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HomeMy WebLinkAboutPR 24786 APPROVING A RETURNING SHIP BUILDING TO SETX PROGRAM 41111 P01fl*ARThUR INTEROFFICE MEMORANDUM Date: February 18, 2026 To: The Honorable Mayor and City Council Through: Ron Burton, CPM, City Manager From: Krystle Muller, Interim Chief Executive Officer RE: PR 24786 I A resolution approving a Returning Ship Building to Southeast Texas Program — Workforce Training Agreement between the Port Arthur Economic Development Corporation and Lamar State College Port Arthur in an amount of $380,593.06; Funds available in EDC Acct. #: 120-80-625-5475-00-00-000 The intent of this Agenda Item is to seek the Port Arthur City Council's authorization of the Port Arthur Economic Development Corporation ("PAEDC")to enter into a Returning Ship Building to Southeast Texas Program — Workforce Training Agreement with Lamar State College Port Arthur("LSCPA") Background: A major shipbuilding company is locating one of its facilities in Port Arthur, bringing the shipbuilding industry back to our community. LSCPA has created a welding training program in anticipation of the high demand of welders that will be needed for this operation. The PAEDC recognizes the importance of training Port Arthur residents in preparation to fill the jobs created by this project. The PAEDC Board of Directors has approved Training Agreement with LSCPA for the training of 75 Port Arthur residents. Budgetary Impact: The budgetary impact of this item is $380,593.06. Funds available in the EDC Account No. 120- 80-625-5475-00-00-000 (Job Training). Recommendation: It is recommended the Port Arthur City Council approve the Port Arthur Economic Development Corporation to enter into a Returning Ship Building to Southeast Texas Program — Workforce Training Agreement with Lamar State College Port Arthur("LSCPA") P.R. No. 24786 2/13/2026 KVM RESOLUTION NO. A RESOLUTION APPROVING A RETURNING SHIP BUILDING TO SOUTHEAST TEXAS PROGRAM — WORKFORCE TRAINING AGREEMENT BETWEEN THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION AND LAMAR STATE COLLEGE PORT ARTHUR IN AN AMOUNT OF $380,593.06; FUNDS AVAILABLE IN EDC ACCT. #: 120-80-625-5475-00-00-000 WHEREAS, a major Canadian shipbuilding company has acquired property in Port Arthur, TX and intends to expand its operations of shipbuilding at that Port Arthur location, creating a substantial economic impact including the creation of over six hundred (600)jobs; and WHEREAS, Lamar State College Port Arthur("LSCPA")has created a welding training program to accommodate the anticipated high demand for welders that will be a result of the return of the ship building industry in Port Arthur; and WHEREAS, the Port Arthur Economic Development Corporation ("PAEDC") recognizes the importance of preparing our local workforce to position Port Arthur residents as a first choice to fill the craft positions that will become available; 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, at their February 2, 2026 Regular Board Meeting, the PAEDC Board of Directors approved a Workforce Training Agreement with LSCPA in an amount of$380,593.06 for the training of Port Arthur residents through the welding program; and WHEREAS, LSCPA has agreed to train seventy-five (75) Port Arthur residents at no cost to the resident, over a three-year period, as detailed in the Workforce Training Agreement attached hereto as Exhibit "A". 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 Returning Shipbuilding to Southeast Texas Program — Workforce Training Agreement with Lamar State College Port Arthur in an amount of$380,593.06 in substantially the same form as attached hereto as Exhibit «A„ 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., 2026, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers • NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, City Secretary #I470247 Page 2 APPROVED: JAN Krystle Villarreal Muller,PA b-C Interim CEO APPROVE S TO FORM: . Goodso ,PAEDC torn y APPROVED AS TO FORM: Roxann Pais Cotroneo,City Attorney APPROVED AS TO AVAILABILITY OF FUNDS: 4.1d __ L nd oswell, Finance Director N2528333 Page 3 EXHIBIT "A" RETURNING SHIP BUILDING TO SOUTHEAST TEXAS PROGRAM BETWEEN LAMAR STATE COLLEGE PORT ARTHUR AND PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION This Agreement for Returning Ship Building to Southeast Texas Program (the "Agreement") is between Lamar State College Port Arthur (the "College") and the Port Arthur Economic Development Corporation (the "Corporation"). The College and the Corporation may each be hereinafter referred to as a "Party" and together the "Parties" to this Agreement. This Agreement supersedes any and all previous letters of intent or agreements describing the hereinafter specified Scope of Work for the Returning Ship Building to Southeast Texas Program (the "Program"). RECITALS: A. Each Party hereto is authorized to contract with any one or more other public entities to perform any governmental service, activity or undertaking which each public entity would be authorized under the law to perform; provided, that any such contract be authorized by the governing body of each Party and sets forth the purposes, powers, rights, objectives and responsibilities of the Parties. B. In order to fund its collaboration with the College,the Corporation herein commits to providing funds of$380,593.06 for budgeted costs as hereinafter described. C. College has advised Corporation of its Notice of State Grant Award from the Texas Higher Education Coordinating Board as set forth in Exhibit "A" to this Agreement (the "Grant Award"). As stated in the Grant Award, the Grant has been awarded in the requested amount of $425,050 and for a grant term of December 1, 2025, to December 1, 2027, with grant disbursements in accordance with fifty (50%) percent upon execution of the Grant start date; twenty-five (25%) percent upon the receipt and acceptance of a June, 2026 interim report and twenty-five (25%) percent upon receipt and acceptance of June, 2027 interim report. Further obligations of College to the Texas Higher Education Coordinating Board are contained in the Grant Award and incorporated into this Agreement as if fully set forth herein. D. Corporation has committed its funds for the Program and for the payment for the acquisition of equipment as hereinafter set forth and as set forth in Corporation Resolution No. NOW, THEREFORE, AND IN CONSIDERATION OF THE RECITALS SET FORTH ABOVE,which are fully incorporated into this Agreement and as set forth in full below and in consideration of the mutual obligations undertaking commitments and performance of the College and the Corporation as hereinafter set forth, College and Corporation mutually agree as follows: Article I Program Description The Returning ship Building to Southeast Program to include the creation of confined space and "out of position" welding scenarios used to train welding students for the rigors of ship building industry (the "Welding Program") is more fully set forth in the Letter of Intent ("LOP') received from the College to apply for funding attached hereto as Exhibit "B" and made a part hereof for all purposes. Article II Welding Program Equipment College requests that the Corporation provide funding for the budget summary outlined in Exhibit "C" for the acquisition of the 350 Amp CC/CV Electric Welders, the Large Voltage Sensing Feeders,the Confined Space Simulator,the Miller Spectrum 875 20 ft handheld welding device and associated welding equipment (collectively, the "Equipment") at the budgeted cost of $380,593.06. Article III Port Arthur Resident Training College will offer the Welding Program in a boot camp format running from 8 a.m. to 5 p.m., Monday through Friday for 12 weeks which class will be priced at$6,000/student. College agrees to train 75 Port Arthur residents over three years following the effective date of a Memorandum of Understanding/Performance Agreement at no cost the residents nor to the Corporation. The training and placement of Equipment by College for the Program will be on the College main campus in the Morris Albright Industrial Training Facility. If College determines that the Program is to be located in another facility on the College main campus or otherwise,any such location or relocation of the Program shall occur only with the prior written consent of the Corporation. Article IV Program Development Time Schedule The College agrees to provide Corporation a detailed Program timetable. Article V Program Curriculum Development/Time Schedule College agrees to provide Corporation prior to the initial training of any Port Arthur resident required to be trained in accordance with Article III the complete program curriculum and a detailed program timetable such that Corporation may monitor programmatic activities in accordance with reporting as set forth in this Agreement. Article VI Program Reporting/Cost Allocation/Financial Reimbursement #2518283 Page 2 Corporation shall provide its funds as set forth in Exhibit "C" upon the submission by College of invoices/pay requests for the Equipment to be acquired. Any cost overruns in the Program must be approved mutually by College and Corporation, and such cost overruns shall be determined based upon the satisfaction of costs with any cost overruns presented by College to Corporation to be considered by Corporation with appropriate funding. Corporation acknowledges it has available and unencumbered funds to fund the acquisition of the Equipment as presented. Any amendment in Equipment to be acquired from that set forth in the budget must be approved in advance by Corporation. Article VII Program Secondary Credentials College acknowledges that the Program will be face to face and standalone and may lead to multiple industry recognized post-secondary credentials including: NCCER CORE, NCCER Welding Level I and confined space certification. Article VIII Equipment Ownership and Operation College acknowledges that the Equipment acquired shall remain and shall be titled into the Corporation which may file as its solely determines financing statements to confirm the ownership of the Equipment by the Corporation. Corporation may,but is not required,to transfer ownership of the Equipment to the College following conclusion of the primary term of the Program as set forth in the Grant Award or any extensions thereof. Any such conveyance by Corporation to the College of the Equipment would be by a bill of sale without warranties, expressed or implied, by Corporation the College. College further acknowledges that the Equipment acquired by Corporation is provided to the College without any warranties, express or implied, as to the usability of the Equipment for the intended purposes of the Program. Further, College acknowledges and assumes all responsibility for examination of Equipment on delivery and for all maintenance and operation of the Equipment during the term of this Agreement without any cost or expense payable by the Corporation. Article IX College Responsibilities to Corporation Upon receipt of funding from the Corporation and the Grant, College agrees to fund the Program and provide for the Program development, Program reporting, financial responsibility, Program Equipment and procurement. College assumes full responsibility in accordance with Articles III and IV of this Agreement to train 75 Port Arthur residents through the Program. This requirement for the training of 75 Port Arthur residents is for this Program only and is not to include Port Arthur residents in any other training program of the College whether funded by the Corporation or otherwise. College further agrees to provide a database with all Port Arthur residents provided training in this Program, said database to include name, Port Arthur address #2518283 Page 3 and other contact information by which College acknowledges that Corporation may confirm the residents' participation in the Program. Upon completion of the Program, College agrees to provide to Corporation any and all certifications or licenses provided to the trained Port Arthur residents arising from their participation in the Program. Article X Corporation Responsibilities to College Subject to the receipt of the Grant, Corporation agrees to provide the requested funding in the amount of$380,593.06 to be evidenced by this Agreement which memorializes the conditions set forth in the LOI inclusive of any and all other requirements set forth in the Grant and to contain other conditions and agreements between the Corporation and the College as necessary to affect the Program. Article XI Joint Obligations of College and Corporation College and Corporation agree that they shall jointly develop (together with industry partners)training programs to meet the diversified requirements of the industrial complex and the strategic partners of the College and the Corporation. The Parties shall agree to comply with all federal, state and local laws including, without limitation, all City codes, ordinances, resolutions, standards and policies, as now exist from and hereinafter adopted or amended. Article XII Indemnification COLLEGE INDEMNIFICATION. COLLEGE, TO THE EXTENT AUTHORIZED BY APPLICABLE LAW, SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS THE CORPORATION, ITS OFFICERS, OFFICIALS, AGENTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS, SUITS,ACTIONS, OR LIABILITIES FOR INJURY OR DEATH OF ANY PERSON, OR FOR LOSS OR DAMAGE TO PROPERTY, WHICH ARISES OUT OF COLLEGE'S DESIGN, CONSTRUCTION, OPERATION AND/OR USE OF THE EQUIPMENT OR FROM ANY ACTIVITY, WORK OR THING DONE, PERMITTED, OR SUFFERED TO BE DONE IN OR ABOUT THE EQUIPMENT, EXCEPT ONLY SUCH INJURY OR DAMAGE AS SHALL HAVE BEEN OCCASIONED BY THE SOLE NEGLIGENCE OF THE CORPORATION. NO WAIVER OF INDEMNIFICATION. Notwithstanding any provision of the Agreement,nothing herein shall be construed as a waiver by College of its constitutional,statutory or common law rights,privileges, immunities or defenses, including, but not limited to,waiver of College's (i) sovereign immunity to suit; (ii) sovereign immunity against the recovery of money damages; or(iii) right to a jury trial for any issue arising under this Agreement. To the extent the terms of this paragraph conflict with any other provision in the Agreement, the terms of this paragraph shall control. #2518283 Page 4 Article XIII Insurance Each Party shall procure and maintain for the duration of the Program, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the use of the Equipment, and such insurance, shall evidence and shall include Automobile Liability,Commercial General Liability,Workers' Compensation Liability and such others as may be required by law. Article XIV No Joint Venture This Agreement nor the undertakings created hereby shall create any joint relationship between College and Corporation nor create any separate legal entity. Article XV Program Evaluations Annual Review. The College and Corporation agree to meet at least once annually to review the prior performance and operations of the Program and to collaborate on addressing any issues or concerns to affect the proper utilization of the Equipment as anticipated or planned. Additional Review. In the event of any concerns or issues regarding the training performance,College and Corporation agree to meet at any time in a timely manner to review any such concerns. Article XVI Dispute Resolution Informal. College and Corporation by and through their duly authorized, designated representatives shall meet and attempt to resolve any matter of training,scheduling,operational or other issues arising out of this Agreement or the operation of the Equipment. In the event that the Parties fail to resolve a dispute,the Parties may proceed to mediation prior to initiating other legal actions. Article XVII General #2518283 Page 5 Amendments. Except as mutually agreed upon by the Parties to the Agreement, no amendment to this Agreement shall be valid unless evidenced in writing, properly authorized by each Parties governing body. Severability. If any section or provision of this Agreement or its application is held invalid, the remainder of this Agreement or the Application of the remainder of the Agreement shall remain valid and in full force and effect. No Third Party Benefits. Notwithstanding the anticipated engagement of strategic partners, this Agreement is entered into by and solely for the benefit of the Parties and shall not confer any benefits, direct or implied, on any third persons. Assignment. Neither the College nor the Corporation shall have the right to transfer or assign, in whole or in part, any of their obligations or rights hereunder without the prior written consent of the other Party. No Waiver. Failure or delay of either Party to declare any breach or default immediately upon occurrence shall not waive such breach of default. Captions. The respective captions of the sections or sub-sections of this Agreement are for the convenience of reference only and shall not be deemed to modify or otherwise affect any of the provisions of this Agreement. Equal Opportunity to Draft. The Parties have participated and had an equal opportunity to participate in the drafting of this Agreement and its attachments. No ambiguity shall be construed against any Party upon claim that that Party drafted ambiguous language. Notice. All notice required under this Agreement shall be to the Party at the address listed below and shall become effective three(3)days following the date of deposit in the United States Postal Service. LAMAR STATE COLLEGE PORT ARTHUR: Attn: Dr. Ben Stafford, VP LSCPA Workforce&Continuing Education 1500 Procter Street Port Arthur, Texas 77640 CITY OF PORT ARTHUR SECTION 4A DEVELOPMENT CORPORATION Attn: Krystle Villarreal Interim CEO 501 Procter Street, Suite 100 Por Arthur, Texas 77640 Article XVIII Interpretation and Venue #2518283 Pnge6 This Agreement shall be governed by the laws of the State of Texas as to interpretation and performance, and the Parties agree that venue for enforcement of the Agreement shall be in accordance with a competent jurisdiction in Jefferson County, Texas. Article XIX Entire Agreement This Agreement and its attachments set forth all the terms and conditions agreed upon by the College and the Corporation, incorporating by reference,the award for the Program. Article XX Financial Records Financial Records. Each Party agrees to maintain books, records and documents which sufficiently and properly reflect all direct and indirect costs related to the performance of this Agreement and maintain such accounting procedures and practices as may be deemed necessary to assure proper accounting of all funds paid in pursuant of this Agreement. These records shall be subject, at all reasonable times, to inspection, review or audit by the other Party or their duly authorized representative,auditor or other governmental official authorized by law to monitor this Agreement. State Auditor's Office. The parties understand that acceptance of funds under this Agreement constitutes acceptance of the authority of the State of Texas Auditor's Office or any successor agency("Auditor"),to conduct an audit or investigation in connection with those funds. The parties shall cooperate with the State Auditor's Office in the conduct of the audit or investigation, including providing all records requested. The parties shall ensure that this paragraph concerning the State's authority to audit funds received indirectly by subcontractors through the parties and the requirement to cooperate is included in any subcontract it awards. Additionally,the State Auditor's Office shall at any time have access to and the rights to examine, audit, excerpt, and transcribe any pertinent books, documents, audit documentation, and records of the parties relating to this Agreement for any purpose. Public Information. Each Party shall maintain public information in accordance with state law,in the manner and for the time period applicable to such records. If either Party receives a request for public information created as a part of the Program, each Party agrees to fully cooperate in the providing of such information and provide due notification to the other Party as to the request and the response to such request. #2518283 Page 7 Training Records. College agrees to maintain and to provide assigned staff to coordinate the proper maintenance of training records required to be kept for programmatic activities of the Program. Article XXI Effective Duration of Agreement& Termination Effective Date. This Agreement shall take effect on the date of the last authorizing signature affixed hereto. Term. Except as otherwise agreed by the Parties, this Agreement shall continue until the completion and satisfaction of the financial obligations of each party and the satisfaction of performance requirements as may be set forth in this Agreement and any attachment hereto. The initial term of the agreement is years; the agreement may be extended for an additional year by mutual agreement of the parties, in writing and properly authorized by each Party's governing body. Termination. In the event of a material failure by a Party to perform its duties and obligations in accordance with the terms of this Agreement, the other party may terminate this Agreement upon sixty(60) days' advance written notice of termination setting forth the nature of the material failure;provided that,the material failure is through no fault of the terminating party. The termination will not be effective if the material failure is fully cured prior to the end of the sixty-day period. Article XXII Loss of Funding Performance by a Party of its duties and obligations under this Agreement may be dependent upon the appropriation and allotment of funds by the Texas State Legislature (the "Legislature") and/or allocation of funds by that Party's governing board. If the Legislature fails to appropriate or allot the necessary funds to a Party,or a Party's governing board fails to allocate the necessary funds, then the Party that loses funding may terminate this Agreement without further duty or obligation under this Agreement. Article XXIII Authorization and Execution Authorization and Execution. Each Party warrants that it is duly authorized to enter into this Agreement and that the person(s)executing this Agreement are duly authorized to execute this Agreement for and on behalf of each identified Party. ***SIGNATURES APPEAR ON FOLLOWING PAGE*** #2518283 Page 8 LAMAR STATE COLLEGE PORT ARTHUR: Approved as to Form: Dr. Ben Stafford, VP Date: #2518283 Page 9 PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION: Approved as to Form: Krystle Villarreal, Interim CEO Date: #2518283 Page 10