December 1992, after three months of negotiations between Housing Authority of the City of LA and the Nickerson Gardens Resident Management Corporation, we had worked it out. We came up with a way to do Dual Management and not cost the City of LA more than $93.75 for 7 jobs. We would not fire or displace anyone. Just wait out retirements. There were a pack of concerns about unions, waiting lists, and such. But, the idea was sound. If residents could OJT with veteran Housing Authority employees, supplemented by University partnership for the training, and the NGRMC doing the supervision, it could work. And NGRMC would learn to do payroll, hassle with workers' comp, liability insurance, etc. NGRMC would become more of a corporation. And the community benefited because the Dual Management employees (working for both NGRMC subcontracted to HACLA) would be residents and know how to do their jobs to be of service to the community. Here is the budget the NGRMC put forward to HACLA CEO [at that time] Joseph Shuldiner. He took the risk. The first seven trainees performed with distinction; never a missed day of work; never late. Excellent performance ratings all around. They are the real heroes.

 NG-RMC BUDGET For 12 MONTHS:

Gardener/cleaner/typing Budget for 3 gardeners (6.10/hr), 2 cleaners (5.15/hr), and 2 typist trainees (4.30/hr).

 

Trainee wages (direct labor 12 months) $ 77,376.00

Benefits (8%) 6,190.08

Administrative fee (10%) 8,826.61

Insurance premiums 3,000.00

Out-of-pocket expenses; miscellaneous 1,700.00

Indirect Costs (SDI, Med-Tax FICA) (9%) 6,963.84


NG-RMC BUDGET FOR PROGRAM $ 104,056.53
MAXIMUM ALLOWABLE HACLA BUDGET $104,150.28

DIFFERENCE $ 93.75

 

The point I am making is that Dual Management, resident empowered, and subcontracting does not have to cost a lot of money. We used Volunteer University and community people to staff the workshops. The residents were very supportive and the contracts got renewed and more people got hired.