Since the bug report forum is locked I will report this here.
In CityArea.lua there is this function:
return p.x > 0 and p.y > 0 and p.x < self.landSize and p.x < self.landSize
which as you can see is checking p.x < self.landSize twice. I believe the second one ought to be p.y < self.landSize else the function will return true for all points whose x coordinate is between 0 and the landSize regardless of y coordinate. This is causing the function to mistakenly identify as valid many points which actually lie outside the city area.