MAYOR CALLS CNF STORY ‘FAKE NEWS’ LET’S DISSECT IT

Crossville City Mayor has called the CNF story on potential conflict of interest in the proposed water merger between Crossville and Cumberland Plateau Water Authority “Fake News”   We’ll dissect the story for you to see which part is ‘fake’

Here’s the story as published by CNF:

Following last Tuesday evenings City Council work session, Crossville Mayor R J Crawford posted on his Facebook page a two thousand six hundred ninety one word article (a 10 minute read) expressing why he is strongly in favor of turning over the Crossville City Water and Sewer assets to Cumberland Plateau Water Authority (CPWA).TRUE https://www.facebook.com/share/p/19vc8xXgT4/

Lake Holiday Owners LLC owns the land beneath Lake Holiday in Crossville, Tennessee. [1]
The entity is a private group consisting of five individuals, which includes the Crossville City Mayor, R.J. Crawford.TRUE (Confirmed by Secretary of State documentation)

Based on the report, Mayor Crawford could possibly have a personal financial interest in the City transfering the water and sewer department to CPWA should the following scenario materialize.

IF the November City Voter referendum granting the City permission to transfer the Crossville Water assets to CPWA passes and  IF  the City Council eventually votes to transfer the City water assets to CPWA and gets out of the water business totally, the Mayor along with his partners could potentially make money from what is called a ‘water storage fee’ from CPWA. TRUE (T.C.A. § 8-17-103)

 

A storage fee is charged by the owners of the land under a lake to water utility companies. For example, the City of Cookeville water utility charges a storage fee to its water customers.  We called the City of Crossville for more clarification on the issue but have yet to receive a reply.TRUE (audio recording to the City)

 

Presently The Mayor cannot receive any financial gain from his holdings in Lake Holiday Owners, LLC in the form of payment from the City of Crossville while he is City Mayor- Public officials are bound by ethics laws that forbid using public office, municipal assets, or official decisions for personal financial gain. But he could receive money that comes from another source other than the City government such as CPWA.TRUE (Tennessee Code Annotated (T.C.A. § 6-54-107 and § 12-4-101)

 

However, if Lake Holiday is no longer under the City of Crossvilles contract for water distribution,  the Mayor could receive financial compensation from the new water utility CPWA should CPWA approve a contract for paying the fee. TRUE: (T.C.A. § 8-17-103)

Summary:

Nowhere in the story does it say any of this is going to happen – only that it is possible should the water merger ever become a reality.  CPWA claims they have never had any discussions of the sort with Lake Holiday Owners LLC about paying any fees.  But that doesn’t preclude them from negotiating in the future with Lake Holiday Owners LLC should the transfer of the City Water Department take place.  It is that possibility that puts the Mayor in a precarious position being part owner in Lake Holiday Owners LLC and the Mayor of Crossville.  Nothing has been done yet – but it could be possible in the future and that possibility could give the Mayor an incentive to promote and influence the Council vote on the transfer of Crossville Water Department to CPWA   That is the whole crux of the story.  The only other thing we did not report that also draws suspicion is the Mayor has not reported his ownership in Lake Holiday Owners LLC  to the State of Tennessee Ethics Commission as required by law. (T.C.A. §§ 8-50-501 and 8-50-502)