Council authorizes legal challenges and purchase plan to retain oversight of Birmingham Water Works

The Birmingham City Council on Tuesday approved a package of measures intended to preserve city control over the Birmingham Water Works system and to prepare court challenges to state legislation.

The council approved a resolution authorizing the mayor and city attorney "to pursue all options to retain its rightful oversight of Birmingham Water Works and to protect our citizens who it serves," and to initiate court actions to oppose SB 330, the measure the resolution says would have "irreparable and devastating effects" on the Water Works and its customers. The body separately approved a purchase-and-sale framework under which the city would buy the Water Works system from the Birmingham Water Works Board for $1 plus defeasance or payment of outstanding bond principal and interest and an assumption of outstanding BWWB contracts. The council also authorized hiring outside counsel, with a professional-services cap of $95,000.

The measures were taken after a short executive-session request from the city's attorney. City attorney King told the council, "it is my recommendation under Alabama state code section 36 25 a 7 8 3 to go into executive session to discuss pending litigation," language used before the council temporarily recessed into closed session. After returning, the council voted to approve the measures.

Mayor Randall L. Woodfin read the resolution and described it as necessary to protect customers and the city's interests. Councilor Hunter Williams made a motion on the resolution that the chamber approved. Item 57 — the purchase-and-sale framework — and Item 58 — the authorization to pursue potential claims and to retain attorney Calvin Grigsby as outside counsel for an amount not to exceed $95,000 — were moved, seconded and passed after the executive session.

Council members did not record roll-call vote tallies in the meeting transcript; votes were conducted by voice after motions were seconded. The recording of the meeting shows the council adopting Item 56 (the opposition resolution), and approving Items 57 and 58.

What the council approved does not itself transfer ownership; the purchase-and-sale agreement, as presented in the resolution, would require defeasance or payment of outstanding BWWB bonds and the city's assumption of outstanding BWWB contracts. The council also ratified any actions already taken by the mayor or city attorney before the adoption of the resolution.

The council cited SB 330 by number in the resolution and instructed the mayor and city attorney to seek every available legal option. The council did not detail a specific litigation timetable in the meeting record.

Next steps: the mayor and city attorney now have explicit council authorization to pursue litigation and to finalize purchase-and-sale terms consistent with the approved framework. The council approved outside counsel spending in a not-to-exceed amount of $95,000 to support those efforts.

Provenance: the council read and debated Items 56, 57 and 58 during the May 6 meeting; the attorney's executive-session recommendation and the recorded votes appear in the transcript at the times noted in the provenance data below.