CROSSVILLE — At least 120 water residents on Renegade Mountain are concerned about the future of their water supply and system after current operators of the water pumping facility requested the power be turned off to the facility last Friday.

Residents rallied Friday and were able to transfer the power service from Laurel Hills Condominiums Property Owners Association into the name of the Renegade Community Club in order to keep continued water service.

Water service was not disrupted.

Laurel Hills Condominiums POA, the current owner/operator of the private water distribution system on the mountain, planned to suspend service to the water system on Friday afternoon after submitting a request to Volunteer Energy Cooperative (VEC) to cut the electric power to its Mullinix Dr. pump house.

"We have water today and got it put in our name, but we don't know what will happen tomorrow or the next day," said John Moore, Renegade Mountain Community Club president.

The system, which was established sometime in the early 1970s, currently pumps water purchased from the Crab Orchard Utility District up an 800-foot incline to serve approximately 120 customers through 10 miles of piping. There are no individual meters at residences and customers have been paying a flat rate of $25 per month for several years.

"As the numerous developers of Renegade Resort have transitioned in and out through the years, the water system has been plagued with design and quality issues," Moore said.

The Tennessee Department of Environment and Conservation (TDEC), the state’s agency designated to regulate water systems and water quality issues, is actively prosecuting a case against prior owners of the water system, which includes civil penalties, Moore said.

That case is against previous Renegade Mountain owners, Larry McMeans, DBA LKM Group, LLC and Joseph L. Wucher, DBA Renegade Resorts, LLC.

Meg Lockhart, a spokesperson for TDEC, said they do not have any regulatory authority over water systems and fees and that this case is a fee dispute between the water system owner and its users, or customers.

"We do not have any authority over fee disputes," Lockhart said.

Lockhart also stated that previous water quality issues were addressed by Laurel Hills Condominiums POA and they had worked with TDEC and "brought the water system back into compliance."

According to Moore, in May of 2011 the residents' water bills were a flat rate of $25 per month.

"With little explanation from the Laurel Hills water system owners, the rate was dramatically increased to $86.40 per month for all full and part time residents," Moore said.

Michael McClung and Phillip Guettler, directors and officers of Moy Toy, LLC, own Renegade Mountain and are also the directors for the Laurel Hills Condominiums Property Owners Association's water system.

The rate increase occurred in June 2011.

Moore said that property owners rebelled against the 340 percent increase in their water rates, and after reviewing the water system’s known operating costs, agreed to pay the Laurel Hills Condominium POA a rate of $43.20 per month until January 2012 when rates would be "re-evaluated."

"In December, Laurel Hills Water System again set the 2012 rate at $86.40 per month, and the utility also demanded the balance of the $86.40 rate be paid for all of the preceding months in 2011," Moore said.

In a memo letter dated Dec. 30, 2011, the Laurel Hills Condominiums Property Owners Association wrote, "In June 2011, the board of directors of the Laurel Hills Condominiums Property Owners Association approved a monthly water rate of $86.40. This water rate may be viewed by some as an increase from the subsidized rate the previous system owner was charging. However, in setting these rates, the association is required to take into account its operating expenses and the costs associated with water system improvements being mandated by the Tennessee Department of Environment and Conservation."

The letter continues, "The vast majority of the association's water system customers have refused to pay their monthly bills for water service. As a result, the association is now unable to meet its operating expenses, including paying its water supplier, Crab Orchard Utility District ... In an emergency meeting of the association board of directors on Dec. 22, 2011, the board concluded that it had no alternative except to suspend water service to all customers for the nonpayment of the association's water bills by its water customers. Please be advised that water service will be discontinued on Jan. 31, unless Carb Orchard Utility District elects to terminate water service to the association sooner for non payment. The association's board urges the association's water customers to pay their outstanding accounts in full to avoid this water service suspension."

The letter was mailed to customers with their bill and posted at the guard shack at Renegade and at Timeshares at 17 Mount Laurel, Crab Orchard, TN.

Moore said that after he and the community club consulted with environmental attorneys Stites and Harbison of Nashville, it was determined that Laurel Hills water system was required to be regulated by the Tennessee Regulatory Authority (TRA).

Moore said that on Dec. 23, after learning of the homeowners' attempt to have the water system regulated by the TRA, Laurel Hills Condominiums Property Owners Association sent the Dec. 30th letter out to all customers notifying them the water to the mountain would be shut down and turned off Jan. 31.

Crab Orchard Utility District General Manager, Everett Bolin said that he was contacted by Laurel Hills POA and they had requested the water be turned off to the pumping station.

"I told them that we weren't going to turn off the water supply to that many customers," Bolin said.

Bolin said they would continue supplying water to the system.

Laurel Hills Condominiums POA then contacted VEC and requested power service be discontinued to its water pumping station.

The meter was then transferred last Friday evening and put into the name of the Renegade Mountain Community Club.

Moore is unsure about the future of the water system at this point and said Laurel Hills Condominiums POA has abandoned the system.

Michael McClung and Phillip Guettler, directors and officers of Moy Toy, LLC and board members of the Laurel Hills Condominiums POA, were not available for comment.