Minutes - Council Work Session - 04/10/2007

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Mayor Gamec indicated the City's legal counsel advised the City would not likely recoup the cost of taking this on with Connexus. Councilmember Elvig explained the City was hitting a stone wall trying to work through the issue with Connexus. Councilmember Dehen stated if the City were to show that Connexus was at least 50% negligent, the negligent amount that is determined would be assessed by a potential jury. With a determination of50% the City would recover $350,000 of the $700,000 in total damages. Councilmember Strommen explained the $6,000 water bill and the $700,000 billing error have been used as an example. The real issue is that they have come to the conclusion that these incidents are systemic of a bigger problem, and that Connexus' level of service does not meet the standard the City wants to give to the citizens. Councilmember Dehen stated from his perspective, he understands there are some customer service issues, but that has not been quantified. Secondly, is the question of how many people are calling regarding utilities. Finance Officer Lund indicated the major problem occurs at certification time. In September, Council receives a listing of all the past due accounts; the majority of these are from people that have moved out of their homes and the new people that have moved in receive those bills. These past due accounts can be assessed to the property taxes. The new homeowners are likely tossing the bills that are sent with the previous homeowner's name and do not realize the situation until they receive a call from the City. With the service in-house the City could keep a better watch on the final bill. Councilmember Elvig stated he would be in support of pursuing a resolution to the $700,000 billing error again, and also bringing the utility service in-house. Councilmember Jeffrey suggested consideration of forming a consortium with other small communities that may be suffering the same utility billing problems being experienced by Ramsey. 2) Review of Current Sign Regulations Removed from the agenda. 3) Concept Plan for Apartment Building in The Ponds Associate Planner Daines stated Roger Fink of Trident Development, LLC is planning to submit a formal site plan application for an apartment building on the lot within the Ponds subdivision. The property is currently zoned R-3 high density housing, and was rezoned as part of the Ponds rezoning request in February of 2002. The original intent of the property was to be developed with approximately 60-70 units of senior housing. Ms. Daines stated Trident Development is proposing a 63 unit, general occupancy, 3-story building on the Ponds property, which is City Council Work Session / April 10, 2007 Page 5 of9