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Home My WebLink AboutPR 14685: EDC/LAMAR STATE COLLEGE-PORT ARTHUR - TRAINING GRANTinteroffice MEMORANDUM To: Mayor,-City Council, and City Manager __ From: Mark Sokolow, City Attorney ~~,,,i( ~~u,'~-~ Date: April 18, 2008 Subject: P. R. No. 14685; Council Meeting April 22, 2008 Attached is P. R. No. 14685 approving a Training Grant Agreement between Lamar State College-Port Arthur and the City of Port Arthur Section 4A Economic Development Corporation. MTS:ts Attachment cc: Floyd Batiste CEO of EDC Guy Goodson Attorney for EDC z.pr14686~memo P. R. No. 14685 04/18/08 mts/gg RESOLUTION NO. A RESOLUTION APPROVING A TRAINING -GRANT AGREEMENT BETWEEN LAMAR STATE COLLEGE - PORT.ARTHUR AND CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION WHEREAS, the City Council deems it in the public interest to authorize the City of Port Arthur,Section 4A Economic Development Corporation'("PAEDC") to enter into a Training Grant Agreement with Lamar State College -Port Arthur ("Lamar"); and WHEREAS, the City Council deems it a major consideration for business deciding where to locate new. or expanded enterprise. is the availability of workers with the proper knowledge and skill set; and WHEREAS, Section 2(11)(B) of the Development Corporation Act of 1979 authorizes expenditures on job training by the PAEDC if the PAEDC Board finds the expenditure to be "required or suitable for the promotion of development and expansion of business enterprises and other enterprises"; and WHEREAS, by correspondence dated February 26, 2008, Lamar identified a critical need for training in the programmatic areas of welding, instrumentation technology-and process technology; and WHEREAS, Lamar noted that the Southeast Texas Workforce Development Board and the Southeast Texas Industrial Workforce Alliance have identified that 300 pipe and plate welders be necessary for plant expansion and new construction projects by summer 2008 with demand for these skilled technicians to double by spring, 2009; and z.pr19685 edc z WHEREAS, Lamaz further noted' the Texas Workforce Commission project that approximately 215 jobs for plant and system operators will be available annually in the Southeast Texas WDA from 2004 through 2014 due to retirement of incumbent"workers, and this projection did not include the industrial expansions planned in Southeast Texas; and WHEREAS, Lamar agrees to provide PAEDC records of classes offered for entry-level welding, the number of students completing each welding class and identify Port Arthur residents who have accessed the welding classes; and WHEREAS, Lamar agrees to provide PAEDC records of construction costs for the second process technology and industrial instrumentation laboratory, the number of students accessing classes on,process technology and industrial instrumentation courses of instruction and identify Port Arthur residents who have assessed such classes. WHEREAS, at the recommendation of the City Attorney and concurred in by Guy Goodson, a clause has been inserted that the Agreement is subject to the receipt of adequate sales tax revenues, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City of Port Arthur Section 4A Economic Development Corporation is herein authorized to enter into a Training Grant Agreement with Lamar State College -Port Arthur. and the President and Secretary of the City of Port Arthur Section 4A Economic Development Corporation are authorized to sign the Agreement in substantially the same form as denoted in Ezbibit "A", with a clause that has been inserted that the Agreement is subject to the receipt of adequate sales tax revenues. A'620000 - ~ Page 2 Section 3: That the effective date of the agreemerit shall be May 1, 2008. ' Section 4. That a copy of this Resolution shall be spread upon the Minutes of the City Council READ, ADOPTED AND APPROVED on this day of A.D., 2008, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: , Mayor Councilmembers DECOKES "BOBBIE" PRINCE, MAYOR , ATTEST: SHERRY HANKS ACTING, CITY SECRETARY . APPROVED: FLOYD BATISTE, EDC CEO 8620000 ~ ~ ` Page 3 APPROVED AS TO FORM: ~z~ ~~ MARK T. SOKOLOW, CITY ATTORNEY K620000 Page 4 a EXHIBIT "A" to the Resolution TRAINING GRANT AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A . ECONOMIC DEVELOPMENT CORPORATION AND LAMAR STATE COLLEGE -PORT ARTHUR Executive Summary The City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") Board has found. that the training of construction workers for plant expansion is necessary to promote business enterprises moving to or expanding in Port Arthur, particularly new and expanded petrochemical industries. The PAEDC recognizes the importance of technically trained individuals in process technology and industrial instrumentation and welders for entry-level employment. Lamar State College-Port Arthur ("Lamar") has a plan to expand its process technology and industrial instrumentation programs and to begin training welders for entry-level employment (the "Programs"). Lamar will thereby help meet the demand for construction workers due to industrial expansions in Southeast Texas as well as prepare students for employment after construction and plant expansions are complete. Lamar agrees to provide records sufficient to show successful completion of the Programs by students enrolling and shall further ..identify, as permitted by law or regulation, those Port Arthur residents :who have accessed the Programs funded under this Agreement. TRAINING GRANT AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND LAMAR STATE COLLEGE -PORT ARTHUR RECITALS ...................................................................... -1- ..................................................... AGREEMENTDATES ............................................................................................ -2- ............ PARTIES : .: .................... ......... .............................................................................................. -2- CONDITIONS PRECEDENT ........................:..................................................................... .2- (A} PERFORMANCE sY PAEDC ............................................................:............................. -2- ~) PERFORMANCE sY LAMAR ......:..................................... . .3- . ............................................ PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY ..................... .3- RECORDS /INSPECTION / PAEDC AUDTT ............ .4- ......................................................... CHANGES AND AMENDMENTS ...................................................................................... -4-, DEFAULT /TERMINATION ...........: : 4 ................ ................................................................ - - ORAL AND WRITTEN AGREEMENTS /PRIOR AGREEMENTS ..........:.................... -4- VENUE .....................................................:........... : 4 ......... ....................................................... ADDRESS OF NOTICE AND COMMUNICATIONS - - .5 .........................:............................. CAPTIONS - ....................................................................................................::..................... -5- ATTORNEY APPROVALS .....................:........:.................................................................. -5- AGREEMENT EXECUTION .....:.......:.............................:..........................:....................... .6- ii TRAINING GRANT AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND LAMAR STATE COLLEGE -PORT ARTHUR RECTl'ALS WHEREAS, a major consideration for business deciding where to locate new or expanded enterprises is the availability of workers with the proper knowledge and skill set. ' WHEREAS, Section 2(I1)(B) of the Development Corporation Act of I979 authorizes expenditures on job training by the City of Port Arthur.. Secfion 4A Economic Development Corporation ("PAEDC") if the PAEDC Boazd Ends the expenditure to be "required or suitable for the .promotion of development and expansion of business enterprises and other enterprises....". WHEREAS, by correspondence dated February 26, 2008, Lamar State College -Port Arthur ("Lamar") identified critical need fortraining in the programmatic azeas of welding, instrumentation technology and process technology (the "Programs"). WHEREAS, Lamaz noted that the Southeast Texas Work Development Board and the Southeast Texas Industrial Workforce Alliance have identified that 300 pipe and plate welders be necessary for plant expansion and new construction projects by summer of 2008 with demand for these skilled technicians to double by spring, 2009. ' WHEREAS, Lamaz further noted the Texas Workforce Commission projects that approximately 215 jobs for plant and system operators will be available annually in the Southeast Texas WDA from 2004 through 2014 due to retirement of incumbent workers, and this projection did not include the industrial expansions planned in Southeast Texas. WHEREAS, by separate Training Grant Agreement dated November 1, 2007, Lamar is providing 90 to 100 hours of wnstructidn worker training for-plant expansions through the National Center for Construction Education and Reseazch ("NCCER") Introductory Craft Skills Program through assistance from the PAEDC. WHEREAS, the PAEDC desires to set forth in this Agreement the terms and conditions for PAEDC to provide an additional training grant to Lamaz to provide the Programs including but not limited to expanded process tecluiology and industrial instrumentation laboratories and welding facilities for students to be trained to meet the employment demands in Southeast Texas. NOW THEREFORE, the parties agree as follows: AGREEMENT DATES AGREEMENT START DATE 1. This Economic Development Grant Ageement ("Ageemcnt") is entered into with an effective date , 2008, by and between PAEDC, with the approval of the Port Arthur City Council and Lamaz. AGREEMENT END DATE • 2. This Ageement expires thirty (30) days after both parties perform fully the agreements stated herein, subject to eazlier termination or extension, voluntary or involuntary, as stated herein. ' t PARTIES 3. PAEDC located at 4173-39a',Street, Port Arthur, Texas 77642, is a not for profit corporation. It is duly authorized to do business in the.State of Texas under Section 4A; Article 5190.6 V.T.C.A. (the Development Corporation Act of 1979), its Boazd of Directors has approved this Ageement, and this Ageement has been duly authorized by Resolution of the City Council of the City of Port Arthur. As so authorized and as provided by the PAEDC bylaws, the President and:Secretary of the PAEDC Boazd have the authority to execute this Ageement. • 4. The Lamaz State College -Port Arthur, P.O. Box 310, Port Arthur, Texas 77641- 0310, is an open-accessed, comprehensive public 2-yeaz wllege and a member of the Texas State University System, and its duly authorized representative for purposes of this Ageement is Dr. Janis Hutchins, Dean of Technical Programs. CONDITIONS PRECEDENT ' S. This Ageement has no legal consequences unless and until both the PAEDC Boazd and the City of Port Arthur City Council approve this Ageement in its final form. PROMISED PERFORMANCE 6. The parties agree to perform as follows. (a) PERFORMANCE BY PAEDC A $300,000 gant for the Progams including expanded facilities for instrumentation technology, process technology and welding training shall to be funded by the PAEDC as follows: (I)OnorbeforetheAugust1,2008 $100,000 (2) On or before the August 1, 2009 $100,000 (3) On or before the August 1, 2010 $100,000 8618544 PayG 2 (b) PERFORMANCE BY LAMaR (1) Lamaz shall expand and equip its laboratory for process technology and industrial instrumentation to provide additional facilities for training students_.and shall offer up to seven (7} welding classes for training welders for entry-level employment. (2) Lamaz shall recruit students into the Progams and provide or recommend such other courses of study to students in-the Progams including the NCCER or related workplace skill and technical skill progams to provide the students with skills sets necessary for employment in process technology, industrial instrumentation orwelding. ' (3) Lamar shall provide funding for all additional costs for the Progams including. faculty costs, .promotion, advertising and administrative • chazges necessary to manage, coordinate and administer the Progams. (4) Lamar shall provide PAEDC with a record of classes offered for entry- level welding, the number of students completing. each welding class, as far as it is allowed by law or regulations to do so, identify Port Arthur residents who have accessed the welding classes. (5) Lamaz shall provide PAEDC with a record of construction costs for the second process technology and industrial instrumentation laboratory, the number of students accessing classes on process technology and industrial instrumentation courses of instruction and, as faz as it is allowed bylaw or regulafioris to do so, identify Port Arthur residents who have accessed such classes. PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABII,ITY 7. Lamaz acknowledges and agees that the PAEDC funding obligations herein aze contingent upon the actual receipt of adequate sales tax revenue funds to meet the PAEDC's liabilities under this Ageement. If adequate funds are not available to make payments under this Ageement, the PAEDC shall notify Lamar in writing within a reasonable time after such fact is . reasonably detemuned bylhe PAEDC Boazd of Directors. The PAEDC, at its sole option, may then terminate this Ageement without further liability. In the event of such termination by the PAEDC, the PAEDC may, at its sole option, immediately cease all further funding, if any,. required by this Ageement and the PAEDC shall not be liable to Lamaz or to any third parties for failure to make payments to Lamaz under the terms and conditions of this Ageement. 8. "The PAEDC's sole liability/obligation shal] be to Lamar and shall be limited to the funding for the Progams detailed in this Ageement. The PAEDC shall not be liable, in contract or otherwise, for any expense, expenditure or cost incurred by or on behalf of Lamaz related to-the Progams except as set forth in this Ageement. 0618344 Pagr3 RECORDS /INSPECTION / PAEDC AUDIT 9: All records pertinent to this Agreement shall be retained by Lamar. 10. Upon written request, Lamar shall provide PAEDC with all reports reasonably necessary for PAEDC compliance with the Development Corporation Act of 1979 (Article 5190:6 V.T.C.A.) CHANGES AND AMENDMENTS 11. ., Any alterations, additions, or deletions to the terms of this Agreement shall be by amendment in writing and executed by all parties to this Agreement 'and approved by the PAEDC, the City Council and Lamaz. 12. Any alterations, additions, or deletions to the terms of this Agreement which are ' .required by changes in Federal, state or local law are automatically incorporated into this Agreement without written amendment hereto, and shall become effective on the date designated by such law or regulatioh. DEFAULT /TERMINATION 13. In the event of default of any of the obligations of the Lamar detailed herein, the PAEDC may, at its sole and exclusive option, withhold and/or disallow further PAEDC grant payments or incentives to the Lamar. . 14. In'addition to the foregoing, the PAEDC and Lamaz agree that this Agreement may be terminated at any time when both parties agree, in writing, to the terms and conditions of any such voluntary termination. ORAL AND WRITTEN AGREEMENTS /PRIOR AGREEMENTS 15. All oral and written agreements between the parties to this Ageement relating to the subject matter of.this Agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement. 16. Exhibit "A", correspondence from Lamaz dated Februazy 20 and 26, 2008, is hereby made a part of this Agreement for all purposes and constitutes promised performances by - Lamar, in accordance with this Agreement' VENUE . 17. For purposes of litigation that may accrue under this Agreement, venue shall be Jefferson County, Texas, where substantially all the performance wilt occur. rb~asaa _ pge.a ADDRESS OF NOTICE AND COMMUNICATIONS City of Port Arthur 4A Ewnomic Development Corporation 4173 39a' Street Port Arthur, Texas 77642 ATTN: Floyd Batiste, Chief Executive Officer Lamar State College -Port Arthur P.O. Box 310 Port Arthur, Texas 77b41-0310 ATTN: Dr. Janis A. Hutchins CAPTIONS 18. This Agreement has been supplied with captions to serve only as a guide to the contents. The caption does not control the meaning of any paragraph or in any way determine its interpretation or application. ATTORNEY APPROVALS APPROVED AS TO FORM: ` Guy Goodson, Legal Counsel for PAEDC VERIFIED AS CONSISTENT WITH CITY COUNSEL RESOLUTION: Resolution Number: ` Mazk T. Sokolow, City Attorney acrasaa a~y~ s AGREEMENT EXECUTION President CITY OF PORT ARTHUR SECTION4A ECONOMIC DEVELOPMENT CORPORATION SIGNED AA'D AGREED TO on the' day of , 2008. P. {~ sy: s ]• Witness Secretary Witness LAMAR STATE COLLEGE -PORT ARTHUR SIGNED AND AGREED TO on the day of > 2008• LAMAR STATE COLLEGE -PORT ARTHUR By. Sam Monroe, President Witness R6I8%4 .. ~ Page 6 EXHIBIT "A" to the. Agreement 04/18/2000 10:01 4099046000 LAMAR STATE Lamar Staee CaAege -Port Arthur A Mttnber of ~e Tezu State tlatrrniry Syetrm Febtuary26,2008 Mr. Floyd Batiste Port Arthur Economic Development Corpotatlaa P. O. Hox 3934 Port Ardtur, Texas 77642 Dew IvIr. Satiate, PAGE 05/05 ; I am pleased tb pMVide you with data in support of our request for financial support from the Port Arthur Economic Development Corporation. The request from the College was for support of three pragrammaGc areas: Welding; InatntmentaGon TexJmology, and Proeaas Technology. According to the Southeast Texas Workforce Aevolopment Board and the Southeast Texas ladustrial Workforce Alllancet approximately 300 pipo and plate welders will be needed for the expansion and new conshvetion projects by eammer 2008. Thia figure is expeeied to more than double by spring 2009. 1n 2004 the Texas Workforce Commission estimated that approximately 215 jabs for plant and system operaWts wiR be available entiually in the Southeast Texas WDA firortt 2004-2014 due to the retirement of incumbent workers. This projection did tint take ~e industrial expansion into consideration, A review of news articles and public ennauncemmts indicates that 700-800 pamenent jobs will. result from the expansions. end new wnsauction, Appioxiaiately $tl% of the pamsaeat worker's in a plant are operators or instrumentation teohniciens. Therefore, 300r10D new operaror sad instrumentation positions maybe available by 2011 in addition to the annual openinga ctettitedbyre6r~ement and normal attrition. The money we have requested would provide inahuctora in welding elesaea that could, under optimum circumstances, produce 175 entry level welders The {natrumentafian/process teobaology instructor and lab.would allow us to tmrol130 additional students each fall semesmr, Please cantaet me if you have additions] gnealions. Sincerely, Gary D. Stretcher, Ed.D. Vice Presid®t for Academic At't'ains , GDS/tbs Offtce'f tar V[u Prctidrnt Jen Acadamecq qafrr GarySttetehet(¢}lamarpx.edn P.O. Soo 310 • Pere Atrfiat. 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