REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  January  23, 2018
CATEGORY:  Consent - Health and Human Services-8.

SUBJECT:

 First Amendment to the Agreement with Kaleidoscope Coffee 

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Linda Hoag, Deputy Branch Director, HHSA Regional Services, (530) 245-7638

STAFF REPORT APPROVED BY:  Melissa Janulewicz, HHSA Branch Director

RECOMMENDATION

Approve and authorize the Chairman to sign an amendment to the agreement with Kaleidoscope Coffee Company, Inc., to increase compensation by $150,000, for a new total not to exceed $200,000 over the term of the agreement, to provide additional employment subsidy reimbursement, as the employer of record for additional eligible CalWORKs recipients, and extend the end date from March 31, 2018 to March 31, 2019.

SUMMARY

Approval of this amendment will provide approximately 16 Shasta County CalWORKs, Welfare-to-Work (WTW) participants the opportunity to gain current work experience, improve skills, and potentially secure on-going unsubsidized employment.

DISCUSSION

The Subsidized Employment Program (SE) provides Shasta County CalWORKs, Welfare-to-Work participants the potential to acquire work experience, improve job skills, and potentially secure on-going unsubsidized employment. These programs have operated in various forms in the United States for some 80 years.

As well as providing paid employment opportunities to WTW participants, the SE Program gives employers the opportunity to build their business and incorporate new employees at reduced costs by providing financial assistance through the initial training period required by new employers.  Employers receive a wage subsidy of 100% of total wage costs, not to exceed $15 per hour, per participant hired, over a period of six months. This subsidy is offered as incentive to employers to train and hire Shasta County WTW participants as unsubsidized employees once the reimbursement period ends.  A participants’ subsidy period may be extended for an additional six months (in three month increments) at a rate of 50% of wages, if the County determines that an extension will increase the likelihood of the participant obtaining unsubsidized employment with the participating employer or obtaining specific skills and experiences relevant for unsubsidized employment for a particular field.

Kaleidoscope Coffee is an active participant in Shasta County’s SE program, ShastaFACES2.  In 2017 they hired 12 CalWORKs participants; seven participants remain employed with Kaleidoscope. In addition, two participants were hired permanently without the subsidy. Of the 12 participants that were hired by Kaleidoscope, three are no longer employed with the company. One participant was no longer able to perform the job duties and has been referred to our Family Stabilization Program. Another participant has been hired for unsubsidized employment through another Shasta County business and is earning more money. The third is no longer a resident of Shasta County.

Kaleidoscope offers various positions including food prep, barista, and sales and marketing.  Each employee works 20 to 30 hours a week and receiving at least minimum wage.  Kaleidoscope Coffee is very pleased with the quality of our participants and they have expressed interest in hiring two to four additional placements. 

The average wage reimbursement for each participant placed at Kaleidoscope Coffee is $1,400 per month.  Kaleidoscope Coffee has the desire to have additional placements from the Shasta Faces Program, however additional funding is needed to give the additional CalWORKs participants the experience.

ALTERNATIVES

The Board could choose not to approve the recommendation which would result in the discontinuance of wage subsidies for all CalWORKs WTW participants employed by Kaleidoscope Coffee or approve less than the requested increase in compensation.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the amendment as to form. Risk Management has approved the amendment.  This recommendation has been reviewed by the County Administrative Office.

FINANCING

The SE total allocation provided to Shasta County for Fiscal Year (FY) 17/18 is $931,298 which can be used for employer subsidies as well as programmatic administrative expenses. The funds associated with the recommendation have been included in the department’s FY 2017-18 Adopted Budget and will be included in the FY 2018-19 Requested Budget.  There is no additional impact to the General Fund with approval of the recommendation.