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6/18/2007
Appleton makes a deal with the devil
Once again, we citizens get the raw deal. And this time it’s in black and white, clear as day. I’ve written about the screwed up “state-of-the-art” Appleton water plant before – and how its construction has resulted in Appleton folks paying some of the highest utility bills in the state. I’ve said it was “well past time ratepayers are reimbursed for the multi-million dollar screwups. And before that I asked the powers that be to, for gosh sakes, admit their mistakes and apologize.
Well, the city was to have none of that. This week, an Agreement will come before the City Council in which the city 1) agrees to purchase millions more in supplies and capital equipment from a supplier they agree never met the terms of its original Contract and 2) agrees to hold the self same company harmless and to endorse the product in the future. That’s just unbelievable.
In their defense, the Common Council has a Hobson’s choice to make. The alternatives to a “Settlement Agreement” with Koch Membrane Systems (KMS) are judged to be either more expensive (completely replacing the filtration system at a cost of tens of millions of dollars) or high risk litigation. (Ask your alderperson why the city isn’t in a better position to sue these guys…)
It must be said that the “Replacement” part of this Agreement is needed. Utilities Director Mike Buettner, City Attorney Jim Walsh and $150,000 (and counting) worth of outside legal advice and consultants have finally (8 years after the initial Contract) established standards of performance and the mechanisms necessary to hold KMS to those standards.
But here are additional pieces of the proposed Settlement Agreement with KMS passed by the Utilities Committee and coming before the Common Council this Wednesday.
“WHEREAS, the City believes the KMS UF [ultrafiltration] System has failed to meet the warranties and performance guarantees set forth in the Contract; and
“WHEREAS, KMS believes it has met all its obligations to the City, including those imposed by the Contract…
“The City hereby releases KMS from any and all liability it may have… This release specifically covers any damages sustained by the City resulting from the alleged breach by KMS of the Contract.
“The City shall…hold harmless KMS…from any claim, demand, cause of action, liability, loss, cost, damage, and expense…even if performance of the Contract by KMS was negligent or inadequate.”
And here’s the real kicker – the shill.
“KMS and the City both wish for this UF System to serve as a showcase for KMS membranes modules. In consideration of the foregoing, KMS agrees to provide the City with pricing equivalent to the most favorable pricing it charges other customers ….” [emphases are mine]
Give me a break. KMS is finally warranting product replacement (at a cost to the city of $200,000/year) that has never worked as originally promised. And then the City of Appleton is supposed to recommend these filters to other filtration plants? – I guess so more communities can pay the same high water rates we pay. That is dealing with the devil – and it is a sham.
As citizens it’s absolutely our job – and definitely the job of our elected representatives – to constantly question decisions made by our governments and decisions made to spend our taxes – and in this case, our utility payments. And one thing the Council absolutely must question is agreeing to shill a supplier they believe failed to satisfy original warranties and performance guarantees.
COMMENTS
Jo: I religiously read your political blogs each day and find that you pick relevent topics and provide well informed information especially on this topic. You were ahead of the curve with this issue before the last mayoral election and were always a voice in city government questioning these types of decisions.
It is unfortunate that with all this that the city continues to go down these same paths that cost the taxpayers millions with no apparent repercussions from their actions.
I really think it is time for a new administration that understands the realities of taxation and how it effects the average citizen in this city.
Since you have so much knowledge and passion for change, maybe you should consider running. I think you could make a major impact.
Mike Thomas (Mon Jun 18 08:08:06 2007)
Regards the last paragraph (not copied in) I just did a small review of the information available on the alderpersons at City of Appleton website. Many of the
'get more information' links go to blank pages or what is possibly worse, having the form filled in with stuff like 'gardening and reading' as major interests.
This sort of thing does not relate to city government. I hope next election has some legitimate choices for mayor and city council as well-- choices that will give the constituents better access to their representatives.
Lon Ponschock (Mon Jun 18 13:55:19 2007)
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