Saundra McDavid

The path to purchase Eagle Water Company took another turn last night, as the City Council voted to postpone the discussions of the revenue bond until April 22^nd. Citizens waited for two hours last night, through an hour long hearing on a helicopter ordinance that should have never entered the process (see below), and another lengthy executive session held in the middle of the council meeting, before the council made the announcement that the discussion on Ordinance 622 would be postponed. I request yet again that the City of Eagle hold its executive sessions before the City Council meeting! Why make a room full of people who are trying to participate in our local government wait while you discuss “secret” topics in another room?

The reasons given for the postponement were that the questions concerning the feasibility and appropriateness of the purchase were valid questions which deserved an answer, and that the City was in the process of working on those responses, but needed more time. At least it appears from the comments from Councilman Huffaker that the City is concerned that sufficient information is distributed to the public in order for everyone to make an informed decision.

However something else is happening behind the scenes which may bring the entire purchase to a grinding halt. Comments were made on the record by Councilmen Huffaker and Semanko along the lines of “continued negotiations with Eagle Water Company,” “contract issues of timing and extensions,” “we want to give the people a chance to vote, but not ruin the chance to purchase the company,” and “the ball is in Eagle Water Company’s court. If we have an election it is up to them.”

What do these statements mean? A quick review of the contract indicates that March 31^, 2008 was the day Eagle was to have “obtained the required authorization to incur indebtedness and the Financing on terms acceptable to Buyer in its sole discretion.” Oops! Those pesky citizens who spoke out against the vastly unfair and questionably constitutional assessments put a halt to that process.

Another condition which was to have been resolved by March 31^st was: “there shall not be any injunction, judgment, order, decree, ruling or charge in effect preventing consummation of any of the transactions contemplated by this Agreement.” Eagle River’s lawsuit may have thrown the proverbial wrench in the gears as to this clause.

So the question becomes – what agreements have been drawn up between Eagle Water Company and the City of Eagle, that have not been disclosed? Has Eagle Water Company waived the two conditions above? Have extensions been granted? At this point, is there even a valid contract?

If we pass that hurdle, the next one is timing. Due to notice requirements, if the citizens of Eagle are to vote on a revenue bond during the May 27^th election, the authorization to hold the revenue bond election must occur no later than April 22^nd. We have one week left to enact the ordinance, or Eagle will need to wait until November. Will Eagle Water Company agree to that extension? Can due diligence be completed prior to May 27^th? The voters will surely vote “no” if it has not, which doesn’t make a great argument for a rushed election. A lot of questions to address in the next week.

Want More? Subscribe via e-mail:

Or via RSS
Subscribe in a reader

Post Footer automatically generated by Add Post Footer Plugin for wordpress.