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questioned what could have been done to have prevented this large bill. At the last meeting of July 27, 2006, Mr. Phaney asked to see a copy of the contract that the City has with Connexus Energy and what responsibility Connexus shares in the large bill as they failed to make a meter reading on January 9, 2006, which would have caught the problem at a much earlier date. It was also requested to see if surrounding properties were estimated for the same time period. The requested information has been included in the Council packet. Ms. Lund stated staff was requested to contact Connexus Energy and have a representative present at a future Finance Committee meeting to discuss the utility billing contract between Connexus and the City. Representative, Mr. Julian Jones, is present tonight to discuss the contract and answer questions of the Finance Committee. Julian Jones, Connexus Energy, stated typically the City of Ramsey has a lot of estimated readings. This is due to many factors, such as where the pins are situated on the remote readers and the equipment. The 2006 read rate is much higher than in previous years; last year a different type of meter reading guns were purchased, specifically from the manufacturer of the type of meter that is utilized. Connexus' goal is to achieve a 90% read rate, and the rate is currently at 92%. Finance Officer Lund questioned if it is typical to have one area with 67% of the meters not having been read, as was the case in the area of Ms. Smith's home. Mr. Jones replied there could be many different factors for this particular read rate. This route had a read rate of about 80%, which is worse than the average rate. Typically when a reading cannot be done there is an investigation through the system. If a good reason for the non-reading cannot be determined, a different type of meter reader will be sent out. This route is done by a contract meter reader, which allows Connexus to keep costs down. Once that particular meter reader and contract vendor cannot get a read the part-time meter reader will be sent out. If a reading still is not obtained, typically a report is sent to Utilities Supervisor John Nelson to investigate. There could be several reasons for not obtaining a reading, such as a frozen door on the remote reader or a dog in the yard. On average the read rate in January is not as high as it is in July or October, primarily due to weather. This route does utilize a pin reader, which typically do not complete reads as easily. A survey is being completed of this route to determine how many pin readers there are on the route. Acting Chairperson Elvig stated the Finance Committee is responding to a citizen who has an urgent need. She is stating that the City did not complete their job and read the meter, and if someone had actually stopped by her home they could have short-circuited this problem and discovered the problem much sooner than the damage of $6,000. The Finance Committee wants to discuss this situation with Connexus, as they are contracted to do the meter readings, and first of all to hear why this would happen. He noted Mr. Julian has indicated the average readings are at a 92% rate in the City; but the readings are down to 67% in this area. Acting Chairperson Elvig questioned what obligation Connexus feels they have in this predicament. Mr. Jones indicated if a good reading had been obtained in April the bill would have been $3,000 as opposed to $6,000. He cannot give a definite answer on how much liability there is. He is having trouble understanding where the customer's responsibility lies in this, and would have to Finance Committee / August 22, 2006 Page 2 of5