HomeMy WebLinkAbout13358RESOLUTION NO. 13358
A RESOLUTION APPROVING AN EMPLOYMENT AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND
ROBERT MATHIAS VALDEZ, DBA LASTLEAF PRINTING AND
DESIGN, RELATING TO A JOB CREATING CAPITAL
IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF
CITY COUNCIL TO EXECUTE SAID AGREEMENT AND
TRANSFERRING TWENTY-FIVE THOUSAND DOLLARS
($25,000) FROM THE 1992-2021 SALES AND USE TAX CAPITAL
IMPROVEMENT PROJECTS FUND
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
City Council finds and determines that the expenditure of $25,000 for the job creating
capital improvement project with Robert Mathias Valdez, dba LastLeaf Printing and Design
(“Company”) described in the attached Employment Agreement, meets and complies with the
criteria and standards established by Section 14-4-85 of the Pueblo Municipal Code and will
create employment opportunities justifying the expenditure of public funds.
SECTION 2.
The Employment Agreement dated December 28, 2015 between Pueblo, a municipal
corporation and the Company relating to a job creating capital improvement project, a copy of
which is attached hereto (“Employment Agreement”), having been approved as to form by the
City Attorney, is hereby approved. The President of the City Council authorized to execute and
deliver the Employment Agreement in the name of the City and the City Clerk is directed to affix
the seal of the City thereto and attest same.
SECTION 3.
Funds in the aggregate amount of $25,000 are hereby authorized to be transferred,
expended and made available out of the 1992-2021 Sales and Use Tax Capital Improvements
Projects Fund for the sole purpose of the job creating capital improvement project authorized
herein and in the manner described in the attached Employment Agreement. The funds hereby
authorized to be transferred and expended shall be released, disbursed and paid by the Director
of Finance as specified in the Employment Agreement.
SECTION 4.
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 Employment Agreement which are
necessary or desirable to effectuate the transactions described therein.
SECTION 5.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: December 28, 2015
BY: John Cordova
City Clerk’s Office Item # Q-1
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: December 28, 2015
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: A RESOLUTION APPROVING AN EMPLOYMENT AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND ROBERT MATHIAS VALDEZ,
DBA LASTLEAF PRINTING AND DESIGN RELATING TO A JOB CREATING
CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF
CITY COUNCIL TO EXECUTE SAID AGREEMENT AND TRANSFERRING
TWENTY-FIVE THOUSAND DOLLARS ($25,000) FROM THE 1992-2021 SALES
AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND
SUMMARY:
Attached is a Resolution approving and authorizing the President of City Council to sign an
Employment Agreement with Robert Mathias Valdez, dba LastLeaf Printing and Design (the
“Company”).
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
The Company’s business plan is centered on the design and printing of silkscreen concert
posters, art prints and custom screen printing for other artists for distribution outside of Pueblo
County.
FINANCIAL IMPLICATIONS:
In the attached Employment Agreement, the City has agreed to transfer $25,000 from the 1992-
2021 Sales and Use Tax Capital Improvement Projects Fund to the Company for the purchase of
new silkscreen production equipment, including flatbed presses, screens, racks, computers and
other related capital improvement equipment. This business expansion will result in the creation
of three new jobs. Company has agreed to a seven year employment commitment for the three
new jobs.
The City’s economic incentive payments are secured by a first secured position in the Company’s
new equipment and existing equipment. In addition, the Company has agreed to purchase a life
insurance policy, with the face amount of $25,000, insuring the owner’s life until the conclusion of
the Company’s employment commitment which is currently estimated to be December 31, 2025.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
If this Resolution is not approved, the Company will not be able to expand its operations in the
City of Pueblo.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this Resolution.
Attachments:
Employment Agreement
"Facility"means the silk screen production facility located at 213 S. Union Ave., Pueblo,
CO 81003 or otherwise located within the City of Pueblo or the Pueblo Memorial Airport
Industrial Park.
"Full-Time Employee"means a person who actually performs work at the Facility for not
less than thirty-five (35) hours per week whether employed by Company or by 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 employees performing work at the Facility who are employees of an independent
contractor acting as an agency to provide Full-Time Employees for Company.
"Quarter" means three consecutive calendar months commencing January 1, April 1,
July 1 and October 1 of each calendar year.
"Quarterly Employees" means the sum of the aggregate number of Full-Time Employees
on each business day of a Quarter, divided by the sum of the aggregate business days in such
Quarter.
"Security Agreement"has the meaning set forth in Section 6 of this Agreement.
2. If Company is not in default hereunder, City will, after the Effective Date,
disburse, for the benefit of Company, funds in an amount not to exceed Twenty Five Thousand
U.S. Dollars ($25,000) ("City Funds"); subject to and contingent upon the following conditions
and covenants which Company agrees to perform and comply with:
(a) City Funds will be disbursed by City to Company solely for
reimbursement for the acquisition of Equipment by Company at fair market value from a
reputable vendor in an arms-length transaction. Company shall grant to City a perfected first
security interest in all Equipment currently used by Company at the Facility and all Equipment
for which Company receives reimbursement from City by execution of a Security Agreement
which identifies the Equipment in accordance with Section 6 of this Agreement.
(b) If the Effective Date does not occur on or before June 30, 2016, or such
later date as Company and City shall mutually agree, City, at its sole option, may terminate this
Agreement and City and Company shall thereafter be released and discharged from all
obligations hereunder.
(c) As conditions precedent to the disbursement of City Funds for the
purchase of Equipment, Company shall file with the City's Director of Finance periodic written
requests for payment, certified to be true and correct by an employee of Company, representing
that the amounts included in the request for payment have not been included in any prior request
for payment and are for the actual cost of Equipment, identifying the specific Equipment for
which payment is sought, including paid invoices therefore and certificates of delivery and
installation in the Facility. Company shall not submit requests for payment which exceed in the
aggregate U.S. $25,000. The City agrees to disburse funds within thirty (30) days of submission
of the Company's written request for payment, accompanied by supporting documentation as set
forth herein.
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(d) As a further condition precedent to the disbursement of City funds for the
purchase of Equipment, Company shall produce a life insurance policy, having a face value in
the amount of at least $25,000, insuring the loss of life of Robert Mathias Valdez, from any
cause of death whatsoever. The City shall be the owner and sole beneficiary of said life
insurance policy and said policy shall be obtained by the Company from a reputable life
insurance company authorized to transact business in the State of Colorado. Company agrees to
pay the premiums for and to keep said life insurance policy in effect until the conclusion of the
Company's Employment Commitment which is currently estimated to be December 31, 2025. In
the event of the death of Robert Mathias Valdez prior to the termination of the Company's
Employment commitment, City agrees to use the life insurance policy proceeds to pay the
balance of the Company's Repayment Obligation. Excess life insurance policy proceeds, if any,
shall be paid by the City to the Estate of Robert Mathias Valdez.
3. City and Company stipulate and agree that the total economic incentives provided
by City to Company under this Agreement shall not exceed U.S. $25,000 (the "Total Economic
Incentives").
4. (a) Company acknowledges and agrees that the primary purpose of City in
entering into this Agreement and the sole benefit to the City for making the Total Economic
Incentives available to Company hereunder is the creation of additional jobs within the City.
Therefore, Company represents, covenants, and agrees that Company will continuously conduct
its business operations at the Facility and employ the number of Full-Time Employees set forth
below(collectively, the "Employment Commitment"):
Employment Commitment Dates Minimum Number of Employees
1-1-19 through 12-31-25 3 (excluding Robert Mathias Valdez)
(b) Company will use good faith efforts in accordance with its sound business
practices to (i) employ residents of the City of Pueblo or(ii) residents of the County of Pueblo as
Full-Time Employees including, without limitation, engaging in reasonable programs and
posting of employment openings in the City of Pueblo.
5. Notwithstanding anything contained in this Agreement to the contrary, if
Company shall for any reason default in its Employment Commitment, Company shall repay to
City a pro-rata share of the Total Economic Incentives based upon the number of Full-Time
Employees employed by Company at the Facility(the "Repayment Obligation"), as follows:
(a) During the seven (7)year period starting on the Employment Commitment
Date and ending eighty-four (84) months thereafter (the "Repayment Period"), Company shall
pay to City a compensating amount for each Quarter in the Repayment Period calculated by
subtracting the number of Quarterly Employees actually employed at the Facility from the
employment commitment stated in Section 4 supra. and then multiplying the result by $297.62.
For example, if for the second quarter of 2018 the number of Quarterly Employees is 2, the
amount payable by Company to City on or before the fifteenth (15th) day of the next calendar
month would be (3 - 2) x $297.62 = U.S. $297.62. In no event will Company's repayment
obligation exceed the amount of the economic incentive paid to Company.
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(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 following
the end of each Quarter during the Repayment Period at the office of the Director of Finance of
City, 1 City Hall Place, 2nd Floor, Pueblo, Colorado, 81003, or such other person or location as
the City may designate. All past due Company's Quarterly Payments shall bear interest at the
rate of eight percent(8%) per annum("Default Interest") until paid.
(c) Within fifteen (15) days after the end of each Quarter after the
Employment Commitment Date and for one calendar month after the Repayment Period,
Company will submit to City's Director of Finance Company's statements showing the Quarterly
Employees for the preceding Quarter and their annual Salary, together with the basis upon which
Quarterly Employees and Company's Quarterly Payment, if any, were computed, certified by an
employee of Company to be true and correct. For purposes of verifying Company's employment
and salary, for a period of three (3) years after receipt of a Quarterly Statement from the
Company, City shall have access to and the right to audit Company's records relating to
Company's employees employed at the Facility.
(d) If Company defaults in any of its obligations under this Agreement
including, without limitation, its Repayment Obligation, and such default is not cured within
thirty (30) days after written notice specifying the default is given by City to Company, then in
such event, the entire balance of Company's Repayment Obligation shall become due and
payable, without notice, notice being hereby expressly waived, together with Default Interest
from the date of default. City may accelerate payment of Company's repayment payments and
Company shall pay to City in a lump sum the amount of all repayment payments which have
become due and would have become due during the remainder of the Repayment Period,
calculated based upon there being no Quarterly Employees for the duration of the Repayment
Period. Company's Repayment Obligation is absolute and unconditional and shall not be abated,
reduced, diminished, modified, withheld or otherwise offset for any cause or reason whatsoever.
6. Company's Repayment Obligation under this Agreement shall be deemed to be a
debt of Company payable to City until Company performs and discharges its obligations
hereunder including, without limitation, its Repayment Obligation. Company's obligations under
this Agreement including its Repayment Obligation shall be secured by a perfected first security
interest in the Equipment, which Equipment shall have a fair market value of not less than the
amount of the City Funds requested for reimbursement for Equipment at the time placed in the
Facility. Prior to any disbursement of funds by City for Equipment, Company shall execute and
deliver to City, Company's Security Agreement, Financing Statement and other documents
required to perfect a first security interest in the Equipment all in form and content approved by
City's Attorney (the "Security Agreement"). Company may be permitted from time to time to
substitute items of replacement Equipment for items of Equipment removed from the Facility,
provided that an amended Security Agreement meeting the requirements of this section is
executed and delivered identifying the substitute items of Equipment and deleting the item of
Equipment being replaced.
7. (a) Prior to instituting any proceeding to enforce Company's Repayment
Obligation, City shall notify Company in writing of its intention to institute such proceedings.
Company may request relief from its Repayment Obligation by delivering to City within twenty
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(20) days after date of City's notice, Company's written request for relief specifying the grounds
upon which such relief is sought together with documents supporting said grounds. Within ninety
(90) days after receipt of Company's request, City will schedule a meeting with the City Council
of City ("City Council") at which meeting Company may appear. City will notify Company of
the time and place of the meeting. Failure of Company to timely deliver its complete written
request for relief or to appear at the scheduled meeting with the City Council shall entitle City to
immediately institute proceedings to enforce Company's Repayment Obligation.
(b) City Council may or may not, in its sole and absolute discretion, relieve
Company, in whole or in part, from Company's Repayment Obligation. Any action taken by the
City Council relating to a request for relief shall be final and binding on Company, and not
subject to judicial review. Any such action by City Council is, and shall constitute, a legislative
measure. Nothing contained in this section 7 shall grant or be construed to grant to Company any
right or claim to relief from its Repayment Obligation or hearing with respect thereto.
(c) No delay by the City in scheduling a meeting, or failure by City to
exercise its right to enforce this Agreement, including Company's Repayment Obligation, and no
partial or single exercise of that right, shall constitute a waiver of that right.
8. In the event of any litigation arising under this Agreement, the court shall award
to the prevailing party its costs and reasonable attorney fees. Exclusive venue for any such
litigation shall be Pueblo County, Colorado. All such litigation shall be filed in the District Court
in and for the County of Pueblo, State of Colorado and each party submits to the jurisdiction of
such District Court. To the extent allowed by law, each party hereby waives its right to a jury
trial.
9. This Agreement expresses the entire understanding of the parties and supersedes
and abrogates any and all prior dealings and commitments, whether oral or written, with respect
to the subject matter of this Agreement and may not be amended or modified except in writing
signed by City and Company. Any waiver of any provision of this Agreement must be in writing
and signed by the party whose rights are being waived. No waiver of any breach of any provision
hereof shall be or be deemed to be a waiver of any preceding or subsequent breach of the same
or any other provision of this Agreement. The failure of any party to enforce or seek enforcement
of the terms of this Agreement following any breach shall not be construed as a waiver of such
breach.
10. This Agreement shall be construed in accordance with and be governed by the
laws of the State of Colorado without regard to conflict of law principles.
11. Any notices hereunder shall be sufficiently given if given in writing personally or
mailed by first class, registered, or certified mail, postage prepaid, addressed:
(a) if to City, City Manager, City of Pueblo, 1 City Hall Place, 2nd Floor,
Pueblo, CO, 81003 with a copy to City Attorney, 1 City Hall Place, 3rd Floor, Pueblo, CO 81003;
(b) if to Company, Robert Mathias Valdez, 213 S. Union Ave., Pueblo CO
81003;
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or to such other person or address as either party shall specify in written notice given to the other
party pursuant to the provisions of this section 11.
12. Time is of the essence hereof. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and assigns, provided Company may not
assign this Agreement or any interest herein without the express written consent of City, which
consent shall not be unreasonably withheld. Any assignment or attempted assignment of this
Agreement by Company without such consent shall be null and void. No such assignment nor
City's consent thereto shall release or discharge Company from any obligation or liability under
this Agreement.
13. The persons signing this Agreement in the name of and on behalf of Company
and City each represent and warrant that they have the requisite power and authority on behalf of
their respective entity to enter into, execute, and deliver this Agreement, and that this Agreement
is a valid legally binding obligation of Company and City enforceable in accordance with its
terms.
14. (a) Company represents and warrants that no person, entity, or organization
has been employed or retained or will receive or be paid, directly or indirectly, any commission,
percentage, contingent fee or any other remuneration, payment or receipt of which is contingent
upon approval of this Agreement or City providing the Total Economic Incentives hereunder, or
any part thereof. For breach or violation of this warranty, City shall have the right to terminate
this Agreement, or recover the full amount of such commission, percentage, contingent fee or
other remuneration, and/or to seek such other remedies legally available to City, which remedies
shall be cumulative.
(b) Company agrees to indemnify, defend and hold City, its officers, agents
and employees harmless from and against all claims and actions arising from the purchase,
installation or use of the Equipment at the Facility.
15. In no event shall City, its officers, agents or employees be liable to Company for
damages, including without limitation, compensatory, punitive, indirect, special or consequential
damages, resulting from or arising out of or related to this Agreement or the performance or
breach thereof by City or the failure or delay of City in the performance of any covenant or
provision under this Agreement on its part to be performed. In consideration of City entering into
this Agreement, Company hereby waives and discharges City, its officers, agents and employees
from all claims for any and all such damages. Except for the City's disbursement of City Funds
for the benefit of Company as provided in Section 2 above, no breach, default, delay or failure of
City under this Agreement shall be or be construed to be a waiver, discharge or release of
Company's Repayment Obligation.
16. If any provision of this Agreement is declared by a court of competent jurisdiction
to be invalid or unenforceable, such determination shall not affect the other provisions of this
Agreement which shall remain in full force and effect.
17. None of the parties shall be, or hold itself out as, agent of any other party or as a
partner or joint venturer under this Agreement.
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18. Each party acknowledges that this Agreement was fully negotiated by the parties
and, therefore, no provision of this Agreement shall be interpreted against any party because
such party or its legal representative drafted such provision.
19. The provisions of this Agreement are for the exclusive benefit of the parties hereto
and their successors and permitted assigns, and no third party shall be a beneficiary, or have any
rights by virtue of this Agreement.
20. This Agreement may be executed in any number of counterparts, and each such
counterpart shall be deemed for all purposes to be an original, and all such counterparts shall
together constitute but one and the same original.
Executed at Pueblo, Colorado,the day and year first above written.
[SEAL]
Attest: Pueblo, a o 6-.4 atioi�
City erk
By....... L
•rest I ent of the City Council
COMPANY:
411.
__ 001191PIPRobert Mathias Valdez, individually and d/b/a
LastLeaf Printing and Design
STATE OF COLORADO )
) ss
COUNTY OF PUEBLO )
Subscribed and sworn to before me this 2 2- day,of, I ec2m1"'(/-, , 2015 by Robert
Mathias Valdez.
(Seal) :4&.. t. ♦ �' J
Not. Public
o
CRYSTAL ANN ROMERO
My commission expi s: Li/61 NOTARY PUBLIC
r� ---
NOTARY
STATE OF COLORADO`:-.,
NOTARY ID 20114054697.'
COMMISSION EXPIRES AUG.29,2019 � �
'
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EXHIBIT A
EQUIPMENT
DESCRIPTION SERIAL NUMBER
1. American Cameo 38 Flatbed Screen Printing Press 830287
2. SPE Flatbed Screen Printing Press n/a
3. X6 38x48 Aluminum Screen Frame n/a
4. X8 38x38 Aluminum Screen Fame n/a
5.
6.
7.
8.
•
9.
10.
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