HomeMy WebLinkAbout25D - AGMT RAPID RESPONSE SERVICESREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
APRIL 17, 2018
TITLE:
APPROVE AN AGREEMENT WITH
CALIFORNIA MANUFACTURING
TECHNOLOGY CONSULTING FOR RAPID
RESPONSE SERVICES
{STRATEGIC PLAN NO. 2,4)
CITY NAGER
RECOMMENDED ACTION
Cd, =10 :(e1 M1a19 0 N l 1t*1*91i I U
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 151 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute an agreement with California
Manufacturing Technology Consulting for Rapid Response services for a one year term
beginning April 17, 2018 through June 30, 2019, in an amount not to exceed $100,000, subject to
non -substantive changes approved by the City Manager and City Attorney.
DISCUSSION
The WORK Center provides Rapid Response services to Santa Ana businesses that are
downsizing under the Workforce Innovation & Opportunities Act (WIOA). The purpose of Rapid
Response is to enable laid -off workers to return to work as quickly as possible, or to prevent
displacements altogether. This type of prevention under WIOA is commonly known as layoff
aversion. The intent of such services is to provide solutions to companies that want to save jobs.
In January 2018, the WORK Center, in order to expand services under the Rapid Response
program, procured layoff aversion activities to the manufacturing sector. The manufacturing
focus was due in large part to the Santa Ana Workforce Development Board's strategic plan.
These services will allow the City of Santa Ana to provide this service to an important sector of
our local economy. Staff determined that California Manufacturing Technology (CMTC) qualified
as a sole source provider of program services to the manufacturing sector.
A sole source determination was reached because CMTC is the only Manufacturing Extension
Partnership (MEP) in the State of California. The MEP program provides services to
manufacturing companies on behalf of the Federal Department of Commerce. This program
offers assistance to small and mid-size manufacturing companies ranging from process
improvement, workforce development to specialized business practices. It is meant to make the
company more competitive and thereby save and create jobs. CMTC receives a grant from the
Department of Commerce to identify businesses and assess needs. CMTC is the only MEP
25D-1
Agreement with CMTC for Rapid Response Services
April 17, 2018
Page 2
Center in California and the only provider in Southern California. CMTC is a non-profit
corporation that provides manufacturing training and technical assistance to improve productivity
and growth of manufacturing firms determined to be in need of services. CMTC has been in
operation for over 25 years. They have run Rapid Response projects on behalf of 13 California
workforce development boards. In 2016, CMTC delivered services to over 1,000 manufacturers.
These firms reported a combined $647 million sales increase, $169 million in cost savings and
over 8,500 jobs saved across California.
The proposed services require CMTC to identify manufacturers at risk of laying off before the
business is forced to downsize. CMTC will assess need and then define, and recommend
assistance. Services will include the use of consultants to help selected firms overcome issues
found during the assessment phase. Upon service completion, an independent third party will
survey firms for satisfaction, economic impact and jobs saved within 6 to 12 months. The
intended performance outcomes include a minimum of 10 Santa Ana manufacturers served and
documenting 100 saved jobs.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's effort to meet Goal #2 - Youth, Education, Recreation,
Objective #4 (Partner with groups and organizations to promote education, senior services, job
training and development for all Santa Ana residents).
FISCAL IMPACT
Funds are available in the WIOA Rapid Response Contract Services -Professional account (no.
12318756-62300) for expenditure as follows:
Fiscal Year
Amount
2017-18
$ 25,000
2018-19
$ 75,000
Total
$100,000
The amounts identified are estimates and are subject to change.
obert M. Zu S ied
Interim Executive ' ector
Community Development Agency
Exhibit: 1. Agreement
APPROVED AS TO FUNDS AND ACCOUNT:
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
25D-2
EXHIBIT 1
AGREEMENT TO PROVIDE NIANUFACTURING
SECTOR LAYOFF AVERSION SERVICES
THIS AGREEMENT is made and entered into this day of April, 2018, by and between
California Manufacturing Technology Consulting ("Consultant"), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California ("City"),
RECITALS
A. The City desires to retain a consultant having special skill and knowledge in the field of
manufacturing sector layoff aversion services to avert layoffs by identifying at -risk
manufacturers before the manufacturer is forced to lay-off.
B. Consultant represents that Consultant is able and willing to provide such services to the
City.
C. In undertaking the performance of this Agreement, Consultant represents that it is
knowledgeable in its field and that any services performed by Consultant under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations
required to fully and adequately complete the services described and set forth in Exhibit A,
attached hereto and incorporated by reference. Additional information regarding the
Manufacturing Sector Layoff Aversion Program is provided in Consultant's Funding Overview
attached hereto as Exhibit C and incorporated by reference.
2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services,
the rates and charges identified in Exhibit B, attached hereto and incorporated by
reference. The total amount of the Agreement shall not exceed $100,000.
b. Payment by City shall be made within forty-five (45) days following receipt of proper
invoice evidencing work performed, subject to City accounting procedures. Payment
need not be made for work which fails to meet the standards of performance set forth
in the Recitals which may reasonably be expected by City.
Page 1 of 11
25D-3
EXHIBIT 1
3. TERM
This Agreement shall commence on the date first written above and continue through June -
30, 2019, unless terminated earlier in accordance with Section 15 below. The term of this
Agreement may be extended upon a writing executed by the City Manager and the City Attorney.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the City. This Agreement is not intended nor shall
it be construed to create an employer-employee relationship, a joint venture relationship, or to
allow the City to exercise discretion or control over the professional manner in which Consultant
performs the services which are the subject matter of this Agreement; however, the services to be
provided by Consultant sball be provided in a manner consistent with all applicable standards and
regulations governing such services. Consultant shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use,
modify, reuse; or sublicense any and all copyrights, designs, and other intellectual property
embodied in plans, specifications, studies, drawings, estimates, and other documents or works of
authorship fixed in any tangible medium of expression, including but not limited to, physical
drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or
caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant
shall require all subcontractors to agree in writing that City is granted a non-exclusive and
perpetual license for any Documents & Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all
Documents & Data. Consultant makes no such representation and warranty in regard to
Documents & Data which were provided to Consultant by the City. City shall not be limited in
any way in its use of the Documents and Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City's sole risk.
6. INSURANCE
Prior to undertaking performance of work under this Agreement, Consultant shall maintain
and shall require its subcontractors, if any, to obtain and maintain insurance as described below:
a. Commercial General Liability Insurance. Consultant shall maintain commercial
general liability insurance naming the City, its officers, employees, agents,
volunteers and representatives as additional insured(s) and shall include, but not be
limited to protection against claims arising from bodily and personal injury,
including death resulting therefrom and damage to property, resulting from any act
or occurrence arising out of Consultant's operations in the performance of this
Agreement, including, without limitation, acts involving vehicles, The amounts of
insurance shall be not less than the following: single limit coverage applying to
Page 2 of 11
25D-4
EXHIBIT 1
bodily and personal injury, including death resulting therefrom, and property
damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the
aggregate, Such insurance shall (a) name the City, its officers, employees, agents,
and representatives as additional insured(s); (b) be primary and not contributory
with respect to insurance or self-insurance programs maintained by the City; and
(c) contain standard separation of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a combined single
limit of not less than $1,000,000 per occurrence. Such insurance shall include
coverage for owned, hired and non -owned automobiles.
C. Worker's Compensation Insurance. In accordance with the provisions of Section
3700 of the Labor Code, Consultant, if Consultant has any employees, is required
to be insured against liability for worker's compensation or to undertake self-
insurance. Prior to commencing the performance of the work under this
Agreement, Consultant agrees to obtain and maintain any employer's liability
insurance with limits not less than $1,000,000 per accident.
d. If Consultant is or employs a licensed professional such as an architect or engineer:
Professional liability (errors and omissions) insurance, with a combined single limit
of not less than $1,000,000 per claim with $2,000,000 in the aggregate.
C. The following requirements apply to the insurance to be provided by Consultant
pursuant to this section:
i. Consultant shall maintain all insurance required above in full force and
effect for the entire period covered by this Agreement.
ii. Certificates of insurance shall be furnished to the City upon execution of
this Agreement and shall be approved by the City.
iii. Certificates and policies shall state that the policies shall not be canceled or
reduced in coverage or changed in any other material aspect without thirty
(30) days prior written notice to the City.
iv. Consultant shall supply City with a fully executed additional insured
endorsement.
f. If Consultant fails or refuses to produce or maintain the insurance required by this
section or fails or refuses to furnish the City with required proof that insurance has
been procured and is in force and paid for, the City shall have the right, at the City's
election, to forthwith terminate this Agreement. Such termination shall not affect
Consultant's right to be paid for its time and materials expended prior to notification
of termination. Consultant waives the right to receive compensation and agrees to
indemnify the City for any work performed prior to approval of insurance by the
City.
7. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
agents, employees, contractors, special counsel, and representatives from liability: (1) for personal
injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
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25D-5
EXHIBIT 1
personal injury, including death, and claims for property damage, which may arise from the
negligent operations of the Consultant, its subcontractors, agents, employees, or other persons
acting on its behalf which relates to the services described in section 1 of this Agreement; and (2)
from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and
hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial
or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in
this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant
further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including
fees and costs for special counsel to be selected by the City, regarding any action by a third party
challenging the validity of this Agreement, or asserting that personal injury, damages, just
compensation, restitution, judicial or equitable relief due to personal or property rights arises by
reason of the terms of, or effects arising from this Agreement. City may make all reasonable
decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing,
to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity
shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of,
pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and
employees against any and all liability, including costs, for infringement of any United States'
letters patent, trademark, or copyright infringement, including costs, contained in the workproduct
or documents provided by Consultant to the City pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed
under this Agreement. Consultant shall maintain complete and accurate records with respect to
the costs incurred under this Agreement and any services, expenditures, and disbursements
charged to the City for a minimum period of three (3) years, or for any longer period required by
law, from the date of final payment to Consultant under this Agreement. All such records and
invoices shall be clearly identifiable. Consultant shall allow a representative of the City to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to this Agreement for a period of three
(3) years from the date of final payment to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such
information is reasonably understood to be confidential and/or proprietary, Consultant agrees that
it shall not use or disclose such information except in the performance of this Agreement, and
further agrees to exercise the same degree of care it uses to protect its own information of like
importance, but in no event less than reasonable care. "Confidential Information" shall include all
nonpublic information. Confidential information includes not only written information, but also
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25D-6
EXHIBIT 1
information transferred orally, visually, electronically, or by other means. Confidential
information disclosed to either party by any subsidiary and/or agent of the other party is covered
by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any
information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the
Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant
without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e)
is independently developed by the Consultant without reference to information disclosed by the
City.
11. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under this
Agreement.
12. DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by
applicable law, in the recruitment, selection, training, utilization, promotion, termination or other
employment related activities. Consultant affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Consultant, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the terms
of this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Consultant. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Consultant,
Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other consultants retained by City.
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25D-7
EXHIBIT 1
15. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination, hi such event, Consultant shall be entitled to receive and the City shall pay Consultant
compensation for all services performed by Consultant prior to receipt of such notice of
termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to
deliver to the City all work product(s) completed as of such date, and in such case
such work product shall be the property of the City unless prohibited by law, and
Consultant consents to the City's use thereof for such purposes as the City deems
appropriate.
b. Payment need not be made for work which fails to meet the standard of
performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing and signed by
the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or
remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, performance, and enforcement of any of the clauses of this Agreement shall be
determined and governed by the laws of the State of California. Both parties fiuther agree that
Orange County, California, shall be the venue for any action or proceeding that may be brought or
arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses,
pen -nits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and
in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
19. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement
shall be in writing and shall be deemed to be properly given if delivered in person or mailed by
first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in
the manner provided in this Section, to the following persons:
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25D-8
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
PA, Box 1988
Santa Ana, CA 92702-1988
Fax: 714- 647-6956
With courtesy copies to:
Executive Director,
Community Development Agency
City of Santa Ana
20 Civic Center Plaza (M-27)
P.O. Box 1988
Santa Ana, California 92702
Fax:
To Consultant:
EXHIBIT 1
Sonia R. Carvalho
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Fax: 714- 647-6515
California Manufacturing Technology Consulting
690 Knox Street, #200
Torrance, CA 90502
Fax: 310-808-1429
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by fax, communication shall be effective or deemed to have
been given twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating these
time frames, weekends, federal, state, County or City holidays shall be excluded.
20. NIISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the
power, authority and right to bind their respective parties to each of the terms of
this Agreement, and shall indemnify City fully, including reasonable costs and
attorney's fees, for any injuries or damages to City in the event that such authority
or power is not, in fact, held by the signatory or is withdrawn.
b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this Agreement.
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25D-9
EXHIBIT 1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Atto e , n
By:
Ryan O.
RECOMMENDED FOR APPROVAL:
ROBERT ZUR SCHMIEDE
Interim Executive Director
Community Development Agency
CITY OF SANTA ANA
Raul Godinez II
City Manager
CALIFORNIA MANUFACTURING
TECHNOLOGY CONSULTING
James Watson
President/CEO
25D-10
Page 8 of 1 I
EXHIBIT 1
STATEMENT OF WORK
25D-11
Exhibit A
EXHIBIT 1
Statement of Work
CMTC proposes a Manufacturing Sector Layoff Aversion Program to avert layoffs by identifying at -risk
manufacturers before the manufacturer is forced to lay-off utilizing a 7 -step plan 1) Define program
objectives 2) Outreach to manufacturers 3) Discovery meetings to identify at -risk manufacturers 4) Assess
and define recommended assistance 5) Gain customer commitment to job retention 6) Partner approval
of employers & services and 7) Independent 3rd party survey for satisfaction, impact & jobs.
CMTC proposes to serve a minimum of ten at risk manufacturers resulting in a minimum of 100
retained jobs. As a federally funded MEP Center, CMTC will provide the outreach to manufacturers in
Santa Ana under our California statewide MEP program at no cost to the Santa Ana WDB.
CMTC proposes to collaborate with the Santa Ana WDB to raise awareness of available resources and
provide manufacturing layoff aversion business retention implementation services (includes training and
consulting services) for qualifying manufacturers. The proposed services will be provided to at -risk
manufacturers that may lay off workers in the near future if they are unable to stabilize their company and
become more profitable, and to manufacturers with barriers to growth. CMTC will follow the standard 6 -
step plan outlined in more detail below:
Step 1 - Program Planning
• Define program requirements to meet Santa Ana WDB objectives for layoff aversion and business
process improvement services.
• Review and revise Early Warning Checklist for Business Viability and initial WDB Business Data
Intake form (see Exhibit Q.
• Develop process for Santa Ana WDB approval of qualified manufacturers for Lay-off Aversion
Services (LAS) utilizing the WDB Business Data In -take form.
• Establish major milestones schedule and quarterly reporting requirements.
• Hold Santa Ana WDB — CMTC kickoff to review program objectives and procedures. As
appropriate, include regional economic development organizations, including representatives
from the city, to raise awareness, discuss coordination, and share key contacts for referrals of at -
risk manufacturers and set joint meeting protocols.
Step 2 - Awareness and Outreach
To target potential at -risk manufacturers, CMTC will pull data on manufacturers in the region that have
decreasing revenue for the last three years and/or have a D&B prescreening score of Medium risk or High
risk as the targeted segment for services. CMTC may also identify at -risk manufacturers or those with
barriers to growth in these sectors through our on-going MEP outreach program, past CMTC clients or
WDB referrals. (Outreach is provided as CMTC in-kind and not included the cost proposal).
• Telemarketing campaign to schedule initial Discovery meetings.
Step 3 - Schedule Manufacturer Discovery & Assessment Meeting
Initial WDB Business Data Intake Form and Early Warning Checklist Review for Business Viability and
At -Risk Factors (see Appendix A), including
• CMTC outreach team members will schedule a meeting with the interested manufacturers and
CMTC Client Advisor.
• Team will share objectives of the Layoff Aversion program and complete a WDB Business Data
Intake Form to determine companies' primary issues/concems and recommended implementation
solution, utilizing the Early Warning Checklist for Business Viability (see Exhibit Q.
25D-12
EXHIBIT 1
Exhibit A
• Companies already planning layoffs will be immediately referred to the City of Santa Ana WDB
for Rapid Response services.
Step 4 - Approval of Manufacturers
Approve of Manufacturers with three identified early warning signs or barriers to growth a company will
be considered for layoff aversion business assistance implementation services or growth services.
• CMTC will submit the WDB Business Data Intake Form (see Exhibit C) and recommendations
to the City of Santa Ana WDB to review and approve potential on-site layoff aversiop business
assistance implementation projects. This step is to agree and prioritize companies based on need
and potential job retention or creation.
• Manufacturers not qualifying for onsite layoff aversion services are eligible for CMTC's
California Manufacturers AdvantageTM program at no charge. All participating manufacturers will
receive information on partner programs. Companies unable to provide Sr. management
commitment and the needed resources for participation in the program should not be considered
for on-site services as this significantly reduces the implementations success
Step 5 - Customized On-site Layoff Aversion or Growth Business Assistance Implementation
Solutions
• Santa Ana WDB Project Manager will approve companies.
• Statement of Work reviewed and approved by the company. Gain Sr. Management commitment
to job retention or creation with signed contract/scope of work. Management will provide a
confidential list of employees that could be at -risk for layoff if the manufacturer is unable to
stabilize -and become more profitable.
• CMTC will provide on-site training and implementation as stated in the approved Scope of Work.
These services are customized to address the customer's issues and retain/create jobs.
• Once layoff aversion and business assistance implementation services are completed, the
company will sign -off on the project and job retention/creation impacts gained in the form of a
testimonial letter (see Appendix A for sample letter).
Step 6 - Independent 3rd party survey
• All companies receiving services will be surveyed within 6-12 months of the delivery by MEP
independent 3rd party survey for satisfaction and quantified impact. CMTC will report forecasted
impact at project completion, survey the company 90 -days after project completion to assure job
retention and company will receive the independent 3rd party survey within 6-12 months.
25D-13
EXHIBIT 1
I I:
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25D-14
EXHIBIT 1
Exhibit B California Manufacturing Technology Consulting (CMTC)
Layoff Aversion Budget
Prepared for the City of Santa Ana WDB
25D-15
WIOA
Match/In
Kind
Total
Personnel
Salaries*
$15,280
$15,280
Benefits
4,130
4,130
Other (list)*
19,410
0
19,410
Total Personnel
Operating Expenses
Rent or user fee*
540
540
Utilities
Phones
Internet fees
Parking fees
Security
Maintenance
Insurance
Equipment*
Rental fees
Purchase
Vehicle lease charges
(vehicles may not be
purchased)
Office expenses
2,210
2,210
(consumables)
Accounting Services
Legal services
Auditing services
Staff training
Staff travel/mileage
560
560
Customer Training*
Support services*
Profit (for profits only)
Other (list)*
70,000
70,000
73,310
0
73,310
Total Operating Expenses
Indirect costs at 8.63% on Modified Total
Direct Costs
71280
0
7,280
attach indirect cost rate Ian**
GRAND TOTAL
(Total Personnel + Total Operating Expenses
+ Indirect Costs)
$100,000
$0
$100,000
25D-15
EXHIBIT 1
Exhibit B California Manufacturing Technology Consulting (CMTC)
Layoff Aversion Budget
Prepared for the City of Santa Ana WDB
Budget Narrative
Personnel
25D-16
Rate per
Hour,
Est
including
Position Description
FTE
Hours
Benefits
Project Manager
4.33%
90
$76
This position will be responsible for identifying manufacturers at -risk factors,
developing a solution to address the risk factors and assigning resources for
solution implementation. And assures overall client satisfaction and realization
of solution impact (i.e. retained jobs, increased sales, cost savings, etc.)
ClientAdvisor J 1,73% 36 $76
This position will be responsible for identifying manufacturers at -risk factors,
developing a solution to address the risk factors and assigning resources for
solution implementation. And assures overall client satisfaction and realization
of solution impact (i.e. retained jobs, increased sales, cost savings, etc.)
Field Ops M r 1 0.48% 10 $94
This position will be responsible for assuring client advisor opportunity pipeline
to identify at -risk manufacturers for qualification is sufficient to meet Santa Ana
WDB contract requirements.
Field Ops Mgr 0.48% 10 $94
This position will be responsible for assuring client advisor opportunity pipeline
to identify at -risk manufacturers for qualification is sufficient to meet Santa Ana
WDB contract requirements.
Training M r 1 2.40% 50 $76
This position will be responsible for Program management including
developing monthly status reporting as required by the Santa Ana WDB.
Sr Workforce Tech 1 2.40% 50 $55
This position will be responsible for communication with consultants delivering
solutions, gathering/tracking delivery hours, performance and impact.
Sr Workforce Tech 1 2.40% 50 $55
This position will be responsible for communication with consultants delivering
solutions, gathering/tracking delivery hours, performance and impact.
25D-16
EXHIBIT 1
Exhibit B California Manufacturing Technology Consulting (CMTC)
Layoff Aversion Budget
Prepared for the City of Santa Ana WDB
Budget Narrative (continued)
Operating Expenses
Facility Rent is allocated to all programs based on direct labor hours.
Office Consumables such as postage, office supplies, communication
services, etc. are either direct charged or allocated to all programs based on
direct labor hours.
Staff Travel costs will consist of mileage reimbursed at the IRS rate in effect
when the travel occurs.
Other Costs consist of the use of Third Party Contractors to deliver
Implementation services. The composition of services, number of hours and
hourly rates will depend upon the needs of the clients identified to receive
services under this contract. For budget purposes we have estimated an
average hourly rate of $100.
Indirect Costs
Indirect Costs: CMTC's cognizant agency, Department of Commerce,
approves our indirect cost rate. The rate. is applied against Modified Total
Direcf Costs (MTDC), .which exclude Facility rent. The provisional approval of
our most recent indirect rate package accompanies this budget.
2501-17
EXHIBIT 1
V:I13MZ7
FUNDING OVERVIEW
Page 11 of 11
25D-18
Exhibit C
EXHIBIT 1
California Manufacturing Technology Consulting
Santa Ana Workforce Development Board (WDB)
Manufacturing Sector Layoff Aversion Program
Funding Overview
CMTC has secured funding from the Santa Ana Workforce Development Board (WDB) to
assist Santa Ana businesses in order to imaact lobs in the region. Funding may target °viable
but vulnerable° companies that, with CMTC assistance, are able to retain jobs and avert
layoffs.
Requirements and parameters:
• A company at risk of layoff must identify the 3 to 4 Early Warning Signs they face, as
listed on Page 3 of this document.
• Target companies with at least 20 employees with:
o MINIMUM of 10 employees at risk of layoff for an at risk employer—a retained
job Is one where the employee is retained in full time employment for at least 90
days after the completion of the WDB-funded hours
• WDB-funded projects must be completed by the WDB contract term date:
Documentation Requirements:
• WDB Intake Form** requires employer review and approval prior to submission to
the WDB. Requires WDB approval prior to securing employer contract signature.
• CMTC WDB At Risk Employee List (AREL) must be submitted with the intake form
• CMTC_ WDB, contract requires _signature in order to begin delivery
• CMTC WDB training roster if the implementation includes a classroom training
component, identify total training hours and submit traineeltrainer signed rosters
• Engagement Completion Form (ECF)*" must be completed and signed by the
employer upon completion of WDB-funded project
• WDB Support Letter" must be submitted upon completion of WDB-funded project
• CMTC WDB employment confirmation must be completed by employer at 90 days
and one year after project completion to verify employment status and wages
• NIST Survey
** Template on CMTC Central
Questions? Contact Rocio Leon at (310) 984-9892 or leon(CDcmtc.com or to wib(@cmtc.com.
25D-19
Exhibit C
Workforce Development Board
Data Intake Form
INSTRUCTIONS:
✓ Complete ALL information requested on the Intake Form
✓ Select FOUR of the 18 factors from the attached Early Warning Signs Checklist
✓ Secure client sign off on the Intake Form
✓ Secure the Target Employee List (TEL) from the employer
✓ Forward both documents to wib@cmtc.com
✓ Questions: call Roclo at 310-984-9892
Next Steps:
✓ Assuming there are no questions or missing information, Rocio will forward funding request to
appropriate WDB representative for review
WDBs have committed to a reply within 5 business days of Intake Form submission
25D-20
EXHIBIT 1
Exhibit C
Rapid Response - Early Warning Signs
Negative cashflow, accounts payable backlog
Financial problems
Overdue loans/liens
•
Real estate and property tax delinquencies
Quality problems
•
Returns
Customer complaints
Increasing costs
Supply Chain issues
Upstream (customers)
(both directions)
Downstream (suppliers)
Competing supply chains
Global competition
Market issues
Market trends
•
Impacts on supply chain
No successor for an aging or sick owner
Ownership problems
•Change
of ownership/new investment strategy
•
Ownership by conglomerate
Lack of equipment and building maintenance
Disinvestment
Profits used to Improve or buy other plants
Excess dividends or other payouts
Declining sales and/or
Three-year trend declines
declining employment
Loss of major customers
Trend counter to (or worse than) the rest of industry
•
Poor quality control, poor product design
Mismanagement
Nepotism, cronyism, irregularities in promotions
•
Antagonistic labor relations
Twin
plant with ability to make the same or related product
Duplicate capacity
•
Outsourcing of least -skilled work
•
Whipsawing against twin plant
•
Poor treatment of plant by corporate parent or poor managers
Management instability
High turnover in plant manager, engineer, and labor relations positions
•
Mysterious new "consultants" directing personnel
Business "climate"
Management complaints about taxes, energy prices, unions, poor workers
complaints
Indications that a company is looking for enterprise zone, tax breaks
Antagonistic local government/activists
Rising land prices due to commercial or residential redevelopment
Changes in land use
Location in a trendy riverfront or oceanside area
Neighboring plants being sold and converted to non -manufacturing uses
Inadequate research and
Lack of new products
development
Losing product design and quality to other companies
Lack of research to cut energy costs, overhead, and Inventory
Changes in
Increased labor relation problems
management behavior
Lack of company "roots" in the community
Manager's actions that Indicate they won't be staying long
Removal of equipment
Equipment moved to a twin plant or sold to a competitor
Loss of key equipment or minor pieces
Cash crunch/irrational
Supplies arriving C.O.D.
cutbacks
Shortages in supplies causing production snags
Paychecks bouncing
25D-21
EXHIBIT 1
Exhibit C
Unusual bargaining
Management asking for shorter or longer contracts than usual
positions
Company offering to initiate severance pay clause
Address:
Management proposing "back loaded" money language
Unidentified visitors
Equipment or building being surveyed or appraised
and/or cosmetic
• Cosmetic improvements such as office spruce -up, landscaping
improvements
Consultants or other visitors the companywill not Identify
Workforce Development Board
Data Intake Form
Date Submitted
Company Name:
Address:
Product/Industry:
Company Contact Name:
Contact Title:
Contact E -Mail:
Contact Phone:
CMTC Account Owner:
Union Shop? [ ] Yes [ ] No
Current Number of Full Time Workers:
Current Annual Sales:
Number of Full Time Workers One Year Ago:
Annual Sales 1 Year Ago:
Number of Jobs at Risk: I I Minimum Commitment of Jobs to Retain*:
Top three to four Early Warning Signs that apply to
checklist):
customer (cut and paste from Early Warning Signs
1.
2.
3.
4.
*A retained job equal someone that remains in full time employment for 90 days after project completion
Company background:
Problem statement:
Proposed solution (CMTC service):
Positions Impacted:
Estimated Completion Date:
Estimated LOA Costs:
Anticipated outcome (quantified impact):
25D-22
Exhibit C
EXHIBIT 1
Workforce Development Board
At -Risk Employee List
Company Name:
Instructions: complete and return with completed WD13 Data Intake Form
25D-23
1a - Last Name
1b - First Name
2 - Job Mel
Classification
3 - Hourly
Wage
4. Hire Date
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
25D-23
25D-24