by Leslie Lytle, Messenger Staff Writer

At the June 17 meeting the Sewanee Utility District Board of Commissioners voted to retain the firm RateStudies to conduct a cash flow analysis for the utility. “They’re based in Tennessee. It’s a reputable firm. They did Monteagle’s rate study,” said SUD manager Ben Beavers in his recommendation. RateStudies $15,000 bid was $40,000 less than the other two bids SUD received. In other business the board revisited the wetlands discussion from the May meeting.

Commenting on the other two bidders, Beavers said, “You’re paying a premium for the company name. [RateStudies] is more than enough for what I think we need.” According to the contract, the study will analyze “growth, revenue, income and expenses from the past five years” taking into account “the amount of cash needed for operation, maintenance, debt service, funding of capital improvements, and a reasonable amount for cash reserves.” In support of Beavers recommendation, Board President Charlie Smith commented, RateStudies principal Buddy Petty conducted some of the Tennessee Association of Utility Districts commissioner training sessions.

The RateStudies analysis will compare SUD’s rates to other local water utilities. “That’s the first thing people comment on,” Beavers observed, citing the complaint, “’Your rates are too high.’” The RateStudies analysis will also determine if revenue is sufficient to meet the requirement set by the state comptroller that a utility’s finances show a positive change in net position.

“SUD’s last rate study was updated ten years ago,” Beavers said, citing the benchmark of conducting a rate study every five years or more frequently if a utility anticipated significant changes such as a new water plant or lake. Likewise, utilities are advised to re-examine their capital improvement plan every five years.

“I’d like to have the rate study done before we start the budget,” Beavers said, but he stressed he would also like the study to include data from the Asset Management Plan currently being compiled with American Rescue Plan Act funds. When complete, the Asset Management Plan will provide a comprehensive inventory of assets, showing their value, longevity, and depreciation. In order to have Asset Management Plan data will likely require postponing the rate study until the end of the year.

Taking up the wetlands project, Beavers provided background. A joint research project undertaken by the University of the South and the University of Georgia, the constructed wetlands was designed to study reduction of nitrification and uptake of heavy metals by the plants, Beavers explained. Water flows from a SUD lagoon for treating wastewater into the constructed wetlands and back into the lagoon. “[The researchers] got a grant from Coca Cola who wanted to know what size wetlands could effectively treat water. [Coca Cola] is in the water selling business all over the world.”

Since the May discussion, the researchers have cleaned up and mowed the wetlands. Project head Deb McGrath requested permission to extend the project to allow researchers to conduct sampling beginning in the summer of 2026, marking 10 years of operation.

“I’m curious to know what they want to do and hope to see,” said Smith. He requested a written summary “to define what it is she wants to do in the next two years. Then we’ll consider it.”

Beavers will contact McGrath. He will also request information on whether a labeled chemical to kill the invasive duckweed would interfere with the experiment and request a new legal agreement drafted by the University attorney to govern extending the project. He proposed basing the legal agreement on the original contract. “It was pretty comprehensive,” Beavers said in support of the original document.