TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including amendments, with SVM, LP, of Arlington Heights, IL, to purchase as-needed gift cards to be issued as supportive services for residents in training or seeking employment services, in a total amount not to exceed $245,000, for the period of November 1, 2020 through October 31, 2021. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with SVM, LP (SVM), to purchase gift cards to be issued as supportive services delivered through America’s Job Center of California (AJCC) in support of strategies that provide incentives and support to residents and job seekers enrolled in training and employment services. Examples of supportive services include, technology needs, transportation assistance, tools, work equipment, and interview/work attire.
Pursuant to City purchasing guidelines, the City Manager authorized staff to issue a purchase order for SVM in the amount of $95,000, effective November 1, 2020, to purchase as-needed gift cards. Given the increase in grant funding secured by the City for workforce support, this authorized amount will soon be exhausted, and an additional contract authority of $150,000 is requested to ensure the continued delivery of critical supportive services to program participants without interruption.
SVM provides a wide selection of gift cards for multiple vendors in varied amounts. Although the cards may be purchased directly from vendors, it is more efficient to consolidate the purchase from SVM. In addition, SVM waives the standard processing and percentage fees of 3.95 percent for the purchase of gift cards. Participants of Pacific Gateway who are enrolled in Workforce Innovation and Opportunity Act (WIOA) and/or Special Project Programs may be provided these supportive services when it is determined that such services are necessary to enable their participation in programs and when participants cannot afford to pay for services on their own.
Pacific Gateway administers the federal WIOA and other employment and training funds received annually by the City. These funds support job training programs and business services delivered by the WorkPlace, Youth Opportunity Center, Harbor Gateway WorkSource Center, and selected community-based organizations, to assist residents in acquiring skills leading to employment in high-demand occupations with local employers.
Due to the economic impacts of the COVID-19 pandemic, there is an increase in need for supportive services for individuals impacted by the loss of jobs and reduction of hours.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process but allows for awards without a competitive bid process when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Amy R. Webber on April 15, 2021, Business Services Bureau Manager Tara Mortensen on April 19, 2021, and by Budget Management Officer Rhutu Amin Gharib on April 27, 2021.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 18, 2021, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total contract amount with SVM will not exceed $245,000 for the period ending October 31, 2021. The contract will be funded through a variety of State, federal and local workforce development grants. Sufficient funds are currently budgeted in the Community Development Grants Fund Group in the Economic Development Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Approval of this recommendation will support training, skills enhancement, and employment opportunities for residents.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER