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HomeMy WebLinkAbout00103 minutes of this meeting you will notice that the members of (2)(Bills and Claims continued) CLAIMS NOT APPROVED BY FINANCE COMMITTEE. Claim o£ Jae. T. Fullerton: The claim of Jame T. Fullerton for purported damages growing out of an auto accident, was presented and read, as follows: The Mayor andCouncil, Port Townsend, Wash., Sept. 25th, 1931 Port Townsend, Wash. Gentlemen: - Owing to the criminal negligence of the street department in not putting a rod flag or danger sign on a pile of loose gravel at the foot of Washington Street, my car upset while going at low speed. I have been laid up since August 23rd and caused great suffering but I dont want to oblige the city, now ove: whelmed with debt, to have to send to Seattle to get an attorney to defend another damage suit and so mnke this offer, without prejudice to a personal injury suit. If the Council will pay for the repairs, about $60.00, to my oar I will waive a personal injury suit rather than put the taxpayers to more expense. Yours truly, James T. Fullerton. Mayor raoommsada rotection. Mayor Bangerter askod that it be made of record that he recommended the rojection of the Enid claim. Claim Rejected: It was moved by Councilman Smith and eeoonded by Councilman Lammers that the said slain be rejected. Motion declared carried, and the City Clerk was directed to so notify the claimant. CLAIM OF ROYAL INSURANCE CO. Mrs. H. E. Dobbs, City Treasurer, filed the following letter from the Royal Insurance Company, relative to indemnity paid account lost interest coupons, with the request that it be presented to the Council and the same was read to the City Council, to -wit, City Treasurer, Ban Francisco, Calif., September 23rd, 1931 Port Townsend, Washington. Dear Sir: - We have for acknowledgement your reply to our letter of September 2nd, inquiring no to the steps necessary to obtain reissue of Interest Coupon $7 from the Port Townsend Municipal Water Works Extension Bonds 1927 SN Nos. 346 to 354 inclusive and 360 to 363 inclusive, a total of fourteen coupons valued at $27.50 each. These coupons were lost in a sail robbery which occurred on July Zed, 1931, and we hold subro- gation from the State Treasurer of the State of Washington on account of payment made by us in the amount of $385.00 under our Registered Mail Policy No. RM 1109 Advice No. 31298. { We enclose herewith a "pro forma" Indemnity Bond for your consideration. Kindly notify us at your convenience if'this bond is in proper form and amount; if it is not satisfactory please advise us of an amendments necessary to meet with your requirements, when we will immediately take steps to have a satisfac- tory bond issued as that we may obtain a reissue of the lost coupons. Awaiting ,;our advice• in connection with this, we are, Yours very truly, John V. Sunbury, Marine Underwriter. Notify Claimant. City Attorney Scott advised the Council thnt the claim wee not in form for the Council to consider, and it was moved by Councilman Starrett and seconded by Councilman Lammers that the City Clerk be instructed to write the Royal Insurance Company and advise them that their olnim must set forth all the facts in the case and that the indemnity Bond should refer directly to the facts set forth in the claim. Motion declared carried. Peach Arrives: Councilman S. V. Peach arrived at this time and took his scat in the Council. NATIONAL PAPER PRODUCTS COMPANY CLAIM; The claim Of the National Paper Products Company, for payments made for purported extra costa in rela- tion to logging across the City's Pipe Line Right-cf-way, was next presented end read as follows, to -wit: Port Townsend City Council, Port Toanaend, Washington, Sept. 22, 1931 Port Townsend, Washington. Gentlemen: Referring to the matter of reimbursing the National Paper Products Company the sum of $10,375, rop- resenting amount advanced by the Paper Company to the Chas. R. McCormick Lumber Company to protect the City of Pot Townsend pipe line from damage since same was not constructed in accordance with the terms of the City's easement through the McCormick property. All of you are familiar with the details concerning the above, but for your information will again briefly outline the history of the matter. First of All, let me quoto from the City's easement of April 24, 1928 with the Chas. R. McCormick Lumber Company, wherein the latter granted to the City of Port Towne and a perpetual easement to lay and main - The third paragraph of this easement states as follows: tain a pipe lino for the transportation of water over and across certain land of the McCormiok Lumbar Company "The grantee agrees that the pipe line shall be buried during the entire length of the easement herein granted to such a depth as will protect the pipe line against ell damage because of the logging operations of the grantor, or resulting from any other cause, and as will insure that there shall be no interference or obstruction to the logging operations of the grantor, in, upon, or adjacent to the thirty foot strip." As you gentlemen are aware, for reasons known to you the pipe line was not buried in e000rdanoa with the terms of your easement. o further co relative to "Operation ndnMaintenance lInstructions ofet me also othe from t•TmmsendaPipe Liner of."repoJ. 0. Bar's repotofOD peagea131of this t Vx. Bear states as follows, "The portion located through the McCormick holdings between station 820 and 980 in the writer's greatest disappointment in the location of the line and he can only say that the route finally selected traverses leas land scheduled to be logged off than any other possible location. In the virgin forest the humus and forest debris forma a mat several feet deep and underlying it is hardpan and rock- very expensive to excavate. The average depth of excavation on the upper side is not leas than five feet and only in vary isolated points I W +'ram. ,x1 107 uinutee_of_QEtSth�,e co}iatiQd � which invariably are very egort, was the depth made less, and then only at vertical curves when the minimum radius was reached. The back filling there presented the most serious problem, The top soil, a mass of vegetable matter several feet deep, was unfit. for the purpose and suitable material could only be secured by stripping this top soil at a great expense over an area far beyond the confines of the right of way. Even if the expendi- ture'were justified, the hazard would be considerable because trees would have to be undermined or felled and grubbed out to furnish the necessary burrow pits. The pipe line now Se inadequately proteoted for indiscriminate logging oporatione and the City and Me- Cormiok um er Company mum a prepare o 00o era a an v"notake w on io area is logged- The superintendent of the pipe line should e n s oso communioaticn w the forces of the McCormick Lwabor Company and between them pre -determine how possible dangerous trees in the immediate vicinity of the pipe line aro to be felled and logo, hauled across the Pipe line. At the latter points fore and aft roads or roll ways will be oneeaeary to prevent injury to the pipe line. ' It is the writer's opinion that the protection work which will be required duria logging operations will a far lose ex enoivE than burying the pipe line o n e o ep roug ou a err cry w aro Logging w e one an taro aro it�iSied e type of construction that was adopted." Mr. Bear's prophecy proved to be correct for in the latter part of 1929 despite the cooperation of our pipe line maintenance forces and the employees of the Chao. R. McCormick Lumber Company. the ltnber people, in logging approximately four million feet of loge across the pipe lino, broke and damaged came acme nine- teen times. The Paper Company at their expanse repaired and rebuilt the pipe and backfill each. time. About November of 1929 we were informed by the Chas. R. McCormick Lumber Company that they still had approximately 7,100,000 foot of lumber to log across the pipe line and that the situation of this timbor was such that unless the lumber company went to additional expense it would not be possible for them to to log this area without not only severely damaging the pipe line, but possibly completely destroying it. This extreme situation brought the entire matter to a head and McCormick' a, investigating the terms of the City's easement, advised that unless we reimburse them for their extra coat of logging, they would not be responsible for damage to the City's pipe line since same had not been laid in accordance with the ease- ment granted. If wo protested their damaging the pipe line they would void the easement since terms of same had not been followed in the construction of the pipe line. 'McCormick's estimate of the additional expense of their logging so as not to domago the pipe line a- mounted to $19,115.00. Details of this are given in a report dated November 220 1929, prepared by Mr. P.E. Freydig, Logging Manager of the McCormick interests, which is attached. (Exhibit "A"). Immediately we began to investigate McCormick's stand, selling on our legal forces for opinions, as well as the heads of our mm logging operations on the Columbia River, Mr. Denman and Mr. Stamm, for their advice in the matter. Our attorneys advised that McCormick'a were justified in their stand and that the only way to prevent their destroying the pipe line was to reimburse them for the additional expense involved to protect the line. The next thing was to thoroughly check McCormick'a estimate of what theiradditionalcost of logging would be to protect the line. Our logging experts, Mr. Denman and Mr. Stamm, made two tripe to the area in ques- tion and after conference with Mr. Freydig, worked out a plan whereby the cost of protecting the pipe line was reduced from $19,115.00 to $10,375.00. During the period of negotiations all facto of the matter were given by the writer to both Mr. Sadler City Engineer, and Mr. Lammors, chairman of the Water Committee. By the first week in March,of 1930 we had worked out with the McCormick Lumber Company the details of protecting the pipe line, which would oodt not more than $10,375.00. Before executing this agreement with the Me Cormick Lumber Company, the writer on Maro 15, 1930, sent a copy of proposed agreement to Mr. Sadler so that hemight present same to the City Council at the next forthcoming meeting; copy of thin letter in attached. (See Exhibit "B"). For some reason or other the city did not take prompt action on the matter. The writer was also fur- ther informed that the city had no funds available with which to reimburse the McCormick Lumbar Company, and ' that the City looked to the Paper Company for help in the matter. Since the McCormick Lumber Company were immediately beginning their logging operations, the matter was acute and something had to be done immediate- ly, Accordingly we signed the agreement the week following with the McCormick Lumber Company, (see Exhibit "C" attached), fully trusting that the City of Port Townsend would recognize its responsibility in the mat- ter and reimburse us for the amount invlovod whenever such funds were available. On April 15th, 1930 the writer again reminded Mr. Sadler of the matter and asked for a repot on what action was taken (see Exhibit "D"). Mr. Sadler replied to this letter on April 16th to the effect that the matter was taken up with the City Council two weeks ago and referred to the Water Committee with the under- standing that they were to have a conference with the writer (E:.hibit "E"). On April 16th the writer also received a letter from Mr. Christian, suggesting that he attend the regular session of the Council to further discuss the matter (Exhibit "F"). Accordingly, on May 20, 1930, the writer attended the regular meeting of the City Council and covered all points of the matter, By referring to the minutes of this meeting you will notice that the members of the Council unnnimously voted to adopt a resolution whereby we would be reimbursed for the $10,375.00 when- ever said amount was available. However, your City Attorney, Mr. Scott decreed that such a resolution was notiin accordance with legal procedure and therefore he could not allow the City Council to be bound by such a resolution. , Since that time until today the matter has been consistently brought to your attention and we have been attempting to work out proper presentation of the matter so that same would be made in accordance with legal procedure acceptable to Mr. Scott. Within the post month Mr. Scott has been in conference with our attorneys in Seattle on the proper way of presenting the matter to the city. Accordingly, at Mr. Scott's ouggoation, we ore therefore enclosing a formal claim against the City of Port Townsend for the $10,375.00 involved. This has been prepared wholly in accordance with Mr. Scott's recommendation and we trust will warrant definite notion by the City Council. Said claim is attached (see Exhibit "G"). Also you will notice that copy of agreement with the McCor- mick Lumber Company has been receipted by them (Exhibit "C"], as recognition of the fact that the Paper Com- pany has paid them in full the $10,375.00 involved. Thanking you for your consideration of this matter and awaiting your further advises, we aro, Yours very truly, NATIONAL PAPER PRODUCTS COMPANY A. B. Lowenstein, Resident Manager. n