HomeMy WebLinkAbout11-25-1921322
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Minutes, of a special meeting of the Common Council of the City
of Rochester, Minnesota, held in the Council Chambers, in the City (Tall,
in said. City, or} November 25th., 1921, at 1:30 o'clock, P.M.
M. eting called to order by President weeks.
Roll Call: Present: Weeks, Case, Erickson, ,Frank, Viner, Olson,
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Witzke. Absent: Nonei i
The call for the special meeting was read; said.meeting being
,t called for the purpose of taking the actions necessary to satisfy the
judgment of the Omaha Structural Steel Bridge Orompany against the City of
Rochester;, and to make payment of the balance of cash in the stipulation i
of settlement in the case, Township of Oronoco vs; City of Rochester,
and any other business that said Common Council might deem .proper.
THe following communications were read, and motion by Witzke
second by Erickson carried that the same be placed on file:
"November 15, 19210 ?
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Minnesota Loan & Trust Co.,
Minneapolis, Minnesota: �
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Attention of Mr. W. L. Mitten.
Gentlemen: -
This confirms my telephone conversation of this date which
accepted the proposal set forth in your letter of November 14th!
The next meeting of the Common Council is to be Novemb-
er 28, 1921, and the next meeting of the Public Utility Board is to be.
held on November 29, 19219 at which times appropriation will be made by
the Public Utility Board to meet the balance of cash required to settle
this judgment, and the Common Council will adopt the necessary proceed-
ings for the sale of these $25;000,00 Bonds, Before that time for the
purpose of comparison, I wish that you would furnish.us with your figures
as to what the value of the bonds, figuring the principal and accrued
interest, will be on November 30, 19211 and what the total judgment
which the Omaha Structural Steel Bridge Company has against the City of
Rochester, figuring the principal and. accrued Interest to that date, will
be, and if these figures agree with ours our attorneys will have the
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necessary papers prepared to submit at these two above mentioned meetings
so that we will be able to turn over the cash and bonds to close this
account on November 30tha
Any papers that you may desire to have passed in connection
with the sale of these bonds, we shall be . glad to have before the above
mentioned dates;
Yours truly,
A. F. Wright,
afw-h City Clerk"
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"Minneapolis, r
November 15 1921
Mr. A. F. Wright,
City Clerk,
Rochester, Minnesota.
Dear Sir: -
We are today Prriting the Allied Contractors Incorporated at 304 Bee Building, Omaha,
successors to the Omaha Structural Steel Bridge Company, regarding the arrangements
whereby they will accept $25,000 City of Rochester Electric Light 5� Bonds in part
payment of the judgment which they hold against your City. ,
We are asking them to forward to you complete st at ement of the amount of the judgment ,
plus accrued interest up to and including November 25th as it will no doubt take a few
days to complete the proceedings on this issue of 025,000 bonds.
You can make your adjustment of interest at the time payment is made either adding or,
deducting interest from November 25th -
We quote from the Allied Contractors Incorporated letter of November 14th as follows:
VIn answer to your wire of November- 14th .and the writer's telephone communication with
your office this m,fterncnr with reference, to the Rochester, Minnesota matter, will say
that we will accept es part payment on our judgment against the City of Rochester
4"025,000.00 of Rochester Electric Light 5's due 1939, optional 1929, from the City at
par and accrued interest provided they are legally issued bonds, the City of Rochester
to pay the balance of the judgment and accrued interest to the date of settlement in
cash► This agreement being contingent only upon the part of the City of Rochester
releasing us from our offer to 'them for the settlement, of this judgment and iterest,
wherein we agreed to deduct $2000. from the judgment and interest to the date of
settlement and also contingent upon the City of Rochester delivering these bonds to
US so that we can deliver the same to you and be paid for the same by December 1, 1921.
In other words, we are simply taking the bonds at par so that the City of Rochester
can sell them legally and in the end we will receive -our full judgment and interest
to the date of settlement from the City of Rochester by accepting $25,000. of Rochest-
er bonds at par and the balance of the judgment and accrued interest to the date of
settlement in cash, the City of Rochester relieving the Allied Contractors Incorporat-
ed from their offer to accept .the full amount of the judgment and accrued interest to.
date of settlement less $2000:*
We have asked the Allied Contractors Incorporated to confirm to you the arrangements
as outlined in their letter whereby you will relieve them of their offer to accept
$2000* discount on their judgment provided the$25,000 bonds and the balance of the
first amount of the judgment and accrued interest is paid. We in turn have made
arrangements with the Allied Contractors Incorporated to take the bonds off their
hands and of course they will have to, stand the necessary discount as this is the only
way which we could suggest that the City could sell their bonds legally on the present
market 6
Yours very truly,
THE MINNESOTA LOAN AND TRUST COMP -ANY,
WLM-A By W.,L. Mitten"
t "OMAHA, NEBRASKA
Novi 19, 19210
A. F. Wright, City Clerk,
Rochester, Minnesotai
Dear Sir: -
In response to a telegram from the Minnesota Loan & Trust Company, ask-
ing us to figure up the amount due to November 30th upon the judgment on account of
the Rochester dam, will state that our Mr. Kelley is out of the City. We have, how-
ever, received over the,telephone from Mr. Beghtol, our attorney, the following
figures, which we assume are correct:
Judgment and interest 'to. November 30th, `
Costs - - - - - - - - - - - - - - - - - - - - - - - -
Total - - - -
$51,381.44
50.81
51,432.25
Assuming that these figures are correct, we will state that we will
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accept In payment of same $25,000.00 in your bonds and
the balance in cash. This withdraws our offer of a cash discount for cash
payment, for the reason that while we are taking these bonds at par they
are not worth par on the market, as you know.
Yours very truly,
ALLIED CONTRACTORS INC.,
By John W. Towle
JWT/CH President."
"MINNEAPOLIS,
November 16, 19214
Mr. A* F. Wright,
City Clerk,
Rochester, Minnesota.
Dear Sir: —
In further reference to the $25,000 CITY OF ROCHESTER, Minnesota Electric
Light bonds and in answer to your letter of November 15th will say that
acerued interest from,the last interest date which we assume is July 23,
.1921 to November 3pth would be $51300� This of course would be paid to
the City at the time the bonds are taken up and paid fora The coupons
maturing prior to this would be clipped and held -by you,
The Omaha people are very emphatic_ -that payment in full must be made prior
to December 1, 1921 if you"wish to take advantage of their offer to accept
these bonds in payment@ I note by your letter that the Common Council will
meet on November 28th,and the Public Utility Board on November.29thi This
will only give you one day to make payment alid it would .appear that you are
running rather close to the edgei Would it not be possible for these two
Boards to meet before that time, say some time in the very near future. I
believe you would find this much more satisfactory as it .would'be necessary
fora representative or agent of the Omaha concern to be present when
settlement is made, with the satisfaction of judgment and if.anything
should happen so that he could not reach Rochester on November 30th they
could refuse to go through with the deal after that time.
Mr. Martin is writing you today giving you a list ofhthe proofs required to
complete the legality of the issue and upon receipt of these requirements
everything should be in such shape that the deal can be closed immediately
as we have all the proceedings in connection with the old bond issue ors•
file. Y
Yours very truly, '
THE MINNESOTA LOAN AND TRUST COMPANY,
WLM-A By W. L. Mitten."
Alderman Case introduced the following resolution which was read:
WHEREAS, the OMAHA STRUCTURAL STEEL BRIDGE .COMPANY obtained a
judgment against the City of RO CHESTER on August ' 4th, 1921, in the
sum of $50,397.34, including interest to the date of the said judg-
ment;
THEREFORE, Be it resolved by the Common Council of the City of
Rochester: _
That the aforesaid judgment and the whole thereof be and the
sauke is hereby accepted by said Common Councilfe
Motion by Case second by Witzke .that said resolution be adopted
as readi : Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzke.
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Nays: None. President Weeks declared said resolution passed and adopted.
Alderman Erickson introduced the following resolution which was
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read: f
WHEREAS, the Omaha Structural Steel Bridge Company, now the Allied Con-
tractors Inc., proposes to purchase mom the City of'Ro,chester Twenty five
,thousand ($25,00,0.00) Dollars unsold Electric Light Bonds of the City of Roch-
ester Numbers 926 to 950 inclusive, dated January 2nd, 1919, and bearing inter-
est at five (5%) percent, at par with accrued interest to date of delivery;
THEREFORE, Be it resolved by the Common Council of the City of Rochester:
That the above mentioned proposal of the Allied Contractors Inc. be and
the sameis hereby accepted and the sale of the said bonds is hereby authorized
and directed to be made in acoordance with the said proposals
Be it further resolved by,said Common Council:
That upon the payment of the purchase price including accrued interest,
the Treasurer of the City of Rochester shall deliver the said bonds to the
Allied Contractors Inc., and he shall place the proceeds of the principal to
the credit of the Hydro -Electric Plant Fund of said City, which amount shall be
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later transferred to the General Fund of said City in order,to comply,with
Section 304 of the Charter of the City of Rochester; and the proceeds of the
accrued interest shall be placed to the credit of the Interest__Fund of said City.
Motion by Witzke second by Case that said resolution be adopted as read:
Roll Call:Ay66: Case, Erickson, Funk, Miner, Olson, Witzke: Nays: None. President
Weeks declared said resolution passed and adopted6
Alderman Witzke introduced the following resolution which was read:
Be it ,r. esolved by the Common Council of the City of .Rochester:
That the sum of 025,0006009 which sum was realized from the sale of
Electric Light Bonds of the City of Rochester, Numbers 926 to 950 inclusives be
and the said sum is 'hereby appropriated from the Hydro -Electric Plant Fund of
said City and transferred to the General Fund of said City for the purpose of
paying the judgment obtained by the Allied Contractors Inc, successors to the
Omaha Structural Steel Bridge 'Company, against the City of Rochester on August
4th, 1921, amounting to 050,397 34, which sum includes interest to date of
_judgment. Said transfer is hereby made to comply with Section 304 of the Chart-1
er of the City of Rochester@
The Mayor and City Clerk of said City are hereby authorized and directed
to draw a warrant for the above appropriation upon the City Treasurer at such
time when there are sufficient funds in the, said Hydro -Electric Plant Fund of
said City.
Motion by CCase seeondby Erickson that said resolution be adopted as read:
Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzke: Nays: None. President
Weeks declared said resolution passed and adopted.
Alderman Olson introduced the following resolution which was read:
Be it resolved by the Common Council of the City of Rochester, Minnesota:
That the sum of $51,432ii25 be and the said sum is hereby appropriated from
the General Fund of said City and ordered paid to the Allied Contractorf, Incorporated,
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successors to the Omaha Structural Steel Bridge Company, in full
payment o f judgment obtained against : the City of Rochester, Minnesota,
on August 4, 1921, said sum including interest to data of judgment,
interest on judgment from -that date to November 3.0, 1921, and costs.
The. Mayor and City Clerk of, said City are hereby .authorized and
directed to draw a warrant upon the City Treasurer for the appropria-
tion and to turn over to.bhe said Allied Contractors, Incorporated,
the said warrant at such time as they may present a satisfaction of
the said judgments
Motion by Olson second by Frank that said resolution be adopted
as read: Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzkes
Nays: None-s President Peeks declared said resolution passed and adopted,
The following communication was read, and motion by Olson second
by Frank carried that the same be placed on filer
"Rochester, Minn. Nov. 189 1921,"
Lair, Arthur L. Wright,
City Clerk,
City Hall, City.
Dear Sir: -
I wish to notify you that we are expecting the payment payment of
the balance of thq Oronoco Township judgment on or before November 25th,
and that the amount due is $3500*00, with interest at six per cent on
$7,000 from September 29th to the date of the payment which you made and
on $3500.00 since that date
You are further notified that as Attorney for said Township in
said matter and representing them in the collection of this amount. That I
have been directed by them to say that the matter is straightened up and.
paid to me and through me* I ` 4 t
On account of the little unhapiness before, unless the matter is
taken care of, sati-sfactory, on or before the 25th of November, I am to
leave the matter with the Sheriff for collection upon execution and there
will be his fees to take care of. We wish to do anything vie can to accom-
odate but we do not care for these little unpleasant circumstances*
Yours sincerely,
Thomas Fraser"
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Alderman Case introduced the following resolution which was
read:
Be it resolved by the Common Council of the; City of Rochester,
Minnesota:
That th_e sum of .$39546.08 be and the said sum is hereby appro-
priated from the General Fund of said City and ordered paid to the
Township of Orono c o, in Olmsted County, Minee qot a: in payment of
the balance, of cash due on stipulation of settlement in the case- of
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the Township of Oronoco, vs* the City of Rochester, Minnesota:
$3,500.00 thereof being in payment of the said balance due and
$46.08 being for the payment of interest on judgment from the date
on which it was rendered to this dates
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The Mayor and City Clerk of said .City are hereby authorized
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and directed to draw a warrant upon the City Treasurer for the above appropri-
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at'i:on and cause said payment to be made:
Motion byEricksonsecond by Witzke that said resolution be adopted as
read: Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzke: Nays: None:
President Weeks declared said resolution passed and adopted.
Alderman Erickson introduced the following resolution which was read:
Be it resolved by the Common Council of the City of Rochester:
That the sum of $91,000:00 be and the said sum is hereby appropriated
from the Permanent Improvement Revolving Fgnd'of said` City and ordered paid to
the Capitol National Bank of Saint Paul, Minnesota! in Payment of interest due
December 1, 1921, on Permanent Improvement Revolving FUnd Bonds Nose 1 to 3009
inclusive.
The Mayor and City Clerk are hereby authorized and directed to draw a
warraht for said sum upon they City Treasurer in accordance herewith, and cause
said payment to be made.'
Motion by Frank second -by Witzke that said resolution be adopted as read:
Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzkea Nays: None: President
Weeks declared said resolution passed and adopted.
Alderman Case introduced the following resolution which was read:
{
Be it resolved by the Common Council of the City of Rochester:
That the sum of $12,420:00 be and the said sum is hereby appropriated
from the Permanent Improvement Revolving Pand of said City and ordered paid to
Merchants Trust and Savings Bank, Saint Paul, Minnesota, $10,000 thereof being
for payment of the principal on Permanent Improvement Revolving Pund Bonds Nos.
134 to 143 mclusive, due December 1, 1921, and $2,420.00 thereof being for pay-
ment of interest due December 1, 1921, on Permanent Improvement Revolving Fund
Bonds Nos. 134 to 206,inclusive, and Nos. 209 to 223, inclusive.
The Mayor and City Clerk are hereby authorized and directed to draw a
warrant for said sum upon the City Treasurer in accordance herewith, and cause
said payment to be mades
Motion by Case second by Erickson that said resolution be adopted as
read: Roll Call: Ayes: Case, Erickson, Frank, Miner, Olson, Witzke. Nays: None.
President Weeps declared said resolution passed and adopted.
The Following application for license was read,, -and motion by Witzke
second by Frank carried that the license requested be granted for the period of one
month at a fee of $25 00 per month:
Honorable Mayor and
Common Council.
Gentlemen: -
"Rochester., Minnesota.
November 25, 1921e
I hereby make, application for a license to conduct an auction sale of
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jewelry and kindred goods at 105 Broadway Street South.
Bond in the amount of 050000 to cover said license in the event
it is granted, and my check for $25.00 to cover the fee, both accompany
this applications
Respectfully submitted, t
M. Baldwin"
The auction license bond of Martin I. Baldwin with the Fidelity
and Casualty Company of New York as surety thereon, in the amount of
$5000031 was read, and motion by Olson second by Case carried that the
said surety be accepted and that the said bond be approved and placed on
file.
The report of the Public Utility Board, Water Department, for
the month of October, 19219 showing receipts in the amount of 915,356.83,
and disbursements in the, amount of $4,310r44; and the report of the Public
Utility Board, Electric Department, for the month-of.October, 1921, show-
ing receipts in the amount of $24,606630, and disbursements in the amount
of $18,337.47, were each separately read, and motion by Case second by
Miner carried that the same be placed on file. t
The report of the Milk Inspector for the wps?k end.i-ng November
12, 19219 mras read, and motion by Miner second by Olson carried that the
same be placed on fi"lea
The request of IT. T. Downs, Secr`eta:ry and Treasurer of the
Minnesota Board of Registration for Architects, Engineers and Land Sur-
veyors as to .references in connection `with the application of Tim.. C.
Fraser of Saint Paul, Minnesota, for registration as a Civil Engineer and
Land Surveyor, was read, and motion` by Miner second by Olson carried that
the City Clerk be instructed to fill out the form submitted, giving Mr.
Ivaser the best of recommendationse `
President Weeks at this time excused Alderman Witzke who'left
the Council Chambers.
The following communication was react',' and motion by Miner
second by Erickson earried that the same be placed on file and that the
appointment mentioned therein be approved: t
"Rochester, Minnesota.
November 16, 19211
Honorable Mayor and
Common Coun ci 1 i
Gentlemen:- ,
Subject to your approval I hereby appoint Wilbert YcHenery a
Fireman in the Fire Department of said City, effective on this date@
Respectfully submitted,
Wm E. Cudmore
Chief of Fire Department."
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The following estimate of cost was read, and motion by Case second by Frank
carried that the same be accepted and placed on file, and that the City Engineer be
instructed to secure the labor and materials necessary for the straightening of the
course of Silver Creek through Lot 48 in State Subdivision of Section 36, Township
107, Range 14:
"November 23, 1921a
Honorable Mayor and
Common Council,
Gentlemen: -
I herewith submit estimate of cost of straightening of part of Silver
Creek through part of Lot 48, State Subdivision of School Section 36-107 Nov R. 14
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W. in the City of Rochester, Minnesota:
423.3 cu: yds. Earth excavation @ 40 cents per yard, $169030
96 cu*-yds. Rock Hauled ® $2000 19200
66 Rods 32" Woven Wire @ 65 cents 42890
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Placing 96 ydsol Rock @ 30 cents 28080
Total estimated cost $ 433400
Respectfully submitted,
Co H..Armstrongg
City Engineer."
The following claims were read, and motion by Miner second by Frank carried
that the same be allowed and that orders be drawn for'the several amounts:
From the General Fund: L. A. Kepp Co., $1650; Elliott Contracting Co.,
$5*40; Elliott Oontracting Co., $$3 35; James To Spillane, 033.38; W1 M. Weeks,
$25.39; William P. Jones, $300; Elsye Kowalkowski, 559 95; Case Auto Co., $5d29;
`''he Bulletin Publiehing Co., $848i24a
From the Fire Protection DUnd: Winona Oil Co., $25:00; Elliott Contracting
Co., 8330.
From the Streetand Alley Fund: Fred 5. Brown, 044@25; Priebe and Fr atzke,
N1108; Rochester Iron Worms, $28i604
From the Bridge Fund: Priebe and Fratzke, $100.
From the Sewer Fund: Dodge Lumber and Fuel Co., $7@96.
Don Postier, Building and Electrical Inspector, stated that so far he
has been unable to collect the electrical inspection fees from the Foster Electric
Company for inspection of the new Kahl er Hotel,
Motion by Miner second by Frank carried that the City.Attorney be in-
structed to notify the Foster Electric Company to settle. the inspection fees for the
new Kahler
Hotel
before
December 1, 1921, or their electricians' license will be
revoked by
this
Common
Council,
Motion by Case second by Miner carried that this Common Council re-
consider action heretofore taken which authorized the Chair to appoint a Committee
to recommend, etc., in matters concerning
improvement of the said City.
the physical development and public
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1 Motion by Miner second by Olson earried that the City Attorney
be instructed to draft an ordinance creating a City Planning Commission
and defining their dutiesco
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President Weeks at this time.excused Alderman Case who left the
i Council Chamberso
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i Motion by Olson second by Erickson carried that the City Clerk
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be instructed to notify the Public Utility Board to install a street light
at the intersection of Ninth Avenue Southwest and Sixth Street Southwest,
and also that the lights on the bridge across Cascade Creek on Eleventh
Avenue Northwest, and on the bridge across Silver Creek on Eleventh Avenue
Northeast, be each connectedo
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Motion by Mir.Ar second by Erickson carried that the City Clerk :
be instructed to request 6f the Public Utility Board that they forthwith
make the installation of such street lights as have been ordered by this
Common Council and not yet installed@
y On motion by Olson second by Erickson Council adjourned.
City Clerks
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