(a) Any contiguous city, metropolitan, or county government or utility district may create a water or wastewater treatment authority in the manner provided for in this part.
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Terms Used In Tennessee Code 68-221-1304

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Authority: means a water and wastewater treatment authority created pursuant to this part. See Tennessee Code 68-221-1303
  • Board: means the board of commissioners of an authority. See Tennessee Code 68-221-1303
  • Creating governmental entity: means any city, metropolitan government, county or utility district that creates an authority pursuant to this part. See Tennessee Code 68-221-1303
  • Executive officer: means the mayor, county mayor or other chief executive officer of any creating or participating governmental entity. See Tennessee Code 68-221-1303
  • Governing body: means the chief legislative body of any creating or participating governmental entity. See Tennessee Code 68-221-1303
  • Participating governmental entity: means any utility district, metropolitan government, city, town or county, which utility district, city, town or county, pursuant to a resolution of its governing body, has sold, leased, dedicated, donated or otherwise conveyed its water or wastewater treatment works, or both, or a portion of its water or wastewater treatment works, to the authority for operation by the authority in order to make the treatment works an operational part of its treatment works. See Tennessee Code 68-221-1303
  • Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
  • State: means the state of Tennessee. See Tennessee Code 68-221-1303
  • Treatment works: means any devices and systems used in the storage, treatment, recycling and reclamation of sewage or industrial wastes of a liquid nature to restore and maintain the chemical, physical and biological integrity of the state's waters, or any devices and systems used in the treatment and distribution of water, including intercepting sewers, outfall sewers, sewage collection systems, water storage facilities, water transmission lines, pumping, power and other equipment, and their appurtenances, extensions, improvements, remodeling, additions and alterations thereof. See Tennessee Code 68-221-1303
(b)

(1) The governing body of the creating governmental entity shall adopt, and its executive officer shall approve, a resolution to submit a petition to the Tennessee board of utility regulation for review and approval. The petition must include:

(A) A statement of the service the proposed authority will provide and the necessity of that service;
(B) The proposed corporate name and boundaries of the authority’s service area;
(C) A statement explaining why existing utility districts, treatment authorities, or municipal or county services cannot adequately provide the needed service because of cost, time, or other service delivery factors; and
(D) An estimate of:

(i) The costs of the acquisition or construction of the facility;
(ii) The cost of operating the proposed facility;
(iii) Anticipated personnel needs; and
(iv) The rates and charges for the proposed service.
(2) An estimate pursuant to subdivision (b)(1)(D)(i) is not a limitation on the financing of improvements or extensions of a facility.
(3) A majority of the governing body of the creating governmental entity and its executive officer must sign the petition.
(4) The petition must include the notarized signatures and residential addresses of both a majority of the governing body and its executive officer.
(c)

(1) The Tennessee board of utility regulation shall issue an order approving or disapproving the petition for the incorporation of the authority within ninety (90) calendar days of receipt of the petition by the board, its agent, or its representative.
(2) If the Tennessee board of utility regulation approves the petition, then the Tennessee board of utility regulation shall forward its order of approval and the original petition to the governing body of the creating governmental entity and its executive officer.
(3) If the Tennessee board of utility regulation fails to act on the petition within ninety (90) calendar days of receipt of the petition, then the Tennessee board of utility regulation, its agent, or its representative shall return the original petition to the governing body of the creating governmental entity and its executive officer.
(4) If the Tennessee board of utility regulation disapproves the petition, then the Tennessee board of utility regulation shall forward its order of disapproval to the governing body of the creating governmental entity and its executive officer. Petitioners may appeal the order disapproving the petition to the circuit court of the county in the manner provided by law for appeals from the court of general sessions.
(d)

(1) If the Tennessee board of utility regulation approves a petition under subdivision (c)(1), or fails to act on a petition under subdivision (c)(3), then the governing body of the creating governmental entity shall adopt, and its executive officer shall approve, a resolution calling a public hearing on the question of creating an authority.
(2) The creating governmental entity shall publish notice of the date, time, place, and purpose of the hearing at least once each week for two (2) consecutive weeks in a newspaper of general circulation, the last publication occurring at least one (1) week prior to the date of the hearing.
(e) The hearing will be before the governing body and all interested persons shall have an opportunity to be heard.
(f)

(1) If the governing body determines, after a hearing, that the public convenience and necessity require the creation of an authority, then the governing body shall adopt, and its executive officer shall approve, a resolution or an ordinance so declaring and creating an authority.
(2) A resolution or ordinance under subdivision (f)(1) must designate the name and principal office address of the authority.
(3) A governing body shall file a certified copy of the resolution or ordinance with the secretary of state, along with the resolution approving the appointment of the board of commissioners as provided for in § 68-221-1305. The authority constitutes a body politic and corporate upon adoption and filing.
(g)

(1) A creating governmental entity and a participating governmental entity shall enter into an agreement with the authority for the orderly transfer to the authority of the treatment works‘ properties, functions, service area, and outstanding obligations.
(2) The agreement may include provisions for the reimbursement of any governmental entity for its obligations issued for treatment works.
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