CC - Item 4A - Dissolution and Termination of The West San Gabriel Valley Consortium Joint Execise of Powers AgreementROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: AUGUST 13, 2013
SUBJECT: DISSOLUTION AND TERMINATION OF THE WEST SAN GABRIEL VALLEY
CONSORTIUM JOINT EX ERCISE OF POWERS AGREEMENT
SUMMARY
The City Council will consider adoption of a Resolution to dissolve and terminate the
West San Gabriel Valley Consortium Joint Exercise of Powers Agreement to be
effective on August 31, 2013. The Consortium is an independent legal entity that was
formed in 1976 by local cities and school districts through a joint powers agreement.
The purpose of the organization is to obtain funds from Los Angeles County to operate
job training and employment programs in this sub - region. In June of 2013, the County
notified the Consortium that effective on July 1, 2013 it would no longer provide funding
to the Consortium but would transition the financial resources for this sub - region to
another agency. Based on this action by the County, the Consortium Executive Board
adopted a Resolution on June 27, 2013, to initiate the voluntarily wind -down and
dissolution of the Consortium and termination of the Joint Powers Agreement.
Staff Recommendation
Staff recommends that the City Council adopt Resolution No. 2013 -36 rescinding and
terminating the joint powers agreement that created the West San Gabriel Valley
Consortium to be effective on August 31, 2013.
BACKGROUND
The West San Gabriel Valley Consortium ( "Consortium ") was formed in 1976 by local
cities and school districts for the purpose of contracting with the County of Los Angeles
for the implementation of employment training programs. The Consortium was
established through a joint exercise of powers agreement pursuant to provisions
contained in the State of California Government Code §§ 6500 et seq. On March 24,
1993, the participating cities and school districts executed an amended joint powers
agreement which superseded the original and revised joint powers agreement. Over
the past several years several public agencies have continued as members of the
Consortium, including the Alhambra Unified School District and the Montebello Unified
School District, as well as the cities of Alhambra, Bell, Monterey Park, Rosemead, San
Gabriel, and Temple City. During this period, the Consortium has operated utilizing the
dba of Career Partners Workforce Solutions for the delivery of employment and job
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City Council Meeting
August 13, 2013
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training services in the respective jurisdictions of the member agencies
In May of this year, the contracted independent accounting firm of Macias, Gini &
O'Connell LLP (MGO) notified the Consortium and the County that it would be unable
render an opinion on the Consortium's financial statements to produce single audits for
the 2010 -11 Fiscal Year and the 2011 -12 Fiscal Year. Some of the noted difficulties
that resulted in MGO's inability to produce the single audits were an archaic accounting
system and employee turnover. Consequently, the Consortium was unable to obtain
single audits for the 2010 -11 and 2011 -12 fiscal years.
In light of this notification from MGO, in June of 2013, the County of Los Angeles
informed the Consortium that it had made a decision not to renew the contracts with the
Consortium and that, effective on July 1, 2013, funding for employment and training
programs would be transitioned to another independent organization, Managed Career
Solutions (MCS) based in Alhambra and Monterey Park. Due to the impending loss of
funding, the Consortium Executive Board took actions and adopted a resolution on June
27, 2013 to initiate a process to voluntarily wind -down and dissolve the Consortium.
The County has subsequently advised the Consortium on a close -out process and
authorized the retention of three administrative employees to complete close -out tasks.
The County also advised the Consortium Executive Board that it had assumed
responsibility for completion of the outstanding single year audits. Consequently, during
the subsequent weeks, County officials supervised the crew of remaining Consortium
employees engaged in close -out tasks that have included assembling and boxing of
financial and program records for delivery to the County and closing of the Career
Partners Workforce Solutions facility. The County also advised the Consortium on the
development and submittal of a final close -out budget for the completion of close -out
activities by August 31, 2013. The Consortium Executive Board has approved and
submitted a close -out budget in order to complete the close -out process by August 31,
2013.
LEGAL REVIEW
The City Attorney has been kept abreast of these issues by staff and has provided City
staff with advice relative to the development of the attached Resolution terminating the
joint powers agreement for the West San Gabriel Valley Consortium.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
RESOLUTION NO. 2013-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
RESCINDING AND TERMINATING THE JOINT EXERCISE OF POWERS
AGREEMENT CREATING THE WEST SAN GABRIEL VALLEY CONSORTIUM
WHEREAS, the West San Gabriel Valley Consortium ( "Consortium ") was originally
formed in 1976 by local cities and school districts for the purpose of contracting with the County
of Los Angeles for the planning, coordination, and implementation of employment training and
other human services; and
WHEREAS, on March 24, 1993, an amended joint powers agreement was executed by
the participating cities and school districts ( "Agreement') , which superseded the original and
revised joint powers agreement; and
WHEREAS, the Consortium has operated for many years with the dba name of Career
Partners Workforce Solutions and received funding for its activities from the County of Los
Angeles Department of Community and Senior Services; and
WHEREAS, The ( "County ") announced in a letter dated June 5, 2013, that as of June
30, 2013, all funding for services provided by the Consortium will be transitioned to another
service provider; and
WHEREAS, as a result of the action taken by the County to terminate all program
funding to the Consortium, the Executive Board of the Consortium adopted Resolution No.
2013 -06 -001 on June 27, 2013 to voluntarily wind -down and dissolve the Consortium; and
WHEREAS, the County of Los Angeles has directed that the close -out process for the
Consortium is to be completed by August 31, 2013;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to Section 11 of the Agreement, the City of Rosemead, in
conjunction with the other members of the Consortium, hereby rescinds and terminates the
Agreement effective on August 31, 2013. All files and information are to be submitted to the
County of Los Angeles Department of Community and Senior Services. Remaining assets of the
Consortium shall be transferred or distributed consistent with Section 9 of the joint powers
agreement.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Rosemead on the 13' day of day of August, 2013.
Polly Low
Mayor
ATTEST:
Gloria Molleda
City Clerk
APPROVED AS TO FORM:
Rachel Richman
City Attorney