More tidbits from the Kroll report. This is just classic. So Dennis Kahlie had a big appearance at a closed session meeting in early 2002 in front of the City Council. This is where he tells them that the city’s sewer rates violated the Clean Water Act and that the city might have to give back hundreds of millions in loans and grants – a big deal, especially when you combine it with the fact that the city hadn’t disclosed this little doozy to bond buyers.

Kahlie, apparently, was quite adamant that the city fix the problem, as were the city’s attorneys.

So Kroll asks all the council members about it (this is where Kroll is valuable. We knew all this stuff, but we haven’t gotten them on the spot this good).

You can just see them all shrug their shoulders in response to the question.

And then Madaffer:

Even when shown his email to Dennis Kahlie commending Mr. Kahlie for “sticking to his position” and asserting that they “can’t say we weren’t given a fair warning,” Councilmember Madaffer could not recall being told that the City was required to change its sewer rate structure, stating that he recalled his resistance was to a sewer rate increase.


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