Wednesday, December 31, 2008

Water Board does about face! Places lien on Evergreen!

Yesterday, in public at Eureka City Chambers, I asked the Humboldt Bay Municipal Water District Board to keep the water flowing at Evergreen and reconsider a lien against the plant until their next regularly scheduled meeting Jan. 15th. A motion was made and carried to do just that.

This morning I was made aware that the Water District did in fact place a lien against Evergreen! How can a public agency make a motion and vote unanimously in favor of the motion and then go counter to the decision? Not good public policy. I hope this does not hinder a potential sale.

I do think this water board is very well balanced and level headed in their decisions. I hope they were not given poor counsel concerning this abrupt turnaround. I feel the board should have had another special meeting to make this decision publicly.

The reason for the quick lien on Evergreen was the discovery through Bob Simpson that a first line lien against Evergreen has been placed by South Coast Lumber Co out of Brookings.

This is just another hill in this never ending roller coaster ride.

16 comments:

Mychal "Rambo" Evenson said...

Rich,
This is off topic on this post but since you and the Sub Standards web site is how i get my new from the county. (in that order too) I just had to say the craigslist hoax of a free dinner that then turned out to be happening after all because of some very good people shows there is still hope left in Humboldt and that hope will carry over to the mill. I believe and I pray for it for you all several times a day.

Anonymous said...

Can they do this without getting authorization from the Board of Directors at a public meeting? Yeah, I think they probably can.

Anonymous said...

It is not surprising. South Coast continued to deliver chips to the pulp mill without payment after everyone else was cut off, on the hope and promise by management that they would be paid. The unpaid water bill is nothing compared to what is owed South Coast, who has mills of their own taking downtime and employees taking leave without pay.

Not A Native said...

If true, it will make concluding a deal more complicated and add legal costs, but may not be a deal killer. It does put time pressure on the principals to concoct a business plan.

No matter the legal manuverings, creditors still have to decide whether to allow the mill to operate with potential to earn money to pay them, or to compel a bankruptcy and wait for liquidation money that won't add up to much.

Anonymous said...

It certainly makes the water district look like a bunch of hypocrites who publicly say one thing and then do something else, but then I don't blame them or South Coast as there is not much left at Evergreen to lien against and a long list of people who may jump in line in from of them. How many liens does it take before the potential buyers back out? How much are other lumber mills, vendors, employees etc. owed? If they all file to preserve their place in line, will their actions doom the mill and any hopes they have not only of recovering the monies owed, but also future business?

brian said...

Rich,
Don't worry, we can all become "peace woekers"......WTF

brian said...

oppps..make the "peace woRkers"

Fred said...

Like Steve Fleischer said in the earlier post, getting the mill running again (assuming that's possible, at all) is going to take an effort on many people's part. This lien isn't all that conducive to that.

That said, I can hardly blame anybody for placing a lien on the mill as it looks like the owners took whatever money the company had and ran, or are at least trying to.

samoasoftball said...

Fred: I can understand someone putting a lien on the plant, my argument is procedural in the fact that a public agency (Water Board) made a decision in a public forum to wait until Jan. 15th about taking action on Evergreen.

If they were contacted the day after their public vote individually and went against their original decision, this would be a violation of the Brown Act. If the Water District Counsel told them they were within their legal boundaries to make this off agenda change of plan, I think they are wrong. They could have called another special meeting to be hel on Jan. 2nd and done this in order.

You are right with your assumption that this is not condusive to a possible sale, but rather a hinderance.

Anonymous said...

"District Business Manager John Palmquist said the board's attorney was consulted, as were other members of the board, and that clearance was given to file the lien."

So the Water Board had a secret meeting in violation of the Brown Act, where they were "consulted" about filing this lien?

Shame on Kaitlin and the rest of these legal ignoramuses. I hope the voters recall them all right out of office.

Rose said...

How many liens are filed against Evergreen? What is the total figure?

samoasoftball said...

Rose: At the special water board meeting it was thought that their were none at that time. So Southcoast and the Water District are the only ones. California Redwood's lien was pulled so Evergreen could do some business.

2:27pm-I don't blame the board, I blame their counsel.

Fred said...

2:27 wrote, "Shame on Kaitlin and the rest of these legal ignoramuses.".

This obsession with Kaitlin is getting tiresome.

Anonymous said...

I wonder why there were dump trucks hauling logs off of the property down by the water? Dump trucks hauling logs on New Years day? Seems odd to me.

Anonymous said...

whose dump trucks

Anonymous said...

Be very careful how you treat people and always plan for how you want to proceed in your personnel life and business life, The pulp mill wll rise again
this is for sure but be positive nothing is forever there has to be a change and the new group will succeed, Be supportive never say never.