PURPOSE:

The purpose of this memorandum is for the Agency Board to consider the Workforce Investment Act Services Contract By and Between the City of Glendale (�City�) and the Burbank Redevelopment Agency (�Contractor�), and the associated resolution.  The purpose of this contract is to reimburse the Burbank Redevelopment Agency in the amount of $52,000 for partial salary expenses and services provided at WorkForce Connection (WFC) during the 02-03 Fiscal Year.

BACKGROUND:

On behalf of the Verdugo Consortium, comprised of Glendale, Burbank, and La Canada-Flintridge, the City of Glendale will be reimbursing the Burbank Redevelopment Agency (�Consultant�) the amount of $52,000 for partial salary expenses and services provided to the community at WFC, for the period of time between September 20, 2002 (date when the Verdugo Workforce Investment Board approved the contract) and June 30, 2003 (end of the fiscal year).

The Verdugo Consortium was organized by a Joint Powers Agreement, signed on December 14, 1999.  This created a Workforce Investment Area comprised of the City of Burbank, City of Glendale, and City of La Canada-Flintridge to comply with the Workforce Investment Act.  This agreement retains the City of Glendale in the role of administrator of federal workforce development/employment and training funds on behalf of the three-city consortium.  The Verdugo Consortium receives Workforce Investment Act (WIA) funding from the State of Health and Human Services Agency for the purpose of providing employment and training services to eligible adult participants at the Verdugo Jobs Center (VJC).

The VJC provides workforce development services to job seekers and employers in the Verdugo Consortium region and is required to promote workforce development in the community.  As part of the City of Burbank's investment in the Verdugo Consortium partners, the Burbank Redevelopment Agency is rendering workforce development services to the Burbank community at WorkForce Connection, an annex of the VJC.

ANALYSIS:

As part of the City of Burbank�s economic development efforts stated in the Economic Development Strategy (Section 2.B � Continued Collaboration of Educational and Workforce Development Issues), and in partnership with VJC, the City of Burbank�s WFC opened to the public on December 10, 2001.  WFC is a job resource center which provides free �core services� to the community including but not limited to: 

�        Six computers for Internet job search and tutorials

�        Two telephones for job-related phone calls

�        Photocopier/fax machine

�        Vocational library

�        Current job listings from Burbank and the greater Los Angeles County area

�        Referral services to VJC and other community agencies

�        Job seeker assistance including:

-                     Resume writing

-                     Job-related questions

�        Business assistance including:

-           Facilities for conferencing and interviews

-           Rapid Response services (assistance whenever employers experience difficult times or layoffs)

-           Assistance with recruitment efforts

WFC�s client base has grown rapidly since opening.  The number of clients served on a monthly basis has increased from 100 in December �01 to 778 clients in May �03.  In January of this year, WFC had a record-breaking month and served 1032 clients, with an average of 50-60 clients receiving services per day.  WFC served its 10,000^th client in June, 2003.  To provide additional job opportunities to WFC�s clients, staff is also proactive in outreaching to businesses in the area to obtain their job postings for our bulletin board.  Staff has outreached to over 400 businesses since we opened to the public, and an average of 100 employers send us current job postings, a number that continues to grow on a weekly basis.  

Partners at WFC include Work Training Programs, Inc, the City of Burbank�s Family Self-Sufficiency program, G.A.I.N. (Greater Avenues for Independence, a program that assists welfare clients transitioning into the workforce) and additional partnering agencies at VJC.  A great example of a successful partnership is the role of Work Training Programs, Inc. at WFC, which provides focused job development services to Burbank residents with developmental disabilities and mental illness through person-centered planning and individualized service delivery.  Work Training Programs, Inc. has successfully placed Burbank residents (with disabilities) in jobs at Nickelodeon Studios, Burbank YMCA, Staples, Empire Center food court and has outreached to over fifty Burbank businesses this fiscal year to provide job opportunities to residents with disabilities.

WFC is marketed to the community through utility bill inserts, Cable TV6 scroll, monthly flyer distribution through PIO, City Clerk�s office, Burbank Chamber of Commerce, Woodbury University, local high schools, libraries, BTAC, YMCA and other community organizations.  Additionally, a great deal of walk-in traffic comes to WFC after seeing WFC�s advertising boards or signs outside the building.  Referrals from family, city-employees and friends also make up a large portion of WFC�s new client attraction.    

WFC is the only �core services� resource center that tracks the success of its clients.  Three months after their initial visit, surveys are mailed to WFC clients to ask if they were successful at finding jobs.  For example, in May, 2003 staff mailed out 176 surveys to all clients who came to WFC for the first time in January, 2003.  Out of those surveys, 37 were received (21 percent of all surveys).  Out of the 37 survey responses received, 19 clients got jobs (51 percent success rate).  To summarize the survey results, staff usually receives a response from 15 to 20 percent of all surveys mailed (six to eight percent is usually considered a good return on surveys).  Since WFC opened to the public, and based on the sample population that returns surveys, an average of 50 percent of our responding clients are successful at finding jobs. 

Although the City of Glendale administers the day to day operation at VJC, the Verdugo Workforce Investment Board (VWIB) is the governing body with approval powers for budgetary issues.  Since WFC opened to the public in the middle of the 01-02 Fiscal Year, the VWIB was not able to budget specific funds for WorkForce Connection expenses in its annual budget.  During the 01-02 Fiscal Year, VWIB acknowledged the importance of this effort and approved an allowance of $40,000 to cover partial salary expenses and services provided at WorkForce Connection for the remainder of the 01-02 Fiscal Year.  This reimbursement was done through a Professional Services Agreement due to the time constraints involved in approving an agreement between two cities.

Proposed Funding for FY 02-03 - During FY 02-03, the VWIB approved the amount of $52,000 to cover partial salary expenses and services provided at WorkForce Connection.  The VWIB determined that the Burbank Redevelopment Agency would perform as a �Contractor� to receive funding for WFC in order to become a formal part of the WIA funding process.  This time a contract was drafted between the City of Glendale and the Burbank Redevelopment Agency.  All other partnering agencies that offer similar services on behalf of VJC receive funding as contractors.  In order to receive this yearly reimbursement from the City of Glendale as a contractor, WFC submits detailed monthly statistical reports and undergoes yearly fiscal and program audits.  The attached Workforce Investment Act Services Contract (Exhibit �A�) explains the details of this reimbursement.  Once the Agency Board approves this agreement, and Fiscal Year 02-03 ends, staff will submit an invoice to the City of Glendale to receive this reimbursement.

Future Funding -  In regards to the future of WorkForce Connection, the VWIB has announced that they will only be able to allocate the reduced amount of $40,000 for Fiscal Year 03-04.   Unfortunately Workforce Investment Act funds have been reduced by the State of Health and Human Services Agency and the VWIB is reducing overall funding to all contractors, including WorkForce Connection.  Staff will work closely with the City of Glendale as they apply for additional funding opportunities so that WFC can qualify to receive a higher level of funding in the future.  Because staff is hopeful that this program will continue annually, through this contract agreement presented before the Agency Board for approval, staff is seeking administrative authority to execute future agreements to receive reimbursements for the program, but only when those agreements are substantially similar to the contract presented forthwith on this agenda.

Environmental Review:  It has been determined that the activity involving �approval of the Workforce Investment Contract between the City of Glendale and Redevelopment Agency of the City of Burbank authorizing reimbursement of $52,000 for salary expenses and services provided at WorkForce Connection� is not a project as defined by the California Environmental Quality Act (CEQA) as it involves fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment per Sections 15060(b)(3) and 15378(b)(4) of the CEQA Guidelines.

WorkForce Connection � Phase II:  Now that WorkForce Connection is firmly established in the community, and as part of the city�s economic development efforts, staff would like to take this opportunity to update the Agency Board on the proposed development of WFC�s second phase (included in next year�s budget):  Burbank Business Resource Center (Exhibit �B�).  Businesses currently benefit from WFC by sharing their job postings for recruitment purposes and using our conference room for interviews, meetings and training.  However, business services are limited and staff feels it is important to support the business community to create a balance in services provided at WFC.  This in turn will help businesses provide more jobs to Burbank residents who need them.  The Small Business Administration's Office of Advocacy reports that while 66 percent of businesses remained open at least two years, just over 60 percent closed before reaching the six-year mark. As 99 percent of all employers in the nation are small businesses, this causes a loss of jobs and costs the country millions of dollars in lost revenue and taxes.

In Burbank, 98 percent of the business licenses are issued to businesses that have fifty or fewer employees.  The City of Burbank can�t afford the loss of jobs and lost revenue as the business community is already suffering major challenges such as escalating worker�s compensation and health care costs.  Last year, Woodbury University created a proposal to run a Business Assistance Center at WorkForce Connection, but unfortunately they did not receive a HUD grant that was crucial in helping them establish their operation.   Staff feels it�s important to add these services to strengthen the efficiency of current economic development programs and continue to build a relationship between the business community, the City of Burbank, and Burbank residents who are looking for jobs.   

While serving the community at WFC, staff has received numerous requests from residents who have lost their jobs and would like to start up a business but need guidance in the process, or from current Burbank business owners who need counsel, operational, technical or financial resources.  Equally, through the Mayor�s Business Outreach Program, staff has heard concerns from the business community about their need of training in various areas:  marketing their business to the community, creation of a successful business plan, finding funding resources, etc.  Staff has also received feedback from entertainment industry job seekers who would like to start a side business to support them while entertainment industry jobs experience low periods of activity.  The proposed Burbank Business Resource Center at WFC would provide basic resources to Burbank business owners and Burbank residents who are trying to start a business. 

Staff is meeting with various local agencies to determine the best level of services that can be provided and survey the business community about types of workshops they would like to see offered.  The following resources would be available during FY 03-04:

• A business library

• Information on various workshops and resources available at Valley Economic Development Center (VEDC) and Small Business Development Centers (SBDC), including courses such as �Business Concept Development,� �Developing Business and Marketing Plans� and �Finance Management�

• Financial information about access to capital through VEDC�s lending division and the Small Business Administration

• Burbank Chamber of Commerce guide and general information

• License and Code Services information on establishing a business in Burbank

• Monthly workshops at WFC for business owners and Burbank residents who want to start a business in partnership with VEDC, Chamber of Commerce and EDD�s Employment Tax District office (employer taxes, payroll, etc.)

The City of Burbank hosts many small businesses in a variety of industries.  Small businesses are critical to Burbank and its future:

• There are currently 10,243 business licenses issued in Burbank, of which 10,063 are issued to businesses with 50 employees or less (98% of business licenses issued)

• Out of 10,243 business licenses issued in Burbank, 8,998 are issued to businesses of five or fewer employees (88% of business licenses issued)

• Two thirds of the business licenses in Burbank (6,796 out of 10,243) are issued to single owner/employee businesses.

• Small businesses create many jobs in the economy.

• Small businesses are entrepreneurial enterprises at the heart of the American dream of self-employment.

• The strength of small business is an important factor to Burbank�s future growth and prosperity.

The encouragement of economic development and job creation through the establishment and success of new businesses and the expansion of existing local enterprises are key strategic directions outlined in the City�s Ten-year Strategic Plan (2001-2010).  This is just the first step in the creation of this resource for businesses.  The Burbank Business Resource Center has the potential to grow with the needs of the community and customize its resources to support economic development in the city and serve the community through partnerships with the Burbank Chamber of Commerce, VEDC, SBA, and various other agencies. 

Finally, staff would like to summarize next year�s city-wide economic development efforts, including WorkForce Connection, the proposed Burbank Business Resource Center and additional economic development activities based on the City of Burbank�s Economic Development Strategy.  Staff is planning to focus on advertising efforts linked to the strategy and an advertising campaign to fill vacant space in Burbank since the vacancy rates in the City have reached high proportions.  During the first quarter of 2001, the office vacancy rate in Burbank was 4% (compared to Glendale at 9.5%).  During the first quarter of 2003, Burbank vacancy rate jumped to 11.3% while Glendale�s was stable at 9.8%.  During this same quarter, the current Media District vacancy rate was 15.8% and City Center�s was 30.6%.  It is important that we continue to focus our advertising efforts to attract a diverse business community to fill those vacancies in our city and to maintain Burbank�s image.

Various elements in the Economic Development Strategy outline the need to attract more businesses to both diversify and strengthen our current economic base.  Next year�s advertising efforts will also be vital in maintaining Burbank�s dominant position as the Media Capital of the World.  Staff believes it�s important to maintain Burbank�s image and stay competitive in a market where other cities are trying to attract businesses away from us.  A mission statement has also been developed to help carry out a high level of customer service as additional community resources are provided, all while maintaining careful consideration to budgetary issues and future levels of funding.

Summary of Economic Development Efforts (see Exhibit �C� for detailed summary)

Municipal Competitiveness

a.                  Burbank Business Resource Center

b.                  Enhanced services for Burbank residents at WFC

Marketing/Image Enhancement Action Plan

a.                  Branding  campaign � Burbank as �The Hub of the New Economy�

b.                  Cluster-specific marketing/business attraction programs

c.              Promote Burbank as a regional evening/weekend activity center 

Action Plan for Entertainment/Media Cluster

a.                  Enhance Burbank's dominant position in the entertainment and media industries

b.                  Continue pro-active staff visits to entertainment industry businesses

Retail Development Action Plan

a.         Promote revitalization/reuse plans for neighborhood-scale commercial corridors

b.         Ensure that our economic development efforts effectively balance the needs of businesses with the needs of residents.

City-Wide Economic Development

a.                  Set new goals for Mayor�s Business Outreach Program

b.                  Continue to stay competitive by providing economic development information to brokers, developers and the business community.  

Strategic Partnerships and Community Involvement

a.                  Establish/enhance strategic alliances with partnering organizations to maintain Burbank�s image as a business-friendly community. 

The above-mentioned information summarizes future economic development activities, including WorkForce Connection and the proposed Burbank Business Assistance Center.  The WorkForce Connection�s enhanced activities and the proposed Burbank Business Resource Center are included in next year�s WorkForce Connection budget ($75,000) exclusive of staff.  The rest of the economic development activities are included in next year�s Economic Development budget ($155,000) exclusive of staff.  In regards to future levels of funding at WFC, although the Verdugo Workforce Investment Board is only planning to allocate $40,000 for WFC next fiscal year, staff plans to continue to work with the City of Glendale as they apply for additional funding in the future so they can in turn provide additional funding to WFC.   

Staff feels the services provided at WorkForce Connection and proposed for Burbank Business Resource Center will provide a valuable tool for the community, an important component which will strengthen the City�s economic development and community outreach activities, and a vital link to the goals of the City�s Economic Development Strategy and the City�s Ten-Year Strategic Plan. 

FISCAL IMPACT:

The Burbank Redevelopment Agency will receive $52,000 from the City of Glendale to offset salary costs and services provided at the WorkForce Connection for Fiscal Year 02-03.   

RECOMMENDATION:

It is recommended that the Agency Board approve the proposed Workforce Investment Act Services Contract By and Between the City of Glendale and the Burbank Redevelopment Agency and adopt the proposed resolution.

EXHIBITS:

Exhibit �A�      WIA Services Contract Between the City of Glendale and the Redevelopment Agency of the City of Burbank

Exhibit �B�      Burbank Business Resource Center at WorkForce Connection

Exhibit �C�      Summary of City-Wide Economic Development efforts

EXHIBIT �A�

WIA SERVICES CONTRACT BETWEEN THE CITY OF GLENDALE AND THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK
 

EXHIBIT �B�

BURBANK BUSINESS RESOURCE CENTER AT WORKFORCE CONNECTION

EXHIBIT �C�

SUMMARY OF CITY-WIDE ECONOMIC DEVELOPMENT EFFORTS

SUMMARY OF CITY-WIDE ECONOMIC DEVELOPMENT EFFORTS

MISSION STATEMENT

To strengthen the efficiency of current economic development programs, enhance current services under the proposed budget and tie result-driven goals to the City of Burbank�s Economic Development Strategy.  To encourage economic development and job creation through the establishment and success of new businesses and the expansion of existing local enterprises as a key strategic direction outlined in the City�s 10-year Strategic Plan (2001-2010). 

MUNICIPAL COMPETITIVENESS

(Continued collaboration of workforce/business development)

• Create, promote, and manage a Business Resource Center at WorkForce Connection (WFC). Work to maintain Burbank�s position as a business friendly community and provide support to our business community (business retention, outreach).

�        To enhance services provided to Burbank residents at WFC.  Develop a series of free workshops and enhanced services to the community:  CalJOBS (Employment Development Department�s job search engine) training, Internet job search, resume writing, interviewing skills, and other workshops.

MARKETING/IMAGE ENHANCEMENT ACTION PLAN

�        Develop a broad-based "branding campaign" targeted at a business audience.  Establish a city-wide brand, focus on ads identifying Burbank as a great business location with an emphasis on the quality of life, and administer an image enhancement campaign aimed at positioning Burbank as "The Hub of the New Economy."

• Develop cluster-specific marketing/business attraction programs.  Pending availability of advertising budget, identify and advertise in publications that target those companies that comprise our economic base as identified below:

a.                  Motion Pictures and Related Activities

b.                  Communications

c.                  Engineering/ Accounting/ Research/ Management

d.                  Business Services

e.                  Selected Manufacturing Sectors:

-                      Printing and Publishing

-                      Fabricated Metal Products

-                      Industrial Machinery and Computers

f.                    Insurance

g.                  Amusement and Recreation

h.                  Tourism

�        Promote Burbank as a regional evening/weekend activity center.  Work with Chamber of Commerce on their "Destination Burbank" campaign.   Promote tourism, entertainment, retail and restaurant sites in Burbank.  Support and promote the Downtown Burbank campaign.

ACTION PLAN FOR ENTERTAINMENT/MEDIA CLUSTER

�        Develop an entertainment/media cluster retention/outreach program.  Maintain and enhance Burbank's dominant position in the entertainment and media industries.

�        Continue pro-active staff visits to entertainment industry businesses to offer them information about City resources, find out if they have any concerns, and survey their workforce needs.

RETAIL DEVELOPMENT ACTION PLAN

• Promote revitalization/reuse plans for neighborhood-scale commercial corridors.  Continue to work closely with merchants in Magnolia Park.  Serve as liaison for the business community when they need to access City services.  Survey the business community on types of workshops they would like to see offered at WorkForce Connection.

• Ensure that the City of Burbank�s economic development efforts effectively balance the needs of businesses with the needs of residents.   Provide support to Planning staff which is in the process of updating the Land Use Element by tracking vacancies in the area and conducting weekly tours, to assist in balancing the needs of businesses and residents in the community.

CITY-WIDE ECONOMIC DEVELOPMENT

• Mayor�s Business Outreach Program - Develop new goals and parameters for the program.  Discuss program goals with Mayor Murphy and her availability for the program.  (Business retention:  top employers by number of employees, top sales tax producers, top unsecured property tax producers, top property tax producers and entertainment industry)

• Continue to stay competitive by providing economic development information to brokers, developers and the business community.  Track municipal taxes, fees, and incentives annually and conduct survey of comparable LA County cities to determine tax/fee structures.  Continue to update marketing brochures, media kits and fact sheets describing our low business taxes and maintain Burbank�s image as a business friendly community.

STRATEGIC PARTNERSHIPS AND COMMUNITY INVOLVEMENT

• Establish/enhance strategic alliances with the following partnering organizations to maintain Burbank�s image as a business-friendly community:  Workforce Investment Board, Verdugo Jobs Center, Economic Alliance of the San Fernando Valley, Burbank Chamber of Commerce, YMCA, Burbank Board of Realtors, BUSD Business Academy Advisory Board, and other community organizations.