California Construction News staff writer
The City of Sacramento received $13.4 million to settle its lawsuit alleging non-compliant work and fraudulent billing on the Accelerated Water Meter Program, the city’s initiative to comply with a state requirement that all urban homes and businesses have water meters by 2025.
Under the settlement, the largest in city history, Teichert Construction paid $7.5 million and the city’s construction managers – Psomas and TRC Companies, Inc.– paid $5.9 million.
“Sacramentans won’t be deprived of materials and services they paid for,” Attorney Susana Alcala Wood said in the press release. “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.”
In the lawsuit, the city accused Teichert of using improper construction materials and methods, failing to meet contract specifications, and billing for materials and labor not used in the course of installing about 13,000 water meters in South Land Park, Tradewinds, North Sacramento, Meadowview, Golf Course Terrace, and Lemon Hill.
An investigation into Teichert’s work on the Accelerated Water Meter Program found a large volume of non-compliant work, including not installing special equipment designed to hold meters in place, backfilling excavations with unapproved materials, and using plastic pipe instead of copper pipe.
Teichert refused to correct its defective work and honor its warranties, necessitating the city’s lawsuit. While not parties to the litigation, the city’s construction managers, Psomas and TRC, participated in this settlement solution based on the city’s contention that their actions contributed to its damages.
More details about the lawsuit against Teichert are available here.
