City officials expressed disapointment Monday night over a letter from DeKalb Utility District Manager Jon Foutch that apparently informed them that DUD officials did not approve of the city’s choice of a firm to do a water-cost study.
While the DUD had previously offered to pay for half of the study, the letter indicates that the utility is not willing to pay because they don’t approve of the company the city picked to determine the cost of water.
The city chose Warren and Associates, an engineering firm from Lebanon to perform the study.
City officials, however, maintain that no discussion of which firm to hire was put forth by the DUD until after a study had already begun.
In the Jan. 29 letter Foutch wrote, “DeKalb Utility is not agreeable in sharing the expense of a cost study performed by Warren and Associates as you have proposed. We have been provided no information as to the qualifications experience or background of this entity, especially in the area of a cost study such as this,” Foutch wrote.
“I am sure both DUD and Smithville want an accurate and qualified cost study, especially since the city has never had one done before. In an effort to get this process initiated, I would propose using the Jackson-Thorton firm, who has a very solid reputation, and experience in performing this type of study. DUD would be agreeable in sharing the expense of a study performed by them. I look forward to hearing from you as to whether that is agreeable. We can discuss other possible entities to perform the study if necessary,” the letter concluded.
Smithville Secretary-Treasurer Hunter Hendrixson told the aldermen that the study has already been started.
“We are already underway with this study,” he said. “They are about three weeks into it. We hope to have the results in the next three to four weeks.”
Hendrixson said he saw no fault with the firm’s credentials.
“They’ve done rate studies before,” he  told the board. “They’ve done one for Smith Utility District, which has about 2,500 customers, roughly the same as the City of Smithville. They’ve also done a rate review for the Cordell Hull Utility District,” Hendrixson noted.
“They are civil engineers, and they do all kinds of water-line construction projects, and water and sewer projects. They did a water-line extension for the City of Alexandria, and a rate study as well,” he continued. “Mr. Warren, who owns the company, has 29 years engineering experience in the field, so I don't see any problem with their experience.
“The total cost is going to be $7,500, which  I assumed the DUD would pay half of, but they don’t approve of who we’ve used to do the study,” Hendrixson concluded.
As for the DUD’s suggestion to use another firm, Mayor Jimmy Poss said that city officials attempted to contact Jackson-Thorton, but had no luck until after another company had been hired.
“We’ve tried to contact that company but no one returned our calls,” the mayor said.
“Well, they finally did return our calls, but we had already hired Warren and Associates,” Hendrixson clarified.
“They never asked for, nor did we provide them with credentials for anybody,” said City Attorney Vester Parsley told the board. “The DUD had no preference until we chose someone. No mention was made of them giving prior approval of who we hired.”
Alderman Shawn Jacobs also expressed his dismay with the situation.
“We certainly had a gentlemen’s agreement,” he said. “It may not have been a contract per se, but it was certainly in black and white, and this board was under the full faith that they would do as they said. I am very disapointed.”
It was agreed that Parsley should draft a letter containing Warren and Associates’ qualifications, asking the DUD to pay half the cost of the study as agreed.