EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: November 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Hansom Hom, Deputy Manager, Special Projects
Patrick Heisinger, Interim City Manager
Karen Camacho, Housing Project Manager
SUBJECT: Measure HH Pilot Workforce Development Program Approval of Agreements Recommendation
Adopt a resolution to:
1. Authorize the City Manager to enter into agreements with JobTrain for an amount not to exceed $238,485 ($102,682 for STEM Program and $135,803 for Building Trades Program) and StreetCode Academy for an amount not to exceed $236,700 for job training, job placement services, and support resources for East Palo Alto residents, in a form approved by the City Attorney; and
2. Authorize the City Manager to enter into an agreement with Live In Peace for an amount not to exceed $300,030 for job training, job placement services, and support resources for East Palo Alto residents, in a form approved by the City Attorney; and
3. Appropriate an amount not exceeding $775,215 from the Measure HH Fund to fund the Measure HH Pilot Workforce Development Program.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No.2: Enhance Economic Vitality
Priority No 3: Increase Organizational Effectiveness and Efficiency Background
Measure HH
On November 6, 2018, the residents of East Palo Alto voted in favor (79.58%) of enacting a parcel tax, titled Measure HH, on commercial office space of 25,000 square feet or more at the rate of $2.50 per square foot. Measure HH was estimated to raise $1,675,000 annually.
Ordinance No. 417-A (“Ordinance”), which governs the parcel tax, restricts its use to the following purposes:
o Creating and maintaining affordable and supportive housing programs, with an emphasis on creating net new housing;
o Creating and maintaining programs that facilitate access to job opportunities for East Palo Alto residents in the science, technology, engineering, and mathematics (STEM) sectors and building trades, and strengthen the City’s First Source Hiring (FSH) Program; and
o Paying for City staff and overhead costs to administer the ordinance and provide an annual report that complies with the requirements of Government Code section 50075.3.
Revenue generated from HH must be used in the following manner:
o A minimum of 35% of the revenue must be used exclusively for constructing new, affordable housing stock;
o A maximum of 15% of the revenue may be used for City staff and overhead costs to administer the Ordinance and to provide an annual report; and, o Remaining proceeds may be used for any of the other purposes specific in the Ordinance at the discretion of the City Council.
Brightline Defense Study
After Measure HH was passed by voters, City staff started to develop job training programs.
The City sought a consultant experienced in workforce development programs to identify strategies which would maximize the impact of Measure HH funding. On October 6, 2020, the City Council approved a $125,000 agreement with Brightline Defense Project (“Brightline”) to analyze and provide recommendations for implementing a Measure HH Workforce Development Program.
Brightline conducted considerable public outreach and discussions with the community and employers on the appropriate allocation of Measure HH funds to provide “upward mobility” for East Palo Alto residents through access to training for sustainable jobs in reliable employment fields. On July 20, 2021, City Council held a study session to receive a draft report from Brightline on the Measure HH program. The consensus was that efforts to date were appropriately targeted, and additional analysis should continue with an emphasis on preapprenticeship programs in the building trades and pilot programs focused on alternative career paths in the STEM fields.
On November 1, 2021, upon further analysis, the City Council held a subsequent study session to receive the final report from Brightline for the Measure HH Program regarding the most effective and practical job training initiatives for the targeted STEM and building trades fields. Their report is included with the November 1st staff report, with conclusions and recommendations summarized in Attachment C.
Request for Proposals
At the November 1, 2021, study session, the City Council considered staff’s recommendation for structuring and issuing a Request for Proposals (RFP) for the Measure HH program, and Councilmembers provided feedback to staff. A subsequent City Council meeting was held on December 21, 2021, where the City Council authorized issuing an RFP to attract qualified organizations to provide Measure HH job training services for East Palo Alto residents. The primary comments received from the City Council and community are listed below (refer to December 21st staff report for a further discussion).
o Require training programs that offer a living wage, as defined by the City. Staff has incorporated living wage requirements into the draft RFP. For the purposes of the City’s first Measure HH RFP, the City established the Living Wage for a single individual with no children in San Mateo County at a minimum of $28 per hour, or $58,240 annually.
o Make STEM focus as broad and deep as possible, beyond engineering and developer positions. Identify positions and salary expectations in all STEM fields.
Consider Life Sciences and Biotech positions.
o Encourage proposals for training programs that emphasize inclusivity and flexibility, e.g., programs designed for working adults transitioning into STEM or building trades.
o Look into CodePath and determine if it (or a similar program) would be a good fit for Measure HH.
o Integrate vocational English language learning programs to provide opportunities for English to Speaker of Other Languages (ESOL) learners to pursue Measure HH-related training opportunities.
o Organizations proposing a Building Trades program have at least 10 years of job training and job placement experience, and organizations proposing a STEM program have at least 5 years of such experience.
On January 7, 2022, staff issued an RFP that incorporated the extensive input from the City Council and community. The deadline for submitting proposals was April 29, 2022 (extended once). Proponents were requested to submit proposals for job training programs focused on one or both categories: 1) STEM: education and training programs to provide career pathways to living-wage jobs in the STEM sectors; and/or 2) Building Trades: pre-apprenticeship programs to provide an entry point to living-wage jobs in the construction sector.
As described in the RFP, qualified organizations were sought that could demonstrate the following strengths and capabilities:
o STEM and Building Trades. Organization has success in implementing regional education and training programs in these job sectors, knowledge of existing employment trends, and offers innovative and ambitious approaches to develop applied skills pathways and increase employment opportunities. o Living Wage. Organization targets training programs that will provide sustainable jobs with a living wage, which is a wage sufficient to cover basic needs (e.g., food, shelter, transportation, childcare, and healthcare. o Leverage Outside Resources. Organization is able to partner with other organizations and leverage outside funding with other training programs. o Strategically Inclusive Programs. Organization includes measures to reduce known barriers to program participation, such as current working hours, childcare, transportation, food, support classes, and delivery of program to nonEnglish speaking residents.
During the over 90-day RFP period, staff conducted extensive outreach to experienced regional and local workforce development organizations that provide job training, job placement, and support services in the STEM and Building Trades sectors. Brightline created an outreach list consisting of 248 workforce development organizations and local leaders such as technology and coding workforce development organizations like StreetCode and CodePath, career training providers like JobTrain and NOVA, small businesses training providers like Renaissance Entrepreneurship Center, disability service providers like Ability United and Let Them Hear, economic development organizations like Working Partnerships, and various labor groups. Three pre-bidder conferences were held during the RFP period and staff issued several addendums to clarify program objectives and expectations and to answer questions raised by potential proponents.
Analysis
Proposed Pilot Period
The RFP represents the launch of the Measure HH Pilot Workforce Development Program.
Staff recommends allocating $775,215 in Measure HH funds for an up to 18-month pilot period. This pilot approach will allow the opportunity to evaluate, learn, and refine the program requirements and metrics before awarding future Measure HH funds. It also aligns with the Brightline recommendations which suggest: 1) leveraging the expertise of well-established third-party organizations; 2) engaging in modest ventures at the outset, particularly initiatives and pilot programs aimed at STEM career path; and 3) exercising broad discretion in funding modest programs within the boundaries of Measure HH. Staff believes that exercising flexibility in selecting the programs and defining initial performance expectations during the pilot period offers a deliberative approach for implementing the program. At the conclusion of the pilot period, the City will be in a better position to evaluate the effectiveness of the program and reassess the goals, priorities, deliverables, and performance metrics for the next RFP.
Accountability will be important during the pilot period to achieve the learning objectives. It will be incumbent on organizations receiving Measure HH funds to maintain accurate records of their accomplishments and to monitor and report on the success rate of program enrollees in securing jobs that pay a living wage after completing their training or apprenticeship program.
For these reasons, staff will require quarterly reports on the progress of enrollees and a final performance report and evaluation at the end of the agreement period. Agreements will also require organizations to maintain contact with program enrollees for 36 months after completing their training course to follow their progress. Table A lists the recommended agreement terms, including reporting requirements and performance goals and metrics. The quarterly reports will be used as a tool for monitoring the progress of participants and evaluating the success of the programs.
Table A
Proposed Agreement Terms
Respondents to RFP
The City received four proposals in response to the RFP: two proposals in the STEM category and two proposals in the Building Trades category. The proposals address different career paths and, collectively, offer multiple training options for at least 80 East Palo Alto residents.
JobTrain submitted two proposals: a STEM training program for foundational and advance IT career development and Building Trades programs for training and pre-apprenticeships in building maintenance or carpentry. StreetCode Academy submitted STEM training programs for two coding course that will lead to 12-to 18-month apprenticeships. Live In Peace is offering several Building Trades programs that provide training and job placement to gain electrical and mechanical skills. In all cases, the programs are already established; the Measure HH funds would allow the organizations to expand their existing programs and accommodate more East Palo Alto residents.
While the number of proposals received were limited, the ones received were submitted by experienced community-based non-profit organizations. All three respondents have deep roots and a strong commitment to East Palo Alto and have demonstrated much success and community acceptance of their current programs. They are enthusiastic to partner with the City to launch the Pilot Measure HH Workforce Development Program.
After submittal of their initial proposals, staff engaged with the respondents in the following months to clarify aspects of their proposed programs and/or to modify their proposal to better align their programs with: 1) the recommendations in the Brightline report; 2) the Council’s direction provided at prior meetings; and 3) the desired qualifications outlined in the RFP. The three organizations were receptive to comments and suggestions. They worked with staff to amend their proposals to strengthen and ensure conformance with the program objectives and criteria for the use of Measure HH funds. They have also accepted the agreement terms in Table A, including monitoring program participants for 36 months after completion of training.
The four proposals meet a primary Measure HH goal to create and maintain programs that facilitate access to job opportunities for East Palo Alto residents in the STEM or Building Trades fields. Additionally, the organizations demonstrated their ability to satisfy two key objectives in the RFP: 1) leveraging outside resources with established partnerships and networks with other organizations and/or leveraging outside funding with other training programs; and 2) incorporating inclusive measures to reduce barriers to program participation, such as current working hours, childcare, transportation, food, support classes, and delivery of program to non-English speaking residents.
An item of discussion with the organizations pertained to the living wage. While all proposals are focusing on training or apprenticeship programs for jobs that can attain a living wage, the organizations have indicated that achieving a living wage at the start of employment will be challenging. However, they will strive to have program enrollees reach or exceed the living wage within 36 months of completing their training course.
Another item of discussion was the goal for an 85% course completion rate. While this performance metric would be uniformly applied to all programs, participant cohorts differ among programs. Some programs will have a greater challenge to reach this goal based on past results. Staff views this goal as aspirational, but it would affect payments since disbursement of funds would be linked to each participant enrolling in and completing a training course. Any unexpended funds, however, can be used for another enrollee; therefore, access to the total approved Measure HH allocation would still be available. The additional goal to have 75% of enrollees placed in a job within three months of completing their training program is acceptable to the organizations.
Table B summarizes the key elements of the four Measure HH proposals. A description follows for each proposal. Additionally, refer to Attachments D, E, F, and G for the RFP submittals (amended November 2022).
TABLE B
Measure HH Proposals
JobTrain
JobTrain is accredited by the Western Association of Schools and Colleges and approved by the Bureau of Private Post-Secondary Education. They “create opportunities for low-income youths and adults in East Palo Alto and throughout Silicon Valley to develop personal and career goals, and to achieve their aspirations by acquiring relevant skills and positive attitudes about themselves and their unique human potential.” JobTrain has been embedded in the East Palo Alto community for over 57 years. They have served nearly 200,000 low-income individuals throughout San Mateo and Santa Clara Counties. They offer seven full-time accredited career training programs, which prepare students for careers in high-demand industries including the Building Trades, Healthcare, Culinary Arts, and Technology Fields.
JobTrain submitted proposals for both the STEM and Building Trades categories that totals $238,485 in Measure HH funds:
STEM Programs (20 East Palo Alto residents):
o IT Service & Support Career Training Program: Foundational accredited course for careers in the technology field prepares graduates for entry level desktop support, help desk, and technical customer service roles. This certificate program introduces students to troubleshooting and customer service, networking, operating systems, system administration, automation, and security - all the fundamentals of IT support. (11-week course)
o Advanced IT Network Plus Career Training Program: Advanced IT Class course that prepares students for the industry recognized CompTIA Network Plus Certification Examination. (6-week course)
Building Trades Programs (20 East Palo Alto residents):
o Building Maintenance Program: Overview of basic skills for maintaining and managing the interior/exterior of housing communities in a first-rate condition.
Students are shown how to perform repairs and upgrades on painting, drywall installation, plumbing, electrical and finished work. (12-week course) o Project Build: Carpentry Pre-Apprenticeship Program: Introduction to construction and environmental training. Students are trained in basic general construction skills and gain a strong foundation in construction, green building, and forklift instruction. (11-week course)
While it varies by program, participants are generally required to have basic math and English skills and, for the STEM program, a high school diploma and basic computer literacy.
Participants will work with a Career Development Specialist and/or an IT Alumni Career Coach to create a job search and employment strategy and will benefit from the partnerships and connections that JobTrain has developed with multiple Bay Area employers. Support resources include access to a Skills Upgrade and Intensive Support Services Office and a Child Development Center. In addition to JobTrain’s own programs, participants will be able to benefit from the considerable leverage JobTrain has developed with outside resources.
English to Speakers of Other Languages (ESOL) classes are also available to participants if needed.
Outreach to East Palo Alto residents will be coordinated by JobTrain’s Outreach & Recruitment Manager. This outreach will include the active involvement of a Community Task Force and the East Palo Alto Street Outreach Team. All outreach material will be available in at least English and Spanish.
StreetCode Academy
StreetCode Academy (SCA) has offered free STEM classes to East Palo Alto residents since 2016. To date, they have enrolled 9,000 students in classes, and have successfully placed students in paid internships or apprenticeships. Through their partnerships with employers, they have continued to place students onto career-track positions. One-on-one mentors are provided to offer personal support to ensure that students are moving forward on their career plan.
SCA is requesting $236,700 in Measure HH funds to offer two training/apprenticeship programs for at least 20 East Palo Alto students:
o Creating Coding Careers leads candidates through a three-month preapprenticeship learning phase. Candidates then embark on a 12-month apprenticeship program working remotely for a premier software company. SCA will mentor and assist students to search for a permanent job. o Cañada College offers a Unity Developer Program that requires students to take a free (virtual) pre-apprenticeship summer course to qualify for their new 18-monthlong apprenticeship program in Unity Video Game Programming. SCA will mentor and assist students to search for a permanent job.
Basic requirement for enrollment in either program is a high school diploma. The two courses are free or a nominal cost for SCA. The Measure HH funds are proposed to cover 50% of the total program cost for each enrollee. Funds would primarily be used for support resources during an approximately two-year program period when enrollees are engaged in job training, apprenticeships, and job placement. Funds would cover the enrollee’s mentor, attendance at SCA life skills classes and workshops, and resources for childcare, food, transportation, technology devices, and internet access.
Outreach to East Palo Alto residents will include information mailers, social media, quarterly events, and posted signage. Limited English-speaking participants will be referred to language skills courses and tools.
Live In Peace
Live In Peace is a non-profit organization located in East Palo Alto. They offer multiple programs that provide young adults with academic skills, personal and professional development, artistic and cultural education, and access to a range of resources to help them overcome obstacles and achieve their life visions. Live In Peace’s programs target high school students or recent graduates. They are requesting Measure HH funds to expand their GAP Trades Program to serve East Palo Alto students. This program allows young adults to access and fill the ever-changing need for skilled trade workers. The objective is to create entryways, education, and apprenticeships in the fields of mechanical and electrical construction through partnerships with the broader community. They have partnered with several companies to operate their programs.
Measure HH funding for $300,030 would allow at least 20 high school students in East Palo Alto to enroll in one of the following GAP Trades Program training courses:
o Western Allied Mechanical is a 6-week program that introduces students to union job opportunities in mechanical construction (HVAV and plumbing). Led by construction professionals, students learn the basics of sheet metal, piping, and plumbing construction.
o Eden Area Regional Occupation Program (ROP) provides hands-on, industry specific skills that prepare students to enter the electrical field. Upon completion of the program, they attain their supervised hours to become a licensed electrician and have been able to obtain paid apprenticeships to accrue their hours. o Year Up provides students seeking a less traditional college/career path with an 11- month training and development program. The program leads to full-time job opportunities in IT support, computer network support, and data analytics. o Junior College Tracks is a 2 to 5-year program (depending on field) that steers students to trade unions while allowing them to complete an AA degree in their respective fields. A variety of support is provided to ensure that students are successful in their chosen trade.
Participation in the programs generally only require a high school diploma. In addition to covering the cost of the above programs, Live In Peace provides customized support services to meet the living needs of participants, including mentoring, skills training, computer equipment, transportation, and childcare. The level of assistance will vary based on the assessment of each student’s circumstances and typically extends well beyond the training program. For their proposal, they have defined three barrier levels for assistance: Level 1 - minimal (tutors, supplies), Level 2 - average/medium (Level 1 plus scholarships, stipends), and Level 3 - maximum (Levels 1 & 2 plus childcare, transportation).
Participants enter the program through referrals from partner organizations, through their High School SWAG Program, and through a proactive application intake/interview process.
Recommendation
Staff recommends appropriating up to $775,215 from the Measure HH Fund to fund a Measure HH Pilot Workforce Development Program and authorizing the City Manager to execute agreements with JobTrain, StreetCode Academy, and Live In Peace to provide job training, job placement services, and support resources for STEM and Building Trades workforce development for at least 80 East Palo Alto residents. The up to 18-month pilot period will allow for an evaluation of the program before allocating future funds for workforce development.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(3), and (b)(4).
Fiscal Impact
The current balance in the Measure HH Fund is approximately $4.7 million. Sufficient funds are available to fund the Pilot Workforce Development Program. It should be noted, however, that the fund is not intended to be used exclusively for creating job opportunities. A minimum of 35% of the fund must be reserved to support the production of affordable housing which would benefit from a build-up of the fund balance. Additionally, fluctuating financial and market conditions and will also affect the annual revenue generated. From an optimistic perspective, the fund has the potential of grow when future office development is constructed in the Ravenswood Business District.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Next Steps
If the Council authorizes the approval of the agreements and the appropriation of funds for the Measure HH Pilot Workforce Development Program, staff will work with the three organizations and the City Attorney’s Office to prepare and execute the agreements by January 2023. Funds would be distributed on a quarterly basis upon submittal of invoices with performance reports.
Disbursement of funds would be by participant: 50 percent when a participant enrolls in a training course, and the remaining 50 percent at completion of the course. It is expected that the first Measure HH payments could occur within three months of executing an agreement.
Attachments
A. Resolution (JobTrain and StreetCode Academy)
B. Resolution (Live In Peace)
C. Brightline Summary (November 21, 2021)
D. JobTrain (STEM) Proposal
E. JobTrain (Building Trades) Proposal
F. StreetCode Academy (STEM) Proposal
G. Live In Peace (STEM/Building Trades) Proposal