August 23, 2005
SUBJECT: Authorization for NOVA to Apply for Rapid Response Special Projects Funding in the Amount of $245,720 to Respond to Changes in Employment Opportunities
REPORT IN BRIEF
The State of California has issued guidelines for submitting applications for funding of special Rapid Response projects for allowable rapid response activities. It is recommended that the Sunnyvale City Council, on behalf of the NOVA seven-city consortium, authorize staff to submit an application for Rapid Response Special Projects funding in the amount of $245,720 for a project to understand and overcome structural workforce changes, with a focus on small business.
BACKGROUND
After awarding Rapid Response (RR) baseline funding, which is intended to allow an immediate response to layoffs, the State has available approximately $4 million for RR Special Project applications that meet specified criteria. These projects are expected to address additional needs of the community, beyond the baseline efforts, that fall within the allowable RR activities as defined in the Workforce Investment Act regulations. Each Workforce Investment Area may be awarded only one RR special grant, which will not exceed $250,000. Proposals that the State rates highly will be funded. Proposals are rated on return on investment (past performance, cost effectiveness, outcomes) and on ability to meet the priorities recommended by the California Workforce Investment Board, which include layoff aversion, innovation, small business services, and regional impact.
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
A structural change has occurred within Silicon Valley’s labor market. The technological focus that gave Silicon Valley its name and reputation changed dramatically through the dot-com boom of the late 1990s and the subsequent bust in 2001. Many of the jobs created during this period of growth have since been eliminated—some due to the trend of offshoring, some due to outsourcing, but nearly all the result of the ever-evolving nature of technology. Unlike the cyclical change that the region has experienced over the past 50 years, this event appears to be more structural in nature: many of the jobs lost over the past four years are unlikely to return and those that do will most likely require a significantly different skill set. Recent studies have shown that, despite the downturn in the economy, there has been significant growth in the small business sector, with these firms employing on average seven people each.
In order to maintain the quality and degree of services to both business and job seeker customers, the workforce development community must better understand the breadth of these changes that the region is currently experiencing and the projected effects on the future of the Valley’s workforce supply and demand.
With this project, NOVA and its neighboring Workforce Investment Boards (WIB) representing Santa Clara and San Mateo Counties propose to leverage existing strengths in an effort to identify:
a. the current and projected state of the region’s big business, specifically the large, primarily high-tech companies that employ nearly a quarter of the region’s workers; and
b. the current and anticipated workforce needs of the small business sector, the only category of business (as determined by number of employees) that has experienced any degree of growth locally throughout the course of the economic downturn.
In addition, the Boards will understand the networks of support systems used by small businesses—the kinds of networks, how they are used, and how the WIBs can become part of those networks, resulting in enhanced linkages between the businesses, the WIBs, and the community.
The NOVA Workforce Board Strategic Plan contains a goal of better understanding and evaluating local business needs. In the labor market intelligence area, it also calls for the Board to seize opportunities to partner in and influence regional studies that advance knowledge of changing economic conditions and employment requirements in the region. This project will further these goals and allow local workforce boards to develop and implement programs and services more in line with the needs of the job seeker and business communities. The NOVA Workforce Board Executive Committee has approved submission of this proposal.
FISCAL IMPACT
There will be no fiscal impact to the City because funds received will offset program expenditures.
CONCLUSION
The State of California has issued a solicitation for proposals for Rapid Response Special Projects funding. NOVA seeks authority to submit a proposal for $245,720 for a project to better understand and overcome recent structural workforce changes, with a particular focus on understanding the current and anticipated workforce needs of the small business sector.
PUBLIC CONTACT
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 State of California for Rapid Response Special Projects funding in the amount of $245,720.
2. Council rejects submission of the proposal to the State of California.
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 State of California for Rapid Response Special Projects funding in the amount of $245,720.
Reviewed by:
Michael J. Curran, Director
Department of Employment Development
Prepared by: Jeanette Langdell
Employment Training Manager
Approved by:
Amy Chan
City Manager