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HomeMy WebLinkAbout13018RESOLUTION NO. 13018 A RESOLUTION APPROVING AN AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SOLAR ROAST COFFEE, LLC, AN OREGON LIMITED LIABILITY COMPANY AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 2 to Agreement between Pueblo, a Municipal Corporation, and Solar Roast Coffee, LLC, an Oregon limited liability company, dated July 28, 2014, a copy of which is attached hereto (“Amendment No. 2”), having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver Amendment No. 2 and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the attached Agreement to effectuate the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon passage and approval. INTRODUCED: July 28, 2014 BY: Chris Kaufman COUNCILPERSON City Clerk’s Office Item # M-7 Background Paper for Proposed Resolution COUNCIL MEETING DATE: July 28, 2014 TO: President Sandra K. Daff and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Daniel C. Kogovsek, City Attorney, Law Department SUBJECT: A RESOLUTION APPROVING AN AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SOLAR ROAST COFFEE, LLC, AN OREGON LIMITED LIABILITY COMPANY AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME SUMMARY: The attached Resolution approves an amendment to the Employment Agreement with Solar Roast Coffee, LLC which extends the Employment Commitment date by three years from November 1, 2013 to November 1, 2016. PREVIOUS COUNCIL ACTION: On November 8, 2010 the City provided Solar Roast with economic incentives totaling $100,000 from the City’s Half Cent Sales Tax Fund. BACKGROUND: Solar Roast operates retail coffee shops in the City. The company also has a manufacturing business which sells coffee products to customers at the wholesale level. Solar Roast’s wholesale operation sells most of its coffee products to customers located outside of Pueblo County. The 2010 economic incentives were paid to reimburse Solar Roast for the acquisition of new coffee roasting equipment for its manufacturing/wholesale operations. Solar Roast agreed to hire ten additional full-time employees in its manufacturing/wholesale business. Solar Roast has hired three new employees and has requested a three year extension of time to hire the remaining seven employees. FINANCIAL IMPLICATIONS: None. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: If this Resolution is not approved, Solar Roast would be in default of its Employment Commitment under the November 8, 2010 Agreement. RECOMMENDATION: City staff recommends approval of this Resolution. Attachments: Proposed Resolution and proposed contract amendment. AMENDMENT NO. 2 TO AGREEMENT THIS AMENDMENT NO. 2 to Agreement is made and entered into this 28th day of July, 2014 between Pueblo, a Municipal Corporation (the "City") and Solar Roast Coffee LLC, an Oregon limited liability company (the "Company"). WHEREAS, City and Company heretofore entered into an Agreement dated November 8, 2010 (the "Agreement"); and WHEREAS, at the Company's request, it is desirable that the Agreement be amended to extend the Employment Commitment Date by three (3) years; NOW, THEREFORE, in consideration of the foregoing and the mutual terms and conditions set forth herein, the parties agree as follows: 1. Section 1 of the Agreement is amended to revise the definition of"Employment Commitment Date"to read as follows: "Employment Commitment Date" means November 1, 2016. 2. Except as expressly modified by this Amendment No. 2, the Agreement shall remain in full force and effect. Except as expressly modified, any obligations remaining to be performed under the Agreement by either party, are not waived or excused in any manner, but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No. 2. IN WITNESS WHEREOF, Company and City have executed this Amendment No. 2 to the Agreement as of the date_first above written. ATTEST: PUEBLO, a Municipal Co soration By X ��i • City erk Pres ent of the City Counc'fft APPROVA ED A�S TO FORM: SOLAR ROAST COFFEE LLC _ ("765 City Attorneyy: • .a op, Manager (TIN()