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Recommendation to authorize City Manager to execute all documents with the City of Hawthorne on behalf of the South Bay Workforce Investment Board, for the Workforce Investment Network to operate a subsidized employment program for families in the California Work Opportunity and Responsibility to Kids program funded by up to $880,000 in American Recovery and Reinvestment Act funds through June 30, 2010, and to execute any needed subsequent amendments. (Citywide)
DISCUSSION
The County's Department of Public Social Services operates a transitional subsidized employment program (TSE Program) for families receiving public assistance through the statewide California Work Opportunity and Responsibility to Kids (CaIWORKs) program. CalWORKs provides cash aid, employment services, and other benefits to needy families. The TSE Program has been deployed to provide up to one year of work experience and training to CalWORKs adult residents with limited or no work history, the goal of which is to place them in unsubsidized jobs after training completion.
The Department of Public Social Services has contracted with the South Bay Workforce Investment Board (WIB) to serve as TSE Program coordinator and facilitator in Los Angeles County with the support of American Recovery and Reinvestment Act (ARRA) Funds. To that end, the South Bay WIB has created the infrastructure for One-Stop Centers such as the Career Transition Center, Torrance Career Center and Harbor WorkSource Center to access a centralized temporary payroll and work site development mechanism to place local resident trainees.
Workforce Investment Network staff will work with existing families in the CalWORKs program with priority given to Los Angeles County referrals of local residents whose sixty-month time limit on public assistance is nearing an end. Staff will provide those trainees with an assessment and review of skills development to-date, create an updated training and development plan, develop work sites and place residents into subsidized work experience, and assist with post-training job placement.
The South Bay WIB will directly pay the costs of the subsidized payroll expenses, benefits, and worker compensation policies, and will reimburse the Workforce Investment Network for its staffing costs associated with assessment, case management, monitoring, job development, and placement. The Workforce Investment Network will request the addition of six seasonal/temporary Administrative Analyst-Non-Career positions to achieve the necessary, short-term capacity growth required for the TSE Program.
Reimbursement has been negotiated through a fee-for-service formula, of which 75 percent will be paid to the Workforce Investment Network at placement of the resident into training, with the remaining 25 percent performance benchmark earned if the participant achieves a minimum of 30 days in unsubsidized employment after training. Based on initial planning service levels of 550 trainees, the Workforce Investment Network will generate approximately $660,000 in revenue that will offset temporary staffing and other related costs of the Program. Depending on the final employment levels of the cohort, the Workforce Investment Network could potentially generate an additional $220,000 in earned payments that could be used for additional services to customers.
This letter was reviewed by Deputy City Attorney Gary J. Anderson on June 23, 2009 and by Budget and Performance Management Bureau Manager, David Wodynski on June 25, 2009.
TIMING CONSIDERATIONS
City Council action is requested on July 14, 2009 in order to facilitate processing of required documents.
FISCAL IMPACT
Sufficient funds are currently appropriated in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD). This appropriation will support the estimated initial outlays in FY 09. Funding for next fiscal year's activities will be requested in FY 10. There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
DENNIS J. THYS
DIRECTOR, DEPARTMENT OF COMMUNITY DEVELOPMENT
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |