Crossville Chronicle, Crossville, TN

Tansi Smoke Signals

July 23, 2012

TSUD, POA meeting canceled

CROSSVILLE — A meeting set between the Tansi Sewer Utility District and the Lake Tansi Property Owners Association board set for July 12 was canceled, and one TSUD board member wanted minutes to reflect why the meeting was not held.

"We called for the Tansi POA and TSUD to have a meeting," said Virgil Ferguson, TSUD commissioner. "That meeting was canceled by Mr. [James] Heath, and I want it to be in the minutes that Mr. Heath canceled the meeting."

Ferguson said Heath contacted himself and Commissioner Trey Kerley and informed them the meeting was canceled. A letter was also sent to Danny Plumlee, president of the POA, notifying him of the canceled meeting.

"It bothered me the board had set a meeting and Mr. Heath canceled it on it's own," Ferguson said.

Heath had advised the commissioner that, after consulting with the Tennessee Association of Utility Districts, the meeting could be improper. Ferguson noted, however, the meeting had been advertised.

"Our attorney Mr. [Don] Scholes said he did not discourage the meeting, that it might even be a good idea," Ferguson said.

Heath said he canceled the meeting have talking with TAUD personnel.

"Based on TAUD advice, I thought it was not a good idea to have the meeting," Heath said. "I thought it was the right thing to do. If it was not the right thing to do, I'm sorry about that."

The meeting had been planned so that the two entities could discuss possible resolutions to the continuing lawsuit filed by the POA against the sewer utility. The suit, filed Sept. 23, 2011, was filed for nonpayment of loans totaling more than $1.3 million made to Tansi Waste Management, Inc., the predecessor of Tansi Sewer Utility District.

The POA allowed TWMI to use a line of credit established by the POA, with promissory noted issued that included principal and an interest rate of 6.25 percent from the date of the loan. Only $187,438.15 was paid back.

In May 2011, the POA demanded payment from TWMI, but no payment was made. TWMI had already transferred its assets to the new sewer district; however, the suit states TSUD conditioned its repayment of the POA loan on receiving public bonds. The suit asks the transfer of the sewer system be declared void and that TWMI be declared in default.

Heath updated the board and those present on discussions between the POA and TSUD attorneys regarding the suit. He reported Scholes told him the POA's attorney indicated the POA was not interested in running the sewer treatment plant and taking over the sewer system.

Richard Cahill, member of the POA board of directors, said that was not the case.

"We want payment or the plant," Cahill said. "I don't know how we can be more clear."

A letter to that effect was mailed to TSUD by the POA on Tuesday, Cahill said, though it had not yet been received by the district.

Heath cautioned the POA would come under the authority of the Tennessee Regulatory Authority, which would set rates for customers. He also wondered if the state would approve allowing a private corporation to operate the public utility serving residents.

The district has explored taking over the notes or at least paying the interest, but Heath said, "We're not in a position to take over the contract or in the position to take over a $5,000 a month payment."

Heath said that, based on his conversations with TAUD, it was believed that no financial institution would accept the district as a signee on the notes. If a financial institution did accept such an arrangement, it could trigger the state declaring the district financially troubled and allow the state to take over operations immediately, setting new rates.

Another possible solution to the lawsuit could be a merger of the sewer district with another sewer service provider, such as the city of Crossville. Heath said attorney Scholes had suggested the county form a committee to ask the city about absorbing the sewer system into its wastewater system.

Cahill said the POA was anxious to reach a conclusion on the lawsuit, adding, "Time creates animosity."

The continuing lawsuit is also a strike against the district should it try to gain loans through the state revolving fund (SRF) loans.

Heath said, "Applying for the revolving fund loans would be a waste of time and money."

The district would also have to pay its engineer to prepare the documents to apply for SRF funding, and Heath estimated that cost at upwards of $20,000. He did not feel the district could shoulder that cost at this time.

A question was raised regarding rates charged for sewer service to Hiawatha West and East condominiums, which are $50 per month for 3,500 gallons of effluent. That's less than the rate charged other commercial customers, which are charged $70 a month for 2,500 gallons of effluent.

The rates are based on a contract between RCI and TWMI; however, the contract does not include an effective date or an end date.

Kerley said, "Nothing I read says we can't change the rates."

Ferguson suggested checking with a lawyer to see if the district could change those rates to its published commercial rates.

The board approved payment of a $2,654.92 repair bill for the sewer treatment plant, which was damaged by a lightning strike in July. The bill will also be submitted to the district's insurance company for reimbursement.

The board set a new regular meeting time of the second Tuesday of each month at 4 p.m. The next meeting will be Aug. 14 at 4 p.m. at the TSUD office, 7004 Ute Lane.

Text Only
Tansi Smoke Signals
  • 4th pic 7.JPG 4th of July at Lake Tansi There was no event left out and not one person who couldn’t be entertained as Lake Tansi created a weekend long soirée to celebrate Independence Day this year.

    July 30, 2014 1 Story

  • An independence celebration to remember

    There was no event left out and not one person who couldn’t be entertained as Lake Tansi created a weekend long soirée to celebrate Independence Day this year. The large crowd of visitors provided ample participation for friendly competitions in ping pong, horseshoes, mini golf, shuffleboard, badminton, sack races, sandcastle building, and pie eating. While Perfect Party Rentals’ bouncy houses juggled little children, the beach accommodated sun-loving families and friends, and the car show brought dozens of classic and souped-up coups for the crowds to peruse.

    July 30, 2014 1 Slideshow

  • Did you know - there's power in numbers

    There is power in numbers.

    July 30, 2014

  • Killeens on the Green closing July 31

    Recently, Bob and Janeanne Killeen have visited with us and expressed they will not be renewing the liquor license for Killeen’s which expires on July 31. They have expressed with regret that personal considerations have caused them to set July 26 as the last day of operation for Killeen’s on the Green.

    July 30, 2014

  • POA looks to end year ahead of budget

    This summer has been outstanding here at Lake Tansi. It is a great time of year to live in and visit our wonderful resort. Our lakes have been busy. The cabins, golf course and Recreation Department have been running full bore, as well, with many activities. Our 4th of July weekend was the best we had in years – thanks to the weather – from the Cruise-in, music and movies at the beach, right down to the pie-eating contest and all the other activities held. Next year will be bigger and better yet.

    July 30, 2014

  • neighborhood watch july 2014.jpg Tansi Neighborhood Watch Group has started

    The Tansi Neighborhood Watch Group’s (TNWG’s) working committees met July 10 at the Hiawatha Community Center. We were joined by Lt. Gary Howard of the Cumberland County Sheriff’s Department, and Chief Jerry Turner of Tansi Security. Chief Turner also represented the general manager of the Lake Tansi POA.

    July 30, 2014 1 Photo

  • exchange New Officers.jpg Exchange Club swears in new officers, directors

    At its June 23 meeting, the Lake Tansi Exchange Club elected and swore in its slate of officers and directors for the year ending June 30, 2015. Past-President John Lyon officiated at the swearing in ceremony, speaking to the duties and responsibilities of each of the club’s leadership positions.

    July 30, 2014 1 Photo

  • Exchange club donations.jpg Exchange Club supports local organizations

    Members of the Lake Tansi Exchange Club have been busy during their Club year ending June 30 raising money through a variety of projects and events. In turn, the funds raised are utilized to further the principal focus of our Exchange Club – to support organizations involved in the prevention of child abuse in Cumberland County, as well as funding other worthy community outreach projects.

    July 30, 2014 1 Photo

  • vest for chron.jpg Exchange Club provides protective vests for security

    Jerry Turner, Lake Tansi Chief of Security, thanks Exchange Club Past-President Mike Ferry for the club's $800 grant that provided the new body armor for Officer Steve Hritz, who spoke of the comfort, yet protective quality of his donated vest.

    July 30, 2014 1 Photo

  • LT Police Cruiser.jpg Security upgrades patrol vehicle

    The Lake Tansi Department of Security and Law Enforcement has acquired a replacement patrol vehicle. It is a 2008 Chevrolet Trail Blazer with 46,500 miles. It is replacing a 2001 Chevrolet Impala with approximately 250,000 miles. The new patrol vehicle will be placed in service as soon as it is fitted with the necessary safety and emergency equipment.  It is being equipped by On Duty Depot in Knoxville, TN. The Trail Blazer is
    better suited for service in the Tansi Community than the vehicle it is replacing because it has available four wheel drive which will enable officers to respond in inclement weather.

    July 30, 2014 1 Photo

Marketplace Marquee
Must Read
Section Teases
Seasonal Content
AP Video
Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Weather Radar
2014 Readers' Choice
Graduation 2014