I might add that this meeeting is NOT just for Rockwood citizens, but concerns EVERYONE who is serviced by the Rockwood Water Gas and Sewer Department. Actually it will affect County residents more since they pay more for their water. This Department has been declining since 2002 and it is time they tightened their purse strings. Please, Please come out Tuesday and show your support and help us get this department's spending under control

Water department in Midtown was in Wednesday's RCN. They just had a big increase and they buy water from Rockwood. Kingston is also supposed to buy water from Rockwood, what will that do to those agreements. Midtown wanted to build a water plant several years ago, but was "urged" not to, but maybe they should have gone ahead.

Does Ron Berry have anything to do with Rockwood water anymore? He and Bob Creswell work together. Just asking.

Good Points!! A time to let them be heard will be at the Rockwood Water Gas and Sewer Board and City Council workshop. Thanks for posting your comments ! Ray Collett

Hope there is a good turn out for the meeting. I'm going to try to be there even though I am not a resident of Rockwood or a customer of the water and sewer departments. Does Rockwood sell to anybody besides the water company in Midtown and Kingston?

The Rockwood city council meets tonight at 7-pm, which is after a "workshop" for the airport at 6:30. Both should be entertaining. The airport could be the "shot in the arm" local industry(s) needs to expand current business practices, as well as attract outside businesses to the area and generate quality jobs. This is a major infrastructure project logistically speaking for our community where large business is concerned. If we can make available additional modes off product and/or service transportation other than highway, then it is hard to turn down the fact that our community is one of the most inexpensive areas to live and conduct business. there is an ample supply of capable potential employees, too. I'm looking forward to the update and am eager to begin inviting business and industry back to Rockwood via this great airport.

the city council is going to be a doozie, too. I'll check back a bit later to update that.

oh by the way, not supporting a water rate increase is not something to hang your hat on for re-election. at some point equipment will fail, and the skeleton crew that currently works tirelessly to operate that equipment won't be able to repair that equipment to keep it running. The inevitable is glarring - make a minor increase now, or make a major increase like the other communities around us in time. Which is worse, sir, a $3 rate increase, or a $15 rate HIKE?! I've heard it said that the rate increase is equivalent to having a beer at one of the local establishments. Well, without the increase now, the one that will eventually come will be more like a half tank of gas. Which is worse, sir? you mention that some folks dont have the disposable income to support a $3 rate increase. Well which would be easier to swallow - giving up a single beer, or not filling up your gas tank and not being able to get to work because you had to pay your water bill? I think thats easy. Not to mention the fact that this minimal increase over time leads to a higher quality product which enables the current skeleton crew to minimize repair efforts and focus on quality.

The facts are we were talking about a 3% water rate increase.

Here is what the increase would be on 10%
If your water bill is now $30.00 a month it would be $33..
Sewer is 150% of the water bill
That means if your water bill went up $3.00 a month your sewer would go up $4.50 a month
A total of $7.50 a month. It would cost the customer $0.25 a day.
Based on a 30 day billing cycle.

Ray you stated
"A skeleton crew? Not hardly..."
Since I do work for the water dept.
I would like for you to please explain what you mean about this statement...

Mr Collett, let us clarify your comments:

1. You make it sound like “12% or more” is SO MUCH more than $3.,/li>
2. 12% of the $8.53 water rate is only $1.02
3. In fact, 25% of the current rate is only $2.13
4. Remarkably, 35% is still ONLY $2.99
5. So what’s 12 to 15%?
6. 150% sounds like a HUGE and intimidating number, doesn’t it?
7. The reality is it’s equal to $4.27 – that’s less than a gallon of Mayfield Milk
8. Therefore the TOTAL increase to the bottom line was 20%
9. Based on “12% or more,” the OVERALL rate would not reach the 30% mark as you suggest unless you raised the base water rate by 15%.
10. For perspective, a 15% water rate increase affects the total water & sewer bill by $7.46, which is less than what you pay for the Wholesome Morning Sampler breakfast at Cracker Barrel.
11. You mention being satisfied with where the money is going to be spent before voting for an increase –
12. Respectfully, what will it take before you are satisfied?
13. I ask because of the following:
14. REU raises rates arbitrarily (2.6%) above that of the recent TVA rate increase (2.04%), that is 22% above TVAs increase, and there is no scrutiny requiring you to be “satisfied.” Why hold this double standard, sir?
15. What is the REAL reason you wouldn’t support a modest rate increase?
16. What do you intend to do to make the Water Department profitable IF a rate increase is not the answer? You have had opportunity to ask your questions to the board and department manager. Have YOU come up with any reasonable solutions?
17. Finally, you “hardly” think the department has a skeleton crew.
18. Are you aware of the work force? Do you understand that 2-people should not man a station 24-hours a day, 7-days a week? They do at the water department.
19. Do you understand that 12 field workers to conduct REAL business is essentially 3 crews. Because of the on-call requirement that means that 3-crews are literally working around the clock if necessary all the time.
20. Respectfully speaking, you should do everything in your power to provide the necessary and sufficient fiscal support to this department because of how much goes on without any recognition. Put your petty issues aside and be proactive rather than argumentative as another couple council people have chosen to be. Forget fighting, resolve your conflicts on your own time. Use the workshops, scheduled meetings and called meetings to conduct real business and find real solutions to real issues. Otherwise there’s going to be a whole lot more stinking in this town than just the political games.

So how many customers does the Rockwood Water and gas department have?

I forgot to mention that it's very reasonable to see how this "minor" increase can generate $200K. Per the above post the average monthly increase to the base rate could be $7.46. Ok, assume there are 2500 households in Rockwood paying the base rate. Keep in mind this does not include corporations, schools, industry, etc.; simply households and the base rate. Ok, 2500 households paying $7.46 more equates to $18,659.38 monthly. Take that 12 times, a.k.a. as the annual increase in revenue comes to $223,912.50. Now, that's simple math and very plain to see. I hope it was clear...let me know; 'k', Ray?

I think the Council's request to see a detailed budget that shows exactly how the money will be spent is more than reasonable. I would also ask for a ten year history of customers served, income, and expenditures to examine how efficiently the department has been run.

Since the incomes of all but the top 2% of Americans has fallen over the last ten years, the increase that is being suggested is just one more added burden on working people that should be thoroughly examined to see if there is a true need or any alternative. And 15% is not a small increase.

As to the "skeleton" crew, the number of employees I have found is over 40.

Respectfully, Whitescreek, The department has right at 30-employees, of which 12 are field laborers. Essentially 12 equates to 3-4-man crews. Each facility has 2 operators; one facility is a 24-7 operation. Basically, the rest are administrative. Considering the workload combining daily, routine maintenance activities, with emergency services, repair projects, and new equipment projects, yes it is more than fair to say that 3-crews of 4 is a skeleton crew.

Regarding the council’s request, I agree, it is reasonable. However, it’s only reasonable if the council takes the information and participates constructively, proactively, and resolutely. Unfortunately the 3 council people who believe it’s their divine calling to rid the Department of Rod King hinder any progress to optimize all facets of the department. It’s kind of funny because the sentiment is that they love the employees, and they won’t support anything that means laying off employees. What they don’t understand is as much as they “love” the employees, the employees “love” Mr. King. That is to say that over the years the employees and Mr. King have grown to appreciate the value that each brings to the department.

You asked for 10-years of records, well I can give you 8 – the time that Mr. King has been in his position. In 8-years there has been NO rate increase – REU has raised rates repeatedly; most recently 25% above TVA’s recent increase, but that wasn’t even glanced at by the council; why? That’s another blog. Anyway, Water quality in 8-years has been dramatically improved. Reasons are that employees became not only qualified, but state-certified operators, and more importantly, experts in their field. Response to emergency calls have improved greatly. In-house line work has increased and the quality of workmanship is up also due to additional qualifications and certifications. 8-years ago there was a moratorium on the department—they could not add new customers due to the state of the department. Under Mr. King’s leadership they are adding more and more customers and running new services all the time. The sewerage system has seen a tremendous increase in productivity, and the lines leading to the facility have been and are improving, too. I could go on & on stating all the accolades the department deserves mentioned, and perhaps I will next time; however, it is important to note that the department is functioning at a level above its expectation because of Mr. King and the employees who take great pride in their work.

One reason – not the only one – REU has $9-million in reserves is due to its consistent rate increases. Perhaps people are so accustomed to seeing their power utility rates go up that it’s become a non-issue.

Consider this:
Suppose the RWS&G Dept raised the water rate only by the rate of inflation for the past ten years – assume inflation is 3% (that’s actually conservative based on the information available), and assume that the sewer rate remained constant at 100% of the water rate. Over the past decade we’d still be right at the estimated 12% rate increase. Admittedly, this hypothetical rate is still lower than the proposed 12% rate ( the difference is $0.96), BUT over the past decade, the department would have had the additional revenue to provide for the much needed maintenance and new equipment projects and at an almost 98% certainty would not be in the current funk it’s in fiscally speaking. They wouldn’t have had to pick and choose what to spend money on etc. Not to mention the fact that it costs a WHOLE lot more to operate old equipment than to purchase new and operate it. Old equipment is less reliable and prone to breakdown adding cost to maintenance and daily operating costs, it usually requires more manpower and is less efficient, meaning it takes longer to complete a job than it should. It is very likely that had this been in place they're be no cause for concern fiscally now. With that in mind, it makes good, business sense, to not only increase the rate now, but then to also propose an annual 2.5% increase just to make sure that the department doesn’t fall into this mess again. I’ll tell you what will happen, too. In the very short future – 5-years or less – the annual rate increase can be scaled back to bi-annually, which is essentially cutting the increase to 1.25% annually.

Finally, why are politicians so scared of operational rate increases anyway? Of the 3 council people aiming for Rod King like he’s to be a trophy stuffed and mounted, 2 of them have supposed business experience. One was an insurance salesman, one managed a medical office – the other was a DJ, so I guess he can count; oh wait he’s a singer, too. Anyway, I’d like to see any one of them operate in their area of experience and tell me that if their operational costs went up that they would not in turn pass it along to the consumer. I’d bet a Coke that they’d be lying if they said they wouldn’t and especially if they said they didn’t. Ray Collett said "I need to see how the money is going to be spent." Well, I suggest, Mr. Collett, you also request the same of REU and their above-scale increase, too. That is if you do intend to treat both utilities fairly.

I want the Council to look at budget details to see where the money goes. I would be willing to bet that the income of the Dept has gone up because of increased water usage and customer growth. With a revenue increase already, why does the department need a rate increase? perhaps it is to pay off the debt the department has created with the gas department? Who OK's that debt?

And tell me this...What is the pay and benefit package for the Water department employees compared to the Fire Dept and Police Department? You know... the folks who have to have ongoing training and certifications and risk their lives for us.

W - first of all it's not the council's job; it's the Water Board's job. The ise issues are that there ar 3-council members who want to DISSOLVE the BOARD so THEY can FIRe Mr. King. It's got nothing to do with operations, budgets, projects, or anything else. it's got everything to do with 3-people all bent out of shape over one. I'll get the records and I'll show you what I'm talking about, but for the time being, rational business management is not in question here, it's the fact that there are 3-people who's goal it is to do nothing to help the department - except what they think would be good, which is fire the leader.

White, if you've got any experience with any kind of equipment; i don't care if it's a widget maker, equipment that is used routinely becomes more and more inefficient and becomes more and more costly to operate. Not only that, but the department is not a closed and finite; it has to purchase equipment, supplies, chemicals, and materials to operate. If over ten years those cost go up, but yet the department absorbs those cost by not effecting a rate increase, eventually, the profit margin generated by rate payers goes to ZERO! It's simple math and ECON 101. And these employees have to maintain there training and certifications -not by choice, but by STATE & FEDERAL mandates. They've not had raises in 3-years, not even so much as cost of living. The council recently approved a new health care plan. Guess what coverage cost were similar but services went down from what i understand. I'll find out exactly that, too.
But what Im trying to convey is that the records will show that the external costs to operate the department have steadily increased while the rate has never changed; eventually the profit margin goes to zero and then into the red.

let's get a look at the budget. This should be a public record so let's get the numbers out there and see what we see. So far I don't see anything I can use to make a decision with.

takes time though. I'll have it soon enough.

However, the biggest issue is with the way these 3-council people are trying strong Rod King and push him out of the position. 2 have said publically it is there goal to get him fired, and an other has a beef with king because he was asked to move a piece of property because it was located over a natural gas or sewerage line or something like that...i'm not certain about the last one.

But based on personal experience gathered during this past "workshop" ON THE BUDGET, these 3-council members cared less about the budget and more about fighting with king about petty things.

Here's the deal, it's obvious King is making his efforts to be cordial, but these council people are not reciprocating the effort. ALL parties involved need to commit to working together for the good of the department and the citizens of Rockwood. If at the end of 6-months, there's still strife AND a fiscal mess, THEN figureout a solution that may involve personnel changes. But by all means try to meet in the middle and work together on some of this stuff...budget information, to be posted soon

Ray Collett is doing his job as a Councilman. He should be representing the needs of the City, as he is doing. Government employees often have blinders on when it comes to rate increases and their department's budgets. Employees are viewing this from their own eyes as they rationalize in their heads that the increases really aren't that much. An increase is an increase and this is a more complex issue than it appears. Budgets, efficiency and needs should all be looked at. There is no profit within government agencies, so this doesn't directly compare to private corporations or their P&L as is being proposed. Ray should continue representing the people. As he said, "I will NOT support a water rate increase by Rockwood's Water Gas and Sewer Department until I am completely satisfied about how the money is spent." What is wrong with that! We need to understand how the money is spent. Council may not set the rates, but as Ray has said they do vote on them.

For the record we have 32 employees at RWSG. In 2002 we had 32 employees.
Which shows that we have the same amount of employees now that we did 8yrs ago.

(Maintence shop)
1 - General Manager
1 - Accountant
1 - Assistant Accountant
1 - Inventory worker
3 - Superintendents
14 - Service worker to control maintence, cutoff's, new services, service calls, construction, water quality, clean up, meter reading and repairs.

" Now if we have a major water leak we have to close down the gas crew to help flag traffic. This is the only way we can have the man power to do the job "

When this happens we are behind for the rest of the day.

(Water Plant)
2 - Water plant operators
1 - Water plant maintence worker

" The plant runs 7 days a week with just 2 operators so when one of the operators get sick or goes on vacation the other operator has to work until they get better or back from vaction with no days off "

When this happens it cost the company money with overtime. There is no way around it.

(Sewer plant)
2 - Sewer plant operators
1 - Sewer plant maintence worker

(City hall office)
5 - Office employees

Now remember we run 3 depts with the above staff. Not to mention we are on-call 24/7 365 days a year.

So Ray since you did not reply back about your statement!
How do you see that we have the man power to keep our jobs maintained and to keep customers satisfied?

Water/Sewer Revenue (2009-2010) $2,611,887.25
Expenses
Payroll $795,191.79
Health Insurance $183,414.38
TCRS $67,372.15
Utilities $347,558.94
Landfill $49,879.68
Chlorine $37,093.71
Chemicals $15,457.24
Liability Insurance $11,100.51
Building Insuance $10,211.37
W/C Insurance $16,364.00
Depreciation $375,177.59
City service Rendered $30,000.00
Bond Principal $194,878.00
Loan Principal $290,266.82
Interest $129,178.86

Remaining Balance to operate with ($58,742.21)

Water Rates (gallons)
1,500 gal/ 3,000 gal
Rockwood $8.53 /$13.34
Harriman $17.64 /$23.89
Kingston $12.84 /$20.40
Lenoir City $12.50 /$17.54
Roane Central $23.13 /$35.79

Sewer Rates (gallons)
1,500 gal/3,000 gal
Rockwood $12.80 /$20.02
Harriman $19.67 /$33.47
Kingston $12.83 /$24.63
Lenoir City $18.39 /$25.77
Roane County Sewer $25.00 /$25.00

So now the rest of Roane County can see how a rate increase in Rockwood will ripple through the rest of the County that purchases water from Rockwood.

Our suppliers have went up on us to supply our product. So it is eating at our Revenue. So if we do not pass a rate increase we will not be able to keep the quality up on our water...
Everyone is wondering where is the money being spent.
The suppliers are getting it how hard is that to see.
Food has went up, milk has went up, gas has went up, everything has went up...

If your product was milk and you bought it from your supplier for $3 a gallon and you sold it to your customers for $4 a gallon thats good business..
But years later your supplier went up to $5 a gallon and you was forced to keep your price at $4 a gallon how long would your company last?

Rodney, I understand what you are saying but so far I don't see a rational budget process to justify a rate increase. I want to see five year trends in expenses and revenues. What I see so far is the case being made like, "We're out of money so we need a rate increase." That won't cut it. Municipal utilities are notorious for bad budget processes. It is way too easy to let rate payers cover waste and inefficiency. I'm not saying a rate increase is or isn't justified, what I'm saying is that I don't see the budget numbers that tell me enough to make the call one way or another.

Understanding the process is so much more beneficial than looking at a spreadsheet with numbers.

No it is not. Until I see historical trends and ratios nothing else can really be evaluated, unless we'll see a big mess on a tour.

only professors think they don't need to see a process in action in order to see errors. The german have a saying that translates to, "In theory, but..." that is to say, in theory anything can work, but in reality that's not the case all the time. My point is when you get a working knowledge of the process in question, then the data means so much more. Add to that, knowledge of current technology versus that existing within the department also lends itself to understanding the excessive operational costs. But you guys go ahead and gather your data, it will still tell the same story. I applaud you both for going and getting it and doing a thorough investigation of the information--thats more than i can say of the council

I have tried to come up with some numbers.
Both on the employees and revenue.
Everything I show you is not good enough.
" Story of my life with this company here lately"
I see you have alot of time on your hands.
I challenge all of you to go and research the public records and show me your point. This way you can see facts and forget about all the rumors!

( JCE )
I did not reply to this subject to tell people to shut up! I am by far that kind of person! I have done this to let people hear both sides.
Atleast you can see I do care enough about this company to be spending my own time tring to provide facts.

I have worked here for 15 years. I have worked water leaks in January where ice was forming to my beard. I have probally spent christmas with my family seven times in the past fifteen yrs. I put my life on the line to supply customers with Natural gas. Many nights working 36 hours straight just for the customers to be able to wake up the next day to have running water, gas to heat and a toliet that works...

I do feel that I have the right to speak my mind. People have to listen! Let me rephrase that statement! Atleast I have tried to get people to listen!

I have put alot of time and dedication into my job.
Ask my kids!!!!!! They tell me all the time they hate my job because it pulls me away from them. Example: Opening Christmas gifts and I'm not there to watch because I'm out fixing utility issues. Remember I'm not looking for sympathy just stating the facts.

I take alot of pride in my job. I want this town to have the best that I can provide them. I have went through schooling to get my state license for both water and sewer. Which I did succeed at! I went to every course mandated to get qualifications & certifications on Natural Gas.

In this town everyone feeds off of negative comments and rumors.
All we hear is what we do wrong!!! This alone makes it very hard to put your trust in someone and just shut up!

Obviously you do not know me at all. Everyone knows I speak my mind!
Like it or hate it. Remember this is a blog for comments and I am speaking how I feel!!!!!!!!!!

Roane central buys water from Rockwood water dept.
Then sales it to midtown customers, webster subdivision, caney creek rd, the college, and surrounding areas where there pipe line runs to serve these areas.

Roane county sewer and Roane county sewer plant are the same.
They cover the old wal-mart AKA rockwood flea market, the college, Roane plaza, and Grand vista bay, and surrounding areas where there pipe line runs to serve these areas.

I can not answer if they have a board or not..

My point is Rodney that it's not my job to do the research. A competent manager would have these things with him if he walked into a budget meeting asking for more money. In any arena of human endeavor other than government work a manager who shows up asking for more money that unprepared would not be working for me very long. I understand some of that is a symptom of the rubber stamp administrations of the past but I hope those days are over. So do the work now. Maybe you've never had to explain to Yankee owners why you were so far over budget this year and why you can't run one man short per crew, but I have. Maybe you've not had to explain why $20+ million is not a bad purchase price for a company after looking 5 years back and projecting 5 forward, but I have. I know what competent business practices look like and I'd like to see some here.

It's not my intent to be antagonistic. No one including Ray who started this has said absolutely no increase ever. All we say is justify it. Not here on this forum but in a public meeting. I go back to my basic request:

Review the budget, review contract and purchasing procedures, review the need for continued expansion. Are we being efficient in these areas? Discover why they are $5,000,000 in the hole.
Then and only then discuss a rate increase.

I can't serve as I live outside the city although I am a rate payer.

I'd like to see Dean Woodall back on the board.

the following is out of page 6, 1st paragraph of the "Rockwood, Water, Sewer & Gas Board and Rockwood City Council Workshop" document that was held August 3, 2010:

The city of Kingston implemented a similar policy some time back to help delay any huge water rate increase...[it] allows the Utility to stay current with the cost of living expenses we all incur.

What this is referring to is the annual 3% cost of living increase proposed by the department to the board that could be approved by the council in Rockwood. Kingston does this very thing.

It seems to me that a rate increase was passed in Oct. 2007 in the amount of 5% and took effect in Nov. 2007. Not to mention the sewer rate in 2009 being raised another 50% to 150% of the water rate.
The payroll from June 2009 to June 2010 was a total of $1,206,880
A breakdown..Water Dept. $533,177
Sewer Dept. $260,588
Gas Dept. $413,155
Employee Benefits (Retirement, Insurance, Social Security, $1,733,542

In 2006 the Salary was $989,649..That looks like about a 32% increase in 4 years...Expenses were $1,432,963 or a $300,000 increase in 4 yrs. That is 48% or a 12% increase per year. Rates can't be raised fast enough to keep up with this. At some point, spending HAS to be better managed.