07 City Council (6/09/03) - Laserfiche WebLink

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Regular City Council Meeting June 9,2003 Page 21 regard to water for the mutual benefit of the City and Campbell Soup. City Attorney Schenk said he interpreted this council's desire that the city do something with Campbell Soup that would help them maintain a competitive position within the company to seek new product lines and also encourage the company, in the sense of their production, to use more water in the production process. He said that those were the two goals that they included in their discussion with the company. These goals were discussed with Mr. Stowe and he has used these goals to generate this new proposal. The City Attorney advised that what they are looking at is a projected impact of that methodology in a new contract, assuming that the volumetric use of the company has not increased. The company has been responsive to the city in saying that they believe that the proposal that the city has placed on the table will enable them to compete favorably within the company for new product lines. However, the impact to the city is that if the volumetric rate of taking water does not increase there will be a shortfall of $144,000.00 over what the city would currently receive under the current contract. That shortfall would have to be made up in some way in the over all rate structure, either by passing that rate increase along to other rate payers, or in other ways. This proposal would include an annual adjustment. It will be looked at every year and both parties are in favor of that arrangement. The City Attorney said his purpose of presenting this to Council was to see if this is the correct direction that Council wanted the city staff to take. A motion was made by Councilwoman Neeley, seconded by Councilman Weekly, for city staff to continue with the negotiation with Campbell Soup. The motion carried 7 ayes, 0 nays. There being no further business, the meeting was adjourned. CURTIS FENDLEY, MAYOR ATTEST: