HomeMy WebLinkAboutPR 24993: WORKFORCE TRAINING AGREEMENT FOR CDL TRAINING P O ECONOMIC
Z DEVELOPMENT
CORPORATION
Ar. ur
INTEROFFICE MEMORANDUM
Date: June 5, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM I City Manager
From: Krystle Muller, PAEDC, CEO
RE: P.R. 24993 I A Resolution Approving a Workforce Training Agreement Between
the City of Port Arthur Economic Development Corporation and Lamar State
College Port Arthur for Commercial Driver License (CDL)Training.
Introduction:
The Port Arthur Economic Development Corporation (PAEDC) seeks City Council approval to
enter into a Workforce Training Agreement with Lamar State College Port Arthur (LSCPA) for
Commercial Driver License (CDL) training. This program will provide training for eligible Port
Arthur residents aiming for employment in transportation and related fields.
Background:
PAEDC and LSCPA have collaborated to offer CDL training,helping participants obtain Class A
and Class B licenses. A recent review led to updated tuition rates, enhanced reporting
requirements, and improved tracking of employment outcomes, ensuring accountability and
performance in alignment with regional workforce needs.
Budget Impact:
PAEDC will allocate up to $100,000 for Fiscal Year 2026- 2027 for eligible residents in CDL
training, on a reimbursement basis tied to participant progress. This funding will come from
PAEDC Account No. 120-80-625-5475-00-00-000, subject to approval of the PAEDC budget.
Recommendation:
It is recommended that the City Council approve a resolution authorizing PAEDC to execute the
Workforce Training Agreement with LSCPA for CDL training, supporting regional workforce
development and enhancing access to industry-recognized credentials for Port Arthur residents.
PR No.24993
6/5/2026
RESOLUTION NO.
A RESOLUTION APPROVING A 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 $100,000.00; FUNDS AVAILABLE IN EDC ACCT.
120-80-625-5475-00-00-000, SUBJECT TO APPROVAL OF
THE PAEDC FY26-27 BUDGET
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 Port Arthur 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 provides industry-recognized CDL Class A and CDL Class B
training opportunities that support workforce development, transportation, logistics,
construction, manufacturing, industrial operations and other occupations requiring
commercial driver licensure; and
WHEREAS, at their June 1, 2026, 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 $100,000.00 annually, with the option to renew for one (1) additional year, subject to
approval of the PAEDC FY26-27 budget.
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 approves PAEDC entering into a pre-employment
Training Agreement with LSCPA for the training of Port Arthur residents as commercial
drivers in an amount not to exceed $100,000.00 annually, with the option to renew for one
(1) additional year, subject to the approval of the PAEDC budget.
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:
Christe Whitley Ned, City Secretary
#2567980 Page 2
APPROVED:
cil -te7i
) 0,t, ,,,_
Krystle uller,PAEIC CE
APP OVE i AS F RM:
d � C1C--,....
Guy N. Goodson,PAEDC Attorney
APPROVED AS TO FORM:
Roxann Pais Cotroneo,City Attorney
APPROVED AS TO AVAILABILITY OF FUNDS:
i 4 891Ja00/ ` a7eioa<
Ly 1i a Boswell,Finance 1 irector
02567980 Page 3
Exhibit "A"
TRAINING AGREEMENT
BETWEEN -
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 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 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 is eligible,they will be eligible to receive financial assistance from PAEDC
for the Certification Program.
WHEREAS,PAEDC will allocate a total of$100,000.00 for financial assistance for either
the CDL Class A or CDL Class B program, subject to approval of the PAEDC 26-27 budget.
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
AGREEMENT END DATE
2. This Agreement expires on
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 President
and Secretary of the PAEDC Board have 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) Funding in the amount of$100,000 is allocated to LSCPA subject to the
approval of the City. 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 quarterly performance reports reflecting
enrollment, completion, certifications, and available employment
outcomes.
(b) PERFORMANCE BY PAEDC
(1) PAEDC shall provide LSCPA$840.00 per eligible student at the beginning
of the program.
(2) PAEDC shall provide LSCPA the remaining balance for either the Class
A CDL at a rate of$3,160.00 or Class B CDL at a rate of$2,040.00 once
LSCPA has provided documentation showing the student completed the
program and received their CDL certification.
112553786 Page 2
(3) PAEDC shall allocate a total of$100,000.00 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
nonperformance 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
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 at any time when both parties agree, in writing, to the terms and conditions of
any such voluntary termination.
#2553786 Page 3
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. 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
Port Arthur Economic Development Corporation
501 Procter
Port Arthur,Texas 77640
ATTN: Krystle Muller, Chief Executive Officer
Lamar State College Port Arthur
1500 Procter Street
Port Arthur,Texas 77640
ATTN: Dr. John C. Hayek, Interim President
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.
ATTORNEY APPROVALS
APPROVED AS TO FORM:
Guy Goodson, Legal Counsel for PAEDC
VERIFIED AS CONSISTENT
WITH CITY COUNSEL RESOLUTION: Resolution Number:
City Attorney
#2553786
Page 4
AGREEMENT EXECUTION
PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION
SIGNED AND AGREED TO on the day of ,2026.
By: By:
President Secretary
Witness Witness
#2553786 Page 5
LAMAR STATE COLLEGE PORT ARTHUR
SIGNED AND AGREED TO on the day of , 2026.
By:
Witness
#2553786
Page 6
EXHIBIT A
PAEDC Workforce Training Program Income Eligibility Guidelines
HUD 80%Area Median Income(AMI) Limits
Beaumont—Port Arthur Metropolitan Statistical Area
Household Size Maximum Annual Household Income
1 $50,400
2 $57,600
3 $64,800
4 $72,000
5 $77,800
6 $83,550
7 $89,300
8 $95,050
Eligibility Requirements
Be a resident of the City of Port Arthur.
Meet all admission requirements established by Lamar State College Port Arthur for the CDL Training
Program.
Have a household income at or below the limits established in this Exhibit A.
Provide documentation acceptable to PAEDC and LSCPA to verify household income.
Meet any additional eligibility requirements established by PAEDC.
Income Limit Updates
PAEDC reserves the right to update these income limits during the term of the Agreement to reflect
revised HUD Area Median Income (AMI)guidelines or other applicable federal,state,or local income
standards without requiring a formal amendment to this Agreement.
#2553786 Page 7
EXHIBIT B
Program Component Class A Class B Payment Trigger
Theory $840 $840 Successful completion
of theory
Range/Road $3,160 $2,040 CDL licensure obtained
Total Program Cost $4,000 $2,880 Full completion
CDL Training Program Description and Tuition Schedule
Lamar State College Port Arthur(LSCPA)shall provide Commercial Driver License(CDL)training opportunities for
eligible Port Arthur residents under this Agreement.
Eligibility Requirements
Resident of the City of Port Arthur.
Meet income eligibility requirements contained in Exhibit A.
Meet LSCPA admission requirements for CDL training.
Submit required application materials,driving record,income documentation,physical examination,and drug
screening documentation.
Receive approval from PAEDC prior to funding.
Payment Milestones
LSCPA may invoice$840 upon successful completion of theory.
LSCPA may invoice$3,160(Class A)or$2,040(Class B)upon CDL licensure.
Total reimbursements shall not exceed$100,000.
Reporting Requirements
Quarterly enrollment reporting
Quarterly completion and certification reporting
Quarterly withdrawal reporting
Employment outcome reporting to the extent reasonably available
Annual reconciliation of participant and invoicing records
42553786 Page 8
EXHIBIT C
Quarterly Performance Reporting Requirements
LSCPA shall submit quarterly performance reports to PAEDC no later than fifteen(15) days
following the end of each calendar quarter.Reports shall include,at a minimum,the information
outlined below.
Participant Activity Report
Reporting Category Required Information
Applications Received Number of applicants received during
reporting period
Students Approved Number approved and enrolled
Class A Enrollment Number enrolled in Class A CDL training
Class B Enrollment Number enrolled in Class B CDL training
Theory Completions Number successfully completing theory
portion
CDL Licensures Number obtaining CDL license/certification
Withdrawals Number of students who withdrew or were
terminated
Program Completions Number successfully completing the full
program
Employment Outcomes Employment status of graduates to the
extent reasonably available
Employer Information Known employer placement information,if
available
Invoice Reconciliation
Each quarterly report shall include a reconciliation of students invoiced,students completed,and
students pending invoicing to assist PAEDC in monitoring contract expenditures.
Annual Summary Report
At the conclusion of the contract term,LSCPA shall provide an annual summary report outlining
program participation,completions,certifications,employment outcomes,and total funds invoiced
under the Agreement.
#2553786
Page 9