HomeMy WebLinkAboutPR 15200: DR. JANIS HUTCHINS (LOCAL BUSINESS ENTERPRISE PROGRAM)interoffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark T. Sokolow, City Attorney /V~'^~ i~-~
Date: April 15, 2009
Subject: P. R. No. 15200; Council Meeting April 21, 2009
Attached is P. R. No. 15200 as it pertains to retaining
Dr. Hutchins for the Local Business Enterprise Program.
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Attachment
cc: Dr. Janis Hutchins
Joe Arnold, BASF
Manager, Community & Government Affairs
z.pi15200 memo
P. R. No. 15200
04/15/09 gt
RESOLIITION N0.
A RESOLIITION AS IT PERTAINS TO RETAINING
DR. HIITCHINS FOR THE LOCAL BIISINESS ENTERPRISE
PROGRAM
WHEREAS, has the City has "in lieu of tax" agreements with
BASF Corporation, BASF/FINA, TOTAL PETROCHEMICALS, CHEVRON
PHILLIPS, FLINT HILLS, INEOUS PHENOL, PREMCOR, and TOTAL PAR, which
encompasses a local business enterprise program; and
WHEREAS, as delineated in Exhibit "A", Dr. Janis Hutchins was
requested to act as an independent source to certify local business
enterprises at the City's cost; and
WHEREAS, Dr. Hutchins has agreed to act in this capacity as
delineated in Exhibit "B"; and
WHEREAS, Dr. Hutchins will also serve on the Grievance Board
at a cost to be shared between the City and the various industrial
companies.
NOW THEREFORE, BE IT RESOLVED SY THS CITY COIINCIL OF TH8 CITY
OF PORT ARTHD'R, TEXAS:
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2. That the City Council approves the usage of
Dr. Hutchins as an independent source to certify local business
enterprises at an hourly rate as delineated in Exhibit "B" for a
z.pr15200
period not to exceed two (2) years without further authorization
from the City Council.
Section 3. That the City Council approves the usage of
Dr. Hutchins on the Grievance Committee at a cost to be shared
between the City and the industrial community for a period not to
exceed two (2) years without further authorization from the City
Council.
Section 4. That Dr. Hutchins will sign the Resolution
agreeing to the terms thereof.
Section 5. 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., 2009, at a Meeting of the City Council of
the City of Port Arthur, Texas, by the following vote: AYES:
Mayor
Councilmembers
NOES:
MAYOR
ATTEST:
CITY SECRETARY
~.pnszao
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
APPROVED AS TO AVAILABILITY OF FIINDS:
DIRECTOR OF FINANCE
AGREED TO:
DR. JANIS HUTCHINS
DATE:
z.pr15200
EXHIBIT ~A~'
DELORIS "BOBBIE" PRINCE, MAYOR
JACK CHATM.AN, lR., MAYOR PRO TEM
COUNCIL MEMBERS:
ELIZABETH "LIZ" SEGLER
MORRIS ALBRIGHT, III
bLARTIN FLOOD
JOHN BEARD, JR.
ROBERT E. WILLIAMSON
D. K.AY WISE
THO~tiAS J. HENDERSON
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March 25, 2009
Dr. Janis Hutchins
Dean of Technical Programs
Lamar State College - Port Arthur
P. O. Box 310
Port Arthur, TX 77641
Janis.Hutchins@lamarpa.edu
Dear Dr. Hutchins:
bLARK T. SOKOLOW
CITY" ATTORNEY"
On March 23, 2009, Mr. Arnold visited with this office
and with the City Manager. He is a member of a committee
that represents BP.SF, BASF FINA, TOTAL, CHEVRON PHILLIPS,
and FLINT HILLS. We discussed the Local Business
Enterorise Program that is contained in their Industrial
District Agreements. I am emailing you a copy of the
Industrial District Pgreements. You can download which
agreement that you wish to review.
For example, in the BP.SF Industrial District
Agreement, the program is delineated in Section 12 of the
Agreement. On page 17 of the Agreement, the City has
agreed to use an independent source, for example, Lamar
State College of Port Arthur as to certify local business
enterprises. The program also has a grievance board
wherein a member of Lamar State College will act as a
facilitator and Chairman thereof. The cost of the
facilitator 'v7i11 be paid equally by the City and the
companies. I have talked to Mr. Arnold and he is agreeable
for you to be acting in this capgcity. The City Council
also has a consensus that they are agreeable with you
acting in this capacity.
Please review the Local Business Enterprise program
and indicate whether you can act in the capacity as to
certifying locail_ business enterprises, and whether you can
z.hatch:ns lcr P.O. BOX 1089•PORT ARTHUR, TERAS 77641-1089.409/983-8126"FAX 409/983-8124
also serve on the grievance board. Please indicate the
compensation that you are requesting.
The City has Industrial District Agreements with the
following companies. I have denoted the agreements wherein
the companies have agreed to participate in the LBE
program. The LBE program was developed late last year and
is in multi-year agreements that were approved in December
2008. As previously discussed with you, the other
agreements also have provisions as it relates to hiring
programs.
INDUSTRIAL DISTRICT AGREEMENTS
AIR PRODUCTS - The term of the agreement is from 2006-2010.
The In Lieu of Tax payments are 75°s of the amount of taxes
the company would have paid if the project had beer.
constructed in the City and had an abatement similar to the
one approved by the County. The agreement was approved by
Resolution No. OS-270 dated 8/30/05. This agreement does
not have a LBE program. Nevertheless, local hiring
provisions are discussed in the agreement which includes
but is not limited to Sections lb, 10, 16, 18 and 19.
ATOFINA/BASF/SABINA The term of the agreement is 2003-2012.
It involves the Butadiene Extraction Unit, Olefins
Conversion Unit and Alkylate Unit. The In Lieu of Tax
payments are up to $315,000/Year. The agreement was
approved by Resolution No. 02-25 dated 1/22/02. This
agreement superseded the Atofina/Shell/BASF agreement that
was approved by Resolution No. 01-312. This agreement does
not have a LBE program. Nevertheless, local hiring
provisions are discussed in the agreement which includes
but is not limited to Sections 9 and 15.
BASF CORPORATION, BASF/FINA and TOTAL PETROCHEMICALS The
term of this agreement is from 2009 to 2013. It involves
the Ethylene and Propylene Unit-Olefins Complex. The
agreement was approved by Resolution No. 08-457. The
Industrial District payments will be $5,000,000 in January
2009, 75a of taxes less $1,237,000 in October 2009, 75°s of
taxes less $1,240,000 in 2010, 75°s of taxes less $1,180,000
in 2011, 75°a of taxes less $1,120,000 in 2012, and 75°s of
taxes less $1,060,000 in 2013. There is a 10% cap on
fluctuations in value for the tax years 2010 to 2013. LBE
PROGRAM IS IN SECTION 12 OF THIS BASF, BASF/FINA AND TOTAL
AGREEMENT.
z. hu tchins_ltr 2
BASF CORPORATION The term of this agreement is from 2009-
2013. It involves the Old Sandoz- Fertilizer Piant. The
Industrial District payments are seventy-five percent (75%)
of the amount of taxes that the Company would have paid to
the City with respect to the property (land, improvements,
units, equipment, inventory and all other property located
thereon) as if it had been located within the corporate
limits of the City with credit for a paymtent of $500,000 on
January 1, 2009 as follows:
January 1, 2009
October 15, 2009
October 15, 2010
October 15, 2011
October 15, 2012
October 15, 2013
$500,000
750 less $123,750
75°s less $124,OOG
750 less $118,000
75°s less $112,000
75°a less $106,OD0
There is a loo cap on fluctuations in value for the tax
years 2010 to 2013. The "in lieu of tax" agreement was
approved by Resolution AIO. 08-468. LBE PROGRAM IS IN
SECTION 12 OF THIS BASF AGREEMENT
CHEVRON PHILLIPS CHEMICAL COMPANY L.P. The term of the
agreement is from 2009 to 2013. The In Lieu of Tax
payments are 75 of taxes. This agreement was approved b_y
Resolution No. OS-469. There is a 10 °s cap on fluctuations
in value for the tax years 2010 to 2013. LBE PROGRAM IS IN
SECTION 12 OF THIS CHEVRON PHILLIPS AGREEMENT.
CHEVRON U.S.A. The term of this agreement is for 2009. The
In Lieu of Tax paymtents are 75 % of taxes. This agreement
expires on December 31, 2009 and will be one of the
agreements that will be negotiated at the end of this year
and the City will review their hiring practices. This
agreement was approved by Ordinance No. 08-126. This
agreement does not have a LBE program. Nevertheless, local
hiring provisions are discussed in the agreement which
includes but is not limited to Sections 2, 12 and 13.
COLONIAL PIPELINE The term of triis agreement is 2007-2011.
The In Lieu of Tax payments are $25,000/ Year. The
agreement was approved by Resolution No. 06-363 dated
9/12/06.
z. t.~u tchins_ltr 3
EXXONMOBIL OZL CORPORATION The term of this agreement is
from 2007 to 2011. The Industrial District Agreement
payments are $62,500/Year). The agreement was approved by
Resolution No. 06-349 dated 9/12/05.
FLINT HILLS RESOURCES The term of this agreement is from
2009 to 2013. The agreement was approved by Resolution No.
08-495 for existing chemical plant. The "in lieu of tax"
payments are as are follows:
January 01, 2009 $2,300,000
October 15, 2009 75% of taxes less $559,250
October 15, 2010 75e of taxes less $570,400
October 15, 2011 75a of taxes less $542,800
October 15, 2012 750 of taxes less $515,200
October 15, 2013 75°s of taxes less $487,600
LBE PROGRAM IS IN SECTION 12 OF THIS FLINT HILLS RESOURCES
AGREEMENT
GOLDEN PASS LNG The term of this agreement is 2006-2015.
It involves-the new LNG Terminal. The In Lieu of Tax
payment are up to $2,300,000 per year. The agreement was
approved by P.esolution No. OS-259 dated 8/15/05. This
agreement does not have a LBE program. Nevertheless, local
hiring provisions are discussed in Sections 1, 10, 15, 18
and 19.
INEOS PHENOL. The term of this agreement is from 2069 to
2013 and it was approved by Resolution No. 08-473. The In
Lieu of Tax Payments are 750 of taxes. There is a 10 o cap
in fluctuations as to value for the tax years 2010 to 2013.
LBE PROGRAM IS IN SECTION 12 OF THE INEOS PHENOL AGREEMENT.
MOBIL PIPELINE The term of this agreement is from 2007 to
2011. The Industrial District Agreement paymtents are
$62,500/Year. The agreement was approved by Resolution No.
06-348 dated 9/12/06. It was assigned to SUNOCO per
Resolution No. 08-458.
MOTIVA ENTERPRISES The term of this agreement is 2005-2019.
The Industrial District Agreement payments are up to
$7,700,000 per year. It involves the Refinery and the
expansion, as approved by Resolution No. OS-271 dated
9/13/05. The "In Lieu of Tax" Payments are as follows:
October 15, 2005 $3,700,000
October 15, 2006 $3,7G0,000
October 15, 2007 $3,700,000
October 15, 2008 $3,700,000
z. hutchins ltr 4
October 15, 2009 $4,700,000
October 15, 2010 $4,700,000
October 15, 2011 $4,700,000
October 15, 2012 $7,700,000
October 15, 2013 $7,700,000
October 15, 2014 $7,700,000 + lesser of ~ CPI or 120
October 15, 2015 Same as in 2014
October 15, 2016 Same as in 2014
October 15, 2017 Same as in 2014
October 15, 2018 Same as in 2014
October 15, 2019 Same as in 2014
MOTIVA has an option to extend the agreement until 2025
wherein MOTIVA will continue to pay the amounts they paid
in 2019 plus ~ of the CPS or 12o whichever is less. This
agreement does not have a LBE program. Nevertheless, local
hiring provisions are discussed in the agreement which
includes but is not limited to Sections 9 and 14.
ONYX The term of this agreement is from 2004 to 2010. This
company was formerly Chemical Waste. The Industrial
District payments are $135,000/Year. The agreement was
approved by Resolution No. 03-257 dated 9/16/03. This
agreement does no*_ have a LBE program. Nevertheless, local
hiring provisions are discussed in the agreement which
includes but is not limited to Sections 9, 14 and 16.
OXBOW CALCINING (formerly Great Lakes Carbon) This
agreement was approved by Resolution No. OS-471 for 2009.
The Industrial District Agreement payment will be 75°s of
taxes. This agreement expires on December 31, 2009 and will
be one of the agreements that will be negotiated at the end
of this year and the City will review their hiring
practices. This agreement does not have a LBE program.
Nevertheless, local hiring provisions are discussed in the
agreement which includes Sections 2, 12, and 13.
PORT ARTHUR STEAM ENERGY LP The term of this agreement is
from 2006 to 2010. The In Lieu of Tax payments are 80% of
taxes that the Company would have paid to the City with
respect to the project as if the Project had been
constructed within the City's corporate limits, and if the
City had entered into a similar tax abatemen*_ agreement as
Port Arthur Steam entered into with Jefferson County. This
agreement was approved by Resolution No. OS-181 dated
6/7/05. This agreement does not have a LBE program.
z.hutchins ltr 5
Nevertheless, local hiring provisions are discussed in the
agreement which includes Section 1, 10, 16, i8 and 19.
PRAXAZR The term of this agreement is for 2009 and was
approved by Resolution No. 08-472. The Company will pay
the City an "in lieu of tax" payment of 750 of taxes. This
agreement expires on December 31, 2009 and will be one of
the agreements that will be negotiated at the end of this
year and the City will review their hiring practices. This
agreement does not have a LBE program. Nevertheless, local
hiring provisions are discussed in the agreement which
includes but is not limited to Sections 2, 12 and 13.
PREMCOR REFINING GROUP The term of the agreement is 1999-
2010 and involves the Hydrotreater. The In Lieu of Tax
payments are 750 of taxes that the Companies would have
paid to the City with respect to the project as if the
project had been constructed within the City's corporate
limits, and if the City had entered into a similar tax
abatement agreement as Clark entered into with Jefferson
County. The agreement was approved by Resolution No. 03-297
dated 10/14/03. This agreement does rot have a LBE
program. Nevertheless, local hiring provisions are
discussed in the agreement which includes but is not
limited to Sections 10, 16 and 18.
PREMCOR REFINING GROUP INC.'S AND PORT ARTHUR COKER COMPANY
L.P.'s Port Arthur Refinery Feed Rate Expansion Project and
Decoker Expansion The term of this agreement is from 2005
to 2014. The In Lieu of Tax payments are 75% of taxes that
the Companies would have paid to the City with respect to
the project as if the project had been constructed within
the City's corporate limits, and if the City had entered
into a similar tax abatement agreement as Premcor entered
into with Jefferson County. This agreement was approved by
Resolution No. OS-164 dated 5/24;05. This agreement does
not have a LBE program. Nevertheless, local hiring
provisions are discussed in Sections 1, 10, 16, 18 and 19.
PREMCOR REFINING GROUP INC.'S Low Sulfur Diesel
Hydrotreater Revamp Project (Tier II Diesel Project) The
term of this agreement is 2005-2009. The In Lieu of Tax
payments are 750 of taxes that the Companies would have
paid to the City with respect to the project as if the
project had been constructed within the City's corporate
limits, and if the City had entered into a similar tax
abatement agreement as ?remcor entered into with Jefferson
County. The agreement was approved by Resolution No. OS-
z.hutchins_1-r 6
165 dated 5/24/05. This agreement does not have a LBE
program. Nevertheless, local hiring provisions are
discussed in Sections 1, 10, 16, 18 and 19.
PREMCOR REFINING GROUP. The term of this agreement is
from 2009 to 2013, which was approved by Resolution No. 08-
494. The subject of this agreement is for the refinery and
the Heavy Oil Upgrade Project. The In Lieu of Tax paymtents
are the following:
January 1, 2009 $ 6,000,000
October 15, 2009 65% of taxes less $1,485,000
October 15, 2010 65% of taxes less $1,488,000
October 15, 2011 650 of taxes less $1,416,000
October 15, 2012 650 of taxes less $1,344,000
October 15, 2013 650 of taxes less $1,272,000
There is a 10 o cap on fluctuations in value for the tax
years 2010 to 2013. This PREMCOR agreement provides that
when the Hydrotreater agreement as referenced in Resolution
No. 03-297 expires in 2010, then PREMCOR will make payments
of 65 % of taxes until 2013. The PREMCOR agreement
provides that when the TIER II agreement as referenced ir.
Resolution No. 05-165 expires in 2009, the Company will
make payments at 65 0 of taxes. PREMCOR will also pay 65°s
of the taxes of Trans-Global as referenced in Resolution
No. 01-03 and Port Arthur Co'.~er Company and P.ir Products as
referenced in Resolution No. 99-174. Premcor will also pay
65°s of the taxes of the Air Product's facility as
referenced in Resolution No. OS-22 after 2010.
LBE PROGRAM IS IN SECTION 2 OF THIS PREMCOR AGREEMENT.
PREMCOR RELATED ASSIGNMENTS--Clark/Transglobal Assignment,
as approved by Resolution 01-93 dated 4/3/01. This is an
assignment agreement and PREMCOR (CLARK) remains
responsible for the In Lieu of Tax payments. See Premcor
agreement as approves by Pesolution No. 08-494.
PREMCOR RELATED ASSIGNMENTS--Clark Assignments To Port
Arthur Coker & To Air Products., as approved by Resolution
No. 99-174 dated 8/10/99. This is an assignment agreement
and PREMCDR (CLARK)remairs responsible for the In Lieu of
Tax payments. See Premcor agreement as approved by
Resolution No. OS-494.
TOTAL PETROCHEMICALS AND TOTAL PAR. This "In lieu of tax"
Agreement is for the existing refinery and was approved per
z. hutchins ltr 7
Resolution No. 08-466. The term of the agreement is from
2009 to 2013. The companies agreed to pay the following:
January O1, 2009 $3,600,000
October 15, 2009 7~% of taxes less $891,000
October i5, 2010 75% of taxes less $892,800
October 15, 2011 75°s of taxes less $849,600
October 15, 2012 750 of taxes less $806,400
October 15, 2013 750 of taxes less $763,200
There is a 10 a cap on fluctuations in value for the tax
years 2010 to 2013.
LBE PROGRAM ZS IN SECTION 12 OF THIS TOTAL PETROCHEMICALS
AND TOTAL AGREEMENT.
TOTAL PETROCHEMICALS AND TOTAL PAR, LLC. "Zn lieu of tax"
Agreement was approved per Resolution OS-474 for a term
from 2009 to 2021. The companies agreed to pay the
following:
$0 in 2009
$0 in 2010
$0 in 2011
$500,000 in 2012
$930,000 in 2013
$1,450,000 in 2014
$1,950,000 in 2015
$2,500,000 in 2016
$3,100,000 in 2017
$3,650,000 in 2018
$4,175,000 in 2019
$4,250,000 in 2020
$4,250,000 in 2021
LBE PROGRAM IS IN SECTION 12 OF THIS TOTAL PETROCHEMICALS
AND TOTAL PAR AGREEMENT.
If you have any questions, please contact this office.
Sincerely,
/ ~""~ d~~
Mark T. Sokolow
City Attorney
z.hutchins ltr 8
MTS:ts
Attachments (Email copies o° Industrial District Agreements)
cc: Mayor (with LBE program)
City Council (with LBE program)
City Manager
Assistant City Manager and Director of Finance
Joe Arnold, BASF
Manager, Community & Government Affairs
joe.arnold@basf.com
z.hutchins_lir 9
SAMPLE LOCAL BUSINESS ENTERPRISE
PROGRAM AS DELINEATED IN CHEVRON
AGREEMENT
Company's safety standards and security standards and
rules. Ali such inspections will be made with ene or more
representatives of the Company present and in accordance
with the Company's safety standards. The Company may
require any person conductin5 such an inspection to execute
a confidentiality agreeme r.t before entering the Company's
land.
Section 11. Port Arth r Industrial Group. 1'ne
Company shall, subject to the Company's annual management
approval, participate in the Fort Arthur Industrial Group
during the life of this agreement in order to improve
employment opportnnit ies fcr Fort Arthur residents. The
company further agrees to encourage its contractors and
subcontractors to establish and fund their ow
apprenticeship, internship, education and/or mentoring
programs and projects for the training of Port As thur
residents for regular full-time jobs in the Port Arthur
area.
Section 12. Port Arthuz Locar - ^- --
Program.
(a) The City recognizes that proactive steps must be
taken to help insure that Port Arthur local business
enterprises thrive and continue to benefit our community
economically and socially. The goals of the Port Arthur
13
c-i3a C~evmn F.`,illips ]Oa5-lo ll. 12.5
Local Business Enterprise Pzogram are to create a program
that prcmotes spendinc by companies that Y,ave industrial
districC agreements with qualified Pert i,rthur local
business enterprises (each an "LEE" as such term is defined
below) as well as to increase the diversi by of Port Arthur
businesses with which such companies procure goods and
services so that- the pool of such businesses is
representative of the business community at large.
(b) As used in this Sectiar 12:
(i) "LBE" means a Fort Arthur business
(includinc, but not limited to, a Port Arthur minority
and/or women owned basin=_ss enterprise ("MwE3"), a Port
Arthur historically underutilized business ("Y.UB"), and a
Port Arthur disadvantaged business ence rprise ("LBE")) Chat
has been certified as ar, LEE under the procedures and
criteria specified in Section 12(dY, but such term shall
not include any Port Arthur business that has ceased to be
so certified.
(ii) "Commercially Useful Function" means the
perfcrnance of the following functions by a business: (A)
being directly responsible for previdirg the materials,
equipment, svpalies or services as recv fired by the contract
split ration, (al perfcrming wort Chat is normal for its
business services, and (C) carrying out its obligations by
__iEa Oie. mn shill iFS z0of-mil. 12.s _a
actually pert orming, managing, or supervising the 'work
involved. A business is not performing a "Commercially
Osef ui Function" when its role is limited to that of an
extra participant in a transaction, contract, or prafit
through which finds are passed in order Le obtain the
appearance of LBE participation, e.g., a sham transaction.
(iii) "good faith of `. ores" means commercially
reasonable efforts to further qualified LBE participation
er otherwi_e satisfy the requirements contained in this
Section 12 which, by their scope, ira er,s ity, and
appropriateness to the ob;ective, can reasonably be
expected to fulfill the program requirements.
(c) The Port Arthur Local Eusiness Enterprise Program
shall include, but is not limited to, good faith efforts
with respect to utilization cf cualif led LBE's as follows:
liI arranging solicitations, times for
presentation of bids, quantic ies. specifications, and
delivery schedules in ways that facilitate LBE
participation, except where it is not commercially
reasonable to do so without material added expense or
substantial inconvenience, or where there would be a
material sacrifice in operational or construction.
etf iciency;
is
c.idn CEevcon Ph iLt ipc ]009-1Oll. 1].5
(ii) carrying out inf ormatior, and commrtln ication
programs on contracting procedures and specific contract
opportunities (e. g., facilitating the inclusion of
qualified LBE's on the Company's bicker list);
(iii) helpinc support:
• ar. educational program to inform
qualified LBE's of opportunities and the
Comaa<<y's requirements; and
• publication of a local business
directory; and
(ivl paying at least the prevailinc wage, as
reasonably set by the City, in acccrdance with Chapter
2258, TeXas Governme r,t Code, V.T.C.A., after the City has
provided reasonable advance notice to the Company of the
meeting at which su d~: prevailing wage is reasonably set and
afforded the Company an opportunity to be heard by the City
Council on such matter at such meeting.
(d) Through appropriately promulgated procedures, the
city, using an independe r,t source (Lamar state College of
Port Arthur or other independent source reasonably selected
by the Cityi, shall certify as an LBE any business that
meets all of the following criteria:
• The business is financially and ooerationaliy
independent from, and operates at arm's length
to, any other business.
l6
x._ Ch¢vrov Phillips 2009.'0:). 13.5
• The business has been ir: operation for at least
six months within the City.
• The business is a for-profit enterprise.
• The business perforns a Commercially Useful
Function.
• The business maintains its principal pLac=_ of
business at a fixed, established commercial
address (and not a temoora_ry cr movable office,
a post office box, cr telephone answering
serrice or a temporary short-tern lease) that
is within the boundaries of the City and that
provides all of the services for which LBE
certification is sought, other than work
required to be performed at a job site.
Suppliers are required to maintain their
principal place of business within the
boundaries of the City.
• The business can b=_ expected to satisfy
qualifications specified by the Company,
includieg, but not limited to, financial
viability, an adequate safety record, employees
that can pass backcround and drug testirc
checks, and the business's ability to comply
with applicable local, state and federal
regulations and licensing requirements.
:.ny business so certified as an LBE shall not be treated as
an LBE for purposes of this Agreement until the City has
notified the Company that such business has been so
certified as an L3E. The City shall notify the Company of
any business that has ceased to be certified as an LBE.
(e) The Company will notify (in writing or by e-ma i'_)
the following of jab coenings:
• City of Port Arthur
• The Port Arthur News
• Texas Work Force Commission
i~
_.ia• cte~:o~ vn.u ~pc icc s-zci~. ~a.s
• Lamar State College of PorC Arthur
• Port Arthur ISD
• Sabine Pass ISD
• Digital kork Force
• Any of the follow'_ng who have provided
written notice to the City statinc tY,at
it wants to receive notification of such
job ope rings and identifying its mailing
and e-mail addresses, and CY:e City has
provided the Company' with a cony of such
written notification:
Port Arthur lahcr unions
- Associations representing histericaliy
underutilized segments of the population
in Pcr[ Arthur
The Company will also request that iCs
co.-,t ractors and subcontractors consider rotifyinc
the above entities of their respective job
openings.
(f) The Company will make good faith of °orts:
• ro request that its major prime contractors
obtain qualified LB'c bids on. contracts
subject [o this Agreement;
• to arrange subcontracts by size and type of
work tc improve the opportunities for L&E's
to participate, including reasonably
dividing projects into smaller parts, except
where it is not commercially reasonable to
do so withcut material added expense or
substantial inconvenience, or where there
would be a material sacrifice in operational
or construction efficiency;
• to hire qualified citizens of Port Arthur
fcr regular, full-time jobs; and
x.itla C^ev, p~ Pl:aip5 ]009~1Oll_ 11.5 19
• to request its major prime contractors tc
consider soliciting through the local office
o£ the Texas workforce Ccmmission and
general media to hire qualified Port Arthur
reside its for jobs ant saki ng such other
measures as delineated in this Agreement.
(fj (il The Company and the City agree to set
up a three-member grievance beard Ithe "Grievance Beard")
made un of one member appointed by the City, one member
appointed by the Company, and ore member who will be ~he
head of the Grievance Board and will be from Lamar date
College of Port Arthur or be another person mutually
acceptable to the City and the Company. The head of the
Grievance Beard will have the tie breaking vote if needed.
The head of the Grievance Board w;11 serve as facilitator
and will receive a reasonable stipend for his or her time,
to be paid equally by the City and by the coapany.
(ii) A written grievance can be made to the
Grievance board by a Port Arthur business who claims that
it soughs to be employee by the Company and was r.ot given a
due opportunity under standards set forth in the terms of
[his Acreame r:t.
(iii) If a written grievance is made, the Comna r.y
s:;a11 make a written response within fourteen (14) calendar
days thereof. The Grievance Board will meet to review the
itla C~c, mn Anil lips zoo 9-roll. 12.5 z9
grievance and the Company's response within thirty (30)
calendar days of the da[e of the grievance.
(iv) If an LBE or o[her business, or its
designee, files two or more unfounded ccmplaints of
business discrimination, the LBE or business, and/ or its
designee, will be in violation o: the City's LB°_ prcgram
and the Grievance Board can zecemmer,d to the parties that
the LBE or business be remcved from the list of certified
LBE's.
(v) The Grievance 9oard will take such action
as necessary or advisable to preserve the conficentiaiity
of grievances and the responses, deliberations and
proceedings with respect thereto. The Grievance Board will
make written reports to t'ne Comparry anti to the City as to
their adviscry findines, and the Company and the City shall
therea`_ter meet to discuss, if necessary, what, if any,
corrective action should be taken.
(a) (i1 During the tax years 2009 through 2013, the
Company agrees to submit on an semi-annual basis a report
providinc the information specified in Section 121gi (ii),
(iii), and (ivl with respect to the hiring of qualified
?or Arthur residents by the Company and its major prime
contractors, and the retention of LBE's by the Company and
;aa cne~~ron ani uips zoos-xoi~. ix.s eO
by iCS major prime contractors, as the same relate to the
property described in Attachment ^A".
(ii) With respect to the hiring of cualified
Port Art Y.ur residents by the Company, such report shall set
forth the following information:
• Total number o` new hires by zip code
• Total number of new hires
• Total number of applicants disqualified by
reason of not meeting the Company's minimum
hiring standards (for examp'_e, disqualified
by reasor. of drug screening, background
check, etc.)
• Total number of applicants extended an offer
• Total number of applicants ccmpletinc the
interview process
• Totai num~er of applicants invited to
interview
• Totai number of applicants with sa tisfactcr/
scores on in-house assessments
Total nuriier of applicants invited to take
in-house assessments
• Total number of applicants meeting minimum
qualifications for the specific positions
(educati or,„experience)
• Tcta1 nunber of applications received for
announced positions
(iii) S9ith respect to the hiring of qualified
Port Arthur residents by the Company's major prime
z~
i.iDa C]ev:on P1:i 11 ips 1049-101]. 10.5
contractors, such report shall set forth the following
information:
• Number of new hires by zip code
• 'total num'ner of new hires
• Total number of ap?licants extended an offer
Such other information listed in Section
12 (c)(ii) above as is reasonably available
from the major prime contractors
(iv) With respect to G,e hiring of LE E's, such
report shall set forth the following information:
• Number of LBE's that are included on the
Company's a.-:d on its major prime
c o.~tractor's bidders lists
• Number of LBE's that were inv'_ted to bid on
providing services and goods for the Comaanv
and Pot its major prime contractor
• Tctal dollar amour.C of contracts awarded to
LBE's
• Llumber of contracts awarded to LBE's
(v) The information prcv ided by the Company to
the City in any such report shall be and remain
confidential.
(h) The City and tF,e Company agree, in conjunction
with other companies that have entered into industrial
district agreements with the CiCy', to set up an advisory
board tc implement the programs goals and objectives for
.e LBE program. The advisory board will meet as needed
zz
iaa cm.~ro~ en: u:w may-zo u. :z.s
and will be facilitated by an outside scurce (Lamar State
College of Port i+rthur or other mutually agreeable party)-
The facilitator will be paid a stipend which shall be
prorated ecually among the parties to the industrial
district acreements.
Section 13. ComPliarce Honito r. The City rese r/es
the right to hire or contract for a monitor to inspect the
Company's records and hiring practices in accordance with
this Agreement so as tc verify whether the Company has
complied and will continue [o comply with this Agreement.
A11 inspections will be mad=_ at mutually agreeable times
and will or.1y be co :ducted in such manner as to not
unreasonably interfere with the Ccmpany's szfety and
security sta ,dares and rules. all irspections will be made
with oae cr more representatives of the Company present,
and any information provided by the Company to any such
monitor shall be and remain confidential; provided,
however, that such monitor may make reports to the City
provided Chat ary data reported is provided in the
aggregate and does ro[ identify ar:y individual or include
any information which would tend to make the identity of
any individual ascertainabl=, unless and [o the extent the
individual in question cos opts to such disclosure _.:
writing in a form aporoved by the City and the Company.
~~
x.itla Chevron PEillips 20G 9-301:. 13.5
The Company may require any such monitor tc execute a
confidentiality agreement before allowing such monitor
access to the site or making any records or other
informatics available to such monitor.
Section 14. Undocumented Forkers. The Company
certifies that they will not knowingly employ ar,
"undocumented worker" which means an individual who, at the
time of employment, is not (i) lawfully admitted fer
permanent residence to the United States, (ii) a temporary
resident lawfully permitted to be employed in the United
States, er (iii) authorized under law to be employed i..
that manner in the United States. The Company acknowledges
that it has reviewed Chapter 2269, Texas Governme r,t Code,
and hereby affirmatively agrees to repay t'ne amount of any
incentive with incerest at the rate of ten percent (?0%1
p>_r annum, rot later than the 120`" day after the date the
City notifies the Company of a violation. The Company
acknow4 edges the City may bring a civil action to recover
any amounts owed under [his Chapter, and further
acknowledges that the City may recover court costs and
reasonable attorney's fees incurred in bringing an actior.
under Section 2259.101, Texas Government Code. Upon
learning that asy "undocumert ed wo rater" is improperly
retained by one of its contractors or subccr,tractors at its
z+
z.ida [Ee:[on PLiliips 3GG9 -101. 13.5
EXHIBIT ~B"
Dr. Janis A. Hutchins 650 Ridgewood Dr. 409-984-6236 once
Port Neches, Tx 77651 409-718-8111 mobne
j an is. h utch i n s@lam a rpa. edu
Apri13, 2009
~~~~OV~~
Mr. Stephen Fitzgibbons
City Manager
City of Port Arthur
444 Fourth Street
Port Arthur, TX 77641-1089
APR 0 6 2009
~.EGAL DEPARTMEPIT
Deaz Mr. Fitzgibbons:
City Attorney Sokolow and Mr. Joe Arnold visited with me on March 23 concerning the
initiation of a Local Business Enterprise Program. At their request, I have reviewed the certification
criteria outlined in the industrial district agreements containing the LBE program.
I am willing to serve in the capacity of certifying certain Port Arthur businesses as local
business enterprises and to serve as a facilitator and member of a grievance boazd to address claims
from local businesses concerning the application of the criteria. My fee of $75 per hour will apply to
each hour of billable work plus reasonable expenses, which include the current state mileage rate for
automobile travel. From my discussions with Mr. Sokolow, it is not possible to accurately estimate the
number of businesses to be certified. Therefore, at this time I cannot estimate the total number of
billable hours involved with this project.
The initial step in this process should be to organize the advisory board referred to in the
industrial district agreements for the purpose of implementing the LBE Program goals and objectives.
It is imperative that we first develop a document to be used by local businesses to apply for LBE status
and that we communicate the application process to all interested parties. The second phase of the
project will entail my certifying individual companies as LBE's based on the completed application
and supporting documentation. The project's third phase will be to convene the grievance boazd if
needed to address any complaints.
Upon your response that this process meets the approval of council members and company
representatives, Iwill develop a consulting work plan for the implementation of these key project
phases.
Sincerely,
Jani .Hutchins, Ph.D., CPA
/Copy: Mazk Sokolow