Anticipated litigation

Happy to see some new faces at last night's special meeting on the 5-year CIP. Trying to stay in my 3 minute time slot, I delivered a quick thank you for the release of the preliminary records that are the subject of my lawsuit. Also gave the Council (and Planning Commission since it was a Joint Session) the happy news: No need to worry about litigation if they decided not to build a new 2MG tank. I cautioned them, of course, that they should check with their attorney to make certain. Seems a stretch that someone would sue because the city decided to spend $2million to use theVancil reservoir, instead of $4million to build another down the street, but there were some litigation concerns expressed.

Back at the January 12th Special meeting we heard the sobering news. It came toward the end of the meeting, after the public comments, just before comments from Council members, as I remember. The news that because of wording in the bond papers the City risked a lawsuit if they dared to do anything besides build a new 2MG tank .

I thought it odd at the time, usually such news is delivered in Closed Session. But no, the news came at the well attended Jan 12th Special meeting in the River Lodge. I think I remember some caveat, that because the City doesn't often do the bonding thing (borrow money) there could be some unremembered protection. Well, the good news is it looks like a case of faulty memory, that the City Council has the ability to decide the best way to spend the bond money. That is as long as it is specified in a Certificate of the City (someone must know what that is). I've posted some of the bond wording and a link to the whole 144 pages on FortunaCitizen.

I may need help, though. The Cover contains this dire warning:

Official Statement is submitted in connection with the sale of the 2006 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

I hope an acceptable purpose is informing those who are going to pay the interest and redemption (principal) payments.

p.s. a bit of city financing info from the Jan 9, '09 agenda packet, pages 35-37: