HomeMy WebLinkAboutE-17. Notice of Intent to Withdraw from LA WORKS Joint Powers AuthorityCONSENT ITEM
E-17
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: MARCO MARTINEZ, CITY ATTORNEY
DATE: SEPTEMBER 19, 2016
SUBJECT: AUTHORIZE NOTICE OF INTENT TO WITHDRAW FROM “LA WORKS” JOINTS
POWERS AUTHORITY
SUMMARY:
In 1979, the Cities of Azusa, Covina, Glendora and West Covina established a joint powers authority commonly
known as “LA Works”. One of the primary programs that LA Works sought and obtained funding for was on-
the-job training, where the program participant would gain actual work experience through private employers.
This program, which was funded by Los Angeles County, was successful in assisting thousands of persons in
need of basic job skills with on-the-job experience to make them a better candidate when seeking full-time work.
In 2014, the County ceased funding opportunities for LA Works, and after a year of significant work by LA
Works in an attempt to restore funding, they have been unsuccessful. Without funding LA Works has no ability to
provide the programs, and has insufficient funds to continue operating.
Staff believes it would be beneficial for the City to withdraw from LA Works. After careful consideration, there
appears to be no further benefit to the City of continued membership, and some small continuing costs of
remaining a member. In order to withdraw, the City must send written notice to the other member Cities by
October 1, 2016. Once notice is sent, withdrawal will become effective on June 30, 2017. This action authorizes
the City Manager to send written notice to the other member Cities notifying them of the City’s intent to withdraw
from the JPA.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1)Authorize the City Manager to Submit a Notice of Intent of the City to Withdraw from the “LA Works”
Joints Powers Authority; and
DISCUSSION:
In 1979, the cities of Azusa, Covina, Glendora and West Covina established a joint powers authority. While
officially named the “Human Services Consortium of the East San Gabriel Valley”, it is more commonly known
as “LA Works”. The mission of LA Works was to contract with Los Angeles County to provide funding and
administration for regional employment and job training programs. These programs included training for careers
fields ranging from maintenance, transportation to medical.
While LA Works has provided job training to thousands of persons in need over the years, the County has ceased
funding to LA Works since June, 2014. Despite a year of significant effort, LA Works has been unable to restore
Approved
Council Meeting
9/19/2016
Consider Withdrawal from LA Works Joint Powers Authority
September 19, 2016
Page 2 of 2
County funding or secure alternative funding for further operations. This has required it to terminate all
programs, relieve all staff, and basically “close up shop”. Currently, LA Works has insufficient funds remaining
on deposit to continue operating.
Over the last year, the four member cities have been in discu ssion about how to address LA Works, including
possible withdrawal from LA Works, effectively terminating the agency. Under the LA Works joint powers
agreement, a member city may withdraw by giving written notice to the other members by October 1st, with
withdrawal becoming effective on June 30th the following year. The only other requirement for withdrawal is
that the City of Azusa must satisfy any pending obligations it has through LA Works. The City of Glendora has
already withdrawn as of June 30, 2016 and the cities of Covina and West Covina will consider this issue at an
upcoming City Council meeting.
Staff believes it would be beneficial for the City of Azusa to withdraw from LA Works. After careful
consideration, there appears to be no further benefit to the City of continued membership, given that LA Works’
operations have ceased and future funding is extremely unlikely. On the other hand, LA Works continues to
accrue a small amount of costs that it will soon have no funds to pay. LA Works has already requested the City
of Azusa and other member cities to contribute $20,000 each to pay for the costs of winding down the agency.
The City will incur continuing costs as long as it remains a member of LA Works.
In order to withdraw, the City must send written notice to the other member cities by October 1st. Once notice is
sent, withdrawal will become effective on June 30, 2017. A draft of the notice of intent letter is attached
(Attachment 1).
The other condition of withdrawal is that Azusa must satisfy any pending obligations it has assumed through LA
Works. For the reasons set forth in the attached notice of intent letter, the City does not believe it has any such
pending obligations. To the extent that LA Works disagrees, representatives from both agencies will meet to
discuss a resolution to this question. Should circumstances change in the next 9 months such that remaining
within LA Works becomes beneficial to the City once again, the City ca n propose an extension of the withdrawal
date to allow continued participation in LA Works.
Withdrawal from LA Works will not result in any additional risk or liability to the City of Azusa.
FISCAL IMPACT:
The anticipated General Fund impact for the recommended actions is $20,000. In order to fund the anticipated
legal and administrative services costs associated with the close out of the JPA, LA Works has requested a
$20,000 contribution from each City to the JPA to cover these expenses. Staff will prepare a FY 2016-17 mid-
year budget amendment upon City Council approval.
Prepared by: Fiscal Impact Reviewed by:
Marco Martinez Talika M. Johnson
City Attorney Director of Finance
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager
Attachments:
1) Notice of Intent to Withdraw Letter