CC Min 2001-05-21 Spc Adj - Laserfiche WebLink

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City Attorney Shricker explained issue brought about by the bankruptcy filing ofP.G. & E. The City's interests are primarily the collection of Utility Users' Tax (UUT) and P.G. & E., on behalf of the City, collects the tax and holds it and remits it to the City periodically. The filing of bankruptcy creates some uncertainties but the legally supportable rule is that in legal bankruptcy proceedings, P.G. & E.'s handling of the UUT is exempt from the use of those proceeds for anything other than the tax. City Attorney Schricker further stated that the City has received a standard notice that the first meeting of the creditors in the bankruptcy proceedings will be held on June 7, 2001. This meeting is required under bankruptcy proceedings, basically, to make preliminary orders and for the court to obtain a general sense of the magnitude of the interest of the various creditors. Although, it is not essential that a potential creditor be represented at the heating, if not present, that opportunity is eliminated. Because of the potential uncertainties that may arise during the proceedings and possible short response time needed, for purposes of assuring some representation the suggestion would be to retain special counsel. M/S Hartnett/Howard to retain special legal representation in P.G. & E. bankruptcy proceedings for consultation and attendance at the heating with a more complete recommendation regarding continuation of the retention. The motion passed by a unanimous voice vote. 10. WRITTEN COMMUNICATIONS - None 11. BOARDS, COMMISSION AND COMMITTEE REPORTS - None 12. CLOSED SESSION - No action reported. 13. ADJOURNMENT- 9:55 p.m. M/S Jordan/Howard to adjourn to the Closed Session and then to the next Council meeting of June 4, 2001. The motion passed by a unanimous voice vote. REGULAR COUNCIL MEETING MAY 21,2001 MINUTES PAGE 7 MINUTES Book No. 58 Page No. 421