On Tuesday, the Contra Costa County Board of Supervisors unanimously voted to approve and early termination clause in its covered California Call Center after the state cut 70% of its funding.
The move comes after the Fiscal Year 2016/17 original budget amount for this contract was up to $14,411,972. The State has reduced the contract to a maximum of $4 million for FY 16/17 (a 72% reduction from the originally approved budget).
Kathy Gallagher, Employment & Human Services Director, explained to the Board of Supervisors why they were recommending the early termination of the contract.
“We entered the contract in 2013 as Covered California was ramping up and was a 3-year contract and planned to terminate in June 2017. In May of this year we were notified of Covered California that they were going to continue the contract through the end of the year but would not renew it,” explained Gallagher. “We were had an approved budget of $14.3 dollars, subsequent to that and they re-looked at their budget and this is the year where call centers have to be self-sustaining based on revenues that they get through health plans and premiums and no more Federal Subsidy… they decided they needed to cut back our contract.”
Gallagher explained they notified the county on July 28th of this year that it would be reduced to $4 million—a 70% decrease.
“We determined that we would not be able to operate the full 12-months for that amount of money and begun working and a transition plan of how we would ramp down,” said Gallagher. “We made the recommendation that we exercise the early termination clause which is a 90-day letter of termination”.
The county would cease operations of the call center by November 30, 2016 and close the facility December 30, 2016.
Gallagher noted that with the reduction, it may result in layoffs; however, staff is working to potentially help employees transfer to the private sector, another county position, or another call center in another part of the state—as part of the transition plan.
Supervisor Candace Andersen stated “We have always said we cannot use general fund monies to help the state”. The Board of Supervisors voted 5-0 in support.
According to an October 2013 report, the call center was creating 155 jobs. The list below specifies the number of affected positions within each classification and labor union.
Professional and Technical Engineers, IFPTE, Local 21
Employment and Human Services Division Manager – 2
AFSCME Local 512, Professional and Technical Employees
Exchange Customer Service Supervisor – 12
Social Service Staff Development Specialist – 1
Social Service Staff Development Specialist Project – 1
Clerical Supervisor – 1
SEIU Local 1021, Rank and File Unit and Service Line Supervisors Unit
Exchange Call Center Quality Assurance Monitor – 1
Exchange Customer Service Agent I – 150
Exchange Customer Service Agent II – 29
AFSCME Local 2700, United Clerical, Technical and Specialized Employees
Clerk – Experienced Level – 3
Secretary – Journey Level – 1
Unrepresented Management
Personnel Services Assistant III – 1
