Tennessee § 68-221-1011 - Consolidation of facilities.

§ 68-221-1011. Consolidation of facilities.

As a means to restore the financial stability of a water system or wastewater facility under its jurisdiction, and to ensure the continued operations of water system or wastewater facilities for the benefit of the public being served by such water system or wastewater facility, the board may facilitate, assign a mediator, or otherwise participate in negotiations for the consolidation of a water system or wastewater facility under the board's jurisdiction with another water system or wastewater facility or other public utility which, in the determination of the board, is best suited to operate a deficit water system or wastewater facility. Such consolidation shall be upon those terms as agreed upon by all of the affected parties. Such agreement shall provide that the ultimate owner or operator of the facility will assume the operation of the facility in such territory and account for the revenues therefrom in such manner as not to impair the obligations of contract with reference to outstanding bond issues or other legal obligations of the consolidating water systems and wastewater facilities, and shall fully preserve and protect the contract rights vested in the owners of such outstanding bonds, obligations or contractual interests. The board is authorized to subsidize, from appropriations made to it, the repair or improvement of the deficit water system or wastewater facility as an incentive for consolidation in negotiating any consolidation under this part. In addition, the board may contract for the services of a professional mediator if in its opinion such mediator is needed to effect any consolidation under §§ 68-221-1007 — 68-221-1013. Prior to consolidation of any water system or wastewater facility pursuant to §§ 68-221-1007 — 68-221-1013, the board shall hold a public hearing of all interested parties to such consolidation at a place convenient to such parties at least sixty (60) days prior to the effective date of such consolidation. Notice of such public hearing shall be published in a newspaper of general circulation in the affected area not later than ten (10) days prior to the meeting. If the parties to consolidation fail to reach an agreement within two hundred seventy (270) days from the commencement of negotiations, or such consolidation proceedings are otherwise terminated, the board is authorized to take appropriate action provided by §§ 68-221-1007 — 68-221-1013 to effect the legislative intent of financially self-sufficient water systems and wastewater facilities. Acts 1987, ch. 299, § 11; T.C.A., § 68-13-1011 ; Acts 1997, ch. 483, § 18. Compiler's Notes. Former title 68, ch. 13, parts 1-10 were transferred to title 68, ch. 221, parts 1-10, respectively, in 1992. See the parallel reference table in § 68-221-101 for the former and new section locations.