Title
Employer-Developed Registered Apprenticeship Program Memoranda of Understanding with Maricopa County Community College District and Northern Arizona University (Ordinance S-52425) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to enter into Memoranda of Understanding (MOUs) with the Maricopa County Community College District (MCCCD) and Northern Arizona University (NAU) to provide related technical instruction (RTI) and educational services for the Phoenix Business and Workforce Development Board (Board) employer-developed apprenticeship programs. Further request authorization for the City Controller to disburse all funds related to this item. The total aggregate value will not exceed $650,000.
Report
Summary
The Board provides strategic guidance for workforce programs under the Workforce Innovation and Opportunity Act (WIOA), collaborating with employers, education institutions, and state agencies to develop career pathways in high-demand sectors. As outlined in its strategic plan, the Board has identified apprenticeship expansion as a key strategy to strengthen the regional talent pipeline and address employer workforce needs. While the Board offers strategic oversight and program sponsorship, the Community and Economic Development Department (CEDD), serves as the registered apprenticeship program sponsor and fiscal intermediary. In this role, CEDD is responsible for executing agreements, managing funds, and ensuring compliance with all applicable state, federal, and City requirements. These employer-developed apprenticeship programs are separate from and not a part of the City of Phoenix's existing registered apprenticeship training programs
Apprenticeships combine paid employment with structured RTI, allowing participants to earn while they learn. Nationally, 93 percent of apprentices remain employed after completion, and every $1 invested in apprenticeship programs yields a $1.47 return on investment. The Board, in partnership with the U.S. Department of Labor's (USDOL) Industry Intermediary, the National Institute for Industry and Career Advancements (NIICA), collaborated with education and industry partners to develop standardized training programs that can be replicated across employers.
In January 2024, CEDD registered its first Employer-Developed Registered Apprenticeship program in semiconductor and advanced manufacturing for Industrial Maintenance Technician (Facilities Technician), in partnership with MCCCD and TSMC Arizona Corporation. Subsequently, two additional programs were launched:
- Manufacturing Technician Apprenticeship - Equipment Technician (12-18 months).
- Nanotechnology Technician Apprenticeship - Process Technician (24-36 months).
These programs were developed collaboratively with NAU and MCCCD's Estrella Mountain and Rio Salado community colleges. They provide clear pathways for participants to advance within the semiconductor and advanced manufacturing sectors. Estimated program costs per participant range from $1,300 to $5,000, with future cohorts estimated at approximately $216,666 annually, reflecting the investment required to deliver high-quality training and support services.
The first apprenticeship program, with eight Facilities Technicians, began in April 2024 and was supported through the City's AZQuest Grant, a USDOL National Dislocated Worker Grant in partnership with the Arizona Office of Economic Opportunity. A second cohort, including 10 Process Technicians, 18 Manufacturing Technicians, and 18 Facilities Technicians was supported by a $127,502 grant from the SEMI Foundation through the Arizona Commerce Authority Apprenticeship Expansion Grant.
To ensure program quality and accountability, Memoranda of Understanding (MOUs) will be established with MCCCD and NAU. These MOUs outline classroom instruction, payment processes, and record-keeping requirements; include data-sharing provisions to track enrollment, joint marketing efforts and coordination of letters of support and outcomes; ensure instruction aligns with approved apprenticeship standards; and require regular progress reports and invoices tied to performance and payment schedules.
CEDD staff coordinate with education partners and employers to deliver RTI, maintain participant and employer records, and report outcomes through the U.S. Department of Labor's Register Apprenticeship Partners Information System (RAPIDS), coordinate with Arizona Department of Economic Security Apprenticeship Office, and promote apprenticeship opportunities within the community.
As part of the proposed MOU terms for MCCCD and NAU, CEDD will expend funds received through the employer contracts and other entities from the Employer Developed Registered Apprenticeship Program. This request is in alignment with the City's strategic plan to focus on Economic Development and Education, CEDD's goals to develop a skilled workforce in high-growth and high-wage sectors, and the Board’s Strategic Plan to strengthen employer partnerships and create sustainable career pathways in high-demand industries.
Contract Term
The term of the MOUs will be three years with one two-year renewal option.
Financial Impact
The total aggregate value of the MOUs will not exceed $650,000. Funding will be provided by the Employer Agreements and other entities. There is no impact to the General Fund.
Concurrence/Previous Council Action
This item was recommended for approval at the Economic Development and the Arts Subcommittee meeting on November 12, 2025.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Community and Economic Development Department.