Tuesday, September 13, 2005

Due Diligence

Private companies tend to have the smartest attorneys. An easy answer to why that is; private companies are able to pay attorneys a lot more money than is usually paid in the public sector for more and smarter legal advice. The private attorneys who drew up the contract for PAAG knew exactly what they were doing when they put the phrase “due diligence” in the contract (I haven’t seen the contract but I’ll bet the farm “due diligence” is in the contract.) PAAG attorneys then have the ability to widely interpret the meaning of this phrase and will hang us taxpayers with the $1,000,000.00 plus 9% and 6% interest on this so called “loan” on the vague legal point that the city failed to perform to the terms of the contract.

Gary Sandburg is very much aware of how the wording of the rejection letter to IA will affect the payback to PAAG. Randy Ray, City Attorney, is correct in stating the letter should just say “thanks, we spent a great deal of time and money studying if we wished to make the buyout offer, we also asked for advise from the voters who soundly rejected the idea by referendum, the City council voted 6-5 not to buy your company and therefore, this City Council is advising you (IA) by document, that we are not going to further pursue the buyout at this time”. Attorney Ray wisely wants to leave the term “DUE DILIGENCE” out of the wording. He is smart. Now if he can only hold his ground.

Most people who are following this parody, know why Gary has taken the position he has. If you haven’t figured it out yet keep listening if you have two or three hours every Tuesday evening. People know Grayeb, a former administrator at Dist 150 and who gets a lot of press on and off the council floor, has a lot of suspicions about “furriners” owning our water. Of course, these “furriners” would have to defeat our country in war first, since the U.S. Government owns our water, so his suspicions are moot. Grayeb, by the way, was quoted by the JS on 1/9/97 while a teacher at District 150 saying that “The United Sates has never been an imperialistic country. We have never sought colonies or conquest for this country. Never.” Still wonder why our kids are so bad in past history?? Then there is Clyde just being Clyde.

Anyway, we will find out the wording of the letter that eventually will be sent to IA. Hope the City Legal counsel gets his way.

I know I’m never to say “I told you so” because it makes me look like a smart aleck. Well, heck, I’ve been called a lot worse so here goes “I told you so!!”

Keep tuned.

3 comments:

Gary Sandberg said...

Murlu,
Do you watch the same meeting I am present in??????? IT was Staff, that is Randy Oliver and Randy Ray that put in the council communication "AFTER DUE DILIGENCE". It was me, Gary Sandberg with my "agenda" that questioned why it was in there and wanted it removed if only for the fellow councilmembers who are sooo proud that they voted against getting the information and knowledge that would come from the due diligence exercise and they can count as high as four times that they voted for the continuation of ignorance.
So now that you "know it all" but you were 180 degrees out of wack in who wanted the "AFTER DUE DILIGENCE" included (AGAIN IT WAS STAFF.......... NOT ME, NOT BARBARA, NOT CLYDE) come up with your next conspiracy concept. I am sure it will make the same sense as your last one.
And if you don't believe me, get on the City Website and read the COMMUNICATION FROM STAFF THAT INCLUDED THE "AFTER DUE DILIGENCE"

Listen better Murlu, because believe it or not I have no adgenda other than to do what was/is best for Peoria and Central Illinois. I am not blinded by vicsual hatred of certain individuals. The issue was the soundness of the business investment to re-purchase the most basic of natural resources excepting air and put that natural resource in the public's hands, not private ownership. And Murlu, I am not even rich nor a wanna be rich.

PS. Murlu,In as much as your attention to detail continually substitutes an "u" for an "e" in my name, I have decided that "turn-a-bout" is fair play. But that attention to detail is indicative more than the spelling of my name.

Merle Widmer said...

Gary,

No excuse for misspelling your name. I evidently started in error in 1998 with an article (a copy which I'm mailing you. My excuse is "I had a secretry for 38 years of my life and now I am totally reponsible for my errors." Jim Baldwin who does have a secretary writes to Patrick Uhrich our County Administrator and calls him Mr. Ulrich. Anyway, sorry.

As to the the council meeting where you say I misquoted you, you said "you could drive by something....at 85 miles an hour and call it due diligence."

You wanted the term "due diligence" removed because you didn't believe due diligence was done by the Council.

Barrons Law Dictionary describes "due diligence" as thus: That attention to the matter at hand which is required by the circumstances, the rendering of which prevents liability for negligence. This measure is a relative one by considering the facts of each particular case.

The attorneys are going to have fun deciphering this and at the taxpayers expense. I suggest that over $2 million has been spent overall on this project and yet PAAG will PROBABLY claim "due diligence" wasn't done to satisfy them. At least five of the council APPEAR to agree. The bulk of the voting public agrees with the other six. Count me and most of my constituents as believing the matter should have been dropped when the $220 million appraisal was made public and when Mr. Oliver said rates would go UP at least 3% each year!!

I'll continue to watch proceeding on TV Tuesday as a concerned citizen of the City of Peoria, one of many who the whole council is suspossed to represent. What I blog I will try to get correct.

Merle Widmer said...

Gary,

I could say I deliberately misspelled my administrators last name but I won't. Sorry Patrick Urich!!

I believe Carl Sandburg, the great poet and anthologist spelled his name with a u. I probably got confused years ago.