Approve and authorize the Chairman to sign an amendment to the agreement with Home Buddy Cleaning and Office Buddy Janitorial for the purpose of providing employment subsidy reimbursement, as the employer of record, for the employment of eligible CalWORKs recipients to increase maximum compensation from $50,000 to $300,000 during the term of the agreement and extending the end date from April 30, 2017 to April 30, 2018.

Approval of this amendment will provide approximately 25 additional CalWORKs Welfare to Work (WtW) participants the opportunity to gain current work experience, improve skills and potentially secure on-going unsubsidized employment.

The Subsidized Employment Program (SE Program) provides paid employment opportunities to WtW participants, and gives participating employers the opportunity to build their business and incorporate new employees at reduced cost. A wage subsidy of 100% of total wage costs for a six month period, per participant hired, is offered as incentive to employers to train and ultimately hire Shasta County WtW participants as unsubsidized employees once the reimbursement period ends. Additionally, 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.

During the period of June 10, 2015 through September 2, 2016, 23 CalWORKs WtW participants have been employed with Home Buddy Cleaning, and Office Buddy Janitorial (Home Buddy Office Buddy). Of those 23, 11 have acquired unsubsidized employment with another employer, one was terminated, one quit and 10 continue to work with Home Buddy Office Buddy in various positions including office assistant, site supervisor and commercial and residential cleaner. These current employees are working an average of 40-hours a week at a starting salary of $10.75 per hour, with two of the 10 employees currently being paid $12.00 per hour. Home Buddy Office Buddy is very pleased with the quality of past and current participants and is interested in hiring two to four additional employees during the current fiscal year. The average monthly wage reimbursement for each participant placed at Home Buddy Office Buddy Janitorial is $1,700.

The Board may choose not to approve the recommendation which would result in the discontinuance of wage subsidies for all CalWORKs WtW participants employed by Home Buddy Office Buddy once the approved budget maximum has been exhausted. Further, the Board could authorize the maximum amount of the contract to a figure other than $300,000.

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

The funds associated with the recommendation have been included in the department’s FY 2016-17 Adopted Budget and will be included in the FY 2017-18 Requested Budget. There is no additional impact to the General Fund with approval of the recommendation.