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HomeMy WebLinkAbout[02] Public Comments - CSB LetterCollege of Sainf Benedict/Sisters of the Order of Saint Benedict 6/4/09 Currently there are 2 amounts in dispute--capital for the St. Cloud expansion and billing errors on invoices received from the city for annual operating expenses. First to resolve the billing errors, the sisters and the College requested a meeting with the city administrator and the city's auditor to review the billing issues and determine what credits are due. However, we were informed Tuesday through our attorneys that the city has declined to have their auditors present at this meeting. I would like to explain to the council why it is important to us to have this meeting with the city and auditors. The reporting that we received from the city keeps changing. We are looking for reassurance that the schedules our billings are based upon match the audited financial statements of the city. Last year when we received backup documentation for 3 years of invoices from the City, we noticed that the amount we were billed and had paid did not match the backup and was wrong in an amount greater than $145,000. The city acknowledged the errors and credited our 2007 invoice by nearly $84,000 for errors made in previous years. The College and Monastery still believe there is over $60,000 in errors and we reduced the 2008 payment by that amount. Upon meeting with the city 2 weeks ago, we were told the documentation we were provided by the city last year was not correct for several reasons which included: the headings on the depreciation schedules do not match the billing years; incorrect depreciation schedules were included; the depreciation schedule was in error; the depreciation schedules contain wrong formulas. The city forwarded revised schedules to the college last week. These schedules showed multiple lines crossed out and new numbers inserted. The city believes they owe the college additional credits in the amount just over $14,000 based upon the revised schedules. At this point, we are not sure what is right and what is wrong. We have requested a meeting with the city administrator and the city's auditor to review these schedules and determine what we should have been charged for those years so that we can either pay what we owe or be properly credited for what we have overpaid. We believe that having independent and fresh eyes to review this matter will be extremely helpful To resolve this issue we would like to ask the council to reconsider the decision and allow the city's auditors to be present to review the schedules and determine the correct amount we should have been invoiced for. This is a lot of money. If it was a few thousand dollars, this would not be an issue but this is our students' and families' money and we would not be good stewards of their funds if we are not diligent in making sure the amounts we pay are correct. The second issue involves renegotiation of the contract-which means addressing how to equitably measure our sewer usage and also the issue of paying capital versus depreciation. On this issue, we are asking the council to consider appointing a task force consisting of members of the council to meet with the college and sisters to complete negotiations on a new agreement. Lastly, we are willing to deposit the amounts in dispute in an escrow account while we are in discussions to resolve these issues. As we've indicated before, we are willing to pay our bjills but the amount must be correct and must be based on equitable and accurate methods of determining our share of the burden. I know this was lengthy but it is a complex issue. I assure you that the college and the sisters want to resolve these issues as soon as possible as I am sure you do also. Thank you for your consideration of our requests.