Title
Phoenix Business and Workforce Development Board Memorandum of Understanding and Infrastructure Funding Agreement (Ordinance S-47240)
Description
Request to authorize the City Manager, or his designee, to approve the Workforce Innovation and Opportunity Act (WIOA) Phoenix Business and Workforce Development (PBWD) Board Memorandum of Understanding (MOU) and Infrastructure Funding Agreement (IFA) with the ARIZONA@WORK City of Phoenix Workforce System Partners (Partners). The City will receive approximately $717,354 in funds from the Partners, to be incorporated into the City's WIOA budget, and the City will be responsible for expenditures in an amount not to exceed $1,345,164 over the three-year 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 WIOA section 121(c)(1) requires the PBWD Board, with the agreement of the Chief Elected Official, to develop and enter into a MOU between the Board and the Partners identified below:
- WIOA Title I Adult, Dislocated Worker and Youth Programs (City of Phoenix Human Services Department), Native American Programs (Phoenix Indian Center)
- WIOA Title II Adult Education and Literacy Act, Literacy Volunteers of Maricopa County
- WIOA Title III Wagner Pyser, Arizona Department of Economic Security, Employment Services
- WIOA Title IV Vocational Rehabilitation, Arizona Department of Economic Security, Rehabilitation Services Administration
- WIOA Title V Senior Community Service Employment Program, AARP Foundation
- U.S. Department of Housing and Urban Development (City of Phoenix Housing Department)
- Trade Adjustment Assistance and Jobs for Veterans State Grants, Arizona Department of Economic Security, Employment Services
The MOU is an agreement relating to the operation of the workforce system in the City of Phoenix. The PBWD Board develops the MOU through local discussion and negotiation, and executes the agreement between the Board, the Mayor, and the Partners.
The MOU contains a plan for how the PBWD Board and Partners will fund 1) shared costs between the Partners and 2) the infrastructure costs of the one-stop centers.
Shared costs are common operating costs and communal services necessary for the general operation of the ARIZONA@WORK City of Phoenix Job Centers and Affiliate Sites, such as the One-Stop Operator (OSO), whose role is to coordinate integrated services at the one-stop centers, manage customer flow at the centers and serve as a liaison to the required one-stop partners, as well as the virtual lobby management tool, which are currently paid for by the City via federal WIOA funding. Shared costs will be calculated using the number of full-time employees delivering workforce services for each Partner at the one-stop center. Partners are responsible for paying their respective portions of the shared costs to the City, approximately $239,118 annually, which will be distributed into the City’s WIOA budget.
Infrastructure costs of one-stop centers are non-personnel costs that are necessary for the general operation of the one-stop center, such as initial intake, assessment of skills needed for employment, business services and referrals to other Partners. Infrastructure costs will be calculated between the City and the Partners based on each entity’s designated amount of square foot space within the one-stop center. The City’s share of infrastructure costs under the IFA range from $45,669 to $120,378 per location but will not exceed $1,345,164 over the full three-year term of the IFA, and will be distributed to the Arizona Department of Economic Security as owner of the one-stop centers. The MOU and IFA may contain other terms and conditions deemed necessary by the City Manager.
When fully executed, the MOU will contain the signatures of the PBWD Board Chair, Partners, the Chief Elected Official, and the time period in which the agreement is effective. The MOU must be updated not less than every three years to reflect any changes in the signatory official of the Board, one-stop partners, and Chief Elected Official, or one-stop infrastructure funding.
Financial Impact
The City’s annual portion of the infrastructure costs is $448,387.99 for a total amount not to exceed $1,345,164 over the course of three years, beginning in Fiscal Year 2020-2021. There is no impact to the General Fund. Funding is available from the City’s allocation of federal WIOA funds. Additionally, the City will receive funding from the Partners, anticipated at $239,118 annually with a total amount of approximately $717,354 to be collected over the three-year period. Funding received from the Partners will reimburse the City’s WIOA budget.
Concurrence/Previous Council Action
The Phoenix Business and Workforce Development Board approved the MOU and IFA at its Executive Leadership Committee meeting on Dec. 10, 2020.
Department
Responsible Department
This item is submitted by Deputy City Managers Jeff Barton, Inger Erickson and Mario Paniagua, and the Community and Economic Development, Human Services and Housing departments.