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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 1 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 2 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. 3 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); 4 • 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. 5 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. 6 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 7 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. 8 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