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April 16, 2002
| SUBJECT: | Authorization for NOVA to Apply to State of California for Additional Funding to Assist Companies Experiencing Reductions in Force |
The State of
California awarded Rapid Response funding to NOVA in the amount of $638,053
for the current program year. The City of Sunnyvale applied for the original
grant in July 2001 (RTC #01-260) and accepted these funds in December 2001.
These funds are used to provide immediate assistance to local companies experiencing
reductions in their workforce and are also used to provide funding for the
evaluation of industry trends and employment opportunities. Since that time,
the great demand for rapid response staffing, due to the high demand by companies
announcing major reductions in force, has required more staff time than initially
anticipated. In addition, the NOVA Workforce Board has identified other activities
appropriately included in Rapid Response funding that it would like to pursue.
These activities include: the development of a regional index to assess
the health of the workforce, the production of video records of LMI+ forums
and the establishment of a one-stop business service center.
Staff recommends
that the Sunnyvale City Council concur with the NOVA Workforce Board and authorize
an application to the State for additional Rapid Response funds not to exceed
$110,000. It is further recommended that, should the grant be funded, the
City Manager be authorized to execute the necessary subgrant with the State
of California.
BACKGROUND
Each
year, for the past seven years, the State has designated a pool of Dislocated
Worker funds for local Rapid Response activities. Activities include planning and delivering services to enable
dislocated workers to transition to new employment as quickly as possible,
following either a permanent closure or mass layoff, or a natural or other
disaster resulting in a mass job dislocation. In addition, funds may be used to build the capacity of the
organization to respond to the needs of employers and to provide to affected
workers the information they need to reenter the workforce.
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
Over
the past year, during this economic downturn, there has been an increasing
need for assistance to employers experiencing a reduction in their workforce.
Rapid Response services include onsite contacts, information and access to
services to affected workers. In
addition, NOVA has traditionally used a portion of the grant to fund its Labor
Market Information Plus (LMI+) project, which evaluates industry trends and
employment opportunities to assist businesses and workers in being competitive
in their industries.
As
the year has progressed, new uses for these funds have evolved, and the need
to supplement Rapid Response resources is pressing.
NOVA has experienced an unprecedented demand for our services by businesses
finding it necessary to downsize or close their operations. The amount of staff hours required to provide this essential
service to our business community has exceeded our original estimation. This application for increased funding
would include additional resources to support staff in providing Rapid Response
services to companies. According
to State statistics, NOVA is tied with the City of Los Angeles for the most
rapid response calls during 2002, with 32 companies, and has the highest number
of individuals affected (6,766).
VA’s
LMI+ forums are well attended and provide valuable information
that supplements the written reports.
Panel discussions by industry experts cannot be pre-scripted for the
report, nor can we anticipate the interesting roundtables and audience interaction
that frequently occur. The videotaping
of these forums would be a beneficial addition to NOVA’s resource library
and, along with our website, would allow access to information on an as needed
basis.
NOVA’s
LMI+ forums and reports have been a resounding success,
not just in Silicon Valley, but nationally as well.
Some reports have undergone several re-printings in order to meet the
demand we typically experience. NOVA
proposes requesting additional funds to cover the cost of additional printing
of past reports so that we can continue to provide this information to the
businesses, educators and job seekers who request it.
The NOVA Workforce Board
proposes to coordinate an on-going environmental scan of the Silicon Valley
workforce to be able to understand the needs for career mobility and skill
development. This index would
identify trends in the valley along with short term and long term gaps in
the workforce. This project requires
a full time researcher for the remaining quarter of this year to develop a
process and gather baseline information, and is consistent with Rapid Response
efforts to provide relevant labor market data.
The move to and establishment of the NOVA Business Service Center (in the location previously occupied by Sc(i)3), is currently in process. NOVA believes that this will provide a more resource rich and professional environment in which to serve our business clients. Some of the costs of moving rapid response staff to be part of this new center, including the move, furnishings and increased rent costs were not anticipated in the original budget, and are being requested as an addition to our Rapid Response Grant.
Fiscal Impact
There will be no fiscal impact to the City because funds
received will offset program expenditures.
PUBLIC CONTACT
Publication and posting of the City Council agenda.
Public meeting of the NOVA Workforce Board on March 27, 2002.
ALTERNATIVES
Council does not approve modifications to NOVA’s Rapid Response Grant and the application for additional funds.
Council approves select items from proposed additional activities.
RECOMMENDATION
Staff recommends that the Sunnyvale City Council concur with
the NOVA Workforce Board and authorize an application to the State for additional
Rapid Response funds not to exceed $110,000. It is further recommended that,
should the grant be funded, the City Manager be authorized to execute the
necessary subgrant with the State of California.
Prepared by:
Judith
Gentry, Manager
Program
Quality and Operations
Department of Employment Development
Reviewed by:
Michael J. Curran, Director
Department
of Employment Development
Approved by:
Robert S. LaSala
City Manager
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