TITLE
Recommendation to authorize City Manager to execute all documents, and any subsequent amendments thereto, with the State of California to accept $525,960 in Federal Workforce Investment Act funds as part of the American Recovery and Reinvestment Act of 2009; authorize City Manager, or his designee, to execute training agreements and amendments with involved employers; and increase appropriations in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD) by $50,000. (Citywide)
DISCUSSION
The Workforce Investment Network (Network) administers the federal Workforce Investment Act (WIA) and other employment and training funds received annually by the City. Those funds support job training programs and business services delivered by the Career Transition Center, Youth Opportunity Center, Center for Working Families, Harbor WorkSource Center, and selected community-based organizations to assist local residents acquire skills leading to employment in high demand occupations with local employers.
Following a federal Solicitation this past spring, the State of California was notified in June by the U.S. Department of Labor that it will receive nearly $10 million in American Recovery and Reinvestment Act WIA/National Emergency Grant funds. Such grants are discretionary, and awarded by the U.S. Secretary of Labor to provide employment-related services for dislocated workers in extraordinary circumstances or conditions. Of this amount, the Network will receive $525,960 to assist eligible dislocated workers affected by the current economic recession in acquiring the skills necessary to enter employment in occupations in high demand throughout the region.
As the project was designed to be used in an on-the-job training format, the Network's Business Services Team will partner with existing and emerging industry partners willing to hire dislocated workers registered with the Network, with extraordinary costs of on-the-job training reimbursed to the hiring employer. It is anticipated that such training arrangements will include participant placements in occupations that include plumber, heating/ventilating/cooling technician, welder, meter reader/utility biller, bus operator, over-the-road truck driver, patient care assistant, and medical biller/coders. Other industry areas may be identified once services begin.
This will be accomplished through the execution of approximately 80 on-the-job training contracts with 15 appropriate employers that will provide the needed training for each impacted resident; the duration of each contract will factor in the existing skills level of each candidate appropriate to the training occupation. Average training reimbursements are expected at $4,000 per trainee. Approval is requested for the City Manager or his designee to execute the required on-the-job training agreements, and issue reimbursements for related training of the new hire employees.
This letter was reviewed by Deputy City Attorney, Gary J. Anderson on July 13, 2010 and by Budget Management Officer, Victoria Bell on July 16, 2010.
TIMING CONSIDERATIONS
City Council action is requested on August 3, 2010 in order to facilitate the processing of required documents.
FISCAL IMPACT
The receipt of grants funds is not currently budgeted. An appropriations increase of $50,000 in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD) is requested as part of the recommended action. The remaining amount will be appropriated via the Fiscal Year 2011 (FY 2011) budget process. There is no impact to the General Fund. Approval of this recommendation will result in job training, skills enhancement and employment opportunities for approximately 80 individuals.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
DENNIS J. THYS
DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER