The proposed merger of the Crossville water utility district with the Cumberland Plateau Water Authority is like trying to fit together all the pieces of a 10,000-piece jigsaw puzzle, with a time-sensitive schedule.
The merger can be achieved, but not without all the pieces falling in place and decisions made on how best to proceed.
There are three steps the city is required to make before a merger or partnership can be completed. CPWA is made up of the former Crab Orchard, South Cumberland and West Cumberland utility districts.
Those mergers were easy compared to the task before the city.
First step is a non-binding negotiation resolution to be passed by council. This does not obligate the city to anything but allows council and staff to begin the process. The resolution does not approve a merger, partnership or sale, does not commit the city to transfer anything, does not authorize signing a binding agreement and only allows for discussions and studies to take place.
This is what the city is being asked to pass Tuesday night. Council can end the discussions at any point.
When the presentation was concluded, it was decided to place the issue on the March 10 regular monthly agenda for further discussion and possible action.
CPWA General Manager Jeff Dyer and Crossville city attorney Randy York spoke to council members Tuesday, calling the proposed merger “a complex transaction” involving state law, regulatory agencies’ requirements and requirements written into the city charter.
Council would have to decide whether to proceed with a planned merger or a partnership with CPWA. Either option carries unique restrictions that must be met by law, York said.
Any action involving the sale of city assets to a second party is restricted by referendum. If a majority of qualified city voters reject any proposal and say “no,” the issue is done, York said.
A “yes” vote by the majority voters would not be automatic but would give council authority to proceed or end negotiations at any point. York noted, to proceed with any option that involves the sale of certain city assets requires a referendum passing.
There is also an issue on how soon pieces of the puzzle can be put into place.
To meet deadlines for a referendum for the November state and federal elections date, a deadline of Aug. 5 would have to be met for the question to be placed on the November ballot.
There is no election scheduled for 2027, so urgency of discussions will be discussed.
The resolution requires city staff to keep council and rate payers of the utility district up to date on the status of discussions as the study moves forward.
Cost for a referendum in November, should discussions advance to that point, is estimated at $35,000 to the city.