UPDATED 09/20/23: GRU Governance Action Alert

UPDATED 09/20/23: GRU Governance Action Alert

Red triangle on white background with black exclamation point in the middle. Attention in black text over top
Time Range For Action Alert: 
Mar 08 2023 to Aug 31 2023

Updated 09/20/23

GRU governance – Action Alert

The GRU Takeover Bill, which replaces the Gainesville City Commission as the governing entity for GRU and replaces it with a five-person board appointed by the Governor, was signed by Gov. Ron DeSantis on June 28th. The bill went into effect on July 1st. On July 2nd, Gainesville Residents United, a Gainesville nonprofit, filed a federal lawsuit in an effort to block and defeat the GRU Takeover Bill signed by Gov. Ron DeSantis. In late July the City of Gainesville filed its lawsuit in state court to end, or at least give us clarity on, the implementation of HB 1645, the governor’s takeover of Gainesville’s five utilities. Now Gainesville Residents United, Inc. provides an update and timeline for the city lawsuit regarding the takeover of Gainesville Regional Utilities.

The LWVAC continues to encourage residents to object to the GRU Takeover Bill by following legal actions being taken by GRUnited and the City of Gainesville. When democracy in our local community is tarnished, we will not be silent.

The full history of this bill's progress through the legislature and our opposition can be found below

 
Thank you for visiting the LWVAC website. Thank you for taking action.

If you want to get more involved, info [at] lwv-alachua.org (reach out to us) today!

 

Further Information

APPA: Legislation Sets Up Board to Govern Florida Public Power Utility GRU

CBS4 News: GRU bill heads to Gov. Ron DeSantis' desk

Opportunity for All Floridians article about the GRU Takeover Bill

The Invading Sea Commentary piece on GRU Takeover Bill

 

History

In 2018, the LWV of Alachua County (LWVAC) did a comprehensive Study and Action and agreed unanimously that Gainesville’s residents and resources are best served with the city commission as the GRU governing agency. Alachua County voters rejected a ballot referendum to change the governance. Unlike a referendum, the current proposed bill uses a process that excludes meaningful input from residents.

  • On March 9, 2023, PDF icon The Gainesville Sun published the first notice that PDF icon a bill would be filed regarding Gainesville Regional Utility (GRU) governance.
  • On March 17, 2023, the local legislative delegation voted 4 to 1 to move the bill forward, with Yvonne Hayes Hinson making the "no" vote. A recording of that meeting is available.
  • On April 10, Rep. Chuck Clemons filed HB 1645 regarding Gainesville Regional Utility (GRU) governance.
  • On April 14, it was heard by the Florida House State Affairs Committee in Tallahassee and they approved the bill. 
  • On April 21, there was a joint meeting of the City Commission, members of the Utility Advisory Board, and the Legislative Delegation. Although all five members of the Legislative Delegation were invited, Representative Yvonne Hayes Hinson was the sole delegate who attended.
  • On April 4, the Florida Senate approved House Bill 1645 with little debate and no amendments.
  • The legislation was signed by the Governor on June 28th.
 

LWVAC Calls to Action

07/02/23

On July 2nd, Gainesville Residents United, a Gainesville nonprofit, filed a federal lawsuit in an effort to block and defeat the GRU Takeover Bill signed by Gov. Ron DeSantis. The bill will hand control of Gainesville Regional Utilities (GRU) to an independent board as reported by Mainstreet Daily News. Throughout the legislative session, the LWV of Alachua County partnered with other organizations and individuals to oppose the GRU Takeover Bill citing the lack of democratic processes. For example, the voters' will to not take GRU governance away from the city commission, as expressed in a referendum in 2018, was ignored by this legislature; a "special act" process was used that bypassed voters; there was no meaningful opportunity for voter input and the bill was put on a consent agenda that bypassed discussion in the Senate.

Therefore, the LWVAC encourages residents to continue objecting to the GRU Takeover Bill by following legal actions being taken by GRUnited. When democracy in our local community is tarnished, we will not be silent.

05/08/23

Letter from LWVAC President, Janice Garry

Dear Friends of Democracy;

Thanks for following the GRU Takeover Bill through the legislative session!

As expected, the bill, despite our advocacy, was pushed through the Senate on a consent agenda and passed without objection on Friday, May 5, the last day of the legislative session. The consent agenda typically has bills that are for noncontroversial housekeeping, not bills that are substantial. The GRU Takeover Bill on the consent agenda was part of the undemocratic process of the bill that has bypassed voters and meaningful discussion.

The last push for objecting to the process and the bill is to again barrage the governor with emails of objection. We do not want anybody to say that the bill went through the process without public pushback. This is important.

The Ask of LWVAC Members and Alachua County Community

  1. Copy and paste the message below in total, as a starting point, or write your own message. Send it to the Ron.DeSantis [at] eog.myflorida.com (governor) and janice.garry [at] gmail.com (BCC me).
  2. If you get an auto-response from the governor, please forward that to me. (All this will allow us to know, approximately, how many emails have been sent.)
  3. Do this today. There is no way to know when the governor will actually look at the bill. Emails need to get to him prior to his review.

We appreciate that you have been engaged and focused on this consequential matter in Gainesville. Demanding that the democratic process remain intact and that our property, GRU, remain in the hands of officials we elect is worth our effort.

The message to Gov. DeSantis follows:
Subject Line: Veto HB 1645; Poorly written, poorly processed

Dear Governor DeSantis

HB 1645 is a bad bill on two important fronts. First, it ignored the will of the voters who, in 2017, voted down, by 60% a nearly identical bill. This time the bill circumvented voters through a local bill process that did not respect the 2017 referendum, and was presented directly to the legislature. Rushed committees and votes on the floor of the legislature did not allow time for meaningful discussion. Finally, it was on the senate consent agenda, which is not intended for bills of substance.

Second, HB 1645 is a bad bill because the financial experts, the bond counsel of Gainesville, have expressed numerous points of concern about ramifications of the bill. It would represent unstable governance of GRU, which is a red flag to bond holders and lenders. The actual entity that would be responsible for financial transactions is not specified. And, there is a period from July 1 through October 1 when governance of GRU is unclear, of particular concern since it is the hurricane season. GRU is a part of the funding for Gainesville that pays for our first responders, including fire service and police. Destabilizing Gainesville's financial status would destabilize our basic services.

I urge you to recognize the weaknesses and veto HB 1645.
Sincerely,
(your name)

Our thanks to each of you who is protecting our utility and our city.

In community,
Janice Garry
League of Women Voters of Alachua County President

05/05/23

Focus - Governor Veto

Now that the bill has passed both chambers of the legislature, our opposition is solely focused on Governor Ron DeSantis. We are asking you to send emails and calls to Gov. DeSantis requesting that he veto the bill. A suggested message follows.

Subject Line: Veto HB 1645 – Provide Stability to Florida’s Cities

Dear Governor DeSantis:

The bill, HB 1645, that would change the governance of Gainesville Regional Utilities, has major, unfavorable legal and financial implications that will produce instability for Gainesville and, per the Bond Counsel, instability for lenders and bondholders doing business with Gainesville. Stability is needed to fund first responders, core services, and a thriving city.

HB 1645 has been rushed. It bypassed community notification or input, it was late in being notified on the legislative agenda, the amended bill was late in being notified and it has not had meaningful legislative discussion to address the many implications. HB 1645 violated Home Rule and democratic processes.

All of Florida’s cities need stability to govern current residents and the many people who move to Florida. To preserve stability in Gainesville, I urge you to veto HB 1645.

The Governor can be reached at:
Ron.DeSantis [at] eog.myflorida.com
(850) 717-9337
 

The legislative session ends today, May 5. The Governor has no more than 15 days to sign the bill. Time is of the essence. Send your messages today and then encourage all of your friends, family, and neighbors who live in Florida to do the same.

04/22/23

Next steps to protecting GRU from state governance!

The  April 21st meeting gave leadership an opportunity to voice their concerns about the vagaries of HB 1645, which would change the governance of Gainesville Regional Utilities from the City Commission to a five-member governor-appointed board called the Authority. Every person at the dais spoke in opposition to the bill. Some 20-30 audience members spoke in opposition and two spoke in favor of the bill.

Concerns are numerous.

  • The bill does not stipulate how the board would work with the city.
  • All GRU assets, such as the Power District, would fall under the jurisdiction of the Authority, making the current planning for that property uncertain.
  • The Sweetwater Wetlands Park is a GRU property with the management of it uncertain if the Authority was the governing body.
  • The city Bond Counsel has advised that the sudden change in governance would create uncertainty with bondholders and loaners with detrimental effects.
  • And the timeline for the Authority is unclear; HB 1645 would go into effect July 1, but the Authority would not have its first meeting until October 1. This would leave a gap in governance during the hurricane season.

Rep. Hinson said she received hundreds of emails from concerned Alachua County residents who are opposed to HB 1645! Kudos to you! This is what democracy looks like.

04/18/23

IT IS OF THE HIGHEST IMPORTANCE THAT WE HAVE A LARGE AUDIENCE AT A CITY MEETING

When: Friday, April 21 at 6 p.m.

Where: City Hall; 200 E University Avenue, Gainesville

Why: Because state overreach is targeting Gainesville. A governor-appointed board could replace local elected officials as the governing agency of GRU, including assets, hiring/firing, and short- and long-term decision-making. Political appointees should not be at the helm of GRU and Gainesville governance. By having a large public audience, we are communicating that we care about our city and about democracy.

Who is invited: The City Commission members, the Utility Advisory Board members, the five Legislative Delegation members and YOU, the public.
Legislative Delegation members: Rep. Chuck Clemons, Yvonne Hayes Hinson, Chuck Brannan; Senators Keith Perry and Jennifer Bradley.
City Commision: Mayor Harvey Ward, Bryan Eastman, Casey Willits, Reina Saco, Ed Book.

Attend Virtually: here

City of Gainesville Public Meeting Calendar: here.

Bill, HB 1645, filed by Rep. Chuck Clemons, has bypassed democratic principles. There was no local meeting about the bill, as is the required process. The bill that was initially submitted was a "shell" as described by Rep. Clemons, but the "official" bill that was filed is a duplicate without important details about the process and responsibilities. Repeated attempts to find out more about the bill have gone unanswered. The actual content of the bill remains shrouded in mystery. Democratic processes should NOT be shrouded in mystery.

In an attempt to gain more information, Mayor Harvey Ward has called a joint meeting of the City Commission, the Utility Advisory Board, and he has invited the five members of the local Legislative Delegation. This is the group of five legislators that voted in favor of accepting the bill and submitting it to a committee, which landed with the State Affairs Committee. Yvonne Hayes Hinson was the sole dissenting vote on accepting the bill. The goal of the meeting is to learn more about the actual bill and have the opportunity to ask questions. Being present in the audience shows that we care.

The League of Women Voters exists to defend democracy. If there was ever a time to defend democracy in our hometown, this is it. See you there! Arrive or log into the streaming service early!

 

In addition, Rep. Cynthia Chestnut is strongly urging the public to attend (either in person or by Zoom) and to contact the Legislative Delegation. Since the legislative session is nearly over, time is of the essence. Some suggested talking points are:

  • I am disappointed that the bill was filed, particularly as a "local bill" and that there was not more opportunity for community engagement and input.
  • The Gainesville City Commission and Representative Clemons serve many of the same people. I am hopeful that useful amendments can be made to the bill before it passes as the representative indicated he would welcome. I look forward to a bill that works for our community and that we can all take pride in.
  • The Gainesville City Commission and our charter officers and staff are working hard to deliver substantial, bold changes to our utility transfer and subsequently to the city's budgets.
  • I am concerned at some of the rhetoric surrounding the issue in the media, and believe that the community expects us to all be working together to best serve the people of Gainesville.
  • GRU is a highly-rated ("Aa3" by Moody's, "A+" by Fitch and "A" by S&P municipal utility that receives annual clear/unqualified external audits. The idea that our utility or the larger City of Gainesville is somehow "bankrupt" or that there has been any sort of "malfeasance" is simply not true and verges on being disrespectful to our community.

Contact information for the Alachua County Legislative Delegation is available here.

04/14/23

  1. We need each of you to write letters and/or make phone calls to the State Affairs Committee members. The full contact list is PDF icon attached (with an easy-to-copy-and-paste email list here). Please see suggested verbiage below. 
  2. We want to have a strong public showing at the State Affairs Committee meeting. If you can travel to Tallahassee for the Wednesday morning meeting, please info [at] lwv-alachua.org (let LWVAC President Janice Garry know)NOTE: The meeting time is still pending and the date is subject to change. 
  3. We need strong attendance, either in person or on Zoom, to show support for continued city commission governance at the joint meeting with the City Commission, Utility Advisory Board, and Legislative Delegation on April 21st at 6:00 p.m. in the Gainesville City Hall. Go to the Public Meeting Calendar for details on how to attend. 

Subject line: Allow Joint Legislative Auditing Committee (JLAC) and the city commission to address GRU debt

The City Commission has earnestly listened to the counsel of the JLAC and yesterday agreed to a drastic reduction in the General Fund Transfer from GRU. This money will be used to pay down GRU debt, creating a path toward 30% debt to equity ratio in 10 years. If passed, HB 1645 will not allow the city commission to complete and implement the plan to reduce GRU’s debt in collaboration with the Joint Legislative Auditing Committee. We want time to allow the process to unfold before making a drastic change in how GRU is governed.

Subject line: Allow voters to decide on Gainesville Regional Utilities governance

HB 1645 has bypassed voters who defeated a change in Gainesville Regional Utilities governance at the polls in 2018 by 60%. Allow the voters to decide by offering voters another referendum.

Subject line: HB 1645 is state overreach on local governance

It is government overreach to have the governor appoint a board that would be responsible for a city-owned asset. Further, HB 1645 does not define a working relationship with the Gainesville Regional Utilities Authority and the city commission. Removing GRU from city management without a defined working relationship with the authority is a recipe for chaos.

Subject line: HB 1645 is not a recipe for reduced energy costs

HB 1645 is being sold to the public as a means of lowering energy costs. That pitch does not consider the complex factors that affect the cost of providing energy. Maintaining a reliable grid, adjusting the erratic cost for fuel, consistent payments for bonds, all go into the formula for energy bills. Further, some 60% of Gainesville properties are off the tax role as they are owned by state or non-profit entities. The annual transfer of funds from GRU helps to close the gap between the cost of city services and the limited property tax entities. Significantly lessening the GRU funds transfer could significantly lessen city services, including first responders.

Here is a message that was sent to the State Affairs committee today by a leader in the organizing group that is opposing the GRU Takeover Bill:

I am writing to ask that the State Affairs Committee members pull or vote against Local Bill HB 1645. The City of Gainesville Mayor and Commissioners are already working with the Joint Legislative Affairs Committee to address the stated GRU budgetary concerns expressed by Representative Clemons. This Local Bill is an affront to their collaborative work and usurps those legislators’ authority to address these concerns. Further, this bill directly disregards the express wishes of Gainesville’s citizens, who voted against a nearly identical measure in 2018. Regretfully, this measure is an even greater assault upon representative democracy by not only removing the right to vote on the proposal (as we had previously), but also removing the right to elect the members of the board to be created.

Not only is this local bill the wrong approach at the wrong time for Gainesville, it also sets a dangerous precedent for all municipal electric utilities. The people of those communities and the employees of those utilities deserve for their legislators to have an opportunity to carefully consider what this bill means for them. Passing this bill now, in its current form, could potentially create many unfortunate unintended circumstances for all Florida municipal electric utilities and the citizens they serve.

If you choose to proceed with this bill, please consider amending it such that it would respect local home-rule and the normal democratic process by requiring a referendum vote by the customers of GRU.

Here is a list of the State Affairs Committee member emails (excluding Mike Caruso) for an easy copy-and-paste option:

lawrence.mcclure [at] myfloridahouse.gov

alex.rizo [at] myfloridahouse.gov
michele.rayner [at] myfloridahouse.gov
robin.bartleman [at] myfloridahouse.gov
dean.black [at] myfloridahouse.gov
james.buchanan [at] myfloridahouse.gov
demi.busattacabrera [at] myfloridahouse.gov
joe.casello [at] myfloridahouse.gov
anna.eskamani [at] myfloridahouse.gov
juanf.barquin [at] myfloridahouse.gov
ashley.gantt [at] myfloridahouse.gov
griff.griffitts [at] myfloridahouse.gov
jeff.holcomb [at] myfloridahouse.gov
jim.mooney [at] myfloridahouse.gov
jenna.persons [at] myfloridahouse.gov
juancarlos.porras [at] myfloridahouse.gov
spencer.roach [at] myfloridahouse.gov
felicia.robinson [at] myfloridahouse.gov
rick.roth [at] myfloridahouse.gov

john.temple [at] myfloridahouse.gov

04/10/23

  1. Email AND call ALL five local legislative delegates
  2. Email AND call members of JLAC

1. Email AND call ALL five local legislative delegates

The Gainesville City Commission has asked people to contact the legislative delegation, listed below, to voice their views. In keeping with league positions, suggested subject lines and messages are:

Oppose GRU Takeover Bill - Allow JLAC Plan:

Rushing this bill is unnecessary. The city commission should have an opportunity to make a plan to alleviate GRU's debt to present and implement with the Joint Legislative Auditing Committee. If that is unsuccessful, a referendum could go on the ballot the next election cycle to let the voters decide on GRU governance.

Oppose GRU Takeover Bill - Hands Off Our Assets:

The state should not have control over a local asset. A board with no oversight or obligation to work with the city for decision-making should not be in control of a large Gainesville asset. At a minimum, any decision-making body should be chosen by Gainesville governance or voters and have checks and balances on decision-making.

Oppose GRU Takeover Bill - Community Concerns: 

The GRU Takeover Bill has been introduced, in part, to address GRU's debt, despite plans already in place that are reducing the debt and an increased focus under the jurisdiction of the Joint Legislative Auditing Committee's instructions to create a plan by October 1, 2023. If the debt reduction is not managed responsibly, an increase in property taxes or a decrease in services could be the only mediums for fiscal solvency. GRU is an integral part of Gainesville. Its governance should not be directed by an appointed board with no oversight that could have an enormous impact on the city, businesses and residents.

The Alachua County Legislative Delegates are:

Florida House:
Speaker Pro Tem Chuck Clemons; chuck.clemons [at] myfloridahouse.gov
422 The Capitol
402 South Monroe Street
Tallahassee, FL 32399-1300
Phone: (850) 717-5022

Rep. Yvonne Hinson; yvonne.hinson [at] myfloridahouse.gov
1302 The Capitol
402 South Monroe Street
Tallahassee, FL 32399-1300
Phone: (850) 717-5021

Rep. Chuck Brannan; chuck.brannan [at] myfloridahouse.gov
222 The Capitol
402 South Monroe Street
Tallahassee, FL 32399-1300
Phone: (850) 717-5010

Florida Senate:
Sen. Keith Perry; perry.keith.web [at] flsenate.gov
406 Senate Building
404 South Monroe Street
Tallahassee, FL 32399-1100
Phone: (850) 487-5009

Sen. Jennifer Bradley; bradley.jennifer.web [at] flsenate.gov
410 Senate Building
404 South Monroe Street
Tallahassee, FL 32399-1100
Phone: (850) 487-5006

 

2. Email AND call members of JLAC

In addition to contacting the local delegates, messages to the Joint Legislative Auditing Committee (JLAC), listed below, with your views regarding the GRU Takeover Bill are also encouraged. In keeping with league positions, a suggested subject line and message are:

Allow Gainesville City Commission to Create Debt Reduction Plan

The newly seated Gainesville City Commission has earnestly listened to the counsel of the JLAC regarding GRU’s debt. Although there is already a debt reduction plan in place, there is room for improvement. There is always room for improvement in complex matters. The Commission can most effectively work with JLAC if they retain governance over GRU. The bill that is working its way to committee significantly disrupts the process. The idea that a new, appointed board could step in and effectively manage GRU’s debt does not make sense.

In the capacity of your influence on the GRU bill, please encourage the legislative delegation to allow GRU governance to remain with the City Commission and work with JLAC on an effective debt reduction plan.

The JLAC Members are:

House Members:
Alternating Chair: Representative Michael A. “Mike” Caruso (R)

Representative Daniel Antonio “Danny” Alvarez, Sr. (R)

Representative Christopher Benjamin (D)
Representative Peggy Gosset-Seidman (R)
Representative Dianne “Ms Dee” Hart (D)
Representative Vicki L. Lopez (R)

Senate Members:
Alternating Chair: Senator Jason W. B. Pizzo (D)
Senator Jason Brodeur (R)
Senator Tracie Davis (D)
Senator Nick DiCeglie (R)

Senator Corey Simon (R)

Here is a list of their emails for an easy copy-and-paste option:

mike.caruso [at] myfloridahouse.gov
danny.alvarez [at] myfloridahouse.gov
christopher.benjamin [at] myfloridahouse.gov
peggy.gossettseidman [at] myfloridahouse.gov
dianne.hart [at] myfloridahouse.gov
vicki.lopez [at] myfloridahouse.gov
pizzo.jason.web [at] flsenate.gov
brodeur.jason.web [at] flsenate.gov
davis.tracie.web [at] flsenate.gov
diceglie.nick.web [at] flsenate.gov
simon.corey.web [at] flsenate.gov

 
This action alert is related to which committees: 
Natural Resources