Keller Fountain Park

A lawsuit contends that the Portland Water Bureau should not have paid for costs related to the city's decorative fountains, such as Keller Fountain in downtown.

(Xiaojie Ouyang/The Oregonian)

The latest battle in a years-long lawsuit over Portland's questionable water and sewer spending is targeting park fountains and relief efforts for Hurricane Katrina.

If Portland loses, city officials could be on the hook for an estimated $6 million in misspent money.

City leaders have been on the defensive since a 2011 lawsuit alleged that water and sewer money was misspent on tangential efforts. A judge in March 2014 established a legal standard - they must be "reasonably related" to providing water and sewer services - when he determined the City Council overstepped in two of four test cases totaling nearly $1.2 million.

Now a year later, attorney John DiLorenzo wants the same Multnomah County judge to use that analysis to decide if the city misspent ratepayer money for two other efforts.

"These are really good examples that will be kind of hard to counter," DiLorenzo said Thursday, a day after filing the latest round of court paperwork.

Terry Thatcher, a deputy city attorney, declined to comment. Commissioner Nick Fish, in charge of the Water Bureau and Bureau of Environmental Services, declined through an aide to comment, citing the lawsuit.

DiLorenzo contends that the city's general fund - and not the Water Bureau - should have paid for repair, operations, maintenance and improvements of about two dozen decorative fountains in city parks.

That was the case until 1988, when the City Council shifted the responsibility from Portland Parks & Recreation to the Water Bureau. And that's been the case since July 2013, when Mayor Charlie Hales moved the responsibility back to city parks.

City officials say they spent $2.8 million in water funds on decorative fountains from July 2006 to June 2012. The lawsuit estimates the 25-year total could be $5.6 million.

Portland explained

A four-year-old lawsuit is just one component of the city's utility struggles. For a breakdown of that checkered history, read our

"While the park fountains certainly use water as part of their decorative or interactive functions, there can be no serious contention that, on that basis alone, the fountains themselves are somehow related to the City's water services," DiLorenzo argued in a motion for partial summary judgment.

The lawsuit also targets the city's decision to send about 35 employees, plus equipment and supplies, to New Orleans in 2005 to help in the aftermath of Hurricane Katrina.

The state of Louisiana ultimately reimbursed about 80 percent of the Water Bureau's expenses. The lawsuit claims that the remaining $461,162 covered by the Water Bureau should be reimbursed from the general fund, which DiLorenzo argues is the proper account for such humanitarian efforts.

DiLorenzo said he hopes the judge's ruling will prevent officials from using water money for similar efforts, such as more ratepayer-funded trips or new decorative features when the city decommissions reservoirs at Mt. Tabor in coming years.

DiLorenzo said he has approached the city many times in hopes of settling.

"They're unwilling to even talk about settling the case," he said. "So I finally lost patience. We're going to start rolling these out now," he said of asking the judge to rule on more questionable expenditures identified in the 2011 lawsuit.

DiLorenzo said he already has selected the next project he'll bring to the judge - a city-owned park in Clackamas County, which was fixed up by Water Bureau employees because the park includes Portland's water pipeline connecting to the Bull Run watershed.

"Dodge Park's going to be our next round," DiLorenzo said.

DiLorenzo said he visited Dodge Park on Thursday and saw dozens of Water Bureau employees on hand for a picnic.

Jaymee Cuti, a spokeswoman for the Water Bureau, confirmed that about 50 employees attended the potluck, which is an annual event to recognize distinguished service. The employees were being paid, she said.

-- Brad Schmidt

503-294-7628

@cityhallwatch