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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 • . - = /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- , -: �