The council had previously approved to enter final negotiations for a contract with Ferguson to install about 300 of the new and more technologically advanced radio-read water meters at last month’s City Council meeting.
After careful review from City Attorney Acie McAda, the city leadership decided to not sign the contract due to McAda addressing concerns and issues to the council about the contract that might not fully benefit the city.
“Our attorney had a lot of issues with the contract that we’ve not signed yet,” said Mayor Brent Houdmann. “He just reviewed it and said it was too beneficial for Ferguson, so he was going to contact them and see what their response is.”
Houdmann states that a main contract issue was the installation of the meters and how the city, rather than Ferguson, would be responsible to fix any meters that did not work properly.
“They said that they would install it but if any of the meters were bad, then it was up to the city to fix those issues,” explained Houdmann about the problem with the contract. “The way it works is that Ferguson buys the meters from somewhere else and then installs them. If the meter is bad, it would be the city’s responsibility to either fix it or return it back to the manufacturer.”
McAda is set to confer and expound the contract issues with Ferguson soon.