HomeMy WebLinkAboutM052085
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District No. 1 Commissioner:
District No. 2 Commissioner:
District No. 3 Commissioner:
Larry W. Dennison, Member
B.G. Brown, Member
John L. Pitts, Chairman
Clerk of the Board:
Public Works Director:
Jerdine C. Bragg
Gary A. Rowe
__________ ________________________ _____________________1____________
"1,1 M [lliii,- NI,' U '1>' IE: $' 1"I~'
Week of M y 20, 1985
T e meeting was called to rder at 10:00 a.m. bY,Chairman
John L. Pi ts. Commissioner B.G. B own and Commissioner larry W.
Dennison w re both in attendance.
o diers'
Dennison
Chairman
01 Ordinance.
in the
CR 0607: A
ntersect1
y mot10n omm1SS10ner Brown, se
to appropr1ate $3,000 for the
to the WesT Valley Road/Rhody
Fifth Aven e Road Improvement Plans: In order to give the Board time to
reV1ew t e 1mprovement plans or Fi th Avenue, action was delayed.
Replacemen of Leland Creek Bridge:
putting a tlemporary str~cture acros
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Discussion of the po sibility of
Leland Creek was hel with Public
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Minutes, Week of May 20., 1985
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wo.r ks Director Gary ROW~. ' who advised that it wou l..d cost ~pproximatelY
$1,000 to $2,000 per month to rent the parts of the struc ure plus the
labor for the installat~on. Gary Rowe will investigatet is matter
further and report back, to the Board at a later date., I
Fair Labor Standards Ac~: Gary Rowe reported that the Supreme Court
has recently ruled thatiTocal governments are responsible! for following
the Fair Labor Standardb Act requirements such as paying ~mployees over-
time anytime they work over 40 hours in a seven day perioa. This would
not allow an employee tb voluntarily work extra time one week in order
to take time off the nekt week. Gary suggested that the! Board ask
the Prosecuting Attorney for an opiniom on what the County must do to
meet the requirements of! the Fair Labor Standards Act. I
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SEPA Threshold Determini tion: Seattle acht Club SDP Appl cation #SH3-85;
oc oor1ng ouys; P rt u ow ay: 1ne 1ntereste r~s1 ents were
in attendance when Mitch. Press, Associ te Planner, reviewfd the Seattle
Yacht Club's proposal ffr facilities 0 Port Ludlow Bay. I
The proposal consists of the following elements to be placed on a site
adjacent to the Medenba~rer Bay Yacht lub site on the SOr.~th side of
Port Ludlow Bay and to pe used as an 0 ting station:
* 4 mooring b~uys to be plac d 100 to 200 feet tffshore in
10 to 25 fe~t of water.
* 45 foot lon~ dock consisti !
a 6 x 6 f90t concrete pa I
a 23 footipier
a 30 footimetal ramp I
and an 8 ~ 20 foot concr te float. I
* A six foot wide trail enco passing the Yacht ~lub property,
which would I come within fi e feet of the prop~rty boundaries.
There will be no waste ~r toilet facil ties at this site lnd an~. ves.sel
using the site would bel required to ta e care of their netds at the
Port Ludlow Marina facilities acrosst e Bay where the setttle Y.acht Club
leases 180 feet of moor~ge space.
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As background information, Mitch Press noted that the Seattle Ya.cht Club
had made two previous arplications for developing this site; one in 1979
for a 215 foot dock whi~h was later ch nged to a 168 foottdoCk and one
in 1982 for a 165 foot ~ock as well as restroom facilitie, a picnic
area and parking area o~ the upland po tion of the site. Both proposals
were issued Declarations of Significan e due to concerns lor the. following
impacts: noise, light ~nd glare, comp tibility with adja ent properties,
solid waste disposal, w~tersupply, vehicular traffic, me bership ru~es
and enforcement of thos~ rules, as weli as effects on theiwaterqua11ty
of Port Ludlow Bay. Mitch Press then eviewed the Enviro~mental Checklist,
noting the following co~cerns: I
* Proposal could attrabt more vessels to one site in Port Ludlow Bay
and if that haP. pens tt is not clear how many more boatr. COUld.. be
expected. !
* Unclear how enforcemEtmt of the requl' rement that the Cl b members
use the facilities at the Admiralty Resort Marina for ewage pump out
and garbage disposal~ could be acco plished.
* Update on the draft ~ater quality S~UdY of Port Ludlow Bay. The draft
is currently being r<~vised because he Depar. tment of E, ology h. as . problems
with the conclusi nslpresented in t e draft. The draf study reported
that of the 13 si eSiselected for s mpling for water qjality, two did
not meet the DOE lass AA water sta dards.
The study showed hai these two sit s showed pulses,inlfecal coliform
levels which corr sP'P, nd to. the pres nce of transient b1' ats, especially
on the weekends a d during the summ r when usage is hi h. 400 to 500
transient boats u ed'Ludlow Bay las summer.
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Page 3:
It was computed i
were equivalent t
and predicted tha
transient boats.
the tudy that t e fecal coliform levels found
42 t ansient boa s dumping raw sewage in the bay
half of the leve s of fecal coliform are due to
Shellfish: The s udy r ported that
effect on shellfi h but there were
because the stand rd fo shellfish
of Social and Hea th Services, while
Department of Eco ogy. ITwo summer
they did not meet the FIDA guideline
Other inconsisten ies i
lack of sampling, lock
the summer.
Mitch concluded h
this project are
the bay and 2) Ar
mitigative measur
2) Institute an e
Club regulations.
The Planning Dep~
mental checklist~
Jefferson County
State Department
Rampton Harvey,
Leonard Peterson
Jim & Colleen Hu
Two letters from
14 letters from
that they are
The Seattle Yach
Checklist.
In response to Co
Mr. Leonard Peter
Meydenbauer Bay Y
on the holidays.
Mr. Robert Sylvest
of the Seattle Yac
there were three 0
proposal present b
property was need
consultant was hir
put on hold becaus
On November 16, 19
needed to indicate
the Club replied 0
The application wa
between the Club a
EIS was due after
was cancelled. Th
ject because they
are waiting to fin
Development.
Outstations are ne
members a place to
Seat~le Yacht Club
anotHer. The othe
proj ct. The Club
juni r members, sp
stat members. Mr
used by commercial
that a Yacht Club
He a so invited th
that they are good
s sum
) Wil
the
s are
fecti
fecal coliform levels have an
nconsistencies in the report
re regulated by the Department
water quality is regulated by
amples of shellfish show that
for levels of fecal coliform.
the report as noted by DOE, were due to
f sampling tations and lack of sampling during
ary noting
the projec
atch Club r
proposed:
e system of
hat the two major issues regarding
increase the number of boats in
les enforcable? The following
) Fence the upland perimeter and
enforcement of the Seattle Yatch
received th following comments on the environ-
ort L
Port
tley,
Prote
eighb
good
Club
Department proposal addresses their concerns.
logy: pote tial to increase number of boaters
in b y and the County should consider
the mpact on water quality.
dlow: SUPPilrts project.
Ludlow: opp sed to project.
Port Ludlow opposed
t Ludlow Ba Committee: opposed
rs of Seatt e Yacht Club outstations noting
eighbors.
presented a Addendum to the the Environmental
ner Denniso 's inquiry, Mitch Press noted that
etter advis.d that up to 90 boats use the
ub facility adjacent to this proposed project,
bauer Bay Y cht Club has 400 members.
irman of th Port Ludlow Outstation Committee
spoke on b half of the project, noting that
mbers of th s committee present. The 1979
eattle Yach Club was dropped because more
sequently a other lot was purchased. In 1983 a
repare an E I.S. but the whole project was
e Club's fi ancial situation at the time.
Planning De artment advised that the Club
it's ntentions w th regard to that application and
11/3 /83 that th application was to be kept current.
drop ed again wh n there was a misunderstanding
d the Planning De,artment about the date the draft
hich he Club was advised that their application
elub is nowmakiig application for this modest pro-
ant t show that hey can be good neighbors and
out f they can btain water from the Port Ludlow
ded b the Club,
get a hore to str
has s x outstatio
outs ations are
has 1 200 active
uses r retired s
Sylv ste~ furth
and p easure boat
hbuld be one of t
Boar to visit 0
neigh ors.
!VOl
r. Sylvester continued, to allow
tch their legs and walk their pets.
s currently and lease space at
ore substantial than the Port Ludlow
embers with a total of 2,200 including
ouses, honorary members and out of
r noted that Ludlow Bay has been
rs for over 100 years and he feels
e primary users of the shoreline.
e of the Club's outstations to see
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Minutes, Week of May 20, 1 85
Page 4:
Bob Scarf another me
Ludlow site is the 0
Club has, and that i
noted that the Seatt
pride themselves On
yearbook given to me
rules that are parti
going to pass a comp
to follow.
ber 0
ly ma
why
e Yac
good
bers
ular
aint
the Seattle Yacht Club advised that the Port
or outstation that the MeydenbauerBay Yacht
o many boats use it at one time. He further
t Club polices their club member boats and
reputation. Outstation rules are in the
nd are also posted. Each outstation also have
o that station. The Board of the Club is
rocedurepolicy so there is a regular procedure
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Chuck Herzer a res,id the southeast shore of Ludlow Bay commented
on the relationship application to maintenance of the environ-
ment from a politica point:
* This applicatio prov'des not guarantee that things will not
be changed in: t e fut re. The County may need to go to some
extreme measure such s incorporating these things in a prop~
erty deed or so e ins rument that has the same effect to
guarantee that his i the end of the line.
* Item #50 on the check ist avoids the fact of compatability
with existin~ s'tuati n and this project should not be accepted
on the basis bf that ne item. Land use whould be addressed
thoroughl y . .
* Therequireme~t on t is project would be without merit unless
there is specif'c iderttification of who or what responsible so
that the County has s me recourse since approval of this project
'would be granti gap iviledge.
* A comprehensi~e envir nmental impact statement should be required
to correct the 'nadeq acies in this application.
* The same rules hould be applied to this project as have been
applied to proj ct in the past.
AnTI Quantock introdu
Committee and made t
* The committee d
further develop
long term devel
* The committee d
to the bay. .
* It was noted :in the c ecklist that the Yacht Club did not expect
to use any pUrbl'c ser ices, but the County should be prepared to
provide them be ause Jast experience has shown that boats have'
burned or explo edan5 people have had heart attacks in the marina
and on boats in. the h rbor.
* Water Quality,: The d aft water quality study indicates severe impact
on shellfish ,in this ay. The Committee believes that there is a
problem with wa er qu lity without any additional boats or sewage
discharge in ;th bay. The beaches are used by sports harvesters of
shellfish andi c ntami ation of shellfish will be a concern of this
County. ShellFsh ar considered a first indicator of a water
quality problem. The are a signal that the bay is in trouble.
self as an officer in the Protect Ludlow Bay
owing points:
ieve that the Seattle Yacht Club intends to
roperty, and the County should consider any
planned for this property.
ieve that this project will bring more bqats
The Yacht Club would
but Mr. Sylvester ad
on how the Club woUl
possibly set up a re
180' of moorage spac
boats that cameafte
a boat breaks the ru
added. '
use t e 4 bouys on a first come, first served basis,
ised 'n answer to CQmmissioner Dennison's question
cont 01 the use of thesebouys, that the Club ,could
ervat on system for the bouys. The Club leases
at t e Port Ludlow Marina to help take care of
the ouys were full. There is no way to know if
e aga'nst pumping its waste into the bay, Mr. Sylvester
Commissioner Brown a. ked i
want a larger faci~i y at
that the Club has no such
the only use that ith" s sit
of the site would de end 0
the member would wan at a
any future develop~e t of
before it could prbc, ed.
Chairman Pitts asked
boats that are anc~o
these members woul~ .
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it is reasonable to assume that the Club will
his site in the future? Mr. Sylvester answered
lans, but. he :could not say that this will be
is used for ,in the future. Furtherdevelopment
the financial condition of treclub and what
future time. Mr. Scarff reminded the Board that
he site would have to ha e their permission
re were any Club,rules a d regulations for
the Bay, to which Mr. Sylvester replied that
wed to_A~~nga ding3Y to shore to exercise pets.
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Week of May
Com issionerBrown m
to table this matter
presented and obtain
mak a determination
Chairman Pitts direc
on hen the finalre
y Arnett, Chairm
ittee added the
ook for real est
there are only
Whe Mr. Sylvester a,
vis'ting one of thei
tha his main concer
and deteriorate the
the rfacilities bec
car of their facili
issioner Brown m
Lead Agency Stat
issioner Denniso
est for temporar
as een requ1re
Jacob Miller Roa
sign was not.in
motorist inform
and Breakfast In
part of the Act
hat date. The A
ent sign where l'
28, even though
ic Highways Act.
issioner Brown m
rtising sign for
ctor. Commissio
the Planning Di
the suggestion
ement of a blue
Mr. Brink has alread
and estimates that a
by 30 foot parcel.
tter from Randy
th Department re
purpose stated d
ge to be install
tated by the Hea
size does not me
, the 100 foot
o record of an a
Determination 0
1 have to go bef
thDepartment ap
1985
ved and Commissioner Dennison seconded the motion
o allow the Board time to assimilate the information
ny additional information th yfeel necessary to
d the Planning Department to pursue any information
sed water quality study will be available.
the Seattle Yacht Club 0 tstation Acquisition
nal comment that the Club has an ongoing committee
e in the State all year aro nd, and emphasized
200 active Club members. Th re is a lid on member-
ed if any of the Board membe s were interested in
other outstations, Commissio er Dennison advised
is how much it takes to over burden the Bay
ter quality, not how well the Club takes care of
se he has heard that the Yac t Club takes excellent
es.
Quilcene Assembly of God: Rachel Nathanson
to construct a, square oot church building
ner of Bowen and Washington Streets. There are
proval suggested as part of t e binding site plan.
ed to issue a Determination of Non-Significance
for the Quilcene Assembly of God Church project.
seconded the motion.
sign: Arcadia Country Inn: e Arcadia Country
to remove t eir sign at' ,t e corner/of Highway 20
Extention (near Johnson Equip ent Rentals) because
mpliance with the State Scenic Highways Act. The
ional sign used by the State ill not be allowed for
with less than 12 units before July 28, 1985 since
allow this was just changed and will become effective
adia Country Inn would like permission to leave the
is until the blue State sign can be installed after
his sign is still not in compliance with the State
ed to deny the request for the placement of the
rcadia County Inn as recomme ded by the Planning
r Dennison seconded the motio. The Board directed
ctor advise Arcadia Country I n of this action,
at they may consider an application for early'
torist information sign.
nation: Darrell Brink SDP A 'plication #SH5-85;
e r1n s proposa 1S to I a 1 a. acre
'ch is located approximatel~ five miles south of
argaret Street and Squamish H rbor), to reduce
rty in preparation for the co struction of a single
h Press, Associate Planner Ire orted.
installed 750 cubic yards o!f fill (mostly sand)
ther 250 cubic yards is nee:de to, cover the 55 foot,
he fill is behind an existipg bulkhead.
rant, Director of Environment 1 Health for the
mmends that this landfill n;ot be approved for
to State regulations which, d not allow on-site
in landfill. Other reasons f r denial of the project
h Department are: Area of high water table, useable
the minimum lot size requi!re ents for an individual
tback required from a well ica not be met and there
roved community water syste~ in this area.
Non-Significance is issued
e the Shoreline Commission
oval.
this project it will
ultimately have
'YOl
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ESM Update;
Landis, Attorney, fr
Washington investors
garding the status 0
filed in U.S. Distri
z,ales of this court
This suit was filed
audited ESM's books,
of the federal racke
week, but it is not
case for a little wh
1985
Minutes, Week of May
Page 6:
Commissioner Brown m
and Lead Agency Stat
Dennison seconded th
to issue a Determination of Non-Significance
or Darrell Brink's, landfill proposal. Commissioner
tion.
* * *
Agreement:, Commissioner! Brown m
con e t e motion to apprpve the
ented by the Key City Players.
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ved and
ental agreement
on Tuesda.y
The
morning with
recessed on Monday and
embers present.
Coutrou~is, Att rneys: Jim
he law firmihire to purs~e litig tion or the
ESM gave th~ following uppate to the Board re-
e matter~ Mr. Landis reported th t a suit was
ourt in Fort Lauderdale last Frid y. JudgeGon-
1 hear this suit as well as the ES bankruptcy.
a'nst Alexand~r Grant, the accounti g firm that
s for violations of securities law s well as Violations
e ingstatute~ The complaibt will e served this
p cted that there will be a;Lot of a tivity on that
le. .
The main focus now,
ESM had $30 to $40 m
of the Banckruptcy T
Savings for a prefer
some of their transa
those transaction se
bring approximately
,
Landis continued, is in t~e bankrptcy court.
on in assets which are cUit":r:-ently in the position
ee. The Trustee has filed suits gainsti American
. American Savin s liqu~dated
ns early, which the Trustee has m ved tOi have
ide and if this is successful, th t actipn will
million back into the ban~ruptcy state'l
g before the Bankruptcy Jpdge, to! have h!i.m conduct
kbroker liquidation. We have jOii ed in ~hat
een set for this motion o'p Friday: May 31! to allow
n evidence and argue the mbtion. '~f the ~ankruptcy
k roker liquidation this means thatl whateV(r money
'n will be a part of a funo which ill be distributed
he claimants. It also means that: any pe sons
re automatically subordinated to 'he cla~ms of
as the municipalities. t1r. Land's adviped that
that American Savings, H]ome Stat' Savin~s,
siders" and i. therefore thel~. r claim~,. are slll bordin-
ion is succ~ssful. If t~~t argu' ent is successful
will be the! claimants a~p they w,'ll be ~laiming
illion. If the preferencir mo~ionl does nbt prevail,
e made on a fl,1,. nd of about $!4. 0 m1lli. n. il
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st Alexander Grant, which!' has an i. nsuranpe policy
190 million,....aft. er diSCUsil~ions. W.ii. h attojrney. s
Counsel for Alexander Grant, 1t s safe! to say
e in beginning discussions'!: of sett' ement. i Mr.
p rsonal view! is that the a,t:torneys[ for Al~xander
e iminate the claims of the:1 municip lities! and
i s of American Savings andil! Home Sti te sav~.ngs,
1 ed and they.qave some defenses ag'inst t em that
a' nst the municipalities. IIf the m tter c, n proceed
d tion the job will be easiit=r for, 0, r attorneys
. i gthe claim~ of the "insilpers". 'f that: motion
1 ims of the "insiders" co~~d still! be subprdinated,
proven thatithey engaged !!in inequ'table ~onduct
t that they'are."insidersr, which: can prpbably
oker liquidation. motion g.I''r. anted .i: wouldi. make
ld also cre~te the commonl fund ou, of wh~chall
as opposed to another sit~ation w, ere you might
tance where one . municipall~ties se' uritieb were
rd Trust and anothers werle all se t backi to the
stance, if you are just d~aiming , gainstl those
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There is a motion pe
the bankruptcy as a
motion. A hearing h
the attorneys to pre
is conducted as a st
the Trustee can gath
on a pro rata basis
found to be "insider '
the other customers
our attorneys will a
Warner and othe~ are
ated to ours, if the
then the municipalit
on a fund of about $
then the claims will
Regarding the suit a
in the amount of abo.
who have talked with.
that they are intere
Landis noted that hi
Grant would prefer t
concentrate on the c
where far more is in
they might not have
as a stockbroker liq
in terms of subordin
does not prevail the
but it would have to
as well as provirg the
be done. If the sto
things easier and it
the claimants can cl
of the futuito s cir
all liquidated by Br
Trustee. In t at cii
Minutes, Week of Ma , 20, 1985
Page 7:
tJer migh recovJr their
f, !!the banruptcy Itrustee.
h&res in 't ~nd Some of
r lithe oth 'r are dliminated.
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d ht wasontludJd and
t~ey repr 'seht tBatthis
~~o~U~d ai ~.~~~ ~~:eP~6~
y~inform~ :iop noJ aV,a, iI, able
f~icult c ise! and !2) there
e~' York, 'il~d b~ Dolphene
"la,iming It,h~, t, bQ, liqui" dati g
hem, an' then ~heyate
rlhe amou ,t of a~out, a
ent,an: they',*e gon~
d :ne much !ini the.lbank-I
. II If the Pteva~l on .
f~t from ,':,~,,' 1. and lean. gO,
a!!good po i1tlon ~o h~ve
u~ities B :ad~ord iliquidated
\ft"ariOus 'ntl,'tie~' in Washington
~twill 'e theaHerto
fJ:thiS su 'It. ! i
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u,ty, he !dv~sedlthat
i~' point 'nd hav~ng the
o~her bec us~ he.!has a.
g~,l,th,eor,!, preVaJJlS". tl;1en
~easons ra~forcJ; has
y~'motion jails t~ena
oproce id,!whidh probably
ply to etl ano~herdeep
iqk 'some ioney irltoth~
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h~t the m ireltha~ the bank-
o~sas ge Iting tlie $40,
d Ir Grant" fbr $25 or'.
e i,tate, t lat, all Imun,id, pal
a I they p It tn. !lf .the
A, )',eXander !Gr~ nt <9jnd ,0" ,th" ers,
c)! and wh it ever aimounts
ference. ! At th:Us point
o~larplu I i~ter~st and
f~nds. W !renot lat this
a9! has be in invesited by
d iiif thin Is ~on: ~. go wyll
h~",t ",type if ~..,ec1"s:,1,o"n...w1"ll
n itinten iion of !compro-
hat you !wO\lld !lave ,
areement i and whatever
sj1conc 1 ud !d Tj'1r. ~andf s 1
yquestio is. I I
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his? ! i i
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onded: that Warner did wind down is translactions
as fi ed suit against Alexander G . , lithe same types
ve. . lexanderGrant has some df pses ag iin~tW~rner
have against municipalities. r.1 Dusen ias i on t1heBoard
and L an so there's alot of ins da,r activ'!ty. goinlg on, .
feels that they will be able to s~ow that IMr ~ Waxjner had
of m.ch of' this ~ell before others.a d,lithat he ~cted '~~ t~at
to h sown! benef1t and to the detr1m n of oth Irs~' Thj1s1s
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securities, the one
entire amount, depe
This would bring it
the fortuitous even
ould get nothing and the
ing on the determination
11 together and everyone
that can penalize one ov
An evaluation of th situation has been done a
discussed with Couns: 1 for all the people that
is the best wa to - the stockbroker liquid
ceeding on that basi" Bradfort Trust has not
a couple of reasons:1 1) Based on current sketc
regarding Bradford ust, it would be a very d
is a suit pending i the southern district of
County, Pennsylvani, for conversion. They ar
the securities invoL ed, that Bradford converte
seeking the proceeds They had one Jennymae i
million dollars, an that was their total invo'
after that thr ugh ad ford and haven't really
ruptcy court a d the Ire on a fairly fast trac
their legal th oryt en all the rest of us ben
into court, make our laims, and we would be in
the court allo our laim and then whatever se
that were secu itiesl that were purchased by th
we could sue f r co ersion." In terms of cost
see if this suit pre ails than to go in ahead
In discussion
he doesn't wan
possibility of
Judge that is
we can take th
not been ued
decision ill
will be d ne i
pocket in 0 th
ultimate ettl
Mr. Landi $ con
ruptcy esfate
million b ck f
$30 milli n ca
claimants woul
Trus,tee d<besn'
whomever they
they woul kic
otlrposit on i
attorney' fee
point eve wil
the munic pali
in court n so
have to b con
mising be ond
made had ou g
costs are asso
update af er w
j Commissio er
Mr. Landi
early, bu
of claims
that they
of his Sa
and Mr.L
knowledge
knowledge
ith t
alot,
trans
oving'
bene
y us
ave t.
this
game
ment.
e attorney for Dolphene C
of suits being filed at t
er from one district to a
the suit along. If his 1
it of it and those are th
et. If the Dolphene ,Coun
be, made on whether or no
motion is unsuccessful, i
and hopefully they would
inued. that it is their feeling
an be! enhanced through such act
om Am: rcian Savings, then Alexa
come' in and have enough in the
poss'bly be able to get back w
get he $40 million back, then
ight , e (Bradford Securities, e
in Wi uld have to make up the d
that' we want 100 cents on the
asso. iated with recovering the
ing t discuss discounts from w
ies. At some point down the ro
e of . he legal positions, then
idere. At this point there is
ettin what's been invested plu
ne th ough with the repurchased
iated with collecting this. Th
ichh asked if the Board had a
t~Warner implicated i
~'VOl
Ii fACt
~i. 1512
"~
..-
~i
Min~tes, eek of Ma 20, 1985
Page 8:
- why it is be
lit~gatio ef
that; t,heymay
wou~d just as
pos~ible ssu
Comclissio er
ieved
orts
have
soon
ing t
Not&ing i
district
"h ' h
1n t at aea, so t
is riot setle and
2~ ~o 3 y1ats. The
lit~gatio . ag inst
that theetu ning
it would,h<;>w ver,
at rfisk. lit ink i
by ~he bakru tcy t
think abo~t.i at s
wou~d be tnean'ngful
cei~ing afY m ney i
Comrriissioer itts:
and<:also oss of in
cos~s forbor owing
That certninl is a
Under thelRep Stat
two!count~ of that .
Thene is po entia
set~ling ~ase you
th ~'s no ve y.rea
th !attor eys w1ll
Gr nt. T e's uther
a ederal a~t'on th
or ~ame s t'o fact
ar :diffe ent under
St ~e fra dia tion
Co ~t wit i~ he ne
ot be
done
How s
of the m
the ju
How m
ennis
the
s tha. '
i .
~lost a~ot of m
y! much, 9f cours
hi as y chts, etc
,
Ithe f n4s put i
:r1e nea the $325
et ennis
bJ involv
er?- talkin
at this
That
il
hat Alexanqer Grant would rather cocebtrate their
th Mr. Warqe~ and the others, becau'e :Of the taint
ich the municipalities don't have. Ttie attorneys
t out of thlis thing as fast. and ine i pe:nsively as
t the funds that were invested are 'ec,overed.
What does Jast mean? '
st, Mr. LaJdis reported. The caselad, in the souther
,s heavy du~ to the fact of the drug! triafficing cases
action agaiinst Alexander Grant, ass, ming that it
s. to be li~igated,' would p. os. SiblY. n t i.be heard. be. fore
ankruptcy ~roceeding is much fasteri but the preferen
erican Saviings is going to take som tiime and they're
ght that aSi hard as they can.. Our u'dei,rstanding. 1.'S
$40 million would not bankrupt theiSaving and Loan
ave it in ~ire financial straits, s tpey have alot
. s unlikely Ithat there will be any i tejrim distributio
.stee, but t'lhat is a possibility and lwei may want t:. 0
.e point if the distribution would b, a~ything that
i 'r if it woulld be needed. I wouldn t .,.anticiPate.. re-
this calendjar year.. I!'
;1 'm quite Rleased that you're going iafiter the mOlley
.me and attolrney's fees, but what ab uti our additional
oney in th~ interim? i
I .
item of da~age that we can include, Mri. Landis noted.
e which is !the racketeering s atute, wpich we have
our complalint, you can be aw rded reble damages.
:for that in! the litigative Go text. i When you're
,on't start ~alking about treb e dam gels, because
stic. Anot er thing not ment oned efbre is that
filing a State fraud proceed ng ag inist Alexander
district coprts have h~l~ tha theYlwi~l not hear in
State clai~s under a s1m1lar et of !ci~cumstances,
i because it! is too confusing ince he' jury charges
ederal sec~rities action thq.n under ISt~te law. This
11 be filedl"separately in the Dade!ounty Circuit
couple of !weeks. ' I:
I I
Do we ha~e a budget on the litigitibn?
: prepared y1et. Hopefully ort t !rm!budget, at
tthin a wee~ or two. I I
n after the! hearing on Friday will IOU know about
.? I
10n. i
e, of coursb, but we should h pe to hear within a
!
!
,
h money is !involved with the
!
I
i
i
i
: There's ~ big gap between
:nkruptcy anti what's missing,
these guys fade off with, is
. i
I
I
ey in the mloney and probably
, they also Ilived very highly.
f the peoPlr involved in ESM
o the bankr ptcy estate, but
illion that is gone.
: What rol1e to the SEC
I in trying to determine
hat a 'pe~rs to be in
he $3 5 million or
here nYI read out on
id no i make off with
The 'er~onal assets,
ave b en! liquidated
hat e tate is not any-
tors
rs?
!
Ilay in this now?
,
i
.with the SEe and it is our ho
:aring that lit should proceed
's to be cle,ared through certa
!
I 'VOl, 11 rACE,
i i
i I
e tha they will take
i .
S a sockbroker
n cha inels and they
Minutes,
Page 9:
have to 1
position
Trustee i
meeting h
in any wa
whatever
inves~iga
as securi
oR at the
e~e, but
goi g to
ld with t
the can
nfor atio,
ing and t
ies fraud,
itts: I
I
Commissio
Repre'sent
that migh
A cOIlgres
our rqotio
Victor Di
what happ ns
The n..ext L.te.p would
and the Ptefe ence '
another $ o 'million
whole proeJdings t
stockbrok r:liquida
that Amer can Savin
If the pr cee ings
to prove hat they i
would req ire more
;~o, 1985
ialmifications on
.: i !are encouraged
, ,aike that positi
:m since the cas
,at leas t on the
ioir help they ca
,yexpect to iret
i\ofire fraud, and
,
other ases ,if they take that
,
tha t t ey, will. Mr. T~we the
n. Th SECindicated"in the one
start d, they are wil~ing to help
local evelto providelus with
. The U.S. Attorney'siOffice is
rn ind_ ctments for such things
mail f aud. '
i
,
'Immediately aft r this happened we con~acted our
there any polit'cal av nue that we might take now
i~ffect on the S C? !
~t that theSEC
qkbroker liquid
niing the
r favorably, jo~ning in
ouldn't hurt. '
quidation motio? is successful,
e to move to rdinat
aim againstAme cian S
d the bankruptc estat
.~ a longer peri d of t
, iqn motion is th tall
!,' et aI, ar~ in iders
,not go as a st ockbro
e insiders and _hat th
'~ort.
the claims of the insiders,
vings, that would add
, is what will make the
me. iThe benefit of the
hat needs to be: proved is,
nd they are then subordinated.
er liquidation you have
y acted inequitFbly, which
:: If we can ge the S C involved, they can help,
t;?
If th'e SE
that we a
the type
would go
should pr
Commissio
that as t
.cometo 0
be compen
our ePlplo
thosei oth
That is
it sets
think i
that 'We w
whatth1s
we ar~a
action. n
and the T
securit e
sition in the b
,and members of
itJ should prqcee
In. convincing th
,
So as I underst
oceeds and if a
iof the three c
siing services t
ing days, but w
nkrupt
the ge
as a
judge
nd it
settle
unties
our c
certa
'ike some enumer tion 0
iback on, the a di tion
~se of this, to be abl
~ldbe talked a out.
. From the :ver begin
a:bout what -We s y beca
n;y number of th'ngs th
Do you have 'any commen
:doblem here '!in ur int
qmmunications a d with
aisons we filed
~ened and the p
. i~or you to '1"eme
:in the purchas
t which is con
si ockbrokerliq
ic nsistent with
t d pursuant to
in. money to som
..
t vot.
his co
sition
ber th
and s
istent
idatio
the la
that i
body.
11 rAtE
y court, as a ~olicy matter,
eralpublic andi this is
tockbroker liqu~dation that
that this is th~ way it
hat is going to: happen is
ent is offered, you will
and there is nOI way we will
mmunity and that some of
nly can be comp~nsated for
the iservices that theJ: ·
1 exp.enses that. the Co 1'.ntY
to plug that ipto any kind
, ., !
,
ing,we have been told
se there be ser~ices 0
t we ,might say might p ss:Lbly
s on .that, because tha
roffice communications land
the community a~ well? I'
, i'. I
Plain..t when we d,. id...becjuse.
that we are taking. .~. .
t, it is our po~dtion, i ,
Ie of securities and tHat's
with i.the legal p. ositiorl
as well as in the lOBS
of the State o~ Washi4gton
purChaSing.andi sellin,
! I
!
(I. - 1.514