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Decherd has taken a major step toward correcting problems it’s had with its water and wastewater operations by approving a $1.742 million contract with a specialized company to take over management duties.

The Board of Mayor and Aldermen recently hired ClearWater Solutions from Auburn, Alabama, to handle the Water and Wastewater Department’s operation, maintenance and administrative duties, following an order from the Tennessee Water & Wastewater Financing Board to take corrective action.

The state identified a number of concerns, including delinquent audits, no recent rate study and no management plan, according to the order.

The order says that Decherd, through ClearWater Solutions, must:

— Complete a review of its capitalization policy, including any recommended modifications.

— Complete a review of its debt-management policy, including any recommended modifications.

— Create a five-year capital-asset budget to be taken from the current capital-asset list and to include future anticipated needs.

— Complete a review of relevant utility fees, including connection and tap fees and any recommended modifications.

— Provide verification that all governing body members of the utility are in compliance with all relevant training requirements.

— Complete a review of the leak-adjustment policy, including any recommended modifications.

— Justify the inside and outside city-limit rates, including any changes to the rate structure.

— Update its auditing software.

The city has until year’s end to complete the rate study or provide proof that it’s being implemented. Provisions are also allowed for an extension of up to six months if the city hasn’t finished the process but shows good cause toward correcting its problems, according to the order.

Decherd Mayor Mary Nell Hess said ClearWater will be involved in the process for at least five years.

“The board agreed to get somebody in here who knows what needs to be done, and that was ClearWater Solutions,” she said.