July 2, 2024
Library and Community Services
Employment & Training
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
LaShonda White, Deputy City Manager -
Community Services
Tamara Walker, Deputy Director of
Community Services, Employment and Training Division
Subject:
Contract Amendment with Oakland Private Industry
Council to Serve as a Contracting/Vendor Pay Agent for
the RichmondWORKS Program
FINANCIAL IMPACT: The Employment and Training Division has budgeted for the additional training funds in its Operating Expenses Budget to be allocated for Individual Training Accounts (ITAs). All expenditures associated with this program are grant-funded (see the Fiscal Impact section of the staff report for details).
PREVIOUS COUNCIL
ACTION:
December 19, 2023; November 10, 2020; May 18, 2021;
March 1, 2022
STATEMENT OF THE
ISSUE:
Employment and Training is seeking to amend the
contract with the Oakland Private Industry Council
(OPIC) as the Contracting/Vendor Pay Agent and
Employer of Record to support additional training
opportunities for the RichmondWORKS, Workforce
Innovation and Opportunity Act (WIOA), and other grant- funded programs.
AGENDA
REPORT
July 2, 2024
RECOMMENDED ACTION:
APPROVE an amended contract with the Oakland
Private Industry Council to provide additional services as the Contracting/Vendor Pay Agent for RichmondWORKS,
Workforce Innovation and Opportunity Act (WIOA), and
other grant-funded program participants, increasing the contract payment limit by $280,397, for a total not to
exceed amount of $860,306.38, with the term ending
June 30, 2025 – Community Services Department,
Employment and Training (LaShonda White 510-620-
6828/Tamara Walker 510-307-8006).
DISCUSSION:
The Individual Training Account (ITA) and On-the-Job (OJT) process developed by the Oakland Private Industry Council (OPIC) allows the Employment & Training Division to cover the cost of classroom and skills training for Richmond residents in an effective manner with minimal delays. OPIC, a non-profit 501(c)(3) organization, has served as the fiscal agent for the four Workforce Development Boards (WDB) in the East Bay region since 1998. The coordination and consolidation of the processing of Individual Training Accounts for the WDB East Bay regional consortium serves as a statewide model for efficiency.
On December 19, 2023, the Rich mond City Council authorized a contract between the Employment and Training Department and OPIC, in an amount not to exceed $579, 909.38, to serve as contracting/pay agent through June 30, 2025 (Attachment 1). The specific services provided are:
1. Management of the Employment Training Provider List (ETPL).
2. Contracting and Paying for Individual Training Account (ITA) vendors who provide training to program participants.
3. Contracting and Pay Agent for On -the-Job Training (OJT) activities with the employers who provide OJT positions for Workforce Innovation and Opportunity Act (WIOA) participants.
4. Contracting for other goods and services as directed by and on behalf of RWDB.
E&T wants to amend the current contract with OPIC to provide additional services by increasing the contract by $280,397 for a total not to exceed amount of $860,306.38 (Attachment 2). The additional contract amount is allocated for Individual Training Accounts (ITAs) for dislocated workers and youth, ages 18 -24, who are interested in occupational training to obtain high growth, high wage job s. The additional funds will allow E&T to serve an additional 37 people at $5,000 - $7,500 each utilizing ITA funds.
The activities and services OPIC provided under this contract, are part of the administration and program operations implemented by RichmondWORKS within the approved Annual Budget for Department Operations, to provide WIOA clients with ITAs, OJTs, and Customized Training, including systems support.
July 2, 2024
Per WIOA guidelines, each local workforce development area within the state is required to use 30% of its annual allocation to provide individual training and work- based learning opportunities for the WIOA program participants, which may be spent over 2 years. In addition, special grants awarded to RichmondWORKS require the use of ITAs and OJTs to support participants’ journey to self-sufficiency.
FISCAL IMPACT:
Most of the additional funds, $254,907, will directly support participants through ITAs. The Oakland Private Industry Council will be compensated an additional $25,549 which is 10% (a rate approved by the U.S. Department of Labor) of the total contract amount for their administrative, contracting/vendor pay agent, and employer of record services.
All expenditures associated with this program are grant-funded from the following account allocations and will be reimbursed to the City, quarterly.
Oakland Private Industry Council Budget
Funding Source Org Object Project Amount Use
WIOA Dislocated 12572541 400813 27G06 $54,907.00 ITA
12573241 400843 27G06 $5,490.00 ADMIN FEES
CAREER 12572341 400813 22903 $100,000.00 ITA
12573241 400843 22903 $10,000.00 ADMIN FEES
ARPA 12572541 400813 $100,000.00 ITA
12573241 400843 $10,000.00 ADMIN FEES
TOTAL $280,397.00
DOCUMENTS ATTACHED:
Attachment 1 – Contract between the City of Richmond and OPIC FY 23 - 25 Attachment 2 – Amended Contract