HomeMy WebLinkAboutPR 14729: TEPPCO - ABATEMENT AGREEMENTinteroffice
MEMORANDUM
To: Mayor, City Council, and City anager~y /
From: Mark Sokolow, City Attorney ~/
Date: May 15, 2008
Subject: P. R. No. 14729; Council Meeting May 20, 2008
Attached is P. R. No. 14729 as it pertains to TEPPCO and its
Abatement Agreement. The City Council has various options in
Section 2 that they need to decide. On May-14th, I was contacted
by John Johnson and he is requesting that this matter be tabled.
They also recently had a job fair. Also attached is a letter
from Mr. Griffith. He is also asking that this matter be
postponed and reviewed in August.
MTS:ts
Attachment
cc: TE PRODUCTS PIPELINE COMPANY, LLC
P. O. Box 4018
Houston, TX 77210-4018
Carl R. Griffith & Associates
z.pr19729 memo
P. R. No. 14729
05/15/08 is
RESOLUTION N0.
A RESOLUTION AS IT PERTAINS TO TEPPCO AND ITS
ABATEMENT AGREEMENT
WHEREAS, per Resolution No. 07-358; the City Council
authorized a tax abatement agreement with TEPPCO• and
WHEREAS, per Resolution No. 08-150, the City Council
authorized the City Attorney to do the following and also
required certain requirements of TEPPCO as follows:
• That the City Attorney was authorized to notify TEPPCO
of the terms of this Resolution that the City Council
may terminate this agreement on May 20, 2008 unless
TEPPCO takes such actions, which includes, but is not
limited to, providing a copy of the requests for
proposal or bid documents to contractors and
professionals, advertisements, construction contracts
• issued, as well as documentation on the solicitation,
if any, of Port Arthur contractors, professionals, and
residents to do the work on the project, as well as
their analysis of the proposals and qualifications.
• That TEPPCO shall also submit such contracts for the
project as predated July 31, 2007.. This includes their
contract with engineers, construction agreements, and
Motiva.
• That if TEPPCO believes that the information is
confidential,- TEPPCO shall still produce the
documentation and delineate what portion of the
materials are confidential and the City will not allow
public access thereto unless the Attorney General
determines that it is an open record as delineated in
Chapter 552 of the Government Code.
• That the City is concerned as to the following acts or
omissions of TEPPCO:
• Failure to file a full report on March 1,
z.pr14'129
2008
• Failure to supplement the report with all the
information and documentation as requested by
the City
• Not providing opportunities for Port Arthur
companies, professionals, and residents to
participate in the project to the extent as
required in the abatement agreement
• That TEPPCO shall be required to inform the City as to
how TEPPCO or affiliated companies plan to cure said
deficiencies by showing how it will provide immediate
opportunities to Port Arthur companies, professionals,
and residents to participate in the remainder of this
project or in future projects as to account for the loss
.revenues and opportunities that the Port Arthur companies
and residents have already incurred.
and;
WHEREAS, an•agent of TEPPCO has responded to the City's
requests, as delineated in Exhibit "A"
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2.
following:
That City Council herein authorizes the
• Termination of the Agreement with TEPPCO, effective
June 30, 2008, for TEPPCO's failure to comply with
Resolution No. 08-150;
or
• TSPPCO shall respond with all of the information, as
required in Resolution.NO. 08-150 by July 30, 2008, and
this matter will subsequently be reviewed at the
Council Meeting of August 5, 2008, -and the City Council
Z.pI19729
reserves the right to terminate the Abatement Agreement
at that time or take other action.
Section 3. That a copy of the caption of this Resolution
be spread upon the Minutes of the Corporation.
READ, ADOPTED AND APPROVED on this day of
A.D., 2008, at a Meeting of the City Council of
the City of Port Arthur, by the following vote: AYES:'
Mayor
NOES:
Mayor
ATTEST:
TERRI HANKS, ACTING CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
z.pr 14729
EXHIBIT "A"
z.pr19']29
,..
4
£~_~_ _~ ~1-~Il~~, ~o ~ulf~dlE~~'Tl'~t
~-- r & Associates, Inc:
Sfirrtcgfc~supporl fo Lnsincss, indushj midgi»•criuueiih
'_901 Turllc Cn'rl;.ntivc.-Suite 101 • Purt r\rihur.leas 77(q' • d(17 T__'.510f1. •-las 4119.7_'2.i10I '• )y ~rwsad rcri fliih.cnm
May I5, ?OOi;
]don. Deloris:"BoUb:ie'"Prince, Mayor.
and the-Port Arthur Gity Council
P. O: Boa'1039
Puff Arthur, Texas 776=}1
RE: TEP.PCO TA.'~ ABATEMENT
Deai'. Mayor and- Council:
My:fiint lras Ueenworki~g with TEI?PCO representatives.for he last mai~tli to assist the
conipanyin addressing,various questionsthatlrave arisenaelating to the project,
gegerally, and specificallywith regard to the company'sfaxabatement agreement with
the Cifiy:
As you know;,.Couneil;aijopteil Resolution OS-1:50 at.itS Aliril 8°',tneefing. The resolution
raised questions regarding the extentto wlaiclt TEPPCO ]ias given Port. Arthur comp2tiies
oPlaortnnities to,particiliate in the Project mtd provided that the Council avould'consider
terminating the agreement at the May 20°i 9neetiitg. I i~~ould ask fire Council to table-(or
cancel al(ogether) action on the TEPPCO agreement and allow my firm to cgntinue
assisting the company as whey work to address these issues:
I tUought the Council's suggestion foe a public meeting was very lielpfuL.As you may
know; that meelitg took Place last night, was tvelhatteiided;and, (believe, well-received
by most>people irnatlendance.
TEPPCO:is genuinely coitceined with creatingopportuni~ies for Port Arthur' vendors,
suppliers and: sub-conn'actors to participate botli:in the construction phase of he project
and once the prujeehis operational In addition, we will be conducting a job fait- at wliicla
citizens of Port Arthur vti~ill-lie able,tu get information on job opportunities. witli.TEPPCO.
and its contractors. Thoserecivihnent and:procuremenYprocesses tvil] take souse time to
yield results, perli5ps.as tituch as six weeks to hvo months.
Under the agreement, we understafidihete is another relSorling req'uirenient as of August
1'": It is TEPPCO's intent t4 hire a(-least five pei~nanent employees b:y July 151. I would
ask you to alloii~ the company to make:its report on opportunities for local_t~endors,
suppliers and Por[ ArdturcilizensatCity Council meeting nearest to Augustilst.
Page 2,
As always, 1 look forward to working with Council acid staffonahis and other projects fo
en]ianceahe City of Part A;dmr.
C~cvC_ lY~
Carl R. Griffith
President K. CGO