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April 16

April 16, 2002

SUBJECT: Authorization for NOVA to Apply to State of California for Additional Funding to Assist Companies Experiencing Reductions in Force

REPORT IN BRIEF

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.

Fiscal Impact

There will be no fiscal impact to the City because funds received will offset program expenditures.

PUBLIC CONTACT

  1. Publication and posting of the City Council agenda.

  2. Copies of this report are available to the public in the Library and on the City of Sunnyvale Internet home page.

  3. Public meeting of the NOVA Workforce Board on March 27, 2002.

ALTERNATIVES

  1. Council concurs with the staff recommendation and the decision of the NOVA Workforce Board and approves modifications to NOVA’s Rapid Response Grant and the application for additional funds.

  2. Council does not approve modifications to NOVA’s Rapid Response Grant and the application for additional funds.

  3. 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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