97-463Councit Fi1e # �`] � / �0 3
Green Sheet # '3 � � �j �
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented By:
Referred To:
9
10
11
12
13
14
15
16
17
78
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Committee: Date
WHEREAS, the Court has authorized the City of Saint Paul to initiate an interpleader action joining all plaintiHs and daimants
seeking damages arising out of the gas explasion at Third and Maria on July 22, 1993, and
WHEREAS, the City intends to deposit its statutory limits of 5600,000.00 with the Court in exchange for an ortler entering final
judgment against the City in the amount of $60Q000.00, fully and finally discharging the City from all litigation arising out of
the explosion, and
WHEREAS, the Mayor, pursuant to Section 10.07.4 of the City Charter, does certify that there are available for appropriation
revenues in excess of those estimated in the 1997 Budget; and
WHEREAS, the Mayor recommends the following changes to the 1997 Budget
FINANCING PLAN:
001 GeneralFUnd
9830 Use of Fund Balance
All Other Fund Financing
ToWI Financing
SPENDING PLAN:
001 Generei Fund
09070 Tort Liability
0511 Settlements
All Other Fund Spending
Total Spending
CURRENTBUDGET CHANGES
1,713,312
'150,136,975
157,850,227
600,000
soo,000
285,307
54,371
339,678
600,000
600,000
AMENDED BUDGET
2,313,312
150,136,915
152,45Q227
885,307
54,371
939,678
NOW THEREFORE, BE IT RESOLVED that the City Council approves these changes to the 7997 budget, and be it further
RESOLVED, that pursuant to the Order for Interpleader, a copy of which is attached hereto, the proper City officers are hereby
authorized and directed to pay out of the Tort Liability Fund 09070-0511 to Ramsey County District Court, the sum of $600,000.00
in full antl £nal discharge of all claims brought pursuant to the Third and Maria natural gas explosion of July 22, 1993.
Requested hy Department of:
Adopted by Council: Date �� l�q�"�
— �—
Adoption Certified by Council Secretary:
By ' �. �� � � t
Approved by Mayor: Date t{�3�[q7
BY� �C - i
• . -
= /1L✓ ��l !,�
Approved b�r for Submission to Council:
By: �
PreparedbySaintPaulButlgetOfiice H:WSERSIRENSHAlM123DATAV+M NDN99T9]MARIA 4/1]/97)
Approval Recommended by Budget Director:
nernx�mm+xrot�c�comvrn nn�wmn�m — i I 7�
cirynttorne ans/9� GREEN SHEET NO. 32595
CONfACfPER50NffiPHONE al DEPARiTffTI'DIRFLIVR �5 Cf1YCOUNCp.
FrankVilliaume(266-8710) �� a �A�� o ��
MUSfBEONCOUNCQ.AGF2JDABYNA'[E7 � O3 HUD(�IDIAECI'O� O FIN.&MGL.SEINICFSDIB.
Apri123, 1997 Da niarox(oxasssrnxp O Fioance-Accomting
TOTAL # OF SIGNATURE PAGES {(:LIP ALL LOCAITONS FOR SIGNATURE)
ACIIONREQUESIID
Approval of a resolution to settle lawsuits and claims made agains[ the CiTy arising from the gas explosion a2 Third Stree[ and MariaAvenue, on
July 22, 1993.
xECOnmm�mnnoxis-n�,o.K �w) o.z,9..a�y PERSONAL SERVICE CONTRACIS MUST ANSWER THE FOLLOWING QUES"CIONS:
PI.ANNMGCAhA9$40N _CNLLSERVICECObIId1AfISSION 1.HasthispersoNfumeverworkedmderacontractforlhisdepazmienY?
cmco� YES NO
_srnee _ 2. Has this persodFirm ever been a city employee?
msiwcrcovxT _ YES NO
sueeoa�swwcx co�c¢ os�cnve! 3. Does ihis person/firm possess a skill not nolmalty possessed by any current city employee?
YES NO
� (Explain all yes aoswers on separate sheet and atfaclt to green shcet)
IIJ[IIAIIIJG PAOHLEM, ISSIIE, OPPORiUNI]Y (tMO, Whar, Whrn, Whve, Why)
On July 22, 1993, a Saint Paut Pubiic Works sewer maintenance crew was engaged in a routine repair project at the intersection of Third
Street and Mazia Avenue. During excavaGon with a backhoe, a gas service line was allegedly shuck and the odor of natural gas noted.
Northern States Power Company was immediately notified and the crew began evacuating occupants of the adjacent buildings. At
8:50 a.m., the building exploded, killing three individuals, injwing many others, and causing extensive personal and real proper[y damage.
Sixteen lawsuits and more than rivo dozen claims were made against the City. The damages exceed the City's $600,000 statutory tort
limits of liability. Plainriffs and NSP asserted various theories of recovery against the City which they contended were not subject to the
liability caps. The City prevailed against those claims.
The Ciry has uutiated an interpleader acUon joining all plainriffs and claimants. The City now intends to deposit its statutory limits of
$600,000 with the Cour[ in exchange for an order entering fmal judgnent against the City in the amount of $60Q000, fully and fmally
dischazging the City &om all litigation arising out of the'explosion. The City Attomey's Office recommends approval of the settlement.
� A budget needs to be established to deposit the $600,000 with the Court. Money has been designated in fund balance for that
purpose. The attached resolution uses the fund balance as fmancing for the expenditure.
ADVANTAGFS IF APPROVED:
Settle complex litigarion.
DLSADVAM'AGES R�'APPROVED:
None lrnown.
DLSADVANiAGFS OFNOTAPPROVm.
Ongoing litiation.
rorac,�ounror�ranrvsncnox $60000000 cosnee,vervosswceren(cmcceorve> O rvo
��:�so�� A��� Dga�o
twaxcw,u�oamanox: �inny
�
a�- y�3
STATE OF MINNESOTA
COUNTY OF RAMSEY
City of Saint Paul,
Plaintiff,
-vs-
IN DISTRICT COURT
SECOND JUDICZAL DISTRICT
Case Type: Personal Injury/
Wrongful Death
Court File No. C9-qs-�sse
Gertrude Raths, individually, and
as trustee for the next of kin of
Gordon James Raths, decedent;
William E. Guthrie, trustee for, and
the next of kin of Donna Rae Guthrie,
decedent and William E. Guthrie,
executor of the estate of
Donna Rae Guthrie; Linda Diaz;
Ali Artoli; Maria Food Market
Corporation; Steven Folske; Staci
Folske; Jill D. Forget, as Trustee
for the heirs and next of kin of
Howard N. Husnik, Carolyn Baker;
Eric Lorens Brynestad;
Witcher Construction; 679 East Third
Street Investors Company, a Minnesota
corporation; Martha Ann Walker; Mary E.
Lappegaard; Marcella Lappegaard
Fairbanks; American Family Insurance
Group, a Wisconsin corporation;
Capitol Indemnity Corporation, a
Wisconsin corporation; Gayle E. Peterson
f/k/a Gayle D. Stangeland; Charles
Sinclair; State Farm General Insurance
Company; Northern States Power Company;
Bonny Anderson; Mike Brec7�an;
Terry J. Elert; Ibrahim E1 Aindi; Donald
Folske; Gabriel Gubash; Jim Hoag; Michele
Kazle; Michael Kwilinski; Logicom
Corporation; Jim Meath; John and Marion
Moyer; Vernett Naatz; Alan Sauers;
David Nordhausen; Randolph Parker;
Paul's Lounge, Inc.; Paul Damico;
Phillips Petroleum Co.; Mike Voss,
individually and d/b/a Roy's Phillips 66;
John and Marjorie Smith; Wirth Companies;
Vicki Lynn Weiss; John Williams;
Thomas J. Block; Michael Boland;
Clifford Lee Burgin, Jr.; Terrance Dahedl;
Tony Dozie; Dan Ehrman; Joanne Holmes;
Rachel Holmes, individually and as
guardian of James Holmes; Michael Hughes;
Bob & Cloann LaFontaine; Richard Lyons;
ORDER FOR INTERPLEADER
� :,
�t`1-`lL3
Steven McLevish; Daniel & Kimberly
Milligan; John & Maxine Milligan;
Darla & Deanna Parks; Roshawn Pickens;
Patricia Putmon; Margaret Roach;
Michelle Smith; Donald Wadley;
and Curtis Londroche, individually
and d/b/a Curtis Book,
Defendants.
The above-captioned matter came on for hearing before the
undersigned Judge of District Court on December 16, 1996 on the
City of Saint Paul's Petition in the Nature of Interpleader.
Petitioner City of Saint Paul (the "City") was represented by
Timothy E. Marx, City Attorney, and Frank E. Villaume III,
Assistant City Attorney. Various claimants were represented by
their attorneys of record who have previously appeared in In re•
Maria Avenue Natural Gas Exnlosion, Court File No. C9-95-6556.
The Court having considered the City's Petition in the Nature
of Interpleader, the City of Saint Paul�s Memorandum of Law in
Support of Its Petition in the Nature of Interpleader, and all
other memoranda submitted in response to the Petition, and having
heard the argument of counsel, hereby makes the following:
ORDER
1. The City of Saint Paul's Petition in the Nature of
Interpleader is hereby granted.
2. All claimants identified in the Petition (and any persons
claiming derivatively through the claimants identified in the
Petition) shall bring any and all claims they may have against the
City of Saint Paul, its agents and employees, arising out of the
-2-
-,)
9�1 -`L�3
July 22, 1993 explosion at the intersection of Third and Maria, by
service of a summons and complaint on or before March 31, 1997.
3. Service of such summons and complaint may be accomplished
by mail addressed to Frank E. Villaume III, Assistant City
Attorney, 550 City Hall, 15 West Rellogg Blvd, Saint Paul,
Minnesota 55102. Service will be effective if mailed on or before
March 31, 1997.
4. Should any claimant identified in the City�s Petition (or
any derivative claimant) fail to serve a summons and complaint as
set forth above, the City will be discharged from any and all
liability to such claimant (and derivative claimant) for any
injuries or damages allegedly resulting from the July 22, 1993
explosion.
5. Any and all claimants (and derivative claimants) are
hereby enjoined from instituting and prosecuting any other or
additional action against the City of Saint Paul, its agents,
departments and employees for any injuries or damages arising out
of the July 22, 1993 explosion. This injunction applies to cases
already filed as of the date of this Order and any cases that may
be instituted thereafter. The claims against the City arising out
of the cases already filed are hereby interpleaded into this
proceeding. Those cases include: Artoli. et al. v. Citv of St.
Paul. et al., No. C1-93-8555; Diaz v. Citv of St. Paul. et al , No.
C1-93-11956; Baker v. Citv of St. Paul, et al , No. C5-94-2798;
Brynestad v. Citv of St Paul et al , No. C2-94-3181; Witcher
Construction v. Citv of St Paul et al , No. C2-94-6078; 679 East
-3-
-.
/
°1rl -` 3
Third Street Investors v. Citv o£ St Paul et al , No. C7-94-7484;
Walker v. Citv of St. Paul, et al , No. CS-94-7483; Lanoeaaard, et
al. v. Northern States Power Companv et al , No. CX-94-7317;
Raths, et al. v. Citv of St. Paul et al , No. C2-94-2113; Guthrie.
et al. v. Citv of St. Paul, et al , No. C9-93-8688; Sinclair v.
City of St. Paul, et al., No. C1-95-9788; Peterson v. Citv of St.
Paul. et al., No. CS-95-8191; State Farm General Insurance Com�anv
v. City of St. Paul. et al , No. C3-96-2612; American Familv
Insurace Group v. City of St Paul et al , No. C3-95-8187;
Capitol Indemnitv Corp v Citv of St Paul et al , No.
C7-95-8189; and Randolnh Parker v. City of Saint Paul. et al , No.
C - -
6. After March 31, 1997, at which time all claims against
the City arising out.the July 22, 1993 e�losion must be asserted
or be barred. Since the Court has ruled for the City on both the
City's Motion To Limit Damages Or To Dismiss Lambertson
Contribution Claim and the City's Motion Re: Crossclaims of
Northern States Power Company, the Court shall, upon final
application by the City and upon the City�s deposit of its $600,000
stake with the Court, enter final judgment against the City, fully
and finally discharging it from all litigation arising out of the
July 22, 1993 e losion.
Dated: l
BY THE COURT �',
N \�
Jud e of Distric'
-4-
,
-: �
Councit Fi1e # �`] � / �0 3
Green Sheet # '3 � � �j �
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented By:
Referred To:
9
10
11
12
13
14
15
16
17
78
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Committee: Date
WHEREAS, the Court has authorized the City of Saint Paul to initiate an interpleader action joining all plaintiHs and daimants
seeking damages arising out of the gas explasion at Third and Maria on July 22, 1993, and
WHEREAS, the City intends to deposit its statutory limits of 5600,000.00 with the Court in exchange for an ortler entering final
judgment against the City in the amount of $60Q000.00, fully and finally discharging the City from all litigation arising out of
the explosion, and
WHEREAS, the Mayor, pursuant to Section 10.07.4 of the City Charter, does certify that there are available for appropriation
revenues in excess of those estimated in the 1997 Budget; and
WHEREAS, the Mayor recommends the following changes to the 1997 Budget
FINANCING PLAN:
001 GeneralFUnd
9830 Use of Fund Balance
All Other Fund Financing
ToWI Financing
SPENDING PLAN:
001 Generei Fund
09070 Tort Liability
0511 Settlements
All Other Fund Spending
Total Spending
CURRENTBUDGET CHANGES
1,713,312
'150,136,975
157,850,227
600,000
soo,000
285,307
54,371
339,678
600,000
600,000
AMENDED BUDGET
2,313,312
150,136,915
152,45Q227
885,307
54,371
939,678
NOW THEREFORE, BE IT RESOLVED that the City Council approves these changes to the 7997 budget, and be it further
RESOLVED, that pursuant to the Order for Interpleader, a copy of which is attached hereto, the proper City officers are hereby
authorized and directed to pay out of the Tort Liability Fund 09070-0511 to Ramsey County District Court, the sum of $600,000.00
in full antl £nal discharge of all claims brought pursuant to the Third and Maria natural gas explosion of July 22, 1993.
Requested hy Department of:
Adopted by Council: Date �� l�q�"�
— �—
Adoption Certified by Council Secretary:
By ' �. �� � � t
Approved by Mayor: Date t{�3�[q7
BY� �C - i
• . -
= /1L✓ ��l !,�
Approved b�r for Submission to Council:
By: �
PreparedbySaintPaulButlgetOfiice H:WSERSIRENSHAlM123DATAV+M NDN99T9]MARIA 4/1]/97)
Approval Recommended by Budget Director:
nernx�mm+xrot�c�comvrn nn�wmn�m — i I 7�
cirynttorne ans/9� GREEN SHEET NO. 32595
CONfACfPER50NffiPHONE al DEPARiTffTI'DIRFLIVR �5 Cf1YCOUNCp.
FrankVilliaume(266-8710) �� a �A�� o ��
MUSfBEONCOUNCQ.AGF2JDABYNA'[E7 � O3 HUD(�IDIAECI'O� O FIN.&MGL.SEINICFSDIB.
Apri123, 1997 Da niarox(oxasssrnxp O Fioance-Accomting
TOTAL # OF SIGNATURE PAGES {(:LIP ALL LOCAITONS FOR SIGNATURE)
ACIIONREQUESIID
Approval of a resolution to settle lawsuits and claims made agains[ the CiTy arising from the gas explosion a2 Third Stree[ and MariaAvenue, on
July 22, 1993.
xECOnmm�mnnoxis-n�,o.K �w) o.z,9..a�y PERSONAL SERVICE CONTRACIS MUST ANSWER THE FOLLOWING QUES"CIONS:
PI.ANNMGCAhA9$40N _CNLLSERVICECObIId1AfISSION 1.HasthispersoNfumeverworkedmderacontractforlhisdepazmienY?
cmco� YES NO
_srnee _ 2. Has this persodFirm ever been a city employee?
msiwcrcovxT _ YES NO
sueeoa�swwcx co�c¢ os�cnve! 3. Does ihis person/firm possess a skill not nolmalty possessed by any current city employee?
YES NO
� (Explain all yes aoswers on separate sheet and atfaclt to green shcet)
IIJ[IIAIIIJG PAOHLEM, ISSIIE, OPPORiUNI]Y (tMO, Whar, Whrn, Whve, Why)
On July 22, 1993, a Saint Paut Pubiic Works sewer maintenance crew was engaged in a routine repair project at the intersection of Third
Street and Mazia Avenue. During excavaGon with a backhoe, a gas service line was allegedly shuck and the odor of natural gas noted.
Northern States Power Company was immediately notified and the crew began evacuating occupants of the adjacent buildings. At
8:50 a.m., the building exploded, killing three individuals, injwing many others, and causing extensive personal and real proper[y damage.
Sixteen lawsuits and more than rivo dozen claims were made against the City. The damages exceed the City's $600,000 statutory tort
limits of liability. Plainriffs and NSP asserted various theories of recovery against the City which they contended were not subject to the
liability caps. The City prevailed against those claims.
The Ciry has uutiated an interpleader acUon joining all plainriffs and claimants. The City now intends to deposit its statutory limits of
$600,000 with the Cour[ in exchange for an order entering fmal judgnent against the City in the amount of $60Q000, fully and fmally
dischazging the City &om all litigation arising out of the'explosion. The City Attomey's Office recommends approval of the settlement.
� A budget needs to be established to deposit the $600,000 with the Court. Money has been designated in fund balance for that
purpose. The attached resolution uses the fund balance as fmancing for the expenditure.
ADVANTAGFS IF APPROVED:
Settle complex litigarion.
DLSADVAM'AGES R�'APPROVED:
None lrnown.
DLSADVANiAGFS OFNOTAPPROVm.
Ongoing litiation.
rorac,�ounror�ranrvsncnox $60000000 cosnee,vervosswceren(cmcceorve> O rvo
��:�so�� A��� Dga�o
twaxcw,u�oamanox: �inny
�
a�- y�3
STATE OF MINNESOTA
COUNTY OF RAMSEY
City of Saint Paul,
Plaintiff,
-vs-
IN DISTRICT COURT
SECOND JUDICZAL DISTRICT
Case Type: Personal Injury/
Wrongful Death
Court File No. C9-qs-�sse
Gertrude Raths, individually, and
as trustee for the next of kin of
Gordon James Raths, decedent;
William E. Guthrie, trustee for, and
the next of kin of Donna Rae Guthrie,
decedent and William E. Guthrie,
executor of the estate of
Donna Rae Guthrie; Linda Diaz;
Ali Artoli; Maria Food Market
Corporation; Steven Folske; Staci
Folske; Jill D. Forget, as Trustee
for the heirs and next of kin of
Howard N. Husnik, Carolyn Baker;
Eric Lorens Brynestad;
Witcher Construction; 679 East Third
Street Investors Company, a Minnesota
corporation; Martha Ann Walker; Mary E.
Lappegaard; Marcella Lappegaard
Fairbanks; American Family Insurance
Group, a Wisconsin corporation;
Capitol Indemnity Corporation, a
Wisconsin corporation; Gayle E. Peterson
f/k/a Gayle D. Stangeland; Charles
Sinclair; State Farm General Insurance
Company; Northern States Power Company;
Bonny Anderson; Mike Brec7�an;
Terry J. Elert; Ibrahim E1 Aindi; Donald
Folske; Gabriel Gubash; Jim Hoag; Michele
Kazle; Michael Kwilinski; Logicom
Corporation; Jim Meath; John and Marion
Moyer; Vernett Naatz; Alan Sauers;
David Nordhausen; Randolph Parker;
Paul's Lounge, Inc.; Paul Damico;
Phillips Petroleum Co.; Mike Voss,
individually and d/b/a Roy's Phillips 66;
John and Marjorie Smith; Wirth Companies;
Vicki Lynn Weiss; John Williams;
Thomas J. Block; Michael Boland;
Clifford Lee Burgin, Jr.; Terrance Dahedl;
Tony Dozie; Dan Ehrman; Joanne Holmes;
Rachel Holmes, individually and as
guardian of James Holmes; Michael Hughes;
Bob & Cloann LaFontaine; Richard Lyons;
ORDER FOR INTERPLEADER
� :,
�t`1-`lL3
Steven McLevish; Daniel & Kimberly
Milligan; John & Maxine Milligan;
Darla & Deanna Parks; Roshawn Pickens;
Patricia Putmon; Margaret Roach;
Michelle Smith; Donald Wadley;
and Curtis Londroche, individually
and d/b/a Curtis Book,
Defendants.
The above-captioned matter came on for hearing before the
undersigned Judge of District Court on December 16, 1996 on the
City of Saint Paul's Petition in the Nature of Interpleader.
Petitioner City of Saint Paul (the "City") was represented by
Timothy E. Marx, City Attorney, and Frank E. Villaume III,
Assistant City Attorney. Various claimants were represented by
their attorneys of record who have previously appeared in In re•
Maria Avenue Natural Gas Exnlosion, Court File No. C9-95-6556.
The Court having considered the City's Petition in the Nature
of Interpleader, the City of Saint Paul�s Memorandum of Law in
Support of Its Petition in the Nature of Interpleader, and all
other memoranda submitted in response to the Petition, and having
heard the argument of counsel, hereby makes the following:
ORDER
1. The City of Saint Paul's Petition in the Nature of
Interpleader is hereby granted.
2. All claimants identified in the Petition (and any persons
claiming derivatively through the claimants identified in the
Petition) shall bring any and all claims they may have against the
City of Saint Paul, its agents and employees, arising out of the
-2-
-,)
9�1 -`L�3
July 22, 1993 explosion at the intersection of Third and Maria, by
service of a summons and complaint on or before March 31, 1997.
3. Service of such summons and complaint may be accomplished
by mail addressed to Frank E. Villaume III, Assistant City
Attorney, 550 City Hall, 15 West Rellogg Blvd, Saint Paul,
Minnesota 55102. Service will be effective if mailed on or before
March 31, 1997.
4. Should any claimant identified in the City�s Petition (or
any derivative claimant) fail to serve a summons and complaint as
set forth above, the City will be discharged from any and all
liability to such claimant (and derivative claimant) for any
injuries or damages allegedly resulting from the July 22, 1993
explosion.
5. Any and all claimants (and derivative claimants) are
hereby enjoined from instituting and prosecuting any other or
additional action against the City of Saint Paul, its agents,
departments and employees for any injuries or damages arising out
of the July 22, 1993 explosion. This injunction applies to cases
already filed as of the date of this Order and any cases that may
be instituted thereafter. The claims against the City arising out
of the cases already filed are hereby interpleaded into this
proceeding. Those cases include: Artoli. et al. v. Citv of St.
Paul. et al., No. C1-93-8555; Diaz v. Citv of St. Paul. et al , No.
C1-93-11956; Baker v. Citv of St. Paul, et al , No. C5-94-2798;
Brynestad v. Citv of St Paul et al , No. C2-94-3181; Witcher
Construction v. Citv of St Paul et al , No. C2-94-6078; 679 East
-3-
-.
/
°1rl -` 3
Third Street Investors v. Citv o£ St Paul et al , No. C7-94-7484;
Walker v. Citv of St. Paul, et al , No. CS-94-7483; Lanoeaaard, et
al. v. Northern States Power Companv et al , No. CX-94-7317;
Raths, et al. v. Citv of St. Paul et al , No. C2-94-2113; Guthrie.
et al. v. Citv of St. Paul, et al , No. C9-93-8688; Sinclair v.
City of St. Paul, et al., No. C1-95-9788; Peterson v. Citv of St.
Paul. et al., No. CS-95-8191; State Farm General Insurance Com�anv
v. City of St. Paul. et al , No. C3-96-2612; American Familv
Insurace Group v. City of St Paul et al , No. C3-95-8187;
Capitol Indemnitv Corp v Citv of St Paul et al , No.
C7-95-8189; and Randolnh Parker v. City of Saint Paul. et al , No.
C - -
6. After March 31, 1997, at which time all claims against
the City arising out.the July 22, 1993 e�losion must be asserted
or be barred. Since the Court has ruled for the City on both the
City's Motion To Limit Damages Or To Dismiss Lambertson
Contribution Claim and the City's Motion Re: Crossclaims of
Northern States Power Company, the Court shall, upon final
application by the City and upon the City�s deposit of its $600,000
stake with the Court, enter final judgment against the City, fully
and finally discharging it from all litigation arising out of the
July 22, 1993 e losion.
Dated: l
BY THE COURT �',
N \�
Jud e of Distric'
-4-
,
-: �
Councit Fi1e # �`] � / �0 3
Green Sheet # '3 � � �j �
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented By:
Referred To:
9
10
11
12
13
14
15
16
17
78
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Committee: Date
WHEREAS, the Court has authorized the City of Saint Paul to initiate an interpleader action joining all plaintiHs and daimants
seeking damages arising out of the gas explasion at Third and Maria on July 22, 1993, and
WHEREAS, the City intends to deposit its statutory limits of 5600,000.00 with the Court in exchange for an ortler entering final
judgment against the City in the amount of $60Q000.00, fully and finally discharging the City from all litigation arising out of
the explosion, and
WHEREAS, the Mayor, pursuant to Section 10.07.4 of the City Charter, does certify that there are available for appropriation
revenues in excess of those estimated in the 1997 Budget; and
WHEREAS, the Mayor recommends the following changes to the 1997 Budget
FINANCING PLAN:
001 GeneralFUnd
9830 Use of Fund Balance
All Other Fund Financing
ToWI Financing
SPENDING PLAN:
001 Generei Fund
09070 Tort Liability
0511 Settlements
All Other Fund Spending
Total Spending
CURRENTBUDGET CHANGES
1,713,312
'150,136,975
157,850,227
600,000
soo,000
285,307
54,371
339,678
600,000
600,000
AMENDED BUDGET
2,313,312
150,136,915
152,45Q227
885,307
54,371
939,678
NOW THEREFORE, BE IT RESOLVED that the City Council approves these changes to the 7997 budget, and be it further
RESOLVED, that pursuant to the Order for Interpleader, a copy of which is attached hereto, the proper City officers are hereby
authorized and directed to pay out of the Tort Liability Fund 09070-0511 to Ramsey County District Court, the sum of $600,000.00
in full antl £nal discharge of all claims brought pursuant to the Third and Maria natural gas explosion of July 22, 1993.
Requested hy Department of:
Adopted by Council: Date �� l�q�"�
— �—
Adoption Certified by Council Secretary:
By ' �. �� � � t
Approved by Mayor: Date t{�3�[q7
BY� �C - i
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Approved b�r for Submission to Council:
By: �
PreparedbySaintPaulButlgetOfiice H:WSERSIRENSHAlM123DATAV+M NDN99T9]MARIA 4/1]/97)
Approval Recommended by Budget Director:
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cirynttorne ans/9� GREEN SHEET NO. 32595
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TOTAL # OF SIGNATURE PAGES {(:LIP ALL LOCAITONS FOR SIGNATURE)
ACIIONREQUESIID
Approval of a resolution to settle lawsuits and claims made agains[ the CiTy arising from the gas explosion a2 Third Stree[ and MariaAvenue, on
July 22, 1993.
xECOnmm�mnnoxis-n�,o.K �w) o.z,9..a�y PERSONAL SERVICE CONTRACIS MUST ANSWER THE FOLLOWING QUES"CIONS:
PI.ANNMGCAhA9$40N _CNLLSERVICECObIId1AfISSION 1.HasthispersoNfumeverworkedmderacontractforlhisdepazmienY?
cmco� YES NO
_srnee _ 2. Has this persodFirm ever been a city employee?
msiwcrcovxT _ YES NO
sueeoa�swwcx co�c¢ os�cnve! 3. Does ihis person/firm possess a skill not nolmalty possessed by any current city employee?
YES NO
� (Explain all yes aoswers on separate sheet and atfaclt to green shcet)
IIJ[IIAIIIJG PAOHLEM, ISSIIE, OPPORiUNI]Y (tMO, Whar, Whrn, Whve, Why)
On July 22, 1993, a Saint Paut Pubiic Works sewer maintenance crew was engaged in a routine repair project at the intersection of Third
Street and Mazia Avenue. During excavaGon with a backhoe, a gas service line was allegedly shuck and the odor of natural gas noted.
Northern States Power Company was immediately notified and the crew began evacuating occupants of the adjacent buildings. At
8:50 a.m., the building exploded, killing three individuals, injwing many others, and causing extensive personal and real proper[y damage.
Sixteen lawsuits and more than rivo dozen claims were made against the City. The damages exceed the City's $600,000 statutory tort
limits of liability. Plainriffs and NSP asserted various theories of recovery against the City which they contended were not subject to the
liability caps. The City prevailed against those claims.
The Ciry has uutiated an interpleader acUon joining all plainriffs and claimants. The City now intends to deposit its statutory limits of
$600,000 with the Cour[ in exchange for an order entering fmal judgnent against the City in the amount of $60Q000, fully and fmally
dischazging the City &om all litigation arising out of the'explosion. The City Attomey's Office recommends approval of the settlement.
� A budget needs to be established to deposit the $600,000 with the Court. Money has been designated in fund balance for that
purpose. The attached resolution uses the fund balance as fmancing for the expenditure.
ADVANTAGFS IF APPROVED:
Settle complex litigarion.
DLSADVAM'AGES R�'APPROVED:
None lrnown.
DLSADVANiAGFS OFNOTAPPROVm.
Ongoing litiation.
rorac,�ounror�ranrvsncnox $60000000 cosnee,vervosswceren(cmcceorve> O rvo
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STATE OF MINNESOTA
COUNTY OF RAMSEY
City of Saint Paul,
Plaintiff,
-vs-
IN DISTRICT COURT
SECOND JUDICZAL DISTRICT
Case Type: Personal Injury/
Wrongful Death
Court File No. C9-qs-�sse
Gertrude Raths, individually, and
as trustee for the next of kin of
Gordon James Raths, decedent;
William E. Guthrie, trustee for, and
the next of kin of Donna Rae Guthrie,
decedent and William E. Guthrie,
executor of the estate of
Donna Rae Guthrie; Linda Diaz;
Ali Artoli; Maria Food Market
Corporation; Steven Folske; Staci
Folske; Jill D. Forget, as Trustee
for the heirs and next of kin of
Howard N. Husnik, Carolyn Baker;
Eric Lorens Brynestad;
Witcher Construction; 679 East Third
Street Investors Company, a Minnesota
corporation; Martha Ann Walker; Mary E.
Lappegaard; Marcella Lappegaard
Fairbanks; American Family Insurance
Group, a Wisconsin corporation;
Capitol Indemnity Corporation, a
Wisconsin corporation; Gayle E. Peterson
f/k/a Gayle D. Stangeland; Charles
Sinclair; State Farm General Insurance
Company; Northern States Power Company;
Bonny Anderson; Mike Brec7�an;
Terry J. Elert; Ibrahim E1 Aindi; Donald
Folske; Gabriel Gubash; Jim Hoag; Michele
Kazle; Michael Kwilinski; Logicom
Corporation; Jim Meath; John and Marion
Moyer; Vernett Naatz; Alan Sauers;
David Nordhausen; Randolph Parker;
Paul's Lounge, Inc.; Paul Damico;
Phillips Petroleum Co.; Mike Voss,
individually and d/b/a Roy's Phillips 66;
John and Marjorie Smith; Wirth Companies;
Vicki Lynn Weiss; John Williams;
Thomas J. Block; Michael Boland;
Clifford Lee Burgin, Jr.; Terrance Dahedl;
Tony Dozie; Dan Ehrman; Joanne Holmes;
Rachel Holmes, individually and as
guardian of James Holmes; Michael Hughes;
Bob & Cloann LaFontaine; Richard Lyons;
ORDER FOR INTERPLEADER
� :,
�t`1-`lL3
Steven McLevish; Daniel & Kimberly
Milligan; John & Maxine Milligan;
Darla & Deanna Parks; Roshawn Pickens;
Patricia Putmon; Margaret Roach;
Michelle Smith; Donald Wadley;
and Curtis Londroche, individually
and d/b/a Curtis Book,
Defendants.
The above-captioned matter came on for hearing before the
undersigned Judge of District Court on December 16, 1996 on the
City of Saint Paul's Petition in the Nature of Interpleader.
Petitioner City of Saint Paul (the "City") was represented by
Timothy E. Marx, City Attorney, and Frank E. Villaume III,
Assistant City Attorney. Various claimants were represented by
their attorneys of record who have previously appeared in In re•
Maria Avenue Natural Gas Exnlosion, Court File No. C9-95-6556.
The Court having considered the City's Petition in the Nature
of Interpleader, the City of Saint Paul�s Memorandum of Law in
Support of Its Petition in the Nature of Interpleader, and all
other memoranda submitted in response to the Petition, and having
heard the argument of counsel, hereby makes the following:
ORDER
1. The City of Saint Paul's Petition in the Nature of
Interpleader is hereby granted.
2. All claimants identified in the Petition (and any persons
claiming derivatively through the claimants identified in the
Petition) shall bring any and all claims they may have against the
City of Saint Paul, its agents and employees, arising out of the
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July 22, 1993 explosion at the intersection of Third and Maria, by
service of a summons and complaint on or before March 31, 1997.
3. Service of such summons and complaint may be accomplished
by mail addressed to Frank E. Villaume III, Assistant City
Attorney, 550 City Hall, 15 West Rellogg Blvd, Saint Paul,
Minnesota 55102. Service will be effective if mailed on or before
March 31, 1997.
4. Should any claimant identified in the City�s Petition (or
any derivative claimant) fail to serve a summons and complaint as
set forth above, the City will be discharged from any and all
liability to such claimant (and derivative claimant) for any
injuries or damages allegedly resulting from the July 22, 1993
explosion.
5. Any and all claimants (and derivative claimants) are
hereby enjoined from instituting and prosecuting any other or
additional action against the City of Saint Paul, its agents,
departments and employees for any injuries or damages arising out
of the July 22, 1993 explosion. This injunction applies to cases
already filed as of the date of this Order and any cases that may
be instituted thereafter. The claims against the City arising out
of the cases already filed are hereby interpleaded into this
proceeding. Those cases include: Artoli. et al. v. Citv of St.
Paul. et al., No. C1-93-8555; Diaz v. Citv of St. Paul. et al , No.
C1-93-11956; Baker v. Citv of St. Paul, et al , No. C5-94-2798;
Brynestad v. Citv of St Paul et al , No. C2-94-3181; Witcher
Construction v. Citv of St Paul et al , No. C2-94-6078; 679 East
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Third Street Investors v. Citv o£ St Paul et al , No. C7-94-7484;
Walker v. Citv of St. Paul, et al , No. CS-94-7483; Lanoeaaard, et
al. v. Northern States Power Companv et al , No. CX-94-7317;
Raths, et al. v. Citv of St. Paul et al , No. C2-94-2113; Guthrie.
et al. v. Citv of St. Paul, et al , No. C9-93-8688; Sinclair v.
City of St. Paul, et al., No. C1-95-9788; Peterson v. Citv of St.
Paul. et al., No. CS-95-8191; State Farm General Insurance Com�anv
v. City of St. Paul. et al , No. C3-96-2612; American Familv
Insurace Group v. City of St Paul et al , No. C3-95-8187;
Capitol Indemnitv Corp v Citv of St Paul et al , No.
C7-95-8189; and Randolnh Parker v. City of Saint Paul. et al , No.
C - -
6. After March 31, 1997, at which time all claims against
the City arising out.the July 22, 1993 e�losion must be asserted
or be barred. Since the Court has ruled for the City on both the
City's Motion To Limit Damages Or To Dismiss Lambertson
Contribution Claim and the City's Motion Re: Crossclaims of
Northern States Power Company, the Court shall, upon final
application by the City and upon the City�s deposit of its $600,000
stake with the Court, enter final judgment against the City, fully
and finally discharging it from all litigation arising out of the
July 22, 1993 e losion.
Dated: l
BY THE COURT �',
N \�
Jud e of Distric'
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