Hernando Signs AI Deal for Local Services
The Hernando Board of Aldermen voted unanimously Sept. 16 to approve a $45,000 contract for an AI-driven customer service and work-order system for public works and utility billing.
At the regular meeting, Mayor called on the public works director, identified in meeting audio as Stephen, to explain the request, saying, "Stephen, would you like to get up and answer that since this is your department? You've done the research." Stephen told the board the deal would be covered by savings from switching water-treatment chemical vendors. "At the end of the day, the entire process is going to cost us 45,000," he said, adding that the amount "puts us in the ball game to basically take care of a software that we were going to have to purchase," referring to work-order software otherwise costing $20,000 to $30,000.
An alderman asked whether paying for the contract through the utility fund was "legal and good." The city attorney replied that he would recommend starting that way for now. The contract includes a 4% price increase after two years, with costs able to grow if the system's scope expands to other departments. The mayor said he would sign the contract the next morning.