Loading...
HomeMy WebLinkAboutPR 15001 INDUSTRIAL DISTRICT AGMT. W/CHEVRON USA1 t ~ To:~ Nlayor, C~ity~Council,~and City Manager- ~~ ~ From: ~Mark Sokolow, City Attorney ~~~ . Date: December 12, 2008 . ~ ~ ~ .. Sub~ject: P. R.~No.~15001; ~ ~ ~ ~~~ Special Counci.l Meeting December~l5, 2008 ~ ~ Regular Council Meeting December 16, 2008 ~ Attached is~P.~ R. No. 15001~authorizing the City Manager to execute an Industrial District Agreement~with Chevron USA,~ Inc. ~ We ,~ ~are~asking the companies~to review~the attachments to make certain ~that we have the latest legal~descriptions, drawings and ownership inf ormat ion . . ~. , Mr. Morisse of Chevron is still reviewing the Industrial District Agreement and the attachments. . ~ MTS:ts •~ Attachment ~ Copy to: Director of Finance ~ Mr. Morisse ~ ~ ~ CHEVRON USA z.pr15001 memo ~ P. R. No. 15001 12/12/08 ts ' ~ RES4LUTION N0. ~ A RESOLUTION AUTHORIZING THE CITY MANAGER TO , EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH CHEVRON USA, INC. WHEREAS, the City Council of the City of Port Arthur deems it in the best interests of the citizens of Port Arthur to enter into an "In Lieu of Tax" Agreement with Chevron USA, Inc~.~ ~, NOW THEREFORE BE IT RESOLVED BY THE CITY COUN~IL OF THE CITY - ~ , . OF PORT ARTHUR: tion 1. That the facts and opinions in the preamble Sec are~true and correct. Section 2. That the C-ity Council hereby authorizes the ~ ~ cute an ~~In Lieu of Tax" Agreement with Chevron Czty Manager to exe in substantiall the same form as attached hereto as USA, Inc . , Y Exhibit "A". ~ ction 3. That Chevron, USA, Inc. shall sign and return, Se ~~ mber 23 2008, or this Resolution is null~and the Agreement by Dece , ' nd the ro ert described herein is annexed, effective vold a p p Y 31 2008 at 11:59 p.m., as further delineated in P. 0. No. December , 5925. ' , tion 4. That a copy of the_caption of this Resolution ~ Sec be s read u on the Minutes of the City Council. ~ p p READ ADOPTED AND APPROVED on this day of - ~ ' f the Cit Council of the City o~f Port A.D., 2008, at a Meeting o y , z.pr15001 , , . ~ Arthur, by the f ollowing ,vote : AYES : Mayor ' Councilmembers ' ~' , ; ._. NOES : ~ ~ ~ ' , .- ~ . E MAYOR - ATTEST: TERRI HANKS, ACTING CITY SECRETARY APPROVED AS TO FORM: ~ ~.~. CITY ATTORN~Y 1 APPROVED FOR ADMINISTRATION: CITY MANAGER . z.pr15001 ~ G~ ~` „ ` STATE OF TEXAS ~ ~ COUNTY OF JEFFERSON ~ INDUSTRIAL DISTRICT AGREEMENT WITH CHEVRON U.S.A., INC. (2009} WHEREAS, in December 2003, the City of Port Arthur (hereinafter referred to as the "City" ) and Chevron U. S.A. , Inc. entered into an Industrial District Agreement for the ~ Chevron facility providing for the payment to the City of Port Arthur of $150,000 per year from 2004 to 2008; and, ~ ;. v. WHEREAS, the Industrial District Agreement was ~ approved by Resolution No. 03-354 and expires on December 31, 2008; and, WHEREAS, the assessed value on this facility has grown over the~ years , t~o the JCAD assessed va3.ue of at ~least ~ $80,210;640; and ~ ~ ~ WHEREAS, the City Council is concerned as to the ~nemployment rate of Port Arthur residents; and, WHEREAS, the City Council is interested in maximizing ~ob opportunities and contracting opportunities for Port Arthur residents and Port Arthur businesses and contractors. The Council is interested in working with ~ industry and Lama r State College-Port Arthur to obtain sound information , on current hiring and procurement~ 1 ~ . _~ _ 1 ' z.ida chevron 2009.12.1 efforts, including results, and working with industry and the Port Arthur City Council to tr~ to increase employment opportunities for Port Arthur residents and procurement for Port Arthur companies; and WHEREAS, the Council also believes improved ~opportunities for minority and women-owned businesses is ~_-TI important ; and ~ __ .WHEREAS, Company hiring and procurement experience and .. efforts to increase Port Arthur resident hiring and,Port Arthur procurement opportunities'~will be considered by the , Council in future in-lieu of tax contractual agreements; and WHEREAS, the Company will provide updated written reports at such intervals as requested by the City during the term of this Agreement; and ~ WHEREAS, the Company owns the property described in Attachment "A"; and ~ WHEREAS, the City and the Company desire to enter into an Industrial District Agreement with respect ,to the property described in Attachment "A" that is within the extraterritorial jurisdiCtion of the City; and ~WHEREAS, the City and the Company agree that there has been full and adequate consideration for this Agreement; and ~ ~ ' r . z.ida chevron 2009.12.1 2 / i C WHEREAS, this Agreement is authorized under Sections 42.044 and 212.172 Local Government Code, Vernon's Texas Code Annotated and Article 1, Section 5 of the City's Charter, and that the parties agree that the following terms are reasonable, appropriate, and not unduly restrictive of business activities; and WHEREAS, all parties find that this Agreement, as .~ : ~ . delineated herein, is beneficial to each party. NOW, THEREFORE, in consideration of the promises and t~e mutual agreements of the parties contained herein, the ' City and the Company agree with each other as follows: Section 1-Pa~ments by the Company (a) For the year :2009, the Campany shall pay to the City the arnounts delineated in this Section so long as this Industrial District Agreement is in full force and effect and all of the property described in Attachment "A" is not annexed by the City. ~ ~b) The Company shall pay to the City of Port Arthur amounts equal to seventy-five percent (750) of the amount of taxes that the Company would have paid to the City with respect to the land, improvem,ents, units, equipment, inventory and all other property located on the land, described in Attachment "A", as. if they had been located ~ z.ida chevron 2009.12.T 3 , ~ within the corporate limits of the City of Port Arthur. The 1"In Lieu of Tax" payment shall be paid by October 15, 2009. , ~c7 The City shall not refund or credit any monies previously paid by the Company prior to the dat`e of the execution~ of this Agreement, either directly or indirectly, - to the City. Except as delineated in Section 15, once `~ monies are paid to the City of Por't Arthur on October 15, 2009, the City shall not refund or credit any of said monies. Section 2. In working with the City Council, the Company shall also do the following: (a) The Company will notify the City Council and post 'ob o enings with the ~Texas workforce in Port 7 p ~ Arthur. The Company will also request that its contractors and subcontractors notify the~ Task Force and post its job openings with the Texas Workforce in Port Arthur. (b) The Com any will notify the following of j ob p ~ openings: • City of Port Arthur • ~f f icial newspaper of the City . • Texas Work Force Commission • Lamar State College of Port Arthur z.ida chevron 2009.12.1 , 4 ~ Port Arthur ISD ~ ~ Sabine Pass ISD ~ ~ • Port~Arthur Labor Unions ~ Digital Work ForCe • Associations representing historically ~ underutilized segments of the. population i.n Port Arthur who seek to be notified of job opportunities The Companyt will also request that its contractors and subcontractors notify the above ~ nine entities of job openings. ~ ~ , (c) The Company will make reasonable efforts to break ~ , ~~ up contracts to allow Port Arthur contractors the opportunity to bid on projects. (d~) The C~ompany will~~ include a provision in the Company's contracts with its prime contractors, which requires the prime contractors to read and , comply with t~e terms of this Agr~ement relating to the use of Port Arthur vendors, suppliers, ' n ls and historicall subcontractors, professlo a , y underutilized~ businesses and segments of the population. . ~ z.ida chevron 2009.i2.1 5. (e) The ~ Company and its contractors will pay at least the prevailing wage, as reasonably set by the ' City, in accordance with Chapter 2258, Texas - f Government Code, V.T.C.A. Section 3. If requested orally or in writing by the Company, the City's Fire Department shall provide back- , up Fire Suppression Support as determined by the City's ~ . , Fi~e~ Chief, and the City's Police Department shall assist in providing an evacuation route and traf f ic control in the case of '~a fire or a chemical release at the Company's facilities located in the City's extraterritorial jurisdiction. Nevertheless, the Company shall abide by and shall take such precautions as to prevent (1) fires, explosions and chemical releases and (2) the imprudent discharge of storm water that contribute to flooding on ~ ~ ad'acent roperty. The Company shall also provide an 7 p evacuation as is expected in the industry, and as is required by applicable federal and state laws, and the , health and~safet laws~of t~he City. The Company shall ~~ Y em lo or rovide sufficient primary fire suppression p Y p r res onse, as well as control and abate chemical releases. ~ p , The Company shall provide the City's Fire Chief and Police Chief with Emergency Response Plans for any plants, refineries, chemical operations or .other hazardous z.ida chevron 2009.12.1 6 ~perations that take place on the land; described in Attachment "A". If there is a fire and the City is ~ requested to provide in~.tial and primary fire-suppression services or if a clean up is required, the Company will pay to the City the costs and expenses incurred by the City and any of its departments or of any of its affiliated providers, i,e. ambulance companies that.are called to the scene. - Section 4. The Company shall immediately notify the central di~spatch office which serves ~the City's Fire ~hief, Police Chief, and the City's Emergency Management Coordinator of all incidents involving fires, serious 4 injuries, deaths, chemical releas.es and flooding that ~ create a health and safety hazard to the community or that exceed OSHA, TNRCC or EPA permissible exposure limits. Section 5. Annexation for Health, Safety and 1 ~ Welfar-e Reasons. It is specifically stipulated that nothing in this Agreement will in any manner limit or restrict the authority of the City to annex all or part of said lands and facilities during the period of the A reement if the City should determine that such annexation g is reasonably necessary to promote and protect the general health, safet , and welfare of the persons residing within Y or adjacent to the City, provided however, that the City :-._=~1 , , z.ida chevron 2009.12.1 ~, ~ ~ agrees that such annexation for the land desCribed in Attachment "A" prior to October l, 2009 will not be made for revenue purpos-es only. Section 6. Annexation due to Legislative Action. No~withstanding the provisions of Section 5, the parties agree and consent that the City may annex if a bill is adopted by the State legislature which limits or restricts ~ ~the authority of the City to annex all or part of said land and improvements. In the event of annexati~n, the Company wil.l not be required to make fu~ther payments under this ., ~ ~ A reement for any calendar year commencin~ after annexation g with respect to the ~property so annexed, but shall nevertheless be obligated to make full payments fo~r the ear durin which such annexation becomes effective if the Y g annexation becomes effective after January lst of said year. ~ ' The Company shall not be required to pay ad valorem taxes to the City for the same period of time they have already aid an "in lieu of tax" payment, with respect to the p ro ert described in Attachment "A" to this Agreement. If p p Y for any reason, the City can not annex the property of the Com any and if the parties cannot reach an agreement on a p new payment sChedule or on a new "in lieu of tax" s ^ agreement, the Company~agrees that it will continue to pay ~~ . to the City the "in ~lieu of tax" payments delineated; in ~ , z.ida chevron 2009.12.1 1 Section 1 until December. 31, 2009, and it will thereafter continue to annually pay the City an "in lieu of tax" , payment of seventy five percent (750) of its taxable value times the, City's tax rate for so long as it or~ its assignees and successors or affiliates own the property „ as described in Attachment "A". Payments will be due on October 15th of eaeh year. Pursuant to Sections 42.044 and 212.172 Local Government Code, the Company agrees and consents that the City has the option, in the City's sole ' discretion, to extend _this contract and that the Company will continue to annually pay the City "in lieu of tax" payments at the seventy=five (750) rate, as denoted above, for successive periods not to exceed 15 years each, for a , total duration not to: exceed 45 years, or the maximum period allowed by law, whichever is longer. "Taxable value" is the value as determined by the Jefferson County Appraisal District in appraisal rolls after the completion of all litigation and appeals (if any), of all property, ~ ' ~ ' ' e ui ment ~ land, lndustrial realty, improvements, units, q p , inventory, and all other property, excluding the value of ~ ;. exempt pollution control devices, owned or leased by the Company and located within the extra-terr~itorial. jurisdiction of the Ci~ty, as described in Attachment "A". . The "taxable value" also includes the assessed value of any ~ z.ida chevron 2009.12.1 9 , , property that is located in a foreign trade zone or in any other type of federal, state, or local zone. Section 7. The parties agree that the City has the ~sole discretion, after October 1, 2009, to annex tne . , ro erty,in Attachment "A" or to enter into negotiations on p p the payment by the Company of additional "in lieu of tax" : payments. Section 8. The present owners ana lessees oz Lne , , ~ land, improvements, units, equipment, inventory, and all other property located on ,the land in Attachment "A" are described in Attachment "B". The City reserves the right to , . annex that tract or parcel with the minimum required ~ ad'acent area, as per Chapter 43 Local Government Code, if J the owners or the lessees do not.pay an "in lieu of tax" a ent for its interest in the land, improvements, units, p Ym e ui ment, inventory, ~and all other property located on the q p ro ert as described in Attachment "A". Nothing p p Y~ contained herein shall be construed to prohibit or prevent the Company from paying the other owners' or lessees' "in lieu of tax" payment to prevent annexation by the City. If the City annexes a tract or tracts, the total "in lieu of tax"~ payment will be reduced by the same percentage as the assessed value of the tracts tunder the contract are reduced. z.ida chevron 2009.12.1 10 Section 9. If the Company desires to assign this A reement to any person, the Company shall provide written 9 notice of such assignment and shall receive the written consent of the City Council, by a dul~r adopted Resolution, which will not be unreasonab~y withheld. The Company shall provide the description of the new Company and such other information as is reasonably requested-to indicate that the ~ new Com an will safely operate the facility, act as a good p Y corporate citizen, and will fully abide by the terms of this agreement. If the assignment is approved by the City Council, the Company shall be relieved of its obligations under this Agreement to, the extent that an assignee expressly assumes the Company's obligat,ions. Subject to ~ the recedin , this Agreement shall inure to the benef it of p, g and be binding upon the parties hereto and its respective ~ successors and assigns. ~ ~ , Section 10. It is agreed by the parties to this ~ . . Agreement that the Company and the City have the right to seek equitable relief, including specific performance of ~ this Agreement. Section 11. The Company shall allow a reasonable number of authorized employees and/or representatives of the City who have been designated and approved by the City Manager, City Council, or Mayor to have access to the z.ida chevron 2009.12.1 11 ~ ~ ,~ ~ . -1 / Company land and/or plants during the term of this ~ Agreement to inspect the plants and any improvements thereto to determine compliance with the terms and conditions of the Agreement. All inspections will be made at mutually agreeable times and will only be conducted in such manner as to not unreasonably interfere with saf~ty standards and security standards and rules~. Al1 - inspections will be made with one or more representatives of the Company and in accordance with industry safety standards. ; . „ . ~ Section 12. The Compan~r shall participate in the ~ , Port Arthur Industrial Group during the life of this ' ~ , Agreement in order to assist in the establishment of ~ - ~ ~ ; ~ , apprenticeship, ~internsh~ip, and/or ~education programs and ~~ . ~ ~ ; projects for the training of Port Arthur residents for ~ ~ ~ ~ ~ , w ~ ~~ perr~anent jobs in the Port Arthur area. The Company ~ ; # ~ . M further hereby agrees to request and encourage its ~ ~ ~ 1 . d ~ ~ contractors and subcontractors to establish and fund their ~:' ~ , . ~ ~ own apprenticeship, internship, and/or education progr-ams ~ ~ , ~ ~ . ~ ~ and projects for the training of Port Arthur residents for : ~ ~{ d ~ ~ permanent jobs in the Port Arthur area. ~ ~ A ~ ~ ~ Section 13.~~ The City reserves the right to~ hir~e~or ' f~ ~ , , p contract for a monitor as~to lnspect the Company's records ~ ~ ~ P and hiring practices in accordance with this Agreement as ~ z.ida chevron 2009.12.1 12 ~ ! to verify whet~er~ the Company has complied and will continue to comply with this Agreement. ~ection 14. , The Company certifies that they have not, and will not, knowingly 'employ an "undocumented worker" which means an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to ( be employed in that manner in the United States. The Company acknowledges that it has reviewed Chapter 2264, Texas Government Code, and hereby affirmatively agrees to repay the amount of any incentive with interest at the rate of ten percent (10 0) per annum, not later than the 12 Oth day after the date the City notifies the Company of a violation. The Company acknowledges the C'ity may bring a civil action as to recover any amounts owed under this Chapter, and further acknowledges that the City may recover , court costs and reasonable attorney`s fees incurred ~in , bringing an action under Section 2264.101, Texas Government Code. The Company will also promptly report to the City any "undocumented worker" that is improperly retained by s , its contractors or subcontractors on its facility. ~ Section 15. Information on property values. The Company shall file, in writing with the Director of Finance of the City, an itemized rendition by affidavit, , ~ ., . _ ~ 1 z.ida chevron 2009.12.1 13 in the same form and manner as required by State Law,;for rendition of property for ad valorem tax purposes, of all its properties (land, impravements, units, equipment, inventory, and all other property~ real, personal and ,, mixed. The Company shall provide to the City a copy of all pleadings and discovery filed in any litigation or protest that the Company has with Jefferson County Appraisal ~ District. Pending final determination of any tax protest filed by the Company with the Jefferson County Appraisal Review Board, or appeal thereof, the Company shall pay to City, on October 15, 2009, the amount calculated based upon the value of the property reflected on the most recently adopted appraisal roll prepared by ~or f or Jef f erson County Appraisal District. If the final determination of a protest or an appeal reduces the value of the property~ after Company has tendered payment to the City hereunder, the Company's liability hereunder shall be recalculated based on the final determination of value, and City shall in its discretion, after the.final determination of such protest or appeal, either credit toward future "In Lieu of . ~ Tax" agreements or refund to Company, the difference between the amount actually paid hereunder and the amount for which the~ Company is determined to be liable, without interest. Under no circumstances, shall there be a refund ,. ~ - r' z.ida chevron 2009.12.1 14 or a credit of more than ten ( l0 0) of any "In Lieu of Tax" payment made. Section 16. Electrical Usage. The Company will provide the City with information as to the electrical consumption from Entergy or from any other electric utilities, transmission and distribution utilit~, municipally owned utility, electric cooperat~.ve, or from any other source, as well as all, metering locations that service the area in AttaChment "A". ; Section 17. Notice of Default. Notwithstanding anyt~hing herein to the contrary contained, in the ev,ent of any breach by the Company of any of the terms or conditi~ns of this Agreement, the Cit~r shall give the Company not less than f ive ( 5) business days' written notice, specifying the nature ~of the alleged default, and manner in which the alleged~ default may be satisfactorily cured. Thereafter, the Company will be afforded a reasonable time within which to Cure the alleged default. Nevertheless, time is of the essence on the payment schedule for the "in lieu of tax" ~ payment on October 15, 2009. If the Company does not pay the "in lieu of tax" payment on October 15, 2009, the City / can immediately commence annexation proceedings and sue for all damages. In case of litigation for breach of the Agreement and to encourage timely payments,' the City can ~ 15 z.ida chevron 200'9.12.1 seek 1000 of all monies that the City would have received from the Company if it been within the corporate limits,~ which include 1000 of all taxes, building permits, sales or use taxes, and all ~franchise fees on electrical usage, , ~ interest and penalty thereon, attorney's fees,~ and court costs. Also, if the Company intentionally discriminates against Port Arthur cornpanies, the City can seek the direct ,. and indirect damag~s that the City would have accrued, if the discrimination did not occur. Section~l8. Entire Agreement. This Agreement constitutes the entire agreement of the~ parties with respect to the Proj ects described herein and supe.rsedes any, , . . and all rior understandings or oral or written agreements p between the parties respecting such subject matter, except , . , ~ a~s otherwise provided in the instruments referenced herein. This A reement may be amended only by written instrument g . signed by all of the parties hereto. ~ ~ • Section 19. Severabilit . If any term or provision ~ , , , , ln th~.s Agreement, or the applicatlon thereof to any person or circumstance, shall to any extent be held to be invalid or unenforceable by a court of competent jurisdiction, such invalidit or unenforceabil,ity shall not affect\any other Y rovision of~ this A reement or the application thereof, ~ p g ; ~ which can be `~given effect without the invalid or ~ z.ida chevron 2009.12.1 16 _ unenforceable provision or application, and the parties agree that the provisions of this Agreement are and shall be severable. Payment of the "in lieu of tax" payment is an essential part of this Agreement. , Section 20. Remedies Cumulative. Except as otner- wise expressly provided herein, all rights, privileges, and remedies afforded the parties by this Agreement shall be deemed cumulative and not exclusive, and the exercise of . any, or more of such remedies shall not be deemed to be a waiver of any other right, remedy, or privilege provided for herein or available at law or in equity. Section 21. Governing Law. This Agreement shall ~ be governed by,and construed in accordance with the laws of ~ ~ the State of Texas. This Agreement is to be performed in Jefferson County, Texas. Section 22. Counterparts. This Agreement may be , executed in counterparts, each of which shall be deemed an ' original, and all of which taken together, shall constitute , but one and the same instrument, which may be sufficiently evidenced by one counterpart. Section 23. Authority By accep,tance oz Ln~s Agreement and/or benefits conferred hereunder, the Company ~~ represents and warrants that its undersigned agents have com lete and p unrestricted authority to enter into this ., - ^ z.ida chevron 2~009.12.1 17 Agreement and to the terms, covena~ Section 24. contract shall be certif ied mail, follows: obligate and bind the Company to all of zts and conditions contained herein. Notice Any notice provided for in this given in writing to the parties hereto by return receipt requested, addressed as ~, TO CITY: TO THE COMPANY: , ~ City Manager Representative CITY OF PORT ARTHUR Property Tax 444 4~h St. CHEVRON U.S.A., INC. Port Arthur, TX 77640 P. 0. Box 285 , Houston, TX 77001 WITH A COPY T0: City Attorney ~~' CITY OF PORT ARTHUR 444 4th St . Port Arthur, TX 77640 \ Section 25. This agreement is effective the lst day of January, 2009, and shall expire on the 31St day of December, 2009, unless extended by the City of Port Arthur, as delineated in Section 6. _~ _. -1 . ~1 z.ida chevron 2009.12.1 18 , SIGNED AND AGREED to on the day of ,~ , 2008. , CHEVRON U.S.A., INC. , ~ ~ ~ ~ BY: ~ . , , ~ ~ ~ - ~ ACKNOWLEDGMENT ~ STATE OF TEXAS~ ~ ~~ ~ ~ COUNTY OF JEFFERSON ~ , ~ BEFORE ME, the undersigned Notary Public, on this day personally appeared , known to me to be the person whose name is ascribed to the foregoing instrument, and acknowledged to me that he , executed the same as.the act and deed of Chevron U.S.A., Inc., for the purposes and considerations therein expressed; and the capacities therein stated. ~ GIV'EN UNDER MY HAND AND SEAL OF OFFICE, THIS THE day of , A.D. , 2008 . '' NOTARY PUBLIC, STATE OF TEXAS' ; ; , z.ida_the Company_coex expansion Project_8-07-08-1 19 a S I GNED AND AGREED t o on t he day o f , 2008. CITY OF PORT ARTHUR, TEXAS BY: Stephen Fitzgibbons 3 City Manager ACKNOWLEDGMENT ~ ~ STATE OF TEXAS ~ . ~ ~ COUNTY OF JEFFERSON ~ BEFORE ME, the undersigned Notary Public,~ on this day personally appeared Stephen Fitzgibbons, City Manager of , the City of Port Arthur, known to me to be the person whose name is ascribed 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., 2008. NOTARY PUBLIC, STATE OF TEXAS ~ z.ida chevron 2009.12.1 20 LIST OF ATTACHMENTS •"A" Area of land owned by the Company . •"B" Description of owners of property ~ ~ ~ ; z.ida chevron 2009.12.1 • 21 r ` 1 ~~ ~~ I J ~ ~ ~~ ~~ Q ,' ~