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HomeMy WebLinkAbout21A - LOCAL BOARD CERTIFICATIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 7, 2015 TITLE: SUBMISSION OF LOCAL AREA APPLICATION FOR INITIAL DESIGNATION AND LOCAL BOARD CERTIFICATION {STRATEGIC PLAN NO. 2,4) / ItITY MANAG RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Approve submittal of an application for Initial Local Area Designation and Initial Local Board Certification for Program Year 2015 -2017 under the Workforce Innovation Opportunity Act and authorize the Mayor to sign as the Chief Local Elected Official. WORKFORCE INVESTMENT BOARD RECOMMENDATION At its regular meeting on March 19, 2015, by a vote of 15:0 (Didion, Elliot, Everett, Fischer, Gonzalez, Jimenez -Hamy, Knitter, Korthuis, Martinez, Rutledge, and Wadhera absent absent), the Workforce Investment Board recommended to: Approve the application for Initial Local Area Designation and Initial Local Board Certification for Program Year 2015 -2017 and authorize the Chair to sign. Forward the Initial Local Area Designation and Initial Local Board Certification for Program Year 2015 -2017 to City Council for approval and authorize signature of the Mayor. DISCUSSION On July 22, 2014, the Workforce Innovation Opportunity Act (WIOA), the first legislative reform of the public workforce system in 15 years, was enacted. This landmark legislation was designed to strengthen and improve the nations' public workforce system by helping workers acquire the skills employers need and to provide businesses a skilled workforce necessary to compete in a global economy. For the next two complete program years following enactment, WIOA legislation directs the State of California Governor to approve requests for initial designation of any area that was designated under the Workforce Investment Act (WIA) as long as the local area has performed successfully and has maintained fiscal integrity. After the initial two year designation period, continued 21A-1 Submission of Local Area Application For Initial Designation and Local Board Certification April 7, 2015 Page 2 designation will be contingent on the development and submission of a regional workforce development plan addressing regional economic priorities and industry clusters as well as continued meeting local performance measures. The City of Santa Ana ( "City ") has met the conditions outlined in the Initial Designation of Local Workforce Areas and Initial Certification of Local Boards application (Exhibit 1). Provided the application is approved by Council at the April 7, 2015 City Council meeting, signatures from the Workforce Investment Chair and the Mayor will be obtained and the fully signed application will be submitted to the State by the June 30, 2015 deadline. Submitting the fully signed application by the State's deadline will prevent the disruption of workforce programs and services while transitioning to full implementation of WIOA, Notification of approval or denial of the application will be approved, the initial designation will be effective from Jul y denied, the City may contest the decision through an appeal STRATEGIC PLAN ALIGNMENT sent to the City by May 10, 2015. If 1, 2015 through June 30, 2017. If process. Approval of this item supports the City's efforts to meet Goal #2 (Youth, Education, Recreation), Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT There is no fiscal impact associated with this action. WL G(�/1�..� /( Kelly Re d Executh !rector Community Development Agency KR/DS /If /sb Exhibits: 1. Application for Initial Local Workforce Area and Initial Certification of Local Boards PY 2015 -16 2. Workforce Services Directive WSD 14 -10 21A-2 Existing Local Area Application for Initial Local Area Designation Program Years 2015 -17 and Initial Local Board Certification Program Year 2015 -16 Local Workforce Investment Area SANTA ANA Page 1 of 8 F.�i iB Existing Application for Initial and Initial Local Local Area Local Area Designation Board Certification This application will serve as your request for Local Workforce Development Area (local area) initial designation for Program Years (PYs) 2015 -17 and Local Workforce Development Board (local board) initial certification for PY 2015 -16 under the Workforce Innovation and Opportunity Act (WIOA). If the California Workforce Investment Board determines the application is incomplete, it will either be returned or held until the necessary documentation is submitted. Please contact your Regional Advisor for technical assistance or questions related to completing and submitting this application. City of Santa Ana Name of Local Area 1000 E. Santa Ana Blvd., Suite 200 Mailing Address Santa Ana, CA 92701 City, State Zip Date of Submission Contact Person Contact Person's Phone Number Page 2 of 8 21A-4 Local Area Levels of Performance Instructions: Enter your local area's negotiated levels of performance and actual levels of performance for PYs 2012 -13 and 2013 -14. Performance Table Name of Local Area: City of Santa Ana Common Measure Negotiated PY 2012 -13 Actual PY 2012 -13 Negotiated PY 2013 -14 Actual PY 2013 -14 Adult Entered Employment Rate 61.1% 72.0% 64.0% 77.6% Employment Retention Rate 75.5% 79.9% 82.0% 78.9% Average Earnings $11,800 $10,811 $12,000 $12,164 Dislocated Worker Entered Employment Rate 58.9% 60.2% 65.0% 70.8% Employment Retention Rate 83.0% 91.1% 85.0% 85.5% Average Earnings $14,000 $15,166 $14,750 $14,376 Youth {ages 14-2ir Placement in Employment or Education 72% 82.4% 74.0% 72.0% Attainment of a Degree or Certificate 60% 86.1% 65.0% 86.0% Literacy and Numeracy Gains 54% 73.3% 67.0% 83.1% *Note: For PY 2012 -13, each local area's youth performance goals were the same as the State level goals. Page 3 of 8 21A-5 Local Board Membership Current Local Board Membership Provide a list of individuals currently appointed to the local board and their respective membership category (e.g., business, local education entity, labor organization, community based organization, etc.) in the following chart (Workforce Investment Act [WIA] Section 117). Or, attach a roster of the current local board which identifies each member's respective membership category. Name Title Membership Category Caleb Everett CEO Private Sector Bob Fischer President, Owner Private Sector Marjorie Knitter President Private Sector Patrick Korthuis Owner Private Sector Greg Lewis Partner Private Sector Lee McMurtray VP Global Community Banking Private Sector Steve Pwinica General Manager Private Sector Stacey Sanchez Exec. Director Private Sector Andy Whadera President Private Sector Dave Elliott CEO Private Sector Bea Gonzalez Store Manager Private Sector Darren Rutledge General Manager Private Sector Ignacio Alegre Rehab Supervisor Department of Rehabilitation Gilbert Davila Organizing Rep Labor John Didion Exec. Vice Chancellor Carl Perkins, Applied Tec. ED Act Ana Jimenez -Hami Executive Director CBO - Disabilities Brent Beasley Business Manager Labor Carlos de la Riva One Stop Director WIA Title I; HUD Willia Edmonds Job Developer CBO — Disabilities, Training and Employ. Erlinda Martinez President Education, Adult Ed., WIA Title II Clarence Ray Executive Director CDBG — Employ. And Training Bob Tucker Labor Relations Rep Labor Rob Claudio Deputy Division Manager Wagner Peyser, TAA, Veterans, YEOP Lee de Leon CEO CBO Nathan Nishimoto Director Family Self Suffic.Div TANF; Programs under Sec 403(a)(5) Robert Ruiz Secretary Treasurer Labor Plan for WIOA Local Board Compliance Identify the actions the local chief elected official (CEO) will take in order to ensure WIOA local board membership compliance by June 30, 2016. Santa Ana WIB is currently discussing changes to its board structure, membership composition and committee structure. Recommendations are anticipated to be forwarded to the chief elected official and city council for consideration and adoption in June 2015. Page 4 of 8 21A-6 Sustained Fiscal Integrity The local area hereby certifies that it has not been found in violation of one or more of the following during PYs 2012 -13 or 2013 -14: • Final determination of significant finding(s) from audits, evaluations, or other reviews conducted by State or local governmental agencies or the Department of Labor identifying issues of fiscal integrity or misexpended funds due to the willful disregard or failure to comply with any WIA requirement, such as failure to grant priority of service or verify participant eligibility; or • Gross negligence - defined as a conscious and voluntary disregard of the need to use reasonable care, which is likely to cause foreseeable grave injury or harm to persons, property, or both; or • Failure to observe accepted standards of administration. Local areas must have adhered to the applicable uniform administrative requirements set forth in Title 29 Code of Federal Regulations (CFR) Parts 95 and 97, appropriate Office of Management and Budget circulars or rules, WIA regulations, and State guidance. Highlights of these responsibilities include: o Timely reporting of WIA participant and expenditure data o Timely completion and submission of the required annual single audit o Have not been placed on cash hold for longer than 30 days (In alignment with WIOA Section 106[e][2]) Page 5 of 8 21A-7 Local Area Assurances Through PY 2016 -17, the local area assures that: A. It will comply with the applicable uniform administrative requirements, cost principles, and audit requirements included in the appropriate circulars or rules of the Office of Management and Budget (WIOA Section 184[a][2] and [3]). Highlights of this assurance include: • The local area's procurement procedures will avoid acquisition of unnecessary or duplicative items, software, and subscriptions (in alignment with Title 2 CFR Section 200.318). • The local area will maintain and provide accounting and program records, including supporting source documentation, to auditors at all levels, as permitted by law (Title 2 CFR Section 200.508). Note that failure to comply with the audit requirements specified in Title 2 CFR Part 200 Subpart F will subject the local area to potential cash hold (Title 2 CFR Section 200.338). B. All financial reporting will be done in compliance with federal and State regulations and guidance. Highlights of this assurance include: • Reporting will be done in compliance with Workforce Services Directive WSD12 -3, Quarterly and Monthly Financial Reporting Requirements. • All close out reports will comply with the policies and procedures listed in Workforce Services Directive WSD09 -12, WIA Closeout Handbook. Note that failure to comply with financial reporting requirements will subject the local area to potential cash hold. (Title 2 CFR Section 200.338) C. Funds will be spent in accordance with federal and State laws, regulations, and guidance. Highlights of this assurance include • The local area will meet the requirements of State Senate Bill 734, to spend a minimum of 25 percent of combined total of adult and dislocated worker formula fund allocations on training services (California Unemployment Insurance Code Section, 14211). • The local area will not use funds to assist, promote, or deter union organizing (WIOASection 181[b][7]). Page 6 of 8 21A-8 D. The local board will select the America's Job Center of Californiasm (AJCC) Operator(s), with the agreement of the local CEO, through a competitive process such as a Request for Proposal (RFP), unless granted a waiver by the state (WIOA Section 121 [d][2][A] and 107[g][2]). E. The local board will collect, enter, and maintain data related to yarticipant enrollment, activities, and performance necessary to meet all CaIJOBSs reporting requirements and deadlines. F. The local board will comply with the nondiscrimination provisions of WIOA Section 188, including the collection of necessary data. G. It will comply with State Board policies and guidelines, legislative mandates and /or other special provisions as may be required under federal law or policy, including the WIOA or state legislation. H. Priority shall be given to veterans, recipients of public assistance, other low- income individuals, and individuals who are basic skills deficient for receipt of career and training services funded by WIOA Adult funding (WIOA Section 134[c][3][E] and Training and Employment Guidance Letter 10 -09). Page 7 of 8 21A-9 Application Signature Page Instructions: The local CEO and local board chair must sign and date this form. Include the original signatures in the application package. By signing the application below, the local CEO and local board chair request initial designation of the existing local area and initial certification of the existing local board. They certify that the local area has performed successfully and sustained fiscal integrity during PYs 2012 -13 and 2013 -14. Additionally, they agree to abide by the local area assurances included in this application. Local Workforce Investment Board Chair Signature Lee Mc Murtray Name Chair, Santa Ana WIB Title Date Page 8 of 8 21A -10 Local Chief Elected Official Signature Miguel Pulido Name Mayor, City of Santa Ana Title Date E ®Dl� Employment C/'+T C Department DIRGIj 1 I�G State o f California WORKFORCE SERVICES Number: WSD14 -10 Date: February 20, 2015 69:01:df:17276 TO: WORKFORCE DEVELOPMENT COMMUNITY SUBJECT: INITIAL LOCAL AREA DESIGNATION AND LOCAL BOARD CERTIFICATION UNDER WIOA EXECUTIVE SUMMARY Purpose This directive communicates policy and procedures regarding the initial designation of Local Workforce Development Areas (local areas) and the initial certification of Local Workforce Development Boards (local boards) under the Workforce Innovation and Opportunity Act (WIOA). Scope This directive applies to all current local areas interested in receiving designation and local board certification under the new WIOA. Effective Date This directive is effective on the date of its issuance. REFERENCES • WIOA (Public Law 113 -128) Sections 106 and 107 • Workforce Investment Act (WIA) Section 116 • Title 2 Code of Federal Regulations (CFR) Chapter I, Chapter ll, Part 200, et al., "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ;" Final Rule (Uniform Guidance) • Title 2 CFR Part 2900 et al., "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Uniform Guidance) • Title 29 CFR Part 95: "Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non - Profit Organizations" The EDD is an equal opportunity employer /program. Auxiliary aids and services are available upon request to individuals with disabilities. .ca.gov Page 1 of 72 L "I IBI� "I • Title 29 CFR Part 97: "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" • Title 20 CFR Part 652 et. al: WIA; Final Rules • California Unemployment Insurance Code Section 14202(c) • Workforce Services Directive WSD12 -14, Subject: Program Year (PY) 2013 -17 Local Plans and Board Certification (Biennial and High Performing) (May 22, 2013) • WIA Directive WIAD06 -10, Subject: Local Area Nonperformance Policy (November 14, 2006) • WIA Directive WIAD02 -6, Subject: Subsequent Designation of Temporary and State Board Recommended Local Areas (September 18, 2002) • Workforce Services Information Notice WSIN12 -62, Subject: Late Monthly, Quarterly, Closeout, Audit and Participant Reports (May 23, 2013) STATE - IMPOSED REQUIREMENTS This directive contains some State - imposed requirements. These requirements are indicated by bold, italic type. FILING INSTRUCTIONS This directive finalizes Workforce Services Draft Directive WSDD -111, issued for comment on January 16, 2015. The Workforce Services Division received 61 comments during the draft comment period. These comments resulted in substantive changes to the directive which can be viewed as highlighted text. The highlighted text will remain on the Internet for 30 days from the issuance date. A summary of the comments is provided as Attachment 3. Retain this directive until further notice. BACKGROUND The WIOA Sections 106 and 107 provide the criteria for the initial designation of local areas and initial certification of local boards. Specifically, the WIOA Section 106 requires the Governor to designate local areas within the state, while Section 107 requires the Governor to certify one local board for each local area in the state. The California Workforce Investment Board (State Board) and the Employment Development Department (EDD), acting under the authority of the Governor, have established policies and procedures within this directive for the initial designation of local areas and the initial certification of local boards. These policies are intended to provide maximum flexibility to local areas so they may have sufficient time to prepare for and fully comply with the new WIOA requirements for subsequent local area designation and local board recertification. Page 2 of 7 21A -12 POLICY AND PROCEDURES Initial Local Area Designation As stated in WIOA Section 106, the Governor shall approve a request made for initial designation by any local area if the area did the following during PYs 2012 -13 and 2013 -14: • Was designated as a local area under WIA • Performed successfully • Sustained fiscal integrity Initial designation is effective July 1, 2015, through June 30, 2017. Local areas must apply for initial designation using the process included in this directive. Local areas that would like to modify their current geographical boundaries are eligible to apply under their new structure. Subsequent designation will be effective July 1, 2017. Local areas should be planning and preparing to meet the WIOA requirements for subsequent designation (i.e., perform successfully, sustain fiscal integrity, and in the case of a local area in a planning region, meet the regional planning requirements in WIOA Section 106[c][1]) during the initial designation period. Additionally, local areas should be preparing to meet the new Office of Management and Budget (OMB) and Department of Labor Uniform Guidance in 2 CFR 200 and 2 CFR 2900, which applies to new awards and additional funding (funding increments) to existing awards made after December 26, 2014 (i.e., the youth allocations beginning April 1, 2015, and all subsequent allocations). Local areas will be expected to develop new services, enter new collaborative partnerships, and /or create innovative workforce development strategies in alignment with WIOA during the initial designation period. The EDD and the State Board will provide technical assistance and guidance to local boards implementing WIOA activities and assess the extent to which local boards are designing a better system for customers. The assessment of local performance goals during the initial designation period will consider the extent to which local boards implement WIOA, and the potential impact on customer outcomes. During local area performance negotiations, the State Board will work with local boards who undertake activities that result in new services, partnerships, and /or service redesign or other WIOA transitional activities to ensure that local areas have the opportunity to set goals that enable them to perform successfully. Definitions Performed Successfully - a local area has achieved at least 80 percent of their local performance goal on each performance measure for PYs 2012 -13 and 2013 -14. (WIOA Section 106[e][1]). The state has provided the following flexibility to the definition of performed successfully, for purposes of initial local area designation only. This flexibility is in Page 3 of 7 21A -13 alignment with WIA Directive WIA06 -10 and the local board recertification criteria in Workforce Services Directive WSD12 -14. A local area is still eligible for initial designation if it achieved at least 80 percent of its local performance goal on seven or more of the performance measures during either PY 2012 -13 or PY 2013 -14. To remain eligible, the local area must attach a Corrective Action and Technical Assistance Plan (as required in WIA Directive WIAD06 -10) to its initial local area designation and initial local board certification application. A local area is ineligible for initial designation if it did not achieve at least 80 percent of its local performance goal on two or more performance measures during both PY 2012 -13 and 2013 -14. Sustained fiscal integrity — the local area has not been found in violation of one or more of the following during PYs 2012 -13 or 2013 -14: Final determination of significant finding(s) from audits, evaluations, or other reviews conducted by state or local governmental agencies or the Department of Labor identifying issues of fiscal integrity or misexpended funds due to the willful disregard or failure to comply with any WIA requirement, such as failure to grant priority of service or verify participant eligibility. Gross Negligence - defined as a conscious and voluntary disregard for the need to use reasonable care, which is likely to cause foreseeable grave injury or harm to persons, property, or both. Failure to observe accepted standards of administration. Local areas must have adhered to the applicable uniform administrative requirements set forth in Title 29 CFR Parts 95 and 97, appropriate Office of Management and Budget circulars or rules, WIA regulations, and state guidance. Highlights of these responsibilities include the following: • Timely reporting of WIA participant and expenditure data • Timely completion and submission of the required annual single audit • Have not been placed on cash hold for longer than 30 days (In alignment with WIOA Section 106[e][2]) Existing Local Area — A local area that was designated as a local area under WIA. Modified Local Area — A local area that is considering local area modification as part of its initial designation application. Examples include the following: two areas proposing to merge into a new combined single local area, various local areas that will be combined in a new single local area, or a local area that will be expanded to include part or parts of another current local area. Page 4 of 7 21A -14 Initial Local Area Designation Application Process The local Chief Elected Official (CEO) must follow the applicable process included below in order to request initial designation: • Existing Local Areas Complete the Existing Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 (Attachment 1). For local areas that are requesting local area modification as part of their initial designation, complete the Modified Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 (Attachment 2). The local CEO must submit the completed application to the State Board no later than 5:00 p.m., March 31, 2015, by one of the following methods: Mail California Workforce Investment Board P.O. Box 826880 Sacramento, CA 94280 -0001 Courier California Workforce Investment Board 800 Capitol Mall, Suite 1022 Sacramento CA 95814 Hand Deliver California Workforce Investment Board 800 Capitol Mall, Suite 1022 Sacramento CA 95814 Note the following: Some local areas may be unable to obtain local approval by the submission deadline (e.g., due to the scheduling of their respective board meetings). If so, the local area may submit an unsigned copy of the application with an explanation for the absent signature(s) and the date by which the signed original will be sent. The signed application must be submitted to the State Board by June 30, 2015. Failure to meet this deadline will result in the local area not receiving full initial designation status until a signed application is received. Assessment of the Application The State Board, in coordination with EDD, will verify the information provided in the application once a completed application is received. The State Board will consider all information provided, and determine whether to recommend approval or denial of the application at its spring 2015 meeting. The local CEO will be notified in writing by May 10, 2015, regarding the approval or denial of its initial designation application. If approved, the initial designation will be Page 5 of 7 21A -15 effective July 1, 2015, through June 30, 2017. If denied, the local CEO may contest the decision using the appeal process below. Appeal Process for Initial Designation A unit of local government (or combination of units) which has requested and been denied initial designation as a local area under WIOA may appeal the denial to the State Board, in accordance with WIOA Section 106. An entity which has been denied initial designation may appeal the decision and request a hearing. An appeal and request for hearing must be mailed to the State Board within 20 calendar days from the mailing date of the notice of denial of initial designation. The appeal must (1) be in writing and state the grounds for the appeal, and (2) state the reasons why the appellant should be initially designated. The State Board will contact the appellant to schedule a hearing date within five calendar days of the receipt of the appeal. The State Board will conduct the appeal hearing process and provide a written decision to the appellant no later than five calendar days after the hearing. Appeal of State Board Decision A unit or combination of units of general government whose appeal has not resulted in designation as a local area may also appeal the denial to the Department of Labor. (WIOA Section[b][5]) Initial Local Board Certification The WIOA Section 107 requires the Governor to certify one local board for each local area in the state. Local boards will be initially certified as follows, in order to provide local areas an opportunity to restructure their local boards in accordance with WIOA requirements: • Local Boards within Existing Local Areas Complete the Existing Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 (Attachment 1). Note that this application is used for both initial local area designation and initial local board certification. The existing local board will be automatically initially certified through PY 2015 -16 upon approval of initial designation of a local area. • Local Boards for Local Areas requesting designation as new. modified, Local Areas Complete the Modified Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 (Attachment 2). Note that this application is used for both initial local area designation and initial local board certification. Page 6 of 7 21A -16 The local CEO will be notified in writing by May 10, 2015, regarding the approval or denial of its initial local board certification. Initial local board certification will be effective July 1, 2015, through June 30, 2016. Local board recertification will be effective July 1, 2016. Therefore, local boards will be expected to complete all necessary tasks to meet the local board recertification requirements during the initial certification period. These recertification requirements will include the recertification criteria under WIOA (i.e., meet WIOA local board membership requirements, meet or exceed performance requirements, and sustain fiscal integrity), and an assessment of the local board's progress on key WIOA implementation tasks (e.g., new youth service requirements, procurement of one -stop operators unless granted an exemption under WIOA Section 107[g][2]). The assessment of local performance goals during the certification period will consider the extent to which local boards implement WIOA, and the potential impact on local performance levels. ACTION Please bring this directive to the attention of the local CEO, local board, and other relevant parties. INQUIRIES Contact your assigned Regional Advisor if you have questions concerning this directive. /S/ JOSE LUIS MARQUEZ, Chief Central Office Workforce Services Division Attachments are available on the Internet: 1. Existing Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 2. Modified Local Area - Application for Initial Local Area Designation and Initial Local Board Certification Program Year 2015 -16 3. Summary of Comments Page 7 of 7 21A -17 21A -18