HomeMy WebLinkAboutPR 23037: PAEDC-LSCPA CDL A & B WORKFORCE TRAINING AGREEMENT (
PORT*ARTHUR
ECONOMIC DI F:I.OPNF:NT(OIIPORATIO\
INTEROFFICE MEMORANDUAM
Date: March 7, 2023
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: Terry Stokes, CEO Port Arthur EDC
RE: PR 23037—PAEDC-LSCPA CDL A & B Workforce Training Agreement
Introduction:
The intent of this Agenda Item is to seek the City Council of the City of Port Arthur approval
regarding the PAEDC-LSCPA CDL A& B workforce training agreement.
Background:
The CDL Program has been an intricate part of the PAEDC's workforce initiative and a vital
demand for our community.
This program has had several people to successfully graduate,become certified and employed
making a competitive wage in order to sustain in society.
Budget Impact:
The budget impact of this Workforce Initiative is $120,000.
Budget Impact:
The CDL A & B Program will help Port Arthur citizens gain a certification in a high demand work
field in order to seek employment in the workforce. The budget impact is$120,000.
Recommendation:
It is recommended that the City Council of the City of Port Arthur authorize the Port Arthur EDC
to move forward with approving the funds for the CDL A& B Program utilizing workforce
training funds not to exceed$120,000.
P.R.No.23037
3/7/2023 RML
RESOLUTION NO.
A RESOLUTION APPROVING A PRE-EMPLOYMENT
WORKFORCE TRAINING AGREEMENT BETWEEN THE
PORT ARTHUR ECONOMIC DEVELOPMENT
CORPORATION AND LAMAR STATE COLLEGE PORT
ARTHUR FOR THE TRAINING OF PORT ARTHUR
RESIDENTS AS CLASS A&B COMMERCIAL DRIVERS IN
AN AMOUNT NOT TO EXCEED $120,000; FUNDS
AVAILABLE IN EDC ACCT.#: 120-80-625-5475-00-00-000
WHEREAS, Lamar State College Port Arthur ("LSCPA") has created a Commercial
Driver's License Class A & B Training Program in order to train drivers for high demand
occupations; and
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation
("PAEDC") Board of Directors has found that there is a high demand for licensed commercial
drivers in the area and recognizes the importance of trained commercial drivers for entry-level
employment; and
WHEREAS, House Bill 1967 amended the Texas Local Government Code by adding
§501.163 which authorizes expenditures for pre-employment training by PAEDC; and
WHEREAS, LSCPA has developed a Commercial Driver Certification Program for
Commercial Driver's License Class A and Class B; and
WHEREAS, at their March 6, 2023 Regular Board Meeting, the PAEDC Board of
Directors approved a Pre-Employment Training Agreement with LSCPA attached hereto as
Exhibit "A" to assist in funding the tuition for Port Arthur residents in an amount not to exceed
$120,000.
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 Council approves PAEDC entering into a Pre-Employment
Training Agreement with Lamar State College Port Arthur for the training of Port Arthur residents
as commercial drivers in an amount not to exceed $120,000.
Section 3. 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.,2023,
at a Meeting of the City Council of the City of Port Arthur, Texas,by the following vote:
AYES:
Mayor
Councilmembers
•
NOES:
Thurman Bartie,Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
#1470247 Page 2
Te ry Sto s, AE C CEO
APPROVED AS TO FORM:
/1
Charlie Zech, PAEDC Attorney
APPROVED AS TO FORM:
Valecia R. Tizeno, City Attorney
APPROVED AS TO AVAILABILITY OF FUNDS:
kC-A-A `1., D c-A.-' A._0
Kandy Daniel, Interim Finance Director
#1470247 Page 3
Exhibit
"A"
TRAINING AGREEMENT
BETWEEN
THE PORT ARTHUR ECONOMIC DEVELOPMENT
CORPORATION
AND
LAMAR STATE COLLEGE PORT ARTHUR
RECITALS
WHEREAS,The Port Arthur Economic Development Corporation("PAEDC")Board has
found that the training of commercial drivers is a high demand occupation in the Port Arthur area
and throughout the state. The PAEDC recognizes the importance of increasing the supply of
trained commercial drivers for entry-level employment.
WHEREAS, Lamar State College Port Arthur ("LSCPA") has developed a Commercial
Driver Certification Program for Commercial Driver's License Class A and Class B (the
"Program").
WHEREAS, LSCPA will identify Port Arthur-based applicants who need financial
assistance in order to enroll in the Program as set forth in the Income Chart, attached as Exhibit
"A". After LSCPA determines the student's program eligibility, they will be qualified to receive
financial assistance from PAEDC for the Certification Program.
WHEREAS, PAEDC will allocate a total of$840.00 per eligible student. PAEDC will
pay for one hundred percent(100%)of the upfront cost for the Theory Component exclusively. If
the student passes the Theory Component, then the student will be eligible to enroll in either the
Class A program or Class B program at no upfront cost to LSCPA until the PAEDC receives
confirmation that the student obtains his/her CDL Certification. The amount paid out to LSCPA
after the student obtains documented certification will either be:
• Class B
o $2240
• Class A
o $3360
NOW THEREFORE, IN CONSIDERATION of the recitals set forth above which are
incorporated in this Agreement as fully set forth below and in consideration of the additional and
mutual promises,covenants, conditions and agreements set forth in this Agreement and other good
and valuable consideration, the sufficiency of which is hereby acknowledged by each party,
LSCPA and the PAEDC agree as follows:
AGREEMENT DATES
AGREEMENT START DATE
1. This Agreement ("Agreement") is entered into with an effective date of March 1,
2023.
AGREEMENT END DATE
2. This Agreement expires on January 31, 2024.
PARTIES
3. PAEDC located at 501 Procter, Port Arthur, Texas 77640, 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 Board of Directors has approved
this Agreement, and this Agreement 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 CEO of
the PAEDC has the authority to execute this Agreement.
4. Lamar State College Port Arthur, 1500 Procter Street, Port Arthur, Texas 77640.
CONDITIONS PRECEDENT
5. This Agreement has no legal consequences unless and until both the Board of
Directors of the PAEDC and the City of Port Arthur City Council approve this Agreement in its
final form.
PROMISED PERFORMANCE
6. The parties agree to perform as follows:
(a) PERFORMANCE BY LSCPA
(1) LSCPA will provide the following services:
a. Identify students who are eligible to receive financial assistance per the
Income Chart attached as Exhibit "A".
b. Provide the eligible student training as set forth in Exhibit "B" so that
the eligible student can receive their CDL Certification.
c. Provide PAEDC with reports on the students when one hundred percent
(100%) of the Theory Component is completed and passed, and once
the students receive their CDL Certification so that LSCPA can be
compensated.
#I614476 Page 2
(b) PERFORMANCE BY PAEDC
(1) PAEDC shall provide LSCPA 100%of tuition per student for participation
in the Theory Component up front at a cost not to exceed $840.00 per
student upon the eligible student's enrollment.
(2) PAEDC shall provide LSCPA the remaining tuition upon completion of
the Certification Program by the eligible students.
(3) PAEDC shall allocate a total of$120,000.00 to the Certification Program.
PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY
7. The PAEDC or the City, at its sole option, may terminate this Agreement for non-
performance or failure to comply with the terms of this contract. 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 Agreement and the PAEDC shall not be liable to LSCPA or to any third parties
for failure to make payments to LSCPA under the terms and conditions of this Agreement.
8. The PAEDC's sole liability/obligation shall be to LSCPA and shall be limited to
the funding for the Programs detailed in this Agreement. The PAEDC shall not be liable, in
contract or otherwise, for any expense, expenditure or cost incurred by or on behalf of LSCPA
related to the Programs except as set forth in this Agreement.
RECORDS/INSPECTION/PAEDC AUDIT
9. All records pertinent to this Agreement shall be retained by LSCPA.
10. Upon written request, LSCPA 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.) and Chapter 504, Local Government Code.
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.
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 regulation.
DEFAULT/TERMINATION
#1614476
Page 3
13. In the event of default of any of the obligations of LSCPA detailed herein, the
PAEDC may, at its sole and exclusive option, withhold and/or disallow further PAEDC payments
or incentives to LSCPA.
14. In addition to the foregoing, the PAEDC and LSCPA agree that this Agreement
may be terminated in writing at any time for any reason.
ORAL AND WRITTEN AGREEMENTS / PRIOR AGREEMENTS
15. All oral and written agreements between the parties to this Agreement 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.
VENUE
16. The parties will use the dispute resolution process provided for in Chapter 2260
of the Texas Government Code to attempt to resolve any claim for breach of this agreement.
For purposes of litigation that may accrue under this Agreement, venue shall be Jefferson County,
Texas, where substantially all the performance will occur.
ADDRESS OF NOTICE AND COMMUNICATIONS
The Port Arthur Economic Development Corporation
501 Procter
Port Arthur, Texas 77640
ATTN: Chief Executive Officer
Lamar State College Port Arthur
1500 Procter Street
Port Arthur, Texas 77640
ATTN:
CAPTIONS
17. 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.
INDEMNIFICATION
18. PAEDC and LSCPA acknowledge they are political subdivisions of the State of Texas
and are subject to, and comply with the applicable provisions of the Texas Tort Claims Act, as set
out in the Texas Civil Practice and Remedies Code Act Section 101.001 et seq., and the remedies
authorized therein regarding claims or causes of action that may be asserted by third parties of
#1614476 Page 4
accident,injury,or death. Eachto this Agreement must seek itsown legal r e a representative and
party gg p
bear its own costs in any litigation that may arise from the performance of this Agreement.
ASSIGNMENT
19. Under the terms and conditions hereunder, neither party shall have the right to
transfer or assign this Agreement without the written permission of the other Party. Prior to
any Assignment, the Parties must consent in writing to any such assignee.
ATTORNEY APPROVALS
APPROVED AS TO FORM:
Legal Counsel for PAEDC
VERIFIED AS CONSISTENT
WITH CITY COUNSEL RESOLUTION: Resolution Number:
City Attorney
#1614476
Page 5
AGREEMENT EXECUTION
THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION
SIGNED AND AGREED TO on the day of , 2023.
By: By:
President Secretary
Witness Witness
#1614476 Page 6
LAMAR STATE COLLEGE PORT ARTHUR
SIGNED AND AGREED TO on the day of , 2023.
By:
Witness
#1614476
Page 7