DeSantis names 3 to join the new GRU board. None live in city limits as required by law

Gov. Ron DeSantis has appointed three of the five members to the Gainesville Regional Utilities Authority board, which will be responsible for making all decisions related to the municipal utility.

But there's one major problem: None of them live within the city's boundaries, as required by law.

The governor on Tuesday evening named James Coats IV, Robert Karow and Christopher "Eric" Lawson — all registered Republicans — to the first-ever GRU Authority, which will strip away Gainesville's control of its utility. DeSantis' office has refused to send any information about the applicants to The Gainesville Sun despite multiple public record requests and calls made over the past couple of months.

House Bill 1645, sponsored by state Rep. Chuck Clemons, states that four of the five members must be city voters residing within the municipal boundaries — the other in the county — and have GRU electric services during their terms. Voter registration information, however, shows all three of DeSantis' appointees live on the outskirts, The Sun confirmed.

Clemons was surprised to learn Wednesday that at least two of the appointments won't meet the residency requirements, despite their appointments. He said his bill is clear on the requirements but added he wasn't briefed on the selections or anyone's address prior to the names being announced.

"Yeah, that's not going to work," Clemons said of the governor's appointments.

In 2021, DeSantis removed Alachua County School Board member Diyonne McGraw for living a few hundred feet outside her district. While all three of Tuesday's appointees have a "Gainesville" address, each is in the unincorporated area.

Tweaking interpretation

Following the publication of this article online, some conservatives attempted to argue that the bill is more open to interpretation than originally led on before being passed by the Legislature.

"Appointments shall be ... a qualified elector of the City, except that a minimum of one member must be a resident of the unincorporated area of the county or a municipality in the county other than the City of Gainesville," the bill reads.

The makeup of the board may also be adjusted upon any board vacancy to reflect the ratio of total electric meters serving GRU customers, the bill also states.

But throughout the debate of the bill, that clause was been tied to GRU's customer base. If the utility serves more than 40% of customers who reside outside the city limits, then the governor can appoint a second county resident, it says. Defenders of DeSantis' decision appear to be arguing that the language allows for the entire board to be made up of people outside of Gainesville because the board's initial appoints are to, technically, fill vacancies.

The appointments come just days before a judge is set to rule on a case where the board's creation is being challenged by the city of Gainesville, which says the bill is unconstitutional and unworkable. Another lawsuit by a group of local constituents is also challenging the creation of the board.

Related coverage: Gainesville mayor cites financial harm to city with GRU bill

Meet the members

It's unclear based on the news release from the governor's office whether two of the three have experience in the utility industry or if any have "substantial knowledge of GRU," as the law requires. The members — with two others to be named soon — are expected to assume their roles on Oct. 1 and hold the first board meeting later that week.

Coats is the chief executive officer of Phalanx Defense Systems, a business located in northeast Gainesville. The business sells military-grade armor, including bulletproof vests, holsters and ballistic inserts for backpacks.

Coats has previously been awarded the "Spirit of Gainesville" award by the local chamber of commerce and has done various charity work around the city. He has a bachelor and master’s degree in business administration from American Military University.

A quick internet search shows a YouTube video from Coats called "Mastering the Art of Pickpocketing," where he teaches people how to steal wallets from others. His address comes in at northwest Gainesville, just below Blues Creek Ravine and about a mile outside city limits.

Reached by phone Wednesday, Coats asked why it would be a concern whether he or others lived outside the city limits. He declined to comment on the appointment until he is sworn in next week.

“I was just put into place at 5 p.m. yesterday so I haven’t been given the rules and regulations of what I can or can’t say,” he said. “I don’t know anything about the selection process.”

Lawson is the chief executive officer of HCA North Florida Regional Hospital. He was previously the chief financial officer for HCA Tristar and has a bachelor's degree in accounting from Tennessee Technological University. There may be potential conflicts of interest issues with Lawson's role, as HCA goes before the city for various projects.

His home address comes up north of HCA, next to Interstate 75, also outside city boundaries. Attempts to reach Lawson were unsuccessful.

The only member of the three who appears to have any utility experience is Karow, who is now retired. He is a veteran of the U.S. Marine Corps, having retired with the rank of lieutenant colonel.

Karow's resume shows he worked as a manager and attorney for Oleoductos de Crudos Pesados, a crude oil pipeline in the Ecuadorian Orient region. He has a bachelor’s degree in economics and business administration from Chapman College and his juris doctor degree from the University of Florida.

The governor's office stated that Karow has over 40 years of energy experience working in the oil and natural gas industry, though GRU has signaled its intention to move into more renewable sources of energy. Karow served as a director for ATP Oil and Gas, which previously filed for bankruptcy but is still operating.

He also lives the furthest outside Gainesville, about 1.5 miles from the southwestern edge of Gainesville. Attempts to reach Karow on Wednesday were also unsuccessful.

Related coverage: Florida Auditor General to review Gainesville’s finances

State takeover

The bill to create the GRU Authority follows a February state Joint Legislative Auditing Committee hearing where lawmakers grilled Gainesville city leaders about the status of GRU, including its outstanding $1.7 billion debt and reduction plan. A major point of contention was also the city's $754 million purchase of the biomass plant in 2017, which helped reduce the city's debt by almost $300 million.

The hearing lacked context on multiple subjects, including having no comparative data with other utilities that have higher rates and more debt. Much of the concern was also built on a two-year-old audit featuring issues previously reported by The Gainesville Sun over the years, though several of the issues had yet to be resolved.

Lawmakers, some of whom falsely claimed the city was on the brink of bankruptcy, told city officials to take "bold" actions in its upcoming budget before coming back after October once the budget was passed. Gainesville has since raised property taxes and utility rates to help reduce its debt by more than $315 million over the next 10 years.

Before the moves were implemented, however, Clemons' bill was filed to take away the city's century-long control of the public utility. Some fear the board's creation is the first step in eventually selling the utility off to Florida Power and Light, which has been heavily involved in Gainesville politics and supportive of local Republican leaders.

Clemons, however, has denied there is any such desire to sell GRU and has told fellow lawmakers that it would require approval by voters.

This article originally appeared on The Gainesville Sun: Ron DeSantis appoints 3 to GRU Authority ahead of court ruling