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<br />Councilmember Look questioned what will prevent this type of reading error if the service is <br />brought in-house. <br /> <br />Fire Chief Kapler indicated an exception report is generated. One big advantage to bringing the <br />service in-house would be the shortened time in analyzing that report and being aware of <br />problems. <br /> <br />Councilmember Strommen pointed out that the standards included under the performance <br />language in the contract is very vague and allows Connexus the ability to state they performed <br />according to their standards. <br /> <br />Councilmember Elvig commented the same issues with Connexus have been gone over multiple <br />times with multiple Councils, with the City stating the performance is not up to the standards and <br />Connexus saying it is fine. The City receives calls from constituents saying they want something <br />better, and there is the back and forth between Connexus and City staff. The question is the cost <br />to bring the service in-house. There will also be soft costs due to the learning curve for the City. <br />He pointed out the benefit of being able to include information with the billings if the service is <br />brought in-house. <br /> <br />Mayor Gamec asked if there will be a need to increase rates to bring the service in-house. <br /> <br />Councilmember Elvig noted the Comprehensive Water Plan looked at the costs extended out 15 <br />to 20 years, and a slow increase was calculated over the 20 years. <br /> <br />Finance Officer Lund indicated the rates have been calculated to increase approximately 3% <br />every year based on the Water Study. <br /> <br />Interim City Administrator Nelson indicated staff will determine if there are other companies <br />that would provide this service. She recommended a broader look in that this may not just be <br />about water and sewer. As the City grows and adds service there will also be consideration of <br />services such as Park and Recreation and Wi-Fi. There should be consideration of whether to <br />build for those types of services the City is not doing today that they may be providing in the <br />future. She indicated staff will contact Connexus again to determine if their attitude has changed <br />regarding the service issues, and staff will obtain information about what other cities are doing <br />with this service. This topic will be part of the 2008 budget discussion and will be brought back <br />for discussion at that time. <br /> <br />Councilmember Dehen expressed concern that one or two unpleasant situations could be set up <br />as the driving force on a particular action. The $6,000 water bill seemed to be remedied, and it is <br />his understanding that the $7,000 billing error occurred in 2003. He questioned why the City has <br />not done anything to move that situation forward. He stated there are plenty of law firms that <br />would take this type of case on a contingent fee basis with no exposure to the City as far as <br />anything out of pocket. This situation would either involve some sort of breach of the contract <br />that was in place or some negligence that should be able to be quantified. <br /> <br />City Council Work Session / April 10, 2007 <br />Page 4 of9 <br />