HomeMy WebLinkAboutMINUTES - 01142014 - C.09RECOMMENDATION(S):
ADOPT Appropriations and Revenue Adjustment No. 5036 approving the transfer of funds in the amount of
$584,867 from the General Fund Reserve for Audit/Litigation to the Employment and Human Services Department to
pay Worldwide Educational Services, Inc. for amounts that are owed for fiscal ending June 30, 1999, June 30, 2000
and June 30, 2001 under Settlement Agreement and Mutual Release (Number 21-190-0).
FISCAL IMPACT:
The recommended action will result in a General Fund cost of $584,867. No State or federal revenue source is
available for these costs.
BACKGROUND:
The County and Worldwide Educational Services, Inc., entered into contracts for fiscal years 1998/1999, 1999/2000
and 2000/2001 (collectively, “the contracts”). Under those contracts, Worldwide Educational Services (“Worldwide”)
provided employment- related services for County clients enrolled in the following federally funded programs: the
Job Training Program Act; the Workforce Investment Act; and Welfare to Work. A contractual dispute arose
between the parties regarding unpaid demands and
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 01/14/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Dorothy Sansoe (925)
335-1009
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: January 14, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 9
To:Board of Supervisors
From:David Twa, County Administrator
Date:January 14, 2014
Contra
Costa
County
Subject:Transfer of Audit & Litigation Reserves for Payment to Worldwide Education Services, Inc.
BACKGROUND: (CONT'D)
close-out costs from each of the fiscal years.
On October 18, 2005, the Board of Supervisors approved a Settlement Agreement and Mutual Release that
required the parties to submit this contractual dispute to a binding audit. The objective of the audit was to verify
and validate the nature and extent of all costs and charges under the contracts. The results of the audit would be
binding on both parties. Further, under the Settlement Agreement and Mutual Release neither party had the ability
to challenge the results of the audit.
On October 31, 2013, the department received the final report from R.J. Riccardi, Inc., Certified Public
Accountants. The report determined that the County owed Worldwide $584,867 for all three fiscal years.
The Employment and Human Services Department does not have sufficient funding to cover the costs of the
amount owed under the Settlement Agreement and Mutual Release. Further, no state or federal revenue is
available to cover any of these costs. Therefore, it is recommended that the Board of Supervisors approve the
requested appropriation adjustment, transferring funding of $584,867 from the General Fund Reserve for
Audit/Litigation to the Employment and Human Services Department.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to pay amounts owed may result in further litigation and costs.
CHILDREN'S IMPACT STATEMENT:
Not Applicable.
ATTACHMENTS
Appropriation Adj 5036