Athens City Charter

Section 1. Be it further enacted, That except as otherwise provided in this Act and in general law, the purchase, production and distribution of electricity, gas and water by the City of Athens, both within and without the limits of the city, and the agencies and facilities used for such purposes, shall be under the jurisdiction, control and management of a board to be known as the "Athens Utilities Board," to be constituted as hereinafter set forth. The collection, interceptor, and treatment systems for wastewater and any other facilities, equipment and appurtenances necessary or appropriate for the treating or disposal of sewerage shall be under the jurisdiction, control and management of the Athens Utilities Board. [As amended by Priv. Acts 1990, ch. 213, § 10]

Definitions

Section 2. Be it further enacted, That the following terms, whenever used or referred to in this section, shall have the following respective meanings unless a different meaning clearly appears from the context:

1. (a) "Board" shall mean the Athens Utilities Board.
2. (b) "Commissioner" shall mean an individual member of the Board.
3. (c) "System" shall mean and shall include the water system, the sewerage system, the gas system, and the electric distribution system and any other revenue producing utility system which the City Council may place under the jurisdiction, control and management of the board pursuant to Section 16 of this Article.
4. (d) "Division" means the part of the system that includes all of one branch of the operation of the system, such as the branch having charge of the electric power operations or the branch having charge of the water operation or the branch having charge of the gas operation or the branch having charge of the sewerage operations.
5. (e) "Act" means the charter of the City of Athens. [As amended by Priv. Acts 1990, ch. 213, § 11]

Section 3. MEMBERS OF THE BOARD: Be it further enacted, That the Board shall consist of five Commissioners. No person shall be eligible to the office of Commissioner unless he shall have been for at least three years next preceding his appointment, a citizen and a bona fide freeholder in Athens, Tennessee, and at least twenty-five years of age.

Section 4. Be it further enacted, That four of the first members of the Athens Utilities Board shall be appointed by the City Council and shall serve for the following terms, or until their successors are appointed and qualified:

One member to serve until the first Monday in July 1957; one member to serve until the first Monday in July 1956; one member to serve until the first Monday in July 1955; one member to service until the first Monday in July 1954. One member to be appointed by the Mayor from the City Council to serve until the first Monday in July 1955. Thereafter all appointments shall be for a period of four years with the exception of the person named from the City Council who shall serve for a period of two years.

All appointments, except the person named from the City Council, shall be confirmed by a majority vote of the City Council. Any Commissioner who shall cease to possess any of the qualifications herein enumerated shall forthwith forfeit his office. Failure of the City Council, either to approve or disapprove a nominee, for a period of thirty days following notice of such nomination to the Council, shall be deemed a confirmation. In case the nominee is disapproved by a majority vote of the City Council, a new nomination shall be made in accordance with the procedure provided herein for nominations.

The chairman shall receive a salary for his services of two hundred fifty dollars ($250) per month; and the other commissioners shall receive a salary for their services of two hundred dollars ($200) per month; and further that the salaries may be adjusted annually at the same percentage rate as received by the full-time employees of the Athens Utilities Board. [As amended by Priv. Acts 1971, ch. 136, § 3, and Priv. Acts 1987, ch. 56, sec. 1; and Priv. Acts 1998, ch. 164, § 5]

Section 5. DIVISIONS WITHIN SYSTEM: Be it further enacted, That the system shall be divided into a Division of Water, a Division of Power, a Division of Gas, and a Division of Accounts. In lieu of a separate Division of Sewers, the board may combine the sewerage system into the Division of Water; provided, however, that the Division of Accounts shall maintain the financial affairs of the water and sewers systems separately unless otherwise directed by the board. The Division of Water shall control the operation and management of the water properties of the system, except insofar as the financial affairs thereof shall be under the Division of Accounts. The Division of Power shall control the operation and management of the electric properties of the system, except insofar as the financial affairs thereof shall be under the Division of Accounts. The Division of Gas shall control the operation and management of the gas properties of the system, except insofar as the financial affairs thereof shall be under the Division of Accounts. The Division of Accounts shall control the collection of all accounts of the system, and the disbursement of all monies of the system. The detailed division of duties between these respective divisions, the sub-divisions of divisions, and the creation of other staff positions and subordinate offices, shall be subject to the rules and regulations prescribed by the board. [As amended by Priv. Acts 1977, ch. 60, § 1, and Priv. Acts 1990, ch. 213, § 12]

Section 6. MEETINGS AND ORGANIZATIONS OF BOARD: Be it further enacted, That the board shall elect from among its members a Chairman who shall preside over the meetings of the board, and a Vice-Chairman who shall act for the Chairman during his absence or disability. The board shall also elect a Secretary who shall be either a Commissioner or a full time employee of the system. The Secretary shall keep the minutes of the meetings of the board and shall perform such other duties as the board may prescribe. Commissioners who are elected to the office provided for in this paragraph shall receive no additional salaries for their services. However, the board may provide for the payment of a reasonable salary to the Secretary if the Secretary is not a Commissioner.

An annual election of officers shall be held at the regularly scheduled meeting of the board held in the first month of the fiscal year. If the Secretary is not a Commissioner, he shall hold office at the will of the board. The board shall have the right to adopt by-laws, not inconsistent with the provisions of this Act. These by-laws may provide the time, place and manner of holding both regular and special meetings of the Board. All such meetings shall be public and no action shall be taken by the board except by the affirmative vote of at least three Commissioners. Three Commissioners shall constitute a quorum of the board, but a smaller number may adjourn from day to day. The General Manager and the Division Superintendents hereinafter provided for, shall attend all meetings of the board, and shall have a seat and voice but no vote in such meetings. Except as otherwise expressly provided herein, action by the board may be by motion or by resolution passed on a single reading and may be made effective immediately upon passage. [As amended by Priv. Acts 2005, ch. 23, § 2]

Section 7. POWERS OF BOARD: Be it further enacted, That

1. (a) Independent Control -- Except as expressly provided in this section, the board shall have and exercise and is hereby granted all the powers and duties possessed by the City of Athens to construct, acquire, expand or operate the system. The board, either by itself or by its duly authorized officers and employees, shall have and maintain full control and complete jurisdiction over the management and operation of the system and may make all contracts and do any and all acts and things that are necessary, convenient or desirable in order to operate, maintain, enlarge, extend, preserve and promote an orderly, economic and businesslike administration of the system. Except as expressly provided in this section, the system shall be free from the jurisdiction, direction or control of other city officers and employees and of the City Council.
2. (b) Surety Bonds -- The board shall require corporate surety bonds from such of the system's officers and employees and in such amounts as the board shall deem necessary. Premiums for such bonds shall be paid out of the funds of the system.
3. (c) Fix Rates -- The board shall fix rates to be charged for services rendered by the system. Such rates shall be fair, reasonable and uniform for all customers in the same class, but different rate schedules may be applied to different classes of customers, as determined by the board. Rates within the city may be less but not greater than rates for the same class of service outside the city. The rates for the electric service shall be fixed in conformity with the resale rates that the city is required to charge by the city's contractual obligations with the Tennessee Valley Authority.
4. (d) Contract, Leases and Agreements -- The board may, in the operation of the system, either by itself or by its duly authorized officers and employees, execute deeds and enter into leases, contracts, and agreements, provided the term of such leases, contracts and agreements shall be limited to not more than twenty years from the date of performance thereunder is to begin, and not more than twenty-two years from the date of the execution thereof. All contracts whereby the system agrees to supply electric service or gas service, or water service, or two or more of the foregoing services, for a longer period than one year from the time of the execution of such contracts, shall be subject to the condition that the rates at which such service is to be provided after the expiration of one year from the date of the contract, shall conform to the rates being charged other customers for similar service. The time limit prescribed in this paragraph for the duration of contracts and agreements shall not apply to bond issues. The authority given the board by this section shall not be construed to give the board authority to sell or lease all or a major portion of any division of the system, unless such transaction is approved by the City Council by an ordinance, which ordinance, shall not be passed as an emergency ordinance.
5. (e) Advances to System for Extensions -- The board is authorized to allow any person, firm or public or private corporation to pay all or part of the cost of making an extension or extensions of the system to reach customers under an agreement whereby such extension or extensions shall, when made, become the property of the city as a part of the system and the board may further agree that the city shall pay a proportionate part of the net or gross receipts accruing to the system from such extension or extensions to the entity advancing the cost thereof, with or without interest on the amount of such advance; provided, however, the board can incur no such obligation for a longer period than fifteen years from the time of the completion of such extension or extensions. Advances or loans made to the system under this paragraph shall not be subject to limitations or restrictions provided for elsewhere in this Act.
6. (f) Short Term Loans -- The board is hereby authorized to borrow money for periods of not to exceed one year and to issue negotiable notes, payable from the revenues of the system or a part thereof, as evidence of such loans; but the making of such loans must be approved by the City Council when the total amount of such outstanding short term loans, including any loan being made, exceeds Five Hundred Thousand Dollars ($500,000.00). Such short term notes shall bear interest at not exceeding six per centum (6%) per annum and the action of the board may be by a resolution or resolutions which may be adopted at the same meeting at which introduced and shall take effect immediately upon adoption.
7. (g) Personal Improvement Bonds -- The Board is hereby authorized to issue bonds of the city for additions, extensions or other permanent improvements to any one or more of the systems under the jurisdiction and control of the Board, but such bonds shall be payable exclusively from the revenues of the system or systems so improved. The issuance of such bonds may be authorized by a resolution of the Board without submitting to the City Council, electors or taxpayers of the city the question of the issuance of such bonds or the resolution authorizing the same. The provisions of this paragraph shall be effective without regard to other provisions of this charter governing bonds and are not subject to the limitations and restrictions imposed as to any other bonds authorized to be issued by this charter. The bonds shall be issued in such amount, shall mature, bear interest, be of such form and denomination, be executed, be subject to such terms of redemption with or without premium, and may be sold publicly or privately, all in the manner and method prescribed by the resolution of the Board authorizing such bonds. Such bonds shall be fully negotiable, and the bonds and the income therefrom shall be exempt from all state, county and municipal taxation except inheritance, transfer and estate taxes. The provisions of Sections 6-1622 to 6-1625, inclusive, of Tennessee Code Annotated shall be applicable with respect to the security of such bonds and the remedies of the holders of such bonds as if the provisions of said sections were herein set out in full.
8. (h) Other Bonds and Notes -- The authority given the City of Athens to issue bonds or notes may be exercised for the benefit of the system or a part thereof in accordance with the provisions of this charter or in accordance with other statutory authority. However, no bonds or notes payable out of the revenues of the system or a part thereof shall be issued without the consent and approval of the board, which consent and approval may be given by a resolution or resolutions of the board which may be adopted at the same meeting at which introduced and shall take effect immediately upon adoption. Where such bonds or notes are payable only out of the revenues of the system or a part thereof and are not general obligation bonds or general obligation notes of the city, the City Council and the board shall have full authority to provide for the issuance of such bonds or notes, without submitting to electors or taxpayers the question of issuing such bonds or notes, or the ordinance or resolution authorizing the same. Bonds authorized by this subsection may be made callable.
9. (i) Rules and Regulations -- The board shall have authority to make and enforce all necessary and desirable rules and regulations for the efficient use, operation and management of the system.
10. (j) Joint Use of Poles and Other Property -- The board shall have the power to make agreements or contracts with any person, firm or public or private corporation for the joint use of poles and other property, belonging either to the system or such other person, firm or corporation or belonging jointly to both parties.
11. (k) Eminent Domain -- The board is hereby given the same power and authority to exercise the right of eminent domain on behalf of the system which power and authority is now possessed by, or may hereafter be given the City Council.
12. (l) Investment of Surplus Funds -- The board shall have power to invest its surplus funds only in securities in which the Sinking Fund Board is authorized to invest its funds.
13. (m) To Employ Attorney -- The board shall have the power to appoint an attorney or attorneys, to prescribe his duties and fix his compensation.
14. (n) Salaries -- The board shall have the power to fix the salaries of all officers and employees of the system. This power may be delegated by the board to the General Manager.
15. (o) Security for Service Charges -- The board shall have the right to require reasonable deposits as security for the payment of charges for service rendered by the system, or, by and with the consent of the owner of the premises served, the board may make such charges a lien on the real property, to the occupants of which such services are rendered.
16. (p) Promotion Expenditures -- The board shall have the power to authorize reasonable expenditures for advertising and otherwise promoting the increased use of the services of the system. [As amended by Priv. Acts 1955, ch. 269; replaced by Priv. Acts 1957, ch. 273, § 1; and amended by Priv. Acts 2004, ch. 92, § 10]

Section 8. DUTIES OF THE BOARD: Be it further enacted, That

1. (a) Separate Accounts for Separate Divisions of the System -- The board shall require that separate books and accounts be kept on the electric, the gas, and the water operations, so that said books and accounts will reflect the financial condition of each division to be placed in separate funds to the end that each division shall be self-sustaining.
   
   Each of said divisions shall be operated independent of the others, except as herein otherwise provided and except insofar as the board may be of the opinion that joint operations shall be advisable and economical, in which event the expense incurred, including the compensation of said Commissioners, and other executive and attorneys, in such joint operation, shall be prorated between the three divisions in such manner as the board determines to be equitable.
2. (b) Auditing -- An independent certified public accountant, not an employee of the city or the system, shall be employed by the board to make such audits and reports as the board may deem necessary. Before any independent accountant shall be employed by the board in accordance with the provisions of this paragraph, the accountant to be employed shall be approved by the City Council.
3. (c) Reports to City Council -- It shall be the duty of the board to furnish to the City Council, through the City Manager (or if no City Manager, the Mayor) an annual report of the operation of the system, which report shall be kept on file in the City Manager's office and open to public inspection during regular office hours.
4. (d) Sufficient Power, Water and Gas Rates -- The board shall charge sufficient rates respectively for electric power, water and gas to pay all obligation heretofore or hereafter incurred by the city on account of the ownership and operation respectively of the electrical division, water division, and the gas division, including all legal claims, or judgments for which the city has heretofore been, or may hereafter be liable on account of the ownership and operation of the electric division, water division or gas division, and including the payments to the city in lieu of taxes as hereinafter provided. Such obligations, whether in the form of bonds or otherwise, shall be provided for in the respective budgets of the respective electric, water and gas divisions and need not be included in the general city budget.
5. (e) Payments in Lieu of Taxes on Electric, Water and Gas Properties -- From the separate revenues of the respective electric, water and gas divisions, the board may pay in to the general funds of the city respective sums equal in amount to that which would be the separate respective city real and personal property taxes on the respective electric, water and gas properties within the city limits of the City of Athens, if such properties were privately owned. The separate valuation of the respective electric, water, and gas properties for determining the amounts of the respective payments required by this paragraph shall be made by the Director of Finance at the same time tax assessments are made, but the board shall have the right to appeal from the decision of the Director of Finance in the same manner as any taxpayer who considers a tax assessment excessive. Payments to the city in accordance with the provisions of this paragraph shall be made in equal monthly payments or in any manner mutually agreed upon by the governing bodies.
   
   From the respective separate revenues of the electric, water and gas properties, the Board may pay an amount or amounts equivalent to the respective amounts that would be payable for State and County real and personal property taxes in each county in which there are electric, water or gas properties, if said properties were privately owned. The valuation thus fixed by the board shall be final. In order to assist counties in estimating their budget requirements, the board shall fix the valuations upon which any amount or amounts to be paid by the State and County is based, not later than the time county budgets are adopted. Payments provided for in this paragraph shall be made annually before the date upon which State and County taxes become delinquent.
   
   Payment in lieu of taxes on the electric, water or gas properties may be made to the city, county or state only so long as the governmental body to which such payment is made, does not levy a property tax upon such electric, water or gas properties.
6. (f) Participation in City Employees' Pension Fund -- From the revenues of the water division, from the revenues of the electric division, and from the revenues of the gas division, the board may pay into the City Employees' Pension Fund the amount that the city is required to contribute thereto by reason of participation therein of the employees of those respective divisions in the event such pension funds are hereafter established. [As amended by Priv. Acts 1957, ch. 273, § 2; and Priv. Acts 2004, ch. 92, § 11]

Section 9. GENERAL OBLIGATIONS OF CITY AND EXISTING CONTRACTS: Be it further enacted, That the board shall cause to be paid all obligations for which the city may now be or may hereafter become liable because of the ownership and operation of the system. All such obligations shall be paid as they fall due. All such obligations, including bonds and notes, which are general obligations of the city, may be paid either directly to those to whom the obligations are owed or to the Treasurer of the city for payment over to those entitled to such payments. This Act shall not in any way impair any obligations heretofore entered into by the city and shall not change or alter the obligations of any existing contracts, all of which insofar as they apply to the system, shall be binding on the board.

Section 10. CHANGE OF RATES: Be it further enacted, That the board shall make no change in the rates to be charged consumers of electric power, gas or water services unless the resolution providing for such change has been read and passed at two regular meetings not less than two weeks apart. [As amended by Priv. Acts 2007, ch. 3, § 2]

Section 11. OBLIGATIONS OF SYSTEM: Be it further enacted, That the board or its authorized representative, may sue and be sued in the name of the City of Athens and may make contracts and incur liabilities in the name of the board, but any obligation thus created shall be payable only out of the revenues of the water division if incurred solely on account of such division, or out of the revenues of the electric division if incurred solely on account of such division, or out of the revenues of the gas division if incurred solely on account of such division, or out of the revenues of the system if incurred jointly on account of the water and of the gas and of the electric division. All contracts and agreements made by the board or its authorized representatives shall contain a provision stating the revenues from which the obligations incurred thereunder are payable, but the failure to include such a provision in any contract shall not prevent the application of the limitation on the city's liability imposed by this paragraph.

Section 12. EXPENDITURES AND CREATION OF OBLIGATIONS: Be it further enacted, That no money shall be drawn from the treasury of the system nor shall any obligation for the expenditure of money be incurred except in pursuance of appropriations made by the board. No claim against the system shall be paid unless evidenced by a voucher approved by the Superintendent of the division for which the indebtedness was incurred, or by some other employee to be designated by such superintendent. All checks drawn on the funds of the system shall be signed by the Superintendent of the Division of Accounts, or his deputy, or countersigned by some other employee to be designated by the board.

Section 13. GENERAL MANAGER: Be it further enacted, That the board shall appoint a General Manager of the system who shall have executive ability and experience sufficient to qualify him for the management of the system, who shall be responsible to the board and who shall serve at the pleasure of the board.

Section 14. SUPERINTENDENT OF DIVISIONS: Be it further enacted, That the General Manager is hereby empowered to appoint Superintendents for each of the four divisions heretofore established and directors of other staff positions as may be established. Such superintendents and directors shall have the executive ability and experience sufficient to qualify them for the management of their respective divisions. The superintendents and directors, subject to the supervision of the General Manager, shall have direct supervision and control of the work of their respective divisions. The superintendents and directors shall be immediately responsible to the General Manager and shall be removable by him at any time. The superintendents and directors, subject to the approval of the General Manager, shall appoint, promote, demote, transfer and remove all employees of their respective divisions. [As amended by Priv. Acts 1977, ch. 60, § 2]

Section 15. REMOVAL OF COMMISSIONERS: Be it further enacted, That any Commissioner may be removed for the causes and in the manner provided by the general ouster law of the State, the provisions of which are now found in Section 1877 to 1902, inclusive, of the Code of Tennessee.

The board may by an affirmative vote of four-fifths of its members, remove any Commissioner for misconduct, malfeasance, or for any other just and sufficient cause, after due trial before the board, following ten days' notice in writing of the specific charges against him.

Section 16. Be it further enacted, That it is the intent and purpose of this Act to create the board as a separate unit of city government insofar as control, management and operation of the electric power, gas and water properties are concerned, but nothing in this Act shall be construed to release or relieve the board, its officers or employees from the provisions of the city charter, except as herein provided. This Act shall be liberally construed to accomplish the purpose and intent expressed herein.

When the City Council shall act pursuant to this section on any other revenue producing utility, the board shall control and manage such utility in the same manner as the other systems. The board may combine such other utilities into a division but shall maintain separate financial records of the revenue and expenditures for each system unless otherwise directed by the City Council. [As amended by Priv. Acts 1990, ch. 213, § 13]

Section 17. Be it further enacted, That upon a majority vote of the City Council any other revenue producing utility hereafter created, including the operation of sewerage system and/or a sewerage disposal system, may be combined with and made a part of the Athens Utilities Board as herein pertaining the electric, gas and water systems.

Section 18. Be it further enacted, that the Athens Utilities Board shall prescribe by resolution the maximum expenditures which the general manager may make without specific authorization of the board and shall prescribe rules for competitive bidding. The limit for competitive bidding shall be consistent with the amount specified in Article IX, Section 2(i) entitled "Maximum Expenditures by City Manager". Any exceptions to competitive bidding established by state law shall apply to purchases by the Athens Utilities Board including, but not limited to, those exceptions set forth in section 6-56-304. When any contract is not awarded to the lowest bidder, the reason for such action shall be given in writing to the Athens Utilities Board of Directors. [As amended by Priv. Acts 1976, ch. 260, § 2; Priv. Acts 1990, ch. 213, § 7; Priv. Acts 1992, ch. 215, § 13; Priv. Acts 2001, ch. 16, § 2; and Priv. Acts 2005, ch. 23, § 3]