Local

Jax Committee plans year-long process to review JEA contract

The first meeting of a special Jacksonville City Council committee on the next interlocal agreement with JEA included a clear message.

“Let’s do it right, let’s get every question answered,” says Committee Chair Bill Gulliford.

JEA's Finance and Audit Committee has approved a contract proposal that includes five pillars, like lowering their annual contribution to the City. It will get a vote by the full JEA Board next week.

While initially JEA had hoped to see this proposal- if approved by the Board- move through City Hall in a manner of weeks, Gulliford says it will be months instead. JEA CEO Paul McElroy says the deadline for hammering out a deal in time to have one in place before the current one lapses is April 2016.

While JEA is bringing a defined proposal to the table, the Committee members made it clear Tuesday that they have plenty of questions and provisions they want to see addressed in the final deal.

“We can bring the two paths together and make some progress,” McElroy says.

Gulliford wants to know whether there are opportunities to receive a return on some of the capital investment the City has made to JEA. Councilman John Crescimbeni- who isn’t on the committee but attended the meeting- wants a more clear picture of the revenue generating opportunities JEA is exploring and how the City should be partnered in that. Councilman Matt Schellenberg wants to see a comparison of JEA rates over other utilities entirely to determine whether this is the best investment for the City.

JEA employees showed up in force for this Committee meeting. Their main concern was proposed changes to their pension system. The contract which is pending a vote by the JEA Board includes opening the door to JEA setting up an independent pension system.

“We cannot take any benefit away that’s been earned, any change will have to be negotiated,” McElroy says.

McElroy believes current employees are not interested in the current defined benefits program they have. Further, JEA is interested in consolidating all the responsibility associated with the pension plan internally, rather than overlapping with the City.

The Committee plans to meet once every two weeks as they begin to dive in to both the JEA proposal and their independent ideas.

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