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274786 WHITE - CITV CLERK COl1I1C1I �4 I/V.V PINK - FINANCE OF SA I NT PAU L �� CANARV - DEPARTMENT BLUE - MAVOR File NO. �ncil Resolution � Presented By Referred To Committee: Date Out of Committee By Date RESOLVED, That the proper City officials are hereby authorized and directed to execute an Agreement with Mike and Arlene Lastavica for the operation of the Pig' s Eye Wood Recycling Facility, subject to the terms and conditions as set forth in said Agreement, a copy of which is to be kept on file and of record in the Department of Finance and Management Services. COUNCILMEN Requested by Department of: Yeas M��HON Nays � C0 $e V' s Hozza [n Favor �� D Levine __ Against D�� � Showalt epQ � Form r by C't orne Ado by Council: Date �-- (' ertified Yass y ncil Secretar BY ' 1 Ap v by Mavor: a __� Ap o by Mayor for S is on to Council � By — BY p�t�riEp MAY 3 1980 � ` � '�.,;�' . � - AGREEMENT THIS AGREEMENT, Dated this aay of „ 1980, by and between the CITY OF SAINT PAUL, Niinnesota, hereinafter _ called "City", and MIKE and ARLENE LASTAVICA, d/�b/a LA Industries, . hereinafter called "LA" • . � WITNESSETH: ' WHEREAS, The City possesses by lease from the Saint Paul Port Authority a parcel of land described as: Northwest quarter of Section 13, Township 28, Range 22, City'of St. Paul, County of Ramsey, - State of Minnesota; � � and WHEREAS, The City maintains on said parcel various machines, equipment and structures identified as the Pig° s Eye Wood Recycling Facility, hereinafter called "Facility" ; and WHEREAS, The City of Minneapolis has a property right and in- terest in a part of the Facility; and wI�REAS, The City has the right to sublease said parcel �and Facility subject to the City' s contractual commitments and obliga- tions to the above-referenced entities; now, therefore, IT IS MUTUALLY AGREED BY AND' BETWEEN THE CITY AND LA AS FOLLOWS: ' r l. That for the consideration hereinafter stated and subject � to the terms and conditions set forth herein, and further subject . to t}Ze above recitals, the City aoes hereby lease to LA the opera- tion of the Facility a.�d parce�. for a perifld of seven {3) years . commencing the date first written above and may renew this Agreement " for an additional period of seven (7) years. i 2. That LA is entitled to operate and use those pieces of _ equipment at the Facility known as the Nicholson Stationary Roto � Drum Chipper and Michigan Rubber-Tired Front End Loader. . . 3. That the City will provide LA with the use of all grinders and knives owned by the City for the purposes of the Facility and - as to the knives will keep them in good order and in such supply as LA may require. 4. That the cost of repairs, replacement parts and damages to any of the above-referenced equipment shall be borne by LA except � that the City may at it's sole discretion contribute toward those - costs. - 5. That the City shall provide and maintain lavatory facil- ities at the Facility. � - 6. That the City will �provide LA with the use of the portable office and all gas and fuel oil storage tanks presently at the Facility., but this obligation shall not be construed to entail any 2. . ' ' ' duty to remodel said office or to provide LA with fuel. 7. That the City will purchase public liability and fire, van- dalism, theft and extended coverage insurance in the amount of � $300,000.00, naming the City and LA as co-insureds thereof; said in- surance to be 7cept in f�rce during t�e entire term of th�s contract, including extensions; however, LA shall reimburse the City for premi- . um costs in obtaining such insurance upon submission of the City' s � invoice. _ 8. . That LA will manage, operate and maintain the Facility and � will accept for processing all Dutch elm diseased trees, in whatever . state, that may be delivered to the Facility by the City or it's agents,- .. 9. That LA shall not refuse to accept the delivery of .Dutch elm diseased trees from the City or its agents, and the City shall not deliver said trees to any other party without the e}cpress written authorization of LA; however, nothing herein shall be construed by � LA as obliging the City 'to maintain a quota or systematic scheme of - deliveries. - l0o That LA will supply all routine maintenance on equipment at the� Facility including, but not limited to, greasing, oiling, and the changing of blades. � 11. That LA shall pay all operating expenses of the Facility , including employee wages and fringe benefits, energy costs and ' ' office expenses. 3. , .. 12. That LA shall pay all of its employees at the wage rate of comparable positions in the City' s Civil Service system. . � 13. fihat LA will provide at its own expense such safety equip- _ rnent to its Qm�loy�s as may be xequiresi by OSHA stanci�rds. 14. 'I'hat LA shall maintain a system of ingress and egress and movement throughout the Facility that is compatible and accom- ♦ modates the City' s delivery of Dutch elm diseased trees. 15. That LA shall be entitled to the product of processing ' Dutch eIm diseased trees, but nothing herein shall be construed as authority for LA to dispose of said trees in a manner that may be contrary to regulations of the Minnesota State-Department of Agriculture or the Minnesota Pollution Control Aqency. 16. That LA, in addition to the above-stated insurance require- ments, shall purchase at its own expense and keep in force during the entire period of this contract Workers ' Compensation Insurance. � 17. That LA shal�l not charge the City a fee for the delivery - of Dutch elm diseased trees; however, may assess a fee for delivery from other municipalities or private contractors. However, no delivery from other municipalities or private -�contractors shall be arranged for that requires "the City to delay its access to the Facility. � 4. , . -, . 18. That on or before March 15, 1980, the City will have all � equipment inspected by the Minnesota Department of Labor and Indus- ��, {OSHA) and will pay for such additional safeguards to the equipment leased hereunder as may be prescribed. 19. That after March 15, 1980, LA shall have the right to modify the equipment leased hereunder providing the prior consent of the City is obtained and OSHA regulations pertaining to such � modifications are complied with. 20. That for all wood chips that are processed by LA through the Nicholson Chipper, LA shall pay to the City One Dollar ($1.00) per ton during the first year of LA' s operation; �ao Dollars ($2,00) per ton during the second year of LA' s operation; and Three Dollars . ($3.00) per ton the third and remaining years of this A�greement. 21. That none of the equipment of the Facility and owned by the City shall be removed from the Facility by LA without the prior written consent of the City. 22. That notwithstanding any other provisions of this Agree- ment to the contrary, this Agreement may be terminated upon thirty (30) days' written notice from one party to the other. IN WITNESS I3EREOF, The- parties have set their hands the date first above written. 5 . ,..� ' �+�� 6 �� � - CITY OF SAINT PAUL , � ,,.. B Mayor Approved as to Form: , � B '� Director, ep tmen Communit Services Assistant 'ty Attorn y � . By Director, Department of Finance . � and Management Services MIKE AND ARLENE LASTAVICA d/b/a LA INDUSTRIES BY By 6. � • ' . ,i�t� /� . . ' OM Ol: 22/.Z9?5 . Re�r. : 9/S/76 EXPLANATION OF ADMSNISTR�1T24E ORDERS, - �SOLtJTICNS, AND ORDINA��iCES ' . �� � � �� � � r w� � � . . Data: March 12, 1980 . . A�� 1 4 1980 MAY_OR'S Off�CE T0: MAYO� G�oR�E LAT � �= Thomas J. Ke11 ey ' �= Seven Year Contract w��h t,A Tndus�ries for Operat�on of the Wood Recycling Center AC_'ION �QIIESTED: , Authoriza�ion �o execute a contract' b�tween the city of Saint Pau1 and LA Tndus�rles for. �he operat�on of the equ�pment ait �Che Pjg`s Eye Wood � • Recycling Cen�er. � -- ' . ��� � .� � . a��� �� � � - . �1� � � , PQRPOSE AND RATIONALE FOR THIS ACTION: � LA Industr�es has been operat�ng the Wood Recycl�ng Center on a tria1 basis . slnce Novem4er, 1979. The company`s perYormance has been sat�sfactory and it is in �he best �nterests of �he c�ty to en�er into �a 1ongterm contract with �he company for disposa1 of d�seased e1m wood in the city. � ATTAC�M�NTS: Councit Reso1ut�on . ����2.�Agreemen�C'r) � , . ���