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. e e 1981. The changes were required for two reasons: 1) to make the program conform with the Oregon constitutional requirements and the City's ability to lend its credit, and 2) to conform to the Reagan Administration cuts in public service employment. Mr. Long reviewed the changes in the last six months. They started the fiscal year with a $4 million employment training program for adults and youth with private sector employment and public sector non-profit employers. The service delivery system was contracted to private for-profit, non-profit, and public agencies. A minimal administrative staff was employed directly by the City. As of April 15, 1981, the City will continue to have an Adult and Youth Training program targeted for private sector jobs. The Public Service Employment program will be in the final phase-out and should be shut down in mid- to late summer. All contracts with private for-profit and non-profit contractors are terminated April 15 to conform to the legal counsel and City Council instructions. Public contractors, such as LCC, Eugene 4-J, Bethel 52, and U of 0, will continue to provide services. The remaining program delivery staff, formerly employed by private contractors, that are affordable with the budget cuts will be employed directly by the City. In summary, the 60 days has been a very difficult tran- sition for everyone. The major change at mid-year in the program has a great deal of accompanying frustrations. There are two formal complaints from con- tractors and they are being handled through the complaint procedure. The City staff wishes to express appreciation for the high degree of cooperation received by the non-profit contractors who have worked to minimize the impact of the change. With their cooperation, it appears that no public service program par- ticipant will be losing a position because of the legal reorganization. Because of the cooperation, the public service phase-out is going as well as possible and they expect the majority of participants to find permanent jobs. The remaining $2.2 million program of Adult and Youth Training services will be targeted toward the private sector and could provide an important link and support component to any economic development activities of the City as they try to diversify the local economy and improve the opportunity for unemployed residents to compete for work. The council is required to approve the restructured program. Ms. Wooten recognized that there were administrative costs of the program that were paid to the contractors. She asked if these monies were now being captured. Randy Miller, CETA administrator, indicated a month ago they sent out modifi- cations of all the contracts. The recaptured dollars will be retained by the CETA program. The program funds that would have gone to non-profit agencies (that they no longer contract with) will go to the City of Eugene or 4-J to expend on participant wages and fringes. Mr. Miller explained that there were twenty participants remaining with non-profit organizations. They are currently Title D participants with non-profit agencies. After April 15, those participants will be transferred to 4-J or the City of Eugene or hired by the agency they are currently working for. Mr. Miller said he would supply the administrative cost figures for Ms. Wooten. Ms. Wooten also wanted to know what kind of impact the loss of that adminis- trative money is going to have on the overall organization that had the enrollees MINUTES--Eugene City Council April 8, 1981 Page 13