HomeMy WebLinkAboutPR 14996: EDC/ON-THE-JOB TRAINING PROGRAMinteroffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark Sokolow, City Attorney ~,,,,,1 ~,~,~,,.,~
Date: November 26, 2008
Subject: P. R. No. 14996 -.Council Meeting of December 2, 2008
Mr. Batiste forwarded this program as to On-the-Job Training,
which is estimated to cost up to $75,000 in this fiscal year. The
proposed resolution is approving the concept of the program with
proposed changes therein as recommended by the City Attorney's
Office as delineated in Section 3.
MTS:gt
Attachment
cc: Guy Goodson
GERMER GERTZ
Floyd Batiste
CEO of EDC
z.pr14996 memo
P.R. No. 14996
11/26/08 fb/mts
RESOLUTION NO.
A RESOLUTION AUTHORIZING $75,000 FROM THE CITY
OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION TRAINING BUDGET FOR
AN "ON-THE-JOB TRAINING" PROGRAM; SAID
PROGRAM TO PROVIDE. REIMBURSEMENT TO
EMPLOYERS FOR EXTRAORDINARY COSTS
ASSOCIATED WITH SKILLS UPGRADE. TRAINING FOR
FULL-TIME EMPLOYMENT OF PORT ARTHUR
RESIDENTS.
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation (the
"PAEDC") Board of Directors desire toprovide on-the-job training for Port Arthur residents lacking
the needed skills to become employed; and
WHEREAS, the Port Arthur City Council has previously approved the following incentive
training agreements:
Resolution 06-191
Resolution 07-023
Resolution 07-027
Resolution 07-286
Resolution 07-517
and
City Katrina Brownfield $11.250
Lamaz/City NCCER $20,000
Lamaz/City NCCER $48,000
Lamar/City NCCER $52,000
Lamar/City NCCER $10.000
WHEREAS, on-the job training will provide unique opportunities for Port Arthur residents
who already possess some job-related skills and the knowledge to "learn as they earn". By on-the-
job training, Port Arthur residents not only acquire new skills and knowledge, but may receive higher
wages and benefits. Employers qualified for the on-the job training pioject shall be reimbursed for
i
Port Arthur resident's wages not to exceed $1,600.00 per trainee during the training period, while
serving as afull-time employee; and
J
WHEREAS, the on-the-job training program must be related to one of the following:
` 1) The introduction of new technologies;
2) The introduction of new production or service procedures; and/or
3) Upgrading to new jobs that require additional skills; and
WHEREAS, priority in the on-the-job training program will be given to
1) Businesses located in the City of Port Arthur,
2) Businesses in qualified targeted industries;
3) Businesses whose proposals represent a significant upgrade in employee skills;
4) Businesses whose proposals represent a significant layoff avoidance strategy; and
5) Businesses who commit to providing trainees with wage gains, promotions and/or
cazeer paths to self-sufficiency, following successful completion of training.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and' correct.
Section 2. That the City Council authorizes $75.000 ofthe PAEDC training budget foran
on-the job training program to provide reimbursement to employers to compensate for the
employer's extraordinary costs associated with skills upgrade training for Port Arthur residents under
the on-the-job Training program.
Section 3. That the program and agreement that are attached hereto as Exhibit "A" is
approved in substantially the same form as attached with the following additional terms that. will
need to be inserted:
• That the maximum that a company may obtain under the program shall not exceed
$16,000 without obtaining the additional approval of the City Council
• That if a company already has an incentive agreement, the company cannot enter into
a job training agreement without obtaining the approval of the City Council
z:pr14996
Page 2
• That as to the primary jobs, the program shall focus on manufacturing jobs
• That the contracts shall delineate a start date and a completion date with the total
funding not to exceed $75.000 in fiscal year 2008-2009
• That the contract shall delineate in writing for the company to (1) create new jobs
that pay wages that are at least equal to the prevailing wage for the applicable
occupation in the local labor mazket area or (2), increase its payroll to pay wages that
are at least equal to the prevailing wage for the applicable occupation in the local
labor market azea
• That the EDC shall insert the other material clauses in their applicable standazd
incentive agreement as are approved by the City Attorney and by the EDC Attorney
that protects the interests of the EDC and so that the On-the-Job Training contracts
are also substantially consistent with the other EDC contracts
Section 4. That a copy of the caption of this Resolution 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
NOES:
apr14996 - Page 3
ATTEST:
Terri Hanks, Acting City Secretary
APPROVED:
Floyd Batiste, PAEDC CEO
APPROVED AS TO FORM:
~~~-~,~
Mark T. Sokolov, City Attorney
Deloris "Bobbie" Prince, Mayor
APPROVED AS TO THE AVAILABILITY OF FUNDS:-
' -e C `. ~ .
Rebecca Underhill, Director of Finance
z.Pr14996 Page 4
EXHIBIT "A"
ON-THE-JOB TRAINING PROGRAM 2008-2009
The On-The-Job Training (OJT) Program is funded by the Port Arthur Economic
Development Corporation Board of Directors and administered by the
administrative staff of the Board. The purpose of the program is to provide
reimbursements to employers to compensate for the employer's extraordinary
costs associated with skills upgrade training for full-time employees of the
company..
PROGRAM INFORMATION
OJT is defined as training provided by an employer to a paid Port Arthur
Resident that:
• Provides knowledge or skills essential to the full and adequate pertormance of
the job; and
• Is limited to 25% of the wage rate not to exceed $1,600 per trainee
OJT is indicated when specific employer needs can be bettermet through
individualized training and when individual employers demonstrate the need to
hire new employees and will commit to hire and train Port Arthur residents who
may not meet their normal hiring requirements. Persons already employed are
not eligible for OJT services.
APPLICATION PROCESS
Eligible Applicants:
Applications for the 2008-2009 PAEDC On-The-Job Training. Program are open
to Port Arthur companies meeting the guidelines listed below.
All applications are subject to a pre-award review by PAEDC CEO/Staff.
Business Applying for Funding:
• Must exhibit a desire to provide OJT to Port Arthur residents with continued
long-term employment with wages, benefits, and working conditiohs equal to that
of regular employees doing similar work for a similar length of time.
• Must agree to certify the skills and abilities obtained by trainees who
successfully complete the OJT program by issuing an industry recognized
certificate.
• Is not eligible to execute a contract until. 60 days after the commencement of
operations of a relocating establishment, if the relocation resulted in the loss of
employment for any employee at the original location.
• Must be a business in qualified, targeted industries providing demand
occupations.
• Preferences will be given to a business that provides for the creation or
retention of primary jobs and that are found by the Board to be required or
suitable for the development, retention, or expansion of manufacturing and
industrial facilities, research and development facilities,. transportation
PAEDC-OJT-202-08
facilities (including but not limited to airports, mass commuting facilities,
and parking facilities), sewage or solid waste disposal facilities, recycling
facilities, air or water pollution control facilities, facilities for the furnishing
of water to the general public, distribution centers, small warehouse
facilities capable of serving as decentralized storage and distribution
centers, primary job training facilities for use by institutions of higher
education, and regional or national corporate headquarters.
In addition, "Primary job" means a job that is: (A) available at a company
for which a majority of the products or services of that company are
ultimately exported to regional, statewide, national, or international
markets infusing new dollars into the local economy; and, -(B) included in
one of the following sectors of the North American Industry Classification
System (NAILS):
Sector # Description
111 Crop Production
112 Animal Production
113 Forestry and Logging
11411 Commercial Fishing
115 Support Activities for Agriculture and Forestry
211-213 Mining
221 Utilities
311-339 Manufacturing
42 Wholesale Trade
48-49 Transportation and Warehousing
51 (excluding 51213 Information (excluding movie
theaters and drive-in theaters)
523-525 Securities, Commodity Contracts, and Other Financial
Investments and Related Activities; Insurance Carriers
and Related Activities; Funds, Trusts, and Other
Financial Vehicles
5413, 5415, Scientific Research and Development Services
5416, 5417
And 5419
551 Management of Companies and Enterprises
922140 Correctionallnstitutions
. Must provide On-The-Job training related to one of the following:
o The introduction of new technologies
o The introduction of new production or service procedures
o Upgrading to new jobs that require additional skills
o Workplace Literacy
o Other appropriate purposes as identified by the Economic Development Board
PAEDC-OJT-202-08
• Must demonstrate financial viability and must be current on all state tax
obligations
• Must have the personnel to provide adequate supervision and training
• Must hire trainees prior to training, as regular full-time employees provided with
same benefits as regular employees not in On-the-Job training.
• Must, on satisfactory completion of training, retain trainees in the occupations
for which they have been trained, without additional subsidy or financial
assistance from Port Arthur Economic Development Corporation.
• May not displace, including a partial displacement, currently employed workers
or impose on their promotional opportunities.
Priority Will Be Given To:
• Businesses in City of Port Arthur
• Businesses in qualified targeted industries
• Businesses whose proposals represent a significant upgrade in employee skills
• Businesses whose proposals represent a significant layoff avoidance strategy
• Businesses who commit to providing trainees with wage gains, promotions,
,and/or career paths to self-sufficiency, following successful completion of
training,9
Application Instructions:
Complete and submit the OJT Program Application. Any information or
documentation that cannot be supplied in the provided space should be identified
by the relevant question number and attached to the back of the application form.
Submit one original and three (3) copies of the signed completed application to:
Port Arthur Economic Development On-The-Job Training Program
Attention: Brenda Vaughn -
4173 39th Street.
Port Arthur, TX 77642
CONTRACTING AND TRAINING
A business approved for funds enters into a contract with Port Arthur Economic
Development Corporation, which commits the business to completion of the OJT
project as proposed in their application. Port Arthur Economic Development
Board contracts directly with an employer who provides skills training through an
OJT program using their own employees.
On-The-Job Training Services:
• Shall be provided for full-time employees. Training shall be.provided for a
minimum of 40 hours per week.
Contract Requirements:
• Employer must provide a list of specific skills that must be mastered, to
accomplish specific tasks required by one or more occupations, and a schedule
of the training hours dedicated to each task;
PAEDC-OJT-202-08
• Employer must provide a list of competencies that. Port Arthur Residents are
expected to achieve during OJT
• Employer must provide a method of measuring Port Arthur Residents'
competencies
• Employer must provide the number of trainees they will hire and train.
• Employer must provide the base wage and identify benefits provided to OJT
Port Arthur Residents. The wage and benefits must be equal to those provided
to regular employees who have worked a similar length of time and are doing the
same type of work.
• Insurance provisions
1. Commercial General Liability: $1,000,000 combined single limit per occurrence
for bodily injury, personal injury and' property damage. If Commercial Liability
Insurance or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project location or the general
aggregate limit shall be twice the required occurrence limit; and
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage; and
3. Workers' Compensation and Employers .Liability: Workers' Compensation
limits as required by the Texas Labor Code and Employers Liability limits of
$1,000,000 per accident.
• Non-Discrimination assurance
• ADA compliance
• Drug-Free workplace assurance
Reimbursable On-The~lob Training Expenses:
• Up to 25% of a trainee's hourly base wage for hours spent in On-the-Job
Training for a period not to exceed $1,600 per trainee and not to exceed ten
trainees per year.
Non-reimbursable Costs for OJT:
• Wage reimbursements will not be based upon overtime, shift differential,
premium pay and other non-regular wages, nor will the payments be based on
such periods of time as illness, holidays, plant downtime, or other events in which
no training occurs
Reimbursements:
Payment for businesses receiving OJT reimbursements will be until the final
report is submitted and all performance criteria specified in the contract have
been achieved.
• Reimbursement requests with required support documentation (evidence that
trainees' wages have been paid by employer) will be submitted at the end of
training period, to ensure timely reimbursement
• Business will certify that all information provided for the purpose of requesting.
reimbursements and reporting training activity is accurate and true.
• Project Completion:
PAEDC-OJT-202-08
• Employer must assure Port Arthur Economic Development that, at the end of
the OJT training period, any new hire Port Arthur Residents will have skills
leading to increased wages and or responsibilities.
• Because of the high demand and limited funding available, all applications will
be evaluated to leverage other State, Federal, and private funds with OJT funds.
• All training projects shall be performance-based with specific measurable
performance outcomes stated on the Training Information/Outline.
PAEDC-OJT-202-08
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PAEDC-OJT-200-08-.
This contract is entered into between the Port Arthur Economic Development Corporation and the Employer;
This contract must be completed and approved by the CEO of the Port
Arthur Economic Development Corporation prior to the hiring of the above listed Port Arthur Employee/Trainee.
The. Employer agrees to hire the Port Arthur Employee/Trainee/s identified in this contract as a full-time regular
employee; and to provide training in the knowledge or skills essential to the full and adequate performance of the job
being trained for, as determined in the Training Information/Outline. In consideration for the extraordinary costs of
providing the training and additional supervision related to the training the Employer will be reimbursed at 25% of the
hourly rate not to excess $1,600 per trainee.
The following terms and conditions will apply to this contract:
Port Arthur Employee/Trainee -This contract is to provide for the employment and/or training of the Port Arthur
Employee/Trainee identified in this contract: The Employer certifies that the Port Arthur Employee/Trainee was not
employed with the Employer prior to the start of the contract. Individuals funded under this contract will be provided
benefits and working conditions similar to those of other employees working similar length of time and doing the same
-type of work. Former employees; relatives and in-laws of the employer are ineligible for enrollment under this contract.
Assurance ofNon-Displacement -The Employer assures that:
• No employee has been dislocated from a job due to a relocation of the business. in the case of an employee
dislocation, at least 120 days will have elapsed since the-date which the establishment commenced operations at the
new location. Currently employed workers will not be displaced by any trainee (including partial displacement
such as a reduction in hours ofnon-overtime work, wages or employment benefits).
• In accordance with the type of work conducted by the employer; employees aze retained as appropriate for
substantially equivalentjobs, and length of employment is appropriate. -
• The employer has not terminated the employment of a regular employee or otherwise reduced it's workforce with
the intention of filling the vacancy by hiring a trainee whose wages aze subsidized; or the job is created in a
promotional line that will infringe in any way an the promotional opportunities of currently employed individuals.
Health & Safety Standards -Employer will ensure that Health and Safety Standazds established under Federal and
State law, protecting the working conditions of employees, is equally applicable to the working conditions of the Port
Arthur Employee/Trainee.
Drug Free Workplace -Employer will ensure that adrug-free workplace is provided as required by the Drug-Free
Workplace.Act of 1998.
Worker's Compensation Insurance -Employer will provide the employee-trainee with Texas Worker's Compensation
Insurance or comparable insurance. If the insurance policy expires within the training period of Port Arthur
Employee/Trainee, the Employer should inform the Port Arthur Economic Development Bcazd of its renewal prior to the
expiration date. Failure to repoNupdate information may nullify this contract.
orkers Compensation (or comparable) Insurance Carrier: Local Agent (Adjuster) Agency:
olicy Number: Expiration Date: Phone Number:
Equal Opportunity -Employer must provide employment without regards to race, creed, color, national origin,
disability, sex, age, political affiliation or beliefs, as prescribed by title VII of the Civil Rights Act of 1964 and the Age
Discrimination Act of 1967. -
Use of Funds -Funds provided under this contract will not directly or indirectly be used for political purposes; in
support of any religious or anti-religious activity; or to promote, assist, or deter union organization,
PAEDC-OJT-200-08
Collective Bargaining Agreements -Employer assures that no activities, work or training under the agreement are in
conflict with the terms and conditions of an existing collective bargaining agreement.
Fees -Neither Party to the contract may charge a Port Arthur Employee/Trainee a fee for the referral br placement of the
Port Arthur Employee/Trainee under this contract.
Hiring of Undocumented Workers -The employer has not and will not knowingly employ an undocumented worker
.(defined as an individual who, at the time of employment, is not lawfully admitted for permanent residence in the United
States, or is not authorized under law to be employed in that manner in the United States) as detailed in Texas
Government Code, §2264.001(4).° If; afrer receiving a public subsidy, the entity is convicted of a violation under 8
United States Code § 1324a(f) (relating to the unlawful employment of undocumented workers) the entity shall repay the
amount of the public subsidy with interest, at the rate provided under the contract issued pursuant to this offer or
application, within 120 days of receiving the notice of violation.
Time and Attendance Records -Employer must' maintain original time/attendance records for each Port Arthur
Employee/Trainee for a period of at least 1 year or a longer period if any litigation or audit requires such.
Progress Reviews/Monitoring -the Port Arthur Economic Development Corporation representative will visit the
Employer work site during the training period to review and/or discuss employee progress.
Port Arthur Employee/Trainee Termination - In the event of problems with the Port Arthur Employee/Trainee, which
may lead to termination. the employer will initiate prompt communication with the Port Arthur Economic Development
Corporation representative. Termination of the Port Arthur Employee/Trainee prior to forty (40) hours of employment
(for any cause) will result in no reimbursement to Employer.
Training Reimbursements -This contract is written on a cost reimbursement basis. Emplo;~er reimbursement is up to
25% of the Port Arthur Employee/Trainee's wages not to exceed 51,600 during the agreed upon training period.
Reimbursement may not occur for paid holidays, overtime, sick pay, vacation pay, or period of leave. OJT/Subsidized
Employment may not exceed 8 hours a day or more than 40 hours per week.
Billing Procedures - Payment to Employer will be made within thirty (30) calendar days upon receipt of employee
payroll report that includes the following information:
• Full name, address, social security number, employee number (if applicable), job title;
• Hourly wage paid during the training period;
• Total regular hours worked during the training period: and
• An evaluafiori of the trainee's progress according to training objectives.
B;~ signing this agreement, I attest that 1 am an authorized official representing my respective party and will abide by
the terms of this agreement.
Port Arthur Economic Development Corporation
CEO
Employer Representative
Authorized Signature
Signature
r
Tvped/Printed Name
Title of Program Agent
Signature
Tvped/Printed Name
Title ojAuthorized
PAEDC-OJT-200-08
Port Arthur EDC OJT Training
Customer
Employer Name
Port Arthur Resident Name
$12.00
Training Occupation Hourly Wage
Resident Soual Security Number
0.25 400
Reimbursement Rate Total Training Hours
Month /Year
I certify the hours reported above are correct
Employer Signature Date Port Adhur Resident Signature Date
Total hours reflected from above
$1,200.00
Total Reimbursement Training Cost
BR&E SpecialisC
$1,600.00
Reimbursement Ndt to Exceed
$4,800.00
$12.00
Pay Rate per Hour
133.3333333
0.25
Reimbursement Rate
Total Employer Training Cost
Remaining Training Hours
Date PAEDC CEO Approval Signature
12
)C-OJT-203-09
512
Port Arthur EDC OJT Training
Customer
6144
1536
PAEDC-0JT-20306
EXAMPLE
NO OF TRAINING WEEKS 10
TRAINING HOURS 10 X 40 400
WAGE PER HOUR $16.00
TOTAL TRAINING HOURS $6,400.00
..fXF.~' ^! YF il'~ ] tun} ~ b w
EMPLOYER COST ~ $6,400.00
EDC EMPLOYER
25.00% $1
600
00
REIMBURSEMENT ,
.
EMPLOYER REAL
COST $4,800.00
~.
Y
EMPLOYER COST $6,400.OO
EDC EMPLOYER
25.00% $1
600.00
REIMBURSEMENT ,
TWS EMPLOYER
25.00% $1
600
00
REIMBURSEMENT ,
.
,EMPLOYER REAL
COST $3,200.00