Report Prepared by: Frank Quintero, Deputy City Manager
Title
SUBJECT: Approval of a Professional Service Agreement with the County of Merced to Administer the Youth Jobs Program Using American Rescue Plan Act Funding in an Amount of $1,025,000 Over Two Years and a Supplemental Appropriation in the Amount of $25,000 from Fund 087-American Rescue Plan Act
REPORT IN BRIEF
Council directed staff to use a portion of the American Rescue Plan Act allocation for a youth job training program that provides young people with paid work experience supported by career guidance and skills development. The proposed agreement is with the County of Merced via their Department of Workforce Investment to provide the program over two years for a total of $1,025,000.00.
RECOMMENDATION
City Council - Adopt a Motion:
A. Approving a Supplemental Appropriation from the unreserved, unencumbered fund balance in Fund 087-American Rescue Plan Act in the amount of $25,000; and,
B. Approving the Professional Services Agreement between the City of Merced and County of Merced to provide a youth job training program over the next two years in an amount not to exceed $1,025,000.00; and,
C. Approving the use of the Stephen Leonard Park Community Center to house the program subject to a future Lease Agreement; and,
D. Authorizing the City Manager or the Deputy City Manager to execute the necessary documents.
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ALTERNATIVES
1. Approve as recommended by Staff; or
2. Approve, subject to conditions as specified by the City Council; or,
3. Refer to staff for reconsideration of specific items as requested by the City Council; or
4. Defer action until a specific date; or
5. Deny the request.
AUTHORITY
Charter of the City of Merced, Section 200; City Council Action of January 18, 2022 - American Rescue Plan Act Approved Allocation for Job Training Program; Adopted City Council Goals and Priorities for FY 2022-2023.
CITY COUNCIL PRIORITIES
City of Merced Adopted Budget FY 2021-2022, Section 7 - Economic Development; Objective #5 - “Engage with WorkNet of Merced County and other job training agencies to ensure the local workforce is trained and available for new jobs.”
DISCUSSION
As part of the American Rescue Plan Act Implementation Plan, the City Council concurred using a portion of the $27,427,882 federal funding for a youth job training program. Council’s direction was later reaffirmed at the City Council meeting of January 18, 2022, and the recently adopted Council Goals and Priorities for Fiscal Year 2022-2023.
After the City Council meeting of January 18, 2022, staff engaged with the County of Merced Department of Workforce Investment (DWI.) The department’s Director, Erick Serratto, and DWI staff presented components of models designed to provide youth with job training skills and work experience based on age groups 16-17 and 18-24. As discussions continued, a Scope of Work was developed and integrated as part of the proposed Professional Services Agreement (Attachment 1.)
City staff is requesting the City Council approve the Professional Services Agreement between the City of Merced and County of Merced in an amount not to exceed $1,025,000 divided over two traunches, $525,000 for the 1st traunch and $500,000 for the 2nd traunch.
With the potential to collaborate with other youth serving partners, City staff felt the Stephen Leonard Park Community Center would serve well as a hub. If approved, staff would come back with Lease Agreement between the City and the County of Merced for the Community Center.
Program Highlights: The purpose of the two-year program is to provide Merced City youth with work readiness and employment activities and, wherever possible, a bridge to long-term employment, career development and career-centered education opportunities.
The program would assist four hundred (400) young people ages 16-24 through an earn-and-learn model in which they are paid as they complete twenty (20) hours of work readiness training and an average of one hundred (100) hours of work at local small businesses. Youth ages 16 and 17 would earn minimum wage ($14.00-$15.00/hour) for the one-hundred and twenty (120) hours of the program. Youth ages 18-24 would earn minimum wage as they complete the 20 hours of work readiness training, and then be hired by a participating employer at the rate job-specific rate of pay, likely sixteen dollars and no cents ($16.00) or more.
The scope of work includes overall coordination and delivery of program services, administrative and financial management, participant and employer recruitment, reporting and communication, and presentation of program progress to City staff and Council.
The consultant, County of Merced through its Department of Workforce Investment, will provide the following services:
Program Administration. Consultant will administer the Program, including the hiring of personnel and procurement of vendors and subcontractors, payment for services and the proper calculation and distribution of wages for Program participants.
Collaborative Program Design. Consultant will develop and administer a design process in which three youth will collaborate on the design of various program features, such as work readiness content, supportive services, communication strategies, and related career development content. Youth will be paid for their participation across these series of meetings.
Participant Recruitment. Consultant will recruit eligible participants from the City’s priority populations using a variety of methods, including social media, presentations to organizations, coordination with high schools. Consultant will develop and host an informational website that will include a registration and inquiry form.
Work Readiness Training. Consultant will make available, either directly or through a vendor, meaningful work readiness training that prepares youth for success on the job. The training will be made available in-person at the Program site or online, over multiple days, culminating in a work readiness certificate. The training will be approximately fifteen to twenty (15-20) hours.
Employer Recruitment and Placement. Consultant will recruit a sufficient number of employers to provide job assignments for all participants, drawn from a diversity of industry sectors. As much as is possible, participants will have choice in selecting their job sites, and Program staff will help facilitate job matching based on interest, future career and education goals and skills demonstrated during work readiness training. For older youth, Consultant will facilitate longer-term job placement, utilizing Program funds to support On-the-Job Training opportunities in which the employer retains the worker beyond the subsidy period.
Temporary Employment. Consultant, through an Employer-of-Record (EOR), will ensure wages are correctly calculated, recorded and paid to participants on a biweekly basis. All workers’ compensation, payroll fees and related costs will be properly administered and paid through the program, at no cost to the employer. All youth will have access to a minimum one hundred (100) hours of employment. Wherever possible, additional hours will be made available through non-City grant programs to extend the employment opportunity.
Youth Highly Impacted: According to experts worldwide, the COVID-19 pandemic effected a major institution shaping young people’s lives and early pathways, the job market. The Economic Policy Institute stated that young people, 16-24, face high unemployment and uncertainty because of the pandemic. Approving the Professional Services Agreement can provide guardrails for young people who loss their jobs or are now underemployed because of COVID-19’s impact on the economy. The Scope of Services outlines a program for young people with paid work experience supported by career guidance and skills development.
IMPACT ON CITY RESOURCES
Per Council Direction, $1,000,000 was allocated from ARPA funds for a Job Training Program. As part of Mid-Year Budget recommendations, City Council approved the appropriation of $525,000 for this program as it would be funded from the first traunch. The additional $475,000 will be funded out of the 2nd traunch and will be included in the budget process for Fiscal Year 2022-23. As part of this motion, staff is recommending approval of a Supplemental Appropriation from the unreserved, unencumbered fund balance in Fund 087-American Rescue Plan Act in the amount of $25,000 to complete funding of the agreement.
ATTACHMENTS
1. Professional Service Agreement for Youth Jobs Program