August 20, 2002

REPORT IN BRIEF

In order to continue NOVA's successful Skill Testing, Assessment and Reemployment (STAR) services for the year 2002-03, a new proposal must be submitted to the State of California.  It is recommended that the Sunnyvale City Council, on behalf of the seven NOVA consortium cities, authorize staff to submit a proposal in an amount not to exceed $8,000,000 to provide for the continuation of STAR services (STAR XII) in 2002-03.

In addition, staff recommends that if the grant is funded, the City Manager be authorized to accept the funds and execute the necessary agreement with the State.

BACKGROUND

The State of California initially funded NOVA’s STAR services in the fall of 1989.  NOVA has since received continuous funding through 11 major grants over a thirteen-year period. EDD has  invested over $43,000,000 in STAR to serve 15,900 dislocated workers.  Over its history (including the recessionary period in the early 1990s), 72 percent of STAR participants have found work, with an average wage at placement of $20.73.  The average amount of NOVA’s STAR grants, which has steadily increased over the years, is over $5 million.

NOVA's current STAR XI grant was planned to operate through December 2002; however, at the current rate of utilization, it is expected to be fully expended by October.  The Workforce Board accepted STAR XI and authorized implementation of this grant at its meeting of January 23, 2002.  The program will enroll 1,272 clients in a myriad of services including extensive testing and assessment, occupational classroom training, on-the-job training, re-employment workshops, ProMatch services, a computerized learning lab, and funding for appropriate one-stop services. STAR’s program model provides the basis for NOVA's service delivery system for dislocated workers.  This model provides for a comprehensive assessment of the individual participant's work experience, aptitudes, interests and career goals. 

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

STAR services will be even more in demand in the 2002-03 year.  In April, Santa Clara County posted a record unemployment rate of 7.4%, compared to 1.5% just two years ago.  In NOVA’s area, over 45 WARN notices have been issued in the past year affecting 8,250 employees, more than any other workforce investment area in the nation.

NOVA’s STAR grant has performed positively over the years and has proven its benefit to the community.  The State of California recognizes that NOVA’s STAR program is a model of how a workforce development system should work and has continued its investment in NOVA through the renewal of STAR funding over the past 13 years.  NOVA now seeks to request funding from the State for what would be STAR XII, in order to meet community needs based on the current economy.  The grant amount requested will not exceed $8,000,000.

The NOVA Workforce Board, which met on July 24, 2002, has approved and authorized NOVA staff to submit the application for STAR XII for 2002-03.

Fiscal Impact

All services provided through this grant application will be completely reimbursed through the funding request.  Funding award will require a budget modification.

PUBLIC CONTACT

1. Public meeting of the NOVA Workforce Board on July 24, 2002.

2. 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, the availability of the report in the Library and City Clerk's Office.

ALTERNATIVES

1. Council approves the application for STAR XII funding for 2002-03 in an amount not to exceed $8,000,000.

2. Council rejects the application for STAR XII funding for 2002-03 in an amount not to exceed $8,000,000.

3. Other action as determined by Council.

RECOMMENDATION

It is recommended by staff that the Sunnyvale City Council on behalf of the NOVA seven city consortium adopt Alternative 1: Council approves the application for STAR XII funding for 2002-03 in an amount not exceed $8,000,000.  It is further recommended that if the grant is funded, the City Manager be authorized to accept the funds and execute the necessary agreement with the State.

Prepared by:
Jeanette Langdell, Employment Training Manager
Department of Employment Development

Reviewed by:
Michael J. Curran, Director
Department of Employment Development 

Approved by:
Robert S. LaSala
City Manager