Former Cullman County Water Department Manager David Bussman is seen at the first meeting of the South Cumberland Cooperative District in this May 10, 2010 Times file photo.

The Cullman County Commission has agreed to settle a lawsuit with its former water department manager for $28,000.

On Tuesday, the commission approved a mediation settlement agreement with David Bussman, potentially ending litigation that’s stretched across two county commission administrations.

After being terminated as manager of the Cullman County Water Department in April 2011, Bussman filed suit the following June, accusing the county of breaching his contract and county officials of wrongfully and intentionally defaming and slandering him. He sought more than $2 million in damages and attorneys fees.

The county then counter-sued Bussman in July 2011, alleging he conspired with former commissioners Doug Williams and Wayne Willingham to create a new county water utility. The county also accused Bussman of using $137,000 in public water funds to pay the Birmingham attorneys to set up the new water department.

After four years and a flurry of filings back and forth, Cullman County Circuit Judge Martha Williams granted the county summary judgment in March and dismissed both lawsuits with prejudice.

Bussman appealed the circuit court’s decision to the Alabama Supreme Court April 27, and the case was set on its appellate mediation docket. Bussman and the county were ordered to appellate mediation with Bussman July 13 with Decatur attorney J. Glynn Tubb serving as mediator.

On Tuesday, County Attorney Heath Meherg said both parties had a deadline this week to notify the judge if it reached an agreement.

“It would be a substantial cost if we had to go back to trial,” Meherg said.

The commission’s vote Tuesday likely brings an end to the last chapter of the county’s water department debacle saga that erupted five years ago.

In September 2009, Williams and Willingham signed a five-year employment contract with Bussman. The contract stipulated Bussman was to be paid $75,000 the first year, $86,000 the second and $90,000 the third year.

Bussman and the two commissioners orchestrated the creation of two new entities — The Governmental Utility Service Corporation of Cullman County (GUSC) and the South Cumberland Cooperative District (SCCD) — with the help of Birmingham attorneys. Bussman’s contract and the setting up of the new entities were all done without Chairman James Graves’ knowledge.

On April 27, 2010, the commission voted 2-1 — Williams and Willingham casting the ‘yes’ votes — to dissolve the existing water department and establish a new one over Graves’ strong opposition.

Within two weeks of that meeting, a group of citizens filed suit and ultimately successfully recovered the Cullman County Water System and its assets worth $30 million from the two entities. Bussman left his position as manager of the Cullman County Water Department in May 2010 to become manager of the SCCD. Williams and Willingham were swept out office during the June primary.

In November 2010, the commission, with Graves and newly elected Darrell Hicks and Stanley Yarbrough, voted to suspend Bussman indefinitely without pay while investigating the water department’s finances. Bussman later sued.

Randall Waldrep currently serves as county water department manager.