REPORT TO THE CITY COUNCIL September 28, 2017 FROM: BLAKE KONCZAL, Executive Director Fresno Regional Workforce Development Board BY: WILMA QUAN-SCHECTER, City Manager City Manager's Office SUBJECT ..Title Actions pertaining to Workforce Innovation and Opportunity Act (WIOA) Mandated Partner Phase II Memorandums of Understanding: 1. Approve the use of the template for the Workforce Innovation and Opportunity Act (WIOA) Mandated Partner Phase II Memorandum of Understanding. 2. Authorize the City Manager or designee to sign all Phase II MOUs, not in excess of $50,000, as they complete negotiation and are presented to the City Manager. ..Body RECOMMENDATIONS Staff recommends the City Council approve the use of the template for the Workforce Innovation and Opportunity Act (WIOA) Mandated Partner Phase II Memorandum of Understanding (MOU), and authorize the City Manager or designee to sign all Phase II MOUs, not in excess of $50,000, as the MOUs complete negotiation and are presented to the City Manager. EXECUTIVE SUMMARY This action allows the Fresno Regional Workforce Development Board (FRWDB) to negotiate MOUs with each of the mandated partners, as required by the WIOA. These Phase II MOUs are required to be in place no later than January 1, 2018. The Phase II MOUs will be appended to the Phase I MOUs executed in 2016. BACKGROUND The United States Congress passed the WIOA (the Act), as an enhancement to the previous Workforce Investment Act. The Act was signed into law by President Barack Obama on July 22, 2014, and the law took effect on July 1, 2015. The WIOA mandates that certain federal, state, and local agencies formally partner with local Workforce Development Boards, what is now known as America's Job Centers of California (AJCC), in order to refer clients between the partners for specific services to better serve the community and leverage resources from multiple sources, as appropriate. These mandated partners are to represent the following areas of need: * State of California Employment Development Department; * Representatives of Community Services Block Grant Act; * Representatives for Older Americans; * Department of Rehabilitation; * Fresno County Department of Social Services; * Representatives of Adult Education/Community Colleges; * Representatives for Native Americans; * Representatives for Migrant Seasonal Farmworkers; and * Job Corps. The MOU process was split between Phase I and Phase II, where Phase I established the AJCC system, partnerships, and shared services. Phase I MOUs are reviewed and renewed every three years. The Phase I Agreements were completed in July 2016. Phase II establishes the Resource Sharing Agreements (RSAs) between the local board and the co-located partners. The purpose of the RSAs is to share equitably in the infrastructure cost of running the "One-Stop System." These RSAs also document the total costs of Career Services provided to the community across all of the Partners. These RSAs are required to be reviewed, renegotiated, and renewed every year. The recommended action will directly aid in job creation. This WIOA funding supports training and employment goals for many industry clusters, i.e., healthcare, manufacturing, construction and trades, logistics and distribution, automotive technology, information technology, renewable energy, agribusiness, and green technology. FRWDB staff is in final negotiation with all mandated partners. By approving this item, the signature process will allow the FRWDB to complete the signatory process with the Chief Local Elected Officials (City of Fresno and County of Fresno) in a timely manner. This will prevent the State of California Workforce Development Board and State of California Employment Development Department from sanctioning the Local Workforce Development Area and a possible loss of critical funding to support the local community. If a Phase II Memorandum of Understanding is not executed between each mandated partner by January 1, 2018, Fresno County will be out of compliance with WIOA requirements, and risks losing funding for WIOA activities that benefit the residents of Fresno County. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines section 15378 the approval of this agreement does not qualify as a "project," and is therefore exempt from CEQA requirements. LOCAL PREFERENCE Local preference was not considered since this item does not include a bid or award of a construction or services contract. FISCAL IMPACT There is no increase in Net City Cost associated with the Recommended Action. The Fresno Regional Workforce Development Board is 100% funded by non-City sources. These have their origin primarily with the United States Department of Labor, being supplemented by other federal and State of California grants. Attachments: Phase II MOU Amendment RSA template Finalv2 91517 Attach A - Manchester Comprehensive AJCC Budget v3 082517 Attach B - Allocation Methodology and Plan v3 082517 Attach C - Consolidated v090117