Crossville Chronicle, Crossville, TN

July 25, 2013

TSUD votes to remove ECE bill


Staff writer

— The Tansi Sewer Utility District held its monthly meeting on July 8. Several items were on the agenda, most notable was the discussion of the ECE bill, which shows a liability for TSUD upwards of $430,000.

“It’s come to our attention since the audit that we’ve got that entire bill of ECE showing a liability of TSUD. Most of that bill was done by POA and TWMI, very little of that 430-something-thousand dollars is TSUD’s bill,” said Commissioner Virgil Ferguson. “It should be POA’s bill, it should be TWMI’s bill, because that’s where the majority of the work was done.” According to Ferguson, the auditor told him they (the auditor) could not take the bill off of TSUD’s balance sheet, the board had to take it off by vote.

“As far as I know, TSUD has paid ECE everything they’ve done for TSUD,” said Ferguson. 

“I don’t see a way to figure out what we really owe,” said Commissioner Trey Kerley.

In the absence of clarification as to what portion of the bill TSUD was actually responsible for, if any, a motion was passed to take the entire bill off of TSUD’s balance sheet. 

“Let the chips fall where they will,” said Ferguson.

Update on the lawsuits: Mediation was set up for Monday, July 15. A special meeting has been called for Monday, July 22, at 4 p.m. to discuss the results of the mediations. Further, a chancery court date has been set for Aug. 22 at 9 a.m.  

Update on Don Scholes’ legal bill: TSUD received an invoice in the amount of $16,794.90 for legal services rendered. The invoice was not itemized, leaving the commissioners to question some of the charges, several of which stem back to 2010. It should be noted that Scholes was also the attorney of record for TWMI during the transition. The conjecture from attendees as to why the bills have yet to be paid was that a previous board had voted to keep all bills current, with the exception of back bills, which Scholes agreed to hold until the utility was more financially stable.

“I think that really did happen, and he agree to that too,” said Ferguson, “So we’ll have to find some kind of logical conclusion to this.”

The board plans to send Scholes an offer of settlement.

The board approved commissioner requirements that were initially proposed at the May meeting. Exclusions include some of the following:

• Those who have been convicted of offering or giving a bribe, or of larceny, or any other offense declared infamous by law, unless restored to citizenship in the mode pointed out by law;

• Those against whom there is a judgment unpaid for any moneys received by them, in any official capacity, due to the United States, to Tennessee or any county in this state;

• Those who are defaulters to the treasury at the time of the election – the election of any such person shall be void;

• Soldiers, sailors, marines, or airmen in the regular army or navy or air force of the United States;

• Members of Congress, and persons holding any office of profit or trust under any foreign power, other state of the union or under the United States;

• Those who have served on the board of the the Lake Tansi POA in the last five years, or had any involvement with the development of Tansi Waste Management and/or Tansi Sewer Utility;

• Candidates may not be an employee or retiree of TSUD (which currently only applies to one person);

• Candidates must be at least 25 years old.