AGO 1996-132.

• Case Date: February 09, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-132. 1996-132February 9, 1996Honorable David Neal Attorney, Gas Board of City of Russellville Bedford & Rogers P. O. Box 669 Russellville, AL 35653 Municipalities - Utility Boards - Gas Boards - Boards of Directors - CompensationThe word "system" as used in _ 11-50-15 refers to utility facilities for producing, storing, and distributing a utility service such as water, gas, or elec- tricity. A director may be paid based on the number of systems operated, of whatever type.Dear Mr. Neal: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION What does the word "system" mean as used in _ 11-50-15, Code of Alabama 1975? FACTS, LAW AND ANALYSIS Your question arises because _ 11-50-15 prescribes fees for members of the board of directors of certain public corporations which own and operate utility systems. Such fees may be based upon the number of "systems" owned and operated by the corporation. Section 11-50-15 reads as follows: "In any instance where a public corporation heretofore or hereafter organized pursuant to the provisions of Sections 11-50-231 through 11-50-238, 11-50-240 and 11-50-241 as amended, or under the provisions of Sections 11-50-310 through 11-50-318 and 11-50-320 through 11-50-324 owns and operates one or more utility systems, the board of directors of such corporation may at its election authorize the payment by such corporation of the following directors' fees to the members of the said board of directors in lieu of the directors' fees authorized in the statute under which such corporation was organized: No fee shall be paid to any director for services rendered with respect to a sanitary sewer system. In any instance when the system or systems owned and operated by the corporation are any one or more of a water system, a gas system and an electric system, the chairman of the board of directors may be paid a directors' fee in an amount not exceeding $125.00 each month for one such system and $25.00 each month for each additional system, and each member of the board of directors other than the chairman may be paid a director's fee in an amount not exceeding $100.00 each month for each system and $20.00 each month for each additional system; provided, that where the municipality with respect to which the...