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Mayor reads attorney statement: city has only "inquired" about selling Sonoma Verde water pipes; attorney says sale is legally possible
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Summary
Mayor Brian McNeal read a prepared statement quoting outside counsel that, because the Sonoma Verde water improvements were privately funded (non‑reimbursable developer contributions) rather than paid through PID bonds or assessments, the city is not prohibited from selling the pipes; he emphasized the city has only inquired and no decision has been made.
At the meeting the mayor read a prepared on‑the‑record statement and a quote from outside counsel addressing recent public concerns about the water pipes in the Sonoma Verde development.
“WE HAVE ONLY INQUIRED,” Mayor Brian McNeal said on the record, emphasizing that internal conversations and advice from the city attorney and outside advisors were ongoing. He said the city had discussed the matter with P3, Hilltop Securities and attorney Chris Settle and asked Settle to provide a written statement to be read aloud so there would be no uncertainty about the legal position.
Mayor McNeal read the statement attributed to attorney Chris Settle: “With respect to the PID, my understanding is that all of the water system improvements were financed with non‑reimbursable developer contribution and not from PID bonds or PID assessments. Because the developer paid for the water system improvements out of his own pocket without reimbursement from the PID, no PID assessments were levied to pay for those improvements. Because the water system improvements were not funded from PID assessments or PID bonds from a PID perspective, the city is not prohibited from selling it.”
The mayor added that selling the assets would also shift maintenance, upkeep and eventual replacement responsibilities away from the city and taxpayers, and said one motivation for the inquiry was to protect Sonoma Verde residents from future councils using the infrastructure as leverage in negotiations. He closed by inviting residents to email the mayor or council with questions.
What the council did not do: no motion was made and no vote occurred on this topic. The mayor characterized the session as an explanation of the city’s current position and legal advice, not a directive or final decision.
Next steps: the mayor said staff may continue legal and financial review and invited constituent questions. Any formal action (sale, public hearing, or ordinance) would require future council consideration and appropriate public notice.
