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Utility district seeks wholesale water contract; Kingston agrees to consider TVA-requested vault relocation separately
Summary
Representatives from Roan/Rum Central Utility District outlined a proposed 20-year wholesale water purchase (baseline asked: 100,000 gallons/day, ability to buy up to 500,000) and told council TVA wants a vault relocated near the plant entrance; the district said it would pay infrastructure costs and the council agreed to place the vault relocation on the next agenda while staff researches wholesale rates.
Representatives from the local utility district told the Kingston City Council they want to formalize a wholesale water agreement and to relocate a meter/vault at TVA's request to serve a planned plant.
Kevin Hamilton introduced Andrew Howe of the utility district, who said the district currently buys water on an emergency basis and now seeks a contract for daily purchases. Howe described a proposed baseline purchase of roughly 100,000 gallons per day (about 3,000,000 gallons per month) with a contractual option to purchase up to 500,000 gallons; the proposal referenced a 20-year contract and included provisions for fire protection and hydro testing.
Howe said TVA is asking that an existing vault be moved downstream, closer to a plant entrance, and that the utility district would pay for the relocation and associated infrastructure; fire hydrants and emergency access would remain available to Kingston. He said the wholesale rate should mirror existing wholesale arrangements (the district suggested the city’s wholesale rate or parity with other wholesalers), and noted an "exhibit A" showing the wholesale rate was not in the packet and would be needed before council could finalize a contract.
Councilors discussed separating the two issues: the time-sensitive vault relocation (driven by TVA's schedule) and the wholesale contract rate and terms. Several members said they could authorize the vault relocation promptly while staff continues negotiating contract rates. The mayor asked staff to obtain the rate exhibit and bring back materials; the council agreed to place the vault relocation on the agenda for formal consideration and to research the wholesale rate before approving a contract.
Howe gave a projected timeline for the plant to be online in fall 2027, and the utility representatives asked to continue engineering work while the council addresses the vault item.
Next steps: the council will consider the vault relocation at the next meeting; staff will research and present proposed wholesale rates for the contract at a later meeting before any final approval.
