Title
Report regarding a resolution approving the Third Amendment of a contract with JobTrain for workforce development support services, and a resolution approving the Third Amendment of a contract with Renaissance Entrepreneurship Center for small business and entrepreneurship support services, both offered at the Economic Advancement Center in South San Francisco. (Ernesto Lucero, Economic Development Manager)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt two separate resolutions:
1. Authorizing the City Manager to execute the Third Amendment to a professional services agreement with JobTrain for $515,387 for workforce development support services at the Economic Advancement Center in South San Francisco; and
2. Authorizing the City Manager to execute the Third Amendment to a professional services agreement with Renaissance Entrepreneurship Center for $573,327 for small business and entrepreneurship support services at the Economic Advancement Center South San Francisco.
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BACKGROUND
Since April 2021, economic mobility services have been approved and supported by City Council under contracts with JobTrain on workforce development programs and Renaissance Entrepreneurship Center (Renaissance) on small business and entrepreneurship support programs. Programs are provided at the Economic Advancement Center (EAC), or Centro de Avance Económico in South San Francisco.
The economic effects of COVID-19 largely demonstrated the need and demand to help unemployed and underemployed residents in South San Francisco, as well as targeted support for small businesses. City Council studied the concept of economic mobility in early 2021 and ways that South San Francisco could support its most vulnerable residents and small businesses. San Mateo County also recognized the need to increase support services in North San Mateo County, and with the support of federal and state funding, the scope of services offered has now expanded to the Cities of Brisbane, Daly City, Pacifica, San Bruno, Millbrae, and the Town of Colma.
In addition to English, services are now available in Spanish, Tagalog, and Mandarin, as most services are requested by non-English speakers.
The City went through a procurement process in February 2021, issuing a Request for Qualifications (RFQ) for each separate program. JobTrain was selected to support and develop a new workforce development program, and Renaissance was selected to support and develop a new small business and entrepreneurship program.
Services for both initially launched virtually on July 1, 2021. JobTrain quickly began to offer job training and rapid employment placement services to unemployed and underemployed South San Francisco residents. Renaissance began offering existing small businesses and emerging entrepreneurs with a variety of technical assistance and resource support. The EAC opened its doors to the public on February 28, 2022 at 366 Grand Avenue, where both organizations are currently located.
JobTrain - Workforce Development Support Services
JobTrain is a 501(c)3 nonprofit educational and training institution accredited by the Western Association of Schools and Colleges. Each of JobTrain’s programs combines vocational training, academics, and essential skills development, preparing students to turn their lives around-from unemployment and poverty to success and self-sufficiency. Strong partnerships with employers ensure that students receive the training they need for employment so that businesses can find motivated workers who are well trained for their jobs. Since 1965, JobTrain has been adapting to meet current employment needs. Since its inception, more than 190,000 low-income individuals and their families have benefited from JobTrain’s programs.
One-on-one assistance and support in addition to programs offered include:
• Occupational/Work Readiness Assessments: JobTrain’s assessment establishes a threshold for essential skills and personal readiness for clients ready to move into competitive employment. The assessments discover how clients would react in a given scenario, what they think is the most appropriate response to a particular set of circumstances, and their own on-the-job ethics and priorities. This assessment is a part of the clients Individual Service Plan (ISP).
• Career Coaching: JobTrain offers specialized career coach/advisors that work with clients to understand their career aspirations and advises them on the education and experience needed to attain that career.
• Work Readiness Workshops/Activities (group and 1:1): Work readiness skills are a set of skills and behaviors that are necessary for any job. These activities and workshops help their clients learn how to interact with supervisors and co-workers.
• Job Development: JobTrain Career Developers help students gain job skills during and after training, including providing resume assistance, mock interview skills and essential skills (soft skills) trainings. Career Developers also follow-up with graduates after graduation, to provide additional supports and guidance of career advancement.
• Job Placement: JobTrain Career Developers help individuals find a career path that has opportunity for advancement. For graduates of the full-time Career Trainings, clients are placed in jobs in Healthcare, Culinary Arts, IT Support, and the Building Trades. For clients who need rapid employment, JobTrain staff connect provide individuals with job readiness services and place in employment matched to their skills.
• Career Training: JobTrain full-time (11 weeks) Career Trainings are: Building Maintenance; Certified Nursing Assistant; Culinary Arts; IT Service & Support Training; Medical Assistant; and Project Build: Carpenters Pre-Apprenticeship. Essential Skills are embedded in Career Trainings, on topics such as goal setting, conflict resolution, and how to work in teams.
• Skills assessment, evaluation, and support in upgrading basic job skills: Every new client is provided an orientation to the programs and services offered at the Economic Advancement Center.
• Orientation and Case Management access to Career EDGE: Case managers orientation to their programs and services include information to the online platform of services. Clients are given a tutorial on the classes and workshops that are conducted by JobTrain staff-workshops e.g., interview preparation, zoom online interviewing etiquette, how to respond to difficult questions (incarceration, gaps in employment history).
The total number of clients that have been served is 176. The total number of services provided by JobTrain is 617. And the number of job placements since a client has received services is 70, with an average hourly wage of $21.40.
JobTrain plans to achieve the goals listed below in the Discussion section regarding the Third Amendment to the contract which include serving 20% additional clients compared to the prior fiscal year, providing three cohorts of North County Medical Assistant Training for up to 60 students, launching the North County Career Center Employer Advisory Committee, as well as engaging additional partners at the EAC for training and supportive services. JobTrain will also plan to leverage additional resources, beyond the proposed contract amendment to include three Cohorts up to 60 total students for Evening North County Medical Assistant Training, and 20 Career Training Education (CTE) slots at JobTrain’s Menlo Park Training Facility, providing an additional $610,000 of services to North San Mateo County.
Renaissance Entrepreneurship Center - Small Business Support Services
Renaissance offers support services for existing small businesses and emerging entrepreneurs in need of assistance navigating the many hurdles of starting a new business or sustaining or growing existing small businesses. Its mission is to help small businesses in the pre-launch, launch and expansion stages to start, rebuild, sustain, and scale up business operations. From idea feasibility to business planning, launch and growth, accessing capital, networks and resources, and the ongoing assistance that growing businesses require, Renaissance has been a successful asset in South San Francisco.
Renaissance is a nonprofit organization dedicated to transforming lives and communities through entrepreneurship. Services include comprehensive small business training classes and workshops, technology training, legal and tax assistance, consulting, business incubation, and access to the capital, resources, markets, and networks all entrepreneurs need to succeed.
Renaissance was launched in San Francisco in 1985 with small business planning classes and has grown into a regional organization serving over 2,500 Bay Area residents each year through our sites in South San Francisco serving Northern San Mateo County, East Palo Alto serving San Mateo and Santa Clara Counties, Bayview Hunters Point and South of Market in San Francisco, and Richmond serving Contra Costa and Alameda Counties. To date, Renaissance has served over 38,000 Bay Area residents who have started and grown more than 13,500 businesses.
Throughout its service territory in the Bay Area, in 2022 alone, Renaissance served 2,559 aspiring and existing entrepreneurs, helping them to launch, rebuild, and grow sustainable businesses. Renaissance began to move back to in-person classes, finding significant client interest in coming together. Financial technical assistance and access to capital services were expanded, helping clients to secure over $8.2M in capital from government programs, corporations, nonprofit lenders, and private sources.
In the coming year, Renaissance plans to serve 200 individual emerging and established business owners at the EAC, supporting them in launching, reestablishing, or stabilizing their operations and increasing their revenues. Since Renaissance began working in South San Francisco on July 1, 2021 over 327 individuals and business owners in North San Mateo County have been served, most of whom are lower-income, people of color and women. This investment generates approximately 2.8 jobs per business including the business owner and is a win for individuals, families, and the regional economy as a whole.
These services will target businesses at various levels of operation: pre-launch, launch and expansion, as well as rebuilding, reimagining, or scaling operations. Emerging and established small business owners will gain access to training classes and workshops, technology instruction, legal and tax assistance, one-on-one consulting, access to capital, resources, and networking opportunities.
Renaissance targets small businesses with 10 or fewer full-time employees or less than $1M in revenues. All businesses served will have a primary office, storefront, or business space located in North San Mateo County or ownership by a North San Mateo County resident. Many of these businesses are “mom and pop shops” that have brought ingenuity and vitality to our communities, but suffered from the inequities caused by effects from the pandemic.
In addition to JobTrain and Renaissance, it became evident that linkages to other service providers and nonprofits supporting economic mobility in South San Francisco could benefit from the EAC space. Additional organizations that have a presence at the EAC now include the YMCA, Leadership Council of San Mateo, Legal Aid Society of San Mateo, El Concilio, as well as the the City’s Promotores Program. Programs and linkages are currently seeing a demand for housing resources, legal assistance, and food programs.
DISCUSSION
Third Amendment to contract with JobTrain
City Council approved the initial one-year contract with JobTrain on April 13, 2021 in the amount of $403,916. On April 14, 2022 City Council approved the First Amendment to the contract with JobTrain in the amount of $469,200 for an additional year of services. Due to some cost savings within the contract under the First Amendment, a Second Amendment was administratively approved since the cost of services remained under the contract total amount, extending the length of services to end on June 30, 2023.
The Third Amendment would provide an additional one-year of services matching to the City fiscal year of July 1, 2023 to June 30, 2024 in the amount of $515,387. Due to the success of attracting grant funds, the project will be fully funded by federal and state grant funds supporting workforce development in North San Mateo County. The agencies administering the funds include the U.S. Department of Labor (DOL) and the California Governor’s Office of Business and Economic Development (GO-Biz).
Third Amendment to contract with Renaissance
City Council approved the initial one-year contract with Renaissance on April 13, 2021 in the amount of $467,000. On April 14, 2022 City Council approved the First Amendment to the contract with Renaissance in the amount of $568,128 for an additional year of services. Due to some cost savings within the contract under the First Amendment, a Second Amendment was administratively approved since the cost of services remained under the contract total amount, extending the length of services to end on June 30, 2023.
The Third Amendment would provide an additional one-year of services matching to the City’s fiscal year of July 1, 2023 to June 30, 2024 in the amount of $573,327. Due to the success of attracting federal and state grant funds, the project will continue to be fully funded by federal and state grant funds supporting small business and entrepreneurship support services in North San Mateo County. The agencies administering the funds include the U.S. Economic Development Administration (EDA) and the California Governor’s Office of Business and Economic Development (GO-Biz).
JobTrain and Renaissance will each provide a brief presentation on their respective organizations in South San Francisco during the report.
FISCAL IMPACT
The projected cost for the efforts described above are fully supported by City Council’s original $2 million General Fund appropriation for the EAC, as well as grant funds already accepted and appropriated by Council from the U.S. Department of Labor, the U.S. Economic Development Administration, and the California Governor’s Office of Business and Economic Development.
RELATIONSHIP TO THE STATEGIC PLAN
This report meets the City’s strategic planning goal #5, Economic Vitality.
CONCLUSION
This report provides the Council with two separate resolutions for approval that would take action to separately approve amendments to the professional service contracts with JobTrain and Renaissance Entrepreneurship Center. Staff recommends that the City Council adopt two separate resolutions:
1. Authorizing the City Manager to execute the Third Amendment to a professional services agreement with JobTrain for $515,387 for workforce development support services at the Economic Advancement Center in South San Francisco; and
2. Authorizing the City Manager to execute the Third Amendment to a professional services agreement with Renaissance Entrepreneurship Center for $573,327 for small business and entrepreneurship support services at the Economic Advancement Center South San Francisco.