Title
Arizona Department of Economic Security Intergovernmental Agreement - Authorization to Accept and Disburse Workforce Innovation and Opportunity Act Program Grant Funds (Ordinance S-49779)
Description
Request to authorize the City Manager, or his designee, to enter into an intergovernmental agreement (IGA) with the Arizona Department of Economic Security (DES) to accept up to $75 million of Workforce Innovation and Opportunity Act (WIOA) grant funds for a five-year contract term beginning July 1, 2023, on behalf of the Phoenix Business and Workforce Development Board (Board). Further request to authorize the City Treasurer to accept and the City Controller to disburse those funds. Additionally request to authorize to include an indemnification provision as required by DES in accordance with Phoenix City Code section 42-20(B). The annual WIOA allocations will be set by the Workforce Arizona Council each June for the upcoming fiscal year. There is no impact to the General Fund.
Report
Summary
WIOA is a federal program branded “American Job Centers'' with a state brand of “ARIZONA@WORK” and is implemented through an IGA with DES. This program provides funding for workforce development activities designed to enhance the employability, occupational attainment, retention, and earnings of adults, dislocated workers, and youth; and to assist employers recruit, develop, and retain the best employees for their workforce needs. Through the IGA, and on behalf of the Board, the Community and Economic Development Department (CED) will implement the required activities of the Board, including adult, dislocated worker, youth, rapid response, and work-based learning services; ensure oversight and compliance with WIOA regulations, applicable federal and state laws, rules, regulations, and state policies and procedures; and maintain all timelines and criteria set out for the Board and City, including meeting of performance measures.
The WIOA grant will continue to fund the Phoenix Business and Workforce Development Center and business services that support Phoenix employers with rapid-response activities, recruitment, training, and retention programs provided by CED. To accomplish this, CED will subcontract with employers to provide a Work Based Learning Program that will expand the skills of an existing workforce to gain competitive skills necessary to avoid potential separation of employment, connect local employers to great job candidates who need additional industry experience, and meet the special requirements and skills needed by employers. In addition, CED will subcontract with community-based organizations to provide case management and career services for youth, laid off worker and adult clients. These subcontracts are procured through City Administrative Regulation 3.10. The number of subcontractors varies based on available funds and direction of the Board. Subcontractors bring collaboration, expertise and resources to the WIOA program. The WIOA grant will also continue to fund City staff that support the Board’s activities in CED as well as Memoranda of Understanding between CED and other City departments that provide or deliver workforce development services under WIOA on behalf of the Board.
As required by the terms of the grant, the City allows WIOA participants to choose among the 300+ vendors on the State of Arizona's Eligible Training Provider List (ETPL) for training. The ETPL and the related eligibility procedures ensure the accountability, quality and labor-market relevance of training services provided to eligible WIOA participants. In addition, the City is required to provide WIOA participants with emergency support and short-term prevocational services such as childcare, health care, housing, transportation, one-time classes, utilities, and professional clothing for interviews, to ensure an eligible participant's successful completion of a workforce development program. These services are impractical to compete as payments must be made to a specific participant's landlord, utility provider, car repair facility, health care provider, or childcare provider and the time frame in which these services are needed is immediate. The provision of emergency support services must comply with the financial limits established by the ARIZONA@WORK City of Phoenix Support Services Policy. All other goods and services obtained to fulfill the grant requirements will be procured in compliance with City Administrative Regulation 3.10.
Contract Term
The IGA will begin on July 1, 2023, and will end June 30, 2028, unless otherwise amended.
Financial Impact
No general funds are required. Funding is provided by the U. S. Department of Labor to DES each year and then DES allocates funding to the respective Boards. The annual funding has not been determined for this coming year as of the time of this report; however, based on historical budget trends for the past several years, we expect that amount to be no more than $15 million for Fiscal Year 2023-24. Within that $15 million, CED and Human Service Department provides the necessary Board and Program services including ETPL contracts of approximately $8 million annually as well as Support Services of approximately $120,000 annually, and other contracts as needed to implement the WIOA grant.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.