04-791Council File # �i�- 'll/
Green Sheet # 3Ua��a �
Presented By
Refesed To
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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WHEREAS, The City operated the Pig's Eye municipal dump from 1956 to 1972 on land
located in the City and leased from Chicago, Milwaukee, St. Paul & Pacific Railroad Company
("Milwaukee Road"). The land leased for the dump was some 319 acres in size; and
WHEREAS, The City's lease with the Milwaukee Road contained an indemnification
provision wherein the City agreed to hold the Milwaukee Road harmless from liability, cost, and
expense resulting from any damage to property caused by the City's operation of the Pig's Eye
Dump; and
WHEREAS, Following the Milwaukee Road's bankruptcy, the Soo Line Railroad
Company, d/b/a Canadian Pacific Railway ("CPR"), purchased the operating assets of the
Milwaukee Road on February 19, 1985. This purchase included approximately 4 acres of
property that had been part of the Pig's Eye Dump. The remainder of the Dump property
continued to be owned by CMC Heartland Partners, the successor in interest to the Milwaukee
Road; and
WHEREAS, In December 1998, CPR purchased an additional 15.5 acres of former Dump
property adjacent from CMC Heartland Partners for future expansion of CPR's operations; and
WHEREAS, On Apri129, 1999, CPR notified the City that it was purchasing the 15.5
acres of former Dump property and that CMC Heartland Partners had assigned to CPR CMC
Heartland Partners' interest in the indemnification rights found in the City's lease from the
Milwaukee Road; and
WHEREAS, In January 1999, the City purchased from CMC Heartland Partners all of the
land formerly used as the Pig's Eye Dump with the exception of the 19 acres previously
purchased by CPR; and
WHEREAS, On November 2, 1999, the Minnesota Pollution Control Agency ("MPCA")
issued letters for the 4 acre parcel and the 15.5 acre parcel of the former Pig's Eye Dump
indicating the MPCA's determination that CPR's past actions at these sites did not constitute
conduct that would associate CPR with Identified Releases pursuant to Minn. Stat. § 115B.03
Subd. 3(4); and
WHEREAS, Between November 1, 1999, and December 31, 1999, CPR removed from
approximately 44,430 cubic yards of Pig's Eye Dump material from its property and placed this
material in a berm located on CPR property nor[h of the line between the CPR-owned and City-
owned portions of the former Pig's Ey Dump site; and
1 WHEREAS, In 2002, CPR placed the City on notice, pursuant to the City's 19621eas�� ��/
2 with the Milwaukee Road and pursuant to Minn. Stat. § 115B.03, that CPR was considering
3 seeking indemnity and contribution from the City for past and future remediation costs incurred
4 by CPR with respect to the CPR-owned Pig's Eye Dump property; and
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WEIEREAS, In 2002, under an appropriation from the state of Minnesota's Meiropolitan
Ian�ll Contingency Action Trust Fund program, the NIPCA approved a Response Action Plan
prepared by the City to remediate the City-owned Pig's Eye Dump properiy and the City, under
the direction of the MPCA and pursuant to Minn. Stat. § 473.845, undertook remediation actions
at the Ciry-owned portion of the former Pig's Eye Dump; and
WHEREAS, The City and CPR now mutually desire to expand the City's remediation
activities to include within the City's remediation the former Pig's Eye Dump land now owned
by CPR; and
WHEREAS, This remediation will be accomplished by excavating a portion of the Dump
material from the CPR Property and relocating the material to City-owned property; and
WHEREAS, The MPCA has agreed to the expanded remediation effort and has agreed to
coordinate the effort and to pay $320,000 toward the cost of the effort and
WI�REAS, The City and CPR also desire to contribute, both financiall� and on an in-
kind basis, to this expanded remediation effort which will mutually benefit the City and CPR by
finally remediating all of the land affected by the City's Pig's Eye Dump operations and as a
method of resolving any disputes that have arisen or may �rise in the future regarding any claims
by CPR against the City with respect to CPR's past and future remediation efforts of Pig's Eye
Dump material on its property; and
WHEREAS, attached hereto and incorporated herein by reference is a draft Excavation
and Remediation Agreement Between The City of Saint Paul, Minnesota and Soo Line Railroad
Company, d/b/a Canadian Pacific Raiiway for the Former Pig's Eye Dump in Saint Paul,
Minnesota, which sets forth the financial and in-kind responsibilities of the City, the CPR and the
MPCA towazds this remediation effort which specifically provides that the City's financial
contribution will be in the sum of $200,000 to excavate and relocate dump material together with
an additional annual cost of placing and grading fili into the dump material excavation site
through, if necessary, the year 2008, this additional cost to be deternuned each year based upon
the volume of fill provided each year of this agreement together with an in-kind provision for fill
which has been identified as coming from annual street improvement projects; NOW,
THEREFORE,
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2 BE TT RESOLVED, that the proper City officials are hereby authorized to execute an
3 Excavafion and Remediation Agreement far the former Pig's Eye Dump between the City and
4 the CPR which will provide for an effecrive and final remediarion of all of the lands affected by
5 the former Pig's Eye Dump, as substanrially set forth in the sample Excavation and Remediation
6 Agreement Between The City of Saint Paul, Minnesota and Soo Line Railroad Company, d/b/a
7 Canadian Pacific Railway for the Former Pig's Eye Dump in Saint Paul, Minnesota, which is
8 attached hereto and incorporated herein by reference as Exhibit "A."
Requested by Department of:
By:
Form Approved by City Attorney
s ,��l�G✓yvre— � _ i� o y
Adoption Certified by Council
By:
by Mayor for Submission to Council
Appr
By:
Adopted by Council: Date ��//Sf //,�jfj/,�
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
CA �+tyAtto�er
CoMad Person & Phone:
Peter Wamer
266-87'10
Must Be on Council qqenda by �Date):
Date'Inkiated:
7'I-AUG-04
�
Assign
Number
For
Routing
Order
Total # of Signature Pages _(Clip All Loqtions for Signature)
Action Requested:
Resolurion authorizing proper City officiats to execute an agreemeM with the Canadian Pacific Raikoad to remove materials from
Railroad proparty placed there during the Ciry's operation of the former Pigs Eye Dump.
iaauons: r�pprove {r+/ w rc
Planning Commission
CIB Committee
Civil Service Commission
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Green Sheet NO: 3021726
DeoartmeM Sent To Person Initial/Date
o � nno c� nno�o � iF°Y
1 lamin & Ewnoroie Develo De a ent Director
2 a or's OfLce Ma r/Assistant
3 oancil Cuancil
4 i Clerk Ci Q rk
5
Service Contracts Must Mswer the
1. Has this person/firtn ever worked under a contract for this departmenY?
Yes No
2. Has this person/firtn ever been a dty employee?
Yes No
3. Does this person/firrn possess a skill not nortnally possessed by any
current city employee?
Yes Pla
Explain all yes answers on separete sheet and attach to green sheet
Initiating problem, Issues, Opportunity (Who, What, When, Where, Why):
City, Canadian Pacific Railroad and the Minnesota Pollution Conual Agency liave agzeed that materials from Pigs Eye Dump on
Railroad land may be moved to City land and remediated as part of the City's Approved Remediation Action Plan for the Pigs Eye
Dump.
AdvantapeslfApproved:
All land containing materials from the Pigs Eye Dump will have been remediated under an approved remeidarion program including lanc
not owned by the City but containing City dump xnaterial. Raikoad owner of ffiose lands has agreed to release the City from any fiuther
liability upon completion of pio}ect.
Disadvanta9es IE A,pproved:
None.
Disadvanta9es If Not Approved: �
The Ciry remains responsible for duxnp materiaLs wluch creates additonal legal and fmancial Habilities. City loses opportuniry to obtain
release &om future liability. All dump lands will not be fiilly remediated.
Transaction: 200000
Fundins� source: Tort Liabi{ity for initial
CostlRevenue BudgMed: `(
activiri Number: Finance to Identify activity number
Financial Information: 200, 000
(Explain) The sum needed for the placement of fill will be indentifed and appropriated on an annual basis.
n c��l ��r/
EXCAVATION AND REMEDIATION AGREEMENT
BETWEEN THE CITY OF SAINT PAUL, MINNESOTA AND
SOO LINE RAILROAD COMPANY d/b/a/ CANADIAN PACIFIC RAILWAY
FOR fiF� FORMER PIG'S EYE DUMP
IN ST. PAUL, MINNESOTA
RECITALS
1. The City of Saint Paul, Minnesota ("City") operated a municipal dump from 1956 to
1972 known as the Pig's Eye Dump ("Dump") on land located in the City and leased from Chicago,
Milwaukee, St. Paul & Pacific Railroad Company ("Milwaukee Road").
2. Under the terms of a 1962 lease, the City leased 319 acres property from the
Milwaukee Road for the Dump. This lease contained indemnification provisions wherein the City
agreed to hold the railroad harmless from liabiliry, cost, and expense resulting from any damage to
property caused by the City's activities.
3. Soo Line Railroad Company, d/b/a Canadian Pacific Railway ("CPR") purchased the
operating assets of the Milwaukee Road on February 19, 1985 from the Milwaukee Road's
bankruptcy trustee. This purchase included approximately 4 acres of rail yard property that had been
used for the Dump. The remainder of the Dump property continued to be owned by CMC Heartland
Partners, the successor in interest to the Milwaukee Road.
4. In December,1998; CPR purchased an additiona115.5 acres of the formerDump property
adjacent to the CPR rail yard from -CMC Fieartland Partners for future expansion of its yard
operations.
5. On April 29, 1999, CPR provided notice to the City that it was purchasing the 15.5
acres of former Dump property and that CMC Heartland Partners had assigned to CPR CMC's
Heartland Partners' interest in the indemnification rights found in the 19621ease for that portion of
the property CPR was purchasing.
6. In or about.Tanuary,1999, the City purchased from CMC HeartlandPartners the remainder
of the property that had been the Pig's Eye Dump. Currently, all of the land fonmerly used as the
Dump is owned by the City, with the exception of the 19 acres owned by CPR.
7. On 1Vovember 2, 1999, the Minnesota Pollution Control Agency ("MPCA") issued
]etters for both of the former Dump parcels owned by CPR, indicating that the MPCA had
deternuned that CPR's past actions at the sites did not constitute conduct that would associate CPR
with Identified Releases at the sites pursuant to Minn. Stat. § 115B.03 subd. 3(4).
8. Between November 1, 1999, and December 31, 1999, CPR excavated some 44,430
cubic yards of dump material from its property and built a berm on its property north of the line
between the CPR-owned and City-owned portions of the former Dump property.
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9. In 2002, CPR placed the City on norice that pursuant to the City's 19621ease with
the Milwaukee Road and pursuant to Minn. Stat. § 115B.03, CPR was considering seeking
indemnity and contribution from the City for past and future remediation costs incurred by CPR with
respect to the CPR-owned Dump property.
10. Following a State of Minnesota appropriation under its Metropolitan Landfill
Contingency Action Trust Fund program, the MPCA approved a Response AcUon Plan for
remediation of the City-owned Dump property. Remediataon actions at the City-owned portion of
the Dump began in 2002 under the direction of the MPCA pursuant to Minn. Stat. § 473.845.
11. The City and CPR desire to expand the remediation activities to include the land
owned by CPR. This will be accomplished by excavating a portion of the Dump material from the
CPR Property and relocating it to City-owned property. The MPCA will coordinate this portion of
the expanded remediation effort and pay $3�Q000 towazd the cost of such work.
12. The City and CPR wish to contribute, both financially and on an in-kind basis, to the
expanded remediation effort on CPR-owned property, while at the same time resoiving the disputes
that have arisen and may arise in the future over the claims of CPR against the City with respect to
CPR's past and future remediation efforts on its property.
AGREENIENI'
A. PARTIES TO THE AGREEMENT
Parties to this Agreement are the City of St. Paul, a municipal coiporation ("City°) and Soo
Line Railroad Company d/b/a Canadian Pacific Railway ("CPR").
B. PURPOSE OF THE AGREEMENT
This Agreement sets forth the terms and conditions under which the Parties will undertake
environmental response actions on the CPR-owned portion of the former Pig's Eye Dump, and sets
forth the terms and conditions under which the Parties fully, finally, and completely settle all claims
that have arisen or may arise between the Parties in connecuon with environmental cleanup of the
Pig's Eye Dump.
C. DEFINITIONS, ATTACHMEN'TS
The following terms shali have the following definitions:
a. "City" shall mean the City of St. Paul, Minnesota, a municipai corporation and its
successors and assigns.
b. "CPR" shall mean Soo Line Railroad Company, d/b/a Canadian Pacific Railway,
a Minnesota corporation, and its successors and assigns.
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c. "Pig's Eye Dump" or "Dump" shall mean the former municipal dump operated by
the City of St. Paul on property formerly owned by the Milwaukee Road, as depicted in Exhibit A.
d. "CPR Property" shall mean the approximately 19.5 acres of the Pig's Eye Dump
property currently owned by CPR, as depicted in Exhibit B.
e. "Dump Materials" shall mean the waste deposited at the Pig's Eye Dump from
1956 through 1972.
f. "Berm" shall mean the approximately four (4) acres of CPR Property located in
a line immediately north of the border between CPR Properiy and City-owned property on the Pig's
Eye Dump site, upon which CPR constructed a berm in 1999.
2. All attachments to this Agreement are integral and enforceable parts of this
Agreement.
D. COVENANTS NOT TO SUE
1. In consideration of the release in Paragraph D.2. below, and of the Cost Allocation
set forth in 5ection F. below, CPR does hereby release and farever discharge the City of and from
any and all liability, actions, causes of action, claims and demands, known and unknown, for any
damages or losses for response actions in connection with the Dump and for releases or threatened
releases of hazardous substances or pollutants or contaminants at or from the Dump.
2. In considerafion of the release in Paragraph D.1. above, and of the Cost Allocation
set forth in Section F. below, the City does hereby release and forever discharge CPR of and from
any and all liability, actions, causes of action, ciaims and demands, known and unknown, for any
damages or losses for response actions in connection wlth the Dump and for releases or threatened
releases of hazardous substances or poilutants or contaminants at or from the Dump.
E. WORK TO BE COMPLETED
The Parties agree that the following tasks will be undertaken:
1. CPR will engage Veit & Company, Inc. ("Veit") to excavate Dump Matezials from
CPR-owned Dump property located north of the Berm, to an elevation of 697 feet above mean sea
leve] (m.s1.). This excavation will be completely or substantially completed in 2003. [This task has
been completed.]
2. Veit will place the excavated Dump Materials onto the City-owned Dump property
in the area south of the Berm. Veit will deliver and place sufficient fill material to cover the Dump
Materials placed on City-owned property to a depth of two feet, per instructions from the MPCA.
[This task has been completed.]
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3. Following the removal of the Dump Materiais from the CPR property, Veit will place
a geotextile fabric at the base of the excavation on the CPR Property. [This task has been
completed.]
4. Iinmediately fol]owing placement of the geotextile fabric by Veit on the CPR
Property, the Ciry and/or its contractors will backfill the excavation with City-supplied fill
("stabilization fill") to a depth of six inches (in-place measurement after compaction) to cover and
protect the geotextile fabric untii additional fill can be placed in the excavation in the years 2004-
2007. The City recognizes that to prevent damage to the geotextile fabric, close coordination with
Veit will be necessary during this phase of the project and commits to using its best efforts to do so.
[This task has been completed.]
5. The work undertaken by Veit wiil be overseen by a qualified environmental
remediation contractor, who, together with CPR, will obtain all permits for work to be completed
on CPR property. [This task has been completed.]
6. Between January 1, 2004 and 5eptember 30, 2008, the City, at no cost to CPR, will
supply, deliver and place additional clean and suitable fill (as defined by the specifications set forth
in Exhibit C) in the excavated area of the CPR-owned property. To the extent the fili must be
stockpiled before placement, the City will stockpile the fill on City-owned Dump property. The
amount of fill provided wiIl be sufficient to raise the property to a final elevation of approximately
701 feet above mean sea level, except where sloped near the Berm. Upon the completion of the
placement of the fill, CPR will provide, at its own expense, compaction testing, surveying and finai
grading of the surface. CPR wili grant access to the City and its contractors to allow placement of
fill under a Master Access Agreement attached hereto as Exhibit D.
F. COST ALLOCATION FOR PROJECT
The parties agree that the financial and in-kind costs of this project shall be allocated as
follows:
1. The MPCA will eontribute $320,000 toward the excavation and waste-transfer work
described above (except items being provided or paid for entirely by CPR or the City). The MPCA
will execute a Supplemental A�eement with its excavation contractor, Veit, to perform $320,000
of said work.
2. For project costs above $320,000, the City and CPR will pay equal shazes, up to a
masimum contribution of $200,000 on the part of the City.
3. CPR shall pay the bills of Veit and the oversight contractor for the services and
oversight described in Secuon E. CPR shall then submit invoices to the City. The City will
reimburse CPR within 30 days following receipt of invoices for its share of costs.
4. During 2003, and in coordination with Veit, the City will supply, at no cost to CPR,
stabilization fill sufficient to back-fiil the excavation to a depth of six inches (in-place measurement
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after compaction) to cover and protect the geotextile fabric. The City will pay the first $15,000 of
costs associated with the delivery and piacement of the City-supplied fill.
5. The City will allow Veit and the oversight contractor access to City property at no
cost.
6. Subject to the approval of the City department with authority overthe land(s) in question,
the City agrees to deed four (4) acres of land to CPR in the future, as trade for the four-acre Berm
on the CPR Property, which was created as part of previous remedial activities on the CPR Property.
G. CHOICE OF LAW AND VENUE
This Agreement shall be governedby and construed underthe laws of the State of Atinnesota.
The venue of any action under this Agreement shall be Ramsey County District Court or the United
States District Court for the District of Minnesota.
H. AMENDMENTS
This Agreement may be amended only by written agreement among the Parties to this
Agreement.
I. SUCCESSORS AND ASSIGNS
This Agreement is binding upon the City and CPR and their successors and assigns.
J• LIABILITY AND GOVERNMENTAL IIYIMUNITIES.
Each party agrees that it shall be responsible for its own acts and omissions and the results
thereof, and those of its officers, employees and agents, and shall not be responsible for the acts or
omissions of any other party, its officers, employees or agents. Nothing contained in this Agreement
shall constitute a waiver by the City of any governmental immunity afforded by law.
K. SEVERABILITY
If any provision of this Agreement is held to be void, invalid, unenforceable or illegal by a
court, the validity and enforceability of the other provisions shall not be affected.
L. EFFECTIVE DATE
This Agreement is effective upon the date it is executed by the parties.
BY THEII2 SIGNA"TT TRES BELOW, THE UI3DERSIGNED REPRESENT THAT THEY HAVE
AUTHORITY TO BIND THE PARTIES'THEY REPRESENT, THEIR AGEN'I'S, SUCCESSORS
AND ASSIGNS.
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TI' IS SO AGREED:
Soo Line Raikoad Company City of St. Paul, Minnesota
d/b/a Canadian Pacific Railway
QI
Title
Date
I�
Title
Date
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Exhibit A
Former Pig's Eye Dump property
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Exhibit B
CPR-owned portion of former Pig's Eye Dump property
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Exhibit C
Specifications for 2004 — 2008 fill
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Exhibit D
Master Access Agreement
For access to CPR property by City of St. Paul
employees, agents, contractors and subcontractors
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