Title
Resolution Authorizing Execution of an NCWorks Career Center Cost Sharing Agreement
Body
Department: Executive/Office of Workforce Development
Council District: All districts
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Lillian Plummer, 373-8568
Contact 2 and Phone: Steve Jones, 373-3001
PURPOSE:
City Council approval is requested to authorize the City Manager to execute a cost sharing agreement with the Division of Workforce Solutions within the NC Department of Commerce for operation of the new NCWorks Career Center to be located at 2301 W. Meadowview Road in Greensboro.
BACKGROUND:
At its May 19, 2015 meeting, the City Council approved execution of a ten year lease with SN Properties for a 34,109 square foot facility at 2301 W. Meadowview Road to become the new Greensboro NCWorks Career Center. That lease was subsequently executed in June 2015 with a planned commencement date of December 1, 2015, pursuant to renovations to the building which are currently underway.
The new NCWorks Career Center will replace the two career centers now located on Raleigh Street and on Elm-Eugene Street, as well as the Workforce Development Board office on Centerview Drive. The NCWorks Career Centers are operated under the jurisdiction of the Workforce Development Board (WDB) and its administrative entity, the City of Greensboro, through its Office of Workforce Development.
Under the terms of the proposed five year cost sharing agreement (see Attachment B), the City/WDB would assume all rent costs for the property while the Division of Workforce of Solutions (DWS) would pay the infrastructure costs including computers and related hardware, network support, telephone system costs and support, office supplies/equipment for service delivery partners and the public, security services and alarm system monitoring. The City/WDB would retain direct responsibility for the rent and infrastructure costs for the portion of the building exclusively reserved for WDB staff use.
In the first year of operation, the shared portion of operational expense is estimated to be $552,000, of which the common portion of the rent paid by the City would be $255,000 and the other infrastructure costs paid by DWS would be about $296,000. In subsequent years, the rent cost would remain the same but the infrastructure cost would be reduced to about $235,000 since the initial one-time costs would have already occurred.
BUDGET IMPACT:
There are no funds requested as a part of this resolution. All City funding for the rent has previously been approved and will be encumbered per the lease agreement with SN Properties.
RECOMMENDATION / ACTION REQUESTED:
It is requested that the City Council authorize the City Manager to approve and execute the NCWorks Career Center Cost Sharing Agreement, through the attached resolution.