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Home My WebLink About25B - ENTREPRENEURIAL TRAININGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 4, 2011 TITLE: AMENDMENTS TO AGREEMENTS WITH ENTREPRENEURIAL TRAINING PROVIDERS r CITY ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 15f Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute the attached amendments with the following entrepreneurial program operators for Program Year 2010-11, subject to non- substantive changes approved by the City Manager and City Attorney: a. Goodwill Industries of Orange County to provide entrepreneurial training to a modified number of 50 unemployed individuals and extend the term of the agreement to February 28, 2011. b. Delhi Center to provide entrepreneurial training to a modified number of 50 unemployed individuals and extend the term of the agreement to May 30, 2011. DISCUSSION The Santa Ana Workforce Investment Board received $4.4 million dollars through the American Recovery and Reinvestment Act of 2009 (ARRA) intended to preserve and create jobs, promote the nation's economic recovery and assist those most affected by the recession. On October 12, 2009, a Request for Proposals was released by the Santa Ana W/O/R/K Center (SAWC) to solicit entrepreneurial training providers to augment existing job training programs. Goodwill Industries of Orange County and Delhi Center were awarded funds for their respective projects. On February 16, 2010, City Council authorized the execution of agreements with each agency to provide entrepreneurial training for Santa Ana residents. Both programs have been extensively marketed in Santa Ana and the community response has been high; however, ARRA requirements are extremely restrictive and the majority of applicants showing interest have not met program requirements. For this reason, the organizations have 25B-1 Amendments to Entrepreneurial Training Agreements January 4, 2011 Page 2 requested to reduce the number of individuals trained and will focus efforts on more individualized training. Goodwill Industries entered into a contract for $180,830 to serve 160 individuals. The average cost per participant is $1,130. The modification would raise the average cost to $3,617 per participant. Delhi Center entered into a contract for $122,000 to serve 100 individuals. The average cost per participant is $1,220. The modification would raise the average cost to $2,440 per participant. According to a survey conducted by The California Association for Micro Enterprise Opportunity, the average training costs through entrepreneurial programs is approximately $5,000 per participant. The cost increase per participant for both programs would still be significantly less than the average cost. FISCAL IMPACT There is no fiscal impact associated with this action Cynthia J. Nelson Deputy City Manager for Development Services Community Development Agency CJN/LO/CR/SV/kg Exhibits: 1. Goodwill Industries of Orange County Amendment 2. Delhi Amendment 25B-2 AMENDMENT TO AGREEMENT UNDER THE WORKFORCE INVESTMENT ACT (AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009) THIS AMENDMENT, made and entered into this 40i day of January, 2011, by and between Goodwill Industries of Orange County ("Contractor") and the City of Santa Ana, a charter, city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City and Contractor entered into that certain Agreement Under the Workforce Investment Act (American Recovery and Reinvestment Act of 2009) effective February 1, 2010 (Agreement #A-2010-022), hereinafter referred to as "said Agreement". B. The parties hereto now desire to amend Section I A, to reduce the number of individuals to be served, and to extend the term of said Agreement. Relevant exhibits affected by these changes will also be amended. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section I A. of said Agreement is amended to reduce the number of individuals served to fifty (50). Exhibits A (Program Narrative) and B (Statement of Work) shall be amended accordingly, and the updated Exhibit A- 1, attached hereto, reflects the revised Program Outcomes. 2. Exhibit F to said Agreement is hereby replaced with the amended Exhibit F, attached hereto and incorporated herein by reference. The amount of City's Obligation remains as stated in said Agreement. 3. Section III, "Time Period of Agreement" is hereby amended and extended through May 31, 2011. 4. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to said Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: Joseph W. Fletcher City Attorney CITY OF SANTA ANA, a municipal corporation of the State of California "CITY" By: David N. Ream City Manager "CONTRACTOR' Goodwill Industries of Orange County BY: BY: Lisa E. Storck Name: Gregory Mathes Assistant City Attorney Title: Director of Program Development EXHIBIT 1 25B-3 Goodwill Industries of Orange County Future Business Owners Program Program Outcomes • 300 individuals served In year one (people attending orientation/introduction and completing self-assessment) • 100% of assessment participants have a clear understanding as to whether or not they are ready to be an entrepreneur • 50 individuals in assessment session enroll in business planning course • 50% of business planning course participants (25) complete entire business planning course • 100% of individuals that complete business planning course have a business plan • 1 out of every 10 individuals attending the business planning course (5) starts their business within 12 months • 50% of individuals who graduate from course (13) experience an income increase • 60% of graduates (15) are able to reduce their reliance on public assistance • 50% of graduates who start a business (3) are still operating three years later • 50% of graduates who start a business (3) will grow that business large enough to hire additional employees Monthly Participant Plan Apr May Jun Jul Aug Set Oct Nov Dec Jan Feb Mar Apr May olal Planned Enrollments 7 4 3 0 3 0 0 3 3 12 8 7 0 0 L EXHIBIT A-1 25B-4 Goodwill Industries of Orange County Future Business Owners Program BUDGET FORM Administrative Program Total Match/In Kind PErsQnl?el - Salaries* 109,182 109,182 Benefits 30,849 30,849 Other list)* Total Personnel W _ Wss 140,031 140,031 Rent or user fee* 15,200 15,200 Utilities 0 0 Phones 390 390 Internet fees Parkin fees Security 0 0 Maintenance Insurance Equipment* Rental fees Purchase 37,320 Vehicle lease charges (vehicles may not be purchased) Office expenses consumables 740 740 Accounting Services Legal services Auditing services Indirect costs (attach indirect cost rata plan**) 15,235 15,235 Staff training 3,478 3,478 Staff travel/mileage 47082 4,082 Customer Training* Support services* Profit (for profits only) Other (list)* 1,674 1,674 26,435 Total Operating Expenses 15,235 25,564 40,799 GRAND TOTAL (Total Personnel + Total Operating Expenses) 15,235 165,595 180,830 * attach a separate sheet detailing these costs * * must be approved by cognizant agency EXHIBIT F 25B-5 25B-6 AMENDMENT TO AGREEMENT UNDER THE WORKFORCE INVESTMENT ACT (AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009) THIS AMENDMENT, made and entered into this 4 h day of January, 2011, by and between Delhi Center ("Contractor") and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City and Contractor entered into that certain Agreement Under the Workforce Investment Act (American Recovery and Reinvestment Act of 2009) effective February 1, 2010 (Agreement #A-2010-023), hereinafter referred to as "said Agreement". B. The parties hereto now desire to amend Section I A, to reduce the number of individuals to be served, and to extend the term of said Agreement. Relevant exhibits affected by these changes will also be amended. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section I A. of said Agreement is amended to reduce the number of individuals served to fifty (50). Exhibits A (Program Narrative) and B (Statement of Work) shall be amended accordingly, and the updated Exhibit A-1, attached hereto, reflects the revised Program Outcomes. 2. Exhibit F to said Agreement is hereby replaced with the amended Exhibit F, attached hereto and incorporated herein by reference. The amount of City's Obligation remains as stated in said Agreement. 3. Section III, "Time Period of Agreement" is hereby amended and extended through February 28, 2011. 4. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to said Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: Joseph W. Fletcher City Attorney BY: Lisa E. Storclc Assistant City Attorney CITY OF SANTA ANA, a municipal corporation of the State of California "CITY" By: David N. Ream City Manager "CONTRACTOR" Delhi Center BY: Name: Margarita Chavez Title: Interim Executive Director EXHIBIT 2 25B-7 Delhi Center Childcare Training Entrepreneurial Program Program Outcomes Enrolled in Program 50 Completed Training 35 Submit State Application for Licensure 15 Complete Business Plan 35 Classes (entire trainings) g Obtain State License 5* Active Licensed Business 5* * Due to the budget deficit and recession, California state licensing has not held any State Licensing Orientations and has put Community Care Licensing on hold since August 2010. The lcensure process takes anywhere from 2-6 months. Currently applications are being accepted but are not being processed. In order to submit an application the candidate must attend a state orientation. State orientations statutes vary by county. Orange County has not scheduled any orientations in the near future. Community Care Licensing's office greeting is stating that no orientations are scheduled. They can be contacted at (714) 703-2800. Steps to ensure milestones are met • Increase outreach to Include o talk with licensed providers to remind them of our services o local grocery stores o neighborhood associations o more surrounding schools (elementary & Junior high) o community clinics o community youth programs • Offer more support with business plan development • Continue with monthly educational workshops • Offer the training and explain to clients that even though licensing is currently on hold, as soon as they are issuing licenses they will be prepared to apply. Monthly Participant Plan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Total Planned Enrollments 6 1 11 0 2 1 101 8 1 81 8 50 EXHIBIT A-1 25B-8 Delhi Center Childcare Training Entrepreneurial Program BUDGET FORM ppy. „„ p Administrative Program 7' 1 Total Match/In Kind s Salaries* $5,000 $80,708 $85,708 Benefits Other (list)* $1,050 $14,320 $15,370 Total Personnel $62050 $95,028 $101,078 Rent or user fee* Utilities $3,582 $3,582 Phones $3,415 $3,415 Internet fees Parkin fees Security Maintenance $4,318 $4,318 Insurance 13,217 $3,217 Equipment* - Rental fees Printing $1,545 $1,545 Vehicle lease charges (vehicles may not be purchased) Office expenses consumables $785 $785 Accounting Services $2,777 $2,777 Legal services Auditing services Indirect costs (attach indirect cost rate plan*) Staff training Staff travel/miles a $436 $436 Customer Training* Support services* $847 $847 Profit for profits only) Other (marketing-/-meetings) Total Operating Expenses $20,922 $20,922 GRAND TOTAL (Total Personnel + Total Operating Expenses) $6,050 $115,950 $122,000 * Attach a separate sheet detailing these costs. ** Must be approved by cognizant agency. EXHIBIT F 25B-9 25B-10