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Empowering Tellico Village Newsletter #10

Empowering Tellico Village Newsletter #10Empowering Tellico Village Newsletter #10Empowering Tellico Village Newsletter #10

Your source for the latest updates in Tellico Village 

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Empowering Tellico Village Newsletter #10

Empowering Tellico Village Newsletter #10Empowering Tellico Village Newsletter #10Empowering Tellico Village Newsletter #10

Your source for the latest updates in Tellico Village 

Subscribe Now

Our MissionOur Mission....To communicate critical village news in a fair, clear, truthful and concise manner of key issues that impact our village.

Dear neighbors, much has happened since the last newsletter on July 15. The TPUC (Tennessee Public Utility Commission) has filed a complaint against our TVPOA. So, let's get right to it.    

Water and Sewer

MORE FACTS:

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

 1. If POA were to hire an engineer to design a lift station for a new system today, the design would be a simple standard design, used throughout the United States, not the custom, mismatched, and horrendous layout of the present bid design, which started with a 750,000-gal sewer storage tank in the middle of TV.

2. POA still believes the $2M grant is available. The POA has not performed and does not know of all the federal requirements that start with the selection of the engineer of record and extend to
the actual bidding and award reviews. Receiving only one bid and then “working” with the one bidder to lower his price DOES NOT COMPLY WITH FEDERAL REGULATIONS. 

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

 

1. DO NOT AWARD a contract to the one and only bidder for the central lift station.

2. Hire a new engineer to design, rebuild, or upgrade the existing station. A rehab plan will need to include the replacement of piping, connecting the lift station for both the incoming and outgoing pipes. We already have variable speed pumps (only 7 years old). However, we need to install variable-speed controls and meters on the inflow lines. We need to determine if the pump impellers need replacing to increase capacity. 

Rehab plan

REASONABLE NEXT STEPS:

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

I 

A rehab plan of the central lift station can be broken down into smaller tasks that can be started in months, not years. The pipes, along with the valves, are a critical item.

1. Address (with in-house rainwater equipment) the rainwater surface drainage, diverting it around the existing central lift station away from the wet well.

2. Install the meters on inflow lines and the variable speed controls on the existing pumps.

3. Continue with the inspections and remedial work on the collection tanks to reduce I&I.

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

 Mr. Stevens (lawyer for the BOD) response to the TPUC complaint could be summed up in the following phrase: "this is a nothing burger".  Unfortunately for the TVPOA, it's much more.  

This is no 'Nothing Burger,' and it won't be solved in a few weeks. As you can see in the letter below, the TVPOA has until August 18th to show cause as to why the TPUC should not regulate us.  

False or misleading statements

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

False or misleading statements

  

What follows is a list of either false or misleading statements made by our POA and attorney regarding this issue at the board meeting last evening..

You can fast forward to 45:45 on the Town Hall video or 17:40 at the board meeting last evening to fact-check. You can also visit the websites of the two agencies involved and review the comments I have made below.


 

1) "TVPOA operated before the TPUC was formed".  False. The TPUC  has changed its name several times, but its function has remained the same since 1935, when it was established to regulate monopolies.

2) "It is not the job of the Consumer Advocate Division of the AG to file this claim". Wrong. This division has the charter to investigate abuses by utility ratepayers, which at least one was included in the addenda of the complaint.

3) "All our commercial users of water/sewer are members."  False and likely not relevant.

4) "The complaint was initiated by a property owner regarding a singular question, and in response, the AG intervened and filed this petition to 'show cause. ' False. There were four counts of violations in the brief. Additionally, this 240-page brief could not have been investigated and filed within approximately a month, as indicated by the CCN request to the TPUC in June.

 

5) "The matter is not an 'enforcement petition' or a 'lawsuit seeking damages' " - Misleading. The AG has enforcement authority, but it has been delegated to the TPUC. Additionally, the complaint clearly outlines fines and penalties which we may be subject to, which would be "damages." Finally, this could lead to litigation by the AG if it does not resolve appropriately.

6)  "There are no claims of policies or practices the POA has violated." Misleading. The AG does not investigate or expend resources unless there is sufficient cause to believe that utility laws/regulations have been violated. As mentioned, one such claim was included in the brief.

7. "The sole legal issue is whether, after 40 years, we are subject to regulations. We met with the AG and provided evidence of prior Federal and State agency approvals. Misleading. " If we had some grandfathered status based on the TRA and TRDA approvals to put in a utility, our lawyer would have provided this. I don't think there's any such document, nor was it discussed.

MORE misleading statements

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

False or misleading statements

7. "The sole legal issue is whether, after 40 years, we are subject to regulations. We met with the AG and provided evidence of prior Federal and State agency approvals. Misleading. " If we had some grandfathered status based on the TRA and TRDA approvals to put in a utility, our lawyer would have provided this. I don't think there's any such document, nor was it discussed.

8) "TPUC has never exercised authority over the POA." Irrelevant. That a governmental body had not yet discovered illegal activity does not mean it has given up its rights to enforce the law when it becomes aware.

9) "We secured written statements from TAUD and the Comptroller regarding our need to be regulated." Irrelevant. Neither of these entities would be the regulator of record for our POA. The TPUC would be, and our lawyer failed to consult with them on the legality of the TAP fee. If he had asked the right question of the proper regulator, we might not be in this situation.

10) "Both the AG and TPUC have exceeded their administrative authority."  False. Even a cursory review of the websites and missions for the respective state agencies involved would prove this to be inaccurate.

11) "The TPUC has never regulated an HOA/POA that operates a water/sewer system." False. They had an HOA in Chattanooga that eventually sold its assets to American Water, which became the surviving entity they are now regulating.

12) "The Consumer Advocate Division and TPUC have no standing/jurisdiction. " False. A cursory review of their past dockets/cases would show that they indeed have intervened in matters like this.


 If you want to have your voice heard you are invited to do so online by the Tennessee Public Utilities Commission. As of 7/15/2025, a total of 15 comments have been submitted. I strongly recommend Villagers submit their thoughts to the TPUC. It is quick and easy. In the absence of our input, the TPUC will assume that this situation really isn't a problem for Village residents. STAND UP AND BE COUNTED NOW! Docket No. 25-00048

Here is the web link to provide your input. 

https://stateoftennessee.formstack.com/forms/tpuc_online_public_comment_form 

Water and Sewer

MORE FACTS:

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

 1. If POA were to hire an engineer to design a lift station for a new system today, the design would be a simple standard design, used throughout the United States, not the custom, mismatched, and horrendous layout of the present bid design, which started with a 750,000-gal sewer storage tank in the middle of TV.

2. POA still believes the $2M grant is available. The POA has not performed and does not know of all the federal requirements that start with the selection of the engineer of record and extend to
the actual bidding and award reviews. Receiving only one bid and then “working” with the one bidder to lower his price DOES NOT COMPLY WITH FEDERAL REGULATIONS. 

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

REASONABLE NEXT STEPS:

 

1. DO NOT AWARD a contract to the one and only bidder for the central lift station.

2. Hire a new engineer to design, rebuild, or upgrade the existing station. A rehab plan will need to include the replacement of piping, connecting the lift station for both the incoming and outgoing pipes. We already have variable speed pumps (only 7 years old). However, we need to install variable-speed controls and meters on the inflow lines. We need to determine if the pump impellers need replacing to increase capacity. 

Rehab plan

REASONABLE NEXT STEPS:

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

A rehab plan of the central lift station can be broken down into smaller tasks that can be started in months, not years. The pipes, along with the valves, are a critical item.

1. Address (with in-house rainwater equipment) the rainwater surface drainage, diverting it around the existing central lift station away from the wet well.

2. Install the meters on inflow lines and the variable speed controls on the existing pumps.

3. Continue with the inspections and remedial work on the collection tanks to reduce I&I.

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

 Mr. Stevens (lawyer for the BOD) response to the TPUC complaint could be summed up in the following phrase: "this is a nothing burger".  Unfortunately for the TVPOA, it's much more.  


This is no 'Nothing Burger,' and it won't be solved in a few weeks. As you can see in the letter below, the TVPOA has until August 18th to show cause as to why the TPUC should not regulate us.  

False or misleading statements

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

False or misleading statements

What follows is a list of either false or misleading statements made by our POA and attorney regarding this issue at the board meeting last evening..

You can fast forward to 45:45 on the Town Hall video or 17:40 at the board meeting last evening to fact-check. You can also visit the websites of the two agencies involved and review the comments I have made below.


 

1) "TVPOA operated before the TPUC was formed".  False. The TPUC  has changed its name several times, but its function has remained the same since 1935, when it was established to regulate monopolies.

2) "It is not the job of the Consumer Advocate Division of the AG to file this claim". Wrong. This division has the charter to investigate abuses by utility ratepayers, which at least one was included in the addenda of the complaint.

3) "All our commercial users of water/sewer are members."  False and likely not relevant.

4) "The complaint was initiated by a property owner regarding a singular question, and in response, the AG intervened and filed this petition to 'show cause. ' False. There were four counts of violations in the brief. Additionally, this 240-page brief could not have been investigated and filed within approximately a month, as indicated by the CCN request to the TPUC in June.

 

5) "The matter is not an 'enforcement petition' or a 'lawsuit seeking damages' " - Misleading. The AG has enforcement authority, but it has been delegated to the TPUC. Additionally, the complaint clearly outlines fines and penalties which we may be subject to, which would be "damages." Finally, this could lead to litigation by the AG if it does not resolve appropriately.

6)  "There are no claims of policies or practices the POA has violated." Misleading. The AG does not investigate or expend resources unless there is sufficient cause to believe that utility laws/regulations have been violated. As mentioned, one such claim was included in the brief.

7. "The sole legal issue is whether, after 40 years, we are subject to regulations. We met with the AG and provided evidence of prior Federal and State agency approvals. Misleading. " If we had some grandfathered status based on the TRA and TRDA approvals to put in a utility, our lawyer would have provided this. I don't think there's any such document, nor was it discussed.

MORE misleading statements

TENNESSEE PUBLIC UTILITY COMMISSION (TPUC)

False or misleading statements

7. "The sole legal issue is whether, after 40 years, we are subject to regulations. We met with the AG and provided evidence of prior Federal and State agency approvals. Misleading. " If we had some grandfathered status based on the TRA and TRDA approvals to put in a utility, our lawyer would have provided this. I don't think there's any such document, nor was it discussed.

8) "TPUC has never exercised authority over the POA." Irrelevant. That a governmental body had not yet discovered illegal activity does not mean it has given up its rights to enforce the law when it becomes aware.

9) "We secured written statements from TAUD and the Comptroller regarding our need to be regulated." Irrelevant. Neither of these entities would be the regulator of record for our POA. The TPUC would be, and our lawyer failed to consult with them on the legality of the TAP fee. If he had asked the right question of the proper regulator, we might not be in this situation.

10) "Both the AG and TPUC have exceeded their administrative authority."  False. Even a cursory review of the websites and missions for the respective state agencies involved would prove this to be inaccurate.

11) "The TPUC has never regulated an HOA/POA that operates a water/sewer system." False. They had an HOA in Chattanooga that eventually sold its assets to American Water, which became the surviving entity they are now regulating.

12) "The Consumer Advocate Division and TPUC have no standing/jurisdiction. " False. A cursory review of their past dockets/cases would show that they indeed have intervened in matters like this.


 If you want to have your voice heard you are invited to do so online by the Tennessee Public Utilities Commission. As of 7/15/2025, a total of 15 comments have been submitted. I strongly recommend Villagers submit their thoughts to the TPUC. It is quick and easy. In the absence of our input, the TPUC will assume that this situation really isn't a problem for Village residents. STAND UP AND BE COUNTED NOW! Docket No. 25-00048

Here is the web link to provide your input. 

https://stateoftennessee.formstack.com/forms/tpuc_online_public_comment_form 

Water and Sewer

 Neighbors, did you know that over the last six weeks, the POA has been trying to determine a way to award the Main Pump Station project to the sole bidder, Jacobs Engineering?

FACTS:

- Bid received on May 29, 2025.
  POA received only one bid for the new main lift station.
- The one bid was $8.6M as compared to Jacobs Engineering estimate of $3.1M. Nearly 3 times more than the estimate.
- POA, along with Jacobs, has been meeting with this contractor since the bid opening was received.
- Jacobs has either been changing the design or changing the work scope to reduce the cost of the bid from the contractor, allowing the contractor to revise his bid amount. 

Bid Process

 This is ridiculous. The best practice bid process involves interviewing bidders to determine why they didn't bid or why the only bid was significantly higher than the estimate. Then, adjusting the bid documents and sending out another RFQ (Request for Quote).  With no other bids to compare a single bid to, how will you know if the single bid is competitive?  

So what is being negotiated with this single bidder?

New Road Construction Project Begins

 1. If the original design was of a high standard and quality, what is being changed and why?

2. Why did the other three contractors not bid on the project?  Was the design poor? Did they not bid to avoid project delays and potential disputes with Jacobs? Were the drawings understandable?

3. We know the POA and Jacobs are not giving the other three bidders the same opportunity to rebid the new work scope. So, why would the single bidder have any incentive to lower their pricing?

4. Did this one contractor turn in a high token bid because they have done work for
Jacobs and didn't want to damage their relationship with them. 

5. Allowing this contractor to revise his pricing after a bid is generally not allowed in competitive bid process.
 

6. Is the low bidder required to submit their price reductions in writing?

7. What criteria is the POA and Jacobs using that will result in a lower quote? Are they reducing the scope of the project without changing the design? What does that tell us? .

8. Are they deleting the wants and not the requires? For instance, the added bathroom, electrical control building, which is large enough for the controls of an additional lift station for the sewer storage tank, and a meter vault that is also large enough.
 

9. TDEC (Tennessee Department of Environment and Conservation) has approved the original bid drawings. Has Jacobs resubmitted these drawing changes for TDEC approval? To get any substantial quote reductions, changes must be significant. Did they remove the added bathroom or electrical control building, which was large enough to accommodate the controls of an additional lift station for the sewer storage tank (no longer needed)? 

10. Regarding the site, did they address the surface drainage issues and odor control? Did they replace the current wet well with a smaller one and reduce critical pipe sizes for the convenience of design and to reduce the quote?   

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