HomeMy WebLinkAboutItem 4.3 Settlement Agreement ACTEB (2) CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 8, 1991
SUBJECT: Alameda County Training and Employment Board/
Associated Community Action Program (ACTEB/ACAP)
Proposed Settlement Agreement
(Prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: 1 . Letter dated June 27, 1991 from Robert Bloom,
ACTEB/ACAP
2. Resolution Authorizing Mayor to Execute Proposed
Settlement Agreement on Behalf of the City of
Dublin
RECOMMENDATION: Adopt Resolution.
FINANCIAL STATEMENT: The Settlement Agreement provides for resolution
of outstanding issues without any financial
contribution.
DESCRIPTION: In 1984, the City of Dublin became a signatory to the
Joint Powers Agreement (JPA) , which established ACTEB/ACAP. The primary
purpose of the JPA was to develop an organization, which could oversee
Federal Job Training and Employment Training within Alameda County. This
was primarily the area addressed by ACTEB. The division referred to as
ACAP was originally established to address federal programs operated as the
"war against poverty" under the Economic Opportunity Act. The original
membership included Alameda County and all cities with the exception of the
City of Oakland. Councilmember Moffatt *has been the City of Dublin
representative on the ACTEB/ACAP Board of Directors.
In 1990, the Governor took action to designate the Alameda County Board of
Supervisors as the Chief Elected Official for Job Training Partnership Act
(JTPA) Programs. This eliminated ACTEB/ACAP's role with administering JTPA
programs. The action by the Governor was the State's response to a dispute
between the City of Berkeley and the remaining members of ACTEB/ACAP.
Alameda County has developed a structure to administer these programs.
Among the tasks necessary to bring about the dissolution of ACTEB/ACAP was
a final resolution to pending litigation with the Federal Department of
Labor.
At a meeting on June 26, 1991 , the ACTEB/ACAP Board was presented with a
settlement agreement proposing a final resolution to outstanding issues
with the U. S. Department of Labor. (DOL) The Board approved the
forwarding of the agreement to each of the member agencies for action by
their governing boards.
As a practical matter, the settlement agreement provides for the release of
ACTEB/ACAP from owing monies to the DOL, pursuant to any previous legal
actions. In addition, ACTEB/ACAP agrees to discontinue efforts to pursue
financial claims against DOL. These disputes were attributable to claims
under programs prior to the City joining ACTEB/ACAP. Section III of the
JPA identifies that the City of Dublin would have been excluded from
liability for any funds misspent under CETA or CSBG, unless the City chose
to contribute towards the obligation of ACTEB/ACAP. Given that the final
settlement does not require any financial contribution, this issue is moot.
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COPIES TO:
ITEM NO. 41# 600 - /-/Q
The settlement agreement also contains several procedural obligations for
ACTEB/ACAP. For example, the JPA shall cease its objections to the
redesignation of the Alameda County Board of Supervisors as the "Chief
Elected Official" for JTPA programs. Also, the agreement contains a one
year prohibition against all twelve members reconstituting a successor
organization to provide JTPA programs.
Future actions will also be necessary to complete the dissolution of ACTEB.
Staff recommends that the City Council adopt the resolution authorizing the
Mayor to execute the settlement agreement. If there are specific questions
related to ACTEB/ACAP services or operations, .Councilmember Moffatt may be
able to respond.
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f
CAlameda County Training and Employment Board
IA ACTEB/ACAP _I_ 0
=-= Associated Community Action Program
Governing June 27, 19 91
Board
Robert E.Nichols
Chairman
Mayor Kay Peck
Albany City of Dublin
Edward Campbell P. O. Box 2340
Vice-Chairperson Dublin, CA 94568
Supervisor
Alameda County
SUBJECT: Request to Place Action Item on City Council Agenda;
"Lil"Arnerich Settlement Agreement on ACTEB/ACAP Audit Findings
Vice-Mayor
Alameda with the U.S. Department of Labor
Bill Ball Dear City Clerk:
Mayor
Fremont
At the direction of the members of Alameda County Training and
Robert Glaze
Vice-Mayor Employment Board and Associated Community Action Program
San Leandro (ACTEB/ACAP) Governing Board at its June 26, 1991 meeting I am
requesting that a special action item be placed on the agenda
Matt Jimenez of our City Council as soon as is possible. Time is of the
Councilman Y Y P
Hayward essence and Governing Board members recognized that many
Tom Kitayama Councils have fewer meetings scheduled for July. Your
Mayor assistance to expedite this action is requested.
Union City
Paul Moffatt A two-step process is now to take place that will have the
Councilman effect of disbanding the ACTEB joint powers agreement,
Dublin settling all outstanding audit disallowances from the earlier
Karin Mohr Period when ACTEB administered the federal Comprehensive
Councilwoman Employment and Training Act (CETA) program, and maintain the
Pleasanton ACAP entity as a stand-alone joint powers agency. This
Skip Rhodes request is for action on the first step, specifically to agree
Mayor to an overall ACTEB debt settlement with the U.S. Department
Piedmont of Labor. In the immediate future, a followup action will be
Neil Riley requested of the cities and count tC G L .1 ciaily disband
Councilman ACTEB, yet maintain ACAP.
Livermore
Robert Savage Attached please find the following two items for your
Vice-Mayor assistance:
Emeryville
Shirley D.Sisk 1. The June 27, 1991 letter from the ACTEB/ACAP
Councilwoman
Newark attorney, Ms. Elaine Wallace, which outlines
a chronologic approach to be taken by ACTEB/
ACAP members. Again, only item number one is
Robert L.Bloom requested of you at this time.
Executive Director
1
Ay a if
22225 Foothill Boulevard, Hayward, California 94541 • (415) 670-5700
2 . The June 25, 1991 letter from the Solicitor's
Office of the U.S. Department of Labor, which
includes the finalized text of the joint
ACTEB/DOL negotiated settlement agreement. In
summary, the agreement provides:
- Termination of DOL's debt collection
efforts on all old CETA audit dis-
allowances (totaling $293 ,790. 00 plus
accrued interest) .
- Dissolution of the ACTEB joint powers
agency.
- Prohibition against reconstitution of
ACTEB, or any successor organization
with 12 or more former members, for
one year from execution of this
agreement.
Termination of an ACTEB-initiated claim
to DOL for unpaid CETA administrative
costs (totaling $542 ,732. 39, plus
accrued interest) .
- Restitution to DOL of an ACTEB-maintained
old CETA account with $1,204 . 38 plus in-
terest contained therein.
Cessation of ACTEB's objections to the
redesignation actions which have led to
Alameda County now serving as the Job
Training Partnership Act service de-
livery area for all of Alameda County,
aside from Oakland.
Agreement that both DOL and ACTEB will
bear their own fees and expenses regard-
ing all these proceedings. DOL agrees
to release its legal expense claim of
$216. 00 from the recent ACTEB vs. DOL
appeal to the federal Ninth Circuit
Court.
- Agreement that ACTEB will not further
appeal or contest the two decisions of
the Ninth Circuit Court.
- This agreement shall be the basis to
dismiss or withdraw all pending matters
with prejudice.
2
The net effect of this settlement is a "win-win" situation
where ACTEB is relieved of any possible cash pay-back
obligation (along with member governments) and DOL sees a
dissolution of the ACTEB entity with which DOL has been forced
to contest various audit issues and service delivery area
designation actions. This latter outcome where ACTEB
dissolves, is certainly acceptable to the Governing Board
insofar as the various appeals were not successful, for the
immediate time period Alameda County is the recognized
administrator for the federal Job Training Partnership Act
program, and ACTEB has no basis for current existence. Any
new interests on governance structures for the future can now
start anew.
The settlement of various financial amounts due to one another
is, in fact, the hoped-for and requested ability to use
"offsets" rather than cash as the means to settle the debts.
The DOL acceptance of such an approach has been sought for the
last seven years.
As a closing note, ACTEB's experience under the Job Training
Partnership Act program has been exemplary in terms of having
no disallowed costs. The final audits for the ACTEB will now
also be concluded and there will likely be no costs due to the
Department of Labor based on JTPA disallowances. ACTEB can
close down after sixteen years with no remaining liabilities
and no adverse experiences that required financial
contributions from the member governments.
The requested action, therefore, is to schedule City Council
action to approve this "Settlement Agreement" , and
specifically to authorize your mayor to sign said agreement.
Should you have need for additional information or assistance
feel free to contact Ms. Wallace at 530-9616, or Mr. Jack
Summerfield of this office, at 670-5777. Thank you in advance
for your assistance.
Sincerely,
Robert L. Bloom
RLB:se
cc: Mayor
Governing Board member
Elaine Wallace
Robert Nichols
3
RESOLUTION NO. - 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, there have been certain disputes between DOL and ACTEB;
and
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:
ABSENT:
Mayor
ATTEST:
City Clerk
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JU I I �.
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 sea. , 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 local 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;
LAMBIT A
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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 Cir. 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 ALJ 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 $1204 . 38 , 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 sea. , 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. Secretary 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
DATED :
MICHAEL SWEENEY
Mayor, City of Hayward
DATED:
CATHIE BROWN
Mayor, City of Livermore
DATED:
DAVE SMITH
Mayor, City of Newark
DATED:
SKIP RHODES
Mayor, City of Piedmont
DATED:
KENNETH MERCER
Mayor, City of Pleasanton
DATED:
DAVE KARP
Mayor, City of San Leandro
DATED:
TOM KITAYAMA
Mayor, City of Union City
DATED:
RONALD PETERSON
Assistant United States Attcrnev
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DATED:
EDWARD A. TOMCHICK
Director, Office of Grants and
Contracts Management
U.S . Department of Labor
DATED:
VINCENT C. COSTANTINO
Attorney for the U. S .
Department of Labor
Office of the Solicitor