Clay Electric delivers ‘hard no’ on franchise fee

BY MARK J. CRAWFORD

Telegraph Editor

STARKE — Seeing no way forward to negotiate an electric franchise fee to fund fire rescue services, Bradford County commissioners will move on to considering a special assessment.

While Florida Power and Light was willing to agree to add a 6% franchise fee to its bills, Clay Electric was not, citing overwhelming opposition from its members.

County commissioners saw the franchise fees a fair way to raise money for services like fire rescue because it would have been paid by customers from both utilities and could have lowered property taxes and the cost of a future special assessment for fire rescue.

The discussion followed a report from Chief Ben Carter about how busy fire rescue has been lately. As of Aug. 17, Carter said they had responded to 117 fire calls (medical response calls included) in August and 334 EMS calls. Carter said on multiple days over the past two weeks, fire rescue has been stacking calls and requesting assistance from outside agencies. This is due to the volume of calls as well as trucks breaking down and being temporarily out of service. 

“It’s just been crazy,” Carter said, describing a screenshot he sent to the county manager showing all units, fire trucks included, in service while hospital transfers were being put on hold. HCA was experiencing the same pressure in Gainesville and could not assist.

“Once our call volume in the county started slowing down, we were able to get to those transfers and get those out of there as well. So, crews have been working hard. They’ve been having some sleepless nights, and it’s been a lot of long days,” he said.

Commission Chair Diane Andrews shared correspondence received from Clay Electric after she and County Manager Scott Kornegay met with the cooperative. During that meeting, Clay Electric shared the results surveys showing most respondents were opposed to a franchise fee. 

In the letter to the county, the utility stated, “Clay Electric has no interest in entering into an agreement with Bradford County because we have such a high level of our members opposed to it. CEC serves over 6,300 homes and businesses in Bradford County, and they are overwhelming opposed to us agreeing to a fee.”

The county questions the sample size of the surveys versus Clay Electric’s total customer base as well as the language of the survey. 

“All I know is we went over there to negotiate in good faith, and we were given a hard no,” Kornegay said.

“I don’t accept that from them,” Commissioner Carolyn Spooner said, requesting more information about the survey.

“I agree with you completely, and we’re looking at not only the things you just mentioned, but some other avenues as well,” the county manager said.

Andrews talked about the need for emergency services in light of her own family’s need.

“When it hits home and it’s you or your family, you understand the need for this,” she said. “Imagine calling for help and imagine just standing and watching your house burn down. We have to find a way to fund this, and it’s going to be us — all of us —that have to do it.”

According to Andrews, further discussion of a special assessment is coming.

Commissioner Danny Riddick read his response into the record.

“Board, I cannot believe how hard Clay Electric is fighting us. They know how we are trying to provide good service for the citizens of our county. They know we are maxed out at 10 mills and that this is the best and fairest tax we can put in place. I know this because Clay Electric provides good service to their customers, and from time to time, not wanting to, they have to go up on their rates to keep the same service,” Riddick said.

He continued, “What is confusing is that we had a franchise fee in place years ago when we really needed it. And what really blows my mind is there are people sitting on the Clay Electric board who could help us, but instead all they do is call and complain about their road being too dusty, and when are we going to do this or that, knowing we need help, and we need money to do this.”

Whatever it takes, he said, the county needs to move forward with franchise fees.

Andrews said all of Riddick’s points were made to Clay Electric.

“We laid our hearts on the line,” she said.

Clay Electric justified its position in its letter, saying that as a member-owned, nonprofit utility, it has a statutory right to use county right of way, and a franchise fee would be asking members to pay for something that is free. The cooperative claims most of its facilities are on private property.

The letter continues, “For the past 23 years this conversation has continued through various boards and county managers. The county needs money, and Clay Electric members remain overwhelmingly opposed to the franchise fee being added to their electric bills.

“Polls conducted in 2000 and 2O21 show that opposition hasn’t changed.

“During all those years Clay Electric remains a good neighbor and community partner in Bradford County.

“Clay Electric is an active member of the local chamber of commerce. Our employees are actively involved in local civic clubs and community events. We have sponsored scholarships and field trips to Tallahassee and Washington, DC, for Bradford County youth for the past 50 years.

“Clay Electric’s Foundation has given over $307,375 to Bradford County nonprofits since 2017. Organizations like Communities in Schools, ARC, Kiwanis Club, Concerned Citizens Summer Camp, Lake Area Ministries.

“Clay Electric isn’t a free rider as we are one of your top five largest taxpayers. Last year, we paid $356,930.88 in property taxes to Bradford County.”