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R-95-08-10-13A - 8/10/1995F L tellabs November 16, 2001 Certified Mail Mayor Robert Stluka 221 E. Main Round Rock, Texas 78664 Re: Facility Closure — WARN Notice Dear Mr. Stluka: RECEIVED NOV 1 9 2001 One Tellabs Center 1415 West Diehl Road Naperville, IL 60563 U.S.A. Tel, +1.630.378,8800 Fax: +1,630.798.2209 This notice is being provided pursuant to the Worker Adjustment and Retraining Notification Act of 1988, which requires employers to give official notice to certain government units or officials of a pending facility shutdown. Please be advised that due to a change in business circumstances, Tellabs Operations, Inc. will permanently cease its operations at 601 Jeffrey Way, Round Rock, TX 78664. As a result, all employees at that facility will be permanently laid off. While an exact date has not yet been established for this closure, it is anticipated that employment will terminate between January 18, 2002 and March 31, 2002. Based upon the best information currently available to us, the closure will result in the permanent layoff of 438 employees. The job titles, positions, and numbers of laid -off employees in each classification are noted on the attached list. Please understand that the entire facility is closing, there is no union organization at the facility, and there are no applicable bumping or transfer rights. You may contact the following Company official for further information: Sincerely, A% big/ hit Alan Vondrell Director, Operations Danita McGhee 601 Jeffrey Way Round Rock, TX 78664 512- 218 -5774 Position Accounting Admin Clerk 1 Admin Assistant 1 Assoc Member Tech Staff 4 Buyer 1 Cost Accountant 1 Director Operations 1 Documentation Control Specialist 1 Documentation Control Specialist 2 4 Documentation Control Specialist 3 3 Documentation Supervisor 1 Electronic Associate 0 2 Electronic Associate 1 5 Electronic Associate 2 18 Electronic Associate 3 81 Electronic Associate 4 155 Engineering Admin 1 Engineering Admin 2 1 GIS Team Leader 1 HR Administrator 1 HR Professional 2 1 HR Professional 3 1 Inventory Management Coordinator 1 Inventory Management Specialist 1 7 Inventory Management Specialist 2 1 Lead Engineer 1 Lead Systems Specialist 1 Learning & Development Specialist 1 Maintenance Mechanic A 4 Maintenance Tech A 6 Manufacturing Admin Assistant 1 Master Scheduler 2 Material Handler 16 Material Specialist 1 Member Tech Staff 1 10 Member Tech Staff 2 4 Mgr Engineering 1 Mgr Facilities 1 Mgr Into Systems Sr 1 Mgr Logistics 1 Mgr Manufacturing 2 Mgr Prod. Ping & Inv Control 1 Plant Mgr 1 Production Planner 1 Quality Auditor 1 Receptionist/Switchboard 1 Sr Buyer 1 Sr CAD Operator 1 Sr Master Scheduler 2 Sr Member Tech Staff 8 Sr Mgr Human Resources 1 Sr Safety Technician 1 Sr Secretary 1 Sr Systems Specialist 3 Staff Engineer 1 Supervisor Maintenance 2 Supv Manufacturing 9 Systems Manager 1 Systems Specialist 3 Technician 2 17 Technician 3 8 Technician 4 11 Technician 5 16 Total 438 Ordinance No. G- 95- 08- 10 -12A, created Reinvestment Zone No. Ten in the City of Round Rock, Texas, and WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S. as WHEREAS, the City Council, on the 10th day of August, 1995, in amended, the City desires to enter into a tax abatement agreement with Tellabs Operations, Inc., a Delaware Corporation, regarding property located in said Reinvestment Zone No. Ten, and WHEREAS, the Council has determined that all requirements of the guidelines and criteria adopted by Ordinance No. G- 93- 12 -09 -9G have been complied with, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City a Tax Abatement Agreement with Tellabs. RESOLVED this 10th day of August, 1995. ATTEST: K: RESOLUTION R5500810A E LAND, City Secretary RESOLUTION NO. R- 95- 08- 10 -13A CHARLES CULPEP R, Mayor City of Round Rock, Texas THE STATE OF TEXAS COUNTY OF WILLIAMSON TAX ABATEMENT AGREEMENT This Tax Abatement Agreement ( "Agreement ") is entered into by and between the City of Round Rock, Texas, a home rule city and municipal corporation of Williamson County, Texas, duly acting herein by and through its Mayor, hereinafter referred to as "City "; Williamson County, duly acting herein by and through the County Judge, hereinafter referred to as "County "; and Tellabs Operations, Inc., a Delaware corporation, duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". RECITALS WHEREAS, on the /O day of 1995, the City Co ncil of the City of Round Rock, Texas, ad6pted Ordinance No. 9s D A /O -42A establishing Reinvestment Zone No. /Q, City of Round Roc , Texas for commercial /indus tax abatement, hereinafter referred to as "Ordinance No. ( as authorized by Chapter 312, Tax Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and WHEREAS, the City has adopted Ordinance No. G- 93- 12- 09 -9G, which Ordinance adopted appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, the contemplated use of the Premises (as hereinafter defined) and Improvements (as hereinafter defined) as well as the terms of this Agreement are consistent with encouraging development in said Reinvestment Zone No. /0 in accordance with the purposes for its creation and are in compliance with Ordinance No. G- 93- 12 -09 -9G and the guidelines and criteria adopted by the City and all applicable laws; and WHEREAS, the Improvements constitute a major investment within Reinvestment Zone No. /0 that will substantially increase the appraised value of property within the zone and will contribute to the retention or expansion of primary and secondary employment within the City and County; and WHEREAS, the City and County find that there will be no substantial adverse effects on the provision of governmental services or on their tax bases and that the planned use of the Premises will C: \WPDOCS\ CITY \ABATEMEN \TELLABS \TAA2.WPD /sus 1 not constitute a hazard to public safety, health, or welfare, NOW THEREFORE, the parties hereto do mutually agree as follows: 1. Property subject to Agreement. The property to be the subject of this Agreement shall be that property included within Reinvestment Zone No. _ which is more fully described in Exhibit "A" which is made a part hereof and shall be hereinafter referred to as the "Premises." 2. Construction of Improvements. The Owner shall promptly commence construction of its facility as described in Exhibit "B" on the Premises (said facility hereinafter referred to as "Improvements ".) The total construction cost of the Improvements is approximately Two Million and no /100 Dollars ($2,000,000.00), which Improvements are to be substantially complete on or about April 1, 1996; provided that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City. 3. Completion of Improvements. The Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the completion of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Owner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as a manufacturing /office facility. 4. Provision of jobs. The Owner agrees and covenants that it will provide and /or retain at least 402 jobs on the Premises from the completion date of the Improvements throughout the term of this Agreement. The Owner shall provide to the City and County annual manpower reports in the form attached hereto as Exhibit "E" and made a part hereof, within sixty (60) days following the end of each calendar year. Regardless of anything contained herein to the contrary, the failure by Owner to provide the number of jobs set out in the above C: \WPDOCS\ CITY \ABATEMEN \TELLAES \TAA2.WPD /s!.s 2 schedule shall not be considered an event of default as defined in paragraph l0below unless the number of jobs actually provided is less than seventy -five percent (75 %) of the number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number but is seventy -five percent (75 %) or more, then the percentage of tax abatement for the following year as provided in paragraph 7 below shall be reduced. The percentage of tax abatement shall be reduced by the same percentage that the actual number of jobs bears to the scheduled number of jobs. By way of illustration, if on December 31, 1996 Owner has provided ten percent (10 %) fewer jobs than is required, then its abatement shall be reduced by ten percentage points (i.e. the 90% abatement shall be reduced ten percentage points to an 80 %% abatement.) Failure of the Owner to provide at least seventy -five percent (75 %) of the number of jobs required by this Agreement shall be considered an event of default. 6. Application for tax abatement. The Owner agrees and covenants that the attached application for tax abatement (Exhibit "C ") is a part of this Agreement, and Owner further warrants that the information provided in that application is true and correct. If any materially false or misleading information is provided in said application, City or County shall have the discretion to declare this Agreement to be in default and City and /or County shall be entitled to the remedies provided for in paragraph 10. 7. Portion of taxes abated. Subject to the terms and conditions of this Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes from the Premises otherwise owed to the City and County shall be abated. City and County hereby acknowledge that they are not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to the below- stated percentages assessed upon the increased value of the Premises and Improvements over the value in the year in which this Agreement is executed, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements are as follows: Tax Year 1996 Tax Year 1997 Tax Year 1998 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1996. 8. Right of inspection. The Owner further agrees that the City and County, their agents and employees shall have the right to enter upon the Premises at any reasonable time to inspect the Improvements in order to determine whether the construction of the Improvements C: \WPDOCS\ CITY \ABATEMEN \TELLABS \TAA2.wPD /s - _s 3 is in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations or valid waiver thereof. After completion of the Improvements, the City and County shall have the continuing right to enter upon and inspect the Premises at any reasonable time to determine whether the Premises are thereafter maintained and operated in accordance with this Agreement and all applicable Federal, state, and local laws, ordinances, and regulations. If the City or County determine that a violation of a Federal, state or local law, ordinance or regulation exists on the Premises, the City or County may, in addition to any other authorized enforcement action, provide to the Owner written notice of such violation. For the purposes of this Agreement, the Owner shall have ten (10) days from the date of the notice to cure or remedy such violation. If the Owner fails or refuses to cure or remedy the violation within the ten (10) day period, the Owner is subject to the forfeiture, at the discretion of the City and /or County, of any right to any tax abatement for a portion of the period or the entire period covered by this Agreement. In addition, the failure or refusal to cure or remedy the aforesaid violation shall be considered a default of this Agreement under paragraph 10. 9. Additional assessed value of the Premises. The Owner agrees and covenants that upon completion of the Improvements, the Premises shall contain additional assessed value of not less than $4,500,000.00. Owner shall provide to the City and County a statement of the value of taxable real property, personal property and equipment within sixty (60) days following completion of the Improvements. The City and /or County shall have the option of conducting an appraisal by an appraiser acceptable to City and /or County to verify the value of said property and equipment. If the value determined is one hundred and five percent (1050) or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be borne by the City or County requesting such appraisal. The taxable value shall be determined on a uniform and equal basis of assessment by the methods used by the Williamson County Tax Appraisal District. 10. Events of default. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed the City or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that the Owner defaults in its performance of (1), (2), or (3) above, then the City or County shall give the Owner written notice of such default and if the Owner has not cured such default within thirty (30) days of said written 0: \WPDOCS\ CITY \ABATEMEN \TELLABS \TAA2.WPD /sls 4 notice, this Agreement may be terminated by the City or County by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: 12. Authorizations. Delaney Mullen Operations Controller 601 Jeffrey Way Round Rock, Texas 78664 As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner to the City and County and shall be due, owing and paid to the City and County within sixty (60) days of the expiration of the above mentioned applicable cure period. The City and County shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes. 11. Agricultural land. It is understood and agreed by the City, County, and the Owner that if the Premises have been designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S., this Agreement shall not be effective and no abatement will be granted until Owner has removed the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as amended, (roll back taxes) have been paid. a) City. This Agreement was authorized by Resolution of the City Council at its council meeting on the /Q'Jt_ day of Au ow 1995, authorizing the Mayor to execute the Agreement on behalf of the City. b) Commissioners Court. This Agreement was authorized by Resolution or Order of the Willia o County Commissioners Court at its meeting on the,..Z04A.D day o .f, 1995, authorizing the County Judge to execute the Agreeme on behalf of the County. c) Tellabs. This Agreement was authorized by Tellabs Operations, Inc. pursuant to authority granted by its Board of . Direct 4s on the .40A day of Su /y , 1995, whereby the U /CC ffS /MEA.IL was authorized to execute this Agreement on behalf of Tellabs Operations, Inc., a copy of which authorization is attached hereto as Exhibit "D ". C: \WPDOCS\ CITY \ABATE[3EN \TELLASS \TAA2,WPD /s_s 5 13. Miscellaneous provisions. a) City and County representations. The City and the County each represent and warrant that the Premises does not include any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. b) Agreement binds successors. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. c) Assignment. This Agreement cannot be assigned by Owner unless written permission is first granted by the City and County, which permission shall not be unreasonably withheld; provided however, Owner may assign its rights under this Agreement to an entity which is wholly owned by Owner. No assignment shall be approved if the assignor or assignee are indebted to the City or County for ad valorem taxes or other obligations. d) Owner acting independently. It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City and County assume no responsibilities or liabilities in connection therewith to third parties. e) Owner's Indemnity. During the term of this Agreement, Owner agrees to indemnify and hold City and County harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments which may accrue to Owner, City, County, or third parties arising out of Owner's failure to perform this Agreement. f) Venue. This Agreement is performable in Williamson County, Texas, and venue for any suit arising hereunder shall be in Williamson County, Texas. Witness our hands this /6. 7 day of , 19 9C" C:\ WPDOCS\ CT. TY \ABATEMEN \TELLABS \TJA2.WPD /sis 6 CITJG OF ROUND ROCK, TEXAS CHARLES EPPER, Mayor AT ST: I ,h.4 JL_ I_.tJ J' LAND, City Secretary APPROVED AS TO FORM: STEPHAN L. SHEETS, City Attorney APPROVED AS TO FORM: Gene Taylor, County Attorney APPROVED AS TO FORM: (.Lf.t f &44.64 /6.04 J , Corporate Attorney C: \WPDOCS\ CITY \ABATEMEN \TELLABS \TAA2.WPD /s_s WILLIAMSON COUNTY COMMISSIONERS COURT TELLABS OPERATIONS, INC. B - �r cilavdT Tylo,- V - 61 4 0 7 EXHIBIT "A" Page 1 of 1 Property Description Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County, Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. C: \WPDOCS\ CITY\ ABATENFN \TELLP.BS \'TAA2.WPD /sls 8 EXHIBIT "A" Page 1 of 1 Property Description Lot 2, AmorRon Park II 9a replat of Lot 5, Bradford 21 Limited Business Park, Section One and Lot 6, Bradford 21 Limited Business Park, Section Two) a subdivision located in Round Rock, Williamson County, Texas according to the map or plat of record in Cabinet K, Slide 16, Plat Records Williamson County. EX IIBIT "B" Description of Improvements To Be Constructed A 40,000 square foot addition and related waste water detention pool. Addition to be constructed using tilt wall method and used for the purpose for manufacturing telecommunication products. EXHIBIT "C" APPLICATION FOR TAX ABATEMENT This is to certify that the statements contained herein are true and correct. The signers hereof are authorized to make these statements on behalf of the applicant. The filing of this document acknowledges familiarity and conformance with guidelines and criteria for granting tax abatement. This application will become part of the agreement which shall be enforceable and binding on the applicant. False representations will be grounds for terminating the agreement. Any such false statements shall be considered a default which renders the agreement void. This application should be filed with the City Manager of the City of Round Rock, 221 East Main Street, Round Rock, Texas 78664. I. APPLICANT INFORMATION: DATE: 7 -13 -95 Company Name: Tellabs Operations, Inc. Address: 601 Jeffrey Way Round Rock, Texas 78664 II. PROJECT INFORMATION: A. Description of area to be designated as reinvestment zone: (attach map) AmorRon Park II, Lot 2 B. Description of eligible improvements (real property) to be constructed: A 40,000 square foot tilt wall expansion attached to the current structure, constructed on Lot 2 of AmorRon Park II. C. Current assessed value: As of the 1994 Tax Statement appraised value of land is $1,127,190. Improvements appraised at $2,522,200. D. Estimated value of eligible improvements: $2,000,000 or $50.00 per square foot. (Value of real property) $2,500,000 (Value of personal property) txabmt.3.14.95 Page 1 E. Description of ineligible (taxable) property to be included in project: Lot 2 of AmorRon Park II and equipment listed in Exhibit "C" Schedule 1. F. Estimated value of ineligible property: Lot 2 of AmorRon Park II: $1,127,190 See Exhibit "C" Schedule 1 for detail equipment Book Value. Total value of $2,173,164.83 G. Estimated value of site as of January 1 preceding abatement agreement: Land: $1 127.190 Improvements: $2.522.200 Personal Property: $5.557.880 H. This project is: ( ) A New Plant (X ) An Expansion ( )A Modernization If Modernization: Estimated economic life of existing plant: N/A years Added economic life from modernization: N/A years I. Tax abatement requested: 90% of eligible property for year 1. 60% of eligible property for year 2. 30% of eligible property for year 3. III. ECONOMIC INFORMATION: A. Construction Estimates: Conunencement Date: August 14, 1995 Completion Date: April 1, 1996 # of Construction jobs 15 Per Day B. Estimated number of jobs to be created: 1 December 31, 1996 2. December 31, 1997 3. December 31, 1998 txabmt.3.14.95 Page 2 C. Other estimated taxes generated by project: Sales Tax: 0 Other (Identify): 0 D. The proposed reinvestment zone is located in: City: Round Rock County: Williamson School District: Round Rock Independent School District (RRISD) Other Taxing Water Control & Improvement District #3 of Williamson, jurisdict • Milam and Lee Counties Signa . " uthorized Company Official Delaney Mullan Operations Controller Printed Name and Title of Authorized Company Official Company Representative to be contacted: Name: Delaney Mullan Address: 601 Jeffrey Way Round Rock. Texas 78664 Telephone No: _(512) 218 -5710 Title: Operations Controller Upon receipt of the application, the City of Round Rock may also require copies of the latest annual stockholders report, audited financial statements, bank references, and any other information required to evaluate the application. Txabmt.3.14.95 Page 3 STATE OF TEXAS COUNTY OF WILLIAMSON VERIFICATION O E, the undersigned Notary, Public, on this day personally appeared_ pe r title of pp . Qp - -( ) Tall abs operations , Inc . (Owner), being e duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; that he has read the above and foregoing Application For Tax Abatement; and that every statement contained in the Application is within his knowledge and true and correct. 19957 certify which witness my hand and official seal. Notary Public, State of Ted / Printed Name: sa.. 9 � fj u, dcy My Commission Expires: 61,2619 txabmt.3.14.95 Page 4 EXHIBIT "C " Schedule 1 Tellabs Operations, Inc. Location: Texas Ineligible Property for Tax Abatement SMT BOOK VALUE @ 6/30/95 Board Prep Table $4,573.38 Board Transfer Conveyors $108,208.00 Screen Printer $225,314.00 Fuji GL -V Adhesive Dispensing Machine $137,690.00 Fuji CP6 Placement machine $583,790.00 Fuji IP3 Placement machine $576,752.00 BTU Ref low Oven $137,619.00 Cam/Alot Liquid Dispensing Machine $37,244.00 Eyelet Machine (Rivet) $7,318.00 Rework Area - Table, Sierra Rework Machine $48,089.00 Cabinets $6,140.00 Hand Insertion Slide Lines $4,742.00 Electrovert Wave Solder Machine $213,606.00 Touchup Slide Lines $4,742.00 Test Sets $26,317.68 Stencil Cleaner $41,580.00 8 Desks' $0.00 SUBTOTAL $2,163,725.06 (2) 70' Roller Conveyors $7,420.37 (16) Flow Conveyor Racks (cost included w/ #1) Pallet Jacks $2,019.40 Work Tables $0.00 (3) Desks $0.00 SUBTOTAL $9,439.77 GRAND TOTAL $2,173,164.83 FINISHED GOODS Exhibit D Secretary's Certificate I, Carol Coghlan Gavin, hereby certify that I am the duly elected Secretary and keeper of the records of Tellabs Operations, Inc. ( "Corporation ") a Delaware corporation and that the following resolution was duly adopted by the Board of Directors of the Corporation on July 26, 1995, and remains in full force and effect. RESOLVED, that the President and any Vice President of the Corporation be and hereby are authorized and empowered to enter into a contract for tax abatement with the City of Round Rock, Texas, in the name and on behalf of the Corporation, upon such terms and conditions as may be agreed upon between such officers and said City of Round Rock, Texas. I also certify that the following individuals are duly elected officers of the Corporation as indicated below: Richard T. Taylor, Vice President and General Manager Dated: July 27, 1995 Carol Coghlan Gavin, Vice President, &I (Txd ft_ &keel.'' General Counsel and Secretary Signatu ' By: (, r Carol Cog l n Gavin EXHIBIT "E" MANPOWER REPORT I, of (Owner) do certify that on December 31, 19 there were full time employees at STATE OF TEXAS COUNTY OF WILLIAMSON Signature: Printed Name: Title: Date: BEFORE ME, the undersigned Notary Public, on this day personally app of (Owner), being by me duly sworn on his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; and that every statement contained in the Manpower Report is within his knowledge and true and correct. SUBSCRIBED AND SWORN TO BEFORE ME on the day of , 19 , to certify which witness my hand and official seal. Notary Public, State of Texas Printed Name: My Commission Expires: Year Abatement % Contract Current CORR Tax rate .48896/$100 av 1996 90% $4,500,000 19,802.00 1997 60% $4,500,000 13,202.00 1998 30% $4,500,000 6,601.00 39,605.00 DATE: August 8, 1995 SUBJECT: City Council Meeting, August 10, 1995 ITEM: 13.A. Consider a resolution authorizing the Mayor to enter into a tax abatement agreement with Tellabs Operations, Inc. (Reinvestment Zone #10) Staff Resource Person: Joe Vining Staff Recommendation: Approval This is a three year tax abatement agreement designed to facilitate the expansion of the Tellabs telecommunication products manufacturing plant. Construction of a 40,000 square foot tilt wall building is scheduled to begin August 14 and should be completed by April 1, 1996. The new facility is estimated to cost $2,000,000 with an additional $2,500,000 in personal property and equipment, for a minimum investment of $4,500,000.00. The company agrees to provide and /or retain at least 402 jobs from the completion date throughout the term of the agreement. ECONOMIC IMPACT: R-95-08-10-13C Agreemnt w /Justex Systems, Inc. - police Dept. -exam material, etc. 8/10/95 RESOLUTION NO. R- 95- 08- 10 -13C WHEREAS, the City is in need of professional services for examination materials and services for promotion exams for the ranks of Corporal, Sergeant and Lieutenant in the Police Department, and WHEREAS, 1 1 submitted a proposal to provide said professional services, and WHEREAS, the Council wishes to accept the proposal of BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an agreement with e(2J) ATTEST: KG \RESOLUTION R850622C E LAND, City Secretary , Now Therefore has to provide the needed professional services for examination materials and services for promotion exams for the ranks of Corporal, Sergeant and Lieutenant in the Police Department, a copy of said agreement being attached hereto for all purposes. RESOLVED this 10th day of August, 1995. CHARLES CULPEr'ER, Mayor City of Round Rock, Texas L1USTEX SYSTEMS, INC. 1 u...ui.u...u.iu..ui I. Justex agrees to: II. Client agrees to: AND ANCILLARY SERVICES P. 0. Box 6224 Huntsville, Texas 77342 -6224 Telephone (409) 291 -7981 FAX (409) 294 -0984 AGREEMENT FOR RENTAL OF EXAMINATION MATERIALS This agreement is entered into this 1. day of July, 1995, between Justex Systems, Inc., of Huntsville, Texas, hereinafter called " Justex" and the City of Round Rock, Texas, hereinafter called "Client" for rental of promotional examinations and related ancillary services and products. The parties mutually agree as follows: A. Provide a pencil -paper type examination of approximately 100 items for use in the promotional process for the ranks of corporal, sergeant, and lieutenant, said examination items to be drawn from the textbooks and study materials contained in attached Service Schedule C. B. Provide sufficient copies of the examination to a designated representative of the client for administration to eligible candidates seeking promotion to the ranks of corporal, sergeant, and lieutenant on October 6, 1995. C. Provide one set of examination items and answers with a key to the source material from which said examination items were developed for use by the client in case of item appeals by candidates for each rank tested. A. Use examinations provided by Justex only for official purposes of the agency in examining candidates for the positions of corporal, sergeant, and lieutenant; B. Appoint an individual to be responsible for receipt of all examination materials and notify Justex of that individual's name, address, and telephone number; C. Refrain from copying examinations or related materials and preventing its employees and agents from copying same; D. Afford appropriate security to all test materials in order to maintain the confidentiality and integrity of the materials; E. Refrain from providing copies of the examination materials to any other public safety agency; F. Refrain from using copies or contents of examination materials for any future promotional process in the Round Rock Police Department without written consent from Justex; G. Return all materials to Justex, postage or freight prepaid, within fifteen (15) days of the testing date; H. Pay Justex the total fee reflected in "Cost Appendix." III. Miscellaneous Provisions A. Justex expressly retains all rights to the use or reproduction of examination questions, examination forms, inventory menus, study guides, or other written materials provided to client. B. Client agrees to notify Justex promptly of any claims, challenges, administrative appeals, or judicial actions which may be instituted as a result of the products and services provided under this agreement. C. While reasonable efforts have been made to insure that the products and services provided under this agreement meet applicable fair employment laws and regulations, Justex makes no warranty, express or implied, that the products or services provided will be sustained by any court or administrative body if challenged. D. Client agrees that Justex will in no way be held responsible for any such litigation or administrative review nor legally liable for the consequences of such challenges. Justex agrees to provide testimony as to test theory, test design, testing process, and test grading before any administrative or judicial body. The expense of such testimony is to be borne by the client on an actual expense incurred basis plus $500 per day for each day of preparation or testimony. E. Justex retains the right to terminate this agreement and withhold or recall any or all examinations and examination related materials if it believes the terms and conditions of this agreement are being or have been violated. F. Rental rates and other costs of products and services shall be calculated based upon the attached "Cost Appendix" which is specifically incorporated as a part of this agreement. Costs shall be payable to Justex within thirty (30) days of administration of examination. "Estimated Total Costs" does not include costs of textbooks and shipping and handling costs of textbooks. This agreement consists of 3 pages plus a page entitled "Cost Appendix" and two pages entitled "Service Schedules A and C" which are expressly made a part of this agreement. IN WITNESS WHEREOF, the parties have executed this agreement on the date aforementioned. JUSTEX SYSTEMS, INC. CITY OF ROUND ROCK, TEXAS By: Dowling, Vic President Authorized R- p'f'sentative COST APPENDIX Exam Rental Fee for Corporal $2,400.00 which includes: • 50 Test Booklets with 100 test items • Preparation of Study Guide for candidates • Test Administration Guide • Book Ordering Service for candidates • Grading and Item Analysis Additional Test Booklets are $25 each Profiling Fee $ 595.00 Exam Rental Fee for Sergeant $2,400.00 which includes: • 50 Test Booklets with 100 test items • Preparation of Study Guide for candidates • Test Administration Guide • Book Ordering Service for candidates • Grading and Item Analysis Additional Test Booklets are $25 each Profiling Fee $ 595.00 Exam Rental Fee for Lieutenant $2,400.00 which includes: • 50 Test Booklets with 100 test items • Preparation of Study Guide for candidates • Test Administration Guide • Book Ordering Service for candidates • Grading and Item Analysis Additional Test Booklets are $25 each Profiling Fee $ 595.00 TOTAL ESTIMATED COST $8,985.00 SERVICE SCHEDULE A Justex agrees to: 1. Provide sufficient answer sheets for use in administering the examination. 2. Provide one set of examination items and answers with a key to the source material from which said examination items were developed for use by the client in case of item appeals by candidates; client may retain the examination booklets indefinitely as long as all parts of this contract are adhered to. SERVICE SCHEDULE C Justex agrees to: 1. Develop questions from the following materials: texts and materials mutually agreed upon in the future STAFF RECOMMENDATION: DATE: August 8, 1995 SUBJECT: City Council Meeting - August 10, 1995 ITEM: 13.C. Consider a resolution authorizing the Mayor to enter into an agreement for examination materials and services for promotion exams for the ranks of Corporal, Sergeant and Lieutenant in the Police Department. STAFF RESOURCE PERSON: Lt. James Jackson /Chief Kuhlmann The Police Department recommends that the Council enter into an agreement with Justex Systems, Inc. for a paper type examination for the use in the promotional process for the ranks of Corporal, Sergeant and Lieutenant positions. This exam is the first step in the Assessment Center for the eligibility list for Corporals, Sergeants, and Lieutenants which will be in place for one year. Mayor Charles Culpepper Mayor Pro-tem Earl Palmer Council Members Robert Stluka Rod Morgan Rick Stewart Martha Chavez Jimmy Joseph City Manager Robert L. Bennett. Jr. City Attorney Stephan L Sheets August 15, 1995 Jerry L. Dowling, Vice President Justex Systems, Inc. P.O. Box 6224 Huntsville, TX 77342 -6224 Dear Mr. Dowling: Resolution No. R- 95- 08- 10 -13C was approved by the Round Rock City Council on August 10, 1995. Enclosed is a copy of the resolution and a copy of the agreement for your files. If you have any questions, please do not hesitate to call. Sincerely, /a oanne Land Assistant City Manager/ City Secretary Enclosure(s) THE CITY OF ROUND ROCK 221 East Main Street Round Rock, Texas 78664 512- 255 -3612 Fax 512 - 255 -6676 1- 800 - 735 -2989 (TDD) 1 -800- 735 -2988 (Voice) I