SUD Discusses Highway Reimbursement
by Leslie Lytle, Messenger Staff Writer
At the Aug.16 meeting of the Sewanee Utility District Board of Commissioners, SUD Manager Ben Beavers reported on SUD’s final cost for the U.S. Highway 41A project, prompting a discussion about requesting reimbursement from the University. The board revisited SUD’s request for American Recovery Plan (ARP) funds from the Tennessee Department of Environment and Conservation.
In conjunction with narrowing Highway 41A to accommodate University plans for the downtown, the Tennessee Department of Transportation (TDOT) required SUD to put money in escrow to cover water and sewer line relocation costs. TDOT has billed SUD for $209,000, Beavers said, and SUD’s out-of-pocket expenses for engineering and inspection will bring the total to a quarter million.
In a 2020 verbal agreement negotiated by Beavers and SUD Board President Charlie Smith with University Treasurer Doug Williams and Frank Gladu, who at the time oversaw downtown planning, the University committed to help SUD pay for relocating the water and sewer lines.
“We’re hoping to get 80 percent [of the cost reimbursed]?” asked commissioner Donnie McBee. “We are,” Beavers said. Beavers suggested a letter from Smith to University Treasurer Williams reminding him of the commitment. The board will collaborate on the letter.
In a recent conversation with a Southeast Tennessee Development District lawyer, Beavers confirmed separate pools of TDEC administered ARP grant money were available to counties and cities. Beavers also learned the money could not be used for maintenance items. SUD has already purchased all the items on its ARP grant list, except for replacing water plant membrane filters, a maintenance item. SUD will work with the Tennessee Association of Utility Districts to modify its application and request replacing 10,000 feet of water line with cast iron fittings, which by law SUD must undertake in the next few years. Beavers estimated the cost at $500,000-$700,000. “I’ll ask for replacement of all the line, but we may need to settle for investigation and design costs … I don’t expect we’ll get any less than $200,000-$300,000.” Of the $3.2 million available to Franklin County, the county has already committed $1.2 million.
SUD accountant Don Mills presented the 2021 audit. The audit contained no negative findings. “You made a nice rebound,” Mills said. “In 2020 you lost money. You can’t do that two years in a row or the utility review board will get on us.” In 2021 SUD reported a net positive change of almost $78,000. Beavers commented the difference was due almost entirely to lost revenue in 2020 because of the pandemic and students not being on campus.