SUD: Unexpected Expenses; Recouping Expenses
by Leslie Lytle, Messenger Staff Writer
At the June 20 meeting, the Sewanee Utility District Board of Commissioners weighed decisions about multiple unbudgeted expenses. The board voted to ask the University to reimburse the utility for a portion of the cost SUD incurred for narrowing Highway 41A, a University initiated project undertaken by the Tennessee Department of Transportation.
The board approved SUD manager Ben Beavers’ recommendation to purchase a 2023 Hustler Super Z mower, cost $14,282.67, to replace the nearly identical mower purchased in 2007. SUD put a new motor in the mower in 2012, but now the clutch had gone out, and the mower had reached the end of serviceable life. Beavers preferred the Hustler over the other state contract listed brand, John Deere, for the larger engine, although the Hustler was slightly more costly by $1,100. “The mower we have now has been one of the best ones we’ve had,” Beavers said recommending the purchase and citing the extensive amount of mowing required at the dams and physical plant.
The board also addressed purchasing a new accounting and billing software package. As of January, the current provider United will no longer offer the platform SUD uses, and while they offer a new platform. Beavers conceded, “The office staff has not been pleased with the service.” Beavers researched providers and from a list of seven narrowed the choices down to two, CUSI and Ampstun. Beavers recommended Ampstun which over five years would cost $350 less per month, although he stressed the CUSI platform was far more “interface friendly” to use when responding to customers inquiries about billing data. “The ladies in the office asked that I represent their choice [CUSI],” Beavers said.
“I’m inclined to lean toward the office staff’s choice,” said Board President Charlie Smith. Commissioner Johnny Hughes concurred, observing the cost difference only amounted to $4 per customer per year.
The board voted to purchase the CUSI software package.
Beavers also called the board’s attention to an upcoming decision about repairing or replacing SUD’s Ford service truck which broke down earlier that week. The dealership said the truck needed a new motor, cost $13,000. Beavers questioned the assessment and suspected the problem was a blown head gasket. He will visit the dealership and inspect the truck himself before making a recommendation. “It comes down to how much are we willing to spend versus how much service life is left in the truck,” Beavers said.
Reporting on finances, Beavers alerted the board to an increase in chemical costs in December and again in March which has resulted in water-production costs being four percent over budget. “I’m not overly concerned at this point,” Beavers said, although he anticipates production costs will be four to five percent over budget for the year. He attributed the increase to the chemicals being a petroleum-based product.
SUD’s final cost for the narrowing of the Highway 41A project was $254,187, almost half what TDOT budgeted, Beavers said. “We earned our paycheck,” he insisted, commenting on SUD’s careful attention to minimizing costs. Based on a verbal agreement in the summer of 2020, the University agreed to reimburse SUD for 80 percent of the cost. Beavers will draft a letter to the University requesting reimbursement of $203,349 — 80 percent of the final cost to SUD.