City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01619 9/6/2022 Consent Item 8.
Contract: Approval of First Amendment to Restated Memorandum of Understanding (MOU) between the City of Sacramento and the Sacramento Employment and Training Agency (SETA)
File ID: 2022-01619
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute the first amendment to the Restated Memorandum of Understanding (MOU) between the City of Sacramento and the Sacramento Employment and Training Agency (SETA) in the amount of $262,001 for a new total not-to-exceed $512,000.
Contact: Hector Barron, Assistant City Manager, (916) 808-2669, [email protected], Office of the City Manager
Presenter: None.
Attachments:
1-Description/Analysis
2-First Amendment to Revised and Restated SETA MOU
Description/Analysis
Issue Detail: On August 21, 2018, City Council approved the Local Hire and Community Workforce Training Program (Program) for citywide capital improvement projects where the construction cost is $1,000,000 or more. At the same time, the City also entered into a Community Workforce Training Agreement (CWTA) with the local trade unions. The agreement is to remain in full force and effect for a period of five (5) years. The purpose of the Program and CWTA is to facilitate employment of residents from the City of Sacramento, as well as the County of Sacramento and nine other nearby counties, on the City’s capital improvement projects. The objective is to develop increased numbers of local skilled construction workers and provide employment opportunities for emancipated youth, women, former offenders, veterans, persons receiving public assistance, youth interns, and residents of targeted zip code areas.
On March 1, 2019, the City and SETA entered into an MOU, pursuant to which SETA agreed to provide outreach services, make program eligibility determinations, and prepare program reports on City of Sacramento Page 1 of 3
File ID: 2022-01619 9/6/2022 Consent Item 8.
the City’s progress toward achieving the Program goals.SETA coordinates with the City, contractors and subcontractors, and union halls to determine which workers are residents of the local area and/or are priority apprentices under this program. They also determine if the workers fall within the specified employment opportunity categories of workers listed above. There is a need to continue to provide these services through August 21, 2023.
Policy Considerations: CWTAs standardize the work rules applicable to a project and to labor relations between contractors and their workers and the trade unions. The CWTA is a means to achieving local hiring goals in provision of good jobs for Sacramento residents and other regional workers. In order to evaluate the program, information needs to be collected and tracked to determine progress in meeting the program goals. This agreement with SETA will support the implementation of this program.
Economic Impacts: No direct impact for this agreement with SETA.
Environmental Considerations: This agreement is for administrative services not deemed to be a “project” in accordance with Section 15378 of the California Environmental Quality Act guidelines.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Execution of the first amendment to the Restated Memorandum of Understanding between the City of Sacramento and the Sacramento Employment and Training Agency (SETA) extends the current agreement through August 21, 2023, the end of the term of the current CWTA. The amendment allows SETA to continue to make eligibility determinations regarding whether workers are residents of the Local Area and/or qualify as Priority Apprentices, provide ongoing outreach, recruitment and referral of potential local laborers and apprentices to qualified union training programs, and provide monthly, bi-annual, and annual reports describing progress toward program goals over the reporting period. Reports are shared with city departments, contractors, and the Sacramento Sacramento-Sierra Building Traces Trades Council (SSBCTC) on a monthly basis and are essential for monitoring progress.
Financial Considerations: Costs associated with this MOU will be funded from the budget of the individual capital improvement projects where the construction value is $1,000,000 or more and subject to the CWTA.
Local Business Enterprise (LBE): Not applicable.
Background: On August 21, 2018, the City established a Local Hire and Community Workforce Training Program (Program) and entered into a Community Workforce Training Agreement (CWTA) with the local trade unions. The Program applies to the City’s capital improvement projects (CIPs) where the construction cost is $1,000,000 or more. The overall goal is to facilitate the employment of residents from the local area on the City’s CIPs and to increase the number of local skilled City of Sacramento Page 2 of 3
File ID: 2022-01619 9/6/2022 Consent Item 8.
construction workers available to meet the requirements of the regional construction economy.
Contractors and subcontractors hired to construct a covered CIP are required to exert their utmost efforts to utilize Local Area workers, Priority Apprentices and student Interns. Specifically, some primary goals for each project include:
1) 50% of the total workforce hours shall be worked by residents of the Local Area. Where the Local Area is defined as the City of Sacramento (Tier 1), County of Sacramento (Tier 2), and additional nine counties (Tier 3 - Yolo, Placer, El Dorado, Amador, Sutter, Yuba, Nevada, Sierra, and San Joaquin);
2) 20% of the total apprentice hours per covered Project, on a craft-by-craft basis, shall be worked by Priority Apprentices. Where a Priority Apprentice is defined as an apprentice who resides in one of the defined economically disadvantages zip codes (95652, 95660, 95811, 95814, 95815, 95817, 95820, 95823, 95824, 95832, 95838); and 3) Good faith effort to provide paid internship opportunities to eligible students.
Effective March 1, 2019, the City and SETA entered into a Memorandum of Understanding (MOU), pursuant to which SETA agreed to provide outreach services, make program eligibility determinations, and prepare program reports on the City’s progress toward achieving the program goals. Subsequently on December 31, 2019, the City and SETA amended the original MOU to extend the time of performance and increase the not-to-exceed amount. Effective July 1, 2020, the parties entered into a Revised and Restated MOU to further extend the time of performance, clarify the scope of work, and to revise the not-to-exceed amount. The parties would now like to further extend the time of performance through the end of the term of the CWTA, August 21, 2023, clarify the scope of work, and revise the not-to-exceed amount.
City staff is planning to bring an item to Council in late 2022/early 2023 to provide an update on the Program ongoing efforts, outcomes and lessons learned. It will also include a possible framework, if appropriate, for an extension of the CWTA beyond August 21, 2023.
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