March 18, 2003

SUBJECT:

Approval for NOVA to Apply to U. S. Department of Labor for National Emergency Grant not to Exceed $20 Million to Serve Dislocated Workers in Silicon Valley

 REPORT IN BRIEF

 

In response to the continued need for services to dislocated workers in our region and the impending shortage of State discretionary funds to address that need, NOVA seeks approval to submit an application to the U. S. Department of Labor for National Emergency Grant funds on behalf of NOVA and neighboring workforce boards.  It is recommended that the Sunnyvale City Council, on behalf of the seven NOVA consortium cities, approve the submission of an application in an amount not to exceed $20 million.

 

BACKGROUND

 

As the economic downturn continues and large layoffs are announced locally, NOVA has seen strong demand for our services and large numbers of WARN (Worker Adjustment and Retraining Notification Act) notices.  It appears that NOVA’s existing dislocated worker resources will be insufficient to meet this growing demand.  NOVA currently has an $8 million STAR (Skills Testing Assessment and Reemployment) grant through the State of California, which is our primary source of funding to serve dislocated workers.  Four million has been distributed to NOVA to date on that grant, with the remaining $4 million to be made available when the initial funds have been spent.  NOVA anticipates the initial funds to be spent by early April, and the balance to be expended by late September 2003.  STAR has been funded by State 25% discretionary funds, for which continued availability is uncertain due to over-commitment of State resources.  The Department of Labor has announced the availability of funding reserved for emergency situations affecting dislocated workers through its National Emergency Grant (NEG) process.  They are encouraging local areas to work with their State employment systems in the submission of grant applications.

 

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 has had initial conversations with the State around the development of an NEG application.  To date, the State has identified three areas they would like to explore – information technology, transportation (including airports and airlines), and public sector downsizing.  The focus for this region would be on information technology.  While the State would not preclude NOVA from submitting a proposal on our own, the State believes that DOL would prefer a region-wide application.  In that vein, NOVA has begun conversations with our neighboring workforce areas (San Jose/Silicon Valley, and the counties of San Mateo and Santa Cruz) to ascertain interest and level of need for those areas.  If a joint proposal is developed, we are anticipating a request for up to $20 million for the entire region.  The exact amount would depend on each area’s need, as well as the term of the grant, with the expectation of up to a two-year term.  The allocation of these funds to each area would be dependent on layoffs and current available funding.  The proposal would be submitted through the State, which will add mass layoff statistics and other relevant data.  At its meeting of January 22, 2003, the NOVA Workforce Board approved the submission of an NEG proposal.

 

Fiscal Impact

 

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

 

PUBLIC CONTACT

 

1.      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.

 

2.      Public meeting of the NOVA Workforce Board on January 22, 2003.

 

ALTERNATIVES

 

1.        Council approves application to U.S. Dept. of Labor for National Emergency Grant in the amount of $20 million.

 

2.        Council rejects application to U.S. Dept. of Labor for National Emergency Grant in the amount of $20 million.

 

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 submission of an application to the U.S. Department of Labor for a National Emergency Grant in an amount not to exceed $20 million.  It is further recommended that the City Manager or his designee be authorized to execute the necessary grant agreement.

 

 

Prepared by:
Tito Nacario, Administrative Aide
Department of Employment Development

 

 

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

 

Michael J. Curran, Director
Department of Employment Development

 

                                                                                                                    

Approved by:

Robert S. LaSala

City Manager