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<br /> Council Chambers, Eugene, Oregon
<br /> Julv 27, 1936
<br /> I The minutes of the adjourned meeting of the common council held at the hour of, ~.
<br /> ",' '00
<br /> " ,j 7~OO o'clock p. .~ July 27, 1936. Council was called to order by Mayor Large and ~ :(..0
<br /> all councilmen present except Simon. -.' ....
<br /> Mayor Large extended greetings to members of 'the Eugene Water Board and ex-
<br /> pressed his appreciation for. their attendance' at the meeting~ The Mayor pointed
<br /> out that Mr. C. A~ Horton, Accountant of the city records for the year 1935 re-
<br /> commended a deTinite settlement of the $57,,970.98 Electric Utility and $22,843.67
<br /> Water Utility Indebtedness to the city of Eugene. The Recorder being called upon
<br /> by the Mayor, read the following Resolution, to-wit:
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<br /> WHEREAS, the attention of the Common Council of the City of Eugene has
<br /> been directed to two items carried upon the books of the hugene Water
<br /> Board, one in the sum of' $57,.970.98 which it is claimed resulted from
<br /> the drawing of) warrant.s by the city in excess of money borrowed to
<br /> ., I start the City's utilitYJ and 6ne in the sum of $22,843.,67 which is an
<br /> appraised value in excess of that shown at the time the utility was
<br /> -' taken over, both of which items appear ~o be proper credits to be ,trans-
<br /> i-,: ferred to the general credit of the city and to be debited to the Water
<br /> Boardls account;
<br /> ,; Now, Therefore .\
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<br /> BE IT RESOLVED by tne Common Council of the City of bugene that the
<br /> matte~ be taken up with the Eugene Water Board and a suitable adjustment
<br /> made which shall be consonant with the facts as they appear.
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<br /> Councilman Lamb moved and Hendershott seconded that the resolution be adopted.
<br /> ... / At this ti e tpe Mayor called for a discussion on the subject. Mr. J. W. Mcarthur,
<br /> Superintendent of the Eugene Water Board, addressed the council stating that since
<br /> the m~tter had been officially acted upon by the common council that the Eugene
<br /> Water Board would take the matter up thoroughly and requested the Mayor to call
<br /> I, / upon Mr. Percy W. Brown, President of the Eugene Water Board, to state the Boardls
<br /> I views.. Having been called upon, Mr. Brown stated that he was not in a position to
<br /> I make any statements and asked that time be given to take the matter underconsidera-
<br /> t ion. He, however, expressed the willingness of the Board to cooperate with the
<br /> city of Eugene in every way possible to bring,about an adjustment. The following
<br /> , statemen~ was read by Mr. Brown:
<br /> "To the Honorable 1vIayor and Common Counc iI, July 27, 1936
<br /> City of Eugene, By P. W. Brown,
<br /> I Eugene, Uregon V'
<br /> Pres., E. ~. B.
<br /> I
<br /> The Water Board is not in a position to give you an answer immediately, but
<br /> will take the matter under consideration, and act as quickly as possible.
<br /> Now, while not being able to go into detail, it might be well for me to
<br /> II state something of how the Board feels about the matter. It has been the
<br /> present Board's belief that all the questions raised by you have been
<br /> settled acceptably and satisfactorily long ago, by p~eceeding Councils a~
<br /> I Water Boards, but if this has not been done the ~ater Board will certainly
<br /> . cooperate with the Council in working out an adjustment now.
<br /> I Naturally, the most logical time to settle a thing of this kind is at
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<br /> the time of its occurrence,.and the Board has heretofore had no reason
<br /> to think that any of these matters had not been so settled in due.time
<br /> and order. All concerned at that time were aware of all the facts and
<br /> details, but, now, after from 19 - 25 years' time has elapsed, it will
<br /> be difricult to recover all the facts and details, and to settle a mat-
<br /> ter like this as it was intended to be settled in the first place.
<br /> The questions now raised by the Council have their origin in the acts
<br /> .. of the City Council itself in the purchase of the water system in 1908.
<br /> and in building of the Walterville power plant during the years of
<br /> 1909 and 1910. This all occurred before the Water Board was created.
<br /> Therefore, except for the reference to two sums as the City's "equityll,
<br /> I' in the report of the Public Service Commission of Oregon, in 1917, and
<br /> a few references in the minutes of the Water Board, the records must
<br /> all be found in the proceedings of the City Council itself. These pro-
<br /> ceedings, of course, the Board has never had any reason to examine. We
<br /> assume that the records of the City will be open to the Boardls represen-
<br /> tatives in search for facts and figures concerning the questions raised
<br /> by the Council. The City Council bought the water system, and built the
<br /> Walterville power plant as a part of the water system. Power was needed
<br /> to pump water.
<br /> As provided by Charter, these properties were all turned over, after
<br /> .. their completion, to the V;'ater Board for management.. The Board had nothing
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