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Council considers ending long-standing school water discount after 2020 agreement
Summary
Staff told council the district has received a flat discount under a 2020 water-rate agreement and has not updated service contacts since 1997; staff will compile six years of discount history and approach the superintendent to renegotiate or terminate the arrangement.
Staff reviewed a water-rate agreement originally documented in 2020 that gives a local school district a flat discount on water and sewer charges and said the school’s billing arrangement cannot be automated in the city billing software.
The staff member said Crystal in utility billing must manually adjust dozens of school accounts each month because the system cannot apply the school’s requested discount method. “They haven’t filled out a new service, like, update application since 1997,” the staff member said, describing inconsistent contact information and manual processes. Staff proposed preparing a six-year recap of discounts and contacting the current superintendent to discuss what would be required if the agreement were modified or terminated. The staff member also noted the easement tied to the agreement has since been recorded.
Council members said any change could be a shock to the district but emphasized fiscal responsibility. One council member suggested involving the city attorney for negotiations if termination were pursued. Staff committed to asking utility billing to produce a summary of amounts waived since 2020 and to return with options for the council to consider.
