News Summary
The Birmingham Water Works Board has voted unanimously to terminate attorney Mark Parnell’s contract following public uproar regarding his previous performance and compensation. The decision was led by board member Jeffrey Brumlow, who cited a lack of trust in Parnell’s legal counsel. The board aims to enhance transparency and accountability by hiring three law firms at a significantly lower rate and initiating audits of the utility’s financial records. The impacts of this decision, including potential severance implications, are still being evaluated.
Birmingham Water Works Board Terminates Controversial Attorney Mark Parnell Amidst Public Outrage Over Contract
The Birmingham Water Works Board has unanimously voted to terminate attorney Mark Parnell’s contract due to public concern and dissatisfaction with his previous compensation and performance. Parnell, who previously held the titles of deputy general manager and general counsel, received a lucrative contract worth over $3 million that was approved just a day before the former board was removed from office under new regulations. This decision comes amidst growing calls for transparency and accountability within the utility.
Jeffrey Brumlow, a member of the newly constituted board, led the charge to cancel Parnell’s contract, highlighting a lack of trust in his legal counsel. He referred to the contract as “one-sided” and indicated that it was offensive to the ratepayers and the community stakeholders who rely on the utility. Parnell did not attend the meeting where the vote took place, and all attempts to reach him for comment proved unsuccessful.
In response to the termination, the Birmingham Water Works Board has decided to hire three outside law firms to take over the legal duties previously held by Parnell. The new attorneys include Porter, Porter and Hassenger, Paden and Paden, and attorney Reginald D. McDaniel. Each of these firms will charge approximately $400 per hour, significantly less than Parnell’s previous compensation of about $660,000 annually, which equated to more than $1,000 per hour based on the services rendered.
In light of the ongoing skepticism from the public about the operations of the Birmingham Water Works, the board has also initiated several measures aimed at increasing transparency. The board has formally requested the Alabama Department of Examiners of Public Accounts to conduct an audit of the utility’s financial records. Additionally, the board has authorized its lawyers to solicit bids for a forensic audit, which seeks to further examine the utility’s operations and financial practices. This proposal received majority support, although it faced opposition from members Jarvis Patton and Sheila Tyson.
While Brumlow expressed concern about potential legal repercussions following Parnell’s termination, he did not address any potential severance or compensation for Parnell during the meeting. Observations around Parnell’s contract revealed a “golden parachute” clause that requires a supermajority vote for termination and mandates automatic payment of the remaining contract value upon termination. This implies that the board may be obliged to settle approximately $1.3 million as a result of its decision.
These developments come in the wake of a series of contentious decisions made by the previous Birmingham Water Works Board, which had extended substantial contracts to several officials on their final day in office. The current board is focused on restoring trust with the public and ensuring that the utility operates in a transparent manner that prioritizes the interests of its ratepayers.
As the situation continues to evolve, the Birmingham Water Works Board is under pressure to take decisive actions that not only resolve existing concerns but also enhance the credibility of the utility as it navigates future operations. Community members and officials alike are keenly awaiting results from the audits and any further decisions that may affect the governance of the Birmingham Water Works.
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Additional Resources
- AL.com: Birmingham Water Works Board Fires Lawyer
- Wikipedia: Homepage
- WBRC: Birmingham Water Works Board Contracts
- Google Search: Birmingham Water Works Board
- Yellowhammer News: Birmingham Water Works Executives
- Google Scholar: Birmingham Water Works
- AL.com: Birmingham Water Works Board OKs Contract
- Encyclopedia Britannica: Birmingham Water Works
- ABC 33/40: Birmingham Water Board Audit Vote
