HomeMy WebLinkAbout92-90 RESOLUTIONr..... 204
61,
June 5, 1990
Mr. Oestrich had done an exceptional job in researching all options
and possibilities in the matter.
Director Vorsanger asked if any thought had been given to equipping
at least one truck with recycling bins to be ready in the
likelihood that the City went with curbside recycling later on.
Solid Waste Management Administrator Hal Morton addressed the Board
in answer to Vorsanger's question. He explained that the trucks
brought up in this meeting were part of the routine replacement
program for sanitation vehicles. Morton reminded the Board that
no replacements were made last year, and some of the vehicles were
only marginally safe at this time. He also stated that the
curbside recycling option is still open at this time and considered
a "luxury item" that would be provided in addition to the drop-off
stations now functioning.
Upon roll call, the motion to award the bid was passed unanimously.
RESOLUTION NO. 91-90 APPEARS ON PAGE OF ORDINANCE AND
RESOLUTION BOOK
OTHER BUSINESS
LAUTHORITY TO FILE INTERPLEADER J
Attorney Walter Niblock addressed the Board with an update on
proceedings in the FGIC case. He stated FGIC had filed suit for
declaratory judgment in the U.S. District Court on May 25, 1990
and had served notice to Niblock on June 4, 1990. He explained
that the action was anticipated. FGIC is claiming that the Waste
Supply Agreement is valid and enforceable, and they are asking the
U.S. District Court to enforce the agreement. Niblock stated that
he wished to have the Board's permission to file an interpleader
in the District Court asking the Court to decide who gets the
money --the ratepayer by refund or pay to the trustee (Union
National Bank) so the money can be paid out by the trustee to the
bondholders. He mentioned that although the case up to this point
has proceeded very slowly, it is really just beginning. He assured
the public that, if the interpleader is allowed in the U.S. Court,
things will speed up considerably. Niblock explained that the
interpleader would require the presence of the funds in the Court's
coffers for them to determine who it does go to. He asked for the
Board to authorize the City Manager to place the funds in the hands
of the Court for their decision. The exact amount is unknown, but
he felt the very minimum would be the $540,000 that has been
collected thus far on the $2.02 monthly payments being collected
on people's water, sewer, and sanitation billing. The City is in
arrears to FGIC in the amount of $1.7 million, not including the
$540,000, for the payments they have made on the accumulated
interest.
2V'v
June 5, 1990
Director Lancaster, seconded by Vorsanger, made a motion to
authorize the filing of the interpleader.
Director Green asked if authorization would also be needed for the
transfer of the funds to the Court. It was explained that the
transfer of funds was part of the interpleader.
Niblock explained that the Board needed to authorize a range of
approximate figures, with the low being $541,000 and the high $1.7
million.
Upon roll call, the motion passed unanimously adopted.
Resolution 92-90 appears.on page o Ordinance and Resolution Book
LIQUOR ORDINANCE
City Manager Linebaugh reported on the situation dealing with the
selling of liquor on the last election day. Following a complaint
that the liquor stores were open on election day, the police
department made the rounds to all liquor stores open in the area,
informing them of the ordinance. They went again around 6:00 p.m.
and issued citations to establishments still open. The City
Manager's office decided not to prosecute those .citations.
Linebaugh requested the ordinance be repealed or some action taken.
He stated that his office would send out letters to the bars and
liquor stores and enforce the ordinance unless the Board otherwise
stated.
•
Mayor Martin stated that there might be some question about the
Attorney General's ruling and that the Board's governing in the
matter tended to be somewhat ambiguous legally. He further stated
that some clarification needed to be done before therun-off
election for the citizens as well as the store owners.
Martin, seconded by 'Green, made a motion to -stay the enforcement
of the ordinance pending legal clarification by the courts.
Terry Harper, attorney representing McBride Distributing, addressed
the Board concerning the Alcoholic Beverage Law. Harper stated
that it was the Attorney General's opinion that the repealed law
also repealed the sister statute concerning elections, leaving the
City ordinance to be dealt with. He stated that he believed that
the ordinance, dating back to the 1930's was probably a reflection
of.the state law prior to the 1989 amendment. Harper also stated
that in the section of state law governing what affairs
municipalities have direct control over and what affairs are
governed by state law, affairs dealing with and pertaining to the
sale of alcoholic beverages and alcoholic beverages in general are
reserved for the state. He stated that as a result, the City
ordinance is in direct conflict with the State law and either needs
to repealed or, pending some type of declaratory judgment, the City
issue a non -enforcement order.
Le -
RESOLUTION NO.
9a -q&
No resolution was ever drafted.
Attached is a copy of the Board of Director
minutes where the resolution was adopted.