The Cobb County-Marietta Water Authority Board of Directors on Monday neither accepted nor rejected a "memorandum of understanding" from the City of Canton to unload the Hickory Log Creek Reservoir, signaling to the city it will have to make a better offer.
Canton asked the Cobb County-Marietta Water Authority to take over full ownership of the Cherokee County reservoir, which is now 25% owned by Canton and 75% owned by Cobb.
In exchange the Cobb water authority will assume Canton's estimated $27 million debt the city owes for building the reservoir, and Canton will retain the rights to 6 million gallons of water a day from the reservoir.
Canton first presented the memorandum of understanding to the Cherokee County and Water and Sewage Authority. Cherokee approved of the outline, then Canton presented it to Cobb. Because of Cobb's 75% ownership, it has right of first refusal with any deal Canton makes with another party over the reservoir.
"Sounds like a sweet deal for somebody, but I don't know that we're in a position to take action," Cobb water authority board chairman and Smyna Mayor Max Bacon said before the measure was introduced and the authority voted 7-0 to take it "under advisement" rather than approving, rejecting or taking no action on the memorandum.
Bacon and fellow authority board member and Cobb County Commission chairman, Tim Lee, indicated after the meeting that the deal will need considerable refinement -- and sweetening on Cobb's end -- before it goes anywhere.
Cobb authority general manager Glenn Page said afterward that the authority doesn't know what to expect next, whether Canton and the Cherokee water department will come back with an actual offer Cobb can consider, instead of a memorandum, which is non-binding.
Board members indicated if Canton and the Cherokee water authority make an offer for the reservoir in writing -- essentially putting their money where their mouth is -- Cobb then will seriously weigh the deal. If Cobb then rejects the deal, Canton can go forward with it.
The reservoir has been under construction since 2005 and the cost of building it has gone from the first estimate of about 20 million to a price tag now of about $120 million, according to Canton officials. Cobb officials say the tab is closer to $100 million.
The 414 acre reservoir, which holds about 6 billion gallons of water, has not delivered a drop yet, and likely won't be in operation until late next spring.
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