HomeMy WebLinkAboutReso 071-91 Labor&ACTEB AgmtRESOLUTION NO. 71 - 91
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING THE MAYOR TO EXECUTE
A SETTLEMENT AGREEMENT BETWEEN
THE U. S. DEPARTMENT OF LABOR (DOL) AND
THE ALAMEDA COUNTY TRAINING AND EMPLOYMENT BOARD (ACTEB)
WHEREAS, ACTEB was created by a Joint Powers Agreement (JPA)
dated September 1, 1983; and
WHEREAS, the City of Dublin became a member of ACTEB through
execution of the JPA; and
WHEREAS,
and
there have been certain disputes between DOL and ACTEB;
WHEREAS, ACTEB and DOL desire to settle these matters without
the necessity of additional litigation; and
WHEREAS, the existing JPA identifies that the City of Dublin is
not liable for any funds misspent under CETA or CSBG; and
WHEREAS, the settlement does not require any financial
contribution from the City of Dublin.
NOw, THEREFORE, BE IT RESOLVED that the City Council of the City
of Dublin does hereby authorize the Mayor to execute the attached
Settlement Agreement (Exhibit A) by reference incorporated herein.
PASSED, APPROVED AND ADOPTED this 8th day of July, 1991.
AYES:
NOES: None
ABSENT: None
ATTEST~rk~~
Councilmembers Burton, Howard, Jeffery, Moffatt and
Mayor Snyder
a:resoacte.doc.agenda#5
SETTLEMENT AGREEMENT
THIS AGREEMENT is entered into between the U.S. Department
of Labor ("Department"), as represented by the Director, Office
of Grants and Contracts Management, the United States, as
represented by the United States Attorney, and the Alameda County
Training and Employment Board ("ACTEB"), as represented by the
Executive Director of that agency.
WHEREAS, the Department and ACTEB entered into various grant
agreements, under the authority of the Comprehensive Employment
and Training Act ("CETA"), 29 U.S.C. § 801 et seq., as amended,
which with any and all amendments, changes, and modifications
hereto are hereinafter referred to as "the Grants";
AND WHEREAS, ACTEB, as presently constituted, consists of 13
units of 1Qcal government organized as a consortium: Alameda
County, and the cities of Alameda, Albany, Dublin, Emeryville,
Fremont, Hayward, Livermore, Newark, Piedmont, Pleasanton, San
Leandro and Union City;
AND WHEREAS, the City of Berkeley withdrew from ACTEB as of
April 6, 1990;
AND WHEREAS, the Grant Officer, pursuant to various audit
reports examining these Grants, has issued Final Determinations
and sought to collect disallowed costs under these Grants;
AND WHEREAS, ACTEB has appealed these determinations of the
Department;
EXHIBIT
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AND WHEREAS, the matters to be resolved herein include the
following four debts totalling $293,790.00, plus accrued.
interest:
a. Pursuant to Audit Report No. 09-80-C-041-01, the
Regional Grant Officer in San Francisco issued a Final
Determination which disallowed costs incurred under the various
grants audited.
1) ACTEB appealed the Final Determination to the
Office of Administrative Law Judges ("OALJs") and the case was
docketed as Case No. 81-CTA-63. The Administrative Law Judge
("ALJ") affirmed judgment for the Department in the amount of
$134,117.60. Payments and credits reduced the amount in dispute
to $85,592.60. ACTEB appealed to the U.S. Court of Appeals for
the Ninth Circuit and judgment was entered for the Department.
Alameda County Training and Employment Board v. Donovan, 743 F.2d
1267 (9th ~ir. 1984).
2) On November 25,' 1987, the U.S. District Court
for the Northern District of California entered summary judgment
for the United States on the Department's debt collection action
in the sum of $85,592.60 principal plus accrued interest. United
States of America v. Alameda County Training and Employment
Board, Case No. C-86-6390 JPV.
b. Pursuant to Audit Report Nos. 09-80-C-041-P1 and
09-82-C-041-P1, the Regional Grant Officer issued two Final
Determinations which disallowed costs incurred under the various
grants audited.
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1) In the first case, ACTEB appealed this matter
to the OALJs and this case was docketed as Case No. 83-CTA-62.
On August 25, 1988, the AIJ issued a Decision and Order.affirming
the determination of the Regional Grant Officer that the amount
of $153,'939.69 was due and owing to the Department. The
Secretary declined to review ACTEB's appeal and the ALJ's
Decision and Order became the final agency action of the
Department.
2) In the second case, ACTEB also appealed the
Final Determination to the OALJs and the case was docketed as
Case No. 83-CTA-208. On April 6, 1989, the ALJ issued a Decision
and Order affirming the determination of the Regional Grant
Officer and finding that the Grant Officer properly disallowed
$27,181.00~. ACTEB did not appeal the decision and, thus, the
debt of $27,181.00 became the final decision of the Secretary of
Labor, and due and owing to the United States.
3) On September 27, 1990, the U.S. District
Court for the Northern District of California entered summary
judgment for the United States in the sum of $183,068.79
principal plus accrued interest. United States of America v.
Alameda County Training and Employment Board, Case No. C-89-3074
JPV. This matter is now on appeal to the United States Court of
Appeals for the Ninth Circuit in United States of America v.
Alameda County Training and Employment Board, Case No. 90-16476
(9th Cir.).
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c. Pursuant to Audit Report No. 09-81-C-041-01, the
Regional Grant Officer issued a Final Determination which
disallowed costs incurred under the various grants.
1) ACTEB appealed the Final Determination to the
OALJs and the case was docketed as Case No. 82-CTA-267. This
matter is now pending in the OALJs and the amount in issue is $
27,078.00.
AND WHEREAS, ACTEB has filed a claim with the Department for
$542,732.39 for previously unclaimed indirect costs to which
ACTEB alleges it is entitled under CETA. Said claim has been
denied by the Grant Officer and ACTEB has appealed this denial to
the OALJs and the case has been docketed as 90-CTA-3.
AND WHEREAS, ACTEB and the Department desire to settle these
matters without the necessity of additional litigation;
THEREFORE, the parties hereby stipulate and agree as
follows:
1. ACTEB stipulates that it has no non-federal assets,
other than as set forth below in paragraph 6, except for
miscellaneous equipment and office furniture. Said miscellaneous
equipment and furniture will be turned over to the successor Job
Training Partnership Act grantee in the geographical area
formerly occupied by ACTEB.
2. The United States Attorney for the Northern District of
California, the U.S. Department of Labor and the Department's
attorney have reviewed these matters and have determined that,
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consistent with law and policy, it is in the best interest of the
Government to terminate debt collection action against ACTEB on
the above noted four debts totalling $293,790.00 plus accrued
interest.
3. The members of ACTEB will dissolve the consortium in
accordance with the State of California Joint Powers Act within
90 days of the execution of this Agreement. Such dissolution
will be effectuated by the approval of the full governing board
of ACTEB as well as the consent of each members' City Council or
County Board of Supervisors. Each member of ACTEB shall agree to
abide by the terms of the agreement set forth herein.
4. The members of ACTEB further agree that they will not,
for a period of one year from the date of execution of this
agreement,.reconstitute ACTEB or form any successor organization
to ACTEB for purposes of administering Federally funded
employment and training programs. This provision shall be
construed so as to prohibit the formation of any successor
organization which includes twelve or more former members of
ACTEB.
5. ACTEB agrees, on behalf of all of its members, and each
member individually agrees, to release and waive its late claim
for $542,732.39 (plus accrued interest, if any) which was filed
with the Department on September 23, 1983.
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6. ACTEB agrees to turn over to the Department all funds
which it currently holds in a "CETA" bank account totalling
approximately $1204o38, plus interest.
7. ACTEB agrees that it will not commence and will cease
all litigation and appeals contesting, objecting to or in any
other manner disputing the designation or redesignation of a
grantee under the Job Training Partnership Act, 29 U.S.C. § 1501
et seq., for the geographical area formerly administered by ACTEB
for the time remaining in Program Year 1990 and 1991. This
includes, but is not limited to, appeals to the U.S. Department
of Labor, Federal District Court and to the U.S. Court of
Appeals.
8. Each party hereby agrees to bear its own fees and other
expenses, including attorney fees, incurred by such party in
connection with any stage of these proceedings, including
negotiating this settlement. The Department also agrees to
release its claim for $216.00 in fees and expenses incurred in
Alameda County Training and Employment Board v. SecretarV of
Labor, Case No. 91-70252.
9. ACTEB agrees that it will not appeal, nor further
contest in any manner, the two cases which the United States
Court of Appeals for the Ninth Circuit has decided against it, in
Alameda County Training and Employment Board v. Secretary of
Labor, Case Nos. 90-70537 and 91-70252.
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10. This Settlement Agreement shall be the basis upon which
the parties shall seek dismissal or withdrawal of all of the
above noted matters with prejudice.
DATED:
ELAINE WALLACE
Attorney for the Alameda County
Employment and Training Board
DATED:
ROBERT BLOOM
Executive Director
Alameda County Employment and
Training Board
DATED:
MARY KING
President, Board of Supervisors
County of Alameda
DATED:
WILLIAM WITHROW
Mayor~ City of Alameda
DATED:
THELMA RUBIN
Mayor, City of Albany
DATED:
PETER SNYDER
Mayor, City of Dublin
DATED:
GREG HARPER
Mayor, City of Emeryville
DATED:
WILLIAM BALL
Mayor, City of Fremont