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ORDINANCE NO. 67'82
<br />
<br />BY: Brown, Chinnock, Gallagher, Graham,
<br /> McBride, Wendling
<br />
<br /> AN EMERGENCY ORDINANCE authorizing and directing the Director of
<br />Finance to pay to C. Richard Newpher the sum of $2,542.36 in full satisfaction
<br />and settlement of moral claim.
<br />
<br /> WHEREAS, one C. Richard Newpher, through the Cleveland office of Cowen
<br />and Company purchased a City of Lakewood Wastewater Treatment Plant Improvement
<br />Note dated March 4, 1981, in the principal amount of $100,000 with interest at 9
<br />3/4 percent which Note provided for maturity on March 4, 1982, and
<br />
<br /> WHEREAS, prior to the sale of the series of which the Note was a part,
<br />the City determined to issue said Notes for only 6 months with a maturity date
<br />of August 31, 1981, and
<br />
<br /> WHEREAS, in order to accomplish this change, the bank which handled
<br />the Note issue was to attach to each Note when delivered to the customer a
<br />letter from Finance Director, Dennis Golem, which letter was inadvertently not
<br />attached to the Note sold to Mr. Newpher, and
<br />
<br /> WHEREAS, when Mr. Newpher's Note was not presented for redemption on
<br />the actual maturity date of August 31, 1981, the City was advised to have the
<br />amount due under the Note invested in a demand interest bearing account, and
<br />
<br /> WHEREAS, Mr. Newpher's Note was ultimately presented and paid off on
<br />March 10, 1982, by payment of the $100,000 principal amount and 9 3/4 percent
<br />interest through the actual maturity date of August 31, 1981, with the City of
<br />Lakewood receiving the amount of $2,542.36 as interest earned subsequent to that
<br />date, and
<br />
<br /> WHEREAS, the City has been requested to give favorable consideration
<br />to paying Mr. Newpher the amount of interest actually earned by the City on the
<br />repo account during the period of approximately six months from the date the
<br />account was established through the payoff on March 10, 1982, which funds
<br />represent money that accumulated only because of the unintentional late presenta-
<br />tion of the Note for payment, and which funds do not represent any sums which
<br />the City anticipated receiving under the terms of its borrowing, and
<br />
<br /> WHEREAS, although the City of Lakewood is entirely without fault with
<br />regard to the notice of the earlier maturity date, there exists the possibility
<br />of litigation which could involve not only the bank handling the Note issue but
<br />also the City, and
<br />
<br /> WHEREAS, this Council believes that in fairness and equity, the City
<br />does not wish to profit at the expense of the Note purchaser from its unintended
<br />retention of the funds past the maturity date and that the City is willing to
<br />return to Mr. Newpher the interest actually earned on his funds in the repo
<br />account, and
<br />
<br /> WHEREAS, this ordinance constitutes an emergency measure providing for
<br />the usual daily operation of a municipal department; now, therefore,
<br />
<br />BE IT ORDAINED BY THE COUNCIL OF THE CITY OF LAKEWOOD, STATE OF OHIO:
<br />
<br /> SeCtion 1. That the Director of Finance be and he is hereby
<br />authorized and directed to pay to C. Richard Newpher the sum of $2,542.36 in
<br />full satisfaction of a moral claim which represents the actual amount of
<br />interest earned on a repo account relating to the late presentation of a
<br />$100,000 Wastewater Treatment Plant Improvement Note.
<br />
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