — which he said is an $855,798 public relations campaign — would be unfairly borne by its customers.

He accused FGUA of using fuzzy math to mislead its customers and the regulatory board, and used a toy duck to illustrate his disgust with the utility.

The duck played a muffled recording of the one-liner made famous in AFLAC Insurance television commercials. The duck squawked — “AFLAC!”Attorney Mike Toomey, representing Pine Ridge, attacked the $37 line maintenance assessment. He said it amounted to double charging Pine Ridge residents.

Toomey said residents in Sugarmill Woods and Pine Ridge, two of FGUA’s largest systems, had paid for maintenance of the lines as part of their rates before FGUA bought the systems. Toomey said it would be illegal to charge residents of Pine Ridge a second time.

Toomey represents the Pine Ridge Property Owners Association. If WWA approves the maintenance assessment, Toomey said he would encourage the association to appeal the decision.

Utility details water fee request (Citrus Springs)

2005-11-13T22:35:00.000-05:00

A hearing will resume Monday on the Florida Governmental Utility Authority's proposal.By CATHERINE E. SHOICHET Published November 12, 2005

LECANTO - As the marathon meeting that lasted nearly 10 hours Thursday began to wind down, a rumpled Robert Sheets approached the lectern in Room 166 of the Lecanto Government Building.

"We've been here a day and a half and I'm not sure we've told you what we want you to do," the Florida Governmental Utility Authority's systems manager told members of the county's Water and Wastewater Authority.

When the hearing continues Monday, he said, FGUA officials will sum up their proposal on a single sheet of paper.

County and FGUA officials had hoped to wrap up the review of proposed water line fees in Citrus Springs and Pine Ridge before the building closed at 9 p.m. Thursday. But after 13 meeting hours, seven witnesses and more than two dozen exhibits containing hundreds of pages of data, they decided to call it a night.

The group, which began meeting Wednesday, will reconvene at 1 p.m. Monday, when the board will open up the meeting to public comment.

FGUA officials say the request behind the lengthy hours of expert testimony and cross-examination is simple: The utility wants to levy a $2,330 water line extension assessment on about 5,700 vacant lots in Citrus Springs. It says that assessment, in addition to an annual $17 fee in Citrus Springs and a $37 fee in Pine Ridge for line maintenance, will make the region's rapid growth pay for itself.

The Water and Wastewater Authority must decide whether those fees are fair and whether the FGUA's proposed construction is appropriate.

To justify their request to the county board that reviews water and sewer rates, FGUA officials assembled a team of engineers, accountants and administrators to testify.

They said that without the proposed assessments, the FGUA would have no way to fund growth other than raising rates.

In addition to extensive questions from FGUA attorney Brian Armstrong, the witnesses fielded questions from two attorneys who criticized the utility's fee plan.

Emily Peacock, a Tampa attorney representing the Citrus Springs Landowners Association, argued in cross-examinations throughout the hearing that the FGUA's proposed approach of levying fees infringes on some property owners' rights.

Utility service was guaranteed in the contracts of Citrus Springs property owners who bought land before 1989 from the Deltona Corp., she said. And some property owners who purchased land after 1989 prepaid $500 for water service and $1,000 for wastewater service.

The FGUA should determine who those property owners are before levying fees, Peacock argued, and those who have already paid should not be asked to pay again.

Peacock and Mike Twomey, a Tallahassee attorney representing the Pine Ridge Property Owners Association, also argued that the annual line maintenance fees are not justified.

Those fees would apply to vacant lots that are not connected to FGUA lines in areas that receive FGUA service. FGUA officials said during Thursday's meeting that the presence of water lines benefits the owners of vacant property by increasing property values and allowing for easy hookup upon request.

"It's our belief that the whole thing is the effort from the utility to capture additional dollars from a select group of people, and that it's discriminatory," Twomey said Friday. "It's unwarranted."

In a staff opinion distributed to Water and Wastewater Authority members before the hearing, utilities regulation director Robert Knight wrote that the proposal to charge line maintenance fees "smacks of double recovery," because existing customers already pay for line maintenance costs.

At Thursday's meeting, Knight also said the FGUA's proposed assessment area is too large and asked officials to put together a plan that would cut the assessment district in half.
Sheets said the FGUA would consider Knight's request over the weekend.

"I would say we're not going to reach a final order on this until our December agenda hearing," Knight said.

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.

The FGUA's original fee proposal presented in July drew intense criticism from residents and county commissioners.

Since then, Sheets has become a familiar figure at Citrus County government meetings, attempting to assuage the fears of skeptical county officials who have said the utility lacks accountability.

Last month, 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.
Thursday evening, Sheets stressed once again that the FGUA was not the county's adversary, but a partner.

"If you build it, they will come," Water and Wastewater Authority Chairman Mike Smallridge said in response to Sheets' explanation of the need to levy assessments to fund growth.

"They're going to come, and we're going to have to build it," Sheets replied.

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

Headlines

2005-11-13T10:46:00.000-05:00

The Poinciana civic organization will meet Tuesday, Nov. 16, 7:30 p.m., at the Poinciana Community Center. The guest speaker will be Charles Sweet, who works for the Government Services Group/FGUA, and will speak about water conservation.

Proposed fee gets cool reception (Citrus Springs)

2005-11-12T15:14:00.000-05:00

Proposed fee gets cool reception By Terry Witt

Utility: Money needed to pay for growth Officials of a government utility floated a plan Thursday to levy a $2,330 water line extension assessment in a portion of Citrus Springs, but a regulatory board gave it a lukewarm reception.Florida Governmental Utility Authority officials asked for permission to levy the special property assessment on about 5,700 vacant lots in what they described as the highest growth area in Citrus Springs.

Under the FGUA plan, a property owner who paid the fee in advance would be entitled to a reduced fee of $1,905.

FGUA also asked the Citrus County Water and Wastewater Authority for permission to impose a $17 water line maintenance assessment fee in Citrus Springs and a $37 line maintenance fee in neighboring Pine Ridge.

WWA made no decision, but suggested alternatives to a water line extension assessment.The two-day hearing was due to be continued on Monday at 1 p.m., when public comment will be heard. The hearing will take place Room 166 of the Lecanto Government Center.

Representatives of the government-owned utility said high growth in Citrus Springs is forcing them to abandon the “build as you go” method and switch to a more predictable revenue source they can borrow against. They said property assessments are the best method to build line extensions.

Citrus Springs is a planned community of about 34,000 lots in northern Citrus County. FGUA has proposed a six-phase plan to provide water lines to the entire community, much of which is undeveloped. WWA is considering the first phase of the plan.

However, WWA member Robert Hnat said he thought the assessment was too high considering the savings FGUA would realize by concentrating most of its water line extension work in a single area of the community — the first phase. He suggested the utility lower the assessment.Utility Regulatory Director Robert Knight, who advises WWA, said he would look more favorably on an assessment district about half the size of the one FGUA has proposed. He said the current FGUA plan involves building water lines too far in advance of when they might be used.

Board member Ronald F. Broadbent suggested abandoning the special assessment plan completely and instead focusing on one of the main problems facing FGUA when it builds big water line extensions.

FGUA officials often have complained that the Topeka developer’s agreement in Citrus Springs requires the utility to extend water lines to any property owner who lives within 2,500 feet of an existing line. But if only one customer requests service, the new water line sometimes passes by 19 or 20 vacant lots to reach the new customer. The other vacant lot owners are not charged because they are not requesting service.

Broadbent wondered if FGUA couldn’t solve the problem by charging all the lot owners who benefit from such a long water line extension. Attorney Brian Armstrong, who represented FGUA, said WWA could amend the Topeka agreement to raise the line extension fee and make it apply to the vacant lot owners Broadbent identified.

Regulatory official says proposed fee is excessive (Citrus County)

2005-11-08T08:48:00.000-05:00

By Terry Witt
The county’s utility regulator on Monday said he is recommending denial of a government utility’s request to impose a $2,068 special property assessment to pay for water line extensions in Citrus Springs.

But Utility Regulatory Director Robert Knight said the Florida Governmental Utility Authority is entitled to earn more than the $446 per lot it currently collects for line extensions.

The unanswered questions: How much should the utility charge, and what is fair?

Knight will discuss his recommendations Wednesday afternoon when the Citrus County Water and Wastewater Authority convenes for a three-day public hearing to consider FGUA’s proposals. Knight advises the WWA on rate and utility regulatory issues.

FGUA also wants to impose a line maintenance fee of about $15 in Citrus Springs and $30 in Pine Ridge, according to Knight, but he will recommend a flat denial of those fees. He said FGUA is already recovering its maintenance costs through its water and sewer rates.

The hearing begins at 3 p.m. Wednesday in Room 166 of the Lecanto Government Building. It reconvenes at 8:30 a.m. Thursday, and if need be, the hearing can be extended to 8:30 a.m. the following Monday. The room is reserved for all three days.

FGUA has been criticized by some residential customers for attempting to impose the property assessments without county review. County commissioners agreed and argued the county’s interlocal agreement with FGUA gave the county regulatory authority over the assessments. FGUA relented and allowed the review.

Knight said he agrees FGUA has the right to recover its costs in building new water lines, but $2,068 is excessive. In the agenda package, Knight lists his recommendations and his gives reasons.

He initially suggested that a property assessment of $1,554 would be enough to cover line extensions, but that figure was based on the company issuing bonds to pay for the extensions. Knight said a bond issue would cost money. He thinks FGUA can recover its costs by charging customers more for line extensions as they build them rather than incurring the costs of a big bond issue.

Knight said FGUA’s numbers are based on its plan to build 34.5 miles of water line in Citrus Springs in the first of six phases, but he said the plan is to extend water lines to areas not currently under development, and he disagrees with that philosophy. He said it is not justified.

However, he added that FGUA should be able to recover its costs when it builds a water line that passes 20 vacant lots to reach a new home at the end of the street. Every vacant lot owner should pay an equal share of the cost. But Knight said FGUA is currently absorbing the cost of building lines past the vacant land. He said that isn’t fair to the utility.“They’re only recovering 4 percent of their costs,” he said.

News Headlines ---------

2005-11-07T12:44:00.000-05:00

Water, sewer system upgrade OK'd
The News-Press - Nov 04 10:21 PM Lehigh Acres' water and sewer system will get a $25 million upgrade and expansion, but who will run it is yet to be determined. The Florida Governmental Utility Authority board met Friday and passed the bond issue to help pay for the expansion.

Commission opts to settle land use suit
St. Petersburg Times - Oct 26 10:53 PM The county's settlement would pave the way for the estate of a property owner to build homes on what used to be a recreational vehicle park.

Utility board to discuss options FGUA
The News-Press - Oct 18 10:22 PM The board that controls Lehigh Acres' water and sewer system will meet in Lehigh Acres on Friday to discuss the county's intentions to take over operations and eventually buy the system.

County to study water system takeover
St. Petersburg Times - Oct 11 10:26 PM Commissioners are concerned the Florida Governmental Utility Authority lacks accountability.

County delays utilities purchase (Citrus County)

2005-11-06T12:16:00.000-05:00

By Terry Witt
The Florida Governmental Utility Authority has postponed discussion of a new operations contract for 60 days to give Citrus County time to evaluate the purchase of 11 local utilities. FGUA’s board voted Friday for the postponement.

Citrus County commissioners had earlier asked FGUA to delay for 60 days a decision on its pending operations contract to allow time for a study of the potential purchase. The county has hired two consultants to conduct the study.

Commissioners said they have lost confidence in FGUA’s ability to manage its 11 utilities in Citrus County. The county would like to own the systems if the purchase is economically feasible and doesn’t raise customer bills.

FGUA Systems Director Robert Sheets said he doesn’t know how the recommended bidder for the operations contract will react to the postponement. A committee of FGUA officials had negotiated a five-year contract of about $62 million with Wade Trim/US.Wade Trim’s initial contract bid of $79.9 million bid was $21 million higher than the lowest bidder. The bid has since been negotiated down to about $62 million, according to FGUA.

Severn Trent, the current operations manager, was granted a six-month extension of its current contract to operate FGUA’s systems until a new contractor takes over. The Severn Trent contract can be terminated with 60 days notice, Sheets said.

FGUA’s three biggest utility systems in Citrus County are Sugarmill Woods, Pine Ridge and Citrus Springs. Those three communities account for 70 percent of FGUA’s customers.One of the events that triggered the county’s interest in purchasing FGUA’s local holdings was a decision earlier this year by FGUA to impose property assessments in Pine Ridge and Citrus Springs to pay for water line extensions. The Pine Ridge portion of the proposal was later dropped, but the special assessments in Citrus Springs are pending review by the Citrus County Water and Wastewater Authority.

When customers protested the assessments, and the county insisted on intervening, FGUA said the county had no authority to make such an evaluation. The government utility later relented and granted WWA the right to review the rates, but only at the insistence of the county commission.

WWA has granted FGUA an interim rate hike to impose the assessments in Citrus Springs until a final decision is rendered in November.

Stinky's Cousins ------

2005-11-05T11:47:00.000-05:00

Something Stinks in Lehigh Acres it's called

FGUA and GSG ---

The Stinky's Cousins just approved 25 million dollars in bonds for upgrades on the WTP / WWTP systems in Lehigh ---

Can we the citizens of Lehigh Acres afford this????

Water, sewer system upgrade OK'd

2005-11-05T08:44:00.000-05:00

By: Joel Moroneyjmoroney@news-press.com news-press.com
November 05, 2005

Lehigh Acres' water and sewer system will get a $25 million upgrade and expansion, but who will run it is yet to be determined.The Florida Governmental Utility Authority board met Friday and passed the bond issue to help pay for the expansion.But it delayed for 60 days a decision on the renewal of the system's operating contract with an outside company.

The board is working with Lee County Utilities on a cooperative agreement that will ensure system upgrades meet county standards.Commissioners have discussed having the county assume control of the system.

"This is so that, should we take the system over in the future, it will comply with county standards," said county Public Works Director Jim Lavendar, who represents Lee County on the FGUA board. "What we're doing now is making a future transition easier, should it occur."The authority — composed of representatives from Polk, Citrus, Osceola counties and, since last month, Lee County — is seeking to expand the system in order to reduce the number of wells and septic tanks in the area.Currently, just 12,000 Lehigh residents are on the system, Lavendar said.

But residents have voiced concerns about property assessments for mandatory connection to the system even if they have working wells and septic tanks.Those concerns spurred commissioners to discuss county ownership.

Frank Lohlein, an opponent of the buildout, said residents could face bills surpassing $17,000 each to finance the expansion.Lohlein's primary argument against the plan is that there's no proof — in surveys or studies — that the current system cannot handle the influx of new residents to the area, he said.

Speaking on Friday evening, Lohlein pointed to what he called improper collusion between the authority and the Government Services Group, a private consulting firm contracted by the authority that is run by Robert Sheets, a systems manager for FGUA.

"It's a game that they play — not telling the whole truth to everyone," he said of the FGUA.Ralph Hemingway, a former Lehigh Acres fire commissioner who has consulted state water officials on capacity issues, said he's siding with the FGUA to maintain control and bolster the structure of the system.

Hemingway cited outdated, low-capacity pipes that will not be able to accommodate existing residences once new developments are built."The way Lehigh is growing, they're going to have to put in more or they'll see drastic problems," he said Friday evening.

Owners face $10,000 sewer fee (Citrus County)

2005-10-31T08:54:00.000-05:00

Owners face $10,000 sewer fee By Terry Witt

Citrus County Commissioner Gary Bartell will tell Chassahowitzka residents Wednesday night the county may have to impose a $10,000 property assessment on every home to fund a planned central water and sewer system.

That’s the bad news.

But he also will tell them time is running out to start construction on the project, and that state and federal lawmakers are attempting to secure additional grant funds to lower the assessment by the time it has to be imposed in a about a year.

“Right now, my general feeling is if we’ll go with the $10,000 and we’ll push hard to get federal and state grants, that will help us buy down the cost to residents,” Bartell said.

That’s as good as the news will get.Bartell plans to meet with residents at the Chassahowitzka Fire Department at 7 p.m. Wednesday to explain the status of the water and sewer project. He has kept them advised through town meetings since the project was first proposed.

The county was awarded about $3.8 million in grants for the sewer portion of the project. It has secured a $600,000 grant and $3.1 million loan for the water portion. But the sole bidder on the project, Danella Inc., has proposed doing the work for about $11.1 million.

County officials negotiated the total bid down to about $10.2 million, but the bid remains higher than the available revenue. More money would have to be borrowed.That’s why the proposed assessment is high.The sewer grants were awarded in the years 2000, 2001 and 2002, and the money has to be spent soon or returned to the state, according to Bartell. He said construction should be under way by the end of this year.

Bartell has pushed for a central water and sewer system since learning the results of a University of South Florida study, now several years old, that found septic tanks are causing coliform bacteria pollution in the Chassahowitzka River. The study found indicators in wells that coliform bacteria pollution may be a problem in drinking water.“I’m sure there’s going to be a lot of opposition to the high price, but what are the options?” Bartell said. “We need to either fish or cut bait as far as I’m concerned.”State Sen. Mike Fasano, R-New Port Richey, has promised to introduce legislation in the spring session to fund the remainder of the project, but is making no promises. He said the Legislature already has provided the county with about $3 million in grants, and the county is not offering to match the grant money it is requesting.

But Fasano, whose district includes Citrus County west of U.S. 19, said he will submit the legislation, recognizing that he also will get requests for water quality funding from the other counties he represents — Pinellas, Pasco and Hernando counties.“If I get $4 million for Chassahowitzka, I won’t get anything for the other counties,” Fasano said. “I’ll put in for the full amount and try to get as much as I can for the county.”Bartell said he reminded Fasano the Chassahowitzka River is a state water body, and cleaning up polluted state waters should be the responsibility of the Legislature.

The river empties into the Chassahowitzka National Wildlife Refuge. Fasano said he understands those facts, and believes it will help him argue for a grant from the Legislature.

AVAILABLE FUNDING FOR CHASSAHOWITZKA PROJECT State legislative funding for sewer portion — $2,750,000; Southwest Florida Water Management District funding for sewer portion — $1 million; Community Development Block Grant sewer grant funding — $90,000.n Community Development Block Grant for water — $600,000; state revolving fund loan for water — $3,140,000.n Bid with Danella Inc. has been negotiated down from the original $11.1 million to about $10.2 million.County Commissioner Gary Bartell will meet with Chassahowitzka residents at 7 p.m. Wednesday in the Chassahowitzka Fire Department. He has invited local legislators and officials from the Southwest Florida Water Management District and Florida Department of Environmental Protection to attend.

Conserving Water Becomes An Even More Pressing Need (Polk County)

2005-10-29T09:09:00.000-05:00

Published Friday, October 28, 2005

By MICHAEL W. FREEMAN
The Reporter Editor

POINCIANA -- At a time when even President Bush is urging Americans to conserve energy and consider driving less, the issue of conservation of natural resources may be more prominent today than at any time in decades.

In Polk County, though, conservation has been an issue for years, although the focus hasn't been on rising gasoline prices, or natural gas or oil costs.

The issue has been water conservation, which became a serious problem for Polk County commissioners three years ago when rapid development in Northeast Polk led to overpumping in the Four Corners area.

Polk County commissioners responded by instituting a series of conservation measures, but they're not alone in urging residents to conserve as much water as possible. The Florida Governmental Utilities Association has begun doing the same thing.

Dieudonne Thomas, the community service representative for the FGUA, recently made a presentation before a local business group, the Poinciana Area Council. The council held its monthly luncheon meeting at Solivita.

Thomas said her goal wasn't to offer quick answers on specific water bills, but to educate residents on what they could do to keep water usage down -- and, by extension, lower their own bills.

"One of the main goals of the FGUA is to stress water conservation, including use of reclaimed water," she said, adding that using reclaimed water for landscaping can be very cost effective.

"The Solivita golf course uses 100 percent reclaimed water," Thomas said.

FGUA operates four utility services in Florida, including one main system in Poinciana. Another part of their mission, Thomas said, is "protecting our natural resources and educating residents."

Conserving water in the home isn't all that difficult, she said. While most new homes have water-efficient plumbing fixtures and toilets, refitting these fixtures in older homes can also decrease a utility bill by reducing the amount of water people use each day.

Besides changing plumbing hardware, other tips are:

Fixing leaky faucets because one slow drip can waste 15 to 20 gallons of water a day.

Fixing leaky toilets, which can save more than 30,000 gallons a year with each repair.

Planning lawn and garden watering around local watering regulations, which can reduce water consumption by up to 50 percent.

Choosing native plants naturally adapted to the Florida environment for gardens because these plants can have their water needs provided by natural rainfall patterns.

Limiting garden hose use by considering a "drip irrigation" system or "micro-sprinkler" for shrubs and flower beds that need watering;

Limiting shower time to five minutes.

Washing dishes and laundry only in full loads.

Conservation measures, Thomas said, can help people realize a savings over time on their utility bills.

"We're here to let you know how practicing good habits can help preserve one of our most natural resources," she said.

FGUA can be reached by calling 877-552-3482.

In 2002, the Southwest Florida Water Management District threatened to impose a fine of more than $500,000 if Polk didn't reduce water consumption in fast-growing Four Corners.

The fine was waived in October 2003 after Polk commissioners instituted a series of water conservation measures.

Michael Freeman is the editor of The Reporter. He can be reached at michael.freeman@the ledger.com or 863-421-5577

FGUA Board Backs Down and Delays Decision on Lehigh Expansion

2005-10-29T00:27:00.000-05:00

FGUA Board Backs Down and Delays Decision on Lehigh Expansion.
Vote Expected at the Board Meeting in Lehigh on Friday, November 4th.
By: Jim Fleming & Robert Anderson

Orlando, Florida:
On Thursday, October 27th, the Board of the Florida Government Utility Authority, (FGUA), the entity that controls the water and sewer system in Lehigh Acres, voted to delay a decision on two important issues affecting the planned expansion of water and sewer service in the community.

After pressure from Robert Anderson, president of Lehigh Acres Watchdog, Inc., the three member Board (with the Lee County representative absent), voted to suspend the meeting and reconvene in Lehigh Acres on November 4, 2005. The rescheduled meeting will be held at the East County Regional Library beginning at 10:00 AM. All residents are strongly urged to attend this meeting which will affect thousands of Lehigh Acres property owners.

Concerned Lehigh Acres citizens who defied a Lee County curfew to attend the meeting in Orlando, also included civic activists, Jim Fleming and Bill and Bonnie Bracken. "We have to keep chasing this FGUA Board all over Florida to make sure they don't impose five figure assessments on our Lehigh Acres neighbors without us being involved or knowing about it," Fleming said.

Anderson scolded the Board for canceling the previous meeting in Lehigh. Anderson reminded the board that "Decisions that could have such a great impact on Lehigh need to made right there in our community so more residents can speak and have their voices heard." Anderson added that Hurricane Wilma made it even more difficult for residents of Lehigh to attend the Orlando meeting, "Jim Fleming, Mr. and Mrs Bracken and I will be breaking curfew by driving back tonight."

Noticeably absent at the Board meeting was newly appointed member, Jim Lavendar, the Lee County Public Works director. He is expected to be in attendance at the Lehigh Acres meeting on November 4th.

Items affecting Lehigh Acres that were approved at the Board meeting included:

* The acceptance of Lee County as a fourth member of the FGUA Board, and the ratification of the interlocal agreement, which had already been signed by Lee County. This agreement allows Lee County to purchase the Lehigh system in the future.

* The replacement of a force main on Joel Boulevard.

* The expansion at of the well field at the Mirror Lakes Water Treatment Plant

* A contract extension with Severn Trent until February 1st 2006 to ease the transition to newly approved subcontractor, US Water/Wade Trim.

At the delayed Lehigh meeting on November 4th, the FGUA Board is expected to vote on:

* A $25 million bond issue to help pay some of the cost of the planned $56.3 million Phase One expansion plan of the Lehigh system.

* All bonding resolutions affecting FGUA's operations and expansion plans in Lehigh Acres and Golden Gate.

* All operations contracts with US Water/Wade Trim, despite what Anderson has repeatedly called inherent "conflicts of interests with FGUA's system managers.

At the urging of concerned citizens in Lehigh and other communities served by FGUA, the board is also looking into alternative financing methods including using lines of credit instead of bonds to fund their expansion plans.

Jim Fleming has asked FGUA to delay incurring any further debt that the Lehigh Acres taxpayers would have to inherit if the county buys what he calls, "The dilapidated and over capacity Lehigh system." At a previous FGUA board meeting Fleming reminded the members that the Lehigh sewerage treatment plant was so far over capacity that it was caught dumping millions of gallons of treated effluent into the Able Canal.

"Why are you continuing to issue letters of capacity to residential developers in Lehigh Acres, when you know that you can't possibly service them at current levels?" Fleming questioned.

County looks at buying utilities (Citrus County)

2005-10-29T00:21:00.000-05:00

County looks at buying utilities By Terry Witt

Acting on their lawyer’s advice, Citrus County commissioners hired two consultants on Tuesday to examine whether the county should purchase 11 local utilities from the Florida Governmental Utility Authority.

The board voted unanimously to hire the Tallahassee law firm of Rose, Sundstrom & Bentley as the lead consultant on a team that will look at the pros and cons of the purchase and whether it could impact customer bills.

County Attorney Robert Battista recommended the company for the $50,000 first phase of the study, saying the firm has a long history of handling utility purchases and could give commissioners the data and recommendations they need to make an informed decision on a complex transaction.

Battista also recommended hiring Burton & Associates, a rate consultant, to study the impact on utility rates. The rate consultant will work closely with Rose, Sundstrom & Bentley. The 11 utilities, once owned by Florida Water Services Inc., have varying rates for water and sewer services.

FGUA currently owns the water and sewer systems in Sugarmill Woods, Pine Ridge and Citrus Springs and eight other Citrus County communities, but it has been criticized for not being accountable to its customers or county government.The government utility group was heavily criticized earlier this year when it announced plans to impose property assessments in Pine Ridge and Citrus Springs to pay for line extensions. The Pine Ridge portion of the proposal was later eliminated.

However, customers complained they had no one to whom they could appeal for help since elected officials do not control the organization. The FGUA initially said the county had no power to stop the assessments, but later relented when commissioners insisted their interlocal agreement with FGUA gave them the power to regulate rates.

The question of whether the assessments are a rate has never been settled, but FGUA is allowing the Citrus County Water and Wastewater Authority to review the assessments planned for Citrus Springs. FGUA has been granted interim authority to impose the assessments until a final decision is rendered by the WWA in November.

FGUA Systems Manager Robert Sheets told commissioners at Tuesday’s meeting that FGUA wants to form a Citrus County citizen utility advisory board to improve accountability. He said the board would meet monthly with FGUA.

Sheets said Sugarmill Woods, Pine Ridge and Citrus Springs, which have 70 percent of the customer base, would each have two members on the board. Two at-large members from other communities served by FGUA would serve on the board.However, Commission Chairwoman Vicki Phillips said FGUA had lost its accountability, and she felt it was prudent to begin looking a whether the 11 systems should come under county ownership. Sheets said FGUA considers itself a partner with the county and will cooperate with the study.In other business:n Public Safety Director Charles Poliseno reported the addition of paid firefighters has reduced response times.

He said the time it takes for fire trucks to reach the street after the call is received (chute time) has been reduced from a previous average of 6 minutes 13 seconds to 1 minute 6 seconds for career firefighters.Poliseno said the actual response time — the time it takes to reach the scene of a fire — was previously 11 minutes 17 seconds, but he said career firefighters are responding within 7 minutes.

However, Poliseno said volunteer firefighters continue to be an extremely important part of the fire-rescue service, and efforts have been stepped up to recruit more volunteers. The board voted 3-2 in assent of the concept of recruiting physicians with lower impact fees. The board instructed staff to develop the criteria the county would use to reduce impact fees for physician recruitment. A portion of the impact fees would be paid using occupational license revenue.

Phillips and Commissioner Joyce Valentino voted against the measure, saying they didn’t think the county should give impact fee breaks to doctors when no other taxpayers in the county would be entitled to a similar reduction.

However, the chief executive officers of Citrus Memorial Hospital and Seven Rivers Regional Medical Center said the federal government lists Citrus County as being “underserved” when it comes to physicians.

They said the county has a 27-doctor deficit overall. Citing one statistic, they said the county has a need for three additional pediatricians.

Citrus County Commission notes -----

2005-10-29T00:15:00.000-05:00

Copyright Times Publishing Co. Oct 27, 2005

Commissioners also voted unanimously Tuesday to hire a Tallahassee law firm to help the county evaluate whether to purchase the Florida Governmental Utility Authority's 11 Citrus County systems.

County Attorney Robert "Butch" Battista recommended the Rose, Sundstrom & Bentley firm, which he said had particular expertise in evaluating and handling utility purchases.

The commission voted to set aside $50,000 for the first phase of its study, which will also include an investigation of rates by St. Augustine-based Burton & Associates.

FGUA systems manager Robert Sheets said the utility would work with the county during the evaluation process.

Commissioner Jim Fowler asked Sheets whether the FGUA had any plans to improve its accountability.

"We have learned from the mistakes we've made here," Sheets said.

He said the utility plans to set up an advisory board including one resident from Pine Ridge, one from Sugarmill Woods, one from Citrus Springs and two at-large members from other areas of the county.

But Commission Chairwoman Vicki Phillips said she still saw conflicts in the FGUA's operations.
"The FGUA, unfortunately, has lost accountability," she said.

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

State Utilities Group Urges Businesses, Residents to Conserve Water

2005-10-29T00:11:00.000-05:00

Published Thursday, October 20, 2005

State Utilities Group Urges Businesses, Residents to Conserve Water

By MICHAEL W. FREEMAN The Reporter Editor POINCIANA -- At a time when even President Bush is urging Americans to conserve energy and consider driving less, the issue of conservation of natural resources may be more prominent today than at any time in decades.In Polk County, though, conservation has been an issue for years, although the focus hasn't been on rising gasoline prices, or natural gas or oil costs. The issue has been water conservation, which became a serious problem for Polk County commissioners three years ago when rapid development in Northeast Polk led to over pumping in the Four Corners area.

Polk County commissioners responded by instituting a series of conservation measures, but they're not alone in urging residents to conserve as much water as possible. Last week, the Florida Governmental Utilities Association was doing the same thing.Dieudonne Thomas, the community service representative for the FGUA, made a presentation before a local business group, the Poinciana Area Council. The council held its monthly luncheon meeting at the Solivita ballroom.

In introducing Thomas, Lili Patrick, chairman of the council, said, "I'm sure she's going to explain to all of us why our water bills are going up."Thomas said her goal wasn't to offer quick answers on specific water bills, but to educate residents on what they could do to keep water usage down -- and, by extension, lower their own bills."One of the main goals of the FGUA is to stress water conservation, including use of reclaimed water," she said, adding that using reclaimed water for landscaping can be very cost effective."The Solivita golf course uses 100 percent reclaimed water," Thomas said.

FGUA operates four utility services in Florida, including one main system in Poinciana. Another part of their mission, Thomas said, is "protecting our natural resources and educating residents."Conserving water in the home isn't all that difficult, she said. While most new homes have water-efficient plumbing fixtures and toilets, refitting these fixtures in older homes can also decrease a utility bill by reducing the amount of water people use each day.

Besides changing plumbing hardware, other tips are:

Fixing leaky faucets because one slow drip can waste 15 to 20 gallons of water a day.
Fixing leaky toilets, which can save more than 30,000 gallons a year with each repair.
Planning lawn and garden watering around local watering regulations, which can reduce water consumption by up to 50 percent.
Choosing native plants naturally adapted to the Florida environment for gardens because these plants can have their water needs provided by natural rainfall patterns.
Limiting garden hose use by considering a "drip irrigation" system or "micro-sprinkler" for shrubs and flower beds that need watering;
Limiting shower time to five minutes.
Washing dishes and laundry only in full loads.Conservation measures, Thomas said, can help people realize a savings over time on their utility bills."We're here to let you know how practicing good habits can help preserve one of our most natural resources," she said. "The next time you fill your glass of water, remember the FGUA is a part of your life and is working hard to preserve this resource."FGUA can be reached by calling 877-552-3482.

In 2002, the Southwest Florida Water Management District threatened to impose a fine of more than $500,000 if Polk didn't reduce water consumption in fast-growing Four Corners. The fine was waived in October 2003 after Polk commissioners instituted a series of water conservation measures.

Utilities panel puts off vote on Lehigh

2005-10-28T21:59:00.000-05:00

Expansion measures will be decided Nov. 4 By JUSTIN ST. CLAIR JSTCLAIR@NEWS-PRESS.COM Published by news-press.com on October 28, 2005

ORLANDO — The board that controls Lehigh Acres' water and sewer system voted to delay deciding two key measures on a major expansion project Thursday so that the votes could be held at a newly scheduled meeting in Lehigh.

The Florida Governmental Utility Authority board will vote on a $25 million bond to help pay for expansion of the Lehigh system and renewal of the system's operations contract at 10 a.m. Friday, Nov. 4, at the East County Regional Library.

Thursday's meeting was originally scheduled for Friday, Oct. 21, in Lehigh, but was rescheduled and moved because of the threat of Hurricane Wilma.

Lehigh resident and activist Robert Anderson, along with three other Lehigh residents, traveled to Orlando to be at the meeting to make sure Lehigh was represented.

Anderson told the three board members, who represent Polk, Citrus and Osceola Counties, that decisions that could have such a great impact on Lehigh need to be made there so more residents can speak.

"We want to be heard," Anderson said. He said the hurricane made it even more difficult for people to make it to Orlando for the 5 p.m. meeting."I will be breaking curfew driving back tonight," he said.

The meeting Thursday would have been the first in which Lee County had a representative on the board. But the representative, County Public Works Director Jim Lavendar, couldn't attend because he was involved in hurricane recovery efforts.

He is expected to attend the Nov. 4 meeting.The authority is planning a $56.3 million expansion in Lehigh aimed at slowing the booming number of wells and septic tanks in the area, which was platted in the 1950s and 1960s into thousands of mostly quarter-acre lots.

But that plan, and the possible assessments on landowners, has met with opposition from some residents and has spurred county commissioners to talk about purchasing the system and making their own expansion plans.

Board member Richard Wesch of Citrus County said more local people will be able to attend the Nov. 4 meeting.The board also approved a measure accepting Lee County as its fourth member and an agreement allowing the county to buy the system in the future.

Lee County has asked the authority to hold off taking on any debt that the county and its taxpayers would inherit if the county buys the troubled Lehigh system, which is operating near capacity and recently spilled treated wastewater into a canal near the treatment facility.

Lehigh Citizens Rally to Protest Water and Sewer Assessment Plans

2005-10-26T13:45:00.000-05:00

By: Jim Fleming and Robert Anderson

Lehigh Acres, FL, October 20, 2005:

A "Citizens' Rally," organized by the Lehigh Acres Watchdog and Citizens United Against FGUA, was held at 6:30 PM, October 20, 2005 at the East Lee County regional Library on Gunnery Road in Lehigh Acres.

According to the group chairman, Mike Welch, the purpose of the rally was to inform the public of plans by Florida Government Utilities Authority (FGUA) and Lee County Government to expand water and sewer service in Lehigh Acres, at the local taxpayer’s expense. The rally was also originally planned to increase public awareness and involvement in an FGUA board of directors meeting that was scheduled for the following morning at the same location in Lehigh Acres.

For unknown reasons, FGUA abruptly canceled the meeting, and rescheduled it for Thursday, October 27, 2005 at 5:00 PM at the Holiday Inn Select at 5750 TG Lee Blvd. in Orlando. "It looks like they are trying to duck the firestorm that they are about to create here in Lehigh Acres with their outrageously expensive expansion plans," said meeting organizer, Robert Anderson, the president of Lehigh Acres Watchdog, Inc., who also said he plans to attend the FGUA board meeting in Orlando. "It's too important for the people of Lehigh Acres not to be represented at this major policy and decision making meeting that will affect all our pocketbooks," Anderson added.

During the two hour rally Mr. Anderson showed the audience a series of computer-generated slides and videos detailing FGUA's and Lee County's plans to expand the water and sewer system in the community, and the various methods that the Lehigh taxpayers and rate payers would involuntarily pay for such a system.

The presentation shed light on several issues related to FGUA including the recent dumping of treated effluent into Lehigh's canals and the overcapacity at their local sewerage treatment plant.

The opening video showed excerpts of an exchange between ECWCD Supervisor, Jim Fleming, and FGUA board members and managers at the September FGUA board meeting in Citrus County. In that video, Mr. Fleming asked if FGUA was issuing conveyance letters to developers in Lehigh Acres, indicating that the sewer plant had enough available capacity to serve all the new developments in Lehigh Acres. Despite FGUA's assurances to Mr. Fleming, at that meeting, Mr. Anderson subsequently uncovered documented evidence of at least three such conveyance letters issued to developers within the past two months.

"Why does FGUA continue to write letters of conveyance to developers when both the FGUA and the Florida Department of Environmental Protection know that the current Lehigh Acres sewerage treatment plant is running so far overcapacity in some months that it has resorted to dumping effluent into our canals," Anderson asked.

Jim Fleming added that the 2.5 million gallon per day plant was accepting as much as 3.5 million gallons of wastewater a day in the summer months due to over development in Lehigh Acres and the intrusion of rainwater into the dilapidated sewer lines. "The current water and sewer customers in Lehigh Acres are not only paying for growth, they're also paying to treat excess rainwater," Fleming said. "That's an outrage."

Anderson, who showed excerpts from FGUA's own documents, revealed that FGUA had already planned special assessment bonds for 7.6 million dollars to pay for the expansion of water and sewer service to 414 more lots in Woodridge Preserve, the large single family development in Lehigh Acres, just off busy, dangerous, two-lane State Road 82.

Most of the discussion was devoted to the recently unveiled plans by the Lee County government to purchase the Lehigh Acres water and sewer system from FGUA.

FGUA has repeatedly stated that their price for the Lehigh system was $42 million. However, Mr. Anderson pointed out that FGUA continues to bond an additional $25 million dollars that Lee County will have to absorb, plus expenses for FGUA that are not included in the purchase price. Mr. Anderson asked, "Can Lee County afford to buy the utility at a price that could exceed $80 million? And, if so, how can the overburdened taxpayers of Lehigh Acres afford to bear that kind of long term indebtedness."

Anderson pointed out that two of FGUA's systems (Lehigh Acres and Golden Gate) are about to get Deep Well injection units (at a price of $7 million for Lehigh) to remove treated wastewater and dump it 2500 feet below ground. However, according to Anderson, deep well injection systems have been raising groundwater contamination issues on the east coast Florida especially in Miami-Dade County.

On the issue of FGUA's continuing bonded indebtedness, another video of the September FGUA board meeting was shown. In that video, Jim Fleming again addressed the board asking if the authority's managers had informed Lee County government of their plans to bond tens of millions of dollars in future debt that the county and the taxpayers would have to pay.

At the time FGUA system manager, Robert Sheets, hadn't notified Lee County of their bonding plans, but will be issuing resolutions for the parity debt at the FGUA board meeting in Orlando. FGUA has not yet scheduled a public hearing on these issues, and Robert Anderson told the audience to be vigilant about these hearings, and plan to attend in large numbers. "This is the most important pocketbook issue on the immediate horizon for the taxpayers of Lehigh Acres, Fleming added."One way or the other, we are going to be told to pay tens of millions of dollars for a system that we don't want, and nobody has proven that we need."

According to Robert Anderson, Lee County will sign an Interlocal Agreement with FGUA on Oct 18th 2005, reserving the right to purchase the Lehigh System from FGUA. In that agreement the county government will appoint Mr. Jim Lavender, Lee County Public Works Director, as an FGUA Board member, with Rick Diaz, Director of Lee County Utilities, as an alternate member.
At a County Commission meeting on October 3rd., Rick Diaz stated that "There will be assessments and rate Increases if we buy the Lehigh Acres system from FGUA. There is no way around it. Maybe a special MSBU is needed.” During that same meeting Diaz added that, “We only need to install water lines to all Lehigh Acres lots. The septic tanks are working fine. The Florida Department of Health states there are no issues currently with septic tanks in Lehigh Acres”

Jim Fleming asked why there was such a pressing need for potable water lines in Lehigh Acres if the septic tanks were working properly. "If the water is safe for us to tap with private wells, why is there a public health issue? I believe that there are other motives involved," Fleming said.

"Why is the FGUA mortgaging our community’s future without the community's input?" Anderson added.

Anderson's presentation also delved into potential conflicts of interest and other issues involving FGUA.

According to documents presented by the Lehigh Acres Watchdog, Inc., "FGUA has ignored the obvious conflict between Executive Director, Mr. Robert Sheets and FGUA's selected sub-contractor, US Water/Wade Trim. Mr. Sheets and his firm, GSG, have worked as consultants for Wade Trim within the past twenty-four months."

Robert Sheets' written response was that the board of FGUA was aware that GSG prepared a Revenue Manual for Wade Trim to use with its clients in the State of Michigan two years ago. GSG was compensated for its work and has had no contractual relationships with Wade Trim in any proposal or other state since then.

Anderson pointed out that FGUA is proposing to award this major contract to Wade Trim, a firm that has priced their service over $21,000,000 million dollars higher than the lowest cost proposal of $ 58,000,000. "The companies were each clearly told to give the most competitive price. FGUA should not give them “high grades” for all their “promised services”, only to let them bring their cost down to a lower price model after the selection. Their price is 36% higher than FUGA’s for the project. You cannot possibly negotiate down from this price without a significant reduction in customer service," Anderson said.

Mr. Anderson pointed out that, on October 4th., systems manager, Robert Sheets, reported that it was too early to release details about the contract, but he said classification issues led Wade-Trim/US to submit a contract proposal that was millions of dollars higher than the lowest bidder.

During Anderson's video clips of the September FGUA board meeting in Citrus County he showed Mike Welch addressing the board on the issue of the hardship that the proposed assessment would cause for the young working families and retirees of Lehigh Acres. "We don't mind paying taxes, but these unnecessary and unwanted assessments will break the backs of our citizens."

Everyone who attended the meeting agreed that the best possible course of action would be to take any and all means to stop the expansion and assessment program altogether.

Linda Carter, an LACPC board member suggested that the group unite and fight the FGUA with a class action suit. "Those of us who are retired and on fixed incomes should seek the help of the AARP to help us with the legal costs."

When asked if the group had considered such action, Mr. Anderson informed the group that he has already solicited the help of longtime FGUA critic, civic activist and attorney Mike Twomey of Orlando.

Anderson, Fleming and Welch are also reaching out to citizens groups from other areas affected by FGUA's expansion plans. They have already met with members of the Golden Gate Civic Association, and are contacting similar groups in Polk, Osceola and Citrus counties.

$2,250,000 offered for water, sewer (Citrus County)

2005-10-21T05:40:00.000-05:00

$2,250,000 offered for water, sewer
By Terry Witt

An attorney for the company planning to build an upscale RV resort east of Inverness said his client is willing to pay $2,250,000 of the cost of supplying water and sewer to the project.

Robert Clark, who represents Century Realty Funds Inc., made the offer in an Oct. 14 letter to Inverness and county officials in which he asked if they were interested in a draft utilities agreement.

The latest offer includes $500,000 from Century Realty Funds Inc. to aid in the upgrade of a regional wastewater treatment plant owned by the city of Inverness.

Clark said the resort would be marketed similar to other projects his client has developed, focusing on people who drive recreational vehicles costing $250,000 to $1.5 million. Lots would sell for $75,000 to $150,000.

Neither the county nor the city has formally responded to the letter.

The proposed resort, which would be developed on the shores of Big Lake Spivey, has yet to receive a recommendation of approval from the Planning and Development Review Board or formal approval by the Citrus County Commission.

Inverness City Manager Frank DiGiovanni declined comment on the letter.

Citrus County Development Services Director Gary Maidhof said Century Realty Funds, Inc. realizes it must pay for water and sewer improvements as the cost of doing business, particularly in small counties like Citrus.

However, Maidhof said it might be premature for the county to approve a utilities agreement with Clark’s client before the RV resort itself is approved.

The resort would be developed on property currently zoned for one house per 20 acres.

The plan is to develop more than 800 RV units on 150 acres of land.

The project would include miles of walking trails, an executive golf course, a small grocery store, a canoe livery, boat ramp, clubhouse and other on-site amenities, according to Clark’s letter.

Utility offers rate freeze to customers (Citrus County)

2005-10-21T05:34:00.000-05:00

Utility offers rate freeze to customers By Terry Witt

A letter from the manager of the Florida Governmental Utility Authority said it may be able to freeze water and sewer rates for five years in Citrus County if certain things happen, but one county official called the letter “garbage.”Robert Sheets, who is in charge of operating 11 private utilities for FGUA in Citrus County including those in Sugarmill Woods, Pine Ridge and Citrus Springs, told County Commission Chairwoman Vicki Phillips in an Oct. 14 letter the utility may not have to raise rates through 2010.

Sheets said if savings are realized through the hiring of a new lower-cost contract operator and if line extension assessments are imposed in Citrus Springs, the rates may remain at the current levels for five years.FGUA, a government-owned utility, has been criticized for proposing a $2,068 line extension property assessments in Citrus Springs. FGUA has been granted interim approval of the assessments while the county utility regulatory director reviews them in preparation for hearings in November. The assessments, in FGUA’s view, place the cost of growth on customers connecting to the utility rather than existing consumers.The government utility also has been criticized for recommending approval of a new contract operator that was high bidder for the management and operations contract. However, Sheets said FGUA has negotiated the most financially economical contract with Wade-Trim/US. He said it also provides enhanced customer service. He said the lower-cost contract will stabilize rates.“We believe that this fact, combined with our hope that we are successful in implementing our line extension assessment program in Citrus Springs, may allow us to assure the county that there will be no rate increases beyond the annual inflation indexing for at least five more years effective October 2005,” he said.

However, Citrus County Utilities Regulatory Director Robert Knight, who is reviewing FGUA’s proposed line extension property assessments, said Sheets’ Oct. 14 letter does not commit the utility to freezing rates for five years. The letter, Knight notes, only says the utility “may” be able to keep the same rates for five years.“It’s an empty promise. There’s no assurance,” he said.Knight said the letter also contradicts what FGUA is doing with the proposed line assessments in Citrus Springs. He said the assessments in Citrus Springs are a proposed rate increase regardless of what Sheets calls them.

And Knight said this is not the first time FGUA has promised to hold the line on rates.When FGUA bought the 11 utility systems in Citrus County, it made the same promise, Knight said, but the utility reneged on the pledge a year-and-a-half later when Chief Financial Officer David Miles, in a June 22, 2004 letter, made a “formal request for a limited rate increase proceeding.” Miles said FGUA wanted to increase connection charges in Citrus County.Knight also cites an Aug. 21, 2003, letter in which FGUA promised to continue to provide line extensions in Pine Ridge at a rate previously used by Florida Water Services. He said the letter pledged that line extensions would continue to cost customers $446 during the first five years after FGUA owned the Pine Ridge system. But he said FGUA has broken that pledge as well.Sheets responded that the connection charges and the line assessments are not rates. He said evidently Knight considers anything listed on FGUA’s tariff sheet a form of rates. He said FGUA considers its sewer and water charges to be rates, but nothing else.But Knight has a different definition of rates. He said any FGUA proposal that would raise the charges paid by customers is a rate increase in the county’s view. He said county commissioners have made that point and his office has taken the same position.“Evidently, they still don’t understand,” Knight said. “This letter is garbage.”

FGUA Cancels Board Meeting in Lehigh Acres

2005-10-19T19:23:00.000-05:00

FGUA CHANGE DATE AND TIME AGAIN -----

Good Afternoon,
Please note the following change: Due to the impending Hurricane Wilma, the FGUA Board meeting scheduled for October 21, 2005 in Lee County has been cancelled. The FGUA Board meeting will be rescheduled for Thursday, October 27, 2005 at 5:00 pm at the Holiday Inn Select in Orlando. The address of the new location is as follows (an area map is attached):
Holiday Inn Select
ORLANDO-INTERNATIONAL AIRPORT
5750 T.G. LEE BLVD.
ORLANDO, FL 32822
UNITED STATES

Tel: 1-407-851-6400
Fax: 1-407-240-3717
<> Please let me know if you have any questions or need additional information.
Thank you,

Erin Quinn
equinn@govmserv.com
Administrative Assistant, Clerk to the Board Government Services Group, Inc.
280 Wekiva Springs Road, Suite 203
Longwood, FL 32779-6026
(407) 629-6900 office
(407) 629-6963 fax
www.govserv.com

These was recieved at 4:43pm Wednesday 10/19/05 -----

Good Afternoon,

Due to the impending Hurricane Wilma, the FGUA Board meeting scheduled for October 21, 2005 in Lee County has been cancelled. The FGUA Board meeting will be rescheduled for Friday, October 28, 2005 at the Crowne Plaza Hotel Orlando Airport in Orlando at 12:30 pm.

Crowne Plaza Hotel
ORLANDO-AIRPORT
5555 HAZELTINE NATIONAL DR
ORLANDO, FL 32812
UNITED STATES
Tel: 1-407-856-0100
Fax: 1-407-855-7991

Thank you,
Erin Quinn
equinn@govmserv.com
Administrative Assistant, Clerk to the Board Government Services Group, Inc.
280 Wekiva Springs Road, Suite 203
Longwood, FL 32779-6026
(407) 629-6900 office
(407) 629-6963 fax

FGUA sticks it to the taxpayers of Lee County...

2005-10-18T13:43:00.000-05:00

In spite of assurances from FGUA leadership that no money would be borrowed without first consulting the Lee County Commission, the FGUA managed to get a 25 million dollar bond in the back door. And just who will get stuck paying the debt?

The taxpayers of Lee County.

On the agenda of this friday's meeting is the approval of a bond for Lehigh Acres. In light of all this I have to wonder:How much taxpayer money will be paid to GSG [FGUA's managing company]?

And how much taxpayer money will find it's way into the pockets of Robert Sheets [System Manager, who is also CEO of GSG] and Charles Sweat [Director of Operations, who is also Vice President of GSG]?

And will these individuals be reimbursing the taxpayers anytime soon???But the most important question is What will the Lee County Commission do about this?

All the more reason to communicate with your County Commissioner... and to tell the FGUA board on Friday the free ride is over...

Citizens' Rally

2005-10-13T11:00:00.000-05:00

Citizens Rally

2005-10-13T09:19:00.000-05:00

- Public Notice -

Citizens Rally

Can you afford $17,500 for Water and Sewer???

Will Lee County buy the system from the FGUA and charge all Lehigh Acres

residents with the purchase with high rates and taxes???

Let’s find out the truth ----

October 20th 2005
6:30pm - 8:30pm
At the East County Regional Library
881 Gunnery Road

FGUA only board this year in Lehigh Acres

FGUA Board Meeting
October 21st 2005
10am – 1pm
At the East County Regional Library
881 Gunnery Road

Can Customers of FGUA systems trust US Water

2005-10-11T18:27:00.000-05:00

-----------------------------

Can Water and Sewer Customers

on the FGUA Systems

trust Gary Deremer

the President of US Water

------------------------------

----------------------------------

US Water is about to sign a 5 year

Multi Million Dollar day to day

operations contract with FGUA

read below to learn about the practices of

US Waters President Mr. Gary Deremer -----

Exert for Tampa Bay's 10 News Story ------

Acting utility director wins contracts from city

ALENE BURKE:“And he said the city told us to not begin the job. So I said who in the city told you not to do the job? He said Gary Deremer, the Utility Director.”

BURKE:“I said probably on three occasions that I am absolutely shocked to see the Utility Director wearing a U.S. Water shirt. My understanding is that gifts like this should not be accepted by public officials.”It turns out Deremer didn’t receive the shirt as a gift from the company, because he is the President of the U.S. Water.

GARY DEREMER:“I’m working on a story about the fact that you work as Acting Utility Director yet your firm or firms you’ve been associated with have received more than a million dollars in the past five years. Does that present any conflict in your mind? Well Mike, really the person you need to speak is the City Manager. Unless I’m directed by the council or the city manager to address any issues I don’t.”

DEREMER:“You’ve indeed received more than a million dollars or the companies you’ve been associated with as you’ve been consulting Utility Director. Isn’t there an ethical problem with that? Again, I’m going to have to direct you to the City Manager."

BURKE:“I think Gary Deremer should be immediately ejected from his seat of utility director.”The companies Deremer has been associated submitted the lowest or only bid on many projects. However, in several instances there have been cost overruns on the projects and they end up costing taxpayers more than the original bid.

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- MORE -

Gary Deremer -- Florida Ethics Troubles ---

http://www.ethics.state.fl.us/ethics/press_releases/Jan05pres.pdf

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- MORE -

Solving mystery of missing city ethics

Letters to the Editor St Pete Times Published March 31, 2004

Editor: My first trip to a Port Richey City Council meeting on March 23 was one of the most surreal experiences that I have ever had. I simply went to find out why the city's sewer and water lines stopped 125 feet from my property line and why so much mystery revolved around this matter.

There was a mystery man demanding that I pay to extend the city's subpar sewer and water work, a mystery video tape that was ordered by a mystery person that had to be reviewed by some other person not identifiable by the city, mystery measurement when the 125 feet suddenly transformed into 220 feet when a bill was sent to me and mystery management not only in the utility department but also in the city manager's office. I was committed to solving these mysteries and debunking the myths that this city has been perpetuating for some time at significant expense to me.

As I stood at the podium, I glanced to the left and was shocked beyond belief to see city Utility Director Gary Deremer blatantly sporting an embroidered U.S. Water shirt at an official meeting. I was so stunned that I verbalized this dismay out loud.

I privately thought, Could this person work for U.S. Water? What is the connection between the city utility director and this company, the same company that was at my home a few days before with a city employee and the same company that stretched the 125 feet to 220 feet? Incidentally, 220 feet from the manhole goes well beyond the furthest limits of my property line. What is the connection between Deremer and the company that presented me with a bill to pay almost $6,000 to get under the city's street and run sewer and water pipes? The next day, I learned that our utility director is the owner of U.S. Water, a company that for some time has done, and continues to do, a significant amount of work for this city at taxpayer expense.
Article II, section 8 of the Florida Constitution states, "a public office (or position) is a public trust." As stewards of the public trust, all city employees must use the powers and resources of the city, entrusted to them by the public, to further the public interest and not for any personal gain or financial benefit." Furthermore, the city of Port Richey ordinances state that "city employees shall not engage in outside employment or financial transactions of any kind with any person, entity, firm, or corporation doing business with the city when such transactions constitute a conflict of interest" and that they should seek guidance, for their own protection, by submitting the details of questionable situations, in writing, to the city manager before engaging in such questionable activity.

Did Deremer seek this guidance from City Manager Vincent Lupo? What guidance did he give? Is the city's use of the utility director/consultant a lame way to avoid the appearance of impropriety and mislead the public? Job titles mean nothing. Deremer performs the role of the utility director and he signs his name as such.

This reasonable observer believes that there is a conflict of interest and that it should be ended immediately. Additionally, why has Lupo allowed this to exist?

I am concerned. So concerned that I have contacted the Florida Commission on Ethics and I encourage everyone else to do the same if they suspect impropriety and misuse of public office.
I am someone who thought I wanted to live in Port Richey after spending over $200,000 to build a home and now am being harassed and forced to pay for city work.

-- Alene Burke, Lutz

PORK AND GSG AND FGUA

2005-10-09T15:25:00.000-05:00

FGUA admin group GSG is making 8.2 million dollars in Fiscal year 2006

Citrus County commission to discuss FGUA purchase

2005-10-09T12:26:00.000-05:00

County commission to discuss FGUA purchase

By Terry Witt

Citrus County Commission Chairwoman Vicki Phillips said she wants to talk with fellow board members on Tuesday about whether to purchase a controversial public utility.Phillips said she has lost trust in the Florida Governmental Utility Authority and believes the county should at least investigate purchasing FGUA, which she says has no accountability.

FGUA is the government entity that purchased 11 private utilities in Citrus County from Florida Water Services in December 2003.Since that time, FGUA has been criticized for providing poor customer service and proposing property assessments without first soliciting public comment. The latest criticism surrounds FGUA’s plan to hire the high bidder for an operations contract.

Phillips said she favors forming a professional team of non-staff members to evaluate whether the county can afford to purchase FGUA.“My goal on Tuesday is to put this out there for commissioners to discuss. I would like to assemble a group of experts to be able to come back to the board with numbers,” Phillips said.She said she realizes the financial issues could be complex. She said the board was told at the time FGUA bought the 11 utilities that the county could buy them back at the original purchase price whenever it was ready.

But she said it appears now that any improvements FGUA has made to the utilities it purchased, and any debt it has acquired, would have to be added to the county’s purchase price. She said she is growing weary of the changing numbers FGUA uses, calling it a “shell game.”

Commissioner Gary Bartell, like Phillips, said he wants to take a look at purchasing FGUA. However, he said he is not ready to commit to a purchase. He wants to be sure the purchase would not result in a rate increase for its Citrus County customers.

Bartell said he supported the original concept behind the creation of FGUA. He said the organization was to purchase private utilities and hold them like a warehouse until local governments could afford to buy them back. But he said he has been disappointed in the way FGUA operates.

He said the fact that FGUA tried to impose the property assessments without county approval was disappointing.“The performance FGUA has demonstrated this past year, I’m not impressed with at all,” he said.

County may operate water, sewer service

2005-10-05T10:43:00.000-05:00

County may operate water, sewer service

Director suggests water lines first

By JUSTIN ST. CLAIRJSTCLAIR@LEHIGHNEWSSTAR.COM Published by news-press.com on October 5, 2005

Lee County may soon be able to take over operations if not ownership of Lehigh Acres' water and sewer system, according to Lee County Utilities Director Rick Diaz.

Diaz told commissioners at a Management and Planning Committee meeting Monday that the contract to operate the system will soon be up for grabs.

The county has expressed interest in buying the system from current owners Florida Governmental Utility Authority. Commissioner John Albion said taking over operations would be a great first step toward that goal.

"That puts us in an excellent position," Albion said. "That would be an important step for the interim."Diaz said he would bring the idea before the authority's board of directors at the next meeting on Oct. 21 in Lehigh.

The county will be represented as the fourth member of that board at the meeting.

Diaz also advised commissioners that it would be better to look at buying the utility system sooner than later, given the authority's plans for expansion.

The proposed expansion includes bringing water and sewer lines to 4,100 additional lots in central Lehigh, expanding capacity at the sewage treatment plant and building a second water treatment plant, according to Charles Sweat, the authority's director of operations.

"It makes sense for Lee County Utilities not to wait any longer and take the bull by the horns, considering that the bull is going to get bigger," Diaz said.

Authority System Manager Robert Sheets said the projects will not affect the rates of the current 12,302 water and 9,951 wastewater customers, but will be paid for with assessments to lot owners in the expansion area.

If the total expansion cost is divided evenly among all 4,100 lot owners, the assessments would be $13,740 per lot. Authority officials said, however, an actual assessment rate has not been determined and will not be available until November at the earliest.

Diaz said the county utility system would focus first on laying water lines through the bulk of the Lehigh area before considering any sewer expansions.

He said that would keep assessments down considerably, as water lines are cheaper to lay than sewer.

Having treated water delivered to all residents would also eliminate any concerns about groundwater contamination because of septic systems, he said.

Commissioner Ray Judah said the county should still look into sewer expansion in the long term, as the septic tanks force water managers to keep groundwater levels artificially low, and Lehigh will need more groundwater as growth continues.

Sweat said after Diaz's presentation that he still believes that the authority's current plans for expansion are still best for Lehigh residents, and doubted the county could do things cheaper and better.

The authority's board will meet from 10 a.m. to 1 p.m. Friday, Oct. 21 at the East County Regional Library at 881 Gunnery Road.

Utility to stick with high bidder

2005-10-04T17:59:00.000-05:00

Utility to stick with high bidder By Terry Witt

An executive with the Florida Governmental Utility Authority on Monday said the FGUA is ready to present a contract to the company that was high bidder two weeks ago for an operations contract.

Systems Manager Robert Sheets said it was too early to release details about the contract, but he said "classification issues" led to Wade-Trim/US submitting a contract proposal millions higher than the lowest bidder.

After more than a week of negotiations, Sheets FGUA has asked Wade-Trim to separate its estimated costs for basic services from additional services. Doing that, he said, brought Wade-Trim more into line with the other bidders.

He said he believes Wade-Trim officials thought they were giving FGUA a more favorable pricing bundle by grouping basic services and additional services together, but he said it had the opposite effect."

It gets their numbers well within line with others," Sheets said. "We believe we have reached the point where we can present a contract to Wade-Trim."FGUA, which owns 11 water and sewer systems in Citrus County, was questioned at its board meeting in Inverness on Sept. 15 about why it chose Wade-Trim as the No. 1 ranked bidder when the company's contract proposal was $21 million higher than the low bidder.Wade-Trim had submitted a proposal to operate, maintain and handle customer service and billing for $79.9 million over five years. Southwest Water (OpTech) had proposed a $58.2 million contract. Severn Trent Environmental Services offered to do the work for $61 million.

The contract proposals were not sealed bids. FGUA used a point system to grade the proposals, with 30 percent of the grade dealing with costs. Seventy percent of the points were for technical, business management and financial considerations.

Citrus County Administrator Richard Wesch, who sits on FGUA's board of directors, was assigned to lead the committee that negotiated with Wade-Trim.

Sheets said he would be releasing a copy of a briefing memo today or tomorrow explaining why Wade-Trim would be offered a contract.

US WATER AGREES TO LOWER BID

2005-10-04T13:02:00.000-05:00

US WATER AGREES TO LOWER BID -- IS THIS A CONFLICT OF INTEREST WITH GSG -- FGUA WILL VOTE ON CONTRACT Oct 21st in Lehigh Acres

FGUA is proposing to award this major contract to a firm that has priced their service over $ 21,000,000 million dollars higher than the lowest cost proposal of $ 58,000,000. The companies were each clearly told to give our most competitive price with our Proposal. You should not give them “high grades” for all their “promised services”, only to then let them bring their cost down to our price model after the selection. Their price is 36% higher than FUGA’s price for the project. You cannot possibly negotiate down from this price without a SIGNIFICANT reduction in customer service.

Is the FGUA a good thing????

2005-09-25T12:35:00.000-05:00

"Our basis is the best interest of all the counties of Florida, not just our own counties," said FGUA board member Richard Wesch, who is also Citrus County Administrator. "This authority doesn't operate in a vacuum but operates clearly in the public interest."

"Do we want to have quasi-governments run by bureaucrats making decisions for rate payers?" Rep. Frank Attkisson asked after the meeting. "I don't think Florida wants that. I think it's really dangerous."

"There is nothing to stop members of the FGUA from taking advantage of non-participating counties when it comes to rate making, cost allocation or other factors of the like."
Attkisson also questioned claims that the FGUA has financed professional fees related to buying Florida Water with money taken from a utility it already owns in Osceola County, an area he represents.

Excert form St. Petersburg Times published May 17, 2002

FGUA in Lehigh Acres and the system

2005-09-22T18:47:00.000-05:00

The Utility System service area is located entirely within the bounds of Lee County, and is situated 12 miles east of Fort Myers near 1-75 and Southwest Florida International Airport. The Utility System was developed to serve the Lehigh Acres community. A location map of the Utility System is included below. The Utility System covers approximately 60,000 acres of residential and light commercial property in Lee County. The majority of the developed property is single-family residential homes, condominiums, apartments, patio homes, golf course villas, and estates with the commercial development primarily for support of the surrounding residents. The Utility System includes a water treatment plant and a wastewater treatment plant and currently serves approximately 9.3 percent of the area authorized to be served by the Utility System.

Water System

General
The water facilities of the Utility System include one lime softening treatment plant consisting of water supply wells with associated lime softening, disinfection and chemical addition facilities, water storage tanks, and approximately 165 miles of water transmission and distribution lines ranging in size from 2 to 16 inches in diameter.

Water Supply
The Utility System has twelve raw water supply wells providing 2,200 gpm of raw water from the sandstone aquifer. The Utility System was permitted for twenty wells in 1996 and ten wells were constructed. Two wells were permitted in February 2000 and recently constructed. The Utility System operates under the South Florida Water Management District (SFWMD) Water Use Permit (WUP) No. 36-00166W. The permit expires on November 14, 2006: The WUP allows an average daily withdrawal of 2.39 million gallons per day (MGD) and a maximum daily withdrawal of 3.11 MGD.

Water Treatment and Storage
The Utility System is served by one water treatment plant. The treatment train includes aeration, lime softening, pH adjustment, ammoniation, filtration, disinfection, storage and high service pumping. The Lehigh Acres Water System as of May 31, 2005 serves 12,224 connections. (Build out estimated at 153,800 ERCs).

Wastewater System

General

The wastewater facilities of the Utility System include a wastewater treatment plant (WWTP), approximately 85 miles of gravity sewer lines, 52 lift stations, 35 miles of force main and 7.9 miles of reuse or effluent force mains.

Wastewater Treatment; Effluent Disposal; Wastewater and Transmission Facilities
The Wastewater Treatment. Plant operates under Florida Department of Environmental Protection (FDEP) operating permit number FLA014565. The permitted capacity on an annual average daily flow (AADF) basis is 2.1 MGD. The annual average daily flow to the facility, as of September 30, 2004, was 2.198 MGD AADF. Treated effluent from the facility is permitted to discharge to a 1.020 mgd AADF slow-rate public access reclaimed water irrigation system consisting of three golf courses and a 1 480 mgd on site evaporation/percolation pond. The Lehigh Acres Wastewater Treatment Plant served 9,883 connections as of May 31, 2005 (Build out estimated at 128,000 lots).

Wastewater System Regulatory Compliance
FDEP has recently considered issuing a draft consent order based upon effluent disposal concerns originally initiated with the previous owner of the facility, Florida Water Services. A consent order originally proposed to FWS required repairs and corrective actions to the percolation/evaporation ponds and full compliance with FDEP regulations by May 1, 2003. The repairs were completed and compliance with the scheduled date was achieved The consent order was closed on March 31, 2003, however, the consent order contained the following additional requirement concerning the ponds: “In the event that any discharge occurs from the percolation/evaporation ponds after May 1, 2003 the respondent shall within thirty (30): days submit an application to the Department for a Class I injection well shall be prepared and sealed by a professional engineer registered in the State of Florida. In the event the application is incomplete, within thirty (30) days of receipt of a request for additional information to complete the application, Respondent shall ensure that the information is submitted. Within three hundred sixty (360) days from issuance of the permit for the Class I injection well, Respondent shall complete the construction of the Class l injection well as authorized by the permit. Within thirty (30) days of completion of the Class 1 injection well as authorized by the construction permit, Respondent shall submit the appropriate Certification of Completion of Construction signed and sealed by the project engineer. If the Respondent is unable or unwilling to construct a Class I injection well as provided in this paragraph, the Department reserves the right to seek other relief to require the Respondent to comply with its rules and permits.”
By a letter dated March 31, 2003 FDEP notified Florida Water Services, Inc. that all of the conditions of the consent order were satisfactorily completed and that the case would be closed and put in the inactive file. Closing the case eliminated the condition cited above.

However, the ponds overflowed again, discharging treated wastewater effluent to adjacent canal from the site’s percolation ponds on September 6, 13 and 17, 2003. The un-permitted discharge from the percolation ponds was after significant abnormal rainfall during August and September 2003 (including two tropical storms). On November 17, 2003, the FDEP issued a draft consent order to Florida Water Services, Inc. The draft consent order would require Florida Water Services (and the FGUA upon acquisition of the Utility System) to modify the plant’s disposal system in such a way as to eliminate the discharge from the percolation/evaporation pond and develop a plan to reduce inflow and infiltration into the plant within one year by 50 percent. While it is expected that the consent order negotiations may extend for several months, the FGUA has already addressed both items. Additionally, the FGUA can apply for a limited wet weather discharge, to address abnormal rainfall events such as occurred in August and September 2003 and again in August of 2004. The impact of this permitting solution alternative may result in a reduction in capital improvement funding than currently budgeted.

The FDEP wastewater-operating permit expired on December 17, 2003 and was renewed. The permit contained several key dates requiring certain actions of the Authority to address the Department’s concerns. FDEP did not reintroduce the condition described in the 2002 consent order for a deep well during the permit renewal process, although it could reintroduced as part of the proposed draft consent order.

News that FGUA forget to tell its customers

2005-09-22T10:01:00.000-05:00

Lehigh Acres Watchdog, Inc

News that FGUA forget to tell its customers

Lehigh Acres water and sewer customers will soon see regular rate increases,
despite earlier assurances that such rate increases had been capped until 2007.

Under the new plan, residential and commercial customers in Lehigh Acres will see automatic,
“cost of living” adjustments of 2.6% beginning Oct 1, 2005 and continuing until 2010.

2005 FGUA Board Meeting Schedule

2005-09-20T19:47:00.000-05:00

Lehigh Acres -- You know have a chance to speak out ---------

October 21st 10:00 a.m. - 1:00 p.m.
Lee County East Regional Library, Meeting Room 1881 Gunnery RoadLehigh Acres, FL 33971

November 18th 10:00 a.m. - 1:00 p.m.
Golden Gate Community Center,Room C4701 Golden Gate ParkwayNaples, FL 34116-5901

December 16th 10:00 a.m. - 1:00 p.m.
Poinciana Community Center395 Marigold AvenueMain AuditoriumKissimmee, FL 34759-4033

Possible conflict of interest with US Water / Wade Trim and GSG ----------

2005-09-20T15:38:00.000-05:00

From Bob Monette OPTECH --- FGUA have chosen to ignore the obvious conflict of interest which exists between your Executive Director, Mr. Robert Sheets and the selected firm US Water/Wade Trim. We understood in June that Mr. Sheets and his firm, GSG, have worked as a consultant on behalf of Wade Trim within the past twenty-four months.

Robert Sheets response ---The board of FGUA is aware that GSG prepared a Revenue Manual for Wade Trim to use with its clients in the State of Michigan two years ago. GSG was compensated for its work and has had no contractual relationships with Wade Trim in any proposal or other state since then.

FGUA is proposing to award this major contract to a firm that has priced their service over $ 21,000,000 million dollars higher than the lowest cost proposal of $ 58,000,000. The companies were each clearly told to give our most competitive price with our Proposal. You should not give them “high grades” for all their “promised services”, only to then let them bring their cost down to our price model after the selection. Their price is 36% higher than FUGA’s price for the project. You cannot possibly negotiate down from this price without a SIGNIFICANT reduction in customer service.

Request for Proposals for Utility Operations, Maintenance, Customer Service, and Billing

2005-09-19T19:40:00.000-05:00

This RFP was reissued on July 22, 2005.

The procurement schedule is as follows: July 22, 2005 Issue RPF

August 5, 2005 Mandatory Pre-Bid Conference, 10:00 AM (Protegrity Plaza, Sweetwater Training Room, 280 Wekiva Springs Rd, Longwood FL 32779)

August 8-12, 2005 Mandatory On-Site Inspections

August 12, 2005 Last Day to Submit Written Questions

August 16, 2005 Last day the FGUA can issue addendums

August 23, 2005 Proposals due

September 15, 2005 Submittal of Recommendation to the FGUA Board

September 19, 2005 Commence contract negotiations

October 21, 2005 Submit Operations Agreements to the FGUA Board for approval

Oct. 24 – Dec. 5, 2005 Transition period (if required)

Dec. 5, 2005 Commencement date of the Operations Agreements

Request for Proposals for Utility Operations, Maintenance, Customer Service, and Billing
Proposal Ranking
The Request for Proposal (RFP) Evaluation Committee met at the Sweetwater Training Room, Protegrity Plaza, 280 Wechiva Springs Road, Longwood, FL 32779 at 9:00 a.m. on September 7, 2005.

At this meeting they heard oral presentations from the three proposing firms on the Request for Proposals for Utility Operations, Maintenance, Customer Service, and Billing for the Water and Wastewater Systems of the Florida Governmental Utility Authority, issued July 22, 2005.

Upon completion of the oral presentations, the Evaluation Committee ranked the proposals based on the Technical, Business Management, and Financial and Oral Presentation criteria as provided for in the RFP.

This ranking will be presented to the FGUA Board of Directors at their meeting on September 15, 2005 at 9:00 a.m. in the Citrus County Administration Building, Board Room 100, 110 North Apopka Avenue, Inverness, FL 34450 for consideration and final approval to open contract negotiations.

The order of ranking by the Evaluation Committee was as follows:

1. U.S. Water/ Wade Trim Joint Venture
2. Severn Trent Environmental Services
3. Southwest Water/OPTECH

David Orr of Government Services Group, the FGUA'S consultant

2005-09-19T18:08:00.000-05:00

for Lehigh's sewer and water system, addressed a number of issues regarding the sewage treatment plant.

He said construction has begun on a project that will expand the plant's capacity from 2.5 to 3.5 million gallons by next year. Orr said this expansion should alleviate any existing problems with treated sewage leaks."Our goal and our focus is to rectify this situation," he said.

Resident Robert Anderson questioned whether this expansion would be sufficient to handle the community's continued growth.

Orr assured him that the Florida Department of Environmental Protection will not allow new developments to connect to the system unless the necessary capacity is available.

Source -- on July 20, 2005 Newstar

FGUA Issues Bonds for more improvements

2005-09-19T15:21:00.000-05:00

FGUA Board on Sept 15, 2005 approved the budget for FY 2006 and will issue 25 Million dollars of improvement bonds for Lehigh Acres ---

Will the County be able to purchased since the price will increase by 25 million dollars ????

County asks utility to halt expansion

2005-09-19T15:03:00.000-05:00

Commissioners want to buy system

Utility officials are proposing a $56,335,000 expansion project in Lehigh Acres, including lines to 4,100 more lots, more capacity at the sewage treatment plant and a new water treatment plant.

But Lee County Commissioners are asking the Florida Governmental Utility Authority to hold off on those plans to give the county time to purchase the system and make its own expansion plans.

County Commissioner John Albion

said he hopes the county can purchase Lehigh's utility system before the improvement projects get under way.

Ratepayer Alert --------

2005-09-19T14:31:00.000-05:00

Ratepayer alert: The corrupted FGUA picks as new operations manager a company that came in with the highest bid by $16 million. Curiously, Citrus County Admistrator Richard Wesch will represent the shady FGUA and negotiate the final contract with the chosen company...

For the --

McIntosh Report dot Com

Water bid comes with higher price tag

2005-09-19T13:56:00.000-05:00

The companies picked to operate water services in Citrus and three other counties propose a budget $15.3-million higher than the current operator's proposal.

By CATHERINE E. SHOICHET Published September 16, 2005 St Pete Times

INVERNESS - The Florida Governmental Utility Authority has used the same company to handle its operations since it took over Florida Water's systems in Citrus County nearly two years ago.

But when Severn Trent's contract with FGUA expires in December, those systems will likely change hands.

That means FGUA customers in Citrus will deal with different people for billing, maintenance and customer service. At a meeting of the FGUA governing board Thursday, several people asked whether the change also means customers will have to pay a higher price.

An FGUA evaluation committee has selected the joint venture of U.S. Water and Wade Trim to manage its 26 systems in four Florida counties - even though its proposed budget is $15.3-million more than the budget Severn Trent submitted.

FGUA systems manager Robert Sheets said the budget proposals made up just 30 percent of the factors committee members considered. More important, he said, were proposals for business management and technical and customer services issues. He emphasized that rates will not increase when the systems management changes.

"I struggle to think how you're going to do that with those numbers," Joe Graziose, Severn Trent's vice president of services, told the board.

Graziose said he was not happy that FGUA had ranked his company second out of the three proposals submitted.

The third company, Southwest Water/OPTECH, withdrew from the process after being ranked last. Last week, Optech president Robert Monette sent an e-mail criticizing the selection process, saying FGUA officials had "chosen to ignore the most responsible pricing for this contract."

His company's proposed five-year budget was $48.7-million. Severn Trent proposed $50.8-million. And Wade-Trim and U.S. Water proposed $66.2-million.

But FGUA officials say those numbers are not set in stone and will serve only as a jumping off point for negotiations.

County Administrator Richard Wesch, who will help negotiate the new FGUA systems management contract, said he was worried customers' costs would increase under the plan Wade Trim and U.S. Water originally proposed.

"I'm extremely concerned about going forward," he said.

Wesch and other FGUA negotiators will have 10 days to hammer out a contract with Wade Trim and U.S. Water. If they can't reach an agreement, FGUA will negotiate a new contract with Severn Trent.

In Citrus County, FGUA services about 11,300 water customers and 5,215 wastewater customers on 11 different systems.

At Thursday's meeting, the FGUA board also approved its 2006 budget, which includes $20.8-million in capital improvements for its Citrus systems.

During the meeting's public comment period, Bob Bennett, chairman of the Pine Ridge Civic Association's water committee, said FGUA officials should focus less on profit and more on improved services.

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

STOP FGUA

2005-09-17T09:41:00.000-05:00

FGUA has issued 25 million dollars of more debt for the citizens of Lehigh Acres
&
7.5 million dollars of special assessment bonds for Woodridge Preserve

In FGUA 2006 approved budget has the following items

New Mirror Lakes Water Treatment Plant 2.5 Million dollars
Reuse Pipeline Expansion 2 Million dollars
Wastewater Collection System Improvements 1 Million dollars
Homestead Force Main Installation 844 Thousand dollars
&
6.6 Million dollars for a Deep Well Injection Plant

BUT THE WORSE OF IT ALL IS
Mr. Robert Sheets &
Government Services Group

Receives per contract a 3 to 4.5 % management fee on all projects

This means Government Services Group
for the fiscal year 2006 will receive

$ 985,000 of your bonded money

Also Government Services Group Bonding Company will
receive a 3% fee for issuing the bonds for the 2005
which equals to –

On the 25 million 2005 revenue bonds – GSG received $750,000
On the 7.5 million 2005 special assessment bonds -- GSG received $225,000

GSG and their other companies will receive 1.96 Million dollars in fees alone this year WHY?????

These fees above does not include yearly operations contract amount that Government Services Group charges FGUA

We told the FGUA board what you think...

2005-09-16T21:14:00.000-05:00

Last Thursday [15 september] Jim Fleming, Robert Anderson, and I drove to Inverness to deliver your comments to the FGUA board.

Here's the press release of our road trip: Lehigh Residents Robert Anderson, Jim Fleming, & Mike Welch Comment at FGUA Board Meeting in Citrus County

Inverness, Florida, September 15, 2005:

Lehigh Acres residents and civic activists, Robert Anderson, Jim Fleming and Mike Welch, traveled to Citrus County today to participate at a meeting of the Board of Directors of Florida Government Utilities Authority, (FGUA). The meeting concerned the governmental group's budget, pending contracts, and their aggressive expansion plans for their system in Lehigh Acres and communities in four other Florida counties.

At the meeting the three Lehigh residents heard new information, about planned and budgeted projects in Lehigh Acres. Among the most significant items were: the almost immediate expansion of water and sewer service to 414 lots in Woodridge Preserve at the estimated cost of $9,420 per lot that's over $500.00 and to your yearly tax bill; the imminent construction of a deep well injection system for the disposal of local wastewater, and the 12" interconnect water line running along Lee Boulevard and linking up with the system owned by the City of Ft. Myers at the cost of 1.2 million dollars.

Jim Fleming, a member of the Lehigh Acres Community Planning Corporation, and a Supervisor of the East County Water Control District questioned the FGUA Board on their policy of issuing letters of capacity to local developers in Lehigh in light of evidence that their local plant is already overwhelmed by the growing number of hookups and rainwater infiltration. FGUA and Government Services Group staff members said that they had not issued letters of capacity to anyone for the last six months, and hinted that they would not issue and more such letters until the problems were fixed and their plant capacity was increased.

Mr. Fleming also asked if the Board intended to abide by the Lee County Commissioners' request that FGUA stop incurring further bonded indebtedness until the county government had negotiated for the purchase of the Lehigh Acres water and sewer system. The Board refused to answer the question, but did announce that they were in negotiations with Lee County, and that Lee County government had accepted the interlocal agreement to join FGUA, with county utilities director, Rick Diaz serving as a member of their board.

Mike Welch, president of Citizens United Against FGUA, then took the podium and repeated the often raised question of why FGUA was planning to embark on such an ambitious and expensive expansion plan in Lehigh Acres without providing scientific data that establishes an environmental, or any other, need for the massive project. No one from FGUA could answer.

Mr. Welch strongly emphasized that FGUA's grand project would damage the community as a whole, as the many citizens who could not afford the 10,000 to 17000$ tax assessments against their homes. Welch challenged the FGUA to include the people of Lehigh Acres in the decsion-making process in an effort to address the issues of Lehigh's sudden and rapid growth in a way that benefits everyone.

Robert Anderson, the president of the Lehigh Acres Watchdog civic group repeated those themes, and chastised the FGUA and its contractors for poor service and dangerous disregard for the health, safety and welfare of the community.

Mr. Anderson pointed out that the system operator, Severn Trent, had allowed treated effluent to flow into the Lehigh Acres canal system for 43 days, and ignored a potable waterline break for ten weeks, stating that the operators had more important priorities, like repairing the overburdened sewer plant.

Among the revelations at the meeting was the fact that Lehigh Acres water and sewer customers will soon see regular rate increases, despite earlier assurances that such rate increases had been capped until 2007.Under the new plan, residential and commercial customers in Lehigh Acres will see automatic, "cost of living" adjustments of 2.6% beginning this year, and continuing until 2010.

Mr. Anderson pointed out that the interconnect system with the City of Ft. Myers was originally slated for emergency use only, but FGUA reported at the meeting that the interconnect would also be used to address a "temporary" shortfall in water supplies in the local FGUA system. This should alarm Lehigh Acres customers, since the planned construction of the Mirror Lakes water treatment plant is not slated for completion until 2008 at the earliest.

In response to requests by Mr. Anderson, the FGUA Board's next meeting will be held on October 21, 2005, beginning at 10:00 AM at the East County Regional Library on Gunnery Road in Lehigh Acres.

Mr. Welch, on behalf of the concerned citizens of Lehigh Acres, urges all residents to attend to express their opinions of FGUA's services and its planned expansion, which will affect thousands of Lehigh Acres residents for years to come.

ECWCD Press Release ---- on discharge

2005-09-08T14:16:00.000-05:00

** PRESS RELEASE **

The East County Water Control District is issuing a statement to the public that there has been treated reclaimed water discharged from the Florida Governmental Utilities Authority's (FGUA) Wastewater Plant into its canal system.

The FGUA will be correcting this problem by building a deep well injection system. This could take a few years. East County Water Control District is recommending that citizens do not eat fish that are caught in Lehigh Acres in the Able Canal west of the Williams Street bridge, nor in Hickey's Creek Canal or in Canal 47-30-3, (just west of the Lehigh Regional Medical Center), until further notice or until the deep well injection system is completed.

The East County Water Control District's canals are not classified as recreational and swimming is never permitted. Please call the FGUA at 368-1615 or the East County Water Control District at 368-0044 for more details.

The Effluent from FGUA is getting deeper

2005-09-01T15:38:00.000-05:00

The Effluent from FGUA is getting deeper

An Op-Ed by Jim Fleming

I don't know which is worse, the treated effluent that is being dumped into Lehigh's canals, or the other "treated effluent" that is emanating from Florida Government Utilities Authority's public relations department, but they both stink.

Last week FGUA's systems manager, Robert Sheets, released a repetitive and flowery deodorizer that was disguised as an editorial in the News-Press and the local newspapers.

In his cover-up, Mr. Sheets focused the readers' attention on two themes that I would like to vigorously refute:

1. "A small group of people have tried to advance the idea that FGUA has created and plans to impose new fees and charges for water and sewer services in Lehigh Acres."

The "small group" that Mr. Sheets is referring to consists of myself, Mike Welch, Robert Anderson, Frank LaRosa, Frank Lohlein, David Adams, the local media, the entire board of the East County Water Control District, the entire board of the Lehigh Acres Community Planning Corporation (with the exception of FGUA Board designee, Charlie DeFelice), and the vast majority of the informed citizens of Lehigh Acres.

With clever misdirection, and half truths, what Mr. Sheets really said was that FGUA isn't planning to raise rates for the existing, unfortunate FGUA customers who are already paying the highest water and sewer rates in the state of Florida.

No, we are apparently being spared at the expense of all the other property owners in Lehigh Acres. To Mr. Sheets and the FGUA spin doctors, the planned $17,500 assessments for Lehigh Acres residents who are not current customers are not "fees," so we shouldn't keep calling them that. Shame on us. And shame on you Mr. Sheets, a fee, by any other name, is still a fee.

2. "New growth should pay for itself,"

Allow me to again interpret what Mr. Sheets is really saying. FGUA wants property owners who are not hooked up to their system to pay huge assessments whether they like it or not, or whether they need it or not. When he answered the question of why FGUA was doing this, his terse reply was: "Because we can."

Growth paying for growth is a noble sounding ideal, and you've heard me say that myself hundreds of times in forums and my editorials. But that's not what Mr. Sheets means.

Even if you've owned your home or your vacant homesite in Lehigh Acres for over 40 years, and even if you don't want the service, you'll pay for it, or FGUA will slap a lien on your property.

Mr. Sheets, how does assessing a home that has been here for decades fall under your definition of "New growth paying for itself?"

The fact is FGUA is targeting areas for expansion where the population and the homes are among the oldest and most established in Lehigh Acres.

These aren't newcomers Mr. Sheets, and you know it. Many of these people are on fixed incomes and simply cannot afford your oppressive and expensive expansion plans.

What is disturbing about your organization, Mr. Sheets, is that you are not leveling with us. That's why government and the citizens of Citrus County are ready to run you out of town on a rail, and that same sentiment is building here.

Here in Lee County you keep certifying that you have the plant capacity for all these new residential subdivisions that the county is approving. But the fact is you're so far over capacity that you're dumping effluent into our canals.

You are part of the problem in Lehigh Acres, Mr. Sheets, not part of the solution.

Armed with FGUA's phony assurances about having enough water and sewer capacity, the county government is rezoning more of our precious open land for high density residential developments, and you're helping them do it.

What the Lee County planners don't know, or won't admit, is that your 2.5 million gallon a day facility in Lehigh is actually trying to process 3.5 million gallons of wastewater a day in the summer months, largely because of massive overdevelopment and rainwater infiltration. That's right, my wife and I, and your other customers are paying you outrageous rates to treat rainwater!

Your answer to the problem is to obfuscate the issues and dump the excess treated effluent into our canals without telling us. That illegal dumping is prohibited, of course, and you're about to be fined heavily for it. The trouble is, you'll just pass those fines along to us in the form of more "fees."

Yes, Mr. Sheets, "Community support has to be based on the facts." Try giving us the real facts for a change.

And if you were really trying to gain community support, why did you allow a broken potable waterline in Lehigh to run for 10 weeks without fixing it? Why did you send a water and sewer bill of $235 to a widow, who lives in a one bedroom apartment without checking it? And why do you keep insisting that there are only a few malcontents in Lehigh Acres who are stirring up all the trouble?

Trust me, Mr. Sheets, just like the people in other communities that you "serve," the citizens of this community speak with one voice when we tell you that we have no faith in you, your company, your promises or your assurances. And we will not be forced to swallow your "fees" or "assessments," or whatever you choose to call them, without a fight.

Sincerely,

Jim Fleming
Vice Chairman of the East County Water Control District
Founding Chairman of the Lehigh Acres Community Planning Corporation
Founding Co-Chairman of the Lehigh Acres Community Redevelopment Agency

Lehigh Acres, Florida

Get on your phone Commissioners say no to private utilities

2005-08-09T15:26:00.000-05:00

By CHARLIE WHITEHEAD, ckwhitehead@naplesnews.com

Monday, August 8, 2005

Lee County is saying thanks but no thanks to four different private utilities looking to hand over their plants to county control, at least for now.
Commissioners said this week that Utilities Director Rick Diaz and County Attorney David Owen can bring them formal offers from the utility owners. The only thing they're buying right now, though, they said, is Diaz and Owen's advice not to make the deals.

That's a reversal from the county's mindset of the late 1990s, when the county bought a handful of private utilities, including Gulf Utilities in San Carlos Park. Commissioners were stressing regional drinking water and central sewage treatment as more environmentally friendly than a collection of smaller private utilities, but the effort ran into scandal in 2000 when auditors claimed prices paid by the county were inflated by third-party brokers and that the county wasn't properly managing the contracts.

Investigations by local and federal law enforcement produced no charges, though three county department heads were sent packing. Commissioners also abandoned a privatization effort that allowed private companies to operate county-owned utilities, even suing the former operator for supposedly neglecting the system to the point it needed millions of dollars in work.

Commissioner Ray Judah said his philosophy of eliminating smaller operators in favor of a central system hasn't changed.

"At this point in time there's a definite need to use the utmost prudence and assure that if we do buy it, it's at the most favorable rate," he said. "I believe in due time we will see that."

Judah noted each of four utilities the small Tamiami Village and Forest utilities and the larger North Fort Myers Utilities and the Florida Governmental Utility Authority's Lehigh Acres system are facing various stages of difficulty.

County reports indicate the Lehigh plant will process almost 2.4 million gallons of sewage daily this year in a plant designed for 2.5 million. The North Fort Myers utility will process 1.95 million gallons daily at a plant designed for 2 million.

The county is considering rejoining the Florida Governmental Utility Authority, an agency that exists to purchase private utilities and act as holding company until a government utility takes over. The FGUA is currently running the Lehigh Acres utility.

"They're facing the same dilemma that anybody else would be because of the growth in Lehigh," said county Public Works Director Jim Lavender. "Everybody knows it's just a ticking time bomb."

Growth continues in areas not served by central water and sewer, Lavender said, and the county continues to lead Florida and the country in the number of septic tank permits issued.

"That's not what we want," Lavender said. "Hopefully nobody will become ill, but you can't continue to put your septic tank and your well on the same lot forever."

One of the problems with taking over the utilities is county employees are still cleaning up problems from when the previous purchases were made and operations were taken back in-house, Lavender said.

"With the mess we inherited we're just starting to get our heads above water," he said. "We only have so much capacity to do things, and that's the reality from my point of view. It takes horsepower and it takes capacity and it takes people."

Commissioner Tammy Hall was elected in 2004, so she missed the 2000 utilities scandal. She said the utility owners might not be offering the right deals right now, but the county has to look realistically at a future that includes continued rapid growth in areas with troubled utilities.

"We are getting growth in areas where utilities private utilities aren't ready for it yet," she said. "We have to sit back and take a realistic look at the future. Lee County's No. 1 in septic tanks right now and we have to do something."

New water line fees on the agenda

2005-08-07T09:33:00.000-05:00

New water line fees on the agenda; [STATE Edition]
CATHERINE E. SHOICHET. St. Petersburg Times. St. Petersburg, Fla.: Jul 31, 2005. pg. 3
Abstract (Document Summary)
The FGUA has proposed a line extension fee of $2,082 for residents in Citrus Springs who requested service after June 24. Those owners also can elect to pay the fee as a $268.93 annual tax for 30 years.

The FGUA also has proposed a line maintenance fee for some vacant lot owners in Citrus Springs and Pine Ridge.

On Friday afternoon, attorneys representing property owners in Pine Ridge and Citrus Springs filed a written request with the Water and Wastewater Authority asking it to postpone its review in order to give customers and county officials time to thoroughly pore over the FGUA's complicated proposal.

Full Text (618 words)
Copyright Times Publishing Co. Jul 31, 2005
Notices of new water line fees in Citrus Springs and Pine Ridge drew harsh criticism from residents and officials earlier this month.

On Monday, a county regulatory board will meet to review the proposed fees.

The five-member Water and Wastewater Authority will meet at 1 p.m. in Room 166 of the Lecanto Government Building, 3600 W Sovereign Path.

In the public meeting, the board will consider:

whether line construction proposed by the Florida Governmental Utility Authority is appropriate

whether the estimated costs for the proposed line extensions are supported by sufficient evidence

whether the proposed fees are fair and reasonable

which lots, if any, in Citrus Springs should be assessed for line extensions

which lots, if any, in Pine Ridge and Citrus Springs should be assessed for line maintenance fees

Earlier this month, the Florida Governmental Utility Authority presented new line extension and maintenance fees for property owners in Citrus Springs and Pine Ridge.

The FGUA has proposed a line extension fee of $2,082 for residents in Citrus Springs who requested service after June 24. Those owners also can elect to pay the fee as a $268.93 annual tax for 30 years.

FGUA officials say that money will pay for the construction of about 36.5 miles of water distribution pipes and "make growth pay for itself."

Under the original proposal, Pine Ridge residents would have paid a $6,571 fee, but that was dropped after the FGUA learned from a developer that more than 100 lots didn't need a proposed pipeline.

The FGUA also has proposed a line maintenance fee for some vacant lot owners in Citrus Springs and Pine Ridge.

The FGUA is an independent government entity that enables some Florida counties, including Citrus, to team resources and provide water and wastewater to residents.

The authority was created in 1999. It acquired the Citrus Springs and Pine Ridge water systems in 2003, pledging to keep water rates stable for five years.

Critics have said the new fees might violate that promise. And the County Commission has asked county staff to look into a buyout of Citrus utilities now under FGUA.

Robert Sheets, systems manager for the FGUA, said the new line construction and fees are fair - and necessary.

"Growth is happening now. It's not happening tomorrow," he said. "So we have to come up with a long-term, permanent solution to deal with it now."

Sheets said he was looking forward to presenting the FGUA's plans at Monday's meeting.

"We'll make sure that the public has plenty of input and just work through the issues one by one," said Michael Smallridge, chairman of the Water and Wastewater Authority.

On Friday afternoon, attorneys representing property owners in Pine Ridge and Citrus Springs filed a written request with the Water and Wastewater Authority asking it to postpone its review in order to give customers and county officials time to thoroughly pore over the FGUA's complicated proposal.

"It's not fair to have a $10-million hearing with 10 days notice and no time to prepare," said Tallahassee attorney Mike Twomey, a lawyer who represents the Pine Ridge Property Owners Association.

The Water and Wastewater Authority will consider the postponement request at Monday's meeting.

The board could also meet again at 8:30 Tuesday and Wednesday mornings if additional time to discuss the issue is needed.

The FGUA initially was scheduled to vote on the new fees at a July 15 board meeting. But they postponed that vote after residents and officials criticized the plan at several public meetings.

FGUA's three-member board has scheduled a public hearing and vote on the proposed fees for its next board meeting at 10 a.m. Aug. 19.

Contact List

2005-07-27T08:49:00.000-05:00

This are the names, address, and phone numbers of elected officials and
news papers to contact about your feelings on incorporation or any other
CAIT projects or complaints the public might have.

THE MORE YOU CONTACT THEM, THE MORE THEY WILL LISTEN

State Representative Bruce Kyle Dist.73 Lehigh Rep.
Phone: 335-2411
Fax: 433-6773
2120 Main Street Suite 208
Fort Myers, Florida 33901-3010
Email: Bruce.Kyle@My Florida House.Gov

State Senator Dave Aronberg Dist. 27 Lehigh Rep.
Phone: 479-8201
Fax: 338-2648
2120 Main Street Suite 209
Fort Myers, Florida 33901-3010
Email: Dave@Dave Aronberg.com

State Senator Mike Bennett Dist. 21
Phone: 1-800-500-1239 or 1-941-727-6349
Fax: 1-941-727-6352
3653 Cortez Road West Suite 90
Brandenton, Florida 34210
Email: Bennett.Mike.Web@FL Senate.Gov

Representative Paige Kreegel Dist. 72 Lehigh Rep.
Phone: 1 941 575 5820
Fax: 1 941-575 5822
410Taylor St.
Punta Gorda, FL. 33950
EMail: Paige.Kreegel@myfloridahouse.Gov

Representative Jeff Kottkamp Dist. 74
Phone: 344-4900
Fax: 344-4901
3501Del Prado Blvd. Suite 305
Cape Coral, Florida 33904
Email: Jeff.Kottkamp@ My Florida House.Gov

Senator Burt L. Saunders Dist.37
Phone: 239-417-6220
Fax: 239-417-6223
3301 East Tamiami Trail
Naples, Florida 34112
Email: Saunders.Burt.Web@Flsenate.Gov

Representative Trudi Williams Dist.75
Phone: 239 433 6775
Fax: 239 278 0922
5621 Banner Dr. Ft. Myers, FL.33912
EMail: Trudi.Williams@myfloridahouse.Gov

Representative Michael Grant Dist. 71
Phone: temp. 941-575-5820 (Kreegels office)
941 743 2033---850 488 0060
P O Box 494397 Pt. Charlotte, FL.33949
EMail: Michael.Grant@myfloridahouse.Gov

County Commissioner District 5 John Albion Lehigh Rep.
Phone: 335-2225
Fax: 335-2892
2120 Main Street
Fort Myers, Florida 33901
Email: Dist5@Lee Gov.Com

ALL other county COMMISSIONERS
DIST.1-2-3-4- @leegov..com
Same addresses as dist 5
Judah,Hall, St. Cerny, Janes

News-Press
Phone: 335-0362
Fax: Martha Hill Mailbag 334-0708

LEHIGH CITIZEN
Fax: 368-2775
25 Homestead Road North Suite 53
Lehigh Acres, Florida 33936 editor mel toadvine
Email: Citizen936@hotmail.com.com

Lehigh Acres News-Star owned by the ft myers newspress
Phone: 369-2191
Fax: 369-1396
1280 Lee Blvd.
Lehigh Acres, Florida 33936
Email: MHudson@ LehighNewsstar.com

Call In Talk Radio

Wink 1240 AM
Day Break Southwest Florida
6:00 a.m. - 10:00 a.m.
479-5540 Phone

Wink 1240 AM
3:00 p.m - 6:00 p.m.
479-5540 Phone

Televison:

Wink T.V. (CBS)
Phone: 344-1131 or 337-2346
Fax: 338-4383

WBBH (NBC) & WZVN (ABC)
Phone: 939-2020 or News Desk 936-6458
Fax: 939-3244 or 939 2152

WFTX (Fox 4)
Phone: 574 3638
For interviews, ask for assignments desk.
wdaltry@leegov.com wayne daltry planning board

collinsd@leegov.com Donna Collins county atty..

banyanm@comcast.net M Banyan Facilitator

michael.conrad@dca.state.fl.us M. Conrad & copy to Bernard Prawah dept. community affairs phone 1877 352 3222

jeb@myflorida.com Gov. Jeb Bush fax 1 850 487 0801 phone 1 850 488 4441 jmudd@leegov.com county planner Jim Mudd phone 479 8180

oconnops@leegov.com county planner Paul Oconner

jstclair@lehighnewsstar.com News star reporter Justin St Clair

Bo@accentbp.com Bo Turberville, Chairmain of the lehigh acres community planning corp. address all correspondence to him and ask to have it copied to all board members (its The Law) also copy to the board secretary Parotdise@earthlink.com

State Atty. Steve Russell email : state attorney@ sao.cjis20.org fax: 335 2787 phone: 335 2700

Attorney General Charlie Crist fax 850 410 1630 phone citizens services !850 414 3990 office 1 850 414 3300 no email address available?

Florida Commission on ETHICS phone 1 850 488 7864 fax 850 488 3077 Bonnie Williams Exec. Director

Civil Rights Commission phone 1 800 552 6843

Lee County Elections www. Leevote@gate .net

State Division elections http://www.DivElections@dos.state.fl.us/

President George Bush phone 1 202 456 2461 email: President@Whitehouse.gov

Associated press phone 1 305 594 9265

Need outweighs opposition on Sugarmill Woods center

2005-07-26T13:05:00.000-05:00

Exert from -----

Need outweighs opposition on Sugarmill Woods center

© St. Petersburg Times
published January 10, 2003
--------------------------------------------------------------------------------

Editor: As many Sugarmill Woods homeowners know, there is a great deal of support in the combined communities of Sugarmill Woods for a community center. A center would give the community a focal point to conduct business and social activities. Game, conference and meeting rooms, an auditorium for entertainment, dining, and intellectual and political gatherings and a fitness center are all planned.

There are a few citizens who are adamantly opposed to the center because it would increase annual assessments (estimated to be less than $50 per year per lot), because they wouldn't use its facilities and because we don't need it.

Ask yourselves if these are truly legitimate reasons or just very limited views of a small vocal minority. They either forget or don't care that we are the largest development without a community center in the whole of Citrus County; that our citizenry makeup is getting younger and more active; and that a center would lend new dimensions to our property values and to our lives at Sugarmill Woods.

Some of this minority are the same ones who cost our community hundreds of thousands of dollars because the center was not built when costs were lower. If Sugarmill Woods residents really want a place to call their communal home, they should forget the naysayers and actively support the drive for a community center.
-- Roger W. Johnson, Sugarmill Woods

County avoids utility headache

2005-07-26T11:20:00.000-05:00

Exert from ------

County avoids utility headache Series: COLUMN; [STATE Edition]
JEFF WEBB. St. Petersburg Times. St. Petersburg, Fla.: Jul 20, 2005. pg. 2
Abstract (Document Summary)

Joining the FGUA would have been a mistake for a number of reasons. First, the consortium, which issues bonds to buy private utilities and then sells them back to governments, had a huge self- interest. Counties do not profit, but the lawyers rake in plenty by acting as bond counsel, which means they make money when the FGUA issues the bonds and for acquisition fees. In the deal that was on the table back in 2001, FGUA lawyers stood to pocket almost $4- million.

Neighboring Citrus County joined the FGUA and the organization bought several privately run utilities there, including Florida Water in 2003. The Citrus County Commission was told it would be involved in any rate-setting decisions, and that no increases would be proposed for five years.

That angered Citrus County commissioners, so FGUA officials backtracked and withdrew most of the assessments. But that misstep, coupled with the FGUA's initial refusal to work with the county on setting rates, has some commissioners up there threatening to buy the utility systems and kick the FGUA to the curb. They're also thinking about replacing their representative on the FGUA, Richard Wesch, who just happens to be their county administrator and once was the assistant county attorney. He, too, lobbied hard on behalf of the FGUA.

Full Text (702 words)
Copyright Times Publishing Co. Jul 20, 2005

Hernando County commissioners and many of their top staff members will tell you that purchasing the sewer and water utility in Spring Hill from Florida Water Services was one of the most farsighted achievements in county government's history.

That agreement was finalized in 2004, but the let's-make-a-deal dance dragged on for three years before.

Granted, taking over the utility was a bold move. The county - make that taxpayers - paid $36-million for it ($81-million with interest on the 30-year bonds), and millions more will be spent upgrading, expanding and maintaining the system's pipes, wells and treatment plants to accommodate the increase in users. But if all goes according to plans, customers should be better off because the County Commission will have full control over the rates and the quality of service. It eliminates the profit-making middleman and makes the commission more accountable.

But before the commissioners decided that the direct purchase of Florida Water was their top priority, they almost bought into a deal - make that "were almost sold a bill of goods" - by the Florida Governmental Utility Authority.

What's more, they almost did so on the advice of former county administrator Paul McIntosh and current County Attorney Garth Coller, who met secretly with utility authority officials and updated commissioners individually, shutting out the public from the process. They called it their "game plan" to protect the county's water.

Their "game," played in private and plagued by controversy, cost them and the commission credibility, and it almost cost taxpayers more money than it should have.

Joining the FGUA would have been a mistake for a number of reasons. First, the consortium, which issues bonds to buy private utilities and then sells them back to governments, had a huge self- interest. Counties do not profit, but the lawyers rake in plenty by acting as bond counsel, which means they make money when the FGUA issues the bonds and for acquisition fees. In the deal that was on the table back in 2001, FGUA lawyers stood to pocket almost $4- million.

Second, only four of Florida's 67 counties were members of the FGUA. The organization had never tackled a project as big as the purchase of Florida Water, which owned and operated about 150 water and sewer systems in 27 counties. It served about 33,000 customers in Spring Hill.

Commissioners, despite the advice they received from McIntosh and Coller, eventually rejected the FGUA's overtures and decided to pursue a deal on their own. It was a wise move, although some critics still argue that the county paid too much for the utility.

But now those commissioners have a new reason to pat themselves on the back for their good judgment.

Neighboring Citrus County joined the FGUA and the organization bought several privately run utilities there, including Florida Water in 2003. The Citrus County Commission was told it would be involved in any rate-setting decisions, and that no increases would be proposed for five years.

But recently the FGUA told more than 4,000 property owners that they would be charged between $2,000 and $6,000 to pay for future water line expansions. Some had already paid to be hooked into the system, so it amounted to them paying twice.

That angered Citrus County commissioners, so FGUA officials backtracked and withdrew most of the assessments. But that misstep, coupled with the FGUA's initial refusal to work with the county on setting rates, has some commissioners up there threatening to buy the utility systems and kick the FGUA to the curb. They're also thinking about replacing their representative on the FGUA, Richard Wesch, who just happens to be their county administrator and once was the assistant county attorney. He, too, lobbied hard on behalf of the FGUA.

Everything may not be rosy for the Hernando County Commission as it continues to struggle with issues related to the Florida Water Services utility, including problems with water pressure and the possibility that rates may have to be increased.

But the commissioners should be thankful they can deal with the problem directly, and not be in the cross fire between the faceless FGUA and several thousand angry faces in Spring Hill.

Reach Jeff Webb at webb@sptimes.com, or 754-6123.

Utility agency needs to respond to just criticism

2005-07-26T11:10:00.000-05:00

Exert from ----

Utility agency needs to respond to just criticism Series: EDITORIAL; [STATE Edition]
St. Petersburg Times. St. Petersburg, Fla.: Jul 18, 2005. pg. 2
Abstract (Document Summary)
County Commission chairwoman Vicki Phillips scorched FGUA for being unaccountable to voters (the FGUA board is unelected) and for having a host of what she sees as possible conflicts of interest.

She is right on both counts. Citrus' representative on FGUA's board is County Administrator Richard Wesch, who serves at the pleasure of the commissioners, not voters. And the relationship between FGUA and the directors of the company it pays to run the systems seems entirely too cozy.

At the very least, her suggestion that Wesch be replaced on the FGUA board by someone held accountable to the voters, a county commissioner, should be adopted immediately. There has been a frustrating breakdown in communication between FGUA, the county and the utility customers that must be repaired.

Full Text (739 words)
Copyright Times Publishing Co. Jul 18, 2005

The staffers and board members of the Florida Governmental Utility Authority are used to working out of the public eye, rolling around in the nitty-gritty details of installing and operating water and sewer lines.

In recent days, however, they have raised their heads above the trenches only to catch a bulldozer load of grief from angry customers and county commissioners.

They have come by their criticism the old-fashioned way: They have earned it.

FGUA, a coalition of governments (including Citrus County) that was formed in 2000 to buy privately run utility systems, has been under fire before. The bruises over the 2003 purchase of Florida Water Systems, after a bizarre flirtation with two Panhandle towns that wanted to snap up the sprawling company, are still fresh in many people's minds.

But nothing compares to the reaction FGUA got to its proposal to assess more than 4,000 property owners in Pine Ridge and Citrus Springs between $2,000 and $6,000 to pay for future water line expansions.

The rub was that hundreds of current customers, people who have already paid to be hooked into the system, were to be charged this new assessment. To these homeowners, and to county officials, FGUA's contention that the fees were part of "making growth pay for itself" was an absurd slap in the face.

Thus began a series of public spankings of FGUA's leadership and a headlong retreat from the original proposal.

As it now stands, Pine Ridge property owners have been removed entirely from the equation, as have Citrus Springs property owners who either connected to or applied to be part of the system by June 24 of this year. The size of the Citrus Springs assessments remains unsettled, to be next discussed by the FGUA board Aug. 19.

Those concessions have turned down the heat, but FGUA is still in hot water with Citrus County.

County Commission chairwoman Vicki Phillips scorched FGUA for being unaccountable to voters (the FGUA board is unelected) and for having a host of what she sees as possible conflicts of interest.

She is right on both counts. Citrus' representative on FGUA's board is County Administrator Richard Wesch, who serves at the pleasure of the commissioners, not voters. And the relationship between FGUA and the directors of the company it pays to run the systems seems entirely too cozy.

Of even greater concern is the disconnect between the county and FGUA over the county's oversight role on rates and fees.

When the commissioners in 2003 approved FGUA's purchase of the local Florida Water Services properties, they did so with the understanding that rates would not increase for five years, and the county would have a say in any rate decisions.

But when the county's Water and Wastewater Authority tried to exercise that role in May, FGUA told them to butt out.

FGUA has since abandoned that stance, but the fact that it would forget this vital agreement with the commissioners and try to keep the county out of the rate-setting process is outrageous.

Factor in other puzzlements, such as FGUA proposing to run pipes to an area that might be annexed by a subdivision that already has its own water service while also planning to lay pipelines in the path of the proposed Suncoast Parkway, and there are substantial reasons for the county to wonder if this gang knows what it is doing.

After being hammered by commissioners, a chastened FGUA operations director Charles Sweat acknowledged that his side has made mistakes and must dig itself out of a deep credibility gap and try to gain Citrus County's trust.

They might not get the chance.

Phillips says Citrus County should consider buying the two subdivisions' utility systems from FGUA, something that has been contemplated from the beginning of this venture.

Before deciding to do so, however, Citrus officials must have accurate information from FGUA to determine whether the county can operate the systems economically and efficiently.

At the very least, her suggestion that Wesch be replaced on the FGUA board by someone held accountable to the voters, a county commissioner, should be adopted immediately. There has been a frustrating breakdown in communication between FGUA, the county and the utility customers that must be repaired.

The concept of FGUA was never an easy sell to various county officials and civic watchdogs, including this newspaper, for a host of reasons. As this ordeal sorely demonstrates, those reservations were all too valid.

Group forms to get involved with planned water, sewer lines

2005-07-24T07:41:00.000-05:00

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Group forms to get involved with planned water, sewer lines

About 15 meets to discuss FGUA

By DON MANLEY
DMANLEY@LEHIGHNEWSSTAR.COM
Published by lehighnewsstar.com on July 23, 2005

A new group has sprung up to fight the proposed expansion of sewer and water lines in a section of Lehigh Acres.

In fact, the group is so new it does not have a name or a full slate of officers yet.

It was formed Wednesday at a meeting held to discuss the Florida Governmental Utilities Authority's plan to install the lines and to investigate forming a Political Action Committee to oppose the project.

About 15 people attended the informal gathering at East County Regional Library.

Mike Welch of Lehigh led the two-hour meeting, which saw a succession of audience members express opinions on the project from a podium at the front of the room.

Everyone is all upset about the high price of water

2005-07-23T14:47:00.000-05:00

Water Lines shmater lines Everyone is all upset about the high price of water hookups.
Instead of being upset with the bill for the water lines you should be asking who is responsible for the poor planning and approvals of the infrastructure. Citrus County is growing way beyond it's infrastructures capabilities and there is no end in sight. When you have growth like we are experiencing it only makes since to plan for the future at full density and make provisions now rather than in the future. Sure it costs more to install larger capacity lines now, but a little more now is better than alot more later. These costs are nothing compared to what we can expect in the near future, sanitary sewers, storm water systems, none of this has been planned well and we will all pay for the incompetence of the people who make the decisions. It always cost more to correct a problem when it has been put off until it is out of control than to design and build it from the beginning. It is unpopular to go up against the developers and construction industry but someone has got to start making them build for future capacities rather than current need. I think the FGUA has some blame but most should be laid at the door of this county's planning department, engineering department, and development review board. Lets give credit where credit is due.

Squeaky wheel, meet grease

2005-07-23T14:46:00.001-05:00

Squeaky wheel, meet grease

A myriad of sensitive questions about the relationship between Citrus County government and the Florida Governmental Utilities Authority remain, but FGUA customers in Pine Ridge and Citrus Springs can now breathe a bit easier.

In response to a booming housing market, FGUA was moving forth with one-time $6,571 assessments per undeveloped lot in Pine Ridge, as well as for those who built on their lot in the past year. That money was to fund the extension of water lines. About 380 lot owners would have been impacted.

Additionally, FGUA has targeted Citrus Springs lot owners for an assessment of $2,082 for water line extensions. That involves about 6,120 lot owners.

While the proposed fee for Citrus Springs hasn't changed, the plan to retroactively bill those who built homes in the past year has been scratched.

Bigger news is that the $6,571 assessment for Pine Ridge has been completely dropped. Two developers who own significant chunks of land there have agreed to fund the utility lines, significantly reducing the financial burden on FGUA.

After being lambasted by the public and county commission, FGUA officials have vowed to regain public trust.

County commissioners are rightfully steamed about how the proposed fees were sprung on them and the public. Our elected watchdogs have to be especially careful during times of rapid growth — which is what's driving the need to build the network of waterlines. FGUA contends it simply didn't anticipate or budget for the pace of growth the county's experiencing.

Again, there are many factors to be addressed before county commissioners will trust FGUA, but addressing the assessments was the most pressing issue and that's a step in the right direction.

BOCC chairwoman blasts water utility

2005-07-23T14:46:00.000-05:00

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BOCC chairwoman blasts water utility
By Mike Wright

If nothing else, Vicki Phillips was blunt.

Phillips, chairwoman of the Citrus County Commission, didn't hold back during an interview Wednesday in criticizing the Florida Governmental Utility Authority's recent attempts to assess land owners in Pine Ridge and Citrus Springs for water lines.

And she was pointedly critical to County Administrator Richard Wesch, a member of the FGUA three-member board, for keeping herself and the public in the dark about the assessments even though they had discussed it with developers months ago.

"I understand business. I understand somebody has to pay for all of this," Phillips told the Chronicle Editorial Board as Wesch sat just to her left. "But they need to go by the rules."

FGUA had planned to assess Pine Ridge lot owners $6,571 and Citrus Springs lot owners $2,082 to extend water lines. It dropped the Pine Ridge assessment altogether when two developers pulled their lots out of the program; FGUA now says it has enough money to extend water lines in other areas of Pine Ridge without an assessment.

The utility also agreed to have the Citrus Springs assessment reviewed by the county's water and wastewater authority, after insisting for weeks that the review wasn't necessary.

Phillips said when FGUA acquired a string of private utilities in 2002, it promised not to raise rates for five years. The assessment, she asserted, is FGUA's way of passing costs onto customers without raising rates.

"They need to stick to the 2002 agreement," she said.

Phillips said FGUA may have won support from property owners had it gone public with the plan in January, rather than waiting until June. Worse, she said, is that Wesch didn't keep her informed, especially since her district includes Citrus Springs and Pine Ridge.

Wesch said he thought the FGUA staffers would have informed commissioners. Phillips said that answer was unacceptable.

"Richard's first loyalty is to the board of county commissioners," she said.

The county commission appointed Wesch to the FGUA board in 2002 when he served as assistant county administrator. FGUA bylaws say no commissioners may be on its board, but Phillips did not say if she thinks Wesch should be replaced on the FGUA board.

Asked for a response to Phillips' contention that FGUA blundered in its public relations, he said simply: "We admitted it. It will not happen again."

Phillips said before the no-rate-increase agreement ends in 2007 the county should consider buying the utility.

"There's no accountability with these folks," she said. "When the five years is up, there will be no accountability at all."

Utility board to look at line levy

2005-07-23T14:45:00.000-05:00

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Utility board to look at line levy
By Terry Witt

A government utility will decide at a public hearing today whether to use property assessments to fund a multimillion dollar water line extension project in Citrus Springs.

The decision by the Florida Governmental Utility Authority (FGUA) board of directors could be the easiest part of the approval process for the assessments.

If the three-member board votes to use assessments as the funding method, FGUA has now agreed to let the Citrus County Water and Wastewater authority review the assessments. That could be a tougher process.

The water and wastewater authority's primary responsibility is to protect the public in utility cases.

FGUA wants to levy an assessment of $2,082 against 6,000 vacant lots in Citrus Springs in the first phase of a much larger project to eventually provide water to the entire community. Five phases are planned.

In the first phase, the utility would install 193,240 linear feet of 6-inch water line.

Earlier this week, FGUA dropped Pine Ridge from the assessment program.

If the FGUA board gives conceptual approval to the Citrus Springs assessments, the hearing will be continued through Aug. 15 to give the water and wastewater authority time to review the assessments in public hearings on Aug. 1-3.

County Utilities Regulatory Director Robert Knight, who makes recommendations to the water and wastewater authority, is already questioning the size of the project.

He said FGUA wants to do about 12 years' worth of water line extensions in one project, but he doesn't know if that is justified.

"They've got to convince me that building lines 12 years before they are needed is prudent," he said.

Utility officials say unexpectedly high growth in the community is forcing construction of more line extensions than current water rates can fund.

They say it would be unfair to increase water rates for residents already living in the community to pay for line extensions to new residents. As a result, they have proposed levying property assessments on vacant land.

Phase one, they say, is where the highest growth is occurring.

FGUA officials say they also have discussed the possibility of an assessment for sewer lines at some future date.

The question of whether FGUA would give the water and wastewater authority to review the assessments was settled Tuesday night when county commissioners met with the utility. Board members unleashed a brutal verbal assault on FGUA members for failing to telling them in advance about plans to implement the assessments and then claiming the county had no authority to review them.

On Wednesday, FGUA formally acknowledged in a letter that the water and wastewater authority could review the assessments. Officials from the utility hope to get county approval of the assessments in time to put the assessments on the tax roll.

Under the FGUA proposal, residents can prepay $2,082 before Oct. 15 for the line extensions, or they can finance the extension over 20 to 30 years at $269 a year. If they pay over time, rather than pre-pay, their base cost rises to $2,475. The interest rate is 7 percent.

n What: Florida Governmental Utility Authority meeting.

n When: 10 a.m. today.

n Where: Citrus County Commission chambers, Inverness.

n Why: Consider water-line extension assessments for Citrus Springs.

County rips into utility

2005-07-23T14:44:00.000-05:00

County rips into utility
By Terry Witt

Citrus County commissioners on Tuesday launched a withering verbal assault on a government utility, questioning why the board was not kept better informed of its efforts to tax Pine Ridge and Citrus Springs residents for water line extensions.

Although Florida Governmental Utility Authority officials were profusely apologetic, commissioners said they no longer trusted what the officials were saying, nor did they feel the FGUA had met its obligation to allow a local utility regulatory board to review the FGUA's proposed property assessments to determine if they were justified.

The Citrus County Water and Wastewater Board has insisted for months that it has authority to review the property assessments, but FGUA has resisted, saying the assessments do not fall under the board's regulatory powers.

Commissioner Gary Bartell admonished FGUA officials for their actions, calling the assessments a "huge mistake." He said FGUA's actions "has tarnished the relationship between FGUA and the county for a long time."

"I'm going to say you all failed miserably," Bartell said.

Commission Chairwoman Vicki Phillips said she had never been more angry as an elected official than she was the previous day when FGUA officials admitted in a pre-meeting briefing at the courthouse that they had made mistakes, but had not admitted them until now.

Commissioners instructed staff to tell FGUA that the water and wastewater board has the authority to review any charges or rate increases imposed by the utility, including the proposed assessments, and they instructed staff to investigate the possibility of the county purchasing FGUA's 11 utilities in Citrus County.

Under the interlocal agreement with FGUA, the county can buy the utilities at any time. FGUA's director of operations, Charles Sweat, said FGUA would work with the county if that is what it wants to do.

Early in the meeting, FGUA announced that Pine Ridge had been dropped from the assessment program. FGUA officials said they had worked out a way to eliminate the small number of affected property owners from the program. They will not be hit with the assessments.

Commissioners also reassigned the water and wastewater authority's executive director, Robert Knight, to work under the county attorney's office. The action was intended to remove Knight from under the supervisory control of County Administrator Richard Wesch. They want Knight to be completely independent when he reviews FGUA's rates and charges.

Wesch is one of three directors who operates FGUA and commissioners said he has a conflict as Knight's supervisor.

Charles Sweat admits mistakes were made

2005-07-23T14:40:00.000-05:00

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Utility official: Fences being mended
By Terry Witt

Charles Sweat admits mistakes were made. He calls them blunders. He wants to win back the confidence of the Citrus County Commission.

But how much fence mending will it take before commissioners are satisfied with the Florida Governmental Utility Authority's explanations about why it planned to impose property assessments for water line extensions in Pine Ridge and Citrus Springs without county oversight?

Sweat, director of operations for FGUA, told the Chronicle Editorial Board on Wednesday that FGUA will do whatever it takes to make things right. And he acknowledged plenty of things went wrong.

"This was a blunder. I've said it repeatedly. It was a mistake," Sweat said. "It was not the intention of FGUA to not provide information to the county commission."

The FGUA board began developing plans in January to assess Pine Ridge vacant lot owners for water line extensions to their properties. Pine Ridge lot owners were to pay $6,571 and Citrus Springs residents were to pay $2,082.

At the time, FGUA was facing record growth, especially in Citrus Springs, and needed millions more in revenue to pay for water line extensions, Sweat said. He said growth was 10 times the historical rate, and FGUA officials knew they were facing a shortage of revenue in August 2004.

Later that year, the government-owned utility came up with idea of imposing property assessments on the people who were causing the growth — lot owners who were not yet connected to the system.

However, FGUA failed to tell the county commission of its specific plans. And when commissioners learned of the size of the assessments, and insisted on a review by the county's Water and Wastewater Authority, FGUA resisted, saying the county had no power to review the assessments.

Since that time, FGUA has backtracked and removed Pine Ridge residents from the program. Also, residents who hooked to the FGUA system after Dec. 1, 2003, were removed from the assessment.

In hindsight, Sweat said, FGUA should have kept commissioners better informed, and he said FGUA now realizes how serious the county was about having the assessments reviewed locally. He said FGUA will allow a local review of the assessments.

"If that is their intention, we will honor the intent, even though I may not have agreed a week ago," Sweat said.

When the FGUA board meets at 10 a.m. Friday in the Citrus County Courthouse to consider approving the concept of an assessment in Citrus Springs, Sweat said his staff will recommend that FGUA agree to have the assessments reviewed by the water and wastewater authority.

But he was less certain about what would happen if the authority rules that the assessment is too high or shouldn't be imposed at all. He said the assessment numbers are based on actual construction costs.

"I won't say they are all wrong. They may disagree," he said.

The county commission adopted a motion on Tuesday saying the water and wastewater authority has the power to regulate the assessments.

Commissioners knew as early as last November that property assessments were being considered by FGUA. The utility had met individually with commissioners. Sweat said they also met individually with four of the commissioners in January to talk about the possibility of assessments. But no numbers were mentioned and commission Chairwoman Vicki Phillips was not briefed.

The public was not told about the assessments until June.

Phillips said the first time she heard that assessments were actually going to be levied was when angry Pine Ridge residents approached the board two weeks ago carrying a letter from FGUA that noted residents had no choice but to pay the fees. She said she was caught by surprise. The letter was sent to more than 6,000 residents.

At a July 6 public workshop, which Phillips said FGUA failed to tell her about, the utility took its first public lashing for the assessments. After the meeting, FGUA decided to drop the retroactive assessments it had planned to levy on homeowners who connected to the water system after Dec. 1, 2003, or who had requested service after that date.

Still under heavy public pressure, FGUA's board decided last weekend to eliminate Pine Ridge from the assessment program altogether. Sweat said that was because many of the vacant lots in Pine Ridge belonged to Gulf to Lakes Associates, a development company, and those lots were withdrawn from the program last Friday. The developer has volunteered to pay for the line extensions when the time comes to build on the properties.

Sweat said the offer to withdraw came late. He said FGUA had sent three notices of the pending assessments before the offer was made to withdraw from the program.

Sweat said the remaining vacant lots in Pine Ridge can be connected to the system using existing customer revenues. But, he said, the assessment program remains in place for Citrus Springs.

However, commissioners are wary of FGUA's intentions. The board voted Tuesday to remove County Administrator Richard Wesch as the boss of county Utilities Regulatory Director Robert Knight. Wesch sits as one of three members of the FGUA governing board.

Commissioners said they believed Wesch had a conflict of interest in supervising Knight, who was in charge of advising the water and wastewater board about FGUA's rates. Knight is now works in the county attorney's office.

The board has also asked its staff to research the possibility of the county buying FGUA's 11 utilities in Citrus County.

Information flows

2005-07-23T11:50:00.000-05:00

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Information flows

Editor, Naples Daily News:

Re: residential well water in Golden Gate.

In October 2002 the Florida Governmental Utilities Authority, the water utility for Golden Gate city, notified health agencies of high counts of fecal coliform in seven of its supply wells. The cause of the contamination was never determined. Since the utility's well water is treated, there was no threat to FGUA customers but the scare caused the Collier County Health Department to issue a boil-water notice and conduct a hurried and inaccurate water study in the community.

County testing originally showed 40 percent fecal coliform contamination in the 117 wells tested, but state labs failed to find any fecal bacteria in the county's samples. So all 117 wells were retested and only one showed signs of fecal bacteria in the water.

Ironically, a month or so after FGUA made known its contaminated wells, representatives of the utility attended a civic meeting during which they announced their intent to request 200 homeowners residing near the utility's water lines to connect willingly to the system. They noted that as a private utility, they cannot mandate those homeowners to hook up but Collier County officials can.

Creating an emergency situation to validate pursuing specific measures is a tactic commonly used by large agencies to push an agenda. We are thankful the county health department is conducting a complete water study of our community to measure the true status of our well water.

Kaydee Tuff/President, Golden Gate Civic Association

Stop FGUA in Florida

2005-07-23T05:16:00.000-05:00

Stop FGUA in Florida

Please comment today !!!!!!

Allete receives $520M bid for Florida water unit

2005-05-19T14:35:00.000-05:00

Duluth-based Allete has been offered $520 million for its Florida Water Services Inc. unit by the Florida Governmental Utilities Authority (FGUA).

In a filing with the SEC Thursday, Allete said that the transaction could close this year. If the purchase price remains at $520 million, the deal would generate about $275 million in cash for the parent company.

An exclusivity agreement on the sale of Florida Water Services between Allete and the FGUA expired Jan. 11, but Allete kept talking to the Authority while also entertaining offers from other unnamed interested parties.

Allete is a diversified company. Its oldest unit is Minnesota Power, which provides electricity in northern Minnesota and Wisconsin. Other activities include the second-largest automobile auction network in North America, water utilities in Florida and North Carolina and real estate holdings it manages in Florida.