HomeMy WebLinkAboutP.R. 15000: CHEVRON PHILLIPS COMPANY, L.P.interoffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark Sokolow, City Attorney ~i__-
Date: December 12, 2008 , ~`
Subject: P. R. No. 15000;
Special Council Meeting December 15, 2008
Regular Council Meeting December 16, 2008
Attached is P. R. No. 15000 authorizing the City Manager to
execute an Industrial District ;agreement with Chevron Phillips
Company, L. P. We received the latest draft at 4:49 p.m. on Friday,
December 12, 2008 and we are stil7L reviewing it.
MTS:ts
Attachment
cc: Director of Finance
z.pr15000 memo
P. R. No. 15000
12/12/08 is
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN INDUSTRIAL D]:STRICT AGREEMENT WITH
CHEVRON PHILLIPS COMPANS', L.P.
WHEREAS, the City Council of the City of Port Arthur deems it
in the best interests of the citi~:ens of Port Arthur to enter into
an "In Lieu of Tax" Agreement with Chevron Phillips Company, L.P.
NOW THEREFORE, BE IT RESOLVEI) BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1.
That the fact~~ and opinions in the preamble
are true and correct.
Section 2. That the City Council hereby authorizes the City
Manager to execute an "In Lieu of Tax" Agreement with Chevron
Phillips Company, L.P., in substantially the same' form as attached
hereto as Exhibit "A".
Section 3.
That Chevron F~hillips Company, L. P. shall sign
and return the Agreement by December 23, 2008, or this Resolution is
null and void and the property described herein is annexed,
effective December 31, 2008 at 11:59 p.m., as further delineated in
P. O. No. 5925.
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., 2008, at a Meeting of the City Council of the City of Port
z.pr15000
Arthur, by the following vote: AYES:
Mayor
Councilmembers
NOES:
MAYOR
ATTEST:
TERRI HANKS, ACTING CITY SECRETARY
APPROVED AS TO FORM:
See City Attorney Memo
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
z.pr15000
EXHIBIT "A"
STATE OF TEXP,S §
COUNTY OF JEFFERSON §
INDUSTRIAL DISTRICT AGREEMENT
WITH CHEVRON PHILLIPS CHEMICAL COMPANY LP
(2009-1013)
WHEREAS, in December 200:3, the City o:E Port Arthur
(hereinafter referred to as the "City") and Chevron
Phillips Chemical Company LP (hereinafter referred to as
the "Company") entered into an Industrial District
Agreement for the Chevron plant that produces chemicals,
providing for the payment to the City of Port Arthur of
$1,185,000 per year from 2004 to 2008; and,
WHEREAS, the Industrial District Agreement was
approved by Resolution No. 03-355 and expire; December 31,
2008; and,
WHEREAS, the assessed value on this faci:Lity has grown
over the years to the JCAD assessed value of at least
$257,602,730; and
WHEREAS, the City Counc_Ll is concerned as to the
unemployment rate of Port Arthur residents; and,
WHEREAS, the City Council is interested in maximising
job opportunities and contracting opportunii~ies for F?ort
Arthur residents and Port; Arthur businesses and
contractors, and the City Council is interested in working
z.ida_Chevron Phillips 2009.12.1 1
with industry and Lamar State College-Port Ari:hur to obtain
sound information on current hiring anti procurement
efforts, including results, and working with industry to
try to increase employment opportunities fo:r Port Arthur
residents and procurement for Port Arthur businesses; anti
WHEREAS, the City Council also believes improved
opportunities for minority and women-owned businesses is
important; and
WHEREAS, the Company's hiring and procurement
experience and efforts to increase Port Arthur resident
hiring and Port Arthur procurement opportunities will be
considered by the City Council in future i:n-lieu of tax
contractual agreements; and
WHEREAS, the Company owns the land described in
Attachment "A"; and
WHEREAS, the City and the Company desire to enter into
an Industrial District Agreement with respect to the ]'and
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
WHEREAS, this Agreement ~_s authorized under Sect_Lons
42.044 and 212.172 Local Government Code, ~Ternon's TE~xas
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Code Annotated and Article 1, Section 5 of the Cit:y's
Charter, and the parties agree that the following terms are
reasonable, appropriate, and not unduly restrictive of
business activities; and
WHEREAS, all parties fired that this .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 and the Company agree with each other as follows:
Section 1. Payments by the Company.
(a) For each of the tax years 2009 through 2013, the
Company shall pay to the City the amounts delineated in
this Section 1 so long as this Industrial Distx-ict
Agreement is in full force and. effect and all of the 1_and
described in Attachment "A" is not annexed by the City.
For purposes of this Agreement, the term "ta.x year" mE;ans
the calendar year, i.e., January 1 through December 31.
(b) For each of the tax years 2009 through 2013, and
subject to the provisions of Section 1(c), the Com~>any
shall pay to the City of Porn Arthur an amount equal to
seventy-five percent (750) of the amount of property taxes
that the Company would have paid to the City with respect
to the taxable value (as definE;d in Section 5 below) of the
land, improvements, units, equipment, inventory and all
z.ida_Chevron Phillips 2009.12.1 3
other property located on such land, as described in
Attachment "A", as if they had been located within the
corporate limits of the City ojE Port Arthur. Such "In Lieu
of Tax" payment shall be paid by October 15 of each such
tax year.
(c) Notwithstanding anything contained herein to the
contrary, with respect to each of the tax years 2010
through 2013,:
(i) if the taxable value of the taxable portion
of the land, improvements, units, equipment, inventory and
all other property located on such land, as described in
Attachment "A", for such tax year exceeds such taxable
value for the immediately preceding tax year by more than
ten percent (100), then for purposes of calculating the
amount of the payment for such tax year under Section ll;b),
such taxable value for such ta~:able year shall be an amount
equal to 110% of such taxablE~ value for the immediately
preceding tax year; and
(ii) if the taxable value of the taxable portion
of the land, improvements, units, equipment, inventory and
all other property located on such land, as described, in
Attachment "A", for such tax year is less than such taxable
value for the immediately preceding tax year by more t=han
ten percent (100), then for purposes of calculating the
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amount of the payment for such tax year under Section 1(b),
such taxable value for such tax year shall be an amount
equal to 90% of such taxable value for the immediately
preceding tax year.
If, for example, such taxable value for the tax year 2010
is 15 0 less than such taxable value for the t:ax year 2009,
the amount of the payment for 2010 under Section 1(b) is
equal to the product of the City's tax rate for 2'.010
multiplied by 75a multiplied by 900 of such taxable value
for the tax year 2009. If, for. example, such taxable value
for the tax year 2010 is 15o more than such taxable value
for the tax year 2009, the amount of the payment for 2010
under Section 1(b) is equal to the product of the Cit:y's
tax rate for 2010 multiplied k>y 75% multiplied by 1100 of
such taxable value for the tax year 2009.
(d) The City shall not refund or credit any "In Lieu
of Tax" payments previously p<~id by the Company prior to
the date of the execution of this Agreement, either
directly or indirectly, to the City. Except as delineated
in Section 15, once an "In Lieu of Tax" payment is paid to
the City, the City shall not refund or credit any of :paid
payment.
Section 2. Certain Emergencies. :If requested
orally or in writing by thE~ Company, they City's I?ire
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Department may, in its sole discretion, provide back;-up
Fire Suppression Support as determined by the City's Fire
Chief, and the City's Police Department may,. in its ~~ole
discretion, assist in providing an evacuation route and
traffic control in the case of a fire or a chemical relE~ase
at the Company's facilitie:~ located in the Cit:y's
extraterritorial jurisdiction, at no cost or expense to the
Company. Nevertheless, the Company shall abide by and
shall take such precautions as to prevent (1) fixes,
explosions and chemical releases and (2) the imprudent
discharge of storm water that: contribute to flooding on
adjacent property. The Company shall also put in place. an
evacuation plan for the Company's facilities located on the
land described on Attachment "A" that is consistent with
industry standards and/or as is required by applicable
federal and state laws and the health and safety laws of
the City of which the Company has been notified by the
City. The Company shall employ or provide sufficient
primary fire suppression response, as well as primary
response for the control acid abatement of chemical
releases. The Company shall provide the City's Fire CYiief
and Police Chief with Emergency Response F?lans for any
plants, refineries, chemical operations or oi~her hazardous
operations that take place on. the land, as described in
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Attachment "A". If there i;s a fire and the City is
requested to provide initial and primary (as opposed to
back-up) fire suppression services or if a clean up is
required of the City, the Company will pay to the City the
costs and expenses incurred b~y the City and any of its
departments or of any of its affiliated prc>viders, i.e.,
ambulance companies that are called to the scene.
Section 3. Certain Notifications.
The Company
shall immediately notify the central dispatcY:~ office which
serves the City's Fire Chief, Police Chief, and the Cit:y's
Emergency Management Coordinator of all incidents involving
fires, serious injuries, deaths, chemical releases and
flooding that create a health and safety hazard to the
community or that exceed permissible exposure' limits under
applicable state and federal law.
Section 4. Annexation for Health, Safety and
Welfare Reasons. It is specifically stipulated t=hat
nothing in this Agreement will in any mariner 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 annexal~ion
is reasonably necessary to promote and protect the general
health, safety, and welfare of the persons residing wii~hin
or adjacent to the City, provided however, that the City
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agrees that such annexation for the land described in
Attachment "A" prior to October 1, 2013 wile not be made
for revenue purposes only.
Section 5. Annexation Due to Legislative Action.
Notwithstanding the provisions of Section 4,, the parties
agree and consent that the City may anrlex the land
described in Attachment "A" if legislation is enacted wYlich
limits or restricts the author_Lty of the City to annex all
or part of said land and imp7-ovements. In the event of
annexation under this Section 5 or the preceding Section 4,
(i) the Company will not be: required to make further
payments under this Agreement for any calendar year
commencing after annexation with respect to the property so
annexed, but shall nevertheless be obligated to make full
payments for the year during which such anne:~ation becomes
effective if the annexation becomes effective after January
1st of said year, and (ii) the Company shall not be required
to pay ad valorem taxes to the City for the same period of
time they have already paid an "in lieu of tax" payment
with respect to the property described in Attachment "A"' to
this Agreement. If for any x-eason the City is prevented
from annexing such property and if the parties cannot reach
an agreement on a new payment :schedule or on a new "in lieu
of tax" agreement, the Company agrees that, f.or so long as
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it or its assignees and successors or affiliates own such
property, it will continue to pay to the City the "in lieu
of tax" payments delineated in Section 1 unti]_ December 31,
2013, and will thereafter continue to annually pay the City
an "in lieu of tax" payment amount equal to seventy-five
percent (75%) of the amount of property taxes that the
Company would have paid to th.e City with respect to the
taxable portion of the land, improvements, units,
equipment, inventory and all other property located on :;uch
land, as described in Attachment "A", as if they had f>een
located within the corporate limits of the City of Port
Arthur. Payments will be due c>n October 15th of each year.
In the event the City is p7-evented from annexing such
property described in Attachment "A" in the circumstances
described in the first sentence of this Section 5, t:hen
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
Agreement and that the Company will continue to annually
pay the City "in lieu of tax" payments at the seventy-f=ive
(75%) rate, as described in the immediately preceding
sentence, for successive periods not to exceed 15 yE.ars
each, for a total duration not: to exceed 45 years, or the
maximum period allowed by law, whichever i~~ longer. As
z.ida Chevron Phillips 2009.12.1 9
used in this Agreement, "taxable value" means the taxable
value as determined by the Jefferson County Appraisal
District in appraisal rolls after the completion of all
litigation and appeals (if any), of the taxable portion of
the land, improvements, units, equipment, inventory and all
other property located on such land, as described in
Attachment "A", excluding the value of exempt pollution
control devices and any other exempt property, owned or
leased by the Company and located within the extra-
territorial jurisdiction of 'the City, as described in
Attachment "A". Such "taxable value" also includes the
taxable value on such rolls of any property that is located
in a foreign trade zone or in any other type of fedeY-al,
state, or local zone.
Section 6. Future Actions. The parties agree t:hat
the City has the sole discretion, after October 1, 2013, to
annex the property described in Attachment "A," or to enter
into negotiations with the Company regarding an agreement
concerning the payment by the: Company of additional "in
lieu of tax" payments for future years.
Section 7. Lessees and Other Owners. The pre:~ent
owners and lessees of the land, improvements, un_Lts,
equipment, inventory, and all other property :located on the
land, as described in Attachment "A", are described in
z.ida Chevron Phillips 2009.12.1 10
Attachment "B". The City reserves the right to annex that
tract or parcel with the minimum required adjacent area, as
per Chapter 43 Local Government: Code, if the owners or the
lessees do not pay an "in lieu of tax" payment for its
interest in the land, improvements, unite, equipment,
inventory, and all other property located on the land, as
described in Attachment "A". Nothing 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, such annexed tract or tracts
shall be deleted from the description of the ]_and set forth
on Attachment "A" for all purposes of this Agreement, and
the Company's total "in lieu ~of tax" payments under this
Agreement will be reduced accordingly.
Section 8. Assignment; Binding Effect. If the
Company desires to assign this Agreement to arty person, the
Company shall provide written notice of such assignment to
the City and shall receive the written consent of the City
Council, by a duly adopted Resolution, which written
consent will not be unreasonably withheld, delayed or
conditioned. The Company sha:11 provide a description of
the assignee and such other information as is reasonably
requested to indicate that the assignee wil:1 operate the
z.ida_Chevron Phillips 2009.12.1 11
facility as a reasonably prudent operator, act as a good
corporate citizen, and will Bally abide by the terms of
this Agreement. If the assignment is approved by the City
Council, the Company shall be relieved of it.s obligations
under this Agreement to the extent that the assignee
expressly assumes such obligations. Subject to the
foregoing, this Agreement shall inure to the k>enefit of and
be binding upon the parties ]zereto and their respective
successors and assigns.
Section 9. Equitable Relief. 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 10. Inspections. The Company shall allow a
reasonable number of authorized emplc>yees and/or
representatives of the City wlzo have been designated and
approved by the City Manager, City Council, or Mayor to
have access to the land described in Attachment "A" during
the term of this Agreement to inspect the plants thereon
and any improvements thereto t:o determine compliance with
the terms and conditions of this Agreement:. All such
inspections will be made at mutually agreeable times and
will only be conducted in such manner as to not interfere
with the Company's safety standards and security standards
z.ida_Chevron Phillips 2009.12.1 12
and rules. All such inspections will be made with one or
more representatives of the Cornpany and in accordance with
the Company's safety standards. The Company may require
any person conducting such an inspection to executes a
confidentiality agreement before entering the Compan.y's
facilities.
Section 11. Port Arthur Industrial Group. The
Company shall, subject to the Company's annual management
approval, participate in the Port Arthur Industrial Group
during the life of this AgrE~ement in order to improve
employment opportunities for Port Arthur re:~idents. The
Company further agrees to encourage its contractors and
subcontractors to establish and fund their own
apprenticeship, internship, education and/'or mentoY~ing
programs and projects for tY:~e training of Port Arthur
residents for regular full-tune jobs in the Port Arthur
area.
Section 12.
Port Arthur Local Business Enterprise
Program.
(a) The City recognizes 'that proactive steps must be
taken to help ensure that Port Arthur local business
enterprises thrive and continue to benefit our community
economically and socially. The goals of th.e Port Arthur
Local Business Enterprise Program are to create a program
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that promotes spending by companies that have industrial
district agreements with qualified Port Arthur local
business enterprises as well as to increase the diversity
of Port Arthur businesses with which such companies procure
goods and services so that the. pool of such businesses is
representative of the business community at large.
(b) As used in this Section 12:
(i) "LBE" means a Port Arthur busir.~ess
(including, but not limited to, a Port Arthur minority
and/or women owned business Enterprise ( "M[ntBE") , a Fort
Arthur historically underutilized business ("HUB"), and a
Port Arthur disadvantaged business enterprise ("DBE")) that
has been certified as an LBE under the procedures and
criteria specified in Section 12(d), but such term shall
not include any Port Arthur business that has ceased to be
so certified.
(ii) "Commercially Useful Function" means the
performance of the following functions by a k>usiness : (A)
being directly responsible for providing the materials,
equipment, supplies or services as required by the contract
solicitation, (B) performing work that is normal for its
business services, and (C) carrying out its obligations by
actually performing, managing, or supervising the work
involved. A business is not performing a "Commercially
z.ida Chevron Phillips 2009.12.1 14
Useful Function" when its rolE~ is limited to that of an
extra participant in a transaction, contrac~.t, or profit
through which funds are passE=d in order to obtain the
appearance of LBE participation,, e. g., a sham i~ransaction..
(iii) "good faith efforts" means commercially
reasonable efforts to further qualified LBE participation
or otherwise satisfy the requirements contained in this
Section 12 which, by their scope, intensity, and
appropriateness to the objective, can reasonably be
expected to fulfill the program requirements.
(c) The Port Arthur Local Business Enterprise Program
shall include, but is not limited to, good faith efforts
with respect to utilization of qualified LBE's as follows'.:
(i) arranging solicitations, times for
presentation of bids, quantities, specifications, and
delivery schedules in ways that. facilitate qualification. of
LBE participation, except where it is not commercially
reasonable to do so without material added expense or
substantial inconvenience, or where there would be a
material sacrifice in operational or construction
efficiency;
(ii) carrying out information and communication
programs on contracting procedures and specific contract
z.ida Chevron Phillips 2009.12.1 15
opportunities (e. g., facilitating the inclusion of
qualified LBE's on the Company'; bidder list); and
(iii) helping support:
• an educational program to inform
qualified LBf;'s of opportunities and the
Company's requirements; and
• publication of a local business
directory.
(iv) paying at lea:~t the prevailing wage, as
reasonably set by the City, in accordance with Chapter
2258, Texas Government Code, V.T.C.A., after the City has
provided reasonable advance notice to the Company of the
meeting at which such prevailing wage is reasonably set and
afforded the Company an opportunity to be heaY-d by the City
Council on such matter at such meeting.
(d) Through appropriately promulgated procedures, the
City, using an independent source (Lamar State College of
Port Arthur or other mutually agreeable party), shall
certify as an LBE any business that meet: all of the
following criteria:
• The business is financially and operationally
independent from, .and operates at: arm' s length
to, any other business.
• The business has been in operation for at least
six months within t:he City.
• The business is a f:or-profit entex-prise.
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• The business performs a Commercially Useful
Function.
• The business maintains its principal place of
business at a fired, established commercial
address (and not a temporary or movable office,
a post office be>x, or telephone answering
service or a tempt>rary short-term lease) that
is within the boundaries of the City and that
provides all of t:he services for which LBE
certification is sought, other than work
required to be performed at a job site.
Suppliers are required to maintain their
principal place of business within the
boundaries of the City.
• The business can be expected to satisfy
qualifications specified by 'the Company,
including, but n.ot limited to, financial
viability, an adequate safety record, employees
that can pass background and drug testing
checks, and the business's ability to corriply
with applicable local, state and federal
regulations and licensing requirements.
(e) The Company will notify (in writing or by e-mail)
the following of job openings:
• City of Port Arthur
• The Port Arthur News
• Texas Work :Force Commission
• Lamar State College of Port Arthur
• Port Arthur ISD
• Sabine Pass ISD
• Digital Work Force
• Any of the following who have provided
written notice to the City stating ghat
it wants to receive notification of
such job openings and identifying its
mailing anti e-mail addresses, and the
City has provided the Company with a
copy of such written notification:
Port Arthur labor unions
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Association: representing historically
underutilized segments of i~he
population .in Port Arthur
The Company will also request that its
contractors and subcontractors consider notifying
the above entities of their respective job
openings.
(f) The Company will make good faith efforts:
• to have their large prime contractors obtain
qualified LBE bids on contracts subject to
this Agreement;
• to arrange subcontracts by size and type of
work to improve the opportunities for LE~E's
to participate, including reasonably
dividing projects into smaller parts, except
where it is not. commercially reasonable to
do so without material added expense or
substantial inconvenience, or where there
would be a material sacrifice :in operational
or construction efficiency;
• to hire qualified citizens of= Port Arthur
for regular, full-time jobs; and
• to request its ~>rime contractors to consider
soliciting through the local office of the
Texas Workforce Commission and general media
to hire qualifiE~d Port Arthur residents for
jobs and takir.~g such other measures as
delineated in this Agreement.
(f) (i) The Company and the City agree to set
up a three-member grievance board (the " Grie'vance Boax-d")
made up of one member appointed by the City, one member
appointed by the Company, and one member who will be the
z.ida Chevron Phillips 2009.12.1 18
head of the Grievance Board and will be from Lamar State
College of Port Arthur or be another person mutually
acceptable to the City and the Company. ThE~ head of the
Grievance Board will have the tie breaking vote if needed.
The head of the Grievance BoaY~d will serve as facilitator
and will receive a reasonable stipend for his or her time,
to be paid equally by the City <~nd by the Company.
(ii) A written grie=_vance can be made to the
Grievance Board by a Port Arthur business who claims that
it sought to be employed by the: Company and was not given a
due opportunity under standards set forth in the terms of
this Agreement.
(iii) If a written grievance is made, the Comb>any
shall make a written response: within fourteen (14) clays
thereof. The Grievance Board will meet t.o review the
grievance and the Company's ,response within thirty 1;30)
days of the date of the grievan~~e.
(iv) If an LBE o:r other business, or its
designee, files two or more unfounded complaints of
business discrimination, the LBE or business, and/ or its
designee, will be in violation of the City's LBE program
and the Grievance Board can recommend to they parties ghat
the LBE or business be removed from the LBE.
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(v) The Grievance :Board will take such action
as necessary or advisable to ;reserve the confidentiality
of grievances and the re~~ponses, deliberations and
proceedings with respect thereto. The Grievance Board will
make written reports to the Company and to t:he City as to
their findings, and the Company and the: City sYlall
thereafter meet to discuss, if necessary, what, if a.ny,
corrective action should be taken.
(g) (i) During the tax ;rears 2009 through 2013, the
Company agrees to submit on a semi-annual basis a report
providing the information specified in Section 12 (g) (i.i) ,
(iii), and (iv) with respect to the hiring of qualif`.ied
Port Arthur residents by the Company and its major prime
contractors and the retention of LBE's by the Company and
by its major prime contractors, as the same relate to the
property described in Attachment "A".
(ii) With respect t.o the hiring of qualified
Port Arthur residents by the Company, such report shall set
forth the following information:
• Total number of :new hires by zip code
• Total number of :new hires
• Total number of ;applicants disqualified by
reason of not meeting the Company's minimum
hiring standards (for example, disqualified
by reason of drug screening, background
check, etc.)
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• Total number of applicants extended an offer
• Total number of applicants comp:Leting the
interview process
• Total number of <~pplicants invited to
interview
• Total number of <~pplicants with satisfactory
scores on in-house assessments
• Total number of applicants invited to take:
in-house assessm~=nts
• Total number of <~pplicants meeting minimum
qualifications for the specific positions
(education/experience)
• Total number of applications received for
announced positions
(iii) With respect too the hiring of qualified
Port Arthur residents by t:he Company's major pY-ime
contractors, such report shall set forth the following
information:
• Number of new hires by zip code
• Total number of :new hires
• Total number of ,applicants extended an off:er
• Such other information listed i:n Section
12 (g) (ii) above as is reasonably availables
from the major prime contractors
(iv) With respect to the hiring of LBE's, :such
report shall set forth the following information:
• Number of LBE's that are included on the
Company's and on its major prime
contractor's bidders lists
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• Number of LBE's i~hat were invited to bid an
providing services and goods fo:r the Company
and for its maj o:r prime contractor
• Total dollar amount of contracts awarded t.o
LBE's
• Number of contracts awarded to LBE's
(v) The information. provided by the Company to
the City in any such report shall be and remain
confidential.
(h) The City and the Company agree, in conjunction
with other companies that have entered into industrial
district agreements with the City, to set up an advisory
board to implement the programs goals and objectives for
the LBE program. The advisory board will meet as needed
and will be facilitated by an outside source (Lamar State
College of Port Arthur or other mutually agreeable part.y).
The facilitator will be paid a stipend which shall be
prorated equally among the parties to the industrial
district agreements.
Section 13. Compliance Monitor. The City reserves
the right to hire or contract for a monitor t:o inspect the
Company's records and hiring practices in ar.cordance with
this Agreement so as to verify whether the Company has
complied and will continue to comply with this Agreement.
All inspections will be made at mutually agreeable times
z.ida_Chevron Phillips 2009.12.1 22
and will only be conducted in such manner as to not
unreasonably interfere with the Company's safety and
security standards and rules. All inspection: will be made
with one or more representatives of the Company present,
and any information provided :by the Company to any such
monitor shall be and remain confidential; provided,
however, that such monitor may make reports to the City
provided that any data reported is provided in the
aggregate and does not identify any individual or include
any information which would tE:nd to make the identity of
any individual ascertainable. The Company ma.y require any
such monitor to execute a confidentiality agreement before
making any records or other information available to a;uch
monitor.
Section 14. Undocumented Workers. The Company
certifies that they will not knowingly employ an
"undocumented worker" which means an individual who, at the
time of employment, is not (i) lawfully admitted for
permanent residence to the United States, (ii.) a tempoY~ary
resident lawfully permitted tc> be employed in the United
States, or (iii) authorized under law to be employed in
that manner in the United States. The Company acknowledges
that it has reviewed Chapter ?264, Texas Government Code,
and hereby affirmatively agree: to repay the amount of any
z.ida_Chevron Phillips 2009.12.1 23
incentive with interest at the' rate of ten percent (100)
per annum, not later than the 120th day after the date the
City notifies the Company of a violation. The Company
acknowledges the City may bring a civil action to recover
any amounts owed under tYiis 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. Upon
learning that any "undocumen.ted worker" is improperly
retained by one of its contractors or subcontractors at its
facility on the land described on Attachment "A", the
Company will promptly report same to the City.
Section 15. Property Tax Information; Credits and
Refunds. With respect to they land, improvements, units,
equipment, inventory and all other property located on :>uch
land, as described in Attachment "A", for 'the tax years
2009 through 2013, the Company will, to the extent :such
property has not been annexed by the City,, provide the
Director of Finance of the City with copies of:
• each notice of appraised value received by
the Company from the Jefferson County
Appraisal District with respect to such
property;
• any notice of protest filed by the Company
with the Jefferson County Appraisal Review
Board ("ARB") with respect to such properly;
z.ida Chevron Phillips 2009.12.1 24
• any informal seti~lement or final ARB order
determining protest with respect to such
property;
• any pleadings fi:Led by the Company as a
petition for review of an order determining
protest of the A]ftB with respect to such
property; and
• any settlement, .final judgment or other
final disposition on appeal or otherwise of
any such lawsuit.
Pending final determination of any tax protest filed
by CPC with the Jefferson County Appraisal Review Board, or
appeal thereof, CPC shall pay to City, on October 15th of
each year, the amount calculated based upon the value of
the property reflected on the most recently adopted
appraisal roll prepared by or for Jefferson County
Appraisal District and as further delineated in Section 1
of this Agreement. If the final determination of a protest
or an appeal reduces the value of the property after CPC
has tendered payment to the City hereunder, CPC's liability
hereunder shall be recalculated based on the final
determination of value, and the: City shall, after the final
determination of such protest: or appeal, either credit
toward future "In Lieu of Tax" agreements or refund to CPC
the difference between the amount actually paid hereunder
and the amount for which the CPC is determined to be
liable, without interest. Under no circumstances shall
z.ida Chevron Phillips 2009.12.1 25
there be a refund or a credit of more than teri (10%) of any
"In Lieu of Tax" payment made.
Section 16. Electrical Usage. The Company will
provide the City with information as to t:he electrical
consumption from Entergy or from any other electric
utilities, transmission and distribution utility,
municipally owned utility, elesctric cooperative, or from
any other source, as well as all metering locations that
service the area described in Attachment "A". The
information provided by the Company to the City regarding
such electrical consumption and, metering locations shall be
held confidential by the City.
Section 17. Notice of Default. Notwithstanding
anything herein to the contrary contained, in the event of
any breach by the Company of any of the terms or conditions
of this Agreement, the City shall give the Company not less
than five (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 (but in no
event less than 60 days) within which to cuY•e the alleged
default. Nevertheless, time is of the essence on the
payment schedule for the "in lieu of tax" payments on
October 15th of each year If the Company does not pay the
z.ida Chevron Phillips 2009.12.1 26
"in lieu of tax" payment on October 15th of each year, the
City can immediately commence annexation proceedings and
sue for all damages provided f:or herein. Irl the case of
such a suit, and to encourage timely payments, the City can
seek 100% of all monies that t:he 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.
Section 18. Entire Agreement. This Agreement
constitutes the entire agreement of the parties with
respect to the subject matter hereof and supersedes any and
all prior understandings or oral or written agreements
between the parties respecting such subject matter, except
as otherwise provided in the instruments referenced herein.
This Agreement may be amended only by written instrument
signed by all of the parties hereto.
Section 19. Severability. If any term or provi~~ion
in this Agreement, or the application thereof to any pex-son
or circumstance, shall to any extent be held to be invalid
or unenforceable by a court of competent jurisdiction, :such
invalidity or unenforceability shall not affect any of:her
provision of this Agreement or the application thereof,
z.ida Chevron Phillips 2009.12.1 27
which can be given effect without the invalid or
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 other-
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 constit;ute
but one and the same instrument.
Section 23. Authority. By acceptance of t:his
Agreement and/or benefits conferred hereunder, the Company
represents and warrants that its undersigned agents Yiave
complete and unrestricted aut=hority to enter into t=his
z.ida Chevron Phillips 2009.12.1 28
Agreement and to obligate and bind the Company to all of
the terms, covenants and condit:ions contained herein.
Section 24. Notice. Any notice provided for in
this contract shall be given in writing to the parties
hereto by certified mail, return receipt requested,
addressed as follows:
TO CITY: TO the Company:
City Manager Chevron Phillips Chemical
CITY OF PORT ARTHUR Company LP
444 4th St . Property Tax Rep:resentative~
Port Arthur, TX 77640 11)001 Six Pines Drive
The Woodlands, TX 77380
WITH A COPY TO:
City Attorney
CITY OF PORT ARTHUR
444 4th St .
Port Arthur, TX 77640
(409) 983-8126
(409) 983-8124
Section 25. Term of Agreement. This Agreement is
effective the 1st day of January, 2009, and shall expire on
the 31st day of December, 2013, unless extended by the City
of Port Arthur, as delineated in Section 5.
Section 26. Company Obligations. Notwithstanding
anything contained herein to the contrary, the Company
shall in no event be obligated hereunder (i~ to amend or
z.ida_Chevron Phillips 2009.12.1 29
otherwise change, or attempt to amend or otherwise change,
any agreement to which the Company is a paY-ty as of the
date hereof, or (ii) to hire or retain any person, or to
award any contract for materials, supplies, equipment or
services to any vendor, supplier, professional, contractor
or subcontractor, unless, in the Company's sole discretion,
(A) such person is qualified, is willing to perform the
work, and satisfies all of thE, Company's noY~mal standards
for employment, and (B) such vendor-, supplier,
professional, contractor or subcontractor :is qualified,
financially sound, has an adequate safety record, is
willing to perform the work, or provide the materials or
services, in the time required and in a competitive manner,
and is the lowest qualified responsive bidder who meets all
the applicable bid specifications.
z.ida_Chevron Phillips 2009.12.1 30
SIGNED AND
AGREED to on the _ day of
2008.
CHEVRON PHILLIPS CHEMICAL COMPANY LP
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 Phillips
Chemical Company, LP, 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_the Company_coex expansion Project_8-07-C'8-1 31
80403483.5/10809339
SIGNED AND AGREED to on tYle _ day of _
2008.
CITY OE' PORT ARTHUR, TEXAS
BY:
Stephen Fitzgibbons
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 wYiose
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 Phillips 2009.12.1 32
80403483.5/10809339
LIST OF ATTAC~IMENTS
• "A" Area of land owned by the Company
• "B" Description of owners of property
z.ida_Chevron Phillips 2009.12.1 33
80403483.5/10809339