SUD Rejects Cooley’s Rift Proposal

by Leslie Lytle, Messenger Staff Writer
SUD manager Ben Beavers reported at the Aug. 23 meeting of the Board of Commissioners of the Sewanee Utility District (SUD) of Franklin and Marion Counties, the SUD attorney’s determination that no legal instrument would survive to protect SUD in the event of bankruptcy if SUD agreed to delayed payment of tap fees at the Cooley’s Rift development.
At the July SUD meeting, the developer RLF Cooley’s Rift, LLC requested a three-year, no-interest note on the tap fee cost for service to 23 lots, totaling $95,000. SUD normally requires tap fee payment up front, $4,150 per lot. After a long deliberation, the board had agreed to the three-year note contingent on SUD attorney Don Scholes satisfying both of SUD’s concerns: survivability of the note and compatibility with current policy.
SUD’s attorney Scholes said past attempts to draft a legal instrument that would survive bankruptcy have failed. “I told the developers to be prepared to pay the tap fee,” Beavers said. “No tap will be made until all the fees are paid.”
“I told the developer their attorney could take a stab at drafting a bankruptcy proof contract,” Beavers said, “but I doubt they’ll be successful.”
Beavers said the utility will soon offer online billing, a green alternative frequently requested by customers. United Systems, SUD’s billing software provider, recently partnered with Bluegrass, a company specializing in online billing service, making the feature available to SUD. SUD will contract for both online billing service and outsourcing paper bill notification. “They can do it cheaper than we can,” Beavers said, “because of the volume they deal with.”
When the service becomes available, SUD customers can sign up for email bill notification at the SUD website <www.sewaneeutility.org>. Those who do not sign up will continue to receive a paper bill. As a backup, if the email notification is rejected, the company will send a paper bill. SUD will save about $0.75 per customer monthly when customers opt-in to the electronic notification process. Electronic billing customers will have the added benefit of being able to review their billing history online. Signing up for online billing will not affect fund transfers already in place for customers who pay by bank draft, Beavers said.
Updating the board on wastewater collection system repair and rehabilitation, Beavers said he anticipated repair of the Abbo’s Alley sewer line would be completed by next week. Records indicated the entire line in the vicinity was replaced in 2004, Beavers said. SUD’s current rehab work has revealed only half the line was replaced.
Beavers is waiting to determine whether the sewer line repairs needed in the Alto Road area can be done by SUD or if SUD will need to retain an engineer to proceed with the rehabilitation.
 Beavers hopes to arrange for video camera inspection of the Depot Branch sewer line to determine the best strategy for addressing the cracked and broken clay pipe. Getting the camera equipment to the site could prove difficult, Beavers said. Overflows are common in the Depot Branch area, with the problem of damaged pipe compounded by tree roots growing into the sewer line.
 SUD recently posted its Annual Contract calling for bids on wastewater collection system repair for 2017.
 The SUD board meets next on Sept. 27.