HomeMy WebLinkAboutPR13308: HUNTSMAN SUB-LEASEINTE~
MEMO
OFFICE
To: Mayor, City Council & City Manager ~
From: Valecia R. Tizeno, Assistant City Attorney
Subject: P. R. No. 13308
Council Meeting October 25, 2005
Date: October 21, 2005
Attached is P.R. No. 13308 approving the sub-leasing of crew
quarters housing units from Huntsman Corporation for temporary
housing of displaced citizens due to Hurricane Rita.
VRT:tS
Attachment
z.pr13308.memo
P. R. No. 13308
10/21/05 bs
RESOLUTION NO.
A RESOLUTION APPROVIN~ THE SUB-LEASIN~ OF CREW
QUARTERS HOUSIN~ UNITS FROM HUNTSMAN
CORPORATION FOR TEMPORARY HOUSIN~ OF DISPLACED
CITIZENS DUE TO HURRICANE RITA
WHEREAS, Huntsman Corporation has crew quarters housing units
available for sub-leasing to the City of Port Arthur for use for
temporary housing due to Hurricane Rita; and
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 authorized to sub-
lease crew quarters housing units from Huntsman Corporation, as
delineated in the correspondence attached hereto as Exhibit "A".
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., 2005, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor '
Councilmembers '
NOES:
z.pr13308 ]
MAYOR
ATTEST .'
CITY SECRETARY
APPROVED AS TO FORM:
CITY XT~NEY (O~ ~*~)
~PPROVED FOR ~EINXST~TXON:
CITY MANAGER
EXHIBIT "A"
HUNTSMAN STATIONARY
October 2 I, 2005
Honorable Oscar G. Ortiz
Mayor
City of Port Arthur
P.O. Box 1089
Port Arthur, TX 77641
Dear Oscar,
We appreciate the wonderful job that Port Arthur is doing to help its citizens
recover from Hurricane Rita. We hope that we can be of assistance. During the last
several days we have been working with you, Steve, Judge Griffith, Chester Jourdan and
Vema Rutherford to help address the temporary public housing problem for a number of
displaced families in Sabine Pass. It is our understanding that FEMA has indicated that it
would be willing to compensate the City or other public entity for sub-leasing crew
quarters housing units that we have under lease and are able to turn over to the City for
temporary public housing in Sabine Pass.
Description
Each crew quarter housing unit is skid mounted with dimensions of 56' x 14'.
Each unit has two bedroom areas with each bedroom containing three built-in bunk beds
and lockers, providing a total available occupancy of 12 persons. Each unit contains two
full bathrooms with commode, sink and shower. Linens are included for bedrooms and
bathrooms. In addition, each unit has a large common mom with couches, tables and
chairs, washer/dryer, refrigerator, stove/range, counter tops and cabinets and kitchen sink.
The actual out-of-pocket cost to Huntsman for each of these twelve-bed units is
$800/day.
Agreement ' "'
Based on the tremendous need, on October 18, 2005, Huntsman began
transporting at its own expense seven crew quarter units to Sabine Pass to be used for
temporary housing of local residents or restoration workers. These units are located on a
concrete apron near the Sabine Pass ISD football field. Huntsman lease agreements with
the owner of the crew quarters will expire in late November 2005 (see attached schedule).
At the City's option, Huntsman will to assist the City to assume these leases after the
expiration dates, if requested.
I-luntsman Corporation hereby sub-let these seven unit to the City for Sg00/day
per unit. The City agrees that it will include the sub-lease costs associated with the crew
quarters units in its application to the appropriate federal and state disaster recovery
agencies and will compensate Huntsman within thirty days after the City receives
payment for these line item sub-lease expenses. Huntsman understands that the FEMA or
other government agencies may eventually decide that it cannot provide full
compensation for these costs. Huntsman agrees that it will not to hold the City liable for
compensation above the actual amount paid by the disaster recovery agencies for these
housing units. The City agrees to use its best efforts to receive reasonable compensation
for the crew quarters units.
The City agrees to assume or make arrangements for another governmental entity
to assume the financial responsibility of connecting the crew quarter units to utility
services [electricity, water and sewer] as well as the costs of these utility services for such
period as these crew quarters remain in Sabine Pass. Further, the City agrees to make a
reasonable effort to return these units to Huntsman without damage. A reasonable effort
includes identifying third parties responsible for damages and taking steps to recover
from third parties for damages or replacing of any missing furnishings.
Sincerely;
Bob McAdams
Director, Purchasing
Date
Oscar G. Ortiz
Mayor
City of Port Arthur, TX