248770 OR161NAL TO CITY CLBRK 24��70
CITY OF ST. PAUL FOENCIL NO.
' OFFICE OF THE CITY CLERK
O CIL RESOLUTION—GENERAL FORM
PRESENTED BY
COMMISSIONE � DATF
WHEREAS, The City of Saint Paul was in receipt of a check
in the amount of �300,000.00 as Trustee for the benefit of
itself, Independent School District No. 625, the St. Paul Housing
and Redevelopment Authority and the Minneapolis-Saint Paul
Metropolitan Airports Commission, which check was received in
settlement in the matter of the City of Saint Paul , et al. , v.
U. S. Steel , et al . ;
WHEREAS, Pursuant to Council File No. 246039, �15,000.00 of
such proceeds has been paid to the St. Paul Housing and Redevelop-
men.t Authority as its agreed-upon pro rata share of the proceeds;
and
WHEREAS, Counsel for the City of Saint Paul , Independent
School District No. 625 and the Minneapolis-Saint Paul Metropolitan
Airports Commission have agreed upon a f air and equitable distri-
bution of the remaining proceeds of such settlement; now, therefore,
be it
RESOLVEDt That the City of Saint Paul as Trustee, through
Kenneth J. Fitzpatrick, Assistant Corporation Counsel, is hereby
authorized to direct payment to the Independent School District
No. 625 in the amount of $93,957.1'7 and to the Minneapolis-Saint
Paul Metropolitan Airports Commission in the amount of �93,957.17;
such proceeds to be paid out o� Litigation Trust Fund No.
5035-421 , and such payment to be made as full settlement of the
interests of such parties in this litigation.
FORM APPROVED
�,1� ' �n..e Jl..
\ r' ��^^..�. i
Asst. Corporation Counsel
COUNCILMEN Adopted by the Counca�� � 1�70 19—
Yeas Nays NIAY 6 ���o'
�i��--
Dalgliah Approve 19—_
Meredith �
In Favor
Peteraon '
Sprafka � Mayor
A gainst
Tedesco
Mr. President, Byrne PUBLISHED �AY 9 ����
O
• �cea Code 612 �tTY of � THOMAS J.STEARNS
` 223-5121 �,,w s ��r��J h ARTHUR M. NELSON
. '� '� V, JEROME J.SE6AL
_ °�°_,°��'��'�,'�,�°�,'.°���°�'�'�,'�, ,� � � THOMAS M. MOONEY
� KENNETH J. FITLPATRICK
�9 e �c PAUL F. MeCLOSKEY,JR.
JOSEPH E.CARTWRI6HT
CITY OF SAINT PAUL R.SCOTT DAVIFS
PIERRE N. REGNIER
PAUL J. KELLY DANIEL L. FICKER
First Assistant LEGAL DEPARTMENT KENNETH A.SKRIEN
316 City Hall, St. Paul, Mineesofa 55102
DANIEL A. KLAS
Corporation Counsel
The Honorable Thomas R. Byrne and
Members of the Council of the
City of Saint Paul
Re: City of Saint Paul , et al . , v. U. S. Steel , et al .
On October l , 1968, the City of Saint Paul commenced a law-
suit against the fabricators of structural steel wherein it
alleged a conspiracy to fix prices in the sale of structural
steel to governmental entities in violation of antitrust
laws.
On September 9, 196g , by Council File No . 245526, the Council
of the City of Saint Paul authorized the Corporation Counsel ' s
Office to execute settlement agreements and stipulations and
further authorized the Corporation Counsel ' s Office to accept
the compromise settlement of the defendants in the amount of
�300 ,000.00 for the benefit of the City of Saint Paul ,
Metropolitan Airports Commission, Independent School District
No. 625 and the St. Paul Housing and Redevelopment Authority.
On October 25 , 196g, pursuant to Council File No . 24603g , the
City Council authorized payment to the Housing and Redevelop-
ment Authority of �15 ,000.00 out of the �300,000.00 settlement.
The remaining three entities, that is, the City of Saint Paul ,
the Metropolitan Airports Commission and Independent School
District No . 625 through their legal counsel have arrived at
a proposed equitable distribution of the remaining proceeds .
In arriving at such distribution among the major entities,
the pro rata shares of the three entities were based on a com-
bination of factors, in the main corelated with the amount of
purchases known or projected by each such entity. The settle-
ment of this matter was made on the basis of a lump-sum
settlement without definitive utilization of straight purchase
data. In arriving at an equitable ratio for distribution
O
Council 2 .
among the entities , the following formulas were utilized as
guides in arriving at a fair distribution:
l . The total amount of structural steel purchased
by each entity between the years 1948 and 1964;
2 . The total amount of structural steel purchased
from the defendants in the suit between the
period 1g48 and 1964;
3. The total amount of structural steel purchased
from the defendants by the various entities
between the years 1g48 and 1962 ;
4. The total amount of purchases of structural steel
as confirmed by the defendants between the years
1948 and 1964; and
5 . The total amount of purchases confirmed by the
defendants between the years 1948 and 1962 .
Distribution of the proceeds based upon a combination of the
above formulas has been approved by counsel for the major
entities as follows:
� 300,000.00 Gross Settlement
- 15 ,000.00 Minus Net Settlement paid to H.R.A.
� 285 ,000.00 Balance
- 14, 13� .50 Minus City Attorney ' s fees based on 645 . 50
hours @ �25 .00 per hour, Minus �2 ,000.00
� 2�0 ,862 . 50 Balance
- 358.98 Minus City-incurred Common Expense
� 2�0 , 503. 52 Balance to be Divided by the Three
Entities as follows:
� g0 , 167. 84 Share to Metropolitan Airports Commission
+ 3, 7g9. 33 Plus Interest
� 93,957. 17 Net Payment to Metropolitan Airports Commission
� 90 , 16� . 84 Share to Independent School District No . 625
+ 3,789. 33 Plus Interest
� 93 ,957 . 1� Net Payment to Independent School District No . 625
�
Council 3,
� 90 ,16�. 84 Share to City of Saint Paul
+ 3 , 78g. 33 Plus Interest
� 93,957 . 17 Total
+ 358. 98 Plus Out-of-Pocket Expense
+ 14, 137. 50 Plus Attorney ' s Fees
� 108,453. 65 Net Payment to City of Saint Paul
(Interest computed above is on the basis of �285 ,000.00
at a rate of 6. 5�, commencing on September 25 , 196g,
up to the date of proposed distribution, May 7 , 1g�0 ,
at a rate of �50.75 per day to be divided equally among
the three major entities , that is , City of Saint Paul ,
M.A.C. and I . S.D. No. 625 . )
The above proposedchstribution has been tentatively agreed upon
by counsel for the three major entities.
We respectfully request the consideration and approval of the
proposed distribution by the Council and further request
authorization to the Corporation Counsel ' s Office to direct
payment from the funds held in trust for the three entities to
the Metropolitan Airports Commission and Independent School
District No . 625 in accordance with the above proposed distri-
bution.
R��'pectfully submitted,
��G�
DANIEL A.�
Corporation Counsel
� �,�.,�,•�CQ.... � , d� ,�-o�,�;
KENNETH J. FITZPATRICK
Assistant Corporation Counsel