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County May Get $6 Million To Purchase Aloha Utilities

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By CHRISTIAN M. WADE, The Tampa Tribune

Published: November 30, 2007

NEW PORT RICHEY - A bill being considered by Pasco County legislators would provide $6 million in state funding for the county to purchase Aloha Utilities.

Proposed by state Sen. Mike Fasano, an Aloha customer and critic, the legislation also would require county commissioners to issue bonds to cover the remaining cost of acquiring the New Port Richey-based water and wastewater provider.

The state money, to be used as collateral for a county government loan, would be provided by the Florida Department of Environmental Protection.

A draft of the legislation calls Aloha a "threat" to the environment and its customers.

"The utility's lack of a working customer service program and lack of responsiveness to customer complaints has created a breakdown in trust that is irreconcilable," the proposal reads.

Aloha serves about 25,000 households in Seven Springs and Trinity and is one of several private providers that county officials have been eyeing for possible acquisition.

Whether Aloha is even interested in selling its franchise is not yet known. A spokeswoman for Aloha president Steve Watford couldn't be reached for comment Thursday.

The company's legal representatives have said they would challenge any attempts by state officials to remove the utility's franchise and turn over its service area to the county.

Fasano, R-New Port Richey, also has asked the state Public Service Commission to remove Aloha's area, arguing the utility has failed to comply with a 2006 settlement with its customers that's aimed at resolving more than a decade of water quality issues.

So far, state regulators have not moved forward with the "deletion of territory" process.

If Pasco's nine-member legislative delegation approves the Aloha bill, it would have to be passed by the state House of Representatives and Senate next year, then signed by Gov. Charlie Crist.

The legislation is one of four local bills to be voted on at next week's legislative delegation meeting chaired by state Rep. John Legg, R-Port Richey. The others are:

• A bill aimed at reducing sinkhole insurance rates in Pasco. Legg's proposal would require the Florida Office of Insurance Regulation to take into account county sinkhole ordinances when it approves rates which, in theory, would force private insurers to lower premiums.

•A tentative bill strengthening the county's building codes to require stronger foundations for all new construction. The legislation is aimed at reducing the number of sinkhole claims by improving housing standards and stock.

• A repeal of a state law, approved in the 1970s, that requires special liquor licenses for restaurants in Pasco that can accommodate more than 200 customers and have more than 4,000 square feet.

The delegation will meet from 6 to 8 p.m. Thursday in the performing arts center at Pasco-Hernando Community College, 10230 Ridge Road in New Port Richey.

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

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