Thursday, March 5, 2015

Siemens' contract review

Update: City council voted to retain the necessary staff to investigate the findings presented by the report posted below. The resolution is also posted below. 

Here is the initial report on the Siemen's contract.  I haven't read through it so I can't tell you what it says but here it is.


Anonymous said...


Therefore, of the approximately $123 million in anticipated savings, only $43 million is actually guaranteed by Siemens while almost $80 million will only be realized as aresult of actions taken by the City.

Little wonder why ol' Harvey did everything in his power to not release the Siemens contract to the public.

Anonymous said...

Second, the City must effect the staff reductions in order to realize the anticipated savings. If staff count is not reduced these savings will not be realized. It should be noted that based on our experience with water utilities across the country, municipal labor policies often make it very difficult to effectuate staff reductions in a timely manner.

Get that. To realize $476,000 in annual savings the Siemens contract anticipates a post-haste RIF.

Good luck with that.

Anonymous said...

Conclusions and Recommendations
The majority of the “guaranteed savings” that Siemens maintains will be realized during the contract term are not truly guaranteed.

Game ... Set ... Match!

Did you even read the contract Whitwell?

Anonymous said...

Conclusions and Recommendations
Once the system is fully equipped with remote read meters, the City must effect the staff reductions that drive the operational savings. If current staffing levels are maintained, these operational savings will not be realized.

Kingfish said...

Harvey tried not to release the contract?

Anonymous said...

Appears that two major areas need to be addressed (1) upgrading an aging system, (2) poor management practices for billing and collection of water/sewer. # 1 takes time. # 2 requires hiring competent people.

Anonymous said...

Kinda funny that Q doesn't even mention the word "Jackson" in this profile article. Betcha if asked, he probably never even heard of Siemens. Selective amnesia at its finest.

Anonymous said...

Some of the 'aging' system is around 100 years old. As in, it's aged and still aging. This is going to be 'fun'.

Anonymous said...

...the City must effect the staff reductions that drive the operational savings.

Did this ever see the light of day before the contract was signed? How many city folks were to be fired?

Who killed the mayor? said...

Can I get the contract to investigate the contract?

Anonymous said...

The irony is the City of Jackson will never realize those quoted savings because they involve reducing coast is all aspects of City Government. Secondly, the City got shafted with AKA dumb meters. Remote reading is not an option. Where is the FED when you need them. This is truly disgusting. Shame on Harvey, Pieter T, and everyone else that got their hookup. I wonder it Tony is being paid to not bring a lawsuit.

Anonymous said...

Read the entire report. Thanks for providing it Kingfish. One observation similar to 4:55 PM. Considering what the paltry amounts the City pays its employees I seriously question the City's ability to hire and retain the sufficiently skilled and technical staff necessary to fully implement and manage the Siemens contract.

Just as, after the total mess that resulted from rebuiling Fortification, I do not believe the City is capable of managing the rebuilding and replacement of the City's infrastructure.

Stamps is a big proponent of turning the CofJ into an even larger employment agency by bringing more DPW work "in-house". That would be a disaster. The big emergency water leak downtown proves the point.

Anonymous said...

How many city folks were to be fired?

Minimum of 14.

Anonymous said...

Just the 'billing software' alone is almost $11.5 M....
Whereas the sewer lines are near $15.9 M...
Those smart 'gallon meters' (too big to round)~
>>>>>> $39,889,440

Anonymous said...

Semens profit make numbers look high

manly frosts and highlights in my hair and beard too said...

Gotta like this!

Quentin Whitwell owns the trademark on "JUST LIKE CHRIST".

Between this and the Talon crew and his life coach helping him fart out a call to action (in November, just after he fled Jackson) he's halfway to K Street already!

Anonymous said...

3 Stooges Talon Group- Congressman Whitwelle, School teacher Chip Rino, Diarrhea Mouth Jody Tidwells.

Anonymous said...

To quote Dazed and Confused: "Fah-Q"

Anonymous said...

Uh oh....
1.6 billion in fines fom Seimens.

Check this out:

But if you're too lazy, this is what it says,

"The World Wide Web of Siemens’s Corruption

Siemens won itself a record-setting $1.6 billion fine after pleading guilty to corruption on a global scale. Siemens has faced accusations of bribery and other corporate malfeasance in roughly 20 countries, as illustrated in the graphic below. Roll over the countries to see the company's legal troubles. Countries in purple are listed as having investigations against Siemens in the company's filing with the Securities and Exchange Commission. Countries in orange are additional sites of bribery as identified by the SEC and the Justice Department."

Anonymous said...

After reading this while it appears Siemens has done a horrible job on implementing this project, it sounds like the city employees have been adjusting every bill in the city so no way to get the revenues. Siemens can point the figure to the city and all their adjustments and the city will point to Siemens and their implementation issues.

Anonymous said...

@9:15 Best thing to do at this point is hire more consultants and lawyers!

Anonymous said...

@8:16 Wasn't Jody representing Johnson Controls to try to get this contract.

Anonymous said...

I thought water was measured in cubic feet on the bills.

Morton's Fork said...

Siemens cannot be held responsible for the fact that the city had incompetent staff at all levels.

Investigating the contract will not result in any fault finding with Siemens.

That somewhere around ten meters of the wrong calibration were installed does not bring Siemens under a microscope. Shit happens.

You can bet your last dollar that a company such as Siemens, with it's legacy and reputation, is not going to fall on a sword over the incompetence of step-and-fetched, Rufus and Leon management of a corrupt and inept mid sized Southern slum.

If you look closely at the contract, line by line, somewhere you will see the disclaimer: Siemens does not work magic.

Anonymous said...

Kingfish, I recall that you posted a story more than a year ago about a lawsuit being filed to stop the Siemens contract from going forward.

What happened in that litigation? Can you repost the story? I believe the main argument in the complaint centered around these phantom guaranteed savings.

Anonymous said...

The last thing the 1st Congressional District needs is to elect a lobbyist from Jackson. Especially Whitwell. Siemens - can't wait to see what the real story is! CD1 does not need a disaster like this.

And as someone else pointed out on another thread, anyone who associates with chip reno

Anonymous said...

I was more than a little shocked by the " G" accounts in arrears.

There is no doubt that these State and Federal Government entities had water/sewer costs in their budgets when requesting taxpayer money to cover their budget costs. There's no valid reason for them to be delinquent.

Siemens " guaranteed" savings should have raised flags in the contract process. There should have been lots of questions about how those figures were generated and how the guaranteed amounts would be collected including cost associated with delayed payment. That this didn't happen speaks more to the fact that we don't elect people based on their knowledge of how anything works( including contracts or their ability to understand math at all, much less how to read financial documents. Yet, we entrust them with entering contracts and managing tax dollars.

It would be ok to elect those who " don't know" if they are people who can admit what they don't know and have the judgment to find those who will enlighten them rather than take advantage of their ignorance.

Here's a couple of hints:1) Politicians can't rely on those seeking the contract and 2) Those taking advantage will play to a politician's ego and usually start by saying something like " I'm so glad to work with someone who is smart enough to understand this".

Anonymous said...

It would be ok to elect those who " don't know" if they are people who can admit what they don't know and have the judgment to find those who will enlighten them rather than take advantage of their ignorance.

But, but, but Malachi preys on the ignorant looking for 'guidance'.

Anonymous said...

One thing is clear from the report. The installation of the new meters is woefully behind schedule.

Anonymous said...

7:27, you raise very valid points but there can be no argument that ' this place' is filled to the brim with con-artists on both sides. The people in this state are taught to be complacent and if anyone dares to ask questions that might peel back layers of wrong doing, then they are to be 'dealt with' through various means and maneuvers.

Do not ask yourself why our talent leaves when these practices are the 'status quo' and so many people are involved in keeping these practices alive and well.

Anonymous said...

What does Talon have to do with the Siemens contract?

Anonymous said...

I wonder how many of these billing "adjustments" made by the water dpt are accounts of relatives/friends of city employees?

It sounds like there are no internal controls at all within the city's billing department. And haven't been for quite some time.

My Bill Is Low said...

I don't have any of these problems since I know when the meter reader comes. After he reads the meter, I twist it off and lay it inside the meter housing and then I reattach it about four days prior to reading time so it reflects a little bit of 'water traffic'.

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