Private Utilities Skip Annual Reports

Sarasota County government is threating to revoke three utility franchises’ agreements if they fail to complete required paperwork.

Lake Forest Utilities and Sylvan Lea, Inc. are two companies that have not filed their 2010 reports. Bee Ridge Utility Corporation is a seven-year offender, which continued sending in its franchise fee but neglected to file the annual report supporting their fee structure. 

Utilities are usually monopolies — one electricity provider, or one sewer system per area. When Sarasota County was the growth capital of the nation, private utility companies proliferated. To make sure they did not gouge their customers, and paid an appropriate franchise fee to the county, they had to file annual financial reports.

In the late 1970s and through the 1980s, the county bought up a substantial number of these private monopolies to create a countywide water and sewer system. Only five private utilities remain. Three are behind in the paperwork, and one — Bee Ridge — hasn’t filed since 2004.

“How did we let it go on for so long?” asked Sarasota County Commissioner Christine Robinson. Staff’s response was to look forward, not back. “We can’t wait any longer. They said they were going to do it, but they didn’t do it,” said George McFarland with county utilities. “They’ll either do it or we’ll revoke their franchise.”

The Bee Ridge firm provides only sewer service, with a plant located southwest of Bee Ridge Road and Sawyer Road. It provides service to the Bee Ridge Medical Center and the Parkstone Condominiums.

Bee Ridge Utility Corporation operates out of a post-office box in Hallandale, on the east coast of Florida. County staffers sent letters to the box, but received nothing in return. Patch could not reach any corporate officer from the three utilities for comment. 

County commissioners authorized staff to conduct an independent audit “to determine the appropriate amount of franchisee fees and whether Bee Ridge is in an over-earning situation,” a county memo states. “Bee Ridge will be responsible for all costs related to the audit as well as any penalties and collection costs.”

Commissioners also called for a new policy to create a system of checks and balances to ensure no utility can go for years without a financial review.

 “This sets a policy that gives [staff] the authority – at the first hint of non-compliance – to say we’re going to take action right now,” Commissioner Jon Thaxton said. 

In addition to the lack of annual reports, the same three are operating with expired franchise agreements. It costs $500 to file the application.

Lake Forest and Sylvan Lee representatives met with county staff and will seek to renew their franchise early next year. The Bee Ridge Utility Corporation remains incommunicado.