News Feature | April 6, 2015

Biggest Utility In Alabama At Center Of Reform Push

Sara Jerome

By Sara Jerome,
@sarmje

Alabama's largest water utility is back at the center of a heated fight over whether to reform its board and operating rules.

Reform legislation had its first committee hearing at the State Capitol in March, according to Alabama Media Group. "Both the city council and Birmingham Water Works board have hired lobbyists to fight the bill," WBRC reported. Reform opponents say it is an effort to dilute the city's influence over the utility, while proponents say it would be good to give suburban customers more of a voice.

The bill from Jabo Waggoner, R-Vestavia Hills, "would cap board member pay to $500 a month, limit board service to two terms, and require public votes before board members travel. The most contentious change would expand the current five-member board to seven members and take away the city of Birmingham's majority on the authority," the report said. Last year, a similar bill died after a well-financed political fight, WVTM reported.

The reform push has drawn strong opinions on both sides. Sen. Rodger Smitherman, D-Birmingham, is one of the top opponents.

"They tried last year without success to wrestle away control of the Water Works from Birmingham, and now, in the initial days of the 2015 session, they are back again," Smitherman said, per Alabama Media Group. "We cannot sit idly by and watch as others strip us of resources that have been under Birmingham's control since the beginning."

Utility reform draws political attention in part because board seats are an attractive post.

"Water Works Board members are paid $285 per meeting and make key decisions on contracts worth millions with engineers, lawyers and consultants for the state's largest public water utility. The power, pay and prominence of the board make its five seats the most coveted among Birmingham city appointments," Alabama Media Group reported.

A new board member, Kevin McKie, was appointed in February. Some city council members were upset with how the appointment took place. Councilwoman Lashunda Scales said her concerns are not about McKie in particular, but rather about a lack of transparency in the appointment process, WBRC reported.

"In this case there was no interview process. As a matter of fact I didn't even know the gentleman. Don't know his credentials, any of that,” Scales said, per the report.

For more on public policy and politics, visit Water Online's Regulations & Legislation Solution Center.