Crossville City Council will consider a resolution next week to enter discussions with the Cumberland Plateau Water Authority to see what a merger or partnership could look like.
Water Authority General Manager Jeff Dyer said next week’s resolution is a starting point and allows the city and the water authority to begin formal and non-binding negotiations.
“It does not approve the sale of the water system, it does not commit the city to transferring anything, it does not authorize signing or binding agreement, it does not finalize any deal, it only allows discussions to continue,” Dyer said.
City Attorney Randy York said a merger or partnership is very complex and that the council needs to keep in mind what could trigger a referendum. York said the city must understand and consider the impact of existing contractual obligations moving forward during negotiations.
“We are under several contracts that require substantial payments in the coming years, sometimes big payments coming up, and we have to think about how are those going to be handled,” York said. “Are they going to be handled by the city itself, or are we going to have a partner with the Water Authority?”
York said the city has three options on how those contracts can be handled.
“You can say we are not going to do anything else, and we are done, let somebody else do it,” York said. “That’s really not an option, but it is an option. The second is to move forward and say well, is the city going to handle it all? That’s a big apple to swallow. The third is to find a partner or someone who’s going to be working with us. We cannot, as we move forward respectfully, we cannot move forward until they know what the assets are, what the obligations are, or anything like that, talking about either a partnership or a merger. The Plateau Water Authority has to know what’s going on, how we do it.”
York said if the city wants to try to do a referendum on a merger or partnership at either election this year, the city will need to provide information to the election commission 90 days before the election. York said he only sees it being possible for the November election, and that information would have to be provided by August 5.
“If you are not on the ballot in November, then referendums are typically tied to elections,” York said. “So in 2027, Crossville has zero elections. There is one election in Knoxville in November, and we could use that. Crossville’s charter also has a special clause that allows us to hold a special referendum. And we can do that, but that will be at the City of Crossville’s expense. And when we discussed this issue a year or two ago, that was somewhere around the $35,000 tab.”
York said the city and Water Authority must have proposals ready by July, if the city believes the referendum is the way to go. York said the council will also need to consider what happens if the merger or partnership is rejected by voters. York said only residents inside Crossville city limits will be allowed to vote in the referendum.
York also advised the council to get some appraisers to have a firm understanding of what land at Meadow Park Lake would be transferred over to the Water Authority.
“If it is a merger, then the water authority will just get very little of the property at Meadow Park,” York said. “We’re talking about the dam and the pump station. That’s basically it. A little bit behind the dam to put in the new dam. The whole basin of Meadow Park Lake is not going to be taken. Everything out there is not going to be taken. Just very little. But the lands that we add to it will double the size of the lake. If it’s done correctly, we’ll honor the city fathers before us and continue to keep that lake as pristine and as pure as it is today.”