HomeMy WebLinkAboutR-2007-094 Whirlpool Corporation CDBG Grant AgreementRESOLUTION NO. R-2007-94
A RESOLUTION authorizing the City Manager of the City of Yakima to execute a CDBG
economic development project grant Agreement with Whirlpool
Corporation, to assist with the transformation of a former Maytag
Customer Service Call Center into a virtual eXperience center in the City
of Yakima's Renewal Community Area; as well as authorizing the
amendment of the CDBG Annual Action Plan to provide the necessary
funding to meet the requirements of this Agreement.
WHEREAS, Whirlpool Corporation, is a private, for-profit provider of customer services,
claims management and sales fulfillment functions; and
WHEREAS, Whirlpool Corporation is interested in transforming the former Maytag
Customer Service Call Center located in the Yakima Community Development Block Grant
("CDBG") target area into a virtual eXperience center and maintaining the new center for at least
three (3) 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 1 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 herein is
necessary and appropriate to ensure that Whirlpool Corporation transforms and maintains 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
WHEREAS, accordingly, the City wants to encourage Whirlpool Corporation 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 Whirlpool Corporation through a
performance grant of not more than One Hundred Thirty Five Thousand Dollars ($135,000.00)
over the course of three years according to the terms and conditions of the economic
development project agreement attached hereto and incorporated herein by this reference; 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 Whirlpool
Corporation and to amend the Community Development Block Grant Annual Action Plan to
provide the funds set forth therein, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Council hereby authorizes the amendment of the Community Development
Block Grant Annual Action Plan to provide funding in the amount of not more than One Hundred
Thirty Five Thousand Dollars ($135,000.00) over the course of three years for the funding
necessary to fulfill the requirements of the Agreement Between The City Of Yakima And
Whirlpool Corporation, attached hereto and incorporated herein by this reference; and further
authorizes and directs the City Manager of the City of Yakima to execute said CDBG economic
development project grant agreement with Whirlpool Corporation to assist with the
establishment of a virtual eXperience center in the City of Yakima's Renewal Community Area.
ADOPTED BY THE CITY COUNCIL this 3rd day of July, 2007.
if -0061- 11
AGREEMENT BETWEEN THE CITY OF YAKIMA
AND WHIRLPOOL CORPORATION
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 Whirlpool Corporation, a Delaware corporation, having a
principal place of business at 2000 North M-63, Benton Harbor, Michigan 49022, (hereinafter
"Whirlpool").
WHEREAS, Whirlpool is a private, for-profit provider of customer service, claims
management, and sale fulfillment functions; and
WHEREAS, Whirlpool is interested in transforming the former Maytag Customer Service
Call Center located in the Yakima Community Development Block Grant ("CDBG") target area,
into a virtual eXperience center and maintaining the new center for at least three (3) years; and
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; and
WHEREAS, federal regulations goveming 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 Whirlpool transforms and maintains their center in the
City's CDBG target area; and
WHEREAS, Whirlpool's plans for their call center in the City's CDBG target area would
provide substantial appropriate public benefits to the City, particularly by creating new jobs and
increasing the educational level and skill level of their Yakima workforce; and
WHEREAS, accordingly, the City wants to encourage Whirlpool 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 Whirlpool through a performance grant of not more than One
Hundred Thirty-five Thousand Dollars ($135,000) over a three (3) year term, 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 Whirlpool as follows:
1 Term of Agreement. This Agreement shall commence upon execution by the parties
hereto and shall terminate at 11:59 p.m., July 31, 2010, unless the Agreement is earlier
terminated by either party in accordance with the terms of this Agreement.
2. Definitions. Where used in the 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 August 1, at 12:01 a.m. to July 31, at 11:59 p.m. during
the term of this Agreement. The "first contract year" shall run from 12:01 a.m.,
August 1, 2007, to 11:59 p.m., July 31, 2008. The "second contract year" shall
run from 12:01 a.m., August 1, 2008, to 11:59 p.m., July 31, 2009. The "third
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contract year" shall run from 12:01 a.m., August 1, 2009, to 11:59 p.m., July 31,
2010.
B. "Full time equivalent" ("FTE") is 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. No later than August 1, 2007, Whirlpool shall begin the transformation of
the former Maytag call center located in the City of Yakima's CDBG target area into a
Whirlpool virtual eXperience center. Whirlpool shall continually maintain that center in
the City of Yakima's CDBG target area for a period of not less than three (3) years. The
center shall include a workforce providing customer service, claims management, and
sales fulfillment functions. In addition, Whirlpool shall be subject to the following
requirements:
A. By July 31, 2008, Whirlpool shall employ a Yakima workforce of at least two
hundred and fifty (250) full time equivalent ("FTE") employees, and shall maintain
a combined annualized payroll not including company benefit package, of at least
Six Million Four Hundred Thousand ($6,400,000) dollars for the term of this
Agreement.
B. The average total hourly compensation rate for Whirlpool's Yakima workforce
shall be at least Thirteen Dollars and Sixteen Cents ($13.16) per hour throughout
the term of the Agreement. FTE employees shall receive a company benefit
cafeteria package including, but not limited to, health insurance, vacation time,
and sick leave.
C. Whirlpool shall establish one or more training programs to provide upskill training
to agents at their downtown Yakima center, during the term of this Agreement.
Such training programs may be established in conjunction with local educational
and job training institutions such as the Yakima Valley Community College, the
Tri -Valley Workforce Council, Heritage College, and/or Central Washington
University in Ellensburg, Washington.
D. Whirlpool 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.
E. Whirlpool shall make employment decisions in a manner that applies equal
opportunity principles, and Whirlpool affirms, 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 Whirlpool of not more than
Forty-five Thousand Dollars ($45,000) in any one year, and One Hundred Thirty-five
Thousand Dollars($135,000) over a three year period. All funds granted to Whirlpool by
the City shall be for the purpose of reimbursement of expenses incurred to train
Whirlpool's Yakima workforce and shall be conditioned on Whirlpool's compliance with
the terms and conditions of this Agreement. The performance grant shall be paikk as
follows:
A. If, at the end of each quarter, Whirlpool has demonstrated reasonable progress
toward fulfilling the terms and conditions of the Agreement, including employing a
workforce of at least two hundred fifty (250) FTE's in the Yakima Renewal
Community by the end of the first contract year who are compensated at the
average total hourly compensation rate of $13.16 per hour as provided 'in
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paragraph 3 A, above, and in good standing with applicable local and state
business requirements, then Whirlpool shall be in good standing for compliance
with the agreement. .
B. In no event shall any grant payment exceed Forty-five Thousand Dollars
($45,000) in one contract year or One Hundred Thirty-five Thousand Dollars
($135,000) in total.
C. Grant payments, if any, shall be made within forty-five (45) days after the City
receives documentation enabling it to verify Whirlpool's 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
Whirlpool 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. Whirlpool 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. Performance grant payments shall be provided to Whirlpool only to reimburse it
for CDBG-eligible expenses, including employee recruitment and training. The
City shall provide Whirlpool 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 Whirlpool. Such invoices and supporting documentation shall
demonstrate the eligibility of the expenses in question.
C. If the City requests data from Whirlpool concerning an action prior to Whirlpool
taking such action, the City is not liable for any cost incurred therefrom unless
and until Whirlpool provides such data and is then advised to proceed by the
City.
D. Performance grant payments shall not be available to assist Whirlpool 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 Whirlpool's 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 Whirlpool closes its Yakima virtual eXperience center
before July 31, 2010, Whirlpool shall reimburse the City for any and all grant funds
received from the City. If Whirlpool is not in compliance with paragraph 3.A., 3.B., or
3.C., the parties agree that the City's sole recourse is to not make performance grants or
payments under this Agreement.
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 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.
B. Whirlpool shall have all applicable and necessary permits, licenses and
approvals of any federal, state, and local government or governmental authority.
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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. Whirlpool shall comply with all such additional
requirements.
10. Maintenance and Inspection of Records. Whirlpool 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 the Agreement. In the event that any audit or
inspection identifies any discrepancy, Whirlpool 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 the Agreement for
provision of any goods or services or for payment of any monies to any party other than
Whirlpool.
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 of-
monitoring
rmonitoring by the City, the United States Department of Housing and Urban
Development, or any other federal agency, Whirlpool 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. Quarterly Reporting. During the term of this Agreement, Whirlpool shall submit a written
report to the City within twenty (20) days after the end of each quarter of each contract
year that demonstrates Whirlpool's establishment and/or maintenance of the workforce
and operation described in this Agreement. Whirlpool's reports to the City shall describe
the number and type of jobs, FTE's, and employees in its Yakima workforce, employee
wages as a whole and as distributed among different positions, employee training
programs and total training expenses during each contract year, and other activities
relevant to this Agreement. Whirlpool 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, Whirlpool shall promptly supply copies of its audited financial
statements.
15. Compliance with Law. Whirlpool 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);
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• 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, 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;
• Uniform 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 Reform 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 performance of this Agreement, Whirlpool 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 forms of compensation, selection for training, and the provision of services
under this Agreement. Whirlpool shall also comply with all applicable equal employment
opportunity, affirmative action, and non-discrimination laws and regulations.
17. Status of Whirlpool: Whirlpool and the City understand and expresslyagree. that
Whirlpool is an independent contractor in the performance of each and every part of this
Agreement. Whirlpool, 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, Whirlpool, 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 Whirlpool and the City.
18. Representations and Warranties. Whirlpool represents and warrants that:
A. All information, reports and data fumished to the City are complete and accurate.
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B. All financial statements furnished to the City fairly reflect the financial condition of
Whirlpool and there has been no material change in the financial condition of
Whirlpool since said statements.
C. No litigation or proceedings are presently pending or threatened against
Whirlpool.
D. No provision of this Agreement contravenes or conflicts with the authority under
which Whirlpool is doing business or with the provisions of any existing indenture
or agreement of Whirlpool.
E. Whirlpool possesses the legal authority to enter into this Agreement and accept
payments hereunder and has taken all necessary action to authorize such
acceptance.
F. Whirlpool is not in default on any obligations, covenants, or conditions contained
in any bond, debenture, note or other evidence of indebtedness or any mortgage
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 Whirlpool 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 Whirlpool by the Internal
Revenue Service or any other taxing authority and Whirlpool knows of no basis
for any such deficiency assessment. Whirlpool 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 Whirlpool 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, Whirlpool knows of no litigation or
proceedings, nor is in default on any obligations. covenants or conditions on any
financial transaction, nor has any tax deficiency or liability, that will interfere with
Whirlpool's obligations under this Agreement.
19. No Insurance. It is understood the City does not maintain liability insurance for Whirlpool
and/or its employees, agents, officers, and subcontractors.
20. Liability Insurance.
A. On or before the effective date of this Agreement, Whirlpool shall provide the City
with a certificate of insurance as proof of commercial liability insurance with a
minimum liability limit 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 insured. The insurance shall be with an
insurance company rate A-VII or higher in Best's Guide and admitted in the State
of Washington.
21 Workers Compensation. Whirlpool agrees to provide industrial insurance coverage for all
of its workers and to provide the City with evidence of such coverage.
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22. Indemnification and Hold Harmless. Whirlpool 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 Whirlpool's
performance and/or nonperformance related to this agreement.
In the event that both Whirlpool and the City are negligent, Whirlpool's 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).
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 the Agreement.
23. Assignment. This Agreement, or any interest herein, or claim hereunder, shall not be
assigned or transferred in whole or in part by Whirlpool 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 Whirlpool 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 Whirlpool'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
Whirlpool.
25. Conflict of Interest. Whirlpool represents that it, its members; officer, 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. Whirlpool 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 Whirlpool 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.
27. Survival. Any provision of this Agreement that imposes an obligation after termination or
expiration of the 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
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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
conform 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 former 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
modifications of this Agreement shall be effective 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 WHIRLPOOL:
With a copy to:
Bill Cook
Director of Community and Economic Development
City Hall — Second Floor
129 North Second Street
Yakima, WA 98901
Robert C. Cunningham
Whirlpool Corporation
399 East Yakima Avenue
Suite 200
Yakima, WA 98901
Whirlpool Corporation
General Counsel
2000 North M-63
Benton Harbor, MI 49022
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.
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 Whirlpool represents and
warrants that he or she has been fully authorized by Whirlpool to execute this
Agreement on its behalf and to legally bind Whirlpool to all the terms, performances and
provisions of this agreement. The person executing this Agreement on behalf of the City
represents and wan -ants 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.
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EXECUTED by the City of Yakima EXECUTED by Whirlpool Corporation
this L6d day of diALy , 2007. this WO day of 31z'1 , 2007.
CITY OF YAKIMA
By:
R.A. Zais, r. CitylvIanager
City Contract No.
Resolution No. R-02007- 9y
9
WHIRLPOOL CORPORATION
By: (--?&K
Titlef I, 51)/4- /'1�r, ¢r;/C'
•
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. G
For Meeting Of: July 3, 2007
Public Hearing to consider amending the 2007 Community Development
Block Grant (CDBG) Annual Action Plan to provide a CDBG grant to the
Whirlpool Corporation.
SUBMITTED BY: Bill Cook, Community and Economic Development
CONTACT: Bill Cook, 575-6113
SUMMARY EXPLANATION:
A public hearing will be held before the City Council to receive comments on a proposed
$135,000 (not to exceed $45,000 per year for three years) economic development grant to the
Whirlpool Corporation to help cover the cost of "up -skill" training for their Yakima workforce.
Whirlpool intends to transform the former Maytag call center, in downtown Yakima, into a virtual
eXperience Center, similar to Whirlpool centers located in Michigan and Tennessee. The
eXperience center will handle "multi -type calls and higher skill calls" than the former Maytag
center (purchased by Whirlpool in 2006).
By mid -2008 Whirlpool plans to have a staff of 250 full-time employees in Yakima, up from the
200 committed to by Maytag. The handling of the more complicated call types will require
additional training for the Yakima workforce. This will lead to an increase in training costs,
expansion of the training facilities, and higher wages for the employees of the Yakima facility.
In return for the financial assistance provided by the City, Whirlpool has committed to increasing
the size of their workforce, increasing their Yakima payroll by approximately $1,900,000 over
the next twelve months, and spending approximately $100,000 per year on employee up -skill
training.
Adoption of the associated Resolution would authorize the amendment of the Community
Development Block Grant Annual Action Plan to accommodate this expenditure as well as
authorizing the City Manager to execute an agreement to provide a CDBG grant of up to
$135,000 (not to exceed $45,000 per year for three years) with Whirlpool Corporation.
Resolution X Ordinance _ Contract X Other
Funding Source: U.S. De ment of Housing and Urban Development
Approval for Submittal: V
City anagen
STAFF RECOMMENDATION:
BOARD RECOMMENDATION:
COUNCIL ACTION:
Hold Public Hearing and adopt Resolution authorizing the
City Manager to execute an agreement with Whirlpool
Resolution adopted. RESOLUTION NO. R-2007-94