City Attorney Mike McMahan told the City Council on Tuesday night that enforcement action on the city's failure to meet its clean water permit "is expected very soon."
Lee Norris, city public works deputy administrator, said it is imperative that the city seek to re-negotiate its current permit with the Tennessee Department of Environment and Conservation.
At the same time, he said the city needs to move toward a "green infrastructure" approach in which used water is returned to the earth rather than into a ditch. He said that would be a way "to get this albatross from around our necks."
During an extensive discussion on the city's stormwater and sewer problems, the council also heard from consultant Adam Sowatzka of Atlanta, a former EPA lawyer.
He cautioned against a move by the Blue Ribbon Water Quality Committee to lower the rates proposed by the city earlier and which have brought a storm of protest - especially from business owners.
He said EPA officials at Region 4 in Atlanta are closely monitoring the committee's recommendations.
That panel had been set to issue a final report last Thursday, but delayed it to this Thursday after members of the administration brought up a number of objections.
Mr. Norris said the staff has reworked its budget and will be seeking an agreement on it by Thursday with Chairman Bill Raines and other panel members.
Councilwoman Carol Berz said she had sat it on the committee meetings, and she said the focus was on the rates and not on dealing with the problem.
She said, "I was unimpressed that it has been all about money as opposed to coming up with creative solutions."
Ms. Berz said, "Frankly, our plan is ridiculous. We probably could never live up to it - ever."
Councilwoman Sally Robinson asked if a plan is in place to handle the clean water issues, noting that Philadelphia came up with innovative solutions using a green approach.
Bill Payne, city engineer, said the city's budget with the much-higher fees was based on studies by two teams of consultants.
Mr. Norris said the city "whittled down" some of the more costly suggestions by the consultants.
He said one night recently he "had an epiphany" and went the next morning to Public Works Director Steve Leach, telling him, "There is no way in heck we are ever going to comply. But I have a way out of it."
Mr. Norris said that is the green infrastructure approach. He said as an example a "green" parking lot will be installed at the rear of the public works offices.
Mr. Sowatzka cited huge costs incurred on other cities when EPA came in with enforcement actions. He said water cleanup is especially a priority by current EPA chief Lisa Jackson.
He said cities fare better when they go ahead and come up with their own improvement plan rather than allowing the EPA to write one for them.
Councilman Peter Murphy suggested that the city might want to take the EPA "to the marble palace and let a federal judge decide" if the agency is interested more "in drawing and quartering us rather than coming up with a practical and sensible solution."
Mr. Sowatzka said cases involving the EPA and cities are invariably settled with a consent decree.
Chairman Jack Benson asked if the EPA might show "mercy" due to the harsh economic times. He said the city has less resources available to reach the solution than it did a year ago.
The consultant said that is a possibility, but the EPA had been continuing with aggressive enforcement actions.
Mike Mallen, an environmental attorney who is a member of the Blue Ribbon panel, said he felt TDEC is the prime agency with which officials must reach a settlement.
Mr. Raines said the panel has dealt with fees, but also with issues relating to a solution also.
Ray Childers, another Blue Ribbon panel member, said, "Our mission was to try to find ways to ease the burden on the ratepayers at this difficult time. Our mission never was to come up with a creative plan on how to handle the water. That is up to the city's stormwater people and the City Council."