HomeMy WebLinkAboutR-2005-060 Maytag Services CDBG Grant AgreementA RESOLUTION
RESOLUTION NO. R-2005-60
authorizing the City Manager of the City of Yakima to execute a CDBG
economic development project grant agreement with Maytag Services, a
business unit of Maytag Corporation, to assist with the establishment of a
consumer contact center operation in the City of Yakima's Renewal Community
Area.
WHEREAS, Maytag Services, a business unit of Maytag Corporation, is a private, for-profit
provider of customer services for household appliances, referring to its services collectively as
"consumer contact center", and
WHEREAS, Maytag Services is interested in establishing a consumer contact center involving
two -hundred new jobs in the City of Yakima's Renewal Community Area over the course of two years;
and
WHEREAS, the City has received and is responsible for the administration of annual
Entitlement Grants of Community Development Block Grant ("CDBG") funds made available through
the United States Department of Housing and Urban Development (HUD) and authorized by Title I of
the Housing and Community Development Act of 1974, as amended; and
WHEREAS, federal regulations governing the use of CDBG funds for special economic
development projects allow the City to use such funds as an economic incentive to provide grants to
assist private, for-profit businesses with projects that provide an appropriate level of public benefit, and
WHEREAS, the City has determined that the CDBG assistance described below is necessary
and appropriate to ensure that Maytag Services establishes a consumer contact center in the City of
Yakima's Renewal Community Area, and
WHEREAS, establishment of a consumer contact center in Yakima's Renewal Community Area
would provide substantial appropriate public benefits to the City, particularly by creating new jobs; and
WI-IEREAS, accordingly, the City wants to encourage Maytag Services to establish such an
operation in the City of Yakima's Renewal Community Area as a special economic development project
and is willing to use CDBG funds to assist Maytag Services through a performance grant of not more
than $55,000 over the course of two years according to the following terms and conditions of the
attached economic development project agreement, and
WHEREAS, the City Council deems it to be in the best interest of the City to authorize
execution of a CDBG economic development project grant agreement with Maytag Services, now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to execute a CDBG
economic development project grant agreement with Maytag Services to assist with the establishment
of a consumer contact center in the City of Yakima's Renewal Community Area. The City Attorney
shall approve the final form of the Agreements.
ADOPTED BY THE CITY COUNCIL this I9th day of April, 2005.
ATTEST:
ul P. George, Mayor
City Clerk
AGREEMENT BETWEEN THE CITY OF YAKIMA
AND MAYTAG SERVICES
THIS AGREEMENT (hereinafter "Agreement") is made and entered into by and between
the City of Yakima, Washington (hereinafter "City"), a first-class city incorporated under the laws of
the State of Washington, and Maytag Services, L.L.C. a Delaware Limited corporation and business
unit of Maytag Corporation, a Delaware corporation.
WHEREAS, Maytag Services is a private, for-profit provider of customer service, claims
management, and sales fulfillment functions for Maytag Corporation.
WHEREAS, Maytag Services is interested in establishing and maintaining a customer
service call center in the City of Yakima's Community Development Block Grant ("CDBG") Target
Area for at least two years.
WHEREAS, the City has received and is responsible for the administration of annual
Entitlement Grants of CDBG funds made available through the United States Department of Housing
and Urban Development (HUD) and authorized by Title I of the Housing and Community
Development Act of 1974, as amended.
WHEREAS, federal regulations governing the use of CDBG funds for special economic
development projects allow the City to use such funds as an economic incentive to provide grants to
assist private, for-profit businesses with projects that provide an appropriate level of public benefit.
WHEREAS, the City has determined that the CDBG assistance described below is necessary
and appropriate to ensure that Maytag Services establishes a consumer contact center in the City's
CDBG Target Area.
HLR11a-1 , estab11J11111e111 01 a cuslolllcrsel Vll.e Lail 1. enter In the Clty'DBG 1 CU gut Luca
would provide substantial appropriate public benefits to the City, particularly by creating new jobs.
WHEREAS, accordingly, the City wants to encourage Maytag Services to establish such an
operation in the CDBG Target Area as a special economic development project and is willing to use
CDBG funds to assist Maytag Services through a performance grant of not more than $55,000
according to the following terms and conditions.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements
set forth herein, it is agreed by and between the City and Maytag Services as follows:
1. Term of Agreement. This Agreement shall commence upon execution by the parties hereto and
shall terminate at 11:59 p.m. on April 30, 2007, unless the Agreement is earlier terminated by either
party in accordance with the terms of this Agreement.
2. Definitions. Where used in this Agreement, the following words and terms shall have the
meanings indicated. The meanings shall be applicable to the singular, plural, masculine, feminine
and neuter of the words and terms.
A. "Contract year" means May 1, at 12:01 a.m. to April 30 at 11:59 p.m. during the
term of this Agreement. The "first contract year" shall run from 12:01 a.m., May 1, 2005, to
11:59 p.m., April 30, 2006. The "second contract year" shall run from 12:00 a.m. May 1,
2006 to 11:59 p.m., April 30, 2007.
Page 1 of 9
B. "Full time equivalent" means hours worked by an employee or employees equal to
2080 hours per year. For example, two part-time employees working 1040 hours each per
year equal one full time equivalent.
3. The Project. Beginning no later than June 1, 2005, Maytag Services shall establish a customer
service call center in the City of Yakima's CDBG Target Area and shall continually maintain that
center in the City of Yakima's CDBG Target Area for a period of not less than two (2) years. The
center shall include a workforce providing customer service, claims management, and sales
fulfillment functions. In addition, Maytag Services shall be subject to the following requirements:
A. By June 1, 2005, Maytag Services shall employ a workforce of at least seventy-five
(75) full time equivalent ("FTE") employees and shall maintain a combined annualized
payroll and compensation package of at least One Million and Four Hundred Thousand
($1,400,00.00) Dollars.
B. At the end of the first contract year, Maytag Services' call center in Yakima's CDBG
Target AYea shall employ a workforce of at least one -hundred twenty-five 1i`1 E's and shall
maintain a combined annualized payroll and compensation package of at least Two Million
and Four Hundred and Seventy Thousand Dollars ($2,470,000.00).
C. The average total hourly compensation rate for Maytag Services' Yakima workforce
shall be at least Nine Dollars and Fifty Cents ($9.50) per hour throughout the term of this
Agreement. Full-time equivalent employees shall receive a company benefit cafeteria
package including, but not limited to, health insurance, vacation time, and sick leave.
D. Maytag Services shall establish one or more training programs to assist members of
the local community to become qualified to work in Maytag Services' Yakima customer
service call center. Such training programs may be established in conjunction with local
educational and job training institutions such ac the Yakima Valley Community College the
Tri -Valley Workforce Council, Heritage College, and/or Central Washington University in
Ellensburg, Washington.
E. Maytag Services shall provide employment opportunities for promotion and
advancement for minority and low- and moderate -income persons, as defined by federal
regulations applicable to CDBG economic development programs.
F. Maytag Services shall make employment decisions in a manner that applies equal
opportunity principles and Maytag Services affiuits, as an aspirational goal, diversity in its
Yakima workforce comparable to the socio-economic and ethnic composition of the available
relevant labor market in Yakima County with an emphasis on hiring personnel who qualify
for tax incentives such as the U.S. Department of Housing and Urban Development
administered tax incentives.
4. The Grant. The City shall provide a performance grant to Maytag Services of not more than
$55,000. All funds granted to Maytag Services by the City shall be for the purpose of reimbursement
of expenses incurred to open Maytag Services' Yakima facility, and train Maytag Services' Yakima
workforce and shall be conditioned on Maytag Services' compliance with the terms and conditions of
this Agreement. The performance grant shall be paid as follows:
A. If, by June 1, 2005, Maytag Services is in compliance with the terms and conditions
of this Agreement, including employing a workforce of at least seventy-five (75) F1'E's in
Yakima's Renewal Community and in good standing with applicable local and state business
Page 2 of 9
requirements, then Maytag Services shall be in good standing for compliance with the
agreement.
B. At the end of the first and second contract years, Maytag Services shall be in
compliance with the telins and conditions of this Agreement
C. In no event shall any grant payment exceed $55,000.00.
D. Grant payments, if any, shall be made within forty-five (45) days after the City
receives documentation enabling it to verify Maytag Services' eligibility to receive such
payments.
5. Source of Funds. The source of funds for this Agreement is the City's CDBG Entitlement Grant
administered by HUD. It is expressly understood and agreed by the City and Maytag Services that
the City's obligations under this Agreement are contingent upon the City's receipt of CDBG funds
adequate to meet the City's obligations under this Agreement.
6. Contact with HUD. Maytag Services understands and agrees that, without the written consent
of the City, all direct contact with HUD over any matter related to the project under this Agreement
shall be made solely by the City unless otherwise provided herein.
7. Reimbursement and Eligible Expenses.
A. Perfoimance grant payments shall be provided to Maytag Services only to reimburse
it for CDBG-eligible expenses, including employee recruitment and training. The City shall
provide Maytag Services with a listing of CDBG-eligible expenses within thirty days after
execution of this Agreement and thereafter notify it of any changes to such listing.
B. Reimbursement shall be based upon invoices and supporting documentation
submitted by Maytag Services. Such invoices and supporting documentation shall
demonstrate the eligibility of the expenses in question,
C. If the City requests data from Maytag Services concerning an action prior to Maytag
Services taking such action, the City is not liable for any cost incurred therefrom unless and
until Maytag Services provides such data and is then advised to proceed by the City.
D. Perfoimance grant payments shall not be available to assist Maytag Services to
purchase, develop, rehabilitate or improve any real property.
E. The City is not liable for the payment of any cost or portion thereof which has been
paid, reimbursed or is subject to payment or reimbursement from any source other than
Maytag Services' own funds.
F. The City is not liable for the payment of any cost or portion thereof that is not
incurred in strict accordance with the terms and conditions of this Agreement.
8. Closure of the Call Center. If Maytag Services closes its Yakima customer service call center
before April 30, 2007, Maytag shall reimburse the City for any and all grant funds received from the
City.
9. Conditions of Grant. The obligation of the City to advance any portion of the amounts
identified in section 4 of this Agreement are subject to the following additional conditions:
A. All actions undertaken in connection with this Agreement and all documents
incidental thereto shall be satisfactory in form, scope and substance to the City.
Page 3 of 9
B. Maytag Services shall have all applicable and necessary permits, licenses and
approvals of any federal, state, and local government or governmental authority. The City
shall not unreasonably withhold its approval of any necessary permit, license or other
approval necessary for the project described in this Agreement.
C. The U.S. Department of Housing and Urban Development shall issue a Release of
Funds that shall identify any additional requirements with respect to this Agreement,
including but not limited to environmental conditions, restrictions and mitigation
requirements. Maytag Services shall comply with all such additional requirements.
10. Maintenance and Inspection of Records. Maytag Services shall maintain standard business
and accounting records, any other records required herein, and any other records required by the City
in writing. Such records shall be available for inspection by City representatives at reasonable times
during the term of this Agreement and for a period of three (3) years following termination of this
Agreement. In the event that any audit or inspection identifies any discrepancy, Maytag Services
shall provide the City with appropriate clarification and/or financial adjustments within thirty (30)
calendar days of notification of the discrepancy by the City.
11. No City Funds. It is expressly understood that, except for CDBG Entitlement Grant funds, this
Agreement shall in no way obligate any funds or resources of the City.
12. No Third Party Benefit. The City shall not be obligated or liable under this Agreement for
provision of any goods or services or for payment of any monies to any party other than Maytag
Services.
13. Disallowed Expenses. Should any expense or charge for which payment has been made by the
City be subsequently disallowed or disapproved as a result of any auditing or monitoring by the City,
the United States Department of Housing and Urban Development, or any other federal agency,
Maytag Services shall refund such amount to the City within ten (10) working days of receipt of
written notice specifying the amount disallowed. Refunds of disallowed costs may not be made from
any CDBG, HUD, or other federal funds received from or through the City.
14. Annual Report. During the tem' of this Agreement, Maytag Services shall submit a written
report to the City within twenty (20) days after the end of each contract year that demonstrates
Maytag Services' establishment and/or maintenance of the workforce and operation described in this
Agreement. Maytag Services' report to the City shall describe the number and type of jobs, 1{'1E's,
and employees in its Yakima workforce, employee wages as a whole and as distributed among
different positions, employee training programs, and other activities relevant to this Agreement.
Maytag Services agrees to cooperate with the City and/or HUD in the development, implementation
and maintenance of record-keeping systems and to provide data reasonably determined by the City
and/or HUD to be necessary for the City and/or HUD to effectively fulfill its monitoring and
evaluation responsibilities. Upon request by the City, Maytag Services shall promptly supply copies
of its audited financial statements.
15. Compliance with Law. Maytag Services must comply with any and all applicable laws, rules,
and regulations promulgated by any federal, state, and/or local governmental agency or regulatory
body.
Laws that may apply to this Agreement include without limitation:
• Title VI of the Civil Rights Act of 1964 (42 USC 200(d));
• Title VIII of the Civil Rights Act of 1968 (42 USC 3601);
Page 4 of 9
• Section 3 of the Housing and Urban Development Act of 1968, as amended (12 USC 1701(u));
• Section 109 of the Housing and Urban Development Act of 1974, as amended (42 USC 5309);
• Age Discrimination Act of 1975, as amended (42 USC 6101);
• Americans with Disabilities Act of 1990;
• Civil Rights Restoration Act of 1987;
• 49 CFR Part 21;
• 24 CFR Part 570;
• RCW 49.60;
• Davis -Bacon Fair Labor Standards Act (40 US27600000a-276a-5);
• Grant Agreement Work Hours and Safety Standards Act, as amended (40 USC 327-333);
• Section 504 of the Rehabilitation Act of 1973 (29 USC 794);
• Architectural Barriers Act of 1968, as amended (42 USC 4151);
• Section 504 of the Rehabilitation Act of 1973, as amended (29 USC 792);
• Equal Employment Opportunity (Executive Order 11246, September 24, 1965);
• Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259);
• The Hatch Act (5 USC 1501 et seq.);
• The National Environmental Policy Act of 1969;
• Unifoiin Relocation Assistance and Real Property Acquisition Policies Act of 1970 and
Amendments of 1987;
• Title IV of the Lead -Based Paint Poisoning Prevention Act (42 USC 4831);
• HUD Refolin Act;
• Office of Management and Budget Circulars;
• A-87—Cost Principles for State and Local Governments and 24 CFR Part 85, Administrative
Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized
Indian Tribal Governments;
• A-128—Single Audit Act.
16. Nondiscrimination Provision. During the perfoinuance of this Agreement, Maytag Services
shall not discriminate on the basis of race, age, color, sex, religion, national origin, creed, marital
status, political affiliation, or the presence of any sensory, mental or physical handicap. This
provision shall include but not be limited to the following: employment, upgrading, demotion,
transfer, recruitment, advertising, layoff or termination, rates of pay or other foul's of compensation,
selection for training, and the provision of services under this Agreement. Maytag Services shall also
comply with all applicable equal employment opportunity, affirmative action, and non-discrimination
laws and regulations.
17. Status of Maytag Services. Maytag Services and the City understand and expressly agree that
Maytag Services is an independent contractor in the performance of each and every part of this
Agreement. Maytag Services, as an independent contractor, assumes the entire responsibility for
carrying out and accomplishing the terms and conditions of this Agreement. Additionally, and as an
independent contractor, Maytag Services, its agents, employees, and/or representatives shall make no
claim of City employment nor shall claim against the City any related employment benefits, social
security, and/or retirement benefits. Nothing contained herein shall be interpreted as creating a
relationship of servant, employee, partnership or agency between Maytag Services and the City.
18. Representations and Warranties. Maytag Services represents and warrants that:
A. All infoiniation, reports and data furnished to the City are complete and accurate.
Page 5 of 9
B. All financial statements furnished to the City fairly reflect the financial condition of
Maytag Services and there has been no material change in the financial condition of Maytag
Services since said statements.
C. No litigation or proceedings are presently pending or threatened against Maytag
Services.
D. No provision of this Agreement contravenes or conflicts with the authority under
which Maytag Services is doing business or with the provisions of any existing indenture or
agreement of Maytag Services.
E. Maytag Services possesses the legal authority to enter into this Agreement and accept
payments hereunder and has taken all necessary action to authorize such acceptance.
F. Maytag Services is not in default on any obligations, covenants, or conditions
contained in any bond, debenture, note, or other evidence of indebtedness or any mortgages
or collateral instruments securing the same.
G. This Agreement will not violate any provision of law or result in any breach or
constitute a default under any agreement to which Maytag Services is presently a party, or
result in the creation of any lien, charge or encumbrance upon any of its property or its assets
other than as specifically may be allowed under this Agreement.
H. No tax deficiency liability has been asserted against Maytag Services by the Internal
Revenue Service or any other taxing authority and Maytag Services knows of no basis for
any such deficiency assessment. Maytag Services shall promptly and completely file all
required tax returns and has paid all taxes which have or may become due.
I. This Agreement will not violate any provision of law or result in any breach or
constitute a default under any agreement to which House Values is presently a party, or result
in the creation of any lien, charge or encumbrance upon any of its property or its assets other
than as specifically may be allowed under this Agreement.
J. As of the effective date of this Agreement, House Values knows of no litigation or
proceedings, nor is in default on any obligations, covenants or conditions on any financing
transaction, nor has any tax deficiency or liability, that will interfere with House Values
obligations under this Agreement
19. No Insurance. It is understood the City does not maintain liability insurance for Maytag
Services and/or its employees, agents, officers, and subcontractors.
20. Liability Insurance.
A. On or before the effective date of this Agreement, Maytag Services shall provide the
City with a certificate of insurance as proof of commercial liability insurance with a
minimum liability hmit of Two Million Dollars ($2,000,000.00) per occurrence combined
single limit bodily injury and property damage, and Four Million Dollars ($4,000,000.00)
general aggregate. The certificate shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in effect. Said
policy shall be in effect for the duration of this Agreement. The policy shall name the City,
its elected officials, officers, agents and employees as additional insureds d d The insurance
shall be with an insurance company rated A -VII or higher in Best's Guide and admitted in the
State of Washington.
Page 6 of 9
21. Workers Compensation. Maytag Services agrees to provide industrial insurance coverage for
all of its workers and to provide the City with evidence of such coverage.
22. Indemnification and Hold Harmless. Maytag Services agrees to protect, defend, indemnify,
and hold harmless the City, its elected officials, officers, employees and agents from any and all
claims, demands, losses, liens, liabilities, penalties, fines, lawsuits, and other proceedings and all
judgments, awards, costs and expenses (including reasonable attorneys' fees and disbursements)
arising out of, relating to, or resulting from Maytag Services' performance and/or nonperfoihiance
related to this Agreement.
In the event that both Maytag Services and the City are negligent, Maytag Services'liability for
indemnification of the City shall be limited to the contributory negligence for any resulting suits,
actions, claims, liability, damages, judgments, costs and expenses (including reasonable attorney's
fees) that can be apportioned to Maytag Services, its officers, employees, agents, and/or
subcontractors.
Nothing contained in this section of this Agreement shall be construed to create a liability or a right
of indemnification in any third party.
This section of the Agreement shall survive the term or expiration of this Agreement and shall be
binding on the parties to this Agreement.
23. Assignment. This Agreement, or any interest herein, or claim hereunder, shall not be assigned or
transferred in whole or in part by Maytag Services to any other person or entity without the prior
written consent of the City. In the event that such prior written consent to an assignment is granted,
then the assignee shall assume all duties, obligations, and liabilities of Maytag Services stated herein.
24. Termination. This Agreement may be terminated as follows:
A. Either party may terminate this Agreement upon thirty (30) calendar days written
notice to the other party in the event that said other party is in default and fails to cure such
default within that thirty (30) day period, or such longer period as provided by the non -
defaulting party. The notice of termination shall state the reasons therefore and the effective
date of the termination.
B. Either party may terminate this Agreement without cause upon ninety (90) calendar
days written notice to the other party provided that no such termination shall operate to
remove Maytag Services's right to reimbursement for already accomplished but
uncompensated training hereunder.
C. In the event that the funding contemplated herein is no longer available, the City may
terminate this Agreement upon ten (10) calendar days written notice to Maytag Services.
25. Conflict of Interest. Maytag Services represents that it, its members, officers, employees,
and/or agents do not have any interest, direct or indirect, and shall not hereafter acquire any interest,
direct or indirect, which would conflict in any manner or degree with the performance of this
Agreement. Maytag Services further covenants that it will not hire anyone or any entity having such
a conflict of interest during the performance of this Agreement.
26. Non -Waiver. The waiver of either the City or Maytag Services of the breach of any provision of
this Agreement by the other party shall not operate and/or be construed as a waiver of any subsequent
breach by either party or prevent either party from enforcing such provision or the remaining terms
of this Agreement.
Page 7 of 9
27. Survival. Any provision of this Agreement that imposes an obligation after termination or
expiration of this Agreement shall survive the term or expiration of this Agreement and shall be
binding on the parties to this Agreement.
28. Severability. It is understood and agreed by the parties hereto that if any part, term, or provision
of this Agreement is held by the courts to be illegal, the validity of the remaining provisions shall not
be affected, and the rights and obligations of the parties shall be construed and enforced as if the
Agreement did not contain the particular provision held to be invalid. If it should appear that any
provision hereof is in conflict with any statutory and/or regulatory provision of the United States or
the State of Washington, said provision which may conflict therewith shall be deemed modified to
confoini to such statutory and/or regulatory provision.
29. Integration and Modification. This Agreement sets forth all of the terms, conditions, and
agreements of the parties relative to the subject matter hereof and supersedes any and all such foinier
agreements which are hereby declared terminated and of no further force and effect upon the
execution and delivery hereof. There are no terms, conditions, or agreements with respect thereto,
except as herein provided and no amendment or modification of this Agreement shall be effective
unless reduced to writing and executed by the parties.
30. Notices. Unless stated otherwise herein, all notices and demands shall be in writing and sent to
the parties to their addresses as follows:
TO CITY:
TO MAYTAG SERVICES:
with a copy to:
Bill Cook
Director of Community and Economic Development
City Hall—Second Floor
129 North Second Street
Yakima, WA 98901
Maytag Services -Yakima, LLC
Maytag Services -
or to such other addresses as the parties may hereafter designate in writing. Notices and/or demands
shall be sent by registered or certified mail, postage prepaid, or hand delivered. Such notices shall be
deemed effective when mailed or hand delivered at the addresses specified above.
31. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington.
32. Venue. The venue for any action to enforce or interpret this Agreement shall lie in the Superior
Court of Washington for Yakima County, Washington.
33. Authority. The person executing this Agreement on behalf of Maytag Services represents and
warrants that he or she has been fully authorized by Maytag Services to execute this Agreement on
its behalf and to legally bind Maytag Services to all the tennis, perfoimances and provisions of this
Page 8 of 9
Agreement. The person executing this Agreement on behalf of the City represents and warrants that
he or she has been fully authorized by the City to execute this Agreement on its behalf and to legally
bind the City to all the terms, performances and provisions of this Agreement.
EXECUTED by the City this 13day of EXECUTED by Maytag Services
, 2005.
CITY OF YAKIMA
By:
R. A. Zais, Jry Manager
ATTEST:
Karen S. Roberts, City Clerk
City Contract No. 0?005-/R 7
Resolution No. R- g,,005-60
this day of , 2005.
MAY T AG SERVICES
By:
Title:
Page 9 of 9
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: April 19, 2005
ITEM TITLE: Authorize the City Manager to execute an agreement to provide a
CDBG grant of up to $55,000 to Maytag Services, a business unit of
Maytag Corporation, to open a consumer contact center in the
Yakima Renewal Community.
SUBMITTED BY: Bill Cook, Community and Economic Development
CONTACT: Bill Cook 575-6227
Michael Morales, 575-3533
EXPLANATION:
Maytag Services, a business unit of Newton, Iowa -based Maytag Corporation, will be expanding
its consumer contact center operations, with plans to open a new call center location in Yakima.
The opening of the consumer contact center in Yakima will help to support Maytag's overall
growth initiatives, allowing Maytag to expand all -brand repair service into several additional
markets, particularly those located within the western part of the United States.
The City was approached by Maytag Services to assist the company in locating its consumer
contact center to Yakima. The company is seeking financial assistance from the City's
Community Development Block Grant (CDBG) program to offset their start-up costs, including
recruitment and training of their workforce. This proposed assistance package consists of a
$55,000 grant commitment, payable upon the company meeting performance goals related to job
creation and payroll over the next 24 months. The agreement will also be for 24 months, with a
provision that requires repayment of grant funds for failure to meet performance goals, or if the
business closes within that time.
CONTINUED ON NEXT PAGE
Resolution Ordinance Contract X Other:
Funding Source: U.S. Department of Housing and Urban Development, CDBG
Approval for Submittal:,
City/tanager
STAFF RECOMMENDATION: Staff recommends approval of the agreement
BOARD RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-60
1
Maytag Services plans to phase-in consumer contact center operations in Yakima, with an
anticipated target launch later in the second quarter of this year. The new Yakima consumer
contact center will have the capacity to staff up to 200 employees.
Maytag has committed to create 200 jobs and to maintain an office in Yakima's Renewal
Community for a minimum of two years. Attached is a copy of the draft agreement between the
City and Maytag Services. The project will be reviewed by the Council Economic Development
Committee at its meeting on Monday, April 18, 2005. A recommendation will be provided to
council at the meeting Tuesday.
2