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County May Lack Money For Aloha

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By CHRISTIAN M. WADE, The Tampa Tribune

Published: December 8, 2007

NEW PORT RICHEY - To hear the politicians tell it, Aloha Utilities is up for grabs.

In recent weeks, a flurry of movement from state lawmakers has seemed to indicate that Pasco County officials are nearing a deal to buy the private tap water and wastewater provider, one of several utilities they have been eyeing for possible acquisition.

Leading the charge is Sen. Mike Fasano, R-New Port Richey, an Aloha customer and longtime critic who, two weeks ago, asked the Florida Public Service Commission to turn the utility's service area over to the county.

And Thursday night, Pasco's legislative delegation endorsed a bill that would, if approved by the Legislature and signed by the governor, provide $6 million to the county as seed money to purchase New Port Richey-based Aloha.

Fasano called the company a "threat" to the environment and the health of its 25,000 customers.

"Aloha is one of the worst corporations in this country," the Republican lawmaker said.

Thing is, there's no indication that Aloha is even interested in selling its franchise or, for that matter, whether the county could afford the multimillion-dollar price tag.

Aloha President Steve Watford has declined to comment on the issue and previously pledged to fight attempts by the state or county to take over his franchise.

County Commissioner Ann Hildebrand said she and other senior county officials met with Watford several weeks ago to discuss their interest in acquiring his company. Aloha made no commitments during that meeting, she said.

"The best of all worlds is a willing seller and a willing buyer," Hildebrand said. "We're not there yet. They told us that they would get back to us, but we haven't heard from them."

The $6 million in seed money wouldn't go far in buying the utility, she said. And Hildebrand doubts the allocation will even make it to the governor's desk.

John Wharton, Aloha's attorney, said Thursday night that the efforts by state lawmakers to intervene are hurting the discussions between Aloha and the county.

"It's not helpful," he said.

Wharton also took issue with the wording of Fasano's legislation.

"I have never seen a bill with this kind of language," Wharton told the delegation. "It would probably be libelous if it were not for the protection that the body that you all serve on has."

County officials have pushed for years to tie small utilities into regional water systems amid complaints from customers about poor water quality and service, and high rates.

In 2001, Pasco County Utilities Services - which pumps an average of 20 million gallons of water a day to about 100,000 residents - looked at buying 14 local utilities, including Aloha. But after months of negotiations, the agency managed to acquire only three of them.

Aloha customer John Andrews said he supports the county's efforts to buy the water provider.

"It's time for bold new actions by our government to end the suffering," he told the legislators. "The key words are deletion, removal and acquisition."

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com.

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