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Home My WebLink AboutItem 07 - Local Area Subsequent Designation and Local Board Recertification Program 2023-25 Community Development Agency www.santa-ana.org/community-development Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 20, 2023 TOPIC: Local Area Subsequent Designation and Local Board Recertification Program Year 2023-25 AGENDA TITLE Local Area Subsequent Designation and Local Board Recertification Program Year (PY) 2023-25 RECOMMENDED ACTION Authorize the Mayor to sign the Program Year (PY) 2023-25 Subsequent Local Area Designation and Local Board Recertification application and direct staff to submit to the California Workforce Development Board. DISCUSSION On May 31, 2023, at the Special Meeting of the Santa Ana Workforce Development Board Executive Committee, by a vote of 5:0, the Committee recommended that the City Council approve and authorize the Mayor to sign the PY 2023-25 Subsequent Local Area Designation and Local Board Recertification application and direct staff to submit to the California Workforce Development Board. The California Employment Development Department (EDD) released Directive WSD22-14, on May 2, 2023, establishing procedures regarding subsequent designation of Local Workforce Development Areas (Local Areas) and recertification of Local Workforce Development Board’s under the Workforce Innovation and Opportunity Act (WIOA). The subsequent designation and local board recertification is effective from July 1, 2023, through June 30, 2025. This recertification ensures the City’s continued receipt of approximately $2.5 million in WIOA funding and allows the City’s WORK Center to continue direct oversight and implementation of workforce training and employment services in the city. The WIOA grant primarily serves low income and/or long-term unemployed individuals, as well as assists businesses in their hiring and training needs. Acting under the authority of the Governor, the process for subsequent designation and recertification of Local Boards under WIOA, is overseen by the California Workforce Development Board (State Board). In accordance with WIOA Section 107(c)(2), the State Board will recommend recertification if a Local Board has met WIOA board Local Area Subsequent Designation and Local Board Recertification PY 2023-25 June 20, 2023 Page 2 3 5 2 9 membership requirements, met or exceeded performance accountability measures, and achieved sustained fiscal integrity. The completed Request for Subsequent Designation and Local Board Recertification requires signature of the Local Board chairperson and the local Chief Elected Official (Exhibit 1). FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Application Local Area Subsequent Designation and Board Recertification PY 23-25 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager · � EmploymentEDD Development Department � DIRECTIVE Date: May 2, 2023 Number: WSD22-14 LOCAL AREA SUBSEQUENT DESIGNATION AND LOCAL BOARD RECERTIFICATION PY 23-25 EXECUTIVE SUMMARY This policy provides guidance and establishes the procedures regarding subsequent designation of Local Workforce Development Areas (Local Area) and recertification of Local Workforce Development Boards (Local Board} under the Workforce Innovation and Opportunity Act (WIOA) and is effective on the date of issuance. This policy applies to all current Local Areas interested in receiving subsequent designation and all current Local Boards interested in recertification under WIOA. This policy contains some state-imposed requirements. All state-imposed requirements are indicated by bold, italic type. This Directive finalizes Workforce Services Draft Directive Local Area Subsequent Designation and Local Board Recertification PY 23-25 (WSDD-245), issued for comment on March 13, 2023. The Workforce Development Community submitted five comments during the draft comment period. A summary of comments, including all changes, is provided as Attachment 2. This policy supersedes Workforce Services Directive Local Area Subsequent Designation and Local Board Recertification (WSD20-06}, dated February 22, 2021. Retain this Directive until further notice. REFERENCES •WIOA (Public Law 113-128} Sections 106 and 107 •Title 2 Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) The EDD is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. Revised May 8, 2023 Page 1 of 5 DIC: 30 EXHIBIT 1 •Title 2 CFR Part 2900: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. [Department of Labor (DOL) Exceptions] •Training and Employment Guidance Letter (TEGL) 11-19, Ne gotiations and Sanctions Gu idance for the WIOA Core Programs (February 6, 2020) •California Unemployment Insurance Code (CUIC) Section 14202 •Workforce Services Directive WSD20-0 2, Calculating Local Area Performance and Nonp erformance (September 18, 2020) •WSD14-10, Initial Local Area Designation and Local Board Certification Under WIOA (February 20, 2015) BACKGROUND WIOA Sections 106 and 107 provide criteria for subsequent designation of Local Areas and recertification of Local Boards. Specifically, WIOA Section 106 requires the Governor to designate Local Areas within the state, and WIOA Section 107 requires the Governor to certify one Local Board for each Local Area. According to WIOA Section 106, a Local Area must have performed successfully, sustained fiscal integrity, and engaged in the regional planning process to receive subsequent designation. According to WIOA Section 107, a Local Board must have performed successfully, sustained fiscal integrity, and met membership requirements to receive recertification. The applications for the Local Area subsequent designation and Local Board recertification have been combined into one application. Approved applications will be effective July 1, 2023 -June 30, 2025. POLICY AND PROCEDURES The long-term economic impact of the COVID-19 pandemic and related statewide shutdowns has resulted in the need to provide ong oing state-imposed flexibility when establishing guidelines for this round of Local Area subsequent designation and Local Board recertification. As California continues to recover from the pandemic, the California Workforce Development Board (CWDB) is prioritizing ways to better align the workforce development system with industry and labor needs in order to address future skills gaps by investing in training that leads to meaningful employment. Definitions Membership-The Local Board is in compliance with the membership requirements outlined under WIOA Section 107(b). Page 2 of 5 EXHIBIT 1 Performed Successfully -The Local Area had an Individual Indicator Score of 50% or higher in Program Year (PY) 2020-21 or PY 2021-22, as described in WSD20-02, Calculating local Area Performance and Nonperformance (September 19,2020}, for the following primary indicators of performance: •Employment Rate 2nd Quarter After Exit •Median Earnings Note -Please report your "performance score" rather than the "adjusted level of performance". Sustained Fiscal Integrity -The Local Area certifies it has not been found in violation of one or more of the following during PY 20-21 or PY 21-22: •Final determination of significant finding(s) from audits, evaluations, or other reviews conducted by state or local governmental agencies or the DOL identifying issues of fiscal integrity or misexpended funds due to the willful disregard or failure to comply with any WIOA requirement. •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. •Failure to observe accepted standards of administration -Local Areas must have adhered to the applicable uniform administrative requirements set forth in Title 2 CFR Part 200. Engaged in Regional Planning -The local Area has participated in and contributed to regional planning, regional plan implementation, and regional performance negotiations. Application Process The local Chief Elected Official (CEO) and the Local Board Chair must complete and sign the Local Area Subsequent Designation and Local Board Recertification Application for PY 23-25 (Attachment 1) in order for a Local Area to request subsequent designation or a Local Board to request recertification. The completed application is due no later than 5 p.m. on Friday, May 26, 2023, to the CWDB at PolicyUnit@cwdb.ca.gov. Please include "Local Area Subsequent Designation and Local Board Recertification Application" in the subject line. Due to COVID-19, electronic signatures are permitted for the PY 23-25 application. Page 3 of 5 EXHIBIT 1 Note -It is understood that some Local Areas may be unable to obtain local CEO approval by the submission deadline due to scheduling conflicts. If nec essary, the Local Area may submit an unsigned copy of the application with an explanation for the absent signature(s) and a date by when the signed application will be sent. Local Areas will not receive full subsequent designation status until a signed application is received. Assessment of the Application The CWDB, in coordination with the Employment Development Department, will verify the information provided in the application to ensure the required criteria are met. The CWDB will then determine whether to recommend an approval, conditional approval, or denial of the application. The local CEO will be notified in writing of the decision. If a subsequent designation application is conditionally approved, the local CEO must submit a "Corrective Action Plan" specifying the following: •How they will meet the required criteria •When they will provide the CWDB with a corrected application Appeal Process A unit of local government (or a combination of units) that has requested and been denied subsequent designation as a Local Area under WIOA may appeal the denial to the CWDB, pursuant to WIOA Section 106. An entity that has been denied subsequent designation may appeal the decision and request a hearing. An appeal and request for a hearing must be emailed to the CWDB within 15 calendar days from the email date of the notice of denial of initial designation. The appeal must state, in writing, the following: •Grounds for the appeal. •Reasons why the appellant should be designated. The CWDB will contact the appellant to schedule a hearing date within 15 calendar days of the receipt of the appeal. The CWDB will conduct the appeal hearing and provide a written decision to the appellant no later than 15 calendar days after the hearing. Appeal of CWDB Decision A unit or combination of units of local government whose appeal has not resulted in designation as a Local Area may also appeal the denial to the DOL (WIOA Section 106[bl[5]). Page 4 of 5 EXHIBIT 1 ACTION Bring this Directive to the attention of the local CEO, Local Board, and appropriate staff. INQUIRIES If you have any questions, contact your Regional Advisor. /s/ JAVIER ROMERO, Deputy Director Workforce Services Branch Attachments: 1.Local Area Subsequent Designation and Local Board Recertification Application for Program Year 2023-25 (DOCX) 2.Summary of Comments (DOCX) 3.Errata Chronology (DOCX) Page 5 of S EXHIBIT 1 Local Area Subsequent Designation and Local Board Recertification Application for Program Year 2023-25 Local Workforce Development Area Page 1 of 10 EXHIBIT 1 Application for Local Area Subsequent Designation and Local Board Recertification This application will serve as your request for Local Workforce Development Area (Local Area) subsequent designation and Local Workforce Development Board (Local Board) recertification for Program Year (PY) 2023-25 under the Workforce Innovation and Opportunity Act (WIOA). If the California Workforce Development Board (CWDB) 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. Completed applications must be submitted by 5 p.m. on Friday, May 26, 2023, to the CWDB at PolicyUnit@cwdb.ca.gov. Name of Local Area Mailing Address City, State, ZIP Date of Submission Contact Person Contact Person's Phone Number Page 2 of 10 EXHIBIT 1 Local Board Membership The WIOA Section 107(b)(2)(A) through (E) states the requirements for nominating and selecting Local Board members. 1.Pr ovide the names of the individuals appointed for each membe rship category listed below. 2.Attach a roster for the current Local Board. Category: Business-WIDA Section 107(b)(2)(A) requires that business members constitute a simple majority of the Local Board, and WIOA Section 107(b)(3) states that the chairperson shall also be a member under this category. Specifically, a majority of the Local Board's business members shall constitute the following representatives under this membership category: •Owners of businesses, chief executives or operating officers of businesses, or other business executives or employers with optimum policymaking or hiring authority; •Representatives of businesses, including small businesses or business organizations; and •Individuals appointed by those who have been nominated by local business organizations and business trade associations. Please list the Local Board's business members and identify the chairperson by typing CHAIR after their name: Local Board Business Members Name Title Entity Appointment Term End Date Date Category: Labor -At least 20 percent of the Local Board members shall be labor representatives from the Local Area's workforce. Specifically, the Local Board shall have labor representatives under this membership category from the following entities (WIOA 107[b ][2][B]): Page 3 of 10 EXHIBIT 1 •Labor organizations (for a Local Area in which employees are represented by labor organizations) and who have been nominated by local labor federations, or (for a Local Area in which no employees are represented by such organizations) other representatives of employees. •A member of a labor organization or a training director from a joint labor-management apprenticeship program, or if no such joint program exists in the area, such a representative of an apprenticeship program in the area, if such a program exists. Members may be representatives from community-based organizations with demonstrated experience and expertise in addressing the employment needs of individuals with barriers to employment, veterans, or individuals with disabilities; and organizations with demonstrated experience and expertise in addressing the employment, training, or education needs of eligible youth and/or out-of-school youth. California Unemployment Insurance Code (CUIC) Section 14202(b)(1) further requires and specifies that at least 15 percent of Local Board members shall be representatives of labor organizations unless the local labor federation fails to nominate enough members. For a Local Area in which such organizations represent no employees, other representatives of employees shall be appointed to the Local Board, but any Board that appoints representatives of employees not nominated by local labor federations must demonstrate that no employees are represented by such organizations in the Local Area. List the Local Board's labor members: Local Board Labor Members Name Title Entity Appointment Term End Date Date Category: Education -WIOA Section 107[b][2][C] requires that each Local Board include members who represent entities that administer education and training activities in the Local Area. Specifically, the Local Board shall have education representatives under this membership category from the following entities: •Eligible Title II adult education and literacy providers. •Institutions of higher education providing workforce investment activities. Members may be representatives from local educational agencies and community-based organizations with demonstrated experience and expertise in addressing the education or training needs of individuals with barriers to employment. Page 4 of 10 EXHIBIT 1 List the Local Board's education members: Local Board Education Members Name Title Entity Appo intment Term End Date Date Category: Econo mic and Community Development -WIDA Sections 107[b][2](D] and [El require each Local Board to include governmental, economic, and community development representatives under this membership category from the following entities: •Economic and community development organizations. •The state's employment service office under the Wagner-Peyser Act. •Programs carried out under Title I of the federal Rehabilitation Act. A Local Board may have representatives from transportation, housing and/or public assistance agencies; philanthropic organizations; and/or an individual or representatives of entities determined to be appropriate by the local CEO. List the Local Board's economic and community developmen t members: Local Board Economic and Community Development Members Name Title Entity Appointment Term End Date Date Performed Successfully The Local Area hereby certifies that it has performed successfully, defined as having an Individual Indicator Score of 50% or higher in PY 20-21 or PY 21-22, as described in Workforce Services Directive WSD20-02, Calculating Local Area Performance and Nonperformance (September 18, 2020), for the following primary indicators of performance: •Employment Rate 2 nd Quarter After Exit •Median Earnings Page 5 of 10 EXHIBIT 1 Note: Please report your "performance score" rather than the "adjusted level of performance." PY 20-21 Individual Indicator Scores Indicators of Performance Employment Rate 2 nd Quarter After Exit Median Earnings 2 nd Quarter After Exit PY 20-21 Individual Indicator Scores Indicators of Performance Employment or Education Rate 2 nd Quarter after Exit Median Earnings PY 21-22 Individual Indicator Scores Indicators of Performance Employment Rate 2 nd Quarter After Exit Median Earnings 2 nd Quarter After Exit PY 21-22 Individual Indicator Scores Indicators of Performance Employment or Education Rate 2 nd Quarter after Exit Median Earnings Adults %-- $_ Adults %-- $_ Page 6 of 10 Dislocated Workers %-- $_ Youth %-- $ Dislocated Workers %-- $_ Youth %-- $ EXHIBIT 1 Sustained Fiscal Integrity The Local Area hereby certifies that it has not been found in violation of one or more of the following during PY 20-21 or PY 21-22: •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 improperly expended funds due to the willful di sregard or failure to comply with any WIOA requirement. •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. •Failure to observe accepted standards of administration -Local Areas must have adhered to the applicable uniform administrative requirements set forth in Title 2 Code of Federal Regulations (CFR) Part 200. Certify No Violation: □ Engaged in Regional Planning Engaged in regional planning is defined as participating in and contributing to re gional planning, regional plan implementation, and regional performance negotiations. The Local Area herby certifies that it has participated in and contributed to regional planning and negotiating regional performance measures in the following ways: Local Area Assurances Through PY 23-25, the Local Area assures that: A.It will comply with the applicable uniform administrative requirements, cost principles, and audit requirements {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 support ing source documentation, to auditors at all levels, as permitted by law (Title 2 CFR Section 200.508). Page 7 of 10 EXHIBIT 1 Note that failure to comply with the audit req uirements specified in Title 2 CFR Part 200 Sub part F will subject the Local Area to potential cash hold (Title 2 CFR Section 200.338). B.All financial repor ting will be done in compliance with federal and state regulations and guidance. Highlights of this assurance include the following: •Reporting will be done in compliance with Workforce Services Directive WSD19-05, Monthly and Quarterly Financial Reporting Requirements, (December 4, 2019). •All close out reports will comply with the policies and procedures listed in WSD16- 05, WIDA Closeout Requirements (July 29, 2016). 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 following: •The Local Area will meet the requirements of the CUIC Section 14211, to spend a minimum of 30 percent of combined total of WIOA Title I adult and dislocated worker formula fund allocations on training services. •The Local Area will not use funds to assist, promote, or deter union organizing (WIOA Section 181[b][7]). D.The Local Area will select the America's Job Center of California5M operator(s) through a competitive procurement process, such as a Request for Proposals, unless designated or certified as an operator with the agreement of the local CEO and the Governor (WIOA Section 121[d][2][A] and 107[g][2]}. E.The Local Area will collect, enter, and maintain data related to participant enrollment, acti vities, and performance necessary to meet all CalJOBS 5M reporting requirements and dead lines. F.The Local Area will comply with the nondiscrimination provisions of WIOA Section 188 and 29 CFR Part 38, including the collection of necessary data. G.The Local Area will engage in and contribute to, regional planning and regional plan implementation (for example, the Local Area has participated in regional planning meetings and regional plan implementation efforts, and the Local Board and local CEO have reviewed and approved the regional plan and two-year modifications). Page 8 of 10 EXHIBIT 1 H.The Local Area will participate in regional performance negotiations. I.The Local Area will comply with CWDB 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. J.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 [TEGL] 10-09, and TEGL 19-16). Page 9 of 10 EXHIBIT 1 Application Signature Page Instructions -The local CEO and Local Board Chair must sign and date this form. Electronic signatures are permitted for the PY 23-25 application. By signing the application below, the local CEO and Local Board Chair request subsequent designation of the Local Area and recertification of the Local Board. Additionally, they agree to abide by the Local Area assurances included in this application. Local Workforce Development Board Chair Local Chief Elected Official Signature Signature Name Name Title Title Date Date Page 10 of 10 EXHIBIT 1