Excerpt from Part V of the December 3, 2008 Closed-door City Commission Meeting >>>>>>>>>>>>>>>>>>

VICE-MAYOR GOLDEN: Some statute was shown to me, I can't remember what it was, but municipalities can't be sued -- can't have something to be sued for over $100 thousand dollars?

MR. KARNS: The Sovereign Immunity Statute?

VICE-MAYOR GOLDEN: Yeah.

MR. KARNS: Yeah, it really doesn't apply on a contractural basis.

VICE-MAYOR GOLDEN: The other question is is the -- you mentioned before that if we terminate we can go ahead and we use that $5 million?

MR. JOSLYN: Well, I think you --

VICE-MAYOR GOLDEN: If we terminate -- or we have to wait until everything is settled? 

MR. JOSLYN: No. No. I think if you terminate you proceed as quick you can to do what you need to do. Until the Court tells you to stop, I think you guys proceed.

MAYOR CLEMENS: One of the things we need to do is we need to re-negotiate with the County because the County amendment calls for --

MR. KARNS: Completion.

MAYOR CLEMENS: -- our money and Greater Bay's money to be spent first before that $5 million dollars. So that's going to require a re-negotiation with the County to make sure that we stay in good relations with those Commissioners up there because they are not happy with how long this is taking.

MR. KARNS: And my guess is they're going to want to see concrete plans --

MS. LOWE: Plans for using that money.

MAYOR CLEMENS: Absolutely. Yeah. So, which means we're going to have to move forward if we're going to do something differently. I know we can't get into too much detail about that, but I think it does relate to whether or not we exit the Greater Bay contract, that we have -- you know, move forward on other plans. I don't want to belabor this, but what we'll probably have to do would be a revenue bond in the absence of that, is my guess. There might be some other financing instruments that we can look at, but if we decide to do a revenue bond we're going to have to show the ability to gain revenue up there at the beach, meaning we're probably going to have to look at those rev prices.

MS. JENNINGS: Definitely.