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Randy Triplett, ACE Solid Waste, stated that many of the cities have a processing fee clause that <br />can trigger the rate to increase to cover any changes in processing rates for the year. He stated that <br />ACE has processing contracts and are comfortable with the flat rate fee proposal they submitted. <br />Councilmember Riley stated that he also likes the fixed rate fee structure for five years. <br />Councilmember Specht asked for input on a three-year contract versus a five-year contract. <br />Mr. Triplett replied that historically they have held five-year contracts with the City which assists <br />their business in planning for capital needs during that period. <br />Councilmember Menth stated that he also supports the five-year flat rate proposal. <br />The consensus of the Council was to support the five-year contract at a fixed rate with ACE Solid <br />Waste. It was noted that the contract will come forward to the City Council at its next regular <br />meeting for formal approval. <br />2.02: Review 2021-2030 Capital Improvement Plan (CIP) <br />Finance Director Lund reviewed the staff report. <br />Councilmember Riley agreed that with the savings available, the public works facility should be <br />bonded for. He asked and received confirmation that staff would recommend not bonding for the <br />water treatment center as there are internal funds available. He asked if this also includes the five <br />percent increase suggested. <br />Finance Director Lund replied that the increase would be 2.5 percent. <br />Councilmember Musgrove asked if the City would bond at the lower rate for the public works <br />facility project because the bonding interest rate is lower than the internal loan interest rate. <br />Finance Director Lund provided additional explanation on the bonding which resulted in the <br />internal loan not being necessary. <br />Councilmember Musgrove asked if the increase in rates for the water treatment center would be <br />based on projected rates that have not yet been approved. <br />Finance Director Lund provided background information on the water study completed in the past <br />which estimated that an increase of 2.5 percent each year would allow the City to fund a water <br />treatment center in the future. She stated that the sewer fund would also contribute funds for the <br />project. <br />Councilmember Musgrove asked if the final number would be impacted if the 2.5 percent increase <br />is not approved for the next year. <br />City Council Work Session / November 10, 2020 <br />Page 2 of 6 <br />