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RTC #99-470

November 9, 1999

SUBJECT: Authorization to Apply for Funding to Support NOVA’s Workforce Development Strategy

EXECUTIVE SUMMARY

The NOVA Private Industry Council (PIC) has developed a workforce development and funding strategy to complement the programs and services which NOVA can accomplish under its Job Training Partnership and Workforce Investment Act allocation funds. The focus of this strategy is "growing our own workforce" based on the needs of regional employers, especially in the information technology industries.

The NOVA Private Industry Council has approved staff’s recommendation to apply for four specific grants to support the strategy outlined in this report. The PIC also approved pursuit of foundation funds, as appropriate, to provide supplemental funds for the recommended strategy. The four grants are:

H-1B Technical Skill Training: Funded by the U.S. Department of Labor (DOL) for up to $1.5 million for two years, this grant would allow NOVA to provide the training funds necessary to prepare 200 individuals for positions in Information Technology. These positions must be, or have career ladders leading to, occupations that Silicon Valley employers are now hiring from out of the country using the H-1B Visa process.

NOVA’s proposal would be a collaborative effort between NOVA, the Silicon Valley PIC, the State Employment Development Department (EDD), Joint Venture: Silicon Valley, Opportunities Industrialization Center West in Menlo Park/East Palo Alto, Mission College, Evergreen College, and University California Santa Cruz Extension, with NOVA providing the lead.

Regional Skills Consortia: DOL is soliciting proposals for regional consortia to research and assess regional employer skills needs, determine the gap between those industry needs and the skills possessed by regional workers, and develop a concrete action plan to train individuals to fill the identified skill gaps. This grant complements the H-1B grant, and would give staff better information on the current hiring needs and, therefore, training needs of employers. NOVA will be collaborating with the Silicon Valley PIC and/or the San Mateo PIC in developing the application. The proposed grant may not exceed $1 million.

Individual Training Accounts/Eligible Provider Demonstration Grant: This grant would also be funded by DOL, which is looking for demonstration projects of implementing the Workforce Investment Act (WIA) required approach to training through individual training accounts (ITAs). These accounts will be offered to eligible clients to use at approved training sites to receive training. There is a great deal of latitude at the state and local levels for developing these ITAs (such as maximum amount, does it include books and supplies, how does the customer make the best informed training choice, etc.) and for approving training providers. NOVA is collaborating with the State EDD, various PICs throughout the State to test several approaches to ITAs and the development of an eligible training provider list. This grant may not exceed $500,000. NOVA’s portion would be approximately $80,000.

California Welfare-to-Work Funds: The State of California has discretionary Welfare-to-Work funds and would like to collaborate with NOVA to develop a pilot program with a focus on "bridging the digital divide." NOVA and the State are now exploring the idea of working with the young adults in welfare families and training them for career paths in information technology. Most welfare-to-work funds target the main "bread winner" in the family. This project conjectures that there can be more than one "bread winner" in the family. Additionally, this approach would assist in stopping the welfare cycle within a family. The State is reserving $500,000 for this project.

Fiscal Impact

There will be no fiscal impact to the City because funds needed to support the activities outlined in this grant proposals will provided by successful grant awards.

Public Contact

1. Publication and posting of the NOVA Private Industry Council agenda for Wednesday, October 27, 1999.

2. Publication and posting of the Silicon Valley Private Industry Council agenda for its October 27, 1999 meeting.

3. Publication and posting of City Council agenda for November 9, 1999.

4. This report will be available in the Library and on the City’s internet home page.

Recommendation

Staff recommends that the Sunnyvale City Council concur with the NOVA Private Industry Council and authorize staff to apply for the four grants outlined in this report and to pursue additional foundation funds, as appropriate. For awarded grants that require subcontracting, staff will prepare subsequent, more detailed program plans for PIC and City Council approval.

BACKGROUND:

The Silicon Valley region, while in the midst of phenomenal economic growth, also faces serious challenges that threaten present quality of life and future development. Two of these issues are closely interrelated: the question of finding and training workers with the skills to succeed in an information-based economy, and the growing "Digital Divide" which separates individuals of different socioeconomic groups into information technology "haves" and "have-nots."

NOVA Private Industry Council is committed to working with partners in the community to find solutions for these issues. The PIC initiated as one of five strategic goals for its 1999/00 Strategic Plan, the following: Goal 3. Improve our community’s ability to "grow our own" workforce. The intent of this goal is to support the needs of both the employer and the job seeker. The overarching strategy that NOVA is pursuing is based on:

• Reaching out to people where they live and work, focusing on a neighborhood-based approach to training, technology and community support;

• Reaching out to employers to find out what their hiring needs are, and soliciting their input for training approaches and training curricula;

• Creating collaborative, focused, and sustainable initiatives to provide a long-term impact;

• Bringing together existing services and initiatives wherever possible to meet the needs of employers and individuals, while tapping the resources of the business community, foundations, and the public sector to fill the gaps; and

• Balancing the needs of businesses and people for the sustainability of the community as a whole.

According to Joint Venture: Silicon Valley Network, a non-profit organization bringing people together from all sectors of the community to identify and act on regional issues, "the workforce shortage is an increasingly critical impediment to the growth of high-tech companies in Silicon Valley." Silicon Valley is home to more than 7000 technology-based companies, employing nearly 40% of the Valley's workforce and supporting many more jobs in other industries. Joint Venture's recent study found a current workforce gap of 31-37% of the high-tech industry demand in the area. The cost of the workforce gap can be measured in many ways. There are business-related costs, costs to the community and costs to individuals. One of the key costs to the community is the increased distance between the highly-paid, highly-educated workers who are the stars of the new economy, and a large number of area residents who lack access to the kinds of jobs, education, and opportunities that would enable them to participate more fully in the boom.

As the number of Americans using computers and the Internet continues to grow, the Digital Divide continues to widen. A 1999 report from the U.S. Department of Commerce indicates that low-income groups, as well as Hispanics, African-Americans and other minorities, are less likely to own a computer or have home access to the Internet. Education, though, is perhaps the single biggest predictor of information technology use. 61.6% of those with college degrees now use the Internet, while only 6.6% of those with an elementary school education or less use the Internet. Those with college degrees or higher are ten times more likely to have Internet access at work as persons with only some high school education. Even in the heart of Silicon Valley, 28% of people in households earning less than $40,000 have access to e-mail, compared with 81% of households earning more than $100,000. The Commerce Department reports that in many areas these gaps are growing, and those who could perhaps benefit most from the phenomenal resources now available are being left further and further behind.

EXISTING POLICY

The proposed activities are consistent with the City of Sunnyvale’s Socio-Economic Goal 5.1F: Provide job training and employment services, within constraints of operative Federal regulations and available Federal funding to address the locally-determined employment and training needs of economically disadvantaged residents and others with special needs.

DISCUSSION:

Clearly the issues involved are complex and challenging, and no one organization, no matter how well funded and well-intentioned, has the capacity to create a complete solution. NOVA proposes to foster community partnerships that can create ongoing positive change. The opportunity exists now for NOVA to once again reinvent itself as its major source of funding, the Job Training Partnership Act (JTPA), transitions to the Workforce Investment Act (WIA). The challenge will be to integrate existing products and services with those of its partners, and to create a system of funding that will make the services available to those who need them. A large number of resources are already in place that, with meaningful integration, could make a significant difference for people and for businesses.

Existing NOVA initiatives:

Career Connection: a state-of-the-art career resource center with free computer and Internet access for the public. Career Connection also features career development professionals to assist customers with their job search and career questions.

Winning New Jobs: funded by the California Wellness Foundation, Winning New Jobs offers free, intensive 20-hour workshops in job search skills for anyone over the age of 18.

Learning Lab: a computer lab where customers can upgrade computer skills and both basic and advanced English, math, software, and other skills. At present the Learning Lab is a resource for JTPA clients, or on a fee basis for individuals or companies.

Career Ladders: a series of reports explaining necessary skills and career paths for new and returning entrants to the workforce. The reports focus on occupations that lead to a self-sustaining living appropriate for our region.

LMI+: "Labor Market Information Plus" reports offer in-depth studies of emerging and growth industries as well as public forums for dialogue among employers, students, job seekers, and educators. These reports are a valuable resource in developing career options and curricula in local communities.

Professional Effectiveness Program: a combination of assessment, instruction, and follow-up in the so-called "soft" skills that employers value highly, such as teamwork, communication, problem solving, and time management.

Summer Work Experience for Youth: the NOVA Youth Employment Office is currently designing summer employment programs for young people that will fit under the new requirements of WIA. Focusing on information technology, the program will include upgrading technical and computer skills as well as introducing people to the high-tech work world.

JTPA/WIA Occupational Training Programs for Adults: Currently through JTPA and subsequently through WIA, though at a greatly decreased level, funds are available to train low income adults and dislocated workers in skills and occupations in high demand in our labor market region.

Career Advanced Retention Services: NOVA has a contract with the County Social Services Department to purchase lap top computers and software to loan to low income families. A partnership is being developed for adult education to provide the tutoring for the project.

Multi-partner Collaboratives:

STEP Program: NOVA, along with industry powers Sun Microsystems, Cisco systems and Oracle, Evergreen and Mission community colleges, and Occupations Industrial Center West (OICW) have already initiated the Systems Administration Training and Employment Program to increase the number of qualified UNIX system administrators available in the local labor market.

Wanting to Work: an innovative program to assist individuals in transition to successfully move off of public assistance. Wanting to Work is a partnership with the Silicon Valley PIC, the Santa Clara County Department of Social Services, and the Silicon Valley Manufacturing Group. Participants receive job placement assistance in the manufacturing industries, on the job training and skills upgrades, neighborhood based support services, and intensive career retention assistance.

Neighborhood Self-Sufficiency Centers: an integral part of Wanting to Work and of the countywide Welfare to Work effort. Six centers are located throughout Santa Clara County where Welfare to Work clients can access evening classes, child care, mentoring, and other services. Each center reaches out to the community-based agencies in its area to bring together the services that its residents need most.

Youth@Work: an award-winning collaboration among the public, private and non-profit sectors. Youth@Work's free Internet-based system connects young people, educators, and employers with the job, career, or hiring information they need. Public access sites are located throughout Santa Clara and San Mateo counties, where young people can access the system, participate in job search skills workshops, and receive one-on-one counseling on their job search. An innovative addition to NOVA's Young Parents Programs included using Youth@Work to teach computer, career planning, and job search skills to teen parents through our high schools-- a model which is particularly relevant to NOVA's Digital Divide outreach strategy. In a new service enhancement, the local EDD field office is working with Youth@Work so that EDD staff can begin to solicit job listings for Youth@Work from the large employer pool with which EDD works.

School-to-Work: NOVA is aligning itself with the school-to-work effort in Santa Clara County and the Bay Area, offering the resources of Youth@Work and the partners at the Youth Employment Office to supplement the efforts that are already underway in area schools. Workforce Silicon Valley, a school-to-work initiative, is focusing its effort strongly on careers in information technology.

The Santa Clara County Training Directory is produced as part of a state-wide project and is primarily a cooperative effort between NOVA and the California Employment Development Department’s Labor Market Information Division. The directory provides information on all vocational and career training available in Santa Clara County, and can be used by individuals to access appropriate training, and by employers to find out who is training in the areas they need to hire.

Additional Resources:

Joint Venture: Silicon Valley Network: Joint Venture's mission is in complete alignment with NOVA's strategic goals of growing the Valley's workforce and addressing the Digital Divide. Joint Venture has already been extremely successful in bringing together stakeholders to work on improving the economic vitality and quality of life in the region. Joint Venture is committed to providing leadership with NOVA on these issues.

Community College Districts: Longtime partners in workforce development, the community colleges have resources and growing commitment to address workforce issues in a collaborative environment. Mission College is using innovative tools such as Work Keys to match people with jobs based on skills profiling. The Occupational Training Institute of the Foothill DeAnza Community College District offers customized classroom training, placement assistance, and retention services, and their expertise in working with student populations who are not "traditional" students makes them an invaluable partner.

Adult Education: as primary providers of Vocational ESL (VESL), the adult education system is a critical part of addressing workforce and technology access issues. The adult education system also offers access to and basic skills training in computer technology.

CONNECT!: The community college districts and the adult education providers, along with many other agencies, are partners in CONNECT! CONNECT! brings workforce investment and business services together in a collaborative with over 30 partners, ranging from economic development initiatives to vocational education to veterans' services. The growing strength and commitment of these partnership to a seamless, customer-focused One-Stop service delivery system makes it easier to design effective multi-agency initiatives.

Next Steps:

It will require considerable effort to get to a point where all these resources are aligned in their services to customers, and even then there will be many places where additional services still need to be designed or the current funding is inadequate, or both. NOVA is beginning to address these aspects of our strategy. One of the first steps is to apply for the following grant moneys to fund specific initiatives which align with our strategic goal:

H-1B Technical Skill Training: The U.S. Department of Labor (DOL) Employment and Training Administration (ETA) aims to enhance the occupational skills of job seekers to meet employer demand for highly skilled technical workers locally, rather than bringing foreign workers in on H-1B visas. In particular, the industries that appear to generate the most H-1B demand include information technology and health. NOVA is working with its partners in the STEP project to expanding that program for an additional 25 individuals at each site. NOVA is also working with employers to gather information on the occupational areas for which they are now using H-1B visas, and the community colleges and UC Santa Cruz Extension as training providers of the high-level technical training that would be needed to prepare workers for these positions.

This grant can only be used for training and would provide the funds that would allow NOVA to supplement its greatly decreased funding under WIA. The funds can be used for both employed and unemployed workers, enhancing NOVA’s ability to provide wider public access to its services. It would also allow NOVA to assist employers in retraining some of their current workers in the new technology needed for job retention, rather than laying them off.

NOVA proposes to train 200 individuals with these grant funds. In partnership with the Silicon Valley PIC, these services will be offered countywide, and the amount of the grant application will not exceed $1.5 million.

Regional Skills Consortia: US DOL ETA is seeking to award grants to support the development of regional skills consortia. These consortia will assess employer skills needs, determine the gap between those industry needs and the skills possessed by regional workers, and develop a concrete action plan to train regional workers to fill the identified skill gaps. This grant is an ideal complement to the H-1B Technical Skill Training Grant. This grant would be used for the research, the H-1B grant for some of the training in the "gap" areas.

Grant funds can also be used to target for service young adults (aged 18-24) who may have fewer educational or occupational credentials. In this case, the research should clearly indicate career paths which will help these young people to acquire the high proficiency levels that may be required for some of the vacancies.

NOVA's expertise in creating and growing LMI+ reports and collaborations would be expanded to include the systematic development of regional consortia, and the study of employer skill needs. SkillsNet, a collaborative which grew out of NOVA's studies of digital media industries, will serve as a model for creating new teams.

With the support of the Silicon Valley PIC, the consortium will be countywide, and the grant application would be for an amount not to exceed $1 million.

ITA/Eligible Provider Demonstration Grants: NOVA is partnering with the California Employment Development Department and several selected California service delivery areas to submit this application to DOL ETA. Under WIA, one-stop operators will be required to develop a system to make Individual Training Accounts (ITAs) available to eligible job seekers, who will then use vouchers to pay for training with eligible training providers. The purpose of this grant is to develop demonstration programs to test innovative methods of implementing ITAs and establishing an Eligible Provider List process.

The ITA system as described by WIA is very similar to NOVA's current system of individual referral to classroom training, so EDD has asked NOVA to collaborate in the development and testing of several possible systems which may eventually be used statewide.

Likely partners in this application are the PIC serving a consortium of localities in the upper Sacramento River Valley, the Napa PIC and the San Diego PIC. The amount of this grant application would not exceed $500,000.

California Welfare to Work Funds: the state of California has discretionary Welfare to Work moneys available to local areas. NOVA is working with EDD to determine whether these moneys can be used to upgrade the career readiness and earning potential of the older youth of welfare families. The funds might also be used to bring young parents into the workforce using a "work first" model, then develop their skills and help them move up a career ladder while they are employed. This service delivery strategy is the same as the Wanting to Work initiative.

These are concrete steps that NOVA is already undertaking subject to final authorization from the City Council. Additional areas that still need to be researched and included into NOVA’s overall strategy include:

Foundation Funding: many foundations, such as the Noyes Foundation, the eBay Foundation, the Gates Foundation, Intel Foundation, and others have particular interest in community, youth, technology, and employment issues. NOVA staff is researching potential matches between these foundations' interests and the strategic objectives of NOVA and its partners, and will submit grants where appropriate and authorized by the PIC. Foundation moneys may be subject to fewer restrictions and allow more innovative program design than traditional federal and state sources.

STAR X/NOVA One-Stop: NOVA staff is exploring the possibilities of receiving a grant from the State's discretionary WIA funds to continue and improve NOVA's One-Stop service delivery system for dislocated workers. This "STAR X" grant would be based on the STAR grants that have helped to make NOVA the model for the nation's workforce development system. Training provided through these funds would focus on the occupations and skills in demand by regional employers.

Outreach to Underserved Communities: there is still considerable need and opportunity to reach out to Spanish-speaking populations, long-term welfare recipients, and out-of-school youth both within the region that NOVA serves and within the Silicon Valley PIC and San Benito PIC. California Senator John Vasconcellos has announced an initiative to reach out to Latino populations in the region to enhance their access to information technology and jobs that lead to greater economic self-sufficiency. It is NOVA's commitment to work closely with Senator Vasconcellos and other community agencies to develop further action plans to address this issue.

Employment Training Panel: NOVA currently provides employers with services to facilitate their training of incumbent workers through California's Employment Training Panel (ETP). In NOVA's countywide Welfare to Work strategy, ETP services allow employers to train their own workers to move up a career ladder, thus opening entry-level technical positions to those making the transition from public assistance. This tactic will work equally well in opening viable career paths for any of the targeted populations mentioned above. NOVA and its partners will work with employers to create new ETP opportunities and to gain employer buy-in to promoting their existing employees upward and crossing the Digital Divide to hire new workers.

It is likely that further components of this strategy will be developed as NOVA and its partners continue to research issues and resources. Staff will report on additions and changes to the strategy as they arise.

Fiscal Impact

There will be no fiscal impact to the City because funds needed to support the activities outlined in this grant proposals will provided by successful grant awards.

PUBLIC CONTACT

1. Publication and posting of the NOVA Private Industry Council agenda for Wednesday, October 27, 1999.

2. Publication and posting of the Silicon Valley Private Industry Council agenda for its October 27, 1999 meeting.

3. Publication and posting of City Council agenda for November 9, 1999.

4. This report will be available in the Library and on the City’s internet home page.

ALTERNATIVES

1. Council concur with the NOVA Private Industry Council and authorize staff to apply for the four grants outlined in this report as well as explore foundation funding for additional components of its workforce development strategy.

2. Council request modification to any of the components of this funding strategy.

3. Council reject any or all of the proposal applications.

RECOMMENDATION:

Staff recommends that the Sunnyvale City Council concur with the NOVA Private Industry Council and authorize staff to apply for the four grants outlined in this report and to pursue additional foundation funds, as appropriate. The four grant are:

• H-1B Technical Skill Training, not to exceed $1.5 million.

• Regional Skills Consortia, not to exceed $1 million.

• ITA/Eligible Provider Demonstration Grant, not to exceed $500,000.

• Welfare to Work Discretionary Funds Demonstration Project for older youth for approximately $500,000.

For awarded grants that require subcontracting, staff will prepare subsequent, more detailed program plans for PIC and City Council approval.

 

 

 

 

Prepared by:

 

Joann Kleinman
Employment Training Mgr.

 

Prepared by:

 

Jayne Williams
Administrative Aide

 

Reviewed by:

 

Michael Curran
Director

 

 

Approved by:

Robert S. LaSala
City Manager

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