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Water Works Regional Board in Birmingham cancels general counsel contract and names interim leaders

At a meeting on June 2nd, a newly appointed member of the Birmingham Waterworks Regional Committee voted to terminate the contract of Deputy General Manager and General Counsel Mark Parnell. This decision came as part of broader efforts to reorganize leadership and enhance oversight.

The contract Parnell had, which was ratified by the prior board on May 6, stipulated a monthly salary of $55,000, a vehicle allowance of $1,000, and improved pension benefits. It was set to run until December 31, 2030.

As reported, there were clauses in the contract requiring a 90-day written notice for termination, along with conditions addressing legal jurisdiction, anti-commission terms, and indemnification for legal costs in the event of a lawsuit.

The board’s decision to nullify Parnell’s contract followed backlash over its approval. Previous boards had established several enforcement agreements that included Parnell.

Concerns about the timing of the contract were highlighted by board member Jeffrey Blumlow, who expressed doubts regarding the legal advice he received.

Along with Parnell’s contract termination, the board authorized the hiring of three outside law firms to serve as new legal counsel.

The board also appointed temporary leadership, naming Tommy Hudson as acting committee chair and Jarvis Patton as acting vice-chairman. They will hold these positions until formal bylaws are adopted in July.

Additionally, the Alabama public account examiner requested a financial audit, and the board approved initial steps for possible forensic audits. These audits will complement the utility’s already scheduled fiscal audit for 2024.

The June 2nd meeting was notable as it was only the third occasion the new regional committee came together, and previous executive contracts are now under review.