Prichard water, sewer system receiver gets $5.8 million to resolve ‘serious problems’

PRICHARD, Ala. (WKRG) — The Alabama Department of Environmental Management is providing the Prichard Water Works and Sewer System’s court-appointed receiver with $5.8 million, according to a news release.

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The money will be used “to help jump-start the process toward addressing serious problems plaguing the system,” the ADEM release said. $300,000 reportedly will be used to complete audits of the water system finances, while $4 million will be used to rehabilitate water tanks.

The release said ADEM previously awarded the system $400,000 to conduct finance audits for years before 2022.

“ADEM’s goal is getting Prichard to the point where it can adequately meet the water and sewer needs of residents now and in the future,” ADEM Director Lance LeFleur said. “Extreme water losses, operation and management issues, and financial mismanagement have left the system in dire condition. We are pleased to be able to work with the receiver as he works to resolve some very challenging issues.”

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In November, the Mobile County Circuit Court, which manages PWWSB, appointed John Young as the receiver as part of creditors’ request after the system defaulted on bond payments.

According to the release, PWWSB reported a monthly water loss over the past year that sometimes exceeded 60% system-wide. A study done last year showed that water leaks were costing the city $75,000 a month.

“Both the water and sewer system in Prichard suffer from poor maintenance and the lack of capital improvements,” LeFleur said. “Resolving these issues will be a long-term effort and commitment.

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“ADEM will continue to assist PWWSB and the receiver to bring drinking water and sewer services into compliance and to protect the health and well-being of residents.”

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