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HomeMy WebLinkAboutPR 19107: SECOND AND FINAL RENEWAL, BETWEEN EDC AND JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. Interoffice MEMORANDUM To: Mayor, City Council, City Manager From: Floyd Batiste, CEO --y../3 Date: August 12, 2015 Subject: P. R. No. 19107; Council Meeting of August 18, 2015 ATTACHED IS PROPOSED RESOLUTION 19107 AUTHORIZING THE SECOND AND FINAL RENEWAL OF THE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND JIREH WORLD CHURCH / OUTREACH MINISTRIES, INC. TO PROVIDE LIFE SKILLS AND FINANCIAL PLANNING TRAINING TO PORT ARTHUR RESIDENTS IN AN AMOUNT NOT TO EXCEED $125,000 P.R. No. 19107 8/10/15 kvm RESOLUTION NO. A RESOLUTION AUTHORIZING THE SECOND AND FINAL RENEWAL OF THE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. TO PROVIDE LIFE SKILLS AND FINANCIAL PLANNING TRAINING TO PORT ARTHUR RESIDENTS IN AN AMOUNT NOT TO EXCEED $125,000 WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation (the "PAEDC") Board of Directors is dedicated to improving the quality of life of Port Arthur residents who lack skills to qualify for permanent employment; and WHEREAS, House Bill 1967 amends the Texas Local Government Code by adding §501.163 which authorizes expenditures for life skills training by PAEDC; and WHEREAS, per Resolution No. 14-195, PAEDC and the Port Arthur City Council approved an agreement between PAEDC and Jireh World Church/Outreach Ministries, Inc. for life skills and financial planning training with the option to renew the agreement for two additional years; and WHEREAS, per Resolution No. 14-471, the PAEDC renewed the Life Skills Training Agreement with Jireh World Church/Outreach Ministries through Fiscal Year 2014-2015; and WHEREAS, on August 3, 2015, the PAEDC Board of Directors approved the second and final renewal of the agreement between PAEDC and Jireh World Church/Outreach Ministries. Inc. for the 2015-2016 fiscal year; and WHEREAS, in consideration for the extraordinary costs of providing life skills training and basic financial planning to Port Arthur residents, PAEDC agrees to fund $125,000 of the program cost during the 2015-2016 fiscal year pursuant to the Training Agreement attached hereto as Exhibit"A". 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 the Training Agreement between PAEDC and Jireh World Church/Outreach Ministries, Inc. attached hereto as Exhibit "A" for a cost not to exceed $125,000 for program cost during the 2015-2016 fiscal year. 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., 2015, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers NOES: Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary #1206297 Paget APPROVED: Floyd Batiste, PAEDC CEO APPROVED AS TO FORM: Guy N. Goodson, PAEDC Attorny APPROVED AS TO FORM: Valecia R. Tizeno, City Attorney #1206297 Page 3 EXHIBIT "A" TRAINING AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. Executive Summary The City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") Board has found that Port Arthur is a community with a high unemployment rate with a high percentage of citizens with limited skills. The PAEDC Board also recognizes the importance of improving the quality of life of Port Arthur residents who lack the skills needed to qualify for an on the job training program with a local employer or skills to secure permanent employment in the current labor market. As a result, PAEDC advocated for the passage of House Bill 1967 during the 83rd Legislative Session so that it could spend tax revenue received under the Development Corporation Act for certain types of life and basic skills training that would prepare individuals for training programs. Jireh World Church/Outreach Ministries, Inc. (the "Subcontractor") has developed a program for life skills and basic financial planning training (the "Programs"). Specifically, the Subcontractor's Life Skills "Plus" Training & Basic Financial Planning with employment placement is designed to deliver in-house training geared to increase the skill level and personal effectiveness of new hires and entry level employees. The Subcontractor will provide training to Port Arthur residents ("Program Participants"). The Subcontractor will assist Program Participants in setting vocational goals, identifying work values, developing basic fmancial and budgetary skills, teaching essential job duties, providing resources for identifying potential employers, assisting in resume writing, and practicing interviewing skills. The Subcontractor will additionally assist the Program Participants in fording gainful employment and will remain involved and active in the Program Participants quest to find permanent employment for up to ninety(90) days after the last day of the training program. PAEDC and Subcontractor, in collaboration, hope to improve the lives of Port Arthur residents by providing life skills and basic financial training to the Program Participants. TRAINING AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. RECITALS -1- AGREEMENT DATES -2- PARTIES -2- CONDITIONS PRECEDENT -2- (A) PERFORMANCE BY PAEDC -2- (B) PERFORMANCE BY SUBCONTRACTOR -3- PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY -4- RECORDS / INSPECTION / PAEDC AUDIT -4- CHANGES AND AMENDMENTS -4- DEFAULT /TERMINATION -5- ORAL AND WRITTEN AGREEMENTS / PRIOR AGREEMENTS -5- VENUE -5- UNDOCUMENTED WORKERS -5- CONFLICT OF INTEREST DISCLOSURE -6- ADDRESS OF NOTICE AND COMMUNICATIONS -6- CAPT IONS -6- ATTORNEY APPROVALS -6- AGREEMENT EXECUTION -7- TRAINING AGREEMENT BETWEEN CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. RECITALS WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") Board of Directors is dedicated to improving the quality of life of Port Arthur residents who lack skills to qualify for an on the job training program with a local employer or skills to secure permanent employment in the current labor market; and WHEREAS, House Bill 1967 amends the Texas Local Government Code and adds §501.163 which authorizes expenditures for life skills training by the PAEDC; and WHEREAS, Jireh World Church/Outreach Ministries, Inc. ("Subcontractor") agrees to provide Life Skills Training & Basic Financial Planning to Port Arthur residents ("Program Participants"); and WHEREAS, in consideration for the extraordinary costs of providing Life Skills Training & Basic Financial Planning to Port Arthur residents, the PAEDC agrees to fund $125,000.00 of the program cost during the 2015-2016 fiscal year. NOW, THEREFORE, for good and valuable consideration, PAEDC and Subcontractor hereby agree as follows: AGREEMENT DATES AGREEMENT START DATE 1. This Training Agreement ("Agreement") shall begin on October 1, 2015. AGREEMENT END DATE 2. This Agreement expires on September 30, 2016. PARTIES 3. PAEDC located at 501 Procter Street, Port Arthur, Texas 77640, is a not for profit corporation. It is duly authorized to do business in the State of Texas under Chapter 504, Local Government Code (the "Development Corporation Act of 1979") and duly authorized by Resolution of the City Council of the City of Port Arthur to enter into this Agreement. 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. Jireh World Church/Outreach Ministries, Inc., 3505 Procter Street, Port Arthur, Texas 77642-8322, and its duly authorized representative for purposes of this Agreement is Simon Carron, Jr. 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 PAEDC (1) Funding in the amount of $125,000.00 is allocated to Jireh World Church/Outreach Ministries, Inc. subject to the approval of the City. The Subcontractor, Jireh World Church/Outreach Ministries, Inc. will provide the following services: Program Costs Provider Budgeted Funds Life Skill Training&Monitoring Jireh World Church/Outreach Ministries,Inc. $87,500.00 Job Placement Jireh World Church/Outreach Ministries,Inc. $31,875.00 Job Retention Jireh World Church/Outreach Ministries,Inc. $5,625.00 (2) PAEDC shall pay the Subcontractor $385.00 per Program Participant when the Program Participant completes at least ten(10) hours of training. PAEDC shall pay the Subcontractor an additional $616.00 per Program Participant once the Program Participant completes at least fifty percent (50%)/ forty (40) hours of training. PAEDC shall pay the Subcontractor an additional $539.00 per Program Participant when the Program Participant obtains a certificate evidencing he/she completed the training program. (3) PAEDC shall pay the Subcontractor $168.30 per Program Participant if the Program Participant becomes gainfully employed and provides the Subcontractor a paycheck stub evidencing he/she earned no more than $5,000.00 within sixty(60) days of employment. PAEDC shall pay the Subcontractor $561.00 per Program Participant if the Program Participant becomes gainfully employed and provides Subcontractor a paycheck stub evidencing he/she earned more than or equal to $5,000.00 during his/her first ninety(90)days of employment. 2 Note: The maximum amount of funds the Subcontractor can receive per Program Participant for job placement is $561.00. (4) PAEDC shall pay the Subcontractor an additional $99.00 per Program Participant if the Program Participant remains employed for more than ninety(90) days. (b) PERFORMANCE BY SUBCONTRACTOR (1) Subcontractor shall provide for the life skills training of Port Arthur residents. The Subcontractor will assist Program Participants in setting vocational goals, identifying work values, developing basic financial and budgetary skills, teaching essential job duties, providing resources for identifying potential employers, assisting in resume writing, and practicing interviewing skills. (2) Subcontractor further agrees to help Program Participants find transportation to training and transportation for work. (3) Subcontractor further agrees to facilitate employment placement for Program Participants. (4) Subcontractor shall remain involved and active in the Program Participants quest to find permanent employment for up to ninety (90) days after the last day of the training program. PAEDC'S CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY 7. The PAEDC, 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 Subcontractor or to any third parties for failure to make payments to Subcontractor under the terms and conditions of this Agreement. 8. The PAEDC's sole liability/obligation shall be to Subcontractor 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 Subcontractor 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 Subcontractor. 10. Upon written request, Subcontractor shall provide reports to the PAEDC. 3 recover any amounts owed under this Chapter and further acknowledges that PAEDC may recover court costs and reasonable attorneys' fees incurred in an action brought under §2264.101(a). The Subcontractor is not liable for a violation of this Chapter by a subsidiary, affiliate or franchisee of the Subcontractor or by a person with whom the Subcontractor contracts. CONFLICT OF INTEREST DISCLOSURE 20. Each Subcontractor shall comply with the Conflict of Interest Policy attached hereto as Exhibit"C." ADDRESS OF NOTICE AND COMMUNICATIONS City of Port Arthur 4A Economic Development Corporation 501 Procter Street, Suite 100 Port Arthur, Texas 77640 ATTN: Floyd Batiste, Chief Executive Officer Jireh World Church/Outreach Ministries, Inc. 2305 Robinhood Drive, P.O. Box 5455 Port Arthur, Texas 77642 Attn: Simon Carron, Jr. CAPTIONS 21. 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 5 11. Upon written request, Subcontractor shall provide PAEDC with all reports reasonably necessary for PAEDC compliance with the Development Corporation Act of 1979. CHANGES AND AMENDMENTS 12. 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 PAEDC. 13. 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 14. In the event of default of any of the obligations of the Subcontractor detailed herein, the PAEDC may, at its sole and exclusive option, withhold and/or disallow further PAEDC payments or incentives to the Subcontractor. 15. In addition to the foregoing, the PAEDC and Subcontractor 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. ORAL AND WRITTEN AGREEMENTS /PRIOR AGREEMENTS 16. 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 18. For purposes of litigation that may accrue under this Agreement, venue shall be Jefferson County, Texas, where substantially all the performance will occur. UNDOCUMENTED WORKERS 19. Subcontractor and any branch, division or department of Subcontractor certifies that they have not and will not knowingly employ an "undocumented worker" which means "an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to be employed in that manner in the United States." Subcontractor acknowledges that it has reviewed Chapter 2264, Texas Government Code, attached hereto as Exhibit "B" and made a part hereof for all purposes and hereby affirmatively agrees by execution of this Agreement to repay the amount of any grant with interest at the rate of ten (10%) percent per annum not later than the 120th day after the date PAEDC notifies Subcontractor of a violation. Subcontractor acknowledges PAEDC may bring a civil action or 4 AGREEMENT EXECUTION CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION SIGNED AND AGREED TO on the day of , 2015. By: By: President Secretary Witness Witness 6 JIREH WORLD CHURCH/OUTREACH MINISTRIES, INC. SIGNED AND AGREED TO on the day of , 2015. By: Witness 7 EXHIBIT "A" Request for Proposal 8 EXHIBIT "B" GOVERNMENT CODE TITLE 10. GENERAL GOVERNMENT SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT CHAPTER 2264. RESTRICTIONS ON USE OF CERTAIN PUBLIC SUBSIDIES SUBCHAPTER A. GENERAL PROVISIONS Sec. 2264.001. DEFINITIONS. In this chapter: (1) "Economic development corporation" means a development corporation organized under Subtitle Cl, Title 12, Local Government Code. (2) "Public agency" means the state or an agency, instrumentality, or political subdivision of this state, including a county, a municipality, a public school district, or a special- purpose district or authority. (3) "Public subsidy" means a public program or public benefit or assistance of any type that is designed to stimulate the economic development of a corporation, industry, or sector of the state's economy or to create or retain jobs in this state. The term includes grants, loans, loan guarantees, benefits relating to an enterprise or empowerment zone, fee waivers, land price subsidies, infrastructure development and improvements designed to principally benefit a single business or defined group of businesses, matching funds, tax refunds, tax rebates, or tax abatements. (4) "Undocumented worker" means an individual who, at the time of employment, is not: (A) lawfully admitted for permanent residence to the United States; or (B) authorized under law to be employed in that manner in the United States. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196), Sec. 1, eff. September 1, 2007. Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 11.023, eff. September 1, 2009. 9 SUBCHAPTER B. RESTRICTIONS ON USE OF CERTAIN PUBLIC SUBSIDIES TO EMPLOY UNDOCUMENTED WORKERS Sec. 2264.051. STATEMENT REQUIRED IN APPLICATION FOR PUBLIC SUBSIDIES. A public agency, state or local taxing jurisdiction, or economic development corporation shall require a business that submits an application to receive a public subsidy to include in the application a statement certifying that the business, or a branch, division, or department of the business, does not and will not knowingly employ an undocumented worker. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196), Sec. 1, eff. September 1, 2007. Sec. 2264.052. CONDITION ON RECEIPT OF PUBLIC SUBSIDIES. The statement required by Section 2264.051 must state that if, after receiving a public subsidy, the business, or a branch, division, or department of the business, is convicted of a violation under 8 U.S.C. Section 1324a(f), the business shall repay the amount of the public subsidy with interest, at the rate and according to the other terms provided by an agreement under Section 2264.053, not later than the 120th day after the date the public agency, state or local taxing jurisdiction, or economic development corporation notifies the business of the violation. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196), Sec. 1, eff. September 1, 2007. Sec. 2264.053. AGREEMENT REGARDING REPAYMENT OF INTEREST. A public agency, state or local taxing jurisdiction, or economic development corporation, before awarding a public subsidy to a business, shall enter into a written agreement with the business specifying the rate and terms of the payment of interest if the business is required to repay the public subsidy. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196), Sec. 1, eff. September 1, 2007. SUBCHAPTER C. ENFORCEMENT Sec. 2264.101. RECOVERY. (a) A public agency, local taxing jurisdiction, or economic development corporation, or the attorney general on behalf of the state or a state 10 agency, may bring a civil action to recover any amounts owed to the public agency, state or local taxing jurisdiction, or economic development corporation under this chapter. (b) The public agency, local taxing jurisdiction, economic development corporation, or attorney general, as applicable, shall recover court costs and reasonable attorney's fees incurred in an action brought under Subsection(a). (c) A business is not liable for a violation of this chapter by a subsidiary, affiliate, or franchisee of the business, or by a person with whom the business contracts. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196), Sec. 1, eff. September 1, 2007. Jireh World Church and Outreach Ministries, Inc. hereby acknowledges that it has reviewed Chapter 2264, Texas Government Code. Jireh World Church and Outreach Ministries, Inc. Date: By: Signature Its: Title 11 EXHIBIT "D" COMPLIANCE STATEMENT Jireh World Church and Outreach Ministries, Inc. hereby certifies that it has fully complied with Local Government Code §176.006, as amended, which mandates the disclosure requirements for persons who contract or seek to contract with a local governmental entity. Jireh World Church and Outreach Ministries, Inc. Date: By: Signature Its: Title 13 EXHIBIT "C" CERTIFICATION REGARDING LOBBYING For Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his knowledge and belief, that: 1. No funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of the City or of the PAEDC in connection with the awarding of any contract, the making of any grant, the making of any loan, the entering into of any cooperative agreement, or modification of any contract, grant, loan, or cooperative agreement. 2 The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements), and that all Subs shall certify and disclose accordingly. This certification is material representation of fact which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction. Jireh World Church and Outreach Ministries, Inc. Date: By: Signature Its: Title 1?