An $85 million plan to repair a century-old dam in Shelby County will be shelved as leaders of Birmingham’s regional water works board consider cost-saving options for the project.
The board will delay much of the massive project as it ranks current needs and evaluates ways to pay for it all.
While much of the plan to repair Lake Purdy Dam will be shelved, engineers urged the board to take immediate action to fortify the structure and prevent potential disaster that would impact thousands of homes.
“Failure of this dam results in possible loss of life,” engineer Patrick Flannelly, a senior vice president at ARCADIS North America, told board members during a work session Wednesday evening. “This dam is not safe enough.”
The former Birmingham Water Works Board in 2024 approved a $78.7 million contract to Thalle Construction Company and $6.8 million in management fees for Arcadis, Schnabel and A.G. Gaston Construction.
Much of that project was to be financed through bond proceeds along with a $171 million loan program through the federal Water Infrastructure Finance and Innovation Act loan.
But current leaders of the newly configured regional water board plan to halt new bond financing that would pay for capital projects.
Some board members also question the structure and terms of the federal loan.
General Manager Mac Underwood, who was not in charge when the federal loan was obtained, said he would seek new terms to lower interest on the debt and return with an update next week.
Some board members also complained that the general contractor was the only company to submit a bid for the project.
In the meantime, the board next week will vote on an alternative plan for Lake Purdy that would address immediate needs.
“We are where we are,” said water board member Phillip Wiedmeyer, a former engineer with Alabama Power Company, who briefed the board. “We need to make a decision on which route we want to go.”
Both Wiedmeyer and acting water works chairman Tommy Hudson recently brought up issues related to the dam.
“The primary drive for this project was a new flood study that was done,” Wiedmeyer said. “The other project that has been noted is seepage from the dam. All dams leak, but you have to monitor that.”
Flannelly agreed that portions of the four-year project could be delayed or modified but stressed the need to reinforce the structure now.
“The dam is not physically strong enough,” Flannelly said. “The do-nothing option still is not an option.”
As an alternative, Wiedmeyer discussed building a “clay blanket” at the base of the dam to address leaking.
“It needs to be addressed, no doubt,” Wiedmeyer said. “We need an ongoing program for inspection of all of our dams.”
Arcadis also advised continuing concrete work to strengthen the dam. That work could be completed by February at a cost of about $28 million.
Water works leaders have long discussed the need for repairs at Lake Purdy Dam.
For example, the dam leaked about 1.5 million gallons per day in 1980, according to old water works board meeting minutes. That leak rapidly accelerated between 2018 and 2019, reaching about 7.6 million gallons a day, water works records show.
A failure at the dam would shut down water for the south end of the water works system, engineers told the board in 2019.
Former board chairwoman Tereshia Huffman and then vice chairman Butch Burbage warned that projects such as the dam repair would be impacted if legislation passed to reconfigure the utility’s leadership. Most of the former board fought the legislation that ushered them out of power.
“Under SB 330, these critically important infrastructure projects, along with dozens of others this leadership team has initiated — including the much-needed rehabilitation of the Lake Purdy Dam, one of the key water sources of the Birmingham Water Works — would be impacted and delayed, meaning higher costs could be passed on to the customer,” they wrote in an AL.com editorial in April.
The new board members have since halted bond transactions. They have also asked for an analysis of how the price of the dam project would impact ratepayers.
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