12-07-06 Council Special Minutes

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MINUTES CITY COUNCIL DECEMBER 7, 2006 VADNAIS The City Administrator reported Che results of recent meetings with the HEIGHTS City of Vadnais Heights relative to sewer billing issues. He presented SEWER detailed cost analysis sheets estimating Che amount of money that Che City BILLING of Vadnais Heights owes Little Canada for sewer charges for the County ISSUES Road D apartment complexes in Vadnais Heights which had been incorrectly billed by Met Council to Little Canada for several years. The Administrator indicated that he recently learned that Vadnais Heights has actual flow records, so Little Canada's estimates will be adjusted to reflecT these records. The Administrator indicated that Vadnais Heights has raised the issue that the Statute of Limitations would apply for both principal and interesC amounts due Little Canada. The City Administrator reported that Chere are exceptions Co this statute, however. The Administrator reported Chat Gerry Urban, City Administrator, Vadnais Heights has indicated that they knew these sewer flows were going into the Little Canada system; however, they thoughC Met Council was billing Vadnais Heights for the flows. It was not until May of 2005 that the Vadnais Heights Finance Director discovered the billing error. The City Administrator indicated that this acknowledgement by Gerry Urban that Vadnais Heights knew the sewer flows were going to the Little Canada system is inconsistent with Vadnais Heights' comp plan submittal. The Administrator reported Chat it appears Gerry Urban is willing to recommend that Vadnais Heights would be willing to pay Che principal amount due Little Canada plus six years interest given their position Chat the Statute of Limitations would apply. The AdminisCraCOr indicated that another meeting will be held with Vadnais HeighCS to discuss the issues furCher. In addition to resolving the amount of principal due to Little Canada, the issue of interest payments needs to be resolved as well. The Administrator anticipated that there would be an interest payment due for the previous six years, as well as some sort of agreed-upon interest factor for earlier years. The Administrator reported that he informed Gerry Urban that the Little Canada City Attorney would like to pursue a court action on Chis issue, if Vadnais Heights' believes its exposure is limited by Statute. The Administrator also noted that there is no factor in the cost analysis for inflow and infiltration (I & I). He indicated that he informed Vadnais Heights that Little Canada may also want these lines televised to determine if there is an I & I problem.