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HomeMy WebLinkAbout10071ORDINANCE NO. 10071 AN ORDINANCE APPROVING A FIRST AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND GOODRICH CORPORATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID FIRST AMENDMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council finds and determines that good cause exists for the amendment of the employment agreement between the City and Goodrich Corporation, a Collins Aerospace Company (the “Company”). The First Amendment, dated December 13, 2021, 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 First Amendment in the name of the City and the City Clerk is authorized to affix the seal of the City thereto and to attest same. SECTION 2. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached First Amendment 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 November 22, 2021. Final adoption of Ordinance by City Council on December 13, 2021 . President of City Council Action by the Mayor: ☒ Approved on December 20, 2021 . □ 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-12 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 22, 2021 TO: President Lawrence W. Atencio and Members of City Council VIA: Marisa Stoller, City Clerk CC: Mayor Nicholas A. Gradisar FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING A FIRST AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND GOODRICH CORPORATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID FIRST AMENDMENT SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign a First Amendment to an employment agreement with Goodrich Corporation, a Collins Aerospace Company (the “Company”). The attached amendment extends the Company’s employment commitment date for an additional 2 years but also requires the Company to keep 244 employees on the payroll for an additional 2 years until September 30, 2027. PREVIOUS COUNCIL ACTION: Company and City entered into an original Employment Agreement dated February 2, 2015 which provided for the advancement of funds in the amount of $1,416,800 to the Company in exchange for the Company’s commitment to employ, for a ten (10) year period, an increasing number of jobs every year until September 30, 2020 at which time Company committed to two hundred forty four (244) full time employees whose annual salary would average at least $46,950.00 through September 30, 2025. BACKGROUND: As a result of the COVID-19 pandemic, the Company has requested that the City extend the Company’s employment commitment date for an additional 2 years. The attached proposed ordinance approves such extension but also requires the Company to keep 244 employees on the payroll for an additional 2 years until September 30, 2027. FINANCIAL IMPLICATIONS: No additional “half cent” economic development incentives will be paid to the Company. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the Company’s proposed “work out” of its employment commitment will not be accepted. RECOMMENDATION: The Pueblo Economic Development Corporation recommends approval of this Ordinance. Attachments: Proposed Ordinance Proposed First Amendment to Employment Agreement