Hoover Firm To Assume Operations Of Tannehill Sewer System

TUSCALOOSA, AL — Hoover-based Living Water Utilities earlier this month reached an agreement with a bankruptcy trustee to assume operations of the controversial Tannehill Sewer System.

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As Patch previously reported, Lake View was first incorporated in 1998 and the following year granted exclusive sewer rights to J. Michael White — the owner of the Tannehill Sewer System.

Over the last three decades, residents have complained and taken legal action regarding sewer rates that have continually risen, along with pointing out questionable business practices on the part of the owner.

As part of the new agreement, the company plans to improve billing and customer service, in addition to launching a web platform and mobile app to increase communication with customers.

This comes after complaints from customers alleging that the Tannehill Sewer System didn't have any digital platforms for paying bills or settling accounts.

The deal, approved Aug. 28 by U.S. Bankruptcy Judge D. Sims Crawford, allows the Hoover-based utility company to take over system operations, billing and collections, and laboratory testing for the sewer system as of Sept. 1.

The agreement also comes as part of bankruptcy proceedings involving ECO-Preservation Services, the company owned by White that previously operated the system and faced a $4.7 million judgment from creditors.

ALSO READ: Into The Sewer: A Deep Dive Into Lake View Private Sewer Owner's Alleged Shell Game

Support for the agreement came from attorneys for the bankruptcy trustee, the City of Lake View and creditors. Under the terms, ECO-Preservation’s owners will have no role in customer-facing operations, except for limited assistance with system transition.

Living Water Utilities, founded in 2012, provides water and wastewater services at more than 100 sites in Alabama.

The company holds 40 state discharge permits — the most of any operator in Alabama.

As part of the agreement, Living Water Utilities will become the certified operator of record for the East Tuscaloosa-West Jefferson Wastewater Treatment Plant, conduct routine and emergency maintenance, oversee sampling and testing, and communicate results to the Alabama Department of Environmental Management.

The company will also provide 24/7 emergency response services.

“We’re proud to have been asked to provide a comprehensive, short-term solution to the situation in Lake View,” Living Water Utilities CEO Bryan Pate said. “We understand the deeply rooted issues within the community about how the system has been operated in the past. We are fully prepared to earn the trust of the community we’ve been brought in to serve.”

The cost of the six-month agreement is $24,330 per month, with pricing subject to adjustment after 60 days depending on facility conditions.

Options for a long-term contract were also approved.

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