News Summary
Following a restructuring at Birmingham Water Works, ethical concerns arise regarding dual roles held by top officials, Mac Underwood and Mark Parnell. Underwood, who is both the general manager and CFO for Greene County, faces scrutiny over potential conflicts of interest. Meanwhile, Parnell’s contract allows outside work, complicating professional boundaries. The recent shifts in governance and decisions by a new regional board raise questions about oversight and public interest as the community engages with these changes amidst historical ties among the officials.
Birmingham – Following a restructuring of the Birmingham Water Works, concerns have been raised regarding the ethical implications of dual roles held by two top officials in the organization. Mac Underwood, who returned as the general manager of Birmingham Water Works in February 2025 with an annual salary of $446,118, also serves as the chief financial officer for Greene County, West Alabama. This dual employment arrangement has triggered questions about potential conflicts of interest and the adequacy of oversight in public service positions.
Underwood’s additional responsibilities in Greene County were authorized to allow him to work remotely, enabling him to handle duties during evenings and weekends. Despite this remote work arrangement, Underwood still makes regular visits to Greene County offices and attends monthly commission meetings. Previously, the fiscal year 2020-2021 contract with Greene County compensated him at a rate of $7,000 per month, with subsequent pay raises leading to his current earnings of approximately $53 per hour, translating to an annual income of around $110,240.
Underwood submitted his resignation to the Greene County Commission in March, with his final working day slated for May 31, as he transitions fully to his responsibilities in Birmingham.
Another key figure, Mark Parnell, serves as the deputy general manager and general counsel for Birmingham Water Works. Parnell’s five-year contract, approved by the previous board, carries a base salary of $660,000 and includes a $1,000 monthly vehicle allowance as well as immediate participation in the utility’s pension plan. Parnell also represents Greene County through his firm, Parnell and Thompson. Notably, Parnell’s contract allows for outside work with the prior approval of Underwood, who supervises him at Birmingham Water Works while also sharing a professional relationship in Greene County.
During the current transition, Parnell has indicated he is scaling back his caseload and responsibilities, including those associated with Greene County. However, he has not yet confirmed a resignation date from his position in Greene County.
The Birmingham Water Works is currently under the management of a newly seated regional board, which is reviewing recent contract decisions made by the former board. The board’s decisions, along with the dual roles of Underwood and Parnell, have drawn scrutiny as they suggest an overlap that could compromise the integrity of public service. Long-standing professional ties between Underwood and Parnell, dating back to Underwood’s previous tenure as general manager, further complicate this dynamic.
Concerns regarding ethics have been voiced by observers such as Jim Sumner, a retired director of the Alabama Ethics Commission, who highlighted that while the dual roles may not specifically breach ethics laws, they raise questions about whether public interests are adequately served. The implications of this situation have sparked a greater dialogue around oversight and accountability in public service roles.
The restructuring of the Birmingham Water Works Board, recently passed by the Alabama House, has granted authority to various entities for board member appointments. Critics of this legislation are apprehensive, suggesting it may curtail local control over an essential resource in a predominantly Black community, potentially complicating community engagement and trust in local governance.
As Birmingham Water Works navigates this new era under a restructured board coupled with the complex relationships among its top officials, the scrutiny surrounding these positions will likely continue, keeping the focus on ethical standards in public service and resource management.
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Additional Resources
- AL.com: Birmingham Water Works Executives’ Dual Roles
- Wikipedia: Birmingham, Alabama
- Yellowhammer News: High Salary Birmingham Water Works Executives
- Google Search: Birmingham Water Works
- ABC3340: Birmingham Water Works Board Bill
- Encyclopedia Britannica: Birmingham, Alabama
