October 12, 2004

SUBJECT: Approval of Fifth-Year (2004-05) Modifications to NOVA Workforce Investment Act Five-Year Plan

REPORT IN BRIEF

Workforce Investment Act (WIA) policies require that the local Workforce Investment Board (WIB) submit a Five-Year Plan to the Governor for its WIA allocated funds. The purpose of the Plan is to describe the local area’s one-stop approach to workforce development programs that respond to the employment needs of its many customers, including current workers, unemployed workers, dislocated workers, new entrants to the labor force, youth, veterans, and employers.  NOVA’s Plan reflects an employment and training system based on informed customer choice and performance accountability.

In 2004-05, the fifth year of the plan, NOVA does not plan significant strategic changes; therefore, the plan primarily focuses on new budget and participant plans for the allocated funding. It is recommended that the Sunnyvale City Council concur with the NOVA Workforce Board and approve the fifth-year plan modification.

BACKGROUND

The Workforce Investment Act was enacted in 1998, providing sweeping changes in workforce development and training.  NOVA was in the forefront of these changes and was a recognized innovative organization in the country. The change transitioned the Job Training Partnership Act (JTPA) into the new WIA legislation beginning in July 2000.  The State of California, under the direction of the Governor, developed a five-year plan for the new legislation, and required each Local Workforce Investment Area to submit a five-year plan in parallel to that of the State.  The NOVA Workforce Board serves as the guiding force behind NOVA’s continued development, growth and service.

NOVA’s five-year plan explained the partnerships developed under the CONNECT! One-Stop system, providing one source for service.  NOVA and the Employment Development Department serve as the major partners in the CONNECT! partnership.  A Memorandum of Understanding (MOU) guides all of the partners, which now total 33 agencies.  An MOU is one of the major requirements in the plan.

The plan also illustrates the diversity of services available to individuals and businesses, and is updated each year to reflect local economic conditions and any significant strategic changes.  It should be noted that the plan was released for public comments, which were due September 20.  No comments were received. The NOVA Workforce Board Executive Committee approved the fifth-year plan modification at its meeting of September 15, 2004.

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 and the CONNECT! one-stop do not plan significant changes this year in terms of strategic direction; therefore, the plan has primarily been updated to reflect changes in the labor market.  In addition, NOVA is required to submit updated budget and participant plans for the use of the 2004-05 allocated funds.

In terms of funding for PY 04-05, NOVA’s Adult, Dislocated Workers, and Youth allocations were all increased.  NOVA’s total allocations for the fifth year across these grants increased by 17%, following a 10% increase the previous year (and a 19% decrease the year prior).

The following chart shows NOVA’s PY 04-05 new allocations, compared with our PY 03-04 allocations:

NOVA will continue to serve the populations eligible for these grants thorough Core, Intensive and Training Services as regulated under WIA.   Youth are served in Older Youth and Younger Youth groups.    The following are planned numbers for PY 2004-05:

PARTICIPANT PLAN

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. The fifth-year plan modification was released for public comment via a public notice in the San Jose Mercury News on August 27, 2004.   

ALTERNATIVES

1.  Council approves NOVA’s Workforce Investment Act fifth-year plan modification.

2. Council does not approve the WIA fifth-year plan modification. 

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, concur with the decision of the NOVA Workforce Board and adopt Alternative 1:  Council approves NOVA’s Workforce Investment Act fifth-year plan modification.  It is further recommended that the City Manager or his designee be authorized to execute the necessary grant agreements relative to these funds.

Reviewed by:

Michael J. Curran,
Director
Department of Employment Development 

Prepared by: