A referendum ordinance to expand the MLGW board to include suburban representation narrowly passed during the Tuesday, July 9 Memphis City Council meeting.
Members approved the item 6-5. If the ordinance passes on a third and final reading, it will be added to the November ballot.
“This was an item that was brought to us from people outside of Memphis, requesting that we add two voting board seats,” said Councilman Jeff Warren. “It’s my understanding that the people that brought this to us, they just want us to vote on it, up or down. I think that it would be reasonable for us to take this, move it downstairs and go for three readings.”
During the close of the earlier Memphis, Light, Gas & Water Committee meeting, the item failed on a voice vote, after chairman JB Smiley ruled it didn’t reach a seven-vote majority to proceed. However, the item was added to the consent agenda, after members consulted with Council Attorney Alan Wade in council chambers.
Consent agenda items are voted on without debate.
Its reintroduction drew no objections, despite an earlier motion from Smiley to delay a vote for two weeks and continue discussion that overwhelmingly passed.
Earlier, Smiley ruled that motion by Warren to let the item proceed before the full council failed to muster a seven-vote majority, as required by the rules.
The failed motion was packaged with an amendment. With the updated proposal, one proposed seat would go to a resident of unincorporated Shelby County – Arlington and Lakeland – while the other would go to a resident of Collierville, Germantown or Millington.
The former receives all three services – gas, electric and water – from the utility. They would receive a “full voting power seat.” The latter, meanwhile, only receive electricity and gas from MLGW. As a result, their choice would be excluded from any water-related issues.
If the referendum passes in November, City of Memphis Mayor Paul Young would make the nominations. City council approval would follow.
Names are already being thrown in the hat. A local environmental group has already pitched a nominee to Warren.
Currently, all five voting board members are required to reside within the city limits of Memphis.
The proposed ordinance follows a resolution passed by the MLGW board in April, to increase its membership. Two seats would be added to represent areas outside the Memphis city limits, particularly the suburbs.
Over the years, the utility’s charter has been amended several times. A home rule ordinance was passed in 1983. Prior to that, members were only required to live within Shelby County.
MLGW was created in 1939. A board was soon established that had three members. It was expanded to five members in 1951. By 1980, the utility’s president and vice president were no longer considered members of the board.
MGLW Committee members were also informed that the utility and Tennessee Valley Authority are working together to design a greywater treatment facility at the incoming xAI facility in Southwest Memphis.
Both are slated to receive design plans and cost of the facility from a local engineering firm, CDM Smith, within the month.
xAI is an artificial intelligence company founded by businessman Elon Musk, who also founded Space X and Tesla Motors, Inc.. It is expected to employ 320 people.
The facility will filter wastewater from the City of Memphis Waste Water plant to produce water clean enough for industrial uses. The goal is to produce 10 millions gallons of usable water per day to meet forecasted needs. The water is currently discharged directly into the Mississippi River.
“We did our level best to make sure we protected our future and all of our resources with the actions that we took here,” said MLGW President and CEO Doug McGowen.
MLGW began discussions with xAI in March. Public announcement of the project was in April.
