87-1351 WHITE - CITV CLERK
PINK - FINANCE G I TY O F SA I NT PA LT L Council �1, �s�
CANARV - OEPARTMENT
BLUE - MAVOR File NO. a
Council Re�olution �
Presented By � �
Referred To Committee: Date
Out of Committee By Date
RESOLVED, That the proper City officials are hereby
authorized and directed to enter into an Agreement between
the Port Authority, the City of Saint Paul , and Minnesota
Harbor Services , Inc . , for leasing space to fleet and moor
barges along the Mississippi River.
COUNCILMEN Requested by Department of: '
Yeas Drew Nays
'�''°°"trr �Q_ In Favor �
Rettman ,
Scheibel /�
So�nen v __ Against '
�.YtiYiY��/�/4"
Wilson �+�p
V!Gr � 5 �8� Form proved by City �
Adopted by Council: Date
G
Certified Passe by Council Secretary BY
g�,
,� - � � � Approve by ayor Eor Sub ' io to Co
A►pprov y Ylavor: Dat �
B
- PUl�I.ISNE.D S t P 2 6 1987
� � �i�� �,�i,�s� .
.N° 010080 �
Community SerYi.ceS DEPI1�tTlSENT -
o e r r a m CONTACT IQAME
P�IOI�E
DATE
ASSIGN NUMBER FOR ROtTTING ORDER: (See reverse side.) �
1 �
� Department Director 3 Mayor (or Assistant)
_ Finance and l�anagement Services Director _ City Clerk
�'�Budget Director
�i'Citp Attorney _
TOTAL NUMBER OF SIGNATURE PAGES: � (Clip all locations for sigi►ature.)
WHAT WILL BE ACHIEVED B�' TAKING-ACTION ON THE ATTACHED MATERI ?S? (Purpose/Rationale)
�
Authorize Lease Agreement w�th Minnesota Har6or Services , Port
Autf�ority, and City to allow Minnesota Har6or Services to fleet and
moor barges along the Mississippi River upriver from Harriet Island
for a ten year term�
1��
�` �\ � RECEIVEp �
�OST�BEN�F7T BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED:
.. AU G ��' 1987
Monthly rental payable to City �will be $208,34 .
MAY01��{)FFICE
�INANCING SOtIRCE AND BIIDGET ACTIVITY NiJMBER CHARGED OR CREDITED:
(l�ayor's signature aot required if under $10,000.)
Total Amount of Trans�ction: �25,000 Activity Number: RECE���p
Funding Source: AU G 6 1987
ATTACHMENTS: (List and number a�l attachments.� �������E Y
Agreement RECEIVED �u� 141987
Council Resolution � .
� �u� 3 0 �ss� �ITY ATTdRNEY
AD1rIINISTRATIVE P80CEDURES
, ,
Yes X No Rules, Regulations, Procedures, or Budget Amendment required?
_Yes �No If yes, are they or timetable attached?
DEPARTMENT REVIEW CITY ATTORNEY REVIEW �
X Y �No Council reaolution required? Resolution required? ��' a �i No
X es No Insurance required? Insurance aufficisnt? �!Yes No
_Yes �No Insurance attached? �
. . o��.�_,3.�.
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MII�Il�iE.SOTA HARBOR SERVICE COIvB'ANY
Attached to and foxming part of Fred. S. James & Canpany's Certificate of
Insurance dated 7/28/87.
Insuring Conditions
Insured per underwriters standard Landing Dock/Wharfingers Legal Liability
policy.
Limit of Liability
$2,000,000 any one loss or accident
Insured Locations �
Various
Additional Named Assured
It is also understood and agreed that the Port Authority of the City of
St. Paul and the City of St. Paul are hereby named as an Additional
Named Assured as their respective interests may appear.
AUTNORIZID REPRESFNTATIVE
- � �=��-�.�,�>
:J
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FRED.S.JAMES&CO.OF MINNESOTA,INC.3001 Metro Drive,Suite 515,Minneapolis,Minnesota 55420 612854-1711
CERTIFICATE OF INSURANCE
INSURED: Minnesota Harbor Service
415 West Water Street THIS CERTIFIES THAT THE POLICY OF INSURANCE, PARTICULARS OF WHICH
St. Paul, MV 55102 ARE GIVEN BELOW, HAS BEEN ISSUED TO THE INSURED NAMED HEREIN.
TERM FROM TO
1 year 6/30/87 6/30/88
�F PROPERTY INSURED&LOCATION PERILS
L
° Various Landing Dock/Wharfingers locations of the Insured See Attached
within the 'Ibvin Cities area.
COMPANY POLICY NO. AMOUNT � �
U.S. Fire Insurance Co. 3490085601 See Attached -
(through International
Marine Undera�riters)
Additional Named Insured - See Attached
Certificate issued to: Port Authority of the City of St. Paul
345 Saint Peter Street
1900 Amhoist Tower
St. Paul, MV 55102
Attn: Richard Gierdal
THIS CERTIFICATE IS SUBJECT TO ALL THE CONDITIONS AND CLAUSES WHICH ARE N MAY HEREAFfER BE INCORPORATED
IN OR ATTACHED TO REGULAR POLICY. This cerfificate of insurance neither affi e/y nor 've ame s, alters or exiends the
coverage alforded by any policy described herein. IN THE EVENT OF THE ORIGIN POLICY IN C C LED, THIS CERTIFICATE
WILL, WITHOUT FURTHER NOTICE, BE VOID AND OF NO EFFECT.
July 28, 1987
DATE ISSUED: SIGNED:
�.
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,. ,, �,c���/3s/
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BARGE FLEETING AND MOORING AGREEMENT
THIS AGREEMENT, Made and entered into effective the lst day
of Jur,e, 1986 , by and between the PORT AUTHORTTY OF TH� CITY OF
SAINT PAUL, a public corporatior, organized and existing under the
provisions of r;innesota Statutes, Chapter 458, hereinafter called
"Authority", the CITY OF SAINT PAUL, a municipal corporatian,
hereinafter called the "City" (the Authority and tne City
hereina£ter collectively called "Lessor") , and MIhI�ESO�A HARBVF
S�RVICES , INC. , a Minnesota corporation, hereinafter ca3.led
��Company�� �
wITNESSETH :
WHEREAS , Company has submitted a proposal to Lessor
pertaining to the fleeting and mooring of barges along the
shoreline of the Mississippi River;
In consideration of the mutual covenants and agreements
herPinafter contained, the parties agree as follows:
1. Lessor does hereby lease, demise and let unto Company,
.=.ad Company does hereby hire and lease from Lessor the following
described premises (herein "Demised PreMises") , situated in the
County of Ramse� and State of Minnesota:
Tract 22 owned by the Port Authority of the City of
Saint Paul and l�ocated as marked on Exhibit A attached
hereto, together with all accretions and riparian
rights incident thereto;
An area southerly of Tract 22 owr,ed by the City
approximately 45P1 feet wide and 4!fi feet deep, together
with access over the old Chicago and North westerr,
Transportation Company Railroad tracks to hater Street
as shown on Exhibit A attached hereto;
subject to the following restrictions:
a) A11 regulations prescribed by the �.�. Coast Gu�rd, the �
U.S. Corps of Engineezs, and such other governmental or
a�ministrative bodies having juYisdiction over said
premises.
b) Com pany shall not unreasonably interfere with the
fleeting and mooring riyhts granted by Authority to
other licensees. and tenants.
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c) No gasoline, petroleum products or other explosive cr
hazardous or inflammable materials will be maored or
fleeted under the terms of this agreement unless the
hazards incident thereto are covered by the terms of
the insurance hereinafter provided for.
d) Representatives of the City and the Company will meet
and mark the ground with stakes which will be the basis
for a more precise legal description.
e) Company shall construct a sir. foot high chain Iink
fence around the perimeter of the leased premises with
the fencing type and location approved by the City.
f) All activities of Com.pany shall be within the leased
premises .
g) Company shall clean the leased premises, including the
river bank, and Company shall maintain the leased
premises free of bulk storage, trash and debris. All
materials removed from barges shall be stored in bulk
container.
h) Company shall landscape the portion of the leased
premises owned by the City in accordance with a
landscaping plan approved by the City.
i) The City may require Company to install a gate at the
main entrance to the Leasec] Premises , and the City
agrees to be mindful of costs in determining the type
and design of any such gate.
2. The term of this agreement sha°ll commence on the first
day of June, 19R6 , and shall continue for a period of ten (1P�1
years until the 31st day of May, I996 , subject to prior
t�rminatien as hereinafter provided , and subject to the
limitations and restrictions imnosed in Section I herein.
3 . In consideration of the foregoing grant, Co�npany agrees:
� a) Rent Item A: To pay Authority for the portion of the
leased premises ow7ed by �he Authority an annual rental
of Seven Thousand One r.undre� r orty-one ano 6�O/1�C .
Dollars ($7 , 141.60) , payable monthly in advance, the
first month2y payment of Five Hundred Ninety-five a:�d
14/1�C0 Dollars ($595.14) being due and payable on June
1 , 1986 . Company agrees that the rental rates
hereinabove specified are subject to adjustment and
renegotia�ion as follows:
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As soon as possible af ter January 1 of each lease year
authorized officers of Company and Authority shall meet
and make reasonable efforts to negotiate and ta agree
upon a rental rate for the next lease year commencing
June 1. The rental adjustment sha].1 be based on a
review of the Twin City Consumer Price Index - General,
the Twin City Consumer Price Index - Trans�ortation,
and the M erchants Exchange Grain Spot Market. If said
officers cannot agree upon a rental rate, either party
may request that a reappraisal of the rental value of
the premises described in No. 1 above shall be mad e by
a boazd of three (3) competent persons to be chosen for
such appraisal, one of who:n shall be selecte� by the
Authority, one by the Compan�, and the two so selected
shall select a third disinterestec3 competent me�rber.
Said board shall meet to determine the reasonable
rental value of said premises within ninety (9fc) uays
after the three ( 3) members are selected. Such
reasonable rental value shall becom e the rental payable "
under this agreement for the upcoming year. If the
decision of saia board is rendered after June 1 of any
lease pear, the current rental rate in force shall be
paid and the rate set by saia board sha7.i be
retroactive to June 1 and adjustments shall be m ade
accordingly on the first day of the month following
said board decision. The two persons selected agree
not to unreasonably withhold their consent to the
selection and appointment of the third disinterested
member. If said two persons are unable to agree upon
the select�ion of the third, the Authority or Company
may by petition with ten (1PJ) days' notice apply to the
District Court of Ramsey County, Minnesota, for the
appointment of such third person and such appointment
shall be binding upon the parties to this agreement.
b) Rent Item B: To gay to the Authority for the portion
o f the 1 ea sed pr em i s es ow ned by the C i ty an annual
zental of Two Thousand Fi•�e Hundred and tio/I�g Dollars
($2 ,5(�P1.P1f�) , payable monthly in advance, the first
monthly oayment of Two Hundred Eirht and 34/I�lPJ �ol.lars
. ($208 ,34) being due and payable on 3une 1 , 1986. � the
Authority shall by its draft pay over saic �►onthly '
. payment to the City.
c) To secure all barges with mooring lines tiEd to both
bow and stern and to operate sai� barges i;� such -
fashion as will not damage other property or
unreasonably interfere with river traffic or
transportation.
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d) To indemnify, defend and hold Lessor harmless f=om and
on account of any and all loss, injury, death, damage,
claim of damage and liability for damage to any person
or any property that may arise in any manner on 2and or
water by reason of the exercise of the rights graated
hereunder.
e) To maintain �t its expense reasonable and adequate
liability insurance, including landing owners liability
and general liability insurance against any and alI
damages because of bodily injury or death to any person
and injury to or destruction of property arising in any
manner on land or water by reason of the exercise of
the rights granted hereunder. Such insurance shall
include protection against such damages arising from
control or operation by Company as owner , bailee or
custodian of tow boats, barges or other vessels or their
cargoes. The minimum limits of such insurance shall
have combined single limits of Two Million Dollars
($2,G;��1,G41f�.�if�) for hodi ly injury and property can�age. �
Such insurance shall be evidenced by certificates fileu
with I�uthority. Lessor shall be na:r.ed as additional
insureds in . such insurance, and the certificates
required hereunder shall provide that the insurance
evidenced thereby shall not be cancelled by the
insurer except on ten (lfd) days' written notice ta tne
Autnority. The insurance limits are subject to review
and reasonable adjustment by the parties on June I of
each lease year.
f) fio install, maintain and repair at its expense all
necessary mooring facilities and any other i�provements
necessary for barge fleeting purposes and , upon
terminatior, of this agreement for any rea,son, all such
improvements necessary for barge fleeting shall,
without further act, become the property of the
Auttior i ty.
g) To pay, or cause to be paid, before penalty attaches,
all taxes, excise taxes, assessments (whether g eneral
` or special) , fees and other charges ot whatsoever
nature (whether ordinary or extrao'rdinary) , leviecz,
assessed or i �r�posed r�y Federal , State or local
authorities on the Demised Premises or the awnership
thereof or the rents received therefrom, wnich are due
and payable during the Lease Term, including any taxes �
assessed as of January 1 , 1985 , even thoug� such
date may be prior to the date of the execution of this
agreement. If at any time any such taxes ,
asssessments, fees and other charges due ar.d payabie
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during the Lease Term shall be levied by the State of
Minnesota or any political subdivisions thereof against
the Authority with respect to its interest in the
Demised Premises, or rentals payable by the Company
hereunder, the Com pany agrees to pay, or cause to be
paid when due, any and all such taxes, assessments,
f ees and other charges.
With respect to assessments for public improvements or
benefits which, by law, are payable or at the option of
the taxpayer may be paid in installments, the Company
shall pay all such installments which become due and
payable thereafter.
Nothing. contained in this agreement shall require the
Company to pay any franchise, estate, inheritance,
succession , capital levy or transfer tax of the
Authority or any incom e, excess profits or revenue tax,
payable by the Authority, under this agreement, except
to the extent hereinabove provided.
Company shall have the right and option, at any tire,
but solely at its own expense, to gay any taxes or
assessments under protest or in a simila-r mGnner and
contest the levy or amount of the same in appropriate
legal or other proceedings. This provision shall not,
however , permit Company to allow any taxes ,
assessments , fees or other charges to become
del inquent..
h) Company shall agree to cooperate with all switching and
towing companies in order to provide maximum
utilization of the fleeting area.
i ) Company shall at its expense be responsible for any
maintenance or dredging required to maintain the
fleeting area. Company shall secure all necessary
permits for the above activities.
j ) Company agrees to temporarily cease its mooring and
� . flee� ing operations to the extent necessary to
facilitate activities by a governmental agency, �
, including but not limited to, roadway, levee and bridge
repair and maintenance, at no cost to the govern mental
agency.
4 . I�f Company should fail to rer,edy an� �efault in the
payment of any sum due under this Lease or fail to ke��•p or
perform any of the other provisions, covenants, or conditions of
this Lease to be kept or performed by Company within a period of
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ten (10) days after written notice to Company specifying such
default, then and in either event, Lessor may at its option and
without limiting Lessor in the exercise of any other right or
remedy it may have on account of such default and without any
further demand or notice:
a) Declare this Lease at an end, re-enter the Leased
Premises with or without process of law, eject all
parties in possession thereof therefrom, and repossess .
and enjoy said premises together with alI additions,
alterations, and improvements thereto.
b) Cure any such default and charge the cost thereof as
additional rent to be paid forthwith by Company with
interest thereon at the Reference Rate plus two points
determined by the First Nationai Bank of Saint Paul to
its most credit-worthy borrowers.
c) Re-enter the Leased Premises, with or without process
of law , eject all parties in possession thereof
therefroa�, and without terminatinq this Lease, at an�
time and from time to time, relet the Leased Premises
or any part or parts thereof , for the account of
Company or otherwise, receive and collect the rents
therefor , applying the same �irst to the paym�nt of
such expenses as Lessor may have paid, ass�smed ar
incurred in recovering possessior, of the Leased
Premises, including but not limited to attoneys� fees
and cour� costs, and for placing the same in good order
and condition o.r preparing or altering the same for
relettinq , and all other expenses, com missions and
charges paid, assumed or incurred by Lessar in or abaut
reletting the Leased Premises , and then to the
fulfillment of the covenants of Company; but Lessor
shall not be obligated to mitigate in this or any other
manner damages accruing from any default of Company.
Any' such reletting as provided for herein may be for
the remainder of the term of this Lease or may be for a
long er or shorter period. Lessor may execute any Iease
made pursuant to the terms hereof either in its own
`_ name or in the name of Company, as Lessor may see fit,
and the sublessee so obtained by Lessor shall be under
no obligation whatsoever for the application by Lessor
of any rent collected by Lesssoz from such sublessee to
any and all sums due and owirrg or which may become due
and owing under the provisions of this Lease, nor
shall Com pany have any right or authority whatsoever to
collect any rent whatever from such sublessee. In any
case and whether or not the Leasea Pre;r�ises or any gart
thereof be relet, Co�r�pany shall pay to Lessor aIl such
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sums required to Ue paid by Company up to the time of
re-entry by Lessor, and thereafter Company shall, if
required by Lessor, pay to Lessor until the end of the
term of this Lease the equivalent of the amount of all
rent and other charges requirea to be paid by Company
under the terms of this Lease, less the avails of such
reletting during the term of this Lease, if any, after
payment of the expenses of Lessor as aforesaid, and the
same shall be due and payable on the several rent ciays
herein specified.
The remedies of Lessor as hereinabove provided are in addition to
and not exclusive of any other remedy of Lessor herein given or
which may be permitted by law. Any re-entry as provided for
herein shall be allowed by Company without hindrance, and
Lessor shall not be liable in damages for any such re-entry or he
guilty af trespass.
5. Lessor and Company hereby mutually agree as follows:
a) That Lessor shall not be liable to Company or to any
other person or persons for or on account of any
in jury, death or damaqe resulting in any manner from
the exercise of the �r,00ring and fleeting riyhts granted
hereunc3er.
b) That Lessor shall have no proprietary interest in nor
any responsibility for the actual contrcl or
maintenance of the baryes or their cargo.
c) That it is understood and agreed that all of the
provisions herein are to be construed as covenants and
agreements , as though the words importing such
covenants and agreements were used in each separate
provision hereof. It is further agreed that ali of
Company's c�venants and agreements herein contained are
conditions, and that the tim e of the performance of
each is the essence of this Agreement, and that the
strict performance of each shall be a condition
precedent to the right of Company to remain in
possession of the premises or to have this Agreem ent .
continue in effect.
d) That this Lease and the permit and authority herein
granted to the Company by the Lessor is made
specifically subject to termination and cancellation of
all rights authorized under this Agreement, said
termination and cancellation to be effective upon
thirty (3�!) days' written notice thereof to be given by
either party to the other party, and the pazties hereto
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agree that such termination an� cancellation can be
m ade without specific cause being snown or alleged by
either Lessor or Com pany and without da�ages to
either party.
e) This Lease may not be assigned by Company.
f) This Lease is =contingent upon approval by the Council
of the City of Saint Paul and the Metropolitan Council.
IN TESTIMONY WHEREOF, the parties hereto have hereunto set
their hands and seals as of the day and year first above written.
--� PORT RI Y F THE CITY OF
In he Pr� sence of• AIN A L
.
�` , . _ . .
' I s Pr ident
?
C.:v c-o��C " .�1- ,�l�i��`G�-z,� B
I Secretary
( S�AL)
In tne Presence of: I�SIhNESOTA 'riARBLR SERVICES, IL�C.
r . . �
e t� (�!a �. (/1 l� � L�_ � , $X
I S
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.�c�,. .�-Q�_.. By
" I s
( SEP.L) ,
; :
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� _ C�,r-- ���.�7
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In the Presence of: CITY GF SAI?�T PAUL
. . By . :
I ts Mayor �
By
Its Director of Finance &
Managemen�� Services
(SEAL)
Director of Community
Services
APPROVED AS T0 FORM:
�
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Asst. � ty At rney �
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STATE OF MINNESOTA )
� ) ss.
COUr:TY OF RAMSEY )
On thi s �� day of , 1987 , before me, a
Notary Public within and f said Count , personally apgeared
i /�� �� and .
to me pe`�fsonally known, who, being each by me uly sworn, did say
that they respectively are the President and the Secretary of the
PORT AUTHORITY OF THE CITY OF SAINT PAUL, the gublic corporation
named in the foregoing instrument, and that the seal affixed to
said instrument is the corporate seal of said corporation, and
that said instrument was signed and sealed on behalf of said
corporation by authority of its Board of Commissioners, and said
� / • . i�, � and
acknowl dged said instrument to be the free act and deed of said
corporation.
. •
1, JEiNEI M.OLSON
i NOTARY�Y�i�TA ��/� � �O��
nnr eor�.ncPa�a s�.�s,�s90 N o i�fa r y P u b 1 i c
11 •
STATE OF N, NESOTA ) _
) ss
C�U\TY OF � )
On thi s �day of , 1987 beiore me, a
No ary 1 ' wi t hin an d for aic? o nty, sona 1 appeared
and `
o me person lly known, who , be ' g y me ly sworn, did
say t th y respectively � anc�
th of
dne of the corp ra ons named in tl�e regoing instr e , and
that the seal aff ixed to said instrument is the corpora e seal
of said corporation, and that said instrument as siqned anc3
" sealed on behalf of s 'd�c9rp �.ion by authori �of• ' a d of
Directors, and said �� �' and .�
acknowledged said instrument o be the ee act andd deed of sai
corooration.
r , ,
„�., D.^,VI�E.GEP,P:EB
�.�-�+E�� NOTFRYP!i3LiC—A1ft�F.�;iOTA NOt3rI7 PU 11
��t.� RA.:1;3EY COUNTY
A�ty Comm.Expires 6Aay 20.1987
fl . ■
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STATE OF �jINNESOTA )
) ss.
COUNTY OF RAMSEY )
On this day of � � , 1987, before me, a
t:otary Public within and for saiu County, personally appeared
George Latimer and Eugene Schiller, to me personally known, who,
being each by me duly sworn, did say that they are respectively
the i�;ayor and the Director of Finance and Management Services of
the City of Saint Paul, the public corporation named in the
foregoing instrument , an� that the seal affixed to said
instrument is the corporate seal of the City of Saint Paul, and
that said instrument was signed and sealed on behalf of said
corporation by authority of its City Council, and said George
Latimer and Eugene Schiller acknowledgeci said instrument to be
the free act and deed of said corporation.
Notary Public
11
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