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Home My Public Portal About06) 7E-1 Staff Report Dissolution & Termination of West SGV Consortium JPACity Council August 20, 2013 Page 2 of 3 5. On June 27,2013, the Executive Board took action by Resolution No. 2013-06-001 to initiate wind-down activities for dissolution of the Consortium, including its joint powers authority (Attachment "C"). 6. On July 30, 2013, County representatives requested the completion of all Consortium close-out activities by August 31, 2013. ANALYSIS: The City has been a member of the Consortium for over two decades, and is currently one of eight active members (i.e., the Alhambra and Montebello unified school districts; as well as the cities of Alhambra, Bell, Monterey Park, Rosemead and San Gabriel). The Consortium was formed by a Joint Exercise of Powers Agreement under the Joint Exercise of Powers Act (Act), which allows public agencies to join together and form a separate legal entity wherein members remain distinct from the new entity, and are not liable for the debts, liabilities and obligations incurred by the new entity. For over a decade, the Consortium has operated under the business name Career Partners Workforce Solutions (Career Partners) to provide County-funded employment and training services to residents of member cities. Organizationally, while the Executive Board retained the right to vote on policy matters, an appointed Executive Director was charged with managing day-to-day operations and administrative activities, including coordination to complete annual audits. In May 2013, auditors from the contracted independent accounting firm of Macias, Gini and O'Connell (MGO) notified the Consortium and County that it would be unable to render an opinion on the Consortium's financial statements to produce single audits for fiscal years 2010-2011 and 2011-12. Noted difficulties stemmed from Career Partners' archaic accounting system and employee turnover. Neither Consortium members nor its Executive Board had knowledge of these issues until being advised by MGO. Because of this inability to produce audits, the County informed the Consortium that its contract with Career Partners would not be renewed, and that effective July 1, 2013, funding for employment and training programs would transition to Managed Career Solutions (MCS). Considering the impending loss of funding, and to ensure seamless transition of employment services to MCS-which also provides services to Consortium cities-the Executive Board took actions and adopted a resolution on June 27, 2013 to voluntarily wind-down and dissolve the Consortium. As part of the wind-down, the County advised the Consortium to complete all close-out activities by August 31, 2013, and also informed the Executive Board that it would be assuming responsibility for completing the outstanding single year audits. As of the date of this report, those activities are nearly complete. Also, since the Consortium was City Council August 20, 2013 Page 3 of 3 formed under the Act, its member agencies should therefore not be responsible for any of the Consortium's remaining debts or liabilities. CONCLUSION: Staff recommends that the City Council adopt Resolution No. 13-4936 to dissolve and terminate the West San Gabriel Valley Consortium Joint Exercise of Powers Agreement effective August 31, 2013. This action is in line with the City Attorney's recommendation and follows suit to similar actions taken or soon to be taken by the cities of San Gabriel, Rosemead, Alhambra and Monterey Park. FISCAL IMPACT: Based on presently available information, City staff and the City Attorney's Office anticipate that this action will present no fiscal impact to the Fiscal Year 2013-14 Adopted City Budget. ATTACHMENTS: A. City Resolution No. 13-4936 B. City Resolution No. 92-3197 C. Consortium Resolution No. 2013-06-001 ATTACHMENT A RESOLUTION NO. 13-4936 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY 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 ("County") for the planning, coordination and implementation of employment training and other human services; and WHEREAS, on March 24, 1993, an amended joint powers agreement ("Agreement") was executed by the participating cities and school districts, which superseded the original and revised joint powers agreement; and WHEREAS, the Agreement provides that the Consortium is a separate public entity and its debts, liabilities or obligations do not constitute debts, liabilities or obligations of any of the parties to the Agreement; and WHEREAS, the Consortium has operated for many years under the business 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 be completed by August 31, 2013; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY RESOlVE AS FOllOWS: SECTION 1. Pursuant to Section 11 of the Agreement, the City of Temple City, 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 Agreement. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Temple City on the 20 1h day of August, 2013. ATTEST: Peggy Kuo City Clerk Cynthia Sternquist Mayor APPROVED AS TO FORM: Eric S. Vail City Attorney ATTACHMENT C RESOLUTION NO. 2013-06-001 A RESOLUTION OF THE EXECUTIVE BOARD OF THE WEST SAN GABRIEL VALLEY CONSORTIUM (DBA CAREER PARTNERS), A CALIFORNIA JOINT POWERS AUTHORITY, TO VOLUNTARILY WIND-DOWN AND DISSOLVE 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 and other governmental and non-governmental agencies for the planning, coordination, and implementation of employment training and other human services through a joint powers agreement under the provisions contained in the State of California Government Code; and WHEREAS, on March 24, 1993 an amended joint powers agreement was executed by the participating cities and school districts, which superceded the original and revised joint powers agreement; and WHEREAS, the County of Los Angeles Department of Community and Senior Services ("County") has advised the Consortium in a letter dated June 5, 2013, that as of June 30, 2013, the funding for services provided by the Consortium through contracts with the County will be transitioned to another provider; and WHEREAS, the Executive Board for the Consortium has discussed and considered the prospects regarding the continued operation of the Consortium without County funding contracts; and ·WHEREAS, after such deliberations is apparent that the Consortium can longer meet its financial requirements to continue operations and service delivery; and WHEREAS, the Executive Board has decided that the West San Gabriel Valley Consortium dba Career Partners must wind-down its operation and dissolve. NOW, THEREFORE, THE EXECUTIVE BOARD OF THE WEST SAN GABRIEL VALLEY CONSORTIUM DBA CAREER PARTNERS HEREBY RESOLVES AS FOLLOWS: SECTION 1: The Executive Board directs the Executive Director to take necessary actions to wind-down and dissolve the Consortium. PASSED AND ADOPTED this 27th day of June, 2013. ATIEST: c ?;:;z;;~ Yo Sec arytO the Board