CED Committee
May 28, 2024
AGENDA REPORT
TO: Jestin D. Johnson FROM: Ashleigh Kanat
City Administrator Director, Economic &
Workforce Development
SUBJECT: FY 2024-25 OWDB Budget &
Contracts
DATE: May 10, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt A Resolution Authorizing The Following Actions:
1. Adopting The Fiscal Year 2024-25 Workforce Development Budget;
2. Accepting And Appropriating Workforce Innovation And Opportunity (WIOA) Title I Formula Funds For Adult, Dislocated Worker, Youth And Rapid Response Services In The Estimated Amount Of Three Million Six Hundred Sixty-Nine Thousand Nine Hundred Fifty-One Dollars ($3,669,951);
3. Accepting And Appropriating Two Million Three Hundred Twenty-Seven Thousand Four Hundred Thirty Dollars ($2,327,430) From California Volunteers To Increase Youth And Young Adult Employment And Develop Pathways Into Careers In Public Service;
4. Appropriating One Million Nine Hundred Eighty-Four Thousand Two Hundred Eighty-Six Dollars ($1,984,286) From The General Fund And Other Funds For Workforce Development;
5. Authorizing The Carryover Of Unspent Fiscal Year 2023-2024 WIOA And Other Funds In The Estimated Amount Of Five Hundred Thirty-Three Thousand Four Hundred Seventy-Five Dollars ($533,475) In Fiscal Year 2024-2025;
6. Authorizing Grant Agreements With Service Providers Competitively Selected To Provide Comprehensive, Specialized, Business Engagement And Youth Services From WIOA Title I Formula Funds And Other Funds For Fiscal Year 2024-2025; And
7. Authorizing the City Administrator to Apply For, Accept, And Appropriate Grants and Contributions for Workforce Development Services Beyond The WIOA Title I Formula Funding And Other Budgeted Funding Sources Up To Two Hundred Fifty Thousand Dollars ($250,000) Per Instance With The Approval Of The Oakland Workforce Development Board
Jestin Johnson (May 17, 2024 10:18 PDT)
May 17, 2024
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 2
CED Committee
May 28, 2024
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the Fiscal Year (FY) 2024-25 Workforce Development budget and amendments to grant agreements with service providers as detailed in Attachment A. This budget incorporates federal funding through the Workforce for Innovation and Opportunity Act (WIOA), State of California support, City of Oakland contributions, and miscellaneous grants to support critical programs aimed at assisting residents in accessing resources and acquiring the necessary skills and for sustainable careers. On May 2, 2024, the Oakland Workforce Development Board (OWDB) adopted the FY 2024-25 Workforce Development budget and amendments at its Regular Board meeting.
The proposed amendments to service provider grant agreements are a continuation of a system-wide Request for Proposals (RFP) process, which competitively procured contracts for workforce development services over a three-year period from July 1, 2022, through June 30, 2025. This is the last year of the 3-year procurement cycle. Additionally, staff recommends carrying over any FY 2023-24 contracted funds not fully utilized by service providers by June 30, 2024, into FY 2024-25 to maximize available resources for continued programming.
From time to time, the OWDB will come across grant opportunities to diversify funding to support workforce development initiatives. By authorizing the City Administrator to apply for, accept, and appropriate grants and contributions, each capped at $250,000 per instance pending approval from the OWDB, the City is better positioned to enhance its limited capacity to swiftly and proactively adapt to emerging challenges and opportunities in the community.
BACKGROUND / LEGISLATIVE HISTORY
The Oakland Workforce Development Board (OWDB) is a cornerstone of Oakland's efforts to foster economic growth, promote social equity, and empower its diverse community. Comprised of representatives from government, business, labor, education, and community-based organizations, the OWDB plays a pivotal role in shaping and implementing strategies to address the evolving needs of job seekers and employers alike.
Aligned with its overarching mission, the OWDB's investments are strategically directed towards providing adults and youth with the essential skills, knowledge, and resources required to thrive in today's competitive job market. By providing targeted support and opportunities, the OWDB seeks to unlock the full potential of individuals, particularly those facing barriers to employment, and pave the way for their success in rewarding careers.
Moreover, the OWDB recognizes the critical importance of cultivating a skilled workforce to drive innovation and sustain business growth within Oakland's dynamic economy. Through proactive engagement with employers and industry stakeholders, the OWDB works to understand and address the evolving demands of key sectors, ensuring alignment between workforce development efforts and industry needs.
Central to its approach is the establishment of a cohesive network of service providers and partners within the workforce system. By fostering collaboration and coordination among Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 3
CED Committee
May 28, 2024
stakeholders, the OWDB seeks to streamline access to career pathways and support services, enabling residents to secure family-sustaining jobs in high-growth industries.
In pursuit of these goals, the OWDB remains committed to promoting equity, diversity, and inclusion in all aspects of its work. By championing equitable access to opportunities and resources, the OWDB aims to create a more inclusive economy where every resident has the chance to thrive and contribute to Oakland's continued prosperity.
As Oakland continues to navigate the complexities of a rapidly evolving economy, the OWDB stands as a steadfast advocate for workforce development solutions that promote economic resilience, social mobility, and shared prosperity. With a focus on collaboration, innovation, and empowerment, the OWDB remains dedicated to building a brighter future for all residents.
ANALYSIS AND POLICY ALTERNATIVES
Adoption of the proposed resolution advances the Citywide priority of housing, cultural and economic security by continuing the critical work of the OWDB and workforce system partners.
The OWDB’s budgetary framework reflects a strategic investment in workforce development initiatives aimed at enhancing the employability of Oakland residents and meeting the evolving needs of the local labor market. By leveraging diverse funding sources and implementing targeted programs, the OWDB remains committed to fostering economic growth, promoting social equity, and building a thriving workforce ecosystem in Oakland.
FUNDING SOURCES
The OWDB budget operates with funding from various sources to drive comprehensive workforce development activities. These funding sources include federal allocations through the WIOA, state grants, support from the City's General Fund, and contributions from private businesses and philanthropic organizations.
• E stimated Carry Forwards from FY 2023-24 -$533,475
Estimated carry forward balances are reallocated into the FY 2024-25 Board budget and include any unobligated and de-obligated funds and salary savings from vacant City staff positions.
• Estimated FY 2024-25 WIOA - $3,669,951
The Board’s WIOA Title I Formula revenues consist of four separate funding streams which include:
o Adult Program - Serves individuals 18 and older by providing them with job search assistance and training opportunities and to help meet employer workforce needs.
o Dislocated Worker Program - Designed to help workers get back to work as quickly as possible and overcome barriers to employment. When individuals become dislocated workers as a result of job loss, mass layoffs, global trade dynamics, or transitions in economic sectors, the Dislocated Worker program provides services to assist them in re-entering the workforce. o Youth Program - Comprehensive youth employment program serving eligible youth, ages 14-24, who face barriers to education, training, and employment.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 4
CED Committee
May 28, 2024
o Rapid Response Program – Provides strategies and activities necessary to plan for and respond to announcements of a business closure, layoff, or mass job dislocations due to natural or other disasters, and to deliver services to enable dislocated workers to transition to new employment as quickly as possible.
As of this writing, the State of California Employment Development Department (EDD) has not yet released its planning budget estimates for the FY 2024-25 WIOA Adult, Dislocated Worker, Youth and Rapid Response programs. Therefore, for planning purposes, the FY 2023-24 allocations are used as baseline. Funding will be budgeted in the Workforce Investment Act Fund (2195), Workforce Development Organization (85311), in a Project to be determined (TBD).
• California Volunteers – $2,327,430
The City was awarded a second round of funding from Office of the Governor’s California Volunteers from May 1, 2024 through December 1, 2025. These funds are to support year-round youth and young adult employment programs that promote climate resilience and improve neighborhood conditions. Program participants will have the opportunity for meaningful, long-term employment, either within the City or with our network of neighborhood partner organizations competitively selected through an RFP process. Funds for this program will be budgeted in State of California Other Fund (2159), Workforce Development Organization (85311), Oakland Forward Project (1006529).
• City General Fund - $794,721
A total of $794,721 has been allocated in the FY 2023-25 Biennial Budget for the Board consideration. This amount reflects $100,000 to support workforce development services and sector initiatives. . Funds will be budgeted in General Purpose Fund (1010), Workforce Development Organization (85311), Workforce Development Services Project (1006028). $220,000 has been allocated to Causa Justa: Just Cause for the City’s Day Laborer program and the funding will be budgeted in General Purpose Fund (1010), Workforce Development Organization (85311), Day Laborers Project (1000167).
The remaining $474,721 in general funds will support City operations. • Measure HH - $577,162
Oakland youth ages 16 to 24. The City will enter into grant agreements with recommended service providers previously approved by the Board. Funds will be budgeted in Measure HH (SSBDT) Fund (1030), Workforce Development Organization (85311), Measure HH Healthy Kids Program Project (1003817 ).
• Army Base Billboard - $537,403
Oakland Army Base billboard revenue is budgeted for oversight and support of the West Oakland Job Resource Center (WOJRC). The FY 2024-25 budget appropriates $345,615 directly to the WOJRC to support the ongoing operations of the Center that focus on helping local residents learn about and prepare for careers in the building trades and to fulfill job creation, hiring targets and workforce development polices of the City. The remaining $191,788 will support City personnel. Funds will be budgeted in OBRA Leasing & Utility Fund (5671), Workforce Development Organization (85311), West Oakland Resource Center
Project (1000036).
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 5
CED Committee
May 28, 2024
• Miscellaneous Donations - $75,000
Miscellaneous private grant donations are allocated to service providers to increase summer opportunities for youth for summer 2024. Funds will be budgeted in Miscellaneous Trust Fund (7999), Workforce Development Org (85311), Mayor Summer Youth Project (1000500).
EXPENDITURE CATEGORIES:
There are two main expenditure categories in the Board budget:
Service Provider Contracts: The City and the Board contract with experienced organizations to provide workforce development services to Oakland. The overall goals of these workforce organizations are to help Oakland residents develop the skills to attain the knowledge, and access the resources needed to thrive in a career; and provide employers with the skilled workers needed to sustain and competitively grow their businesses. These funds include participant training, wages, and support to enable an individual to participate in workforce development activities.
City Operations: The Board and City workforce staff, as the system administrator, are responsible under WIOA Section 107(d) for a range of functions as listed below, including directing funds to be used for industry or sector partnerships (Sec. 134(c)(1)(A)(v)). Below are some of the primary Board and City staff functions:
• Development of the local plan
• Workforce research and regional labor market analysis • Convening, brokering, leveraging workforce system partners • Employer engagement
• Career pathways development
• Identifying and promoting proven and promising best practices • Technology and data systems
• Program oversight, including oversight of more than a dozen service providers and contracts
• Negotiation of local performance
• Selection of one-stop operators, and providers through a competitive RFP process • Coordination with education partners
• Budget and administration
• Accessibility for individuals with disabilities
PROCUREMENT AND GRANT AWARDS
An RFP to procure contract service providers to provide citywide workforce development services for Fiscal Years (FYs) 2022-2025 was issued on March 11, 2022 by Economic and Workforce Development Department (EWDD) and Board. Through this procurement, the Board entered into grant agreements with local nonprofit organizations to provide workforce development services for recently displaced and long-term unemployed adults and low-income youth and young adults. This is the last year of the 3-year procurement cycle.
Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 6
CED Committee
May 28, 2024
Staff is recommending that allocations and service goals for WIOA service providers listed in (Attachment A) remain flat and that Board also authorize any carryover of unspent FY 2023- 2024 funds to contracted service providers in fiscal year 2024-2025.
APPLYING FOR, ACCEPTING AND APPROPRIATING GRANTS
From time to time the OWDB may apply for additional grants. To build capacity and diversify workforce funding sources, staff recommends that the OWDB be allowed to apply for and accept these funds up to $250,000 per grant without returning to council. This will allow the OWDB to respond more quickly to funding opportunities to support Oakland’s workforce needs and is consistent with prior year’s authorization granted by City Council.
FISCAL IMPACT
The OWDB proposed budget reflects fund allocations from various sources, including federal grants, state contributions, city appropriations, and philanthropic donations that underscores the financial commitment necessary to sustain and expand workforce development initiatives.
The estimated carry forwards from the fiscal year 2023-24, totaling $533,475, will be reallocated into the FY 2024-25 OWDB budget, augmenting available resources for ongoing programs and services. Additionally, the estimated WIOA (2195) funding of $3,669,951 for FY 2024-25 will support critical workforce programs aimed at assisting adults, dislocated workers, youth, and individuals affected by rapid economic changes.
Of particular significance is the $2,327,430 allocation from California Volunteers, earmarked for year-round youth and young adult employment programs. Failure to secure the contract for these funds before June 14, 2024, could result in a substantial loss of workforce services to Oakland residents, thereby impacting the city's economic vitality and social well-being.
Furthermore, allocations from the City's General Fund (1010), Measure HH (1030), revenue from the Oakland Army Base billboard in OBRA Leasing & Utility Fund (5671), and miscellaneous donations in Miscellaneous Trust Fund (7999) contribute to the overall fiscal sustainability of workforce development efforts. These funds support a range of activities, including youth employment programs, sector-specific training, and operational expenses for key resource centers.
PUBLIC OUTREACH / INTEREST
OWDB meetings are publicly noticed and there is active public participation in both committees and full OWDB meetings. Prior to issuing RFPs for developing the workforce system, the OWDB staff met with community stakeho lders to inform the policy principles and conceptual frameworks for service models. Contracted service providers were competitively procured through the FY 2022- 25 RFP process, described in File #: 22 -0516 and approved by
Resolution No.89309 C.M.S adopted on July 5, 2022.
COORDINATION
WIOA service providers were competitively procured through the FY 2022-25 RFP process supported by the Department of Workplace and Employment Standards. Additionally, Workforce Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 7
CED Committee
May 28, 2024
Development staff also worked closely with the City Attorney’s Office for counsel and advice on matters such as proper noticing, board process, and conflicts of interest. The Workforce Development is a division within EWDD.
SUSTAINABLE OPPORTUNITIES
Economic: Oakland’s Workforce Development system provides qualified workers, including youth, for Oakland businesses and prepares Oakland residents for gainful employment and career paths leading to family sustaining jobs.
Environmental: This report does not directly address environmental sustainability.
Race & Equity: Oakland’s Workforce Development system prioritizes services to targeted populations (African American and Latinx) and geographic areas of Oakland (East and West), that have the highest numbers of residents who face disproportionately high levels of unemployment. Per the 2020 OWDB Race and Equity Analysis, the Workforce Development division identified critical disparities in employment access in Oakland, specifically in “[t]he communities of East Oakland, Fruitvale, and West Oakland, where a high number of Black and Latinx residents live and are unemployed at higher rates than the general population...including the zip codes 94621, 94603, 94605, 94601,94607.”
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution Authorizing The Following Actions:
1. Adopting The Fiscal Year 2024-25 Workforce Development Budget;
2. Accepting And Appropriating Workforce Innovation And Opportunity (WIOA) Title I Formula Funds For Adult, Dislocated Worker, Youth And Rapid Response Services In The Estimated Amount Of Three Million Six Hundred Sixty-Nine Thousand Nine Hundred Fifty-One Dollars ($3,669,951);
3. Accepting And Appropriating Two Million Three Hundred Twenty-Seven Thousand Four Hundred Thirty Dollars ($2,327,430) From California Volunteers To Increase Youth And Young Adult Employment And Develop Pathways Into Careers In Public Service;
4. Appropriating One Million Nine Hundred Eighty-Four Thousand Two Hundred Eighty-Six Dollars ($1,984,286) From The General Fund And Other Funds For Workforce Development;
5. Authorizing The Carryover Of Unspent Fiscal Year 2023-2024 WIOA And Other Funds In The Estimated Amount Of Five Hundred Thirty-Three Thousand Four Hundred Seventy-Five Dollars ($533,475) In Fiscal Year 2024-2025;
6. Authorizing Grant Agreements With Service Providers Competitively Selected To Provide Comprehensive, Specialized, Business Engagement And Youth Services From WIOA Title I Formula Funds And Other Funds For Fiscal Year 2024-2025; And Jestin D. Johnson, City Administrator
Subject: FY 2024-25 OWDB Budget & Contracts
Date: May 10, 2024 Page 8
CED Committee
May 28, 2024
7. Authorizing the City Administrator to Apply For, Accept, And Appropriate Grants and Contributions for Workforce Development Services Beyond The WIOA Title I Formula Funding And Other Budgeted Funding Sources Up To Two Hundred Fifty Thousand Dollars ($250,000) Per Instance With The Approval Of The Oakland Workforce Development Board
For questions regarding this report, please contact Sofia Navarro, Executive Director, Oakland Workforce Development Board at (510) 238-3474.
Respectfully submitted,
Ashleigh Kanat
Ashleigh Kanat (May 14, 2024 17:25 PDT)
Ashleigh Kanat
Director, Economic & Workforce Development
Reviewed by:
Sofia Navarro, Executive Director, Workforce
Development
Prepared by:
Honorata Lindsay, ASM II
Workforce Development
Attachments (1):
A. FY 2024-25 OWDB Budget
CED Committee
May 28, 2024
ATTACHMENT A – FY 2024-25 OWDB BUDGET
A B C D E F G H I J K L M N
1 WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA)
Fund 2195 Fund 2159 Fund 1010 Fund 1030 Fund 5671 Fund 7999
2 3
Adult
Dislocated
Worker
Rapid
Response
Youth
WIOA Subtotal
CA Volunteers
General Fund
Measure
HH
Billboard
Misc
Donations
Other Revenue
Subtotal
GRAND TOTAL
4 ESTIMATED REVENUES
5 Estimated Carryover Revenue 184,961 156,354 192,160 533,475 0 533,475 6 Estimated FY 2024-2025 Revenue (Baseline) 1,224,338 1,030,362 245,751 1,169,500 3,669,951 2,327,430 794,721 577,162 537,403 75,000 4,311,716 7,981,667 7 TOTAL REVENUE 1,409,299 1,186,716 245,751 1,361,660 4,203,426 2,327,430 794,721 577,162 537,403 75,000 4,311,716 8,515,142 8 EXPENDITURES
9 SERVICE PROVIDER CONTRACTS
10 Workforce Development Services (TBD) 0 100,000 100,000 100,000 12 Black Cutural Zone Comm Dev Corp 71,420 71,420 0 71,420 13 Causa Justa::Just Cause 0 220,000 220,000 220,000
14 Civicorps 0 246,344 246,344 246,344
15 Genesys Works Bay Area 178,550 178,550 0 178,550
16 Lao Family Community Development, Inc. 153,741 147,941 249,970 551,652 250,000 125,000 375,000 926,652 17 Mandela Partners 135,000 135,000 0 135,000
20 Oakland Private Industry Council, Inc. 579,586 564,391 1,143,977 0 1,143,977 21 Oakland Public Works 0 284,000 284,000 284,000
22 Rising Sun Center for Opportunity 0 34,940 34,940 34,940 23 Safe Passages 0 223,539 223,539 223,539
24 Swords to Plowshares: Veterans Rights Org 114,410 110,157 224,567 0 224,567 25 Spanish Speaking Unity Council of Alameda Co, Inc. 153,741 147,941 249,970 551,652 250,000 250,000 801,652 26 Trybe Inc. 12,572 12,572 12,572
27 The Youth Employment Partnership Inc. 249,970 249,970 250,000 125,000 375,000 624,970 28 Youth Uprising 249,970 249,970 0 249,970
29 West Oakland Job Resource Center 0 345,615 345,615 345,615 30 EASTBAY Works (OPIC) 7,830 7,827 7,823 23,480 0 23,480 31 Professional Service Agreements 0 50,000 50,000 50,000 32 Service Provider Subtotal 1,144,308 978,257 0 1,257,673 3,380,238 1,588,822 320,000 262,572 345,615 0 2,517,009 5,897,247 33 CITY OPERATIONS
34 EWD Admin/Finance 20,046 35,974 24,668 80,688 0 80,688 35 Internal Service Fees 0 153,482 153,482 153,482
36 Program Staff 244,945 172,485 245,751 79,319 742,500 275,272 321,239 248,582 191,788 1,036,881 1,779,381 37 O&M 0 50,000 50,000 50,000
38 City Operations Subtotal 264,991 208,459 245,751 103,987 823,188 325,272 474,721 248,582 191,788 0 1,240,363 2,063,551 39 TOTAL EXPENDITURES 1,409,299 1,186,716 245,751 1,361,660 4,203,426 1,914,094 794,721 511,154 537,403 0 3,757,372 7,960,798 40 Available Balance 0 0 0 0 0 413,336 0 66,008 0 75,000 554,344 554,344