Crossville CIty Council approves merger talks with South Cumberland Utility District

Crossville city council voted unanimously to move forward with seeking a possible merger between the city's water department and South Cumberland Utility District.

The city has previously merged with the Catoosa Utility District and that appears to have been a successful and the SCUD merger is expected to be similar. The city is promising a $10 reduction in the bill to each water meter initially and eventually, the water bills would match the outside city water rates.

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If the proposal is agreed to then it would create the South Cumberland Utility District of the City of Crossville. The benefits of the merger according to information distributed with the agenda include a reduction of water rates and a decrease in redundant capital for both SCUD and the city.

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Under the proposal, the management and employees would remain the same. Directors would become an advisory board and continue to be appointed by the County Mayor. The proposal includes a decrease of $10.00 per meter per month and returning some $46,000 a month to customers for a total of $552,000 per year.

The city is proposing to pay off the debts of the operation and save approximately $100,000 per year. Synergies of operation would include cross training of employees, convert software and convert retirement plans and health insurance.

Council member J. H. Graham, who also serves on the Lake Tansi POA board made the motion to begin merger talks with the city manager, city attorney and Graham involved in those talks. The motion received a second from council member Danny Wyatt.

The motion was approved unanimously.   

April Regular Council Meeting to look at Property Purchase, SCUD merger and Crab Orchard water sales.

After a work session and a special called meeting last week, the Crossville city council meets for their regular April meeting Tuesday, April 10.

The regular agenda starts at 6:00 PM and is preceded by the Beer Board meeting at 5:45 and the Audit Committee meeting at 5:15 PM.

Several items on the agenda have been on the council's agenda a few times recently including the proposed purchase of the old handle mill property between Thurman Avenue and Webb Avenue, a proposed merger of the city water department with the South Cumberland Utility District and sale of water to the Crab Orchard Utility District.

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The city has been looking at the possible purchase of property in the downtown area for additional parking for some time and seems that the first choice is the remaining portion of the old Turner Day and Woolworth handle mill next to the library. The city is looking to purchase the property currently owned by local resident Ronnie Webb along with the railroad right of way that runs through the property.

While several offers have been discussed, during the work session the offer appears to be that the city would offer $250,00 for the property including the railroad right of way that Mr. Webb has already been negotiating to acquire.

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Council will consider beginning negotiations toward a merger with the South Cumberland Utility District (SCUD). The city council has discussed the merger possibility for the last several months and what benefits might be realized to the SCUD customers and the city. The action proposed on the agenda is to approve the city manager, council member J. H. Graham and the city attorney to begin working with the utility district's board on a possible merger.

The council has also been discussing the possibility of selling water to the Crab Orchard Utility District as their water demand approaches the production capability. Because a connection between the two systems was taken up many years ago, the city is looking at the expenditure of $2,100 to tie the systems back together and allow for the sale of water.

Also on the agenda is a report from city manager Greg Wood on the progress of the retail development consulting firm r360 that the city has contracted with hoping to attract new business to Crossville. Council will also discuss the city manager's annual performance evaluation.   

March City Council Agenda looks at SCUD Merger, Handle Mill property, and new rules on dog tethering.

Crossville city council holds their regular March meeting Tuesday March 13 and will take up topics including a possible merger with the South Cumberland Utility District, discussion of possible purchase of the old Handle Mill property next to the Art Circle Library, upgraded traffic signal at West Avenue and Fourth Street and an ordinance regulating tethering of dogs.

Crossville City Hall

With several meetings and public hearings set for Tuesday, the audit committee meeting begins the evening at 5:15 PM and is followed by a public hearing at 5:45 PM on the plan of services for the proposed annexation of 8.75 acres of the Gardens and at 5:50 PM a report on annexation progress on the previous annexation of Orange Circle.

The council meeting starts at 6 PM.

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Council members discussed the proposal during their March work session. Under the proposal, the management and employees would remain the same and directors would become an advisory board and continue to be appointed by the County Mayor. The proposal includes a decrease of $10.00 per meter per month and returning some $46,000 a month to customers for a total of $552,000 per year. Synergies of operation would include cross training of employees, convert software and convert retirement plans and health insurance.

Councilman J. H. Graham is proposing the matter and told the council at the work session that he nad Crossville finance director Fred Houston had prepared a pro forma report on how the finances would work.

“This pro forma clearly shows the $552,000 per year savings and what I believe would be significant savings to the city of Crossville,” explained Graham. When asked about matching the rates with those of Catoosa customers Graham said, “South Cumberland is charging $30 for 2000 gallons while the city's outside rates at $15.72 per 2000 gallons and we just can't swallow that the first year.” Graham added that it could possibly take 2 or 3 years to get the rates to match but the proposed $10 a month savings amounts to a 33 percent reduction over the current rates.

The matter of the possible purchase of the old Handle Mill is on the agenda and was briefly discussed during the work session. According to the discussion, the railroad property that passes through the property proposed for purchase will cost the city $22,500.

Council is expected to approve the changes to the contract with Tennessee Department of Transportation on the West Avenue Forth Street traffic signal upgrade. The signal will include crosswalks, ADA improvements and pedestrian lights. The city will be required to fund 20 percent of the ADA work, design, drainage and environmental certification.

Council will also be considering the first reading of changes to the animal ordinances that will change rules and when and how dogs may be tethered. You can read more about the dog tethering proposal at this link.

Council's Tuesday Work Session takes up South Cumberland Utility Merger, Airport management contract and more

The Crossville city council meets for their regular March work session Tuesday, March 6 at 5 PM in the third floor conference room at city hall and will take up topics including merger discussions with South Cumberland Utility District, renewal of contract with Crossville Areo as fixed base operator and airport manager, and discussion on the purchase of the old handle mill property.

Crossville Airport Terminal Building

The discussion on a merger between the city water department and South Cumberland would be similar to the agreement that merged the Catoosa Utility district into the Catoosa Utility Department. If the proposal is agreed to then it would create the South Cumberland Utility District of the City of Crossville. The benefits of the merger according to information distributed with the agenda include a reduction of water rates and a decrease in redundant capital for both SCUD and the city.

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Under the proposal, the management and employees would remain the same.  Directors would become an advisory board and continue to be appointed by the County Mayor. The proposal includes a decrease of $10.00 per meter per month and returning some $46,000 a month to customers for a total of $552,000 per year. Synergies of operation would include cross training of employees, convert software and convert retirement plans and health insurance.

The city has also discussed a similar merger offer to the West Cumberland Utility District.

The current contract renewal of Crossville Aero expires in April and includes 2 additional 2-year renewals on the contract. Chris Bennett has requested the renewal Council will also discuss a previously proposed amendment to the airport contract.

Council will also discuss the status of the proposed purchase of the property on Webb Ave that is the remaining property that was the longtime handle mill. Included in the possible purchase is property owned by the railroad company. The city is seeking help from the county for the purchase of the property and would fund the development of parking and other amenities by itself.

Other items on the agenda include discussion of a utility use analysis of facilities and infrastructure the city operates, the city manager performance evaluation, purchases of the splash pad and playground for Garrison Park and scoreboards for Warner Complex and Centennial Park. Also up for discussion is an ordinance prohibiting the tethering of dogs at certain times and during certain conditions.  

Crossville City Council Votes to seek More Raw Water Supply and narrowly OKs accepting BOE Sewer Lines

During the February Crossville city council meeting, the council approved moving forward with a program to seek to increase the raw water supply as recommended by engineering firm J. R. Wauford.

Councilman J.H. Graham makes a point during the council's

February regular meeting. 

In addition, a split council approved moving forward with accepting sewer lines from the Cumberland County Board of Education.

Wauford engineer Greg Davenport presented a report to the council during the February work session that listed 4 potential options and recommended that the city attempt to set up a meeting with the US Army Corps of Engineers and other regulators to discuss next steps.

Councilman J. H. Graham made the motion to move forward and his motion was supported by Councilman Danny Wyatt.

Council member Pamala Harris pointed out, “The benefits of doing this are knowing which direction to move toward as far as our future water supply. I think it is good for the public to know that we're looking out for our future.”

The motion to move forward was unanimously approved.

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There was less council agreement on the request from the county Board of Education for the city to take over three sections of sewer lines that serve North School, South School and Brown Elementary.

The motion to accept the request from the BOE was made by Mr. Graham and the second was made by Ms. Harris.

Mayor Mayberry said he had some concerns, mainly about the line from Brown Elementary including the city's utility district owning a line that runs through the middle of another (South Cumberland) utility district. He added that he was not clear what was involved in taking responsibility for the line and what additional manpower or expense would be required. Mayberry also mentioned future expenses and depreciation that would have to be budgeted for future replacement adding, “It seems like a losing proposition.”

Mayberry also said he felt it was too early to even look at inspecting the line as council member Harris suggested and he wanted to know about the legalities of the action but with the city attorney out with the flu he was not present to answer the Mayor's questions.

“I'm not going to vote to support this not knowing all the facts,” explained Mayor Mayberry.

Councilman Wyatt called on the city engineer Tim Begley for some additional information and Begley said the line to South was about 19 years old, the line to Brown is about 10 to 12 years old. Begley explained that the line to Brown was a “gray water” line and could not have a grinder pump attached to it. According to Begley, the school maintenance department reported only one break to the Brown line they knew of and it involved a car running off the road. He added that lead him to believe that the line could be a bit shallow in some places.

As the city has annexed additional area along Spruce Loop, they have taken over 300 to 400 feet of the line and haven't had any problems with it.

Mr. Graham commented to Mayor Mayberry's concern, pointing out that South Cumberland Utility has stated a number of times that they do not want to be in the sewer business.

Graham responded to another of Mayberry's questions about the future use of the line and if a pump station would be needed if more customers hooked up to the line and Graham said he felt a pump station would be needed. Graham also mentioned another possible line in the future along Dunbar Road but that would depend on the number of future customers.

When the vote on the measure was taken, Council members Graham and Wyatt voted in favor, Ms. Harris passed on the first round vote and councilman Scot Shanks said he was in favor but felt there were still things the city did not know. Shanks voted no “for now.” Mayor Mayberry also voted no and the attention returned to Ms. Harris for the deciding vote. After a brief pause, Harris voted “aye and the motion was approved.  

Crossville city council approves industrial site price and sewer connection to Homestead Tower Museum

Crossville city council approved a number of items, including setting the price of the industrial property being developed by the city with help from the state and the county, a water sales contract for South Cumberland Utility District and a sewer connection to the Homestead Tower Museum.

Council approved a price per acre on property in the Interchange Business Park that will soon be the site of a 200,000 square foot building pad for quick use by a potential industrial prospect. As part of the project funded by state funds and city and county taxpayer funds, a certified price must be approved. The property was purchased several years ago by the city.

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Councilman Graham moved to set the price at $75,000 per acre for the 20-acre property that could house a company with up to 300 employees. Councilwoman Harris seconded the motion.

Engineering on the project is in the final stages and bids will be called for a bit later on in the year according to city engineer Tim Begley. Councilman Scot Shanks asked if the county would have a say in the price since they were funding part of the project? Mr. Graham addressed the question saying that there could be a lot of incentives for the purchase of the site.

City manager Wood said they were working on a matrix of incentives that may offset some of the price including a credit of up to $5000 per job hired by the purchaser. In addition, the matrix looks at capital investment and average wage. The motion passed unanimously.

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Crossville city council easily approved a renewal of the water sales contract between the city and South Cumberland Utility District. The brief discussion included information from city manager Greg Wood who advised the council that the SCUD board unanimously approved a request to the city for the renewal for a ten year period at the same terms.

Councilman J. H. Graham III moved to approve the request quickly seconded by Councilwoman Pamala Harris. The motion was approved by unanimous vote of the council.

Council also approved a request from the Cumberland Homesteads Tower Association for a connection to the city sewer. The tower museum has been operating on a septic system that has failed and the museum no longer has a public restroom facility for their visitors.

Cumberland Homestead

Tower Museum

Councilman Danny Wyatt moved that the city pay $10,371.47 to run the sewer line from where it is to the tower. This would install the line and would leave the cost of a grinder pump of around $5,000 that the CHTA is seeking from Cumberland County. The tower is leased from the county school system.

Mayor James Mayberry seconded Wyatt's motion. A budget amendment was added to the motion on first reading and the motion was unanimously approved by the council.