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
Potential Pitfalls in Filling Potential Pitfalls in Filling VacanciesVacancies
Using the Wrong Selection ProcessUsing the Wrong Selection Process
Failure To Certify To County Mayor ThreeFailure To Certify To County Mayor Three Nominees At Least 30 Days In AdvanceNominees At Least 30 Days In Advance
Not Properly Certifying The List “Under Seal Of Board Not Properly Certifying The List “Under Seal Of Board of Commissioners”of Commissioners”
Not Involving All County Mayors In A Multi-County Not Involving All County Mayors In A Multi-County Utility DistrictUtility District
Failing To Strictly Follow Notice, Deadline And Other Failing To Strictly Follow Notice, Deadline And Other Provisions In Customer ElectionsProvisions In Customer Elections
UTILITY DISTRICT COMMISSIONER UTILITY DISTRICT COMMISSIONER COMPENSATIONCOMPENSATION
Compensation Authorized By Statute Compensation Authorized By Statute OnlyOnly
TENNESSEE CODE § 7-82-308 AND 309TENNESSEE CODE § 7-82-308 AND 309
Per Diem PaymentsPer Diem Payments- $300.00 For Water and Sewer Districts- $300.00 For Water and Sewer Districts- $500.00 For Gas Utility Districts- $500.00 For Gas Utility Districts
Group Medical and Life InsuranceGroup Medical and Life Insurance
Reimbursement of Actual Expenses IncurredReimbursement of Actual Expenses Incurred
RECEIPT OF OTHER COMPENSATION
• Demand to Repay the District
• Possible Ouster From Office
• Possible Criminal Prosecution – Tennessee Code § 39-16- 402
TAKING AND FILING OATH OF TAKING AND FILING OATH OF OFFICEOFFICE
• 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?
Commissioner’s Authority To Act Commissioner’s Authority To Act On Behalf Of Utility DistrictOn Behalf Of Utility District
Power Vested In CommissionersPower Vested In Commissioners Tennessee Code § 7-82-301Tennessee Code § 7-82-301
Commissioners Must Act In Open Commissioners Must Act In Open MeetingsMeetings
Tennessee Code § 8-44-101 – 201Tennessee Code § 8-44-101 – 201
Participation By Electronic MeansParticipation By Electronic Means Can Participate If Requirements Of Can Participate If Requirements Of
Tennessee Tennessee Code § 8-44-108 Followed Code § 8-44-108 Followed
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Annual ReportingAnnual Reporting
o Publication Of Information IncludingPublication Of Information Including
1.1. Financial Condition Of DistrictFinancial Condition Of District
2.2. Earnings Of DistrictEarnings Of District
3.3. Water Rates ChargedWater Rates Charged
4.4. Methodology of Determining RatesMethodology of Determining Rates
o Filing of Annual Audit with County MayorFiling of Annual Audit with County Mayor
o Notification To Customers Of UMRB And Notification To Customers Of UMRB And Method Of Filling Vacancies On Board of Method Of Filling Vacancies On Board of CommissionersCommissioners
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Fraud ReportingFraud Reporting
Local Government Instances Of FraudLocal Government Instances Of Fraud Reporting ActReporting Act
Tennessee Code § 8-4-501 – Tennessee Code § 8-4-501 – 505505
Affirmative Duty To Report Fraud to Affirmative Duty To Report Fraud to ComptrollerComptroller
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Code of EthicsCode of Ethics
Comprehensive Governmental Ethics Comprehensive Governmental Ethics Reform Act of 2006Reform Act of 2006
Know How To Handle Ethics ComplaintKnow How To Handle Ethics Complaint
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Conflict Of InterestConflict Of Interest
No Direct Interest In Contract With No Direct Interest In Contract With DistrictDistrict
No Indirect Interest Unless No Indirect Interest Unless AcknowledgedAcknowledged
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Approval Of Bill AdjustmentsApproval Of Bill Adjustments
Uniform Accounting Manual For Tennessee Uniform Accounting Manual For Tennessee Utility DistrictsUtility Districts
- only legitimate adjustments- only legitimate adjustments - adjustments documented- adjustments documented
Monitor Employee Pay and PayrollMonitor Employee Pay and Payroll
Adopt Payroll PolicyAdopt Payroll Policy Adopt Pay PlanAdopt Pay Plan Review Benefits Packages To Ensure Review Benefits Packages To Ensure
Compliance With Board ActionCompliance With Board Action
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Ensure Adequate Separation Of Ensure Adequate Separation Of Employee DutiesEmployee Duties No Complete Control Over TransactionsNo Complete Control Over Transactions Board Involvement?Board Involvement?
Competitive Bidding RequirementsCompetitive Bidding Requirements Utility Districts Subject To Competitive BiddingUtility Districts Subject To Competitive Bidding Document Purchases And Any ExceptionsDocument Purchases And Any Exceptions
LEGAL DUTIES IMPOSED ON LEGAL DUTIES IMPOSED ON COMMISSIONERSCOMMISSIONERS
Use Of Licensed ContractorsUse Of Licensed Contractors
Maintenance Of MinutesMaintenance Of Minutes
Use Of Utility Facilities For Personal Use Of Utility Facilities For Personal GainGain