Monticello Live

Monticello's Daily News

Drew Memorial Griffin/Busby
Citizen's Bank Mainline Health Systems

Search

CLASSIFIEDS

OBITUARIES

BIBLE

LOCAL WEBSITES

UAM A

Be A Weevil

Pines Broadcasting Company

Pines Broadcasting Company

Interventions Behavioral Health Services

Interventions Behavioral Health Services

Hooray Yard Cards

Hooray Yard Cards

Ashley County Medical Center 2 A

Ashley County Medical Center

South Arkansas Business Solutions

Corner Express (O&M Oil Co.)

Corner Express

Major’s Forest & Lawn 2

UAM Trotter House A

UAM Trotter House

Western Sizzlin’

Western Sizzlin'

War Eagle Boats

One 11 Southern Graphics 1

ONE11 Southern Graphics

Cass Martin Realty

Cass Martin Realty

Ashley County Medical Center 2

Ashley County Medical Center

Monticello Tire (Goodyear)

Monticello Tire (Goodyear)

Farmer’s Insurance Two

Burgess Process Service

Burgess Process Service

State Farm Mark Gray

Arkansas AG Jon Deere

Arkansas AG

Jerry Cruce Stump Grinding

ESA Staffing

Monticello Exxon

Monticello Exxon

SEEMS

Clearview

Searcy & Associates

Searcy & Associates

UAM News

UAM News

UAM Sports

UAM Sports

O’Fallon Vet

0'Fallon Vet

Secure Storage 2

Hashem Law Firm 1

Hashem Law Firm

Ryburn’s

Farmer’s Insurance One

ESA Staffing 2

Ray’s

Merchant & Planters Agency, INC.

Merchant & Planters Agency, INC.

NorthSide Baptist Church

Northside Baptist Church

Mingo Computer Consulting

Mingo Computer Consulting

Avocados

Avocados

Searcy & Associates 2

Searcy & Associates

Frazer’s Funeral Home

Frazer's Funeral Home Warren

Bradley County Medical Center

Head of the Class

UALR Delta EOC

UALR Delta EOC

Gibson Recommends State Police Investigation on Siemens Water Contract – “Think They’ve Left Town” – Video

December 22nd, 2014 by

Mr. Cliff Gibson, a local attorney hired by the City of Monticello to assist them in resolving problems with Siemens Industries Corporation, addressed the City Council at their meeting Thursday evening.

Earlier in the day, Mr. Gibson had submitted a 13 page report on his findings thus far in his investigation of Siemens and its arrangement with the City of Monticello to refurbish the City’s antiquated water system.

When asked by a council member to summarize his findings and recommendations, Mr. Gibson stated that there is too much information to summarize, and that he strongly recommended the Council read the report in detail, as well as previous correspondence between the City and Siemens.

Attorney Gibson then informed the Council that his report reveals serious, troubling problems with Siemens.

His recommendation is that the Arkansas State Police be contacted and asked to investigate. He also told the Council that Siemens has alluded in correspondence they wish to enter mediation with the City, and he recommends that the City at least attempt to engage in that, in an effort to recover some of the $7 million the City has already paid Siemens, the $136,000 in defects and installation problems, and damages.

He listed just a few of the problems the City has experienced, from water meter leaks, to improper connections, to tops missing off of meters. Mr. Gibson stated that three different tests had been conducted, and that the new water meters that Siemens installed are working at about 95% accuracy. This is significantly less than the 98% accuracy that Siemens had guaranteed.

When Mr. Gibson contacted the laboratory that conducted the testing to request copies of the test results, he was told they would have to check with Siemens before releasing the results.

When he checked back with them to obtain copies of the test results, he was told that the lab no longer has those results.

Mr. Gibson was also troubled by the fact that on November 13, Siemens assured him that they would provide the Letter of Credit required by Arkansas law to secure the performance guarantee, without delay. It has now been more than a month, and Mr. Gibson has not received that letter, nor has he has any further contact with Siemens.

Even more troubling is the fact that Siemens has vacated Monticello. Their personnel and equipment are gone. They have no one here to fix the more than $136,000 in damages to their defective water meters, faulty connections, etc.

Further troubling was the fact that before abandoning Monticello, Siemens tried to get the City Clerk, instead of the Mayor, to sign off on accepting the meters and their work done thus far.

Mr. Gibson asked the Council for authority to enter into mediation with Siemens, and permission to contact Siemens legal department in Chicago to set up dates and arrangements for mediation. He explained that he would not have any authority to make any decisions involving the resolution of problems, and that any offers of resolution from Siemens would have to be approved by the Council. Mr. Gibson is only requesting permission to initiate mediation proceedings with Siemens.

Mr. Gibson stated that if mediation fails to produce a resolution that is acceptable to the City of Monticello, that a lawsuit would be instituted to cancel the contract and seek to recover the City’s money and damages.

After considerable discussion, the Council decided they want to have more time to read and reflect on Mr. Gibson’s report before they give him permission to set up a mediation meeting with Siemens.

The decision was made to meet on January 7 at 6:30 p.m. to vote on his request.

One Response to “Gibson Recommends State Police Investigation on Siemens Water Contract – “Think They’ve Left Town” – Video”

  1. Joe Harrod says:

    Again, Mr. Gibson should be applauded for taking control of an already bad situation. It seems pretty evident that he, and his firm, are the only ones that have read, studied, and understand fully, the documentation that went along with this multi-million dollar contractual obligation between the City of Monticello and Siemens. The people that signed off on this contract without reading and fully understanding it should be held accountable also.

Leave a Reply

Arkansas Hospice 1

Arkansas Hospice

A.J. Huffman Graphic Design

Drew County Public Facilities Board Help Wanted

DCPFB Help Wanted

BCMC Family Care Clinic 1

Majors Forest & Lawn 1

Old Milo Farms Tree Farm

One 11 Southern Graphics 2

ONE11 Southern Graphics

Malco Theater

Lee Moore Taxidermy 1

Prescription Pad Pharmacy

The Prescription Pad Pharmacy

Ashley County Medical Center 1

Ashley County Medical Center

Commercial Bank

Mr. Bug

Mr. Bug

Farm Bureau

KK Logistics

KK Logistics

Drew Farm

Union Bank 2

Immanuel Baptist Church

UAM Trotter House B

UAM Trotter House

City Drug

City Drug

Ashley CountY Medical Center 3 A

Ashley County Medical Center

Advertise With Monticello Live

Ray Ryburn Real Estate

BCMC Family Care Clinic 2

Baker’s Electrical

Baker's Supply

Arkansas Hospice 2

Arkansas Hospice

Monticello Animal Clinic

Monticello Animal Clinic

AM Rental & Sales

AM Rental & Sales

Ashley County Medical Center 3

Ashley County Medical Center

Quality Plus Dry Cleaners

Quality Plus Dry Cleaners

Union Bank 1

La Terraza

La Terraza

Citizen’s Bank 2

Citizen's Bank

UAM B

Be A Weevil

Mullis Insurance

Sammy Mullis Insurance

Monticello Realty

Monticello Realty

Lee Moore Taxidermy 2

Lucky’s Of Monticello

Paint & Lighting Plus Inc.

Paint & Lighting Plus Inc.

Hashem Law Firm 2

Hashem Law Firm

Bone’s Auto Parts

Bone's Auto Parts

Small Bites Pediatric Dentist

Mitchell Lumber & Hardware

Mitchell Lumber & Hardware

Citizen’s Bank

Citizen's Bank

Ashley County Medical Center 1 A

Ashley County Medical Center