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Home My WebLink About1989-103 Promissory Note-SalterDATE: November 19, 1992 TO: Patrick Caldwell City of Ashland City Attorney's Office 20 E. Main Ashland, OR 97520 (503) 482-3211, Ext. 59 FAX # (503) 488-5311 Jill Turner Finance Department TRANSMITTAL FORM FROM: Paul Nolte, City Attorney RE: Attached Satisfaction of Mortgage - Ron and Ann Salter, Mortgagors Regarding the above: F or your information/files P lease sign/review/comment/return Please read then forward to As you requested ] Other Comments: Attached is the original paperwork on this matter. is ready for your completion. It RONALD L. SALTER ATTORNEY AT LAW 94 THIRD STREET ASHLAND. OREGON 97520 (503) 482-5203 November 10, 1992 Jill Turner Director of Finance City of Ashland City Hall Ashland, Or 97520 Dear Jill: is my check payable to the city fo~66.45, Enclosed which I believes pays my debt in full. Also enclosed is a Satisfaction of Mortgage. After it is executed please return it along with the original Mortgage and original Promissory Note marked paid. Also, either now or at tax time, please let me have a statement of the interest I have paid this year. Very truly yours, RLS/as Enclosure RONALD L. SALTER 92-38696 SATISFACTION or MORTGAGE The City of Ashland, Oregon, states that a certain mortgage bearing the date of December ~ , 1989, made and executed by RONALD L. SALTER and ANN L. SALTER, husband and wife, mortgagors, to the CITY OF ASHLAND, mortgagee, given to secure the sum of NINETEEN THOUSAND DOLLARS, ($19,000.00), recorded as Instrument Number ~- 30 ~C~.C , in the real property records of Jackson County Oregon, recorded discharged. Dated this , has been paid in full, satisfied and day of November 1992. CITY OF ASHLAND, OREGON BY: State of Oregon ) ) County of Jackson ) This instrument was acknowledged before me on /J2~'. /~ the City of Ashland, Oregon. ~ , 1992, of ' ~tary Public for Oregon My Commission expires: g/'- ~-~ - ~;~/ ~JA N. A~ERMAN NOTARY PUBLIC- Oi(EGON I My Commission ~×pi~es ~/ ~ '~/66'- ] (p: forms\sat i sfac .Mor) Ashlar, Oc 97520 PROMISSORY NOTE $19,000.00 January 1, 1990 RONALD L. SALTER and ANN L. SALTER, husband and wife, promise to pay to the order of the City of Ashland, a municipal corporation of the State of Oregon, at Ashland, Oregon, the sum of NINETEEN THOUSAND DOLLARS ($19,000.00) with interest thereon at the rate of nine percent (9%) per annum from the date hereof until paid, payable as follows: The sum of $400 or more per month with the first payment due February 1, 1990 and subsequent installments on the first day of each and every month thereafter until the entire principal and interest is paid in full. If case of suit or action to enforce any rights or conditions of this agreement, and upon any appeal to a higher court, it is mutually agreed that the prevailing party in such suit or action shall be entitled to a reasonable attorney's fee as determined by the court, as against the losing party therein. · Salter Ann L. ~lter 89-30326 SECOND MORTGAGE KNOW ALL MEN BY THESE PRESENTS, that RONALD L. SALTER and ANN L. SALTER, husband and wife, Mortgagors, for and in consideration of NINETEEN THOUSAND DOLLARS ($19,000.00) to them in hand paid by the City of Ashland, a municipal corporation of the State of Oregon, the receipt of which is hereby acknowledged, does grant, sell, convey and mortgage unto the said City of Ashland and its successors and assigns, Mortgagee, all of the following described property situate and being in Jackson County, Oregon, to-wit: Lots 1, 2 and 3, Block "P", RAILROAD ADDITION, to the City of Ashland, Jackson County, Oregon. EXCEPTING THEREFROM the following: A strip of land, 15.0 feet in width, off the entire Southerly side of Lot 3, Block "P", RAILROAD ADDITION, to the City of Ashland, Jackson County, Oregon, more particularly described as follows: Beginning at the Southwest corner of Lot 3, Block "P", RAILROAD ADDITION, to the City of Ashland, Jackson County, Oregon; thence South 74° 22' East, along the Southerly line of said lot, 142.0 feet to the Southeast corner thereof; thence North 15° 38' East, along the Easterly line of said lot, 15.0 feet; thence North 74~ 22' West, parallel with the Southerly line of said lot, 142.0 feet, to the Westerly line thereof; thence South 15° 38' West along said Westerly line, 15.0 feet, to the point of beginning. This property consists of the office building and duplex at 94 Third Street, Ashland, Oregon. TO HAVE AND TO HOLD all and singular, the said premises together with the tenements, hereditaments and appurtenances unto the said City of Ashland, a municipal corporation of the State of Oregon, its successors and assigns forever. This conveyance is intended as a mortgage and is given to secure the payment, according to its terms, of a Promissory Note in the sum of NINETEEN THOUSAND DOLLARS (19,000.00) of even -1- Second Mortgage ~~/~ S9-30326 date, executed by Mortgagors to Mortgagee, a copy of said note being substantially as follows: PROMISSORY NOTE $19,000.00 January 1, 1990 RONALD L. SALTER and ANN L. SALTER, husband and wife, promise to pay to the order of the City of Ashland, a municipal corporation of the State of Oregon, at Ashland, Oregon, the sum of NINETEEN THOUSAND DOLLARS ($19,000.00) with interest thereon at the rate of nine percent (9%) per annum from the date hereof until paid, payable as follows: The sum of $400 or more per month with the first payment due February' 1, 1990 and subsequent installments on the first day of each and every month thereafter until the entire principal and interest is paid in full. If case of suit or action to enforce any rights or conditions of this agreement, and upon any appeal to a higher court, it is mutually agreed that the prevailing party in such suit or action shall be entitled to a reasonable attorney's fee as determined by the court, as against the losing party therein. Ronald L. Salter Ann L. Salter Mortgagors hereby covenant and agree to pay all taxes, assessments and public charges that may be levied against he above described real property on or before the due date thereof, and shall not suffer or permit any of said assessments or charges to become delinquent. Should Mortgagors at any time fail to pay any part of the principal or interest of the within mentioned Note promptly when the same shall become due and payable, or fail to perform all and singular the covenants and conditions herein mentioned, -2- Second Mortgage S9-30326 the whole sum of money hereby secured shall become due and collectable following thirty (30) days written notice of such default given to the Mortgagors and at the option of the Mortgagee, and this Mortgage may thereupon be foreclosed for the whole sum of said money, interest, attorney's fees and costs without further notice. In the event the within Note is paid strictly in accordance with its terms, then this conveyance shall be VOID, otherwise, it shall remain in full force and effect. It is further agreed that in case of suit or action to enforce any right to foreclose this agreement and upon any appeal to a higher court, it is mutually agreed that the prevailing party in such suit or action shall be entitled to a reasonable attorney's fee as determined by the court, as against the losing party therein. IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of December, 1989. Jackson CounT, Omgo' Reco:~ded OFFICIAL RECORDS ~THLEEN S. BECKET'~ :SS. County of Oackson ) ' Salter A~r~L ~'. -S~ 1 t er Personally appeared the above named RONALD L. SALTER and ANN L. SALTER, husband and wife, and acknowledged the foregoing instrument to be Before me: their voluntary act and deed. Notary Public for oregon My commission expires -3- Second Mortgage SETTLEMENT OF DISPUTED CLAIMS THIS AGREEMENT, made this ~--~ day of December, 1989 by and between the City of Ashland, Oregon, a municipal corporation of the State of Oregon, hereinafter referred to as "Employer", and Ronald L. Salter, hereinafter referred to as "Employee": RECITALS: Whereas Employee has been the attorney for the Employer since January 4, 1971. Whereas certain claims have arisen as to Employee's being entitled to retirement benefits as being a member of the Public Employees Retirement System as of six full calender months after his original date of employment. Whereas Employer claims that the Employee as its attorney should have notified it earlier as to his claim for being entitled to membership in the Public Employees Retirement System and as the result of such lack of early notification, it claims it has been monetarily damaged. Whereas by settling these disputed claims, it is the intention of the parties that the employment relation between Employer and Employee that has existed since January 4, 1971 be changed only as it is expressly set forth herein. Whereas the parties hereto wish to settle the various claims, and in regard thereto it is understood and agreed that this settlement is the compromise of doubtful and disputed claims, and that the payment and agreement contained herein are not to be construed as admissions of liability on the part of either party and this settlement is intended to avoid litigation and to purchase peace in the premises. NOW, THEREFORE, based on the foregoing recitals, the truth of which is hereby admitted, and upon the promises and agreements contained herein, the parties do agree as follows: EMPLOYER AGREES: 1) The Employer does hereby acknowledge the Employee as being its Employee for all purposes since January 4, 1971. It shall cover the Employee and enroll the Employee in the Public Employees Retirement System (PERS) as of Employee's entitlement date which would be six full months after January 4, 1971 as set forth in the rules of PERS. This enrollment will cover all compensation paid by Employer to Employee, including both salary and compensation for extra legal services as of Employee's entitlement date which would be in 1971, but excepting only office allowance and cost reimbursements. This obligation shall commence as of Employee's entitlement date pursuant to the rules of PERS and until the severance of the Employee-Employer relationship at an undetermined time in the future. In addition, effective January 1, 1990, salary and compensation for extra legal services .paid by Employer to Employee, will be subject to the standard city employee withholdings for SAIF, PERS, Social Security and income tax withholdings. The retroactive payments will cover only employee compensation including salary and compensation for extra legal service. 2) Employee will continue to be entitled to and receive all of the Employer's present employee benefits as they now exist which include health, dental and life insurance (limited to $1,000) but do not include paid leave benefits or their accrual under the terms of this settlement. Employee will continue to receive his existing benefits for health and dental insurance as they may be adjusted for department heads. Employee previously took leave without a reduction in his monthly salary and may continue to do so with Employer's reasonable consent. 3) Employer acknowledges Employee as its employee as of January 4, 1971 and that Employee is a "for cause" employee with respect to employment law, and this status will continue at least through December 31, 1990, or if the Employee chooses by December 1, 1990 to purchase PERS compensation for the period from January to July 1971, then until Employee shall have 20 years of service with respect to his coverage by PERS. This is not to put an obligation on Employee to continue his employment for any definite period of time. 4) When the Employee ceases to be employed by the Employer, the Employer will make available to him, at Employer's cost, health and dental insurance comparable to that for Employer's department heads, but at Employee's expense, paid monthly in advance. This coverage will continue so long as the Employee makes the monthly payments in a timely manner and until he reaches the age 65 or dies, whichever first occurs. 5) The Employer agrees to do all things reasonably necessary to enroll the Employee in PERS as though he had been enrolled in the normal course of business in 1971. This shall include paying to PERS whatever sums it determines are due from both the Employer and Employee with respect to this establishment in PERS. 6) Employer hereby releases any and all claims it may have against Employee arising from Employee's failure to fully and timely advise Employer of Employer's obligation to treat Employee as an employee. EMPLOYEE AGREES: 1) To pay to the Employer $32,000.00 with this to be the total and maximum obligation of the Employee to establish him in PERS as set forth above. This sum consists of $22,851.63 as the settlement between the parties with respect to the Employer's allegation and assertion that the Employee is indebted to it for his alleged negligence as set forth above and in settlement Employer's claim in this regard. The balance of $9,148.36 is the amount that the Employer has determined as being the Employee's share of monies due to PERS to enroll the Employee as set forth above. The receipts of monies by the Employer is to be allocated first towards interest, then towards .the sum of $22,851.63 until that amount is paid in full and then towards the remaining indebtedness due under this agreement. This $32,000.00 is payable as follows: Thirteen thousand dollars ($13,000.00) in cash within 30 days of the signing of this agreement by the Mayor and City Recorder for the Employe~. The Balance of $19,000.00 to bear interest at the rate of 9% per annum from the date this agreement and to be payable in monthly installments of $400 or more starting on January 1, 1990 and on the first day of each and every month thereafter until the full amount of interest and principal is paid. 2) Employee is to give a second mortgage on property owned by him and/or his wife to secure this indebtedness. 3) Employee hereby release Employer from any and all claims arising from this designation of Employee as an employee including but not limited to Employer's failure to withhold for income or social security taxes or to pay worker's compensation. MISCELLANEOUS 1) It is understood and agreed that each party is relying upon it or his own belief and knowledge of the nature, extent, effect, and duration of the liabilities incurred herein; and the Employer is relying upon the consultation and advice of its attorney in this matter, Keith Martin. 2) The obligation to provide health and dental insurance will continue after the Employee is no longer employed by the Employer and until Employee reaches age 65 or dies whichever comes first; provided, Employee makes timely monthly payments as required in paragraph 4 under Employer agrees. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year last above written. City of Ashland a Municipal Corporation Mayor, ~a~h~ Golden City Recorder, Nan Franklin / R~Snald Lo Salter RDNALD L. SALTER ATTORNEY AT LAW 94 THIRD STREET ASHLAND, nRE~DN ~J?S2D {503) 482o4215 November 30, 1989 Ms. Jill Turner Finance Director City Hall Ashland, Oregon 97520 Dear Jill: In accord with Keith Martin's request, enclosed are two copies of the settlement agreement, both signed by me. They are exactly as presented before except as item number 2 under miscellaneous has had added to it the words requested by Keith. It is understood that you will then have this on the agenda ~or the next Council meeting. For Keith Martin's files, I have sending to him a copy of this letter as well as a copy of the final draft of the agreement. Very truly yours, RONALD~L. sALTER RLS:gmf Enclosure cc: Keith Martin