The town of Signal Mountain is holding the first of its public meetings about the potential sale of its water department Thursday, March 22.
The two contenders are Tennessee American Water, which is proposing to buy the system for $3.4 million, and Walden's Ridge Utility District, which is proposing to either purchase the system for $3.6 million or manage it for a monthly fee based on the number of customers.
According to Tennessee American's proposal, if chosen, the company would make $1.25 million in capital improvements to Signal Mountain's aging water system during its first five years of ownership, with $250,000 invested each year.
The company would also offer employment to current water department employees who meet its qualifications, and create a water advisory board made up of Signal Mountain residents to help guide the organization's decisions.
If WRUD acquires the water system, the local utility provider would make $2.6 million in capital improvements to the system during the first five years, investing $600,000 the first year and $500,000 the following four years, according to the company's proposal.
WRUD would also offer employment to current water department employees, and has offered to give Signal Mountain a seat on its board of commissioners, which regulates the utility's rates.
WRUD has also submitted a proposal to take over operations and management of the water system for a monthly fee of $20 per customer, which town officials say adds up to about $900,000 a year.
If officials opt to transfer management to WRUD, all capital improvements would need to be made at the town's expense.
The town is holding three public meetings with representatives from Tennessee American and WRUD. Each will start with 10-minute presentations from both companies. Once town council members have had a chance to question representatives, the floor will open to the public for feedback and further questions.
Though no concrete date has been set for a vote, the proposals could be brought before the Planning Commission as early as April 5, said Sam Guin, special projects and compliance manager for the town of Signal Mountain.
If the matter goes before the commission and that body gives a recommendation, the town council could select a company as early as its next town hall meeting on April 9.
The proposed transition date for water department operations is July 1, which would coincide with the beginning of the fiscal year, Guin said, though the date is subject to change.
"I'm sure the council wants to do their due diligence and make sure that they are comfortable moving forward," said Guin.
The following two public meetings are on March 28 and April 3. All three will take place in the gym at Signal Mountain Town Hall beginning at 6:30 p.m.