Eustis commission approves $74,000 Duke Energy audit closing agreement after extended debate

The City Commission of the City of Eustis on Feb. 20 approved Resolution 25-13, a settlement with Duke Energy that resolves an audit finding for $74,000 related to franchise-fee remittances.

City staff and Duke Energy officials described the amount as a one-time settlement tied largely to properties that were annexed and were not charged or remitted correctly during a transition to a new billing system. Tom, a city staff member who spoke during the public hearing, said the figure "includes things like properties that were annexed that didn't immediately get charged the proper amount." Duke Energy's government-relations manager, Nancy Dodd, told the commission she and the company's subject-matter expert were available to answer questions.

Why it matters: Commissioners debated whether the city should accept the settlement or pause to hire an independent auditor to search for potentially larger liabilities. Some commissioners and members of staff said prior audits and legal review supported Duke's calculations; others said the consultant Tryon (an outside auditor engaged earlier) had raised concerns suggesting higher potential amounts and that the city owed it to taxpayers to be thorough before closing the matter.

During the hearing, Sasha (city legal/staff) and Duke representatives explained that the disputed $74,000 was not money that Duke withheld from the city but monies that had been collected and not properly remitted for certain accounts. Nancy Dodd summarized Duke's position: "[W]e would be collecting money from nonprofits and governmental" customers only under a different interpretation; she added that Duke had been applying the franchise agreement consistently across the state.

Several commissioners said they wanted more confidence the city was not "leaving any money on the table," and asked for additional review before signing away possible claims. City staff said the legal opinion reached in discussions with Duke's counsel supported the settlement as appropriate given the contract language and historical practice. Tryon's representative (the outside consultant originally engaged) did not concur with Duke's interpretation and was terminated before the final agreement was reached; the commission debated the effect of that termination on the reliability of Tryon's findings.

At the end of the hearing, a motion to approve Resolution 25-13 passed with a roll call of four ayes and one no. The transcript records the vote as: Vice Mayor Ashcraft — Aye; Commissioner Asvadi — No; Commissioner Lee — Aye; Commissioner Holland — Aye; Mayor Hawkins — Aye.

What the resolution does: Resolution 25-13 approves the Duke Energy audit closing agreement and repeals any conflicting prior resolutions. The settlement amount in the agreement is $74,000; the agreement also provides for an effective date and finalizes the audit process as represented in the meeting materials.

Next steps: The commission approved the agreement despite calls by some members for a deeper independent review. Commissioners discussed but did not direct new litigation or additional immediate audits at the meeting; staff indicated they would continue communication with Duke regarding future application of the franchise agreement and possible contract revisions going forward.

Votes at a glance: Resolution 25-13 — motion to approve (mover and seconder not specified on the record), outcome: approved (yes 4, no 1).