Cherokee, Cobb Outline Framework for Possible Water Merger

Saddled with debt from the Hickory Log Creek Reservoir, the Canton City Council on with the Cherokee Water & Sewerage Authority and the Cobb County-Marietta Water Authority. The endorsement came in the form of a non-binding memorandum of understanding "intended to provide the framework for a more definitive binding contract that the parties will agree to at a later date."

As outlined in the memo, this is the verbatim proposal on the table:

• Cobb will pay Canton an amount equal to the total paid by Canton on its bonds for the Reservoir.
• Cobb will assume the remaining bonded indebtedness owed by Canton for the Reservoir.
• Canton will relinquish 5.2 million gallons per day of the Reservoir capacity to Cobb. The remaining 6 million gallons per day of Canton's current capacity shall be transferred to Cherokee to be held and used for Canton's future water supply needs.
• The agreement between Cobb and Canton as to the joint operation of the Reservoir will terminate, so that Cobb-Marietta will have full decision-making authority over the Reservoir and Canton will no longer have any responsibility for the expenses of the Reservoir.
• The Reservoir shall remain available for recreational use by the public, as provided in the Reservoir Management Plan.
• Canton shall transfer its water and sewer treatment plants to Cherokee, and Cherokee shall assume responsibility for operating and maintaining the plants. Cherokee shall not be required to keep the plans operational and shall have the sole discretion to decommission the plans.
• Cherokee will sell water to Canton at its wholesale rates.
• Cherokee will provide sewage treatment to Canton at its wholesale rates.
• Canton will remain responsible for operation and maintenance of the water distribution system, including customer service and billing/collection of customer accounts.
• Canton will remain responsible for the sewer collection system, including customer service and billing/collection of customer accounts.
• All agreements between Canton and Cherokee regarding water and sewer shall terminate and be superseded by the final agreement contemplated by this Memorandum of Understanding.