HomeMy WebLinkAboutCC AG PKT 2007-03-26 #K
e
e
e
AGENDA REPORT
DATE:
March 26, 2007
TO:
Honorable Mayor and City Council
THRU:
Greg Beaubien, Interim City Manager
FROM:
Keith Evanoff, CIMA, CRP, CRRA
Director of Administrative Servicelfreasurer
SUBJECT:
Amend Agreement Between City of Seal Beach and
Pinnacle Petroleum, Inc"
SUMMARY OF REQUEST:
Staff requests City Council approve Amendment No. 4 to the Agreement between the
City of Seal Beach and Pinnacle Petroleum, Inc. and authorize the City Manager to
execute the Agreement.
BACKGROUND:
In October 1998 the City entered into a five-year sales-tax rebate agreement (Agreement)
with Pinnacle Petroleum Inc. (pinnacle) as an incentive to relocate operations to Seal
Beach. The City currently rebates 30% of sales tax collected. Pinnacle has been one of
the City's major sales tax generator's for almost a decade thus providing support for the
current rebate program.
The initial five-year agreement expired on December 3l, 2003 and was extended
n_____ -following tile aPlirovnl-or-AmemlmenrNlJ.1-whicl1 expired-omryEmdatenm--December---------
31, 2004. The Agreement was extended for an additional two years subsequent to the
approval of Amendment Nos. 2 & 3, respectively. Amendment No. 4 extends the
Agreement to December 3l, 2007 with both parties maintaining the option to terminate
the Agreement upon 30 days' prior written notice.
FISCAL IMPACT:
Over the past seven years the annual net sales tax revenue generated by Pinnacle
averaged $134,000. By extending the terms of the Agreement for an additional twelve
months, the City is expected to generate sales tax revenue of approximately $120,000, at
minimum.
Agenda Item~
e
e
e
RECOMMENDATION:
That Council approve Reso authorizing 1) Amendment No.4 to the agreement
between the City of Seal Beach and Pinnacle Petroleum, Inc. and, 2) the City Manager to
execute the agreement.
/(.,Q~
Keith Evanoff, CIMA, CRP. CRRA
Director of Administrative Services/Treasurer
NOlED AND APPROVED:
----- --._------ -.----------- . .-.- -.. ---~ ------.----------------------------.------
Agenda Item_
e
RESOLUTION NUMBER
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH APPROVING AMENDMENT NO. 4 TO THE
AGREEMENT BETWEEN CITY OF SEAL BEACH AND
PINNACLE PETROLEUM,INC.
The City Council of the CIty of Seal Beach hereby resolves.. follows:
SECTION 1. The City CouncIl hereby approves Amendment No, 4 to the Agreement
between the City of Soal Beach and Pinnacle Petroleum, Inc. dated March 26, 2007.
SECTION 2, The Council herehy dll'Ccts the City Manager to execute the Amendment
on behalf of the City,
SECTION 3. The Council herehy directs the City Clerk to msctt the date of the
Amendment mto Section 1 hereinabove.
SECTION 4. The City Clerk shall certify to the p..soge and adoption of this resolution.
PASSED, APPROVED AND ADOPI'ED by the City Council of the City of Seal Beach
this 26th day of March , 2007 by the following vote:
AYES: Council Members
NOES: Council Memhen
e ABSENT: Council Members
ABSTAlN' Council Memhen
Mayor
AlTEST:
CIty Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
1, Linda Devine. City Clerk of the City of Seal Beach, California, do hereby certify that
the foregoing Resolution is the origmal copy of Resolution Number _ on file in the
office of the City Clerk, passed, approved, and adopted by the City Council of the City of
Seal Beach at a meeting thereof held on the ~day of March ,2007,
e
City Clerk
e
e
AMENDMENT NO.4 TO AGREEMENT
BETWEEN CITY OF SEAL BEACH AND PINNACLE PETROLEUM, INC.
THIS AMENDMENT NO.4 ("Amendment No.4"), dated as of March 26, 2007, is
entered into by and between the CITY OF SEAL BEACH, a public body, corporate and politic
("City") and PINNACLE PETROLEUM, INC., a California corporation ("PPr').
RECITALS
A. PPI is currently located on a site ("Site") in the City of Seal Beach. To induce PPI to
conduct its business in the City, the City has provided financial assistance to PPI pursuant to that
certain agreement dated October I, I998("Agreement").
B. In 2006, the parties previously extended the term of the Agreement.
C. The parties wish to amend the Agreement to further extend the term of the
Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein
contained, the parties agree to amend the Agreement as follows:
Section One.
read as follows:
Article 7 of the Agreement, as previously amended, is hereby amended by to
"ARTICLE 7 EXTENSION
Section 7.1 The Operating Term of this Agreernent is hereby extended
until December 31,2007.
-- --- --.------------- -- -------------_._-------~--- - ---------------
_ __n._. _ _ _ ____________
e
Section 7.2 Notwithstanding any other provision of this Agreement, or
any Amendment thereto, this Agreement may be terminated by either party upon
30 days' prior written notice given in the sole and absolute discretion of the
terminating party."
Section Two.
Section 6.15 is hereby amended to read in its entirety as follows:
"Section 6.15 Entire Agreement, Waivers and Amendments. This
Agreement, as amended by Amendment No.1, Amendment No.2, Amedment No.3
and Amedment No.4, together with all attachments and exhibits and all documents
to be executed and delivered pursuant to this Agreement, constitutes the entire
understanding and agreement of the Parties. This Agreement, as amended by
Amendments No.1, 2, 3 and 4, integrates all of the terms and conditions mentioned
57296\0001 \Pinnacle Extenlion NO.4 03-26-07 - 1 -
e
e
e
herein or incidental hereto, and supersedes all negotiations or previous agreements
between the parties with respect to all or any part of the subject matter hereof. Any
waiver, amendment, or modification of any provision of this Agreement must be in
writing and signed by both Parties."
Section Three. Except as amended herein, the terms and provisions of the Agreement shaH
remain in full force and effect.
TO EFFECTUATE TmS AMENDMENT NO.4, the parties have caused their duly authorized
representatives to execute this agreement on the dates set forth below.
City of Seal Beach
By:
Interim City Manager
City of Seal Beach
Date:
Date:
J}~}Ol
____ ___ ____ _ ___._.___R._ .. _~______ .._____n_____ _________ _.________n
A TIEST:
City Clerk
S7296\D001\Pinnacle Extenlion NO.4 03-26-07
-2-