Contracts

I was fortunate enough to speak with Mr. Richard Liebert this morning. Mr. Liebert attended the Electric City Power meeting last evening. I also spoke with another individual who was present, and I was able to learn a bit more about what occurred than what appeared in the Tribune. What follows is a blend of their two accounts.

Mr. Liebert asked Coleen Balzarini whether we had an actual written contract with SME for the purchase of power, setting of rates, etc. Silence ensued, he asked again. Balzarini said yes, there is a Power Purchase Contract. He said that’s it? Nothing else? And she just smiled and nodded.

He pressed her again.

“Well, I hope we have one,” she quipped. Her tone, according to Mr. Liebert, was somewhat flippant, suggesting (to him, anyway) that of course we would not proceed this far without a contract.

“Hope springs eternal,” he replied.

I find this very interesting.

Why?

Because of this excerpt from the City Clerk, Peggy Bourne's, letter to me of January 29, 2007: “You will note that ECPI has not passed any resolutions or entered into any contracts.”

One of three things could be occurring here, and none is good. First, Ms. Bourne might have been misstating the existence or non-existence of an agreement. Bad: this is a public document that should have been produced. Second, Ms. Balzarini might have been telling the truth that there is a contract in place. Bad: this is a public document that should have been produced. Third, Ms. Balzarini might have been choosing her words carefully implying that there is an agreement in place, but not actually stating it. Bad: this is misleading.

Do we have contracts with SME or don't we?