On Monday's agenda for Central Alabama Water (the utility formerly known as Birmingham Water Works), the board considered three pending invoices for monthly payments of $35,000 to the Birmingham Business Resource Center (BBRC). Board vice chair Phillip Wiedmeyer described the payments, listed as "For Professional Services," before adding an amendment to end the contract altogether.
"My understanding is that contract increased in 2025 from $20,000 a month to $35,000 a month, and that contract is not fully executed for 2025 at this time," Wiedmeyer said.
"It's a little troubling to approve invoices for a contract that has not been fully executed. Secondly, the information I've got about what services this organization provides does not appear to provide direct benefits to this organization. My understanding is that their primary focus is in assisting minorities and contractors with financing, help them become more financially stable."
According to the BBRC website, "The Birmingham Business Resource Center was designed to be a 'one-stop-shop' to assist entrepreneurs in every stage of development of their business. The founders were comprised of several city officials and business lending organizations with a distinct set of objectives."
The website lists those objectives as:
- Promoting the civic welfare of Birmingham citizens
- Assisting Birmingham in its economic development efforts
- Promoting and assisting in the growth of small businesses by providing programs that help with the accessibility of capital
- Helping the community by fostering increased employment opportunities through the expansion of business, industry, and economic development
- Providing a convenient location for those looking for assistance in establishing, growing, or expanding small business enterprises
"There's an indirect benefit, but not a direct benefit. That's, in my opinion, a lot of money for that," Wiedmeyer said. Birmingham Water Works is listed as a "sponsor" on the non-profit's website alongside Regions and Wells Fargo banks, the City of Birmingham, Jefferson County and several other businesses.
The last quarterly report on their website dated April 2024, is addressed to the Jefferson County Commission and the letter from Robert Dickerson, Jr., the executive director says, "While we are proud of the entrepreneurial impact we've made in Jefferson County, assisting historically underutilized businesses by providing educational, financial, and consociating opportunities, the Birmingham Business Resource Center derives great joy in educating those in low-income, disadvantaged, and adverse circumstances and our young, inventive, future leaders on the learnable process of entrepreneurship."
There was a brief back-and-forth between Wiedmeyer and Jarvis Patton, Sr., on whether Wiedmeyer had expressed support for the program in a previous meeting. "That's not my recollection," Wiedmeyer said before explaining that he recalled having questions about the contract.
The board tabled the payment of invoices before it took up a motion to cancel the contract.
That motion was then amended to revert payments to the previous amount agreed upon based upon the fact that the contract approving the additional $15,000 was not fully executed. Board lawyers were instructed to review the legality of services provided. The amendment passed with Patton voting against it. Patton also voted against the resolution, which passed.
This is the latest in a series of votes and actions taken by the new board. The board previously cancelled a $660,000 contract awarded hours before Gov. Kay Ivey signed the bill into law that reconstituted the board.
"Once I read that contract and saw what it did, that was a slap in the face to the ratepayers, to the employees, to the pensioners, to this board. It was incredibly one-sided, and if a lawyer will do that to the board, I can't have you around, I'm sorry," Jeffrey Brumlow said following that vote, according to a story in AL.com.
EDITOR'S NOTE: The original version of this article mistakenly cited board chairman Thomas Hudson as chairing the meeting. The article has been corrected to reflect that vice chair Phillip Wiedmeyer chaired the meeting.
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