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HomeMy WebLinkAbout8628RESOLUTION NO. 8628 A RESOLUTION APPROVING AN ADDENDUM BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND ATLAS PACIFIC ENGINEERING COMPANY RELATING TO A JOB - CREATING CAPITAL IMPROVEMENT PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Addendum between Pueblo, a Municipal Corporation and Atlas Pacific Engineering Company dated February 22, 1999 relating to a job- creating capital improvement project, a copy of which is attached hereto, having been approved by the City . Attorney as to form, is hereby approved. SECTION 2 The President of the City Council is authorized to execute and deliver the Addendum in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED February 22, 1999 BY Rich Golenda Councilperson APPROVED l h h President of City Council ATTEST: City Clerk ADDENDUM THIS ADDENDUM entered into as of February 22, 1999 by and between Pueblo, a municipal corporation (the "City ") and Atlas Pacific Engineering Company, a Delaware corporation (the "Company "), Witnesseth, WHEREAS, Company and City entered into an Agreement dated as of February 13, 1995 relating to a job- creating capital improvement project (the "Agreement "), and WHEREAS, Company desires to modify the Agreement and City is willing to modify the Agreement upon the terms and provisions of this Addendum. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, City and Company agree as follows: A. Paragraph 1 of the Agreement is modified by the amendment of the term "Full -Time Employee" and by the addition of the following definitions: The term "Full -Time Employee" is amended to mean a person who performs work at the Property for not less than thirty -two (32) hours per week whether employed by Company or an outside entity acting as an agency to provide Full -Time Employees for Company. The term "Full -Time Employee" does not include independent contractors nor employees of independent contractors except as described herein. "Quarter" means three consecutive calendar months. "Quarterly Employees" means the sum of the number of Full -Time Employees on each business day of a Quarter divided by the sum of the business days in such Quarter. B. Paragraphs 4 and 5 of the Agreement are amended to read as follows: 4. Company acknowledges that the primary purpose of City in entering into this Agreement and the sole benefit to the City for making funds available to Company hereunder is the creation of jobs. Therefore, Company represents and commits that it will employ at the Property two hundred one (201) Full -Time Employees (the "Employment Commitment ") on and after January 1, 2001. 5. Notwithstanding anything contained herein to the contrary, if Company shall for any reason default in its Employment Commitment set forth in paragraph 4 hereof, Company shall repay to City a pro -rata share of the City Funds advanced by City under paragraph 3 hereof based upon the number of Full -Time Employees employed at the Property (the "Repayment Obligation "), as follows: (a) During the five (5) year period starting on January 1, 2001 and ending December 31, 2005 (the "Repayment Period ") Company shall pay to City an amount each Quarter equal to the Quarterly Employees less than two hundred one (201) employed at the Property multiplied by $500.00 (the "Company's Quarterly Payments "). For example, if for the Quarter ending June 2001 the Quarterly Employees is 190, the amount payable by Company to City on or before July 15, 2001 would be (210 - 190) x $500.00 = $10,000.00. Company's Quarterly Payments and Repayment Obligation shall in no event exceed the amount of City Funds advance by City under paragraph 3 hereof. (b) Company's Quarterly Payments, if any, shall be paid to the City without notice, demand, deduction or setoff on or before the fifteenth (15th) day of the month after the end of each Quarter during the Repayment Period and for one month thereafter at the office of the Director of Finance of City, 1 City Hall Place, Pueblo, Colorado, 81003. All past due Company's Quarterly Payments shall bear interest at the rate of ten (10) percent per annum until paid. (c) Within fifteen (15) days after the end of each Quarter during the Repayment Period and for one calendar month thereafter, Company will submit to City's Director of Finance Company's statements showing the Quarterly Employees for the preceding Quarter and the basis upon which Quarterly Employees and Company's Quarterly Payment, if any, were computed certified by an officer of the Company to be true and correct. For purposes of verifying such employment, Company at its expense upon request of City shall cause an independent audit to be conducted by Company's auditors and delivered to City. City will, however, respect the right of employees and Company as to confidentiality of personnel records. All City Funds advanced to Company by City under this Agreement shall be deemed to be a debt of Company payable to City until Company performs and discharges its obligations hereunder including its Repayment Obligation contained in this paragraph 5. C. The Agreement as amended and modified by this Addendum shall remain in full force and effect and shall be binding upon and inure to the benefit of City and Company and their respective successors and assigns. ATLAS PACIFIC ENGINEERING COMPANY By ..— Preside t PUEBL MUNICIPAL ORPORATION President of the City Council -2- Attest: Se etary City k Approved as to form: City Attorney -3-