Minutes - 2002/12/30 - Laserfiche WebLink

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Mounds View City Council December 30, 2002 Regular Meeting Page 12 there was a limit on costs for 1996 of $4,000 and invoices received and paid totaled $8,770. He further indicated that this contract established an hourly rate of $35.00 and charges paid by the City included educational and mileage expenses not outlined in the contract. Mr. Wilson indicated the fire protection contract has had 8 versus 9 installments but that is consistent with past practice. The second item is that in establishing the City's estimated share for calls the formula is to use the calls for the three previous years. In reviewing the formula for 2001 2000 data was not used per the contract. A reason maybe that the data was not yet available but that is inconsistent with the contract. The third item is the assessed values in the formula, the numbers for 2000 were not used but should have been per the contract. Another observation is that there was an invoice for $8,553 for a capital budget expenditure that was not addressed in any contract they reviewed. Mr. Wilson indicated the Creative Kids contract was reviewed and the lease commenced in August of 2001 but there were no payments until September of 2001. The second item is that the initial payment for September was $5,288 rather than the $5,244 specified in the contract. The third item is that Section 2.2 of the contract identifies a penalty and interest component for late payments not received with 10 days of the due date and, on more than one occasion, the payments were made after the established due date with no penalty imposed. Mayor Sonterre asked Finance Director Hansen if there should be suggested changes to the past • practices and what the plan to move forward would be. Finance Director Hansen indicated that several of the contracts have expired and are no longer an issue. He then indicated that the fire services contract had been discussed and Council had directed Staff to pay the Fire Department as billed. He further commented that he would contact Creative Kids to inform them that late fees will apply for payments received more than 10 days late. Mayor Sonterre asked whether the $8,553 capital budget expenditure was an approved budget expenditure. Finance Director Hansen indicated he would need to review records and report back. Mayor Sonterre suggested having something in the documentation to identify this type of expenditure to save time reviewing the future. Council Member Thomas indicated she would like to get clarification on what should be done with regard to educational and mileage charges. Finance Director Hansen indicated those were on the housing inspection and building inspection contracts and those are the contracts that ended. • Council Member Stigney noted the report was dated June 27, 2002 and asked why Council is hearing about it in December.