REPORT TO COUNCIL
SUBJECT
Title
Approve Fourth Amendment to the NOVAworks Manpower Contract for Work Experience Payroll Services.
Report
BACKGROUND
Young adults are the future of our workforce, but it is estimated that close to 12,000 young adults in the NOVAworks region are not connected to two of the more significant economic stabilizing influences: education and early work experience. Evidence suggests that providing young adults with paid work experience in combination with other supports can significantly improve a young person’s future career opportunities.
The mission of the NOVAworks young adult program is to deliver year-round programs offering a wide variety of career services, including paid work experience, to young adults throughout the NOVAworks region. The vision is to provide young adults with opportunities to develop the skills and networks needed for economic mobility by building upon and leveraging community and industry partners.
EXISTING POLICY
Council Policy 5.1.1: Socio-Economic - Goals and Policies: Education and Training Goal 5.1F: Provide job training and employment services, within constraints of operative Federal regulations and available Federal funding, to address the locally-determined employment and training needs of economically disadvantaged residents and others with special needs.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental, organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
In 2024, NOVAworks conducted a Request for Proposals (RFP) to solicit payroll service providers to provide payroll support services as the employer of record during a paid work experience (WEX) for NOVAworks participants. The scope anticipated 28 participants working approximately 400 hours each, with the vendor making payments for over 11,000 hours of work. Compensation and total number of hours worked may be increased for a specific participant if approved by NOVAworks. As a result of the RFP process, ManpowerGroup Public Sector Inc., a division of ManpowerGroup, was selected to provide WEX services beginning June 14, 2024 through June 13, 2025 with a funding limit up to $245,000.
Since the initial contract, dated June 21, 2024, there have been three amendments. The first amendment took effect on January 25, 2025 and allowed the wage to realign with minimum wage increases and allow the number of paid work experience hours to increase. There were no changes to the funding amount. The second amendment took effect on June 14, 2025, and extended the term of the agreement through September 30, 2025 with no change to the funding amount. The third amendment, which took effect on September 30, 2025, again extended the term of the agreement through December 31, 2025 with no change in the funding amount. These two latter amendments were essentially “no cost extensions.”
This proposed fourth amendment to the contract would extend the term of the agreement to December 31, 2026 and incorporate up to $300,000 in new funding for the work experience payroll services in the young adult program. Due to the uncertainty of federal funding and allocations received for the young adult program, NOVAworks is only able to commit to contracts on an annual basis. Under the established procurement conducted in 2024, the contract may be extended for up to three additional full years, dependent upon successful performance results and available funding.
FISCAL IMPACT
The source of funds for these services is Workforce Innovation and Opportunity Act (WIOA) funds. If WIOA funding is cut, program services would be proportionately reduced.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Approve Amendment to the NOVAworks Manpower Contract for Work Experience Payroll Services.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
__ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Tisha Jimenez, Management Analyst, NOVA Workforce Services
Reviewed by: Marléna Sessions, Director, NOVA Workforce Services
Approved by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Manpower Fourth Amendment No. 002-301-24