Report to Mayor and City Council
Tuesday, June 21, 2016
Discussion
SUBJECT:
Title
CONSIDER AN AMENDMENT TO THE AGREEMENT FOR CONSULTING SERVICES WITH MICHAEL SEALE FOR THE TRANSITIONAL SUBSIDIZED EMPLOYMENT PROGRAM AS A PART OF THE CARSON CAREER CENTER SERVICES, IN AN AMOUNT NOT TO EXCEED $180,000 ANNUALLY FOR A PERIOD OF 30 MONTHS (2 1/2 YEARS) (CITY COUNCIL)
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I. SUMMARY
The City of Carson uses a consultant, Michael Seale, to manage the Transitional Subsidized Employment (TSE) Program as a part of the Carson Career Center services. The current agreement is expiring and a new agreement is needed. The annual net contract amount with the consultant is $180,000.00 and is fully funded by the South Bay Workforce Investment Board contract with the City.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE entering into an agreement Michael Seale (Consultant) for an amount not to exceed $180,000.00 annually for an approximate 2.5 year period ending February 28, 2019, with a total amount of $456,250 for the new term ending on February 28, 2019, to coincide with the South Bay Workforce Investment Board’s (SBWIB) contract with the City.
2. AUTHORIZE the Mayor to execute the agreement following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
TSE program provides employment placement for individuals receiving public assistance. The goal is to find participants permanent employment. The City receives a payment for each participant placed in employment. The consultant has managed the program for the City since its inception. The agreement with the Consultant is performance based.
Staff recommends a new multi-year agreement not-to-exceed the amount of $180,000.00 annually, with a total amount of $456,250 for the new term ending on February 28, 2019. The placement of 250 participants generates $300,000.00 in gross payments from the SBWIB annually. In this proposed agreement, the City takes 40% share of the SBWIB funds and pays the 60% share to the Consultant. The goal is to have 250 participants placed in employment annually.
Under the Contract with the SBWIB, the City receives payments from the SBWIB in the amount of $1,200.00 per person placed in employment through the TSE program; based on the revenue sharing formula in this contract, the Consultant is paid 60% or $720.00 by the City for each placement and the City retains 40% or $480.00. Additionally, the City receives $400.00 for each participant placed in permanent employment for a total of $1,600.00 per participant; based on the same formula, the total compensation for a participant placed in permanent employment would be: the Consultant retains 60% ($960.00) and the City retains 40% ($640.00). This compensation schedule for Year 1 and Year 2 is 60% to the Consultant/40% to the City. In year 3, the City’s share increases to 45% and the Consultant’s share decreases to 55%.
V. FISCAL IMPACT
None. The administrative costs of this program are recovered by the reimbursement received from the SBWIB. The City would receive up to $307,500 in its share from the SBWIB over the 30 month period of the contract.
VI. EXHIBITS
1. Proposed Agreement (pgs. 3-8)
Prepared by: Cecil C. Flournoy, Project Manager