A Johnson Controls agreement approved without separate discussion includes a six-figure development cost, while the city's agenda leaves financial details blank

Damien Willis, Organ Mountain News

SUNLAND PARK - The Sunland Park City Council approved an agreement Tuesday, Oct. 20, to begin planning a major upgrade of the city's water meters, including a $249,000 development cost that was not listed in the agenda's financial summary.

The agreement with Johnson Controls Inc. was approved as part of the council's consent agenda, a group of items voted on together without individual discussion unless a council member asks to separate one. The agenda listed the agreement for approval but left four financial fields blank: fiscal impact, amount budgeted, funding source and amount available.

Yet Section 6 of the five-page agreement included in the council's 210-page meeting packet states that the city agrees to pay Johnson Controls $249,000 for project development services. The agreement does not mean the city has already paid the money or approved the full cost of replacing its water meters, but it establishes payment terms for the planning and testing work.

What the $249,000 covers

Under the agreement, Johnson Controls would study the city's existing water meter system and develop a proposal for modernizing it. The work includes reviewing water billing records to identify accounts that may have been billed incorrectly, testing water meters and determining whether some meters are the wrong size or type.

The company would also examine technology that allows utilities to read meters remotely instead of sending employees to check them in person. Other possible improvements include automatic leak detection, an online customer portal and technology that could allow the city to disconnect selected meters remotely.

The agreement also allows the city to consider work to reduce unwanted water entering its sewer system. Not all of those improvements are guaranteed to be included in a final project; Johnson Controls would evaluate the available options and develop a proposed price, expected savings and plans for carrying out the work.

When would the city pay?

The payment terms depend on what happens after Johnson Controls completes its study. If the company delivers the required plans and the city does not enter a follow-up implementation agreement within 90 days, the $249,000 development fee would be payable within that period.

If the city and Johnson Controls sign an implementation agreement within 90 days, the development cost would instead become part of the larger project's total price and follow that contract's payment terms. That means the development cost would not necessarily be an additional charge on top of a future construction contract.

The agreement does not state the total cost of replacing or upgrading Sunland Park's water meters. That figure would be developed during the study.

Work could extend into spring 2027

The agreement includes a proposed schedule that begins with a project kickoff Oct. 28 and a water-meter technology workshop Oct. 30. Meter testing is scheduled for completion by late January 2027, followed by cost estimates, possible financing arrangements and preparation of a proposed implementation contract.

The schedule targets May 18, 2027, for City Council consideration of an implementation contract and financing. Those dates could change if the city and Johnson Controls agree to a revised schedule, and any implementation contract would be a separate step from the development agreement approved Oct. 20.

Why the blank financial fields matter

The City Council agenda described the Johnson Controls agreement as a routine consent item. The staff report recommended approval and included the agreement as an attachment, but it did not list the $249,000 development cost in the financial summary or identify a budgeted amount or funding source.

The council approved the consent agenda without discussing the Johnson Controls agreement separately. Although the amount was disclosed in the attached contract, residents reviewing only the agenda summary would not have seen the project's stated development cost.

The meeting records do not explain why the financial fields were left blank or identify the funding source for the agreement. Those questions remain relevant as the city moves toward a possible water-meter upgrade that could affect utility operations, billing and customer service.

For now, the city has approved the development agreement. The full scope, price and financing of any future meter replacement project remain to be determined.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.