The City of Duluth contracted with Johnson Controls several years ago to make upgrades to the Duluth Steam Plant. The initial cost of the improvements was expected to produce a savings of over 6 million dollars in energy costs but fell considerably short of that. Duluth Mayor Don Ness says its time for Johnson Controls to live up to the contract and pay the city back for an investment that was guaranteed to work and didn't. He says the city also spent tens of thousands of dollars in legal fees and consultants trying to reach a settlement with the company. J-C-I says a settlement to pay the difference between the projected and actual savings was rejected by the city, leaving them no choice but to let an arbitrator rule on the matter. An arbitration hearing is set for April of 2011.
