Ferriday may terminate water contract
posted Wednesday, December 12th, 2012 @ 2:09 pm
Ferriday Mayor Gene Allen said Tuesday he may recommend at the town's January meeting that the Board of Aldermen terminate the third party contract with JCP of Harrisonburg to operate the town's water system.
"It is in the contract that we can give them a 30-day notice to cancel the contract and they can give us a 30-day notice," Allen said. "The mayor and board are in charge of nothing when it comes to the water system."
The discussion came up as part of a letter received from Louisiana Legislative Auditor Daryl G. Purpera about the town operations.
The letter recommended that the town: Get legal advice about the town's utility system privatization contract with JCP, make sure town management and staff are familiar with both the town's and JCP's responsibilities and obligations under the contract, review JCP invoices and costs with aldermen on a monthly basis and set up monitoring procedures to ensure that JCP is in compliance with its responsibilities.
Aldermen Elijah "Stepper" Banks told Allen that the town is responsible for setting up a relationship with JCP.
"Everything is out of my hands when it comes to the water," Allen said. "We cannot control how they spend their money or operate their company. You (aldermen) let the contract to them in April, you gave up the rights to operate the water (system)."
Allen said he and attorney Myisha Davis have looked over the letter and will follow the recommendations.
"There are some things the letter identified as our weaknesses," Allen said. "We need to implement some plans and go in the right direction. We recognize those weaknesses and we'll do what we need to do for what's best for the city. We need to move forward"
Allen said he has met with Glen Womack of JCP and with representatives of Concordia Bank.
Allen said JCP did not pay the September, October or November loan payments of $13,000 each which they are required to pay. He said the town paid the notes so it would not default on the loan.