HomeMy WebLinkAbout10289ORDINANCE NO. 10289
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR
TO SIGN AN AMENDMENT NO. 3 TO AN EMPLOYMENT
AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION AND NEW CF&I INC., A
DELAWARE CORPORATION
RECITALS
The following recitals are incorporated in and made a part of this Ordinance:
WHEREAS, On October 22, 2018, by Resolution No. 14071, City Council approved an
original employment agreement with New CF&I Inc., as Delaware corporation (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 (1,000) full-time employees whose pre-benefit salaries would average at least $60,000;
and
WHEREAS, Paragraph 2.2 of October 22, 2018 Employment Agreement provided as
follows:
2.2. The Parties agree that upon proper application therefor, the City
agrees to reimburse Company in an amount not to exceed Eight Hundred
Thousand Dollars ($800,000.00) for the purpose of providing employment training
of Company’s current and future employees at Pueblo Community College,
Pueblo, CO (“PCC”). The maximum amount for training for each employee shall
not exceed Eight Hundred Dollars ($800.00). The Parties further agree that
reimbursement of training expenses is not addressed in or covered by this
Agreement but will be the subject of a future amendment to this Agreement upon
request of the Company.
and
WHEREAS, Company has requested the City to approve the attached Amendment No. 3
in order to begin implementation of employee training at PCC; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council finds and determines that the expenditure of Eight Hundred Thousand
Dollars ($800,000.00) for the purpose of providing employment training of Company’s current and
future employees at Pueblo Community College, Pueblo, CO (“PCC”) described in the attached
Amendment No. 3 to Employment Agreement (“Amendment No. 3”) is for a public purpose and in
furtherance of a municipal function and will create employment opportunities justifying the
expenditure of public funds. The City Council further finds the economic incentive granted to the
Company hereby meets the standards established by Section 14-4-85 of the Pueblo Municipal
Code.
SECTION 2.
The Amendment No. 3 to Employment Agreement, dated September 26, 2022, between
the City and the Company, a copy of which is attached hereto and is 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. 3 in the name of the City and the City
Clerk is authorized to affix the seal of the City thereto and attest same.
SECTION 3.
Funds in the aggregate amount of $800,000.00 are hereby authorized to be transferred,
expended and made available out of the 1992-2026 Sales and Use Tax Capital Improvement
Projects Fund for the sole purpose of the job training project authorized herein and in the manner
described in the attached Amendment No. 3. The funds hereby authorized to be transferred and
expended shall be released, disbursed and paid by the City’s Director of Finance as specified in
the attached Amendment No. 3.
SECTION 4.
The officers and staff of the City are authorized to perform any and all acts consistent with
this Ordinance and the attached Amendment No. 3 which are necessary or appropriate to
implement the transactions described therein.
SECTION 5.
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 September 12, 2022 .
Final adoption of Ordinance by City Council on September 26, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on September 28, 2022 .
□ 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-19
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: September 12, 2022
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN
AMENDMENT NO. 3 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. 3 to
an employment agreement with New CF&I Inc., as Delaware corporation (the “Company”).
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 (1,000) full-time employees whose pre-benefit salaries would
average at least $60,000.
On November 11, 2019, by Ord. No. 9588, City Council approved an amendment to the
employment agreement (“Amendment No. 1”) which extended the Company’s “off ramp” deadline
from December 1, 2019 until April 1, 2020.
On March 23, 2020, by Ord. No. 9691, City Council approved an amendment to the employment
agreement (“Amendment No. 2”) which extended the Company’s “off ramp” deadline from April
1, 2020 until July 1, 2020.
BACKGROUND:
Paragraph 2.2 of October 22, 2018 Employment Agreement provided as follows:
2.2. The Parties agree that upon proper application therefor, the City
agrees to reimburse Company in an amount not to exceed Eight Hundred
Thousand Dollars ($800,000.00) for the purpose of providing employment training
of Company’s current and future employees at Pueblo Community College,
Pueblo, CO (“PCC”). The maximum amount for training for each employee shall
not exceed Eight Hundred Dollars ($800.00). The Parties further agree that
reimbursement of training expenses is not addressed in or covered by this
Agreement but will be the subject of a future amendment to this Agreement upon
request of the Company.
Company has requested the attached Amendment No. 3 be approved by the City in order to begin
implementation of employee training at PCC.
FINANCIAL IMPLICATIONS:
The attached Ordinance authorizes the transfer of $800,000 from the City’s so-called “Half-Cent
Economic Development Fund” to pay for the Company’s training expenses at PCC.
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 training expenses at PCC will not be reimbursed
and it could be argued that the City would be in breach of the October 22, 2018 Employment
Agreement.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this Ordinance.
Attachments:
Proposed Ordinance
Proposed Amendment No. 3 to Employment Agreement
Amendment No. 3 to Employment Agreement
This Amendment No. 3 to Employment Agreement ("Amendment No. 3") is entered
into this 26th day of September, 2022 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
The following recitals are incorporated in and made a part of this Amendment No.
3:
WHEREAS, On October 22, 2018, by Resolution No. 14071, City Council
approved an original employment agreement ("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 (1,000) full-time employees whose pre-benefit salaries would average at
least $60,000; and
WHEREAS, Paragraph 2.2 of October 22, 2018 Employment Agreement provided
as follows:
2.2. The Parties agree that upon proper application therefor, the
City agrees to reimburse Company in an amount not to exceed Eight
Hundred Thousand Dollars ($800,000.00) for the purpose of providing
employment training of Company's current and future employees at Pueblo
Community College, Pueblo, CO ("PCC"). The maximum amount for
training for each employee shall not exceed Eight Hundred Dollars
($800.00). The Parties further agree that reimbursement of training
expenses is not addressed in or covered by this Agreement but will be the
subject of a future amendment to this Agreement upon request of the
Company.
and
WHEREAS, Company has requested the City to approve this Amendment No. 3
in order to begin implementation of employee training at PCC. NOW THEREFORE,
Agreement
In consideration of the foregoing recitals and the mutual covenants, agreements
and promises in this Amendment No. 3 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. 3:
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1. Section 2.2 of the October 22, 2018 Employment Agreement is hereby
amended and restated as follows:
2.2. The City agrees to reimburse Company in an
amount not to exceed Eight Hundred Thousand Dollars
($800,000.00) for the purpose of providing employment
training of Company's current and future employees at Pueblo
Community College, Pueblo, CO ("PCC"). The maximum
amount for training for each employee shall not exceed Eight
Hundred Dollars ($800.00).
2. Except as modified by this Amendment No. 3, the provisions of the October
22, 2018 Employment Agreement shall remain unchanged and in full force and effect and
fully binding on the Parties, their successors and assigns and said Agreement and this
Amendment No. 3 shall be construed together as a single integrated document.
IN WITNESS WHEREOF, this Amendment No. 3 is executed by the Parties hereto
in their respective names as of the date first above written.
CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION
Xag.,ipeiggo4vis:f ATTEST:
By: Nicholas A. adisar, Mayor g�
Marisa oiler, City
Clerk
NEW CF&I INC.
A DELAWARE CORPORATION
By:
(Signature)
(Print Name)
(Print Title)
STATE OF )
) ss.
COUNTY OF )
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The foregoing instrument was acknowledged before me this day of
, 2022 by , as of New CF&I
Inc., a Delaware corporation.
Witness my hand and official seal.
My commission expires: .
[ SEAL ]
Notary Public
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