Title
One-Stop System Memorandum of Understanding and Infrastructure Funding Agreement (Ordinance S-52245) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to enter into a Memorandum of Understanding (MOU) with the ARIZONA@WORK City of Phoenix Workforce System Partners (Partners) on behalf of the Phoenix Business and Workforce Development Board (Board). The MOU includes an Infrastructure Funding Agreement (IFA) that outlines the infrastructure and shared costs between the Partners. The City will receive approximately $784,120 in funds from the Partners annually to be incorporated into the City's Workforce Innovation and Opportunity Act (WIOA) budget. The City will be responsible for expenditures in an amount not to exceed $2,440,000 over the term of the agreements. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item. There is no impact to the General Fund.
Report
Summary
The Board is a local workforce development board established under WIOA and is required by the legislation to work with the Chief Elected Official to negotiate and execute an MOU with all Partners to govern the operation of ARIZONA@WORK Job Centers and the One-Stop delivery system in Phoenix. The Board developed the MOU through local discussion and negotiation with the Partners and includes provisions that:
- Describe how various services will be coordinated and delivered through the One-Stop delivery system.
- Describe the methods for referring individuals between the Partners.
- Ensure that the One-Stop delivery system is accessible and inclusive.
- Provide a legal and operational framework for the One-Stop system.
- Provide a plan for how the Board and Partners will fund shared costs.
The IFA maintains transparency and accountability in use of funds, and includes definitions of the following:
- Infrastructure costs: the non-personnel costs necessary for the operation of the ARIZONA@WORK City of Phoenix Job Centers (comprehensive and affiliate), such as technology, pre-employment skills assessments, business services, and referrals to Partners.
- Shared costs: the common operating costs and communal services necessary for the operation of the ARIZONA@WORK City of Phoenix One-Stop System, such as the One-Stop Operator, virtual lobby management tool, and Partner co-enrollment activities.
Shared costs are currently paid solely by the City using WIOA funding. Upon execution of the MOU/IFA, shared costs will be a joint responsibility from all the Partners and calculated using the number of full-time employees providing workforce services for the Partners at One-Stop centers.
The Partners that participated in discussions and negotiations to develop the MOU include:
- WIOA Title IB Adult, Dislocated Worker, and Youth Programs: City's Human Services Department, Chicanos Por La Causa, Jewish Family and Children's Services, Neighborhood Ministries, and the Valley of the Sun YMCA.
- WIOA Title II Adult Education Programs: Arizona Department of Education on behalf of Arizona Center for Youth Resources, Friendly House, Literacy Phoenix, and Rio Salado College.
- WIOA Title III Wagner-Peyser Programs: Arizona Department of Economic Security (DES), Employment Services.
- WIOA Title IV Vocational Rehabilitation: DES, Rehabilitations Services Administration.
- Senior Community Service Employment Program: AARP Foundation.
- U.S. Department of Housing and Urban Development: City's Housing Department.
- Trade Adjustment Assistances and Jobs for Veterans State Grants: DES, Employment Services.
Contract Term
If approved, the three-year term of the MOU/IFA will be effective July 1, 2025 through June, 30, 2028.
Financial Impact
Funding received from Partners will reimburse the City's WIOA program. The aggregate value of expenditures to be disbursed through this agreement shall not exceed $2,440,000. Funding is available from the City's allocation of WIOA federal grant funds. There is no impact to the General Fund.
Concurrence/Previous Council Action
This item was approved at the Phoenix Business and Workforce Development Board meeting on May 8, 2025.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.