Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the RS Fiber topic
No spam. Unsubscribe anytime.
Council hears update on RS Fiber, considers special joint-powers meeting and bankruptcy counsel
Summary
City officials reported that RS Fiber is pursuing a transaction and that member cities are exploring hiring a bankruptcy-specialized attorney to assess valuations, outstanding debt and the cities’ exposure; staff said financial documents have been requested and a special Joint Powers meeting may be called to consider retention of counsel.
Council members devoted a lengthy portion of the meeting to an update on RS Fiber and the Joint Powers Board’s recent discussions about the company’s financial condition and possible bankruptcy-related options. A city representative said all 10 member cities attended the Joint Powers meeting and that participants were not in a position to approve any transaction without more financial information and legal advice.
Council members and staff said Shannon Sweeney submitted a written request for RS Fiber’s financial documents, and that the Joint Powers Board intends to press the cooperative for details on assets, liabilities and valuation. The council was told the chair of RS Fiber indicated willingness to share financial information but would need board authorization to do so.
Participants discussed retaining a bankruptcy-specialized attorney to advise the Joint Powers Board. Meeting remarks identified Tom Miller as a lawyer with experience in loan workouts, bankruptcy proceedings and forensic work; those advising the board said they considered him a fit to evaluate potential restructuring or other remedies. Staff indicated the next step would likely be calling a special Joint Powers meeting within the next week or two to present the proposed attorney and seek formal approval to retain counsel.
Council members stressed the importance of timely disclosure. One council participant summarized the risk: cities, as substantial creditors, need enough information to evaluate exposure and to determine whether additional city contributions would be required to fund any legal or restructuring work. The council discussed identifying law firms experienced in bankruptcy and co-op structures and deciding how to split the cost of any retained counsel across member cities.
No formal municipal action on RS Fiber was taken at this meeting; staff said they will follow up with the Joint Powers Board and report back once the board responds to the document request and after any special meeting is scheduled.
