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document indicates potential technology costs of Water-msd merger
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Although Council member Jan davis questioned the action, gordon smith called it a “goodfaith” effort that “means going to the voters and asking 'what do you want?' [and] going to other municipalities and asking 'do you want this?' and presenting the facts to the entities involved." — David Forbes
Merging the Asheville water system and the Metropolitan Sewerage District of Buncombe County could cost up to $1.74 million in information-technology expenses, according to a “due-diligence” document posted July 31 in a comment on the Mountain Xpress website (see "City Will Go Forward With Referendum on Water System Transfer").
moffitt: city council’s proposed referendum “serves no purpose”
But the $1.74 million figure is somewhat misleading.
Buncombe County Rep. tim moffitt, who chaired the state legislative study commission that recommended merging the Asheville water system with MSD, says, "City Council has made [its] viewpoint public knowledge, [and so have] the citizens of Asheville ... in a very clear way," Moffitt says. "They want to retain control of the region's water source and also want to repeal the Sullivan Acts," he continues, adding, "But the referendum itself just allows the city of Asheville to use taxpayer money in a political way to take issue with this entire matter. It serves no purpose."
The "IT Due Diligence" study gave an estimated range of $435,000 to $1,735,000 for consolidating city and MSD technologies — such as computers, billing systems and software. During the past session of the North Carolina General Assembly, a legislative study committee recommended the merger; both MSD and the city have started discussing and researching the implications. "This [document] is preliminary information," says tom hartye, MSD's general manager. It was prepared for a consolidation-impact study approved at the agency’s July 18 board meeting, he explains (see the July 19 online Xpress article "MSD Awards Contract to Study Impact of Potential Merger with Asheville Water System" at http://avl.mx/iy). The full study will research overall merger costs. (For more information, see "Reluctant Partners," Aug. 1 Xpress.) The IT budget for a merger, adds Hartye, could be "easily offset by the costs the water department is paying right now." The water department budgets $550,000 for technology expenses annually, which is paid to the city of Asheville, he says. Up to this point, MSD has not projected a rate increase or decrease based on merging the two systems. The study's complete figures for such items as equipment repair and replacement will “probably … be the biggest driver of what the rates are going to be," says Hartye. — Nelda Holder
Council will determine whether to place the referendum on the November ballot.
high water: The Asheville water system pumps water to a variety of locations in Buncombe and Henderson counties, including this spot on the Blue Ridge Parkway, high above the system’s main reservoir. A state legislative committee has recommended merging the system with the Metropolitan Sewerage District of Buncombe County. Photo by Bill Rhodes
asheville city council calls for a non-binding referendum on Water-system merger At a July 31 worksession, Asheville City Council directed staff to craft a November referendum asking voters to weigh in on the possible transfer of the Asheville water system to the Metropolitan Sewerage District. The city is also commu-
16 AUGUST 8 - AUGUST 14, 2012 • mountainx.com
nicating with MSD, studying the financial impacts of a merger and trying to arrange a meeting with local legislators. Vice Mayor esther manheimer said, "This is an excellent opportunity for us to accurately gauge the sentiment of the citizenry of Asheville." State law allows a city to submit the question of the "sale, lease or discontinuance" of a water system to its voters. On Tuesday, Aug. 14,
Moffitt mentioned the various concerns he heard at a Feb. 21 public hearing at the WNC Agricultural Center. At that event, in a segment set aside for city residents, about 85 percent of those who spoke wanted Asheville to keep the water system, he estimates. A referendum will only be more of the same, he says. "I think [it] will only confirm what we already know. To me, I don't' think it's a wise use of tax dollars to arrive at a conclusion that's already been well-stated by their elected representatives on City Council," Moffitt says. Meanwhile, the state legislature recently passed a bill allowing MSD to operate a water system and setting terms for the makeup of the merged board. Though Council asked Gov. Bev Perdue to veto it, she declined to either veto or sign the bill, setting the stage for it to become law. — Caitlin Byrd