Gov. Ron DeSantis signs controversial state takeover of Gainesville utilities

Gov. Ron DeSantis on Wednesday signed the controversial HB-1645, dubbed the "GRU Takeover" bill,  beginning the process of establishing a governor-appointed Gainesville Regional Utilities authority board and setting the stage to strip the Gainesville City Commission of its authority over the municipal-owned utility.

While some, including Gainesville Mayor Harvey Ward, have said the bill could be devastating to local government and services, others are hopeful that it will bring down notoriously high utility bills.

The bill 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. DeSantis is now responsible for issuing a public notice looking for citizen nominations within 120 days of the bill’s July 1 effective date, according to the bill.

The nomination period will last at least 30 days, and the governor will appoint the board members within 60 days of the nomination period ending.

Gainesville commissioners, who have historically campaigned on GRU matters, will have no power in deciding what occurs with the utility or its rates. While the board would have the ability to hire and fire GRU's general manager, the city's charter still says that the role is a "charter officer" position that answers to the City Commission.

The bill was first introduced almost two weeks after members of the state's Joint Legislative Auditing Committee grilled city leaders in February about utility oversight and city officials' plan to tackle $1.7 billion in debt.

"I have no confidence that the City Commission will take the steps that are severe enough to curtain the bankrupting of the utility," state Rep. Chuck Clemons said at the time.

Since then city officials announced a plan to reduce $315 million of GRU’s debt over the next 10 years and have proposed cutting jobs and raising property taxes in the city.

Gainesville commissioners have argued the bill could have negative financial impacts on the city, despite what state lawmakers claim.

The uncertainty surrounding the impacts of the bill have already resulted in a projected cost of $2.9 million to be shouldered by GRU ratepayers over the next three years after commissioners authorized the purchase of bonds with a new bank for the utility after a first bank pulled out over concerns related to the bill.

With the bill now signed, Gainesville officials and residents will likely look at taking legal action.

In June the city commission authorized the spending of $250,000 from the GRU utility system reserves fund for the outside counsel of Ackerman, LLP, led by Cindy Laquidara, in hopes the counsel can provide legal advice in connection with analyzing and potentially litigating the impact of the bill on the city.

Earlier coverage: Commission funds legal counsel, prepares to litigate impact of ‘GRU Takeover’ bill

A citizen-led nonprofit group, Gainesville Residents United, has said it will file a federal lawsuit in the coming days in response to the bill.

“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 Robert Hutchinson, the group’s president. “There's lots of pressure on local utilities and this is just part of the battle.”

Mayor Harvey Ward's statement

"Today marks a controversial milestone in the history of our publicly owned Gainesville Regional Utilities. House Bill 1645 — commonly known as the GRU bill — has become law. This means that by October 1, 2023, we can expect Governor Ron DeSantis to have appointed five people to manage, operate and control our municipal utility," Gainesville Mayor Harvey Ward said in a statement released Wednesday.

"What does this mean for our GRU customers?

"The first thing to know is that the new law does not change who owns GRU. The utility is still owned by the residents of the City of Gainesville," Ward said.

"The second thing is that we are proud of GRU’s record of providing excellent service. It is my hope this will continue for all gas, electric, water and wastewater, and GRUcom customers throughout this transition," he continued.

"Finally, I am - and I trust my City Commission colleagues are - working to develop a better understanding of the way this new board will operate, the decisions it is likely to make and the actions our commission will need to take to ensure a proper and dependable transition. More information will help us move through these uncharted waters," Ward concluded. "I say this not because I believe a governor-appointed GRU Authority is the right move for our utility and our community, but because at this moment that debate is over. It is my job to make this changeover a smooth one for the people of Gainesville."

This article originally appeared on The Gainesville Sun: 'GRU Takeover' bill is now law; takes effect July 1