Category: CMU

Who’s really overseeing Charlotte-Mecklenburg Utilities?

Obviously, City Manager Curt Walton is the top boss. And the Charlotte City Council is Walton’s boss.

But if you’ve followed city government very long you’ve noticed the elected officials tend to let CMUD (technically it’s CMU) have its own way. That’s because CMU is an “enterprise fund” – like the airport – and runs off its own revenues. Because council members don’t have to raise taxes for CMU, they haven’t given it much scrutiny. (Yes, I know that fees come out of people’s pockets, too. But trust me, fee increases don’t raise nearly the political wars that tax increases do.)

So who scrutinizes CMU? I took at look at the CMUD Advisory Committee? That’s a seven-member committee (3 members appointed by the city, 3 by the county, 1 by the mayor). They are to “review and make recommendations to City Council” concerning: all water/sewer capital improvement programs, changes in policies for extending water/sewer service as well as proposed changes in how fees are determined, and pretty much anything else.

Why is this important? Many cities have used utilities as a way to strategically manage growth. It’s less expensive, in the long run, not to have to build and maintain water/sewer lines over every square foot of land. But Charlotte’s powerful developers have never wanted any land set aside from development. Shrinking the supply of land would raise the price of their raw material – undeveloped land. What better way to ensure that no land got set aside than to control the CMUD Advisory Committee?

Another reason it’s important: It’s in the best interests of this whole urban region to encourage more water conservation. What sucks up a disproportionate amount of unnecessary water use?Expansive suburban lawns. But suburban subdivision developers have little interest in not offering suburban lawns.

So who’s on this board? It’s required to have a real estate developer, a water and/or sewer contractor, a civil engineer, a financial expert, a representative from the non-Charlotte towns in the county, and a neighborhood leader.

I took a look at the board. It’s revealing.

The chairman is James Merrifield, a developer with Merrifield Partners, formerly with Crosland. Last year he replaced former chairman Charles Teal, an owner of Saussy Burbank, a developer.

The two engineers are Robert Linkner with HDR and Erica Van Tassel with Kimley-Horn. The contractor is Marco Varela of CITI-LLC, a systems design company. Varela was mentioned in an Observer article in several years back (before his 2008 appointment) as selling wastewater treatment equipment to the city.

So far it’s rather predictable. You’d want some civil engineering expertise, for sure, as well as developer expertise. Yet it’s worth noting that engineering firms are generally hired by developers so they’d have little business reason to tick off potential clients by, say, pushing for using your utility department as part of a growth strategy that might involve setting some areas aside from development. Even if that would probably have been a lot more fiscally sound than stretching water-sewer pipes all over Mecklenburg County and asking all the rate-payers to fund those capital and operating costs.

But what about the people who are presumably supposed to add the non-developer points of view – the neighborhood leader, the towns representative?

The “neighborhood leader” turns out to be a Charlotte Chamber executive, Keva Walton. I suppose he lives in a neighborhood, but you wouldn’t exactly expect him to be a voice in opposition to any business-developer interests.

And that towns representative? It’s David Jarrett, vice president at Rhein Medall Interests, a Charlotte-based developer.

The end.