News Summary
The Birmingham Water Works Board faces criticism for approving numerous last-minute contracts before a new regional board takes charge. Concerns arise over the fairness and transparency of the board’s financial dealings, particularly regarding a significant contract for board attorney Mark Parnell. Allegations of racial discrimination further complicate the situation. The new board aims to address public skepticism through audits and communication efforts to restore trust in the utility’s governance.
Birmingham — The Birmingham Water Works Board (BWWB) has come under scrutiny for approving several last-minute contracts as a new regional board takes over. This situation follows the restructuring of the board, which commenced on May 7, prompting concerns regarding the fairness and transparency of prior financial dealings. The new board, which has a focus on auditing the utility’s operations and contracts, is now left to navigate the fallout from these recent developments.
Among the most notable contracts was a significant agreement for board attorney Mark Parnell, surpassing $3 million. This contract, along with those of four Assistant General Managers (AGMs), resulted in over $2.6 million in commitments. Parnell’s individual agreement included a base salary of $660,000, which eclipses the General Manager Mac Underwood’s salary of $446,118. Such remuneration structures, particularly toward the end of the previous board’s tenure, have raised eyebrows among ratepayers, with many perceiving them as excessive.
Concerns surrounding these contracts intensified following an amended complaint alleging custom or policy of racial discrimination, which names Jefferson County Commission President Jimmie Stephens as a defendant. In a recent interview, Stephens addressed the issues facing the BWWB and challenged the City of Birmingham’s racial discrimination claims, referencing Census Bureau data that highlights Birmingham’s share of utility users at 25%. He asserted that this overrepresentation raises questions about the lawsuit’s validity.
As the new Birmingham Regional Water Board seeks to reverse prior decisions, they hope to address public skepticism and restore trust. The board has announced that an audit of the utility’s finances will soon be initiated, mainly to provide clarity on the former board’s activities. One member has specifically advocated for this initiative to ensure that all public concerns are adequately addressed.
Prior to its dissolution, the former BWWB consisted of nine members appointed from multiple authorities, including two from the Birmingham Mayor’s office and four from the Birmingham City Council. The new board, including Stephens’ appointee Phillip Wiedmeyer, has been met with praise from Stephens for its emphasized communication and positive direction.
The urgency of the situation is underscored by the former board’s inclination to guarantee contracts for senior management before the transition. Key provisions embedded in Parnell’s contract demanded a supermajority of seven votes to remove the General Manager, coupled with a two-year severance arrangement that complicated termination. Observers have called the last-minute approvals a “slap in the face” to ratepayers, especially at a time when financial accountability is being demanded by the community.
As the new board, which has already dismissed Parnell due to these contractual concerns, seeks to implement its vision, they are also set to hold critical meetings to navigate the changes. The BWWB’s upcoming work session is scheduled for June 18 at 6:00 p.m. and the next regular meeting will follow on June 24 at 6:30 p.m. The new board’s priorities include reevaluating existing contracts and strategies to assure alignment with best practices in governance.
The previous fiscal year’s expenditures on legal counsel amounted to $1.7 million, further drawing attention to the financial management of the board. As new leadership moves forward, emphasis will be placed on correcting prior missteps and fostering greater accountability among board members.
The transition in leadership at the BWWB represents a crucial turning point in the governance of Birmingham’s water utility. With a renewed focus on financial scrutiny, transparency, and community engagement, the newly instated board aims to restore trust and ensure the interests of all ratepayers are prioritized amidst ongoing controversies.
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Additional Resources
- WBRC: Old Birmingham Water Works Board Gave Management Millions in Contracts
- AL.com: Old Birmingham Water Works Board Approves $3 Million Job Contract
- ABC3340: Birmingham Water Outage Planned for Valve Replacement
- Wikipedia: Birmingham, Alabama
- Encyclopedia Britannica: Birmingham, Alabama
