Alabama Water Works Board votes to triple what it pays lobbyists
The Birmingham Water Works Board (BWWB) voted in April to triple the number of lobbying firms it uses, WBRC reported. They also tripled the amount they pay for lobbying services and hired two lobbyists who are not currently registered to lobby with the U.S. House or Senate. Additionally, only one is registered to lobby with the Alabama Ethics Commission. Montgomery-based lobbyists The Jones Group is currently employed by BWWB and has paid them $90,000 a year to for the past couple of years. It is now $10,000 a month. On April 14, the board approved hiring two more lobbyists in one meeting – more than triple what the utility pays for lobbying. BWWB board general manager, Michael Johnson, said that the money spent on lobbyists is worth it, reported CBS. Johnson stated, “This is $396,000. I’ll reiterate to you, we don’t want to miss an opportunity.” The additional lobbyists hired, Pat Lynch and Earl Hilliard will be paid $120,000 and $156,000, respectively. “That’s not a great response, the customers clearly have some concerns, and dissatisfaction,” warned J.D. Power analyst Andrew Heath, who helped compile the survey. “How can the waterworks improve that score? Are they spending our money in a good way, are they improving the infrastructure? If the utility does a good job telling us how they’re using that money and then making sure we understand we’re investing in the future not just servicing debt and all that other stuff, that is the best thing they can do,” commented Heath. “If we can get additional capital dollars, this will more than pay for itself,” stated Johnson of the new lobbying contracts. “And these are not contracts that will go forever. We are in unprecedented times, and we don’t want to miss out on an opportunity.” WBRC asked the board’s Vice Chairman Dr. George Munchus why he supported the new contracts, and he sent this statement: “The capital infrastructure needs of the BWW are in excess of $700 million dollars and additional resources are needed beyond what we ratepayers pay each month for great, clean water. “Partnerships with the city and county and state and federal and private sectors are critical as they have similar capital project needs. All utilities must invest in these resourced sorts of efforts. I think Alabama Power contracts with 11 such outside firms and SPIRE (Alabama Gas) contracts with six such outside firms? Many of these utilities also have in-house people that do such as well. “Even the holding company that owns WBRC has such a contract function in American business.”
Groups want water board members who will stop shutoffs
A group of civic organizations is asking Birmingham-area leaders to appoint new board members to the city’s water utility who will stop shutting off water for customers behind on their bills. The organizations are asking for Birmingham Water Works Board members who will resume a moratorium on shutoffs for overdue bills and set up 12-month income-driven repayment plans instead of shorter repayment plans over three to six months. The board resumed water shutoffs in October after an earlier pause because of the coronavirus pandemic. There were more 12,000 overdue accounts owing more than $7 million at that time, WBMA-TV reports, although some customers have since caught up. Rob Burton, executive director of SWEET Alabama, said charity groups can’t afford to cover the overdue bills. The group promotes sustainable use of energy, land, and water. “A lot of our children are taking school virtually and people are working at home so cutting off service to water in our home while our children do not have access to their public spaces and their schools, it’s going to further negatively impact our children,” Burton said. All nine board members’ terms expire at the end of the year, according to the board’s website. The Birmingham City Council appoints four members and Birmingham Mayor Randall Woodfin appoints two members. The Jefferson County Mayor’s Association, the Shelby County Commission, and the Blount County Commission each appoint one member. The utility provides drinking water to more than 600,000 customers in five counties. Burton said a short-term repayment plan can be like paying three water bills in a month for a resident. Burton said the board has not acted despite multiple meetings. In November, the board of directors voted to approve budgets that will not result in an increase in customers’ water rates for 2021. Republished with the permission of the Associated Press.
Sherry Lewis avoids prison on corruption conviction
Jefferson County Circuit Judge Clyde Jones ordered Sherry Lewis during a hearing to pay fines of $30,000 and to perform 400 hours of community service for her conviction on felony ethics charges of using her position for personal gain. The sentence included a suspended prison sentence, and a statement from prosecutors said Lewis won’t have to serve time if she fulfills other aspects of her punishment. Lewis was convicted in October of using the position to obtain jobs for her son, football bowl tickets, lavish meals and alcohol from a contractor. Meanwhile, she voted for the contractor to receive inflated payments from the Birmingham Water Works Board, authorities said. A contractor and a subcontractor are awaiting trial. Republished with the Permission of the Associated Press.
AG’s office responds to Sherry Lewis’s request for dismissal of ethics charges
Birmingham Water Works Board (BWWB) of Directors member Sherry Lewis filed a request to dismiss her ethics violation charges in April, saying the state’s case against her had no real substance as it did not contain specific dates for her infractions. Lewis’s motion also included language saying she was not informed of any specific conduct for which she had disobeyed the law, and failed to inform her, and her codefendants Jerry Jones and Terry Williams, “‘of the nature and cause of the accusation’ against her and subjects her to being ‘twice put in jeopardy’” making the original claim against her unconstitutional. The Alabama Attorney General’s office responded to Lewis’s request this weekend by denying it. They said the evidence against her is sufficient, and her concerns about “double jeopardy” are premature. Lewis, Williams and Jones were indicted for several violations of state ethics laws in December of 2017. The original claim the state made against Lewis said she used her “official position or office to obtain personal gain for herself, a family member, or a business with which she is associated, and such use and gain were not otherwise specifically authorized by law.” She argues in her request for dismissal that the state used language from an Alabama law, not specifics for which she was indicted. But the state’s response to Lewis’s request for dismissal tells a different story, which describes that Lewis unlawfully used her influence on the board to obtain “money, a no-show job for a family member, and free meals and other improper benefits.” The response continues to say Lewis got those things from two people: “Defendant Jerry Jones, a former Vice President of Arcadis U.S. Inc., and Defendant Terry Williams, an Arcadis subcontractor. Jones was the manager of the BWWB account with Arcadis and he ostensibly hired Williams and his company, Global Solutions, LLC, to work on BWWB projects.” Arcadis has made millions of dollars advising and working on technical issues for the BWWB, and Jones, as Arcadis’s account manager for the BWWB contract, earned more than $300,000 per year for his his client-management services. Asking for specifics on her charges, Lewis got them. The state’s response to Lewis continued to say that Jones and Williams provided Lewis’s son, Joseph Lewis, with a no-show job with Williams’s company. Joseph Lewis received more than $25,000 from the company and would regularly deposit money into his mother’s account, often the same day Williams paid him. “Additionally, when Lewis traveled for BWWB business, Jones often paid the bill,” said the state’s response. “On numerous occasions, Jones filed false expense reports and reimbursement requests with Arcadis about meals that Jones bought for Lewis or her family. For her part, Lewis concealed that her sixty-plus votes for Arcadis benefited her financially and that her refusal to consider other engineering firms for public work had a personal motivation. By prioritizing personal financial gain over honest government, the Defendants violated the Alabama Ethics Act,” the report continues. Lewis and her attorney’s refuse to admit to these charges, and is “looking forward to her day in court to confront the prosecutions accusations,” according to WBRC. If found guilty of the charges, Lewis, Jones and Williams all face $30,000 each in fines, and a maximum sentence of 20 years in prison. You can read the full text of Lewis’s request and the state’s response below: Lewis’s Motion to dismiss: Sherry Lewis Motion to Dismiss by Jenna Anderton on Scribd State’s Response: Alabama Attorney General’s Office Response to Sherry Lewis Motion to Dismiss by Jenna Anderton on Scribd
House panel debates Birmingham Water Works legislation
A House panel on commerce heard concerns late Wednesday afternoon about Senate Bill 89 to impose membership, term, and compensation limits on the Birmingham Water Works Board (BWWB). The BWWB serves Jefferson, Walker, Sinclair, Shelby, and Blount counties. However, the Birmingham City Council makes all appointments and is under no legal obligation to appoint anyone from the suburban counties. If approved, SB 89 would expand the Birmingham Water Works Board to include representatives from Jefferson, Blount, and Shelby counties. Each member would be limited to two 4-year terms. Further, the bill enacts a $1,000 per month cap on member pay. The provisions in SB 89, according to sponsor Sen. Jabo Waggoner, have been the subject of a long fight with Birmingham council members. During his opening statement, Waggoner said it was his third attempt at legislation to add transparency and balance to the board makeup. “We’re going to open it up to some accountability,” he said. “For the life of me I don’t understand why they’ve fought this legislation.” Waggonner argued that his bill would ensure fair representation from the customers in those counties, while maintaining a super-majority of members from Birmingham. Blount County Commissioner Chris Green said that fair representation was the major reason he would support the bill. “Marshall County and Cullman County (water boards) also serve customers in Blount County, and because they do, we have representation on those boards. We know that diversity brings strength. Bringing accountability and transparency brings strength.” Waggonner also expressed concern over the average salary paid to board members, as well as the $285 paid to members to attend meetings. Right now, board member pay is uneven: An AL.com analysis showed that some members received as much as $22,000 in 2014, while others went unpaid. “It’s been a good, sweetheart deal to serve on the Birmingham Water Works Board,” Waggonner said. The proposal has gotten plenty of pushback from legislators and BWWB members, who cited figures showing sound management from the board and a commitment to serving its customers as well as smaller water authorities in surrounding counties. Concern about board compensation were unfounded, BWWB General Commissioner Mac Underwood said. He testified that the board had actually decreased salary by 32 percent in recent years and travel expenses were down by at least 40 percent. “This board has been frugal and doing what it should,” Underwood said. “We are driving down costs for customers.” Rep. Louise Alexander questioned the need for statewide legislation, rather than a local bill for the affected counties. That language, argued BWWB member and environmental attorney Kevin McKie, means the proposal could could have much wider impact: “Any attorney can tell you that with a statewide bill, yes it does apply to you, if you grow big enough.” Lawmakers plan to resume discussion on SB 89 and offer a final recommendation on Thursday morning. The discussion will likely include new amendments to address board diversity.
