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Home My WebLink About09691 ORDINANCE NO. 9691 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AMENDMENT NO. 2 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 No. 2 to the Employment Agreement (the “Amendment No. 2”) dated March 23, 2020, 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 No. 2 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 No. 2 to the 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 March 9, 2020 . Final adoption of Ordinance by City Council on March 23, 2020 . President of City Council Action by the Mayor: ☒ Approved on March 25, 2020 . ☐ 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-7 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: March 9, 2020 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 NO. 2 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 No. 2 to an employment agreement with New CF&I Inc., a Delaware corporation (the “Company”). The amendment extends the Company’s “off ramp” date from April 1, 2020 until July 1, 2020. PREVIOUS COUNCIL ACTION: On October 22, 2018, by Resolution No. 14071, City Council approved an original employment agreement with the Company 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. On November 11, 2019, by Ordinance No. 9588, City Council approved an amendment to the employment agreement which extended the Company’s “off ramp” deadline from December 1, 2019 until April 1, 2020. 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 April 1, 2020 until July 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 No. 2 to Employment Agreement Amendment No. 2 to Employment Agreement This Amendment No. 2 to Employment Agreement("Amendment No. 2") is entered into this 23rd day of March, 2020 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 No. 2 is to extend the Company's "off ramp" date specified in the Agreement from April 1, 2020 until July 1, 2020. Agreement In consideration of the mutual covenants, agreements and promises in this Amendment No. 2 and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as set forth in this Amendment No. 2: 1. Section 2.1 of the Agreement is hereby amended and restated as follows: 2.1 The parties agree that on or before July 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 No. 2, 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 No. 2 shall be construed together as a single integrated document. IN WITNESS WHEREOF, this Amendment No. 2 is executed by the Parties hereto in their respective names as of the date first above written. CITY OF PUEBLO, A COLORADO zo.ao MUNICIPAL CORPORATION -0*<*° `� ,, )8 2404 ATTEST: ' hoop cal By: Nicholas A. Gradisar, Mayor tunctzt Brenda Armijo, City. lerk 1 NEW CF&I INC. A DELAWARE •RPORATION By: ✓" (Signature,/( (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 2020 by Olesya Afanasyevaas Interim CFO of New CF&I Inc., a Delaware corporation. Witness my hand and official seal. My commission expires: June 12,2023 [ SEAL ] . . i% I�•._ ,` ► /, u.'L_ Notary Public ANITA l JAGUDEN SPENCER OfNdal Seas Notary Public•State of Illinois I/ My CwntnIsslon Expires Jun it 2, 2023 2