08/26/1968 Meeting - Laserfiche WebLink

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~ ";343 . 8/26/68 . In answer to questioning from Councilman McDonald with regard to payment to Lane County for restaurant inspection, the City Manager explained that, because the City does not have the staff, the County Health Department assumes responsibility for inspection for which they are reimbursed $1,800.00 an- nually from restaurant license fees collected by the City. Mr. Anderson moved seconded by Mr. Lassen that the bills as presented and read be allowed and proper City officials authorized to draw the necessary warrants. Rollcall vote. All councilmen present voting aye, motion carried. 1 Liquor License Application -Class B Dispensers Villa Roma Restaurant, 440 Coburg Road (Greater privilege) - Gustaf F. Myss and Gerrit Kuiper was submitted as approved by the Police Department. Mr. Anderson moved seconded by Mr. Lassen to recommend approval of the application. Motion carried. 2 Sale of Sewer Bonds - A memo was presented from the Finance Department recommending sale of . $7.7 million sewer bonds remaining unsold which were authorized in 1962. The City's bond- ing attorney has given the opinion that if the l~% tax limitation measure is approved the City would not have authority to levy a tax to payoff the bonds which had not been sold and delivered to the buyer before the November 5 election. The City Manager recommended proceeding immediately to sell the remaining $7.7 million bonds for sewer construction and to schedule reduced principal payments in the next four years. Then if the l~% measure -- fails repayment will be as anticipated had the bonds been sold under the normal schedule. The Manager said the only risk in selling the balance at one time appears to be that of . some threat to the City's bond or credit rating because of total outstanding indebtedness. The alternative, if the l~% measure is approved and the balance of the bonds are not sold, is not having funds available for sewer construction without taking the issue back to the voters. The lack of these funds would stop separation of downtown storm and sanitary sewers, prevent increase in capacity of the sewage treatment plant, prevent the City's paying a share of sewer costs for main trunks and additional sewers for new subdivision, and prevent sewer reconstruction in the downtown area thereby taking away a portion of the City's financ- ing of the downtown renewal program. Mr. Anderson moved seconded by Mr. Lassen to proceed with issuance and sale of $7.7 million sewer con- struction bonds prior to November 5, 1968. It Councilman Lassen asked about the investment program and interest rates, and the City Manager said a portion of the funds would be invested in time certificates of deposit, most of it in Federal securities, with interest income anticipated to more than offset interest costs. Councilman McDonald asked if sale of the bonds would increase the property tax rate for next year and whether future indebtedness would be jeopardized. The City Manager explained that an increase in the property tax rate of about $.20 per thousand dollars is anticipated next year because of debt service, and that this would be' reflected regardless of whether the l~% measure is approved. In selling the whole amount a problem would arise because of ac- celerated principal payments, but principal payments can legally be postponed for five years if the bonds are so written. Postponement will allow making principal payments in the same amount had the scheduled amount of $1.7 million been sold. The interest will not affect . the tax rate because investment will offset the cost. A slight increase might take effect if the $360,000 Laurelwood issue is approved and sold, but the Manager said it would not appear to be a significant amount. With regard to plaCing future indebtedness in jeopardy, the Manager said the per capita indebtedness will not be thrown out of line by this sale. A rollcall vote was taken on the motion as stated, and motion carried, all councilmen present voting aye. . 3 .. Indemnification, Casebier vs. City of Eugene - The City Attorney explained that in the false arrest case involving Police Officer Howard Johnson, the plaintiff, George Casebier, obtained judgment for $5,000.00 plus court costs of $397.64. The City was dismissed as a defendant in the case; but maintains that the verdict and judgment were erroneous, and appealed the case to the Oregon Supreme Court. The Attorney said that under Oregon law the judgment can be collected through garnishment of Officer Johnson's wages, but the City feels he was not guilty of any negligence or misconduct of police procedures which resulted in the cause of action. The City now has false arrest insurance but did not have the insurance at the time of the incident in question. The Attorney recommended obtaining a supersedeas bond with United Pacific Insurance Company as surety to forestall garnishment until a decision has been made by the Oregon Supreme Court. If the decision is confirmed, the Attorney recommended that the City pay the judgment. . Mr. Wingard moved seconded by Mr. Anderson that the city of Eugene indemnify and hold harmless United Pacific Insurance Company as surety upon a supersedeas bond to be filed in Case No. 88013 pending in . the 'Circuit Court for the state of Oregon in Lane County, in which George Edward Casebier is the plaintiff and the city of Eugene and Howard M. Johnson are the defendants, and in which the plaintiff recovered a judgment of $5,000.00 against Police Officer Howard M. Johnson, plus the court costs of $397.64, and in the event that the said judgment is affirmed on an appeal now pending in the Supreme Court of Oregon that the said city of Eugene pay said judgment in full. Rollcall vote. All councilmen present voting aye, motion carried. .. 8/26/68 - 11 ..... ._"........c~""'-