Utility districts share challenges at first authority summit

Sep. 4—For more than 20 years, water utility districts in the area have looked for ways to increase the water supply in Cumberland County.

South Cumberland Utility District dug a series of wells looking for a groundwater supply.

Crab Orchard Utility District has studied harvesting water from Daddy's Creek.

The city of Crossville has considered pipelines from large reservoirs in the region, but has moved toward a project to raise Meadow Park Lake dam nearly 20 feet. That project will cost anywhere from $50 million to $100 million, engineers recently estimated.

The Cumberland Plateau Water Authority hopes it can help the utility districts work together toward a solution.

"We know Cumberland County needs a water source," said Cumberland County Mayor Allen Foster during opening comments of the authority's Aug. 24 Cumberland Plateau Water Summit. "That's not really a contested idea. But we also know that we have to work together because I don't think one utility can afford to do this alone."

Crossville Mayor R.J. Crawford noted the city is currently working with Crab Orchard Utility District on a water connection that would allow the two districts to work together.

"I would love to have that same conversation with West Cumberland," Crawford said. "I think the CPWA can be the springboard for that conversation."

Time is ticking. A 2018 study found the city would be at about 80% of its water capacity by 2037, with a total raw water demand of more than 9 million gallons a day using a "high growth" population estimate.

Tim Begley, engineer for the city of Crossville, said that's when regulators start requiring plans for expansion of water treatment plants.

Just last month, engineers working on an environmental permit to raise Meadow Park Dam said the area could be at risk of water rationing if it experienced a drought similar to 2007. Then, the city urged its customers and the water utility districts it served to conserve water, including no watering of sports fields or lawns, no nonessential use of water for washing paved areas and no filling and refilling of swimming pools.

While the advisory was voluntary at first, as the days and weeks continued, the council approved enforcement measures, including fines for violations.

Everett Bolin, general manager of the Crab Orchard Utility District, said he'd been working on finding another water source for 20 years.

"Everything we do, they come back that we've got to do this regional concept," Bolin said. "This regional concept, in my opinion, has got to go for us to be able to do it."

Bolin tried to get permission to draw water from Daddy's Creek. He said historical flow data showed he could take more than 800,000 gallons a day without surpassing 5% of the stream flow.

"And every time we got one study done, they wanted another and asked when we were going to do the regional concept," Bolin said of the regulatory agencies. "We kind of gave up on that."

State creates water authority

The water authority was created by an act of the Tennessee General Assembly in 2022. Members were appointed by Foster and Crawford and confirmed by their respective legislative boards, with members taking their seats in January 2023.

The city of Crossville is represented by three members. Other utility districts are represented by one member, including the former Catoosa Utility District, which consolidated with the city of Crossville around 2005.

Foster said the private act gives each utility district, governed by a board of directors, the ability to work with the water authority as much or as little as they wish.

"It's your choice," Foster said. "You can do nothing. You could go so far as to merge into one utility. Or, you could do anything in between just working on a source."

Foster encouraged the utility districts present to think about how it could work cooperatively with other groups. The state identified regionalization for water resource planning as a priority during the administration of Gov. Bill Haslam, and the Tennessee Department of Environment and Conservation recently closed a grant application for regional water projects.

"They're serious about it," Foster said. "This is our opportunity as a community to do it our way, the Cumberland County way."

Crawford noted communication is critical to working together, especially as enterprises grow.

"We can all agree that we, as utility boards, would be better served if we communicate more and we collaborate where we can collaborate," he said. "The reality is we need to do something a little bit more than just being worried about our siloed fiefdoms."

But bringing water utility districts together comes with challenges, from rate structures to employment.

Begley said there are many employees within the city who are shared between the city's general fund and its water and sewer funds.

The water and sewer funds are separate from the city's general fund and are financed by water customers with no tax funding. However, about one-third of Begley's pay comes from each of the three funds as he works on engineering projects for each.

"There's a lot of synergies we have through those three businesses," Begley said.

That includes the billing department, which handles billing and meter reading, and the maintenance department, which services the city's fleet of vehicles.

And while the board of a water utility district can vote to consolidate with the water authority, the city of Crossville's charter requires a referendum to allow the city council to even consider relinquishing its water assets and rights.

That's an additional challenge as the city serves customers outside its corporate limits who would not be able to vote in a referendum. Those customers also cannot vote in city council elections. The Crossville City Council serves as the utility board for the city's water and sewer services.

Each district has a different water supply and rate structure.

The city of Crossville treats water from Meadow Park Lake and Lake Holiday and can harvest water from Lake Tansi. It serves 14,000 customers in both the city and the former Catoosa Utility District, which stretches from north of Interstate 40 to Fentress County and over to portions of Putnam County.

The city of Crossville is the sole provider of water to South Cumberland Utility District.

SCUD has been working to extend public water service to rural areas. It recently extended water lines to East Valley Rd. into the Sequatchie Valley, with 41 new taps. That was a $2.3 million project paid for through a Community Development Block Grant and district financing.

The district has $3.3 million in water extension projects planned using American Rescue Plan Act funds supported by the state and county.

Crab Orchard Utility District serves from its office on E. First St. east to the county line. It reaches north to Morgan County and south to Rhea County. It relies on its water supply lake, with a 3 million gallon per day safe yield, though it is contractually limited to no more than 2 million gallons a day for more than a 30-day period. Bolin said he feels that in the future the lake will provide enough water to serve Fairfield Glade, which continues to build homes and develop property. But he's concerned about meeting demand for the entire district.

There are several lakes in the area that may be suitable for water harvesting, as well, Bolin said. He pointed to Lake Glastowbury, which does not have land owners to the banks of the lake. However, piping the water to the treatment facility would be an expensive endeavor.

West Cumberland Utility District Manager Melissa Bryant said the district had worked to reduce its water loss — the amount of water put through the water delivery system that doesn't make it to a meter for customer billing — from about 40% to 13%. That was achieved through the replacement of water lines beginning in 2016.

The district recently signed a new contract with water provider Bondecroft Utility District. The former contract, which extended through 2027, was tied to the Consumer Price Index. The district would have faced an 8% price increase last year without an amendment by the Bondecroft utility.

Bryant said the district has signed a new seven-year contract for water, which allowed them to drop the wholesale rate by 50 cents per 1,000 gallons. That contract is tied to Bondecroft's cost to provide water, not the Consumer Price Index.

Bryant said, "I know everyone has heard that West Cumberland has the highest rates in the county, but we have not raised our rates in four years."

Those rates are tied to the district's finances. Several years ago, a 12-inch water line was installed from the White County line to Pomona at a cost of $3 million. Depreciation on that water line has impacted water rates.

Next steps

The water authority board spent the afternoon of the summit planning their next steps with the help of Teresa Duncan, vice president of workforce and community development at Roane State Community College.

Duncan asked those present to consider what would happen if the water authority did nothing and maintained the status quo.

"I think it would be economically devastating to the community," said Begley, who pointed to local industries that rely on a supply of water, including Flowers Bakery and the ceramic tile plants. Other manufacturing and warehouse businesses may also relocate because the community would struggle to provide adequate fire protection, he added.

Craig Clark, county resident, said Cumberland County would continue to grow and, without a regional water authority, it would grow separately.

Sean Stephens, with the authority board, said he learned a lot of information about the community's water needs that day that he did not know before. County resident Randall Kidwell noted the water situation on the Cumberland Plateau had been "studied to death." He recommended compiling that information.

"Different utility districts all did their own studies. There's no collective," Kidwell said.

He said it would be valuable to have all that information and to understand projects that have been pursued in the past. "If you had all that stuff together, you might get a little bit better picture," he said.

Bolin said regulatory changes over the past 20 years limited the value of many of those studies. Other factors include how population growth was calculated, which impacted study conclusions.

Kidwell added he'd like to have assurances from state regulators that a new reservoir or other water project would gain approval.

Greg Tabor, member of the authority board, said he'd been told the state wouldn't approve projects for a single entity, like the city, but would for a regional authority.

"What assurances are there that they will?" he asked. "It's like they're saying, 'If you do this, we'll see.' As a negotiator or somebody that makes deals, you're not going to enter into that."

Begley said he felt there was an argument the city of Crossville was a regional water provider due to the customers it served and reaching into multiple counties.

But water projects on in the county face a number of challenges due to the location. The county sits along the Tennessee Valley divide. Additional permits are required for inter-basin water transfers.

Greg Hanson, president of the authority, suggested seeking a meeting with a high-level individual at the Tennessee Department of Environment and Conservation regarding the necessity of a regional authority for permits for water projects.

County utility districts

City of Crossville

14,000 customers

City of Crossville and

Catoosa Utility District

Rates:

—$5.34 per 1,000 gallons (inside city)

—$8.02 per 1,000 gallons (outside city)

Water Sources:

Meadow Park Lake

Lake Holiday

Harvesting from Lake Tansi

Two water treatment plants

Currently seeking permit to raise dam at Meadow Park Dam 18-20 feet. Estimated cost $50 million-$100 million

Crab Orchard Utility District

9,500 customers

Rates:

Tiered rate structure

—0-2,000 gallons — $15.68

—2,001-4,000 gallons — $8.25 per 1,000 gallons

—4,001 and up — $10.48 per 1,000 gallons

Water Source:

Otter Lake

One water treatment plant

South Cumberland

Utility District

9,300 customers

Rate:

—$9.91 per 1,000 gallons

Water Source:

City of Crossville

West Cumberland

Utility District

2,000 customers

Rate:

—$12.13 per 1,000 gallons

Water Source:

Purchase agreement with Bondecroft Utility District

Heather Mullinix is editor of the Crossville Chronicle. She covers schools and education in Cumberland County. She may be reached at hmullinix@crossville-chronicle.com.