The City of Monticello will enter into mediation with Siemens Industry, Inc. to terminate its $10 million contract for a water project and recover the unearned portion of $7 million the city has already paid the company.
“I believe that since this project has become so muddled over the course of this last year, the only way that we can move forward with this project is to move forward with mediation,” Mayor Zack Tucker told the council at a special council meeting Wednesday night.
Mediation was one of the recommendations Monticello attorney Cliff Gibson previously made to resolve issues surrounding the multi million water project which has raised serious concerns, including, Siemens’ failure to install the type of water meters contracted for by the city, the high failure rate of the meters Siemens subsequently installed, water billing problems, the fact that the plans for the water line replacement project have not yet been put in a final form acceptable to the city,the company’s lack of a performance bond for the project, and the fact that the city paid the company $7 million before any work was started or completed.
“We will not only be seeking termination of the relationship between the city and Siemens, but also the return of the money — $7 million — less what is going to be the reasonable value of what they have supplied; that’s where I think the rub will be,” Gibson told the council Wednesday night prior to its unanimous vote to enter into mediation.
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