South Fork Utility District is asking Bristol, Tennessee about the possibility of a merger

BRISTOL, Tenn. – The Bristol, Tenn. City Council is considering the possibility of a merger between the City of Bristol, Tenn. Utilities and the South Fork Utility District.

“Our backs are against the wall,” said Josh Barrett, an SFUD commissioner, who attended the City Council work session Tuesday.

Barrett explained that SFUD has until July 18 to determine if the city of Bristol, Tennessee or the Bristol/Bluff City Utilities District is interested in a merger.

“There are basically three options on the table starting today, and that’s where we’re either going to be forced to merge with you, we’re going to be forced to merge with Bristol/Bluff City, or they’re going to leave us alone,” Barrett said. “Our will would be for us to be left alone to be autonomous on our own, but I don’t know if that will be an option or not. We should find out on July 18.”

The July 18 merger meeting is being conducted by the Tennessee Board of Utilities Regulation (TBOUR).

The SFUD Board of Commissioners has been working with the Tennessee Comptroller’s Office (TCO) to unravel its future since the TCO concluded a two-year investigation into SFUD that found significant financial misconduct and led to the resignation of SFUD’s previous board.

Bristol, Tennessee City Manager Kelli Bourgeois informed the City Council that she rejected SFUD’s initial approach regarding a possible merger.

“Three months ago, maybe four months ago, they contacted me, and at that point I said I’m not interested,” Bourgeois said. “Because they approached us a second time, we said we’ll bring it to the Board and just see where you stand on it.”

Bourgeois explained that the city of Bristol, Tn. Currently, the utility can take SFUDs to around 3,400 customers, who use about 600,000 gallons per day.

“They also have assets. They have ongoing projects. They have a grant in the pipeline, but they have debt,” said Bourgeois, who stressed that if the Council were to go for a merger, she would recommend they consult with the city’s financial advisor first.

“If the board would like us to consider taking them on as a district, we would really want to review our financial advisor and make sure it makes sense for our utilities to take on all of these debts and liabilities,” Bourgeois said.

Bristol, Tn. City Council member Mark Hutton explained that he is open to the idea of ​​a merger with SFUD, but is concerned that there could be some workplace friction with SFUD’s desire to remain independent.

“I hate what happened to you guys, and I think working with us would be great for all of you,” Hutton said. “I’m worried about human relations.

“It seems that what your heart is in this matter is that you want to be left alone. If we have to take over, it doesn’t look like a great situation for us.”

Bristol, Tn. Council member Margaret Feierabend stressed that as long as everything can be worked out, she sees a possible merger with SFUD as a positive for the city and its residents.

“I think if there’s an opportunity to work with utility districts to help people work harder and easier, I think that’s a real plus,” Feierabend said.

In turn, Bristol, Tn. City Council member Lea Powers explained that she wants to see more information before deciding on a course of action.

“If it’s reasonable and possible for us to be that partner, that would be something to consider,” Powers said. “I would call on staff to do more due diligence.”