Who Should Pay For Surprises During Water Meter Installations?

Who should foot the bill when infrastructure challenges arise on private residences during water meter installations?

Officials in Evansville, IN, are facing this question during the latest phase of their Smart City Initiative. "The initiative is an attempt to improve the city's energy, water and network infrastructure by replacing meters that are more than five years old," News 14 reported.

For water upgrades, the city is working with Johnson Controls, "installing high-tech meters that will eliminate the need for meter readers," WEHT reported.

But challenges have arisen during the course of the installations, and customers are concerned about who will foot the bill to resolve these issues.

"As the city continues installing new water meters, crews are finding some areas aren't suitable and that cost is being pushed on to [ratepayers]," the report said.

"The company behind the transition is discovering problems. Water and Sewer Utility Director, Allen Mounts tells Eyewitness News thousands of issues have popped up with landscaping or concrete blocking access to the meter pit," the report said.

Council member Stephanie Brinkenhoff-Riley raised concerns about the costs.

“Johnson Controls has the sole discretion in determining whether the water meters have been installed correctly,” she said, per the report. “This was supposed to be a project that cost the ratepayer nothing.”

Mike Larson said his 80 year-old mother-in-law got a letter stating that if the problems related to her property are not resolved, her water will be shut off.

“She got this letter about a month ago and has been very stressed out about it,” he said, per the report. “It's not broken right now and she didn’t ask to have this new system put in. The plumber that came out gave me an estimate of over $4,000. I don't know how many people in this area can just come up with $4,000 at the drop of a hat.”

Brinkenhoff-Riley said there may still be a possibility that the city could foot the bill. "Part of [the $44 million budget for this project] was 2 to 3 million dollars in contingency funds. Those are funds that are 'what if' funds,” she said, per the report.

Johnson Controls responded to concerns in a statement last month, per WEHT.

“City of Evansville ordinances, codes and utility guidelines determine what technology will be replaced and what cost, if any, is the homeowner's responsibility. Johnson Controls is committed to following the Smart City contract approved by the Evansville Water and Sewer Board, Indiana Utility Regulatory Commission, and the Evansville City Council," the report said.

The company noted that although it is implementing the project, it does not make decisions about cost burdens.