REPORT TO COUNCIL
SUBJECT
Title
Approve NOVA as Adult and Dislocated Worker Career Services Provider at Sunnyvale Job Center and Operator for NOVA Workforce Development Area
Report
BACKGROUND
The federal Workforce Innovation and Opportunity Act (WIOA), as stipulated in State Workforce Services Directive WSD22-13, requires that a local board or administrative entity apply to serve as an Adult and Dislocated Worker Career Services Provider at an America’s Job Center of California (AJCC) location and as an AJCC Operator for the local workforce area. These roles each represent distinct functions.
The roles and responsibilities of the AJCC Career Services Provider are to directly provide basic career services to job seekers that include intake, orientation, assessments and employment services; individualized career services including case management and individual employment plans; and managing the day-to-day procedures of the AJCC job center. A local board or administrative entity (NOVA Workforce Services Department, hereinafter referred to as “NOVA”) may provide these services itself with the approval of the Workforce Board (NOVAworks Workforce Board, hereinafter referred to as “NOVA Workforce Board”), Chief Elected Official (Sunnyvale City Council) and the Governor. Competitive procurement of this service is not required. In 2017 and 2021, the Council approved NOVA’s applications to serve as the Career Services Provider for the NOVA Job Center in Sunnyvale at its February 28, 2017 (RTC No.17-0042) and February 23, 2021 (RTC No. 21-0291) meetings, which were later approved by the State. In 2025, State Directive WSD22-13 requires that local boards or administrative entities reapply to serve as a Career Services Provider.
The roles and responsibilities of the AJCC Operator include coordinating service delivery of required AJCC partners and service providers; and ensuring the implementation of partner responsibilities and contributions agreed upon in the WIOA Memorandum of Understanding. A local board or administrative entity (NOVA) may serve as the AJCC Operator with the approval of the Workforce Board (NOVA Workforce Board), Chief Elected Official (Sunnyvale City Council) and the Governor. While the intent of the State and WIOA is to competitively procure the AJCC Operator, the Uniform Guidance allows for instances in which alternative procurement methods may be permitted that include sole source procurement. In 2018 and 2021, the Council approved NOVA’s applications to serve as the AJCC Operator for the NOVA workforce development area through sole source procurement at its June 26, 2018 (RTC No. 18-0500) and February 23, 2021 (RTC No. 21-0291) meetings, which were later approved by the State. In 2025, State Directive WSD22-13 requires that organizations, who were approved to be an AJCC Operator through sole source procurement, reapply to serve as the AJCC Operator.
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
NOVA as Adult and Dislocated Worker Career Services Provider
In response to State Directive WSD22-13, NOVA seeks to reapply to continue to serve as the AJCC Adult and Dislocated Worker Career Services Provider at the NOVA Job Center in Sunnyvale (Attachment 1). It intends to continue to contract out career services in San Mateo County through a competitive procurement process.
NOVA seeks to reapply to be the Career Services Provider based on the following factors:
1) Demonstrated Experience: NOVA has forty years of demonstrated experience directly providing the highest quality and most beneficial mix of adult and dislocated worker career services at the NOVA Job Center in Sunnyvale.
2) Effectiveness and Accountability: NOVA has exhibited exemplary success in its performance outcomes. It has routinely received high scores in its customer satisfaction surveys in the services it provides to customers and in the unique approach it deploys to deliver these services.
3) Efficiencies: NOVA utilizes the integrated service delivery model that enables NOVA to serve more customers. This differs from other workforce areas and providers that apply the case management model and serve fewer customers. The result is NOVA’s cost per customer is lower than other workforce areas and the State. In addition, funding is prudently expended.
4) Administrative and Fiscal Oversight: The Council serves as the Chief Elected Official for the NOVA consortium, with the City serving as the administrative and fiscal agent for NOVA. The City’s fiscal structure has received awards and is highly regarded throughout the state and nation. The NOVA Workforce Board, distinguished by the State as a high performing board, performs effective monitoring and evaluation in partnership with the City. Conflict of interest codes, policies and necessary firewalls ensure the highest degree of exceptional oversight, with extensive internal checks and balances.
5) City Policy: The NOVA Job Center in Sunnyvale is staffed by City employees. Council Policy Manual 7.3.6 established guidelines for considering alternative methods for service delivery according to superior service value and defines superior service value as better service at lower cost; better service at equal cost; or equal service at lower cost. In order to factor in the intangible benefit of providing services by City staff, as well as an added cost of delivering services by contract (contract administration), the cost or service differential for an outsider bidder should exceed 10% in order to meet the test of superior value. Given NOVA’s superior services provided at a lower cost than comparable entities, the prudent decision is for NOVA to continue to directly provide adult and dislocated worker career services at the NOVA Job Center in Sunnyvale.
NOVA as the AJCC Operator
In response to State Directive WSD22-13, NOVA seeks to reapply to continue to serve as the AJCC Operator for the NOVA workforce development area through sole source procurement (Attachment 2). NOVA proposes to coordinate service-delivery activities of AJCC partners by convening quarterly meetings to ensure effective services to shared customers. In addition, it will build relationships and serve as a communication hub for information sharing to promote cohesiveness and continuity.
NOVA seeks to reapply to be the Operator based on the following factors:
1) Insufficient Qualified Sources: The region has a high cost of living with relatively low unemployment and poverty resulting in lower WIOA formula funding allocations during most years. Given this situation, the pool of potential organizations interested in bidding on the small amount of funding available for the AJCC Operator (about $15,000) would be relatively small and insufficient for a competitive procurement. In addition, organizations often have difficulty understanding the Workforce Innovation and Opportunity Act (WIOA) mandates that govern the local workforce system. This further discourages potential bidders and would require a steep learning curve to effectively perform responsibilities resulting in unnecessary delays. This was demonstrated during a previous competitive procurement process for the AJCC Operator services that had to be repeated twice. There are insufficient qualified sources to provide AJCC Operator activities and, as such, NOVA is reapplying to continue to serve as the AJCC Operator through sole source procurement.
2) City Policy: Council Policy Manual 7.3.6, as described above, established guidelines for considering alternative methods for service delivery according to superior service value. Given NOVA’s superior services provided at a lower cost than comparable entities, the prudent decision is for NOVA to continue to directly serve as the AJCC Operator for the NOVA workforce development area.
3) Performance: As described above, NOVA has forty years of demonstrated experience and expertise providing quality services. It also works closely with and encourages active participation of all sectors in the community in the provision of such services. As the AJCC Operator for the past several years, NOVA successfully worked with AJCC partners in identifying an effective referral process. It provided an invaluable forum for quarterly stakeholders’ meetings as a vehicle for education, best practices, opportunities for collaboration on recruitment events and other ventures, and to resolve issues of shared concern. NOVA also launched several initiatives beneficial to partners including Human Resource Hotline for employers, Community Hub for young adults, and Career Maps industry reports.
NOVA is the only provider who can effectively serve as the AJCC Operator. It possesses a thorough knowledge of WIOA and the local workforce system and effective relationships with the AJCC partner community. Letters of support from partner agencies are included in the application. It is accountable to its customers, partners, NOVA Workforce Board, City, and funders. Additionally, NOVA has an established administrative structure to ensure internal controls and standards, enforcement of conflict-of-interest codes, and necessary firewalls to maintain integrity in providing this service.
At its January 22, 2025, meeting, the NOVA Workforce Board approved NOVA’s applications to serve as the AJCC Adult and Dislocated Worker Career Services Provider for the NOVA Job Center in Sunnyvale and AJCC Operator for the NOVA workforce development area.
FISCAL IMPACT
No fiscal impact.
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 NOVA as the Adult and Dislocated Worker Career Services Provider at the Sunnyvale Job Center and Operator for the NOVA workforce development area.
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
___ 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
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Eileen Stanly, Administrative Analyst, NOVA Workforce Services
Reviewed by: Marléna Sessions, Director, NOVA Workforce Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Application Request for Approval AJCC Career Services Provider
2. Application Request for Approval AJCC Operator
3. Meeting Minutes Jan. 22 2025