What's Next For Lake View As Private Sewer Amendment Heads To The Ballot

LAKE VIEW, AL — It was a daunting legislative session for most Alabama policymakers in 2022, including Lake View Mayor Adrain Dudley. Days full of uncertainty, dominated by long drives and pressing the flesh.

Far from a career politician, the first-term elected official and military veteran received a crash-course in lobbying over the last couple of months. But he didn't come home empty-handed at the close of the session.

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As this reporter can confirm, Dudley and others burned up the roads between Lake View and Montgomery in their fight for increased state oversight of the Tannehill Sewer System — the city's private sewer provider and the only options for residents without a septic tank.

"One thing about this process really pleased me," Dudley said in a phone interview with Patch. "That this was something that was not partisan. In talking with people in the House and the Senate, it had nothing to do with party. It just had to do with people. I saw people put things aside and it really didn't matter. It was centered around people, not parties."

The Alabama Legislature, in a rare moment of bipartisanship, passed the measure placing a constitutional amendment on the statewide ballot this fall that, if supported by the majority of the Alabama electorate, would put the private sewer system under the regulatory oversight of the Alabama Public Service Commission.

The language of the amendment is still uncertain as to how it will appear on the ballot, but it will be up for a vote in the Nov. 8 General Election.

State Sen. Thomas Watley of Auburn and Sen. Chris Elliott of Baldwin County — both Republicans — cast the only votes in opposition in either chamber of the Legislature.

Dudley was quick to say those opposed didn't appear to be guided by partisan politics, before going on to praise the work of the bill's sponsor, State Rep. Rich Wingo, in addition to Sen. Bobby Singleton, Sen. Rodger M. Smitherman and others who worked across the aisle to get the measure put on the ballot.

"There is a way people should be treated and this is how the House and the Senate came together," he said. "There were people in the Senate, but I don't think their dissension had anything to do with party, either. It made be proud of the system and I saw it in action in Montgomery. I hope this helps other entities and sends a message that we should pay attention to how people are treated with utilities."

Wingo agreed, saying the issue is a simple one — a matter of right and wrong.

"It had absolutely nothing to do with Democrat or Republican," he said in an interview with Patch. "This was a community against one man, so it didn't matter what color, language you speak or if you're Democrat or Republican. It matters the fact this was a whole community. Everyone in that community supported this bill. It's going to be statewide vote for Lake View and I hope everyone votes for it."

The "one man" referred to by Wingo is J. Michael White — the longtime owner of the Tannehill Sewer System who has been the sole proprietor of the utility since Lake View was first incorporated in the 1990s. He is also in the process of appealing a $4.7 million judgement he was ordered to pay out to three Lake View families who cumulatively saw their sewer bills climb to roughly half a million dollars.

While hope springs anew in Lake View after multiple failed attempts in the past, it's not lost on residents that the fight is far from over. The challenge now, for the city of 3,600 people, will be whipping up the support among the 3.5 million registered voters in Alabama.

As the measure heads to the ballot box this fall, Patch took an in-depth look at what's ahead.

The Fight Ahead ...

Mike White had choice words regarding Republican State Rep. Rich Wingo when contacted for comment regarding the business practices and political connections of the Tannehill Sewer System.

"Studies have shown that aging NFL linebackers may show signs of chronic traumatic encephalopathy 19 times the national average," White said in a text message to Patch, referring to traumatic brain injuries suffered by football players, coupled with a thinly-veiled swipe at Wingo's gridiron days for the Crimson Tide and NFL.

The sardonic response to Patch's objective inquiry provides a brief glimpse into White's brazen and nuanced approach to the situation, as a town of nearly 4,000 people has mobilized against his private company that has had sole dominion over the city since its birth. While Patch has interviewed more than a dozen Lake View residents over the last few months, there has yet to be one to speak up in support of Tannehill Sewer System's businesses practices.

As Patch previously reported, the present situation has its genesis with the city's first mayor, Fred Pugh, and the City Council, who agreed to grant exclusive sewer rights to White and his umbrella company SERMA.

The city's founding fathers also drastically limited their own ability to make capital expenditures to expand the sewer system. As it stands, Lake View and its Governmental Utility Services Corporation (GUSC) are barred from performing any work on the system that exceeds $1,000.

All the while, citizens across the spectrum, business owners, politicians, are each effected by the same questionable methods in rate-setting and daily operations, not to mention a wholesale absence of customer service.

Even when contacted by Patch, White said little over the last several weeks as the bill made its way through the guts of the Alabama Legislature.

Still, he has insisted in the past that the bill will do nothing more than give the nearby town of Woodstock the set-up it needs to take control of the system if it chooses to do. This was a notion he reiterated on Tuesday, pointing to an unresolved spat over utilities that has been festering for years between the two municipalities.

Lake View officials and Wingo have inquired in the past about the cost of buying out the system from White, but have never been provided a cost. Rather, for White, it has not so much been about the upfront costs of the purchase, but the longterm profit

State Sen. Gerald Allen, a Tuscaloosa Republican, is another key figure over the course of Lake View's entire existence. While not a founding father of the city, he was in office and involved in the discussions that ultimately saw the city turn over all of its rights in exchange for Tannehill Sewer System providing its sewer infrastructure.

Allen has drawn sharp criticism from Wingo and Lake View residents over his lack of public support for more oversight over Tannehill Sewer, in addition to his longtime connections with White.

But there was something different about this legislative session and the bill passed thanks in no small part to an entire Lake View City Council and mayor who are in their first terms in office and hungry for reform.

Indeed, the hustle on the part of Lake View officials and residents could be seen in the backroom discussions steering the bill out of committee and onto the Senate floor. If you ask those responsible, they will tell you it was all about getting it in front of the right people.

"It's terrible what has happened, but I'm thankful it passed," Wingo said. "I don't know why Gerald Allen is so opposed and has fought so hard to kill my bill. This is the third time I've tried to do this. People have lost their homes, people have had to file bankrupty, had liens on their property and he has supported a guy by the name of Mike White who was found guilty of a crime."

When asked to comment on Wingo's accusations, Allen instead provided praise for the two-term representative during his time in the Legislature, which will come to a close on Jan. 1, 2023 after Wingo chose not to seek re-election. Innuendos can no doubt be debated in Allen's words, but he did stop short of saying he would support the measure once it's on the ballot.

"I would like to congratulate Rep. Wingo, Mayor Dudley and the City of Lake View for the passage of HB148, in which I supported," Allen said in a statement to Patch. "Also, Rep. Wingo was very successful serving his district, and the state of Alabama for eight years. I wish the very best for Rich in the years to come."

Despite Allen voting in favor of putting the matter on the statewide ballot, Wingo insisted that the longtime senator fought hard behind the scenes to derail the legislation at every turn.

"All of these senators who are Democrats, they are the reason this bill got through," Wingo said of support in the Senate chamber. "They came to the public hearings and listened to the people's voice. It was about a community doing the right thing. Senator Allen was wrong and he did not fight for the people ... so he must have an unbelievable debt to this man [Mike White]."

It's also important to mention the Tuscaloosa Legislative Delegation's support of the referendum vote during the last legislative session. However, it's equally vital to mention that the support came in simply putting the matter to a public vote.

"I am pleased that the citizens of Lake View will have a voice in this important matter," said State Rep. Cynthia Lee Almond — a Tuscaloosa Republican who chairs the local delegation committee in the House for Tuscaloosa. "Hopefully this is a step forward for the people there to have more control over their sewer system issues. "

While Mike White referred any comment on the amendment itself to the Alabama Attorney General's Office, he did speculate, without providing specifics, that there were constitutional problems with the way the measure was adopted and sent to the governor's desk.

He also said his company has reached out to the Alabama Public Service Commission for information pertaining to what their oversight would look like if the measure does pass a statewide vote in November.

White then issued what appeared to be a kind of warning or foreshadowing to his thousands of customers in Lake View, insisting that a rate increase would be likely, in order to cover compliance costs with the PSC, in addition to a possible moratorium on building until issues resolved.

This is likely troubling news to some, but it's worth noting that these are longstanding arguments employed over the years by those who have fought to keep the status quo with the private sewer system.

Any rate hike would only add to the current rates that have been rising with increasing frequency. As one Lake View resident told Patch earlier this year, the flat fee for sewer service — not including water — rose from $81 to $126 in just five years.

Customers are not charged based on usage and White has been in the process of implementing a network of shutoff valves to cut service when customers fall behind on payments. In some cases, as residents have argued, this could result in sewage backup that could get the home condemned by the state health department.

In the past, White has also flexed his unilateral authority in instituting a moratorium on any and all building in the past within the Lake View city limits, which Dudley learned the hard way when he and his family first moved to the city in 2018 and had to wait until the company resumed new installations to move into their house.

It's a notion policymakers and citizens have claimed underscores the influence had on a small town by one man.

Dudley chalked up the latest worries to nothing more than scare tactics and an attempt by White to abdicate responsibility for his predatory business practices.

But, he said if their efforts ultimately prove successful, Lake View could represent the beginning of a wider push statewide for regulatory reform of other private sewer owners.

"I've heard stories of other situations in the state where small communities are having similar issues," Dudley said. "Where they have a private sewer owner who arbitrarily raises rates and doesn't have customer service. Lake View may just be the starting point."

At present, though, Dudley said he is awaiting what the measure will actually look like on the ballot, before developing a strategy to help the rest of Alabama understand what's at stake.

"I want to get the information out to people that it is going to be on the ballot, but I think sometimes people are more visual and if we can get people to see what it actually looks like and get them the information, then I think it's going to be easier for people to understand when they go into vote. I also want people to know what it's about and how it helps the people of Lake View. I think getting the story out about it helps tremendously and could help garner support like when we were in Montgomery."

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