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Home My WebLink AboutPR 19604: INDUSTRIAL DISTRICT AGREEMENT WITH SUNOCO PIPELINE, L.P P. R. No. 19604 11/29/16 gt RESOLUTION NO. A RESOLUTION APPROVING AN INDUSTRIAL DISTRICT AGREEMENT WITH SUNOCO PIPELINE, L.P. WHEREAS, the City and Sunoco Pipeline, L.P. entered into an Industrial District Agreement per Resolution No. 11-526 for the years 2012 to 2016 at$62,500 per year; and, WHEREAS, the City and Sunoco Pipeline, L.P. desire to enter into a new agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Manager is herein authorized to execute a new Agreement with Sunoco Pipeline, L.P. on behalf of the City, in substantially the same form as set forth in Exhibit "A" attached hereto, for the years of 2017 to 2021 at $62,500 per year. Section 3. That all payments from previous years must be paid by Sunoco Pipeline, L.P. prior to the execution of this agreement. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of , A.D., 2016, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: s.pr19604 Mayor: Councilmembers: NOES: DERRICK FREEMAN, MAYOR ATTEST: SHERRI BELLARD CITY SECRETARY APPROVED AS TO FORM: r VALECIA R. ',ZENO CITY ATTORNEY APPROVED FOR ADMINISTRATION: BRIAN MCDOUGAL CITY MANAGER s.pr19604 EXHIBIT "A" s.pr19604 STATE OF TEXAS § COUNTY OF JEFFERSON § INDUSTRIAL DISTRICT AGREEMENT WITH SUNOCO PIPELINE, L.P. WHEREAS, the City of Port Arthur and Sunoco Pipeline, L.P. have an Industrial District Agreement which will expire on December 31, 2016 (approved per Resolution No. 11-526); and, WHEREAS, the City of Port Arthur and Sunoco Pipeline, L.P. desire to enter into a new Industrial District Agreement with respect to property described in Exhibit "A" that is located in tracts adjacent to West Port Arthur Road, and within the extraterritorial jurisdiction of the City; and, WHEREAS, these parties wish to address the following: (1) health and safety issues at the tank farm owned by Sunoco Pipeline, L.P., and procedures for the City's review thereof, (2) needs of the City to have a stable revenue source that is not materially affected by appraisal litigation, (3) the need to define backup services provided by the City, and (4) the terms of the new agreement; and, WHEREAS, both parties agree that there has been full and adequate consideration for each party's obligations under this Industrial District Agreement with Sunoco Pipeline, L.P.; and, WHEREAS, this agreement is authorized under Section 42.044 Local Government Code, Vernon's Texas Code Annotated, and the parties agree that the s.ida Sunoco pipeline 2017 1 following terms are reasonable, appropriate, and not unduly restrictive of business activities; and, WHEREAS, both parties find that this new Agreement, as delineated herein, is beneficial to each party. NOW THEREFORE, in consideration of the promises and the mutual agreements of the parties contained herein, the City of Port Arthur and Sunoco Pipeline, L.P. agree with each other as follows: Section 1. PAYMENTS BY SUNOCO PIPELINE, L.P. a) For the years 2017, 2018, 2019, 2020, and 2021, Sunoco Pipeline, L.P. shall pay to the City of Port Arthur $62,500 per year for the years 2017, 2018, 2019, 2020, and 2021, so long as this Industrial District Agreement is in full force and effect, and the Property described in Exhibit "A" is not annexed. b) The payments shall be made as follows: YEARS: AMOUNT OWED: DUE DATES: 2017 $62,500 October 15, 2017 2018 $62,500 October 15, 2018 2019 $62,500 October 15, 2019 2020 $62,500 October 15, 2020 2021 $62,500 October 15, 2021 c) The City shall not refund any moneys previously paid by Sunoco Pipeline, L.P., either directly or indirectly, to the City of Port Arthur. Section 2. If requested by Sunoco Pipeline, L.P., the City of Port Arthur's fire department shall provide backup fire suppression support, and the City of Port Arthur's s.ida_sunoco pipeline 2017 2 police department shall assist in providing an evacuation route in the case of a fire or a chemical release at the tank farm owned by Sunoco Pipeline, L.P. located in the City's extraterritorial jurisdiction. Nevertheless, Sunoco Pipeline, L.P. shall be primarily liable for taking such precautions as is expected in the industry, and as is required by federal, state, and local law, including the standard codes as delineated and referenced in the Standard Fire Prevention Code as published each year by the Southern Building Code Congress International, Inc. to (1) prevent fires, explosions, and chemical releases, (2) prevent the imprudent discharge of storm water that contribute to flooding on adjacent property, and (3) be prepared, together with local authorities, to evacuate the facility and surrounding area, as may be warranted by potential emergencies. Sunoco Pipeline, L.P. shall employ sufficient fire suppression personnel and equipment to provide an initial and primary fire suppression response, as well as to control and abate chemical releases. Sunoco Pipeline, L.P. shall provide the City's fire chief and police chief with emergency response plans. If there is a fire, and the City is requested to provide initial and primary fire suppression services, or if a clean-up is required under Section 2201.3.2.1 of the Standard Fire Prevention Code, Sunoco Pipeline, L.P. will pay the City the costs and expenses incurred by the City and any of its departments to the same extent that similarly situated parties would. Section 3. Sunoco Pipeline, L.P. shall notify the City of Port Arthur's fire chief, police chief, and the City's Emergency Management Coordinator of all incidents involving fires, serious injuries, deaths, and chemical releases that create a health and safety hazard to the community. s.ida Sunoco pipeline 2017 3 Section 4. If is specifically stipulated that nothing in this Agreement will, in any manner, enlarge, limit, or restrict the authority of the City to annex all or part of said lands and facilities during the period of the Agreement if the City should determine that such annexation is reasonably necessary to promote and protect the general health, safety, and welfare of the persons residing within or adjacent to the City; provided, however, the City agrees that such annexation will not be made for revenue purposes only. In the event of such annexation, Sunoco Pipeline, L.P. will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective, if the annexation become effective after January 1st of said year. Section 5. The City will not annex the property of Sunoco Pipeline, L.P., as delineated in Exhibit "A", under Chapter 43 of the Local Government Code, or file litigation in District Court to abate or prevent a nuisance or seek a civil penalty under Sections 54.016, 54.017, and 217.042 of the Local Government Code for "health, safety, and welfare concerns" until written notice of the concerns has been delivered to Sunoco Pipeline, L.P., and Sunoco Pipeline, L.P. has had an opportunity to respond and to address the City Council in open session. Section 6. If there is a dispute as to whether there is a health, safety, and welfare concern, the matter can, at the request of either party, be submitted to s.ida_sunoco pipeline 2017 4 arbitration before an arbitrator selected from a panel supplied by the American Arbitration Association. The arbitration shall take place in the City Hall of the City of Port Arthur, or at such other locations as the parties agree to. The request for arbitration must be demanded in writing within ninety (90) days of the initial written complaint from either party to this Agreement, or the arbitration is waived. The costs of the arbitrator shall be shared equally between the two parties. The arbitration process shall be completed within ninety (90) days from the date the arbitrator is selected, and if it is not so completed, either party may proceed with annexation or litigation, as they so desire. Section 7. This Agreement is effective the 1st day of January 2017 and shall expire on the 31st day of December 2021. [SIGNATURE PAGES FOLLOW] side sunoco pipeline 2017 5 SIGNED ON THIS THE day of , 2016. SUNOCO PIPELINE, L.P. BY: ACKNOWLEDGMENT STATE OF § COUNTY OF § BEFORE ME, the undersigned Notary Public, on this day personally appeared , known to me to be the person whose name is described to the foregoing instrument, and acknowledged to me that he/she executed the same as the act and deed of Sunoco Pipeline, L.P., for the purposes and consideration therein expressed, and the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE day of , A.D., 2016. NOTARY PUBLIC, STATE OF s.ida Sunoco pipeline 2017 6 SIGNED ON THIS THE day of , 2016. THE CITY OF PORT ARTHUR BY: Brian McDougal, City Manager ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned Notary Public, on this day personally appeared Stephen Fitzgibbons, City Manager, known to me to be the person whose name is described to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of the City of Port Arthur, for the purposes and consideration therein expressed, and the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE day of , A.D., 2016. NOTARY PUBLIC, STATE OF TEXAS AFTER RECORDING RETURN TO: CITY OF PORT ARTHUR LEGAL DEPARTMENT P. O. BOX 1089 PORT ARTHUR, TEXAS 77641-1089 s.ida Sunoco pipeline 2017 7 EXHIBIT "A" "AGREEMENT WITH SUNOCO PIPELINE, L.P." 68.51 ACRES OF WM. N. SIEGLER SURVEY ABSTRACT 48, TRACT 17 (HEBERT STATION) CAD 300048-002100 s.ida_sunoco pipeline 2017 8