Utility professionals are almost always at a knowledge advantage compared to board members. They are very often seen as the most valuable people to help boards inform their decision-making.
Most organizations will present options to boards with staff recommendations, though there are always exceptions.
In some cases, utility staff will need to educate board members on an issue before board members can understand the context of the discussion. Cases like these may include:
- Changes to the regulatory environment
- Major upgrades to treatment
- Projects with outside financing
- Any project substantially changing workflow at the utility
In cases like these, it may be wise to provide board member education about the issues the utility faces well in advance of asking them to make a decision. Some utilities and municipalities have informal and formal practices that any contract being put out for proposal or bid must first be approved for release by its governing body. This is a great time to provide education and context.
If your organization does not have such a structure, you will need to ask for some time in a work session or meeting to provide this education. Depending upon public meeting and quorum laws, discussion with individual members of the governing body may also be appropriate.
In case of a visible, above-ground project – nothing beats a site visit for providing education and context to board members.
When making a recommendation on how to proceed, these items are important to communicate.
- A range of reasonable options, given the situation
- Details about what a “no action” choice means for utilities and their customers
- A good-faith attempt to explain the benefits and downsides of all options
- A good-faith attempt to estimate life cycle costs for all options
- Timeframes for completion for all options
- A good-faith attempt to explain regulatory compliance impacts of the options
- Methods available to finance the choice
- A strong opinion of utility staff about how to proceed, and why, if it exists
The recommendation of staff should be conveyed in both agenda materials and in work session and regular board meeting presentations.
Board input is critical and can be very helpful to utility decision-making. Board members serve an important role in democratic governance oversight of utilities as they represent community member concerns. Do not be discouraged if a recommendation is rejected or if more information is sought before a decision is made.
In case of a recommendation being rejected, keep in mind the governance structure of the utility, generally decisions ultimately lie with the board, not staff. In case of both delay and rejection be sure to convey potential impacts to meeting deadlines regarding regulation and outside funders. The delay and rejection of projects may end up costing significantly more in the long run if regulatory fines are levied or if low-interest financing or grant funding is lost. Consequences such as these should be top of mind when decisions are being made.
Additional Board Communication Resources