REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  May  22, 2018
CATEGORY:  Consent - Health and Human Services-3.

SUBJECT:

Renewal Agreement with Computer Logistics for Subsidized Employment Services (ShastaFACES2)

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Melissa Janulewicz, Branch Director, HHSA Regional Services, (530) 245-6403

STAFF REPORT APPROVED BY:  Melissa Janulewicz, Branch Director, HHSA Regional Services

RECOMMENDATION

Approve and authorize the Chairman to sign a renewal agreement with Computer Logistics in an amount not to exceed $300,000 to provide employment subsidy reimbursement, as the employer of record, for the employment of eligible CalWORKs recipients for the period July 1, 2018 through June 30, 2020.

SUMMARY

Approval of this renewal will provide approximately 37 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.

Computer Logistics is an active employer in Shasta County’s SE Program, ShastaFACES2.  They currently have 12 CalWORKs participants actively placed as Customer Service Call Center Representatives. Computer Logistics has hired 42 CalWORKs participants using subsidized employment since 2016. Of those 42, 9 have been hired by Computer Logistics as permanent employees without the subsidy and are no longer receiving cash assistance, and 7 are still currently employed with Computer Logistics as subsidized employees. In addition, 17 employees have left on their own accord, for various reasons, including 8 whom secured other employment outside of the SE, two who started working for other SE employers, two who moved out of the area, 4 who had medical reasons for leaving and 1 who was not ready for SE.  There have also been 9 clients terminated from employment by Computer Logistics. The Call Center Representatives work an average of 40 hours per week at a starting salary of $11 per hour.  Computer Logistics has been able to grow their business as well as offer valuable job experience to CalWORKs participants through this mutually beneficial agreement.  Computer Logistics consistently requests additional placements to support their current product line with the potential for more placements as their product line continues to grow. The average wage reimbursement for each participant placed at Computer Logistics is $1,905 per month.

ALTERNATIVES

The Board could choose not to approve the agreement.

OTHER AGENCY INVOLVEMENT

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

FINANCING

The Subsidized Employment allocation provided to Shasta County for FY 2018-19 is $931,298 which can be used for employer subsidies as well as programmatic administrative expenses. The funds and appropriations associated with the recommendation will be included in the department’s FY 2018-19 Requested Budget. There is no additional impact to the General Fund with approval of the recommendation