Cloverdale accepts settlement on Midway Motel

CLOVERDALE -- The Cloverdale Town Council accepted a settlement of $1,000 on litigation related to an unpaid utility bill in the amount of $3,046.29 on the former Midway Motel at 2007 N. Main St. in special meeting on Tuesday.

"My recommendation is that you take the money and run," attorney Allan Yackey said. "You'll spend a lot more money (by going to court), and the possibility is that this lawyer is known for taking things up on appeal. I'd be happy to take this to the nth degree, but my suggestion is that you walk away from it."

The offer would be delivered from certified funds by Friday and is meant to avoid a trial set for Monday. The other options, Yackey said, were to either make a counteroffer or go to the trial.

Gary Bennington made the motion to accept the offer at $1,000, which was seconded by Vice President Don Sublett.

In other developments:

-- The council accepted a new municipal insurance policy from First National Insurance Services.

Andrew O'Hair represented his company in a short presentation, detailing how the new policy is different and what other improvements the council could add to it. He also said that the policy will save the town $6,000.

-- The council was introduced to Ordinance 2016-11 "Flood Hazard Areas for the Town of Cloverdale," an update on previous state law that the council must pass by Aug. 15. Near the beginning of the meeting, Bennington made a motion to remove the ordinance and Ordinance 2016-12 from the agenda, saying that they needed further study before a final vote.

Yackey advised that such ordinances are usually introduced in a special meeting but voted on in a later meeting to allow the public time to consider them. Bennington sustained his original motion, but was not seconded. Discussion and a final vote is set for Aug. 9.

In addition to designating flood hazard areas, the ordinance prohibits construction that will increase flood hazards and provides flood insurance for the town's buildings and their contents.

-- The council was also introduced to Ordinance 2016-12 "Amending Ordinance 2006-12 Rainy Day Fund".

"This is something that came out of the State Board of Accounts," Yackey said. "They're trying to be helpful here, to give the town more options for sources of revenue for the matching funds for the Stardust Road grant that you've been told you have a high probability of getting. What we did in the process of doing that was, although the town has indicated certain funds could be used, we've done the maximum that could be done with the State Board of Accounts to give you the maximum flexibility for whatever funds are out there."

Discussion and a final vote is set for Aug. 9.

-- In answer to a question from Bennington, Yackey said that all ordinances, once adopted by the council, only require the signature of the president but that all members could sign ordinances if they wished. Bennington said that all members should sign every ordinance, and the council resolved to do so.

The regular meeting of the Cloverdale Town Council is set for 7 p.m. Tuesday, Aug. 9 in the Cloverdale Town Hall.