Saturday, April 16, 2011

More Comments on County Trash Program Liability

For the first time since three trash haulers (American Eagle, Meridian, and Waste Management) won their lawsuit against St. Louis County for its failure to provide the required “two-year notice” before implementing its controversial trash districting program, the county has reluctantly admitted that it may be on the hook to pay out $23 million to the haulers. The trial date for the hearing to determine damages is set for May 31 in the St. Louis County Circuit Court of Judge Barbara Wallace.

Reputable sources close to the court indicate that the county has exhausted all of its delay tactics and that the judge has denied the county’s most recent request for yet another continuance, thus indicating, “Let’s get the show on the road,” borrowing the title of a song by musician/songwriter, Michael Stanley.

Based on his responsibility as the county’s financial advisor with respect to the issuance of bonds, Jeff White of Columbia Capital Management LLC, has advised St. Louis County “of the need to disclose on the Preliminary and Official Statement the potential that a $20+ million judgment may be entered against St. Louis County, Missouri, in the case of American Eagle Waste Industries, LLC et al. v. St. Louis County, as a result of the trial judge having entered summary judgment on the issue of liability and having overruled the defenses proposed to be offered by St. Louis County, for the reason that such a judgment could have an impact on the ability of St. Louis County to conduct operations.”

White further advises the county that ”the actual entry of a judgment of $20+ million against St. Louis County would likely have a negative impact on St. Louis County’s bonding capacity as to future special obligation bond issuances.” In other words, Mr. White has advised his client, St. Louis County, that it has immersed itself in a pretty deep substance, that the handwriting is on the wall, and be prepared to write three very large checks. But, it will be the county taxpayers who will end up paying for St. Louis County’s buffoonery.

Until now, county counselor, Patricia Redington, has attempted to downplay that the county may have to pay out any damages and she has also proclaimed that the county has been successful in all of the lawsuits, which is a pipedream on her part. If that were the case, the county would not be in the quandary that it is in today. Some people have likened Redington’s ludicrous statements to her “being on a bad acid trip.”

1 comment:

  1. Anonymous5:56 PM

    So, at what point, does Charlie Dooley and the St. Louis County Council finally apologize to the taxpayers in St. Louis County.

    This "Trash Tragedy" has effected all of St. Louis County, both taxpayer and business.

    I sure wish public flogging was still allowed.