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86-943 WHITE - CITV Cl. K � PINK - FINANC COUIICIl ya CANARy - DEPART ENT GITY OF SAINT PAUL File NO. `� �_��� BLUE - MAVOR � Cou cil Resolution Presented By I Referr ld T Committee: Date Out of o ittee By Date W��, The yo , �ur�uant to Section 10.07.1 of �e City C13arter, does certify ti�at there dre avai:La�'le for ��ra�riation revenues in exccess o� those estima�ed in the 1986 budg�t; and Wi-�FtFAS, 'I�e y recorrn�et�els the foilowi.rig ci�anges to the 1986 �xadyet: Current Amer�3ed Budget Chang�s Budget FIN�NCING ------------ ------------ ------------ 00]. Genera�.I Fw � " 0200 arx;e, ��reserved Unc3 ig teel 4,400 +325,000 329,400 All r inar�ing 110,347,6�1 0 liU,347,601 110,352,001 +32S,Q00 110,f�77,001 SPEI�ING P 001 Gener � F �` Gener verru►�ent Accounts City to ney General GoveLnmerit Aecounts 09065 ud ment acxal Com�rar►ise 09065 51 Juc2gernents 15,000 +325,000 340,000 All r S�r�ding 11U,337,001 0 110,337,001 110,352,001 N+325,000 110,677,001 � NET CHANGE j +325,000 � _ RESOLVF�, t City Council approves these cYianges to the 1986 eu�get. Fi.n is ailat�le Ap�rov�I. Reco�rc ed 0 - � - ----- ��- � - ' - �'1: _ Dx r f Finance � ,�� � Budyet i tor , COUN(, LM lV Requested by Department of: Yeas Drew � Nays N"O41 I In Favor Cxty Attorney Gen�ral Government Acccwnf:s Rettm B J J ^. Scheib � �"�� � Sonne I �� _ Against Y '�t� � wilson II JUL 1 0 1986 Form prove b y Attorney Adopted by C nci : Date Certified P�s d b Coun 1 Sec ry BY ` gy, Appr v by , r Da � '`� vu� � .E ��prov d by Mayor f ission to Council , � , _ _ B PUBUSNED J U L 1 91986 � ity er ices DEPARTMENT ��/ '1�3 �jo 729 .;= Piram � CONTACT • 292-7400 � PHONE 06/25/86 DATE 1 e�� �r � ASSIGN NUMBER OR OUTING ORDER Cli All Locations for Si nature : Departmen Di ctor 5 Director of Management/Mayor � Finance a M agement Services Director � City Clerk � Budget Di ct �C�air� Finance �om� _ . _ ✓� City Atto ey WHAT WILL BE Hd VED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Payment of a ourt ordered settlement to terminate the Rationale) : operating ea e of a private contractor at the Watergate �arin�ECEIVED � �5''°'`�6�,.,�`�`P.�—�� J UN 2 ; 1986 � �t� OFFICE OF THE DlRECTOR � DEPARTMENT OF Fmq�CE �� �ANAGEMEIV� S�J�y1C£S COST/BENEFIT U ETARY AND PERSONNEL IMPACTS ANTICIPATED: A general u activity will be set up for operation of the Watergate Marina. After a b i ss plan is finalized for the marina, the Division of Parks and ftecreatio w' 1 return to Council with a proposed budget amendment for spending authority FINANCING SO CE ND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amo t f Transaction; $325,000 quired if under $10,00Q) Funding S rc : General Fund - Fund Balance . Activity mb r: 09065 ATTACHMENTS is and Number All Attachments : 1. Counc' R solution 2 , tviemo B dget Director explaining settlement (Judgement) 3. P.�emo r� yor 4. Copy " rder of Judgement" DEPARTMENT VI CITY ATTORNEY REVIEW X Yes N C ncil Resolution Required? Resolution Required? ✓Yes No Yes �N I surance Required? Insurance Sufficient? Yes No Yes X N I surance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/ � . � �;. ��- y'�3 F: � E.�: �, '+„O• . . '^�;� CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM June 0, 986 T0: Greg Blees, Budget Director FROM:i� Robert P. ira SUBJ T: Judgment for Watergate Marina I ha a tached a copy of the judgment for the Watergate Marina and the info at onal letter we forwarded to Mayor Latimer on June 16, 1986. The judg nt is a legally binding obligation and requires that the City pay Svob a oat Works, Inc. $325,000 within thirty (30) days of the judgment (Jun I13 1986) . I am requesting that the Budget Office appropriate the fund i to meet this obligation and assist us in preparing the necessary Coun �'1 esolution. We w I 1 repare the necessary "green sheet" and other documentation required for e ity Council . If you have any further questions, please feel free to c ta t me. Atta hme ts cc: j� K hy Stack li J ry Segal I . � � �— �o_�`�3 . � ,,O µ�:� • - CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM June I�6, 986 T0: Mayor George Latimer FROM: i Robert P. � SUBJE T: Watergate Marina Settlement As yo a aware, we have been involved in a lawsuit to terminate the City's agree en with Gary Svoboda for the operation of Watergate Marina. The case was t b tried in mid-May, but delays in securing a judge occurred. We final y re assigned to Judge Summers this week and negotiations to settle this at r out of court were begun. The negotiations concluded on June 12 with j gment in which the City will pay Gary Svoboda $325,000 for the - busin ss certain equipment and his improvements. The City will receive the fees ha ed to boat owners for the balance of the season. Svoboda will assis u in an orderly transition to City control . Ther I� ar two major issues here. First, we reviewed a11 of the information to d er ine whether it would be in the City's best interests to sett)e the case ut of court. The case is quite complicated and hinges on a number of cont ct al points and there was a possibility that if a jury heard the case,ith case could have gone either way. If t I� C ty lost the case, this could result in 12 more years of operation by S bo a. There was also a chance that Svoboda could be awarded subs nt al damages in addition. Both were unacceptable, especially given - his il re to live up to the terms of his contract with the City. ' Time Ias another factor. We have already experienced delays in the trial that av tied up staff. Without a settlement, it was possible that the enti t ial could be postponed to the fall session. This would continue the or conditions currently at the marina, catching the boaters in the middl o the dispute. Presently, there is no water turned on at the site, ther iar code violations that have not been rectified, the marina is still a me a d there would be no improvements at all during the delay. Overall , the ''ty s image would suffer and we would be unable to do anything until the ur case was settled. We v Iw he settlement as a positive move to resolve the problems at the mari . The judge commented when issuing the �udgment that it was fair to bothl id s. The settlement amounts to .�325,000 and involves the purchase of Svob a' work boat and a gas dock and pays for improvements to the caves and e ervice building. It also pays Svoboda to walk away without any futul 1 gal claims against the City. Thisl� ct on will permit us to move ahead with improved management of the i - Watergate/Page Two site. We intend to operate the site with City staff through the balance of the season as we address code violations and cleanup the site. We are developing a business plan and work program for the site and will be prepared to take over the site from Svoboda in mid-July as set by the settlement. If you have any questions about this matter, I'd be happy to discuss it with you. I believe that the settlement will permit us to move ahead and turn the marina into a credit for the City. cc: Kathy Stack Jerry Segal . � . � . ��_��3 . . � STA E F A9INNESOTA �� DISTRICT COURT , , - . . � CO I 'T OF RAR7S£Y SECOND JUDICIAL DLSTRICT --. . : - :_ __, Cit � of Saint Paul, . a m ' ni pal corporation of _ �EC�I�,� ORDER POR the i ta e of M innesota, � � JUDGMENT Pleintit'f JUN 18 1986 vs. I File No. 476650 Div.of Parks��e.cr�a�� Svo d s Boat Works, Inc., � a � nn ota corporation, Defendant. li T e above matter came on for trial on June 10, 1986 before the undersigned 3udge of he istrict Court. Jerome J. Segal, Assistant City Attorney, appeared on behalf oi P18 nti . Appearing on behalf of Defendant were Joseph T. O'Neill, Esq., Michael R. . O' ie Esq., and Christine L. Meuers, Esq., of the law firm of O'Neill, Burke and O'Neill, , M1 �� Lt he Court, having considered the matter, and upon stipulation between the parties en II re in open court it is hereby ORDERED . , � ( ) Defendant shall vecate the premises described as the Watergate Marina, including . -_- - � - . _ • th ad acent leased caves and surrender to plaintiff its leasehold interest,• t�hat certain - Lolle ar workboat named "Bubbles", a fueling.stetion including ihe sanitary holding tenk an p p, and all improvements to the property other than personalty and trede fixtures. . De en ant shall surrender exclusive possession of the premises to plaintiff within thirty (3 i d ys of the date of this order, provided plaintiff has complied with the terms of Pa l8g Ph 2. ) P18intiff shall pay to defendant, within thirty (30) days of the date of this order, thll s of $325,Q00. . . . . _ . � �y�_�y3 , . I� (3) There is an escrow eccount established pursuant to Temporary Injunction ordered � by I is ourt, which account is in the Shelard Nationel Bank, Saint Paul, and in which ther is on deposit the sum of $41,644.82. Pursuant to the order requiring the escrow ecc I nt funds may not be withdrawn from said escrow account except upon order of this Coul t. There is elso on file e subsequent Order of this Court sllowing funds to be wit ra n under certain circumstances. Said Orders shall remain in effect subject to the rem I ind r of this paragraph. Upon payment by Plaintiff of the sum described in paragraph 2, e onies held in said escrow account, in an amount not less than $41,644.82, shall be ai to Plaintiff, and the Shelard National Bank and Defendant are ordered to so tra fe these monies to Plaintiff. Plaintiff shall honor �the terms of all leases now exi � in between Defendant and boat owners. I� (4 Defendant retains the right to accounts receivable other than for slip rental for . 198 , d is responsible for all utility bills incurred prior to the transfer of possession. - li ( Defendant will provide plaintiff, upon transfer of possession, with a current list of I111 ersons leasing dock space� together with copies of all current leases. Defendant wil al provide plaintiff, insofar as practicable, with a list of the inventor,y customarily ke o hand for sale to customers. . i ( ) There is upon the premises s fenced area and a grey shed, whose identity and • � loc ti is known by the parties. Defendant may vse this fenced area and grgy shed for - six y ( 0) days from the date �of this order to. store equipm�nt and person�l property and to I ell the same by private sale or auction. Defendant shall thereafter remove from the pr I� is s all equipment and personal property, whether sold or unsold. After tr8nsfer of po es ion defendant may continue to use the Travelift or winch truck now on the premises, bu sh 11 pay to plaintiff thirty-five ($35) dollars per hour for each use. Ii . . . . � - . . � � � � � -��3 � . . (7) f .there is any dispute between plaintiff and defendant as to the ownership of ' any rop rty locsted on the premises, the parties shall submit the same to an arbitrator selec ed y Jerome J. Segal, Assistant City Attorney and Michael R. O'Brien, attorney for fe dant, under� the provisions of Minn. Stat. Ch. 572. � I(8) pon payment of the sum described in Paragraph 2, the parties shsll execute a mutu 1 r lease of any and ell claims against each other including, but not limited to, the unla ful detainer action now pending in the Minnesota Court of Appeals. With respect to t t a tion, the Qarties shall execute and present to the court a stipulation of dismissal. (9) ach party shall execute such deeds, bills of sale, transfers of title, and other docu en as are necessary to carry out the terms of this� order. (10 Neither party is entitled to attorneys' fees, costs, or disbursements. ll The undersigned retains jurisdiction of this matter to enforce the terms of this jud lent Upon full performance by plsintiff and defendant, this actiou shall be dismissed _� witM �' re d��.e. . 'Le iudgment be entered accordingly. .,-,- i': : i :� � � Date th s �3 day of June, 1986. , lC�,��� � i �, 4v�' j�,j�'�c J . Judge o the District Court � � � .- . � . - .