ADOPTED 02/16/1999

RESOLUTION NO. R99-1393

A resolution establishing operational budget goals to be achieved by the Department of Water and Sewerage Services in FY 2001-02 and FY 2003-04, requesting that the Metropolitan Mayor employ a qualified firm to assist the Department of Water and Sewerage Services in the reengineering effort necessary to achieve these budget goals, and establishing a ad hoc Water Rate Oversight Committee of the Metropolitan Council to monitor the reengineering effort of the Department.

Whereas, the Metropolitan Department of Water and Sewerage Services (the "Department") has made great strides in the reduction of its operating expenses; and

Whereas, a task force was created by Substitute Resolution R98-1196 to propose a plan to the Metropolitan Council which would result in the reduction of rates for water and sewer services while maintaining a high level of service; and

Whereas, the task force completed its study in December of 1998 and included within its final report a recommendation that the Department continue the reengineering effort; and

Whereas, the task force further recommended that an oversight committee be established to monitor the Department’s reengineering efforts; and

Whereas, the Metropolitan Council desires to establish certain goals for the operational budget of the Department, to create an ad hoc Water Rate Oversight Committee of the Metropolitan Council to monitor the Department’s progress in achieving these goals, and to request that the Metropolitan Mayor employ a firm to assist the Department in its reengineering efforts.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: (a) That the Department of Water and Sewerage Services (the "Department") shall undertake cost saving measures necessary to submit to the Metropolitan Mayor the following operational budgets:

FY 2001-2002 $65,500,000.00

FY 2003-2004 $68,500,000.00

(b) These operational budget goals are based on the following assumptions: (1) the current level of water and sewerage flow being treated; (2) no changes in Federal, State or local regulations that would result in an increase in operational costs beyond those currently budgeted; (3) no increase in the electric power rate during this five-year period; and (4) salary and benefit increases of 3% or less annually during the five-year period.

Section 2: In the event the operational budget goals specified in Section 1 are not met, the Metropolitan Council hereby expresses its intent and desire that the Metropolitan Mayor take all actions necessary to pursue privatization by contracting with a private entity to operate the Department.

Section 3: That the Metropolitan Mayor, or his designee is requested to contract with a qualified firm of consultants to review the organizational structure and operational processes of the various divisions of the Department for the purpose of recommending changes to optimize the operations.

Section 4: That the Metropolitan Vice Mayor is requested to appoint an ad hoc Water Rate Oversight Committee of the Metropolitan Council, consisting of five members of the Metropolitan Council, to monitor the Department in its reengineering effort. The authority for the Water Rate Oversight Committee shall terminate five (5) years after the effective date of this resolution.

Section 5: That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Don Majors, Leo Waters, Chris Ferrell, Janis Sontany, Roy Dale, Regina Patton, Stewart Clifton, Norma Hand, Willis McCallister, George Armistead, Bruce Stanley, James Dillard

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee Public Works Committee
Introduced:	January 19, 1999
Deferred:	January 19, 1999; February 2, 1999
Adopted:	February 16, 1999
Approved:	February 24 1999
By: