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Capital Expenses on Bond Projects
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Capital Expenses on Bond Projects
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3/24/2009 3:13:48 PM
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Fund 324 Bond
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<br />SMITH Tammy D <br />From:CARLSON Becky A <br />Sent:Tuesday, March 24, 2009 2:42 PM <br />To:SMITH Tammy D; PETERSON Tish A <br />Cc:RISDAL Lacey L <br />Subject:FW: View & Parking Lot Easement/Access Easement and Defense & Indemnity Agreement <br />Tammy, I'd like us to keep copies of this sort of documentation on the allowed uses of bond <br />proceeds for future reference. Thanks. ~becky <br /> <br />-----Original Message----- <br />From: CUTSOGEORGE Sue L <br />Sent: Tuesday, March 24, 2009 12:34 PM <br />To: CARLSON Becky A <br />Subject: FW: View & Parking Lot Easement/Access Easement and Defense & Indemnity Agreement <br /> <br />FYI, too. Not sure if this is the kinda stuff you want to be kept in the loop on. <br /> <br />Sue <br /> <br />-----Original Message----- <br />From: CUTSOGEORGE Sue L <br />Sent: Tuesday, March 24, 2009 12:33 PM <br />To: ROYER Russ C; MEDLIN Johnny R; BJORKLUND Neil H <br />Cc: FOX Meredith K; PATRICK Tim W; WILLIAMS Lloyd L <br />Subject: RE: View & Parking Lot Easement/Access Easement and Defense & Indemnity Agreement <br /> <br />I have run the agreement for the easement/parking lot by Harvey Rogers, our bond counsel, for <br />his opinion on how well this meets the test of the constitution, statute and bond measure <br />compliance. He said that the easement as it is written in the draft agreement that Russ sent <br />would likely qualify as a capital expenditure under the constitution and state statutes. As <br />Harvey mentioned, there is no case law on this topic, so ultimately it would be up to the <br />courts to decide, but he believes there is an argument to be made to support this form of <br />agreement as a capital expenditure. This satisfies my main concern. <br /> <br />As we also discussed previously, the project is in a gray area with respect to the ballot <br />measure language. In order to qualify for funding from bond proceeds, the argument under the <br />ballot would have to be that the easement/parking lot will either be "land for parks and open <br />space" or a "park facility." If someone were to successfully challenge the City on this, the <br />remedy is that we would have to repay the bond fund from some other source for the money used <br />for projects that wind up not qualifying. With that background, you need to decide how to <br />proceed. <br /> <br />Thanks for keeping me in the loop. Let me know if you have any more questions on this. <br /> <br />Sue (x5589) <br /> <br />-----Original Message----- <br />From: ROYER Russ C <br />Sent: Tuesday, March 17, 2009 10:10 AM <br />To: MEDLIN Johnny R; BJORKLUND Neil H <br />Cc: FOX Meredith K; PATRICK Tim W; WILLIAMS Lloyd L; CUTSOGEORGE Sue L <br />Subject: RE: View & Parking Lot Easement/Access Easement and Defense & Indemnity Agreement <br /> <br />1 <br /> <br />
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