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HomeMy WebLinkAboutItem 12a - Withdrawal from Foothill Workforce Development Board DATE: August 18, 2020 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Senior Management Analyst SUBJECT: CONSIDERATION OF WITHDRAWAL FROM THE FOOTHILL WORKFORCE DEVELOPMENT BOARD Recommendation: Authorize the City Manager to Withdraw and Join County Program SUMMARY The Cities of Arcadia, Duarte, Monrovia, Pasadena, Sierra Madre, and South Pasadena are members of the Foothill Workforce Development Board (“FWDB”), which receives federal funds to provide job skills development, job training and placement, and overall workforce development. Recently, the City of Monrovia analyzed the benefits of membership in the FWDB, as there has been questionable local return for cities, other than Pasadena, within this arrangement. The City of Monrovia has also explored the possibility of opting out of this agreement and seeking a more localized agreement that would include the Cities of Arcadia and Duarte. It is recommended that the City Council authorize the City Manager to withdraw from the FWDB and join the County of Los Angeles program along with Monrovia and Duarte. BACKGROUND The FWDB is a Joint Powers Authority (“JPA”) which receives federal funding through the Workforce Innovation and Opportunity Act (“WIOA”). The WIOA provides funds to local, centralized workforce development centers designed to meet local needs. The FWDB utilizes City of Pasadena staff to administer the program at a facility located on Green Street in Pasadena. Although the local plan calls for a second center on the eastern portion of the region (in Monrovia at the Monrovia Community Adult School), this has not been established and funding has not been allocated to this facility. The vast majority of the focus of the funding and the programs are targeted in the City of Pasadena, which is the grant recipient and fiscal agent for the program. The Cities of Monrovia, Arcadia, and Duarte have maintained relationships with the FWDB for a number of years. The most recent JPA renewal process was executed by the Withdrawal From Foothill Workforce Development Board August 18, 2020 Page 2 of 3 City in 2017. The FWDB has a Policy Board and representation from each of the member cities. Mayor Pro Tem Tay is the City’s representative. Despite the City’s membership in the JPA, tangible benefits from the program have not been realized. Members of the Economic Development staff have been involved intermittently in meetings or workshops, but no significant efforts for the Arcadia workforce can be documented. Various staff members from the FWDB have reached out over time, and programs have been discussed, but there has been a lack of continuity in these efforts. DISCUSSION As mentioned, the City of Monrovia has completed a detailed analysis into the provision of funding and status of the FWDB and its benefit to the Cities of Monrovia, Arcadia, and Duarte (“MAD” Cities). It should be noted that Arcadia and Duarte staff are utilizing the work done by Monrovia staff and are reliant on the numbers provided by Monrovia. Please see the August 4, 2020, Staff Report by Monrovia City Manager Dylan Feik for the full analysis of the program (Attachment No. 1). The report states that of the overall allotment of WIOA funds of $1,594,035, the City of Pasadena receives $1,057,575 (66.3%) of the funds while the MAD Cities receive $422,726 (26.5%). This is despite the fact that Pasadena has 48.3% of the population of the group while the MAD cities represent 39.2%. While this discrepancy is a significant issue in and of itself, the report goes on to state that there is no documentation that the funding allocated to any of the MAD Cities has actually gone toward training residents in those communities. This is supported by the experience of the Arcadia Economic Development Division, in that no reporting along these lines has been received. In addition, the report goes on to state that the program uses nearly 60% of its budget for administrative expenditures and only 40% for actual training and services, an unusually low amount. The City of Monrovia is recommending that the MAD Cities opt out of the JPA and form a new memorandum of understanding to bring the resources of a local workforce development center (the Monrovia Community Adult School) to receive and administer funds. This would be done officially through the Los Angeles County Workforce Development Board, who has said they would pass the funding from MAD Cities directly to the newly formed MAD group. The rationale is that this move would provide a more direct benefit to the MAD Cities as well as provide transparency and accountability for the allocated funds that are received. The recommendation is that funds should be used for on-the-job training for in-school youth as well as for displaced workers, veterans, and adults. Monrovia’s staff report goes on to provide suggested breakdowns for how the money would be allocated and expended, but all of this would be vetted and discussed if this was a collective move that the three cities ultimately make. Based on a review of the anticipated process and funding expenditures, it is anticipated that creating a local MOU would lead to more direct benefits to Arcadia residents through this program. Withdrawal From Foothill Workforce Development Board August 18, 2020 Page 3 of 3 In order to withdraw, the Cities must submit a 90-day notice to the FWDB. Options for the City Council to consider include the following: 1. Stay in the existing JPA and reach out to administrative staff in Pasadena to gain a greater understanding as to how allocated funding reaches Arcadia residents and is implemented. 2. Work with the Cities of Monrovia and Duarte to withdraw from the FWDB and develop a MOU with these cities in the formation of a new group through the County program. This would include working with the City Attorney to develop the appropriate paperwork to opt- out. It is recommended that the City Council approve Option No. 2 above and authorize the City Manager to withdraw from the FWDB. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT There is no identified fiscal impact from either staying in the FWDB as a member of the JPA or opting out to join a more local group of the MAD Cities. However, it is anticipated that by joining a local group, more of the funding allocated to Arcadia will benefit Arcadia residents directly. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and authorize the City Manager to withdraw from the FWDB and join the County of Los Angeles Program along with the Cities of Monrovia and Duarte. Attachment No. 1: City of Monrovia Staff Report, dated August 4, 2020 Attachment No. 2: Joint Powers Agreement with the FWDB Attachment No. 1 Attachment No. 2