TITLE
Recommendation to authorize City Manager, or designee, to enter into an agreement with the California State University, Long Beach Foundation, to provide continuing education workforce development classes in Downtown Long Beach, in an amount not to exceed $1,000,000, for a period of ten years. (District 1)
DISCUSSION
A key objective of the City’s Blueprint for Economic Development is to ensure the preparedness of the workforce and the competitiveness of business through the alignment of economic development training, education, and community partner efforts. Activities associated with this objective provide economic growth opportunities for both workers and the businesses that rely on an educated, skilled workforce. The purpose of this recommendation and proposed grant funding is to engage with California State University, Long Beach (CSULB), College of Professional and International Education (CPIE), to deliver a robust offering of classes closer to the City’s professional employment centers in Long Beach’s westside and downtown business district. The downtown location of CSULB classrooms, adjacent to the Metro Blue Line, will also provide a more convenient CSULB access to central and north Long Beach residents.
The proposed ten-year agreement of $1,000,000 to the CSULB Foundation (Foundation) will provide CSULB with a portion of the resources necessary to establish 16 classrooms with an estimated 25 seats each (400 total seats), to deliver CPIE continuing education programs to advance the careers of current professionals, and to provide additional space for classes provided at its main campus. See Attachment A for a detailed list of proposed classes and certificate programs planned for the downtown CSULB center. At its February 19, 2019 meeting, the City Council approved the FY 19 First Budget Adjustments, which included the one-time appropriation increase in the amount of $1,000,000 for the grant from the City to the Foundation, contingent upon the confirmation of sufficient proceeds from the sale of the Broadway Block Site B.
Implementation of the grant will be led by Pacific Gateway, the City’s federally-funded Workforce Development Bureau in the Economic Development Department. Pacific Gateway has identified CPIE as an innovative community partner and a bridge from the CSULB campus to the business community, offering access and opportunity to residents with continuing education needs, those who are creating new careers, and those who have never had the opportunity to enroll in a university. Today, CPIE is one of eight academic colleges of CSULB. Collaborating with other colleges and academic departments, it offers graduate and undergraduate degree programs, certificate programs, and hundreds of courses to its students. CPIE plays a vital role in helping spur economic development in the region by connecting and collaborating with business and industry, non-profit organizations, public schools, and various government agencies. CPIE also collaborates with federal workforce development agencies like Pacific Gateway to provide professional education and training for employers in Long Beach that rely on skilled workforce for growth.
Since its establishment as an extension unit in 1971, the primary function of CPIE has been to serve adult learners. CPIE remains true to this core mission today and has become a vital part of both CSULB and City’s workforce development strategies. CPIE also plays an important role of continuing education to provide a bridge from the campus to the community, offering access and opportunity to those with continuing education needs, those who are creating new careers, those who have never had the opportunity to enroll in a university, and everyone in between. CPIE’s commitment and resources expand and extend CSULB’s high-quality educational programs beyond the walls of the university, fulfilling educational and training needs in a variety of program formats and settings. By leveraging the contributions and capabilities of extended education to address the challenges facing the state, nation, and international community, CPIE provides opportunities for lifelong learning and growth through innovative course offerings and certificates.
This matter was reviewed by Deputy City Attorney Amy R. Webber on February 25, 2019 and by Budget Management Officer Rhutu Amin Gharib on March 5, 2019.
TIMING CONSIDERATIONS
City Council action is requested on March 19, 2019, to ensure the CSULB Foundation may finalize the lease agreement by June 1, 2019.
FISCAL IMPACT
The total cost of the ten-year grant to the Foundation will not exceed $1,000,000. CSULB will be responsible for implementing the program and staffing. They will also secure and maintain the downtown classrooms through their own funding sources. At its February 19, 2019 meeting, the City Council approved the one-time appropriation increase in an amount of $1,000,000 for the agreement from the City to the Foundation, contingent upon the confirmation of sufficient proceeds from the sale of the Broadway Block Site B. The Broadway Block Site B site was originally thought to be wholly-owned by the Successor Agency and proceeds were planned to be allocated consistent with City Council policy direction, 75 percent for the City's for non-recurring economic programs in the former Downtown Project Area, and 25 percent for non-recurring economic programs with a Citywide impact. It has since been determined that 52 percent of the Broadway Block Site B was owned by the City, and not the Successor Agency.
This change in ownership is anticipated to result in additional funds being remitted to the General Fund. A portion of the proceeds of the sale of the Broadway Block Site B have already been approved for the purchase of the Atlantic Farms site. Should the General Fund portion of the proceeds from the sale of Broadway Block Site B become unavailable or be insufficient to cover both commitments, proceeds from the Successor Agency portion of this sale will be used to fund this action. If for any reason neither of these sources are available, the General Fund operating reserve will need to be drawn upon to fund the agreement. The agreement with the Foundation is not expected to require additional staff hours beyond the normal budgeted scope of duties and is consistent with existing Council priorities. There is no job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER