City of Gainesville files lawsuit against state, DeSantis over controversial GRU bill

The city of Gainesville has filed a lawsuit against the state for its takeover of Gainesville Regional Utilities.

Gov. Ron DeSantis signed HB-1645, dubbed the ‘GRU Takeover’ bill, on June 8, which takes away the City Commission's century-long control of GRU and gives ultimate authority to an unpaid five-member board appointed by the governor.

The bill, sponsored by state Rep. Chuck Clemons, R-Newberry, marks the first time that the state has taken control of a municipal utility. Legislators said the move was necessary due to GRU's debt levels and high utility rates, though other utilities around the state surpass Gainesville.

City leaders have argued against the change in power since its initial proposal, saying the bill is unworkable and unconstitutional. DeSantis, Attorney General Ashley Moody and Secretary of State Cord Byrd are listed as defendants in their official capacity.

“I’m disappointed we ended up in this position,” said Gainesville Mayor Harvey Ward. “I asked the original sponsor of the legislation to work with us before the legislation was passed, but he was unwilling to do so, ultimately leading our community to this regrettable position.”

More: Pushing back: Community group sues state lawmakers over ‘GRU Takeover’ bill

More: Gov. Ron DeSantis signs controversial state takeover of Gainesville utilities

About the lawsuit

The city filed the lawsuit officially on July 21 in the circuit court of Florida's Second Judicial Circuit in Leon County, court records show. The city is seeking declaratory and injunctive relief.

The lawsuit claims the bill is unconstitutional, problematic and has multiple counts. For one, it argues the board has the power to borrow money and acquire property, responsibilities typically left to elected officials rather than appointed ones. It also argues the board could damage the city's credit rating and make it difficult or impossible for the city to borrow.

Another complaint calls the bill "so unconstitutionally vague" that it is unclear how elected officials and the city can go about business without unintentionally violating the statute.

"In short, severing the control over revenues and the Utility System generating those revenues, and leaving the City and its lenders without the rights bargained for and agreed upon, requires the City, under the terms of its Bond Ordinance, to challenge HB-1645 in good faith, which it clearly is doing," the lawsuit reads.

Community lawsuit

It's not the first lawsuit the state is fighting over the bill.

Earlier this month, a local nonprofit run by citizens, Gainesville Residents United Inc.,  filed a federal lawsuit against state lawmakers over the GRU bill.

The group’s president, Robert Hutchinson, said the bill violates constitutional rights and state statutes and doesn’t allow for due process.

“I worked for GRU through almost the entire 1980s and really, truly believe in locally controlled utility operations. I think they're important for health, safety, welfare, reliability, and accountability and transparency,” said Hutchinson, who served 12 years on the Alachua County Board of County Commissioners. “There's lots of pressure on local utilities, and this is just part of the battle.”

Preparing to challenge

The city has been preparing for this step for a while.

The commission voted in March to begin the search for outside legal counsel in hopes the counsel would provide legal advice in connection with analyzing and potentially litigating the bill's impact on the city.

In June, the commission voted unanimously to authorize the spending of $250,000 from the GRU utility system reserves fund for the outside counsel of Ackerman, LLP, led by Cindy Laquidara, the attorney on the lawsuit.

“I do believe, as the lawsuit makes clear, that the legislation, as passed along party lines this past legislative session, contains inconsistencies with the Florida Constitution and general law,” Ward said. “For that reason, I believe the only responsible next step in any sort of smooth transition had to be asking the courts to weigh in on these issues.”

This article originally appeared on The Gainesville Sun: City of Gainesville sues state, DeSantis over 'GRU Takeover' bill