Res 121-2006 9/5/2006 , •
RESOLUTION NO. ( � I -��O(p
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, APPROVING ECONOMIC DEVELOPMENT INCENTIVE
AGREEMENTS AND AMENDMENTS TO THE WICHITA FALLS
ECONOMIC DEVELOPMENT CORPORATION 2005-2006 BUDGET
FOR A VERNON COLLEGE MACHINING SCHOOL AND TEXAS
RECREATION TOTALING $445,400; FINDING AND DETERMINING
THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED
WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, The Wichita Falls Economic Development Corporation met on
August 14 to consider a funding request from Vernon College and Texas Recreation;
and
WHEREAS, Texas Recreation has requested $202,400 to assist in purchasing
needed plant equipment for their Wichita Falls operation in exchange for retaining
existing position and converting some part-time positions to full-time status; and
WHEREAS, Vernon College wishes to establish a machining skills center to fill a
local shortage of qualified machinists with a request of $243,000 from the Wichita Falls
Economic Development Corporation.
WHEREAS, The Wichita Falls Economic Development Corporation has
approved both agreements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. Economic Development Incentive Agreements with Texas
Recreation and Vernon College are hereby approved.
SECTION 2. The 2005-2006 Budget of the Wichita Falls Economic Development
Corporation is hereby amended in the amount of $445,400 for both projects.
SECTION 3. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 5 day of September, 2006.
MAYOR
ATTEST:
i Clerk
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Century City Cenler SheppArd Learning Center Sfc�ls Trainine Ceqter
4lOS Maplewaxi A.•cnuc 42G S�' A�enue. Suite 8
Wrchita Falls, 7'¢ans 7G30R 2813 Central Ey,presqw8y F�st
(94(l) 696-kt752 PMmr Sheppard AFO, "tcxxs 76? 11 Wichita f'u11s, TX 76?02
940 t�M-3 (9�)RtS.�?UJ Vhonc {9-06)7G6-336q Phone
l 1 2aa f Ax (9a0) 855-tN)]s FAX
(944) 7C�-3419 Fra
1'his Pi'oposs�l was campilcd and is prestnted by Vemon Go[lege (VC) in responsc to the urgent and
consistent message tincalired by loc:a] industrics "We necc! machinists!" 7'he shortage of machinists is not
just a l�cal challenge. The Bureau of Labor Stutistics (ALS) indieates that dcmund is rapidly outpaeing
the supply for trained machinists. According to thr Bi.S, by 20241hcre will be 10,210 openmgs for
machinists in the i;nited States. "('hr stn;e ofTexas alone will represent 750 ofthese apenings. A local
needs a.scessment eondueted by VC' querying 30 Ioeal industries (See Attach�nenr �f ) indicated that 5{?°/a of'
the respondents had a current need for machinists. In addition to these statist�es, 30% af the respondencs
indiceted that they were Corced co autsource work due to ihr current unmet need for mAChinists. The AIS
lists the median salary in Texas for machinists at $14.95 per hour and an experienced median wage rate �f
$19.OQ per hour. I}espite these wages, V'C's Skills Training �nter mschining ctasscs are vinually empty
and industries' needs for machinist� are unmet.
'I'his proposal ouUines a sotution and a rvquest for tiinding assistance. The tnple prongad solution
imal�es 1) hinng a Full-timc; machining insiructor who w�tl promote the progr�am, recruit students, and
nunure the program; 2} an agfiressive mxit, print (Wichita FalIs Times Kecor�d News and Fronteras), and
radio cam�ai�m (Cumulus Br�wdeasiing) aimed at parenis, high schoal junivrs and seniors, Latinos, and
service workers; and 3) an u}�grade for c�,urent technology (equipmendsotlwi�re) to meet the indusiry
swndards t}uough expasing students io cutting edge technolobry thai automates machining by combining
CtiC technology with roboiics nnd materials handling, Frum past experience in creoting successful
pro�rams, VC believes that with an initiel mvestment the prograrn can be totally self-sustainiag after 3
years ;uid thc local need fur machinists w-ill bc met for y���y to come.
� _ _ _ � -- � — __.__
_ _ ttegucst for Funds __ _
......
Year l Year 2 Ycar 3 ' Year 4
; __ . _ 4(a) VC 4(a) �VC a(a} VC _4(a) VC
Instructor --
I Wa e�,�Benefits 35.913 S,OUO 33A 13 7,SOU 20,d57 20,457 • 0- I 4f1,913
. _-- _.
! Advertising �__ �__ �
Cam ai�n 29,099 3,100 26,947 5,253 17,U99 15,1U0 • 0- 1 I R,p00
— �. _ _ ._�__ _ _ _
Upgrade � —
Technology 5,400 4,(�00 4,8gp 5,000 69,745 IO,UUO - 0- 10,400
—_ _. T__
Miscellaneous — --- —
� Prn�vmtAdm, j �
Costs - 0- SO,081 - 0- 50,08 i - 0- 50,081 - 0- ( 50,081
TOTAL i 70,�12 62.781 65,21U G7,$34 107,301 95,638 - 0- 1 i 18,9I4
-- --_
' C:rnnci Total �a) Rcquest V(' Contribu
__R._
Yrars t-3 242.923 � 226,253
Year � � - 0 - I 18, 994 . __
Value to Community
An active technologically advanced machining program will i) provide better jobs for citiz�ns; 2) ensure
dollars spent for outsourcing sre conveirted to local salaries; 3) ensure community retains currcnt
mdustries; 4) ereate a yuuth based skilled workforee surplus making the community atkactive to
prospeetive indusiry.
1 J
Memarandum of Understanding
l4 August 2006 '
Tliis is a Mernoranditm of C?nderstanding (MOtJ) betwecn TT2C Recreation, L.P. {hereinaftcr
"Company� and the Wichita Falk Economic Developnnent Corpor.ition {hereinufter "��J(TDC").
1. "['he VVFEDC recommends that the City Council approve the use of 4(a) Sales '1'ax pruceeds
as dcscribed be(ow.
2. Definitions '
Retained Positions - Permnnent, full-timc, benefit-eligible positions that havc been retained
as a result of'Company's continu�d operation in the City of Wichita Falls as ofthe day af '
this MUli and that have bcen in place by Company far a minimum of six months. '
i
Up�raded Posilions — part-time positions that havc bc:�n upgrAdcd to permanent, full-time,
benetit-eligible pasitions and that Itave been in place by the Company for a minimum of six
months. ,
3. "17�e usc �t4(a) Sa(es Tax nroeeeds will be contingern on the fo(lowing:
A. �'he WFGDC will recc�mmend to thc City Council the Approval �f up to $?02,400 of ,
4{a) Sales 'I'as procecds f'or [he specific purpose of adding a Therntal Oxidir.er and
related building itnprovements ot thc Company's Wichita Falls facility.
F�. Company shall pruvide the WF'EL)C with payroll records for all fWl and part-time
positions as sc>on �s practical following the p,tssage of this MOL7 by the City CounciL '
C. Company's will recain a minimwn of 82 full-time positions and upgrade a minimucn of '
tcn part-timc positiUns to f'ull-time positions in its Wichita FAlls facility b}� August 31, ',
2007. '
D. Company, not sooner than six manths from the date of this MpU, wil! make a
presentation and provide documentation to the WFEDC evidencing the acquisition and
instaltation of rz Thermal Oxidizer in its Wichita Falls operalion And provide ',
documentatiot� of thc rctention of cxisting positions ancUor upgraded positions. iJpon
,�femarandunt of L'+rder.standing betwcen IRC Kecrcution, I,.1', ueed WFEDC
l4 August 2006.
Page 2 0�?.
completion of thc Presen[ation, a$2,20� payment for each retained and up�raded
position wi(I be made m Company by the WFEDC. 'Che total amount of this incentive
shal( not exceed $202,4UU.
E. In the event that Company ceases operations in W ichita Falis, 'I'exas, or �'�'iehita
County,'I'exas, priar ta tweIve (12) months from the date of receipt of an}� incentivcs
�>aymeut, Ca:npany shall within sixty (6U) days of the date of cessation o1'operations
repay the WFEDC: the full amount af tlie incentivG� paid,
VVichita Falls �conomic
Develo mcnt Cur orution TRC: Recreation, L.P.
By: By .
Gary Shores Yat Rominger
Chairman Aresident
Date• Datc•