At this week's Central Alabama Water (CAW) meeting, the board voted to reduce the amount paid to their public relations firm, Direct Communications, from $38,000 per month to $18,000 per month.
The change was one of two contract changes made this week; the other was the cancellation of the Jones Group lobbying contract. The board cited a conflict of interest for the lobbying firm due to its work representing the City of Birmingham. The City of Birmingham is suing to block the restructure of the board.
The new board and executive management have cited the pending lawsuit as a reason that the board cannot move forward with refinancing current debt at better terms and implementing other reforms that could lower rates or address pending infrastructure problems.
The agenda item was approved as part of the consent agenda. It stated, "Request Board to amend the contract between Central Alabama Water and Direct Communications for professional services by reducing the monthly fee to $18,000.00 per month." A request to Central Alabama Water seeking more information on the catalyst of the change was not answered.
The new board for Central Alabama Water has been diligent in cutting costs since its inception. Among their first actions was to cut a $3 million contract signed just before the law changing the makeup of the board went into effect. The board also voted to end a $35,000 monthly contract with Birmingham Business Resource Center (BBRC).
A review of previous meeting minutes and agendas indicates that Direct Communications began working with Birmingham Water Works in November 2024 at a monthly rate of $33,000. That amount increased to $38,000 a month until this week's cut.
Records show that the previous firm contracted with the utility, CBG Strategies, and billed $25,350 per month.
In response to a series of written questions earlier this month, John Matson, the manager of public engagement and communication for Central Alabama Water, told 1819 News that, "Central Alabama Water's Public Relations Department has four staff members. Direct Communications is the only public relations firm on contract with the CAW."
According to Matson's LinkedIn profile, he joined Central Alabama Water in May of this year.
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