HomeMy WebLinkAboutCC AG PKT 2005-04-25 #G 1, I'
AGENDA REPORT ,0
DATE: April 25, 2005
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King, Director of Administrative Service /Treasurer
SUBJECT: Amend Agreement Between City of Seal Beach and
Pinnacle Petroleum, Inc.
SUMMARY OF REQUEST:
Staff requests City Council approve Amendment No. 2 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 with
Pinnacle Petroleum Inc. (PPI) for relocating to Seal Beach. The sales -tax rebate is 30 %.
Since Pinnacle Petroleum Inc. relocated to Seal Beach, it has been one of the City's
major sales tax revenue generating businesses.
As of December 31, 2003 the five -year agreement expired and was extended with
Amendment No. 1 which expired December 31, 2004. Amendment No. 2 extends the
agreement to December 31, 2005 with the option of either party to terminate the
agreement upon 30 days' prior written notice.
FISCAL IMPACT:
Over the past six years the annual net sales tax revenue generated by PPI averaged
$110,000. With the extension of the terms of the agreement for twelve months with PPI
the City is expected to generate at a minimum sales tax revenue of at least $100,000
Agenda Item 6t
RECOMMENDATION:
Staff recommends Council approve Amendment No. 2 to the agreement between the City
of Seal Beach and Pinnacle Petroleum, Inc. and authorize the City Manager to execute
the agreement.
a fte,444.,,,-/eze
Pamela Arends -King
Director of Administrative Services /Treasurer
NOTED a APPROV r ri :
A I
John :. orski
City ager
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