February 3, 2004

SUBJECT: Authorization for NOVA to Apply for Additional Funding not to Exceed $10 Million to Serve Dislocated Workers  

REPORT IN BRIEF

Through our ongoing relationships with hospitals and educators, NOVA staff has become aware of a number of specific challenges which are precluding our community’s ability to recruit, train, hire, and advance healthcare workers at the very time when it is most critical.  While we have the expertise and alliances to implement solutions that would mitigate these challenges, in several areas we are lacking the financial resources and are therefore looking to the Department of Labor for assistance. As there is no specific request for proposals currently available that would cover our request, this would be an unsolicited proposal.

Staff recommends that the Sunnyvale City Council, on behalf of the seven-city NOVA consortium, concur with the decision of the NOVA Workforce Board and authorize NOVA’s submission of a proposal in the amount of $1,000,000 to create new solutions that are responsive to the needs of the local healthcare industry.

BACKGROUND

The ability to provide accessible, affordable healthcare becomes more critical as the baby boomers age and require increased levels of health care support. The current infrastructure for education and industry is in need of some reengineering if it is to provide support for the needs of healthcare in the future.  Demands for healthcare services are increasing, while the supply of healthcare professionals is getting more difficult and expensive to provide.

The healthcare industry is in a state of crisis. Hospitals such as Valley Medical Center in San Jose are forced to import nursing staff from neighboring states in order to accommodate increased demand. It is much more cost-effective to be able to grow the local workforce rather than importing it. In addition, budget cuts and relatively high costs to support health-care oriented classes have led to a shortage of available classes in this field.  Local community colleges have cut these classes repeatedly due to these issues.  The time necessary to get through the educational process is already long, and completion is delayed, as classes are often not available in the sequence that may be required.  Increases in tuition are also playing a role in slowing the development of a steady supply of well-educated personnel for this field. Challenges face the healthcare industry at every conceivable level - a comprehensive approach is needed to address critical shortages in our region. 

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

Our proposal presents a menu of opportunities for funding – any or all of which will have an immediate impact on meeting crucial labor shortages in our community. Our business and community college allies in this project are dedicated to producing successful outcomes and excited to capitalize on the opportunity.  Many will bring their own resources to complement any funding made available from the Department of Labor. Through partnerships with local community and other colleges, we propose to:

• Perform a research study to identify key shortages and address recruitment, education, and retention issues.
• Develop marketing materials to stimulate interest in pursuing healthcare career paths.
• Create a “Healthcare Navigator” position in our one-stop to connect dislocated workers with new career opportunities where they are most needed.
• Add much-needed prerequisite classes, recently cut from community college budgets, thus removing a roadblock to enrollment in nursing and other allied health programs.
• Create training programs in two high-demand healthcare occupations:  sterile processing technician and surgical technician.
• Provide vocational ESL training in a hospital setting to those for whom this is a stumbling block to further advancement.
• Create a “Healthcare Registry,” designed to link businesses with healthcare professionals to solve their recruiting needs. 

A multi-tiered approach is required to address the healthcare worker crisis facing our region. This proposal offers a broad selection of solutions to address some of the many challenges faced by the industry.  It is a comprehensive approach designed to have an impact at multiple levels and offers a cost-effective means of addressing challenges in the healthcare industry. It also reflects common enough issues that it can serve as a nationwide model. The proposed project enables the workforce development system to be responsive to the needs to of the healthcare industry by providing customized approaches that foster an ongoing commitment to providing solutions for both businesses and job seekers.

Submission of this proposal was approved by the NOVA Workforce Board at its meeting of January 21, 2004.

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.

ALTERNATIVES

1. Council approves submission of a proposal to the U. S. Department of Labor for a Grant to serve the local healthcare industry.

2. Council rejects submission of the proposal to the U. S. Department of Labor.

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 submission of a proposal to the U. S. Department of Labor for a Grant to serve the local healthcare industry.  It is further recommended that the City Manager or his designee be authorized to execute the necessary grant agreement.

Prepared By:

Heidi Bonner
Employment Training Program Coordinator
Department of Employment Development

Reviewed By:

Jeanette Langdell
Employment Training Manager
Department of Employment Development

Reviewed by: