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Home My WebLink AboutDEC 15, 2008 SPECIAL MEETINGSPECIAL MEETING - December 15 2408 , I. INVOCATION, PLEDGE & R4LL CALL Councilmember Henderson gave the invocation followed with the pledge to the flag. The City Council of the City of Port Arthur met in Special Meeting on Monday, December 15, 2008 at 5:32 p.m. in the City Council Chamber, City Hall, with the following members present: Mayor Deloris "Bobbie" Prince; Councilmembers Elizabeth "Liz" Segler, Morris Albright, III, Robert E. "Bob'' Williamson and Thomas J. "Tom" Henderson; City Manager Steve Fitzgibbons, Acting City Secretary Terri Hanks, City Attorney MarkT. Sokolow and Sergeant At Arms Chief of Police Mark Blanton. Councilmember Dawana K. Wise joined the Special Meeting at 5:40 p.m. an~ left during the Executive Session at 6:25 p.m, Mayor Pro Tem Jack Chatman joined the Special Meeting at 5:54 p.m. Councilmember ]ohn Beard, ]r. was absent from the Special Meeting. Councilmember Martin Flood was absent from the Special Meeting. III, *CLOSED MEETING EXECUTIVf SESSION *Closed Meetinq: ~ (1) Section 551.087 Government Code - To Discuss Incentives For Commercial, Residential, And ~ Industrial Business ~ Prospects (2) Section 551.~72 Government. Code - To Discuss The Value Of Land In The City's ET] ~ (3} Section 551,071 Government Code - To Discuss With The City Attorney Potential Litigation As It Pertains To Compliance With Industrial District Agreements, Assignments, Hiring And Recruitment Provisions, ~ ~ Extensions And Options For Annexation The City Council recessed their Special Meeting at 5:35 p.m. to meet in Executive Session to consider the above-mentioned topics, and reconvened their Special Meeting at 7:37 p.m. with the following members present: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson; City Manager Fitzgibbons; Acting City Secretary Hanks, City Attorney Sokolow and Sergeant At Arms Blanton. Councilmember Albright 1eft the Special Meeting at 6:41 p.m. Ma~ror Pro Tem Chatman read the followinq messaae into the record: From: John Beard, Jr. (i~eard~jrC~~or~arthur.net) Sent: Monday, December 15, 2008 5:03:36 PM Subject: Today's Vote on Industrial District Agreements To the Mayor and City Council: It is with sincere regret that I am unable to attend today's special meeting due prior commitments (company business). ; ~ ~ ~ a As it regards the upcoming vote to approve the Industrial District Agreements with the eleven Port Arthur based industries, I wish to make this brief comment. ~ I am fully aware of the facts surrounding the city's financial condition, as well ~as its ongoing budget in respect to hurricane recovery, water and ~ sewer systems mandates, streets and drainage, and administrative cost. It is crucial that the city has a reliable revenue base, but equally crucial . that we take significant measures to reduce our city's unemployment, and stimulate its economy, Respectfully, I cannot support any of these agreements as it is my profound belief that said agreements are not in the city's best interest. These agreements were not negotiated in good faith, nor did they provide a strategic program or policy that will significantly enhance ~he employment of Port Arthur citizens, nor expand business opportunities for city based firms. The Council's passage of these agreements will only marginally satisfy current budget needs, while doing little to reduce the chronically high unemployment, currently at 11.8%. The overall effect is borrow today, and let the citizens ar~d future councils worry about the results tomorrow, Think; if you are paying me in advance money that you owe, why should I pay you interest on my money? And, if I deduct the loaned amount from taxes owed each year, I reduce the rate of taxes you will pay. In other ~ words, if Company "V" is charged 65%, they receive a 35% tax break; but if I deduct 20% for the advance payment, their effective rate is ONLY 45%...and deduct for the 6% cost of money (read: "interest'~ that e~fective rate becomes 39%! This was not the council's intent, but by ratifying this agreement, we will be borrowing our money, pay someone else for it, and pay them interest, uvhile the greater goal of improving the economic opportunities for our cotizens is rnissed. Respectfully submitted, John Beard, Jr. Councilman, District 5 II. ITEMS REQUIRING INDIVIDUAL ACTION The Cit~ Attorney stated the following Industrial District Agreement amendments into the record for Proposed Resolution's: 14973,14987,14999,15000,15032 and 15033: Page 8~Subsection G) through Page 10 shall be deleted. Depending on the term of the agreement, the following statement will be inserted: In case the propert~r described in Exhibit "A" is annexed prior to December 31; 2013 (or term of agreement), the City will remit to the Company any taxes paid to the~City in excess of the in Iieu of tax payments as described in Section 1 as an economic incentive program as allowed under Chapter 380 Local Government Code, Partial Admissions of Tax as Economic ~ncentive Program, will~ be only applicable until December 31, 2013 (or term of agreement}. Page 12 -"Promptly Notify" changed to "immediately Notify" ~age 25 - Subsection III -"Business Days" changed to "Calendar Days" City Council Minutes - Special Meeting December 15, 2008 ~ , 2 Page 25 - Subsection V- The Grievance Board will make written reports to the Company and to the City as to their advisory findings. ~Removed the word corrective) Page 25 - "Semi-Annual Basis" (1) P.R. No. 14973 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With TOTAL PETROCHEMICALS USA, INC. The Mayor introduced the above-mentioned Proposed Resolution. Upon the motion by Councilrnember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed Resofution No. 14973 was adopted as amended by the City Attorney becoming Resolution No. 08-466. Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No: None. . The caption of Resolution No. 08-466 reads as follows: RESOLUTION N0. 08-466 A RESOLUTI4N AUTHORIZING THE CITY MANAGER T~ EXECUTE AN INDUSTRIAL ~ ~ DISTRICT AGRf EMENT WITH T~TAL PETRQCHEMICALS USA, INC. (2) P.R. No. 14987 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With BASF And FINA ~ The Mayor introduced the above-mentioned Proposed Resolution. Upon the motion by Councilrnember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed Resolution No. 14987 was adopted as amended by the City Attorney becoming Resolution No. 08-467. Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. , Voting No: None. The caption of Resolution No. 08-467 reads as follows: ~ RES4LUTION N0. 08-467 A RESOLUTION AUTHORIZING THE CITY MANAGER TD EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH BASF AND FINA (3) P.R. No. 14999 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With BASF CORPORATION FOR THE OLD SAND4Z FACILITY The M~yor introduced the above-mentioned Proposed Resolution. City Council Minutes - Special Meeting ~ December 15, 2008 ~ 3 Upon the motion by Councilmember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed ~Resoiution No. 14999 was adopted as amended by the City Attorney becoming Resolution No. 08-468, Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No: None. The caption of Resolution No. 08-468 reads as follows: RESOLUTI~N N0. 08-468 A RESOLUTION AUTH~RIZING THE CITY MANAGER TO EXECUTE ~AN INDUSTRIAL ~ DISTRICT AGREEMENT WITH BASF CORPQRATION FOR THE OLD SANDOZ FACILITY (4) P.R. No. 15000 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With CHEVRON PHILLIPS COMPANY, L.P. : The Mayor introduced the above-mentioned Proposed Resolution. . Upon the motion by Councilmember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed Resolution No. 15000 was adopted as amended by the City Attorney becoming Resolution No. 08-469. Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No: None. The caption of Resolution No. 08-469 reads as follows: : RESOLUTION N0. 08-469 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH CHEVRON PHILLIPS COMPANY, L.P. (5) P.R. No. 15001 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With CHEVRON U$A, INC. _ The Ma or introduced the above-mentioned Proposed Resoiution. Y Upon the motion by Councilmember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed Resolution No.15001 was tabled. ~ 6 P.R. No. 15002 - A Resolution Authorizing The City ~) Manager To Execute An Industrial District Agreement With PREMCORREFINING GROUP, INC. The Mayor introduced the above-mentioned Proposed Resolution. U on the motion b Councilmember Henderson, seconded by Mayor Pro Tem Chatman p Y and carried. unanimously, Proposed Resolution No.15002 was tabled. City Council Minutes - Special Meeting Decem ber 15, 2008 4 (7) P.R. No. 15003 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With EQUILON ENTERPRISES The Mayor introduced the above-mentioned Proposed Resolution. ~ Upon the motion by Mayor Pro Tem Chatman, seconded by Councilmember Henderson, and carried unanimously, Proposed Resolution No. 15003 was adopted becoming Resolution No. ~8-470, Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No: None. . The caption of Resolution No. 08-470 reads as follov~s: RESOLUTION N4. 08-470 A RESOLUTION AUTHORIZING TH E CITY MANAGER ;T~~ EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH EQUILON ENTERPRISES ~ . . (~) P.R. No. 15004 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With OXBOW CALCINING, LLC ~ The Mayor introduced the above-mentioned Proposed Resolution. Upon the motion by Mayor Pro Tem Chatman, seconded by Councilmember Henderson and carried unanimously, Proposed Resolution No. 15004 was adopted becoming Resolution No. 08-471. Voting Yes: Mayor Prince; Ma~or Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting l~o: None. ~ The cap~ion of Resolution No. 08-471 reads as follows: RESOLUTION N0. 08-471 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL ~ ; DISTRICT AGREEMENT WITH OXBOW ~ ~ CALCINING, LLC ~ P.R. No. 15005 - A Resolution Authorizing The City ~) Manager To Execute An Industrial District Agreement With FLINT HILL RESOURCES The Mayor introduced the above-mentioned Proposed Resolution. U on the motion b Ma or Pro Tem Chatman, seconded by Councilmember Henderson p Y Y and car~ied unanimously, Proposed Resolution No.15005 was tabled. (10) P.R. No. 15006 - A~ Resolution Authorizing The City Mana er To Execute An Industrial District Agreement With ~ 9 PRAXAIR, INC. The Mayor introduced the above-mentioned Proposed Resolution. City Council Minutes - Special Meeting December 15, 2008 ~ , ~ 5 Upon the motion by Mayor Pro Tem Chatman, seconded by Councilmember Henderson and carried unanimously, Proposed Resolution No. 15006 was adopted becomin 9 Resolution No. 08-472. Voting Yes: Mayor Prince; Mayor P~o Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No. None, : The capti~n of Resolution No. 08-472 reads as follows: . RESOLUTION NO.~ 08-472 A RESOLUTION AUTHORIZING THE CITY :~ ~ MANAGER TO EXECUTE AN INDUSTRIAL . DISTRICT AGREEMENT WITH PRAXAIR, ~ INC. (11) P.R, No. 15032 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With INEOS PHENOL _ The Mayor introduced the above-mentioned Proposed Resolution. Upon the motion by Councilmember Henderson, seconded by Mayor Pro Tem Chatman and carried unanimously, Proposed Resolution No. 15032 was adopted as amended by . the City Atdorney becoming Resolution No, 08-473. Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson. Voting No: None. The caption of Resolution No. 08-473 read~s as follows: RESOLUTI~N N0. 08-473. A RESOLUTI4N AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH INEOS PHENOL ~ 12 P.R. No. 15033 - A Resolution Authorizing The City C) . . . Manager To Execute An Industr~al District Agreement With TOTAL EXPANSION U on the motion b Ma or Pro Tem Chatman, seconded by Councilmember Henderson p Y Y and carried ~unanimously, Proposed Resolution No. 15033 was adopted as amended by the City Attorney becoming Resolution No. 08-474. Votin Yes: Ma or Prince; Mayor Pro Tem Chatman; Councilmembers Segler, 9 Y ~ Williamson and Henderson. Voting No: None. The capteon of Resolution No. 08-474 reads as follows: . RESOLUTION N~. 08-474 ~ A RESOLUTION AUTH4RIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL City Council ~linutes - Special Meeting Decem ber 15, 2008 . 6 DISTRICT AGREEMENT~ WITH TOTAL EXPANSION (13) P.R. No. 15034 - A Resolution Authorizin The Ci _ 9 tY Manager To Execute An Industrial District Agreement With . AIR PRODUCTS The May~r introduced the above-mentioned Proposed Resolution. Upon the motion by~Mayor Pro Tem Chatman, seconded by Councilmember Henderson and carried unanimously, Proposed Resolution No.15034 was tabled. (14) P.R. No. 15035 - A Resolution Authorizing The City Manager To Execute An Industrial District Agreement With TRANSGLOBAL SOLUTIONS The Mayor introduced the above-mentioned Proposed Resolution. Upon the motion by Mayor Pro Tem Chatman, seconded b Councilmember Henderson Y and carried unanimously, Proposed Resolution No.15035 was tabled. The City Council recessed their Special Meeting at 7:57 p.m. and reconvened their Special Meeting at 8:16 p.m. with the following members present: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Williamson and Henderson; City Manager Fitzgibbons; Acting City Secretary Hanks, City Attorney Sokolow and Sergeant At Arms Blanton. agreemer~t. The Business Enterprise Program and the Mentoring Program would be included. The agreement would i:nclude language concerning plant closure, and that Premcor would pay the in lieu of tax agreement for that'year. Premcor would provide information on notice of values, settlements, final judgments, and rulings by court of appeals. Electrical energy information would not be requested from Premcor. if the agreernent is extended, as per Section 6, then Premcor shall pay the75% rate. Examples of the 10% plus and minus value would be included in the agreemer~t. . Cit~ Attorney Sokolow addressed the followinq industrial aareement neaotiations: Premcor shall pay 65% of amount of taxes for Transglobal, the Coke Handling Facility as its property of Air Products, the Chemical and Hydrogen Plants affiliated units, the propert~r of Port Ar~hur Coker Company and Air Products Chemical are within the Premcor requested that the 2006-2010 agreement with Air Products could be rolled over to 2011 to 2013 at the 65% value. Flint Industries proposed agreernent would be a five-year term at 75%. The agreement would address excess payments, and include the Business Enterprise Program. Similar - lan ua e re arding the 10% plus and minus value would be included. Flint Industries 9 9 9 would include a payment of $2.3 Million with a prorated credit of 6% interest. III. AD]OURNMENT OF MEETING 7 U on the motion of Councilmember Williamson, seconded by Mayor Pro Tem Chatman p and carried unanimously, the City Council adjourned their meeting at 8:26 p.m. An audio-ta e of this meeting is on file in the offce of the City Secretary and is made a p part of the o~icial minutes of this meeting. City Council Minutes - Special Meeting December 15, 2008 December 15, 2008 8