Kemah claims it is owed $20,000 from power use study

John Suayan, Galveston Bureau Jun. 3, 2012, 8:43am

GALVESTON - The city of Kemah alleges an independent power company owes it approximately $20,000, recent court documents say.

According to a lawsuit filed May 24 in Galveston County District Court, the city hired Managed Energy Services LLC to consult it on "the best use of consumption of energy", but MES failed to perform any services.

Both parties entered into a written agreement titled "Energy Analysis Study and Limited Fulfillment services agreement (City Hall, Police Station and Community Center) City of Kemah, Texas" in January 2011.

MES was responsible for providing an analysis, recommending ideal use of the balance of a $23,030 block grant and optimizing energy for the complainant in accordance to the contract, the suit says.

The city paid the defendant a $5,000 non-refundable retainer to start the work, however, the original petition asserts "MES totally misrepresented the services it would provide with no intention of providing same."

The suit explains that the respondent first recommended installing certain systems pursuant to the grant, "but then shortly thereafter, after the grant application was made and after $13,673.50 more money was advanced, recommended a totally different energy-saving procedure."

"MES also insisted on an exclusive contract to install without bidding," it adds.

"This more expensive method was suggested by MES while they held and continue to hold today the city's $18,673.50."

The city ultimately insists "that MES negotiated in bad faith and had no intention of installing the systems that MES agreed to install pursuant to the grant."

Attorney Dick H. Gregg Jr. of Houston is representing the city, and Galveston County 10th District Court Judge David Garner is presiding over the case.

Case No. 12-cv-1279

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