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<br />Mayor Gamec reiterated that he was not comfortable in billing businesses and, if they do not pay, <br />putting this on their tax rolls. <br /> <br />Councilmember Dehen stated that the City will never know if the businesses can pay the amount <br />they owe, unless they are billed. <br /> <br />City Attorney Goodrich stated that because many businesses have moved on, the City would see <br />situations similar to the one mentioned at the last City Council meeting where the resident had <br />been assessed for a water bill that the prior owner had and never paid and now the new <br />homeowner is responsible. <br /> <br />Councilmember Olson stated that in Minneapolis about 15 years ago, they switched to a new <br />computer system and millions of customers were never billed for water. Because the situation <br />went on for so long, Minneapolis chose to absorb the costs rather than to bill the customers. She <br />stated that she is concerned because it is tough enough right now for businesses and to slap them <br />with a late bill as sizable as some of these are will put them over the top. She stated that the City <br />Council needs to decide if they want to have a business friendly climate. <br /> <br />City Attorney Goodrich stated that the City has collected 10% of the correct amount from these <br />customers. <br /> <br />Councilmember Strommen stated that her recollection of the situation was the City expected <br />Connexus Energy to step up and pay for one-third of the missed amount, the City would pay one- <br />third and the businesses would pay the remaining one-third. She stated that somehow, the City <br />screwed around trying to negotiate with Connexus Energy and the ball got dropped. She stated <br />that she is very frustrated that Connexus Energy does not want to own up to their responsibility <br />even after many groups from the City met with them to discuss the issue. <br /> <br />Councilmember Look stated that if we do not bill the businesses for the correct amount, he <br />wondered if the City would then increase the water rate for everyone to make up the difference. <br />He stated that it would be similar to shopping at Kohl's and the price you pay for clothing <br />includes the cost for clothing as well as the people that shoplifted the clothes before you got <br />there. He stated that he does not feel the City should just look the other way. <br /> <br />Mayor Gamec stated that he feels that any money the City receives would be a bonus. <br /> <br />Finance Officer Lund stated that yearly rates are determined based on the amount collected at the <br />time. She stated that starting in 1997 or 1998, the rates were increased to make up for this <br />amount, so this has already been factored into the budget. <br /> <br />City Administrator Ulrich stated that, in a sense, the water utility is operating like a business. He <br />stated, that in his opinion, the City should factor in good will and public relations. He stated that <br />if the City recovered any money, perhaps it should be a discounted amount and businesses <br />should be given ample time to make their payments. He stated that he does not feel there should <br />be an unnecessary hardship placed on the businesses just because the City and Connexus Energy <br />made a mistake. <br /> <br />City Council Special Meeting /October 2, 2007 <br />Page 5 of 11 <br />