Alabama Senate passes bill overhauling Birmingham Water Works Board

A bill significantly restructuring the governance of large municipal water systems sailed through the Alabama Senate Thursday.

SB 330, sponsored by Sen. Dan Roberts, R-Mountain Brook, is broadly worded but effectively targets the Birmingham Water Works Board (BWWB). The legislation overcame potential resistance after last-minute changes that expanded the proposed regional board.

“I think we have the makings of a great water system here with what we’re doing … we’re after a board whose goal is to work together, to provide true, true loyalty to the customer base, not to anyone else,” Roberts said after the bill’s passage.

The bill applies to municipal water works boards that serve customers across four or more counties beyond the one where the authorizing city is located. It mandates converting such entities into regional boards; establishing new rules for board member appointments, qualifications and terms; implementing stricter ethics and financial reporting requirements and outlining specific board duties.

Roberts said the changes are necessary for competent management and to prevent operational failures.

“We’re losing 50% of the water that we pump that’s potable. That’s so far outside what is normative across the country. The replacement of pipes is probably responsible for some of this, but we’re spending money on so many other things than showing a fiduciary responsibility to the customer base,” Roberts said.

Changes to the BWWB have drawn strong opposition from Democrats in the Jefferson County delegation, who have filibustered similar pieces of legislation over the years over concerns that Birmingham and Jefferson County, the BWWB’s largest customers, would lose power over water decisions to suburban counties. Democrats have also noted that the changes would take power from Birmingham, which is 67% Black, and shift it to majority-white suburban counties.

Sen. Rodger Smitherman, D-Birmingham, who has led opposition to BWWB changes, declined to comment after the bill passed, saying that he’ll “talk about it once the governor signs it.”

Roberts said the changes came “after hard negotiations for several hours yesterday until late last night, and then again this morning,” which led to adding two additional members. Roberts said he preferred a board of five members because it would be easier “to get them pulling in the same direction.”

“We sat down as a Jefferson County delegation and hammered it out in a back room of what it would take to get this bill to pass without creating lots of problems for the rest of our colleagues here in the Senate and the House,” Roberts said.

The first amendment expanded the proposed board from five members to seven, adding one director appointed by the Governor and another by the governing body of the authorizing municipality, which would be the Birmingham City Council. Both appointees would have to live in Jefferson County. The second amendment requires the new regional board to include the authorizing municipality’s name, Birmingham, in its official title.

The bill specifies that certain board positions require financial, engineering, or general business backgrounds and sets initial staggered terms before transitioning to five-year terms, with a limit of two full terms. Directors will receive $2,000 per month plus expenses.  

Frank E. Adams, a spokesperson for Birmingham Water Works Board (BWWB), said in a statement that despite amendments adding local appointees, the board strongly opposes the bill and sees it as a “hostile takeover by outside interests.”

“BWWB’s daily focus is continuing to make improvements to our customer service, infrastructure and the overall operations of the system.  We have made significant improvement in those areas over the last few months and SB 330 limits that progress,” Adams said in the statement.

Board leaders previously indicated that operations are improving, according to al.com, and that monthly billing errors have been reduced to 500, down from 10,000.

The bill now moves to the Alabama House of Representatives for consideration. House Speaker Nathaniel Ledbetter, R-Rainsville, said the legislation will be a priority in the last few days of session.