After years of concerns over rate increases, customer complaints and employee dissatisfaction at the Birmingham Water Works, 21 Republicans and Democrats in the Alabama legislature are calling for an audit of the state’s largest water utility.
In letters to state Sen. Greg Reed, the president pro tem of the Alabama Senate, the lawmakers cited a recent vote of no-confidence by water works employees among a series of eye-raising concerns.
“This incident is just the latest event in what has been years of issues that have played out publicly that bring into question the management of the system: these include allegations of fraud, self-dealing, waste, and inefficiency,” reads one letter, dated Dec. 19 and written by State Rep. Jim Carns, R-Vestavia Hills. Thirteen other Republicans and Democrats from Jefferson County signed on to the letter.
A nearly identical companion letter from a bipartisan group of seven state senators from Jefferson County also calls for Reed to begin an audit.
AL.com obtained copies of both letters this week.
Waggoner this week told AL.com the letters represent a rare, unified effort to call for reform. The water works has about 600 employees and serves about 770,000 customers in Jefferson, Shelby, St. Clair, Blount, and Walker counties.
“This is the first time in my memory where such a controversial issue has received support from Democrats, Republicans, and it’s across the board,” said Waggoner, who has been in the legislature since 1966. “It is historic. I’m not sure exactly the outcome we’re looking for, but it has a lot of momentum.”
Reed has not said whether he plans to conduct an audit. But, in a statement to AL.com this week, he stressed the importance of efficiency at the water works.
“This area of the state needs Birmingham Water Works to function as a healthy organization in order to meet the needs of their customers,” Reed said. “Local leaders will continue to look for ways to make Birmingham Water Works the best it can be to carry out its mission to serve the public.”
After learning of the delegation letters from AL.com, water works leaders sent their own letter to Reed on Wednesday, inviting him to “engage in a constructive dialogue.”
“The current board of directors would welcome the opportunity to meet with you, Representative Carns, or any other legislator to address any concerns you may have about the Water Works Board,” wrote board chair Tereshia Huffman. “We are committed to fostering transparency and value the input of all legislators.”
In the response, Huffman also noted an error in the lawmakers’ letters. She said the utility’s most recent rate increase is 4.8 percent rather than the 5.8 percent.
Rick Jackson, public relations manager for the water works, told AL.com that the utility remains open to working with stakeholders across its five-county service area.
“Our goal is to continue delivering high-quality water services to our customers at the most affordable rates possible, all while upholding financial transparency and prudence,” he said.
Lawmakers cited examples of constituents calling them with complaints of extraordinary high water bills. Rep. Carns told AL.com that the high rates negatively affect quality of life and home resale values for thousands of families in the Birmingham metro.
Jackson said the utility’s water rates are competitive to others nationwide.
“It is worth noting that our rates have historically been at or below the national average from 1998 to 2022, emphasizing our commitment to providing cost-effective services to our community,” he said.
State Sen. Rodger Smitherman was the lone member of Jefferson County’s senate delegation to not sign the letter. Smitherman, who has been a longtime defender of the utility against state intervention, said his colleagues were premature in their actions before seeking a meeting with the utility’s leadership.
“The water works has already done an audit and that’s where they need to start, with having a meeting with the board and the auditor and going over whatever their concerns are,” Smitherman said. “They just bypassed that and went straight to what they’re trying to do now.”
Smitherman also questioned the legislature’s authority to have the state audit the utility.
State Sen. Linda Coleman, D-Birmingham, said the utility needs to be more transparent with the public — especially when it comes to rate increases and why.
“I shouldn’t have to be the one to explain this and talk to citizens about it, they should. It’s just a matter of communication,” Coleman told AL.com. “There needs to be transparency, people need to know what’s going on, and they need to know what to expect. Citizens need to know what’s the long range and how it’s going to impact them.”
Coleman said she’s shared her concerns with the water works leadership in the past.
“Maybe we’re asking them to go beyond,” Coleman said. “It’s not about politics, it’s a common issue that affects all of our citizens, rich and poor.”
Two members of the House delegation from Jefferson County, Democrat Juandalynn Givan and Republican Tim Wadsworth, did not sign the letter.
Rep. Wadsworth did not respond to requests for comment.
Rep. Givan said she didn’t know about the letters but plans to send a revised version with her name included.
“I’ve always been in support of an audit. All corporations should have audits and they are no different than anyone else,” she said. “I suggested it last year so we should know what the issues were. Of course, I would wholeheartedly support that.”
Givan, who has defended the utility against state legislation in the past, said she doesn’t think the utility opposes an audit.
In December, the Birmingham Water Works Employee Association issued a vote of no confidence in management and detailed several grievances regarding inequity in discipline, promotions, and salaries.
“Under this Executive Staff, morale has plummeted to depths never seen before,” the association’s letter read.
Regarding employee dissatisfaction, Huffman said officials are working to improve communication with staff.
“BWW is engaging employees to address communication barriers, fostering an environment where open dialogue is encouraged,” Huffman wrote. “Our ongoing efforts aim to ensure that employees not only have confidence in BWW, but also feel valued through their meaningful contributions and input.”
The lawmakers’ bipartisan letters represent a rare collaboration between Republicans and Democrats from the city of Birmingham, its surrounding suburbs, and Over the Mountain communities.
“It surprised me,” Carns said of the effort. “This is not a Republican, Democrat issue in my opinion. But the solution has got to come because the process is not working over there. This would be a major step forward if we can get this done.”
