Trustees move bond sale forward

Flathead Valley Community College's board of trustees unanimously approved on Monday the sale of $9.9 million in bonds to expand and upgrade the Kalispell campus.

Voters approved the sale of $15.8 million in bonds for the expansion in December 2002.

The college intends to sell the remaining $5.9 million in bonds in 2006 to complete the project.

College President Jane Karas said that the cost of the delay caused by legal wrangling over the disputed mail-in election "could be in the area of $2 million." She said architects will have a firm figure on the impact of construction cost inflation next week.

According to Karas, the college may have to scale back the work anticipated or look for other avenues of making up the loss. The college had planned to build three new buildings, remodel others, add parking and upgrade technology.

The trustee approval to sell the bonds followed protests voiced during the public comment section of the meeting by three citizens. Bill Fratt, one of the participants in the first lawsuit over the December 2002 election, spoke first.

Fratt asked trustees how they could go forward with the sale after the board and county attorney "admitted wrongdoing." He was referring to an apology published as part of settlement of the first lawsuit.

"We have legal counsel that is guiding us through this process," Bob Nystuen, chairman of the board, said.

Nystuen said that the key point was that all of the lawsuits were dismissed with prejudice, which bars further litigation.

In the apology referred to by Fratt, the college acknowledged extending the election date several weeks and mailing an additional 15,000 ballots to voters mistakenly dropped by the county election office from the registered voter list.

Mail-in ballot election law specifies that schools must mail all the ballots at once and specify an election date in a plan filed with the Secretary of State's office. However, college officials consulted that office before taking those actions.

Fratt asked whether the public would have access to the bond package prepared by the college following the meeting. Karas said anyone in the public was entitled to look at the documents and offered to send Fratt copies.

Fratt also asked for copies of the minutes, which Karas said would be available on the college Web site.

"In my opinion, you are all liable for bond fraud," Fratt added.

Nystuen took personal exception to that remark, calling it inappropriate.

The next person to speak, Gary Shane, echoed Fratt's comments. Another protester, Fred Hammel, threatened another lawsuit and indicated taxes to pay back the bonds would take a financial toll on him.

"The government thinks money grows on trees," Hammel said.

With trustee approval secured, Karas said the package of proceeding goes to the bond counsel Dorsey & Whitney of Missoula, the attorney general's office and financial advisor D.A. Davidson.

Trustees will consider the bids for the $9.9 million in bonds at a special meeting scheduled for noon on Feb. 17 in the office of the chief financial officer at the college.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com