TAUD UTILITY LEADERSHIP CONFERENCE

1
TAUD UTILITY LEADERSHIP CONFERENCE

• The Law for Commissioners
• Ignorance Is No Excuse

2

• UTILITY DISTRICT COMMISSIONERS SELECTION STATUTE
• -TENNESSEE CODE 7-82-307
• Three Primary Methods
• Appointment By County Mayor
• Election By Members of Utility District
• Board
• Elections By Customers of Utility District
• BEWARE! VARIATIONS EXIST

3
Potential Pitfalls in Filling Vacancies

• Using the Wrong Selection Process
• Failure To Certify To County Mayor Three
• Nominees At Least 30 Days In Advance
• Not Properly Certifying The List Under Seal Of
  Board of Commissioners
• Not Involving All County Mayors In A Multi-County
  Utility District
• Failing To Strictly Follow Notice, Deadline And
  Other Provisions In Customer Elections

4
UTILITY DISTRICT COMMISSIONER COMPENSATION

• Compensation Authorized By Statute Only
• TENNESSEE CODE 7-82-308 AND 309
• Per Diem Payments
• - 300.00 For Water and Sewer Districts
• - 500.00 For Gas Utility Districts
• Group Medical and Life Insurance
• Reimbursement of Actual Expenses Incurred

5

• RECEIPT OF OTHER COMPENSATION
• Demand to Repay the District
• Possible Ouster From Office
• Possible Criminal Prosecution Tennessee Code
  
• 39-16- 402

6
TAKING AND FILING OATH OF OFFICE

• Article 10, Section 1 Of Tennessee
  Constitution
• Tennessee Code 8-18-107 to 114
• Take Oath Before Undertaking Duties
• File With County Clerk
• Penalty For Failure to Do So?

7
Commissioners Authority To Act On Behalf Of
Utility District

• Power Vested In Commissioners
• Tennessee Code 7-82-301
• Commissioners Must Act In Open Meetings
• Tennessee Code 8-44-101 201
• Participation By Electronic Means
• Can Participate If Requirements Of
  Tennessee
• Code 8-44-108 Followed

8
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Annual Reporting
• Publication Of Information Including
• Financial Condition Of District
• Earnings Of District
• Water Rates Charged
• Methodology of Determining Rates
• Filing of Annual Audit with County Mayor
• Notification To Customers Of UMRB And
• Method Of Filling Vacancies On Board of
  
• Commissioners

9
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Fraud Reporting
• Local Government Instances Of Fraud
• Reporting Act
• Tennessee Code 8-4-501 505
• Affirmative Duty To Report Fraud to Comptroller

10
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Code of Ethics
• Comprehensive Governmental Ethics Reform Act of
  2006
• Know How To Handle Ethics Complaint

11
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Conflict Of Interest
• No Direct Interest In Contract With District
• No Indirect Interest Unless Acknowledged

12
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Approval Of Bill Adjustments
• Uniform Accounting Manual For Tennessee Utility
  Districts
• - only legitimate adjustments
• - adjustments documented
• Monitor Employee Pay and Payroll
• Adopt Payroll Policy
• Adopt Pay Plan
• Review Benefits Packages To Ensure Compliance
  With Board Action

13
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Ensure Adequate Separation Of Employee Duties
• No Complete Control Over Transactions
• Board Involvement?
• Competitive Bidding Requirements
• Utility Districts Subject To Competitive Bidding
• Document Purchases And Any Exceptions

14
LEGAL DUTIES IMPOSED ON COMMISSIONERS

• Use Of Licensed Contractors
• Maintenance Of Minutes
• Use Of Utility Facilities For Personal Gain

15
QUESTIONS, COMMENTS OTHER OBSERVATIONS