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Home My WebLink AboutPR 19603: APPROVING IDA AGREEMENT WITH COLONIAL PIPELINE COMPANY P. R. No. 19603 11/29/16 gt RESOLUTION NO. A RESOLUTION APPROVING AN INDUSTRIAL DISTRICT AGREEMENT WITH COLONIAL PIPELINE COMPANY WHEREAS, the City and Colonial Pipeline Co. entered into an Industrial District Agreement per Resolution No. 11-524 for the years 2012 to 2016 at $25,000 per year; and, WHEREAS, the City and Colonial Pipeline Company 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 Colonial Pipeline Company 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 $25,000 per year. Section 3. 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.pr19603 Mayor: Councilmembers: NOES: DERRICK FREEMAN, MAYOR ATTEST: SHERRI BELLARD CITY SECRETARY APPROVED AS TO FORM: VALECI+ ' STI AMP.— CITY A OR /Y APPROVED FOR ADMINISTRATION: BRIAN MCDOUGAL CITY MANAGER s.pr19603 EXHIBIT "A" s.pr19603 STATE OF TEXAS § COUNTY OF JEFFERSON § INDUSTRIAL DISTRICT AGREEMENT WITH COLONIAL PIPELINE COMPANY WHEREAS, the City of Port Arthur and Colonial Pipeline Company have an Industrial District Agreement which will expire on December 31, 2016 (approved per Resolution No. 11-524); and WHEREAS, the City of Port Arthur ("City") and Colonial Pipeline Company ("Colonial") 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 pumping facility owned by Colonial Pipeline Company, 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 Colonial Pipeline Company; 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 colonial pipeline 2017 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 Colonial Pipeline Company agree with each other as follows: Section 1. PAYMENTS BY COLONIAL PIPELINE COMPANY a) For the years 2017, 2018, 2019, 2020, and 2021, Colonial Pipeline Company shall pay to the City of Port Arthur $25,000 per year for the years 2017, 2018, 2019, 2020, and 2021, so long as the Company owns the property (the "Property") described in Exhibit "A", this industrial district agreement is in full force and effect, and the Property is not annexed. b) The payments shall be made as follows: YEARS: AMOUNT OWED: DUE DATES: 2017 $25,000 September 1, 2017 2018 $25,000 September 1, 2018 2019 $25,000 September 1, 2019 2020 $25,000 September 1, 2020 2021 $25,000 September 1, 2021 c) The City of Port Arthur will mail out an invoice to Colonial Pipeline Company by August 1st of each year. If the payments are not postmarked by September 1st of each year, Colonial Pipeline Company will also pay the City a late fee of 1% per month. s.ida colonial pipeline 2017 2 d) The City shall not refund any moneys previously paid by Colonial Pipeline Company, either directly or indirectly, to the City of Port Arthur. Section 2. If requested by Colonial Pipeline Company, the City of Port Arthur's fire department shall provide backup fire suppression support, and the City of Port Arthur's police department shall assist in providing an evacuation route in the case of a fire or a chemical release at the pumping facility owned by Colonial Pipeline Company located in the City's extraterritorial jurisdiction. Nevertheless, Colonial Pipeline Company 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. Colonial Pipeline Company 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. Colonial Pipeline Company 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, Colonial Pipeline Company will pay the City the s.ida colonial pipeline 2017 3 costs and expenses incurred by the City and any of its departments to the same extent that similarly situated parties would. Section 3. Colonial Pipeline Company 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. 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, Colonial Pipeline Company 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. Under no circumstances will Colonial Pipeline Company pay an "in lieu of tax" payment, and a tax to the City for the same year. Section 5. The City will not annex the property of Colonial Pipeline Company, 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 s.ida colonial pipeline 2017 9 SIGNED ON THIS THE day of , 2016. COLONIAL PIPELINE COMPANY 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 Colonial Pipeline Company, Inc., for the purposes and considerations 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 colonial pipeline 2017 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 Colonial Pipeline Company, and Colonial Pipeline Company 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 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] s.ida colonial pipeline 2017 5 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 Brian McDougal, 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 considerations 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 colonial pipeline 2017 EXHIBIT "A" AGREEMENT WITH COLONIAL PIPELINE COMPANY 9 . 035 ACRES OF W.M. SIGLER SURVEY ABSTRACT 48 , TRACTS 32 , 33 & 53 ACCOUNT NO. 300048/000500 (REAL PROPERTY) ACCOUNT NO. 504700/000260 (TANKS) ACCOUNT NO. 504700/000290 (TANKS) ACCOUNT NO. 504700/000280 (HEBERT STATION PUMPING FACIITIES) ACCOUNT NO. 504700/000270 (AUTOS, FURNITURE & FIXTURES) s.pr19603 exhibit