The time has come for decisive reform of the Birmingham Water Works Board (BWWB). For the purpose of accomplishing such reform the undersigned have prepared and are sponsoring in the Legislature of Alabama Senate Bill 330.
This is not a matter of local governance, or an isolated issue confined simply to the City of Birmingham. It is a matter of regional and state-wide concern.
Water is one of the most important resources we have. Water utility companies are at the heart of public health sustainability as they provide communities access to reliable distribution of a substance critical to life itself.
The Birmingham Water Works is THE largest water utility in the state of Alabama, providing life sustaining water to over 775,000 residential and commercial customers in five (5) counties.
While the City of Birmingham is home to only 25% of the Water Board’s customer base, it disproportionally controls the Board through its power to appoint two-thirds of the directors. That means that 75% of customers, residents and businesses alike, have no meaningful representation or voice in the operation and management of this utility.
This is taxation without representation, the same complaint that led to the Boston tea party, the ride of Paul Revere, the Declaration of Independence, and the leading motive behind the creation of the United States of America.
Perhaps the inadequate representation of the vast majority of the customer base would be overlooked if the BWWB were properly managed using industry best practices. However, the record of the BWWB is a shameful history of corruption, incompetence, and fiscal irresponsibility.
Here are a few facts:
For starters, the BWWB bills and collects for only about half (50%) of the water it treats, a level of inefficiency that is unheard of in comparison with other water systems. This “missing” treated water doesn’t just vanish into thin air; it leaks from crumbling, outdated infrastructure and goes unbilled because of outdated and inefficient systems. “Gross mismanagement” are the only words adequate to describe this startling fact.
We have been told that the BWWB is on a 300-year replacement cycle for its pipe infrastructure while industry best practices call for 100 years. At the current rate, some of our children’s great-grandchildren will still be drinking from the BWWB’s current failing and already outdated water mains.
While other water systems modernized with remote meter-reading technology over a decade ago, thus maximizing efficiencies by cutting labor costs, vehicle costs, and billing errors, BWWB still relies on manual meter reading. The improved technology has been available for more than fifteen years, and the delay in adopting it has only made it more expensive. The BWWB’s failure to act in time has made this no-brainer “fix” more costly and the benefits harder to realize.
The rates charged by the BWWB are among the highest in the Southeast which creates an unacceptable barrier to economic growth. Companies looking to invest in Central Alabama are deterred by these unnecessarily high utility costs. Simply put, high water rates make Alabama less competitive.
Appointments made by the City of Birmingham have often led to scandal. Three former board members—Joe W. Reid, Horace Parker, and Sherry Lewis—were each convicted of crimes related to their service on the Board. The BWWB’s poor governance has permanently stained the reputation and betrayed the public trust of the local communities across the region that it serves.
And how has the Board responded to its critics? By spending exorbitantly on lawyers, lobbyists, PR consultants, at times employing multiple law firms, public relations outfits, and lobbyists simultaneously.
Senate Bill 330 will correct the imbalance in the governance of the BWWB. It will bring fairness by accurately reflecting the true makeup of its customers and the communities it serves and finally put an end to a long legacy of inefficiency, waste, and scandal by requiring appointees to actually have qualifications and experience necessary to oversee and lead a utility of BWWB’s size and importance. Reform isn’t just overdue, it is essential to avoid the type of crisis which recently occurred in Jackson, MS, or even worse.
This is not just about Birmingham. It is about protecting Alabama’s economy, the reputation of our State and local governments, and being responsible to customers as well as taxpayers. We urge our colleagues in the Legislature to support SB330, not because it is easy, but because it is right.
State Sens. Jabo Waggoner (R-Vestavia Hills), Dan Roberts (R-Mountain Brook), Shay Shelnutt (R-Trussville), and State Rep. Jim Carns (R-Vestavia Hills) each represent portions of Jefferson County, where the Birmingham Water Works Board operates and serves a significant portion of their constituents.
