REPORT TO COUNCIL
SUBJECT
..title
Approve Contract Amendment to Biocom California Institute for Life Science Industry Workforce Services
..report
BACKGROUND
The life science industry is a major driver of innovation, economic development, and job creation for the San Francisco Bay Area. The sector includes biotechnology, biopharmaceuticals, surgical and medical instrument manufacturing, and medical laboratory services. The Bay Area is home to 3,741 life science establishments, 156,454 employed with an average annual wage per worker of $186,982, and $142.7 billion total economic output in 2023. The region is currently positioned as one of the most elite and active life science clusters in the world.
Over the past 12 months, the industry encountered great turbulence. It experienced both increased layoffs and a drive to find new talent channels to fuel future growth. NOVA received 39 Worker Adjustment and Retraining Notification (WARN) mass-layoff notices from life science companies affecting 2,622 workers. Moreover, more than half of the WARN notices occurred in the past six months.
In response, NOVA contracted with Biocom California Institute to launch an innovative program model. The contract totaled $245,000 for the period of June 28, 2023, through June 27, 2024. The program included enhancing business relationships and resources; increasing awareness of NOVA services with life science companies; upskilling NOVA customers; creating a talent pipeline between NOVA and the life science industry; and growing professional networks and mentorships through a one-of-a-kind fellowship program. The program successes included an inaugural Bay Area Life Science Career Exposition with 250 interested jobseekers in attendance; the first fellowship opportunity which launched with 20 participants; and presentations to numerous companies experiencing downsizing and layoffs. In addition, because of this partnership, NOVA has expanded its engagement with life science companies in the region.
Biocom California, founded in 1995, is a statewide life science membership association with over 1,700 members statewide, 600 members in the Bay Area. It represents the largest advocacy organization for the state’s life science sector. Biocom California Institute is a 501(c)(3) organization established by Biocom California. Its mission is to develop and promote a diverse skilled talent for the California life science industry. Recognizing the talent shortages in the industry, Biocom California Institute was uniquely positioned to design this innovative program. It was also the only known program of its kind in the NOVA region. In addition, the program aligned with NOVA's priorities of assisting disadvantaged workers access the life science economy, supporting laid-off workers transition to new employment, and engaging companies in skills-based hiring from nontraditional candidates.
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
Turmoil and churn in the life science industry is expected to continue in the coming year. At the same time, innovation is driving new opportunities that will require future talent development. To continue to support the life science industry and workforce, a contract amendment with Biocom California Institute is recommended to extend the term from July 31, 2024, through July 30, 2025, and to add an additional $150,000 to the agreement. In addition, increasing equitable access to employment in this high-wage industry will ensure a diverse workforce and business ecosystem. The industry offers a wide variety of jobs that require different skill levels and education. This will attract those with advanced education and those from nontraditional backgrounds who are newly entering the field.
This year’s program will capitalize on best practices learned this past year. It will also streamline and target specific services that provided the greatest impact. Services will include:
• Support life science companies adjust their workforce size, both during times of layoffs and growth. This will entail assisting NOVA with additional Rapid Response events for those life science companies who have filed WARN notices. It will also include presentations and materials from life science companies for NOVA customers interested in careers in the industry.
• Facilitate business and job seeker engagement in the life science industry through human resource conferences, webinars, and career fairs and workforce symposiums.
• Continue with the successful Career Exploration Fellowship that will attract and educate prospective new workers about opportunities in the industry.
The NOVAworks Workforce Board supports the continuation of this program through Biocom California Institute.
Staff proposes contracting with Biocom California Institute for up to $150,000 for the new term of the agreement from July 31, 2024, through July 30, 2025.
The draft amendment to this agreement between the City and Biocom California Institute is attached to this report (Attachment 1).
Pursuant to federal law (29 U.S.C. section 3122), the City Council is the “chief elected official”, and the “local grant recipient” and “fiscal agent” for NOVA and the Local Workforce Development Board. In filling these functions, City Council’s past practice for contracts exceeding $250,000 has been to approve the award of the contract and authorize the City Manager to execute the contract.
FISCAL IMPACT
The source of funds for these services is WIOA funds. As such, WIOA funds should sufficiently cover all anticipated obligations of day-to-day program operations. If WIOA funding is cut, then program services will 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 NOVA Workforce Services 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 the contract amendment for life science industry workforce development services and authorize the City Manager to execute an agreement with Biocom California Institute in an amount not-to-exceed $150,000, with the contract term starting July 31, 2024, and ending July 30, 2025.
..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 $250 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
A check or “Y” 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
___ General policy and legislative actions
Staff
Prepared by: Eileen Stanly, Administrative Analyst
Reviewed by: Marléna Sessions, Director, NOVA Workforce Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. Draft Amendment to Agreement with Biocom California Institute for life science industry workforce services