March 26, 2002

REPORT IN BRIEF

NOVA seeks to contract under the H-1B Technical Skills Training Grant (also known as the Skills Gap Grant) with grant partner and other training providers in an amount not to exceed $2,341,185 to train and place 425 participants in high-tech skills and careers.  The contracts will be funded through the Department of Labor H-1B Technical Skills Training Grant received by NOVA.  It is recommended by staff that the Sunnyvale City Council approve the subcontracts and authorize the City Manager to execute the necessary agreements.

BACKGROUND

The Sunnyvale City Council approved the H-1B Technical Skills Training Grant application on July 10, 2001 (RTC 01-230).  In December 2001, the Department of Labor awarded NOVA $2,995,892 for a new two-year H-1B Technical Skills Training Grant.  The new H-1B Technical Training Grant will help train more individuals in high-tech careers, in occupations where local employers have difficulties finding qualified applicants and resort to hiring from outside the United States, through H-1B visas.  The purpose of this grant is to "grow our own" talent, and at the same time bridge the digital divide.  The latter will be accomplished by providing training to individuals from communities that are underrepresented in the computer and information technology careers.  The grant will provide high-tech training for 425 individuals for over a two-year period.  This grant was made possible through a strong public and private partnership, which included the San Mateo Workforce Board, local community colleges, university extensions and other partners.

The H-1B Technical Training project aims to serve 425 participants from varied economic and employment situations.  A variety of technical training opportunities and programs offered through grant partners to participants were key to the success of the first grant, and will be expanded under this new grant.

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

NOVA was in the forefront when it became the first H-1B Technical Grant recipient in the nation to train and place individuals in high-tech careers.  Throughout the first grant, NOVA and its partnership with training institutions broke new ground and were able to experience tremendous success with the program.

There is now the looming continuation of the economic slowdown caused by various factors over the past year.  The situation has presented new challenges for families and individuals living in the Silicon Valley. Companies in the valley have reduced workforces in an effort to adjust, leaving many talented and experienced workers to seek other employment.  With fewer job opportunities now in the valley, having technical skills is crucial to individuals to be competitive and individuals who are caught in the gap of the “digital divide” need assistance.  In addition, working individuals with older skills need access to education and training to help keep themselves competitive and help open opportunities.  Those in our community who lack access to jobs, education and opportunities may see the gap widening even more.  The NOVA Skills Gap (H-1B) Grant through the Department of Labor provides an opportunity for these individuals to compete in the workforce.

This new Skills Gap Grant plans to train and place 425 individuals in high-tech careers, including 88 low-income adults, 150 dislocated workers, 137 incumbent workers and 50 older youth.  The grant will provide training in high-demand skills and in occupations where companies have historically recruited outside the country for qualified workers.  The grant will train 25 individuals in Cisco Network Administrator, 100 in UNIX System Administrator, 47 in Oracle Database Administrator, 25 in Oracle Applications Developer, 25 in Unix Systems Engineer, 38 in Microsoft Certified Systems Engineer and 15 in Electronic Technician training.  Additionally, 150 individuals will be trained in other high-tech occupations.

NOVA will continue its relationship with training providers from the previous H-1B grant, including: Evergreen/San Jose Community College, Mission College, Opportunities Industrialization West, Inc. (OICW), and UC Santa Cruz Extension.  San Mateo Community College and San Jose State Professional Development are new partners to come aboard in this new grant.  Additionally, as individual cases may require, training will be referred to other training providers.

During the grant period, December 30, 2001 to December 31, 2003, NOVA will contract with each training partner for specific program goals, enrollment numbers and costs. The following is a list of anticipated contract agreements:

FISCAL IMPACT

There is no fiscal impact to the City of Sunnyvale.  Funds for these proposed contracts are budgeted in the H-1B grant. 

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the Library and City Clerk's Office. 

ALTERNATIVES

1.      Council concurs with the staff recommendation and authorizes NOVA to contract with training partners in a total amount not to exceed $2,341,185 for H-1B Grant contracted services.

2.      Council instructs staff to identify other means of securing the above deliverables.

RECOMMENDATION

It is recommended by staff that the Sunnyvale City Council, on behalf of the seven NOVA consortium cities, adopt Alternative 1:  to authorize NOVA to contract with H-1B training partners in a total amount not to exceed $2,341,185.  It is further recommended that the City Manager be authorized to execute the necessary agreements.