BRADENTON, Fla. - Two Alabama lawmakers plan to co-sponsor bills altering the governance structure of the double-A rated Birmingham Water Works Board.
The proposed legislation by State Sen. Jabo Waggoner, R-Vestavia Hills, and Rep. Paul DeMarco, R-Homewood, is not being welcomed by city officials or the board overseeing the drinking water provider. Birmingham is the seat of Jefferson County.
The measure would impose term limits on board members, specify amounts they can be paid, expand the board from five members to include representatives outside of Birmingham, and increase oversight of the agency by the Ethics Commission, according to published reports.
The Birmingham City Council appoints all members of the Water Works Board - four from Birmingham and one from outside the city.
Councilwoman Lashunda Scales, who chairs the city's Utilities Committee, supports some portions of the proposed bill but disagrees that the board should be expanded to include representatives from surrounding Shelby, Walker, Blount and St. Clair counties, according to the Birmingham News.
"We are extremely disappointed with the proposed legislation which would significantly alter the corporate governance model that has led to our success," said a lengthy statement on the Birmingham Water Works Board's website. "However, this proposed legislation has identified the need for us to communicate better with all of our stakeholders including our employees, customers, and our local, state and federal elected officials."
The statement goes on to say that the current structure of the board is adequate to represent all customers because 91.6% or 178,000 of 195,000 customers are in Jefferson County.
Board members are paid $285 for each meeting they attend. The number of board meetings has been cited in local news reports suggesting they may be more numerous than necessary.
The City Council plans to meet with members of the Jefferson County legislative delegation Jan. 9 to discuss the water bill and other legislation being proposed for this year's session, which starts Jan. 14.
The Birmingham Water Works Board had operating revenue of $153.4 million in fiscal 2012, which were enhanced by 3.9% rate increases that went into effect Jan. 1, 2012, according to the 2012 audit.
The agency had $903.6 million of long-term debt outstanding as of Dec. 31, 2012 rated AA-minus by Standard and Poor's and Aa2 by Moody's Investor Service.
