Title
Employer-Developed Registered Apprenticeship Employer Program Contracts - Citywide
Description
This report requests the Economic Development and the Arts Subcommittee recommend City Council approval to contract with employers and other entities that will participate in employer-developed Registered Apprenticeship Programs and provide funding to support these programs.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The Phoenix Business and Workforce Development Board (Board) provides strategic guidance for workforce programs and coordinates efforts with employers, education partners, and state agencies to develop career pathways in high-demand sectors for the City of Phoenix. The Board was established as a requirement of the City's Workforce Innovation and Opportunity Act (WIOA) grant funds, in addition to providing this critical community stakeholder feedback and direction for Phoenix. The Board identified apprenticeship expansion as a key focal point in its strategic plan to strengthen the regional talent pipeline and meet employer workforce needs. These employer-developed apprenticeship programs are separate from and not a part of the City of Phoenix's existing registered apprenticeship training programs.
While the Board provides strategic oversight and program sponsorship, the City, through 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 contracts, managing funds, and ensuring compliance with all applicable state, federal, and City requirements. Working with the U.S. Department of Labor’s (DOL) industry Intermediary, the National Institute for Industry and Career Advancements (NIICA), the Board collaborated with education and industry partners to create training standards for Registered Apprenticeship Programs that can be replicated across employers. In January 2024, the City registered its first apprenticeship program in the semiconductor and advanced manufacturing field for Industrial Maintenance Technicians (Facilities Technicians) in partnership with the Maricopa Community College District (MCCCD) and TSMC Arizona Corporation. Subsequently, two additional programs were launched:
- Manufacturing Technician Apprenticeship - Equipment Technician (Program length: 12-18 months).
- Nanotechnology Technician Apprenticeship - Process Technician (Program length: 24-36 months).
The Registered Apprenticeship Programs were developed collaboratively with MCCCD's Estrella Mountain and Rio Salado community colleges, and Northern Arizona University (NAU). These programs provide a pathway for participants to advance within the semiconductor and advanced manufacturing sectors. Apprenticeships combine paid employment with structured Related Technical Instruction (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 first apprenticeship program, with eight Facilities Technicians, began in April 2024, and was supported through the City's AZQuest Grant, a DOL 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 costing $127,502, was funded by the SEMI Foundation through the Arizona Commerce Authority Apprenticeship Expansion Grant. Moving forward, the estimated program costs per participant ranges 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.
If approved, CEDD will coordinate with education partners and employers to ensure delivery of RTI, maintain participant and employer records and report outcomes through the DOL Registered Apprenticeship Partners Information Database System (RAPIDS), coordinate with the Arizona Department of Economic Security Apprenticeship Office, and promote apprenticeship opportunities within the community. Staff will also administer employer contracts, monitor wage progression schedules, and ensure equal opportunity compliance. Through its sponsorship role, the City provides employers with a streamlined pathway to participate in Registered Apprenticeship Programs while ensuring accountability, quality, and alignment with the Board's and City's workforce priorities.
Employer contracts will: 1) define on-the-job training standards, mentorship expectations, and performance reporting; 2) ensure compliance with safety, nondiscrimination, and equal opportunity laws; 3) require submission of apprentice progress, hours worked, and wage updates; and 4) specify funding obligations to support the apprenticeships, education, administrative and compliance costs. CEDD will oversee program operations, including employer outreach, coordination with partners, management of funds, and collaboration with the Arizona Department of Economic Security Apprenticeship Office.
The program is currently supported by staff funded by WIOA; however, approval of this action would allow the City to off-set staff and administrative costs through the funding received the employer agreements and other entities.
Contract Term
The term of the contracts will be three years.
Financial Impact
The total aggregate value of the contracts will not exceed $650,000. Funding will be provided through the employer agreements. There is no impact to the General Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Community and Economic Development Department.