Orange County rejects Pluris Wedgefield takeover after FGUA walks away

Orange County rejects Pluris Wedgefield takeover after FGUA walks awayOrange County Utilities has concluded that buying the Pluris Wedgefield system is not financially feasible without a dedicated funding source, despite residents facing combined water and wastewater bills nearly three times county levels. The county says it will hold the private utility accountable, oppose rate increases and respond to any service or environmental emergency.

FGUA, which operates 98 systems in 15 Florida counties, declined to acquire Pluris Wedgefield after identifying at least $50 million of capital needs.

Orange County previously estimated $59 million would be needed to bring the system to county standards; a $35 million community assessment would still leave a best-case $24 million funding gap, assuming no purchase price.

At 7,000 gallons per month, Pluris customers are due to pay $231 from October 1, compared with $77 for Orange County Utilities customers, according to county staff.

The county will oppose any Pluris rate case at the Florida Public Service Commission and says it can provide reimbursable emergency support through FloridaWARN if water, wastewater or environmental service fails.

If Pluris abandons the utility, state law requires the county to petition the circuit court for appointment of a receiver, although receivership would not itself constitute permanent county ownership.

Orange County Utilities has recommended that Pluris Wedgefield remain responsible for its privately owned water and wastewater systems after the Florida Governmental Utilities Authority (FGUA) decided not to proceed with an acquisition. The recommendation leaves Wedgefield residents facing the prospect of continued service from Pluris, whose combined water and wastewater charge for 7,000 gallons is set to reach $231 a month from 1 October. Orange County’s equivalent charge will be $77, according to the Utilities Department. Staff said the Pluris bill is 199% above the county level and described it as the highest in Florida. The county’s utility director said FGUA had assessed the system following earlier discussion of a potential municipal service benefit unit (MSBU) vote. FGUA operates 98 systems in 15 Florida counties and serves more than 120,000 customers. It found “significant and immediate” capital requirements that could not be supported by current system revenues, staff said, and estimated needs of at least $50 million. Orange County’s earlier estimate to bring the system to county standards was $59 million. Staff said FGUA requested that Orange County contribute $30 million towards repairs, a proposal the county rejected. The utility director told commissioners that FGUA said it had not previously sought a host government advance payment for repairs in its other acquisitions. FGUA subsequently withdrew from negotiations in July. For Orange County, a resident-funded $35 million MSBU would represent the maximum contribution community leaders believed owners could accept. The proposed 20-year assessment would add about $28 a month to existing bills. But staff said this would still leave a best-case $24 million deficit, on the assumption that Pluris transferred the system at no cost. The board could theoretically close that deficit through county utility rates, general taxpayer funding, grants and appropriations, or a higher Wedgefield assessment. Staff estimated spreading the gap across county utility customers would amount to a one-time $78 charge for a single-family residential equivalent unit, while a countywide property-tax approach would require about 0.1 mills, or approximately $25 per taxpayer. A full $59 million Wedgefield assessment would add about $124 a month over current charges, which staff said the community opposed. The utility director said Orange County did not have a funding source or desire to “bail out” the private company. The staff recommendation is therefore for Pluris to continue owning and operating the systems, while the county opposes any further rate increases before the Florida Public Service Commission. Staff said Pluris had owned the facilities for 17 years and had historically pursued reactive maintenance with limited reinvestment. The county nevertheless committed to emergency intervention if service fails. It said it would send personnel and equipment through the FloridaWARN mutual-aid framework to restore water or wastewater service, address a sanitary sewer overflow or mitigate an environmental emergency, with costs billed back to Pluris. Staff identified the wastewater treatment plant as the principal concern in a potential failure. The facility’s reclaimed-water output is supplied largely to the golf course, but the system’s magnetic ion-exchange drinking-water treatment process generates a salt brine that enters the wastewater plant and contributes to high salinity in the reclaimed water. The golf-course owner has experienced turf loss and replaced grass with more salt-tolerant varieties, staff said. A Pluris abandonment would trigger a separate statutory process. Under Florida Statute 367.165, the utility would need to provide at least 60 days’ notice to Orange County and the Public Service Commission. The county would then have to petition the circuit court for a receiver to ensure uninterrupted operation. County legal staff stressed that a receivership could be assigned to Orange County or another qualified entity, and would not automatically require permanent county acquisition.