Central Alabama Water (CAW) is prepared to defend itself and its ratepayers against former Birmingham Water Works attorney Mark Parnell, as he seeks to reinstate his controversial contract and keep it in the media spotlight. The contract, which was signed the night before the new board was created, was cancelled shortly thereafter. Not mincing words, CAW attorney Jim Porter told Birmingham FOX affiliate WBRC, "Frankly, we are surprised he continues to bring attention to this issue since it reminds the public of the poor management and self-dealing that plagued the utility for decades while he served as its legal counsel."
Parnell's attorney, John Somerville, sent a request for retraction on Monday to the new CAW board and leadership, according to the CBS report. In it, Somerville references a resolution that said, in part, "Parnell breached his fiduciary duty to the board by allowing the Board to enter into such an agreement without any due diligence or advising the Board to obtain legal counsel on the agreement."
Public comments following the rescinding of the contracts centered around the specifics of the contract and the way in which it was executed, saying that the process resulted in questions of trust. An AL(dot)com report quoted board member Jeffrey Brumlow, "After the way the contract went down with Mr. Parnell, it did not inspire confidence in me."
"Once I read that contract and saw what it did, that was a slap in the face to the ratepayers, to the employees, to the pensioners, to this board. It was incredibly one-sided, and if a lawyer will do that to the board, I can't have you around, I'm sorry," he explained to the outlet, further saying, "We've got to have good counsel, and we've got to have counsel that everyone trusts."
On the evening the contracts were signed, AL(dot)com reported, "Details of the contracts were not discussed publicly, and officials said the arrangements were still being shored up."
Porter's full statement as follows:
It's regretful that Mark Parnell continues to parade himself and this lawsuit around to the media. He clearly wants to try his case in the court of public opinion because he knows it won't hold water in a court of law. If he thinks his publicity stunts will cause Central Alabama Water (CAW) to run for cover and settle the lawsuit, he is wrong.
Frankly, we are surprised he continues to bring attention to this issue since it reminds the public of the poor management and self-dealing that plagued the utility for decades while he served as its legal counsel. Hours before the new board was appointed and while still serving as general counsel for the utility, Parnell wrote himself a golden parachute contract which included:
- a full-time position paying himself $660,000 annually, making him the highest paid employee of the utility; and
- immediately vesting himself in the employee pension plan with 18 years of service without ever contributing one penny, unlike all other employees; and
- a multi-million-dollar payout if terminated by the utility, with $1.3 million due within 30 days of his termination.
"This is the type of behavior that caused customers and legislators to lose faith in the utility's ability to act in the best interest of the people it serves. Thanks to the leadership of the Alabama Legislature, it's a new day for Central Alabama Water. We are committed to transparency and doing what is best for our customers. The CAW looks forward to its day in court and will vigorously defend itself against these frivolous allegations.
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