91-1599 �R1G�NA�
, � , � Council File � � 9
� ,r, .
`�.,,.�'� Green Sheet # �
RESOLUTION
^ TY OF SAINT PAUL, MINNESOTA
� �
Presented By
Referred To Committee: Date
RESOLVED, that Council Fi No. 91-426, a resolution suspending the licenses of
Shaw Roofing & Construction, Inc., 1211 Randolph Avenue in Saint Paul, is hereby
amended to read as follows:
RESOLVED, that all of the licenses issued for Shaw Roofing & Construction,
Inc., at 1211 Randolph Avenue, Saint Paul, are hereby suspended for a period of one
year, commencing upon the date of publication of this resolution; and be it
FURTHER RESOLVED, that this suspension shall be stayed upon satisfaction of
the following conditions by the said licensee:
1. Make full restitution to the homeowners in this case in �e
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2. Pay the costs in the amount of $2,500.00, which have been
incurred by the Office of the City Attorney, the License and
Permit Division, and the Building Inspection & Design
Division, in the investigation and prosecution of this action,
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3. In such form as the License Inspector will require, advise
the License Inspector, in advance, of all work over the course
of the next year (twelve months from the date of publication
of this resolution) that the licensee will perform or has
contracted to perform within the City of Saint Paul; and
4. Meet with the License Inspector within ten (10) days of the
publication of this resolution to indicate its intent or lack of
intent to comply with these conditions, and the procedures
for implementing such conditions; and
5. Pull all required building permits for all work performed in
the City of Saint Paul.
FURTHER RESOLVED. that the Finc�inuc nf Fac.t an� �`nnclnsinnc nf T aw
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This resolution is based on the record of proceedings before the Administrative
Law Judge, including the hearing on January 28, 1991, the documents and exhibits
introduced therein, the arguments and statements of counsel for the parties on March 5,
1991, and the deliberations of the Council in open session. It is expressly noted that the
licensee did not appear on his own behalf or send any written statements challenging the
Report of the AI.J. The Findings of Fact and Conclusions of Law contained in the
Report of the AIJ, as amended by the Council and attached hereto as Exhibit A, are
attached hereto and are expressly incorporated in and made a part of this resolution.
A copy of this resolution, as adopted, shall be sent by first class mail to the
Administrative Law Judge, and to the licenseholder.
Yeas Navs Absent Requested by Department of:
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By:
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Adopted by Council: Date SEP - 5' 1991 Form Approved by City Attorney
Adoption Certi 'ed by Cou '1 ecretary By: . � ►�•��
BY� Approved by Mayor for Submiasion to
Approved b ayor: nate SEP - 9 1991 counci�
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED -
Finance/License GREEN SHEET N° 16475
CONTACT PERSON&PHONE INITIAUDATE INITIAUDATE —
R. Kessler/298-5056 �DEPARTMENTDIRECTOR �CITYCOUNCIL
ASSIGN �CITY ATTORNEY �CITY CLERK
MUST BE ON COUNCIL AGENOA BY(DATE) NUMBER FOR
ROUTING BUDGET DIRECTOR
For Hearing• 8/29/91 �FIN.&MGT.SERVICES DIR.
ORDER �MAYOR(OR ASSISTANT) � Council Research
TOTAL# OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
Amend Adverse License Action to Allow for Payment of Cost over a 12 Month Period
RECOMMENDATIONS:Approve(A)or Reject(R)
PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department?
_CIB COMMITTEE _ YES NO
_ STAFF _ 2• Has this person/firm ever been a ciry employee?
YES NO
_ DISTRICT COURT _ 3. Does this person/firm possess a skill not normall
SUPPORTS wHICH COUNCIL OBJEC7IVE7 Y possessed by any current city employee?
YES NO
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why):
The license holder (Shaw Roofing) has made restitution to the homeowner as required. He
seeks City Council approval of a 12 month time period for the payment of the costs assessed.
ADVANTAGES IFAPPROVED:
Will allow the contractor to obtain his license and continue to work in Saint Paul thereby
insuring his ability to make restitution payments to the homeowner.
DISADVANTAGES IF APPROVED:
May establish a precedent to allow licensees to pay civil penalties over time instead of
up front in one lump sum.
DISADVANTAGES IF NOTAPPROVED:
Will prevent the contractor from obtaining work in Saint Paul and will jeopardize restitutic
to the homeowner. (Minneapolis has also put a hold on his license until the Saint Paul
case is settled. )
TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED(CIRCLE ONE) YES NO
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CITY OF 5^INT P^Ul
INTERDEPARTMENTAL MEMORANDUM
August 21, 1991
To: Council President Wilson
Members of the City Council `
Fr: Robert Kessler �
License & Permit Manager
Re: Shaw Roofing Adverse Action
i� �'� � r.`:�
On July 26, 1991 the License Division asked the City Attorney..s, ' {�
Office to prepare a resolution to amend an adverse license acti`bn.. �.=�
approved by the City Council in March 1991 against Shaw Roofing.
Unfortunately the proposed amended resolution was placed on the
August 15th Consent Agenda by mistake. In addition the normal
"green sheet" was omitted therefore the rationale for the action '
was not communicated to the Council as it should have been. We
will make sure that similar occurrences do not happen in the
future.
In spite of these procedural omissions there are several valid
reasons for the City Council to re-consider its action in this
singular instance. The reasons include the following:
1) The main purpose in bringing the adverse action against the
contractor was to obtain restitution for the homeowner. The
assessment of costs coupled with an indefinite license suspension
jeopardizes the restitution because the contractor can not obtain
additional jobs without a valid license.
2) The cost of the restitution was substantial and it depleted
the contractor's funds. The establishment of a payment schedule
will allow the contractor to get additional jobs to insure that
restitution to the homeowner will be made on time.
3) The practice of charging for the full cost of adverse actions
had never before been enacted by the City Council. This was
therefore a situation in which precedents were being set. Since
the contractor chose not to be present for the proceedings his
absense may have had an aggravating affect on the amount of the
penalty and the time given for payment.
In light of the above factors the License Division felt it was
reasonable to ask for a reconsideration of this specific action.
No promises were made knowing full well that the decision was
entirely up to the City Council.
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U.S. $4, 255. 00 June ,5, 1991
PROMISSORY NOTE .
FOR VALIIE RECEIVED, the. undersigned jointly and severally
promise to pay to the order of Alexander and Marie Carruthers of St.
Paul, Minnesota, the sum of Four Thousand Two Hundred Fifty-five and
no/100 Dollars ($4, 255. 00) together with interest thereon from the -
date hereof at the rate of eight percent (8�) per annum, payable as
follows:
a. $1, 500.00 in certified funds on the date'�`of
execution of this Note,
b. $500. 00 on July 1, 1991; and
c. consecutive equal monthly installments of �
$200. 00 each, commencing on August 1, 1991, and
continuing on the first day of each and every month
thereafter until August l, 1992 when the then remaining
unpaid principal and accrued interest shall be paid in
full. Each such installment shall be applied first in
the payment of interest accrued through the date of the
installment payment and second to principal under this
Note, in inverse order of maturity.
All or any part of the . unpaid balance of this Note may be
prepaid at any time without penalty. Each such prepayment shall be
applied first to the payment of interest accrued through the date of
prepaym.ent and second to the payments of principal under this Note,
in inverse order of maturity.
In the event of default in the payment of any installment of
principal or interest hereunder, the undersigned jointly and
severally agree that the entire sum then remaining unpaid under this
i
Note shall become due and payable without any presentment, demand,
protest, or other notice of any kind. The undersigned jointly and
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�``�severally hereby waive notice of the acceptance hereof, demand,
presentment, protest, notice of protest, notice of dishonor and ��
notice of nonpayment of this Note. The undersigned jointly and
severally further agree that no extension of time, substitution or
surrender of collateral or other indulgences or forbearances granted
or allowed by the holder of this Note shall operate to relieve the
undersigned, or any of them, of any liability hereunder, the
undersigned jointly and severally hereby waiving all notice of
extension, substitution, surrender, indulgence or forbearance. The
undersigned jointly and severally further agree in the �vent of
default to pay to the holder of this Note all of such holder�s costs
of collection, including reasonable attorneys� fees.
The undersigned jointly and severally certify and warrant that
their respective correct and legal names are set forth hereinbelow;
that their respective signatures are authentic; and that Deborah Lyn
Shaw is duly authorized to execute this Note on behalf of Shaw
Roofing and Construction Company.
This Note is secured by a Security Interest in the following
property, to wit:
(i) all inventory now or hereafter owned or held by the
.. undersigned, or any of them, for sale or lease,
including but not limited to all goods, merchandise, raw
materials and goods in process;
(ii) all accounts receivable of the undersigned, or any of
them, including but not limited �to all accounts, notes,
drafts, instruments, chattel paper and documents;
(iii) all equipment of the undersigned, or any of them, of
every kind and nature;
f
(iv) all other tangible and intangible property of the
undersigned, or any of them, of every kind and nature;
and
2
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(�) proceeds of all of the foregoing.
��-/s�
�
De or h Lyn Shaw, i dividually
and doing business as Shaw
Roofing and Construction, Inc.
�.
---- '
i _� �._��' �`--�
�James Shaw, indiv3�r-dlly and
- doing business as Shaw Roofing
and Construction, Inc.
SHAW ROOFING AND COI�ISTRUCTION
COMPANy
BY
De ora n aw
Its _ ��P�_
STATE OF MINNESOTA)
) ss.
COUNTY OF HENNEPIN)
The foregoing instrument was acknowledged before me this � day
of June, 1991, by James Shaw, individually and doing business as Shaw
Roofing and Construction Company.
STATE OF MINNESOTA)
) ss. nOt�a��icBPE��
COUNTY OF HENNEPIN) RAM3EY COUNTY
M�►aoa�bn a�+res ro-1�e
The foregoing instrument was acknowledged before me this� day
of June, 1991, by Deborah Lyn Shaw, individually and doing business
as Shaw Roofing and Construction, Inc. ; and as
Roofing and Construction Company, on its behalf��� °f Shaw
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►
ANN M. 8PELT2
NGTARY PUBUC-M1tit1ESOTA
3 �►MS�r couNnr
�h►oo�nrwon.,�r�.�a�-ae
G������
ADDITIONAL.CONDITTONS ABOUT SHAW ROOFING AND CONSTRUCTION....
THESE ITEMS MUST LOOKED INTO AND THOROUGHLY CHECKED OUT '
1. DIRECT CITY STAFF AND LICENSING AND CIT'Y ATTORNEY'S OFFICE TO
FIND 4IJT IF SHAW ROOFING IS A
CORPORATIpN -__ LAWFLJI,Ly INCORPORATED IN MINNESOTA
SOLE PROPRIETORSHIP MAKES A DIFFERENCE FOR WORKERS
COMPENSATION.
2. DIRECT CITY STAFF TO DETERMINE IF SHAW ROOFING HAS A
PERMANENT ADDRESS AND DIRECT STAFF TO GO OUT AND MAI�E A
VISIT. FILE SHOWS THAT MANy ADDRESSES HAVE BEEN LISTED TO
SHAW.
3. DIRECT CITY STAFF TO CHECK INTO THE ISSUE OF WORKERS
COMPENSATION INSURANCE...
CITY STAFF MUST DETERMINE IF SHAW IS INDEED THE ONL,y
EMPLOYEE...AS STATED IN THE LICENSE APPLICATION FORM. DUE TO
THE FINDING OF FACT #15, TESTIMONY WAS GIVEN THAT SHAW HAD AT
LEAST 2 OTHER EMPLOYEES AFTER HE APPLIED FOR THE LICENSE. IF IS
TRUE, THEN HE MUST HAVE WORKERS COMP COVERAGE, VVHEN HE DID
THE JOB IN QUESTION, THE STATE OF MINNESOTA RECORDS SHOW THAT
SHAW ROOFING DID HAVE COVERAGE, BUT WAS A PARTNERSHIp.
'r � J ��lf-f.�'�'�
;O; anice Rettman
716 City Hall
CITY OF SA1NT PAUI
INTERDEPARTMENTAL MEMORANOUM __
August 21, 1991
To: Council President Wilson
Members of the City Council
Fr: Robert Kessler �'-�
License & Permit Manager
Re: Shaw Roofing Adverse Action .
On July 26, 1991 the License Division asked the City Attorney�s
Office to prepare a resolution to amend an adverse license action
approved by the City Council in March 1991 against Shaw Roofing.
Unfortunately the proposed amended resolution was placed on the
August 15th Consent Agenda by mistake. In addition the normal
"green sheet" was omitted therefore the rationale for the action
was not communicated to the Council as it should have been. We
will make sure that similar occurrences do not happen in the
future.
In spite of these procedural omissions there are several valid
reasons for the City Council to re-consider its action in this
singular instance. The reasons include the following:
1) The main purpose in bringing the adverse action against the
contractor was to obtain restitution for the homeowner. The
assessment of costs coupled with an indefinite license suspension
jeopardizes the restitution because the contractor can not obtain
additional jobs without a valid license.
2) The cost of the restitution was substantial and it depleted
the contractor's funds. The establishment of a payment schedule
will allow the contractor to get additional jobs to insure that
restitution to the homeowner will be made on time.
3) The practice of charging for the full cost of adverse actions
_ had never before been enacted by the City Council. This was
therefore a situation in which precedents were being set. Since
the contractor chose not to be present for the proceedings his
absense may have had an aggravating affect on the amount of the
penalty and the time given for payment.
In light of the above factors the License Division felt_ it was
reasonable to ask for a reconsideration of this specific action.
No promises were made knowing full well that the decision was
entirely up to the City Council.
� � � � . �q�����
Council President Wilson
Page 2
August 22, 1991 �
It was not and is not the intention of the License Division to set
a precedent to seek City Council reconsideration of certain adverse
actions. However, unlike adverse actions on liquor and food
licenses there is little experience to guide us on adverse actions
involving other types of businesses.
The Shaw case and other recent examples such as the Medalist and
the Dext Company suggest that there is a need to clarify certain
aspects of the process. We will develop a draft policy
recommendation for your review and consideration in the next few
weeks. In the meantime please do not hesitate to call if you have
further questions or concerns.
cc: Mayor James Scheibel
Richard Gehrman
Phil Byrne
Jane McPeak
James Shaw
,�