Minutes - Council - 10/02/2007 - Special

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Director Olson stated that, basically, this is already what the rates are because they are based on what it costs to run the system. Councilmember Dehen stated that he feels the businesses understood in 2003 that they were being incorrectly billed. Finance Officer Lund stated that she agrees that they understood it, but were not happy about it. Mayor Gamec stated that the City received a lot of feedback in the form of phone calls and letters to the City at that time. Councilmember Dehen asked about giving the residents a break on their water bills too, if we give the businesses a break. Councilmember Jeffrey stated that he is not opposed to billing one- third or going to Connexus Energy and asking for money, but he feels the bigger question is whether the City wants to take the utility billing in house. He stated that if the City does want this, he feels the City needs to take a firm step in that direction and make part of the settlement that Connexus Energy will be cooperative in the transition process. Mayor Gamec asked why Councilmember Jeffrey felt Connexus Energy would do that. Councilmember Jeffrey stated that if Connexus Energy didn't do this, the City would sue them for $684,450.64. He stated that the City.should be up front with Connexus Energy that the City is going in house with the billing and they should agree to work with us to make this a reality. Councilmember Dehen asked if the City could get the database information right now to get the process moving. Councilmember Strommen stated that it is our information, so Connexus Energy will have to share it. Councilmember Look stated that he feels Connexus Energy should pony up 1/3 of the under billed amount. Councilmember Dehen stated that the problem he sees in that approach is that if you strike an agreement with one party, in this case, Connexus Energy, that does not mean that the other party, the businesses, are going to cooperate also. Mayor Gamec reviewed the motion on the table. City Attorney Goodrich stated that Connexus Energy has a legal obligation included in the contract to share the necessary records with the City. Motion failed. Voting Yes: Mayor Gamec and Councilmembers Strommen and Olson. Voting No: Councilmembers Dehen, Jeffrey and Look. Absent: Councilmember Elvig. Motion by Councilmember Dehen, seconded by Councilmember Look, to send out bills to businesses for the full amount owed, to start the breach of contract proceedings against Connexus Energy Energy, but give them an indefinite amount of time to answer our complaint and not officially file to give them the opportunity to come to the table and talk with the City. Motion failed. Voting Yes: Councilmembers Dehen, Look and Jeffrey. Voting No: Mayor Gamec and Councilmembers Olson and Strommen. Absent: Councilmember Elvig. City Attorney Goodrich suggested tabling this case until the full City Council is present so there would not be a tie vote. Finance Officer Lund reiterated that she needs direction from the City Council on whether the Statute of Limitations begins when the letter was sent to businesses or today's date. Assistant City Administrator Nelson stated that this would be a legal opinion and not something the City Council could answer. Motion by Councilmember Look, seconded by Councilmember Dehen, to begin action against Connexus Energy for the under billed accounts at the full amount of $684,450.64. City Council Special Meeting /October 2, 2007 Page 9 of 11