HomeMy WebLinkAboutCC AG PKT 2003-12-08 #I AGENDA REPORT
DATE: December 8, 2003 ) 1`
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. 1 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 was
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 expires. Currently PPI is uncertain if
it will remain at it's present location after May 2004 due to business demands, therefore
Amendment No. 1 to the agreement extends the operating term to December 31, 2004
with the option of either party to terminate the agreement upon 30 days' prior written
notice.
FISCAL IMPACT:
Over the past five 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 $40,000 depending
upon how long PPI remains at it's current location and or relocates within the City.
Agenda Item .l
RECOMMENDATION:
Staff recommends Council approve Amendment No. 1 to the agreement between the City
of Seal Beach and Pinnacle Petroleum, Inc. and authorize the City Manager to execute
the agreement.
r er/Rni-A. 4
la Arends -King 0
Director of Administrative Services/Treasurer
NOTED AND :. " ' 'i VED:
John . r : ahorski
Ci . ger