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2018-011 Employ-2-Empower ProgramDate: February 2, 2018 Report No. 2018-011 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: To provide City Council with an update of Employ-2-Empower, Denton’s employment program for persons experiencing homelessness. EXECUTIVE SUMMARY: Employ-2-Empower (E2E) is a pilot project employing people experiencing homelessness working on clean-up projects at City facilities. At this time the E2E partners are requesting to terminate the program and the MOU agreement with the City effective February 9, 2018. BACKGROUND: In late 2016, Denton City Council members expressed interest in pursuing a similar program to Albuquerque’s program called “There’s a Better Way”. City staff was asked for ideas regarding how to implement a program that creates employment opportunities for the homeless in Denton. A planning group of city staff and local nonprofits drafted a project proposal and identified the level of interest from other community partners. The group reviewed similar projects offered in Albuquerque, Amarillo, and Denver. As a result, the group drafted a proposal for a pilot project called Employ-2-Empower (E2E). The program was designed to help the literally homeless gain the skills, experience and confidence needed to find living-wage jobs by 1) Helping people develop a job history; 2) Providing training and experience to develop soft skills; and 3) Connecting people to long-term employment opportunities. On February 21, 2017, the group presented the E2E pilot project to the City Council and requested $42,000 in funding to be leveraged with cost sharing in-kind options provided by multiple community partner agencies through in-kind service delivery. In addition, the project required city departments to identify work projects that are suitable for workers enrolled in the program. City Council authorized staff to proceed with an agreement granting $21,000 funded from FY 2016-17 and $21,000 from FY 2017-18 to support the program. In June 2017, the City of Denton and Denton Assistance Center, Inc., d/b/a Serve Denton (“Serve Denton”) agreed upon a Memorandum of Understanding (MOU) and Council authorized the MOU agreement through an ordinance on June 20, 2017. The City provided the first installment of $21,000 in August of 2017. The first employees went to work in September 2017 cleaning City right-of-ways and parks. Employees earned $9 and hour, working on Tuesdays and Wednesdays, and they attended one hour of paid training per week from other agencies like the United Way. In addition, participants received lodging at Monsignor King Outreach Center (MKOC), meals for the day from Our Daily Bread (ODB), and work clothing like gloves and boots from Vision Ministries and MKOC. Date: February 2, 2018 Report No. 2018-011 Vision Ministries provides transportation to and from job sites, as well as job site supervision and coordination with City staff for weekly job site projects. The In-Kind contributions from all partners totals just over $5,000, matching current expenditures for salaries and payroll taxes. DISCUSSION: The goal of E2E was to employ ten participants in the program with five participants enrolled for the first six months and another five in the second six months. At the initial launch of E2E, the program experienced limited success in recruiting and hiring participants finding that the lack of stable housing is a significant barrier to participation. Other complicating factors were the need for overall program design improvements to better serve the whole client, including case management support. E2E received 50 applications with 17 individuals showing up for interviews. Fifteen were accepted into the program. Out of the 15, nine completed the required drug testing with four actually reporting for work. All four participants exited the program early: two secured employment, one moved to another city, and one left the program because of garnishments. At this time the Serve Denton with agreement from all E2E partners are requesting to terminate the program and the MOU agreement with the City on February 9, 2018. Recognizing the issues with the existing program, they expressed the desire to be a fiscally responsible partner with the City. The E2E partners wish to take time to assess the pilot findings, review the program design, and plan to return with improvements or a new program proposal at a later date. CONCLUSION: E2E is a pilot project. The E2E partners have evaluated the program on an ongoing basis and have determined that under the current design it will not meet the desired outcomes and would not be a responsible use of the funds. City staff agrees with this assessment and is therefore recommending that the request to terminate the MOU be accepted. The City Manager has authorization to agree to mutual termination of the contract, unless City Council has questions or concerns regarding the MOU. At the date of termination, any remaining funds from the initial $21,000 allocation will be provided to the City from Serve Denton as required by the MOU. ATTACHMENT(S): 1. Letter Requesting to Terminate 2. MOU STAFF CONTACT: Danielle Shaw, Human Services Coordinator Community Development (940) 349-7237 Danielle.Shaw@cityofdenton.com MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DENTON,1; EMPLOY 1 EMPOWER HOMELESSNESSDENTON' S EMPLOYMENT EMPOWERMENT PROGRAM FOR PERSONS EXPERIENCING STATE OF TEXAS COUNTY OF DENTON § This Memorandum of Understanding, made this _ day of, 2017, by and between the City of Denton, A Texas municipal corporation, w Its principal office at 215 East McKinney Street, Denton, Denton County, Texas 76201, herciriaftex° called "City" and Denton Assistance Center, Inc. d/b/a Serve Denton, a 5016 organization with an office at 1980 East University Drive, Denton, Texas 76209, hereinafter called "Serve Denton," acting herein, by and through their duly authorized representatives. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: 11 1 There is growing recognition that homelessness is a significant issue in our community. The number of homeless will continue to increase and the costs to the community will continue to mount unless immediate action is taken. Employment empowers people experiencing homelessness. Meaningful and sustainable employment is a key component to creating and maintaining housing stability. However, individuals experiencing homelessness face obstacles to finding and maintaining employment. Connecting them with job training and placement programs is critical to ensure they have the tools needed to exit homelessness and for long-term stability. This program will help the literally homeless gain the skills, experience and confidence needed to find living -wage jobs. I, Help people develop ajob history. 2, Provide training and experience to develop soft skills. 3.. Connect people to long-term employment opportunities. Denton City Council members expressed interest in pursuing a similar program to Albuquerque, New Mexico's program called "There's a Better Way". City staff were asked for ideas how to implement a program that creates employment opportunities for the homeless in Denton. In November, 2016 a planning group of city staff and local nonprofits was assigned the task to r,, a project proposal and identify level of interest for implementation from other community partners. The group met regularly through January 2017 making final recommendations to City Council for a program called Employ 2 Empower. The program sought $42,000 in funding to be leveraged with cost sharing options through in-kind service delivery through multiple partner agencies. This Memorandum of Understanding (MOU) between the City and Serve Denton regards the implementation of a homeless employment initiative known as Employ 2 Empower (the Program") under which Serve Denton will employ literally homeless persons (the Participants"). 119-00-TIMNOVIINVIMi The City of Denton, Texas Contribution The City will provide a one-time contribution to fund, in part, the Program, Barbara Ross, Community Development Manager, will serve as the key staff contact to oversee the City's contribution, The City agrees to: 1, Fund a total of $42,000 to be used by Serve Denton to employ Participants in t Program. Participants in the Program are expected to work 2 days a week, for period not to exceed six months. The City and Serve Denton agree that Participan will serve as at -will employees of Serve Denton, and nothing in this Agreement sh be construed to create a right of any Participant to employment with Serve Dento the City, or any other entity or person. The funding from the City is expected support the wages and administrative costs for 4,000 man-hours of labor for around 10 employees, 1 The above contemplated amount will be paid pursuant to a payment schedule: Pay 0 Serve Denton $21,000 to be funded from FY 2017 payable in June 2017 and $21,0 to be funded from FY 2018 payable in October 2017. 11 3. Work with Serve Denton's lead staff to approve outputs and outcomes associated with this initiative. 4. Notify the City Council, Denton County Homeless Coalition and the United Way of any related activities addressing homelessness so as not to duplicate efforts. 5. Identify City department lead staff who can provide weekly job projects for Participants in the Program. Serve Denton will serve as the manager and supervisor of the Program. Serve Denton will receive City funds and seek input from other community partners concerning Serve Denton's cmployment of Participants. The City and Serve Denton agree that all decisions concerning hiring, termination, employee discipline, work schedules, or any other decision requiring the exercise of employer discretion will be made by Serve Denton alone. Danita Summers will serve as the key staff contact for Serve Denton concerning the management of the Program. MMMi- _r 1. As the project manager and legal employer, receive City funds to administer the Program and pay Participants. 2. Provide an resources administrative services to handle employee processing and pay wages for hours worked to Participants in the Program. 3. Spend no more than $ 6,000 of the funds provided by the City on its administrative costs. 4. Work with the Employ 2 Empower Steering Committee and pilot project partners to identify and update outputs and outcomes associated with this initiative. 5. Ensure that Employ to Empower Steering Committee and pilot project partners provide regular reports to the City on the progress toward agreed upon outputs and outcomes. The Program is designed to help the literally homeless gain the skills, experience and confidence needed to find living -wage jobs. The following services will be provided by Serve Denton, or their contractors, as part of this program. I Within the period of this Agreement, provide training and experience to at least ten Participants in order to develop job and soft skills. 2. Coordinate with the City to identify work requirements and determine a work schedule for the persons in this program. 3. Help the persons in this program develop ajob history. 11 4. Connect graduates of this program to long-term employment opportunities. 5. The City and Serve Denton agree that Participants will only pick up litter in mow open areas along main thoroughfares and city parks, paint park restrooms, paint tra cans, or paint playground equipment. 6. The City and Serve Denton agree that at no time will any Participant operate alelectricorgasoline powered tool or equipment, use a ladder of any height, or work areas not previously mowed on a monthly basis. 7. Serve Denton agrees to provide appropriate safety equipment including reflecti vests, eye protection, gloves, work boots, sun hats, sunscreen, water, and handhe tools as Serve Denton, in its sole discretion, deems appropriate. This MOU will be executed upon signature of both parties and will apply for the period of June 1, 2017 to May 31, 2018. This MOU may be modified, altered, or revised, by mutual written consent of all parties, by the issuance of a written amendment, signed and dated by all the parties. In consideration of the receipt of funds from the City, Serve Denton agrees to the following terms and c1n4itions. I The City shall not be obligated or liable under this Agreement to any party other than Serve Denton for payment of any monies or provision of any goods or services. 2. All expenditures of these funds shall be those in accordance with the scope of services as provided herein and shall not utilize these funds for any other purpose. 3. Serve Denton will establish, operate, and maintain an account system for this program that will allow for a tracing of funds and a review of the financial status of the program. The system will be based on generally accepted accounting principles as recognized by the American Institute of Certified Public Accountants. 4. Serve Denton will maintain financial records that will provide accurate, current, separate, and complete disclosure of the status of the funds received under this Agreement, and permit authorized officials of the City to review these records at any time. 5. Serve Denton will not enter into any contracts that would encumber funds provided by the City for a period that would extend beyond the term of this Agreement. 6. Serve Denton will appoint a representative who will be available to meet with City officials when requested. 7. Serve Denton will permit authorized official from the City to carry out monitoring andevaluation of Serve Denton's activities to ensure adherence to the Scope of Services, and Program Goals and Objectives. 8. Serve Denton will submit performance/beneficiary reports on a quarterly basis to the City, to include information such as: number of persons assisted, training provided; El majornumber of persons transitioned to permanent employment; and explanation of any program VURI 1 tAW-rel l a combined single limits of not less than $1,000,000. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. Said General Liability shall provide coverage for: a. premises, operations; i products, and completed operations; c. independent contractors; insuranced. contractual liability covering this contract; and e. broad forrn property damage coverage. Serve Denton shall be required to purchase and maintain Workers' Compensation addition 1 meeting the minimum statutory requirements 1 of Employer's ,i of ,t $100,000 for each accident, 100,000 per each i 1 ` $500,000 policy 1 occupational disease. DentonCity need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. 3. Serve . be required to purchase and maintain CommercialAutomobile Liability,nce with Combined Singleof not. 00 00r either in a single policy or in a combinationof basic and umbrella or excess policies. policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract, and shall provide coverage for any auto, or all owned, hired, and non -owned R'utos. Serve Denton will maintain adequate fj continuous automobile li,.... ! on all coursevehicles owned, leased or operated for this program. Additionally, all employees and contractors of Serve Denton who are required to drive a vehicle in the normal scope and 1: this program possess a valid Texas driver'sautomobile lossesliability insurance. Evidence of the employee's current possession of a valid license and insurance must be maintained on a current basis in Serve Denton's files. 5Actual 1 covered by as required by 1n are not allowable c1 under+ and remain the solei1 i of Denton. 4 policy or policies of insurance. + , clause which requires, Gfi priorServe Denton be notified in writing of any cancellation of change in the policy at least 3C days 1 such change or , f W T Any general liability or automobile insurance policies shall name the City of Denton an Additional Insured. and agents against any and all claims, demands and lawsuits, and shall pay all costs and attorney's fees incurred in the defense thereof, for any injury to persons or premises damage, including claims of Serve Denton employees, agents and invitees allegedly resulting from any act, incident, or accident arising from this program, except for those acts, incidents, or accidents arising from the gross negligence or willful misconduct of the City. The City and its employees and agents are not liable to Serve Denton employees, agents, invitees, or any other persons for any injury to any of those persons or for any damage to personal property caused by an act, omission, or neglect. It is expressly intended that any Participants in the Program working on job projects identified by the City for the Program are not employees of the City and shall not be entitled to any benefits from the City, including workers' compensation coverage. Additionally, Serve Denton expressly releases, waives, and indemnifies the City for any claims by its employees in the Employ 2 Empower program for workers' compensation or related benefits, and shall cause it workers' compensation insurance carrier to provide a Waiver of Subrogation in favor of the City. Serve Denton shall provide services to the City as independent contractors, not as employees of the City. Serve Denton shall not have or claim any right arising from employee status. parulers friolin Verfruers, *l- L190 111U&C +Itc all Ug011llor r7,O'l*OSCllLaMO:V1 UIC 411101-) *1- L19; U1111014,Ral rights to any third it other than as expressly provided herein. FAII 101 11V V 111AN V U039F.1,11211 The parties may agree to settle any disputes under this Agreement by submitting the dispute to mediation. No mediation arising out of or relating to this Agreement may proceed without the agreement of both parties to submit the dispute to mediation. The location for the mediation shall be the City of Denton, Denton County, Texas unless a different location is agreed I V 04 11140 1 11MIN 9 UJIMUM."T"! - Notwithstanding any other provision of this Agreement, either party may, for reasons speciflei below, terminate by giving thirty (30) days' advance written notice to the other party. 0 This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the non-performance, 2.nd not less than thirty (30) calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. If the Agreement is terminated prior to completion of the services to be provided hereunder, Serve Denton shall immediately cease all services and shall render a final bill for services to the City within thirty (30) days after the date of termination. The City shall pay Serve Denton for all services properly rendered and satisfactorily performed and for reimbursable expenses incurred prior to the date of termination, in accordance with "Compensation." Should the City subsequently contract with a third party for the continuation of services on the Program, the third party and Serve Denton shall ncooperateinprovidinginformation. Serve D` II shall turn over all documents prepared or furnished by Serve Denton pursuant to this Agreement to the City on or before the date of termination, but may maintain copies of such documents for its use. Serve Denton shall refund to City any excess payment for services that were not rendered within ten working days of the City's request. This includes any sum of money which has been paid by the City and which the City at any time thereafter determines: has resulted in overpayment to Serve Denton; or has not been spent strictly in accordance with the terms of this Agreement; or is not supported by adequate documentation to fully justify the expenditure, Approval by the City shall not constitute, nor be deemed a release of the responsibility and liability of Serve Denton, its employees, associates, agents, subcontractors, and sub Partners for the accuracy and competency of their designs or other work; nor shall such approval be deemed to be an assumption of such responsibility by the City for any defect in the design or other work prepared by Serve Denton its employees, subcontractors, agents, and Partners. Serve Denton retains responsibility and liability at all times during this Agreement and after completion of this Agreement. milftlla W All notices, communications, and reports required or permitted under this Agreement shall b(w personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless 1 specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To SERVE DENTON: Denton Assistance Center, Inc. d/b/a Serve Denton 1980 East University Drive Denton, Texas 76209 0 To- CITY. City of Denton Barbara Ross INEMM. 1wig IIF -9JI Mm4rumasymiI All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. 0 WYN J'A 013 1 a V If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention ofthe stricken provision. Serve Denton shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. Serve Denton covenants and agrees that its officers, employees, and agents have no interest, and will acquire no interest, including personal financial interest, either directly or indirectly, which will conflict in any manner with the performance of the services called for under this Agreement. No officer or employee of the City shall have a financial interest, direct or indirect, in any contract with the City, or be financially interested, directly or indirectly, in the sale to the City of any land, materials, supplies or services, except on behalf of the City or in compliance with the provisions of the City of Denton's Personnel Policies and Procedures Manual. Any violation of this provision shall render this Agreement voidable at the discretion of the City. Serve Denton represents that it has or will secure, at its own expense, all personnel required to f1 )--W7I &RII ;r*t or officers of, or have any contractual relations with the City. Serve Denton shall inform the City of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. 0 All services required hereunder will be performed by Serve Denton. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. In those instances deemed necessary by the City, Serve Denton shall conduct background checks on Participants BOL - , " CCTI-,T-fU-- I - transfer any of its scope of services under this Agreement (whether by assignment, novation, or otherwise) without the prior written consent ofthe City, and such consent will not be unreasonably withheld or delayed. Should Serve Denton assign any part of the monies due under this Agreement, Serve Denton is required to provide written notice of the same to City. Any assignment of monies due under this Agreement shall not change any of the terms or conditions of this Agreement to include but not limited to the terms and conditions for payment under this Agreement. No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. This Agreement shall be governed by the laws of the State of Texas, venue and jurisdiction of any suit or cause of action arising under this Agreement shall lie exclusively in a court of competent jurisdiction sitting in Denton County, Texas. The City shall have the right to audit and make copies of the books, records and computations pertaining to this Agreement. Serve Denton shall retain such books, records, documents and other evidence pertaining to this Agreement during the contract period and five (5) years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents andis evidence shall be available, within 10 business days ofwritten request. Further, the Serve Denton shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this Agreement, and to allow the City similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost 1f the audit will be borne by fl-po City unless the audit reveals an overpayment of 1% or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by Serve Denton, which must be payable within five business days of receipt of an invoice. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in the City's sole discretion, grounds for termination thereof. Each of the terms books" "records" "documents" and "other evidence" as used above shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. SIGNATURES Todd Hileman, City Manager City of Denton Date Denton Assistance Center, Inc. d/b/ iiN Serve Denton By: Karen K. Martin Title: Executive Director City City Attorney Date 10