02 City Council (8/26/03) - Laserfiche WebLink

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Regular City Council Meeting August 26 , 2003 Page 5 Mayor Fendley told the City Council that they still had time and if they had anything they would like to make any recommended changes on that they would like staff to look at tonight, they could give that to them so they could start working on amending the numbers. Councilman Plata said that Mr. Anderson has budgeted $25,000.00 for consultants for doing an annual Water and Sewer Study, but he did not remember anyone saying they wanted to do that annually. Mr. Anderson advised that it was discussed and staff recommended that it be done every year. Mr. Anderson said as they discussed last night, the direction that they are going on the Campbell Soup negotiations is essentially wiping out the last rate increase that was approved at the direction that the city is heading. Mr. Anderson said it needs to be looked at again next year and he felt the $25,000.00 would cover the cost. City Attorney Schenk advised that in the negotiations with Campbell Soup, they have requested that the contract provide the city to have some type audit and study every year and incorporate that into the rate structure because the city will be doing annual adjustments now, rather than the way the city was doing before, which was every three years. He said they were going to have to have some basis to doing that. The City Attorney said the way Campbell Soup has asked for this contract to be done, it is going to be based on peaking factors that they are going to collect. Based on their performance during that year the city will have to do a minimum amount of calculations to determine what the peaking factor should be for the following year. Mayor Fendley wanted to know if rate studies are required by law. Mr. Anderson said they were not required, but what you get into is having to prove it first. City Manager Malone advised that a rate study is part of the cost of furnishing water.