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FC CASE CONNEXUS ENERGY BILLING By: James E. Norman, City Administrator Background: Sometime in 2003, it came to the attention that the water utility account had been under-billed for actual water usage. The discrepancy came about through incorrect billings generally through Connexus Energy, the contracted services for the City's utility billings. The total amount of under-billed utility accounts totaled $684,450. The City Council discussed the under-billing for over a year and requested Connexus to consider paying a portion of the bill or providing free services for a certain amount of time. The City Administrator was asked to begin meeting directly with Connexus representatives sometime in late 2004. The City Administrator met with Larry Peterson of Connexus Energy over a year and began considering the possibility of a land exchange. An appraisal of land on the northeast comer of Ramsey Boulevard and Sunwood Drive was performed and it was proposed that the City could purchase the land at a reduced rate. There may be opportunity for such a land exchange, however, staff would like to discuss the matter further with the Finance Committee. Larry Peterson of Connexus Energy has indicated a willingness to meet with the City Administrator and the Finance Committee during their regular meeting. Committee Action: Based upon discussion. Reviewed by: City Administrator Finance Officer FC: 02/14/06