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Highlands Today

Sebring Battles Sun 'N Lake Over Sewer Project

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By MARC VALERO

Highlands Today

Published: August 15, 2008

SEBRING - It's not even in the city limits of Sebring or in the jurisdiction of Sun 'n Lake, but a proposed sewer project could lead to a legal battle between the two entities.

The Sebring City Council wants legal action to block the Sun 'n Lake Improvement District from providing sewer service to a proposed assisted living facility. Advanced Developers LLC is proposing to build the facility in the unincorporated area of the county, at 4029 Schumacher Road.
City Attorney Bob Swaine said Wednesday that the council has instructed him, "to file the appropriate legal documents to stop Sun 'n Lake from supplying water or sewer into an area that they don't have a right to expand into."

The area in dispute may actually be within the (sewer) franchise area of Highlands Utilities Corporation (HUC), according to Swaine.

Highlands Utilities and the city litigated the issue on who has the right to provide water and sewer services in that area, he said. It was settled with areas specified as exclusive to HUC and other geographic areas where HUC and the city could both offer sewer service.

On Aug. 5, the Sebring City Council approved an interlocal agreement prepared by the county. The city added a few conditions to the agreement, which calls for the city to provide water and sewer service to the proposed facility.

The interlocal agreement is a requirement in the county's application for a Community Development Block Grant, which will help pay for off-site improvements related to the proposed facility.

The Highlands County Commission on Tuesday awarded the sewer utility service agreement to Sun 'n Lake with the city of Sebring as a backup.

Then at its special meeting Tuesday afternoon, the Sebring City Council directed the city attorney to file an injunction to prevent Sun 'n Lake from providing utility service to the proposed facility.

Also, council approved the interlocal agreement with the county to be the backup utility provider.
Swaine said the city agreed to be the backup provider because "we did not want the county to end up losing the grant opportunity if Sun 'n Lake was not able to expand to service the area and then the failure of having an appropriate interlocal agreement might cause the grant to fail."

Sun 'n Lake General Manager Al Grieshaber, Jr. said Sun 'n Lake wants to supply sewer service to the proposed facility, "because it's cheaper for the developer and the residents. We think it's appropriate that we allow the residents and the developer to have an opportunity to use our utility services for less cost.

"Sun 'n Lake can do it for 53 percent less than the city of Sebring. Is that fair to charge people more?"

Adding more customers to a utility that is operating within capacity makes it more economical, Grieshaber explained.

"We added no conditions to the proposed county-prepared interlocal agreement where the city of Sebring added five conditions," he said. Once there was competition, Sebring removed its conditions from the agreement.

Sun 'n Lake only asked the county commission on Tuesday for the opportunity to compete to provide utility service to the proposed facility, he said.

Highlands Today asked the city if its sewer rates and fees are significantly higher than Sun 'n Lake's as Grieshaber stated.

Former Sebring City Administrator Bob Hoffman said Grieshaber is using his figures.

Typically, once the grant is approved, an engineer is hired, but it hasn't gotten to that point yet for the city, he added.

Sun 'n Lake is an internal improvement district, Hoffman said. "What that means to me is that the assessments they collect and the revenue they get from their water and sewer is intended to go to fund the internal area of Sun 'n Lake."

Now, Sun 'n Lake is venturing into an area the city of Sebring believes it has legal right to serve, he said.

"We are getting numerous calls and information from homeowners who live in Sun 'n Lake who are not pleased with their board's action or Mr. Grieshaber's action on extending the utilities outside their service area," Hoffman said. "They are telling us they have deficiencies in their system that they need to address we're told that their assessments and rates are proposed to go sky high in a few months.

"So, it just appears from our point of view that Sun 'n Lake has a lot of internal problems that they need to address before they venture into what we consider our territory."

Marc Valero can be reached at 386-5826 or mvalero@highlandstoday.com

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