The city’s insurance company, The Pool, denied coverage in a certified letter to Mayor/City Manager Irene Wells dated March 11.

“The policy provided by The Pool specifically excludes coverage for any claim involving claims arising out of the actual, alleged, or threatened discharge of pollutants,” the letter says.

Four city officials contacted about the denial of coverage would not answer questions about it from the Bristol Herald Courier.

Pat Hardy, with the University of Tennessee’s Municipal Technical Advisory Service, said Wednesday that he believes the city’s only option if the lawsuit is lost would be to pay out of pocket.

“Pollutants” isn’t clearly defined in the letter, but it states that any waste dealt with from handling, testing, monitoring, treating and storing by the city or others that the city is legally responsible for are excluded from coverage.

Filing a limited liability pollution claim only covers “sudden occurrences,” meaning accidents of discharged, dispersed, released or escaped pollutants that occur above ground and are not within or on the surface of any lake, stream, surface water, or other body of water. It also states that claims will be covered when damages are from the accidental rupture, backup, or overflow of the municipality’s sanitary sewer, storm sewer, or water supply systems. But both are true only if the pollution from the accident ends within 72 hours.

“The plaintiffs allege that they began to have problems with sewage overflow caused by a failed pump station,” the letter states. “The pump failed on multiple occasions and plaintiffs allege that they were inundated with raw sewage to the point some of the sewage made its way to Boone Lake. This does not fit the definition of sudden occurrence which is required to trigger coverage under the Limited Liability Pollution definition.”

Accidents that are the result of an intentional wrongful act, error, or omission on the city’s part are also excluded unless reasonable force must be used to protect people or property, or if an error is made in the selection of the intended subject or location of the act.

“The plaintiffs allege in their complaint that the City refused to address the overflow of sewage onto their property,” the letter says. “This has not been proven, but if proven, it would be deemed an intentional act or an act where the outcome of that act, or failure to act, was known or expected.”

Bluff City Attorney Paul Frye would only confirm that the city does have insurance when contacted for comment on the insurance company’s denial of coverage.

Wells, Alderman John Harrison and Alderwoman Sandra Madison declined comment. Vice Mayor Ray Harrington and Aldermen Jack Stratton and Richard Bowling could not be reached for comment.

The city is working to improve its sewage troubles. Work will begin to repair two inefficient pump stations on June 20 and they are expected to be operational by Dec. 17. Their repair is the first of two phases in the city’s $3.6 million project to repair its sewage and water systems. The U.S. Department of Agriculture set aside nearly $3.4 million for the project.