Document jyEogjGz1YxwN878XbnEqzap9
Interoffice M io
Hoecnst ueianese
Date/April 17, 1989
T0: E. H. Munoz Dept/Location: Chatham
From-
Dept/Location:
D. G. Pausky DGP-95-89 Bishop
Subiect: MAINTENANCE SERVICES CONTRACT AT BISHOP, TEXAS
Bishop requests approval for a cost plus percentage markup maintenance and selective services contract for the Bishop Plant to be awarded to Arthur Brothers, Inc. The contract is valued at $6 million and the term is for nine (9) months. May 1, .1989 to January 31, 1990. A contract abstract is attached for approval signatures.
Arthur Brothers, Inc. (ABI) has held the-maintenance contract at the Bishop, Texas plant for over forty years. They have provided contract labor for plant maintenance, warehousing, construction, and bagging. The current contract expires on April 30, 1989.
A Southwest Region Task Force composed of key maintenance and purchasing personnel from the Bishop, Pampa, Clear Lake, Bayport, Bay City, Dallas, and Corpus Christi Technical Center sites evaluated seven (7) potential contractors of maintenance services. Of these, three (3) were selected to prepare formal bid proposals (Arthur Brothers, Inc., Mundy Company, and Fluor Daniels). The Task Force recommended a three year regional contract be awarded to.the Mundy Company over all other contractors for all sites. With the exception of Bishop, the remaining Hoechst Celanese Texas locations are accepting the Task Force recommendation of Mundy Company.
Bishop and EPD Management are sensitive to the termination of such a long term relationship with ABI (a Kingsville owned business), and the potential negative reaction in the local community. Bishop recognizes the relative weaknesses of ABI among maintenance contractors, but believes that it is appropriate to allow ABI an additional opportunity to improve upon its performance and value as our business partner before terminating such a long term relationship'. Areas of performance deficiency and expecta tions of improvements will be identified for ABI as' a supplement to the actual contract.
If ABI*s performance as a maintenance contractor at Bishop does not show satisfactory progress as outlined in the supplement, Bishop will reconsider its position. The Bishop plant can be added to the Mundy Company contract utilized at all other Texas Plants at any time, up to January 31, 1990.
DGP:CH
cc: W. M. Beaty - Chatham J. J. Conway
18911
Hoechst
P. O. BOX 792
TELEPHONE 592-6416
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE, TEXAS 78363
AFS-21-89
February 27,1989
Hoechst Celanese Chemical Group 1250 W. Mockingbird Lane P.0. Box 569320 Dallas, Tx. 75356-9320
Attention: Mr. Rogers Shandley
Re: Invitation to submit proposal for a Maintenance and Construction Labor Contract TRS-012-89 February 8,
i * Dear Rogers:
1989
Arthur Brothers, Incorporated (ABI), appreciates the opportunity to bid on the referenced contract and is pleased to submit the following proposals for Bishop, Bay City, Corpus Christ! and Pampa.
Submittal "A"
1. Classifications, Pay Rates and Pay Practices
See Attached Exhibits
Exhibit A. Bishop Classifications, Pay Rates and Pay Practices
Exhibit B. Bay City Classifications, Pay Rates and Pay Practices
Exhibit C. Pampa Classifications, Pay Rates and Pay Practices
Exhibit D. Corpus Christi Classifications , Pay Rates and Pay Practices
16912
Bishop EXHIBIT "A"
Effective date - May 1, 1989
Page 1 of 3
Classifications.. Eaz Eaijas. and Ray. Practic.es.
A. Salaries
Range.
Superintendent General Foreman Foreman
40,000/54,000 31,500/45,000 26,000/36,500
B. Standard Hourly Rates
1. General
Administrative Assistant Technician
9.00 - 11.00 12.00 - 20.00
,j Mechanic A 1 Mechanic B
Mechanic C Mechanic D
11.50 10.90 10.30
9.90
Utility A Utility B Utility C
9.45 9.07 8.69
Helper A Helper B Helper C
8.32 7.94 7.56
Utility Service A Utility Service B Utility Service C
7.09 6.62 6.33
Service A Service B Service C
5.95 5.67 5.29
Clerical Field Buyer Leadman Temporary Foreman
3.50 - 9.50 9.00 - 11.50 .50 above craft supervised 1.00 above craft supervised
-116913
Page 2 of 3
Bishop
EXHIBIT "A"
Effective Date - May 1, 1989
2. Warehouse Rotating Shift.
Utility Service A Utility Service B Utility Service C
7.42 6.95 6.66
Service A Service B Service C
6.28 6.00 5.62
Si-- Day
7.09 6.62 6.33
5.95 5.67 5.29
Si-- E-vening
7.42 6.95 6.66
6.28 6.00 5.62
3. Engineering. '
*
Engineer Draftsman Estimator Planner/Scheduler
12.00 - 30.00 6.00 - 20.00 6.00 - 20.00 6.00 - 20.00
C. Premium Hourly, RatSB
Eremium Hourly Rates shall be paid at the rate of One and one-half (1-1/2) the employees Standard Hourly Rates. Premium time shall be defined as all hours worked in excess of eight hours (8) in a work day or in excess of forty hours (40) hours in
a 'work week.
D. Pay. Practices
(1) Holiday, Sick Leave, Vacation and Jury Duty.
The following shall be recognized hereunder
contractor"s Holidays.
July 4
Thanksgiving
Labor DAy
Christmas
a
(a) Hourly Employees - Company shall pay Contractor for any such holiday at 1-1/2 times the standard time pay rates however, Contractor shall not be paid for hours not worked, such as any illness, vacation or jury- duty, for any of Contractor``s hourly employees except with the written approval of the Company representative.
-216914
Page 3 of 3
Bishop EXHIBIT " A"
Effective May 1, 1989
(b) Salaried Employees - Company shall pay Contractor
for all salaried employees at a weekly rate of 1/52 their annual salary except for sick leave which extends beyond three (3) days, all vacations and the four recognized Contractor
holidays.
(2 ) Call. Qui Pay
Company shall pay contractor for work on a "call out" basis at Company's request, outside the
i Contractor's employees regular scheduled shift at 1 1-1/2 times standard rate for hours actually worked;
however, if work extends into regular hours, then
call out pay applies only to hours worked outside
the regular scheduled shift. If Contractor"s
employee called out works less the four (4) hours
and hours worked do not extend into the regular
shift. Contractor will be reimbursed for four (4)-
houra at the standard rat* or for hours actually
1 ~ 1/% i-iwera +vH$r fi-h&ftfl&P'd is greater.
tjhi-Grh&'V&P'
) Shaa Ha E.ay.
Company shall pay Contractor two (2) hours "show up" pay, at the standard rate, for any contractor employee who reports for his regular scheduled shift but is prohibited from working for any cause beyond Contractor's control.
-3- 16915
Class Descriptions and Qualifications
Mechanic
Skilled, experienced, capable and responsible to perform all phases of one or more of the following crafts: Instrument Mechanic, Electrician, Machinist, Pipe Welder (carbon & alloys). Pipefitter, Rigger, Boilermaker, Equipment Operator (heavy), Diesel engine mechanics,Insulators, Painter, Carpenter and Iron Workers
Mechanic. IL.
Gradient of Mechanic A. Skilled, experienced, capable and responsible to perform all phases of one or more of the following crafts: Carpenter (rough), Painter (brush), Pipe Welder (carbon), Iron Worker/Welder (Structural),Iron Worker (rebar).
Mechanic L_
iGradient of Mechanic A & B. Skilled, capable, and responsible to * perform as craftsman with moderate experience.
Mechanic D.
Gradient of Mechanic A,B & C. Capable and responsible to perform as craftsman with minimal experience.
Utility L
Positions demanding considerable skill and responsibility i.e.. Tool room attendant, Water blaster. Warehouse receiving clerk, Equipment operator (light). Dispatcher, Gauger, Etc.
Utility. E
Gradient of Utility Man A.
Utility C.
Gradient of Utility A & B
Helper A.JL. & C.
Assistant to and under direction of Mechanic. Position demands considerable skill and responsibility. Unless otherwise qualified helpers start as Class C and earn promotions through individual merit.
-1- 16916
Class Descriptions and Qualifications Page 2 of 2
Utility Service L
Semi-skilled positions demanding moderate responsibility, i.e.. Warehouse delivery, Truck Driver (light), Tractor mower, Metal salvage, Fuel oil loader, Warehouse packaging, drumming, etc. May also be used as assistant to other classifications.
Utility. Service E
Gradient of Dtility Service A
Utility Service C.
Gradient of Utility Service A & B
Service >
&. C.
bnskilled labor. Unless otherwise qualified Service men start at
Class C and earn promotions thru individual merit. May be used as
assistant to other classifications.
Engineering
Due to the wide range in education, expertise and experience in these positions, rates are set on an individual basis, with approval of company representative.
Technician
Special skills not attainable under other classifications. For emergency use only, requiring approval of ABI main office and HCC company representative
All positions are filled at the lowest possible classifications consistent with manpower availability.
-216917
AFS-21-89 page 2 of 12
Submittal "B"
1. Rental rates for all tools and equipment owned by Contractor shall not exceed the existing local standard rate's or exceed 85% of the latest Associated Equipment Distributor's listing, whichever is lower.
2. If HCC chooses to supply all tools including those of a value of $400 or less, a percentage of .5% shall be deducted from the overhead fee of Submittal "C".
3. If HCC choo'ses to supply all safety glasses, goggles >hard hats and I.D. badges, a percentage fee of .2% shall be ^deducted from the overhead fee of Submittal "C" .
4. It is supplies including hazardous materials.
understood HCC all personal
will supply all expendable protection equipment for
-216918
AFS-21-89 Page 3 of 12
SUBMITTAL "CM
Having examined the bid documents which consist of the sample contract, the written needs and specifications of each location included in the proposal, insurance specifications, and having become familiar with each location to the extent that we can submit a proposal, we submit the following proposals which are to be used in conjunction with submittals A and B.
Percentage Fee (Markup), for Maintenance, Construction and Engineering Labor Cost6.
A. 22% on the straight time portion of actual wages and salaries chargeable to the work which.covers all related costs such as FICA, employee benefits, and required insurance. State and Federal Unemployment taxes are excluded and shall be accrued and ibilled to Company at cost at the end of each quarter. 1 B. 7.5% oh the premium portion of overtime actual wages and salaries chargeable to the work which covers all payroll related (FICA) costs.
C. Sliding Scale Fee of:
1. 8% on the straight time portion of actual wages and salaries chargeable to the work up to $8,000,000.00 to cover profit, overhead and other unidentified costs.
2. 7% on the straight time portion of actual wages and salaries chargeable to the work from 3,000,001.00 to 12,000,000.00 to cover profit, overhead and other unidentified costs.
3. 6% on the straight time portion of actual wages and salaries chargeable to the work from 12,000,001.00 and up, to cover profit, overhead and other unidentified costs.
D. 1% on the premium portion of overtime actual wages and ' salaries chargeable to the work, to cover profit, overhead and other unidentified costs.
E.- H. No Submittal ( Engineering covered in A-D)
I. 2% on materials and services purchased by Contractor for the work on behalf of the owner.
-316919
AFS-21-89 Page 4 of 12
J. 2% on equipment rented by Contractor for the work on behalf of the owner.
K. A charge of .24 cents per mile will be charged for all vehicles used by the Contractor in the performance of work on behalf of the owner. Transportation of employees to and from the work site is not a reimbursable cost.
L. Breakdown of the fee allowance for benefits as shown in A.
1. 2.0% Group Health Insurance 2. 3.3% Holiday, Sick and Vacation pay 3. .5% Safety Awareness Activities i 4. .5% Hourly and Supervisory training * 5. .0% Salaried benefits other than above
M. .15% Fee Allowance for costs to cover random and incidental testing as required by Contractors" Substance Abuse Program.
Summary of all possible Fee Allowances
2.0% 3.3% _ .5%
.5% .0% .5% .1%
badges .15%
Group Health Insurance Holiday, Sick and Vacation Pay Safety Awareness Activities Hourly &Supervisory Training Salaried Benefits other than above Small Tools of a value of $400 or less Safety Glasses, goggles, hard hats,
and I.D.
Drug Testing
7.05%
Total of all Possible Fee Allowances
-416920
AFS-21-89 Page 5 of 12
Submittal "D"
Employee Moves
Ref: Contract Article 10 Para, d
Key Long Term Employees
Actual moving expenses to job site of Contractor"s long term employees shall be limited to an allowance of, not to exceed packing and moving, 15,000 lbs of household goods only, at existing local standard rates and not to exceed rates set by the Texas Railroad Commission. Employee shall receive Three (3) days leave of absence at his regular salary for such move. i 1 Key Short Term Employees
Travel expenses of Contractor"s key 6hort term employees shall be limited to travel expenses not the exceed actual mileage to and from Contractors Main office to the job site at the rate of .24 cents per mile. Travel time (hourly employees only), shall be limited to one hour at the standard rate of pay for each fifty (50) miles traveled to and from Contractors Main office and the job site.
Per diem of fifty (50.00) dollars 6hall be allowed for each employee whose work requires they stay overnight away from their principle residence.
All moving, travel -and per diem expenses shall have prior approval of the company representative.
Long term employee shall be defined as one who becomes a part of the ongoing operation, whereas short term 6hall be those brought in for turn-arounds or other projects of specific duration.
-516321
ASF-21-89 Page 6 of 12
Submittal ME"
Safety Awareness Activities
1. Quarterly Safety audits by ABI Safety Director and Insurance Safety Engineer
(A) To insure hazards communication compliance (B) To perform simulated OSHA inspection (C) To insure minimum legal requirements for all
Environmental, Health, and Safety procedures and equipment.
2. Monthly newsletter from ABI Safety Director containing:
(A) Narratives of accidents and/or near-accidents of i the previous month i (B) Current ABI statistics
(C) Current OSHA matters (D) Safety information Articles (C) Comments and Views from the field
3. Semi-annual field Safety Coordinator Training Seminars
(A) OSHA and EPA matters (B) Improving Safety Awareness and Training
4. Monthly Field Safety Meetings
(A) General Safety and Health Information (B) Specific developments in Safety and Health (C) Targeted for Safety and Health Awareness (D) Meeting involvement: All Personnel
5. Weekly Foreman/crew Safety Meeting
(A) Conducted by Foreman with crew (B) Safety meeting outlines provided from Home Office. (C) Material is previewed and discussed with management
supervision and Safety Coordinator.
6. Safety Awards and Incentives
(A) Determined by competition between locations (B) Include plaques and individual prizes ( caps, belt
buckles, windbreaker, coffee mugs, etc.)
7. Safety Statistics (Attached)
-616922
OSHA RECORDABLE SAFETY RECORD
LAST THREE YEARS
O.S.H.A. recordable accidents included are all injuries and illnesses with and without lost workdays or restricted work activity. Recordable accident rate computed as follows;
fLost time accidents + Loggahle accidents') x 200,000 = Recordable
Actual ManhourB Worked'
Rate
1986 .
1987
1988
Bishop
12x2DJJk= 4.3 563,406
21XZ.Q,0J5L= 9.3 449,251
22x200k= 7.0
628,776
Bay City
i 1
1x2.0P=. . 10.9 128,101
12x2QQk= 15.2 157,770
Zx2D-Q.k= -7.9 177,650
. Pampa
Sx2QQ.k= 242,441
7.4
19x2Q0k=. 13.4 283,423
37x200k= 11. 9 622,910
Corpus
ChriBti
17x2Q-Qk= 23.1 146,849
6x20Qk= 8.8 136,286
7x200k= 10 . 4 . 134,327
^ ^ ^^^^ ^ ^^ ^^^^ ^^^ ^^^^^ ^n^ ^*^ ^^^ ^^^ ^ ^ ^ ^^^^^^r^ ^ ^'^p^^^ ^^ ^^ ^^ ^ ^* nU*#*^Lr^^ ^ ^ ^^ ^ ^ tb ^ ^ ^ ^ ^ ^ ^ ^
Total all Locations 45x200k=
1,080,797
8.3 5.8x2 Q.Qk= 11.3 18x20 Qk.= 9.3
1,026,738
1,563,663
fc^**************************************************************
16923
ARTHUR BROTHERS
11 OSHA LOST THE
O
16924
AFS-21-89 Page 7 of 12
Submittal "F" Supervisory Training 1. Semi-Annual Seminars 2. Monthly Video Sessions Subjects: Safety and Health, Human Relations, Productivity, Discipline, Communication Skills, Motivation, Appraisals, and Quality Jt i
-716925
AFS-21-89 Page 8 of 12
Submittal "G"
Ref: Attachment H - Minimum insurance to be carried by Contractor Rogers Shandley Letter (TRS-012-89), as requested pg. 3
January 1, 1989
WORKERS' COMPENSATION:
Policy Period - September 7, 1988 to September 7, 1989
Employers' Liability Limits
Bodily Injury by Accident Bodily Injury by Disease Bodily Injury by Disease
$500,000 each accident $500,000 each employee $500,000 policy limit
Premium Basis
Classification
Eats. Per $1QQ Payroll
Oil Refining Unit6 Erection or Repair
8.02
Increased Employers" Liability Limits Charge 1%
Experience Modifier .78
GENERAL LIABILITY;
(Per Individual location, i.e. Bishop, Bay City, Pampa and Corpus Christi)
Policy Period - September 7, 1988 to September 7, 1989
Limits of Insurance
General Aggregate Limit Products - Completed Operations Personal and Advertising Injury Each Occurrence Limit Fire Damage Limit Medical Expense Limit
$2,000,000
Aggr. Limit
2,000,000
Limit
1,000,000
1,000,000
50,000(any one fire)
5,000(any one person)
Premium Basis
Classification
Bats. Ear SlftQ.Q payroll
Oil Still Erection or Repair
$16.50 *
*net rate after premium discount
-8- 16S26
AFS-21-89 Page 9 of 12
Submittal "G" (Cont'd)
UMBRELLA PRICING FOR PRESENT COVERAGE (9-7-88/9-7-89).
UMBRELLA LIABILITY
Policy Period - September 7, 1988 to September 7, 1989
Limits of Liability
$4,500,000 any one accident or occurrence $4,500,000 aggregate limit Premium Basis
i
Premium:
$78,000.00 (Flat)
*
Policy Fee
2Q0.00
Taxes:
3.925.64
82,125.64
Each of the above policies shall be written specifically and solely for Hoechst Celanese Corporation and its affiliates and subsidiaries only. Naming Hoechst Celanese Corporation directly as being solely covered by each policy.
All applicable policies shall be subject to the terms and conditions of Article 29 (Indemnity)) of the proposed contract. See attached sample "Certificate of Insurance"
UMBRELLA LIABILITY of $10,000,000
See attached as submitted by Texas Employers Insurance Co.
-9- 16927
AFS-21-89 Page 10 of 12
Submittal "G" (Cont'd)
REVISION OF UMBRELLA PROGRAM TO MEET $10,000,000 REQUIREMENTS:
OPTION ONE: London has agreed to leave the current umbrella in force; increase the limits to $10,000,000; and endorse the policy to delete the aggregate. Therefore, our umbrella would provide $10,000,000 in unaggregated limits. The $10,000,000 per occurrence limit would be available for each occurrence, no matter how many occurrences occur in the policy year. There would be $10,000,000 in umbrella limits for each occurrence that happened, whether it be a loss relating to Hoechst Celanese operations, or a loss from any other operations, the $10,000,000 limit would be available for each.
ILIMIT $10,000,000
CARRIER Lloyds of London
ANNEAL PREMIUM $45,000 *
RATE Flat
* Annual Premium to be pro-rated for term (to expire 9-7-89).
OPTION TWO: Pull out the ABI (work for HCC) portion of the Londonumbrella and re-write a separate umbrella for ABI, London would continue to write a $4,500,000 umbrella for all non-HCC operations. The new separate umbrella for ABI (HCC operations) would be written with new carriers as follows:
LIMIT
$5,000,000
CARRIER
First State
ANNUAL PREMIUM
$77,189 *
RATE Flat
$5,000,000 excess of $5,000,000
Employers Casualty Company
$45,000 *
Flat
* Annual premium to be pro-rated for term (to expire 9-7-89).
-10-
16928
RTIFICATE OF INSURANCE
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMENO, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. SHOULD ANY OF THE POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL ten ;OAYS WRITTEN NOTICE TO THE CER. TIFtCATE HOLDER NAMED:
. CEHT1FKATE KOLBSI
Fehruarv 24. 1984
issue date o* this ceptiucaie
September 7, 1988
ISSUEO AT
Corpus Christi, Texas
HoechsC Celanese P. 0. Box 428 Bishop, Texas 78343
INSURED
ARTHUR BROTHERS, INC. P.0. Bax 792 Kingsville, Texas 78363
fT] TEXAS EMPLOYERS' INSURANCE ASSN. DALLAS, TX Co] TEXAS EMPLOYERS INDEMNITY CO. DALLAS, TX [2~1 EMPLOYERS CASUALTY COMPANY DALLAS, TX [T1 EMPLOYERS NATIONAL INSURANCE CO. DALLAS. TX (Tj EMPLOYERS CASUALTY CORPORATION * DALLAS, TX [Tj EMPLOYERS NATIONAL INS. CORK DALLAS, TX {Tj EMPLOYERS OF TEXAS LLOYD'S DALLAS, TX
-____________
Authorised Riprattnititet (Sind).....................
(IytH,d| -George Hart,' District Manager
THIS IS TO CERTIFY THAT POUCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUEO TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOO INDICATED. NOTWITHSTANDING ANT REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER OOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAT BE ISSUED OR MAT PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS. AND CONDI
TIONS OF SUCH POUCIES.
TYPE OF INSURANCE
"
WORKERS' COMPENSATION AND
EMPLOYERS' LIABILITY
CO.
ng
GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY
Z El"CLAWS MADE JxJOCCWWENO OWNERS i CONTRACTORS PROTECTIVE
xiCcntractual Liab X~ Prod. /Cano. Coer.
AUTOMOBILE UABIUTY ANY AUTO
ALL OWNEO AUTOS
t scxouieo AUTOS
|X HIRED AUTOS
EL NONCWNEO AUTOS
h. GARAGE UABIUTY
POLICY NUMBER
W2-29973 TCP-E418344
BAA-594776
rEXCESS UABIUTY
r OTHER THAN UMBRELLA FORM
POLICY EFFECTIVE POLICY EXPIRATION date (MM/oonrn OAT* IMM/OD/VV)
ALL LIMITS IN THOUSANDS
9-7-88 9-7-88
9-7-89 9-7-89
STATUTORY
s3oIT,
ICAO* ACOttHT)
$500,
K5EASt-P0UCY LIMIT)
$500.
(OtSCASE-EACM EMPLOYED
GENERAL AGGREGATE PAOOUCTS COMPIOPS AGGREGATE
?. ZaD-OA,
sjzjkkl
PSASOMAi & A0V(KTISIN6*IH4VJPY
$ 1.0QQ,
(ACM OCCUWHCI FME DAMAGE IANY ONE FIRE) UEOlCAl EXPENSE (ANT ONE PERSON!
S-1..QQQ.,
JiJL
9-7-88
9-7-89
C3L s 1,000,
MKUOUVPTY inn nnsom $
MiKnJOnUL*YT ACDOtKh
$
pftAnUcAnGrtfrr $
mm
OTHER
Waiver of Subrogation has been endorsed to above mentioned policies in favor of Hoechst Celanese. Subject to all of the terms and conditions thereof, the CGL policy identified above applies to Article 29 "Indemnity" of the contract executed _ by Hoechst Celanese Corporation and Arthur Brothers, Inc.
TSCO 17993-A T9.B7)
Hi
16329
CERTIFICATE OF INSURANCE
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND.
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. SHOULD ANY OF THE POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,
THE ISSUING COMPANY WILL MAIL_gL_OAYS WRITTEN NOTICE TO THE CER TIFICATE HOLDER NAMED:
February 24. 1989 ISSUE DATE OF THIS CERTIFICATE
Septenfaer 7, 1988
ISSUED AT
Corpus Christi, Texas
HoechsC Celanese P. 0. Box 428 Bishop, Texas 78343
INSURED
ARTHUR BROTHERS, INC. P.O. Box 792 Kingsville, Texas 78363
fT] TEXAS EMPLOYERS' INSURANCE ASSN. OALLAS. TX
ID] TEXAS EMPLOYERS INDEMNITY CO. DALLAS, TX
fT] EMPLOYERS CASUALTY COMPANY DALLAS, TX
[T] EMPLOYERS NATIONAL INSURANCE CO. OALLAS, TX
(T| EMPLOYERS CASUALTY CORPORATION DALLAS. TX fT] EMPLOYERS NATIONAL INS. CORfi DALLAS. TX
EMPLOYERS OF TEXflS-U Q^D'S 'DALLAS. TX
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSUREO NAMEO ABOVE FOR THE POUCT PERIOO INDICATED.
NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONOITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES OESCSISEO HEREIN IS SUBJECT TO AUL THE TERMS. EXCLUSIONS. AND CONDI
TIONS OF SUCH POLICIES.
TYPE OP INSURANCE
CO.
NCL
WORKERS' COMPENSATION AND
EMPLOYERS' UABIUTY
GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY
Culms MMX OCCURRENCE
OWNER'S 1 CONTRACTORS PROTECTIVE
POLICY NUMBER
AUTOMOBILE LIABILITY ANY AUTO AU. OWNED AUTOS SCHEDULED AUTOS HiREO AUTOS NCNOWNEO AUTOS GARAGE UAAHJTY
EXCESS LIABILITY
xJmbfella liability
OTHER THAN UMBRELU FORM OTHER
GD-1009
POLICY EPFECTIVC POLICY EXPIRATION OATS IMM/QQ/YYl OATC IMM/OOIYVI
ALL LIMITS IN THOUSANDS
STATUTORY
(CIO KOOtMTI
(CISEASS-POUCY UMT)
I0I3USMLC* EMPLOYEES
general aggregaie
PRODUCTS COMP/OPS AGGREGATE
PERSONAL 1 ADVERTISING- UUURT
EACH OCCURRENCE
TIRE OAMAGE IANY ONE EIREI
UEOICAL EXPENSE (ANY ORE PERSONI
9-7-88
9-7-89
ca. s tccKr
W nnom s 3W.f (4f0W2**7? $
* *"
O*oM*Mrfrilrr $
cccCAuCMwa s 4,500,
pooNtoAn S 4,500,
|cc: NGA Waiver of subrogation has been endorsed to above mentioned policies in favor of HoechsC Celanese.
16930
w
AFS-21-89 Page 11 of 12
Submittal "H"
Substance Abuse Program Ref: Article 35 of Typical Contract
1. All Employees sign "Consent to be tested" forms as condition of employment.
2. Ten (10%) percent of workforce is randomly selected and tested each month.
3. All employees are tested at least once each 12 months.
4. Positive tests result in:
(A) Termination of employee
(B) Counseling to seek medical or psychological assistance under ABI health plan.
(C) Invitation to return and submit "Substance Free" specimen after 30 days.
(D) If work load permits, employee is rehired,
5. Pre-employment testing is not required under our current program.
-11-
16S31
AFS-21-89 Page 12 of 12
In summary, please understand and know of our regard and appreciation for our.longstanding relationship. Many changes have occurred in the way we do business over the years. We recognize a failure on our part to communicate and thus to respond in a timely manner to these needed changes. However, let this proposal serve notice of our renewed commitment to serve you in the most proficient and economical manner possible.
The key to effective fulfillment of this contract will always be the competence of the mechanic with his tools. However, the role of management, in plant and home office, certainly impacts this performance. This role can be summed up in one word
COMMUNICATION. No greater challenge faces us than to have each employee know the- specifications, scope, hazards and timing of each task assigned and then provide the informationtools, equipment and materials to perform that task. We believe that your acceptance of this proposal will provide the framework for continuation of the good services of the past plus the opportunity to build on foundations already laid in the areas of training, planning and scheduling, for a safe and efficient operation.
Thank you again for the opportunity to submit this proposal.
Very truly yours, INCORPORATED
Aaron F. Sharks Vice-President
16332
O. BOX 792
TELEPHONE 592-6416
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE. TEXAS 78363
April 14, 1989
AFS:27
Hoechst Celanese Corporation Engineering Plastics Division P. 0. Box 428 Highway 77 South. Bishop, Texas 78343
Attn: Mr. Merrick Suacier
Re:
1989 Contract
Dear Merrick:
i f Arthur Brothers, Incorporated (ABI), appreciates the
opportunity to renew our contract with the Hoechst Celanese Bishop Facility.
We submit the attached schedules A, B, C and E to be attached to and made a part of the referenced contract.
In reference to Arthicle 6, last sentence should read: Any work performed that does not meet agreed upon standards will be reworked at cost plu6 the fee components described in Arthicle 10, paragraph F, Schedule C excluding paragraph C.
In reference to Article 10, paragraph
Cost of
.pre-employment testing as required by Contractor's Substance
Abuse Program at $35. 00 per test.
In reference to the additional "Contract Exhibit" ABI understands and agrees to achieve the needed improvements as listed.
AFS/mmr
CC: D. Siemonsraa H. Wilmeth
Aaron F. Starks Vice-president
16933
Bishop SCHEDULE 'A"
Effective date - May 1, 1989
Page 1 of 3
Classifications. Pax Bates and Eax Erastisas.
'A. Salaries
Superintendent General Foreman Foreman
Ranga
40,000/54,000 31,500/45,000 26,000/36,500
B. Standard Hourly Rates
1. General
Administrative Assistant Technician
9.00 - 11.00 12.00 - 20.00
Mechanic A Mechanic B Mechanic C Mechanic D
11.50 10.90 10.30
9.90
Utility A Utility B Utility C
9.45 9.07 8.69
Helper A Helper B Helper C
8.32 7.94 7.56
Utility Service A Utility Service B Utility Service C
7.09 6.62 6.33
Service A Service B Service C
Clerical Field Buyer Leadman Temporary Foreman
5.95 5.67 5.29
3.50 - 9.50 9.00 - 11.50 .50 above craft supervised 1.00 above craft supervised
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Page 2 of 3
Bishop SCHEDULE "A"
Effective Date - May 1, 1989
2. Warehouse
Rotating Shif-t.
Utility Service A Utility Service B Utility.Service C
7.42 6.95 6.66
Service A Service B Service C
6.28 6.00 5.62
Day.
7.09 6.62 6.33
5.95 5.67 5.29
3. Engineering
Engineer Draftsman Estimator Planner/Scheduler
12.00 - 30.00
6.00 - 20.00 6.00 - 20.00 6.00 - 20.00
St - Evening
7.42 6.95 6.66
6.28 6.00 5.62
C. Premium Hg.urly Rai&s.
Premium Hourly Rates shall be paid at the rate of one and one-half (1-1/2) the employees Standard Hourly-RateB. Premium time shall be defined as all hours worked in excess of eight hours (8) in a work day or in excess of forty hours (40) hours in
a work week.
D. Pay. Pxag.ic.sa
(1) Holiday, Sick Leave, Vacation and Jury Duty.
The following shall be recognized hereunder
contractor"s Holidays.
July 4
Thanksgiving
Labor DAy
Christmas
a
(a) Hourly Employees - Company shall pay Contractor for any such holiday at 1-1/2 times the standard time pay rates however, Contractor shall not be paid for hours not worked, such as any illness, vacation or jury duty, for any of Contractor"s hourly employees except with the written approval of the Company representative.
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Page 3 of 3
Bishop SCHEDULE '`A"
Effective May 1, 1989
(b) Salaried Employees - Company shall pay Contractor for all salaried employees at a weekly rate of 1/52 their annual salary except for sick leave which extends beyond three (3) days, all vacations and the four recognized Contractor holidays.
.(2) Call Out Pav
Company shall pay contractor for work on a "call out" basis at Company's request, outside the jt Contractor's employees regular scheduled shift at f 1-1/2 times standard rate for hours actually worked; however, if work extends into regular hours, then call out pay applies only to hours worked outside the regular scheduled shift. If Contractor"6 employee called out works less the four (4) hours and hours worked do not extend into the regular shift, Contractor will be reimbursed for four (4) hours at the standard rate or for hours actually worked at 1-1/2 times the standard rate, whichever is greater.
(3) SIlor Ha Pay
Company shall pay Contractor two (2) hours "show up" pay, at the standard rate, for any contractor employee who reports for his regular scheduled shift but is prohibited from working for any cause beyond Contractor's control.
-3-
Class Descriptions and Qualifications
Mechanic. L*.
Skilled, experienced, capable and responsible to perform all phases of one or more of the following crafts: Instrument Mechanic, Electrician, Machinist, Pipe Welder (carbon & alloys), Pipefitter, Rigger; Boilermaker, Equipment Operator (heavy), DieBel engine mechanics,Insulators, Painter, Carpenter and Iron Workers
Mechanic EL.
Gradient of Mechanic A. Skilled, experienced, capable and responsible to perform all phases of one or more of the following crafts: Carpenter (rough), Painter (brush), Pipe Welder (carbon). Iron Worker/Welder (Structural),Iron Worker (rebar).
Mechaaic L_
Gradient of Mechanic A & B. Skilled, capable, and responsible to perform as craftsman with moderate experience.
Mechanic D.
Gradient of Mechanic A,B & C. Capable and responsible to perform as craftsman with minimal experience.
Utility L
Positions demanding considerable skill and responsibility i.e.. Tool room attendant, Water blaster. Warehouse receiving clerk, Equipment operator (light). Dispatcher, Gauger, Etc.
; Utility E
Gradient of Utility Man A.
Utility CL
Gradient of Utility A & B
Eelpjac AuB->. &. C.
Assistant to and under direction of Mechanic. Position demands considerable skill and responsibility. Unless otherwise qualified helpers start as Class C and earn promotions through individual merit.
-1- 16937
Claes Descriptions and Qualifications Page 2 of 2
Utility S.er.Yic.fi L
Semi-skilled positions demanding moderate responsibility! i.e., Warehouse delivery. Truck Driver (light), Tractor mower. Metal salvage, Fuel oil loader, Warehouse packaging, drumming, etc. May also be used as assistant to other classifications. Utility Service B Gradient of Utility Service A Utility Service Gradient of Utility Service A & B
e.r.yics, A...B & C.
i 1 Unskilled labor. Unless otherwise qualified Service men start at
Class C and earn promotions thru individual merit. May be used as assistant to other classifications.Engineering Due to the wide range in education, expertise and experience in these positions, rates are set on an individual basis, with approval of company representative.
Technician
Special skills not attainable under other classifications. .Approval of ABI main office and HCC company representative is required. All positions are filled at the lowest possible classifications consistent with manpower availability.
-2- 16938
SCHEDULE "B"
Employee Moves And Traveling Expenses
Key Long Term Employees
Actual moving expenses to job site of Contractor"s long term employees shall b.e limited to an allowance of, not to exceed packing and moving, 15,000 lbs of household goods only, at existing local standard rates and not to exceed rates set by the Texas Railroad Commission. Employee shall receive Three (3) days leave of absence at his regular salary for such move.
Key Short Term Employees
Travel expenses of Contractor"s key short term
employees shall, be limited to travel expenses not the exceed
actual mileage to and from Contractors Main office`to the job
i site at the rate of 24 cents per mile. Travel time (hourly
1 ; employeesonly), shall be limited to one hour at the standard
rate of
pay for each fifty (50) miles traveled to and from
Contractors Main office and the job site.
Per diem of fifty (50.00) dollars shall be allowed for each employee whose work requires they stay overnight away from their principle residence.
All moving, travel and per diem expenses shall have prior approval of the company representative.
Long term employee shall be defined as one who becomes a part of the ongoing operation, whereas short term shall be . those brought in for turn-arounds or other projects of specific
duration.
A charge of 24 cents per mile will be charged for all vehicles used by the Contractor in the performance of work on behalf of the owner. Transportation of employees to and from the work site iB not a reimbursable cost.
16939
SCHEDULE "C"
Percentage Fee (Markup) for Maintenance, Construction and Engineering Labor Costs.
A. 22% on the straight time portion of actual wages and salaries chargeable to the work which covers all related costs such as FICA, employee benefits, and required insurance. State and Federal Unemployment taxes are excluded and shall be accrued and billed to Company at cost at the end of each quarter.
B. Sliding Scale Fee of:
1. 6% on the straight time portion of actual wages and salaries chargeable to the work up to $8,000,000.00 to cover, overhead and other unidentified
costs.
2. 5% on the straight time portion of actual wages and salaries' chargeable to the work from 8,000,001.00 to 12,000,000.00 to cover, overhead and other unidentified costs.
3. 4% on the straight time portion of actual wages and
salaries chargeable to the work from 12,000,001.00
and
up,
to cover, overhead and other
unidentified costs.
C. 2% on the straight time portion of actual wages and salaries chargeable to the work to cover profit. This portion of the fee shall not be applicable to any rework as described in Article 6.
D. 7.5% on the premium portion of overtime actual wageB and salaries chargeable to the work which covers all payroll related (FICA) costs.
E. 1% on the premium portion of overtime actual wages and salaries chargeable to the work, to cover profit, overhead and other unidentified costs.
16340
SCHEDULE "E Substance Abuse Program 1. All new employees must pass test for substance abuse prior to beginning work. 2. Ten (1050 percent of workforce is randomly selected and tested each month for substance abuse. 3. All employees are tested at least once each 12 months. 4. Any employee incurring an OSHA loggable injury shall be tested.
16941
CONTRACT EXHIBIT
CONTRACTOR agrees TO ACHIEVE SATISFACTORY IMPROVEMENT PROGRESS IN THE FOLLOWING
AREAS. AND TO FURNISH THE COMPANY WITH EVIDENCE OF THESE IMPROUEMENTS
IMPROVEMENT AREA
EXPECTATION
l FOREMAN MANAGEMENT SKILLS
l. DEVELOP ANO IMPLEMENT LONG TERM TRAINING PLAN IMPROVE PEOPLE AND ORGANIZATIONAL MANAGEMENT SKILLS.
2. MEASURE AND REPORT RESULTS ON THE JOB.
3. IDENTIFY CANDIDATES FOR SUPERVISOR BACKUP ANO REPLACEMENT, AND DEVELOP SKILLS WITH ADEQUATE TRAINING.
1. DEVELOP AND IMPLEMENT A PLAN TO CROSS CRAFT SKILLS.
CRAFTSMAN SKILLS
2. IMPROVE EMPLOYEE RECORD KEEPING AND EVALUATIONS OF PERFORMANCE, SKILLS, REASONS FOR LEAVING, RECOMMENDATION FOR REHIRE. ETC., TO HIRE SKILLS TO MATCH WORK ASSIGNMENTS.
3. IDENTIFY AND OBTAIN REQUIRED CERTIFICATIONS <e.g. YARD RUNNERS, FORKLIFTS, WEED SPRAYERS, ASBESTOS REMOVAL, ETC.)
3 CREW MIX MANAGEMENT
1. SIGNIFICANTLY INCREASE THE CURRENT HELPER/CRAFTSMAN RATIO OF 0.5
2. IMPROVE CREW MIX MANAGEMENT METHODS TO OPTIMIZE VERAGE WA6E RATE AND REPORT RESULTS MONTHLY.
EVELOP AND IMPLEMENT A PLAN TO CONTROL PROGRESSION TO TOP WAGE RATE.
^ COMPANY IMPROVEMENT
1. IDENTIFY COMPANY STRATEGY TO IMPROVE SAFETY, QUALITY, AND PRODUCTIVITY, ANO IMPLEMENT A PLAN FOR ACHIEVEMENT.
16942