BOOK 27_1957-06-17 to 1960-07-25

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i 0 he submit suitable recommendation of dither means of approach to,the problem and as will permit an early and proper determination and action to resolve this question once and for all. Councilman Stout seconded the motion because he stated that there were a couple of questions he would like to have answered. He was of the opinion that the City Attorney should check into this matter and make a report as suggested by Councilman Weiss. The City Attorney stated that this same motion was turned down twice before by the Council and until such time as he is instructed by the Council to make an investi- gation:.; analysis and„report he doesn't feel authorized to take any action in regard to the matter. Councilman Herkner raised the question of what would happen if they found there was anything wrong with the court judgement. The City Attorney stated that he could not determine at this time what action, if any, the City could take without an analysis and review of the matter. This was followed by;,discussion. Councilman Granger stated that he did not believe they should question the judgement of the court especially when this had the approval of the City Attorney at that time and for that reason he was going to vote Nv. This was followed by discussion in regard to the $300,000 indebtedness. City Auditor Brophy stated that there is a chance that there is some change to bemade on the books and if this is done there is a good chance the indebtedness will be charged off within the next ten years. The motion lost on roll call with Councilmen Granger, Herkner, Spillers, Weymouth and Mayor Royer voting No and Councilmen Stout and Weiss voting Yes. REPORT ON INTEREST RATES, 90 DAY TIME DEPOSIT. The City Treasurer stated that he con- tacted the banks as requested by the Council at the previous council meeting. He received letters from all five banks and they all bid the same interest rate. Coun- cilman Granger asked if Wells Fargo.was going to ask for another portion of the money since they are now going to have two banks in Redwood City the same as the Bank of America. The Clerk read the letter from P. N. Jubchenko, Manager of the Bank of America on Broadway at Jefferson Avenue. Mr. Lubchenko asked the Council in con- sidering the proportionate amounts to be deposited in each bank to give consideration to the following factors: In times when the city had surplus funds, their bank always was willing to pay interest on inactive accounts. In addition, they have always provided market for bonds whenever the city required money for improvements of whatever nature. In con- sidering the allocation of inactive funds, thought should be given to placing these funds in banks that are not only interested in a depositary relationship, but that consistently welcome the borrowings as well. They have always invited the City to use services of their Bond Department, results of which have provided savings to the taxpayers. They would apZr eciate it if the deposits placed in their bank at the present time would remain intact. Councilman Stout was of the opinion that the money should be divided between the banks and not between the branches of the banks. Councilman Spillers wanted to know why the needed to change the system they are now following. The Mayor stated that the other banks asked for a chance for some City money. He stated that when times were bad the two banks that are handling the money now were the only ones who Would give the City any consideration. This was followed by discussion. Councilman Stout was of the