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Commission Approves Aloha Sale

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By KEVIN WIATROWSKI

kwiatrowski@tampatrib.com

Published: October 8, 2008

DADE CITY - Customers of Aloha Utilities Inc. could see some relief in the coming months from the smelly, black water that has fouled their sinks and stained their bathtubs.

Pasco County commissioners Tuesday approved the sale of Aloha - a private water supplier whose customers say its water and customer service both stink - to the Florida Government Utility Authority, a public group created to buy private utilities across the state.

"This was a banner day," said Commissioner Ann Hildebrand, who represents southwest Pasco.

Aloha has about 20,000 customers in the Seven Springs and Aloha Gardens sections of Hildebrand's district.

Under the deal now pending with Aloha, FGUA will spend $90.5 million to buy the company - a $45 million reduction from Aloha's original asking price. The sale will become final Dec. 17. New rates will take effect the same day, said FGUA attorney Brian Armstrong.

Those new rates will be higher than what Aloha customers currently pay but significantly lower than FGUA's estimate that Aloha would have to nearly triple of its current rates to about $140 a month for water and sewer - possibly as early as next year - to recover the costs of recent investments.

Aloha won a 134 percent increase earlier this year from the state Public Service Commission.

Under FGUA, Aloha would charge about $88 per month for water and sewer. Those rates would continue to rise at 5 percent to 6 percent a year, Armstrong said.

Improving Aloha's water quality won't happen overnight, FGUA officials warned.

The authority will spend the next two years switching the water in Aloha's pipes from its current well-based system to the county-supplied water bought from Tampa Bay Water, said Gary Deremer, president of New Port Richey-based U.S. Water Services Corp.

U.S. Water will manage Aloha's day-to-day operations for the FGUA.

The FGUA has proposed spending about $16 million to improve Aloha's system and water quality.

One of its first steps will be to shut down two of the company's wells that are the source of the "rotten egg" odor that has plagued the system for more than a decade, Armstrong said.

The authority also will build four tie-ins with the county water system, improve Aloha's sewer pumping system to avoid overflows and install odor-control devices in the system, Armstrong said.

Residents told commissioners they're willing to pay higher rates if FGUA gives them better service.

"If we're going to pay higher rates, we'd prefer to have water we can drink," said Donna Vaurio.

Reporter Kevin Wiatrowski can be reached at (813) 948-4201.

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