The City of Sacramento has clinched a $13.4 million settlement over allegations of substandard work and fraudulent billing associated with its Accelerated Water Meter Program. This settlement marks a historic high for the city, with Teichert Construction agreeing to shoulder $7.5 million of the bill and the City's construction managers, Psomas and TRC Companies, Inc., doling out the remaining $5.9 million, according to a report from Sacramento City Express.
In a statement obtained by Sacramento City Express, City Attorney Susana Alcala Wood declared, "Sacramentans won’t be deprived of materials and services they paid for." She also stressed that “The meters accurately track water use but the longevity and durability of the infrastructure supporting them remains in question. This settlement protects ratepayers by providing funds to offset replacement and repair costs, which will come sooner than intended.”
The City's lawsuit leveled serious accusations against Teichert Construction for utilizing improper construction materials and methods, failing to meet contract specifications, and invoicing work never performed – encompassing roughly 13,000 water meters across neighborhoods like South Land Park and North Sacramento. The comprehensive inquiry spearheaded by the city unearthed volumes of non-compliant work, such as neglecting to install requisite equipment meant to secure meters and backfilling with materials that didn't meet the approved standards, including the use of plastic pipes instead of copper.
Despite the emergence of these issues, Teichert Construction reportedly refused to rectify the defective work or honor its warranties. This obstinance ultimately drew the city into the legal battleground. Psomas and TRC, while not directly involved in the lawsuit, are said to have played a role in the damages sustained by the City—their participation in the settlement suggests an acknowledgment of contributing factors—to some extent—to the situation.
More intricate details surrounding the issues and legal proceedings against Teichert can be accessed through the informative piece from Sacramento City Express.
