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Home My WebLink About09588 ORDINANCE NO. 9588 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND NEW CF&I INC., A DELAWARE CORPORATION BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City and New CF&I Inc., a Delaware corporation (the “Company”) entered into an Employment Agreement dated October 22, 2018. The City Council finds and determines that good cause exists for the extension of the “off ramp” date for the Company. The Amendment to Employment Agreement (the “Amendment”) dated November 11, 2019, a copy of which is attached hereto and incorporated herein by this reference, having been approved as to form by the City Attorney, is hereby approved. The Mayor is authorized to execute and deliver said Amendment in the name of the City 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 authorized and directed to perform any and all acts consistent with the intent of this Ordinance and the attached Amendment to Employment Agreement which are necessary or desirable to implement the transactions described therein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 28, 2019. Final adoption of Ordinance by City Council on November 11, 2019 . President of City Council Action by the Mayor: ☒ Approved on November 14, 2019 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. ☐ Ordinance re-adopted on a vote of , on ☐ ☐ Council action on __________________failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 28, 2019 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND NEW CF&I INC., A DELAWARE CORPORATION SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign an amendment to an employment agreement with New CF&I Inc., as Delaware corporation (the “Company”). The amendment extends the Company’s “off ramp” date from December 1, 2019 until April 1, 2020. PREVIOUS COUNCIL ACTION: The Company and City entered into an original employment agreement dated October 22, 2018, which authorized the advancement of funds in the amount of $15 million to the Company in exchange for the Company’s commitment to employ, for a seven (7) year period, at least one thousand (1000) full-time employees whose pre-benefit salaries would average at least $60,000. BACKGROUND: The basic engineering for the construction of a new rail mill is proceeding as planned. However, the Company has experienced some delays which are affecting the overall project timeline. Therefore, Company is requesting an extension of the “off ramp” deadline from December 1, 2019 until April 1, 2020. FINANCIAL IMPLICATIONS: There will be no financial impact on the City if City Council approves the extension requested by the Company. No City funds will be transferred to the Company before the expiration of the Company’s “off ramp” deadline. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the Company will have the option of withdrawing from the new steel mill project. RECOMMENDATION: The Pueblo Economic Development Corporation recommends approval of this Ordinance. Attachments: Proposed Ordinance and proposed Amendment to Employment Agreement Amendment to Employment Agreement This Amendment to Employment Agreement ("Amendment") is entered into this 11th day of November, 2019 by and between the City of Pueblo, a Colorado municipal corporation (the"City") and New CF&I Inc., a Delaware corporation (the "Company"). The Company and the City are referred to collectively in this Amendment as the "Parties" and individually, without differentiation, each as a "Party". Recitals WHEREAS, the Parties entered into an Employment Agreement dated October 22, 2018 (the "Agreement"); and WHEREAS, the purpose of this Amendment is to extend the Company's "off ramp" date specified in the Agreement from December 1, 2019 until April 1, 2020. Agreement In consideration of the mutual covenants, agreements and promises in this Amendment and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as set forth in this Amendment: 1. Section 2.1 of the Agreement is hereby amended and restated as follows: 2.1 The Parties agree that on or before April 1, 2020, Company, at its sole option may terminate this Agreement and the City and Company shall thereafter be released and discharged from all obligations hereunder. 2. Except as modified by this Amendment, the provisions of the Agreement shall remain unchanged and in full force and effect and fully binding on the Parties, their successors and assigns and the Agreement and this Amendment shall be construed together as a single integrated document. IN WITNESS WHEREOF, this Amendment is executed by the Parties hereto in their respective names as of the date first above written. CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION 44°,1"°.°%.,t , x 1> Watif. ATTEST: • -vr By: Nicholas A. Gradisar, Mayor I73tgrAet. Brenda Armijo, City' Ierk NEW CF&I INC. A DELAWAR,ORPORATION r By: /// (Signatur , (Print Name) Olesya Afanasyeva (Print Title) Interim CFO STATE OF Illinois ) ) ss. COUNTY OF Cook ) The foregoing instrument was acknowledged before me this 24th day of August , 2019 by Olesya Afanasyeva , as Interim CFO of New CF&I Inc., a Delaware corporation. Witness my hand and official seal. My commission expires: June 12,2023 [ SEAL ] ., iii ��._��_. ►/. EFS Notary Public ANITA L JAGUDEN SPENCER OfRclat Seat Notary Public -State of Illinois My Commission Expires Jun 12, 2023